Category: Intelligence Agencies

MIL-OSI Security: Out of state man pleads guilty to laundering email scam proceeds

Source: Office of United States Attorneys

HOUSTON – A California man has admitted to operating an illegal money transmitting business, announced U.S. Attorney Nicholas J. Ganjei.

Victor Rubio Jr. admitted that from 2021 to 2022, he operated an unlicensed money transmitting business that received and transmitted funds from a business email compromise (BEC) scheme. Rubio ran the unlicensed money transmitting business by using shell companies that existed only on paper.

As part of the plea, Rubio acknowledged opening and maintaining bank accounts to collect money from at least two victims in a BEC scheme, including a healthcare liability insurance company headquartered in Georgia and a township in New Jersey. Then, for a fee, he transmitted the fraud proceeds to co-conspirators.

In response to fraudulent wire instructions from spoofed email accounts, victims sent interstate wire transfers for payment to Rubio instead of to the true creditors to whom the victims owed money.

More than 45 people in multiple states, including Rubio and seven others in the Southern District of Texas, have been charged in separate business email compromise schemes that affected numerous victims.

U.S. District Judge George Hanks will impose sentencing April 22. At that time, Rubio faces up to five years in federal prison and a $250,000 maximum possible fine.

He was permitted to remain on bond pending that hearing.

The FBI – Bryan Resident Agency and IRS Criminal Investigation conducted the investigation. Assistant U.S. Attorneys Belinda Beek and Thomas Carter are prosecuting the case.

MIL Security OSI –

February 7, 2025

MIL-OSI Security: Fentanyl Trafficker Sentenced to 165 Months for Bringing Thousands of Counterfeit Oxycodone Pills into the District

Source: Office of United States Attorneys

WASHINGTON – Craig Eastman, 21, of Washington D.C., was sentenced today in U.S. District Court to 165 months in federal prison for participating in a massive fentanyl trafficking conspiracy that distributed hundreds of thousands of fentanyl-laced counterfeit oxycodone pills from Southern California to destinations throughout the United States, including the District. Eastman was one of more than two dozen co-defendants arrested over the course of 2023 in D.C., Virginia, Maryland, San Diego, and Los Angeles and charged in the conspiracy.

The sentence was announced by U.S. Attorney Edward R. Martin, Jr., DEA Special Agent in Charge Ibrar A. Mian of the Washington Division, Inspector in Charge Damon E. Wood of the U.S. Postal Inspection Service Washington Division, and Chief Pamela Smith of the Metropolitan Police Department.

Eastman pleaded guilty on July 25, 2024, to conspiring to distribute 400 grams or more of fentanyl. In addition to the 165-month prison term, U.S. District Judge Colleen Kollar-Kotelly ordered Eastman to serve five years of supervised release.

The impetus for this investigation was the overdose death of Diamond Lynch, a young mother in Southeast D.C. In addition to investigating and prosecuting the death-resulting case,[1] law enforcement followed the evidence and uncovered a vast network of traffickers who transported fentanyl from Mexico to Los Angeles to the District of Columbia. Since then, investigators have seized more than 450,000 fentanyl pills, 1.5 kilograms of fentanyl powder, and 30 firearms.

According to court documents, Eastman entered into the conspiracy after he was introduced to a Los Angeles-based drug trafficker, who was a distributor of fentanyl-laced counterfeit oxycodone pills. Eastman traveled to Southern California to purchase the fake oxycodone from the L.A. supplier and returned to the District with the drugs. Eastman and his co-conspirators employed two primary methods to transport the pills to the District: they smuggled them in luggage or carry-on items on airline flights, or they shipped the pills utilizing the U.S. Postal Service and commercial mail carriers

After transporting the fentanyl-laced pills back to the District of Columbia, Eastman redistributed them for profit, primarily in collaboration with a co-defendant. Two redistributors of the pills were his siblings, Larry and Justice Eastman, who later were convicted of conspiracy to distribute and possess with intent to distribute fentanyl. Ms. Lynch was a customer of Larry and Justice Eastman.

Craig Eastman not only knew of Ms. Lynch’s overdose death, but proceeded to attempt to sell the batch of pills that included Ms. Lynch’s fatal dose at a discount rather than simply destroy them and incur the financial loss. Specifically, the month after Ms. Lynch’s overdose death, Craig Eastman marketed the same bulk supply of pills that included Ms. Lynch’s fatal dose. Craig Eastman informed a prospective customer that he “caught a bad batch of some 30s,” and asked the customer to “see if [he] got somebody to sell em to[,] I got endless.”

Craig Eastman also had been found in residences containing firearms on multiple occasions. On September 1, 2021, law enforcement searched Craig Eastman’s residence in the 2300 block of Raynolds Place SE. Agents found him inside his bedroom, along with 204 fentanyl-laced counterfeit oxycodone pills, multiple firearms and accompanying magazines and ammunition, as well as several thousand dollars in cash. On December 4, 2021, officers searched Eastman’s residence and recovered four firearms, about $1,700 in cash, and distribution quantities of fentanyl-laced counterfeit oxycodone pills. In his bedroom specifically, officers found a Glock 17 equipped with a high-capacity magazine and a machine gun conversion device, along with fentanyl-laced counterfeit oxycodone pills. When Craig Eastman was arrested along with co-defendant Charles Taylor on March 22, 2023, in a stash house in the District, officers recovered seven firearms (including one machine gun), assorted ammunition, more than a dozen pounds of marijuana, and a pill bottle containing fentanyl-laced counterfeit oxycodone pills.

DEFENDANT	AGE	LOCATION	CHARGES/SENTENCE
Hector David Valdez, aka “Curl”	27	Santa Fe Springs, California	Conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl; Conspiracy to commit international money laundering.
Craig Eastman	21	Washington, D.C.	Sentenced on February 6, 2025, to 165 months for conspiracy to distribute more than 400 grams of fentanyl.
Charles Jeffrey Taylor	21	Washington, D.C.	Conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl.
Raymond Nava, Jr.	20	Bell Gardens, California	Sentenced September 17, 2024, to 14 years for conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl.
Ulises Aldaz	28	Bell Gardens, California	Sentenced June 28, 2024, to 95 months in prison for conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl.
Max Alexander Carias Torres	27	Bell Gardens, California	Conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl; Conspiracy to commit international money laundering
Teron Deandre McNeil, aka “Wild Boy”	34	Washington, D.C.	Conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl.
Marvin Anthony Bussie, aka “Money Marr”	22	Washington, D.C.	Sentenced June 28, 2024, to 120 months in prison for conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl.
Marcus Orlando Brown	29	Washington, D.C.	Sentenced October 3, 2024, to 108 months in prison for conspiracy to distribute and possess with intent to distribute 40 grams or more of fentanyl.
Columbian Thomas, aka “Cruddy Murda”	27	Washington, D.C.	Sentenced October 22, 2024, to 160 months in prison for conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl.
Wayne Rodell Carr-Maiden	30	Washington, D.C.	Sentenced April 29, 2024, to 45 months in prison for conspiracy to distribute and possess with intent to distribute 40 grams or more of fentanyl.
Andre Malik Edmond, aka “Draco”	23	Temple Hills, Maryland	Sentenced July 22, 2024, to 130 months in prison for conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl.
Treyveon James Johnson, aka “Treyski”	20	Alexandria, Virginia	Sentenced September 5, 2024, to 108 months in prison for conspiracy to distribute and possess with intent to distribute 40 grams or more of fentanyl.
Karon Olufemi Blalock, aka “Fat Bags”	30	Alexandria, Virginia	Conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl.
Ronte Ricardo Greene, aka “Cardiddy”	29	Washington, D.C.	Conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl.
Melvin Edward Allen, Jr., aka “21”	39	Washington, D.C.	Pleaded guilty on December 18, 2024, to conspiracy to distribute and possess with intent to distribute 40 grams or more of fentanyl.
Darius Quincy Hodges, aka “Brick”	34	Glen Allen, Virginia	Conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl.
Lamin Sesay, aka “Rock Star”	28	Alexandria, Virginia	Conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl.
Paul Alejandro Felix	26	Glendale, California	Sentenced November 12, 2024, to 164 months in prison for conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl.
Omar Arana, aka “Frogs”	27	Cudahy, California	Pleaded guilty January 3, 2025, to conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl.
Edgar Balderas, Jr., aka “Nano”	27	San Diego, California	Pleaded guilty December 19, 2024, to conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl.
Raul Pacheco Ramirez	30	Long Beach, California	Sentenced November 26, 2024, to 95 months for conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl.
Giovani Alejandro Briones	30	Victorville, California	Pleaded guilty October 24, 2024, to conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl.
Alfredo Rodriguez Gonzalez	26	Rosarito, Mexico	Conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl; Conspiracy to commit international money laundering.

These prosecutions followed a joint investigation by the DEA Washington Division and the U.S. Postal Inspection Service Washington Division, in partnership with the Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The investigation had additional support from the DEA’s Los Angeles, San Diego, and Riverside Field Divisions, the FBI Washington Field Office, and the Charles County, Maryland, Sheriff’s Office. Valuable assistance was provided by the U.S. Attorney’s Offices in the Central and Southern Districts of California, the Eastern District of Virginia, and the District of Maryland.

The case is being prosecuted by Assistant U.S. Attorneys Matthew W. Kinskey, Solomon S. Eppel, and Iris McCranie of the Violence Reduction and Trafficking Offenses (VRTO) Section.

MIL Security OSI –

February 7, 2025

MIL-OSI USA: HSI San Diego, multiagency case sends trafficker to 19.5 years in prison for supplying weapons and ammunition to Sinaloa Cartel

Source: US Immigration and Customs Enforcement

SAN DIEGO — Keith Octavio Rodriguez Padilla, a prolific firearms trafficker, was sentenced in federal court Jan. 13, to 19.5 years in custody for his role in supplying weapons and tens of thousands of rounds of ammunition to the Sinaloa Cartel.

This case is part of a long-running investigation targeting the Valenzuela Transnational Criminal Organization (TCO), which was a significant component of the Sinaloa Cartel. Homeland Security Investigations (HSI) investigated this case with assistance from multiple federal, state and local law enforcement partners*.

“Today’s sentencing is a direct result of the hard work and collaboration between HSI and our law enforcement partners. This extensive investigation highlights our unwavering commitment to protecting our country and communities from the dangers of illegal firearms trafficking,” said Shawn Gibson, Special Agent in Charge of HSI San Diego. “We will continue to work tirelessly to ensure that the drug trafficking organizations are disrupted and held accountable.”

“Guns and ammunition smuggled into Mexico support cartels and empower drug traffickers,” said U.S. Attorney Tara McGrath. “This case continues to deal blow after blow to that infrastructure, sending a clear message: DOJ will prosecute every angle of cartel operations — from drug importation to money laundering to arms trafficking — to combat death and destruction on both sides of the border.”

The Valenzuela TCO was one of the largest importers of cocaine into the United States. The TCO sourced cocaine and other controlled substances (including fentanyl, heroin, methamphetamine, and marijuana) from South America and Mexico, transported the drugs to multiple locations along the U.S.-Mexico border using commercial trucking companies, smuggled the drugs into the country, and distributed them throughout the United States. The TCO then smuggled the bulk cash proceeds from its drug trafficking activities back to the TCO’s leadership in Mexico.

According to court records, throughout 2020, the Valenzuela TCO, including one of its leaders, Jorge Alberto Valenzuela Valenzuela, was engaged in violent conflict with another component of the Sinaloa Cartel led by Ivan Archivaldo Guzman-Salazar. During this conflict, Jorge’s brother and previous TCO leader, Gabriel Valenzuela-Valenzuela, was killed. This led the Valenzuela TCO to procure large quantities of firearms, ammunition, tactical gear, armored vehicles, and ballistic vests. A considerable number of these items were sourced from within the United States and clandestinely smuggled into Mexico, using numerous arms trafficking networks.

During the multi-year investigation, agents identified Keith Octavio Rodriguez Padilla as a firearms and ammunition trafficker and broker for the TCO. Rodriguez Padilla and his co-conspirators worked with high-ranking organization members to supply firearms to the TCO. These firearms ranged from .50 caliber rifles, submachine guns, and grenade launchers to assault style rifles (AK-47s, AR-15s, FN SCARs) and handguns. In addition to the weapons, Rodriguez Padilla and his co-conspirators supplied tens of thousands of rounds of ammunition to the TCO. Some of these weapons and ammunition were acquired in the United States, including from California, Arizona, and Nevada, and then smuggled through the Ports of Entry in San Diego and Arizona to Mexico.

For example, on Nov. 20, 2020, DEA and HSI agents initiated surveillance at a commercial truck yard being operated by the Valenzuela TCO in the Otay Mesa area of San Diego. Agents ultimately obtained a search warrant for this truck yard and during the search, seized approximately $3,078,880 in bulk U.S. currency, approximately 685 kilograms of cocaine, 24 kilograms of fentanyl, and a pickup truck with a trap gas tank the size of half the truck bed were discovered. The truck yard contained numerous tractors-trailers, along with numerous other vehicles. Inside one of the trailers, agents seized approximately 20,000 rounds of .50 caliber ammunition, along with approximately 427 ballistic plate carriers, approximately 1,000 rounds of .40 caliber ammunition, and approximately 104 magazines for .50 caliber ammunition. Agents learned that Rodriguez Padilla had purchased the .50 caliber ammunition on behalf of the TCO.

To date, this investigation has resulted in charges against 109 defendants and the seizure of approximately 2,000 kilograms of cocaine and fentanyl, more than $16 million in cash, and 21,000 rounds of ammunition.

“Weapons trafficking fuels drug-related violence,” said DEA Special Agent in Charge Brian Clark. “Money and greed are the foundation of the Sinaloa cartel business model and Padilla provided a lifeline by trafficking firearms. This sentence underscores our commitment to aggressively pursue the Sinaloa Cartel at every level, to include all facilitators who profit from drug-related violence. Strong relationships between law enforcement agencies have proven invaluable as we work together to save lives.”

“This multi-year investigation and lengthy federal prison sentence highlights the hard work, dedication, and cooperation of multiple law enforcement agencies to disrupt and dismantle violent transnational criminal organizations,” said FBI Acting Special Agent in Charge Travis Holland. “Today’s sentence serves as a reminder, we will continue to leverage the strength of federal, state, and local law enforcement to bring justice against the Cartels and individuals working on their behalf.”

“Mr. Padilla’s role in trafficking weapons and ammunition not only facilitated violence between cartel organizations, but also facilitated the endangerment of American citizens as these transnational criminal organizations bring dangerous and deadly drugs into the United States,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “This sentencing demonstrates the result of well-coordinated investigations and the effectiveness of our partnered investigations. Protecting American citizens is the number one priority for every law enforcement organization, and IRS-CI is proud to be a partner in this investigation.”

This case is being prosecuted by Assistant U.S. Attorneys Matthew J. Sutton and Mikaela Weber.

This prosecution is part of an Organized Crime Drug Enforcement Task Forces Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations.

*DEA, FBI, IRS – Criminal Investigation, United States Marshals Service, Customs and Border Protection (CBP) Office of Field Operations, CBP’s Office of Border Patrol, Department of Justice (DOJ), Organized Crime Drug Enforcement Task Forces, DOJ Office of Enforcement Operations, DOJ Office of International Affairs, San Diego County Sheriff’s Department, San Diego Police Department, Border Crime Suppression Team and San Diego County District Attorney’s Office.

MIL OSI USA News –

February 7, 2025
MIL-OSI USA: 7 Connecticut gang members charged with murder and racketeering offenses
Source: US Immigration and Customs Enforcement

HARTFORD, Conn. — A grand jury in Hartford returned a 15-count indictment on Jan. 8 charging seven alleged members of a violent Hartford gang with participating in a years-long interstate racketeer influenced and corrupt organizations act (RICO) conspiracy involving multiple murders, attempted murder, gun trafficking, extortion, arson, drug trafficking, and other crimes.

The wide-ranging conspiracy was uncovered through a joint investigation by Homeland Security Investigations (HSI) with the FBI, and ATF alongside state and local partners in Connecticut and Vermont.

The indictment alleges that the Hoodstar Gzz gang, which since its forming in 2010 has referred to itself by a variety of names, including “Hoodstars,” “Hoodstarz,” and “Gz,” generally operates between Capen, Westland, Enfield, and Main Streets in Hartford. The gang has allegedly distributed narcotics; engaged in multiple violent acts against rival gang members and others, including multiple shootings and murders; trafficked narcotics in Vermont; moved firearms from Vermont to Connecticut; utilized stolen vehicles in furtherance of the gang’s affairs and burned vehicles that were used in the commission of crimes; and recorded and distributed rap music to promote the gang’s criminal activity.

“Criminal gangs terrorize communities, leaving violence and destruction in their wake,” said Special Agent in Charge Michael J. Krol of HSI New England. “These individuals have been charged with crimes ranging from firearms possession to murder and, if convicted, will face serious federal prison time. HSI works with our state, local, and federal partners to dismantle criminal gangs like the Hoodstar Gzzs and help communities reclaim their safety and their streets.”

“This indictment — which is the first RICO indictment since the launch of the Violent Crime Initiative (VCI) in Hartford in April 2024 — alleges that the defendants engaged in numerous violent acts, including shooting at suspected rival gang members and shooting and killing a motorist with whom two of the defendants got into a car accident,” said Principal Deputy Assistant Attorney General Brent S. Wible, head of the Justice Department’s Criminal Division. “Violent gangs like the Hoodstars terrorize local communities and threaten safety across Hartford. Today’s announcement demonstrates that the VCI is already making an impact in Hartford, through the deployment of Criminal Division resources, in close coordination with our partners, to target the specific drivers of violent crime and hold gang members accountable for their crimes.”

