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Category: Intelligence Agencies

  • MIL-OSI Global: From the Chinese Exclusion Act to pro-Palestinian activists: The evolution of politically motivated deportations

    Source: The Conversation – USA – By Rick Baldoz, Associate Professor of American Studies, Brown University

    New York Tribune of Jan. 3, 1920, announcing massive roundups of ‘aliens’ deemed to be ‘Reds.’ Library of Congress

    The recent deportation orders targeting foreign students in the U.S. have prompted a heated debate about the legality of these actions. The Trump administration made no secret that many individuals were facing removal because of their pro-Palestinian advocacy.

    In recent months, the State Department has revoked hundreds of visas of foreign students with little explanation. On April 25, 2025, the administration restored the legal status of many of those students, but warned that the reprieve was only temporary.

    Because of their tenuous legal status in the U.S., immigrant activists are vulnerable to a government seeking to stifle dissent.

    Critics of the Trump administration have challenged the legality of these removal orders, arguing that they violate constitutionally protected rights, including freedom of speech and due process.

    The administration asserts that the executive branch has nearly absolute authority to remove immigrants. The White House has cited legislation passed during the peak of the nation’s Cold War hysteria, like the McCarran-Walter Act of 1952, which expanded the government’s deportation powers.

    I’m a historian of immigration, U.S. empire and Asian American studies. The current removal orders targeting student activists echo America’s long and lamentable past of jailing and expelling immigrants because of their race or what they say or believe – or all three.

    The arrest of Turkish graduate student Rümeysa Öztürk by Department of Homeland Security agents in Somerville, Mass., on March 25, 2025.

    Where it began

    The United States’ current deportation process traces its roots to the late 19th century as the nation moved to exercise federal control of immigration.

    The impetus for this shift was anti-Chinese racism, which reached a fever pitch during this period, culminating in the passage of laws that restricted Chinese immigration.

    The influx of Chinese immigrants to the West Coast during the mid-to-late 19th century, initially fueled by the California Gold Rush, spurred the rise of an influential nativist movement that accused Chinese immigrants of stealing jobs. It also claimed that they posed a cultural threat to American society due to their racial otherness.

    The Geary Act of 1892 required Chinese living in the U.S to register with the federal government or face deportation.

    The Supreme Court addressed the constitutionality of these statutes in 1893 in the case of Fong Yue Ting v. United States. Three plaintiffs claimed that anti-Chinese legislation was discriminatory, violated constitutional protections prohibiting unreasonable search and seizure, and contravened due process and equal protection guarantees.

    The Supreme Court affirmed the Geary Act’s deportation procedures, formulating a novel legal precept known as the plenary power doctrine that remains a key tenet of U.S. immigration law today.

    Court confirms the law

    The doctrine included two key assertions.

    First, the federal government’s authority to exclude and deport aliens was an inherent and unqualified feature of American sovereignty. Second, immigration enforcement was the exclusive domain of the congressional and executive branches that were charged with protecting the nation from foreign threats.

    The court also ruled that the deportation of immigrants in the country lawfully was a civil, rather than criminal matter, which meant that constitutional protections like due process did not apply.

    The government ramped up deportations in the aftermath of World War I, fueled by wartime xenophobia. American officials singled out foreign-born radicals for deportation, accusing them of fomenting disloyalty.

    The front page of the Ogden Standard, from Ogden City, Utah, on Nov. 8, 1919, announcing the arrest and planned deportation of ‘alien Reds.’
    Library of Congress

    Attorney General A. Mitchell Palmer, who ordered mass arrests of alleged communists, pledged to “tear out the radical seeds that have entangled Americans in their poisonous theories” and remove “alien criminals in this country who are directly responsible for spreading the unclean doctrines of Bolshevism.”

    This period marked a new era of removals carried out primarily on ideological grounds. Jews and other immigrants from southern and eastern Europe were disproportionately targeted, highlighting the cultural affinities between anti-radicalism and racial and ethnic chauvinism.

    ‘Foreign’ agitators

    The campaign to root out so-called subversives living in the United States reached its apex during the 1940s and 1950s, supercharged by figures like anti-communist crusader Sen. Joseph McCarthy and FBI Director J. Edgar Hoover.

    The specter of foreign agitators contaminating American political culture loomed large in these debates. Attorney General Tom Clark testified before Congress in 1950 that 91.4% of the Communist Party USA’s leadership were “either foreign stock or married to persons of foreign stock.”

    Congress passed a series of laws during this period requiring that subversive organizations register with the government. They also expanded the executive branch’s power to deport individuals whose views were deemed “prejudicial to national security,” blurring the lines between punishing people for unlawful acts – such as espionage and bombings – and what the government considered unlawful beliefs, such as Communist Party membership.

    While deporting foreign-born radicals had popular support, the banishment of immigrants for their political beliefs raised important constitutional questions.

    Harry Bridges, a West Coast labor leader, and his daughter, Jacqueline, 14, as they listen to proceedings during Bridges’ deportation hearing in San Francisco in July 1939.
    Underwood Archives/Getty Images

    Prosecution or persecution?

    In a landmark case in 1945, Wixon v. Bridges, the Supreme Court did assert a check on the power of the executive branch to deport someone without a fair hearing.

    The case involved Harry Bridges, Australian-born president of the International Longshoremen and Warehousemen’s Union. Bridges was a left-wing union leader who orchestrated a number of successful strikes on the West Coast. Under his leadership, the union also took progressive positions on civil rights and U.S. militarism.

    The decision in the case hinged on whether the government could prove that Bridges had been a member of the Communist Party, which would have made him deportable under the Smith Act, which proscribed membership in the Communist Party.

    Since no proof of Bridges’ membership existed, the government relied on dodgy witnesses and assertions that Bridges was aligned with the party because he shared some of its political positions. Accusations of “alignment” with controversial political organizations are similar to the charges made against foreign students currently at risk of deportation by the Trump administration.

    The Supreme Court vacated Bridges’ deportation order, declaring that the government’s claim of “affiliation” with the Communist Party was too vaguely defined and amounted to guilt by association.

    As the excesses and abuses of the McCarthy era came to light, they invited greater scrutiny about the dangers of unchecked executive power. Some of the more draconian statutes enacted during the Cold War, like the Smith Act, have been overhauled. The federal courts have toggled back and forth between narrow and liberal interpretations of the Constitution’s applicability to immigrants facing deportation – shifts that reflect competing visions of American nationhood and the boundaries of liberal democracy.

    From union leaders to foreign students

    There are some striking parallels between the throttling of civil liberties during the Cold War and President Donald Trump’s crusade against foreign students exercising venerated democratic freedoms.

    Foreign students appear to have replaced the immigrant union leaders of the 1950s as the targets of government repression. Presumptions of guilt based on hyperbolic claims of affiliation with the Communist Party have been replaced by allegations of alignment with Hamas.

    As in the past, these invocations of national security offer the pretext for the government’s efforts to stifle dissent and to mandate political conformity.

    Rick Baldoz 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. From the Chinese Exclusion Act to pro-Palestinian activists: The evolution of politically motivated deportations – https://theconversation.com/from-the-chinese-exclusion-act-to-pro-palestinian-activists-the-evolution-of-politically-motivated-deportations-254683

    MIL OSI – Global Reports –

  • MIL-OSI: Arax Recognizes InvestmentNews Excellence Awardees Across Platform

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, April 30, 2025 (GLOBE NEWSWIRE) — Arax Investment Partners (“Arax”), backed by RedBird Capital Partners (“RedBird”), is pleased to recognize several of its valued partner firms, teams, and advisors who have been selected as Excellence Awardees for the 2025 InvestmentNews Awards.

    The InvestmentNews Awards program recognizes the leading professionals and firms in the wealth management industry across 18 different categories. Arax honorees include:

    • RIA Firm of the Year – Ashton Thomas Private Wealth
    • RIA Team of the Year (Under 10 Advisors) – Advanced Planning Group, U.S. Capital Wealth (Led by Todd Lavergne and Nick Erwin)
    • Advisor of the Year (Regional – Southwest) – Kim-Ha Nguyen, U.S. Capital Wealth
    • Excellence in Philanthropy and Community Service – Lance Knight, Ashton Thomas Private Wealth
    • DEI Trailblazer of the Year – Cary Carbonaro, Ashton Thomas Private Wealth

    Arax Investment Partners brings together leading independent advisory firms, offering centralized resources, strategic support, and integrated business solutions to drive collective growth. With approximately $26 billion in assets under management across its partner firms, Arax serves wealth management clients coast-to-coast.

    “Being recognized at both the individual and firmwide levels is a testament to our ability to attract the top talent in the industry,” said Haig Ariyan, Chief Executive Officer of Arax. “Today, we celebrate our Awardees and applaud their dedication to delivering customized, high-impact wealth management solutions to private clients and institutions. We’re excited to continue supporting the success of our advisors with an unwavering commitment to exceptional client service.”

    Nominations from across the wealth management industry were gathered and supplemented by in-depth research from the InvestmentNews Awards team, then reviewed to select the Excellence Awardees, who have been invited to submit detailed materials as finalists. Final winners for each category will be announced at the InvestmentNews Awards dinner in New York City on Tuesday, June 24.

    About Arax Investment Partners
    Arax Investment Partners is a rapidly growing boutique wealth management platform making strategic control investments in leading RIAs and elite advisor teams. Founded and led by CEO Haig Ariyan — a seasoned industry executive with a distinguished track record of building and scaling wealth management businesses — Arax empowers its partners to be entrepreneurial and focus on delivering exceptional client service. Firms benefit from a management team with deep M&A expertise, capital sourcing capabilities, and the backing of RedBird Capital Partners. For more information, visit www.araxpartners.com.

    About Ashton Thomas Private Wealth
    Ashton Thomas is a diversified financial services firm committed to a culture of excellence, integrity, and respect in every aspect of its business. Through its various entities listed below, Ashton Thomas serves foundations, businesses, and affluent individuals and families by providing a range of services which include fee-based financial planning and investment portfolio management, retirement plan consulting, securities brokerage, life and health insurance, and income tax preparation. The firm also strives to remain at the forefront of technological innovation and thought leadership within the financial services industry.

    Ashton Thomas Private Wealth, LLC, (“ATPW”), founded in 2010, and Ashton Thomas Advisors, LLC (“ATA”), founded in 2024, are SEC-registered investment advisers which provide fee-based financial planning, portfolio management, pension consulting, and fund manager selection services. Ashton Thomas Securities, LLC, (“ATS”) is a dually registered entity. ATS registered with FINRA as a broker-dealer in 1984 and provides securities brokerage services. ATS became an SEC-registered investment adviser in 2008 and provides fee-based financial planning, portfolio management, pension consulting, and fund manager selection services. Ashton Thomas Insurance Agency, LLC, (“ATIA”) provides life and health insurance brokerage services. ATIA also provides income tax services through its DBA, Ashton Thomas Tax Advisory. Representatives of the entities listed may only conduct business for which they are licensed, if required, and with residents of the states and jurisdictions in which they are properly registered and/or licensed.

    About U.S. Capital Wealth Advisors LLC
    Headquartered in Houston, Texas, with a strategic Texas presence across Austin, Dallas, and Georgetown, as well as offices in New York City, Massachusetts, and Florida, U.S. Capital Wealth LLC (“USCW”) is a premier independent, full-platform Registered Investment Advisor dedicated to delivering institutional-quality financial solutions with the personalized service of a boutique firm.

    Founded in 2010, USCW was created to empower clients with access to a comprehensive wealth management experience. As a full-platform RIA, USCW offers the best of both worlds — integrating brokerage and advisory capabilities to deliver flexible solutions tailored to each client’s needs. Clients benefit from the capabilities of a large financial institution, while maintaining the personalized, high-touch approach of a boutique advisory firm.

    USCW’s team of seasoned financial professionals brings decades of institutional experience to help clients navigate complexity with clarity and confidence.

    USCW serves distinguished clientele, including high-net-worth and ultra-high-net-worth families, business owners, specialized industry professionals, institutions, and municipalities. Comprehensive offerings span investment management, risk mitigation, lending solutions, and fully integrated family office services — all tailored to each client’s unique goals. To learn more, please visit: https://uscwealth.com.

    About RedBird Capital Partners
    RedBird Capital Partners is a private investment firm that builds high-growth companies with strategic capital solutions to founders and entrepreneurs. The firm currently manages $12 billion in assets on behalf of a global group of blue chip institutional and family office investors. Founded in 2014 by Gerry Cardinale, RedBird integrates sophisticated private equity investing with a hands-on business building mandate that focuses on three core industry verticals — Financial Services, Sports and Media & Entertainment. Over his 30-year investment career, Cardinale has partnered with founders and entrepreneurs to build some of the most iconic growth companies in their respective industries. For more information, please go to www.redbirdcap.com.

    Media Contact:
    Dan Gagnier
    Gagnier Communications 
    RedBird@gagnierfc.com

    The MIL Network –

  • MIL-OSI: Turbo Energy Partners with Chilean Utility Saesa to Expand Smart Battery Storage Systems in Latin America

    Source: GlobeNewswire (MIL-OSI)

    VALENCIA, Spain, April 30, 2025 (GLOBE NEWSWIRE) — Turbo Energy S.A. (Nasdaq: TURB) (“Turbo Energy” or the “Company”), a global provider of leading-edge, AI-optimized solar energy storage technologies and solutions, has teamed with Saesa, one of Chile’s largest electric utilities, to expand the deployment of smart battery systems across the Andean country.

    This partnership marks a significant step forward in Turbo Energy’s expansion into Latin America, resulting in the completion of the companies’ first joint project— the installation of a smart battery energy storage system (BESS) at the headquarters of Bayas del Sur, a leading berry producer in southern Chile.

    The project integrates lithium batteries with 200 kW of power and 880 kWh of storage capacity. Designed to complement Bayas del Sur’s existing photovoltaic installation, the system enables the plant to optimize energy consumption, reduce fuel dependence and maintain operations during peak demand periods or grid outages.

    “The commissioning of this project for Bayas del Sur reflects a growing trend among companies across all sectors: the search for effective solutions that ensure stable and sustainable energy flow while mitigating market price volatility,” said Mariano Soria, Chief Executive Officer of Turbo Energy. “Working alongside a utility giant like Saesa gives Turbo Energy a strong foundation to deploy smart BESS solutions for Chile’s most forward-thinking companies — a key driver behind the region’s desired economic decarbonization objectives.”

    Saesa executives emphasized the importance of the project in advancing renewable energy and supporting industrial decarbonization in Chile. “Our collaboration with Turbo Energy represents a pivotal advancement in sustainable infrastructure for southern Chile,” said Camila Trujillo, Energy Manager at Saesa Innova. “By integrating intelligent solar storage solutions, we’re not only improving grid reliability for industrial clients like Bayas del Sur, but also reinforcing our commitment to cleaner, smarter energy systems that benefit both businesses and communities across our nation.”

    The project with Saesa closely follows Turbo Energy’s entry into the Chilean market. In March 2025, the Company launched Latin America’s first, fully integrated, end-to-end solar energy storage system at the Alto Labranza shopping center, marking the debut of its new business unit, Turbo Energy Solutions. The division focuses on photovoltaic generation, energy storage and smart energy management for the commercial and industrial sectors across Latin America.

    About Turbo Energy, S.A.

    Founded in 2013, Turbo Energy is a globally recognized pioneer of proprietary solar energy storage technologies and solutions managed through Artificial Intelligence. Turbo Energy’s elegant all-in-one and scalable, modular energy storage systems empower residential, commercial and industrial users expanding across Europe, North America and South America to materially reduce dependence on traditional energy sources, helping to lower electricity costs, provide peak shaving and uninterruptible power supply and realize a more sustainable, energy-efficient future. A testament to the Company’s commitment to innovation and industry disruption, Turbo Energy’s introduction of its flagship SUNBOX represents one of the world’s first high performance, competitively priced, all-in-one home solar energy storage systems, which also incorporates patented EV charging capability and powerful AI processes to optimize solar energy management. Turbo Energy is a proud subsidiary of publicly traded Umbrella Global Energy, S.A., a vertically integrated, global collective of solar energy-focused companies. For more information, please visit www.turbo-e.com.

    Forward-Looking Statements

    Statements in this press release about future expectations, plans and prospects, as well as any other statements regarding matters that are not historical facts, may constitute “forward-looking statements” within the meaning of The Private Securities Litigation Reform Act of 1995. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on current beliefs, expectations and assumptions regarding the future of the business of the Company, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control, including the risks described in our registration statements and annual report under the heading “Risk Factors” as filed with the Securities and Exchange Commission. Actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Any forward-looking statements contained in this press release speak only as of the date hereof, and Turbo Energy, S.A. specifically disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.

    For more information, please contact:
    At Turbo Energy, S.A.                                                                          
    Dodi Handy, Director of Communications                            
    Phone: 407-960-4636                                                                          
    Email: dodihandy@turbo-e.com

    The MIL Network –

  • MIL-OSI: Red River Bancshares, Inc. Reports First Quarter 2025 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    ALEXANDRIA, La., April 30, 2025 (GLOBE NEWSWIRE) — Red River Bancshares, Inc. (the “Company”) (Nasdaq: RRBI), the holding company for Red River Bank (the “Bank”), announced today its unaudited financial results for the first quarter of 2025.

    Net income for the first quarter of 2025 was $10.4 million, or $1.52 per diluted common share (“EPS”), an increase of $1.0 million, or 11.2%, compared to $9.3 million, or $1.37 EPS, for the fourth quarter of 2024, and an increase of $2.2 million, or 26.4%, compared to $8.2 million, or $1.16 EPS, for the first quarter of 2024. For the first quarter of 2025, the quarterly return on assets was 1.32%, and the quarterly return on equity was 12.85%.

    First Quarter 2025 Performance and Operational Highlights

    The Company had solid financial results for the first quarter of 2025. The net interest margin, net interest income, and net income increased. The balance sheet reflects good loan growth, while deposits and assets had slight increases. We increased the quarterly cash dividend paid to shareholders by 33.3% to $0.12 per share for the first quarter of 2025. Also, in the first quarter, we completed significant upgrades to our digital banking systems.

    • Net income for the first quarter of 2025 was $10.4 million, which was $1.0 million, or 11.2%, higher than the prior quarter. Net income for the first quarter increased due to having higher net interest income, along with approximately $620,000 of periodic items that reduced operating expenses. These operating expense reductions benefited EPS by approximately $0.07.
    • Net interest income and net interest margin FTE increased for the first quarter of 2025 compared to the prior quarter. Net interest income for the first quarter of 2025 was $24.6 million, which was $923,000, or 3.9%, higher than the prior quarter. Net interest margin FTE increased 13 basis points (“bp(s)”) to 3.22% for the first quarter of 2025, compared to 3.09% for the prior quarter. These improvements resulted from higher securities yields and lower deposit rates.
    • As of March 31, 2025, assets were $3.19 billion, which was $36.8 million, or 1.2%, higher than December 31, 2024. The increase was mainly due to a $20.6 million increase in deposits.
    • Deposits totaled $2.83 billion as of March 31, 2025, an increase of $20.6 million, or 0.7%, compared to $2.81 billion as of December 31, 2024. This increase was mainly due to higher balances in consumer and commercial customer deposit accounts, partially offset by the seasonal outflow of funds from public entity customers.
    • As of March 31, 2025, loans held for investment (“HFI”) were $2.11 billion, which was $39.7 million, or 1.9%, higher than $2.08 billion as of December 31, 2024. In the first quarter of 2025, we had steady new loan closing activity, combined with funding of loan construction commitments.
    • As of March 31, 2025, total securities were $699.5 million, which was $14.7 million, or 2.1%, higher than December 31, 2024. Securities increased mainly due to the purchase of new securities, combined with a smaller net unrealized loss on securities available-for-sale (“AFS”).
    • As of March 31, 2025, liquid assets, which are cash and cash equivalents, were $252.2 million, and the liquid assets to assets ratio was 7.91%. We do not have any borrowings, brokered deposits, or internet-sourced deposits.
    • The provision for credit losses was $450,000 for the first quarter of 2025, compared to $300,000 for the prior quarter. The $150,000 increase was due to loan growth and uncertainty regarding tariffs and trade.
    • As of March 31, 2025, nonperforming assets (“NPA(s)”) were $5.2 million, or 0.16% of assets, and the allowance for credit losses (“ACL”) was $21.8 million, or 1.03% of loans HFI.
    • In the first quarter of 2025, the quarterly cash dividend increased by 33.3% to $0.12 per common share, up from $0.09 per common share for each quarter in 2024.
    • The 2025 stock repurchase program authorizes us to purchase up to $5.0 million of our outstanding shares of common stock from January 1, 2025 through December 31, 2025. As of March 31, 2025, the 2025 stock repurchase program had $5.0 million of available capacity.
    • In the first quarter of 2025, Red River Bank’s online, mobile banking, and bill payment systems were upgraded in order to improve our digital services for all customers.
    • In the first quarter of 2025, S&P Global Market Intelligence ranked the Bank 14th of the top 50 best deposit franchises in 2024 for banks with assets between $3.0 and $10.0 billion.
    • On March 14, 2025, our board of directors and executive management had the privilege of ringing the closing bell at the Nasdaq Market Site in New York to commemorate being a public company for 6 years.

    Blake Chatelain, President and Chief Executive Officer, stated, “We are pleased with the financial results for the first quarter of 2025. We produced solid net interest margin improvement, higher net income, and positive, relationship-based core loan growth. As a result of consistent earnings, strong capital levels, and confidence in our consistent and conservative banking culture, the board of directors approved a 33.3% increase to the quarterly cash dividend for the first quarter of 2025 to $0.12 per share.

    “We continue to be very focused on net interest margin improvement and managing our cost of deposits, while also focusing on redeploying assets into higher yielding assets. In the first quarter of 2025, our net interest margin FTE increased by 13 bps, net interest income increased by 3.9%, and net income increased by 11.2%.

    “We remain pleased with the level of our customer banking activity across Louisiana. We are focused on adding experienced relationship bankers and growing our presence in our newer markets. Recently there has been expanded emphasis and renewed efforts on economic development in Louisiana. This has resulted in various new and significant corporate expansion announcements for new projects throughout the state. Overall, as of March 31, 2025, our customers seem optimistic about economic activity and growth.

    “Despite this optimism, as result of the April 2, 2025 announcements and changes to the United States tariff policy, we are assessing the possible impact to our customers and the Company. These changes have injected new uncertainty into the economic environment and could result in a slowdown in activity, higher inflation, and a loss of consumer confidence. We are monitoring this situation with our customers as these events unfold. We are hopeful that these policies will be settled quickly and with minimal, negative impact.

    “Since the Company was founded in 1998, we have focused on having a consistent, conservative, and prudent banking philosophy and strategy. We remain focused on these principles, while also striving daily to build customer relationships, expand market share, and create value for our shareholders.”

    Net Interest Income and Net Interest Margin FTE

    Net interest income and net interest margin FTE increased in the first quarter of 2025 compared to the prior quarter. These measures were both primarily impacted by improved yields on securities and lower deposit rates. The Federal Open Market Committee (“FOMC”) decreased the federal funds rate by 50 bps in September of 2024, and by an additional 50 bps during the fourth quarter of 2024, and then kept the federal funds rate consistent in the first quarter of 2025.

    Net interest income for the first quarter of 2025 was $24.6 million, which was $923,000, or 3.9%, higher than the fourth quarter of 2024, due to a $178,000 increase in interest and dividend income, combined with a $745,000 decrease in interest expense. The increase in interest and dividend income was mainly due to higher interest income on securities. Securities income increased $233,000, primarily due to reinvesting lower yielding securities cash flows into higher yielding securities. The decrease in interest expense was primarily due to lower rates on time deposits.

    The net interest margin FTE increased 13 bps to 3.22% for the first quarter of 2025, compared to 3.09% for the prior quarter. This increase was due to improved yields on securities and loans, combined with lower deposit costs. The yield on securities increased 11 bps, primarily due to reinvesting lower yielding securities cash flows into higher yielding securities. The yield on loans increased 7 bps due to higher rates on new and renewed loans compared to the existing portfolio yield. The average rate on new and renewed loans was 7.02% for the first quarter of 2025 and 7.25% for the prior quarter. The cost of deposits decreased 10 bps to 1.61% for the first quarter of 2025, compared to 1.71% for the previous quarter, mainly due to lowering selected time deposit rates. As a result of this change, there was a 37 bp decrease on time deposits during the first quarter.

    The FOMC kept the federal funds rate consistent in the first quarter of 2025, with the target federal funds range remaining at 4.25%-4.50%. The market’s expectation is that the FOMC may lower the target range of the federal funds rate several times in 2025. During the remainder of 2025, we anticipate receiving approximately $80.0 million in securities cash flows with an average yield of 3.28%, and we project approximately $162.2 million of fixed rate loans will mature with an average yield of 6.15%. We expect to redeploy these balances into slightly higher yielding assets. Additionally, during the second quarter of 2025, we expect $253.6 million of time deposits to mature with an average rate of 4.06%, which we anticipate repricing into slightly lower cost deposits. As of March 31, 2025, floating rate loans were 17.6% of loans HFI, and floating rate transaction deposits were 8.7% of interest-bearing transaction deposits. Depending on balance sheet activity, the movement in interest rates, and the economic outlook, we expect the net interest income and net interest margin FTE to remain fairly consistent for the remainder of 2025.

    Provision for Credit Losses

    The provision for credit losses for the first quarter of 2025 was $450,000 for loans, which was $150,000 higher than the provision for credit losses of $300,000 for the prior quarter. The increase in the first quarter of 2025 was related to loan growth in the quarter, combined with uncertainty regarding tariffs and trade. The provision in the fourth quarter of 2024, which included $200,000 for loans and $100,000 for unfunded loans commitments, was due to potential economic challenges resulting from the recent inflationary environment, changing monetary policy, and loan growth. We will continue to evaluate future provision needs in relation to current economic situations, loan growth, trends in asset quality, forecasted information, and other conditions influencing loss expectations.

    Noninterest Income

    Noninterest income totaled $5.3 million for the first quarter of 2025, an increase of $277,000, or 5.5%, compared to $5.0 million for the previous quarter. The increase was mainly due to higher brokerage income and a gain on equity securities, partially offset by lower mortgage loan income and Small Business Investment Company (“SBIC”) income.

    Brokerage income was $1.3 million for the first quarter of 2025, an increase of $401,000, or 43.4%, compared to $924,000 for the previous quarter. The higher income in the first quarter of 2025 was due to increased investing activity by clients. Assets under management were $1.14 billion as of March 31, 2025.

    Equity securities are an investment in a Community Reinvestment Act (“CRA”) mutual fund consisting primarily of bonds. The gain or loss on equity securities is a fair value adjustment primarily driven by changes in the interest rate environment. Due to the fluctuations in market rates between quarters, equity securities had a gain of $44,000 in the first quarter of 2025, compared to a loss of $91,000 for the previous quarter.

    Mortgage loan income totaled $530,000 for the first quarter of 2025, a decrease of $122,000, or 18.7%, compared to $652,000 for the previous quarter due to decreased purchase activity.

    SBIC income was $280,000 for the first quarter of 2025, a decrease of $66,000, or 19.1%, compared to $346,000 for the previous quarter. This decrease was primarily due to lower normal income received from these partnerships. We expect SBIC income to be lower in future quarters due to fund value fluctuations.

    Operating Expenses

    Operating expenses totaled $16.6 million for the first quarter of 2025, a decrease of $252,000, or 1.5%, compared to $16.8 million for the previous quarter. The decrease was mainly due to lower data processing expense and loan and deposit expense, partially offset by higher personnel expense.

    Data processing expense totaled $288,000 for the first quarter of 2025, a decrease of $393,000, or 57.7%, compared to $681,000 for the previous quarter. The decrease was attributable to receipt of a $447,000 periodic refund from our data processing center in the first quarter of 2025. This decrease was partially offset by new expenses and $14,000 of nonrecurring implementation fees related to online, mobile banking, and bill payment systems implemented in the first quarter of 2025.

    Loan and deposit expenses totaled $62,000 for the first quarter of 2025, a decrease of $272,000, or 81.4%, compared to $334,000 for the previous quarter. This decrease was primarily attributable to receipt of a $173,000 negotiated, variable rebate from a vendor in the first quarter of 2025.

    Personnel expenses totaled $10.0 million for the first quarter of 2025, an increase of $254,000, or 2.6%, compared to the previous quarter. This increase was primarily due to an increase in head count, restarting of payroll tax expense, and increased revenue-based commission compensation. As of March 31, 2025 and December 31, 2024, we had 375 and 369 total employees, respectively.

    Asset Overview

    As of March 31, 2025, assets were $3.19 billion, compared to assets of $3.15 billion as of December 31, 2024, an increase of $36.8 million, or 1.2%. In the first quarter, assets were mainly impacted by a $20.6 million, or 0.7%, increase in deposits. In the first quarter of 2024, liquid assets decreased $16.8 million, or 6.3%, to $252.2 million and averaged $275.9 million for the first quarter. As of March 31, 2025, we had sufficient liquid assets available and $1.66 billion accessible from other liquidity sources. The liquid assets to assets ratio was 7.91% as of March 31, 2025. Total securities increased $14.7 million, or 2.1%, to $699.5 million in the first quarter and were 22.0% of assets as of March 31, 2025. During the first quarter, loans HFI increased $39.7 million, or 1.9%, to $2.11 billion. The loans HFI to deposits ratio was 74.84% as of March 31, 2025, compared to 73.97% as of December 31, 2024.

    Securities

    Total securities as of March 31, 2025, were $699.5 million, an increase of $14.7 million, or 2.1%, from December 31, 2024. Securities increased mainly due to the purchase of new securities, combined with a smaller net unrealized loss on securities AFS.

    The estimated fair value of securities AFS totaled $566.9 million, net of $58.7 million of unrealized loss, as of March 31, 2025, compared to $550.1 million, net of $63.2 million of unrealized loss, as of December 31, 2024. As of March 31, 2025, the amortized cost of securities held-to-maturity (“HTM”) totaled $129.7 million compared to $131.8 million as of December 31, 2024. As of March 31, 2025, securities HTM had an unrealized loss of $21.8 million compared to $22.8 million as of December 31, 2024.

    As of March 31, 2025, equity securities, which is an investment in a CRA mutual fund consisting primarily of bonds, totaled $3.0 million compared to $2.9 million as of December 31, 2024.

    Loans

    Loans HFI as of March 31, 2025, were $2.11 billion, an increase of $39.7 million, or 1.9%, from $2.08 billion as of December 31, 2024. In the first quarter of 2025, we had steady new loan closing activity, combined with funding of loan construction commitments.

    Loans HFI by Category
      March 31, 2025   December 31, 2024   Change from
    December 31, 2024 to
    March 31, 2025
    (dollars in thousands) Amount   Percent   Amount   Percent   $ Change   % Change
    Real estate:                      
    Commercial real estate $ 892,205   42.2 %   $ 884,641   42.6 %   $ 7,564     0.9 %
    One-to-four family residential   617,679   29.2 %     614,551   29.6 %     3,128     0.5 %
    Construction and development   175,575   8.3 %     155,229   7.5 %     20,346     13.1 %
    Commercial and industrial   339,115   16.0 %     327,086   15.8 %     12,029     3.7 %
    Tax-exempt   61,722   2.9 %     64,930   3.1 %     (3,208 )   (4.9 %)
    Consumer   28,446   1.4 %     28,576   1.4 %     (130 )   (0.5 %)
    Total loans HFI $ 2,114,742   100.0 %   $ 2,075,013   100.0 %   $ 39,729     1.9 %

    Commercial real estate (“CRE”) loans are collateralized by owner occupied and non-owner occupied properties mainly in Louisiana. Non-owner occupied office loans were $54.2 million, or 2.6% of loans HFI, as of March 31, 2025, and are primarily centered in low-rise suburban areas. The average CRE loan size was $970,000 as of March 31, 2025.

    Health care loans are our largest industry concentration and are made up of a diversified portfolio of health care providers. As of March 31, 2025, total health care loans were 8.0% of loans HFI. Within the health care sector, loans to nursing and residential care facilities were 4.2% of loans HFI, and loans to physician and dental practices were 3.4% of loans HFI. The average health care loan size was $370,000 as of March 31, 2025.

    Asset Quality and Allowance for Credit Losses

    NPAs totaled $5.2 million as of March 31, 2025, an increase of $1.9 million, or 58.6%, from December 31, 2024. The increase was primarily due to a past due loan, partially offset by payoffs and charge-offs of nonaccrual loans. As of early April 2025, the past due loan was brought current by the customer, and NPAs were further reduced by receiving principal payments on two legacy nonaccrual loans. The ratio of NPAs to assets was 0.16% and 0.10% as of March 31, 2025 and December 31, 2024, respectively.

    As of March 31, 2025, the ACL was $21.8 million. The ratio of ACL to loans HFI was 1.03% as of March 31, 2025 and 1.05% as of December 31, 2024. The net charge-offs to average loans ratio was 0.02% for the first quarter of 2025 and 0.01% for the fourth quarter of 2024.

    Deposits

    As of March 31, 2025, deposits were $2.83 billion, an increase of $20.6 million, or 0.7%, compared to December 31, 2024. Average deposits for the first quarter of 2025 were $2.82 billion, an increase of $36.2 million, or 1.3%, from the prior quarter. The following tables provide details on our deposit portfolio:

    Deposits by Account Type
      March 31, 2025   December 31, 2024   Change from
    December 31, 2024 to
    March 31, 2025
    (dollars in thousands) Balance   % of Total   Balance   % of Total   $ Change   % Change
    Noninterest-bearing demand deposits $ 906,540   32.1 %   $ 866,496   30.9 %   $ 40,044     4.6 %
    Interest-bearing deposits:                      
    Interest-bearing demand deposits   147,343   5.2 %     154,720   5.5 %     (7,377 )   (4.8 %)
    NOW accounts   432,054   15.3 %     467,118   16.7 %     (35,064 )   (7.5 %)
    Money market accounts   569,613   20.2 %     556,769   19.8 %     12,844     2.3 %
    Savings accounts   175,239   6.2 %     169,894   6.1 %     5,345     3.1 %
    Time deposits less than or equal to $250,000   403,354   14.2 %     403,096   14.3 %     258     0.1 %
    Time deposits greater than $250,000   191,533   6.8 %     187,013   6.7 %     4,520     2.4 %
    Total interest-bearing deposits   1,919,136   67.9 %     1,938,610   69.1 %     (19,474 )   (1.0 %)
    Total deposits $ 2,825,676   100.0 %   $ 2,805,106   100.0 %   $ 20,570     0.7 %
    Deposits by Customer Type
      March 31, 2025   December 31, 2024   Change from
    December 31, 2024 to
    March 31, 2025
    (dollars in thousands) Balance   % of Total   Balance   % of Total   $ Change   % Change
    Consumer $ 1,388,944   49.1 %   $ 1,362,740   48.6 %   $ 26,204     1.9 %
    Commercial   1,200,367   42.5 %     1,178,488   42.0 %     21,879     1.9 %
    Public   236,365   8.4 %     263,878   9.4 %     (27,513 )   (10.4 %)
    Total deposits $ 2,825,676   100.0 %   $ 2,805,106   100.0 %   $ 20,570     0.7 %

    The increase in deposits in the first quarter of 2025 was mainly due to higher balances in consumer and commercial customer deposit accounts, partially offset by the seasonal outflow of funds from public entity customers.

    The Bank has a granular, diverse deposit portfolio with customers in a variety of industries throughout Louisiana. As of March 31, 2025, the average deposit account size was approximately $28,000.

    As of March 31, 2025, our estimated uninsured deposits, which are the portion of deposit accounts that exceed the FDIC insurance limit (currently $250,000), were approximately $875.2 million, or 31.0% of total deposits. This amount was estimated based on the same methodologies and assumptions used for regulatory reporting purposes. Also, as of March 31, 2025, our estimated uninsured deposits, excluding collateralized public entity deposits, were approximately $689.6 million, or 24.4% of total deposits. Our cash and cash equivalents of $252.2 million, combined with our available borrowing capacity of $1.66 billion, equaled 218.4% of our estimated uninsured deposits and 277.1% of our estimated uninsured deposits, excluding collateralized public entity deposits.

    Stockholders’ Equity

    Total stockholders’ equity as of March 31, 2025, was $333.3 million compared to $319.7 million as of December 31, 2024. The $13.6 million, or 4.2%, increase in stockholders’ equity during the first quarter of 2025 was attributable to $10.4 million of net income, a $3.9 million, net of tax, market adjustment to accumulated other comprehensive loss related to securities, and $149,000 of stock compensation, partially offset by $813,000 in cash dividends related to a $0.12 per share cash dividend that we paid on March 20, 2025.

    Non-GAAP Disclosure

    Our accounting and reporting policies conform to United States generally accepted accounting principles (“GAAP”) and the prevailing practices in the banking industry. Certain financial measures used by management to evaluate our operating performance are discussed as supplemental non-GAAP performance measures. In accordance with the Securities and Exchange Commission’s (“SEC”) rules, we classify a financial measure as being a non-GAAP financial measure if that financial measure excludes or includes amounts, or is subject to adjustments that have the effect of excluding or including amounts, that are included or excluded, as the case may be, in the most directly comparable measure calculated and presented in accordance with GAAP as in effect from time to time in the U.S.

    Management and the board of directors review tangible book value per share, tangible common equity to tangible assets, and realized book value per share as part of managing operating performance. However, these non-GAAP financial measures should not be considered in isolation or as a substitute for the most directly comparable or other financial measures calculated in accordance with GAAP. Moreover, the manner we calculate the non-GAAP financial measures that are discussed may differ from that of other companies’ reporting measures with similar names. It is important to understand how such other banking organizations calculate and name their financial measures similar to the non-GAAP financial measures discussed by us when comparing such non-GAAP financial measures.

    A reconciliation of non-GAAP financial measures to the comparable GAAP financial measures is included within the following financial statement tables.

    About Red River Bancshares, Inc.

    Red River Bancshares, Inc. is the bank holding company for Red River Bank, a Louisiana state-chartered bank established in 1999 that provides a fully integrated suite of banking products and services tailored to the needs of our commercial and retail customers. Red River Bank operates from a network of 28 banking centers throughout Louisiana and one combined loan and deposit production office in New Orleans, Louisiana. Banking centers are located in the following Louisiana markets: Central, which includes the Alexandria metropolitan statistical area (“MSA”); Northwest, which includes the Shreveport-Bossier City MSA; Capital, which includes the Baton Rouge MSA; Southwest, which includes the Lake Charles MSA; the Northshore, which includes Covington; Acadiana, which includes the Lafayette MSA; and New Orleans.

    Forward-Looking Statements

    Statements in this news release regarding our expectations and beliefs about our future financial performance and financial condition, as well as trends in our business, interest rates, and markets, are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements often include words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “project,” “outlook,” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.” The forward-looking statements in this news release are based on current information and on assumptions that we make about future events and circumstances that are subject to a number of risks and uncertainties that are often difficult to predict and beyond our control. As a result of those risks and uncertainties, our actual financial results in the future could differ, possibly materially, from those expressed in or implied by the forward-looking statements contained in this news release and could cause us to make changes to our future plans. Additional information regarding these and other risks and uncertainties to which our business and future financial performance are subject is contained in the section titled “Risk Factors” in our most recent Annual Report on Form 10-K and any subsequent quarterly reports on Form 10-Q, and in other documents that we file with the SEC from time to time. In addition, our actual financial results in the future may differ from those currently expected due to additional risks and uncertainties of which we are not currently aware or which we do not currently view as, but in the future may become, material to our business or operating results. Due to these and other possible uncertainties and risks, readers are cautioned not to place undue reliance on the forward-looking statements contained in this news release or to make predictions based solely on historical financial performance. Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. All forward-looking statements, express or implied, included in this news release are qualified in their entirety by this cautionary statement.

    Contact:
    Isabel V. Carriere, CPA, CGMA
    Executive Vice President, Chief Financial Officer, and Assistant Corporate Secretary
    318-561-4023
    icarriere@redriverbank.net

    FINANCIAL HIGHLIGHTS (UNAUDITED)
     
        As of and for the
    Three Months Ended
    (dollars in thousands, except per share data)   March 31,
    2025    		   December 31,
    2024    		   March 31,
    2024
    Net Income   $ 10,352     $ 9,306     $ 8,188  
                 
    Per Common Share Data:            
    Earnings per share, basic   $ 1.53     $ 1.37     $ 1.16  
    Earnings per share, diluted   $ 1.52     $ 1.37     $ 1.16  
    Book value per share   $ 49.18     $ 47.18     $ 43.43  
    Tangible book value per share (1)   $ 48.95     $ 46.95     $ 43.20  
    Realized book value per share (1)   $ 57.49     $ 56.07     $ 52.52  
    Cash dividends per share   $ 0.12     $ 0.09     $ 0.09  
    Shares outstanding     6,777,657       6,777,238       6,892,448  
    Weighted average shares outstanding, basic     6,777,332       6,797,469       7,050,048  
    Weighted average shares outstanding, diluted     6,796,707       6,816,299       7,066,709  
                 
    Summary Performance Ratios:            
    Return on average assets     1.32 %     1.18 %     1.07 %
    Return on average equity     12.85 %     11.46 %     10.77 %
    Net interest margin     3.17 %     3.04 %     2.80 %
    Net interest margin FTE     3.22 %     3.09 %     2.83 %
    Efficiency ratio     55.51 %     58.71 %     60.37 %
    Loans HFI to deposits ratio     74.84 %     73.97 %     74.22 %
    Noninterest-bearing deposits to deposits ratio     32.08 %     30.89 %     32.61 %
    Noninterest income to average assets     0.67 %     0.63 %     0.64 %
    Operating expense to average assets     2.12 %     2.14 %     2.07 %
                 
    Summary Credit Quality Ratios:            
    NPAs to assets     0.16 %     0.10 %     0.08 %
    Nonperforming loans to loans HFI     0.24 %     0.16 %     0.12 %
    ACL to loans HFI     1.03 %     1.05 %     1.06 %
    Net charge-offs to average loans     0.02 %     0.01 %     0.00 %
                 
    Capital Ratios:            
    Stockholders’ equity to assets     10.46 %     10.15 %     9.74 %
    Tangible common equity to tangible assets(1)     10.42 %     10.11 %     9.69 %
    Total risk-based capital to risk-weighted assets     18.25 %     18.13 %     17.84 %
    Tier I risk-based capital to risk-weighted assets     17.25 %     17.12 %     16.82 %
    Common equity Tier I capital to risk-weighted assets     17.25 %     17.12 %     16.82 %
    Tier I risk-based capital to average assets     12.01 %     11.86 %     11.44 %

    (1) Non-GAAP financial measure. Calculations of this measure and reconciliations to GAAP are included in the schedules accompanying this release.

    RED RIVER BANCSHARES, INC.
    CONSOLIDATED BALANCE SHEETS (UNAUDITED)
     
    (in thousands) March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024
    ASSETS                  
    Cash and due from banks $ 36,438     $ 30,558     $ 39,664     $ 35,035     $ 19,401  
    Interest-bearing deposits in other banks   215,717       238,417       192,983       178,038       210,404  
    Securities available-for-sale, at fair value   566,874       550,148       560,555       526,890       545,967  
    Securities held-to-maturity, at amortized cost   129,686       131,796       134,145       136,824       139,328  
    Equity securities, at fair value   2,981       2,937       3,028       2,921       2,934  
    Nonmarketable equity securities   2,349       2,328       2,305       2,283       2,261  
    Loans held for sale   2,178       2,547       1,805       3,878       1,653  
    Loans held for investment   2,114,742       2,075,013       2,056,048       2,047,890       2,038,072  
    Allowance for credit losses   (21,835 )     (21,731 )     (21,757 )     (21,627 )     (21,564 )
    Premises and equipment, net   59,034       59,441       57,661       57,910       57,539  
    Accrued interest receivable   10,553       10,048       9,465       9,570       9,995  
    Bank-owned life insurance   30,593       30,380       30,164       29,947       29,731  
    Intangible assets   1,546       1,546       1,546       1,546       1,546  
    Right-of-use assets   2,611       2,733       2,853       2,973       3,091  
    Other assets   32,965       33,433       31,285       34,450       32,940  
    Total Assets $ 3,186,432     $ 3,149,594     $ 3,101,750     $ 3,048,528     $ 3,073,298  
    LIABILITIES                  
    Noninterest-bearing deposits $ 906,540     $ 866,496     $ 882,394     $ 892,942     $ 895,439  
    Interest-bearing deposits   1,919,136       1,938,610       1,864,731       1,823,704       1,850,452  
    Total Deposits   2,825,676       2,805,106       2,747,125       2,716,646       2,745,891  
    Accrued interest payable   6,463       7,583       11,751       8,747       8,959  
    Lease liabilities   2,739       2,864       2,982       3,100       3,215  
    Accrued expenses and other liabilities   18,238       14,302       15,574       13,045       15,919  
    Total Liabilities   2,853,116       2,829,855       2,777,432       2,741,538       2,773,984  
    COMMITMENTS AND CONTINGENCIES   —       —       —       —       —  
    STOCKHOLDERS’ EQUITY                  
    Preferred stock, no par value   —       —       —       —       —  
    Common stock, no par value   38,710       38,655       41,402       44,413       45,177  
    Additional paid-in capital   2,871       2,777       2,682       2,590       2,485  
    Retained earnings   348,093       338,554       329,858       321,719       314,352  
    Accumulated other comprehensive income (loss)   (56,358 )     (60,247 )     (49,624 )     (61,732 )     (62,700 )
    Total Stockholders’ Equity   333,316       319,739       324,318       306,990       299,314  
    Total Liabilities and Stockholders’ Equity $ 3,186,432     $ 3,149,594     $ 3,101,750     $ 3,048,528     $ 3,073,298  
    RED RIVER BANCSHARES, INC.  
    CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)  
                   
        For the Three Months Ended  
    (in thousands)   March 31,
    2025
    		   December 31,
    2024
    		   March 31,
    2024
    		  
                           
    INTEREST AND DIVIDEND INCOME              
    Interest and fees on loans   $ 28,270   $ 28,285     $ 25,893    
    Interest on securities     4,856     4,623       4,064    
    Interest on deposits in other banks     2,661     2,699       3,039    
    Dividends on stock     21     23       22    
    Total Interest and Dividend Income     35,808     35,630       33,018    
    INTEREST EXPENSE              
    Interest on deposits     11,198     11,943       11,655    
    Interest on other borrowed funds     —     —       —    
    Total Interest Expense     11,198     11,943       11,655    
    Net Interest Income     24,610     23,687       21,363    
    Provision for credit losses     450     300       300    
    Net Interest Income After Provision for Credit Losses     24,160     23,387       21,063    
    NONINTEREST INCOME              
    Service charges on deposit accounts     1,383     1,452       1,368    
    Debit card income, net     992     960       1,022    
    Mortgage loan income     530     652       456    
    Brokerage income     1,325     924       987    
    Loan and deposit income     459     463       492    
    Bank-owned life insurance income     213     216       202    
    Gain (Loss) on equity securities     44     (91 )     (31 )  
    SBIC income     280     346       352    
    Other income (loss)     46     73       80    
    Total Noninterest Income     5,272     4,995       4,928    
    OPERATING EXPENSES              
    Personnel expenses     10,023     9,769       9,550    
    Occupancy and equipment expenses     1,794     1,716       1,616    
    Technology expenses     835     884       709    
    Advertising     333     313       337    
    Other business development expenses     558     486       475    
    Data processing expense     288     681       347    
    Other taxes     612     547       737    
    Loan and deposit expenses     62     334       (42 )  
    Legal and professional expenses     632     658       618    
    Regulatory assessment expenses     391     428       404    
    Other operating expenses     1,060     1,024       1,122    
    Total Operating Expenses     16,588     16,840       15,873    
    Income Before Income Tax Expense     12,844     11,542       10,118    
    Income tax expense     2,492     2,236       1,930    
    Net Income   $ 10,352   $ 9,306     $ 8,188    
    RED RIVER BANCSHARES, INC.
    NET INTEREST INCOME AND NET INTEREST MARGIN (UNAUDITED)
     
      For the Three Months Ended
      March 31, 2025   December 31, 2024
    (dollars in thousands) Average Balance Outstanding   Interest
    Income/
    Expense    		   Average
    Yield/
    Rate    		   Average Balance Outstanding   Interest
    Income/
    Expense    		   Average
    Yield/
    Rate
    Assets                      
    Interest-earning assets:                      
    Loans(1,2) $ 2,089,712     $ 28,270   5.41 %   $ 2,072,858     $ 28,285   5.34 %
    Securities – taxable   559,752       3,871   2.77 %     555,622       3,636   2.62 %
    Securities – tax-exempt   189,729       985   2.08 %     190,470       987   2.07 %
    Interest-bearing deposits in other banks   243,751       2,661   4.37 %     225,660       2,699   4.74 %
    Nonmarketable equity securities   2,330       21   3.56 %     2,307       23   3.99 %
    Total interest-earning assets   3,085,274     $ 35,808   4.64 %     3,046,917     $ 35,630   4.60 %
    Allowance for credit losses   (21,789 )             (21,824 )        
    Noninterest-earning assets   107,295               109,992          
    Total assets $ 3,170,780             $ 3,135,085          
    Liabilities and Stockholders’ Equity                      
    Interest-bearing liabilities:                      
    Interest-bearing transaction deposits $ 1,341,885     $ 5,641   1.70 %   $ 1,263,775     $ 5,658   1.78 %
    Time deposits   592,368       5,557   3.80 %     599,910       6,285   4.17 %
    Total interest-bearing deposits   1,934,253       11,198   2.35 %     1,863,685       11,943   2.55 %
    Other borrowings   —       —   — %     —       —   — %
    Total interest-bearing liabilities   1,934,253     $ 11,198   2.35 %     1,863,685     $ 11,943   2.55 %
    Noninterest-bearing liabilities:                      
    Noninterest-bearing deposits   884,484               918,804          
    Accrued interest and other liabilities   25,336               29,567          
    Total noninterest-bearing liabilities   909,820               948,371          
    Stockholders’ equity   326,707               323,029          
    Total liabilities and stockholders’ equity $ 3,170,780             $ 3,135,085          
    Net interest income     $ 24,610           $ 23,687    
    Net interest spread         2.29 %           2.05 %
    Net interest margin         3.17 %           3.04 %
    Net interest margin FTE(3)         3.22 %           3.09 %
    Cost of deposits         1.61 %           1.71 %
    Cost of funds         1.47 %           1.56 %

    (1) Includes average outstanding balances of loans held for sale of $2.6 million and $3.2 million for the three months ended March 31, 2025 and December 31, 2024, respectively.
    (2) Nonaccrual loans are included as loans carrying a zero yield.
    (3) Net interest margin FTE includes an FTE adjustment using a 21.0% federal income tax rate on tax-exempt securities and tax-exempt loans.