“We allege that members of the Hoodstar Gzz have engaged in murder and numerous other violent acts against both rival gang members and innocent civilians, and their criminal activity extended to northern Vermont, where they trafficked drugs and acquired firearms, some of which they transported back to Connecticut,” said U.S. Attorney Vanessa Roberts Avery for the District of Connecticut. “This case is a clear demonstration of our commitment to relentlessly pursue and dismantle organizations that threaten the peace and security of our communities. The effort to connect these violent acts and bring these individuals to justice has been a collaborative one, and I want to thank the federal, state, and local law enforcement agencies involved for their dedication to make our communities, both here in Connecticut and in Vermont, safer.”

The indictment charges the following defendants, all of Hartford:
- Angel Rivera, also known as Rico and Slatt, 24, is charged with RICO conspiracy, murder in aid of racketeering, use of a firearm to cause death, use of a firearm during the murder, and drug trafficking conspiracy.
- Raquan Knight, also known as RQ, 21, is charged with RICO conspiracy and drug trafficking conspiracy.
- Paul Downer, also known as Luap Benji, 28, is charged with RICO conspiracy and drug trafficking conspiracy.
- Mekhi Thompson, also known as Midnight, 24, is charged with RICO conspiracy, murder in aid of racketeering, use of a firearm to cause death, use of a firearm during murder, and drug trafficking conspiracy.
- Paul Clarke, also known as Tommy Bunz, 30, is charged with RICO conspiracy and drug trafficking conspiracy.
- Tyshon Walker, also known as Pone Gwapoo, 26, is charged with RICO conspiracy, drug trafficking conspiracy, and possessing a machinegun during a drug trafficking offense.
- Joshua Cruz, also known as Hop-out Curly, 24, is charged with RICO conspiracy, drug trafficking conspiracy, and possessing a machinegun during a drug trafficking offense.
Among the violent acts committed by the defendants, the indictment alleges that:
- On April 16, 2019, Thompson allegedly attempted to murder members of a rival gang, which resulted in gunshot wounds to three individuals.
- On Jan. 22, 2021, Downer allegedly shot a victim in the femoral artery for failure to pay a drug debt.
- On April 10, 2021, Rivera, Knight, Cruz, and other Hoodstar Gzz members and associates allegedly shot and killed a member of the rival Ave gang and wounded another individual.
- On Jan. 18, 2022, Rivera, Walker, Cruz, and other Hoodstar Gzz members and associates allegedly shot at one victim and shot and injured another.
- On Jan. 18, 2022, Rivera, Walker, Cruz, and other Hoodstar Gzz members and associates allegedly shot and killed one victim and shot and injured another.
- On June 19, 2022, Knight allegedly shot one victim.
- On Aug. 1, 2022, Rivera and other members and associates of the Hoodstar Gzz gang allegedly shot and killed one victim and shot and injured two additional individuals.
- On Sept. 14, 2022, Thompson and Rivera allegedly got into a confrontation with a victim over a rental car that Thompson failed to return. Thompson then shot and killed the victim.
- On Oct. 27, 2022, Thompson and Rivera were allegedly involved in a car accident with a black Nissan sedan and fled the scene. The Nissan followed them for approximately 1.6 miles. Thompson then allegedly exited the vehicle and shot and killed the driver of the Nissan.
If convicted, each defendant faces a maximum penalty of life in prison. All defendants are currently detained pending trial. A federal district judge will determine any sentence after considering U.S. Sentencing Guidelines and other statutory factors.

The HSI New England Hartford Resident Agent in Charge office conducted the investigation with FBI and ATF. Valuable assistance was provided by the Hartford Police Department, the East Hartford Police Department, the Windsor Police Department, the Connecticut State Police, the Connecticut Department of Correction, the St. Johnsbury Police Department, the Northfield Police Department, and the Vermont State Police.

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

Follow us on X, formerly known as Twitter, at @HSINewEngland to learn more about HSI’s global missions and operations.

MIL OSI USA News –
February 7, 2025
MIL-OSI Security: Columbus Man Sentenced to 17 Years in Prison for Four Armed Robberies of Postal Carriers
Source: Federal Bureau of Investigation (FBI) State Crime Alerts (c)

COLUMBUS, Ohio – A Columbus man was sentenced in U.S. District Court today to 204 months in prison for four armed robberies of Postal carriers.

Thierno S. Bah, 22, of Columbus, used firearms and robbed postal carriers of their U.S. Postal Service keys on four occasions between December 2022 and May 2023. He was arrested in August 2023.

“Seventeen years in federal prison is a serious consequence in line with the seriousness of this type of violent crime. We have held numerous individuals accountable in the Southern District of Ohio in recent years for their crimes against United States Postal Service carriers who are simply doing their jobs. As a result of our focused efforts and the vigorous investigations by our federal law enforcement partners, we’ve seen a decrease in new assaults,” said U.S. Attorney Kenneth L. Parker.

Bah, who is also known as “Wopo” and “Wopoonese,” worked with others to steal service keys, which are then used to steal mail from USPS receptacles (a process known as “fishing”). Individuals then “cook” the mail by washing personal and business checks and other financial instruments to reflect new payees and new payment amounts. Bah and others would then recruit third parties to deposit the newly washed checks in their own accounts and split the profit.

The thefts occurred in Central Ohio on:
- Dec. 29, 2022
- Jan. 3, 2023 (two separate robberies on this date)
- May 11, 2023
Bah pleaded guilty in November 2023 and admitted to using a handgun to rob a postal carrier in German Village on Dec. 29, 2022. Bah pointed the handgun at the victim’s stomach and demanded his vehicle and service keys.

On Jan. 3, 2023, Bah pushed a postal carrier into her mail truck while she was sorting mail in the back of the truck on East Columbus Street. He then pushed a gun into the victim’s side before stealing her keys.

Later that day, Bah committed another armed postal robbery, this time in Whitehall. Bah approached the victim and pushed the handgun into her stomach before stealing her personal car keys and the USPS service keys.

On May 11, 2023, Bah robbed a Postal worker at the Post Office Retail Store on West Broad Street. Bah approached the victim while she was outside on a break. Bah asked the victim for her keys, and when she asked, “What keys?” he pistol-whipped her in the head with his handgun. Bah forcibly accompanied the victim into the post office to retrieve her service keys.

Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Elena Iatarola, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Lesley Allison, Inspector in Charge, U.S. Postal Inspection Service (USPIS); Columbus Police Chief Elaine Bryant; Westerville Police Chief Charles Chandler; and Whitehall Police Chief Mike Crispen announced the sentence imposed today by U.S. District Judge Algenon L. Marbley. Assistant United States Attorney Noah R. Litton is representing the United States in this case.

# # #

MIL Security OSI –
February 7, 2025
MIL-OSI Security: FBI Statement on Agent-Involved Shooting

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

The FBI is reviewing an agent-involved shooting which occurred on February 5, 2025, at approximately 4 p.m. in Caldwell, Idaho. One subject was wounded.

The FBI takes all shooting incidents involving our agents or task force members seriously. In accordance with FBI policy, the shooting incident is under review by the FBI’s Inspection Division. As this is an ongoing matter, we have no further details to provide.

MIL Security OSI –

February 7, 2025
MIL-OSI Security: Eleven Members And Associates Of Paterson Based Gang Known As “100k” Indicted For Racketeering For Their Roles In A Murder, Three Shootings, Two Robberies, Drug Trafficking Activities, Bank Fraud, And Other Crimes

Source: Office of United States Attorneys

NEWARK, N.J. – Eleven members of the Paterson based neighborhood street gang known as “100k” were indicted for their roles in a violent racketeering conspiracy, Acting U.S. Attorney Vikas Khanna announced today.

The Indictment charges Jasun Allah, a/k/a “Rackz,” 21, of Paterson (“J.Allah”); Christopher Thomas, a/k/a “CJ,” 27, of Hackensack; Michael Davis, a/k/a “Baby 3,” 27, of Paterson; Jazmeir Reyes, a/k/a “Baby Joe,” a/k/a “Joe,” 19, of Paterson; Kyzeik Robinson, a/k/a “Doo Doo,” a/k/a “King Sparks,” a/k/a “Sparks,” 19, of Paterson; Jacim Pitts, a/k/a “Jefe,” 24, of Paterson; Born Allah, a/k/a “Freedom,” 23, of Paterson (“B.Allah”); Elijah Rubio, a/k/a “Lottery,” 20, of Paterson; Trasean Short, a/k/a “Hound,” 19, of Elmwood Park; Elijah Byrd, a/k/a “CEO,” 19, of Paterson; and Quincy Franklin, a/k/a “Double O,” 27, of Paterson with one count of conspiracy to violate the Racketeer Influenced Corrupt Organizations statute (“RICO”), in violation of Title 18, United States Code, Section 1962(d) (“RICO conspiracy”). The Indictment also incorporates charges connected to a drug conspiracy involving Reyes, Davis, Robinson, and Pitts and the attempted armed robbery of a postal inspector by Reyes, which were previously charged on complaint.

These charges are the result of a long-running investigation coordinated between the Bureau of Alcohol, Tobacco, Firearms and Explosives, the New Jersey State Police, the United States Postal Inspection Service, and the Passaic County Sheriff’s Office, among other law enforcement agencies.

According to documents filed in this case and statements made in court:

J.Allah, Thomas, Davis, Reyes, Robinson, Pitts, B.Allah, Rubio, Short, Byrd, and Franklin are all members and associates of the neighborhood based street gang known as “100k,” which operates in the area of North Main Street and Jefferson Street in Paterson, New Jersey (the “100k Enterprise”). Since in or around January 2022, these members and associates of the 100k Enterprise have engaged in numerous criminal acts in furtherance of their gang, including murder, shootings, robberies, drug trafficking, and bank and wire fraud.

Since the gangs founding in 2016, members and associates of the 100k Enterprise have engaged in acts of violence against members of rival gangs, such as their primary rival, “the Blockboyz,” which operates out of the Presidential Tower Housing Complex in Paterson, among other rival gangs, such as “4k,” which operates in the area of Rosa Parks Boulevard near Lyon Street, Keen Street, and Mercer Street, also in Paterson.

Several of these acts of violence are charged in the Superseding Indictment. Specifically, on or about October 1, 2023, in retaliation for the death of a high ranking member of the 100k Enterprise, J.Allah, Thomas, Davis, and other members and associates of the 100k Enterprise shot and killed Victim-2, in territory controlled by the Blockboyz.

On or about May 27, 2024, Pitts and other members and associates of the 100k Enterprise shot and injured Victim-3, a member of the rival gang “4k.”

On or about October 3, 2024, Short exchanged fire with Victim-4 in territory controlled by the 100k Enterprise. Weeks later, on or about November 17, 2024, Short shot and injured Victim-5, a member of the Blockboyz, in territory controlled by the Blockboyz, and Byrd acted as the driver in that November shooting.

The defendants raised money for themselves and the 100k Enterprise by engaging in robberies, drug trafficking, and bank fraud and other financial schemes. Two such robberies are charged in the Indictment, including the armed robbery of a commercial marijuana store on or about January 13, 2022 by Reyes, B.Allah, Short, Rubio, and others; and the attempted armed robbery of Victim-1, a United States Postal Service employee, on or about July 28, 2023 by Reyes, who tried to obtain an arrow key from the victim. This arrow key would have allowed members of the 100k Enterprise to gain access to United States Postal Service mailboxes within a certain geographic area or postal route.

The gang’s drug trafficking activities were extensive, with investigators conducting 16 controlled buys with Reyes, Robinson, Davis, and Pitts by utilizing undercover officers and observing countless more drug deals committed by the defendants within and around the territory of Paterson controlled by the 100k Enterprise through physical surveillance and review of cell phone records and social media accounts controlled by the defendants.

The charge of RICO conspiracy in the Indictment carries a maximum statutory penalty of life in prison as to J.Allah, Thomas, and Davis, and a maximum statutory penalty of 20 years in prison as to Reyes, Robinson, Pitts, B.Allah, Rubio, Short, Byrd, and Franklin.

The count of conspiracy to distribute controlled substances charged in the Indictment against Reyes, Robinson, Davis, and Pitts carries a mandatory minimum term of 5 years in prison and a maximum penalty of 40 years in prison and a fine of at least $5 million. On each of the counts of distribution and possession with intent to distribute controlled substances, Reyes, Robinson, Davis, and Pitts face a maximum penalty of 20 years in prison and a maximum fine of $1 million.

On each of the counts of attempted Hobbs Act robbery and assaulting or impeding certain United States officers or employees, Reyes faces a maximum penalty of 20 years’ imprisonment and up to a $250,000 fine, or twice the gain or loss from the offense, whichever is greatest. On the count of brandishing a firearm in connection with a crime of violence, Reyes faces a mandatory minimum term of 7 years and a maximum term of life imprisonment, which must run consecutively to any other prison sentence imposed, and a fine of up to $250,000.

Acting U.S. Attorney Khanna credited law enforcement members with the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Special Agent in Charge L.C. Cheeks, Jr.; the New Jersey State Police, Gangs and Organized Crime North Unit, under the direction of Col. Patrick J. Callahan; the United States Postal Inspection Service, under the direction of Inspector in Charge Christopher Nielsen; the Passaic County Sheriff’s Office, under the direction of Sheriff Thomas Adamo; the Paterson Police Department, under the direction of Officer In Charge Patrick Murray; the Bergen County Sheriff’s Office under the direction of Sheriff Anthony Cureton; the Passaic County Prosecutor’s Office under the direction of Prosecutor Camelia Valdes; and the Bergen County Prosecutor’s Office under the direction of Prosecutor Mark Musella with the investigation leading to today’s charges.

This case is part of the Paterson Violent Crime Initiative (VCI), which was formed in 2020 by the U.S. Attorney’s Office for the District of New Jersey, the Passaic County Prosecutor’s Office, and the City of Paterson’s Department of Public Safety for the purpose of combatting violent crime in and around Paterson. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the Drug Enforcement Administration, the U.S. Marshals, the Paterson Department of Public Safety, the Paterson Police Department, the Passaic County Prosecutor’s Office, the Passaic County Sheriff’s Office, N.J. State Parole, Bergen County Jail, N.J. State Police Regional Operations and Intelligence Center/Real Time Crime Center, and N.J. Department of Corrections.

The government is represented by Assistant U.S. Attorney Jake A. Nasar of the Criminal Division in Newark.

MIL Security OSI –

February 7, 2025

MIL-OSI: Glen Burnie Bancorp Announces Fourth Quarter and Full Year 2024 Results

Source: GlobeNewswire (MIL-OSI)

GLEN BURNIE, Md., Feb. 06, 2025 (GLOBE NEWSWIRE) — Glen Burnie Bancorp (“Bancorp”) (NASDAQ: GLBZ), the bank holding company for The Bank of Glen Burnie (“Bank”), announced today net loss of $39,000, or -$0.01 per basic and diluted common share, for the three-month period ended December 31, 2024, compared to net income of $167,000, or $0.06 per basic and diluted common share, for the three-month period ended December 31, 2023. Bancorp reported a net loss of $112,000, or -$0.04 per basic and diluted common share, for the twelve-month period ended December 31, 2024, compared to net income of $1.4 million, or $0.50 per basic and diluted common share, for the same period in 2023. On December 31, 2024, Bancorp had total assets of $358.9 million. Bancorp is the oldest independent commercial bank in Anne Arundel County.

“Our financial performance in 2024 is disappointing and represents the challenges inherent in navigating the interest rate environment of the last several years. The Company’s focus on generating additional interest-earning assets at higher current market interest rates and rebuilding our base of core, low-cost deposits was moderately successful,” said Mark C. Hanna, President, and Chief Executive Officer. “Despite the challenges of declining net interest income, the Company’s financial strength is reflected in a strong capital position, available liquidity, and prudent expense management. Although interest expense increased significantly in year over year comparisons, loan growth of $28.9 million and higher yields on earning assets contributed to expanded interest income that partially offset higher interest expense and helped mitigate margin compression.”

In closing, Mr. Hanna added, “To invest in strategic opportunities that will benefit the long-term performance of the Bank, the difficult decision was made to change the longstanding practice of approving quarterly cash dividends for shareholders. As the Bank evaluates our next 75 years, we are committed to our business model and the economic strength of the communities we serve. To better serve the evolving needs of our clients, there is a need to reinvest in our people, technology, products, and facilities. Based on our capital levels, conservative underwriting policies, on- and off-balance sheet liquidity, strong loan diversification, and current economic conditions within the markets we serve, management expects to navigate the uncertainties and remain well-capitalized. Our focus remains continued execution on our strategic priorities to generate organic loan and deposit growth.”

Highlights for the Quarter and Year ended December 31, 2024

Despite growth in loans and deposits for the twelve-month period ending December 31, 2024, net interest income decreased $1.2 million, or 9.84% to $10.9 million through December 31, 2024, as compared to $12.1 million during the same period of 2023. The decrease resulted primarily from a $3.1 million increase in interest expenses, offset by a $1.9 million increase in interest and fees on loans. The $2.0 million increase in interest on deposits was driven by the higher cost of money market deposit balances. The $1.0 million increase in interest on borrowings was driven by a $20.1 million increase in the average balance of borrowed funds due to the elevated level of deposit runoff that occurred in 2023.

Total interest income increased $1.9 million to $15.2 million for the twelve-month period ending December 31, 2024, compared to the same period in 2023 as the result of a $1.9 million increase in interest and fees on loans. The increase in interest income was driven by rate adjustments on loans offerings consistent with the higher interest rate environment. However, loan pricing pressure/competition will continue to place pressure on the Company’s net interest margin.

The Company expects that its strong liquidity and capital positions, along with the Bank’s total regulatory capital to risk weighted assets of 16.40% on December 31, 2024, compared to 18.40% for the same period of 2023, will provide ample capacity for future growth.

Return on average assets for the three-month period ended December 31, 2024, was -0.04%, compared to 0.19% for the three-month period ended December 31, 2023. Return on average equity for the three-month period ended December 31, 2024, was -0.75%, compared to 4.65% for the three-month period ended December 31, 2023. Lower net income and higher average balances drove the lower return on average assets and the lower return on average equity.

The cost of funds was 1.38% for the quarter ended December 31, 2024, compared to 0.64% for the quarter ended December 31, 2023. The 0.74% increase was primarily driven by the increase in the cost of money market deposits and borrowed funds.

The book value per share of Bancorp’s common stock was $6.14 on December 31, 2024, compared to $6.70 per share on December 31, 2023. The decrease was primarily due to the increase in unrealized losses on available for sale securities caused by higher market interest rates.

On December 31, 2024, the Bank remained above all “well-capitalized” regulatory requirement levels. The Bank’s tier 1 risk-based capital ratio was approximately 15.15% on December 31, 2024, compared to 17.37% on December 31, 2023. Liquidity remained strong due to managed cash and cash equivalents, borrowing lines with the FHLB of Atlanta, the Federal Reserve and correspondent banks, and the size and composition of the bond portfolio.

Balance Sheet Review

Total assets were $358.9 million on December 31, 2024, an increase of $7.1 million or 2.03%, from $351.8 million on December 31, 2023. Investment securities decreased by $31.5 million or 22.58%, to $107.9 million as of December 31, 2024, compared to $139.4 million for the same period of 2023. Loans, net of deferred fees and costs, were $205.2 million on December 31, 2024, an increase of $28.9 million or 16.40%, from $176.3 million on December 31, 2023. Cash and cash equivalents increased $9.2 million or 60.51%, from $15.2 million on December 31, 2023, to $24.4 million on December 31, 2024.

Total deposits were $309.2 million on December 31, 2024, an increase of $9.1 million or 3.04%, from $300.1 million on December 31, 2023. Noninterest-bearing deposits were $100.7 million on December 31, 2024, a decrease of $16.2 million or 13.83%, from $116.9 million on December 31, 2023. Interest-bearing deposits were $208.4 million on December 31, 2024, an increase of $25.3 million or 13.81%, from $183.1 million on December 31, 2023. Total borrowings were $30.0 million on December 31, 2024, unchanged from December 31, 2023.

As of December 31, 2024, total stockholders’ equity was $17.8 million (4.96% of total assets), equivalent to a book value of $6.14 per common share. Total stockholders’ equity on December 31, 2023, was $19.3 million (5.49% of total assets), equivalent to a book value of $6.70 per common share. The decrease in the ratio of stockholders’ equity to total assets was primarily due to the $1.5 million decline in net earnings for the year ended December 31, 2024 compared to the prior year, the $0.6 million after-tax increase in market value loss on the Company’s available-for-sale securities portfolio and a $7.1 million increase in total assets. The increase in unrealized losses primarily resulted from increasing market interest rates year-over-year, which decreased the fair value of the investment securities.

Asset quality, which has trended within a narrow range over the past several years, remained sound on December 31, 2024. Nonperforming assets, which consist of nonaccrual loans, loans to borrowers experiencing financial difficulty, accruing loans past due 90 days or more, and other real estate owned (“OREO”), represented 0.10% of total assets on December 31, 2024, compared to 0.15% on December 31, 2023. The $7.1 million increase in total assets from December 31, 2023, to December 31, 2024, and the $167,000 decrease in nonperforming assets drove the 0.05% decline. The allowance for credit losses on loans was $2.8 million, or 1.38% of total loans, as of December 31, 2024, compared to $2.2 million, or 1.22% of total loans, as of December 31, 2023. The allowance for credit losses for unfunded commitments was $584,000 as of December 31, 2024, compared to $473,000 as of December 31, 2023.

Review of Financial Results

For the three-month periods ended December 31, 2024, and 2023

Net loss for the three-month period ended December 31, 2024, was $39,000, compared to net income of $167,000 for the three-month period ended December 31, 2023.

Net interest income for the three-month period ended December 31, 2024, totaled $2.8 million, a decrease of $128,000 from the three-month period ended December 31, 2023. Despite a $520,000 increase in interest income, the decrease in net interest income was primarily due to a $648,000 increase in interest expenses predominantly related to the advantage money market deposit product.

Net interest margin for the three-month period ended December 31, 2024, was 2.98%, compared to 3.17% for the same period of 2023. Higher average yields and balances on interest-earning assets combined with higher average interest-bearing funds, lower average noninterest-bearing funds, and higher cost of funds were the primary drivers of year-over-year results.

The average balance of interest-earning assets increased $7.1 million while the yield increased 0.50% from 3.77% to 4.27%, when comparing the three-month periods ending December 31, 2023, and 2024, respectively. The average balance of interest-bearing funds increased $28.9 million, the average balance of noninterest-bearing funds decreased $21.3 million, and the cost of funds increased 0.74%, when comparing the three-month periods ending December 31, 2023, and 2024, respectively.

The average balance of interest-bearing deposits in banks and investment securities decreased $22.1 million from $185.9 million to $163.8 million for the fourth quarter of 2024, compared to the same period of 2023 while the yield increased 0.01% from 2.68% to 2.69% during that same period.

Average loan balances increased $29.2 million to $204.7 million for the three-month period ended December 31, 2024, compared to $175.5 million for the same period of 2023, while the yield increased from 4.96% to 5.54% during that same period. The increase in loan yields for the fourth quarter of 2024 reflected continued runoff of the low-yielding indirect automobile loan portfolio and new loan originations at higher yields.

The provision of allowance for credit loss on loans for the three-month period ended December 31, 2024, was $71,000, compared to $103,000 for the same period of 2023.

Noninterest income for the three-month period ended December 31, 2024, was $332,000, compared to $299,000 for the three-month period ended December 31, 2023, an increase of $33,000 or 11.04%. The increase was primarily driven by a $31,000 casualty gain due to insurance proceeds exceeding the book value of assets destroyed by water damage.

For the three-month period ended December 31, 2024, noninterest expense was $3.1 million, compared to $2.9 million for the three-month period ended December 31, 2023, an increase of $171,000 or 5.82%. The primary contributors to the $171,000 increase, when compared to the three-month period ended December 31, 2023, were increases in salary and employee benefits, legal, accounting, and other professional fees, data processing and item processing services and other expenses.

For the twelve-month periods ended December 31, 2024, and 2023

Net loss for the twelve-month period ended December 31, 2024, was $112,000, compared to net income of $1.4 million for the twelve-month period ended December 31, 2023.

Net interest income for the twelve-month period ended December 31, 2024, totaled $10.9 million, a decrease of $1.2 million from $12.1 million for the twelve-month period ended December 31, 2023. The decrease in net interest income was primarily due to a $3.1 million increase in interest expenses related to growth of the advantage money market deposit product balances and short-term borrowings necessitated by the deposit runoff during 2023, offset by $1.9 million higher interest and fees on loans.

Net interest margin for the twelve-month period ended December 31, 2024, was 2.98%, compared to 3.31% for the same period of 2023. Higher average yields and lower average balances of interest-earning assets combined with higher average interest-bearing funds, lower average noninterest-bearing funds, and higher cost of funds were the primary drivers of year-over-year results.

The average balance of interest-earning assets decreased $252,000, while the yield increased 0.52% from 3.63% to 4.15%, when comparing the twelve-month periods ending December 31, 2023, and 2024, respectively. The average balance of interest-bearing funds increased $20.2 million, the average balance of noninterest-bearing funds decreased $20.3 million, and the cost of funds increased 0.90%, when comparing the twelve-month periods ending December 31, 2023, and 2024, respectively.

The average balance of interest-bearing deposits in banks and investment securities decreased $13.1 million from $187.4 million to $174.3 million for the twelve-month period ending December 31, 2024, compared to the same period of 2023. The yield increased 0.16% from 2.55% to 2.71% during that same period. The increase in yields for the twelve-month period can be attributed to the change in the mix of cash balances held in interest-bearing deposits in banks and investment securities available for sale and increases in the overnight federal funds rate between the years.

Average loan balances increased $12.8 million to $192.6 million for the twelve-month period ended December 31, 2024, compared to $179.8 million for the same period of 2023. The yield increased 0.69% from 4.76% to 5.45% during that same period. The increase in loan yields for the twelve-month period ending December 31, 2024, reflected continued runoff of the low-yielding indirect automobile loan portfolio and new loan originations at higher yields.

The Company recorded a provision of allowance for credit loss on loans of $844,000 for the twelve-month period ending December 31, 2024, compared to $96,000 for the same period in 2023. The $748,000 increase in the provision in 2024 compared to 2023, primarily reflects a $61,000 increase in net charge offs, a $28.2 million increase in the reservable balance of the loan portfolio and a 0.16% increase in the current expected credit loss percentage. As a result, the allowance for credit loss on loans was $2.8 million on December 31, 2024, representing 1.38% of total loans, compared to $2.2 million, or 1.22% of total loans on December 31, 2023.

Noninterest income for the twelve-month period ended December 31, 2024, was $1.2 million, compared to $1.1 million for the twelve-month period ended December 31, 2023, an increase of $57,000 or 5.20%. The increase was driven primarily by a $52,000 increase in other fees and commissions which included a $31,000 casualty gain due to insurance proceeds exceeding the book value of assets destroyed by water damage.

For the twelve-month period ended December 31, 2024, noninterest expense was $11.9 million, compared to $11.6 million for the twelve-month period ended December 31, 2023. The primary contributors to the $253,000 increase when compared to the twelve-month period ended December 31, 2023, were increases in legal, accounting, and other professional fees, occupancy and equipment expenses, and other expenses which included the allowance for unfunded commitments, partially offset by decreases in salary and employee benefits costs.

Glen Burnie Bancorp Information

Glen Burnie Bancorp is a bank holding company headquartered in Glen Burnie, Maryland. Founded in 1949, The Bank of Glen Burnie® is a locally owned community bank with seven branch offices serving Anne Arundel County. The Bank is engaged in the commercial and retail banking business including the acceptance of demand and time deposits, and the origination of loans to individuals, associations, partnerships, and corporations. The Bank’s real estate financing consists of residential first and second mortgage loans, home equity lines of credit and commercial mortgage loans. The Bank also originates automobile loans through arrangements with local automobile dealers. Additional information is available at www.thebankofglenburnie.com.

Forward-Looking Statements

The statements contained herein that are not historical financial information may be deemed to constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks and uncertainties, which could cause the company’s actual results in the future to differ materially from its historical results and those presently anticipated or projected. These statements are evidenced by terms such as “anticipate,” “estimate,” “should,” “expect,” “believe,” “intend,” and similar expressions. Although these statements reflect management’s good faith beliefs and projections, they are not guarantees of future performance and they may not prove true. For a more complete discussion of these and other risk factors, please see the company’s reports filed with the Securities and Exchange Commission.


GLEN BURNIE BANCORP AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(dollars in thousands)


	December 31,			September 30,			December 31,
	2024			2024			2023
	(unaudited)			(unaudited)			(audited)
ASSETS
Cash and due from banks	$	2,012		$	2,255		$	1,940
Interest-bearing deposits in other financial institutions		22,452			20,207			13,301
Total Cash and Cash Equivalents		24,464			22,462			15,241

Investment securities available for sale, at fair value		107,949			119,958			139,427
Restricted equity securities, at cost		1,671			246			1,217

Loans, net of deferred fees and costs		205,219			206,975			176,307
Less: Allowance for credit losses		(2,839	)		(2,748	)		(2,157	)
Loans, net		202,380			204,227			174,150

Premises and equipment, net		2,630			2,723			3,046
Bank owned life insurance		8,834			8,789			8,657
Deferred tax assets, net		8,548			6,879			7,897
Accrued interest receivable		1,345			1,478			1,192
Accrued taxes receivable		148			497			121
Prepaid expenses		471			486			475
Other assets		516			614			390
Total Assets	$	358,956		$	368,359		$	351,813

LIABILITIES
Noninterest-bearing deposits	$	100,747		$	115,938		$	116,922
Interest-bearing deposits		208,442			198,335			183,145
Total Deposits		309,189			314,273			300,067

Short-term borrowings		30,000			30,000			30,000
Defined pension liability		330			329			324
Accrued expenses and other liabilities		1,620			2,597			2,097
Total Liabilities		341,139			347,199			332,488

STOCKHOLDERS’ EQUITY
Common stock, par value $1, authorized 15,000,000 shares, issued and outstanding 2,900,681; 2,900,681; 2,882,627; shares as of December 31, 2024, September 30, 2024, and December 31, 2023 respectively.		2,901			2,901			2,883
Additional paid-in capital		11,037			11,037			10,964
Retained earnings		22,882			22,921			23,859
Accumulated other comprehensive loss		(19,003	)		(15,699	)		(18,381	)
Total Stockholders’ Equity		17,817			21,160			19,325
Total Liabilities and Stockholders’ Equity	$	358,956		$	368,359		$	351,813

GLEN BURNIE BANCORP AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
(dollars in thousands, except per share amounts)
(unaudited)

	Three Months Ended December 31,						Twelve Months Ended December 31,
		2024			2023			2024			2023
Interest income
Interest and fees on loans	$	2,851		$	2,192		$	10,498		$	8,559
Interest and dividends on securities		773			1,082			3,379			4,147
Interest on deposits with banks and federal funds sold		332			162			1,335			631
Total Interest Income		3,956			3,436			15,212			13,337

Interest expense
Interest on deposits		818			176			2,533			513
Interest on short-term borrowings		375			369			1,738			689
Total Interest Expense		1,193			545			4,271			1,202

Net Interest Income		2,763			2,891			10,941			12,135
Provision of credit loss allowance		71			103			844			96
Net interest income after release of credit loss provision		2,692			2,788			10,097			12,039

Noninterest income
Service charges on deposit accounts		42			39			150			159
Other fees and commissions		245			217			829			777
Income on life insurance		45			43			178			164
Total Noninterest Income		332			299			1,157			1,100

Noninterest expenses
Salary and employee benefits		1,708			1,621			6,580			6,710
Occupancy and equipment expenses		330			339			1,325			1,294
Legal, accounting and other professional fees		346			301			1,115			993
Data processing and item processing services		260			250			1,016			1,005
FDIC insurance costs		42			40			161			163
Advertising and marketing related expenses		29			25			117			97
Loan collection costs		13			8			25			22
Telephone costs		44			39			154			151
Other expenses		346			324			1,398			1,203
Total Noninterest Expenses		3,118			2,947			11,891			11,638

(Loss) income before income taxes		(94	)		140			(637	)		1,501
Income tax (benefit) expense		(55	)		(27	)		(525	)		72

Net income (loss)	$	(39	)	$	167		$	(112	)	$	1,429

Basic and diluted net income (loss) per common share	$	(0.01	)	$	0.06		$	(0.04	)	$	0.50

GLEN BURNIE BANCORP AND SUBSIDIARY
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY
For the twelve months ended December 31, 2024 and 2023
(dollars in thousands)
(unaudited)

								Accumulated
			Additional					Other			Total
	Common		Paid-in		Retained			Comprehensive			Stockholders’
	Stock		Capital		Earnings			(Loss) Income			Equity
Balance, December 31, 2022	$	2,865	$	10,862	$	23,579		$	(21,252	)	$	16,054

Net income		–		–		1,429			–			1,429
Cash dividends, $0.40 per share		–		–		(1,149	)		–			(1,149	)
Dividends reinvested under dividend reinvestment plan		18		102		–			–			120
Other comprehensive income		–		–		–			2,871			2,871
Balance, December 31, 2023	$	2,883	$	10,964	$	23,859		$	(18,381	)	$	19,325


								Accumulated
			Additional					Other			Total
	Common		Paid-in		Retained			Comprehensive			Stockholders’
	Stock		Capital		Earnings			Loss			Equity
Balance, December 31, 2023	$	2,883	$	10,964	$	23,859		$	(18,381	)	$	19,325

Net loss		–		–		(112	)		–			(112	)
Cash dividends, $0.30 per share		–		–		(865	)		–			(865	)
Dividends reinvested under dividend reinvestment plan		18		73		–			–			91
Other comprehensive loss		–		–		–			(622	)		(622	)
Balance, December 31, 2024	$	2,901	$	11,037	$	22,882		$	(19,003	)	$	17,817

THE BANK OF GLEN BURNIE
CAPITAL RATIOS
(dollars in thousands)
(unaudited)

									To Be Well
									Capitalized Under
					To Be Considered				Prompt Corrective
					Adequately Capitalized				Action Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio
As of December 31, 2024:
Common Equity Tier 1 Capital	$	36,481	15.15	%	$	10,837	4.50	%	$	15,653	6.50	%
Total Risk-Based Capital	$	39,496	16.40	%	$	19,265	8.00	%	$	24,082	10.00	%
Tier 1 Risk-Based Capital	$	36,481	15.15	%	$	14,449	6.00	%	$	19,265	8.00	%
Tier 1 Leverage	$	36,481	9.97	%	$	14,640	4.00	%	$	18,300	5.00	%