    RED RIVER BANCSHARES, INC.
    NET INTEREST INCOME AND NET INTEREST MARGIN (UNAUDITED)
     
      For the Three Months Ended
      March 31, 2025   March 31, 2024
    (dollars in thousands) Average Balance Outstanding   Interest
    Income/
    Expense    		   Average
    Yield/
    Rate    		   Average Balance Outstanding   Interest
    Income/
    Expense    		   Average
    Yield/
    Rate
    Assets                      
    Interest-earning assets:                      
    Loans(1,2) $ 2,089,712     $ 28,270   5.41 %   $ 2,015,063     $ 25,893   5.09 %
    Securities – taxable   559,752       3,871   2.77 %     569,600       3,048   2.14 %
    Securities – tax-exempt   189,729       985   2.08 %     197,817       1,016   2.05 %
    Interest-bearing deposits in other banks   243,751       2,661   4.37 %     224,301       3,039   5.42 %
    Nonmarketable equity securities   2,330       21   3.56 %     2,240       22   3.95 %
    Total interest-earning assets   3,085,274     $ 35,808   4.64 %     3,009,021     $ 33,018   4.35 %
    Allowance for credit losses   (21,789 )             (21,402 )        
    Noninterest-earning assets   107,295               100,486          
    Total assets $ 3,170,780             $ 3,088,105          
    Liabilities and Stockholders’ Equity                      
    Interest-bearing liabilities:                      
    Interest-bearing transaction deposits $ 1,341,885     $ 5,641   1.70 %   $ 1,261,361     $ 5,680   1.81 %
    Time deposits   592,368       5,557   3.80 %     582,847       5,975   4.12 %
    Total interest-bearing deposits   1,934,253       11,198   2.35 %     1,844,208       11,655   2.54 %
    Other borrowings   —       —   — %     —       —   — %
    Total interest-bearing liabilities   1,934,253     $ 11,198   2.35 %     1,844,208     $ 11,655   2.54 %
    Noninterest-bearing liabilities:                      
    Noninterest-bearing deposits   884,484               913,114          
    Accrued interest and other liabilities   25,336               25,055          
    Total noninterest-bearing liabilities   909,820               938,169          
    Stockholders’ equity   326,707               305,728          
    Total liabilities and stockholders’ equity $ 3,170,780             $ 3,088,105          
    Net interest income     $ 24,610           $ 21,363    
    Net interest spread         2.29 %           1.81 %
    Net interest margin         3.17 %           2.80 %
    Net interest margin FTE(3)         3.22 %           2.83 %
    Cost of deposits         1.61 %           1.70 %
    Cost of funds         1.47 %           1.56 %

    (1) Includes average outstanding balances of loans held for sale of $2.6 million and $2.0 million for the three months ended March 31, 2025 and 2024, respectively.
    (2) Nonaccrual loans are included as loans carrying a zero yield.
    (3) Net interest margin FTE includes an FTE adjustment using a 21.0% federal income tax rate on tax-exempt securities and tax-exempt loans.

    RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED)
     
    (dollars in thousands, except per share data) March 31,
    2025    		   December 31,
    2024    		   March 31,
    2024
    Tangible common equity          
    Total stockholders’ equity $ 333,316     $ 319,739     $ 299,314  
    Adjustments:          
    Intangible assets   (1,546 )     (1,546 )     (1,546 )
    Total tangible common equity (non-GAAP) $ 331,770     $ 318,193     $ 297,768  
    Realized common equity          
    Total stockholders’ equity $ 333,316     $ 319,739     $ 299,314  
    Adjustments:          
    Accumulated other comprehensive (income) loss   56,358       60,247       62,700  
    Total realized common equity (non-GAAP) $ 389,674     $ 379,986     $ 362,014  
    Common shares outstanding   6,777,657       6,777,238       6,892,448  
    Book value per share $ 49.18     $ 47.18     $ 43.43  
    Tangible book value per share (non-GAAP) $ 48.95     $ 46.95     $ 43.20  
    Realized book value per share (non-GAAP) $ 57.49     $ 56.07     $ 52.52  
               
    Tangible assets          
    Total assets $ 3,186,432     $ 3,149,594     $ 3,073,298  
    Adjustments:          
    Intangible assets   (1,546 )     (1,546 )     (1,546 )
    Total tangible assets (non-GAAP) $ 3,184,886     $ 3,148,048     $ 3,071,752  
    Total stockholders’ equity to assets   10.46 %     10.15 %     9.74 %
    Tangible common equity to tangible assets (non-GAAP)   10.42 %     10.11 %     9.69 %

    The MIL Network –

  • MIL-OSI: Sagtec Global Limited Achieves Strong Fiscal Year 2024 Performance with US$11.6 Million Revenue, Marking 78% Year-over-Year Growth

    Source: GlobeNewswire (MIL-OSI)

    KUALA LUMPUR, Malaysia, April 30, 2025 (GLOBE NEWSWIRE) — Sagtec Global Limited (NASDAQ: SAGT) (“Sagtec” or the “Company”), a leading provider of customizable software solutions, today announced its audited financial results for the financial year ended December 31, 2024 (the “Financial Results”).

    • Sagtec achieves record high revenue of US$11.6 million, for fiscal year 2024, reflecting a record high 78% Year-over-Year (YoY) growth.
    • Gross profit surged 49% YoY to US$2.8 million, driven by substantial increases in revenue.
    • Revenue contribution from the Speed+ smart ordering and QR ordering system subscriptions nearly doubled to 23% in 2024, reflecting strong market adoption.
    • Software development services also saw steady growth, contributing 10% of total revenue in 2024.
    • The company is now delivering stronger margins as it moves toward a more scalable and sustainable business model.

    “We are proud to have reached this milestone despite ongoing macroeconomic uncertainties. This success is a testament to the resilience of our business model and the unwavering dedication of our team. Our strong financial results underscore the growing demand for our innovative solutions and the effectiveness of our strategic initiatives. With significant growth in both revenue and gross profit, we are well-positioned for continued success. Looking ahead to 2025, we are focused on accelerating our expansion into key regional markets, including Indonesia, Hong Kong, and other Southeast Asian countries. This momentum reinforces our commitment to delivering sustained value to our clients, shareholders, and stakeholders as we continue to scale our presence in the digital economy,” said Kevin Ng Lok, Chairman, Executive Director and Chief Executive Officer of Sagtec.

    FINANCIAL RESULTS

    Revenue was US$11.6 million for fiscal year 2024, representing a surge of 78% YoY from US$6.5 million for fiscal year 2023. The growth in revenue is primarily attributed to strong performance across all core verticals – both services provided and tangible products, driven by the expansion in markets.

    • Sagtec’s revenue from services surged by 122% to US$6.8 million for the fiscal year 2024, compared to US$3.1 million in fiscal year 2023. This increase was primarily driven by strong client retention through subscription renewals and the successful acquisition of new subscribers during the year.
    • The company’s revenue generated from tangible products grew by 50%, reaching US$4.8 million for fiscal year 2024, compared to US$3.2 million in fiscal year 2023. This growth was largely fueled by the increased distribution of food ordering kiosks with screens, in response to shifting market behaviors and significant labor shortages in the F&B industry. Additionally, rising revenue from power bank charging stations highlights the success of Sagtec’s expansion strategy via dealers and resellers.
    • Sagtec’s revenue generated from rentals declined significantly to zero in fiscal year 2024. This strategic shift reflects the company’s decision to move away from the rental service model – which involves a long return on investment – in favor of direct machine sales, with ongoing maintenance supported by third-party operators.
      For the Fiscal Year Ended December 31  
      2024   2023   Change  
      USD   USD   %  
    Revenue from services 6,857,639   3,093,276   122 %
    Revenue from tangible products 4,774,291   3,192,013   50 %
    Revenue from rentals –   146   -100 %
    Others –   264,459   -100 %
    Total Revenue 11,631,930   6,549,894   78 %
                 

    Other income for fiscal year 2024 was zero, showing a significant decrease of 100% compared to US$264 thousand in fiscal year 2023.

    EBITDA stood at US$2.1 million in fiscal year 2024, reflecting a 17.7% margin of revenue, with a significant increase of 60%, compared to US$1.3 million in fiscal year 2023. This growth was primarily driven by higher profits and the reduction of non-essential expenses.

    Net income for the fiscal year 2024 amounted to US$1.6 million, representing a US$0.6 million increase from a net income of US$1.0 million for the fiscal year 2023.

    Cost of Service was US$8.9 million for the financial year ended December 31, 2024 representing an increase of 89% from US$4.7 million for the financial year ended December 31, 2023.

    • Cost of sales from services increased by 140% to US$5.9 million for the fiscal year 2024, compared to US$2.5 million for the fiscal year 2023. The rise is primarily due to the increase of server capacity and proportional maintenance expenses due to the growth in the expanding subscriber base.
    • Expenses for tangible products increased by 37% from US$2.1 million for the financial year ended December 31, 2023, to US$2.9 million for the financial year ended December 31, 2023. The increase is driven by the consistent growth in operational costs.
    • Cost of sales from rentals edged up by 1%, from US$0.73 million in fiscal year 2023 to US$0.74 million in 2024. The slight increase was mainly due to the expansion of rental spaces to support operations and accommodate growing client demand.
      2024   2023   Change  
      USD   USD   %  
    Cost of Sales – Services 5,943,246   2,477,397   140 %
    Cost of Sales – Tangible Products 2,895,333   2,118,865   37 %
    Cost of Sales – Rental 73,695   73,002   1 %
    Total 8,912,274   4,722,794   89 %
                 

    The expenses for the director compensation increased by 26% from US$0.12 million for fiscal year 2023 to US$0.15 million for the fiscal year 2024. The increase was due to the company’s commitment to rewarding management leadership for driving growth and enhancing overall performance.

    Non-controlling interests increased to 16% to US$17 thousand in fiscal year 2024 from US$11 thousand in fiscal year 2023. The increase of non-controlling interests is driven by the increase of other income.

    Operating income increased to US$2.1 million in fiscal year 2024, reflecting an increase of 55% compared to US$1.3 million in fiscal year 2023. This substantial growth was driven by effective and efficient cost management, despite rising operating expenses. It also reflects strong revenue growth from both services (146%) and tangible products (40%).

    As a result of the above, net profit was US$1.6 million for the financial year ended December 31, 2024, compared to US$1.0 million for the fiscal year ended December 31, 2023.

    Basic and diluted earnings per share was US$0.14 for the financial year ended December 31, 2024, compared to US$0.09 for the financial year ended December 2023, reflecting an increase of US$0.05 or 56%.

    CASH POSITION AND CAPITAL ALLOCATION

    Net cash generated from operating activities was US$1.3 million in fiscal year 2024, a significant increase of 134% from US$0.5 million in fiscal year 2023. This was primarily driven by net profit, adjustments for non-cash expenses, an increase in other receivables and prepayments, and a decrease in trade receivables.

    Net cash used in investing activities amounted to US$1.3 million in fiscal year 2024, representing a slight increase of 4% compared to US$1.2 million in fiscal year 2023. This increase was primarily driven by continued investment in plant and equipment.

    Net cash generated from financing activities declined to US$57 thousand in fiscal year 2024, reflecting a 92% decrease from US$788 thousand in fiscal year 2023. This decrease was primarily due to higher bank loan repayments and increased overdraft charges.

    Cash and cash equivalents stood at US$82 thousand as of December 31, 2024, marking a 254% increase compared to -US$52 thousand as of December 31, 2023. This figure includes cash on hand, bank balances, and cash held in share trading accounts. While the Company’s cash position improved significantly compared to the prior year, we continue to actively monitor and manage our liquidity position to ensure sufficient working capital to support operations and growth initiatives.

    About Sagtec Global Limited

    Sagtec is a leading provider of customizable software solutions, primarily serving the Food & Beverage (F&B) sector. The Company also offers software development, data management, and social media management to enhance operational efficiency across various industries. Additionally, Sagtec operates power-bank charging stations at 300 locations across Malaysia through its subsidiary, CL Technology (International) Sdn Bhd.

    For more information on the Company, please log on to https://www.sagtec-global.com/.

    Forward-Looking Statement

    This press release contains forward-looking statements. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as “may,” “will,” “intend,” “should,” “believe,” “expect,” “anticipate,” “project,” “estimate,” “continue” or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company’s expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the uncertainties related to market conditions and other risks contained in reports filed by the Company with the SEC. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company’s filings with the SEC, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward–looking statements to reflect events or circumstances that arise after the date hereof.

    Contact Information:

    Sagtec Global Limited Contact:
    Ng Chen Lok
    Chairman, Executive Director & Chief Executive Officer
    Telephone +6011-6217 3661
    Email: info@sagtec-global.com

    The MIL Network –

  • MIL-OSI Security: FBI and Gary Police Seek Help Locating Missing Gary Teen

    Source: Federal Bureau of Investigation (FBI) State Crime News

    Ja’Niyah McMichael Would Be 14 Years Old Today

    The FBI and Gary Police Department are asking for the public’s help to locate Ja’Niyah McMichael, a teenager, who has been missing since August 12, 2024. Ja’Niyah was reported missing by her mother from their home in the 1900 block of Malcom X Blvd in Gary, Indiana.

    Investigators believe Ja’Niyah may be the victim of foul play and the search for her remains an active and ongoing investigation.

    At the time of her disappearance, Ja’Niyah was last seen wearing black pajama pants, a black hooded sweatshirt, and red and black shoes. She has known connections to Gary and East Chicago, Indiana.

    Today, Ja’Niyah would be 14 years old.

    In an effort to bring Ja’Niyah home and hold those responsible accountable, there is a $20,000 reward for information that leads to the arrest and conviction of the individual(s) responsible for her disappearance. The FBI is offering a reward of up to $10,000 and the City of Gary is also offering a $10,000 reward.

    Anyone with information—no matter how small—is urged to come forward. Tips can be submitted anonymously to the FBI at 1-800-CALL-FBI (1-800-225-5324), Gary or online at tips.fbi.gov.

    MIL Security OSI –

  • MIL-OSI: authID to Report First Quarter 2025 Financial Results on May 13, 2025

    Source: GlobeNewswire (MIL-OSI)

    DENVER, April 30, 2025 (GLOBE NEWSWIRE) — authID® (Nasdaq: AUID) (“authID”), a leading provider of biometric identity verification and authentication solutions, today announced the Company will report financial results for the first quarter ended March 31, 2025 on Thursday, May 13, 2025, after the market close. Following issuance of the earnings release, authID Chief Executive Officer Rhon Daguro and Chief Financial Officer Ed Sellitto will host a webcast at 5:00 p.m. ET to discuss the financial results and provide a corporate update.

    To participate on the live conference call, please access this registration link and you will be provided with dial-in details. To avoid delays, participants are encouraged to dial into the conference call 15 minutes ahead of the scheduled start time. A live webcast of the call will also be available here and on the “Events & Presentations” page of the Company’s website at investors.authid.ai. Only participants on the live conference call will be able to ask questions.

    A replay of the event and a copy of the presentation will also be available for 90 days at authID’s Investor Relations Events.

    About authID Inc.

    authID (Nasdaq: AUID) ensures enterprises “Know Who’s Behind the Device™” for every customer or employee login and transaction through its easy-to-integrate, patented biometric identity platform. authID powers biometric identity proofing in 700ms, biometric authentication in 25ms, and account recovery with a fast, accurate, user-friendly experience. With our ground-breaking PrivacyKey Solution, authID provides a 1-to-1-billion false match rate, while storing no biometric data. authID stops fraud at onboarding, blocks deepfakes, prevents account takeover, and eliminates password risks and costs, through the fastest, most frictionless, and most accurate user identity experience demanded by today’s digital ecosystem.

    For further information please visit authid.ai

    Media Contacts

    NextTech Communications

    Walter Fowler
    1-631-334-3864
    wfowler@nexttechcomms.com

    Investor Relations Contact
    Investor-Relations@authid.ai

    The MIL Network –

  • MIL-OSI USA: ICYMI: Warren Reads 100 Acts of Trump Corruption Into Congressional Record To Mark 100 Days of the Trump Administration

    US Senate News:

    Source: United States Senator for Massachusetts – Elizabeth Warren
    April 30, 2025
    “[I]nstead of following through on his promise [to lower costs], Trump and his administration have paved the way for the president, his top officials, and his billionaire buddies to personally feed at the trough of government corruption.” 
    “That’s 100 corrupt acts in 100 days. Americans deserve accountability. We need to fight back—all of us.” 
    Video of Speech (YouTube)
    Washington, D.C. – On the 100th day of this Trump administration, U.S. Senator Elizabeth Warren (D-Mass.) read 100 reports of corruption from President Trump’s term so far into the Congressional record. 
    Senator Warren pointed to all the ways President Trump, his family, and associates like Elon Musk have used the presidency to enrich themselves, give favors to donors, and made it more difficult to hold him accountable for corruption. 
    Transcript: “One Hundred Days, One Hundred Acts of Corruption”U.S. Senate FloorApril 29, 2025
    As Prepared for Delivery
    Senator Elizabeth Warren: So here we are: one hundred days; one hundred acts of corruption.
    Today, I’m reading into the congressional record 100 reports of corruption from Donald Trump’s first 100 days in office. When he ran for office, Trump promised repeatedly that he would lower costs “on day 1.”  But instead of following through on his promise, Trump and his administration have paved the way for the president, his top officials, and his billionaire buddies to personally feed at the trough of government corruption. 
    So, count with me: In just one hundred days, Donald Trump, his family, and his Administration have:
    Turned the White House into a Tesla dealership.
    Fired independent commissioners at the FTC.
    Punished former officials who opposed his 2020 election lies.
    Paid for the White House Easter Egg roll by soliciting corporate sponsors who have business pending with the government.
    Helped Trump’s son set up a club — pay $500,000 for access to Trump’s cabinet.
    Declared that there would be NO tariff exceptions. Then permitted Apple’s CEO “behind the scenes” access — and poof, iPhone tariffs were cut.
    Created an opening for insider trading by reportedly giving Wall Street exclusive information about trade talks.
    Hosted million-dollar dinners between Big Pharma CEOs and their regulator RFK Jr.
    Launched crypto memecoin right before inauguration to make millions of dollars, then increased the value of those coins by signing executive orders making crypto a priority.
    Launched a meme coin for Melania, too. 
    Promised his “rich-as-hell” donors a giant tax handout, and is working to deliver. 
    Weakened rules insulating government workers from politics.
    Limited corporate foreign bribery investigations.
    Halted enforcement of the Corporate Transparency Act.
    Offered a private dinner with Trump himself—and a special tour of the White House—for the top 220 holders of his memecoin, permitting Trump and his family to profit both from the run up in the value of the coin AND the increase in trading on the Trump platform.
    Accepted $40 million for First Lady Melania’s documentary from Jeff Bezos – way above the market rate.
    Pointed to Bezos’s multi-million-dollar documentary payment as a model, when Warner Bros. asked Trump’s team how to improve its own relationship with the White House.
    Struck a deal with Amazon to stream Trump’s old show The Apprentice, which will mean more money for Trump as Amazon seeks tax breaks and other federal benefits.
    Coercing law firms to offer almost $1 billion in free legal work in an arrangement that experts say could run afoul of anti-bribery laws.
    Started undermining Medicare’s ability to negotiate drug prices after Big Pharma companies gave millions to Trump’s inauguration.
    Filed a meritless lawsuit against 60 Minutes and launched a baseless FCC investigation.
    Tried to get the AP to bend the knee and kicked them out of the White House briefing room when they refused.
    Hired Defense Secretary Hegseth’s younger brother to serve in a key role.
    Hired a longtime former partner of Don Jr. to serve as Ambassador to Greece. 
    Nominated Jared Kushner’s father to serve as Ambassador to France. 
    Selected Tiffany Trump’s father-in-law to serve as an adviser.
    Appointed an oil and gas executive to lead the Department of Energy.
    Selected a Chief of Staff who was a big-time lobbyist for clients like tobacco and mining companies.
    Named officials who had recently lobbied for oil and chemical giants to help write E-P-A rules.
    Appointed Mehmet Oz, who has close ties to Medicare Advantage insurers, to lead CMS to set payment rates and otherwise help out Medicare Advantage insurers.
    Appointed John Phelan, a major donor with no military or government experience, to lead the Navy and hand out Navy construction contracts.  
    Appointed Pam Bondi, a former lobbyist for a federal detention contractor, to lead the DOJ.
    Announced the DOJ would stop prioritizing enforcement of restrictions on foreign lobbyists, under the leadership of Bondi, who herself is a former foreign lobbyist for Qatar.
    Appointed Howard Lutnick, who has billions invested in companies accused of illegally facilitating crypto money laundering, to lead the Commerce Department.
    Appointed Marty Makary, the former executive of a company selling weight-loss drugs, to lead the FDA, which would regulate his company.
    Appointed Sean Duffy, who lobbied for the airline industry, to Transportation Secretary.
    Tapped Pete Hegseth, whose wife owns stock in large defense contractors, to lead the Defense Department.
    Tapped Doug Burgum — who made money from leasing land to Big Oil — to lead the Interior Department.
    Nominated a Big Oil lobbyist to run the Bureau of Ocean Energy Management.
    Nominated as IRS head Billy Long, an aggressive salesman for a fraud-riddled tax credit, who received donations after being nominated to clear old campaign debts. 
    Tapped Paul Atkins, a former crypto lobbyist, to lead the SEC.
    Appointed a former tax lobbyist, to lead tax policy.
    Appointed RFK Jr., who planned to get paid for anti-vax lawsuits while heading up HHS.
    Appointed a top Pentagon official who led a firm investing in defense contractors and has directed D-O-D to outsource as much as it can.
    Appointed someone who lobbied to privatize Medicare to lead OMB’s healthcare budget.
    Installed Steve Davis to effectively lead DOGE while also leading a Musk company.
    Installed another DOGE leader to control Treasury’s payment system while still holding down his day job as a software CEO.
    Handed power over crypto policy to a White House crypto czar who leads a venture capital firm that heavily invests in crypto.
    Selected a border czar who led a firm that got tens of millions of dollars of federal contracts for homeland security companies.
    Appointed Treasury Secretary Bessent who is gutting the IRS so that it can’t audit rich tax cheats — he’s a tax-dodging mega-millionaire.
    Pardoned Rod Blagojevich, former Illinois governor convicted for corruption, after his vocal support for Trump.
    Pardoned January 6 insurrectionists who tried to overturn an election he lost.
    Pardoned a Trump loyalist found guilty of wire fraud.
    Pardoned the son of a longtime Republican donor.
    Pardoned a corporation that had been fined $100 million for money laundering.
    Launched his own stablecoin while preparing to sign legislation that will help the stablecoin and let him oversee it. 
    Sold merch with presidential branding.
    Disbanded DOJ’s crypto unit after business talks between Binance and a Trump-backed crypto company ramped up.
    Halted SEC enforcement actions against crypto companies that enriched Trump. 
    Met with crypto executives who are asking Treasury to back off of oversight of their companies — all while exploring a deal to list a Trump-linked crypto company’s new stablecoin.
    Maintained financial ties between Trump officials and Trump’s media company. That includes: FBI Director Kash Patel who was gifted a huge award of Trump media company stock.
    Nominated Attorney General Bondi who owned $2 million in DJT shares.
    Paid the Education Secretary almost $1 million in Trump Media company shares.
    Intelligence Board nominees who have millions in Trump Media company shares.
    Selected a Special Envoy to the Middle East who wants to develop real estate in Gaza while running his own real estate firm.
    Appointed an FBI Director who consulted for the Qatari government.
    Picked that FBI Director even though he also received millions from a Cayman Island holding company with ties to China.
    Decided to cancel the Direct File program, which will help the bottom line of Intuit, which gave $1 million to Trump’s inauguration.
    Took its largest inauguration donation from a poultry company under DOJ scrutiny. After the donation, the SEC approved its parent company for the New York Stock Exchange.
    Dropped a probe into sexual misconduct allegations against Trump’s Education Secretary’s husband.
    Hosted dozens of foreign, federal, and state officials at Mar-a-Lago, helping enrich Trump. 
    Hosted a GOP retreat at another one of Trump’s resorts.
    Circumvented the normal contracting process to pick a company with close ties to Trump’s former campaign manager.
    Awarded a $30 million ICE contract to Trump insider Peter Thiel.
    Continued developing new Trump properties overseas, including in Saudi Arabia and the UAE.
    Hatched a plan for the State Department to pay Tesla $400 million dollars.
    Accepted a $4 million inauguration donation from a GOP megadonor and nominated him as UK ambassador the same day.
    And Donald Trump took actions that could advance the personal interests of his co-president Elon Musk: 

    Fired EEOC leaders investigating and suing Tesla.
    Illegally fired the NLRB Chair, which filed a complaint against SpaceX.
    Gutted CFPB staff and fired the Director after they investigated complaints against Musk’s companies.
    Gutted the Department of Labor office investigating Tesla and Space X.
    Fired the USAID Inspector General, who launched a probe into satellite terminals made by Musk’s Starlink. 
    Targeted the National Highway Traffic Safety Administration staff who were reportedly, quote, a “thorn in Tesla’s side.”
    Said Musk would self-police his conflicts of interest. Yeah right…
    Pressured the Administrator of the FAA, which fined Musk’s SpaceX, to resign .
    Permitted Musk to keep his financial disclosure hidden. I’ve got a new bill to fix that!
    Allowed Musk’s Starlink to start working with the FAA after Musk criticized the FAA’s air traffic telecom system. 
    Made Musk’s SpaceX the frontrunner for a new lucrative Golden Dome contract.
    Stood by Musk when his X executives told an advertising firm to increase ad revenue — threatening that Musk could interfere with a pending merger.
    Permitted Musk to join Trump’s interview with the Air Force secretary nominee while SpaceX held billions of dollars in contracts with the Air Force. 
    Permitted the National Transportation Safety Board to share news related to the airplane crashes in Washington and Philadelphia only on Musk-owned X.
    Permitted the Social Security Administration to only share important public communication on X.
    Dropped DOJ’s anti-discrimination complaint against Musk’s SpaceX.
    Fired FDA staffers reviewing Elon Musk’s Neuralink clinical trial applications.
    And for our closing six moves that make every bit of this corruption even harder to root out, Trump got rid of cops on the beat:

    Fired 18 Inspectors General who make sure the federal agencies follow the law.
    Fired the head of the Office of Special Counsel who protects whistleblowers and makes sure that civil service laws are fired.
    Fired the head of the Office of Government Ethics who watches to see that the President and his Administration follow the laws on conflicts of interest, bribery and other ethics issues.
    Fired DOJ prosecutors who worked on January 6th investigations.
    Sidelined DOJ’s office that reviews the legality of executive orders.
    Gutted DOJ’s office that prosecutes misconduct by public officials.
    That’s 100 corrupt acts in 100 days. Americans deserve accountability. We need to fight back—all of us. 

    MIL OSI USA News –

  • MIL-Evening Report: Confirmed: Australian weapons sold to Israel, reveals Declassified Australia

    Report by Dr David Robie – Café Pacific. –

    SPECIAL REPORT: By Michelle Fahy

    The Australian counter-drone weapons system seen at a weapons demonstration in Israel recently is actually just one of a few that were sold by the Canberra-based company Electro Optic Systems (EOS) and sent through its wholly-owned US subsidiary to Israel, Declassified Australia can reveal.

    It was the ABC who broke the news of the EOS weapons system being provided for the demonstration trial. In response, Prime Minister Anthony Albanese continued to insist, as he has since the war in Gaza began, that Australia does not sell weapons to Israel.

    However the weapon displayed wasn’t just provided on loan for the demonstration – the weapon has been “sold” to the Israelis. Declassified Australia can reveal that EOS, by its own admission, sold more than one of its R400 weapons systems to the Israelis prior to the demonstration.

    • READ MORE: Other Declassified Australia reports

    An EOS company presentation, titled “2024 Full Year Results”, describes a “potential new customer” for the R400 weapon in the “Middle East” (page 36). The presentation, prepared for EOS shareholders and lodged with the Australian Stock Exchange, is dated 25 February 2025.

    EOS describes this potential new customer for its R400 as a “Preliminary” stage opportunity, valued at less-than-A$100 million, and states that more than one weapon was sold:

    “Sample products sold, demo held, discussions underway.” [Emphasis added]

    The company also points out a sense of urgency with the potential sale:

    “Potential to accelerate due to operational requirements.”

    In another section of the report (page 16), EOS reports a single entry in the “Preliminary” stage of a potential sale of R400 weapons, with the “Bid being prepared or submitted”.

    EOS states (page 36) the “estimated opportunity size” of the sale is up to “$100 million”. At a unit price per system of A$1.55 million that potential contract is enough to purchase 60 of the R400 counter-drone system.

    Under the heading “Notable Demonstrations” (page 15), EOS refers to “Counter Drone evaluation testing with New Customer”, held in January 2025, with an accompanying photograph of its R400 counter-drone cannon with five senior Israeli defence leaders posing beside it at the testing site.

    EOS itself has revealed that the new customer is clearly Israel.

    EOS states it had “supported a local prime [a major local weapons company] to demonstrate counter-drone capabilities in a high profile local demonstration”. EOS states that its R400 weapon system had “performed extremely well, earning high praise from the organisers.”

    An extract from the Electro Optic Systems (EOS) company document titled “2024 Full Year Results”, showing a photograph of the EOS R400 counter-drone weapon system that was demonstrated to gathered Israeli defence and industry officials in January 2025. Image: Electro Optic Systems

    The location of the demonstration of the Australian weapon is verified as being in Israel’s southern Negev Desert by a 5 February press release about the weapon testing, released by Israel’s Ministry of Defence.  [Note: Since publication of this article, the Press Release has been taken down from the Israeli Defense Ministry website, but is still available here, for now.]

    An Israel Defense Force photograph included with the press release, is the same photo of the R400 weapon and Israeli officials, as published in the EOS document. Israel’s Ministry of Defence also posted this video of the final demonstration event, with a firing of the EOS R400 weapons system appearing at 01:06.

    In the photograph standing behind the Australian company’s weapon are four senior Israeli defence officials, together with an Israeli defence industry CEO.

    A photo distributed with an Israel Ministry of Defense press release showing the EOS R400 counter-drone weapons system at operational trials testing advanced counter-drone technologies organised by the Directorate of Defence Research & Development in January 2025. Pictured: Acting director-general of the Israel Ministry of Defence, Itamar Graf (from left); Israeli Defence Minister, Israel Katz; CEO of Israel Aerospace Industries (IAI), Boaz Levy; Head of Israel Defence Force’s Planning and Force Build-Up Directorate, Maj.Gen. Eyal Harel; Head of the Israel Directorate of Defence Research & Development, Brig.Gen. (retd) Dr Daniel Gold. Image: Israel Ministry of Defense

    Countering drone attacks
     EOS’ powerful R400 remote weapons system has a 2km range and is renowned for its lethality and precision in targeting. Using a sophisticated gimbal, its accuracy is maintained even when the system is mounted and used atop a moving vehicle. The weapon can be seen in use on a moving vehicle here in this video clip.

    The EOS R400 is not solely a counter-drone weapons system. It can be configured to fire weapons ranging from machine guns, to 30mm cannons, automatic grenade launchers, anti-tank guided missiles and 70mm rockets, meaning it can be used against multiple types of targets in addition to drones — including people, buildings, armoured vehicles, and tanks.

    The R400 Slinger variation is marketed by EOS as a system designed solely to counter modern drone threats with a single, lethal shot.

    The Australian company’s customer in Israel is noted in the EOS company document as being an Israeli “local prime” arms manufacturer. Both Israel Aerospace Industries (IAI) and Elbit Systems participated in the demonstration trials, each demonstrating a Counter Unmanned Aerial System (C-UAS) that incorporated a 30mm cannon.

    EOS sees a big future for the R400 and its suite of remote weapons systems. The EOS 2024 Financial Report was lodged with ASX on 25 February 2025. In the “Market Overview”section, it discusses weapons contracts signed in 2024, and notes (page 8) that:

    “[EOS] Defence Systems is in active discussions and contract negotiations for the provision of RWS [Remote Weapons Systems] and related components with other potential customers.”

    “Assuming the evaluation of these systems progresses positively, EOS would hope to move to sell larger, commercial quantities to these customers.” 

    EOS R-400S Mk 2 30mm Remote Weapons Station being fired while mounted to a tactical vehicle. Image: Video screen shot/Defence Technology Review Magazine

    Australia obliged to act on defence transfers
     In October 2024, the UN’s Independent International Commission of Inquiry on the Occupied Palestinian Territory reported on the implementation of the International Court of Justice’s (ICJ) findings that Israel may be committing “genocide”.

    As reported by Kellie Tranter in Declassified Australia in November, the Australian government’s international legal responsibilities extend to investigating and regulating individuals and corporate entities who act in and from Australia to support the legally proscribed conduct of the Israeli State.

    The Commission stated:

    “Thus, the Commission recommends that any State engaged in such transfer or trade to Israel shall cease its transfer or trade until the State is satisfied that the goods and technology subject to the transfer or trade are not contributing to maintaining the unlawful occupation or to the commission of war crimes or genocide and thereafter throughout any period when the State is not so satisfied.” [Emphasis added]

    The UN Commission makes clear what trade it refers to:

    “On the issue of arms and military transfer and trade relating to Israel’s military capability, States have a duty to conduct a due diligence review of all transfer and trade agreements with Israel, including but not limited to equipment, weapons, munitions, parts, components, dual use items and technology, to determine whether the goods or technology subject to the transfer or trade contribute to maintaining the unlawful occupation or are used to commit violations of international law.” [Emphasis added]

    If the government becomes aware of an impending military transfer of weapons or technology defined above, to Israel – as the stated intentions of EOS reported here make clear – it is obliged to investigate and if necessary intervene to halt the transfer:

    “This includes both preexisting agreements and future transfers to Israel. States are obliged to demonstrate that any transfer or trade relating to military capability is not being used by Israel to maintain the unlawful occupation or commit violations of international law.” [Emphasis added]

    Words are not enough
     The Australian government and the Defence Department have continued their obfuscation of Australia’s weapons trade with Israel, as Declassified Australia has been reporting repeatedly.

    ABC television has reported how the government continues to insist no weapons or ammunition had been supplied “directly to Israel” since its latest genocidal war on Gaza began. The addition of the word “directly” is a notable change to the government’s wording, since this EOS news emerged.

    In response to the ABC report, Prime Minister Albanese said: “We do not sell arms to Israel . . .  We looked into this matter and the company has confirmed with the Department of Defence that the particular system was not exported from Australia. Australia does not export arms to Israel.”

    Declassified Australia has previously reported on the Albanese Government’s repeated and misleading use of the phrase “to Israel”. Arms companies are known for exporting their weaponry, or parts and components thereof, via third party countries in an attempt to cover their tracks.

    A defence industry source told the ABC the Australian-made components of the EOS R400 remote weapons system were assembled at the company’s wholly-owned US subsidiary in Alabama USA, before being shipped to Israel without an Australian export approval.

    Military exports, including ammunition, munitions, parts and components, do not need to travel ‘directly’ to Israel to be prohibited under the Arms Trade Treaty.

    Governments are required to find out where their weapons will, or may, end up and then make responsible decisions that comply with the treaty. A government must consider and assess the potential ‘end users’ of its military exports.

    A UN expert panel has issued repeated demands that States and companies cease all arms transfers to Israel or risk complicity in international crimes, possibly including genocide. It stated:

    “An end to transfers must include indirect transfers through intermediary countries that could ultimately be used by Israeli forces, particularly in the ongoing attacks on Gaza.…” [Emphasis added.]

    Greens’ defence spokesperson, Senator David Shoebridge, has said, “What we might be seeing here is the impact of what’s called AUKUS Pillar 2, the removal of any controls for the passage of weapons between Australia and the United States, and then Australia permitting the United States to send Australian weapons anywhere”.

    The EOS R400 remote weapon system integrated with the Oshkosh Joint Light Tactical Vehicle. Image: US Army

    Not the first time
     EOS has a history of supplying its remote weapons systems to military regimes accused of extensive war crimes.

    During the catastrophic Yemen war which started in 2014, despite significant evidence of war crimes, EOS sold its weapons systems to both Saudi Arabia and the United Arab Emirates. EOS enjoyed the full support of the Turnbull coalition government and its defence industry minister Christopher Pyne.

    In early 2019, ABC TV reported, Saudi Arabia awarded Australian weapons manufacturer EOS a contract to supply it with 500 of its R400 Remote Weapons Systems.

    The company has also benefited from the government-industry ‘revolving door’. Former chief of army, Peter Leahy, was on the EOS board from 2009 until late 2022, encompassing the period of the Yemen war. He served as the company’s chair from mid-2021 until his departure.

    The two longest-serving current members of the EOS board are former chief of air force, Geoff Brown (joined 2016) and former Labor senator for the ACT, Kate Lundy (joined 2018).

    The release of a Human Rights Watch (HRW) report in 2023 raised serious concerns about EOS and its Saudi Arabian arms deals.

    HRW’s report revealed that hundreds, possibly thousands, of unarmed migrants and asylum-seekers had been killed at the Yemen-Saudi border in the 15 months between March 2022 and June 2023, allegedly by Saudi officers.

    Human Rights Watch says it identified on Google Earth what looks like “a Mine-Resistant Ambush Protected (MRAP) vehicle” near a Saudi border guard posts north of the Yemeni refugee trail in January 1, 2023.

    The vehicle has what appears to be “a heavy machine gun mounted in a turret on its roof”. This description closely matches the military equipment that Australia sold to Saudi Arabia a few years earlier.

    Declassified Australia put a number of questions to EOS, the Department of Defence, and the offices of the Prime Minister, the Defence Minister, and the Foreign Minister. None responded to our questions on this matter.

    Michelle Fahy is an independent writer and researcher, specialising in the examination of connections between the weapons industry and government, and has written in various independent publications. She is on X @FahyMichelle, and on Substack at UndueInfluence.substack.com. This article has been republished from Declassified Australia with permission.

    This article was first published on Café Pacific.

    MIL OSI Analysis – EveningReport.nz –

  • MIL-OSI Asia-Pac: LCQ16: Promoting the sports atmosphere in schools

    Source: Hong Kong Government special administrative region

         Following is a question by the Hon Vincent Cheng and a written reply by the Secretary for Education, Dr Choi Yuk-lin, in the Legislative Council today (April 30):

    Question:
     
         It has been reported that the Schools Sports Federation of Hong Kong, China (HKSSF) has earlier on launched the inaugural HKSSF Finals, featuring a number of Jing Ying tournaments or inter-area competitions held at the Kai Tak Sports Park, which have brought heightened interest and attention to inter-school competitions. In addition, the Chief Executive has proposed in the 2024 Policy Address to include Physical Education (PE) in the primary school internal assessments starting from the 2026/27 school year, so as to encourage student participation in physical activities on a regular basis. Regarding the promotion of the sports atmosphere in schools, will the Government inform this Council:
     
    (1) as it is learnt that about 30 000 inter-school competitions are currently held each year in Hong Kong, and quite a number of new sports or urban sports have emerged in recent years, whether the authorities have plans to allocate additional resources to the HKSSF to enhance the arrangements of inter-school competitions, thus enabling the school sector to organise more varieties of competitions of high quality;
     
    (2) given that at present there are Jing Ying tournaments and all Hong Kong inter-school competitions in nine and eight sports events respectively for secondary schools, whether the authorities have plans to introduce more territory-wide inter-school competitions (especially elite sports that are popular among students, such as fencing and cycling), so as to enable student participation in more high-level competitions, thereby identifying more athletes with potential for training and better dovetailing with the development of elite sports; if so, of the details; if not, the reasons for that;
     
    (3) as it has been reported that there are four major assessment domains (i.e. physical fitness, attitudes, sports skills and knowledge) for the PE subject in the primary school internal assessments, of the criteria based on which schools are required to determine students’ scores in the subject; how the authorities will encourage schools to make use of this opportunity to further cultivate students’ interest in doing sports; and
     
    (4) whether the authorities have plans to assist schools in organising more new or interesting sports events and allowing students to participate on their own terms, thereby promoting the sports atmosphere in schools; if so, of the details; if not, the reasons for that?
     
    Reply:
     
    President,
     
         In consultation with the Culture, Sports and Tourism Bureau and the Schools Sports Federation of Hong Kong, China (HKSSF), our consolidated reply to the question raised by the Hon Vincent Cheng is as follows:
     
     (1) and (2) The Government actively supports the development of sports and promotes sports in the community through subsidising various national sports associations (NSAs), including the HKSSF. With the completion of the Kai Tak Sports Park, the Government also provides quality competition venues to host different inter-school sports events, with a view to attracting the participation of more young people and students and enhancing the sports ambience in schools.
     
         The Leisure and Cultural Services Department (LCSD) has allocated around $620 million in 2025-26 as block grant under the Sports Subvention Scheme to various NSAs to promote sports in the community, youth training programmes, community participation, squad training at all levels and overseas exchange programmes and competitions. Over the past six years, the block grant provided by the LCSD to the NSAs has increased from around $300 million per year to over $600 million per year. In approving funding for each NSA (including the HKSSF) each year, the LCSD considers factors including the annual plans submitted by the NSAs, as well as their past performance, expenditure patterns, programme arrangements, and subvention management.
     
         The HKSSF, a recognised NSA of the Sports Federation & Olympic Committee of Hong Kong, China subsidised by government departments including the LCSD and the Education Bureau (EDB), organises and participates in various local and overseas inter-school sports competitions. To better dovetail with the development of elite sports, the HKSSF has established with other NSAs a system of training and selection for elite athletes to provide student athletes with specific sports training of a high standard, thereby feeding potential athletes to relevant NSAs and preparing them for higher-level competitions in future. In the past year, over 1 000 primary and secondary schools across the territory participated in activities organised by the HKSSF, accounting for about 97 per cent of the total number of schools in Hong Kong; around 130 000 students participated in inter-school competitions, covering about 37 sports, approximately 70 per cent of which were elite sports such as fencing, swimming, and athletics. These competitions also involved urban sports such as 3-on-3 basketball and futsal. With dedicated efforts of the Government, there are already a great variety of high quality sports competitions in the school sector, enabling students’ participation in more high-level competitions and facilitating the identification of more athletes with potential.
     
    (3) In October 2024, the EDB announced the optimised arrangement of the weighting of subjects in the Internal Assessments (IA) for the Secondary School Places Allocation. Physical Education (PE) will be included in the IA in the second term of Primary five from the 2026/27 school year, so as to further help students develop a habit of joining sports activities from young age for strengthening their physique as well as provide them with the motivation to understand and improve their physical fitness, thereby achieving the learning goal of “Healthy Lifestyle”. The new measure has received general support from various stakeholders.
     
         Promoting the healthy growth of students is the first and foremost aim of the IA of PE, with an emphasis on foundation skills as well as objective and achievable health ratings. The IA of PE also builds on the domains and standards of PE assessment currently adopted by schools in general, including Physical Fitness, Attitudes, Sports Skills, and Knowledge (abbreviated as F.A.S.K.), and is a regular task of schools. Schools will refer to the relevant curriculum documents published by the EDB, including curriculum guides, the “Physical Education Learning Outcomes Framework”, and the assessment standards for physical fitness specified in the School Physical Fitness Award Scheme (Note 1) in adopting diversified modes of assessment, so as to enhance the effectiveness in learning and teaching through allowing students to demonstrate their learning outcomes in various ways and catering for their diverse potential, abilities and needs. Schools are required to set out clear learning objectives, scope of assessment, focus and format of assessment, and assessment criteria, etc, to enable students and parents to understand the relevant assessment criteria and arrangements. 
     
         The EDB will continue to update curriculum documents, develop learning and teaching resources, and organise professional development programmes for teachers. In addition, the EDB will provide a series of support measures to promote PE development in schools with a life-wide learning approach, including organising briefing sessions for schools and parents, and setting up a professional network of “Primary School PE Assessment Learning Circle”, so as to further assist students in developing an active and healthy lifestyle.
     
    (4) The EDB has included the World Health Organisation’s recommendation that children and adolescents aged five to 17 should accumulate at least an average of 60 minutes daily of moderate- to vigorous-intensity physical activities (MVPA60) across the week as one of the directions of the PE curriculum. It has also introduced the “MVPA60 Award Scheme” with the slogan “Let’s exercise every day, exercise together and exercise with others” to encourage students to exercise regularly with their families, classmates or friends. More than 210 000 students have participated in the Scheme since its inception. In addition, the “Active Students, Active People” Campaign (Note 1) has also been launched since the 2021/22 school year to rally the efforts of schools and parents as well as other stakeholders to promote an optimised sports ambience in schools and in society. The Campaign offers a series of PE activities as well as learning and teaching resources to support schools in mobilising students’ participation in physical activities and further engaging them in developing an active and healthy lifestyle. Demonstrations of different sports and experiences of Olympic and emerging sports are featured in these activities to enhance students’ interest and provide them with opportunities in participating in physical activities, thus promoting the sports ambience in schools. The Campaign has recorded the participation of more than 60 000 students since its launch. The EDB will inject new elements into the Campaign in a timely manner so as to meet the needs of schools.
     
         In addition, the EDB disbursed a one-off grant of $150,000 to schools in March 2024 to support them in organising various activities, subsidising students’ participation in diversified sports activities (e.g. emerging or fun sports), purchasing or upgrading PE/sports equipment in schools, etc., with a view to increasing opportunities for students to participate in sports and promoting the sports ambience in schools on all fronts.
     
         Regarding teacher training, the EDB collaborates with local universities to organise the annual Hong Kong Physical Education Teachers Conference, which brings together various experts in PE to conduct thematic sharing. Teaching workshops on various sports, including urban sports such as 3-on-3 basketball and sport climbing, and such emerging sports as pickleball, tchoukball, floorball and Baseball5, are also held to enrich teachers’ professional knowledge and assist them in organising diversified activities for students within and outside the classroom, with a view to promoting students’ participation in different kinds of sports activities and enriching their sports learning experiences.
     
         Moreover, the EDB has been collaborating with government departments, relevant bodies and organisations to organise various physical activities and sports programmes, such as the School Sports Programme, as well as “Project MuSE” and “Jump Rope Together” Rope Skipping Scheme 2.0 funded by the Hong Kong Jockey Club Charities Trust, to provide students with more opportunities to participate in sports activities during leisure time, foster a sporting culture in schools and identify student athletes with potential for further training.
     
    Note 1: The School Physical Fitness Award Scheme (spfas.hkuhealth.com), jointly developed by the EDB, the Hong Kong Childhealth Foundation and the Physical Fitness Association of Hong Kong, China, has been in place and developed in the school sector for over 35 years.
     