As of September 30, 2024:
Common Equity Tier 1 Capital	$	36,755	15.47	%	$	10,691	4.50	%	$	15,443	6.50	%
Total Risk-Based Capital	$	39,729	16.72	%	$	19,006	8.00	%	$	23,758	10.00	%
Tier 1 Risk-Based Capital	$	36,755	15.47	%	$	14,255	6.00	%	$	19,006	8.00	%
Tier 1 Leverage	$	36,755	10.11	%	$	14,539	4.00	%	$	18,173	5.00	%

As of December 31, 2023:
Common Equity Tier 1 Capital	$	37,975	17.37	%	$	9,840	4.50	%	$	14,213	6.50	%
Total Risk-Based Capital	$	40,237	18.40	%	$	17,493	8.00	%	$	21,867	10.00	%
Tier 1 Risk-Based Capital	$	37,975	17.37	%	$	13,120	6.00	%	$	17,493	8.00	%
Tier 1 Leverage	$	37,975	10.76	%	$	14,113	4.00	%	$	17,641	5.00	%

GLEN BURNIE BANCORP AND SUBSIDIARY
SELECTED FINANCIAL DATA
(dollars in thousands, except per share amounts)


	Three Months Ended									Twelve Months Ended
	December 31			September 30			December 31			December 31			December 31
	2024			2024			2023			2024			2023
	(unaudited)			(unaudited)			(unaudited)			(unaudited)			(audited)

Financial Data
Assets	$	358,956		$	368,359		$	351,813		$	358,956		$	351,813
Investment securities		107,949			119,958			139,427			107,949			139,427
Loans, (net of deferred fees & costs)		205,219			206,975			176,307			205,219			176,307
Allowance for loan losses		2,839			2,748			2,157			2,839			2,157
Deposits		309,189			314,273			300,067			309,189			300,067
Borrowings		30,000			30,000			30,000			30,000			30,000
Stockholders’ equity		17,817			21,160			19,325			17,817			19,325
Net income		(39	)		129			167			(112	)		1,429

Average Balances
Assets	$	366,888		$	364,127		$	353,085		$	363,994		$	361,731
Investment securities		136,868			142,972			174,581			148,037			173,902
Loans, (net of deferred fees & costs)		204,703			203,316			175,456			192,646			179,790
Deposits		314,046			312,019			310,168			309,838			330,095
Borrowings		30,323			30,001			26,579			32,720			12,580
Stockholders’ equity		20,664			19,559			14,253			19,169			17,105

Performance Ratios
Annualized return on average assets		-0.04	%		0.14	%		0.19	%		-0.03	%		0.40	%
Annualized return on average equity		-0.75	%		2.63	%		4.65	%		-0.58	%		8.35	%
Net interest margin		2.98	%		3.06	%		3.17	%		2.98	%		3.31	%
Dividend payout ratio		0	%		224	%		172	%		-773	%		80	%
Book value per share	$	6.14		$	7.29		$	6.70		$	6.14		$	6.70
Basic and diluted net income per share		(0.01	)		0.04			0.06			(0.04	)		0.50
Cash dividends declared per share		0.00			0.10			0.10			0.30			0.40
Basic and diluted weighted average shares outstanding		2,900,681			2,897,929			2,880,398			2,893,871			2,873,500

Asset Quality Ratios
Allowance for loan losses to loans		1.38	%		1.33	%		1.22	%		1.38	%		1.22	%
Nonperforming loans to avg. loans		0.18	%		0.14	%		0.30	%		0.19	%		0.29	%
Allowance for loan losses to nonaccrual & 90+ past due loans		789.1	%		937.5	%		409.3	%		789.1	%		409.3	%
Net charge-offs annualize to avg. loans		-0.04	%		-0.09	%		0.08	%		0.08	%		0.06	%

Capital Ratios
Common Equity Tier 1 Capital		15.15	%		15.47	%		17.37	%		15.15	%		17.37	%
Tier 1 Risk-based Capital Ratio		15.15	%		15.47	%		17.37	%		15.15	%		17.37	%
Leverage Ratio		9.97	%		10.11	%		10.76	%		9.97	%		10.76	%
Total Risk-Based Capital Ratio		16.40	%		16.72	%		18.40	%		16.40	%		18.40	%

The MIL Network –

February 7, 2025

MIL-OSI Security: Houston Man Indicted for Coercing, Enticing Minors and Sexually Exploiting a Minor to Produce Child Sexual Abuse Material

Source: Office of United States Attorneys

Baltimore, Maryland – A federal grand jury returned an indictment charging Dazhon Darien, 32, of Houston, Texas, with five counts of sexual exploitation of a child, two counts of coercion and enticement of a child, one count of receipt of child sexual abuse material, and four counts of possession of child sexual abuse material.

Erek L. Barron, U.S. Attorney for the District of Maryland, announced the charges with Special Agent in Charge William J. DelBagno of the Federal Bureau of Investigation, Baltimore Field Office, and Chief Robert McCullough, Baltimore County Police Department.

According to the indictment, between July 2023 and July 2024, the defendant persuaded, induced, enticed, and coerced a minor male to engage in sexually explicit conduct for the purpose of producing and transmitting child sexual abuse material. Additionally, the indictment alleges that the defendant enticed two minor males to engage in prohibited sexual conduct and Darien possessed child sexual abuse material in internet-based accounts and on one digital device.

If convicted, Darien faces a mandatory minimum sentence of 15 years and up to a maximum sentence of 30 years in federal prison for each of the five counts of sexual exploitation of a minor; a mandatory minimum sentence of 10 years and up to a maximum sentence of life imprisonment for each of the two counts of coercion and enticement of a child; a mandatory minimum of five years and up to a maximum of 20 years in federal prison for the single count of receipt of child sexual abuse material, and a maximum of 20 years in federal prison for each of the four counts of possession of child sexual abuse material.

Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge determines sentencing after considering the U.S. Sentencing Guidelines and other statutory factors.

An indictment is not a finding of guilt. Individuals charged by indictment are presumed innocent until proven guilty at a later criminal proceeding.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, visit www.justice.gov/psc. For more information about Internet safety education, click on the “Resources” tab on the left of the page.

U.S. Attorney Barron commended the Baltimore FBI Field Office and the Baltimore County Police Department, for their work in the investigation. Mr. Barron also thanked Assistant U.S. Attorneys Christine O. Goo and Paul E. Budlow who are prosecuting the federal case.

For more information about the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.

# # #

MIL Security OSI –

February 7, 2025
MIL-OSI Security: Defense News: Truman Strike Group Units Arrive in Greece for Port Visit

Source: United States Navy

While the strike group’s material readiness is the top priority of the visit, ensuring maintenance and upkeep across the ships and aircraft, Sailors will have the opportunity to enjoy liberty and experience Crete’s rich history and culture.

“I’m incredibly proud of the dedication and service of this team and their tireless work around the clock,” said Capt. Dave Snowden, commanding officer of USS Harry S. Truman (CVN 75). “Their efforts keep our ship operating at peak performance and aircraft ready to support combat operations.”

After entering the U.S. Central Command (CENTCOM) area of responsibility on Dec. 14, the Harry S. Truman Carrier Strike Group (HSTCSG) supported multiple self-defense strikes against targets across Iran-backed Houthi-controlled areas of Yemen. The strikes directly contributed to CENTCOM’s campaign to degrade the Houthis attempts to threaten regional partners and the free flow of commerce in the region. On Feb. 1, HSTCSG conducted airstrikes against ISIS-Somalia in support of U.S. Africa Command and in coordination with the Federal Government of Somalia.

“The Harry S. Truman Carrier Strike Group remains the most adaptable and lethal presence in theater,” said Rear Adm. Sean Bailey, commander, HSTCSG. “This port visit provides the opportunity to reset and focus on maintenance for maximum readiness ahead of future operations.”

The visit is HSTCSG’s third port visit of deployment, following stops in Oslo, Norway, and Marseille, France. NSA Souda Bay is a remote forward operating installation that enables power projection and warfighting capabilities from the Eastern Mediterranean.

“Team Souda is happy to welcome HSTCSG to Crete,” from Capt. Stephen Steacy, commanding officer, NSA Souda Bay. “As the crossroads of the 6th Fleet, we are strategically located in the Eastern Mediterranean to support our forward-deployed forces. The hospitality of the local community is unmatched, giving Sailors the opportunity for a much-needed break.”

The Dwight D. Eisenhower Carrier Strike Group (IKECSG) visited NSA Souda Bay for a similar port visit in April 2024. The IKECSG and HSTCSG have operated in the most intense period of sustained combat activity for the U.S. Navy since World War II.

The carrier strike group includes the flagship USS Harry S. Truman (CVN 75); Carrier Air Wing (CVW) 1, with eight embarked aviation squadrons; staffs from CSG-8, CVW-1, and Destroyer Squadron (DESRON) 28; the Ticonderoga-class guided-missile cruiser USS Gettysburg (CG 64); and two Arleigh Burke-class guided-missile destroyers, USS Stout (DDG 55) and USS Jason Dunham (DDG 109).

HSTCSG’s mission is to conduct prompt and sustained combat operations at sea and maintain a forward presence through sea control and power projection capabilities. For more information, visit DVIDS at https://www.dvidshub.net/unit/CVN75.

MIL Security OSI –

February 7, 2025
MIL-OSI: Toobit Named Best New Cryptocurrency Exchange at 2025 WeMoney Cryptocurrency Awards

Source: GlobeNewswire (MIL-OSI)

GEORGE TOWN, Cayman Islands , Feb. 06, 2025 (GLOBE NEWSWIRE) — Global digital asset trading platform Toobit today received awards in two categories at the 2025 WeMoney Cryptocurrency Awards. In a hotly-contested year, the exchange was able to clinch the titles of Best New Cryptocurrency Exchange and Best for Derivatives.

The annual WeMoney Cryptocurrency Awards recognise cryptocurrency platforms, exchanges, and innovators in the Australian market that offer exceptional value, asset availability, and market-leading features.

“We are deeply honoured to be recognised by the Awards this year,” said Mike Williams, Chief Communication Officer of Toobit. “In a deeply-saturated crypto market, we are thrilled to have made such an impact. These two titles are a testament to our continued commitment towards ease-of-use, security, and innovation.”

As described in WeMoney’s rigorous methodology, Toobit was able to secure the title of Best New Cryptocurrency Exchange through demonstrated success in international markets. Judging criteria also factors in how effective the exchange was in setting in place new industry benchmarks for Australian investors.

For Best for Derivatives, Toobit came out on top after being evaluated on its range of assets, feature complexity, margin trading options, risk management measures, as well as its affordability and fees.

To confirm Toobit’s win in both categories, a dedicated team of WeMoney specialists conducted a thorough and meticulous evaluation process, carefully analyzing each applicant based on customer satisfaction, platform features, and adherence to industry benchmarks.

The process began with a comprehensive self-assessment questionnaire designed to highlight both strengths and weaknesses, followed by extensive research and detailed analysis of each platform’s overall performance.

To learn more about the WeMoney Cryptocurrency Awards 2025, visit their website at https://www.wemoney.com.au/wemoney-crypto-awards-2025-winners

About Toobit

Toobit is a global crypto exchange dedicated to providing fair and transparent trading experiences. With ample liquidity and market depth, Toobit ensures efficient and secure transactions for traders worldwide and is committed to providing a secure and user-friendly environment for trading a diverse range of digital assets.

For more information about Toobit, visit: Website | X | Telegram | LinkedIn | Discord | Instagram

Contact: Davin C.

Email: market@toobit.com

Website: www.toobit.com

Disclaimer: This content is provided by Toobit. The statements, views and opinions expressed in this column are solely those of the content provider. The information provided in this press release is not a solicitation for investment, nor is it intended as investment advice, financial advice, or trading advice. It is strongly recommended you practice due diligence, including consultation with a professional financial advisor, before investing in or trading cryptocurrency and securities. Please conduct your own research and invest at your own risk.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/66e53ecc-98d5-4339-bf73-c4a1daa1fcaf

The MIL Network –

February 7, 2025
MIL-OSI USA: Louisiana Doctor Sentenced for Illegally Distributing Over 1.8M Doses of Opioids in $5.4M Health Care Fraud Scheme

Source: US State of North Dakota

A Louisiana physician was sentenced yesterday to 87 months in prison for conspiring to illegally distribute over 1.8 million doses of Schedule II controlled substances, including oxycodone, hydrocodone, and morphine, and for defrauding health care benefit programs of more than $5.4 million.

According to court documents and evidence presented at trial, Adrian Dexter Talbot M.D., 59, of Slidell, owned and operated Medex Clinical Consultants (Medex), located in Slidell. Medex was a medical clinic that accepted cash payments from individuals seeking prescriptions for Schedule II controlled substances. Talbot routinely ignored signs that individuals frequenting Medex were drug-seeking or abusing the drugs prescribed. In 2015, Talbot took a full-time job in Pineville, Louisiana, and although he was no longer physically present at the Slidell clinic, he pre-signed prescriptions, including for opioids and other controlled substances, to be distributed to individuals there whom he did not see or examine. In 2016, Talbot hired another practitioner who, at Talbot’s direction, also pre-signed prescriptions to be distributed to individuals in exchange for cash deposited into a Medex bank account. The evidence also demonstrated that Talbot falsified patient records to cover up the scheme and to make it appear as though he was routinely examining the patients. With Talbot’s knowledge, these individuals filled their prescriptions using their insurance benefits, thereby causing health care benefit programs, including Medicare, Medicaid, and Blue Cross Blue Shield of Louisiana, to be fraudulently billed for controlled substances that were prescribed without an appropriate patient examination or determination of medical necessity.

On July 22, 2024, Talbot was convicted by a jury in the Eastern District of Louisiana of one count of conspiracy to unlawfully distribute and dispense controlled substances, four counts of unlawfully distributing and dispensing controlled substances, one count of maintaining a drug-involved premises, and one count of conspiracy to commit health care fraud.

Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division, the U.S. Attorney’s Office for the Eastern District of Louisiana, Special Agent in Charge Jason E. Meadows of the Department of Health and Human Services Office of Inspector General (HHS-OIG), Special Agent in Charge Kris Raper of the Department of Veterans Affairs Office of Inspector General (VA-OIG)’s South Central Field Office, Assistant Director Chad Yarbrough of the FBI’s Criminal Investigative Division, Acting Special Agent in Charge Stephen A. Cyrus of the FBI New Orleans Field Office, and Louisiana Attorney General Liz Murrill made the announcement.

HHS-OIG, VA-OIG, FBI, and the Louisiana Medicaid Fraud Control Unit investigated the case.

Trial Attorneys Sara E. Porter and Gary A. Crosby II, Assistant Chief Justin Woodard, and Deputy Chief Kate Payerle of the Criminal Division’s Fraud Section prosecuted the case.

The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.

MIL OSI USA News –

February 7, 2025
MIL-OSI Security: Louisiana Doctor Sentenced for Illegally Distributing Over 1.8M Doses of Opioids in $5.4M Health Care Fraud Scheme

Source: United States Attorneys General

A Louisiana physician was sentenced yesterday to 87 months in prison for conspiring to illegally distribute over 1.8 million doses of Schedule II controlled substances, including oxycodone, hydrocodone, and morphine, and for defrauding health care benefit programs of more than $5.4 million.

According to court documents and evidence presented at trial, Adrian Dexter Talbot M.D., 59, of Slidell, owned and operated Medex Clinical Consultants (Medex), located in Slidell. Medex was a medical clinic that accepted cash payments from individuals seeking prescriptions for Schedule II controlled substances. Talbot routinely ignored signs that individuals frequenting Medex were drug-seeking or abusing the drugs prescribed. In 2015, Talbot took a full-time job in Pineville, Louisiana, and although he was no longer physically present at the Slidell clinic, he pre-signed prescriptions, including for opioids and other controlled substances, to be distributed to individuals there whom he did not see or examine. In 2016, Talbot hired another practitioner who, at Talbot’s direction, also pre-signed prescriptions to be distributed to individuals in exchange for cash deposited into a Medex bank account. The evidence also demonstrated that Talbot falsified patient records to cover up the scheme and to make it appear as though he was routinely examining the patients. With Talbot’s knowledge, these individuals filled their prescriptions using their insurance benefits, thereby causing health care benefit programs, including Medicare, Medicaid, and Blue Cross Blue Shield of Louisiana, to be fraudulently billed for controlled substances that were prescribed without an appropriate patient examination or determination of medical necessity.

On July 22, 2024, Talbot was convicted by a jury in the Eastern District of Louisiana of one count of conspiracy to unlawfully distribute and dispense controlled substances, four counts of unlawfully distributing and dispensing controlled substances, one count of maintaining a drug-involved premises, and one count of conspiracy to commit health care fraud.

Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division, the U.S. Attorney’s Office for the Eastern District of Louisiana, Special Agent in Charge Jason E. Meadows of the Department of Health and Human Services Office of Inspector General (HHS-OIG), Special Agent in Charge Kris Raper of the Department of Veterans Affairs Office of Inspector General (VA-OIG)’s South Central Field Office, Assistant Director Chad Yarbrough of the FBI’s Criminal Investigative Division, Acting Special Agent in Charge Stephen A. Cyrus of the FBI New Orleans Field Office, and Louisiana Attorney General Liz Murrill made the announcement.

HHS-OIG, VA-OIG, FBI, and the Louisiana Medicaid Fraud Control Unit investigated the case.