    Note 2: www.edb.gov.hk/en/curriculum-development/kla/pe/asap/index.html

    MIL OSI Asia Pacific News –

  • MIL-OSI: Subsea 7 S.A. Announces First Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    Luxembourg – 30 April 2025 – Subsea 7 S.A. (Oslo Børs: SUBC, ADR: SUBCY, ISIN: LU0075646355, the Company) announced today results of Subsea7 Group (the Group, Subsea7) for the first quarter which ended 31 March 2025.

    Highlights 

    • First quarter Adjusted EBITDA of $236 million, up 46% on the prior year, equating to a margin of 15%
    • Strong operational and financial performance from both Subsea and Conventional and Renewables, with Adjusted EBITDA margins of 18% and 10% respectively
    • Guidance for full year 2025 reaffirmed
    • A high-quality backlog of $10.8 billion gives over 80% visibility on 2025 revenue guidance and supports the outlook for Adjusted EBITDA margin expansion to 18 to 20%
    • Balance sheet remains strong with net debt including lease liabilities of $632 million, equating to 0.5 times the Adjusted EBITDA generated in the last four quarters
        Three Months Ended
    For the period (in $ millions, except Adjusted EBITDA margin and per share data)     31 Mar 2025
    Unaudited    		 31 Mar 2024
    Unaudited
    Revenue     1,529 1,395
    Adjusted EBITDA(a)     236 162
    Adjusted EBITDA margin(a)     15% 12%
    Net operating income     77 20
    Net income     17 29
             
    Earnings per share – in $ per share        
    Basic     0.06 0.09
    Diluted(b)     0.06 0.09
             
    At (in $ millions)      

    31 Mar 2025
    Unaudited

    		  

     31 Dec 2024
    Unaudited
    Backlog(a)     10,819 11,175
    Book-to-bill ratio(a)     0.6x 1.2x
    Cash and cash equivalents     459 575
    Borrowings     (691) (722)
    Net debt excluding lease liabilities(a)     (232) (147)
    Net debt including lease liabilities(a)     (632) (602)

    (a) For explanations and reconciliations of Adjusted EBITDA, Adjusted EBITDA margin, Backlog, Book-to-bill ratio and Net debt refer to the ‘Alternative Performance Measures’ section of the Condensed Consolidated Financial Statements.

    (b) For the explanation and a reconciliation of diluted earnings per share refer to Note 7 ‘Earnings per share’ to the Condensed Consolidated Financial Statements.

    John Evans, Chief Executive Officer, said:

    Subsea7 had a good start to 2025 with solid financial performance underpinned by strong project execution, which offset a heavy vessel maintenance schedule. The Group reported 10% revenue growth year-on-year and Adjusted EBITDA margin expansion of 380bps, putting us on track to meet full year expectations. With backlog of $10.8 billion including $4.8 billion for execution in the remainder of the year, we have a high level of visibility for 2025.

    Although uncertainty in the global economy has increased in recent months, the outlook for long-term energy demand growth remains positive. Subsea7’s strategy to focus on long-duration developments in cost-advantaged sectors of the deepwater adds resilience to our subsea business, and our exposure to strategic gas developments, such as the Sakarya field in Türkiye, and new oil provinces such as Namibia, gives us further confidence. In offshore wind, we are positive about the opportunities presented by this year’s CFD allocation round in the UK, where it is expected that the volume of projects sanctioned will nearly double year-on-year. We are well-positioned in this market, with a strong track record and collaborative client relationships.  

    Overall, while volatility in commodity prices and global tariffs create headwinds for investor sentiment in the sector, the fundamentals of our industry remain robust and our focused strategy leaves the Group well-positioned to deliver strong growth in profitability and cash generation in 2025.

    First quarter project review
    During the first quarter, we undertook significant planned vessel maintenance. This maintenance ensures that our vessels are optimised ahead of a busy year. Nevertheless we made good progress on our subsea, conventional and renewables projects. In Africa, Seven Arctic was active installing flexibles and umbilicals at Agogo in Angola, where it was joined by Seven Borealis, after it completed Zuluf in Saudi Arabia. Seven Pacific was busy at the Raven field in Egypt before mobilising for early flexlay work at Sakarya in Türkiye. In the Americas, Seven Oceans undertook work on a range of projects including Sunspear, Salamanca and Shenandoah in the US, while Seven Seas worked mainly on Cypre in Trinidad and Tobago and Seven Vega continued rigid pipelay at Mero 3 in Brazil.   

    In Renewables, Seaway Strashnov and Seaway Alfa Lift underwent maintenance before preparing to restart work at Dogger Bank in the UK. We also took advantage of the winter off-season to install a monopile gripper on Seaway Ventus before starting the East Anglia THREE project in the UK, where we will install 95 monopiles. In Taiwan we were active on Hai Long.

    First quarter financial review
    Revenue was $1.5 billion an increase of 10% compared to the prior year period. Adjusted EBITDA of $236 million equated to a margin of 15%, up from 12% in Q1 2024. A strong operational performance in Subsea and Conventional, and high activity in Taiwan in Renewables helped offset seasonal weakness and vessel maintenance.

    Depreciation and amortisation charges were $160 million, resulting in net operating income of $77 million compared to $20 million in the prior year period. Net finance costs of $17 million and a net foreign exchange loss of $28 million, resulted in net income for the quarter of $17 million compared to $29 million in the prior year period.

    Net cash generated from operating activities in the first quarter was $51 million, including a $163 million adverse movement in net working capital. Net cash used in investing activities was $68 million mainly related to purchases of property, plant and equipment. Net cash used in financing activities was $106 million including lease payments of $59 million. Overall, cash and cash equivalents decreased by $116 million in the quarter to $459 million at 31 March 2025 and net debt was $632 million, including lease liabilities of $400 million.

    First quarter order intake was $0.9 billion comprising new awards of $0.4 billion and escalations of $0.5 billion resulting in a book-to-bill ratio of 0.6 times. Backlog at the end of March was $10.8 billion, of which $4.8 billion is expected to be executed in 2025, $3.5 billion in 2026 and $2.5 billion in 2027 and beyond.

    Guidance

    Our financial guidance for 2025 is unchanged. We continue to anticipate that revenue in 2025 will be between $6.8 billion and $7.2 billion, while the Adjusted EBITDA margin is expected to be within a range from 18% to 20%. Based on our firm backlog of contracts and the prospects in our tendering pipeline, we expect margins to exceed 20% in 2026.

    Conference Call Information
    Date: 30 April 2025
    Time: 12:00 UK Time, 13:00 CET
    Access the webcast at subsea7.com or https://edge.media-server.com/mmc/p/3v6564ut/
    Register for the conference call https://register-conf.media-server.com/register/BI419d51592b6f40e8823c7efe91ab9dab

    For further information, please contact:
    Katherine Tonks
    Head of Investor Relations
    Tel: +44-20-8210-5568
    Email: ir@subsea7.com

    Special Note Regarding Forward-Looking Statements

    This document may contain ‘forward-looking statements’ (within the meaning of the safe harbour provisions of the U.S. Private Securities Litigation Reform Act of 1995). These statements relate to our current expectations, beliefs, intentions, assumptions or strategies regarding the future and are subject to known and unknown risks that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements may be identified by the use of words such as ‘anticipate’, ‘believe’, ‘estimate’, ‘expect’, ‘future’, ‘goal’, ‘intend’, ‘likely’, ‘may’, ‘plan’, ‘project’, ‘seek’, ‘should’, ‘strategy’, ‘will’, and similar expressions. The principal risks which could affect future operations of the Group are described in the ‘Risk Management’ section of the Group’s Annual Report. Factors that may cause actual and future results and trends to differ materially from our forward-looking statements include (but are not limited to): (i) our ability to deliver fixed-price projects in accordance with client expectations and within the parameters of our bids, and to avoid cost overruns; (ii) our ability to collect receivables, negotiate variation orders and collect the related revenue; (iii) our ability to recover costs on significant projects; (iv) capital expenditure by oil and gas companies, which is affected by fluctuations in the price of, and demand for, crude oil and natural gas; (v) unanticipated delays or cancellation of projects included in our backlog; (vi) competition and price fluctuations in the markets and businesses in which we operate; (vii) the loss of, or deterioration in our relationship with, any significant clients; (viii) the outcome of legal proceedings or governmental inquiries; (ix) uncertainties inherent in operating internationally, including economic, political and social instability, boycotts or embargoes, labour unrest, changes in foreign governmental regulations, corruption and currency fluctuations; (x) the effects of a pandemic or epidemic or a natural disaster; (xi) liability to third parties for the failure of our joint venture partners to fulfil their obligations; (xii) changes in, or our failure to comply with, applicable laws and regulations (including regulatory measures addressing climate change); (xiii) operating hazards, including spills, environmental damage, personal or property damage and business interruptions caused by adverse weather; (xiv) equipment or mechanical failures, which could increase costs, impair revenue and result in penalties for failure to meet project completion requirements; (xv) the timely delivery of vessels on order and the timely completion of ship conversion programmes; (xvi) our ability to keep pace with technological changes and the impact of potential information technology, cyber security or data security breaches; (xvii) global availability at scale and commercial viability of suitable alternative vessel fuels; and, (xviii) the effectiveness of our disclosure controls and procedures and internal control over financial reporting. Many of these factors are beyond our ability to control or predict. Given these uncertainties, you should not place undue reliance on the forward-looking statements. Each forward-looking statement speaks only as of the date of this document. We undertake no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

    This information is considered to be inside information pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act. This stock exchange release was published by Katherine Tonks, Investor Relations, Subsea7, on 30 April 2025 08:00 CET.

    Attachments

    The MIL Network –

  • MIL-OSI: IDEX Biometrics ASA: Annual report 2024

    Source: GlobeNewswire (MIL-OSI)

    IDEX Biometrics ASA annual report and remuneration report for 2024 are enclosed. IDEX Biometrics has also published its annual financial statements in European Single Electronic Format (ESEF), also attached to this notice. The auditor’s report includes a matter of emphasis regarding going concern.

    The reports are also available at the company’s web site https://www.idexbiometrics.com/investors/

    The preliminary financial statements for 2024 were disclosed on 27 February 2025. Subsequently, on 11 March 2025, IDEX Biometrics disclosed a strategic shift to focus on the access market, while continuing to harvest from its long-time efforts in the payment market. This led to certain adjustments to the 2024 statements of profit and loss and financial position. The changes were disclosed in the interim balance sheet (mellombalanse) as of 1 January 2025 that was published on 21 March 2025.

    For further information, please contact:

    Kristian Flaten, CFO, Tel: +47 95092322

    E-mail: ir@idexbiometrics.com

    About IDEX Biometrics:

    IDEX Biometrics ASA (IDEX) is a global technology leader in fingerprint biometrics, offering authentication solutions across payments, access control, and digital identity. Our solutions bring convenience, security, peace of mind and seamless user experiences to the world. Built on patented and proprietary sensor technologies, integrated circuit designs, and software, our biometric solutions target card-based applications for payments and digital authentication. As an industry-enabler we partner with leading card manufacturers and technology companies to bring our solutions to market. For more information, visit www.idexbiometrics.com

    About this notice:

    This notice was published by Kristian Flaten, CFO, 30 April 2025 at 08:00 CET on behalf of IDEX Biometrics ASA.  This information is subject to the disclosure requirements pursuant to the Norwegian Securities Trading Act section 5-12.

    Attachments

    The MIL Network –

  • MIL-OSI: High Arctic Overseas Announces 2024 Fourth Quarter Results

    Source: GlobeNewswire (MIL-OSI)

    NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW

    CALGARY, Alberta, April 30, 2025 (GLOBE NEWSWIRE) — High Arctic ‎Overseas Holdings Corp. (TSXV: HOH) (“High Arctic Overseas” or the “Corporation”) has released its financial and operating results for the quarter and year ended December 31, 2024. The Corporation’s audited consolidated financial statements (the “Financial Statements”) and management’s discussion & analysis (“MD&A”) for the three months and year ended December 31, 2024, will be available on SEDAR+ at www.sedarplus.ca. All amounts are denominated in United States dollars (“USD”), unless otherwise indicated.

    The common shares of the Corporation began trading on the TSXV on August 16, 2024 under the trading symbol HOH.

    Mike Maguire, Chief Executive Officer commented on the Corporation’s fourth quarter 2024 financial and operating results:

    “We have finished the spin-out transaction and have established High Arctic Overseas Holdings Corp. with dedicated Management and have trimmed our recurring G&A on a go forward basis. We have maintained the Corporation’s cash balance thanks to solid contribution from our manpower services & equipment rentals.

    The Corporation is now well placed to participate meaningfully in anticipated future drilling activity, with a resilient core business. Our experience combined with ideal drilling equipment for the challenging PNG environment positions us well.

    We are heartened by announced LNG developments including key environmental approvals for Papua LNG and positive public statements by the PNG Prime Minister following meetings with senior executives from the major project participants in January.

    I remain excited about our prospects to play a strategic role servicing the major projects anticipated in PNG over the second half of the decade.”

    HIGHLIGHTS

    • Adjusted EBITDA for the Quarter and full year of ($482) and $4,290 as a result of low drilling activity and costs associated with the close out of the spin-out.
    • Significant adjustments to inventory carrying value as a result of confirmation of the terms of contracts which resulted in a one-time positive non-cash impact to earnings of $3.4 million;
    • Post the spin-out we have established independent management team and expect to see General and Administrative costs normalise moving forward; and
    • Exited the quarter with a strong liquidity position with a working capital balance of $20.6 million which includes a cash balance of $14.9 million and no debt.

    2024 FOURTH QUARTER RESULTS

    • Drilling rig 103 remained suspended and drilling rigs 115 and 116 remained cold-stacked. Manpower services and rental services continued with other customers. Operating margins decreased from 32.2% in Q4 2023 to 28.6% in Q4 2024. The net result was a substantial reduction to revenue and the generation of a significantly lower EBITDA in the quarter:
      • Revenue for the quarter of $2,421, a decrease of $10,112 or 81% compared to Q4 2023 at $12,533, and
      • Adjusted negative EBITDA of $482, decrease of $3,418 or 116% compared to Q4 2023 at $2,936.
    • The reduced revenue generating activities in Q4 2024 were offset by the significant adjustments to inventory and reported obligations that were the result of renegotiated terms of contracts related to spares inventory, this resulted in:
      • Net income of $1,806 in Q4 2024 compared to net income of $1,907 realized in Q4 2023.

    2024 YEAR TO DATE RESULTS

    • Drilling Rig 103 operated through into Q2 2024 when drilling was suspended at which point it was cold stacked. Manpower services and rentals with other customers continued at similar run rates through the remainder of 2024. Operating margins improved from 2023 of 33.2% to 37.7% in 2024 as a result of reduced material and supply costs and higher proportional contribution from higher margin rentals.
      • Revenue for 2024 was $24,075, a reduction of $19,305 or 45% compared to 2023,
      • Adjusted EBITDA for 2024 was $4,290, a 60% reduction compared to 2023 as a result of general and administrative costs not reducing proportionally to revenue, and
      • General and administrative costs were impacted by additional expenses related to the Arrangement.
    • The reduced operating activities combined with the Q4 2024 significant adjustments to inventory and reported obligations drove the following results for the Corporation:
      • Net income of $2,857 for 2024 compared to a net loss of $8,623 for the same period 2023 which included an impairment charge of $15,200.
    • Improved liquidity with a working capital balance of $20.6 million, which includes a cash balance of $14.9 million.

    Since the Corporation and HAES-Cyprus were both wholly-owned by HWO, the transfer of all of the outstanding ordinary shares of HAES-Cyprus to the Corporation was deemed a common control transaction. The Corporation’s Financial Statements are presented under the continuity of interests basis. Financial and operational results contained within this Press Release present the historic financial position, results of operations and cash flows of HAES-Cyprus for all prior periods up to August 12, 2024, under HWO’s control. The financial position, results of operations and cash flows from April 1, 2024 (the date of incorporation of the Corporation) to August 12, 2024, include both HAES-Cyprus and the Corporation on a combined basis and from August 12, 2024, forward include the results of the Corporation on a consolidated basis upon completion of the Arrangement.

    For reporting purposes in the Financial Statements, the MD&A and this Press Release, it is assumed that the Corporation held the PNG business prior to August 12, 2024, and as such, information provided includes the financial and operating results for the three and twelve months ended December 31, 2024, including all comparative periods.

    In the above results discussion, the three months ended December 31, 2024 may be referred to as the “quarter” or “Q4 2024” and the comparative three months ended December 31, 2023 may be referred to as “Q4 2023”. References to other quarters may be presented as “QX 20XX” with X/XX being the quarter/year to which the commentary relates. Additionally, the twelve months ended December 31, 2024 may be referred to as “YTD” or “YTD 2024”. References to other twelve-month periods ended December 31 may be presented as “YTD 20XX” with XX being the year to which the twelve-month period ended December 31 commentary relates.

    FOURTH QUARTER 2024 SELECT FINANCIAL AND OPERATIONAL RESULTS OVERVIEW

       Three months ended Dec 31,   Year ended Dec 31,  
    (thousands of USD except per share amounts) 2024   2023   2024   2023  
    Operating results        
    Revenue 2,421   12,533   24,075   43,380  
    Net income (loss) 1,806   1,907   2,857   (8,623 )
    Per share (basic and diluted) (1) $0.14 $0.16 $0.23   ($0.69 )
    Operating margin (2) 693   4,037   9,069   14,416  
    Operating margin as a % of revenue (2) 28.6%   32.2%   37.7%   33.2%  
    EBITDA (2) 2,887   2,975   7,733   11,211  
    Adjusted EBITDA (2) (482)   2,936   4,290   10,797  
    Adjusted EBITDA as a % of revenue (2) (19.9%)   23.4%   17.8%   24.9%  
    Operating income (loss) (2) (1,264)   2,240   455   4,575  
    Per share (basic and diluted) (1) ($0.10 $0.18 $0.04   $0.37  
    Cash flow from operations:        
    Cash flow from operating activities 248   6,131   10,112   8,906  
    Per share (basic & diluted) (1) $0.02 $0.49 $0.81   $0.71  
    Funds flow from operating activities (2) 2,667   2,929   6,770   10,273  
    Per share (basic & diluted) (1) $0.21 $0.24 $0.54   $0.83  
    Capital expenditures 62   93   652   1,080  
         
    (thousands of USD)       As at Dec 31, 2024   As at Dec 31, 2023  
    Financial position:        
    Working capital (2)       20,602   20,335  
    Cash and cash equivalents       14,930   10,958  
    Total assets       35,287   43,374  
    Shareholder’s equity       30,953   33,112  
    Per share (basic) (1)     $2.48   $2.66  
    Per share (fully diluted) (1)     $2.47   $2.66  
    Weighted average common shares outstanding (000’s) (1)       12,448   12,448  
    Weighted average diluted shares outstanding (000’s) (1)       12,539   12,448  

    (1) For the purposes of computing per share amounts, the number of common shares outstanding for the periods prior to the Arrangement is deemed to be the number of shares issued by the Corporation to the shareholders of HWO upon completion of the Arrangement. For the period after the Arrangement, the number of shares outstanding in the computation of per share amounts is the total issued shares of the Corporation on August 12, 2024, and any common shares issued subsequent to August 12, 2024. See the “Overview” section of this MD&A and the Corporation’s Financial Statements as at and for the years ended December 31, 2024 and 2023 for additional details.
    (2) Operating margin, EBITDA (Earnings before interest, tax, depreciation, and amortization), Adjusted EBITDA, Operating income (loss), Funds flow from operating activities and Working capital do not have a standardized meanings prescribed by IFRS. See “Non IFRS Measures” in this MD&A for calculations of these measures.

    Operating Results

      Three months ended Dec 31,   Year ended Dec 31,  
    (thousands of USD, unless otherwise noted) 2024   2023   2024   2023  
    Revenue 2,421   12,533   24,075   43,380  
    Operating expense (1,728)   (8,496)   (15,006)   (28,964)  
    Operating margin(1) 693   4,037   9,069   14,416  
    Operating margin (%) 28.6%   32.2%   37.7%   33.2%  

     (1)   See “Non-IFRS Measures”

    Revenues totaled $2,421 and $24,075 for the three months and year ended December 31, 2024, respectively, compared to $12,533 and $43,880 for the comparative periods in 2023. Revenues for the year ended 2024 and Q4 2024, as compared to the prior year comparative periods, were negatively impacted as a result of reduced overall utilization of Rig 103. Customer-owned Rig 103 was utilized for 8 months during 2023 versus the first 5.5 months in 2024. Despite reduced drilling activity in 2024 compared to 2023, the Corporation was able to maintain a consistent level of activity related to the provision of skilled personnel for key customers in PNG. Operating margin as a percentage of revenues increased from 2023 to 2024, largely as a result of reduced material and supply costs associated with the recommencement of Rig 103 during fiscal 2023 and a higher proportional contribution by higher margin rentals in 2024.

    The Corporation owns two heli-portable drilling rigs (Rigs 115 and 116) which remain preserved and maintained ready for deployment.

      Three months ended Dec 31,   Year ended Dec 31,  
    (thousands of USD except per share amounts) 2024   2023   2024   2023  
    Operating results        
    Revenue 2,421   12,533   24,075   43,380  
    Net income (loss) 1,806   1,907   2,857   (8,623)  
    Per share (basic and diluted) (1) $0.14 $0.16 $0.23 ($0.69)  
    Operating margin (2) 693   4,037   9,069   14,416  
    Operating margin as a % of revenue (2) 28.6%   32.2%   37.7%   33.2%  
    EBITDA (2) 2,887   2,975   7,733   11,211  
    Adjusted EBITDA (2) (482)   2,936   4,290   10,797  
    Adjusted EBITDA as a % of revenue (2) (19.9%)   23.4%   17.8%   24.9%  
    Operating income (loss) (2) (1,264)   2,240   455   4,575  
    Per share (basic and diluted) (1) ($0.10 $0.18 $0.04 $0.37  
    Cash flow from operations:        
    Cash flow from operating activities 248   6,131   10,112   8,906  
    Per share (basic & diluted) (1) $0.02 $0.49 $0.81 $0.71  
    Funds flow from operating activities (2) 2,667   2,929   6,770   10,273  
    Per share (basic & diluted) (1) $0.21 $0.24 $0.54 $0.83  
    Capital expenditures 62   93   652   1,080  
         
    (thousands of USD)       As at Dec 31, 2024   As at Dec 31, 2023  
    Financial position:        
    Working capital (2)       20,602   20,335  
    Cash and cash equivalents       14,930   10,958  
    Total assets       35,287   43,374  
    Shareholder’s equity       30,953   33,112  
    Per share (basic) (1)     $2.48 $2.66  
    Per share (fully diluted) (1)     $2.47 $2.66  
    Weighted average common shares outstanding (000’s) (1)       12,448   12,448  
    Weighted average diluted shares outstanding (000’s) (1)       12,539   12,448  

    (1) For the purposes of computing per share amounts, the number of common shares outstanding for the periods prior to the Arrangement is deemed to be the number of shares issued by the Corporation to the shareholders of HWO upon completion of the Arrangement. For the period after the Arrangement, the number of shares outstanding in the computation of per share amounts is the total issued shares of the Corporation on August 12, 2024, and any common shares issued subsequent to August 12, 2024. See the “Overview” section of this Press Release and the Corporation’s Financial Statements as at and for the years ended December 31, 2024 and 2023 for additional details.
    (2) Operating margin, EBITDA (Earnings before interest, tax, depreciation, and amortization), Adjusted EBITDA, Operating income (loss), Funds flow from operating activities and Working capital do not have a standardized meanings prescribed by IFRS. See “Non IFRS Measures” in this Press Release for calculations of these measures.

    Operating Results

      Three months ended Dec 31,   Year ended Dec 31,  
    (thousands of USD, unless otherwise noted) 2024   2023   2024   2023  
    Revenue 2,421   12,533   24,075   43,380  
    Operating expense (1,728)   (8,496)   (15,006)   (28,964)  
    Operating margin(1) 693   4,037   9,069   14,416  
    Operating margin (%) 28.6%   32.2%   37.7%   33.2%  

     (1)   See “Non-IFRS Measures”

    Revenues totaled $2,421 and $24,075 for the three months and year ended December 31, 2024, respectively, compared to $12,533 and $43,880 for the comparative periods in 2023. Revenues for the year ended 2024 and Q4 2024, as compared to the prior year comparative periods, were negatively impacted as a result of reduced overall utilization of Rig 103. Customer-owned Rig 103 was utilized for 8 months during 2023 versus the first 5.5 months in 2024. Despite reduced drilling activity in 2024 compared to 2023, the Corporation was able to maintain a consistent level of activity related to the provision of skilled personnel for key customers in PNG. Operating margin as a percentage of revenues increased from 2023 to 2024, largely as a result of reduced material and supply costs associated with the recommencement of Rig 103 during fiscal 2023 and a higher proportional contribution by higher margin rentals in 2024.

    The Corporation owns two heli-portable drilling rigs (Rigs 115 and 116) which remain preserved and maintained ready for deployment.

    Liquidity and Capital Resources

      Three months ended Dec 31,   Year ended Dec 31,  
    (thousands of USD) 2024   2023   2024   2023  
    Cash provided by (used in) operations:        
    Operating activities 248   6,131   10,112   8,906  
    Investing activities (62)   (93)   (652)   (1,080)  
    Financing activities (113)   (179)   (5,487)   (714)  
    Effect of exchange rate changes (1)   –   (1)   –  
    Increase (decrease) in cash 72   5,859   3,972   7,112  

    (thousands of USD, unless otherwise noted)  

    		 As at
    Dec 31, 2024    		   As at
    Dec 31, 2023    		  
    Current assets   24,706   30,090  
    Working capital(1)   20,602   20,335  
    Working capital ratio(1)   6.0:1   3.1:1  
    Cash and cash equivalents   14,930   10,958  

     (1)   See “Non-IFRS Measures”

    Liquidity and Capital Resources
    Cashflows from Operating Activities
    For the three months and year ended December 31, 2024, cash generated from operating activities was $248 (Q4 2023 $6,131) and $10,112 (YTD-2023 $8,906), respectively. The change in operating cash flow was largely driven by changes in working capital related to the timing of drilling activity in the respective years with a cash drawdown in 2023 as operations ramped up and a cash harvesting in 2024 as operations were ceased.

    Cashflows from Investing Activities
    For the three months and year ended December 31, 2024, the Corporation’s cash used in investing activities was $62 (Q4 2023 $93) and $652 (YTD-2023 $1,080), respectively. Cash outflows associated with investing activities were directed towards capital expenditures on rental assets. The reduction in capital expenditures in 2024 is due to reduced customer activity. The Corporation will continue to seek opportunities to invest in additional capital assets, in particular where it can do so under take-or-pay agreements.

    Cash flows from Financing Activities
    For the three months and year ended December 31, 2024, the Corporation’s cash used in financing activities was $113 (Q4 2023 $179) and $5,487 (YTD-2023 $714) respectively. Excluding the impact of a $5,000 dividend paid by HAES-Cyprus to HWO prior to the completion of the Arrangement transaction, cash outflows associated with finance activities were directed towards lease obligation payments.

    Outlook
    Consistent with the outlook provided by the Corporation in the third quarter of 2024, the outlook for the Corporation’s core business in PNG for 2025 remains subdued. The Corporation’s 2024 fourth quarter and annual results were impacted by the completion of customer drilling activity during the second quarter of 2024, with Rig 103 being relocated to the customer’s forward base location and cold-stacked. With no near-term drilling activity currently anticipated, the Corporation expects equipment rental and manpower to be the primary revenue generating activity for 2025. Quarterly revenues for 2025 are anticipated to be consistent with third and fourth quarters of 2024.

    The Corporation remains engaged with its principal customer on planning for future drilling activity and continues to focus on enhancing and optimizing its existing rental fleet deployment and manpower solutions offerings.

    The Corporation also continues to pursue business expansion opportunities in PNG, actively engaging with potential customers for its services in PNG and the wider region while also taking actions to protect its capability to realize the future potential of the business.

    Our rationale for a business strategy focussed on PNG is unchanged. Papua New Guinea possesses substantial deposits of natural resources including significant reserves of oil and natural gas and has emerged as a reliable low-cost energy exporter to Asian markets, particularly for liquefied natural gas (“LNG”). A significant investment in the country’s oil and gas industry was evidenced by the successful construction of the PNG-LNG project in 2014, with the primary partners in the venture being customers of the Corporation. In the period following, the Corporation’s predecessor company committed to the purchase and upgrade of drilling rigs 115 and 116 and expansion of the Corporation’s fleet of rentable equipment including camps, material handling equipment and worksite matting. These investments contributed to a substantive lift in revenues and earnings as PNG enjoyed its highest period of exploration and development activity.

    Since the onset of COVID-19 in early 2020, there has been a substantive reduction in drilling services in PNG. This follows some consolidation among the active exploration and production companies and evolving political and economic influences. In the longer term, High Arctic believes PNG is on the precipice of a new round of large-scale projects in the natural resources sector. ‎The next significant ‎LNG project currently being planned is Papua-LNG a project lead by the French oil and gas super-major TotalEnergies, with a final investment decision anticipated in late 2025. There is an expectation for increased drilling activity through the latter half of this decade, ‎not only to develop wells for the supply of gas to the Papua-LNG export facility, but also to explore for and ‎appraise other discoveries. The signing of a fiscal stability agreement between the P’nyang gas field joint venture and the government of PNG is another positive signal for that expansionary project to follow Papua-LNG.

    The Corporation is strategically positioned to support these developments, given its dominant position for drilling and associated services in PNG, existing work relationships with the operating companies, and proximity to the proposed sites of operation. The Corporation’s drilling rigs 115 and 116 are portable by helicopter and have been maintained and preserved for future use.

    There are a number of other petroleum projects and substantive nation-building projects including infrastructure, ‎electrification, telecommunications and defence projects planned for the development of PNG. ‎These ‎projects will require access to transport and material handling machinery, quality worksite and temporary ‎road mats and a substantive amount of labour including skilled equipment operators, qualified tradespeople and engineers, ‎geoscientists and other professionals. ‎High Arctic’s business continues to position itself to be a meaningful supplier of services, equipment and manpower for this market.

    NON-IFRS MEASURES
    This Press Release contains references to certain financial measures that do not have a standardized meaning prescribed by International Financial Reporting Standards (“IFRS”) and may not be comparable to the same or similar measures used by other companies. High Arctic Overseas uses these financial measures to assess performance and believes these measures provide useful supplemental information to shareholders and investors. These financial measures are computed on a consistent basis for each reporting period and include Oilfield services operating margin, EBITDA (Earnings before interest, tax, depreciation and amortization), Adjusted EBITDA, Operating loss, Funds flow from operating activities, Working capital and Net cash. These do not have standardized meanings.

    These financial measures should not be considered as an alternative to, or more meaningful than, net income (loss), cash from operating activities, current assets or current liabilities, cash and/or other measures of financial performance as determined in accordance with IFRS.

    For additional information regarding non-IFRS measures, including their use to management and investors and reconciliations to measures recognized by IFRS, please refer to the Corporation’s Q3 2024 MD&A, which is available online at www.sedarplus.ca.

    About High Arctic ‎Overseas Holdings Corp.

    High Arctic Overseas is a market leader in Papua New Guinea providing drilling ‎and specialized well completion services, manpower solutions and supplies rental equipment including rig matting, camps, material ‎handling and drilling support equipment.

    For further information, please contact:

    Mike Maguire                                                
    Chief Executive Officer                                 
    1.587.320.1301                                        
                            
    High Arctic Overseas Holdings Corp.                        
    Suite 2350, 330–5th Avenue SW                        
    Calgary, Alberta, Canada T2P 0L4                                                           
    www.higharctic.com
    Email: info@higharctic.com                         

    Forward-Looking Statements

    This Press Release contains forward-looking statements. When used in this document, the words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “seek”, “propose”, “estimate”, “expect”, and similar expressions are intended to identify forward-looking statements. Such statements reflect the Corporation’s current views with respect to future events and are subject to certain risks, uncertainties, and assumptions. Many factors could cause the Corporation’s actual results, performance, or achievements to vary from those described in this Press Release.

    Should one or more of these risks or uncertainties materialize, or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described in this Press Release as intended, planned, anticipated, believed, estimated or expected. Specific forward-looking statements in this Press Release include, among others, statements pertaining to the following: future energy projects including drilling activity and LNG projects in PNG; the Corporation’s ability to participate in the energy industry in PNG; potential future contracts with existing or new customers of the Corporation; future infrastructure and defence projects in PNG and the ability of the Corporation to participate in same; the Corporation’s expectations related to financial and operational results in 2025, including the expectation that the equipment rental and manpower services portion of the Corporation’s business will be the primary revenue generating activity for fiscal 2025; the timing and ability of the Corporation to put its own administrative infrastructure in place; the ability of the Corporation to expand its geographic customer base outside of PNG; and the deploying idle heli-portable drilling rigs 115 and 116 and securing future work with other exploration companies in PNG.

    With respect to forward-looking statements contained in this Press Release, the Corporation has made assumptions regarding, among other things: general economic and business conditions; the role of the energy services industry in future phases of the energy industry; the outlook for energy services both globally and within PNG; the impact of conflict in the Middle East and Ukraine; the timing and impact on the Corporation’s business related to potential new large-scale natural resources projects and increased drilling activity in PNG; the impact, if any, related to existing or future changes to government regulations by the government of PNG; the impact, if any, on the Corporation’s future financial and operational results related to non-resource development opportunities in PNG; market fluctuations in commodity prices, and foreign currency exchange rates; restrictions on repatriation of funds held in PNG; expectations regarding the Corporation’s ability to manage its liquidity risk, raise capital and manage its debt finance agreements; projections of market prices and costs; factors upon which the Corporation will decide whether or not to undertake a specific course of operational action or expansion; the Corporation’s ongoing relationship with its major customers; customers’ drilling intentions; the Corporation’s ability to position itself to be a significant supplier of services, equipment and manpower for other resource and non-resources based projects in PNG; the Corporation’s ability to invest in additional capital assets, including the impact on the Corporation’s future financial and operational results; the impact, if any, of geo-political events, changes in government, changes to tariff’s or related trade policies and the potential impact on the Corporation’s ability to execute on its 2025 business plan and strategic objectives; the Corporation’s ability to: maintain its ongoing relationship with major customers; successfully market its services to current and new customers; devise methods for, and achieve its primary objectives; source and obtain equipment from suppliers; successfully manage, operate, and thrive in an environment which is facing much uncertainty; remain competitive in all its operations; attract and retain skilled employees; and obtain equity and debt financing on satisfactory terms and manage liquidity related risks. While the Corporation considers these assumptions to be reasonable, the assumptions are inherently subject to significant uncertainties and contingencies.

    A description of additional risk factors that may cause actual results to differ materially from forward-looking information can be found in the Corporation’s disclosure documents on the SEDAR+ website at www.sedarplus.ca. Although the Corporation has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking information. Although the Corporation has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking information.

    The forward-looking statements contained in this Press Release are expressly qualified in their entirety by this cautionary statement. These statements are given only as of the date of this Press Release. The Corporation does not assume any obligation to update these forward-looking statements to reflect new information, subsequent events or otherwise, except as required by law.

    Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the ‎policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

    The MIL Network –

  • MIL-OSI: EfTEN Real Estate Fund AS unaudited results for 1st quarter 2025

    Source: GlobeNewswire (MIL-OSI)

    In the first quarter of 2025, EfTEN Real Estate Fund AS invested a significant part of the capital raised in the previous quarter, primarily in the elderly care home segment. In February, the Fund’s 100% subsidiary EfTEN Hiiu OÜ signed a binding agreement to acquire the property at Hiiu 42 in Tallinn, with the aim to developing a general care home in cooperation with Südamekodud AS. The acquisition price of the property was €4 million, with up to an additional €2.5 million for the reconstruction of the building. The expected return on the investment is 8% per annum. At the end of March, the real rights contract was concluded and the transaction finalized. As part of the transaction, EfTEN Hiiu OÜ signed a long-term (10+10 years) lease agreement with Hiiu Südamekodu OÜ. Part of the property continues to be used by the North Estonia Medical Centre Foundation. The building will be partially reconstructed into the “Nõmme Südamekodu” general care home, with future capacity for up to 170 clients.

    In January 2025, the Fund’s subsidiary EfTEN Ermi OÜ commenced construction of the second phase of Tartu Südamekodu, which will add 60 beds and a solar park to the existing care home. The total project cost is approximately €1.3 million, with construction expected to be completed by July 2025. The expected return on this investment is 8.1% per annum.

    Upon completion of these projects, EfTEN Real Estate Fund AS will own four elderly care homes with a combined capacity of nearly 800 beds.

    On 31 March 2025, the Fund’s subsidiary EfTEN Seljaku OÜ terminated the lease agreement with AS Hortes (in bankruptcy) concerning the Laagri Hortes properties. A new lease agreement has been signed with Rikets Aianduskeskus OÜ, which will commence operations on the premises as of 1 April 2025.

    In April 2025, the ICONFIT logistics building owned by the fund’s subsidiary EfTEN Paemurru OÜ was completed. The fund began earning rental income from the property starting from April 15.

    Financial Overview

    The consolidated sales revenue of EfTEN Real Estate Fund AS for Q1 2025 amounted to €7.858 million (Q1 2024: €7.961 million), and the consolidated net rental income (NOI) totaled €7.211 million (Q1 2024: €7.343 million). The net rental income margin remained stable at 92% (2024: 92%), indicating that costs directly related to property management (including land tax, insurance, maintenance and improvement expenses) and marketing accounted for 8% (2024: 8%) of revenue.

    The Fund’s consolidated net profit for Q1 2025 was €4.167 million (Q1 2024: €3.808 million). A key contributor to the profit growth was the decrease in interest expenses due to the decline in EURIBOR—interest costs fell by €432 thousand, or 19%, compared to Q1 2024.

    Real Estate Portfolio

    As of 31 March 2025, the Group held 37 (31 December 2024: 36) investment properties with a total fair value of €380.160 million (31 December 2024: €373.815 million) and an acquisition cost of €376.906 million (31 December 2024: €370.561 million). In addition to properties held by subsidiaries, the Group owns a 50% stake in the joint venture operating the Palace Hotel in Tallinn, with a fair value of €8.632 million as of 31 March 2025 (31 December 2024: €8.630 million).

    In Q1 2025, the Group made new and follow-on investments totalling €6.345 million.

    In March 2025, EfTEN Hiiu OÜ acquired the property at Hiiu 42, Tallinn, for €4 million. The North Estonia Medical Centre Foundation continues to use part of the property under an existing lease. A long-term (10+10 years) lease was signed with Hiiu Südamekodu OÜ, a subsidiary of Südamekodud AS, which will develop the premises into the “Nõmme Südamekodu” general care home with capacity for up to 170 clients.

    Construction of the C-building at Valkla Care Home continued in Q1 2025, with a total investment of €343 thousand. Construction of the second phase of Ermi Care Home in Tartu began, with works totalling €192 thousand during the quarter. In addition, construction at the Paemurru Logistics Centre progressed, with Q1 investment totalling €1.515 million.

    In Q1 2025, the Group earned €7.673 million in rental income, remaining on par with the previous year.

    As of 31 March 2025, the vacancy rate of the Group’s real estate portfolio was 4.4% (31 December 2024: 2.6%). The highest vacancy was in the office segment at 17.7%, where filling vacant spaces has taken longer than previously.

    Financing

    In Q1 2025, the Fund’s subsidiary EfTEN Riga Airport SIA extended its loan agreement with the bank. Over the next 12 months, six of the Group’s subsidiaries have loan agreements maturing, with a total outstanding balance of €20.38 million as of 31 March 2025. These maturing loans have LTVs between 29% and 48%. Given the stable rental cash flows of the properties, the Group’s management does not foresee obstacles in refinancing these loans.

    As of 31 March 2025, the Group’s weighted average interest rate on loans was 4.37% (31 December 2024: 4.89%) and the loan-to-value (LTV) ratio stood at 40% (31 December 2024: 40%). All loan agreements of the subsidiaries are based on floating interest rates. The Fund’s interest coverage ratio (ICR) was 3.4 as of 31 March 2025 (31 March 2024: 2.9).

    Share Information

    As of 31 March 2025, the registered share capital of EfTEN Real Estate Fund AS was €114.403 million (unchanged from 31 December 2024), consisting of 11,440,340 shares with a nominal value of €10 each.

    The net asset value (NAV) per share as of 31 March 2025 was €20.74 (31 December 2024: €20.37), representing an increase of 1.8% over the first three months of 2025.

    CONSOLIDATED STATEMEMT OF COMPREHENSIVE INCOME 

      I quarter
      2025 2024
    € thousands    
    Sales revenue 7,858 7,961
    Cost of services sold -506 -418
    Gross profit 7,352 7,543
         
    Marketing costs -141 -200
    General and administrative expenses -1,006 -939
    Other operating income and expense -37 42
    Operating profit 6,168 6,446
         
    Profit/-loss from joint ventures -58 -50
    Interest income 83 101
    Other finance income and expense -1,803 -2,235
    Profit before income tax 4,390 4,262
         
    Income tax expense -223 -454
    Net profit of the financial year 4,167 3,808
    Total comprehensive income for the period 4,167 3,808
    Earnings per share    
    – basic 0.36 0.35
    – diluted 0.36 0.35

    CONSOLIDATED STATEMENT OF FINANCIAL POSITION

      31.03.2025 31.12.2024
    € thousands    
    ASSETS    
    Cash and cash equivalents 19,038 18,415
    Short-term deposits 0 2,092
    Receivables and accrued income 1,645 2,055
    Prepaid expenses 128 138
    Total current assets 20,811 22,700
         
    Long-term receivables 140 154
    Shares in joint ventures 1,902 1,960
    Investment property 380,160 373,815
    Property, plant and equipment 121 134
    Total non-current assets 382,323 376,063
    TOTAL ASSETS 403,134 398,763
         
    LIABILITIES AND EQUITY    
    Borrowings 25,858 30,300
    Liabilities and prepayments 3,056 3,245
    Total current liabilities 28,914 33,545
         
    Borrowings 123,813 119,120
    Other long-term liabilities 1,923 1,928
    Deferred income tax liability 11,244 11,097
    Total non-current liabilities 136,980 132,145
    TOTAL LIABILITIES 165,894 165,690
         
    Share capital 114,403 114,403
    Share premium 90,306 90,306
    Statutory reserve capital 2,799 2,799
    Retained earnings 29,732 25,565
    TOTAL EQUITY 237,240 233,073
    TOTAL LIABILITIES AND EQUITY 403,134 398,763

    Marilin Hein
    CFO
    Phone +372 6559 515
    E-mail: marilin.hein@eften.ee

    Attachment

    The MIL Network –

  • MIL-OSI: Societe Generale: First quarter 2025 earnings

    Source: GlobeNewswire (MIL-OSI)

    RESULTS AT 31 MARCH 2025


    Press release                                                            
    Paris, 30 April 2025

    STRONG QUARTERLY RESULTS, AHEAD OF OUR 2025 TARGETS

    Quarterly revenues of EUR 7.1 billion, +6.6% vs. Q1 24 and +10.2% excluding asset disposals
    (vs. an annual target of more than +3%). Positive contribution from all businesses, driven by a strong rebound in French Retail Banking, a solid performance of Global Banking and Investor Solutions and a sustained activity in Mobility, International Retail Banking and Financial Services

    Strict cost management with operating expenses down -4.4% vs. Q1 24, excluding asset disposals. Ahead of our 2025 target to reduce operating expenses by more than -1%, excluding asset disposals

    Cost-to-income ratio at 65.0% in Q1 25, ahead of our 2025 target (<66%)

    Low cost of risk at 23 basis points in Q1 25, below the 2025 target of 25 to 30 basis points. The amount of S1/S2 provisions remains high at EUR 3.1 billion (more than 2x 2024 cost of risk), and has been further increased

    Group net income of EUR 1,608 million, x2.4 vs. Q1 24

    Profitability (ROTE) at 11.0%, ahead of our 2025 target of more than 8%. Even if restated for net gains on asset disposals of around EUR 200 million and considering a quarterly linear distribution of taxes (IFRIC 21) for an amount of around EUR 300 million, the ROTE stands at 10.9%

    SOLID CAPITAL AND LIQUIDITY PROFILE

    CET1 ratio of 13.4%1 at end-Q1 25, around 320 basis points above the regulatory requirement

    Liquidity Coverage Ratio at 140% at end-Q1 25

    Provision for distribution of EUR 0.912 per share, at end-March 2025

    Completion of the 2024 share buy-back programme of EUR 872 million

    ORDERLY EXECUTION OF ASSET DISPOSALS

    Disposal of SGEF’s activities completed on 28 February 2025, except for those in the Czech Republic and Slovakia, representing a positive impact of around +30 basis points on the Group’s CET1 ratio in Q1 25

    Disposals of Societe Generale Private Banking Suisse and SG Kleinwort Hambros completed on 31 January 2025 and 31 March 2025, for a total impact of around +10 basis points on the Group’s CET1 ratio

    Slawomir Krupa, the Group’s Chief Executive Officer, commented:
    « We are releasing today a very good set of results. Our revenues have grown across all our businesses. Our costs and our cost-to-income ratio have decreased across all our businesses. Our first quarter results are above all our annual targets, putting us in a favourable position to achieve them, thanks to our disciplined execution and prudent and rigorous risk management. Since the presentation of our Strategic Plan, we have built a strong capital position, and we have delivered a steady and material increase in our performance. Our diversified and resilient model allows us to navigate efficiently in the current environment. This is the result of the precise execution of our strategy by fully focused and talented teams whom I warmly thank for their commitment. We measure how far we’ve come and how far we still have to go. We will therefore pursue our work with the same focus and discipline, confident in our ability to deliver our 2026 roadmap and beyond, a sustainable and profitable growth. »

    1. GROUP CONSOLIDATED RESULTS
    In EURm Q1 25 Q1 24 Change
    Net banking income 7,083 6,645 +6.6% +9.9%*
    Operating expenses (4,604) (4,980) -7.6% -4.6%*
    Gross operating income 2,479 1,665 +48.9% +53.0%*
    Net cost of risk (344) (400) -13.9% -9.5%*
    Operating income 2,135 1,265 +68.8% +72.1%*
    Net profits or losses from other assets 202 (80) n/s n/s
    Income tax (490) (274) +79.0% +84.8%*
    Net income 1,855 917 x 2.0 x 2.1*
    O.w. non-controlling interests 247 237 +4.0% +12.0%*
    Group net income 1,608 680 x 2.4 x 2.4*
    ROE 9.7% 3.6%    
    ROTE 11.0% 4.1%    
    Cost to income 65.0% 74.9%    

    Asterisks* in the document refer to data at constant perimeter and exchange rates

    Societe Generale’s Board of Directors, which met on 29 April 2025 under the chairmanship of Lorenzo Bini Smaghi, examined the Societe Generale Group’s results for the first quarter of 2025.

    Net banking income 

    Net banking income stood at EUR 7.1 billion, up +6.6% vs. Q1 24 and up +10.2% vs. Q1 24, excluding asset disposals.

    Revenues of French Retail, Private Banking and Insurance were up +14.1% vs. Q1 24 (+16.5% excluding asset disposals and +2.5% excluding both asset disposals and short-term hedge impact) to stand at EUR 2.3 billion in Q1 25. Net interest income recovered sharply in Q1 25 (+28.4% vs. Q1 24) and was broadly stable when restated for asset disposals and short-term hedges accounted for in Q1 24 (around EUR -270 million). Assets under management in Private Banking and Insurance grew by +6% and +5%, respectively (excluding asset disposals in Switzerland and in the United Kingdom) in Q1 25 vs. Q1 24. Lastly, BoursoBank continued its strong commercial development with nearly 460,000 new customers during the quarter, reaching a customer base of around 7.6 million clients at end-March 2025.

    Global Banking and Investor Solutions registered a +10.0% increase in revenues relative to Q1 24. These totalled EUR 2.9 billion for the quarter, driven by strong momentum in equities and in Financing and Advisory. Global Markets grew by +10.9% in Q1 25 vs. Q1 24. Equity revenues were up +21.8%, reaching a quarterly record level3, driven by strong momentum in flow and listed products. Fixed income and currencies were down -2.4% due to lower client activity on rates investment solutions and margin compression in financing activities. Commercial activity nevertheless remained buoyant in rates and forex brokerage due to high volatility. In Global Banking and Advisory, revenues are up +10.5% with a solid commercial momentum in asset finance. Furthermore, the performance was resilient in Mergers and Acquisitions (M&A) and Debt Capital Markets (DCM). Similarly, Global Transaction and Payment Services posted an +8.7% increase in revenues vs. Q1 24, driven by higher payment volumes with institutional clients and strong commercial development for corporate clients.