Trial Attorneys Sara E. Porter and Gary A. Crosby II, Assistant Chief Justin Woodard, and Deputy Chief Kate Payerle of the Criminal Division’s Fraud Section prosecuted the case.

The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.

MIL Security OSI –

February 7, 2025
MIL-OSI USA: Padilla, Sheehy, Hickenlooper, Daines Introduce Bipartisan Bill to Establish Unified National Wildfire Intelligence Center

US Senate News:

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

Padilla, Sheehy, Hickenlooper, Daines Introduce Bipartisan Bill to Establish Unified National Wildfire Intelligence Center

Modeled after National Weather Service and NOAA Water Center, would coordinate fire response amongst various federal, state, and academic institutions

WASHINGTON, D.C. — As Southern California rebuilds from devastating fires, U.S. Senators Alex Padilla (D-Calif.), Tim Sheehy (R-Mont.), John Hickenlooper (D-Colo.), and Steve Daines (R-Mont.) announced bipartisan legislation to create a national Wildfire Intelligence Center to streamline federal response and create a whole-of-government approach to combat wildfires. The joint office, created between the Department of Agriculture, the Department of Commerce, and the Department of the Interior, would facilitate coordination and information sharing across federal and state departments and agencies, tribal entities, academia, and the private sector on wildland fires.

At the federal level, various departments and agencies have their own fire management goals, firefighters, and jurisdictions on which they respond to fires. The current division of responsibilities leaves gaps for cross-department collaboration and is unnecessarily burdensome. A national Wildfire Intelligence Center would compile comprehensive information on wildfires to better inform and streamline wildfire responses and recovery by providing states with a central command within the federal government. This center would also increase monitoring and imaging capabilities that land management agencies currently cannot achieve.

“The devastating Southern California fires are the latest example of increasingly intense and frequent fires ravaging communities within both local jurisdictions and on federal land,” said Senator Padilla. “Wildfires don’t distinguish between our boundaries, and we can’t afford to be siloed in our response. The scale of the wildfire crisis demands a singular, whole-of-government wildfire intelligence center to foster cross-agency collaboration and save lives.”

“We can all agree that the federal government must do a better job protecting our people, property, public lands, and communities from wildfires, and this bill will go a long way in streamlining our wildland firefighting efforts and best leveraging all available resources to accomplish our shared mission. As the only aerial firefighter in the Senate, I’m proud to be working with folks on both sides of the aisle to deliver commonsense solutions to more effectively fight the devastating threat of wildfires and protect the American people,” said Senator Sheehy.

“Wildfires don’t care about state lines or forest service boundaries,” said Senator Hickenlooper. “A centralized wildfire intelligence center will speed our response to fires and promote cross-agency collaboration to tackle them.”

“As fire season rapidly approaches for Montana, we need all hands on deck to prevent catastrophic disasters. Sharing information and resources between agencies will undoubtedly help Montana communities take preventive measures and better combat fires and coordinate response efforts,” said Senator Daines.

“The Wildfire Intelligence Center established by this bill will harness cutting-edge technology to give decision-makers real-time insights across jurisdictions and landscapes, enhancing coordination at every stage of a fire. The tools to tackle the megafire crisis already exist — this bill brings us closer to putting them in the hands of firefighters and land managers where they can make a real impact,” said Matt Weiner, CEO of Megafire Action. “Senators Padilla and Sheehy understand the urgent need to modernize our wildfire management system, and we look forward to working with them to get this bill signed into law and turn that vision into reality.”

“FAS applauds Senators Padilla and Sheehy for introducing this bill, which would take a crucial step forward in protecting our communities from increasingly severe wildfires. The Wildfire Intelligence Center would bring together expertise at all levels of government to give our firefighters and first responders access to cutting-edge tools and the decision support they need to confront this growing crisis,” said James Campbell, Wildfire Policy Specialist at the Federation of American Scientists.

“APCIA supports the Wildfire Intelligence Collaboration and Coordination Act introduced by Senator Padilla (D-CA) and Senator Sheehy (R-MT). This bill reflects the bipartisan recommendations of the Wildland Fire Mitigation and Management Commission to create a joint interagency center to improve fire assessment and prediction in the wildland and built environment. With the risk of catastrophic wildfires increasing, Congress must take action to pass bills like this one that will lead to better land and fuels management, reduce risk to communities, and improve fire management and response,” said David A. Sampson, APCIA’s President and CEO.

Advances in wildfire technology hold great promise, however available technological services are highly fragmented across more than 50 federal programs. Simply put, the technology is available, but the government currently lacks the ability to get these tools in the hands of those who desperately need it, when they need it. The Wildfire Intelligence Center will leverage cutting-edge technology and improve the effectiveness of the many entities engaged in wildfire work.

Specifically, the Wildfire Intelligence Center would study, coordinate, and implement fire suppression and mitigation strategies among the Agriculture, Commerce, and Interior departments, including providing comprehensive assessment and modeling of wildfires to inform response, risk reduction, land and fuels management, post-wildfire recovery, and rehabilitation. This center would be modeled after similar information sharing centers like the National Weather Service and the National Oceanic and Atmospheric Administration’s (NOAA) Water Center, which coordinate information sharing to educate people, improve understanding, and foster collaboration amongst various federal, state, and academic units.

The Wildfire Intelligence Collaboration and Coordination Act is endorsed by Megafire Action, Federation of American Scientists, Association of FireTech Innovation, Alliance for Wildfire Resilience, Climate and Wildfire Institute, Rural Voices for Conservation Coalition, The Stewardship Project, Tall Timbers, Grassroots Wildland Firefighters, American Forests, Environmental Defense Fund, and American Property Casualty Insurance Association.

Senator Padilla has long been a leader in strengthening the federal and state response to wildfires. Earlier this week, Padilla announced a package of three bipartisan bills to bolster fire resilience and proactive mitigation efforts, including the Wildfire Emergency Act, the Fire-Safe Electrical Corridors Act, and the Disaster Mitigation and Tax Parity Act. Last month, he introduced another suite of three bipartisan bills to strengthen wildfire resilience and rebuilding efforts through legislation including the Wildland Firefighter Paycheck Protection Act, the Fire Suppression and Response Funding Assurance Act, and the Disaster Housing Reform for American Families Act. Padilla’s legislation to strengthen FEMA’s wildfire preparedness and response efforts, the FIRE Act, became law in 2022.

A one-pager on the Wildfire Intelligence Collaboration and Coordination Act is available here.

Full text of the bill is available here.

MIL OSI USA News –

February 7, 2025
MIL-OSI Security: Federal Inmate Sentenced to 33 Months in Prison for Breaking Fellow Inmate’s Jaw

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

PEORIA, Ill. – Travis Jay Nyhoff, 42, who is currently incarcerated at the Federal Correctional Institution in Pekin, Illinois (FCI-Pekin), was sentenced on January 10, 2025 to 33 months’ imprisonment for aggravated battery. The sentence will run consecutive to the term of imprisonment Nyhoff is presently serving for possession with intent to distribute 50 grams or more of methamphetamine.

At the sentencing hearing before U.S. District Judge Joe B. McDade, the court considered the following uncontested information regarding the assault. On December 8, 2023, Nyhoff had approached another inmate from behind as the inmate was watching television in the common area, yanked his chair out from beneath him, and proceeded to strike the inmate across the face with the chair and then hurl the chair at the wall. The unprovoked attack was documented by security footage. The inmate sustained a broken lower jawbone, a laceration to his face that penetrated his oral cavity, and several dislodged teeth. He later underwent surgery to repair his jawbone.

A federal grand jury returned an indictment charging Nyhoff with assault in April 2024, and he entered a guilty plea in August 2024.

The statutory penalties for aggravated battery are two to five years’ imprisonment, to be followed by up to three years of supervised release.

The Federal Bureau of Investigation, Springfield Field Office, and the Federal Bureau of Prisons Special Investigative Services investigated the case. Assistant U.S. Attorney Melissa P. Ortiz represented the government in the prosecution.

MIL Security OSI –

February 7, 2025
MIL-OSI Security: Beloit Man Sentenced to 22½ Years for Producing Child Pornography

Source: Federal Bureau of Investigation (FBI) State Crime Alerts (c)

MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Misael Dominguez Adorno, 25, Beloit, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to 22 ½ years in federal prison for producing child pornography. The prison term will be followed by 25 years of supervised release. Dominquez Adorno pleaded guilty to this charge on October 9, 2024.

In November 2022, Beloit Police received a CyberTip indicating that someone at Dominguez Adorno’s residence uploaded sexually explicit images onto the internet. Based on the tip, officers obtained and executed a search warrant for the home, where they seized numerous cell phones, iPads, computers, and flash drives.

Officers analyzed the devices and found videos of Dominguez Adorno engaged in sexually explicit conduct with five minors, whom officers were able to identify. Officers also found that Dominguez Adorno had received sexually explicit images from a 6th minor victim.

Judge Conley expressed concern that Dominguez Adorno only cared about getting what he wanted from each of his young victims, manipulating them to his advantage. Judge Conley also noted that Dominguez Adorno did not seem to realize that he had stolen part of each victim’s youth with his actions.

The charge against Dominquez Adorno was the result of an investigation conducted by the Beloit Police Department, the Wisconsin Department of Justice, Division of Criminal Investigation, and the Federal Bureau of Investigation. Assistant U.S. Attorney Elizabeth Altman prosecuted this case.

This investigation was a part of Project Safe Childhood (PSC), a nationwide initiative to combat child sexual exploitation and abuse. 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 www.justice.gov/psc.

MIL Security OSI –

February 7, 2025
MIL-OSI Security: Former University Employee Charged with Attempted Coercion and Enticement of a Minor

Source: Federal Bureau of Investigation (FBI) State Crime Alerts (c)

COLUMBIA, S.C. — Mohammad Ebrahim Torki Harchegani, 38, has been charged with attempted enticement of a minor for sexual activity.

During a contested bond hearing, an FBI special agent testified that on Dec. 3-4, 2024, multiple agencies participated in an online chat operation targeting child sex offenders where an officer posed as a 14-year-old female. Torki, a legal permanent resident of the United States and Iranian citizen, engaged in sexually explicit conversations with the alleged 14-year-old girl. Torki ultimately traveled to the residence where he believed the girl was home alone to engage in sexual activities with her. He was arrested thereafter.

Testimony was also presented that Torki was a researcher at the University of South Carolina at the time of the chat. Upon his arrest, his employment was suspended and his contract with the university was not renewed.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the U.S. Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.

Torki was ordered detained at the hearing. He faces a maximum penalty of life in prison.

The FBI Columbia Field Office, the South Carolina Internet Crimes Against Children Task Force, and the Richland County Sheriff’s Department participated in the online chat operation and investigated the case. Assistant U.S. Attorneys Elle E. Klein and Winston Holliday are prosecuting the case.

All charges in the indictment are merely accusations and defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

###

MIL Security OSI –

February 7, 2025
MIL-OSI Security: Henryetta Resident Pleads Guilty to Burglary and Assault

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

MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Cody Lynn Lusk, age 34, of Henryetta, Oklahoma, entered a guilty plea to one count of Burglary in the First Degree in Indian Country, and one count of Assault of a Spouse, Intimate Partner, or Dating Partner by Strangling, Suffocating, and Attempting to Strangle and Suffocate in Indian Country.

The Indictment alleged that on March 22, 2024, Lusk broke into the dwelling house of an individual and entered, intending to commit a crime within. The Indictment further alleged that Lusk then strangled and suffocated a dating partner.

The crimes occurred in Muskogee County, within the boundaries of the Cherokee Nation Reservation, in the Eastern District of Oklahoma.

The charges arose from an investigation by the Federal Bureau of Investigation, the Cherokee Nation Marshal Service, and the Muskogee Police Department.

The Honorable D. Edward Snow, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. Lusk will remain in the custody of the United States Marshals Service pending sentencing.

Assistant U.S. Attorneys Caila M. Cleary and Morgan Muzljakovich represented the United States.

MIL Security OSI –

February 7, 2025
MIL-OSI Security: Caledonia Man Pleads Guilty To Three Counts Of Sexually Exploiting A Minor

Source: Office of United States Attorneys

GRAND RAPIDS – Acting U.S. Attorney for the Western District of Michigan Andrew Birge today announced that Scott Michael Elam, 41, of Caledonia, pleaded guilty to three counts of sexual exploitation of a minor. Elam faces a mandatory minimum of 15 years in prison and a maximum of 90 years in prison. He is scheduled to be sentenced on May 29.

Elam was arrested and indicted in November 2024 on seven counts of sexually exploiting four different minors. According to court documents, Elam recorded himself having sex with one of the minors on two different occasions and directed the other victims to take explicit photos and videos of themselves and then send them to him. He supplied alcohol, marijuana, vapes, and other contraband to the minors. Elam charged money for each and offered to reduce the price for minors who created and provided sexually explicit videos of themselves or had sex with him.

“Today’s plea by Scott Elam highlights the FBI’s unwavering commitment to holding sexual predators accountable and safeguarding our most vulnerable citizens,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. “Mr. Elam’s abhorrent criminal acts against minors are utterly indefensible, and such behavior is not acceptable. I am deeply grateful for the relentless dedication and tireless efforts of the men and women of the FBI in Michigan, including the West Michigan-based Child Exploitation Task Force (WEBCHEX), our partners at the Kent County Sheriff’s Office, and the U.S. Attorney’s Office for the successful prosecution in the Western District of Michigan. The FBI in Michigan remains committed to working alongside our law enforcement partners to investigate, disrupt, and bring to justice any individuals who prey on our children.”

“The Kent County Sheriff’s Office is committed to pursuing justice for victims of child exploitation and ensuring that offenders are held accountable. This case highlights the critical importance of parents and guardians having open conversations with their children about the dangers of social media. Our dedicated staff and partnerships with federal agencies allow us to continue protecting our community from those who seek to harm children,” the department said in a statement.

The Kent County Sheriff’s Office and FBI are investigating this case, and Assistant United States Attorney Olivia Ghiselli is prosecuting it.

This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. The U.S. Attorney’s Office, county prosecutor’s offices, the Internet Crimes Against Children task force (ICAC), federal, state, tribal, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood work to educate local communities about the dangers of online child exploitation, and to teach children how to protect themselves. For more information about Project Safe Childhood, visit www.projectsafechildhood.gov. Individuals with information or concerns about possible child exploitation should contact local law enforcement officials.

# # #

MIL Security OSI –

February 7, 2025
MIL-OSI: NANO Nuclear Energy Engages aRobotics Company and Commits to Multimillion Dollar Investment to Build Out its New Advanced Demonstration Facility

Source: GlobeNewswire (MIL-OSI)

New York, N.Y., Feb. 06, 2025 (GLOBE NEWSWIRE) — NANO Nuclear Energy Inc. (NASDAQ: NNE) (“NANO Nuclear” or “the Company”), a leading advanced nuclear energy and technology company focused on developing clean energy solutions, today announced that it has engaged aRobotics Company, a leading innovator in robotics fabrication, inspection, engineering and testing, to oversee the multimillion dollar build out of NANO Nuclear’s recently announced demonstration facility in Westchester County, New York. aRobotics will also assist NANO Nuclear with the fabrication of key components for the demonstration facility.

Under the agreement, following completion of the facility’s retrofitting, aRobotics Company will manage the construction of certain non-nuclear elements crucial to the design and operation of NANO Nuclear’s four reactors in development: ZEUS, ODIN, LOKI MMR^TM and KRONOS MMR^TM. This includes leading the development and fabrication of custom sensors and equipment needed to evaluate demonstration components. Additionally, aRobotics will support NANO Nuclear’s ongoing SBIR Phase III project for its Annular Linear Induction Pump (ALIP) technology, a key enabling technology within NANO Nuclear’s suite of advanced nuclear energy systems.

“We are delighted to work alongside NANO Nuclear and its management team to deliver a sophisticated demonstration facility for the company,” said Akaash Kancharla, Chief Executive Officer of aRobotics Company. “Though microreactors rely on fission processes to generate energy, there are numerous non-nuclear components which are critical to the operation of these energy systems. The experience we’ve gained through our extensive engineering work with the Department of Defense and large defense prime contractors will be instrumental as we support NANO Nuclear in advancing its next phase of reactor development.”

Figure 1 – NANO Nuclear Energy Engages aRobotics Company to Oversee the Retrofitting of its Advanced Demonstration Facility in Westchester County, New York and Lead the Fabrication of Non-Nuclear Components for its Suite of Energy Systems.

aRobotics develops, fabricates, and operates advanced robotic systems for inspecting and testing critical infrastructure in both civilian and defense contexts. The company has been recognized with multiple honors, including the NATO DIANA Challenge, the NYC Department of Building Challenge, active contracts with all major branches of the U.S. Military (including nearly 20 SBIR awards), and the Propel by MIPIM Startup Competition. aRobotics designs, develops and fabricates its suite of engineering robotics and provides materials testing solutions in-house at its own facilities. With numerous filed, published, and issued patents in the United States and internationally, aRobotics delivers cutting-edge solutions that ensure the structural integrity of significant assets and is routinely used on large infrastructural projects across the nation from interstates to skyscrapers. Building on its extensive deep technology engineering experience, aRobotics delivers cutting-edge, mission-ready solutions with reliability, efficiency, and innovation.

“We are thrilled to engage aRobotics Company, whose proven track record in meeting stringent quality standards makes them an ideal partner,” said Jay Yu, Founder and Chairman of NANO Nuclear Energy. “Their extensive track record, particularly their work with the U.S. Department of Defense, give us confidence in their ability to manage the design and construction of our new demonstration facility as well as oversee the fabrication of certain key components such as the ALIP technology, ensuring we continue on a clear path toward demonstration and eventual commercialization.”