    Mobility, International Retail Banking and Financial Services’ revenues were down -7.4% vs. Q1 24, mainly due to a perimeter effect of EUR -176 million in Q1 25. Excluding the impact of asset disposals, they were up +0.8%. International Retail Banking recorded a -12.1% fall in revenues vs. Q1 24 to EUR 0.9 billion, due to a perimeter effect related to the disposals completed in Africa (Morocco, Chad, Madagascar). They rose by +1.9% at constant perimeter and exchange rates. Revenues from Mobility and Financial Services were also down -3.0% vs. Q1 24 due to the disposal of SGEF’s operations (except for those in the Czech Republic and Slovakia) in Q1 25. Besides, Ayvens’ revenues were stable vs. Q1 24 owing to improved margins, offsetting the normalisation of the results of used car sales.

    The Corporate Centre recorded revenues of EUR -112 million in Q1 25.

    Operating expenses 

    Operating expenses came to EUR 4,604 million in Q1 25, down -7.6% vs. Q1 24 and -4.4% excluding asset disposals. The decrease in operating expenses is notably explained by a decrease in transformation charges of EUR 278 million, an increase of EUR 29 million related to taxes on variable compensation, an increase in expenses of EUR 22 million related to Bernstein perimeter, and EUR 5 million related to disposal transaction costs. Excluding these non-recurring items, operating expenses were slightly up, confirming the strong cost discipline.

    The cost-to-income ratio stood at 65.0% in Q1 25, down sharply from Q1 24 (74.9%) and below the target of <66% estimated for 2025.

    Cost of risk

    The cost of risk was stable over the quarter at 23 basis points (or EUR 344 million). It comprises a provision for non-performing loans of EUR 330 million (around 22 basis points) and a provision for performing loans of EUR 14 million.

    At end-March, the Group had a stock of provisions for performing loans of EUR 3,131 million, slightly up +0.4% compared with 31 December 2024, which represents more than 2x 2024 cost of risk.

    The gross non-performing loan ratio stood at 2.82%4,5 at 31 March 2025, broadly stable compared to its end – December 2024 level (2.81%). The net coverage ratio on the Group’s non-performing loans stood at 82%6 at 31 March 2025 (after netting of guarantees and collateral).

    Net profits from other assets

    The Group recorded a net gain of EUR +202 million in Q1 25, mainly related to the accounting impacts of completed asset sales of SGEF7, Societe Generale Private Banking Suisse and SG Kleinwort Hambros.

    Group net Income

    Group net income stood at EUR 1,608 million for the quarter, equating to a Return on Tangible Equity (ROTE) of 11.0%.

    1. DELIVERING ON OUR ESG AMBITIONS

    The Group is in line with its portfolio alignment targets in the most carbon-emitting sectors, including since 2019 a reduction of more than 50% in its upstream exposure to oil and gas, and a reduction of around 50% of its carbon emission intensity in power.

    Reflecting progress on portfolio alignment, the Group’s contribution to sustainable finance amounted to around 80 billion euros at the end of 2024, ahead of its target of 500 billion euros for the 2024-2030 period.

    The Group is well positioned to seize new opportunities in the environmental transition. Societe Generale has acted as exclusive financial advisor for the UK’s Net Zero Teesside Power and Northern Endurance Partnership projects, which aim to be the world’s first gas-fired power station project with carbon capture and storage.

    These actions are recognized externally, with best-in-class ratings from extra-financial rating agencies and through numerous awards.

    1. THE GROUP’S FINANCIAL STRUCTURE

    At 31 March 2025, the Group’s Common Equity Tier 1 ratio stood at 13.4%, or around 320 basis points above the regulatory requirement. Likewise, the Liquidity Coverage Ratio (LCR) was well above regulatory requirements at 140% at end-March 2025 (an average of 150% for the quarter), while the Net Stable Funding Ratio (NSFR) stood at 115% at end-March 2025.

    All liquidity and solvency ratios are well above the regulatory requirements.

      31/03/2025 31/12/2024 Requirements
    CET1(1) 13.4% 13.3% 10.22%
    Tier 1 ratio(1) 16.1% 16.1% 12.14%
    Total Capital(1) 19.1% 18.9% 14.70%
    Leverage ratio(1) 4.4% 4.3% 3.60%
    TLAC (% RWA)(1) 29.7% 29.7% 22.32%
    TLAC (% leverage)(1) 8.2% 8.0% 6.75%
    MREL (% RWA)(1) 33.3% 34.2% 27.59%
    MREL (% leverage)(1) 9.2% 9.2% 6.23%
    End of period LCR 140% 162% >100%
    Period average LCR 150% 150% >100%
    NSFR 115% 117% >100%
    In EURbn 31/03/2025 31/12/2024
    Total consolidated balance sheet 1,554 1,574
    Group shareholders’ equity 71 70
    Risk-weighted assets 393 390
    O.w. credit risk 318 327
    Total funded balance sheet 931 952
    Customer loans 459 463
    Customer deposits 596 614

    8
    As of 31 March 2025, the parent company has issued EUR 9.0 billion of medium/long-term debt under its 2025 financing programme, including EUR 4.5 billion of pre-financing raised at the end of 2024. The subsidiaries had issued EUR 1.0 billion. In all, the Group has issued a total of EUR 10.0 billion in medium/long-term debt.

    At end of April 2025, the parent company’s 2025 funding programme is 54% complete for vanilla notes.

    The Group is rated by four rating agencies: (i) FitchRatings – long-term rating “A-”, stable outlook, senior preferred debt rating “A”, short-term rating “F1”; (ii) Moody’s – long-term rating (senior preferred debt) “A1”, negative outlook, short-term rating “P-1”; (iii) R&I – long-term rating (senior preferred debt) “A”, stable outlook; and (iv) S&P Global Ratings – long-term rating (senior preferred debt) “A”, stable outlook, short-term rating “A-1”.

    1. FRENCH RETAIL, PRIVATE BANKING AND INSURANCE
    In EURm Q1 25 Q1 24 Change
    Net banking income 2,299 2,016 +14.1% +16.5%*
    Of which net interest income 1,061 827 +28.4% +31.6%*
    Of which fees 1,056 1,018 +3.7% +6.2%*
    Operating expenses (1,566) (1,728) -9.4% -6.6%*
    Gross operating income 734 288 x 2.5 x 2.5*
    Net cost of risk (171) (247) -30.8% -30.8%*
    Operating income 563 41 x 13.7 x 11.2*
    Net profits or losses from other assets 7 0 x 19.2 x 19.2*
    Group net income 421 31 x 13.4 x 10.9*
    Cost to income 68.1% 85.7%    

    Commercial activity

    SG network, Private Banking and Insurance 

    The SG network’s average deposit outstandings amounted to EUR 230 billion in Q1 25, down -1% from Q1 24, with a shift of inflows into savings life insurance.

    The SG network’s average loan outstandings contracted by -3% vs. Q1 24 to EUR 193 billion, and
    by -1.8% vs. Q1 24 excluding repayments of state-guaranteed loans. Mortgage loan production saw a sharp increase of +115% vs. Q1 24.

    The average loan-to-deposit ratio stood at 83.8% in Q1 25, down 1.1 percentage point relative to Q1 24.

    In Private Banking, assets under management9 strongly rose by +6% vs. Q1 24 at EUR 130 billion. Net asset inflows totalled EUR 2 billion in Q1 25, with asset gathering (annualised net new money divided by AuM) standing at +6% in Q1 25. Net banking income came to EUR 361 million for the quarter, a +3.4% increase at constant perimeter1 and exchange rates, down -3.9% vs. Q1 24.

    Insurance, which covers activities in and outside France, posted a very strong commercial performance. Life insurance outstandings increased sharply by +5% vs. Q1 24 to reach a record EUR 148 billion at end- March 2025. The share of unit-linked products remained high at 40%. Gross life insurance savings inflows amounted to EUR 5.4 billion in Q1 25.

    In France, personal protection and Property & Casualty premia were up by +4% vs. Q1 24.

    BoursoBank 

    BoursoBank reached almost 7.6 million clients in Q1 25. The bank recorded growth of +20.7% in the number of clients vs. Q1 24 (+1.3 million year-on-year), with onboarding still high this quarter (~458,000 new clients in Q1 25) while the churn rate remained low.

    BoursoBank has once again confirmed its leading position in France in terms of client satisfaction with an NPS (Net Promoter Score) of +5410. The online bank is also ranked as the best digital bank in France11.

    Average loan outstandings rose by +7.3% compared with Q1 24 to EUR 16 billion in Q1 25.

    Average outstanding savings, including deposits and financial savings, totalled EUR 67 billion, an increase of +15.5% vs. Q1 24. Deposits outstanding totalled EUR 41 billion in Q1 25, posting another sharp increase of +16.3% vs. Q1 24. Average life insurance outstandings, at EUR 13 billion in Q1 25, rose by +8.9% vs. Q1 24 (of which 49.2% in unit-linked products). This activity continued to register strong gross inflows over the quarter (+24.6% vs. Q1 24, 57% in unit-linked products). The brokerage activity recorded more than 3 million transactions in Q1 25, a record quarter with an increase of +48.4%
    vs. Q1 24.

    Net banking income

    In Q1 25, revenues came to EUR 2,299 million (including PEL/CEL provision), up +14.1% vs. Q1 24. Net interest income grew by +28.4% vs. Q1 24 and was broadly stable excluding asset disposals and the impact of short-term hedges in Q1 24. Fee income rose by +3.7% relative to Q1 24.

    Operating expenses

    Operating expenses came to EUR 1,566 million for the quarter, including around EUR 23 million euros of transformation charges, down -9.4% vs. Q1 24. The cost-to-income ratio stood at 68.1% in Q1 25, an improvement of 17.6 percentage points vs. Q1 24.

    Cost of risk

    In Q1 25, the cost of risk amounted to EUR 171 million, or 29 basis points, which was higher than in Q4 24 (20 basis points).

    Group net Income

    Group net income totalled EUR 421 million for the quarter. RONE stood at 9.5% in Q1 25.

    1. GLOBAL BANKING AND INVESTOR SOLUTIONS
    In EUR m Q1 25 Q1 24 Change
    Net banking income 2,896 2,631 +10.0% +8.8%*
    Operating expenses (1,755) (1,757) -0.1% -0.6%*
    Gross operating income 1,140 874 +30.4% +27.6%*
    Net cost of risk (55) 20 n/s n/s
    Operating income 1,085 894 +21.3% +18.9%*
    Group net income 856 697 +22.8% +19.6%*
    Cost to income 60.6% 66.8% 0 +0.0%*

    Net banking income

    Global Banking and Investor Solutions reported strong results in Q1 25, with revenues up +10.0% vs. Q1 24 to stand at EUR 2,896 million.

    Global Markets and Investor Services recorded solid growth of +10.0% over the quarter compared with Q1 24, at EUR 1,922 million.

    Market Activities grew in the first quarter with revenues of EUR 1,759 million, up +10.9% vs. Q1 24 in a volatile market environment.

    The Equities business delivered a record performance12 in Q1 25 with revenues of EUR 1,061 million, a sharp increase of +21.8% compared with Q1 24, driven by positive momentum particularly in flow and listed products.

    Fixed Income and Currencies were slightly down -2.4% to EUR 698 million in Q1 25, due to lower client activity on rates investment solutions and margin compression in financing activities. Commercial momentum also remained strong in flow activities, particularly for rates and forex products, driven by higher volatility.

    In Securities Services, revenues were up +1.4% compared with Q1 24 at EUR 163 million and overall stable (-0.2%) excluding participation. The level of fees is good in comparison to a high Q1 24, notably thanks to a strong commercial performance in fund distribution. Assets under Custody and Assets under Administration amounted to EUR 5,194 billion and EUR 637 billion, respectively.

    Revenues for the Financing and Advisory business totalled EUR 973 million, a sharp increase of +10.0% vs. Q1 24.

    Global Banking & Advisory posted significant revenues, up +10.5% compared with Q1 24, driven by buoyant activity in asset finance. Asset-Backed Products are steady despite less conducive market conditions compared to Q1 24. Furthermore, the performance was resilient in Mergers and Acquisitions (M&A) and Debt Capital Markets (DCM).

    Global Transaction & Payment Services once again delivered a strong performance compared with Q1 24, with a sharp increase in revenues of +8.7%, notably due to higher payment volumes with institutional clients and good commercial performance on the corporate franchise.

    Operating expenses

    Operating expenses came to EUR 1,755 million for the quarter and included around EUR 12 million in transformation charges. These are stable relative to Q1 24. The cost-to-income ratio stood at 60.6% in Q1 25.

    Cost of risk

    Over the quarter, the cost of risk was EUR 55 million, or 13 basis points vs. -5 basis points in Q1 24.

    Group net Income

    Group net income increased by +22.8% vs. Q1 24 to EUR 856 million.

    Global Banking and Investor Solutions reported a strong RONE of 18.7% for the quarter.

    1. MOBILITY, INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES
    In EURm Q1 25 Q1 24 Change
    Net banking income 2,000 2,161 -7.4% +1.1%*
    Operating expenses (1,180) (1,350) -12.6% -4.8%*
    Gross operating income 820 810 +1.2% +10.8%*
    Net cost of risk (124) (182) -31.8% -23.1%*
    Operating income 696 629 +10.7% +20.3%*
    Net profits or losses from other assets 0 4 -98.3% -98.3%*
    Non-controlling interests 212 195 +8.3% +16.1%*
    Group net income 319 278 +14.5% +24.4%*
    Cost to income 59.0% 62.5%    

    Commercial activity

    International Retail Banking

    International Retail Banking posted robust commercial activity with loan outstandings of
    EUR 61 billion, up +4.3%* vs. Q1 24, and deposits of EUR 75 billion, slightly up +1.1%* vs. Q1 24.

    In Europe, loan outstandings rose by 6.1%* vs. Q1 24 to EUR 45 billion in Q1 25 for both client segments of KB and BRD, particularly in home loans. Deposit outstandings totalled EUR 55 billion in
    Q1 25, slightly up +0.6%* vs. Q1 24, mainly driven by Romania.

    Overall, loan outstandings in Africa, Mediterranean Basin and French Overseas Territories amounted to EUR 16 billion, broadly stable* vs. Q1 24, with mixed situations across geographies. Deposit outstandings increased by +2.5%* vs. Q1 24 to EUR 20 billion in Q1 25, mainly driven by sight deposits from corporate clients.

    Mobility and Financial Services

    Overall, Mobility and Financial Services maintained a good commercial performance.

    Ayvens’ earning assets totalled EUR 53.5 billion at end-March 2025, a +1.4% increase vs. end-March 2024.

    Consumer Finance posted loans outstanding of EUR 23 billion, still down -3.0% vs. Q1 24, but decreasing at a slower pace than previously.

    Net banking income

    In Q1 25, Mobility, International Retail Banking and Financial Services recorded revenues of EUR 2,000 million, up slightly (+1.1%* vs. Q1 24).

    International Retail Banking revenues increased slightly by +1.9%* vs. Q1 24, to EUR 913 million in
    Q1 25.

    Revenues in Europe increased by +5.4%* vs. Q1 24, to EUR 520 million in Q1 25. This robust growth, both in the Czech Republic and Romania, was driven by a solid performance of net interest income and a sharp increase in fees.

    In Africa, Mediterranean Basin and French Overseas Territories, revenues remained high at
    EUR 393 million in Q1 25, a slight down -2.3%* compared with a strong first quarter of 2024.

    Overall, revenues from Mobility and Financial Services were stable* vs. Q1 24, to EUR 1,087 million in Q1 25.

    At Ayvens, net banking income stood at EUR 796 million in Q1 25, stable vs. Q1 24, with an increase in margins13. Margins are continuing to improve, standing at 562 basis points in Q1 25, vs. 522 basis points in Q1 24. The secondary market for vehicle sales is gradually returning to normal, as expected, with an average profit margin per vehicle of EUR 1,22914 per unit this quarter, vs. EUR 1,2672 in Q4 24 and
    EUR 1,6611 in Q1 24. At its level, Ayvens has a cost-to-income ratio of 58.0%15, in line with the 2025 target (57%-59%).

    Revenues for the Consumer Finance business stabilised vs. Q1 24 at EUR 223 million in Q1 25.

    Operating expenses

    Over the quarter, operating expenses decreased significantly by -4.8%* vs. Q1 24, to EUR 1,180 million in Q1 25 (of which EUR 39 million of transformation charges). The cost-to-income ratio improved in Q1 25 to 59.0% vs. 62.5% in Q1 24.

    International Retail Banking posted costs of EUR 546 million in Q1 25, down by -3.2%* vs. Q1 24.

    Mobility and Financial Services costs reached EUR 635 million in Q1 25, a sharp decrease of -6.1%*
    vs. Q1 24, with cost synergies materialising at Ayvens driven by the continued LeasePlan integration.

    Cost of risk

    Over the quarter, the cost of risk amounted to EUR 124 million or 31 basis points, which was considerably lower than in Q1 24 (43 basis points).

    Group net Income

    Over the quarter, Group net income came to EUR 319 million, up +24.4%* vs. Q1 24. RONE stood at 11.2% in Q1 25. RONE was 14.1% in International Retail Banking and 9.4% in Mobility and Financial Services in Q1 25.

    1. CORPORATE CENTRE
    In EURm Q1 25 Q1 24
    Net banking income (112) (162)
    Operating expenses (103) (145)
    Gross operating income (215) (308)
    Net cost of risk 6 9
    Net profits or losses from other assets 192 (84)
    Income tax 61 90
    Group net income 12 (327)

    The Corporate Centre includes:

    • the property management of the Group’s head office,
    • the Group’s equity portfolio,
    • the Treasury function for the Group,
    • certain costs related to cross-functional projects, as well as several costs incurred by the Group that are not re-invoiced to the businesses.

    Net banking income

    The Corporate Centre’s net banking income totalled EUR -112 million for the quarter, vs. EUR – 162 million in Q1 24, notably thanks to management actions to more efficiently use excess liquidity.

    Operating expenses

    Over the quarter, operating expenses totalled EUR -103 million, vs. EUR -145 million in Q1 24, notably thanks to a decrease in transformation charges.

    Net profits from other assets

    The Group recorded EUR +192 million in net profits from other assets during the quarter at the Corporate Centre level, notably following asset disposals of SGEF16, Societe Generale Private Banking Suisse and SG Kleinwort Hambros.

    Group net Income

    The Corporate Centre’s net income totalled EUR +12 million for the quarter, vs. EUR -327 million
    in Q1 24.

    1. 2025 FINANCIAL CALENDAR
    2025 Financial communication calendar
    May 20th, 2025 Combined General Meeting
    May 26th, 2025 Dividend detachment
    May 28th, 2025 Dividend payment
    July 31st, 2025 Second quarter and first half 2025 results
    October 30th, 2025 Third quarter and nine months 2025 results
    The Alternative Performance Measures, notably the notions of net banking income for the pillars, operating expenses, cost of risk in basis points, ROE, ROTE, RONE, net assets and tangible net assets are presented in the methodology notes, as are the principles for the presentation of prudential ratios.

    This document contains forward-looking statements relating to the targets and strategies of the Societe Generale Group.

    These forward-looking statements are based on a series of assumptions, both general and specific, in particular the application of accounting principles and methods in accordance with IFRS (International Financial Reporting Standards) as adopted in the European Union, as well as the application of existing prudential regulations.

    These forward-looking statements have also been developed from scenarios based on a number of economic assumptions in the context of a given competitive and regulatory environment. The Group may be unable to:

    – anticipate all the risks, uncertainties or other factors likely to affect its business and to appraise their potential consequences;

    – evaluate the extent to which the occurrence of a risk or a combination of risks could cause actual results to differ materially from those provided in this document and the related presentation.

    Therefore, although Societe Generale believes that these statements are based on reasonable assumptions, these forward-looking statements are subject to numerous risks and uncertainties, including matters not yet known to it or its management or not currently considered material, and there can be no assurance that anticipated events will occur or that the objectives set out will actually be achieved. Important factors that could cause actual results to differ materially from the results anticipated in the forward-looking statements include, among others, overall trends in general economic activity and in Societe Generale’s markets in particular, regulatory and prudential changes, and the success of Societe Generale’s strategic, operating and financial initiatives.

    More detailed information on the potential risks that could affect Societe Generale’s financial results can be found in the section “Risk Factors” in our Universal Registration Document filed with the French Autorité des Marchés Financiers (which is available on https://investors.societegenerale.com/en).

    Investors are advised to take into account factors of uncertainty and risk likely to impact the operations of the Group when considering the information contained in such forward-looking statements. Other than as required by applicable law, Societe Generale does not undertake any obligation to update or revise any forward-looking information or statements. Unless otherwise specified, the sources for the business rankings and market positions are internal.
    1. APPENDIX 1: FINANCIAL DATA

    GROUP NET INCOME BY CORE BUSINESS

    In EURm Q1 25 Q1 24 Variation
    French Retail, Private Banking and Insurance 421 31 x 13.4
    Global Banking and Investor Solutions 856 697 +22.8%
    Mobility, International Retail Banking & Financial Services 319 278 +14.5%
    Core Businesses 1,596 1,007 +58.5%
    Corporate Centre 12 (327) n/s
    Group 1,608 680 x 2.4

    MAIN EXCEPTIONAL ITEMS

    In EURm Q1 25 Q1 24
    Operating expenses – Total one-off items and transformation charges (74) (352)
    Transformation charges (74) (352)
    Of which French Retail, Private Banking and Insurance (23) (81)
    Of which Global Banking & Investor Solutions (12) (154)
    Of which Mobility, International Retail Banking & Financial Services (39) (69)
    Of which Corporate Centre 0 (47)
         
    Other one-off items – Total 202 (80)
    Net profits or losses from other assets 202 (80)

    CONSOLIDATED BALANCE SHEET

    In EUR m   31/03/2025 31/12/2024
    Cash, due from central banks   169,891 201,680
    Financial assets at fair value through profit or loss   548,999 526,048
    Hedging derivatives   8,171 9,233
    Financial assets at fair value through other comprehensive income   99,248 96,024
    Securities at amortised cost   41,224 32,655
    Due from banks at amortised cost   91,527 84,051
    Customer loans at amortised cost   447,815 454,622
    Revaluation differences on portfolios hedged against interest rate risk   (480) (292)
    Insurance and reinsurance contracts assets   545 615
    Tax assets   4,170 4,687
    Other assets   73,618 70,903
    Non-current assets held for sale   2,911 26,426
    Investments accounted for using the equity method   414 398
    Tangible and intangible fixed assets   61,250 61,409
    Goodwill   5,085 5,086
    Total   1,554,388 1,573,545
    In EUR m   31/03/2025 31/12/2024
    Due to central banks   10,661 11,364
    Financial liabilities at fair value through profit or loss   405,056 396,614
    Hedging derivatives   14,028 15,750
    Debt securities issued   154,356 162,200
    Due to banks   100,825 99,744
    Customer deposits   521,141 531,675
    Revaluation differences on portfolios hedged

    against interest rate risk

    		   (6,168) (5,277)
    Tax liabilities   2,301 2,237
    Other liabilities   96,417 90,786
    Non-current liabilities held for sale   2,560 17,079
    Insurance and reinsurance contracts liabilities   152,899 150,691
    Provisions   4,098 4,085
    Subordinated debts   16,148 17,009
    Total liabilities   1,474,322 1,493,957
    Shareholder’s equity   – –
    Shareholders’ equity, Group share   – –
    Issued common stocks and capital reserves   20,812 21,281
    Other equity instruments   9,873 9,873
    Retained earnings   37,863 33,863
    Net income   1,608 4,200
    Sub-total   70,156 69,217
    Unrealised or deferred capital gains and losses   400 1,039
    Sub-total equity, Group share   70,556 70,256
    Non-controlling interests   9,510 9,332
    Total equity   80,066 79,588
    Total   1,554,388 1,573,545
    1. APPENDIX 2: METHODOLOGY

    1 –The financial information presented for the first quarter 2025 was examined by the Board of Directors on April 29th, 2025 and has been prepared in accordance with IFRS as adopted in the European Union and applicable at that date. The information has not been audited.

    2 – Net banking income

    The pillars’ net banking income is defined on page 38 of Societe Generale’s 2025 Universal Registration Document. The terms “Revenues” or “Net Banking Income” are used interchangeably. They provide a normalised measure of each pillar’s net banking income taking into account the normative capital mobilised for its activity.

    3 – Operating expenses

    Operating expenses correspond to the “Operating Expenses” as presented in note 5 to the Group’s consolidated financial statements as at December 31st, 2024. The term “costs” is also used to refer to Operating Expenses. The Cost/Income Ratio is defined on page 38 of Societe Generale’s 2025 Universal Registration Document.

    4 – Cost of risk in basis points, coverage ratio for doubtful outstandings

    The cost of risk is defined on pages 39 and 748 of Societe Generale’s 2025 Universal Registration Document. This indicator makes it possible to assess the level of risk of each of the pillars as a percentage of balance sheet loan commitments, including operating leases.

    In EURm   Q1 25 Q1 24
    French Retail, Private Banking and Insurance Net Cost Of Risk 171 247
    Gross loan Outstandings 233,536 238,394
    Cost of Risk in bps 29 41
    Global Banking and Investor Solutions Net Cost Of Risk 55 (20)
    Gross loan Outstandings 172,782 162,457
    Cost of Risk in bps 13 (5)
    Mobility, International Retail Banking & Financial Services Net Cost Of Risk 124 182
    Gross loan Outstandings 159,126 167,892
    Cost of Risk in bps 31 43
    Corporate Centre Net Cost Of Risk (6) (9)
    Gross loan Outstandings 25,592 23,365
    Cost of Risk in bps (9) (15)
    Societe Generale Group Net Cost Of Risk 344 400
    Gross loan Outstandings 591,036 592,108
    Cost of Risk in bps 23 27

    The gross coverage ratio for doubtful outstandings is calculated as the ratio of provisions recognised in respect of the credit risk to gross outstandings identified as in default within the meaning of the regulations, without taking account of any guarantees provided. This coverage ratio measures the maximum residual risk associated with outstandings in default (“doubtful”).

    5 – ROE, ROTE, RONE

    The notions of ROE (Return on Equity) and ROTE (Return on Tangible Equity), as well as their calculation methodology, are specified on pages 39 and 40 of Societe Generale’s 2025 Universal Registration Document. This measure makes it possible to assess Societe Generale’s return on equity and return on tangible equity.
    RONE (Return on Normative Equity) determines the return on average normative equity allocated to the Group’s businesses, according to the principles presented on page 40 of Societe Generale’s 2025 Universal Registration Document. Starting from Q1 25 results, normative return to businesses is based on a 13% capital allocation. The Q1 25 allocated capital includes the regulatory impacts related to Basel IV, applicable since 1 January 2025.
    Group net income used for the ratio numerator is the accounting Group net income adjusted for “Interest paid and payable to holders of deeply subordinated notes and undated subordinated notes, issue premium amortisation”. For ROTE, income is also restated for goodwill impairment.
    Details of the corrections made to the accounting equity in order to calculate ROE and ROTE for the period are given in the table below:

    ROTE calculation: calculation methodology

    End of period (in EURm) Q1 25 Q1 24
    Shareholders’ equity Group share 70,556 67,342
    Deeply subordinated and undated subordinated notes (10,153) (10,166)
    Interest payable to holders of deeply & undated subordinated notes, issue premium amortisation(1) (60) (71)
    OCI excluding conversion reserves 582 696
    Distribution provision(2) (710) (256)
    Distribution N-1 to be paid (1,718) (999)
    ROE equity end-of-period 58,496 56,545
    Average ROE equity 58,609 56,522
    Average Goodwill(3) (4,191) (4,006)
    Average Intangible Assets (2,835) (2,956)
    Average ROTE equity 51,583 49,560
         
    Group net Income 1,608 680
    Interest paid and payable to holders of deeply subordinated notes and undated subordinated notes, issue premium amortisation (188) (166)
    Adjusted Group net Income 1,420 514
    ROTE 11.0% 4.1%

    171819

    RONE calculation: Average capital allocated to Core Businesses (in EURm)

    In EURm Q1 25 Q1 24 Change
    French Retail, Private Banking and Insurance 17,687 16,518 +7.1%
    Global Banking and Investor Solutions 18,324 16,011 +14.4%
    Mobility, International Retail Banking & Financial Services 11,376 11,252 +1.1%
    Core Businesses 47,386 43,781 +8.2%
    Corporate Centre 11,223 12,741 -11.9%
    Group 58,609 56,522 +3.7%

    6 – Net assets and tangible net assets

    Net assets and tangible net assets are defined in the methodology, page 41 of the Group’s 2025 Universal Registration Document. The items used to calculate them are presented below:
    2021

    End of period (in EURm) Q1 25 2024 2023
    Shareholders’ equity Group share 70,556 70,256 65,975
    Deeply subordinated and undated subordinated notes (10,153) (10,526) (9,095)
    Interest of deeply & undated subordinated notes, issue premium amortisation(1) (60) (25) (21)
    Book value of own shares in trading portfolio (44) 8 36
    Net Asset Value 60,299 59,713 56,895
    Goodwill(2) (4,175) (4,207) (4,008)
    Intangible Assets (2,798) (2,871) (2,954)
    Net Tangible Asset Value 53,326 52,635 49,933
           
    Number of shares used to calculate NAPS(3) 783,671 796,498 796,244
    Net Asset Value per Share 76.9 75.0 71.5
    Net Tangible Asset Value per Share 68.0 66.1 62.7

    7 – Calculation of Earnings Per Share (EPS)

    The EPS published by Societe Generale is calculated according to the rules defined by the IAS 33 standard (see pages 40-41 of Societe Generale’s 2025 Universal Registration Document). The corrections made to Group net income in order to calculate EPS correspond to the restatements carried out for the calculation of ROE and ROTE.
    The calculation of Earnings Per Share is described in the following table:

    Average number of shares (thousands) Q1 25 2024 2023
    Existing shares 800,317 801,915 818,008
    Deductions      
    Shares allocated to cover stock option plans and free shares awarded to staff 2,586 4,402 6,802
    Other own shares and treasury shares 7,646 2,344 11,891
    Number of shares used to calculate EPS(4) 790,085 795,169 799,315
    Group net Income (in EUR m) 1,608 4,200 2,493
    Interest on deeply subordinated notes and undated subordinated notes (in EUR m) (188) (720) (759)
    Adjusted Group net income (in EUR m) 1,420 3,481 1,735
    EPS (in EUR) 1.80 4.38 2.17

    2223
    8 – Solvency and leverage ratios

    Shareholder’s equity, risk-weighted assets and leverage exposure are calculated in accordance with applicable CRR3/CRD6 rules, including the procedures provided by the regulation for the calculation of phased-in and fully loaded ratios. The solvency ratios and leverage ratio are presented on a pro-forma basis for the current year’s accrued results, net of dividends, unless otherwise stated.

    9 – Funded balance sheet, loan to deposit ratio

    The funded balance sheet is based on the Group financial statements. It is obtained in two steps:

    • A first step aiming at reclassifying the items of the financial statements into aggregates allowing for a more economic reading of the balance sheet. Main reclassifications:

    Insurance: grouping of the accounting items related to insurance within a single aggregate in both assets and liabilities.
    Customer loans: include outstanding loans with customers (net of provisions and write-downs, including net lease financing outstanding and transactions at fair value through profit and loss); excludes financial assets reclassified under loans and receivables in accordance with the conditions stipulated by IFRS 9 (these positions have been reclassified in their original lines).
    Wholesale funding: includes interbank liabilities and debt securities issued. Financing transactions have been allocated to medium/long-term resources and short-term resources based on the maturity of outstanding, more or less than one year.
    Reclassification under customer deposits of the share of issues placed by French Retail Banking networks (recorded in medium/long-term financing), and certain transactions carried out with counterparties equivalent to customer deposits (previously included in short term financing).
    Deduction from customer deposits and reintegration into short-term financing of certain transactions equivalent to market resources.

    • A second step aiming at excluding the contribution of insurance subsidiaries, and netting derivatives, repurchase agreements, securities borrowing/lending, accruals and “due to central banks”.

    The Group loan/deposit ratio is determined as the division of the customer loans by customer deposits as presented in the funded balance sheet.

    NB (1) The sum of values contained in the tables and analyses may differ slightly from the total reported due to rounding rules.
    (2) All the information on the results for the period (notably: press release, downloadable data, presentation slides and supplement) is available on Societe Generale’s website www.societegenerale.com in the “Investor” section.

    Societe Generale

    Societe Generale is a top tier European Bank with around 119,000 employees serving more than 26 million clients in 62 countries across the world. We have been supporting the development of our economies for 160 years, providing our corporate, institutional, and individual clients with a wide array of value-added advisory and financial solutions. Our long-lasting and trusted relationships with the clients, our cutting-edge expertise, our unique innovation, our ESG capabilities and leading franchises are part of our DNA and serve our most essential objective – to deliver sustainable value creation for all our stakeholders.

    The Group runs three complementary sets of businesses, embedding ESG offerings for all its clients:

    • French Retail, Private Banking and Insurance, with leading retail bank SG and insurance franchise, premium private banking services, and the leading digital bank BoursoBank.
    • Global Banking and Investor Solutions, a top tier wholesale bank offering tailored-made solutions with distinctive global leadership in equity derivatives, structured finance and ESG.
    • Mobility, International Retail Banking and Financial Services, comprising well-established universal banks (in Czech Republic, Romania and several African countries), Ayvens (the new ALD I LeasePlan brand), a global player in sustainable mobility, as well as specialized financing activities.

    Committed to building together with its clients a better and sustainable future, Societe Generale aims to be a leading partner in the environmental transition and sustainability overall. The Group is included in the principal socially responsible investment indices: DJSI (Europe), FTSE4Good (Global and Europe), Bloomberg Gender-Equality Index, Refinitiv Diversity and Inclusion Index, Euronext Vigeo (Europe and Eurozone), STOXX Global ESG Leaders indexes, and the MSCI Low Carbon Leaders Index (World and Europe).

    In case of doubt regarding the authenticity of this press release, please go to the end of the Group News page on societegenerale.com website where official Press Releases sent by Societe Generale can be certified using blockchain technology. A link will allow you to check the document’s legitimacy directly on the web page.

    For more information, you can follow us on Twitter/X @societegenerale or visit our website societegenerale.com.

    1 Including Basel IV phasing
    2 Based on a pay-out ratio of 50% of the Group net income restated from non-cash items and after deduction of interest on deeply subordinated notes and undated subordinated notes, pro forma including Q1 25 results
    3 At comparable business model post GFC (Global Financial Crisis) regulatory regime
    4 Ratio calculated according to EBA methodology published on 16 July 2019
    5 Ratio excluding loans outstanding of companies currently being disposed of in compliance with IFRS 5
    6 Ratio of S3 provisions, guarantees and collaterals over gross outstanding non-performing loans
    7 Except for operations in the Czech Republic and Slovakia
    8 Including Basel IV phasing and pro forma Q1 25 results
    NB: SG network, Private Banking and Insurance – end Q1 25 loans and deposits exclude disposals
    9 Excluding asset disposals in Switzerland and the United Kingdom
    10 Jointly with another bank in 2025, Bain and Company, April 2025
    11 Deloitte, January 2025
    12 At comparable business model post GFC (Global Financial Crisis) regulatory regime
    13 Excluding non-recurring items
    14 Excluding impacts of depreciation adjustments
    15 As communicated by Ayvens in its Q1 25 results (excluding used car sales result and non-recurring items)
    16 Except for operations in the Czech Republic and Slovakia
    17 Interest net of tax
    18 The distribution provision is calculated based on a pay-out ratio of 50%, restated from non-cash items and after deduction of interest on deeply subordinated notes and on undated subordinated notes
    19 Excluding goodwill arising from non-controlling interests
    20 Interest net of tax
    21 Excluding goodwill arising from non-controlling interests
    22 The number of shares considered is the number of ordinary shares outstanding at end of period, excluding treasury shares and buybacks, but including the trading shares held by the Group (expressed in thousands of shares)
    23 The number of shares considered is the average number of ordinary shares outstanding during the period, excluding treasury shares and buybacks, but including the trading shares held by the Group (expressed in thousands of shares)

    Attachment

    The MIL Network –

  • MIL-OSI: Orca Energy Group Inc. Announces 2024 Year End Audited Financial Results

    Source: GlobeNewswire (MIL-OSI)

    TORTOLA, British Virgin Islands, April 29, 2025 (GLOBE NEWSWIRE) —  Orca Energy Group Inc. (“Orca” or “the Company” and includes its subsidiaries and affiliates) (TSX-V: ORC.A, ORC.B) today announced its audited financial results for the fourth quarter (“Q4 2024“) and year ended December 31, 2024. All dollar amounts are in United States dollars unless otherwise stated.

    • Revenue increased by 51% for Q4 2024 and by 1% for the year ended December 31, 2024 compared to the same prior year periods. Certain volumes were supplied as Protected Gas (defined below) prior to July 31, 2024. After the termination of Protected Gas after July 31, 2024, those volumes were instead supplied as Additional Gas (defined below). These volumes, which were delivered to Songas Limited (“Songas“) in August, September and October 2024 and for which the Company did not receive compensation, have not been recognized in revenue in 2024. These unrecognized gross revenues include 80.5% of sales to Songas in the amount of $6.2 million.
    • On October 30, 2024, PanAfrican Energy Tanzania Limited (“PAET”), a wholly-owned subsidiary of the Company, was advised by Songas that the Interim Power Purchase Agreement (“PPA”) between Tanzania Electric Supply Company Limited (“TANESCO“) and Songas would expire on October 31, 2024, and that it was unknown if a new PPA would be entered into. At midnight on October 31, 2024 Songas shut down the Songas Power Plant. In the event that a new PPA is not entered into, there is a possibility that the Songas Power Plant will be shut down indefinitely. To date the Songas Power Plant remains shutdown. This has adversely impacted demand for production volumes from the Songo Songo gas field.
    • Gas delivered and sold decreased by 3% for Q4 2024 and by 15% for the year ended December 31, 2024 compared to the same prior year periods. During 2024, Tanzania’s Julius Nyerere Hydropower Project (“JNHPP”) commenced commercial operations, with progressive commissioning of 5 turbines allowing peak output of over 700 MW. Combined with the early onset of the wet season and rainfall well above seasonal averages for the period, hydro power generation and the Songas Power Plant shutdown have been the primary factors in reduced gas liftings for the power sector.
    • On April 14, 2023, PAET formally requested Tanzanian Petroleum Development Corporation (“TPDC“) apply for an extension of the Songo Songo Development License (the “License”). TPDC is contractually required to make this application promptly upon a request by the Company. There are currently no certainties on the timing, nature and extent of any such extensions. Until such extension has been finalized, a high degree of uncertainty exists with respect to the extent of the Company’s operating activities subsequent to October 2026, when the License is set to expire. In November 2024, TPDC submitted the application for the extension of the License to the Ministry of Energy (“MoE“), however, being uneconomical, the Company informed TPDC that it did not agree with the terms as submitted. Having declined to address PAET’s concerns itself, TPDC has refused to rescind and resubmit the application and has advised PAET to raise any issues directly to the MoE. Our Counsel subsequently submitted a letter to the MoE, requesting a meeting to address the issues, to date we haven’t had a response.
    • On April 15, 2024, contrary to the terms of the Gas Agreement and Production Sharing Agreement (the “PSA”) and in violation of Pan African Energy Corporation (Mauritius) (“PAEM”) and PAET’s expectations, the Permanent Secretary of MoE wrote to TPDC, copying PAET and Songas, directing TPDC to “ensure that Protected Gas continues to be produced to the end of the Development Licence on 10th October 2026”. Consistent with that instruction, TPDC took the position that Protected Gas should continue despite the parties’ contractual agreement that Protected Gas ceased after July 31, 2024.
    • PAET, TPDC and Tanzania Portland Cement PLC (“TPCPLC”) subsequently agreed to the terms of the Supplementary Gas Agreement (“SGA”) to sell volumes after July 31, 2024 as Additional Gas, which, prior to August 1, 2024, were supplied as Protected Gas. TPCPLC has fully paid the Company $10.4 million of the receivable outstanding as at December 31, 2024.
    • Following cessation of Protected Gas after July 31, 2024, despite the absence of an executed contract to do so, Songas continued to lift gas volumes in August, September and October 2024, at an average rate of 20.2 MMcfd. On September 23, 2024, the Company was notified by Songas that it acknowledges it had lifted this volume, but due to TPDC’s refusal to approve a Gas Sales Agreement for this Additional Gas, they would elect to pay for only 19.5% of such volumes. This accords with the payment arrangements for Complex Additional Gas (defined below). Payments were made on this basis by Songas in Q4 2024, in the amount of $1.9 million representing 19.5% of the total invoiced amount of $9.7 million.
    • On August 7, 2024, PAET and PAEM issued a notice of dispute (“Notice of Dispute”) in respect of an investment treaty claim against the GoT for breach of the Agreement on Promotion and Reciprocal Protection of Investment between the Government of the Republic of Mauritius and the GoT (“BIT”), and a contractual dispute against the Government of Tanzania (“GoT”) and TPDC, for breaches of the: (i) PSA, and (ii) the Gas Agreement. Initial meetings with both the Advisory and Coordinating Committees were held during the week of October 14, 2024 without any resolution on the key issues in dispute. The matters have been further referred to the relevant entity’s chief executive officers and working groups in accordance with the dispute resolution process. Discussions continued with meetings held in March 2025 . Further updates on this matter will be made as appropriate.
    • In February 2025, the Company received a judgment (the “Judgment”) from the Tanzanian High Court (Commercial Division) (the “Court”) for a claim brought by a contractor against PAET. The claim was brought by the contractor for losses arising from PAET’s termination of a contract relating to the Company’s 3D seismic acquisition program. The contract was signed in 2022 and works were due to be completed by the end of 2022. However, work only commenced in 2023 and was never completed. Pursuant to the Judgment, the Court ordered specific and general damages in the aggregate of $23.1 million, plus legal costs and interest at a rate of 7% per annum be paid by PAET to the contractor. PAET respectfully disagrees with the Judgement and has initiated the appeal process. PAET was required to post security for the full amount of the Judgment until the appeal is resolved. The Company has recognised the resulting liability in 2024 based on the Judgement applied. The Company has initiated the appeal process, and if successful in that process, a reversal would be recognized in earnings at that time.
    • The well intervention operations on SS-7 have now concluded. The work program, following a complex mobilization to Songo Songo Island, sought to restore the mechanical integrity of the well to shutoff water production in order to restart production from the southern compartment of the Songo Songo gas field. Following several remedial cement treatments to shut off the lower water producing zone and reperforation of the upper Neocomian sands, limited and unsustained gas flows were observed. The Company, in line with its contingency plans, set a cement plug above the Neocomian interval and perforated the shallower Cenomanian sands. Having completed all possible downhole work, and after an unsuccessful attempt to produce gas from the Cenomanian sands, the Company ceased well intervention operations and demobilized the barge and jack-up from the SS-7 site. The total expected project cost has increased to $25.9 million from $23.5 million, primarily as a result of the significant attempts required to shut off water and reproduce the well. A comprehensive post project analysis will be carried out to evaluate the intervention results, which have not met production expectations. During the year, the Company recorded an asset impairment expense of $25.9 million with respect to the SS-7 well workover program.
    • The Company completed a production and saturation logging program in three wells: SS-3, SS-10 and SS-5. Results indicate that the wells and field are performing in line with expectations, and have been used to update longer term reservoir management plans. The total expected program cost increased to $2.2 million from $1.3 million.
    • Net loss attributable to shareholders amounted to $21.6 million for the year ended December 31, 2024 compared to net income attributable to shareholders of $7.0 million for the same prior year period. In Q4 2024, the Company recorded an asset impairment expense of $25.9 million with respect to the SS-7 well workover program and a loss allowance of $21.7 million with respect to the ongoing litigation relating to the Judgment in the High Court of Tanzania.
    • Net cash flows from operating activities decreased by 37% for Q4 2024 and by 44% for the year ended December 31, 2024 compared to the same prior year periods. The decrease for the year ended December 31, 2024 over the comparable prior year period is mainly a result of changes in non-cash working capital.
    • Capital expenditures increased by 635% for Q4 2024 and by 244% for the year ended December 31, 2024 compared to the same prior year periods. The capital expenditures in 2024 primarily related to the well workover program. The capital expenditures in 2023 primarily related to the initial costs of the well workover program and the 3D seismic acquisition program.
    • The Company exited the period with $21.9 million in working capital (December 31, 2023: $67.3 million), cash and cash equivalents of $90.1 million (December 31, 2023: $101.6 million) and long-term debt of $ nil (December 31, 2023: $30.0 million). Cash held in hard currencies (USD, Euro, GBP, CDN) was $87.1 million, as at December 31, 2024 (December 31, 2023: $60.4 million). The decrease in long-term debt is related to a repayment of principal of $10.0 million in April 2024 and October 2024, representing the fourth and fifth semi-annual repayments of the Company’s long-term debt as well as maturing of the outstanding loan principal.
    • Subsequent to December 31, 2024, the Company fully prepaid the $60 million investment (the “Loan”) made by International Finance Corporation (“IFC”) in PAET, pursuant to a loan agreement dated October 29, 2015 between the IFC, PAET and the Company (the “Loan Agreement”). To effect the foregoing prepayment, the Company paid to IFC $30.6 million, representing the aggregate outstanding principal of the Loan together with all accrued interest thereon and all other amounts owing in connection with the Loan as of February 21, 2025. As of the date hereof, the annual variable participating interest granted by PAET to the IFC under the terms of the Loan Agreement remains outstanding.
    • As at December 31, 2024, the current receivable from TANESCO was $12.7 million (December 31, 2023: $5.9 million). The TANESCO long-term receivable as at December 31, 2024 and as at December 31, 2023 was $22.0 million and has been fully provided for. Subsequent to December 31, 2024, the Company has invoiced TANESCO $14.5 million for Q1 2025 gas deliveries. TANESCO has paid the Company $24.2 million to date which relate to the outstanding amount at December 31, 2024 and payments for a portion of Q1 2025 gas deliveries
    • Total working interest proved conventional natural gas reserves (“1P”) and total proved plus probable conventional natural gas reserves (“2P”) decreased by 53% and 56%, respectively, as at December 31, 2024 compared to the prior year. The decrease was primarily attributed to 26.7 Bcf of production in 2024 and 18.1 Bcf of negative technical revisions. The technical revisions were primarily due to lower forecasted gas sales to the end of the License attributed to increased hydro power use in Tanzania and the removal of Proved Undeveloped reserves due to the unsuccessful well intervention on SS-7. The net present value of lower reserves and estimated future cash flows from 2P reserves at a 10% discount rate decreased by 45% compared to the previous year mainly as a result of lower reserves at year end 2024 and the associated 33% reduction in the number of years outstanding on the current License.
    • We currently forecast average Additional Gas sales for 2025 to be in the range of 70-72 MMcfd for the full year which is estimated to be 4% lower than 2024. Given the uncertainty associated with the extension of the License, capital allocations for development projects will be minimal during 2025 and limited to the implementation of essential safety and maintenance matters only.
    Financial and Operating Highlights for the Three Months and Year Ended December 31, 2024
        Three Months
    ended December 31    		     % Change         Year ended
    December 31        		    % Change           

    (Expressed in $’000 unless indicated otherwise)

    2024

    		  

    2023

    		   Q4/24 vs
    Q4/23

    2024

    		  

    2023

    		 Ytd/24 vs
    Ytd/23    		  
    OPERATING              
    Daily average gas delivered and sold(MMcfd) 78.6   80.8   (3)%   72.9   85.6 (15 )%    
    Industrial 19.7   13.4   47%   16.1   13.7 18 %    
    Power 58.9   67.4   (13)%   56.8   71.9 (21 )%    
    Daily average gas delivered and sold and revenue recognized(MMcfd) 71.8   80.8   (11)%   68.8   85.6 (20 )%    
    Industrial 19.7   13.4   47%   16.1   13.7 18 %    
    Power 52.1   67.4   (23)%   52.7   71.9 (27 )%    
    Average price($/mcf)                
    Industrial 7.35   8.97   (18)% 8.45   8.73   (3)%       
    Power 3.90   3.84   2% 3.88   3.71   5%       
    Weighted average 4.85   4.69   3% 4.95   4.51   10%       
    Operating netback($/mcf)1 3.56   2.28   56% 3.13   2.38   32%       

    FINANCIAL

    		              
    Revenue 36,855   24,448   51% 111,593   110,235 1%       
    Net (loss) / income attributable to shareholders (25,821 ) (438 ) n/m (21,578)   7,014 n/m      
    per share – basic and diluted($) (1.31 ) (0.02 ) n/m (1.09)   0.35 n/m      
    Net cash flows from operating activities 6,254   9,858   (37)% 27,086   48,485 (44)%      
    per share – basic and diluted($)1 0.32   0.50   (36)% 1.37   2.44 (44)%      
    Capital expenditures1 14,869   2,065   620% 27,548   8,103 240%      
    Weighted average Class A and Class B Shares1(‘000) 19,772   19,826   0% 19,780   19,841 0%      
          December 31,

    As at
    December 31,

    		    
          2024   2023 % Change  
    Working capital (including cash)1       21,904     67,323   (67 )%        
    Cash and cash equivalents       90,076     101,566   (11 )%        
    Long-term loan       –   21,961   (100 )%        
    Outstanding shares(‘000)                    
    Class A       1,750     1,750   0 %        
    Class B       18,022     18,051   0 %        
    Total shares outstanding       19,772     19,801   0 %        

    RESERVES2

    		                  
    Gross Reserves(Bcf)                  
    Proved       40   85    (53)%      
    Probable       1   9    (89)%      
    Proved plus probable       41   94    (56)%      
    Net Present Value, discounted at 10%($ million)                    
    Proved                             62           108    (43)%          
    Proved plus probable                             65           119    (45)%          

    1 See Non-GAAP Financial Measures and Ratios.

    Jay Lyons, Chief Executive Officer, commented:

    “Orca remains committed to Tanzania and wants to play a key role in Tanzania’s power generation strategy for the foreseeable future. Although demand for power in Tanzania is growing rapidly, surpassing the country’s current capacity, Orca has been unable to agree with the Government of Tanzania and TPDC with regard to securing a license extension for the Songo Songo gas field.