“We are very pleased to partner with aRobotics Company on this phase of our development,” said James Walker, Chief Executive Officer and Head of Reactor Development of NANO Nuclear Energy. “In addition to overseeing the final build out of our new demonstration facility, aRobotics will play a pivotal role in fabricating and refining essential non-nuclear components that support our reactor energy systems. Their efforts will complement our technical teams’ work, helping to accelerate design development and maintain the highest standards of safety and performance for our reactors.”

About NANO Nuclear Energy, Inc.

NANO Nuclear Energy Inc. (NASDAQ: NNE) is an advanced technology-driven nuclear energy company seeking to become a commercially focused, diversified, and vertically integrated company across five business lines: (i) cutting edge portable and other microreactor technologies, (ii) nuclear fuel fabrication, (iii) nuclear fuel transportation, (iv) nuclear applications for space and (v) nuclear industry consulting services. NANO Nuclear believes it is the first portable nuclear microreactor company to be listed publicly in the U.S.

Led by a world-class nuclear engineering team, NANO Nuclear’s reactor products in development include “ZEUS”, a solid core battery reactor, and “ODIN”, a low-pressure coolant reactor, each representing advanced developments in clean energy solutions that are portable, on-demand capable, advanced nuclear microreactors. NANO Nuclear is also developing patented stationary KRONOS MMR^™ Energy System and space focused, portable LOKI MMR^™.

Advanced Fuel Transportation Inc. (AFT), a NANO Nuclear subsidiary, is led by former executives from the largest transportation company in the world aiming to build a North American transportation company that will provide commercial quantities of HALEU fuel to small modular reactors, microreactor companies, national laboratories, military, and DOE programs. Through NANO Nuclear, AFT is the exclusive licensee of a patented high-capacity HALEU fuel transportation basket developed by three major U.S. national nuclear laboratories and funded by the Department of Energy. Assuming development and commercialization, AFT is expected to form part of the only vertically integrated nuclear fuel business of its kind in North America.

HALEU Energy Fuel Inc. (HEF), a NANO Nuclear subsidiary, is focusing on the future development of a domestic source for a High-Assay, Low-Enriched Uranium (HALEU) fuel fabrication pipeline for NANO Nuclear’s own microreactors as well as the broader advanced nuclear reactor industry.

NANO Nuclear Space Inc. (NNS), a NANO Nuclear subsidiary, is exploring the potential commercial applications of NANO Nuclear’s developing micronuclear reactor technology in space. NNS is focusing on applications such as the LOKI MMR^™ system and other power systems for extraterrestrial projects and human sustaining environments, and potentially propulsion technology for long haul space missions. NNS’ initial focus will be on cis-lunar applications, referring to uses in the space region extending from Earth to the area surrounding the Moon’s surface.

For more corporate information please visit: https://NanoNuclearEnergy.com/

For further NANO Nuclear information, please contact:
Email: IR@NANONuclearEnergy.com
Business Tel: (212) 634-9206

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Cautionary Note Regarding Forward Looking Statements

This news release and statements of NANO Nuclear’s management in connection with this news release contain or may contain “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. In this context, forward-looking statements mean statements related to future events, which may impact our expected future business and financial performance, and often contain words such as “expects”, “anticipates”, “intends”, “plans”, “believes”, “potential”, “will”, “should”, “could”, “would” or “may” and other words of similar meaning. In this press release, forward-looking statements include statements regarding the qualifications of aRobotics Company as applied to NANO Nuclear’s projects as well as other anticipated benefits of the NANO Nuclear’s engagement of aRobotics Company. These and other forward-looking statements are based on information available to us as of the date of this news release and represent management’s current views and assumptions. Forward-looking statements are not guarantees of future performance, events or results and involve significant known and unknown risks, uncertainties and other factors, which may be beyond our control. For NANO Nuclear, particular risks and uncertainties that could cause our actual future results to differ materially from those expressed in our forward-looking statements include but are not limited to the following: (i) risks related to our U.S. Department of Energy (“DOE”) or related state or non-U.S. nuclear fuel licensing submissions, (ii) risks related the development of new or advanced technology and the acquisition of complimentary technology or businesses, including difficulties with design and testing, cost overruns, regulatory delays, integration issues and the development of competitive technology, (iii) our ability to obtain contracts and funding to be able to continue operations, (iv) risks related to uncertainty regarding our ability to technologically develop and commercially deploy a competitive advanced nuclear reactor or other technology in the timelines we anticipate, if ever, (v) risks related to the impact of U.S. and non-U.S. government regulation, policies and licensing requirements, including by the DOE and the U.S. Nuclear Regulatory Commission, including those associated with the recently enacted ADVANCE Act, and (vi) similar risks and uncertainties associated with the operating an early stage business a highly regulated and rapidly evolving industry. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this news release. These factors may not constitute all factors that could cause actual results to differ from those discussed in any forward-looking statement, and NANO Nuclear therefore encourages investors to review other factors that may affect future results in its filings with the SEC, which are available for review at www.sec.gov and at https://ir.nanonuclearenergy.com/financial-information/sec-filings. Accordingly, forward-looking statements should not be relied upon as a predictor of actual results. We do not undertake to update our forward-looking statements to reflect events or circumstances that may arise after the date of this news release, except as required by law.

Attachment

The MIL Network –

February 7, 2025

MIL-OSI: Fortinet Delivers Unmatched Security and Efficient Network Performance for the Distributed Enterprise with New Next-Gen Firewalls

Source: GlobeNewswire (MIL-OSI)

News Summary

SUNNYVALE, Calif., Feb. 06, 2025 (GLOBE NEWSWIRE) — Fortinet^® (NASDAQ: FTNT), the global cybersecurity leader driving the convergence of networking and security, today announced the FortiGate 70G, FortiGate 50G, and FortiGate 30G, the latest G series next-generation firewalls (NGFWs) designed to meet the evolving technology and business demands of today’s distributed enterprises. Powered by Fortinet’s proprietary ASIC technology and the unified Fortinet operating system, FortiOS, the FortiGate G series delivers industry-leading security with unmatched performance. These features, combined with advanced networking support and FortiGuard AI-Powered Security Services, reduce the risk of successful cyberattacks and allow customers to future-proof IT infrastructure while minimizing operational costs and environmental impact.

“For nearly 25 years, we have set the standard for fortifying enterprise networks,” said Nirav Shah, Senior Vice President, Products and Solutions at Fortinet. “By completing the FortiGate G series with the latest ASIC and FortiOS innovation, we give distributed enterprises cutting-edge tools like AI-powered security services and GenAI for network and security operations centers without compromising performance or sustainability needs. Our customers trust that Fortinet will continue redefining the standard for next-generation firewalls by delivering superior security effectiveness, greater energy efficiency, and unmatched performance for years to come.”

FortiGate G Series: Industry-Leading Performance with AI-Powered Security
Today’s enterprises are under pressure to scale operations, secure expanding attack surfaces, and manage increasingly sophisticated cyberthreats while reducing costs and maintaining efficiency. The FortiGate G series is engineered to meet these demands, offering:

Cutting-edge security with unmatched power efficiency: The FortiGate G series delivers superior protection without compromising performance. For example, the new FortiGate 70G delivers up to 11x higher IPsec VPN and 7x higher firewall throughput than the industry average while consuming 62x fewer watts per Gbps of IPsec VPN throughput and 42x fewer watts per Gbps of firewall throughput.
Faster identification, containment, and mitigation of threats: FortiGuard AI-Powered Security Services provides real-time, automated threat detection and response to defend against advanced ransomware, malware, and zero-day exploits.
FortiAI for enhanced cybersecurity operations: FortiAI, the Fortinet generative AI assistant, helps automate tasks, provides actionable insights, and improves threat detection. FortiGate customers can use FortiAI to support incident analysis, threat remediation, and playbook creation, empowering them to streamline security processes and strengthen their cybersecurity posture.

The power of the new FortiGate G series and FortiGuard AI-Powered Security Services is showcased in the below Security Compute Rating tables, which compare the top firewalls on the market against the target performance numbers of the FortiGate 70G, FortiGate 50G, and FortiGate 30G:

FortiGate 70G

Specification	FortiGate 70G	Security Compute Rating	Competitor Average	Check Point 1555	Cisco Meraki MX68	Juniper SRX 300	Palo Alto Networks PA-410
Firewall (Gbps)	10.0	7x	1.5	2.0	0.7	1.9	1.4
IPsec VPN (Gbps)	7.1	11x	0.7	1.3	0.4	0.3	0.7
Threat Protection (Gbps)	1.3	3x	0.5	0.6	0.4	0.2	0.8
Concurrent Sessions	1.4M	4x	376K	1M	–	64K	64K
Connections per Second	100K	10x	10K	14K	–	5K	11K
Power Efficiency	FortiGate 70G	Energy Savings	Competitor Average	Check Point 1555	Cisco Meraki MX68	Juniper SRX 300	Palo Alto Networks PA-410
Max Power Consumption (Watts)	8.9	4x	35.0	17.9	79.0	24.9	18.0
Watts/Gbps Firewall Throughput	0.9	42x	36.9	9.0	112.9	13.1	12.9
Watts/Gbps IPsec VPN Throughput	1.3	62x	78.1	13.8	197.5	73.2	27.7

FortiGate 50G

Specification	FortiGate 50G	Security Compute Rating	Competitor Average	Check Point 1535	Cisco Meraki MX67	Juniper SRX 300	Palo Alto Network PA-410
Firewall (Gbps)	5.0	3x	1.5	2.0	0.7	1.9	1.4
IPsec VPN (Gbps)	4.5	8x	0.6	1.0	0.4	0.3	0.7
Threat Protection (Gbps)	1.1	2x	0.5	0.4	0.4	0.2	0.8
Concurrent Sessions	720K	2x	376K	1M	–	64K	64K
Connections per Second	85K	10x	8.8K	10.5K	–	5K	11K
Power Efficiency	FortiGate 50G	Energy Savings	Competitor Average	Check Point 1535	Cisco Meraki MX67	Juniper SRX 300	Palo Alto Networks PA-410
Max Power Consumption (Watts)	8.9	2x	18.7	17.9	14.0	24.9	18.0
Watts/Gbps Firewall Throughput	1.8	8x	13.7	9.0	20.0	13.1	12.9
Watts/Gbps IPsec VPN Throughput	2.0	20x	38.6	18.5	35.0	73.2	27.7

FortiGate 30G

Specification	FortiGate 30G	Security Compute Rating	Competitor Average	Barracudas F12	Cisco Meraki Z4	SonicWall TZ270	Watch Guard NV5
Firewall (Gbps)	4.0	4x	1.0	1.2	0.5	2.0	0.4
IPsec VPN (Gbps)	3.5	10x	0.4	0.2	0.3	0.8	0.2
Threat Protection (Gbps)	0.5	1x	0.4	0.2	0.3	0.8	–
Concurrent Sessions	600K	2x	301K	80K	–	750K	73K
Connections per Second	30K	4x	7.5K	8K	–	6K	8.5K
Power Efficiency	FortiGate 30G	Energy Savings	Competitor Average	Barracudas F12	Cisco Meraki Z4	SonicWall TZ270	Watch Guard NV5
Max Power Consumption (Watts)	8.2	4x	29.5	45.0	42.0	18.9	12.0
Watts/Gbps Firewall Throughput	2.3	41x	96.6	204.5	–	25.2	60.0
Watts/Gbps IPsec VPN Throughput	16.4	7x	120.3	195.7	140.0	25.2	–

Threat protection performance is measured with firewall, IPS, application control and malware protection, and logging enabled.
The numbers for competitive solutions are based on publicly available sources. Other vendors may have different testing methodologies.
All power consumption values are taken from external data sheets and hardware system guides using maximum power consumption.
Performance information is sourced from vendor datasheets published as of February 5, 2025.

Building a Strong Cybersecurity Platform Starts with the Firewall
Fortinet was founded on the principle of converging networking and security into a unified cybersecurity platform anchored by a single operating system. The Fortinet Security Fabric is the result of more than two decades of relentless focus on the company’s platform vision to provide customers with end-to-end visibility, unified management, and automated threat intelligence sharing. All FortiGate NGFWs, including the FortiGate G series, seamlessly integrate into the Fortinet Security Fabric so customers can build a secure foundation to advance their overall security measures from adopting secure access service edge (SASE) solutions to enhancing security operations with FortiAI. Fortinet empowers organizations to evolve their cybersecurity strategy, ensuring comprehensive protection and operational efficiency at every stage of their journey.

Additional Resources

About Fortinet
Fortinet (Nasdaq: FTNT) is a driving force in the evolution of cybersecurity and the convergence of networking and security. Our mission is to secure people, devices, and data everywhere, and today we deliver cybersecurity everywhere our customers need it with the largest integrated portfolio of over 50 enterprise-grade products. Well over half a million customers trust Fortinet’s solutions, which are among the most deployed, most patented, and most validated in the industry. The Fortinet Training Institute, one of the largest and broadest training programs in the industry, is dedicated to making cybersecurity training and new career opportunities available to everyone. Collaboration with esteemed organizations from both the public and private sectors, including Computer Emergency Response Teams (“CERTS”), government entities, and academia, is a fundamental aspect of Fortinet’s commitment to enhance cyber resilience globally. FortiGuard Labs, Fortinet’s elite threat intelligence and research organization, develops and utilizes leading-edge machine learning and AI technologies to provide customers with timely and consistently top-rated protection and actionable threat intelligence. Learn more at https://www.fortinet.com, the Fortinet Blog, and FortiGuard Labs.

Copyright © 2025 Fortinet, Inc. All rights reserved. The symbols ® and ™ denote respectively federally registered trademarks and common law trademarks of Fortinet, Inc., its subsidiaries and affiliates. Fortinet’s trademarks include, but are not limited to, the following: Fortinet, the Fortinet logo, FortiGate, FortiOS, FortiGuard, FortiCare, FortiAnalyzer, FortiManager, FortiASIC, FortiClient, FortiCloud, FortiMail, FortiSandbox, FortiADC, FortiAI, FortiAIOps, FortiAgent, FortiAntenna, FortiAP, FortiAPCam, FortiAuthenticator, FortiCache, FortiCall, FortiCam, FortiCamera, FortiCarrier, FortiCASB, FortiCentral, FortiCNP, FortiConnect, FortiController, FortiConverter, FortiCSPM, FortiCWP, FortiDAST, FortiDB, FortiDDoS, FortiDeceptor, FortiDeploy, FortiDevSec, FortiDLP, FortiEdge, FortiEDR, FortiExplorer, FortiExtender, FortiFirewall, FortiFlex FortiFone, FortiGSLB, FortiGuest, FortiHypervisor, FortiInsight, FortiIsolator, FortiLAN, FortiLink, FortiMonitor, FortiNAC, FortiNDR, FortiPAM, FortiPenTest, FortiPhish, FortiPoint, FortiPolicy, FortiPortal, FortiPresence, FortiProxy, FortiRecon, FortiRecorder, FortiSASE, FortiScanner, FortiSDNConnector, FortiSIEM, FortiSMS, FortiSOAR, FortiSRA, FortiStack, FortiSwitch, FortiTester, FortiToken, FortiTrust, FortiVoice, FortiWAN, FortiWeb, FortiWiFi, FortiWLC, FortiWLM, FortiXDR and Lacework FortiCNAPP. Other trademarks belong to their respective owners. Fortinet has not independently verified statements or certifications herein attributed to third parties and Fortinet does not independently endorse such statements. Notwithstanding anything to the contrary herein, nothing herein constitutes a warranty, guarantee, contract, binding specification or other binding commitment by Fortinet or any indication of intent related to a binding commitment, and performance and other specification information herein may be unique to certain environments.

The MIL Network –

February 7, 2025

MIL-OSI: First National Corporation Reports Fourth Quarter and Annual 2024 Financial Results

Source: GlobeNewswire (MIL-OSI)

STRASBURG, Va., Feb. 06, 2025 (GLOBE NEWSWIRE) — First National Corporation (the “Company” or “First National”) (NASDAQ: FXNC), the bank holding company of First Bank (the “Bank”), reported an unaudited consolidated net loss of $933 thousand and basic and diluted loss per common share of $0.10 for the fourth quarter of 2024, and adjusted operating earnings⁽¹⁾ of $6.0 million and adjusted operating basic and diluted earnings⁽¹⁾ per common share of $0.66 for the fourth quarter of 2024.

For the year ended December 31, 2024, the Company reported unaudited consolidated earnings of $7.0 million and basic and diluted earnings per common share of $1.00 and adjusted operating earnings⁽¹⁾ of $14.6 million and adjusted basic and diluted earnings per common share⁽¹⁾ of $2.10 for the year ended December 31, 2024.

“2024 was a transformational year for First National as we consummated our largest acquisition to date and resulting partnership with Touchstone Bankshares. Our results for the quarter reflected solid operating metrics adjusting for merger costs, and is the first quarter to include the combined financial results of First National and Touchstone,” said Scott Harvard, President and Chief Executive Officer of First National. “I am proud of all the work from our teammates to get us to this point. We are completing system conversions in several weeks which will allow us to operate as one bank across our footprint. We believe the fourth quarter financial operating performance is indicative of the benefits of the acquisition and look forward to fully completing the integration of our two companies.”

FOURTH QUARTER HIGHLIGHTS

Completed acquisition of Touchstone Bankshares, Inc. on October 1
Total assets of $2.0 billion with 33 branch offices
Net interest margin increased 40 basis points to 3.83%
Noninterest bearing deposits comprised 29% of total deposits
Efficiency ratio of 63.97%⁽¹⁾

Merger with Touchstone Bankshares, Inc. (“Touchstone”)

On October 1, 2024, the Company completed its acquisition of Touchstone. Touchstone’s results of operations are included in the Company’s consolidated results since the date of acquisition, and, therefore, the Company’s fourth quarter and full year 2024 results reflect increased levels of average balances, net interest income, and expense compared to its prior quarter and full year 2023 results. After purchase accounting fair value adjustments, the acquisition added $664.3 million of total assets, including $479.3 million of loans held for investment (“LHFI”), and $614.6 million of total liabilities, including $555.4 million in total deposits. The Company recorded a preliminary bargain purchase gain of $2.9 million during the quarter associated with the acquisition.

In connection with the acquisition, the Company recorded an allowance for credit losses on acquired loans that experienced a more than insignificant amount of credit deterioration since origination (“PCD” loans) of $385 thousand. In addition, the Company recorded a provision for credit losses of $3.8 million on non-PCD loans and $100 thousand provision on unfunded commitments for the fourth quarter of 2024.

The Company incurred pre-tax merger costs of approximately $7.3 million during the fourth quarter of 2024 related to the Touchstone acquisition.

NET INTEREST INCOME

For the fourth quarter of 2024, net interest income was $18.4 million, an increase of $6.6 million from $11.7 million in the third quarter of 2024. The increases in net interest income was primarily the result of a $545.3 million increase in average interest earning assets, partially offset by a $415.0 million increase in average interest bearing liabilities, in each case primarily related to the acquisition of Touchstone. For the fourth quarter of 2024, the Company’s net interest margin increased 40 basis points to 3.83% primarily due to the impacts associated with the Touchstone acquisition. Earning asset yields for the fourth quarter of 2024 increased 22 basis points to 5.30% compared to the third quarter of 2024, and the cost of funds decreased by 21 basis points to 1.51%, due to changes in deposit mix following the acquisition of Touchstone and federal funds rate cuts in late 2024.

The Company’s net interest margin (FTE)⁽¹⁾ for the fourth quarter of 2024 includes the impact of acquisition accounting fair value adjustments. Net accretion income related to acquisition accounting was $408 thousand, or a nine basis point incremental increase to the net interest margin for the fourth quarter ended December 31, 2024, and none for the comparative prior quarter and same quarter in 2023, respectively, due to the Touchstone acquisition.

NONINTEREST INCOME

Noninterest income increased $3.4 million to $6.4 million for the fourth quarter of 2024 from $3.2 million in the prior quarter, primarily driven by $2.9 million of pre-tax bargain purchase gain and other increases in noninterest income associated with the full quarter impact of the Touchstone acquisition that closed on October 1, 2024.

NONINTEREST EXPENSE

Noninterest expense increased $11.5 million to $21.9 million for the fourth quarter of 2024 from $10.5 million in the prior quarter, primarily driven by a $7.3 million increase in pre-tax merger-related expenses, as well as other increases in noninterest expense due to the full quarter impact of the Touchstone acquisition. The full quarter impact of Touchstone and related merger expenses drove the majority of the $4.5 million increase in salaries and benefits, the $3.9 million increase in data processing, and the $351 thousand increase in occupancy expenses compared to the prior quarter. In addition, legal and professional services increased $618 thousand, primarily due to fees associated with the merger.

Adjusted operating noninterest expense, which excludes merger-related costs ($219 thousand in the third quarter and $7.3 million in the fourth quarter) and amortization of intangible assets ($4 thousand in the third quarter and $448 thousand in the fourth quarter), increased $3.9 million to $14.2 million for the fourth quarter of 2024 from $10.2 million in the prior quarter, primarily due to the impact of the Touchstone acquisition.

ASSET QUALITY

Overview

Loans past due greater than 30 days and still accruing interest as a percentage of total loans amounted to 0.24% on December 31, 2024, compared to 0.24% on September 30, 2024, and 0.31% on December 31, 2023. Of the total past due loans still accruing interest, $365 thousand were past due 90 days or more on December 31, 2024, compared to $0 on September 30, 2024, and $524 thousand on December 31, 2023. Management classifies non-performing assets (“NPAs”) as non-accrual loans and OREO. Nonperforming assets (“NPAs”) as a percentage of total assets decreased to 0.35% on December 31, 2024, compared to 0.41% on September 30, 2024, and 0.48% one year ago on December 31, 2023. The decrease in the NPA ratio was primarily due to the effects of the Touchstone acquisition, which added LHFI of $479.3 million acquired in the transaction. Net charge-offs totaled $1.3 million in the fourth quarter of 2024, compared to net charge-offs of $1.6 million in the third quarter of 2024, and net charge-offs of $2.7 million in the fourth quarter of 2023. The net charge-offs for the fourth quarter of 2024 included $883 thousand of commercial and industrial loans, with $774 thousand of that specific to our pool of loans originated to health care professionals through a third-party lender. The allowance for credit losses on loans totaled $16.4 million, or 1.12% of total loans on December 31, 2024, compared to $12.7 million, or 1.28% of total loans on September 30, 2024, and $12.0 million, or 1.24% of total loans on December 31, 2023.

Nonperforming Assets

NPAs increased to $7.1 million on December 31, 2024, compared to $6.0 million on September 30, 2024, and $6.8 million on December 31, 2023, which represented 0.35%, 0.41%, and 0.48% of total assets, respectively. The increase in NPAs during the fourth quarter of 2024 resulted from the acquisition of Touchstone’s portfolio, including $1 million of additional non-accrual loans.

Past Due Loans

Loans past due 30-89 days and still accruing interest increased to $3.1 million, or 0.21% of total loans on December 31, 2024, compared to $2.4 million, or 0.24% of total loans on September 30, 2024, and $2.5 million, or 0.26%, of total loans on December 31, 2023. Loans past due over 90 days or more and still accruing interest on December 31, 2024, increased to $365 thousand, compared to $0 on September 30, 2024, and $524 thousand on December 31, 2023.

Allowance for Credit Losses on Loans

For the fourth quarter of 2024, the Company recorded a provision for credit losses of $4.8 million, compared to a provision for credit losses of $1.7 million in the prior quarter, and a provision for credit losses of $6.0 million in the fourth quarter of 2023. Included in the provision for credit losses for the fourth quarter of 2024 was a $3.8 million initial provision expense on non-PCD loans and $100 thousand on unfunded commitments, each acquired from Touchstone. As compared to the prior quarter, the decrease in provision for credit losses, outside of the initial provision expense recorded on non-PCD loans and unfunded commitments acquired from Touchstone, primarily reflects the impact of lower net charge-offs in the fourth quarter of 2024 and lower outstanding legacy loan balances. As compared to the same period in the prior year, the decrease in provision for credit losses, outside of the initial provision expense recorded on non-PCD loans and unfunded commitments acquired from Touchstone, is primarily due to higher reserves booked during the fourth quarter of 2023 due to qualitative factor adjustments related to the commercial and industrial loan pool, as well as specific reserves from identified individually evaluated loans.

BALANCE SHEET

At December 31, 2024, the Company’s consolidated balance sheet includes the impact of the Touchstone acquisition, which closed October 1, 2024, as discussed above. ASC 805, Business Combinations, allows for a measurement period of 12 months beyond the acquisition date to finalize the fair value measurements of the acquired Company’s net assets as additional information not existing as of the acquisition date becomes available. Any future measurement period adjustments will be recorded through an adjustment to the bargain purchase gain upon identification. Below is a summary of the related impact of the acquisition on the Company’s consolidated balance sheet as of the acquisition date.

The fair value of assets acquired totaled $664.3 million and included total loans of $479.3 million with an initial loan discount of $13.5 million.
The fair value of the liabilities assumed totaled $614.6 million and included total deposits of $555.4 million with an initial deposit mark related to time deposits of $1.1 million.
Core deposit intangibles and other intangibles acquired totaled $15.6 million.
No goodwill was recorded in the transaction, and the preliminary bargain purchase gain (included in other income) totaled $2.9 million.

At December 31, 2024, total assets were $2.0 billion, an increase of $559.6 million or 38.6% from September 30, 2024 and $591.0 million or approximately 41.6% from December 31, 2023. The increases in total assets from the prior quarter and prior year were primarily driven by growth in loans held for investment (LHFI) (net of deferred fees and costs) and the securities portfolio, primarily due to the Touchstone acquisition.

At December 31, 2024, LHFI net of allowance totaled $1.5 billion, an increase of $468.6 million from $982.0 million at September 30, 2024, and an increase of $493.1 million or 51.5% from December 31, 2023. LHFI increased from the prior quarter and prior year primarily due to the Touchstone acquisition, as well as organic loan growth compared to prior year.

At December 31, 2024, total investments were $277.3 million, an increase of $7.8 million from September 30, 2024, and a decrease of $25.9 million or 8.5% from December 31, 2023. Available for sale (AFS) securities totaled $163.8 million at December 31, 2024 and $146.0 million at September 30, 2024 and $152.9 million at December 31, 2023. The increases compared to the prior quarter and prior year were primarily due to the acquisition of Touchstone. Total net unrealized losses on the AFS securities portfolio were $22.1 million at December 31, 2024, compared to $17.2 million at September 30, 2024, and $20.6 million at December 31, 2023. Held to maturity securities are carried at cost and totaled $109.7 million at December 31, 2024, $121.4 million at September 30, 2024, and $148.2 million at December 31, 2023.

At December 31, 2024, total deposits were $1.80 billion, an increase of $550.5 million from the prior quarter, and an increase of $570.1 million or 46.2% from December 31, 2023. The increases in deposit balances from the prior quarter and prior year are primarily due to increases in interest bearing customer deposits and demand deposits, primarily related to the addition of the Touchstone acquired deposits.

Other borrowings decreased $50.0 million during the fourth quarter as the Bank repaid borrowed funds from the Federal Reserve Bank through their Bank Term Funding Program.

Shareholders’ equity totaled $166.5 million on December 31, 2024, which was an increase of $41.4 million from September 30, 2024. The increase in total shareholders’ equity was primarily attributable to the issuance of 2.67 million shares associated with the Touchstone acquisition. The Company declared and paid cash dividends of $0.155 per common share during the fourth quarter of 2024, up from $0.15 paid during the first three quarterly periods of 2024.

The following table provides capital ratios at the periods ended:

	Dec 31, 2024			Sept 30, 2024			Dec 31, 2023
Total capital ratio ⁽²⁾		12.35	%		14.29	%		14.13	%
Tier 1 capital ratio ⁽²⁾		11.19	%		13.04	%		12.88	%
Common equity Tier 1 capital ratio ⁽²⁾		11.19	%		13.04	%		12.88	%
Leverage ratio ⁽²⁾		7.95	%		9.23	%		9.17	%
Common equity to total assets ⁽³⁾		8.29	%		8.62	%		8.23	%
Tangible common equity to tangible assets ^{(1) (3)}		7.46	%		8.43	%		8.03	%


⁽¹⁾	These are financial measures not calculated in accordance with generally accepted accounting principles (“GAAP”). For a reconciliation of these non-GAAP financial measures, see the “Non-GAAP Reconciliation” sections of the Performance Summary tables included in this release.

⁽²⁾	All ratios at December 31, 2024 are estimates and subject to change pending the Company’s filing of its FR Y9-C. All other periods are presented as filed.

⁽³⁾	Capital ratios presented are for First National Corporation.

NON-GAAP FINANCIAL MEASURES

In addition to financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company uses certain non-GAAP financial measures that provide useful information for financial and operational decision making, evaluating trends, and comparing financial results to other financial institutions. The non-GAAP financial measures presented in this document include adjusted operating net income, adjusted basic and diluted earnings (loss) per share, adjusted return on average assets, adjusted return on average equity, pre-provision pre-tax earnings, adjusted pre-provision pre-tax earnings, fully taxable equivalent interest income, the net interest margin, the efficiency ratio, tangible book value per share, and tangible common equity to tangible assets.

The Company believes certain non-GAAP financial measures enhance the understanding of its business and performance. Non-GAAP financial measures are supplemental and not a substitute for, or more important than, financial measures prepared in accordance with GAAP and may not be comparable to those reported by other financial institutions. A reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measure is included at the end of this release.

ABOUT FIRST NATIONAL CORPORATION

First National Corporation (NASDAQ: FXNC) is the parent company and bank holding company of First Bank, a community bank that first opened for business in 1907 in Strasburg, Virginia. The Bank offers loan and deposit products and services through its website, www.fbvirginia.com, its mobile banking platform, a network of ATMs located throughout its market area, a loan production office, a customer service center in a retirement community, and thirty-three bank branch office locations located throughout the Shenandoah Valley, the south-central regions of Virginia, the Roanoke Valley, the Richmond MSA, and in northern North Carolina. In addition to providing traditional banking services, the Bank operates a wealth management division under the name First Bank Wealth Management. First Bank also owns First Bank Financial Services, Inc., which owns an interest in an entity that provides title insurance services.

FORWARD-LOOKING STATEMENTS

Certain information contained in this discussion may include “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. These forward-looking statements relate to the Company’s plans, objectives, expectations and intentions and other statements that are not historical facts, and other statements identified by words such as “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “targets,” and “projects,” as well as similar expression. Although the Company believes that its expectations with respect to the forward-looking statements are based upon reliable assumptions within the bounds of its knowledge of its business and operations, there can be no assurance that actual results, performance, or achievements will not differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties. For details on factors that could affect expectations, future events, or results, see the risk factors and other cautionary language included in First National’s Annual Report on Form 10-K for the year ended December 31, 2023, and most recent Quarterly Reports on Form 10-Q and other filings with the Securities and Exchange Commission (the “SEC”).

Additional risks and uncertainties may include, but are not limited to: (1) the risk that the cost savings and any revenue synergies from the Touchstone merger may not be realized or take longer than anticipated to be realized, including due to the state of the economy or other competitive factors in the areas in which the parties operate, (2) disruption from the merger of customer, supplier, employee or other business partner relationships, including diversion of management’s attention from ongoing business operations and opportunities due to the merger, (3) the possibility that the costs, fees, expenses and charges related to the merger may be greater than anticipated, (4) reputational risk and the reaction of each of the parties’ customers, suppliers, employees or other business partners to the merger, (5) the risks relating to the integration of Touchstone’s operations into the operations of First National, including the risk that such integration will be materially delayed or will be more costly or difficult than expected, (6) the risk of expansion into new geographic or product markets, (7) the dilution caused by First National’s issuance of additional shares of its common stock in the merger, and (8) general competitive, economic, political and market conditions. All subsequent written and oral forward-looking statements concerning First National or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above. First National 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.

CONTACTS

Scott C. Harvard		Bruce E. Thomas
President and CEO		Senior Vice President and Interim CFO
(540) 465-9121		(540) 465-9121
sharvard@fbvirginia.com		bthomas@fbvirginia.com

FIRST NATIONAL CORPORATION
Performance Summary
(in thousands, except share and per share data)

(unaudited)
	For the Three Months Ended								For the Year Ended
	Dec 31, 2024			Sept 30, 2024		Dec 31, 2023			Dec 31, 2024			Dec 31, 2023
Income Statement
Interest and dividend income
Interest and fees on loans	$	21,516		$	14,479	$	13,255		$	63,483		$	49,293
Interest on deposits in banks		2,085			1,538		368			6,490			1,809
Interest on federal funds sold		189			—		—			189			—
Interest on securities
Taxable interest on securities		1,284			1,091		1,318			4,733			5,286
Tax-exempt interest on securities		308			303		303			1,222			1,220
Dividends		104			33		30			202			111
Total interest and dividend income	$	25,486		$	17,444	$	15,274		$	76,319		$	57,719
Interest expense
Interest on deposits	$	6,415		$	4,958	$	4,232		$	20,964		$	13,660
Interest on federal funds purchased		1			—		1			1			1
Interest on subordinated debt		396			69		70			603			277
Interest on junior subordinated debt		68			68		68			270			271
Interest on other borrowings		247			600		94			2,029			97
Total interest expense	$	7,127		$	5,695	$	4,465		$	23,867		$	14,306
Net interest income	$	18,359		$	11,749	$	10,809		$	52,452		$	43,413
Provision for credit losses		4,750			1,700		5,950			7,850			6,150
Net interest income after provision for credit losses	$	13,609		$	10,049	$	4,859		$	44,602		$	37,263
Noninterest income
Service charges on deposit accounts	$	1,181		$	675	$	718		$	3,122		$	2,780
ATM and check card fees		792			934		825			3,305			3,449
Wealth management fees		903			952		784			3,617			3,120
Fees for other customer services		317			276		232			966			770
Brokered mortgage fees		90			92		46			252			119
Income from bank owned life insurance		264			191		168			755			627
Net gains (losses) on securities available for sale		(154	)		39		—			(115	)		—
Gain on sale of other investment		—			—		186			—			186
Net gains on disposal of premises and equipment		—			—		—			—			47
Bargain purchase gain		2,920			—		—			2,920			—
Other operating income		131			44		110			1,558			686
Total noninterest income	$	6,444		$	3,203	$	3,069		$	16,380		$	11,784
Noninterest expense
Salaries and employee benefits	$	10,439		$	5,927	$	4,999		$	28,076		$	21,039
Occupancy		936			585		568			2,604			2,154
Equipment		1,123			726		621			3,131			2,377
Marketing		371			262		190			1,101			910
Supplies		264			123		153			618			576
Legal and professional fees		1,214			596		443			3,386			1,647
ATM and check card expense		385			394		313			1,508			1,578
FDIC assessment		285			195		154			860			633
Bank franchise tax		262			262		262			1,047			1,040
Data processing expense		4,142			290		327			4,841			1,047
Amortization expense		448			4		4			461			18
Other real estate owned expense (income), net		5			10		2			15			(199	)
Net losses on disposal of premises and equipment		(4	)		2		—			47			—
Other operating expense		2,059			1,083		1,064			5,239			4,422
Total noninterest expense	$	21,929		$	10,459	$	9,100		$	52,934		$	37,242
Income (loss) before income taxes	$	(1,876	)	$	2,793	$	(1,172	)	$	8,048		$	11,805
Income tax expense (benefit)		(943	)		545		(321	)		1,082			2,181
Net income (loss)	$	(933	)	$	2,248	$	(851	)	$	6,966		$	9,624