    Given the limited time remaining on the License, and the lack of a resolution on an extension, Orca has limited capital spending to only essential safety and maintenance activities. At this current moment, further investment is not commercially viable unless the License is extended. Therefore, in order to preserve shareholder value, Orca has focused on reducing costs, operating efficiently, and minimizing expenditures.

    There are currently no certainties on the timing, nature and extent of any such extensions. Until such extension has been finalized, a high degree of uncertainty exists with respect to the extent of the Company’s operating activities subsequent to October 2026. The Company is prepared to invest further in Tanzania. However, this investment depends on resolving the License extension and achieving a sustainable commercial framework. Without a resolution, Orca must act to protect the interests of its shareholders, even as it continues to support Tanzania’s long-term energy goals.”

    The Company’s complete Audited Consolidated Financial Statements and Notes and Management’s Discussion & Analysis for the year ended December 31, 2024 may be found on the Company’s website www.orcaenergygroup.com or on the Company’s profile on SEDAR+ at www.sedarplus.ca.

    Orca Energy Group Inc.

    Orca Energy Group Inc. is an international public company engaged in natural gas development and supply in Tanzania through its subsidiary PanAfrican Energy Tanzania Limited. Orca trades on the TSX Venture Exchange under the trading symbols ORC.B and ORC.A.

    The principal asset of Orca is its indirect interest in the with TPDC and the GoT in the United Republic of Tanzania. This PSA covers the production and marketing of certain gas from the License offshore Tanzania. The PSA defines the gas produced from the Songo Songo gas field as “Protected Gas“ and “Additional Gas“. The Gas Agreement defined “Complex Additional Gas”, to be gas produced from the Songo Songo gas field, which is included in Additional Gas. Under the Gas Agreement, until July 31, 2024, Protected Gas was owned by TPDC and was sold to Songas and TPCPLC. After July 31, 2024, Protected Gas ceased and all production from the Songo Songo gas field constitutes Additional Gas which PAET and TPDC are entitled to sell on commercial terms until the PSA expires in October 2026. Songas is the owner of the infrastructure that enables the gas to be processed and delivered to Dar es Salaam, which includes a gas processing plant on Songo Songo Island. Additional Gas is all gas that is produced from the Songo Songo gas field in excess of Protected Gas.

    Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

    Abbreviations

    Bcf billion standard cubic feet
    MMcf million standard cubit feet
    MMcfd million standard cubic feet per day

    Non-GAAP Financial Measures and Ratios
    In this press release, the Company has disclosed the following non-GAAP financial measures, non-GAAP ratios and supplementary financial measures: capital expenditures, operating netback, operating netback per mcf, working capital, net cash flows from operating activities per share and weighted average Class A and Class B Shares.

    These non-GAAP financial measures and ratios disclosed in this press release do not have any standardized meaning under IFRS and may not be comparable to similar financial measures disclosed by other issuers. These non-GAAP financial measures and ratios should not, therefore, be considered in isolation or as a substitute for, or superior to, measures and ratios of the Company’s financial performance defined or determined in accordance with IFRS. These non-GAAP financial measures and ratios are calculated on a consistent basis from period to period.

    Non-GAAP Financial Measures

    Capital expenditures
    Capital expenditures is a useful measure as it provides an indication of our investment activities. The most directly comparable financial measure is net cash from (used in) investing activities. A reconciliation to the most directly comparable financial measure is as follows:

      Three Months ended 
    December 31    		    Year ended
    December 31       		  
    $’000 2024   2023     2024   2023  
    Pipelines, well workovers and infrastructure 14,869   2,067     27,233   7,984  
    Other capital expenditures –   (2 )   315   119  
    Capital expenditures 14,869   2,065     27,548   8,103  
    Right of use –   852     57   852  
    Change in non-cash working capital (4,125 ) (708 )   (9,645 ) (161 )
    Net cash used by investing activities 10,744   2,209     17,960   8,794  

    Operating netback

    Operating netback is calculated as revenue less processing and transportation tariffs, TPDC’s revenue share, and operating and distribution costs. The operating netback summarizes all costs that are associated with bringing the gas from the Songo Songo gas field to the market, it is a measure of profitability. A reconciliation to the most directly comparable financial measure is as follows:

      Three Months ended
    December 31    		   Year ended
    December 31    		  
    $’000 2024   2023     2024   2023  
    Revenue 36,855   24,448     111,593   110,235  
    Production, distribution and transportation expenses (5,265 ) (4,576 )   (19,990 ) (19,197 )
    Net Production Revenue 31,590   19,872     91,603   91,038  
    Less current income tax adjustment (recorded in revenue) (8,061 ) (2,896 )   (12,817 ) (16,527 )
    Operating netback 23,529   16,976     78,786   74,511  
    Sales volumes MMcf where revenue is recognized 6,604   7,435     25,185   31,256  
    Netback $/mcf 3.56   2.28     3.13   2.38  

    Non-GAAP Ratios

    Operating netback per mcf

    Operating netback per mcf represents the profit margin associated with the production and sale of Additional Gas and is calculated by taking the operating netback and dividing it by the volume of Additional Gas delivered and sold. This is a key measure as it demonstrates the profit generated from each unit of production.

    Supplementary Financial Measures

    Working capital

    Working capital is defined as current assets less current liabilities, as reported in the Company’s Consolidated Statements of Financial Position. It is an important measure as it indicates the Company’s ability to meet its financial obligations as they fall due.

    Net cash flows from operating activities per share

    Net cash flows from operating activities per share is calculated as net cash flows from operating activities divided by the weighted average number of shares, similar to the calculation of earnings per share. Net cash flow from operations is an important measure as it indicates the cash generated from the operations that is available to fund ongoing capital commitments.

    Weighted average Class A and Class B Shares

    In calculating the weighted average number of shares outstanding during any period the Company takes the opening balance multiplied by the number of days until the balance changes. It then takes the new balance and multiplies that by the number of days until the next change, or until the period end. The resulting multiples of shares and days are then aggregated and the total is divided by the total number of days in the period.

    Forward-Looking Statements

    This press release contains forward-looking statements or information (collectively, “forward-looking statements”) within the meaning of applicable securities legislation. All statements, other than statements of historical fact included in this press release, which address activities, events or developments that Orca expects or anticipates to occur in the future, are forward-looking statements. Forward-looking statements often contain terms such as may, will, should, anticipate, expect, continue, estimate, believe, project, forecast, plan, intend, target, outlook, focus, could and similar words suggesting future outcomes or statements regarding an outlook. More particularly, this press release contains, without limitation, forward-looking statements pertaining to the following: anticipated average gas sales, including Additional Gas sales, for 2024; ongoing negotiation of new commercial terms and discussion of requirements under the Gas Agreement with Songas and TPCPLC; ongoing discussion of PGSA extension with TANESCO; assessment by the Company of the merits of the claim made by the seismic contractor and the timing of the scheduled hearing; planned intervention in offshore well SS-7 including timing, project costs and the anticipated increased gas delivery; planned installation of a new common well inlet manifold and its anticipated timing, costs and effects; planned production logging program at various wells and its anticipated timing, costs and effects; implementation of a new work program at the Songas plant and forecasted production improvement as a result; the Company’s expectation that capital projects will be funded through the Company’s working capital; the Company’s expectation that all capital allocation decisions will be based upon prudent economic evaluations and returns; extension of the development license and the Company’s expectation to continue to actively engage with the MoE to progress the license extension; maintenance of gas sale contract discipline by the Company in accordance with its gas supply agreements; and the Company’s expectations regarding supply and demand of natural gas. In addition, statements relating to “reserves” are by their nature forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions that the reserves described can be produced profitably in the future. The recovery and reserve estimates of the Company’s reserves provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. Although management believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, access to resources and infrastructure, performance or achievement since such expectations are inherently subject to significant business, economic, operational, competitive, political and social uncertainties and contingencies.

    These forward-looking statements involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company’s control, and many factors could cause the Company’s actual results to differ materially from those expressed or implied in any forward-looking statements made by the Company, including, but not limited to: risk that the Company may incur losses and legal expenses as a result of the claim brought forth by the seismic contractor; risk that the cost, timing and anticipated benefits from the Company’s various development programs in 2024 are different than expected; that not all capital allocation decisions will be based upon prudent economic evaluations and returns; inability to extend the development license and inability to maintain gas sale contract discipline; uncertainties with respect to negotiations involving the Gas Agreement; changes to forecasts regarding future development capital spending and source of capital funding; risk of future restrictions on the movement of cash from Jersey, Mauritius or Tanzania; occurrence of circumstance or events which significantly impact the Company’s cash flow and liquidity and the Company’s ability cover its long-term and short-term obligations or fund planned capital expenditures; prolonged foreign exchange reserves deficiency in Tanzania; the lack of availability of US dollars; inability to convert Tanzanian shillings into US dollars as and when required; discontinuation of work by the Company with the GoT on alternative development plan for longer term field development; lack of access to Songas processing and transportation facilities; risk of reduced current and potential production capacity of the Songo Songo gas field; the Company’s expectations regarding the supply and demand of natural gas is incorrect; uncertainty associated with the evolution of Tanzanian legislation; the risk of unanticipated effects regarding changes to the Company’s tax liabilities and its operations as a result of amendments made to existing legislation, the implementation of further legislation and the Company’s interpretation of the same; the impact of general economic conditions in the areas in which the Company operates; civil unrest; the susceptibility of the areas in which the Company operates to outbreaks of disease; industry conditions; changes in laws and regulations including the adoption of new environmental laws and regulations; impact of local content regulations and variances in the interpretation and enforcement of such regulations; the lack of availability of qualified personnel or management; fluctuations in commodity prices, foreign exchange or interest rates; stock market volatility; competition for, among other things, capital, oil and gas field services and skilled personnel and increased competition; failure to obtain required equipment for field development; delays in development plans; effect of changes to the PSA on the Company as a result of the implementation of new government policies for the oil and gas industry; inaccurate reserves estimates; incorrect forecasts in production and growth potential of the Company’s assets; obtaining required approvals of regulatory authorities; risks associated with negotiating with foreign governments; inability to satisfy debt conditions of financing; risk that the Company will not be able to fulfil its contractual obligations; risk that trade and other receivables may not be paid by the Company’s customers when due; the risk that the Company’s Tanzanian operations will not provide near term revenue earnings; reduced global economic activity as a result of the continuing impacts of geo-political conflicts or pandemics. In addition, there are risks and uncertainties associated with oil and gas operations, therefore the Company’s actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by these forward-looking statements will transpire or occur, or if any of them do so, what benefits the Company will derive therefrom. Readers are cautioned that the foregoing list of factors is not exhaustive.

    Future shareholder returns, including but not limited to the payment of dividends or other distributions to shareholders, if any, and the level thereof is uncertain. Any decision to pay further distributions on the Class A Shares and Class B Shares (including the actual amount, the declaration date, the record date and the payment date in connection therewith) will be subject to the discretion of the Board of Directors of the Company and may depend on a variety of factors, including, without limitation the Company’s business performance, financial condition, financial requirements, growth plans, expected capital requirements and other conditions existing at such future time including, without limitation, contractual restrictions and compliance with applicable laws. There can be no assurance that the Company will pay any distributions in the future.

    Such forward-looking statements are based on certain assumptions made by the Company in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors the Company believes are appropriate in the circumstances, including, but not limited to, the anticipated supply and demand of natural gas are in line with the Company’s expectations; the Company’s average Additional Gas sales are in line with forecasts; accurate assessment by the Company of the merit of claims brought forward by the seismic contractor; successful negotiation of the Gas Agreement; successful implementation of various development programs at the budgeted expenditures, including the planned intervention in the SS-7 well; all capital allocation decisions will be based upon prudent economic evaluations and returns; extension of the development license and maintenance of gas sale contract discipline on a go-forward basis pursuant to the Company’s gas supply agreements; that the Company will receive payment of arrears from TANESCO; that the Company will have sufficient cash flow, debt or equity sources or other financial resources required to fund its capital and operating expenditures and requirements as needed; that there will continue to be no restrictions on the movement of cash from Mauritius, Jersey or Tanzania; availability of US dollars and that the Company will continue to be able to convert Tanzanian shillings into US dollars as required; that the Company will successfully negotiate agreements; receipt of required regulatory approvals; the ability of the Company to increase production as required to meet demand; infrastructure capacity; commodity prices will not deteriorate significantly; the ability of the Company to obtain equipment and services in a timely manner to carry out exploration, development and exploitation activities; future capital expenditures; availability of skilled labor; timing and amount of capital expenditures; uninterrupted access to infrastructure; that the impact of increasing competition is consistent with expectations; conditions in general economic and financial markets; effects of regulation by governmental agencies; current or, where applicable, proposed industry conditions, laws and regulations will continue in effect or as anticipated as described herein; the effect of new environmental and climate-change related regulations will not negatively impact the Company; the Company is able to maintain strong commercial relationships with the GoT and other state and parastatal organizations; the current and future administration in Tanzania continues to honor the terms of the PSA and the Company’s other principal agreements; and other matters.

    The forward-looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

    The MIL Network –

  • MIL-OSI Security: New Paltz Man Charged with Online Sexual Exploitation of a Minor

    Source: Office of United States Attorneys

    ALBANY, NEW YORK – Max Fishkind, age 24, of New Paltz, New York, was charged today with sexual exploitation of a child.  United States Attorney John A. Sarcone III and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.

    According to a complaint filed today, on September 23, 2024, Fishkind used, persuaded, induced, enticed and coerced a child into creating and sending him self-produced child sexual abuse material over Snapchat.  The child, who was 15 years old at the time of the crime, reported that Fishkind initially told the child he was 17 years old, but the child later learned that Fishkind was not a minor and stopped communicating with him. 

    The investigation into Fishkind began after the parents of a minor child residing in the state of Maryland reported to the FBI that their child had engaged in inappropriate sexual messaging with Fishkind, which included self-produced nude images of the minor that had been sent to Fishkind over Snapchat.  When the FBI learned that Fishkind had since moved from Houston, Texas, to New Paltz, FBI Albany took over the investigation, which resulted in the charge filed today. The charges against Fishkind are merely accusations.  The defendant is presumed innocent unless and until proven guilty.

    Fishkind made his initial appearance before U.S. Magistrate Judge Daniel J. Stewart today.  He was detained pending a detention hearing scheduled for May 5.

    If convicted of the offense, Fishkind faces at least 15 years and up to 30 years in prison, a fine of up to $250,000, and a supervised release term of at least 5 years and up to life. Fishkind may also be ordered to pay restitution to the victim of his offense and forfeit any devices used in the offense. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. Fishkind would also have to register as a sex offender upon his release from prison.

    The FBI is investigating this case.  Assistant U.S. Attorney Benjamin S. Clark is prosecuting the case as part of Project Safe Childhood.

    Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc. Lead with the action and the most basic information – who, what, when and where. 

    MIL Security OSI –

  • MIL-OSI Security: McAlester Resident Sentenced To Eleven Years For Maiming In Indian Country

    Source: Office of United States Attorneys

    MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced Cody Ray McFadden, age 36, of McAlester, Oklahoma, was sentenced to 132 months in prison for one count of Maiming in Indian Country.

    The charge arose from an investigation by the Pittsburg County Sheriff’s Office, the Oklahoma Highway Patrol, and the Federal Bureau of Investigation.

    On December 16, 2024, McFadden pleaded guilty to the charge.  According to investigators, on July 16, 2022, McFadden invited a visitor to his residence. Once inside, McFadden beat the victim, forced the victim into a cage, and padlocked the door.  During the next 36 hours, McFadden proceeded to assault and torture the victim, threatening to kill the victim with a cross bow and intentionally striking at the victim with an axe.  The victim, who sustained a head laceration, burns, bruises, and a broken arm, managed to break free, escape through a window, and run to a neighbor’s home.  Law enforcement responding to the neighbor’s emergency call took McFadden into custody after a brief standoff.  The crime occurred in Pittsburg County, within the boundaries of the Choctaw Nation Reservation, in the Eastern District of Oklahoma.

    “This defendant demonstrated a complete lack of humanity, subjecting the victim to an extended period of violence resulting in unimaginable physical and mental trauma,” said FBI Oklahoma City Special Agent in Charge Doug Goodwater.  “The FBI and our law enforcement partners are committed to rooting out violent offenders through aggressive investigations and prosecutions.”

    “This is the stuff of nightmares, but unfortunately, it was sickeningly real,” said United States Attorney Christopher J. Wilson.  “I commend the bravery of this survivor, the quick work of law enforcement in securing an end to this horrifying ordeal, and the steadfastness of investigators and prosecutors who ensured that McFadden spends the next decade in prison answering for his ruthless crimes.”

    The Honorable Ronald A. White, Chief U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing.  McFadden will remain in the custody of the U.S. Marshals Service pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.

    Assistant U.S. Attorney Joshua Satter represented the United States.

    MIL Security OSI –

  • MIL-OSI Security: Porcupine Man Sentenced to 12 Years in Federal Prison for the Shooting Death of Pregnant Girlfriend

    Source: Office of United States Attorneys

    RAPID CITY – United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Porcupine, South Dakota, man convicted of Involuntary Manslaughter, the Unborn Victims of Violence Act, and Possession of an Unregistered Firearm. The sentencing took place on April 25, 2025.

    McKenzie Big Crow, age 20, was sentenced to a total of 12 years in federal prison for Involuntary Manslaughter, the Unborn Victims of Violence Act, and Possession of an Unregistered Firearm, to be followed by three years of supervised release. Big Crow was also ordered to pay $300 in special assessments to the Federal Crime Victims Fund.

    A federal grand jury indicted Big Crow in June 2024. In January 2025, he was found guilty following a federal jury trial.

    On August 20, 2023, near Porcupine, Big Crow was illegally in possession of a Savage Arms Model 62, semiautomatic rifle. The barrel had been sawed off, and the defendant had taped components of an Airsoft rifle to the gun to make it appear like an AK-47. Big Crow claimed he put the rifle in a backpack and that the gun discharged when he bumped the bag against a door. The gunshot struck 19-year-old Ashton Provost in the chest, killing her and her unborn child within minutes. The gun was later found hidden under Big Crow’s bed. On the day of the shooting, Big Crow had drugs in his system including marijuana, cocaine, MDMA (commonly known as ecstasy) and methamphetamine.

    “We commend the U.S. Attorney’s Office in the District of South Dakota for its decision to pursue charges under the Unborn Victims of Violence Act — recognizing the value of every life lost as a result of this crime,” said Special Agent in Charge Alvin M. Winston Sr. of the FBI Minneapolis. “This case highlights our shared commitment to justice for the most vulnerable and to holding violent offenders accountable to the fullest extent of the law.”

    This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

    This matter was prosecuted by the U.S. Attorney’s Office because the Major Crimes Act, a federal statute, mandates that certain violent crimes alleged to have occurred in Indian country be prosecuted in Federal court as opposed to State court.

    This case was investigated by the FBI, the Oglala Sioux Tribe Department of Public Safety, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Heather Knox prosecuted the case.

    Big Crow was immediately remanded to the custody of the U.S. Marshals Service.

    ###

    MIL Security OSI –

  • MIL-OSI Security: Tonawanda man going to prison for 25 years for production of child pornography

    Source: Office of United States Attorneys

    BUFFALO, N.Y. – U.S. Attorney Michael DiGiacomo announced today that Michael E. Swain, 37, of Tonawanda, NY, who was convicted of production of child pornography, was sentenced to serve 25 years in prison and lifetime supervised release by U.S. District Judge Lawrence J. Vilardo.

    Assistant U.S. Attorney Aaron J. Mango, who handled the case, stated that between October 20 and November 1, 2021, Swain coerced five minor victims to engage in sexually explicit conduct for the purpose of producing visual depictions. Specifically, Swain communicated with a 15-year-old minor female who resided in Colorado using Discord, a social media platform. The communications included sexually graphic conversations, during which Swain requested that the minor female take sexually explicit videos and images and send them to him. In addition, Swain engaged in numerous sexual communications with the minor female from approximately 2019 to 2022, during which other sexually explicit images and videos were sent from to Swain. On February 28, 2023, the FBI executed a search warrant at Swain’s residence and seized a desktop computer tower, a laptop computer, and an external hard drive, all of which were found to contain child pornography.

    The sentencing is the result of an investigation by the Tonawanda Police Department, under the direction of Chief James Stauffiger, the Federal Bureau of Investigation Buffalo Office Child Exploitation Human Trafficking Task Force, under the direction of Special Agent-in-Charge Matthew Miraglia, and the New York State Police, under the direction of Amie Feroleto.

    # # # #

    MIL Security OSI –

  • MIL-OSI: GBank Financial Holdings Inc. Announces First Quarter 2025 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    LAS VEGAS, April 29, 2025 (GLOBE NEWSWIRE) — GBank Financial Holdings Inc. (the “Company”) (OTCQX: GBFH), the parent company of GBank (the “Bank”), today reported net income for the quarter ended March 31, 2025 of $4.5 million, or $0.31 per diluted share, compared to $5.2 million, or $0.37 per diluted share during the fourth quarter of 2024, and $3.7 million, or $0.29 per diluted share, for the first quarter of 2024.

    First Quarter 2025 Financial Highlights (Unaudited)

    • Net income of $4.5 million and diluted earnings per share of $0.31
    • Net revenue(1)of $17.4 million, an increase of 31.4% compared to the first quarter of 2024
    • SBA Lending and Commercial Banking loan originations of $133.0 million, compared to $136.6 million for the first quarter of 2024
    • Gain on sale of loans of $2.5 million on loans sold of $68.7 million, compared to gain on sale of loans of $2.1 million on loans sold of $68.6 million for the first quarter of 2024
    • Credit card charge transactions of $105.6 million and net interchange fees of $2.0 million, compared to $1.1 million and $20 thousand, respectively, for the first quarter of 2024
    • Non-interest expenses include legal, professional, and audit fees from registration on Forms S-1 and S-1A, which total approximately $1.1 million to date
    • Net interest margin of 4.47%
    • Total deposit growth of $189.0 million, or 23.4% compared to March 31, 2024
    • Total on-balance sheet guaranteed loans of $245.6 million, compared to $263.5 million as of March 31, 2024
    • Non-performing assets, excluding guaranteed portions, of $5.7 million, representing 0.48% of total assets

    Edward M. Nigro, Executive Chairman, stated, “While quarterly net revenues(1) increased 31% over the first quarter of 2024, our first quarter noninterest income, driven by the increased monetization of Gaming FinTech operations, increased 51% year-over-year with noninterest revenue exceeding $5 million. And in just these last two weeks, GBFH received SEC approval of its S-1 filing and was approved to commence trading on NASDAQ – we have been busy.”

    Registration Statement on Form S-1

    On April 16, 2025, the Company announced that the U.S. Securities and Exchange Commission declared effective the Company’s Registration Statement on Form S-1 (the “Form S-1”) related to registration and resale of 1,081,081 shares of common stock, currently held by existing stockholders and issued in the Company’s Private Placement Offering (the “Offering”) which closed on October 11, 2024.

    The Company is not currently offering or selling new shares of common stock, and there will be no change to the issued and outstanding number of shares of common stock of the Company in connection with the Form S-1. Copies of the prospectus included in the Registration Statement may be obtained from the Company by request or by visiting
    https://www.sec.gov/Archives/edgar/data/1791145/000147793225002363/gbfh_s1.htm.

    Financial Results

    Income Statement

    Net interest income totaled $11.9 million for the first quarter of 2025, reflecting an increase of $105 thousand, or 0.9%, compared to $11.8 million for the fourth quarter of 2024, and an increase of $1.1 million, or 10.1%, compared to the first quarter of 2024.

    The increase in net interest income from the fourth quarter was driven by a favorable reduction in the cost of deposits, partially offset by lower interest income on loans. The favorable decrease in the cost of deposits of $305 thousand was the result of (i) the redemption of $20 million of certain higher-cost callable brokered deposits during the quarter having a weighted-average interest rate of 4.95%, (ii) rate decreases on interest-bearing deposits resulting from the 50 basis point decrease in the federal funds rate enacted during the fourth quarter 2024 by the Federal Open Market Committee (“FOMC”), and (iii) the non-recurring effect of accelerated recognition of certain premiums on brokered certificates of deposits during the fourth quarter of 2024 totaling $170 thousand. The favorable decrease in the cost of deposits was partially offset by a decrease in interest income on loans of $395 thousand primarily due to the full-quarter impact of the previously mentioned 50 basis point decrease in the federal funds rate on the Bank’s variable rate loan portfolio. Interest income for the first quarter of 2025 reflects the net effect of the reversal of $100 thousand of interest accruals, deferred fees, and deferred costs attributable to $2.8 million of commercial loans placed on nonaccrual status during the first quarter of 2025. Comparatively, the fourth quarter of 2024 reflects the net effect of the reversal of $342 thousand of interest accruals, deferred fees, and deferred costs attributable to $12.4 million of commercial loans placed on nonaccrual status.

    The increase in net interest income when compared to the first quarter of 2024 was primarily volume driven, as higher interest income from growth in average loan and interest-bearing cash balances more than offset increases in interest expense resulting from higher average balances of interest-bearing deposits.

    Investment securities yield was 4.94% for the first quarter of 2025, compared to 4.74% for the fourth quarter of 2024 and 4.16% for the first quarter of 2024. The increase in investment securities yield when compared to the previous linked quarter and to the same quarter of 2024 was driven by the purchase of $72.9 million of investment securities over the previous twelve months to replace certain lower-yielding U.S. Treasury securities that matured during 2024.

    The Company’s net interest margin for the first quarter of 2025 decreased to 4.47%, compared to 4.53% for the fourth quarter of 2024 and 4.85% for the first quarter of 2024. The decrease in net interest margin when compared to the fourth and first quarters of 2024 is reflective of the full-quarter impact of the 50 basis point decrease in the federal funds rate enacted in during the fourth quarter of 2024 by the FOMC on variable rate loans, investment securities, and interest bearing cash balances and interest income reversals relating to loans placed on nonaccrual status during the quarter.

    The Company recorded a provision for credit losses on loans of $710 thousand for the first quarter of 2025, a decrease of $627 thousand compared to $1.3 million for the fourth quarter of 2024. No provision for credit losses on loans was recorded during the first quarter of 2024. The provision for credit losses on loans recorded in the first quarter of 2025 reflects quarterly growth in non-guaranteed loans of $24.4 million.

    Non-interest income was $5.5 million for the first quarter of 2025, compared to $5.8 million for the fourth quarter of 2024, and $2.4 million for the first quarter of 2024. The $301 thousand decrease in non-interest income when compared to the fourth quarter of 2024 was driven by a $1.5 million decrease in income from gain on sale of loans due to a decrease in average pretax gain on sale margin and lower sales volume quarter-over-quarter. The decrease in gain on sale of loans was partially offset by an increase in credit card net interchange fees of $1.1 million quarter-over-quarter due to increased credit card transaction volume. The $3.1 million increase in non-interest income when compared to the first quarter of 2024 was driven by (i) an increase in credit card net interchange fees of $2.0 million, (ii) a $643 thousand increase in loan servicing income as the first quarter of 2024 reflected the write-off of certain loan servicing assets totaling $401 thousand relating to the repurchase of the guaranteed portion of previously sold SBA loans, and (iii) a $454 thousand increase in income from gain on sale of loans.

    Net revenue(1) totaled $17.4 million for the first quarter of 2025, representing a decrease of $196 thousand, or 1.1%, compared to $17.6 million for the fourth quarter of 2024. Net revenue(1) for the first quarter of 2025 increased $4.2 million, or 31.4%, when compared to $13.2 million for the first quarter of 2024.

    Non-interest expense was $10.9 million during the first quarter of 2025, compared to $9.7 million for the fourth quarter of 2024 and $8.4 million for the first quarter of 2024. The Company’s efficiency ratio was 62.8%, compared to 55.4% for the fourth quarter of 2024 and 63.4% for the first quarter of 2024. The increase in non-interest expense from the fourth quarter of 2024 is primarily due to an increase of $587 thousand in employee compensation costs attributable to higher commission expenses related to loan production. The increase in non-interest expense also reflects extraordinary legal, professional, and audit fees incurred to date totaling $1.1 million associated with the preparation and filing of the registration statement with the Securities and Exchange Commission on Forms S-1 and S-1/A, approximately $786 thousand of these expenses were incurred during the first quarter of 2025. Additionally, data processing expenses increased $201 thousand when compared to the fourth quarter of 2024 related mainly to higher credit card volume. The increase in non-interest expense from the first quarter of 2024 was driven by a $1.1 million increase in employee compensation costs due to increased staffing levels, as well as a $1.5 million increase in other expenses due to the previously mentioned legal, professional, and audit fees associated with the registration statement filing and increases in data processing, supplies, and other non-interest expenses to support the growth of the organization.

    Income tax expense was $1.2 million for each of the quarters ended March 31, 2025 and December 31, 2024, and $1.1 million for the first quarter of 2024. The Company’s effective tax rate was 21.4% for the quarter ended March 31, 2025 compared to 19.1% for the quarter ended December 31, 2024 and 23.1% for the quarter ended March 31, 2024. The fluctuations in the effective tax rate are largely driven by the timing and volume of certain stock-based compensation transactions resulting in tax benefits to the Company, as well as the timing and volume of state tax adjustments.

    Net income was $4.5 million for the first quarter of 2025, a decrease of $774 thousand from $5.2 million for the fourth quarter of 2024, and an increase of $769 thousand from $3.7 million for the first quarter of 2024. Diluted earnings per share totaled $0.31 for the first quarter of 2025, compared to $0.37 for the fourth quarter of 2024 and $0.29 for the first quarter of 2024. Earnings per share and other share-based metrics have been impacted by the shares issued in the previously mentioned Offering.

    The Company had 175 full-time equivalent employees as of March 31, 2025, compared to 169 full-time equivalent employees as of December 31, 2024, and 150 full-time equivalent employees as of March 31, 2024.

    Balance Sheet

    Total loans, net of deferred fees and costs were $843.4 million as of March 31, 2025, compared to $816.0 million as of December 31, 2024, and $733.6 million as of March 31, 2024. Loans, net of deferred fees and costs increased $27.4 million during the first quarter of 2025 as increases in commercial real estate loans more than offset decreases in commercial and industrial and residential loans. The increase in loans, net of deferred fees and costs of $109.8 million from March 31, 2024 was primarily driven by increases of $97.7 million in commercial real estate loans. Total guaranteed loans as a percentage of loans(1) were 24.2% as of March 31, 2025, compared to 24.7% as of December 31, 2024, and 29.8% as of March 31, 2024.

    The Company’s allowance for credit losses totaled $9.0 million as of March 31, 2025, compared to $9.1 million as of December 31, 2024 and $7.1 million as of March 31, 2024. The allowance for credit losses as a percentage of total loans was 1.07% as of March 31, 2025, compared to 1.12% as of December 31, 2024, and 0.97% as of March 31, 2024. The allowance for loan losses as a percentage of total loans, excluding guaranteed portions(1), was 1.41% as of March 31, 2025, compared to 1.48% as of December 31, 2024, and 1.38% as of March 31, 2024.

    Deposits totaled $995.9 million as of March 31, 2025, an increase of $60.9 million from $935.1 million as of December 31, 2024, and an increase of $189.0 million from $806.9 million as of March 31, 2024. By deposit type, the increase from the prior quarter was driven by an increase of $40.7 million in certificates of deposit and a $23.3 million increase in savings and money market accounts. From March 31, 2024, certificates of deposit increased by $83.9 million, and savings and money market accounts increased by $80.5 million. Noninterest-bearing deposits totaled $242.7 million as of March 31, 2025, an increase of $3.0 million from $239.7 million as of December 31, 2024, and an increase of $26.3 million from $216.3 million as of March 31, 2024.

    The Company’s ratio of loans to deposits was 84.7% as of March 31, 2025, compared to 87.3% as of December 31, 2024, and 90.9% as of March 31, 2024.

    The Company held no short-term borrowings as of March 31, 2025 or December 31, 2024, compared to short term borrowings of $10.0 million as of March 31, 2024. As of March 31, 2025, the Company had approximately $488.3 million in available borrowing capacity from the Federal Reserve Bank, the Federal Home Loan Bank, and through its various Fed Funds lines.

    Subordinated notes totaled $26.1 million as of March 31, 2025 and December 31, 2024, compared to $26.0 million as of March 31, 2024.

    Stockholders’ equity was $146.6 million as of March 31, 2025, compared to $140.7 million as of December 31, 2024, and $102.6 million as of March 31, 2024. The increase in stockholders’ equity from December 31, 2024 is attributable to increases in retained earnings resulting from net income earned during the quarter. The increase in stockholders’ equity since March 31, 2024 was driven by the previously mentioned Offering, net income earned during the previous twelve months, as well as an increase in capital resulting from the issuance of non-voting common shares related to the Company’s investment in BankCard Services, LLC (“BCS“) during the second quarter of 2024.

    The Company’s common equity to tangible assets ratio was 12.3% as of March 31, 2025, compared to 12.5% as of December 31, 2024, and 10.6% as of March 31, 2024. The Bank’s Tier 1 leverage ratio was 14.2% as of March 31, 2025, compared to 12.9% as of December 31, 2024, and 13.0% as of March 31, 2024. The increase in the Bank’s Tier 1 leverage ratio was the result of the downstream of $15.0 million in additional capital from the holding company to the Bank during the first quarter of 2025. The Company’s book value per share was $10.27 as of March 31, 2025, an increase of 4.1% from $9.87 as of December 31, 2024, and an increase of 28.4% from $8.00 as of March 31, 2024. The increase in tangible book value per share from December 31, 2024 is attributable to net income and increases in additional paid in capital resulting from certain stock-based compensation activity during the quarter. The increase since March 31, 2024 is attributable to net income, the Offering, and the increases in capital resulting from the issuance of non-voting common shares related to the Company’s investment in BCS during the second quarter of 2024.

    Total assets increased 6.0% to $1.190 billion as of March 31, 2025, from $1.122 billion as of December 31, 2024, and increased 23.5% from $963.4 million as of March 31, 2024. The increase in total assets from December 31, 2024 was primarily driven by increases in loans and interest-bearing deposits with banks. The increase in total assets from March 31, 2024 was primarily driven by increases in loans, interest bearing deposits with banks, and investment securities.

    Asset Quality

    The provision for credit losses on loans totaled $710 thousand for the first quarter of 2025, compared to $1.3 million for the fourth quarter of 2024. No provision for credit losses on loans was recorded during the first quarter of 2024. Net loan charge-offs in the first quarter of 2025 totaled $828 thousand, or 0.39% of average net loans (annualized), compared to net loan charge-offs of $157 thousand, or 0.07% of average net loans (annualized) in the fourth quarter of 2024 and no net loan charge-offs or recoveries during the first quarter of 2024.

    Nonaccrual loans increased $5.1 million during the quarter to $19.2 million as of March 31, 2025, and increased $13.1 million from $6.1 million as of March 31, 2024. Loans past due 90 days and accruing interest totaled $1.2 million as of March 31, 2025, compared to $40 thousand as of December 31, 2024, and $33 thousand as of March 31, 2024. The balance of loans past due 90 days and accruing of $1.2 million at March 31, 2025 was comprised of one commercial real estate loan totaling $1.1 million and certain credit card balances totaling $49 thousand.

    The Company held no other real estate owned as of March 31, 2025 or 2024, or December 31, 2024.

    Total non-performing assets totaled $20.4 million as of March 31, 2025, an increase of $6.2 million from $14.2 million as of December 31, 2024, and an increase of $14.2 million from $6.1 million as of March 31, 2024. Non-performing assets, excluding guaranteed portions, totaled $5.7 million as of March 31, 2025, an increase of $839 thousand from $4.8 million as of December 31, 2024 and an increase of $4.1 million from $1.6 million as of March 31, 2024.

    Loans past due between 30 and 89 days and accruing interest totaled $14.9 million as of March 31, 2025, an increase of $3.0 million from $11.8 million as of December 31, 2024, and an increase of $11.4 million from $3.4 million as of March 31, 2024. The guaranteed portion of loans past due between 30 and 89 days and accruing interest totaled $11.9 million as of March 31, 2025.

    The ratio of total non-performing assets to total assets was 1.71% as of March 31, 2025, compared to 1.26% as of December 31, 2024, and 0.64% as of March 31, 2024. The ratio of non-performing assets, excluding guaranteed portions, to total assets(1) was 0.48% as of March 31, 2025, compared to 0.43% as of December 31, 2024, and 0.16% as of March 31, 2024.

    Other Financial Highlights

    SBA Lending and Commercial Banking

    SBA Lending and Commercial Banking loan originations totaled $133.0 million for the first quarter of 2025, compared to $120.0 million for the fourth quarter of 2024 and $136.6 million for the first quarter of 2024. Loan sale volume decreased to $68.7 million during the first quarter of 2025, compared to $98.5 million for the fourth quarter of 2024, and increased slightly from $68.6 million during the first quarter of 2024. Gain on sale of loans decreased 36.5% to $2.5 million, compared to $4.0 million for the fourth quarter of 2024, and increased 21.8% from $2.1 million for the first quarter of 2024. The average pretax gain on sale of loans margin was 3.69% for the first quarter of 2025, compared to 4.06% for the fourth quarter of 2024 and 3.04% for the first quarter of 2024.

    Gaming FinTech

    GBank’s partner, BCS, has been actively developing its pipeline of Pooled Player and Pooled Consumer Accounts “Powered by PIMS and CIMS”™. BCS is currently onboarding three new programs. BCS is working with two gaming operators as a part of the latest Product Express partnership with MasterCard and i2c announced during the third quarter of 2024. One client is a cash access service provider in the casino industry and the other is a social gaming operator. Both are working to onboard their prepaid issuing program through this partnership. These programs are expected to be active early in the second quarter of 2025. BCS has executed an additional card issuing agreement with a client offering prepaid access services for cashless venues nationwide. This program went live in the first quarter of 2025. Additionally, the BoltBetz slot machine application is now expected to be fully live in the second quarter of 2025.

    BCS and GBank now have seventeen active payment and PPA/PCA clients. Currently, BCS and GBank are conducting due diligence for three new clients, with anticipated onboarding in future quarters. Gaming FinTech deposits averaged $37.1 million for the first quarter of 2025, compared to $30.5 million for the fourth quarter of 2024.

    The Bank launched its GBank Visa Signature® Card in the second quarter of 2023 for prime and super-prime consumers, offering one percent cash rewards on gaming transactions and two percent cash rewards on all other purchases.

    Credit card charge transactions were $105.6 million for the first quarter of 2025, compared to $51.7 million for the fourth quarter of 2024 and $1.1 million for the first quarter of 2024. Credit card balances were $2.3 million as of March 31, 2025, compared to $1.6 million as of December 31, 2024 and $542 thousand as of March 31, 2024. Through March 31, 2025, and since launch, the Bank has processed over $172 million in gaming transactions through its credit card product.

    GBank continues to develop and improve its operational credit card systems, including the internal implementation of application landing pages and internal customer service resources. These efforts are a continuation of the Company’s ongoing strategy to ultimately manage all systems directly as opposed to relying on outsourced third parties. Direct control over these critical resources has become more important as we focus are executing on new marketing agreements, create significant additional social media presence, and require related product systems with the ability to perform on a mass scale. Implementation and testing of these initiatives is currently underway with completion anticipated during the third quarter of 2025, which is expected to cause slowing growth in credit card transactions and growth over the short-term.

    Non-Voting Equity Investment in BankCard Services, LLC

    On June 26, 2024, the Company announced the acquisition of a 32.99% non-voting equity interest in BCS. This acquisition was completed by exchanging 231,508 shares of restricted, non-voting GBFH common stock for 143,371 shares of non-voting BCS common stock. The GBFH non-voting stock must be held by BCS for a minimum of one year and can only be converted into voting shares upon a disposition by BCS, in accordance with applicable Federal Reserve regulations.

    Earnings Call

    The Company will host its first quarter 2025 earnings call on Wednesday, April 30, 2025, at 10:00 a.m. PST. Interested parties can participate remotely via Internet connectivity. There will be no physical location for attendance.

    Interested parties may join online, via the ZOOM app on their smartphones, or by telephone:

    • ZOOM Conference ID 826 3030 7240
    • Passcode: 549549

    Joining by ZOOM Conference (audio only):

    Log in on your computer at 
    https://us02web.zoom.us/j/82630307240?pwd=TU4yZXJqMEc2VGZoUm5rRTl0OVFxdz09
     or use the ZOOM app on your smartphone.

    Joining by Telephone

    Dial (408) 638-0968. The conference ID is 826 3030 7240. Passcode: 549549.

    Click here to learn more about GBank Financial Holdings Inc.

    Notice Regarding Disclosures and Forward-Looking Statements

    This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities. Any offers, solicitations or offers to buy, or any sales of securities will be made in accordance with the registration requirements of the Securities Act of 1933, as amended (“Securities Act”). This announcement is being issued in accordance with Rule 135 under the Securities Act.

    This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, statements regarding certain of the Company’s goals and expectations with respect to future events that are subject to various risks and uncertainties, and statements preceded by, followed by, or that include the words “may,” “will,” “could,” “should,” “expect,” “plan,” “project,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “pursuant,” “target,” “continue,” and similar expressions. These statements are based upon the current belief and expectations of the Company’s management team and are subject to significant risks and uncertainties that are subject to change based on various factors (many of which are beyond the Company’s control). Factors that could cause actual results to differ materially from management’s projections, forecasts, estimates and expectations include, but are not limited to: the impact on us or our customers of a decline in general economic conditions and any regulatory responses thereto; potential recession in the United States and our market areas; the impacts related to or resulting from bank failures and any continuation of uncertainty in the banking industry, including the associated impact to the Company and other financial institutions of any regulatory changes or other mitigation efforts taken by government agencies in response thereto; increased competition for deposits and related changes in deposit customer behavior; the impact of changes in market interest rates, whether due to continued elevated interest rates or potential reductions in interest rates and a resulting decline in net interest income; the persistence of the inflationary pressures, or the resurgence of elevated levels of inflation, in the United States and our market areas; the uncertain impacts of ongoing quantitative tightening and current and future monetary policies of the Board of Governors of the Federal Reserve System; effects of declines in housing prices in the United States and our market areas; increases in unemployment rates in the United States and our market areas; declines in commercial real estate values and prices; uncertainty regarding United States fiscal debt and budget matters; cyber incidents or other failures, disruptions or breaches of our operational or security systems or infrastructure, or those of our third-party vendors or other service providers, including as a result of cyber-attacks; severe weather, natural disasters, acts of war or terrorism, geopolitical instability or other external events; regulatory considerations; our ability to recognize the expected benefits and synergies of our completed acquisitions; the maintenance and development of well-established and valued client relationships and referral source relationships; acquisition or loss of key production personnel; changes in tax laws; the risks related to the development, implementation, use and management of emerging technologies, including artificial intelligence and machine learnings; potential increased regulatory requirements and costs related to the transition and physical impacts of climate change; and current or future litigation, regulatory examinations or other legal and/or regulatory actions. These forward-looking statements are based on current information and/or management’s good faith belief as to future events. Although the Company believes that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove to be inaccurate. Therefore, the Company can give no assurance that the results contemplated in the forward-looking statements will be realized. Due to these and other possible uncertainties and risks, readers are cautioned not to place undue reliance on the forward-looking statements contained in this press release. The inclusion of this forward-looking information should not be construed as a representation by the Company or any person that the future events, plans, or expectations contemplated by the Company will be achieved. All subsequent written and oral forward-looking statements attributable to the Company or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above. The forward-looking statements are made as of the date of this press release. The Company does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made, except as required by law. All forward-looking statements, express or implied, included in the press release are qualified in their entirety by this cautionary statement.

    GBank Financial Holdings Inc.
    9115 West Russell Road, Suite 110
    Las Vegas, Nevada 89148
    https://www.gbankfinancialholdings.com/

    FIRST QUARTER 2025 FINANCIAL RESULTS (UNAUDITED)

    Quarter Highlights:
    Net Income Earnings per
    diluted share    		 Net revenue(1) Net interest margin On-balance sheet guaranteed loans Book value per common share
    $4.5 million $0.31 $17.4 million 4.47% $245.6 million $10.27
    CEO COMMENTARY:
    “Our results reflect a continuation of strong earnings, with Company revenues absorbing elevated one-time costs, including SEC related audit, accounting, and legal expenses, which have now totaled approximately $1.1 million to date,” stated T. Ryan Sullivan, President/CEO
    LINKED QUARTER BASIS QTD YEAR-OVER-YEAR
    FINANCIAL HIGHLIGHTS:
    • Net income of $4.5 million and earnings per diluted share of $0.31, compared to $5.2 million and $0.37, respectively
    • Net interest income of $11.9 million, an increase of 0.9%, or $105 thousand
    • Net income of $4.5 million and earnings per diluted share of $0.31, compared to $3.7 million and $0.29, respectively
    • Net interest income of $11.9 million, an increase of 10.1%, or $1.1 million
    • Gain on sale of loans of $2.5 million, a decrease of 36.5%, or $1.5 million
    • Gain on sale of loans of $2.5 million, an increase of 21.8%, or $454 thousand
    • Noninterest income of $5.5 million, a decrease of 5.2%, or $301 thousand
    • Noninterest income of $5.5 million, an increase of 127.2%, or $3.1 million
    • Net revenue(1) of $17.4 million, a decrease of 1.1%, or $196 thousand
    • Net revenue(1) of $17.4 million, an increase of 31.4%, or $4.2 million
    • Noninterest expense of $10.9 million, an increase of 12.2%, or $1.2 million
    • Noninterest expense of $10.9 million, an increase of 30.2%, or $2.5 million
    FINANCIAL POSITION RESULTS:
    • On-balance sheet guaranteed loans of $245.6 million, an increase of 5.0%, or $11.6 million
    • On-balance sheet guaranteed loans of $245.6 million, a decrease of 6.8%, or $18.0 million
    • Total deposits of $996.0 million, an increase of 6.5%, or $60.9 million
    • Total deposits of $996.0 million, an increase of 23.4%, or $189.0 million
    • Stockholders’ equity of $146.6 million, an increase of 4.2%, or $5.9 million
    • Stockholders’ equity of $146.6 million, an increase of 42.9%, or $44.0 million
    LOANS AND ASSET QUALITY:
    • Nonperforming assets (nonaccrual loans, accruing loans past due 90 days or more, and OREO) to total assets of 1.71%, compared to 1.26%
    • Nonperforming assets, excluding guaranteed balances, to total assets of 0.48%, compared to 0.43%
    • Nonperforming assets (nonaccrual loans, accruing loans past due 90 days or more, and OREO) to total assets of 1.71%, compared to 0.64%
    • Nonperforming assets, excluding guaranteed balances, to total assets of 0.48%, compared to 0.16%
    • ACL to loans, excluding guaranteed balances, of 1.41%, compared to 1.48%
    • ACL to loans, excluding guaranteed balances, of 1.41%, compared to 1.38%
    KEY PERFORMANCE METRICS:
    • Net interest margin decreased to 4.47%, compared to 4.53%
    • Net interest margin decreased to 4.47%, compared to 4.85%
    • Loan originations of $133.0 million, an increase of 10.9%, or $13.0 million
    • Loan originations of $133.0 million, a decrease of 2.7%, or $3.6 million
    • Return on average assets and equity was 1.61% and 12.59%, compared to 1.93% and 15.13%, respectively
    • Return on average assets and equity was 1.61% and 12.59%, compared to 1.59% and 14.67%, respectively
    • Book value per share of $10.27, an increase of 4.1% from $9.87
    • Book value per share of $10.27, an increase of 28.4% from $8.00
    GBank Financial Holdings Inc.
    Condensed Consolidated Balance Sheets
    (Unaudited)
                                       
                          Linked Quarter   Quarter YOY
                          3/31/25 vs. 12/31/24   3/31/25 vs. 3/31/24
    ($’s in 000, except per share data) Mar 31, 2025   Dec 31, 2024   Sep 30, 2024   Jun 30, 2024   Mar 31, 2024   $ Var   % Var   $ Var   % Var
    Assets                                  
    Cash and Due From Banks $ 6,701     $ 9,262     $ 5,798     $ 5,409     $ 8,334     $ (2,561 )   -27.6 %   $ (1,633 )   -19.6 %
    Interest-Bearing Deposits With Other Financial Institutions   140,270       114,860       65,160       82,749       45,844       25,410     22.1 %     94,426     206.0 %
    Total Cash and Cash Equivalents   146,971       124,122       70,958       88,158       54,178       22,849     18.4 %     92,793     171.3 %
                                       
    Investment Securities:                                  
    Available For Sale, at Fair Value   71,468       65,609       39,381       2,330       2,588       5,859     8.9 %     68,880     2661.5 %
    Held to Maturity, at Amortized Cost   39,903       40,569       46,043       56,520       86,999       (666 )   -1.6 %     (47,096 )   -54.1 %
                                       
    Loans Held For Sale   41,313       32,649       68,317       40,489       44,901       8,664     26.5 %     (3,588 )   -8.0 %
    Loans, Net of Deferred Fees and Costs:                                  
    Commercial and Industrial   56,885       64,000       53,490       50,498       46,863       (7,115 )   -11.1 %     10,022     21.4 %
    Commercial Real Estate – Non-owner Occupied   672,379       630,551       607,864       583,463       546,408       41,828     6.6 %     125,971     23.1 %
    Commercial Real Estate – Owner Occupied   81,768       88,802       86,785       106,595       110,065       (7,034 )   -7.9 %     (28,297 )   -25.7 %
    Construction and Land Development   3,201       2,934       2,161       529       386       267     9.1 %     2,815     729.3 %
    Multifamily   19,011       17,374       17,398       17,420       17,037       1,637     9.4 %     1,974     11.6 %
    Residential   7,619       10,584       12,025       13,443       12,281       (2,965 )   -28.0 %     (4,662 )   -38.0 %
    Consumer   2,502       1,713       1,276       909       549       789     46.1 %     1,953     355.7 %
    Total Loans, Net of Deferred Fees and Costs   843,365       815,958       780,999       772,857       733,589       27,407     3.4 %     109,776     15.0 %
    Less: Allowance for Credit Losses   (8,997 )     (9,114 )     (7,934 )     (7,342 )     (7,088 )     117     -1.3 %     (1,909 )   26.9 %
    Total Net Loans   834,368       806,844       773,065       765,515       726,501       27,524     3.4 %     107,867     14.8 %
                                       
    Loan Servicing Asset   9,231       8,976       8,046       7,698       7,124       255     2.8 %     2,107     29.6 %
    Restricted Investment in Bank Stock   4,652       4,652       4,652       4,652       3,222       –     0.0 %     1,430     44.4 %
    All Other Assets   42,106       38,943       37,540       43,992       37,937       3,163     8.1 %     4,169     11.0 %
    Total Assets $ 1,190,012     $ 1,122,364     $ 1,048,002     $ 1,009,354     $ 963,450     $ 67,648     6.0 %   $ 226,562     23.5 %
    Liabilities                                  
    Non-Interest Bearing Demand $ 242,650     $ 239,672     $ 229,875     $ 220,438     $ 216,307     $ 2,978     1.2 %   $ 26,343     12.2 %
    Interest Bearing Demand   62,035       68,132       65,623       65,120       63,740       (6,097 )   -8.9 %     (1,705 )   -2.7 %
    Savings and Money Market   280,056       256,724       244,091       222,115       199,549       23,332     9.1 %     80,507     40.3 %
    Certificates of Deposit   411,201       370,552       343,931       332,695       327,326       40,649     11.0 %     83,875     25.6 %
    Total Deposits   995,942       935,080       883,520       840,368       806,922       60,862     6.5 %     189,020     23.4 %
                                       
    Short-Term Borrowings   –       –       –       12,000       10,000       –     0.0 %     (10,000 )   -100.0 %
    Subordinated Debt   26,107       26,088       26,070       26,051       26,032       19     0.1 %     75     0.3 %
    Operating Lease Liability   6,299       4,839       5,032       5,221       5,409       1,460     30.2 %     890     16.5 %
    Other Liabilities   15,048       15,657       16,997       14,769       12,521       (609 )   -3.9 %     2,527     20.2 %
    Total Liabilities   1,043,396       981,664       931,619       898,409       860,884       61,732     6.3 %     182,512     21.2 %
                                       
    Equity                                  
    Common Stock   1       1       1       1       1       –     0.0 %     –     0.0 %
    Additional Paid-in Capital   78,718       77,571       57,287       56,966       53,322       1,147     1.5 %     25,396     47.6 %
    Retained Earnings   68,906       64,437       59,192       54,177       49,501       4,469     6.9 %     19,405     39.2 %
    Accumulated Other Comprehensive Loss   (1,009 )     (1,309 )     (97 )     (199 )     (258 )     300     -22.9 %     (751 )   291.1 %
    Total Stockholders’ Equity   146,616       140,700       116,383       110,945       102,566       5,916     4.2 %     44,050     42.9 %
    Total Liabilities & Stockholders’ Equity $ 1,190,012     $ 1,122,364     $ 1,048,002     $ 1,009,354     $ 963,450     $ 67,648     6.0 %   $ 226,562     23.5 %
                                       
    Book Value Per Common Share $ 10.27     $ 9.87     $ 8.91     $ 8.49     $ 8.00     $ 0.40     4.1 %   $ 2.27     28.4 %
                                       
    GBank Financial Holdings Inc.
    Condensed Consolidated Income Statements
    (Unaudited)
                       
      Three Months Ended
    ($’s in 000, except per share data) Mar 31, 2025   Dec 31, 2024   Sep 30, 2024   Jun 30, 2024   Mar 31, 2024
    Interest Income                  
    Loans $ 16,836     $ 17,231     $ 17,347     $ 16,360     $ 15,330  
    Deposits With Other Financial Institutions   1,192       1,099       1,367       1,165       972  
    Investment Securities   1,281       1,177       924       868       1,014  
    Other Interest Bearing Balances   100       103       102       96       74  
    Total Interest Income   19,409       19,610       19,740       18,489       17,390  
                       
    Interest Expense                  
    Deposits   7,230       7,535       7,194       6,848       6,198  
    Short-term Borrowings and Subordinated Debt   285       286       287       293       390  
    Total Interest Expense   7,515       7,821       7,481       7,141       6,588  
                       
    Net Interest Income   11,894       11,789       12,259       11,348       10,802  
    Provision for Credit Losses – Loans   (710 )     (1,337 )     (570 )     (283 )     –  
    Provision for Credit Losses – Unfunded Commitments   (11 )     (13 )     (8 )     (12 )     (20 )
    Net Interest Income after Provision for Credit Losses   11,173       10,439       11,681       11,053       10,782  
                       
    Other Income                  
    Gain on Sales of Loans   2,537       3,998       2,838       3,163       2,083  
    Loan Servicing Income   703       597       566       534       60  
    Service Charges and Fees   56       54       48       41       41  
    Net Interchange Fees   2,003       947       284       146       20  
    Other Income   164       168       166       282       201  
    Total Other Income   5,463       5,764       3,902       4,166       2,405  
                       
    Noninterest Expenses                  
    Salaries and Employee Benefits   6,400       5,813       5,495       5,752       5,290  
    Occupancy Expenses   392       398       404       417       447  
    Other Expenses   4,115       3,509       3,156       2,963       2,637  
    Total Noninterest Expenses   10,907       9,720       9,055       9,132       8,374  
                       
    Income Before Provision For Income Taxes   5,729       6,483       6,528       6,087       4,813  
    Provision For Income Taxes   (1,224 )     (1,239 )     (1,513 )     (1,411 )     (1,112 )
    Net Income Before Equity Investment Loss   4,505       5,244       5,015       4,676       3,701  
    Net Loss Attributable to Equity Investment   (35 )     –       –       –       –  
    Net Income $ 4,470     $ 5,244     $ 5,015     $ 4,676     $ 3,701  
                       
    Earnings Per Share $ 0.31     $ 0.37     $ 0.38     $ 0.36     $ 0.29  
    Earnings Per Share (Diluted) $ 0.31     $ 0.37     $ 0.38     $ 0.36     $ 0.29  
                       
    GBank Financial Holdings Inc.
    Average Balances, Rates, and Interest Income and Expense
    (Unaudited)
                                               
              For the Three Months Ended
              March 31, 2025   December 31, 2024   March 31, 2024
    (Dollars in thousands)   Average       Yield/   Average       Yield/   Average       Yield/
              Balance   Interest   Rate(2)   Balance   Interest   Rate(2)   Balance   Interest   Rate(2)
    ASSETS:                                    
      Interest Bearing Deposits   $ 102,628   $ 1,192   4.71 %   $ 85,424   $ 1,099   5.12 %   $ 66,100   $ 972   5.91 %
      Investment Securities:                                    
        Taxable     105,222     1,281   4.94 %     98,712     1,177   4.74 %     98,084     1,014   4.16 %
      Loans and Loans Held For Sale     866,690     16,836   7.88 %     846,583     17,231   8.10 %     727,786     15,330   8.47 %
      Restricted Investment in Bank Stock     4,652     100   8.72 %     4,652     103   8.81 %     3,222     74   9.24 %
        Total Earning Assets     1,079,192     19,409   7.29 %     1,035,371     19,610   7.53 %     895,192     17,390   7.81 %
                                               
      Cash and Due From Banks     6,216             5,938             5,935        
      Other Assets     39,177             38,753             33,602        
          Total Assets   $ 1,124,585           $ 1,080,062           $ 934,729        
                                               
    LIABILITIES & SHAREHOLDERS’ EQUITY                                    
      Deposits:                                    
        Interest-bearing Demand   $ 65,693   $ 355   2.19 %   $ 64,453   $ 385   2.38 %   $ 65,303   $ 393   2.42 %
        Money Market and Savings     264,085     2,411   3.70 %     255,068     2,496   3.89 %     186,372     1,759   3.80 %
        Certificates of Deposit     385,704     4,464   4.69 %     359,285     4,654   5.15 %     309,221     4,046   5.26 %
          Total Interest-Bearing Deposits     715,482     7,230   4.10 %     678,806     7,535   4.42 %     560,896     6,198   4.44 %
                                               
      Short-Term Borrowings     –     –   0.00 %     2     –   0.00 %     7,583     104   5.52 %
      Subordinated Debt     26,095     285   4.43 %     26,076     286   4.36 %     26,021     286   4.42 %
          Total Interest-Bearing Liabilities     741,577     7,515   4.11 %     704,884     7,821   4.41 %     594,500     6,588   4.46 %
                                               
      Noninterest-bearing Deposits     218,874             214,880             220,767        
      Other Liabilities     20,139             22,403             18,003        
      Shareholders’ Equity     143,995             137,895             101,459        
          Total Liabilities & Shareholders’ Equity   $ 1,124,585           $ 1,080,062           $ 934,729        
                                               
      Net Interest Income       $ 11,894           $ 11,789           $ 10,802    
                                               
      Total Yield on Earning Assets           7.29 %           7.53 %           7.81 %
      Cost on Interest-Bearing Liabilities           4.11 %           4.41 %           4.46 %
      Average Interest Spread           3.18 %           3.12 %           3.35 %
      Net Interest Margin           4.47 %           4.53 %           4.85 %
      Net Interest Margin (Bank Only)           4.58 %           4.64 %           4.98 %
    GBank Financial Holdings Inc.
    Additional Financial Information
    (Unaudited)
                         
        Three Months Ended
    ($’s in 000, except per share data)   Mar 31, 2025   Dec 31, 2024   Sep 30, 2024   Jun 30, 2024   Mar 31, 2024
                         
    Key Performance Metrics                    
    Return on Average Assets-Net Income (2)     1.61 %     1.93 %     1.96 %     1.90 %     1.59 %
    Return on Average Stockholders’ Equity(2)     12.59 %     15.13 %     17.29 %     17.59 %     14.67 %
    Efficiency Ratio     62.84 %     55.38 %     56.03 %     58.86 %     63.41 %
    Net Interest Margin(2)     4.47 %     4.53 %     5.00 %     4.82 %     4.85 %
    Net Revenue(1)   $ 17,357     $ 17,553     $ 16,161     $ 15,514     $ 13,207  
    Common Equity / Assets     12.3 %     12.5 %     11.1 %     11.0 %     10.6 %
    Tier 1 Leverage Ratio – Bank     14.23 %     12.90 %     13.08 %     12.88 %     13.03 %
                         
    Selected Loan Metrics                    
    Guaranteed Portion of Loans Held for Sale   $ 41,313     $ 32,649     $ 68,317     $ 40,489     $ 44,901  
    Guaranteed Portion of Loans Held for Investment     204,239       201,267       203,027       215,382       218,619  
    Total Guaranteed Loans     245,552       233,916       271,344       255,871       263,520  
    Guaranteed Loans as a Percent of Loans(1)     24.2 %     24.7 %     26.0 %     27.9 %     29.8 %
                         
    Asset Quality                    
    Total nonaccrual loans   $ 19,220     $ 14,128     $ 5,381     $ 6,470     $ 6,096  
    Loans past due 90 days and still accruing     1,153       40       27       1,142       33  
    Other real estate owned     –       –       –       –       –  
    Total non-performing assets     20,373       14,168       5,408       7,612       6,129  
    Non-performing assets: guaranteed portion     14,687       9,321       3,838       5,396       4,572  
    Non-performing assets: non-guaranteed portion     5,686       4,847       1,570       2,216       1,557  
                         
    Non-performing assets to total assets     1.71 %     1.26 %     0.52 %     0.75 %     0.64 %
    Non-performing assets, excluding guaranteed, to total assets(1)     0.48 %     0.43 %     0.15 %     0.22 %     0.16 %
    Net charge-offs (recoveries)   $ 828     $ 157     $ (22 )   $ 29     $ –  
                         
    Loans past due 30-89 days and accruing   $ 14,853     $ 11,822     $ 12,390     $ 1,054     $ 3,428  
    Loans past due 30-89 days and accruing: guaranteed portion   $ 11,915     $ 8,713     $ 8,535     $ –     $ 1,028  
    Loans past due 30-89 days and accruing: non-guaranteed portion   $ 2,938     $ 3,109     $ 3,855     $ 1,054     $ 2,400  
                         
    Allowance for Credit Losses (ACL)   $ 8,997     $ 9,114     $ 7,934     $ 7,342     $ 7,088  
    Nonaccrual loans   $ 19,220     $ 14,128     $ 5,381     $ 6,470     $ 6,096  
    ACL to nonaccrual loans     47 %     65 %     147 %     113 %     116 %
    ACL to nonaccrual loans, excluding guaranteed(1)     168 %     190 %     514 %     130 %     465 %
    ACL to loans     1.07 %     1.12 %     1.02 %     0.95 %     0.97 %
    ACL to loans, excluding guaranteed(1)     1.41 %     1.48 %     1.37 %     1.32 %     1.38 %
                         
    Book Value                    
    Stockholders’ Equity   $ 146,616     $ 140,700     $ 116,383     $ 110,945     $ 102,566  
    Common shares outstanding     14,271       14,252       13,067       13,061       12,824  
    Book value per common share   $ 10.27     $ 9.87     $ 8.91     $ 8.49     $ 8.00  
    Employees – FTE     175       169       159       155       150  
    GBank Financial Holdings Inc.
    Reconciliation of Non-GAAP Financial Measures
    (Unaudited)
                         
        Three Months Ended
    ($’s in 000, except per share data)   Mar 31, 2025   Dec 31, 2024   Sep 30, 2024   Jun 30, 2024   Mar 31, 2024
                         
    Net Revenue(3)                    
    Net Interest Income   $ 11,894     $ 11,789     $ 12,259     $ 11,348     $ 10,802  
    Non-Interest Income     5,463       5,764       3,902       4,166       2,405  
    Net Revenue   $ 17,357     $ 17,553     $ 16,161     $ 15,514     $ 13,207  
                         
    Guaranteed Loans as a Percent of Loans(4)                    
    SBA and USDA Guaranteed Loans   $ 204,239     $ 201,267     $ 203,027     $ 215,382     $ 218,619  
    Loans, Net of Deferred Fees and Costs     843,365       815,958       780,999       772,857       733,589  
    Guaranteed Loans as a % of Loans     24.2 %     24.7 %     26.0 %     27.9 %     29.8 %
                         
    Non-performing assets, excluding guaranteed, to total assets(4)                    
    Non-performing assets   $ 20,373     $ 14,168     $ 5,408     $ 7,612     $ 6,129  
    Less: SBA and USDA guaranteed portions of non-performing assets     14,687       9,321       3,838       5,396       4,572  
    Non-performing assets, excluding guaranteed portions     5,686       4,847       1,570       2,216       1,557  
    Total assets     1,190,012       1,122,364       1,048,002       1,009,354       963,450  
    Non-performing assets, excluding guaranteed, to total assets     0.48 %     0.43 %     0.15 %     0.22 %     0.16 %
                         
    Allowance for credit losses (ACL) to nonaccrual loans, excluding guaranteed(4)                
    Nonaccrual loans   $ 19,220     $ 14,128     $ 5,381     $ 6,470     $ 6,096  
    Less: SBA and USDA guaranteed portions of nonaccrual loans     13,859       9,321       3,838       833       4,572  
    Nonaccrual loans, excluding guaranteed portions     5,361       4,807       1,543       5,637       1,524  
    ACL to nonaccrual loans, excluding guaranteed     168 %     190 %     514 %     130 %     465 %
                         
    ACL to loans, excluding guaranteed(4)                    
    Loans, net of deferred fees and costs   $ 843,365     $ 815,958     $ 780,999     $ 772,857     $ 733,589  
    Less: SBA and USDA guaranteed portions of loans     204,239       201,267       203,027       215,382       218,619  
    Loans, excluding guaranteed     639,126       614,691       577,972       557,475       514,970  
    ACL to loans, excluding guaranteed     1.41 %     1.48 %     1.37 %     1.32 %     1.38 %
      (1)  See Reconciliation of Non-GAAP Financial Measures      
      (2) Ratios are annualized on an actual/actual basis          
      (3) We believe this non-GAAP measurement presents trends in income generation of the Company.     
      (4) We believe these non-GAAP measurements provide useful metrics regarding the at-risk assets of the Company.      

    The MIL Network –

  • MIL-OSI USA: Fischer Questions Michael Cadenazzi, Jr., Vice Admiral Scott Pappano at Senate Armed Services Committee Confirmation Hearing

    US Senate News:

    Source: United States Senator for Nebraska Deb Fischer
    Today, U.S. Senator Deb Fischer (R-Neb.), a senior member of the Senate Armed Services Committee, questioned the nominees for Assistant Secretary of Defense for Industrial Base Policy, Michael Cadenazzi, Jr., and Principal Deputy Administrator National Nuclear Security Administration, Vice Admiral Scott Pappano, USN, at their confirmation hearing.
    During the hearing, Fischer asked VADM Pappano about ensuring that the National Nuclear Security Administration (NNSA) weapons production remains on schedule. She emphasized the importance of modernized facilities capable of processing the materials necessary for nuclear weapons production.
    Fischer asked Mr. Cadenazzi about working with NNSA and the Department of Energy to grow our skilled manufacturing workforce and address broader industrial base concerns. She also asked about increasing munitions production and the Department of Defense’s National Defense Industrial Strategy.
    Click the image above to watch a video of Fischer’s questioning
    Click here to download audio
    Click here to download video
    Fischer Questions Nominees:Fischer: Thank you, Mr. Chairman, and thank you Ranking Member Reed. Thank you, gentlemen, for being here today and for your willingness to continue to serve this country. Admiral, thank you for coming in to visit. I appreciated you taking time in the conversation that we had. If confirmed, can you tell me how you will work to ensure that NNSA weapons production remains on schedule?
    VADM Pappano: Thank you, Senator. Yes, if confirmed, obviously, the production—shifting to production—is a key element for us to modernize the nuclear weapons stockpile right now. We’ve done a very good job of stockpile management in a science-based manner and kept up over the years. However, now, we have to transition that from the science-based stockpile management to actual production facilities and make sure we modernize the facilities, making sure that we don’t lose the science in the process and continue that going forward. I’ll look to do that by looking across at how we are modernizing our facilities right now and try to bring as much advanced manufacturing capabilities we can. As we look at the Manhattan Project era buildings that we’re dealing with: a lot of these facilities, how do we—as we modernize those—bring in modern technology so that we can be much more effective going forward in our production of nuclear weapons stockpile.
    Fischer: Thank you. We talked a little bit about NNSA’s 25-year Enterprise Blueprint, a roadmap to modernize the infrastructure there, and some of which, as you brought up in our discussion, dates back to the Manhattan Project. We won’t be able to produce the weapons that we need without the facilities needed to process materials like uranium, lithium, high explosives that go in those nuclear weapons. So, anything we can do as you look at that modernization process, please let us know.Fischer: Mr. Cadenazzi, both the Department of Defense and the NNSA have similar challenges with their industrial bases, and I believe that we have an opportunity now to address underlying issues in a way that strengthens both the nuclear industrial base and the defense industrial base. If confirmed, do you commit to working closely with NNSA and the Department of Energy on policies – like increasing our skilled manufacturing workforce – that would impact both of those industrial bases?
    Mr. Cadenazzi: Senator, appreciate the question and the significance of it, particularly in light of the workforce issues and access to materials that we’re facing across the industrial base. These are major challenges that both the NNSA and the broader defense industry face and are dealing with. And if confirmed, I’m thrilled to have the opportunity to speak to you about how and where the Industrial Base Policy office and I might be able to focus.
    Fischer: Great. What we’ve seen happen in the Ukraine war has shown us that militaries in modern conflicts, they expend munitions at a much faster pace than we ever expected before. And our stockpiles must be adjusted to account for this, and we must expend our munitions production capacity. We have to expand that. We’ve taken some steps to address it in recent years, and we have the opportunity to make those generational investments through the reconciliation process. In your opening statement, Sir, you said that production must be scaled now before conflict starts. I agree with that. If confirmed, what steps would you take to accomplish that goal?
    Mr. Cadenazzi: Appreciate the question again, Senator, the issue of munitions production is the top of the priority list, and something I’ve discussed with multiple Senators on this committee. I’m excited to work with the committee, if confirmed, on this topic. There are a couple of major things that I think will drive this. One is predictable and stable defense budget and program spend. So, the more we can stabilize that, the more industry will be able to align around it. A better understanding in industry of what the expectations for surge capacity are will make it clear what the potential opportunities are for them, and the level of capital required to increase facilities and workforce. That’s a major opportunity for the Department to articulate what would be a big, hairy, audacious goal in business school terms. And to go ahead and say, “we need a lot more capability from you, and we need to agree then on the investment required to meet that point.” We need to scale the workforce as well. There are many initiatives underway to improve workforce capabilities across the country. We need to grow those and take advantage of small businesses as well. If confirmed, these are all exciting opportunities for us to help address what is an obvious and well reported gap on this issue.
    Fischer: Are you familiar with the Department’s National Defense Industrial Strategy?
    Mr. Cadenazzi: I am, Senator, yes.
    Fischer: Do you have any concerns with that strategy or think that there are gaps there that still need to be addressed?
    Mr. Cadenazzi: Senator, I think the strategy is solid given the expectations of the previous administration and the goals they were looking to achieve. I’ve reviewed the external, open-source material for that and the associated implementation plan. If confirmed, I’m eager to work with the Industrial Base Policy office, the administration, and the committees to understand what changes we believe are necessary. I’m happy to work with you on that and to make sure that we tune that to meet the current needs of the moment, particularly in light of the changing requirements of the new administration.

    MIL OSI USA News –

  • MIL-OSI: Sound Financial Bancorp, Inc. Q1 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    SEATTLE, April 29, 2025 (GLOBE NEWSWIRE) — Sound Financial Bancorp, Inc. (the “Company”) (Nasdaq: SFBC), the holding company for Sound Community Bank (the “Bank”), today reported net income of $1.2 million for the quarter ended March 31, 2025, or $0.45 diluted earnings per share, as compared to net income of $1.9 million, or $0.74 diluted earnings per share, for the quarter ended December 31, 2024, and $770 thousand, or $0.30 diluted earnings per share, for the quarter ended March 31, 2024. The Company also announced today that its Board of Directors declared a cash dividend on the Company’s common stock of $0.19 per share, payable on May 23, 2025 to stockholders of record as of the close of business on May 9, 2025.

    Comments from the President / Chief Executive Officer and Chief Financial Officer

    “Despite ongoing economic uncertainty, we remained focused on lowering our cost of deposits and originating new loans at higher rates, which contributed to a 12-basis point improvement in our net interest margin compared to the prior quarter. This reflects the team’s strong efforts to build full banking relationships by addressing both the lending and deposit needs of our consumer and business clients,” remarked Laurie Stewart, President and Chief Executive Officer.

    “We continue to prioritize expense management, even though expenses increased compared to the previous quarter. The quarter-over-quarter increase was largely due to typical year-end accrual adjustments and annual expenses that are recognized in the first quarter. However, when compared to the first quarter of 2024, we have seen reductions in combined salaries and benefits, and operational expenses, thanks to our investments in technology. We also expect the year-over-year growth in data processing costs to moderate as the year progresses,” explained Wes Ochs, Executive Vice President and Chief Financial Officer.

    Mr. Ochs continued, “While we did see an increase in nonperforming loans this quarter mainly due to two specific credits, one of which has since been repaid, we have not observed broader signs of stress in the loan portfolio. Importantly, we also successfully exited a $17 million loan that had been rated as special mention, which contributed to the decline in overall loan balances. Notably, 83% of our nonperforming loans are tied to just four loans, each with its own unique circumstances. These loans are well-secured, and we are actively working toward resolutions in the near-term.”

     

    Q1 2025 Financial Performance
    Total assets increased $75.6 million or 7.6% to $1.07 billion at March 31, 2025, from $993.6 million at December 31, 2024, and decreased $17.5 million or 1.6% from $1.09 billion at March 31, 2024.     Net interest income decreased $149 thousand or 1.8% to $8.1 million for the quarter ended March 31, 2025, from $8.2 million for the quarter ended December 31, 2024, and increased $611 thousand or 8.2% from $7.5 million for the quarter ended March 31, 2024.
           
    Loans held-for-portfolio decreased $13.9 million or 1.5% to $886.2 million at March 31, 2025, compared to $900.2 million at December 31, 2024, and decreased $11.7 million or 1.3% from $897.9 million at March 31, 2024.      Net interest margin (“NIM”), annualized, was 3.25% for the quarter ended March 31, 2025, compared to 3.13% for the quarter ended December 31, 2024 and 2.95% for the quarter ended March 31, 2024.
           
    Total deposits increased $72.5 million or 8.7% to $910.3 million at March 31, 2025, from $837.8 million at December 31, 2024, and decreased $6.5 million or 0.7% from $916.9 million at March 31, 2024. Noninterest-bearing deposits decreased $5.8 million or 4.4% to $126.7 million at March 31, 2025 compared to $132.5 million at December 31, 2024, and decreased $2.0 million or 1.5% compared to $128.7 million at March 31, 2024.      A $203 thousand release of provision for credit losses was recorded for the quarter ended March 31, 2025, compared to a $14 thousand provision and a $33 thousand release of provision for credit losses for the quarters ended December 31, 2024 and March 31, 2024, respectively. At March 31, 2025, the allowance for credit losses on loans to total loans outstanding was 0.95%, compared to 0.94% at December 31, 2024 and 0.96% at March 31, 2024.
           
    The loans-to-deposits ratio was 98% at March 31, 2025, compared to 108% at December 31, 2024 and 98% at March 31, 2024.      Total noninterest income decreased $62 thousand or 5.3% to $1.1 million for the quarter ended March 31, 2025, compared to the quarter ended December 31, 2024, and was virtually unchanged compared to the quarter ended March 31, 2024.
           
    Total nonperforming loans increased $2.2 million or 28.9% to $9.7 million at March 31, 2025, from $7.5 million at December 31, 2024, and increased $600 thousand or 6.6% from $9.1 million at March 31, 2024. Nonperforming loans to total loans was 1.09% and the allowance for credit losses on loans to total nonperforming loans was 86.95% at March 31, 2025.      Total noninterest expense increased $856 thousand or 12.1% to $7.9 million for the quarter ended March 31, 2025, compared to the quarter ended December 31, 2024, and increased $258 thousand or 3.4% compared to the quarter ended March 31, 2024.
           
           The Bank continued to maintain capital levels in excess of regulatory requirements and was categorized as “well-capitalized” at March 31, 2025.

    Operating Results

    Net Interest Income after (Release of) Provision for Credit Losses

        For the Quarter Ended   Q1 2025 vs. Q4 2024   Q1 2025 vs. Q1 2024
        March 31,
    2025    		   December 31,
    2024    		   March 31,
    2024    		   Amount
    ($)    		   Percentage (%)   Amount
    ($)    		   Percentage (%)
        (Dollars in thousands, unaudited)
    Interest income   $ 13,706     $ 14,736   $ 13,760     $ (1,030 )   (7.0) %   $ (54 )   (0.4) %
    Interest expense     5,635       6,516     6,300       (881 )   (13.5) %     (665 )   (10.6) %
    Net interest income     8,071       8,220     7,460       (149 )   (1.8) %     611     8.2 %
    (Release of) provision for credit losses     (203 )     14     (33 )     (217 )   (1550.0) %     (170 )   515.2 %
    Net interest income after (release of) provision for credit losses     8,274       8,206     7,493       68     0.8 %     781     10.4 %
                                                       

    Q1 2025 vs Q4 2024

    The decrease in interest income from the prior quarter was primarily due to a lower average balance of loans, investments and interest-earning cash, an eight basis point decline in the average yield on loans, a 41 basis point decline in the average yield on interest-bearing cash, and a 57 basis point decline in the average yield on investments.

    Interest income on loans decreased $482 thousand, or 3.7%, to $12.6 million for the quarter ended March 31, 2025, compared to $13.1 million for the quarter ended December 31, 2024. The average balance of total loans was $896.8 million for the quarter ended March 31, 2025, down from $900.8 million for the quarter ended December 31, 2024. The decrease in the average balance of total loans was primarily due to declines in construction and land loans and one-to-four family loans, offset by growth in commercial and multifamily loans and home equity loans. The average balances for manufactured home loans, floating home loans, commercial business loans, and other consumer loans remained relatively flat from the fourth quarter of 2024. The average yield on total loans was 5.69% for the quarter ended March 31, 2025, down from 5.77% for the quarter ended December 31, 2024. The decline was primarily due to interest that was reversed on nonaccrual loans during the first quarter, as well as interest that had been recognized on those loans in the fourth quarter. This was partly offset by new loans being made at higher interest rates and some variable-rate loans adjusting upward. Interest income on investments was $108 thousand for the quarter ended March 31, 2025, compared to $132 thousand for the quarter ended December 31, 2024. Interest income on interest-bearing cash decreased $524 thousand to $1.0 million for the quarter ended March 31, 2025, compared to $1.5 million for the quarter ended December 31, 2024. This decrease was a result of both lower average yields and average balances during the quarter.

    The decrease in interest expense during the current quarter from the prior quarter was primarily the result of lower average balances and rates paid on all categories of interest-bearing deposits. The average cost of deposits was 2.37% for the quarter ended March 31, 2025, down from 2.58% for the quarter ended December 31, 2024 as higher costing deposits repriced lower due to market interest rate cuts beginning in September 2024. The average cost of FHLB advances was 4.25% for the quarter ended March 31, 2025, down from 4.31% for the quarter ended December 31, 2024.

    A release of provision for credit losses of $203 thousand was recorded for the quarter ended March 31, 2025, consisting of a release of provision for credit losses on loans of $85 thousand and a release of provision for credit losses on unfunded loan commitments of $118 thousand. This compared to a provision for credit losses of $14 thousand for the quarter ended December 31, 2024, consisting of a release of provision for credit losses on loans of $73 thousand and a provision for credit losses on unfunded loan commitments of $87 thousand. The decrease in the provision for credit losses for the quarter ended March 31, 2025 compared to the quarter ended December 31, 2024 resulted primarily from a smaller loan portfolio and a reduced balance of unfunded commitments, partially offset by an additional qualitative adjustment applied to certain loan segments, specifically consumer and construction loans, reflecting increased uncertainty in market conditions tied to the impact of tariffs and other external factors affecting our clients. Expected credit loss estimates consider various factors, including market conditions, borrower-specific information, projected delinquencies, and anticipated effects of economic trends on borrowers’ ability to repay.

    Q1 2025 vs Q1 2024

    Interest income on loans increased $355 thousand, or 2.9%, to $12.6 million for the quarter ended March 31, 2025, compared to $12.2 million for the quarter ended March 31, 2024. The average balance of total loans was $896.8 million for the quarter ended March 31, 2025, up from $895.4 million for the quarter ended March 31, 2024. The average yield on total loans was 5.69% for the quarter ended March 31, 2025, up from 5.49% for the quarter ended March 31, 2024. The increase in the average loan yield during the current quarter, compared to the same quarter in 2024, was primarily due to the origination of new loans at higher interest rates. Additionally, variable-rate loans resetting to higher rates contributed to the increase in average yield compared to the first quarter of 2024. Interest income on investments was $108 thousand for the quarter ended March 31, 2025, compared to $111 thousand for the quarter ended March 31, 2024. Interest income on interest-bearing cash decreased $406 thousand to $1.0 million for the quarter ended March 31, 2025, compared to $1.4 million for the quarter ended March 31, 2024. The decrease was a result of both a lower average yield and average balance.

    The decrease in interest expense during the current quarter from the same quarter a year ago was primarily the result of a $18.9 million decrease in the average balance of interest-bearing demand and NOW accounts, a $25.5 million decrease in the average balance of certificate accounts, and a $15.0 million decrease in the average balance of FHLB advances, as well as lower average rates paid on all categories of interest-bearing deposits; resulting from lower market interest rates generally. These average-balance decreases were partially offset by a $51.0 million increase in the average balance of savings and money market accounts. The average cost of deposits was 2.37% for the quarter ended March 31, 2025, down from 2.57% for the quarter ended March 31, 2024. The average cost of FHLB advances was 4.25% for the quarter ended March 31, 2025, down from 4.31% for the quarter ended March 31, 2024.

    A release of provision for credit losses of $203 thousand was recorded for the quarter ended March 31, 2025, consisting of a release of provision for credit losses on loans of $85 thousand and a release of provision for credit losses on unfunded loan commitments of $118 thousand. This compared to a release of provision for credit losses of $33 thousand for the quarter ended March 31, 2024, consisting of a release of provision for credit losses on loans of $106 thousand and a provision for credit losses on unfunded loan commitments of $73 thousand. The larger release recorded in the current quarter primarily reflected the factors discussed above.

    Noninterest Income

        For the Quarter Ended   Q1 2025 vs. Q4 2024   Q1 2025 vs. Q1 2024
        March 31,
    2025    		   December 31,
    2024    		   March 31,
    2024    		   Amount
    ($)    		   Percentage (%)   Amount
    ($)    		   Percentage (%)
        (Dollars in thousands, unaudited)
    Service charges and fee income   $ 684     $ 619   $ 612     $ 65     10.5 %   $ 72     11.8 %
    Earnings on bank-owned life insurance (“BOLI”)     195       127     177       68     53.5 %     18     10.2 %
    Mortgage servicing income     269       277     282       (8 )   (2.9) %     (13 )   (4.6) %
    Fair value adjustment on mortgage servicing rights     (99 )     77     (65 )     (176 )   (228.6) %     (34 )   52.3 %
    Net gain on sale of loans     49       53     90       (4 )   (7.5) %     (41 )   (45.6) %
    Other income     —       7     —       (7 )   (100.0) %     —     100.0 %
    Total noninterest income   $ 1,098     $ 1,160   $ 1,096     $ (62 )   (5.3) %   $ 2     0.2 %
     

    Q1 2025 vs Q4 2024

    The decrease in noninterest income during the current quarter compared to the quarter ended December 31, 2024 was primarily related to

    • a $176 thousand downward adjustment in fair value of mortgage servicing rights due to a smaller servicing portfolio, partially offset by :
    • an increase of $68 thousand in earnings from BOLI primarily due to the strategic decision to surrender and exchange existing policies into higher yielding policies in the first quarter, offset by fluctuations in financial markets which decreased the values of policies; and
    • a $65 thousand increase in service charges and fee income due to a volume incentive paid by Mastercard in the first quarter of 2025 and higher interchange income.

    Loans sold during the quarter ended March 31, 2025, totaled $2.0 million, compared to $3.5 million and $4.2 million of loans sold during the quarters ended December 31, 2024 and March 31, 2024, respectively.

    Q1 2025 vs Q1 2024

    The increase in noninterest income during the current quarter compared to the quarter ended March 31, 2024 was primarily due to

    • a $72 thousand increase in service charges and fee income primarily due to the reasons noted above, and
    • an $18 thousand increase in earnings from BOLI primarily due to the strategic decision to surrender and exchange existing policies into higher yielding policies in the first quarter, offset by fluctuations in financial markets, which reduced the values of policies. The increases in service charges and fee income and in earnings from BOLI were partially offset by
    • a $13 thousand decrease in mortgage servicing income as a result of the portfolio paying down at a faster rate than originations replace repayments;
    • a $34 thousand decrease in the fair value adjustment on mortgage servicing rights due to a smaller servicing portfolio; and
    • a $41 thousand decrease in net gain on sale of loans due to fewer loans sold.

    Noninterest Expense

        For the Quarter Ended   Q1 2025 vs. Q4 2024   Q1 2025 vs. Q1 2024
        March 31,
    2025    		   December 31,
    2024    		   March 31,
    2024    		   Amount
    ($)    		   Percentage (%)   Amount
    ($)    		   Percentage (%)
        (Dollars in thousands, unaudited)
    Salaries and benefits   $ 4,595   $ 3,920     $ 4,543   $ 675   17.2 %   $ 52     1.1 %
    Operations     1,365     1,329       1,457     36   2.7 %     (92 )   (6.3) %
    Regulatory assessments     221     189       189     32   16.9 %     32     16.9 %
    Occupancy     437     409       444     28   6.8 %     (7 )   (1.6) %
    Data processing     1,293     1,232       1,017     61   5.0 %     276     27.1 %
    Net loss (gain) on OREO and repossessed assets     3     (21 )     6     24   (114.3) %     (3 )   (50.0) %
    Total noninterest expense   $ 7,914   $ 7,058     $ 7,656   $ 856   12.1 %   $ 258     3.4 %
     

    Q1 2025 vs Q4 2024

    The increase in noninterest expense during the current quarter from the quarter ended December 31, 2024 was primarily a result of:

    • a $675 thousand increase in salaries and benefits related to higher salaries expense, partially due to accrual reversals in the fourth quarter 2024, along with an annual deferred compensation contribution for key executives made in the first quarter of each year, higher 401(k) contributions, and higher payroll taxes related to annual bonus payments;
    • a $32 thousand increase in regulatory assessments due to a higher estimated accrual for exam costs;
    • a $28 thousand increase in occupancy due to higher annual property charges and maintenance fees recognized in the first quarter;
    • a $61 thousand increase in data processing due to higher vendor fees associated with annual subscription renewals; and
    • a $24 thousand increase in OREO and repossessed assets due to the addition of a new property in the first quarter of 2025 and the absence of property sales in the prior quarter.

    Q1 2025 vs Q1 2024

    The increase in noninterest expense during the current quarter from the quarter ended March 31, 2024 was primarily a result of:

    • a $276 thousand increase in data processing expenses due to various project implementations that began amortizing in the third quarter of 2024 and the reimbursement of expenses by a software vendor in the first quarter of 2024;
    • a $32 thousand increase in regulatory assessment expenses due to a higher estimated accrual for exam costs.

    These increases were partially offset by a $92 thousand decrease in operations expense, primarily due to the recognition of annual fee reimbursements from Mastercard beginning in the first quarter of 2025 and lower expenses across various accounts resulting from ongoing cost saving initiatives and process improvements.

    Balance Sheet Review, Capital Management and Credit Quality

    Assets at March 31, 2025 totaled $1.07 billion, up from $993.6 million at December 31, 2024 and down from $1.09 billion at March 31, 2024. The increase in total assets from December 31, 2024 was primarily due to an increase in cash and cash equivalents, partially offset by a lower balance of loans held-for-portfolio. The decrease from one year ago was primarily a result of lower balances of cash and cash equivalents and loans held-for-portfolio.

    Cash and cash equivalents increased $87.9 million, or 201.3%, to $131.5 million at March 31, 2025, compared to $43.6 million at December 31, 2024, and decreased $6.5 million, or 4.7%, from $138.0 million at March 31, 2024. The increased cash and cash equivalents from the prior quarter-end was primarily due to the strategic decision to sell reciprocal deposits at the end of 2024, which reduced our cash balances. These reciprocal deposits returned to our balance sheet in the first quarter of 2025.

    Investment securities decreased $110 thousand, or 1.1%, to $9.8 million at March 31, 2025, compared to $9.9 million at December 31, 2024, and decreased $462 thousand, or 4.5%, from $10.3 million at March 31, 2024, as pay-offs and paydowns of investments exceeded new purchases. Held-to-maturity securities totaled $2.1 million at both March 31, 2025 and December 31, 2024, and totaled $2.2 million at March 31, 2024. Available-for-sale securities totaled $7.7 million at March 31, 2025, compared to $7.8 million at December 31, 2024 and $8.1 million at March 31, 2024.

    Loans held-for-portfolio were $886.2 million at March 31, 2025, compared to $900.2 million at December 31, 2024 and $897.9 million at March 31, 2024. The decrease from both prior dates was primarily due to the payoff during the first quarter of 2025 of one $17.0 million loan that was risk rated special mention.

    Nonperforming assets (“NPAs”), which are comprised of nonaccrual loans (including nonperforming modified loans), other real estate owned (“OREO”) and other repossessed assets, increased $2.2 million, or 29.4%, to $9.7 million at March 31, 2025, from $7.5 million at December 31, 2024 and decreased $49 thousand, or 0.5%, from $9.7 million at March 31, 2024. The increase in NPAs from December 31, 2024 was primarily due to the addition of six loans totaling $2.4 million to nonaccrual status, including two commercial real estate loans of $1.1 million and $988 thousand. The increase also included $41 thousand of other real estate owned properties. These additions were partially offset by $207 thousand in regular loan payments. Subsequent to quarter-end, the $988 thousand commercial real estate loan added during the quarter was paid-off. The decrease in NPAs from one year ago was primarily due to payoffs totaling $2.1 million, the return of $522 thousand of loans to accrual status, the sale of two other real estate owned properties for $690 thousand, and regular loan payments. These decreases were partially offset by the placement of an additional $3.6 million of loans on nonaccrual status, which included the two commercial real estate loans noted above.

    NPAs to total assets were 0.91%, 0.75% and 0.90% at March 31, 2025, December 31, 2024 and March 31, 2024, respectively. The allowance for credit losses on loans to total loans outstanding was 0.95% at March 31, 2025, compared to 0.94% at December 31, 2024 and 0.96% at March 31, 2024. Net loan charge-offs for the first quarter of 2025 totaled $21 thousand, compared to $13 thousand for the fourth quarter of 2024, and $56 thousand for the first quarter of 2024.

    The following table summarizes our NPAs at the dates indicated (dollars in thousands):

      March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024
    Nonperforming Loans:                  
    One-to-four family $ 762     $ 537     $ 745     $ 822     $ 835  
    Home equity loans   368       298       338       342       83  
    Commercial and multifamily   5,627       3,734       4,719       5,161       4,747  
    Construction and land   22       24       25       28       29  
    Manufactured homes   501       521       230       136       166  
    Floating homes   2,363       2,363       2,377       2,417       3,192  
    Commercial business   —       11       23       —       —  
    Other consumer   10       3       32       3       1  
    Total nonperforming loans   9,653       7,491       8,489       8,909       9,053  
    OREO and Other Repossessed Assets:                  
    Commercial and multifamily   —       —       —       —       575  
    Manufactured homes   41       —       115       115       115  
    Total OREO and repossessed assets   41       —       115       115       690  
    Total NPAs $ 9,694     $ 7,491     $ 8,604     $ 9,024     $ 9,743  
                       
    Percentage of Nonperforming Loans:                  
    One-to-four family   7.9 %     7.3 %     8.7 %     9.1 %     8.5 %
    Home equity loans   3.8       4.0       3.9       3.8       0.9  
    Commercial and multifamily   58.0       49.8       54.8       57.2       48.7  
    Construction and land   0.2       0.3       0.3       0.3       0.3  
    Manufactured homes   5.2       7.0       2.7       1.5       1.7  
    Floating homes   24.4       31.5       27.6       26.8       32.8  
    Commercial business   —       0.1       0.3       —       —  
    Other consumer   0.1       —       0.4       —       —  
    Total nonperforming loans   99.6       100.0       98.7       98.7       92.9  
    Percentage of OREO and Other Repossessed Assets:                  
    Commercial and multifamily   —       —       —       —       5.9  
    Manufactured homes   0.4       —       1.3       1.3       1.2  
    Total OREO and repossessed assets   0.4       —       1.3       1.3       7.1  
    Total NPAs   100.0 %     100.0 %     100.0 %     100.0 %     100.0 %
     

    The following table summarizes the allowance for credit losses at the dates and for the periods indicated (dollars in thousands, unaudited):

      At or For the Quarter Ended:
      March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024
    Allowance for Credit Losses on Loans                  
    Balance at beginning of period $ 8,499     $ 8,585     $ 8,493     $ 8,598     $ 8,760  
    (Release of) provision for credit losses during the period   (85 )     (73 )     106       (88 )     (106 )
    Net charge-offs during the period   (21 )     (13 )     (14 )     (17 )     (56 )
    Balance at end of period $ 8,393     $ 8,499     $ 8,585     $ 8,493     $ 8,598  
    Allowance for Credit Losses on Unfunded Loan Commitments                  
    Balance at beginning of period $ 234     $ 147     $ 245     $ 266     $ 193  
    Provision for (release of) provision for credit losses during the period   (118 )     87       (98 )     (21 )     73  
    Balance at end of period   116       234       147       245       266  
    Allowance for Credit Losses $ 8,509     $ 8,733     $ 8,732     $ 8,738     $ 8,864  
    Allowance for credit losses on loans to total loans   0.95 %     0.94 %     0.95 %     0.96 %     0.96 %
    Allowance for credit losses to total loans   0.96 %     0.97 %     0.97 %     0.98 %     0.99 %
    Allowance for credit losses on loans to total nonperforming loans   86.95 %     113.46 %     101.13 %     95.33 %     94.97 %
    Allowance for credit losses to total nonperforming loans   88.15 %     116.58 %     102.86 %     98.08 %     97.91 %
                                           

    Total deposits increased $72.5 million, or 8.7%, to $910.3 million at March 31, 2025, from $837.8 million at December 31, 2024 and decreased $6.5 million, or 0.7%, from $916.9 million at March 31, 2024. The increase in total deposits compared to the prior quarter-end was primarily a result of the movement of reciprocal deposits off balance sheet for strategic objectives at year-end, followed by the return of those deposits to our balance sheet in the first quarter of 2025, and a decrease in one high cost money market deposit relationship as part of our strategic decision to decrease our overall cost of funds. Noninterest-bearing deposits decreased $5.8 million, or 4.4%, to $126.7 million at March 31, 2025, compared to $132.5 million at December 31, 2024 and decreased $2.0 million, or 1.5%, from $128.7 million at March 31, 2024. Noninterest-bearing deposits represented 13.9%, 15.8% and 14.0% of total deposits at March 31, 2025, December 31, 2024 and March 31, 2024, respectively.

    FHLB advances totaled $25.0 million at March 31, 2025, compared to $25.0 million at both December 31, 2024, and March 31, 2024. FHLB advances are primarily used to support organic loan growth and to maintain liquidity ratios in line with our asset/liability objectives. FHLB advances outstanding at March 31, 2025 had maturities ranging from early 2026 through early 2028. Subordinated notes, net totaled $11.8 million at both March 31, 2025 and December 31, 2024, and $11.7 million at March 31, 2024.

    Stockholders’ equity totaled $104.4 million at March 31, 2025, an increase of $765 thousand, or 0.7%, from $103.7 million at December 31, 2024, and an increase of $3.4 million, or 3.4%, from $101.0 million at March 31, 2024. The increase in stockholders’ equity from December 31, 2024 was primarily the result of $1.2 million of net income earned during the current quarter, $81 thousand in share-based compensation, and $21 thousand in common stock options exercised, partially offset by a $17 thousand increase in accumulated other comprehensive loss, net of tax and the payment of $487 thousand in cash dividends to the Company’s stockholders.

    Sound Financial Bancorp, Inc., a bank holding company, is the parent company of Sound Community Bank, which is headquartered in Seattle, Washington and has full-service branches in Seattle, Tacoma, Mountlake Terrace, Sequim, Port Angeles, Port Ludlow and University Place. Sound Community Bank is a Fannie Mae Approved Lender and Seller/Servicer with one loan production office located in the Madison Park neighborhood of Seattle. For more information, please visit www.soundcb.com.

    Forward-Looking Statements Disclaimer

    When used in this press release and in documents filed or furnished by Sound Financial Bancorp, Inc. (the “Company”) with the Securities and Exchange Commission (the “SEC”), in the Company’s other press releases or other public or stockholder communications, and in oral statements made with the approval of an authorized executive officer, the words or phrases “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” “intends” or similar expressions are intended to identify “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements, which are based on various underlying assumptions and expectations and are subject to risks, uncertainties and other unknown factors, may include projections of our future financial performance based on our growth strategies and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events and may turn out to be wrong because of inaccurate assumptions we might make, because of the factors listed below or because of other factors that we cannot foresee that could cause our actual results to be materially different from historical results or from any future results expressed or implied by such forward-looking statements. You are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date made.

    Factors which could cause actual results to differ materially, include, but are not limited to: adverse impacts to economic conditions in the Company’s local market areas, other markets where the Company has lending relationships, or other aspects of the Company’s business operations or financial markets, including, without limitation, as a result of employment levels, labor shortages and the effects of inflation or deflation, a recession or slowed economic growth, as well as supply chain disruptions; changes in the interest rate environment, including increases and decreases in the Board of Governors of the Federal Reserve System (the Federal Reserve) benchmark rate and the duration at which such interest rate levels are maintained, which could adversely affect our revenues and expenses, the values of our assets and obligations, and the availability and cost of capital and liquidity; the impact of inflation and the current and future monetary policies of the Federal Reserve in response thereto; the effects of any federal government shutdown; the impact of bank failures or adverse developments at other banks and related negative press about the banking industry in general on investor and depositor sentiment; changes in consumer spending, borrowing and savings habits; fluctuations in interest rates; the risks of lending and investing activities, including changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for credit losses; the Company’s ability to access cost-effective funding; fluctuations in real estate values and both residential and commercial real estate market conditions; demand for loans and deposits in the Company’s market area; secondary market conditions for loans;expectations regarding key growth initiatives and strategic priorities; environmental, social and governance goals and targets; results of examinations of the Company or the Bank by their regulators; increased competition; changes in management’s business strategies; legislative changes; changes in the regulatory and tax environments in which the Company operates; disruptions, security breaches, or other adverse events, failures or interruptions in, or attacks on, our information technology systems or on our third-party vendors; the potential for new or increased tariffs, trade restrictions, or geopolitical tensions that could affect economic activity or specific industry sectors; the effects of climate change, severe weather events, natural disasters, pandemics, epidemics and other public health crises, acts of war or terrorism, civil unrest and other external events on our business; and other factors described in the Company’s latest Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q and other documents filed with or furnished to the SEC, which are available at www.soundcb.com and on the SEC’s website at www.sec.gov. The risks inherent in these factors could cause the Company’s actual results to differ materially from those expressed in any forward-looking statements made by, or on behalf of, the Company and could negatively affect the Company’s operating and stock performance.

    The Company does not undertake—and specifically disclaims any obligation—to revise any forward-looking statement to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statement.

    CONSOLIDATED INCOME STATEMENTS
    (Dollars in thousands, unaudited)

        For the Quarter Ended
        March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024
    Interest income   $ 13,706     $ 14,736     $ 14,838   $ 14,039     $ 13,760  
    Interest expense     5,635       6,516       6,965     6,591       6,300  
    Net interest income     8,071       8,220       7,873     7,448       7,460  
    (Release of) provision for credit losses     (203 )     14       8     (109 )     (33 )
    Net interest income after (release of) provision for credit losses     8,274       8,206       7,865     7,557       7,493  
    Noninterest income:                    
    Service charges and fee income     684       619       628     761       612  
    Earnings on bank-owned life insurance     195       127       186     134       177  
    Mortgage servicing income     269       277       280     279       282  
    Fair value adjustment on mortgage servicing rights     (99 )     77       101     (116 )     (65 )
    Net gain on sale of loans     49       53       40     74       90  
    Other income     —       7       —     30       —  
    Total noninterest income     1,098       1,160       1,235     1,162       1,096  
    Noninterest expense:                    
    Salaries and benefits     4,595       3,920       4,469     4,658       4,543  
    Operations     1,365       1,329       1,540     1,569       1,457  
    Regulatory assessments     221       189       189     220       189  
    Occupancy     437       409       414     397       444  
    Data processing     1,293       1,232       1,067     910       1,017  
    Net (gain) loss on OREO and repossessed assets     3       (21 )     —     (17 )     6  
    Total noninterest expense     7,914       7,058       7,679     7,737       7,656  
    Income before provision for income taxes     1,458       2,308       1,421     982       933  
    Provision for income taxes     291       389       267     187       163  
    Net income   $ 1,167     $ 1,919     $ 1,154   $ 795     $ 770  
     

    CONSOLIDATED BALANCE SHEETS
    (Dollars in thousands, unaudited)

        March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024
    ASSETS                    
    Cash and cash equivalents   $ 131,494     $ 43,641     $ 148,930     $ 135,111     $ 137,977  
    Available-for-sale securities, at fair value     7,689       7,790       8,032       7,996       8,115  
    Held-to-maturity securities, at amortized cost     2,121       2,130       2,139       2,147       2,157  
    Loans held-for-sale     2,267       487       65       257       351  
    Loans held-for-portfolio     886,226       900,171       901,733       889,274       897,877  
    Allowance for credit losses – loans     (8,393 )     (8,499 )     (8,585 )     (8,493 )     (8,598 )
    Total loans held-for-portfolio, net     877,833       891,672       893,148       880,781       889,279  
    Accrued interest receivable     3,540       3,471       3,705       3,413       3,617  
    Bank-owned life insurance, net     22,685       22,490       22,363       22,172       22,037  
    Other real estate owned (“OREO”) and other repossessed assets, net     41       —       115       115       690  
    Mortgage servicing rights, at fair value     4,688       4,769       4,665       4,540       4,612  
    Federal Home Loan Bank (“FHLB”) stock, at cost     1,734       1,730       2,405       2,406       2,406  
    Premises and equipment, net     4,591       4,697       4,807       4,906       6,685  
    Right-of-use assets     3,546       3,725       3,779       4,020       4,259  
    Other assets     6,957       7,031       6,777       6,995       4,500  
    TOTAL ASSETS   $ 1,069,186     $ 993,633     $ 1,100,930     $ 1,074,859     $ 1,086,685  
    LIABILITIES                    
    Interest-bearing deposits   $ 783,660     $ 705,267     $ 800,480     $ 781,854     $ 788,217  
    Noninterest-bearing deposits     126,687       132,532       129,717       124,915       128,666  
    Total deposits     910,347       837,799       930,197       906,769       916,883  
    Borrowings     25,000       25,000       40,000       40,000       40,000  
    Accrued interest payable     586       765       908       760       719  
    Lease liabilities     3,828       4,013       4,079       4,328       4,576  
    Other liabilities     10,774       9,371       9,711       9,105       9,578  
    Advance payments from borrowers for taxes and insurance     2,450       1,260       2,047       812       2,209  
    Subordinated notes, net     11,770       11,759       11,749       11,738       11,728  
    TOTAL LIABILITIES     964,755       889,967       998,691       973,512       985,693  
    STOCKHOLDERS’ EQUITY:                    
    Common stock     25       25       25       25       25  
    Additional paid-in capital     28,515       28,413       28,296       28,198       28,110  
    Retained earnings     76,952       76,272       74,840       74,173       73,907  
    Accumulated other comprehensive loss, net of tax     (1,061 )     (1,044 )     (922 )     (1,049 )     (1,050 )
    TOTAL STOCKHOLDERS’ EQUITY     104,431       103,666       102,239       101,347       100,992  
    TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY   $ 1,069,186     $ 993,633     $ 1,100,930     $ 1,074,859     $ 1,086,685  
     

    KEY FINANCIAL RATIOS
    (unaudited)

        For the Quarter Ended
        March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024
    Annualized return on average assets   0.45 %   0.70 %   0.42 %   0.30 %   0.29 %
    Annualized return on average equity   4.53 %   7.40 %   4.50 %   3.17 %   3.06 %
    Annualized net interest margin(1)   3.25 %   3.13 %   2.98 %   2.92 %   2.95 %
    Annualized efficiency ratio(2)   86.31 %   75.25 %   84.31 %   89.86 %   89.48 %
    (1) Net interest income divided by average interest earning assets.
    (2) Noninterest expense divided by total revenue (net interest income and noninterest income).
       

    PER COMMON SHARE DATA
    (unaudited)

        At or For the Quarter Ended
        March 31, 2025   December 31, 2024   September 30, 2024   June 30, 2024   March 31, 2024
    Basic earnings per share   $ 0.45   $ 0.75   $ 0.45   $ 0.31   $ 0.30
    Diluted earnings per share   $ 0.45   $ 0.74   $ 0.45   $ 0.31   $ 0.30
    Weighted-average basic shares outstanding     2,554,265     2,547,210     2,544,233     2,540,538     2,539,213
    Weighted-average diluted shares outstanding     2,578,609     2,578,771     2,569,368     2,559,015     2,556,958
    Common shares outstanding at period-end     2,566,069     2,564,907     2,564,095     2,557,284     2,558,546
    Book value per share   $ 40.70   $ 40.42   $ 39.87   $ 39.63   $ 39.47
                                   

    AVERAGE BALANCE, AVERAGE YIELD EARNED, AND AVERAGE RATE PAID
    (Dollars in thousands, unaudited)

    The following table presents, for the periods indicated, the total dollar amount of interest income from average interest-earning assets and the resultant yields, as well as the interest expense on average interest-bearing liabilities, expressed both in dollars and rates. Income and yields on tax-exempt obligations have not been computed on a tax equivalent basis. All average balances are daily average balances. Nonaccrual loans have been included in the table as loans carrying a zero yield for the period they have been on nonaccrual (dollars in thousands).

      Three Months Ended
      March 31, 2025   December 31, 2024   March 31, 2024
      Average Outstanding Balance   Interest Earned/Paid   Yield/Rate   Average Outstanding Balance   Interest Earned/Paid   Yield/Rate   Average Outstanding Balance   Interest Earned/Paid   Yield/Rate
    Interest-Earning Assets:                                  
    Loans receivable $ 896,822     $ 12,588   5.69 %   $ 900,832     $ 13,070   5.77 %   $ 895,430     $ 12,233   5.49 %
    Interest-earning cash   95,999       1,010   4.27 %     130,412       1,534   4.68 %     107,361       1,416   5.30 %
    Investments   12,924       108   3.39 %     13,263       132   3.96 %     14,038       111   3.18 %
    Total interest-earning assets $ 1,005,745       13,706   5.53 %     1,044,507     $ 14,736   5.61 %   $ 1,016,829       13,760   5.44 %
    Interest-Bearing Liabilities:                                  
    Savings and money market accounts $ 335,419       2,058   2.49 %   $ 350,495       2,476   2.81 %   $ 284,455       1,866   2.64 %
    Demand and NOW accounts   140,905       108   0.31 %     144,470       128   0.35 %     159,762       141   0.35 %
    Certificate accounts   289,960       3,039   4.25 %     301,293       3,413   4.51 %     315,495       3,696   4.71 %
    Subordinated notes   11,766       168   5.79 %     11,756       168   5.69 %     11,724       168   5.76 %
    Borrowings   25,000       262   4.25 %     30,546       331   4.31 %     40,000       429   4.31 %
    Total interest-bearing liabilities $ 803,050       5,635   2.85 %   $ 838,560       6,516   3.09 %   $ 811,436       6,300   3.12 %
    Net interest income/spread     $ 8,071   2.68 %       $ 8,220   2.52 %       $ 7,460   2.32 %
    Net interest margin         3.25 %           3.13 %           2.95 %
                                       
    Ratio of interest-earning assets to interest-bearing liabilities   125 %             125 %             125 %        
    Noninterest-bearing deposits $ 126,215             $ 130,476             $ 132,438          
    Total deposits   892,499     $ 5,205   2.37 %     926,734     $ 6,017   2.58 %     892,150     $ 5,703   2.57 %
    Total funding (1)   929,265       5,635   2.46 %     969,036       6,516   2.68 %     943,874       6,300   2.68 %
    (1) Total funding is the sum of average interest-bearing liabilities and average noninterest-bearing deposits. The cost of total funding is calculated as annualized total interest expense divided by average total funding.
       

    LOANS
    (Dollars in thousands, unaudited)

        March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024
    Real estate loans:                    
    One-to-four family   $ 262,457     $ 269,684     $ 271,702     $ 268,488     $ 279,213  
    Home equity     28,112       26,686       25,199       26,185       24,380  
    Commercial and multifamily     392,798       371,516       358,587       342,632       324,483  
    Construction and land     42,492       73,077       85,724       96,962       111,726  
    Total real estate loans     725,859       740,963       741,212       734,267       739,802  
    Consumer Loans:                    
    Manufactured homes     42,448       41,128       40,371       38,953       37,583  
    Floating homes     86,626       86,411       86,155       81,622       84,237  
    Other consumer     18,224       17,720       18,266       18,422       18,847  
    Total consumer loans     147,298       145,259       144,792       138,997       140,667  
    Commercial business loans     14,690       15,605       17,481       17,860       19,075  
    Total loans     887,847       901,827       903,485       891,124       899,544  
    Less:                    
    Premiums     688       718       736       754       808  
    Deferred fees, net     (2,309 )     (2,374 )     (2,488 )     (2,604 )     (2,475 )
    Allowance for credit losses – loans     (8,393 )     (8,499 )     (8,585 )     (8,493 )     (8,598 )
    Total loans held-for-portfolio, net   $ 877,833     $ 891,672     $ 893,148     $ 880,781     $ 889,279  
     

    DEPOSITS
    (Dollars in thousands, unaudited)

        March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024
    Noninterest-bearing demand   $ 126,687   $ 132,532   $ 129,717   $ 124,915   $ 128,666
    Interest-bearing demand     143,595     142,126     148,740     152,829     159,178
    Savings     63,533     61,252     61,455     63,368     65,723
    Money market     287,058     206,067     285,655     253,873     241,976
    Certificates     289,474     295,822     304,630     311,784     321,340
    Total deposits   $ 910,347   $ 837,799   $ 930,197   $ 906,769   $ 916,883
     

    CREDIT QUALITY DATA
    (Dollars in thousands, unaudited)

        At or For the Quarter Ended
        March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024
    Total nonperforming loans   $ 9,653     $ 7,491     $ 8,489     $ 8,909     $ 9,053  
    OREO and other repossessed assets     41       —       115       115       690  
    Total nonperforming assets   $ 9,694     $ 7,491     $ 8,604     $ 9,024     $ 9,743  
    Net charge-offs during the quarter   $ (21 )   $ (13 )   $ (14 )   $ (17 )   $ (56 )
    Provision for (release of) credit losses during the quarter     (203 )     14       8       (109 )     (33 )
    Allowance for credit losses – loans     8,393       8,499       8,585       8,493       8,598  
    Allowance for credit losses – loans to total loans     0.95 %     0.94 %     0.95 %     0.96 %     0.96 %
    Allowance for credit losses – loans to total nonperforming loans     86.95 %     113.46 %     101.13 %     95.33 %     94.97 %
    Nonperforming loans to total loans     1.09 %     0.83 %     0.94 %     1.00 %     1.01 %
    Nonperforming assets to total assets     0.91 %     0.75 %     0.78 %     0.84 %     0.90 %
                                             

    OTHER STATISTICS
    (Dollars in thousands, unaudited)

        At or For the Quarter Ended
        March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024
                         
    Total loans to total deposits     97.53 %     107.64 %     97.13 %     98.27 %     98.11 %
    Noninterest-bearing deposits to total deposits     13.92 %     15.82 %     13.95 %     13.78 %     14.03 %
                         
    Average total assets for the quarter   $ 1,051,135     $ 1,089,067     $ 1,095,404     $ 1,070,579     $ 1,062,036  
    Average total equity for the quarter   $ 104,543     $ 103,181     $ 102,059     $ 100,961     $ 101,292  
                                             

    Contact

    Financial:
    Wes Ochs  
    Executive Vice President/CFO
    (206) 436-8587  
       
    Media:
    Laurie Stewart  
    President/CEO
    (206) 436-1495  
       

    The MIL Network –

  • MIL-OSI Security: Jury Convicts Florida Man For Stealing $10.9 Million From Medicare

    Source: Office of United States Attorneys

    Tampa, FL – United States Attorney Gregory W. Kehoe announces that a federal jury has found Lino Mallari Gutierrez, a/k/a “Joe Gutierrez,” (age, Palm City) guilty of conspiracy to commit health care and wire fraud, conspiracy to violate the federal anti-kickback statute, five substantive counts of health care fraud, and four substantive counts of payment of kickbacks in connection with a heath care program. After the jury verdict, the Court remanded Gutierrez into custody. Gutierrez faces a maximum penalty of 20 years in federal prison. His sentencing hearing is scheduled for July 24, 2025.  Gutierrez was indicted on August 22, 2023.

    According to testimony and evidence presented at trial, Gutierrez and his co-conspirators, including Jonathan Rouffe, owned and operated two durable medical equipment (DME) companies that collectively billed Medicare more than $10.9 million for medically unnecessary DME, of which more than $5 million was paid to Gutierrez and his co-conspirators. Gutierrez and his co-conspirators paid kickbacks to marketing companies in exchange for signed doctors’ orders for unnecessary braces, which Gutierrez and the co-conspirators then used to bill Medicare. The marketing companies used call centers to solicit Medicare patients and telemedicine companies to procure prescriptions for unnecessary braces for these patients. Gutierrez and Rouffe concealed their role in the scheme by putting the DME companies in the names of straw owners.

    As part of the conspiracy to commit health care and wire fraud, Gutierrez also filed false records with his employer and a private regulatory organization to conceal his involvement in the DME companies. Gutierrez and Rouffe were in the process of establishing four more DME companies with additional straw owners—including Gutierrez’s mother and two of Gutierrez’s friends—when the U.S. Department of Health and Human Services – Office of Inspector General (HHS-OIG) and the Federal Bureau of Investigation (FBI) identified the DME fraud through a national operation, which began in the Middle District of Florida, and through which dozens of co-conspirators were identified, charged, and convicted. Prior to law enforcement action, Gutierrez and Rouffe had already taken multiple steps to use these additional DME companies to bill Medicare for additional fraudulent claims. After learning of law enforcement action, Gutierrez moved Medicare proceeds from his account into other bank accounts under his control.

    Rouffe previously pled guilty to conspiracy to commit health care fraud. He was sentenced to four years in prison for his role in the fraud scheme.

    This case was investigated by the U.S. Department of Health and Human Services – Office of Inspector General and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Jennifer Peresie and Trial Attorney Margaret Mortimer of the Department of Justice Criminal Division’s Fraud Section.

    MIL Security OSI –

  • MIL-OSI: ChampionX Reports First Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    THE WOODLANDS, Texas, April 29, 2025 (GLOBE NEWSWIRE) — ChampionX Corporation (NASDAQ: CHX) (“ChampionX” or the “Company”) today announced first quarter of 2025 results. Revenue was $864.5 million, net income attributable to ChampionX was $85.8 million, and adjusted EBITDA was $190.9 million. Income before income taxes margin was 12.1% and adjusted EBITDA margin was 22.1%. Cash from operating activities was $66.8 million and free cash flow was $38.6 million.

    CEO Commentary

    “The first quarter demonstrated the resilience of our ChampionX portfolio as we delivered strong adjusted EBITDA and adjusted EBITDA margin, and generated positive free cash flow. These results reflect the commitment of our ChampionX employees around the world who express daily an unwavering focus on delivering value-added solutions for our customers’ most important challenges. I am thankful and humbled to lead such a talented and dedicated team,” ChampionX’s President and Chief Executive Officer Sivasankaran “Soma” Somasundaram said.

    “During the first quarter of 2025, we generated revenue of $864 million, which decreased 5% sequentially, in line with our expectations, driven primarily by a typical seasonal decline in international operations. We generated net income attributable to ChampionX of $86 million, income before income taxes margin of 12.1%, and we delivered adjusted EBITDA of $191 million, representing a 22.1% adjusted EBITDA margin, our second-highest level as ChampionX, which speaks to the continued productivity and profitability focus of our team.

    “Cash flow from operating activities was $67 million during the first quarter, which represented 78% of net income attributable to ChampionX, and we generated free cash flow of $39 million, our 12th consecutive quarter of positive free cash flow. Our balance sheet and financial position remain strong, ending the first quarter with approximately $1.2 billion of liquidity, including $527 million of cash and $674 million of available capacity on our revolving credit facility.

    “As a leading global provider of production optimization solutions for the energy industry, ChampionX is uniquely well-positioned to help operators meet the objective of maximizing the value of their producing assets, particularly against the backdrop of the ongoing structural shift toward capital discipline and moderating capital spending in the upstream and midstream industries. As global oil production grows, our differentiated and resilient production-oriented portfolio drives our expectation of positive performance relative to general oil and gas market activity in 2025.

    “Amid recent changes in international trade policies, ChampionX is continuing to put its continuous improvement culture to work every day to successfully deliver products and technologies designed to improve our cost structure and drive efficiencies. We are leveraging our global and flexible supply chain footprint, long-standing supplier partnerships, pricing adjustments, and productivity initiatives to address tariff impacts, and we will continue to be there to serve our customers and deliver differentiated margin and free cash flow performance.”

    Agreement to be Acquired by SLB

    On April 2, 2024, SLB (NYSE: SLB) and ChampionX jointly announced a definitive Agreement and Plan of Merger (the “Merger Agreement”) for SLB to purchase ChampionX in an all-stock transaction. The transaction was unanimously approved by the ChampionX board of directors and the transaction received the approval of the ChampionX stockholders at a special meeting held on June 18, 2024. The transaction is subject to regulatory approvals and other customary closing conditions.

    ChampionX may continue to pay its regular quarterly cash dividends with customary record and payment dates, subject to certain limitations under the Merger Agreement. Given the pending acquisition of ChampionX by SLB, ChampionX has discontinued providing quarterly guidance and will not host a conference call or webcast to discuss its first quarter 2025 results.

    Production Chemical Technologies

    Production Chemical Technologies revenue in the first quarter of 2025 was $523.4 million, a decrease of $46.3 million, or 8%, sequentially, due primarily to seasonally lower international sales volumes.

    Segment operating profit was $82.2 million and adjusted segment EBITDA was $109.1 million. Segment operating profit margin was 15.7%, a sequential decrease of 248 basis points, and adjusted segment EBITDA margin was 20.8%, a sequential decrease of 259 basis points. The sequential decrease in segment operating profit margin and adjusted segment EBITDA margin was driven by lower sales volumes.

    Production & Automation Technologies

    Production & Automation Technologies revenue in the first quarter of 2025 was $264.4 million, a decrease of $5.2 million, or 2%, sequentially, due primarily to seasonally lower international sales volumes. Revenue from digital products was $57.8 million in the first quarter of 2025, a sequential decrease of 7%, driven by seasonally lower customer activity in North America.

    Segment operating profit was $37.6 million and adjusted segment EBITDA was $70.3 million. Segment operating profit margin was 14.2%, a sequential decrease of 27 basis points, and adjusted segment EBITDA margin was 26.6%, a sequential increase of 34 basis points. The decrease in segment operating profit margin and the increase in adjusted segment EBITDA margin was driven by lower sales volumes, offset somewhat by productivity improvements.

    Drilling Technologies

    Drilling Technologies revenue in the first quarter of 2025 was $50.5 million, a decrease of $1.4 million, or 3%, sequentially, driven primarily by lower North America sales volumes.

    Segment operating profit was $8.2 million and adjusted segment EBITDA was $10.2 million. Segment operating profit margin was 16.2%, compared to 20.6% in the prior quarter, and adjusted segment EBITDA margin was 20.3%, a decrease of 346 basis points, sequentially, due primarily to lower volumes.

    Reservoir Chemical Technologies

    Reservoir Chemical Technologies revenue in the first quarter of 2025 was $26.9 million, an increase of $5.0 million, or 23%, sequentially, driven by higher sales volumes in the U.S. and internationally.

    Segment operating profit was $5.5 million and adjusted segment EBITDA was $6.3 million. Segment operating profit margin was 20.5%, an increase of 1008 basis points, sequentially, and adjusted segment EBITDA margin was 23.6%, an increase of 647 basis points, sequentially. The increase in segment operating profit margin and adjusted segment EBITDA margin was driven by higher sales volumes together with a more favorable product mix.

    Other Business Highlights: Production Chemical Technologies and Reservoir Chemical Technologies

    • Awarded several first fill contracts for new conventional and unconventional fields in the Middle East region.
    • The North America Offshore production chemicals team was awarded the contract for an upcoming major capital project in the Gulf of America. The win was the culmination of years’ worth of work developing technical solutions to address the project’s most impactful challenges.
    • Commenced the initial deliveries of a significant volume of hydrate inhibitor for a major new FPSO, supporting an independent Australian operator.
    • Awarded program of competitive process water treatment applications in Canada after performing comprehensive technical assessments and value-added recommendations.
    • Completed our second RENEWIQ® (production and reservoir chemistry delivered through one trailer) joint offering for frac treating.
    • Reservoir group was awarded RENEWIQ work for the application of our production enhancement PROE completion chemistry to improve production over the life of wells. This program, combined with our one-site PCT service expertise, continues to bring differentiated solutions to operators in the Permian Basin.
    • Started the Unconventional Water team to support North America Land Water applications.
    • Recently won four different contracts after re-entering the US Land market with our H2S scavenger program.
    • Providing chemistries supporting a Canadian customer that is scheduled to commission and start up a new thermal asset in August 2025.

    Other Business Highlights: Production & Automation Technologies

    • Awarded a multi-year contract for production optimization software by a customer in Indonesia. 4000+ wells were successfully migrated in Q1 to our XSPOC® production optimization software, delivering data-driven insights to help the customer make informed production decisions across their field for all artificial lift systems.
    • Continue to see strong market adoption of new digital technologies as operators look for cost-effective, scalable monitoring solutions. More than 450 SmartSpin® wireless rod rotator sensors have been installed in the field and 120+ of the recently launched SMARTEN™® Lite rod pump controller have been deployed.
    • ChampionX’s RMSpumptools, in partnership with our UNBRIDLED® ESP Systems team, continues to grow sales of Automatic Diverter Valves (ADV) in the Permian for a major oil company. This key technology offers customers better sand and solids management in ESP systems and acts as a safety device for ESPs featuring a PMM motor.
    • Following two 6-month trial installations, RMSpumptools has received an order for its Y-chek systems by a Middle East national oil company. This success sets the direction for expansion of this Y-chek solution.
    • Completed the first 30+ well trial with a major producer in the Permian basin of the newly offered chemical injection assurance (CIA) software module on the modern, secure, and scalable Connexia® platform. The CIA software provides fully integrated chemical measurement and delivery data as well as control and optimization capabilities.
    • The SMARTEN XE ESP control system is a leader in the ESP control market. In Q1, ChampionX secured a new customer based on the advanced capabilities of the SMARTEN XE controller. The system’s ability to deliver enhanced performance across multi-pad projects was central to the customer’s decision. Since launch, ChampionX has installed hundreds of ESPs with SMARTEN XE controls, improving the operation of customers’ ESP systems.
    • Launched newly designed LOOKOUT® optimization services to provide real-time data with full ESP system control, advanced data visualization, integrated communications, and direct access to a team of multi-disciplined artificial lift experts. Powered by a modern digital backbone, LOOKOUT optimization services enable streamlined integration of diverse data sources and control solutions. LOOKOUT also leverages the full capabilities of the SMARTEN XE ESP control system, delivering advanced automation for ESP operations.
    • ChampionX’s Integrated Production Optimization (IPO) business continues to expand. A Permian operator, following a series of acquisitions, has expanded implementation of the IPO solution across newly acquired acreage – placing all new wells and ESP replacements under the IPO program. IPO has consistently delivered measurable production uplift, enhanced equipment reliability, stabilized reservoir pressure drawdown, and optimized chemical spend for the operator.
    • ChampionX’s Norris Sucker Rods has been awarded a large contract for the supply of approximately 35,000 sucker rods for a major customer in India. ChampionX won the contract based on superior reliability and in-country technical support, according to the customer.
    • Norris Rods received a large bulk order for sucker rods from a U.S. independent producer to assure supply for future operations and to mitigate the impact of tariffs. Norris Rods are manufactured from U.S. steel at the Company’s factory in Tulsa, Oklahoma.

    About Non-GAAP Measures

    In addition to financial results determined in accordance with generally accepted accounting principles in the United States (“GAAP”), this news release presents non-GAAP financial measures. Management believes that adjusted EBITDA, adjusted EBITDA margin, adjusted net income attributable to ChampionX and adjusted diluted earnings per share attributable to ChampionX, provide useful information to investors regarding the Company’s financial condition and results of operations because they reflect the core operating results of our businesses and help facilitate comparisons of operating performance across periods. In addition, free cash flow, free cash flow to adjusted EBITDA ratio, and free cash flow to revenue ratio are used by management to measure our ability to generate positive cash flow for debt reduction and to support our strategic objectives. Although management believes the aforementioned non-GAAP financial measures are good tools for internal use and the investment community in evaluating ChampionX’s overall financial performance, the foregoing non-GAAP financial measures should be considered in addition to, not as a substitute for or superior to, other measures of financial performance prepared in accordance with GAAP. A reconciliation of these non-GAAP measures to the most directly comparable GAAP measures is included in the accompanying financial tables.

    About ChampionX

    ChampionX is a global leader in chemistry solutions, artificial lift systems, and highly engineered equipment and technologies that help companies drill for and produce oil and gas safely, efficiently, and sustainably around the world. ChampionX’s expertise, innovative products, and digital technologies provide enhanced oil and gas production, transportation, and real-time emissions monitoring throughout the lifecycle of a well. To learn more about ChampionX, visit our website at www.ChampionX.com. 

    Forward-Looking Statements

    This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include statements relating to the proposed transaction between SLB and ChampionX, including statements regarding the benefits of the transaction and the anticipated timing of the transaction, and information regarding the businesses of SLB and ChampionX, including expectations regarding outlook and all underlying assumptions, SLB’s and ChampionX’s objectives, plans and strategies, information relating to operating trends in markets where SLB and ChampionX operate, statements that contain projections of results of operations or of financial condition and all other statements other than statements of historical fact that address activities, events or developments that SLB or ChampionX intends, expects, projects, believes or anticipates will or may occur in the future. Such statements are based on management’s beliefs and assumptions made based on information currently available to management. All statements in this communication, other than statements of historical fact, are forward-looking statements that may be identified by the use of the words “outlook,” “guidance,” “expects,” “believes,” “anticipates,” “should,” “estimates,” “intends,” “plans,” “seeks,” “targets,” “may,” “can,” “believe,” “predict,” “potential,” “projected,” “projections,” “precursor,” “forecast,” “ambition,” “goal,” “scheduled,” “think,” “could,” “would,” “will,” “see,” “likely,” and other similar expressions or variations, but not all forward-looking statements include such words. These forward-looking statements involve known and unknown risks and uncertainties, and which may cause SLB’s or ChampionX’s actual results and performance to be materially different from those expressed or implied in the forward-looking statements. Factors and risks that may impact future results and performance include, but are not limited to those factors and risks described in Part I, “Item 1. Business”, “Item 1A. Risk Factors”, and “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in SLB’s Annual Report on Form 10-K for the year ended December 31, 2024, as filed with the Securities and Exchange Commission (the “SEC”) on January 22, 2025 and Part 1, Item 1A, “Risk Factors” in ChampionX’s Annual Report on Form 10-K for the year ended December 31, 2024 filed with the SEC on February 5, 2025, and each of their respective, subsequent Current Reports on Form 8-K. These include, but are not limited to, and in each case as a possible result of the proposed transaction on each of SLB and ChampionX: the ultimate outcome of the proposed transaction between SLB and ChampionX, including the effect of the announcement of the proposed transaction; the ability to operate the SLB and ChampionX respective businesses, including business disruptions; difficulties in retaining and hiring key personnel and employees; the ability to maintain favorable business relationships with customers, suppliers and other business partners; the terms and timing of the proposed transaction; the occurrence of any event, change or other circumstance that could give rise to the termination of the proposed transaction; the anticipated or actual tax treatment of the proposed transaction; the ability to satisfy closing conditions to the completion of the proposed transaction (including the adoption of the merger agreement in respect of the proposed transaction by ChampionX stockholders); other risks related to the completion of the proposed transaction and actions related thereto; the ability of SLB and ChampionX to integrate the business successfully and to achieve anticipated synergies and value creation from the proposed transaction; changes in demand for SLB’s or ChampionX’s products and services; global market, political and economic conditions, including in the countries in which SLB and ChampionX operate; the ability to secure government regulatory approvals on the terms expected, at all or in a timely manner; the extent of growth of the oilfield services market generally, including for chemical solutions in production and midstream operations; the global macro-economic environment, including headwinds caused by inflation, rising interest rates, unfavorable currency exchange rates, and potential recessionary or depressionary conditions; the impact of shifts in prices or margins of the products that SLB or ChampionX sells or services that SLB or ChampionX provides, including due to a shift towards lower margin products or services; cyber-attacks, information security and data privacy; the impact of public health crises, such as pandemics (including COVID-19) and epidemics and any related company or government policies and actions to protect the health and safety of individuals or government policies or actions to maintain the functioning of national or global economies and markets; trends in crude oil and natural gas prices, including trends in chemical solutions across the oil and natural gas industries, that may affect the drilling and production activity, profitability and financial stability of SLB’s and ChampionX’s customers and therefore the demand for, and profitability of, their products and services; litigation and regulatory proceedings, including any proceedings that may be instituted against SLB or ChampionX related to the proposed transaction; failure to effectively and timely address energy transitions that could adversely affect the businesses of SLB or ChampionX, results of operations, and cash flows of SLB or ChampionX; and disruptions of SLB’s or ChampionX’s information technology systems.

    These risks, as well as other risks related to the proposed transaction, are included in the Form S-4 and proxy statement/prospectus that was filed with the SEC in connection with the proposed transaction. While the list of factors presented here is, and the list of factors presented in the registration statement on Form S-4 are, considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. For additional information about other factors that could cause actual results to differ materially from those described in the forward-looking statements, please refer to SLB’s and ChampionX’s respective periodic reports and other filings with the SEC, including the risk factors identified in SLB’s and ChampionX’s Annual Reports on Form 10-K, respectively, and SLB’s and ChampionX’s Quarterly Reports on Form 10-Q. The forward-looking statements included in this communication are made only as of the date hereof. Neither SLB nor ChampionX undertakes any obligation to update any forward-looking statements to reflect subsequent events or circumstances, except as required by law.

    Investor Contact: Byron Pope
    byron.pope@championx.com 
    281-602-0094

    Media Contact: John Breed
    john.breed@championx.com 
    281-403-5751

    CHAMPIONX CORPORATION
    CONDENSED CONSOLIDATED STATEMENTS OF INCOME
    (UNAUDITED)

      Three Months Ended
      March 31,   December 31,   March 31,
    (in thousands, except per share amounts)   2025       2024       2024  
    Revenue $ 864,464     $ 912,037     $ 922,141  
    Cost of goods and services   572,938       600,154       622,937  
    Gross profit   291,526       311,883       299,204  
    Costs and expenses:          
    Selling, general and administrative expense   177,045       184,722       172,414  
    (Gain) loss on sale-leaseback transaction   —       —       (29,883 )
    Interest expense, net   13,196       12,375       13,935  
    Foreign currency transaction losses (gains), net   1,504       1,697       55  
    Other expense (income), net   (4,631 )     (5,026 )     2,927  
    Income before income taxes   104,412       118,115       139,756  
    Provision for income taxes   15,384       33,204       26,596  
    Net income   89,028       84,911       113,160  
    Net income attributable to noncontrolling interest   3,231       2,145       237  
    Net income attributable to ChampionX $ 85,797     $ 82,766     $ 112,923  
               
    Earnings per share attributable to ChampionX:          
    Basic $ 0.45     $ 0.43     $ 0.59  
    Diluted $ 0.44     $ 0.43     $ 0.58  
               
    Weighted-average shares outstanding:          
    Basic   191,143       190,586       190,803  
    Diluted   193,709       193,487       193,964  
                           

    CHAMPIONX CORPORATION
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (UNAUDITED)

    (in thousands) March 31, 2025   December 31, 2024
    ASSETS      
    Current Assets:      
    Cash and cash equivalents $ 526,559     $ 507,681  
    Receivables, net   417,639       466,782  
    Inventories, net   497,183       496,831  
    Assets held for sale   241,791       14,001  
    Prepaid expenses and other current assets   85,617       78,602  
    Total current assets   1,768,789       1,563,897  
           
    Property, plant and equipment, net   729,931       755,422  
    Goodwill   619,505       718,944  
    Intangible assets, net   247,907       258,614  
    Other non-current assets   134,258       173,375  
    Total assets $ 3,500,390     $ 3,470,252  
           
    LIABILITIES AND EQUITY      
    Current Liabilities:      
    Current portion of long-term debt $ 6,203     $ 6,203  
    Accounts payable   498,335       455,531  
    Liabilities held for sale   61,415       —  
    Other current liabilities   218,943       324,138  
    Total current liabilities   784,896       785,872  
           
    Long-term debt   590,746       591,453  
    Other long-term liabilities   220,054       261,749  
    Stockholders’ equity:      
    ChampionX stockholders’ equity   1,916,726       1,846,437  
    Noncontrolling interest   (12,032 )     (15,259 )
    Total liabilities and equity $ 3,500,390     $ 3,470,252  
                   

    CHAMPIONX CORPORATION
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (UNAUDITED)

      Three Months Ended March 31,
    (in thousands)   2025       2024  
    Cash flows from operating activities:      
    Net income $ 89,028     $ 113,160  
    Depreciation and amortization   60,056       59,580  
    (Gain) loss on sale-leaseback transaction   —       (29,883 )
    Loss on Argentina Blue Chip Swap transaction   —       4,092  
    Deferred income taxes   (10,941 )     (12,903 )
    Loss (gain) on disposal of fixed assets   1,616       1,107  
    Receivables   13,937       62,915  
    Inventories   (25,569 )     (39,873 )
    Accounts payable   40,675       68,248  
    Other assets   (19,955 )     (602 )
    Leased assets   (6,665 )     (4,254 )
    Other operating items, net   (75,380 )     (48,079 )
    Net cash flows provided by operating activities   66,802       173,508  
           
    Cash flows from investing activities:      
    Capital expenditures   (31,250 )     (31,912 )
    Proceeds from sale of fixed assets   3,004       2,390  
    Proceeds from sale-leaseback transaction   —       44,292  
    Purchase of investments   —       (17,162 )
    Sale of investments   —       13,070  
    Acquisitions, net of cash acquired   —       (21,472 )
    Net cash used for investing activities   (28,246 )     (10,794 )
           
    Cash flows from financing activities:      
    Repayment of long-term debt   (1,551 )     (1,551 )
    Repurchases of common stock   —       (49,399 )
    Dividends paid   (18,110 )     (16,247 )
    Other   (488 )     3,104  
    Net cash used for financing activities   (20,149 )     (64,093 )
           
    Effect of exchange rate changes on cash and cash equivalents   471       (1,161 )
           
    Net increase in cash and cash equivalents   18,878       97,460  
    Cash and cash equivalents at beginning of period   507,681       288,557  
    Cash and cash equivalents at end of period $ 526,559     $ 386,017  
                   

    CHAMPIONX CORPORATION
    BUSINESS SEGMENT DATA
    (UNAUDITED)

      Three Months Ended
      March 31,   December 31,   March 31,
    (in thousands)   2025       2024       2024  
    Segment revenue:          
    Production Chemical Technologies $ 523,390     $ 569,662     $ 590,108  
    Production & Automation Technologies   264,377       269,568       252,614  
    Drilling Technologies   50,530       51,942       55,206  
    Reservoir Chemical Technologies   26,926       21,937       24,705  
    Corporate and other   (759 )     (1,072 )     (492 )
    Total revenue $ 864,464     $ 912,037     $ 922,141  
               
    Income before income taxes:        
    Segment operating profit (loss):          
    Production Chemical Technologies $ 82,172     $ 103,567     $ 87,832  
    Production & Automation Technologies   37,554       39,027       28,470  
    Drilling Technologies   8,174       10,703       44,402  
    Reservoir Chemical Technologies   5,529       2,294       3,746  
    Total segment operating profit   133,429       155,591       164,450  
    Corporate and other   15,821       25,101       10,759  
    Interest expense, net   13,196       12,375       13,935  
    Income before income taxes $ 104,412     $ 118,115     $ 139,756  
               
    Operating profit margin / income before income taxes margin:          
    Production Chemical Technologies   15.7 %     18.2 %     14.9 %
    Production & Automation Technologies   14.2 %     14.5 %     11.3 %
    Drilling Technologies   16.2 %     20.6 %     80.4 %
    Reservoir Chemical Technologies   20.5 %     10.5 %     15.2 %
    ChampionX Consolidated   12.1 %     13.0 %     15.2 %
               
    Adjusted EBITDA          
    Production Chemical Technologies $ 109,065     $ 133,475     $ 118,031  
    Production & Automation Technologies   70,269       70,739       60,340  
    Drilling Technologies   10,237       12,321       16,074  
    Reservoir Chemical Technologies   6,347       3,751       5,346  
    Corporate and other   (5,049 )     (8,021 )     (8,079 )
    Adjusted EBITDA $ 190,869     $ 212,265     $ 191,712  
               
    Adjusted EBITDA margin          
    Production Chemical Technologies   20.8 %     23.4 %     20.0 %
    Production & Automation Technologies   26.6 %     26.2 %     23.9 %
    Drilling Technologies   20.3 %     23.7 %     29.1 %
    Reservoir Chemical Technologies   23.6 %     17.1 %     21.6 %
    ChampionX Consolidated   22.1 %     23.3 %     20.8 %
                           

    CHAMPIONX CORPORATION
    RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES
    (UNAUDITED)

      Three Months Ended
      March 31,   December 31,   March 31,
    (in thousands)   2025       2024       2024  
    Net income attributable to ChampionX $ 85,797     $ 82,766     $ 112,923  
    Pre-tax adjustments:          
    (Gain) loss on sale leaseback transaction(1)   —       —       (29,883 )
    Russia sanctions compliance and impacts(2)   28       73       152  
    Restructuring and other related charges   1,059       2,704       1,709  
    Merger transaction costs(3)   10,232       14,434       —  
    Acquisition costs and related adjustments(4)   —       75       1,232  
    Intellectual property defense   382       158       779  
    Merger-related indemnification responsibility(5)   —       100       —  
    Tulsa, Oklahoma storm damage   —       —       305  
    Foreign currency transaction losses (gains), net   1,504       1,697       55  
    Loss on Argentina Blue Chip Swap transaction   —       —       4,092  
    Tax impact of adjustments   (2,971 )     (5,565 )     5,066  
    Adjusted net income attributable to ChampionX   96,031       96,442       96,430  
    Tax impact of adjustments   2,971       5,565       (5,066 )
    Net income attributable to noncontrolling interest   3,231       2,145       237  
    Depreciation and amortization   60,056       62,534       59,580  
    Provision for income taxes   15,384       33,204       26,596  
    Interest expense, net   13,196       12,375       13,935  
    Adjusted EBITDA $ 190,869     $ 212,265     $ 191,712  

    _______________________

    (1) Amount represents the gain on the sale and leaseback of certain buildings and land.
    (2) Includes charges incurred related to legal and professional fees to comply with, as well as additional foreign currency exchange losses associated with, the sanctions imposed in Russia.
    (3) Includes costs incurred in relation to the Merger Agreement with Schlumberger Limited, including third party legal and professional fees.
    (4) Includes costs incurred for the acquisition of businesses.
    (5) Expense related to the June 3, 2020 merger transaction with Ecolab in which we acquired the Chemical Technologies business.

      Three Months Ended
      March 31,   December 31,   March 31,
    (in thousands)   2025       2024       2024  
    Diluted earnings per share attributable to ChampionX $ 0.44     $ 0.43     $ 0.58  
    Per share adjustments:          
    (Gain) loss on sale leaseback transaction and disposal group   —       —       (0.15 )
    Russia sanctions compliance and impacts   —       —       —  
    Restructuring and other related charges   0.01       0.01       0.01  
    Merger transaction costs   0.05       0.07       —  
    Acquisition costs and related adjustments   —       —       0.01  
    Intellectual property defense   —       —       —  
    Merger-related indemnification responsibility   —       —       —  
    Tulsa, Oklahoma storm damage   —       —       —  
    Foreign currency transaction losses (gains), net   0.01       0.01       —  
    Loss on Argentina Blue Chip Swap transaction   —       —       0.02  
    Tax impact of adjustments   (0.01 )     (0.02 )     0.03  
    Adjusted diluted earnings per share attributable to ChampionX $ 0.50     $ 0.50     $ 0.50  
                           

    CHAMPIONX CORPORATION
    RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES BY SEGMENT
    (UNAUDITED)

      Three Months Ended
      March 31,   December 31,   March 31,
    (in thousands)   2025       2024       2024  
    Production Chemical Technologies          
    Segment operating profit $ 82,172     $ 103,567     $ 87,832  
    Non-GAAP adjustments   1,658       2,251       3,933  
    Depreciation and amortization   25,235       27,657       26,266  
    Segment adjusted EBITDA $ 109,065     $ 133,475     $ 118,031  
               
    Production & Automation Technologies          
    Segment operating profit $ 37,554     $ 39,027     $ 28,470  
    Non-GAAP adjustments   764       75       2,076  
    Depreciation and amortization   31,951       31,637       29,794  
    Segment adjusted EBITDA $ 70,269     $ 70,739     $ 60,340  
               
    Drilling Technologies          
    Segment operating profit $ 8,174     $ 10,703     $ 44,402  
    Non-GAAP adjustments   766       306       (29,883 )
    Depreciation and amortization   1,297       1,312       1,555  
    Segment adjusted EBITDA $ 10,237     $ 12,321     $ 16,074  
               
    Reservoir Chemical Technologies          
    Segment operating profit $ 5,529     $ 2,294     $ 3,746  
    Non-GAAP adjustments   (278 )     39       16  
    Depreciation and amortization   1,096       1,418       1,584  
    Segment adjusted EBITDA $ 6,347     $ 3,751     $ 5,346  
               
    Corporate and other          
    Segment operating profit $ (29,017 )   $ (37,476 )   $ (24,694 )
    Non-GAAP adjustments   10,295       16,570       2,299  
    Depreciation and amortization   477       510       381  
    Interest expense, net   13,196       12,375       13,935  
    Segment adjusted EBITDA $ (5,049 )   $ (8,021 )   $ (8,079 )
                           

    Free Cash Flow

      Three Months Ended
      March 31,   December 31,   March 31,
    (in thousands)   2025       2024       2024  
    Free Cash Flow          
    Cash flows from operating activities $ 66,802     $ 207,250     $ 173,508  
    Less: Capital expenditures, net of proceeds from sale of fixed assets   (28,246 )     (37,117 )     (29,522 )
    Free cash flow $ 38,556     $ 170,133     $ 143,986  
               
    Cash From Operating Activities to Revenue Ratio          
    Cash flows from operating activities $ 66,802     $ 207,250     $ 173,508  
    Revenue $ 864,464     $ 912,037     $ 922,141  
               
    Cash from operating activities to revenue ratio   8 %     23 %     19 %
               
    Free Cash Flow to Revenue Ratio          
    Free cash flow $ 38,556     $ 170,133     $ 143,986  
    Revenue $ 864,464     $ 912,037     $ 922,141  
               
    Free cash flow to revenue ratio   4 %     19 %     16 %
               
    Free Cash Flow to Adjusted EBITDA Ratio          
    Free cash flow $ 38,556     $ 170,133     $ 143,986  
    Adjusted EBITDA $ 190,869     $ 212,265     $ 191,712  
               
    Free cash flow to adjusted EBITDA ratio   20 %     80 %     75 %

    The MIL Network –

  • MIL-OSI Security: 25 Members of a Violent Gang in Mayagüez, Puerto Rico, Charged with Drug Trafficking and Firearms Offenses

    Source: Office of United States Attorneys

    SAN JUAN, Puerto Rico – On April 9, 2025, a federal grand jury in the District of Puerto Rico returned an indictment charging 25 violent gang members from the municipality of Mayagüez with conspiracy to possess with intent to distribute, possession and distribution of controlled substances, and firearms violations, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. The Federal Bureau of Investigation and the Puerto Rico Police Bureau (PRPB) Mayagüez Strike Force were in charge of the investigation of the case, with the collaboration of the United States Marshal Service, the U.S. Postal Inspection Service, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Homeland Security Investigations (HSI) Special Response Team (SRT), and the Guaynabo Municipal Police SRT collaborated during the arrests.

    “The prosecution of this drug trafficking gang demonstrates our determined efforts to protect our communities from the violent crime and gun violence they bring to our streets,” said U.S. Attorney Muldrow. “Our prosecutors will continue to work with our federal, state and local law enforcement partners to make our neighborhoods safe and bring criminals to justice.”

    “Today, we sent a clear message: violence, drugs, and organized crime will find no safe haven in Puerto Rico,” said Devin J. Kowalski, Special Agent in Charge of the FBI’s San Juan Field Office. “Thanks to the courage of our Special Agents and Police of Puerto Rico Task Force Officers, with the unwavering support of our federal partners, we disrupted a criminal network that terrorized our communities for years. The FBI remains fully committed to protecting our people, restoring peace to our neighborhoods, and holding violent offenders accountable.”

    The indictment alleges that from in or about April 2021 through the present, the drug trafficking organization distributed heroin, fentanyl, cocaine base (commonly known as “crack”), cocaine, and marihuana within 1,000 feet of Rafael Hernández (Kennedy) Public Housing Project (PHP), the Manuel Hernández Rosa (Candelaria PHP), the El Carmen (PHP), and other areas nearby nearby the municipality of Mayagüez, all for significant financial gain and profit.

    The goal of the drug trafficking organization was to maintain control of all the drug trafficking activities within the controlled areas using force, threats, violence, and intimidation.  In preserving power and protecting territory, the members of the organization incurred in violent acts including but not limited to murder in order to protect themselves and their organization. Members of the criminal organization also transported and distributed kilogram quantities of cocaine.

    As part of the conspiracy, the defendants had meetings to discuss strategy and plan of their criminal activities, including but not limited to acts of violence. The co-conspirators held meetings to discuss drug trafficking business and issues between gang members. During said meetings, incarcerated defendants and co-conspirators would participate via phone call. The defendants and their co-conspirators used violence to take over other areas and sell their own narcotics at those areas to increase their power and profits.

    The defendants acted in different roles to further the goals of the drug trafficking conspiracy, to include: leaders, drug point owners, enforcers, runners, sellers, drug processors, lookouts, and facilitators. The members of the gang used force, violence, and intimidation to intimidate rival drug trafficking organizations, and to discipline members of their own organization. The defendants charged in the drug trafficking conspiracy are:

    [1] Jonathan Martínez González, a.k.a. “J/El Brother”

    [2] Isaías Jaseph Molina Valle, a.k.a. “Simio/Simi”

    [3] Juan A. Ortiz Mendoza, a.k.a. “Abuelo/Abu/Ablo”

    [4] Fernando Manuel Torres Ruiz, a.k.a. “La M”

    [5] Jonathan Enrique Rodríguez Acosta, a.k.a. “John Pri/Pri”

    [6] Franschesca M. Rivera-Valle, a.k.a. “Cheska”

    [7] Joseph G. Ríos Vélez

    [8] Jomael Enrique Aponte Rivera, a.k.a. “Farru”

    [9] Abdiel Sánchez Negrón

    [10] Michael J. Marrero García, a.k.a. “Michael El Pato”

    [11] Héctor A. Rosado Matías, a.k.a. “Bebo/Bebito”

    [12] Christopher Santiago Rivera, a.k.a. “Gato”

    [13] Jesus D. Rodríguez Soto, a.k.a. “John”

    [14] Luis Joel Couret Clas, a.k.a. “Shaggy”

    [15] Julio E. Mangual Vargas, a.k.a. “Julio Maraña”

    [16] Fredwin Yomar Álvarez, a.k.a. “Bombilla”

    [17] Héctor M. Cotto Rodríguez, a.k.a. “Tello”

    [18] Ezequiel Soto Bonilla, a.k.a. “Bigote”

    [19] Carlos Mikel Rodríguez Núñez, a.k.a. “Mikel/Fosforito”

    [20] Carlos Obed La Llave Otero, a.k.a. “Security/El Gordo”

    [21] Michael Concepción Soto

    [22] Héctor Javier Surita Muñiz, a.k.a. “Coquito/Surita”

    [23] Merchisede Rivera Pérez, a.k.a. “Merquisedec Rivera Pérez/Melchicede Rivera Pérez/El Negro/Melqui”

    [24] José C. Colón-Félix, a.k.a. “Fresita”

    [25] Antonio M. López Olivencia, a.k.a. “Delivery”

    Fifteen defendants are charged in Count Seven with possession of firearms in furtherance of a drug trafficking crime and seven of those defendants are facing one count of possession of a machinegun in furtherance of a drug trafficking crime.

    The FBI thanks the PRPB Mayagüez Strike Force for their assistance in this investigation.

    Assistant U.S. Attorney (AUSA) and Chief of the Gang Section Alberto López-Rocafort, Deputy Chief of the Gang Section, AUSA Teresa Zapata-Valladares, and AUSAs Laura Díaz González, and Héctor Siaca Flores are prosecuting the case. If convicted on the drug charges, the defendants face a minimum sentence of 10 years, and up to life in prison. If convicted of both the drug and firearms charges in Count Seven, the defendants face a minimum sentence of 15 years, and up to life in prison. The defendants charged with possession of machineguns in furtherance of drug trafficking in Count Eight face a mandatory sentence of thirty years in prison to be served consecutive to any sentence imposed on the drug trafficking charges. All defendants charged in the drug conspiracy are facing a narcotics forfeiture allegation of $19,710,000.

    This case is part of Operation Take Back America a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).

    An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

    ###

    MIL Security OSI –

  • MIL-OSI Security: Five Individuals Charged with Attempted Kidnapping of Man in Mayagüez

    Source: Office of United States Attorneys

    SAN JUAN, Puerto Rico – On April 24, 2025, a federal grand jury returned a two-count indictment charging five individuals with conspiracy to kidnap and the attempted kidnapping of a man in Mayagüez on July 12, 2024, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico and Devin J. Kowalski, Special Agent in Charge of the FBI’s San Juan Field Office.

    According to the Indictment, beginning on a date unknown, but not later than on or about May 21, 2024, to on or about July 12, 2024, defendants  [1] Edilberto Aponte-Sánchez, [2] Anthony Esquilín-Guzmán, [3] Ramdy Kaleb Ocasio-Pagán, [4] Jocner Martínez-Correa, and [5] Dylan Camacho-Álvarez conspired and agreed with each other to unlawfully and willfully kidnap, abduct, or carry away and hold for ransom, reward, or otherwise, H.R.G. by using means, facility, or instrumentality of interstate or foreign commerce in committing or in furtherance of the commission of the offense, namely motor vehicles, messaging applications, and cellular telephones in violation of 18 U.S.C. § 1201(c). The defendants are also charged with the attempted kidnapping of the victim (H.R.G.) in violation of 18 U.S.C. §§ 1201(d) and 2.

    On July 12, 2024, the defendants attempted to kidnap the victim (H.R.G.) from a parking lot in Mayagüez by trying to force him into a van. The victim fought back, and the defendants fled the scene.

    “I commend the tireless efforts of the FBI, Puerto Rico Police Bureau, and prosecutors in the investigation of this case,” said United States Attorney Muldrow. “This case reinforces the importance of being aware of your surroundings at all times — whether you are leaving the bank or ATM after making a withdrawal of money, putting gasoline in your car, or just walking down the street while texting on your cell phone. If you see something that doesn’t look right, trust your instincts.”

    “Violence in our communities will never be tolerated,” said Devin J. Kowalski, Special Agent in Charge of the FBI’s San Juan Field Office. “The FBI and our partners will relentlessly investigate those who prey on innocent people — wherever they hide, however long it takes.”

    If convicted, the defendants face a sentence of up to life in prison as to the conspiracy to commit kidnapping and up to twenty years in prison for the attempted kidnapping. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    The Federal Bureau of Investigation is in charge of the investigation with the collaboration of the Puerto Rico Police Bureau.

    Assistant U.S. Attorney (AUSA) and Deputy Chief of the Violent Crimes Unit Jeanette Collazo and AUSA Corinne Cordero Romo are in charge of the prosecution of the case.

    An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

    ###

    MIL Security OSI –

  • MIL-OSI Security: Two More Defendants Plead Guilty to Roles in Scheme to Transport Contraband into FCI McDowell with Drone

    Source: Office of United States Attorneys

    CHARLESTON, W.Va. – Today, Hector Luis Gomez DeJesus, 32, of Sanford, North Carolina, and Raymond Luis Saez Aviles, 37, of Poinciana, Florida, each pleaded guilty to aiding and abetting the introduction of contraband into a federal prison.

    According to court documents and statements made in court, on February 9, 2024, correctional officers at Federal Correctional Institution (FCI) McDowell detected a drone flying over the prison facility. The flight path of the drone took it from the fence securing the prison facility to a cell in one of the housing units. Officers searched the cell and found a broken exterior window, numerous cell phones, tobacco, and marijuana within the cell.

    Officers traced the flight path back to the drone’s launch site, where they found and apprehended DeJesus, Aviles, and co-defendant Gamalier Rivera. Officers seized the drone, the drone’s remote controller, and contraband consistent with what was found in the cell.

    DeJesus and Aviles each admitted that they and Rivera participated in the introduction of the contraband into FCI McDowell by using the drone to transport marijuana, tobacco, and cell phones into the prison facility. DeJesus and Aviles further admitted that they expected to be paid for their participation in the contraband introduction.

    DeJesus and Aviles are scheduled to be sentenced on August 11, 2025, and each faces a maximum penalty of five years in prison, up to three years of supervised release, and a $250,000 fine.

    Rivera, 33, of Poinciana, Florida, pleaded guilty on March 27, 2025, to aiding and abetting the introduction of contraband into a federal prison and is scheduled to be sentenced on July 7, 2025.

    Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the Federal Bureau of Prisons (BOP), and the McDowell County Sheriff’s Office.

    Senior United States District Judge David A. Faber presided over the hearings. Assistant United States Attorney Brian D. Parsons is prosecuting the case.

    A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 1:24-cr-127.

    ###

     

    MIL Security OSI –

  • MIL-OSI: Northeast Bank Reports Third Quarter Results and Declares Dividend

    Source: GlobeNewswire (MIL-OSI)

    PORTLAND, Maine, April 29, 2025 (GLOBE NEWSWIRE) — Northeast Bank (the “Bank”) (NASDAQ: NBN), a Maine-based bank, today reported net income of $18.7 million, or $2.23 per diluted common share, for the quarter ended March 31, 2025, compared to net income of $13.9 million, or $1.83 per diluted common share, for the quarter ended March 31, 2024. Net income for the nine months ended March 31, 2025 was $58.2 million, or $7.07 per diluted common share, compared to $43.1 million, or $5.67 per diluted common share, for the nine months ended March 31, 2024.

    The Board of Directors declared a cash dividend of $0.01 per share, payable on May 27, 2025, to shareholders of record as of May 13, 2025.

    “We recorded strong loan volume during the third fiscal quarter,” said Rick Wayne, Chief Executive Officer. “Our National Lending Division generated $292.5 million in originated and purchased volume, and our small balance SBA 7(a) program with Newity LLC as our loan service provider has continued to grow, with quarterly originations of $121.3 million, compared to $100.3 million for the quarter ended December 31, 2024 and $29.0 million for the quarter ended March 31, 2024. At March 31, 2025, the loan portfolio, including loans held for sale, totaled $3.80 billion, representing an increase of $1.04 billion, or 37.7%, over June 30, 2024. During the quarter ended March 31, 2025, we sold $73.6 million of the guaranteed portion of our SBA loans, generating a gain on sale of $6.0 million, compared with sales of $64.5 million for a gain on sale of $5.6 million in the quarter ended December 31, 2024. For the quarter, we are reporting earnings of $2.23 per diluted common share, a return on average equity of 16.5%, and a return on average assets of 1.9%.”

    As of March 31, 2025, total assets were $4.23 billion, an increase of $1.10 billion, or 35.0%, from total assets of $3.13 billion as of June 30, 2024.

    1.   The following table highlights the changes in the loan portfolio, including loans held for sale, for the nine months ended March 31, 2025:

       
      Loan Portfolio Changes
      March 31, 2025 Balance   June 30, 2024 Balance   Change ($)   Change (%)
      (Dollars in thousands)
    National Lending Purchased $ 2,443,822     $ 1,708,551     $ 735,271       43.03 %
    National Lending Originated   1,185,153       981,497       203,656       20.75 %
    SBA National   152,319       48,405       103,914       214.68 %
    Community Banking   19,495       22,704       (3,209 )     (14.13 %)
    Total $ 3,800,789     $ 2,761,157     $ 1,039,632       37.65 %
                                   

    Loans generated by the Bank’s National Lending Division for the quarter ended March 31, 2025 totaled $292.5 million, which consisted of $74.5 million of purchased loans at an average price of 94.2% of unpaid principal balance, and $218.0 million of originated loans. Loans generated by the Bank’s SBA Division for the quarter ended March 31, 2025 totaled $121.3 million.

    An overview of the Bank’s National Lending Division portfolio follows:

      National Lending Portfolio
      Three Months Ended March 31,
      2025   2024
      Purchased   Originated   Total   Purchased   Originated   Total
      (Dollars in thousands)
    Loans purchased or originated during the period:                                  
    Unpaid principal balance $ 79,144     $ 217,983     $ 297,127     $ –     $ 153,349     $ 153,349  
    Initial net investment basis (1)   74,553       217,983       292,536       –       153,349       153,349  
                                       
    Loan returns during the period:                                  
    Yield   8.33%       8.73%       8.46%       8.67%       10.09%       9.19%  
    Total Return on Purchased Loans (2)   8.43%       N/A       8.43%       8.70%       N/A       8.70%  
                                       
      Nine Months Ended March 31,
      2025   2024
      Purchased   Originated   Total   Purchased   Originated   Total
      (Dollars in thousands)
    Loans purchased or originated during the period:                                  
    Unpaid principal balance $ 901,693     $ 591,292     $ 1,492,985     $ 271,741     $ 284,876     $ 556,617  
    Initial net investment basis (1)   821,485       591,292       1,412,777       238,477       284,876       523,353  
                                       
    Loan returns during the period:                                  
    Yield   8.65%       9.02%       8.77%       8.95%       9.97%       9.34%  
    Total Return on Purchased Loans (2)   8.70%       N/A       8.70%       8.98%       N/A       8.98%  
                                       
    Total loans as of period end:                                  
    Unpaid principal balance $ 2,638,438     $ 1,185,153     $ 3,823,591     $ 1,794,669     $ 975,876     $ 2,770,545  
    Net investment basis   2,443,822       1,185,153       3,628,975       1,620,409       975,876       2,596,285  
                                       
    (1) Initial net investment basis on purchased loans is the initial amortized cost basis net of initial allowance for credit losses (credit mark).
    (2) The total return on purchased loans represents scheduled accretion, accelerated accretion, gains (losses) on real estate owned, release of allowance for credit losses on purchased loans, and other noninterest income recorded during the period divided by the average invested balance on an annualized basis. The total return on purchased loans does not include the effect of purchased loan charge-offs or recoveries during the period. Total return on purchased loans is considered a non-GAAP financial measure. See reconciliation in below table entitled “Total Return on Purchased Loans.”
     

    2.   Deposits increased by $956.3 million, or 40.9%, from June 30, 2024. The increase was primarily attributable to increases in time deposits of $943.5 million, or 72.2%. The significant drivers in the change in time deposits were the increase in brokered time deposits, which increased by $818.8 million, and Community Banking Division time deposits, which increased by $105.3 million compared to June 30, 2024.

    3.   Federal Home Loan Bank (“FHLB”) advances increased by $33.4 million, or 9.7%, from June 30, 2024. The increase was attributable to one new short-term borrowing, partially offset by net paydowns on amortizing advances.

    4.   Shareholders’ equity increased by $90.9 million, or 24.1%, from June 30, 2024, primarily due to net income of $58.2 million and $31.3 million of net proceeds on shares issued in connection with the Bank’s at-the-market (“ATM”) program.

    Net income increased by $4.8 million to $18.7 million for the quarter ended March 31, 2025, compared to net income of $13.9 million for the quarter ended March 31, 2024.

    1.   Net interest and dividend income before provision for credit losses increased by $9.5 million to $46.0 million for the quarter ended March 31, 2025, compared to $36.5 million for the quarter ended March 31, 2024. The increase was primarily due to the following:

    • An increase in interest income earned on loans of $15.8 million, primarily due to higher average balances in the National Lending Division purchased and Small Business Administration (“SBA”) portfolios, partially offset by lower rates earned across the portfolio; and
    • An increase in interest income earned on short-term investments of $965 thousand, due to higher average balances, partially offset by lower rates earned; partially offset by,
    • An increase in deposit interest expense of $7.3 million, primarily due to higher average balances, partially offset by lower rates on interest-bearing deposits.

    The following table summarizes interest income and related yields recognized on the loan portfolios:

       
      Interest Income and Yield on Loans
      Three Months Ended March 31,
      2025   2024
      Average   Interest       Average   Interest    
      Balance (1)   Income   Yield   Balance (1)   Income   Yield
      (Dollars in thousands)
    Community Banking $ 20,074     $ 349     7.05 %   $ 24,640     $ 387     6.32 %
    SBA National   121,521       2,975     9.93 %     35,848       1,159     13.00 %
    National Lending:                                      
    Originated   1,120,756       24,120     8.73 %     953,401       23,909     10.09 %
    Purchased   2,387,715       49,034     8.33 %     1,635,494       35,260     8.67 %
    Total National Lending   3,508,471       73,154     8.46 %     2,588,895       59,169     9.19 %
    Total $ 3,650,066     $ 76,478     8.50 %   $ 2,649,383     $ 60,715     9.22 %
       
      Nine Months Ended March 31,
      2025   2024
      Average   Interest       Average   Interest    
      Balance (1)   Income   Yield   Balance (1)   Income   Yield
      (Dollars in thousands)
    Community Banking $ 21,330     $ 1,088     6.79 %   $ 25,786     $ 1,242     6.41 %
    SBA National   91,481       8,145     11.86 %     30,125       2,833     12.52 %
    National Lending:                                      
    Originated   1,052,656       71,297     9.02 %     951,129       71,284     9.97 %
    Purchased   2,183,068       141,831     8.65 %     1,558,362       104,780     8.95 %
    Total National Lending   3,235,724       213,128     8.77 %     2,509,491       176,064     9.34 %
    Total $ 3,348,535     $ 222,361     8.85 %   $ 2,565,402     $ 180,139     9.35 %
                                               
    (1)   Includes loans held for sale.
     

    The components of total income on purchased loans are set forth in the table below entitled “Total Return on Purchased Loans.” When compared to the quarter ended March 31, 2024, transactional income increased by $113 thousand for the quarter ended March 31, 2025, and regularly scheduled interest and accretion increased by $14.1 million primarily due to the increase in average balances. The total return on purchased loans for the quarter ended March 31, 2025 was 8.4%, a decrease from 8.7% for the quarter ended March 31, 2024. The following table details the total return on purchased loans:

       
      Total Return on Purchased Loans
      Three Months Ended March 31,
      2025   2024
      Income   Return (1)   Income   Return (1)
      (Dollars in thousands)
    Regularly scheduled interest and accretion $ 48,149     8.18 %   $ 34,045     8.37 %
    Transactional income:                      
    Release of allowance for credit losses on purchased loans   573     0.10 %     130     0.03 %
    Accelerated accretion and loan fees   885     0.15 %     1,215     0.30 %
    Total transactional income   1,458     0.25 %     1,345     0.33 %
    Total $ 49,607     8.43 %   $ 35,390     8.70 %
       
      Nine Months Ended March 31,
      2025   2024
      Income   Return (1)   Income   Return (1)
      (Dollars in thousands)
    Regularly scheduled interest and accretion $ 136,055     8.30 %   $ 98,505   8.41 %
    Transactional income:                    
    Release of allowance for credit losses on purchased loans   734     0.05 %     356   0.03 %
    Accelerated accretion and loan fees   5,775     0.35 %     6,275   0.54 %
    Total transactional income   6,509     0.40 %     6,631   0.57 %
    Total $ 142,564     8.70 %   $ 105,136   8.98 %
                             
    (1)   The total return on purchased loans represents scheduled accretion, accelerated accretion, and gains (losses) on real estate owned, and release of allowance for credit losses on purchased loans recorded during the period divided by the average invested balance on an annualized basis. The total return does not include the effect of purchased loan charge-offs or recoveries in the quarter. Total return is considered a non-GAAP financial measure.
     

    2.   Provision for credit losses increased by $2.3 million to $2.9 million for the quarter ended March 31, 2025, compared to $596 thousand in the quarter ended March 31, 2024. The increase was primarily related to loan growth and increased reserves on the unguaranteed portion of the SBA portfolio.

    3.   Noninterest income increased by $5.1 million for the quarter ended March 31, 2025, compared to the quarter ended March 31, 2024, primarily due to an increase in gain on sale of SBA loans of $5.0 million, due to the sale of $73.6 million in SBA loans during the quarter ended March 31, 2025 as compared to the sale of $18.9 million during the quarter ended March 31, 2024.

    4.   Noninterest expense increased by $3.7 million for the quarter ended March 31, 2025 compared to the quarter ended March 31, 2024, primarily due to the following:

    • An increase in salaries and employee benefits expense of $1.7 million, primarily due to increases in regular, stock compensation expense and incentive compensation expense;
    • An increase in loan expense of $1.5 million primarily related to increased expenses in connection with the origination of SBA 7(a) loans; and
    • An increase in Federal Deposit Insurance Corporation (the “FDIC”) insurance expense of $195 thousand, due to the growth of the Bank’s asset size and an increased assessment rate.

    5.   Income tax expense increased by $3.7 million to $10.8 million, or an effective tax rate of 36.7%, for the quarter ended March 31, 2025, compared to $7.2 million, or an effective tax rate of 34.1%, for the quarter ended March 31, 2024. The increase in effective tax rate is primarily due to projected changes in income apportionment for state taxes and increased projections of the required write-down of the Bank’s deferred tax asset as a result of a change in Massachusetts income tax law.

    As of March 31, 2025, nonperforming assets totaled $33.4 million, or 0.79% of total assets, compared to $28.3 million, or 0.90% of total assets, as of June 30, 2024.

    As of March 31, 2025, past due loans totaled $34.0 million, or 0.91% of total loans, compared to past due loans totaling $26.3 million, or 0.95% of total loans, as of June 30, 2024.

    As of March 31, 2025, the Bank’s Tier 1 leverage capital ratio was 11.5%, compared to 12.3% at June 30, 2024, and the Total risk-based capital ratio was 14.0% at March 31, 2025, compared to 14.8% at June 30, 2024. Capital ratios decreased primarily due to the increase in risk-weighted assets and average assets from significant loan growth during the nine months ended March 31, 2025, partially offset by increased retained earnings and additional capital raised under the Bank’s ATM program.

    Investor Call Information
    Rick Wayne, Chief Executive Officer, Richard Cohen, Chief Financial Officer, and Pat Dignan, Chief Operating Officer and Chief Credit Officer of Northeast Bank, will host a conference call to discuss third quarter earnings and business outlook at 10:00 a.m. Eastern Time on Wednesday, April 30th. To access the conference call by phone, please go to this link (Phone Registration), and you will be provided with dial in details. The call will be available via live webcast, which can be viewed by accessing the Bank’s website at www.northeastbank.com and clicking on the About Us – Investor Relations section. To listen to the webcast, attendees are encouraged to visit the website at least fifteen minutes early to register, download and install any necessary audio software. Please note there will also be a slide presentation that will accompany the webcast. For those who cannot listen to the live broadcast, a replay will be available online for one year at www.northeastbank.com.

    About Northeast Bank
    Northeast Bank (NASDAQ: NBN) is a bank headquartered in Portland, Maine. We offer personal and business banking services to the Maine market via seven branches. Our National Lending Division purchases and originates commercial loans on a nationwide basis. ableBanking, a division of Northeast Bank, offers online savings products to consumers nationwide. Information regarding Northeast Bank can be found at www.northeastbank.com.

    Non-GAAP Financial Measures
    In addition to results presented in accordance with generally accepted accounting principles (“GAAP”), this press release contains certain non-GAAP financial measures, including tangible common shareholders’ equity, tangible book value per share, total return on purchased loans, and efficiency ratio. The Bank’s management believes that the supplemental non-GAAP information is utilized by regulators and market analysts to evaluate a company’s financial condition and therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names.

    Forward-Looking Statements
    Statements in this press release that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. We may also make forward-looking statements in other documents we file with the FDIC, in our annual reports to our shareholders, in press releases and other written materials, and in oral statements made by our officers, directors or employees. You can identify forward-looking statements by the use of the words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “assume,” “outlook,” “will,” “should,” and other expressions that predict or indicate future events and trends and which do not relate to historical matters. Although the Bank believes that these forward-looking statements are based on reasonable estimates and assumptions, they are not guarantees of future performance and are subject to known and unknown risks, uncertainties, contingencies, and other factors. You should not place undue reliance on our forward-looking statements. You should exercise caution in interpreting and relying on forward-looking statements because they are subject to significant risks, uncertainties and other factors which are, in some cases, beyond the Bank’s control. The Bank’s actual results could differ materially from those expressed or implied by such the forward-looking statements as a result of, among other factors, changes in interest rates and real estate values; changes in employment levels, general business and economic conditions on a national basis and in the local markets in which the Bank operates; changes in customer behavior due to changing business and economic conditions (including the impact of recently imposed tariffs by the U.S. Administration and foreign governments, inflation and concerns about liquidity) or legislative or regulatory initiatives; the possibility that future credits losses are higher than currently expected due to changes in economic assumptions, customer behavior or adverse economic developments; turbulence in the capital and debt markets; competitive pressures from other financial institutions; changes in loan defaults and charge-off rates; changes in the value of securities and other assets, adequacy of credit loss reserves, or deposit levels necessitating increased borrowing to fund loans and investments; changes in legislation and regulation under the new U.S. presidential administration; operational risks including, but not limited to, cybersecurity, fraud, natural disasters, climate change and future pandemics; the risk that the Bank may not be successful in the implementation of its business strategy; the risk that intangibles recorded in the Bank’s financial statements will become impaired; changes in assumptions used in making such forward-looking statements; and the other risks and uncertainties detailed in the Bank’s Annual Report on Form 10-K, as amended by Amendment No. 1 to the Annual Report on Form 10-K/A for the year ended June 30, 2024 as updated in the Bank’s Quarterly Reports on Form 10-Q and other filings submitted to the FDIC. These statements speak only as of the date of this release and the Bank does not undertake any obligation to update or revise any of these forward-looking statements to reflect events or circumstances occurring after the date of this communication or to reflect the occurrence of unanticipated events.

    NBN-F

     
    NORTHEAST BANK
    BALANCE SHEETS
    (Unaudited)
    (Dollars in thousands, except share and per share data)
      March 31, 2025   June 30, 2024
    Assets            
    Cash and due from banks $ 2,443     $ 2,711  
    Short-term investments   341,633       239,447  
    Total cash and cash equivalents   344,076       242,158  
                 
                 
    Available-for-sale debt securities, at fair value   21,473       48,978  
    Equity securities, at fair value   7,314       7,013  
    Total investment securities   28,787       55,991  
                 
    SBA loans held for sale   60,339       14,506  
                 
    Loans:            
    Commercial real estate   2,764,809       2,028,280  
    Commercial and industrial   852,985       618,846  
    Residential real estate   122,466       99,234  
    Consumer   190       291  
    Total loans   3,740,450       2,746,651  
    Less: Allowance for credit losses   46,024       26,709  
    Loans, net   3,694,426       2,719,942  
                 
                 
    Premises and equipment, net   25,338       27,144  
    Real estate owned and other possessed collateral, net   1,200       –  
    Federal Home Loan Bank stock, at cost   16,106       15,751  
    Loan servicing rights, net   810       984  
    Bank-owned life insurance   19,203       18,830  
    Accrued interest receivable   17,445       15,163  
    Other assets   20,772       21,734  
    Total assets $ 4,228,502     $ 3,132,203  
                 
    Liabilities and Shareholders’ Equity            
    Deposits:            
    Demand $ 154,540     $ 146,727  
    Savings and interest checking   796,762       732,029  
    Money market   94,837       154,504  
    Time   2,249,654       1,306,203  
    Total deposits   3,295,793       2,339,463  
                 
    Federal Home Loan Bank and other advances   378,543       345,190  
    Lease liability   19,465       20,252  
    Other liabilities   67,185       50,664  
    Total liabilities   3,760,986       2,755,569  
                 
    Commitments and contingencies   –       –  
                 
                 
    Shareholders’ equity            
    Preferred stock, $1.00 par value, 1,000,000 shares authorized; no shares          
    issued and outstanding at March 31, 2025 and June 30, 2024   –       –  
    Voting common stock, $1.00 par value, 25,000,000 shares authorized;            
    8,525,362 and 8,127,690 shares issued and outstanding at          
    March 31, 2025 and June 30, 2024, respectively   8,525       8,128  
    Non-voting common stock, $1.00 par value, 3,000,000 shares authorized;            
    No shares issued and outstanding at March 31, 2025 and June 30, 2024 –     –  
    Additional paid-in capital   97,078       64,762  
    Retained earnings   361,901       303,927  
    Accumulated other comprehensive income (loss)   12       (183 )
    Total shareholders’ equity   467,516       376,634  
    Total liabilities and shareholders’ equity $ 4,228,502     $ 3,132,203  
                   
     
    NORTHEAST BANK
    STATEMENTS OF INCOME
    (Unaudited)
    (Dollars in thousands, except share and per share data)
      Three Months Ended March 31,   Nine Months Ended March 31,
      2025   2024   2025   2024
    Interest and dividend income:                          
    Interest and fees on loans $ 76,478     $ 60,715     $ 222,361     $ 180,139  
    Interest on available-for-sale securities   352       596       1,383       1,639  
    Other interest and dividend income   3,996       3,179       12,104       9,541  
    Total interest and dividend income   80,826       64,490       235,848       191,319  
                               
    Interest expense:                          
    Deposits   30,593       23,340       89,959       63,772  
    Federal Home Loan Bank advances   4,057       4,401       11,754       16,247  
    Obligation under capital lease agreements   225       237       691       664  
    Total interest expense   34,875       27,978       102,404       80,683  
    Net interest and dividend income before provision for credit losses   45,951       36,512       133,444       110,636  
    Provision for credit losses   2,908       596       5,275       1,221  
    Net interest and dividend income after provision for credit losses   43,043       35,916       128,169       109,415  
                               
    Noninterest income:                          
    Fees for other services to customers   362       320       1,197       1,218  
    Gain on sales of SBA loans   6,014       1,015       14,915       1,837  
    Net unrealized gain (loss) on equity securities   79       (55 )     106       17  
    Loss on real estate owned, other repossessed collateral and premises and equipment, net   –       –       –       (9 )
    Bank-owned life insurance income   124       116       372       348  
    Correspondent fee income   16       40       69       183  
    Other noninterest income   24       106       28       194  
    Total noninterest income   6,619       1,542       16,687       3,788  
                               
    Noninterest expense:                          
    Salaries and employee benefits   12,477       10,784       34,947       30,409  
    Occupancy and equipment expense   1,275       1,072       3,456       3,277  
    Professional fees   669       503       1,985       1,784  
    Data processing fees   1,496       1,376       4,605       3,823  
    Marketing expense   89       256       318       738  
    Loan acquisition and collection expense   2,270       813       5,626       2,402  
    FDIC insurance expense   468       273       1,756       917  
    Other noninterest expense   1,399       1,352       4,203       4,138  
    Total noninterest expense   20,143       16,429       56,896       47,488  
    Income before income tax expense   29,519       21,029       87,960       65,715  
    Income tax expense   10,838       7,164       29,734       22,624  
    Net income $ 18,681     $ 13,865     $ 58,226     $ 43,091  
                               
                               
    Weighted-average shares outstanding:                          
    Basic   8,216,746       7,509,320       8,047,775       7,510,065  
    Diluted   8,394,964       7,595,124       8,232,435       7,602,844  
                               
    Earnings per common share:                          
    Basic $ 2.27     $ 1.85     $ 7.24     $ 5.74  
    Diluted   2.23       1.83       7.07       5.67  
                                   
    Cash dividends declared per common share $ 0.01     $ 0.01     $ 0.03     $ 0.03  
                                   
     
    NORTHEAST BANK
    AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS
    (Unaudited)
    (Dollars in thousands)
      Three Months Ended March 31,
      2025   2024
          Interest   Average       Interest   Average
      Average   Income/   Yield/   Average   Income/   Yield/
      Balance   Expense   Rate   Balance   Expense   Rate
    Assets:                                          
    Interest-earning assets:                                      
    Investment securities $ 32,963     $ 352     4.33 %   $ 60,211     $ 596     3.98 %
    Loans (1) (2) (3)   3,650,066       76,478     8.50 %     2,649,383       60,715     9.22 %
    Federal Home Loan Bank stock   16,657       301     7.33 %     17,636       449     10.24 %
    Short-term investments (4)   336,877       3,695     4.45 %     204,869       2,730     5.36 %
    Total interest-earning assets   4,036,563       80,826     8.12 %     2,932,099       64,490     8.85 %
    Cash and due from banks   2,332                   2,446              
    Other non-interest earning assets   39,847                   50,227              
    Total assets $ 4,078,742                 $ 2,984,772              
                                           
    Liabilities & Shareholders’ Equity:                                      
    Interest-bearing liabilities:                                      
    NOW accounts $ 566,932     $ 5,190     3.71 %   $ 524,301     $ 5,767     4.42 %
    Money market accounts   116,647       754     2.62 %     190,379       1,619     3.42 %
    Savings accounts   198,094       1,365     2.79 %     140,737       1,126     3.22 %
    Time deposits   2,129,320       23,284     4.43 %     1,185,558       14,828     5.03 %
    Total interest-bearing deposits   3,010,993       30,593     4.12 %     2,040,975       23,340     4.60 %
    Federal Home Loan Bank advances   372,029       4,057     4.42 %     396,130       4,401     4.47 %
    Lease liability   19,340       225     4.72 %     20,981       237     4.54 %
    Total interest-bearing liabilities   3,402,362       34,875     4.16 %     2,458,086       27,978     4.58 %
                                           
    Non-interest bearing liabilities:                                      
    Demand deposits and escrow accounts   183,348                   163,042              
    Other liabilities   33,025                   24,571              
    Total liabilities   3,618,735                   2,645,699              
    Shareholders’ equity   460,007                   339,073              
    Total liabilities and shareholders’ equity $ 4,078,742                 $ 2,984,772              
                                           
    Net interest income         $ 45,951                 $ 36,512      
                                           
    Interest rate spread                 3.96 %                   4.27 %
    Net interest margin (5)                 4.62 %                   5.01 %
                                           
    Cost of funds (6)                 3.94 %                   4.29 %
                                           
    (1) Interest income and yield are stated on a fully tax-equivalent basis using the statutory tax rate.
    (2) Includes loans held for sale.
    (3) Nonaccrual loans are included in the computation of average, but unpaid interest has not been included for purposes of determining interest income.
    (4) Short-term investments include FHLB overnight deposits and other interest-bearing deposits.
    (5) Net interest margin is calculated as net interest income divided by total interest-earning assets.
    (6) Cost of funds is calculated as total interest expense divided by total interest-bearing liabilities plus demand deposits and escrow accounts.
     
     
    NORTHEAST BANK
    AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS
    (Unaudited)
    (Dollars in thousands)
      Nine Months Ended March 31,
      2025   2024
          Interest   Average       Interest   Average
      Average   Income/   Yield/   Average   Income/   Yield/
      Balance   Expense   Rate   Balance   Expense   Rate
    Assets:                                      
    Interest-earning assets:                                      
    Investment securities $ 42,865     $ 1,383     4.30 %   $ 60,060     $ 1,639     3.63 %
    Loans (1) (2) (3)   3,348,535       222,361     8.85 %     2,565,402       180,139     9.35 %
    Federal Home Loan Bank stock   16,190       977     8.04 %     20,415       1,331     8.68 %
    Short-term investments (4)   302,262       11,127     4.90 %     204,252       8,210     5.35 %
    Total interest-earning assets   3,709,852       235,848     8.47 %     2,850,129       191,319     8.93 %
    Cash and due from banks   2,219                   2,482              
    Other non-interest earning assets   55,078                   58,609              
    Total assets $ 3,767,149                 $ 2,911,220              
                                           
    Liabilities & Shareholders’ Equity:                                      
    Interest-bearing liabilities:                                      
    NOW accounts $ 570,906     $ 17,014     3.97 %   $ 507,594     $ 16,548     4.34 %
    Money market accounts   131,481       2,972     3.01 %     226,072       5,760     3.39 %
    Savings accounts   188,053       4,575     3.24 %     118,044       2,603     2.93 %
    Time deposits   1,864,771       65,398     4.67 %     1,061,399       38,861     4.87 %
    Total interest-bearing deposits   2,755,211       89,959     4.35 %     1,913,109       63,772     4.44 %
    Federal Home Loan Bank advances   357,020       11,754     4.39 %     463,065       16,247     4.67 %
    Lease liability   19,655       691     4.68 %     21,373       664     4.13 %
    Total interest-bearing liabilities   3,131,886       102,404     4.36 %     2,397,547       80,683     4.48 %
                                           
    Non-interest bearing liabilities:                                      
    Demand deposits and escrow accounts   182,877                   166,955              
    Other liabilities   29,877                   24,388              
    Total liabilities   3,344,640                   2,588,890              
    Shareholders’ equity   422,509                   322,330              
    Total liabilities and shareholders’ equity $ 3,767,149                 $ 2,911,220              
                                           
    Net interest income         $ 133,444                 $ 110,636      
                                           
    Interest rate spread                 4.11 %                   4.45 %
    Net interest margin (5)                 4.79 %                   5.17 %
                                           
    Cost of funds (6)                 4.12 %                   4.19 %
                                           
    (1) Interest income and yield are stated on a fully tax-equivalent basis using the statutory tax rate.
    (2) Includes loans held for sale.
    (3) Nonaccrual loans are included in the computation of average, but unpaid interest has not been included for purposes of determining interest income.
    (4) Short-term investments include FHLB overnight deposits and other interest-bearing deposits.
    (5) Net interest margin is calculated as net interest income divided by total interest-earning assets.
    (6) Cost of funds is calculated as total interest expense divided by total interest-bearing liabilities plus demand deposits and escrow accounts.
     
     
    NORTHEAST BANK
    SELECTED FINANCIAL HIGHLIGHTS AND OTHER DATA
    (Unaudited)
    (Dollars in thousands, except share and per share data)
      Three Months Ended
      March 31, 2025   December 31, 2024   September 30, 2024   June 30, 2024   March 31, 2024
    Net interest income $ 45,951     $ 48,490     $ 39,000     $ 37,935     $ 36,512  
    Provision for credit losses   2,908       1,944       422       547       596  
    Noninterest income   6,619       5,949       4,119       2,092       1,542  
    Noninterest expense   20,143       19,066       17,685       17,079       16,429  
    Net income   18,681       22,440       17,106       15,140       13,865  
                       
    Weighted-average common shares outstanding:                  
    Basic   8,216,746       8,044,345       7,886,148       7,765,868       7,509,320  
    Diluted   8,394,964       8,197,568       8,108,688       7,910,692       7,595,124  
    Earnings per common share:                  
    Basic $ 2.27     $ 2.79     $ 2.17     $ 1.95     $ 1.85  
    Diluted   2.23       2.74       2.11       1.91       1.83  
                       
    Dividends declared per common share $ 0.01     $ 0.01     $ 0.01     $ 0.01     $ 0.01  
                       
    Return on average assets   1.86%       2.24%       2.09%       1.99%       1.87%  
    Return on average equity   16.47%       21.14%       17.53%       16.56%       16.45%  
    Net interest rate spread (1)   3.96%       4.21%       4.18%       4.41%       4.27%  
    Net interest margin (2)   4.62%       4.88%       4.90%       5.13%       5.01%  
    Efficiency ratio (non-GAAP) (3)   38.32%       35.02%       41.01%       42.67%       43.17%  
    Noninterest expense to average total assets   2.00%       1.90%       2.16%       2.24%       2.21%  
    Average interest-earning assets to average interest-bearing liabilities   118.64%       118.24%       118.48%       118.78%       119.28%  
                       
      As of:
      March 31, 2025   December 31, 2024   September 30, 2024   June 30, 2024   March 31, 2024
    Nonperforming loans:                  
    Originated portfolio:                  
    Residential real estate $ 2,407     $ 2,446     $ 3,976     $ 2,502     $ 2,573  
    Commercial real estate   3,197       3,662       4,682       1,407       2,075  
    Commercial and industrial   6,945       6,696       6,684       6,520       6,928  
    Consumer   3       5       –       –       –  
    Total originated portfolio   12,552       12,809       15,342       10,429       11,576  
    Total purchased portfolio   19,680       17,257       21,830       17,832       16,370  
    Total nonperforming loans   32,232       30,066       37,172       28,261       27,946  
    Real estate owned and other repossessed collateral, net   1,200       1,200       –       –       –  
    Total nonperforming assets $ 33,432     $ 31,266     $ 37,172     $ 28,261     $ 27,946  
                       
    Past due loans to total loans   0.91%       0.85%       0.89%       0.95%       1.13%  
    Nonperforming loans to total loans   0.86%       0.84%       1.06%       1.02%       1.05%  
    Nonperforming assets to total assets   0.79%       0.77%       0.94%       0.90%       0.93%  
    Allowance for credit losses to total loans   1.23%       1.25%       1.25%       0.97%       0.98%  
    Allowance for credit losses to nonperforming loans   142.79%       148.92%       117.40%       94.51%       92.83%  
    Net charge-offs (recoveries) $ 2,082     $ 869     $ 1,604     $ 1,347     $ 2,225  
    Commercial real estate loans to total capital (4)   521.47%       542.12%       604.38%       482.13%       509.08%  
    Net loans to deposits   112.10%       112.52%       110.70%       116.88%       118.15%  
    Purchased loans to total loans   65.33%       66.63%       69.11%       61.88%       60.99%  
    Equity to total assets   11.06%       10.88%       9.96%       12.02%       11.73%  
    Common equity tier 1 capital ratio   12.72%       12.66%       11.45%       13.84%       13.24%  
    Total risk-based capital ratio   13.97%       13.91%       12.70%       14.82%       14.22%  
    Tier 1 leverage capital ratio   11.45%       11.16%       12.06%       12.30%       11.79%  
                       
    Total shareholders’ equity $ 467,516     $ 444,101     $ 392,557     $ 376,634     $ 351,913  
    Less: Preferred stock   –       –       –       –       –  
    Common shareholders’ equity   467,516       444,101       392,557       376,634       351,913  
    Less: Intangible assets (5)   –       –       –       –       –  
    Tangible common shareholders’ equity (non-GAAP) $ 467,516     $ 444,101     $ 392,557     $ 376,634     $ 351,913  
                       
    Common shares outstanding   8,525,362       8,492,856       8,212,026       8,127,690       7,977,690  
    Book value per common share $ 54.84     $ 52.29     $ 47.80     $ 46.34     $ 44.11  
    Tangible book value per share (non-GAAP) (6)   54.84       52.29       47.80       46.34       44.11  
                       
    (1) The net interest rate spread represents the difference between the weighted-average yield on interest-earning assets and the weighted-average cost of interest-bearing liabilities for the period.
    (2) The net interest margin represents net interest income as a percent of average interest-earning assets for the period.
    (3) The efficiency ratio represents noninterest expense divided by the sum of net interest income (before the credit loss provision) plus noninterest income.
    (4) For purposes of calculating this ratio, commercial real estate includes all non-owner occupied commercial real estate loans defined as such by regulatory guidance, including all land development and construction loans.
    (5) Includes the loan servicing rights asset.
    (6) Tangible book value per share represents total shareholders’ equity less the sum of preferred stock and intangible assets divided by common shares outstanding.
     

    For More Information:
    Richard Cohen, Chief Financial Officer
    Northeast Bank, 27 Pearl Street, Portland, Maine 04101
    207.786.3245 ext. 3249
    www.northeastbank.com

    The MIL Network –

  • MIL-OSI: Ninepoint Partners Announces Final April 2025 Cash Distribution for Ninepoint Cash Management Fund – ETF Series

    Source: GlobeNewswire (MIL-OSI)

    TORONTO, April 29, 2025 (GLOBE NEWSWIRE) — Ninepoint Partners LP (“Ninepoint Partners”) today announced the final April 2025 cash distribution for the Ninepoint Cash Management Fund – ETF Series. The record date for the distribution is April 30, 2025. This distribution is payable on May 7, 2025.

    The per-unit final April 2025 distribution is detailed below:

    Ninepoint ETF Series Ticker Cash Distribution per unit Notional Distribution per unit CUSIP
    Ninepoint Cash Management Fund NSAV $0.11744 $0.00000 65443X105

    About Ninepoint Partners

    Based in Toronto, Ninepoint Partners LP is one of Canada’s leading alternative investment management firms overseeing approximately $7 billion in assets under management and institutional contracts. Committed to helping investors explore innovative investment solutions that have the potential to enhance returns and manage portfolio risk, Ninepoint offers a diverse set of alternative strategies spanning Equities, Fixed Income, Alternative Income, Real Assets, F/X and Digital Assets

    For more information on Ninepoint Partners LP, please visit www.ninepoint.com or for inquiries regarding the offering, please contact us at (416) 943-6707 or (866) 299-9906 or invest@ninepoint.com.

    Ninepoint Partners LP is the investment manager to the Ninepoint Funds (collectively, the “Funds”). Commissions, trailing commissions, management fees, performance fees (if any), and other expenses all may be associated with investing in the Funds. Please read the prospectus carefully before investing. The information contained herein does not constitute an offer or solicitation by anyone in the United States or in any other jurisdiction in which such an offer or solicitation is not authorized or to any person to whom it is unlawful to make such an offer or solicitation. Prospective investors who are not resident in Canada should contact their financial advisor to determine whether securities of the Fund may be lawfully sold in their jurisdiction.

    Please note that distribution factors (breakdown between income, capital gains and return of capital) can only be calculated when a fund has reached its year-end. Distribution information should not be relied upon for income tax reporting purposes as this is only a component of total distributions for the year. For accurate distribution amounts for the purpose of filing an income tax return, please refer to the appropriate T3/T5 slips for that particular taxation year. Please refer to the prospectus or offering memorandum of each Fund for details of the Fund’s distribution policy.

    The payment of distributions and distribution breakdown, if applicable, is not guaranteed and may fluctuate. The payment of distributions should not be confused with a Fund’s performance, rate of return, or yield. If distributions paid by the Fund are greater than the performance of the Fund, then an investor’s original investment will shrink. Distributions paid as a result of capital gains realized by a Fund and income and dividends earned by a Fund are taxable in the year they are paid. An investor’s adjusted cost base will be reduced by the amount of any returns of capital. If an investor’s adjusted cost base goes below zero, then capital gains tax will have to be paid on the amount below zero.

    Sales Inquiries:

    Ninepoint Partners LP
    Neil Ross
    416-945-6227
    nross@ninepoint.com

    The MIL Network –