FIRST NATIONAL CORPORATION
Performance Summary
(in thousands, except share and per share data)

(unaudited)
	As of or For the Three Months Ended									As of or For the Year Ended
	Dec 31, 2024			Sept 30, 2024			Dec 31, 2023			Dec 31, 2024			Dec 31, 2023
Common Share and Per Common Share Data
Earnings (loss) per common share, basic	$	(0.10	)	$	0.36		$	(0.14	)	$	1.00		$	1.54
Adjusted earnings (loss) per common share, basic⁽¹⁾	$	0.66			0.39			(0.14	)	$	2.10		$	1.54
Weighted average shares, basic		8,971,649			6,287,997			6,261,500			6,955,592			6,265,394
Earnings (loss) per common share, diluted	$	(0.10	)	$	0.36		$	(0.14	)	$	1.00		$	1.53
Adjusted earnings (loss) per common share, diluted⁽¹⁾	$	0.66			0.39			(0.14	)	$	2.10		$	1.53
Weighted average shares, diluted		8,994,315			6,303,282			6,282,815			6,971,089			6,279,106
Shares outstanding at period end		8,974,102			6,296,705			6,263,102			8,974,102			6,263,102
Tangible book value per share at period end ⁽¹⁾	$	16.55		$	19.37		$	18.06		$	16.55		$	18.06
Cash dividends	$	0.155		$	0.150		$	0.150		$	0.605		$	0.600

Key Performance Ratios
Return on average assets		(0.18	%)		0.62	%		(0.25	%)		0.44	%		0.71	%
Adjusted return on average assets ⁽¹⁾		1.15	%		0.67	%		(0.25	%)		0.92	%		0.71	%
Return on average equity		(2.35	%)		7.28	%		(2.97	%)		5.33	%		8.59	%
Adjusted return on average equity ⁽¹⁾		15.01	%		7.93	%		(2.97	%)		11.19	%		8.59	%
Net interest margin ⁽¹⁾		3.83	%		3.43	%		3.35	%		3.51	%		3.41	%
Efficiency ratio ⁽¹⁾		63.97	%		68.13	%		66.26	%		66.73	%		67.69	%

Average Balances
Average assets	$	2,051,578		$	1,449,185		$	1,372,365		$	1,597,150		$	1,363,339
Average earning assets		1,919,864			1,374,566			1,290,231			1,504,946			1,280,980
Average shareholders’ equity		157,844			122,802			113,614			130,715			112,083

Asset Quality
Loan charge-offs	$	1,432		$	1,667		$	2,765		$	4,033		$	3,993
Loan recoveries		98			95			92			283			418
Net charge-offs		1,334			1,572			2,673			3,750			3,575
Non-accrual loans		7,058			5,929			6,763			7,058			6,763
Other real estate owned, net		53			56			—			53			—
Nonperforming assets ⁽³⁾		7,111			5,985			6,763			7,111			6,763
Loans 30 to 89 days past due, accruing		3,085			2,358			2,484			3,085			2,484
Loans over 90 days past due, accruing		365			—			524			365			524
Special mention loans		7,043			516			—			7,043			—
Substandard loans, accruing		2,030			1,713			287			2,030			287

Capital Ratios ⁽²⁾
Total capital	$	181,449		$	148,477		$	142,333		$	181,449		$	142,333
Tier 1 capital		164,454			135,490			129,840			164,454			129,840
Common equity Tier 1 capital		164,454			135,490			129,840			164,454			129,840
Total capital to risk-weighted assets		12.35	%		14.29	%		14.05	%		12.35	%		14.05	%
Tier 1 capital to risk-weighted assets		11.19	%		13.04	%		12.82	%		11.19	%		12.82	%
Common equity Tier 1 capital to risk-weighted assets		11.19	%		13.04	%		12.82	%		11.19	%		12.82	%
Leverage ratio		7.95	%		9.23	%		9.31	%		7.95	%		9.31	%

FIRST NATIONAL CORPORATION
Performance Summary
(in thousands, except share and per share data)

(unaudited)
	For the Period Ended
	Dec 31, 2024			Sept 30, 2024			Jun 30, 2024			Mar 31, 2024			Dec 31, 2023
Balance Sheet
Cash and due from banks	$	24,916		$	18,197		$	16,729		$	14,476		$	17,194
Interest-bearing deposits in banks		137,958			108,319			118,906			124,232			69,967
Cash and cash equivalents	$	162,874		$	126,516		$	135,635		$	138,708		$	87,161
Securities available for sale, at fair value		163,847			146,013			144,816			147,675			152,857
Securities held to maturity, at amortized cost (net of allowance for credit losses)		109,741			121,425			123,497			125,825			148,244
Restricted securities, at cost		3,741			2,112			2,112			2,112			2,078
Loans, net of allowance for credit losses		1,450,604			982,016			977,423			960,371			957,456
Other real estate owned, net		53			56			—			—			—
Premises and equipment, net		34,824			22,960			22,205			21,993			22,142
Accrued interest receivable		6,020			4,794			4,916			4,978			4,655
Bank owned life insurance		37,873			24,992			24,802			24,652			24,902
Goodwill		3,030			3,030			3,030			3,030			3,030
Core deposit intangibles, net		14,986			104			108			113			117
Other assets		22,688			16,698			18,984			17,738			16,653
Total assets	$	2,010,281		$	1,450,716		$	1,457,528		$	1,447,195		$	1,419,295

Noninterest-bearing demand deposits	$	520,153		$	383,400		$	397,770		$	384,092		$	379,208
Savings and interest-bearing demand deposits		924,880			663,925			665,208			677,458			662,169
Time deposits		358,745			205,930			202,818			197,587			192,349
Total deposits	$	1,803,778		$	1,253,255		$	1,265,796		$	1,259,137		$	1,233,726
Other borrowings		—			50,000			50,000			50,000			50,000
Subordinated debt, net		21,176			4,999			4,998			4,998			4,997
Junior subordinated debt		9,279			9,279			9,279			9,279			9,279
Accrued interest payable and other liabilities		9,517			8,068			7,564			5,965			5,022
Total liabilities	$	1,843,750		$	1,325,601		$	1,337,637		$	1,329,379		$	1,303,024

Preferred stock	$	—		$	—		$	—		$	—		$	—
Common stock		11,218			7,871			7,851			7,847			7,829
Surplus		77,058			33,409			33,116			33,021			32,950
Retained earnings		96,947			99,270			97,966			96,465			94,198
Accumulated other comprehensive (loss), net		(18,692	)		(15,435	)		(19,042	)		(19,517	)		(18,706	)
Total shareholders’ equity	$	166,531		$	125,115		$	119,891		$	117,816		$	116,271
Total liabilities and shareholders’ equity	$	2,010,281		$	1,450,716		$	1,457,528		$	1,447,195		$	1,419,295

Loan Data
Mortgage real estate loans:
Construction and land development	$	84,480		$	61,446		$	60,919		$	53,364		$	52,680
Secured by farmland		14,133			9,099			8,911			9,079			9,154
Secured by 1-4 family residential		547,576			351,004			346,976			347,014			344,369
Other real estate loans		658,029			440,648			440,857			436,006			438,118
Loans to farmers (except those secured by real estate)		940			633			349			332			455
Commercial and industrial loans (except those secured by real estate)		140,393			114,190			115,951			113,230			112,619
Consumer installment loans		7,582			5,396			5,068			4,808			4,753
Deposit overdrafts		450			253			365			251			222
All other loans		13,421			12,051			10,580			8,890			7,060
Total loans	$	1,467,004		$	994,720		$	989,976		$	972,974		$	969,430
Allowance for credit losses		(16,400	)		(12,704	)		(12,553	)		(12,603	)		(11,974	)
Loans, net	$	1,450,604		$	982,016		$	977,423		$	960,371		$	957,456

FIRST NATIONAL CORPORATION
Non-GAAP Reconciliation
(in thousands, except share and per share data)

(unaudited)
	For the Three Months Ended									For the Year Ended
	Dec 31, 2024			Sept 30, 2024			Dec 31, 2023			Dec 31, 2024			Dec 31, 2023
Operating Net Income
Net income (GAAP)	$	(933	)	$	2,248		$	(851	)	$	6,966		$	9,624
Add: Merger-related expenses		7,316			219			—			8,107			—
Add: Day 2 Non-PCD Provision		3,931			—			—			3,931			—
Subtract: Bargain purchase gain		(2,920	)		—			—			(2,920	)		—
Subtract: Tax effect of adjustment ⁽⁴⁾		(1,439	)		(19	)		—			(1,463	)		—
Adjusted operating net income (non-GAAP)	$	5,955		$	2,448		$	(851	)	$	14,621		$	9,624

Adjusted Earnings Per Share, Basic
Weighted average shares, basic		8,971,649			6,287,997			6,261,500			6,955,592			6,265,394
Basic earnings (loss) per share (GAAP)	$	(0.10	)	$	0.36		$	(0.14	)	$	1.00		$	1.54
Adjusted earnings (loss) per share, basic (non-GAAP)	$	0.66		$	0.39		$	(0.14	)	$	2.10		$	1.54

Adjusted Earnings Per Share, Diluted
Weighted average shares, diluted		8,994,315			6,303,282			6,282,815			6,971,089			6,279,106
Diluted earnings (loss) per share (GAAP)	$	(0.10	)	$	0.36		$	(0.14	)	$	1.00		$	1.53
Adjusted diluted earnings (loss) per share (non-GAAP)	$	0.66		$	0.39		$	(0.14	)	$	2.10		$	1.53

Adjusted Pre-Provision, Pre-Tax Earnings
Net interest income	$	18,359		$	11,749		$	10,809		$	52,452		$	43,413
Total noninterest income		6,444			3,203			3,069			16,380			11,784
Net revenue	$	24,803		$	14,952		$	13,878		$	68,832		$	55,197
Total noninterest expense		21,929			10,459			9,100			52,934			37,242
Pre-provision, pre-tax earnings	$	2,874		$	4,493		$	4,778		$	15,898		$	17,955
Add: Merger expenses		7,316			219			—			8,107			—
Add: Day 2 Non-PCD Provision		3,931			—			—			3,931			—
Subtract: Bargain purchase gain		(2,920	)		—			—			(2,920	)		—
Adjusted pre-provision, pre-tax, earnings	$	7,270		$	4,712		$	4,778		$	21,085		$	17,955

Adjusted Performance Ratios
Average assets	$	2,051,578		$	1,449,185		$	1,372,365		$	1,597,150		$	1,363,339
Return on average assets (GAAP)		(0.18	%)		0.62	%		(0.25	%)		0.44	%		0.71	%
Adjusted return on average assets (non-GAAP)		1.15	%		0.67	%		(0.25	%)		0.92	%		0.71	%

Average shareholders’ equity	$	157,844		$	122,802			113,614		$	130,715		$	112,083
Return on average equity (GAAP)		(2.35	%)		7.28	%		(2.97	%)		5.33	%		8.59	%
Adjusted return on average equity (non-GAAP)		15.01	%		7.93	%		(2.97	%)		11.19	%		8.59	%

Pre-provision, pre-tax return on average assets (non-GAAP)		0.56	%		1.24	%		1.39	%		1.00	%		1.32	%
Adjusted pre-provision, pre-tax return on average assets (non-GAAP)		1.42	%		1.30	%		1.39	%		1.32	%		1.32	%

Net Interest Margin
Tax-equivalent net interest income	$	18,461		$	11,842		$	10,889		$	52,821		$	43,738
Average earning assets		1,919,864			1,374,566			1,290,231			1,504,946			1,280,980
Net interest margin (non-GAAP)		3.83	%		3.43	%		3.35	%		3.51	%		3.41	%

FIRST NATIONAL CORPORATION Non-GAAP Reconciliation (in thousands, except share and per share data) (unaudited)
	For the Three Months Ended									For the Year Ended
	Dec 31, 2024			Sept 30, 2024			Dec 31, 2023			Dec 31, 2024			Dec 31, 2023
Efficiency Ratio
Total noninterest expense (GAAP)	$	21,929		$	10,459		$	9,100		$	52,934		$	37,242
Add: other real estate owned income, net		(5	)		(10	)		(2	)		(15	)		199
Subtract: amortization of intangibles		(448	)		(4	)		(4	)		(461	)		(18	)
Subtract: loss on disposal of premises and equipment, net		3			(2	)		—			(47	)		—
Subtract: merger expenses		(7,316	)		(219	)		—			(8,107	)		—
Adjusted non-interest expense (non-GAAP)	$	14,163		$	10,224		$	9,094		$	44,304		$	37,423
Tax-equivalent net interest income (non-GAAP)	$	18,461		$	11,842		$	10,889		$	52,821		$	43,738
Total noninterest income (GAAP)		6,444			3,203			3,069			16,380			11,784
(Gain) loss on disposal of premises and equipment		—			—			(47	)		—			(47	)
Gain on sale of other investment		—			—			(186	)		—			(186	)
Bargain purchase gain		(2,920	)		—			—			(2,920	)		—
Securities losses (gains), net		154			(39	)		—			115			—
Adjusted income for efficiency ratio (non-GAAP)	$	22,139		$	15,006		$	13,725		$	66,396		$	55,289

Efficiency ratio (non-GAAP)		63.97	%		68.13	%		66.26	%		66.73	%		67.69	%

FIRST NATIONAL CORPORATION
Non-GAAP Reconciliation
(in thousands, except share and per share data)

(unaudited)
	For the Three Months Ended									For the Year Ended
	Dec 31, 2024			Sept 30, 2024			Dec 31, 2023			Dec 31, 2024			Dec 31, 2023
Tax-Equivalent Net Interest Income
GAAP measures:
Interest income – loans	$	21,516		$	14,479		$	13,255		$	63,483		$	49,293
Interest income – investments and other		3,970			2,965			2,019			12,836			8,426
Interest expense – deposits		(6,415	)		(4,958	)		(4,232	)		(20,964	)		(13,660	)
Interest expense – federal funds purchased		(1	)		–			–			(1	)		–
Interest expense – subordinated debt		(396	)		(69	)		(70	)		(603	)		(277	)
Interest expense – junior subordinated debt		(68	)		(68	)		(68	)		(270	)		(271	)
Interest expense – other borrowings		(247	)		(600	)		(95	)		(2,029	)		(98	)
Net interest income	$	18,359		$	11,749		$	10,809		$	52,452		$	43,413
Non-GAAP measures:
Add: Tax benefit realized on non-taxable interest income – loans ⁽⁴⁾	$	18		$	13		$	—		$	43		$	—
Add: Tax benefit realized on non-taxable interest income – municipal securities ⁽⁴⁾		84			80			80			326			325
Tax benefit realized on non-taxable interest income	$	102		$	93		$	80		$	369		$	325
Tax-equivalent net interest income	$	18,461		$	11,842		$	10,889		$	52,821		$	43,738


Tangible Common Equity and Tangible Assets
Total assets (GAAP)	$	2,010,281		$	1,450,716		$	1,419,295		$	2,010,281		$	1,419,295
Subtract: goodwill		(3,030	)		(3,030	)		(3,030	)		(3,030	)		(3,030	)
Subtract: core deposit intangibles, net		(14,986	)		(104	)		(117	)		(14,986	)		(117	)
Tangible assets (Non-GAAP)	$	1,992,265		$	1,447,582		$	1,416,148		$	1,992,265		$	1,416,148

Total shareholders’ equity (GAAP)	$	166,531		$	125,115		$	116,271		$	166,531		$	116,271
Subtract: goodwill		(3,030	)		(3,030	)		(3,030	)		(3,030	)		(3,030	)
Subtract: core deposit intangibles, net		(14,986	)		(104	)		(117	)		(14,986	)		(117	)
Tangible common equity (Non-GAAP)	$	148,515		$	121,981		$	113,124		$	148,515		$	113,124

Tangible common equity to tangible assets ratio		7.45	%		8.43	%		7.99	%		7.45	%		7.99	%


Tangible Book Value Per Share
Tangible common equity (non-GAAP)	$	148,515		$	121,981		$	113,124		$	148,515		$	113,124
Common shares outstanding, ending		8,974,102			6,296,705			6,263,102			8,974,102			6,263,102
Tangible book value per share	$	16.48		$	19.37		$	18.06		$	16.48		$	18.06


⁽¹⁾	Non-GAAP financial measure. See “Non-GAAP Financial Measures” and “Non-GAAP Reconciliations” for additional information and detailed calculations of adjustments.

⁽²⁾	Capital ratios are for First Bank.

⁽³⁾	Nonperforming assets are comprised of nonaccrual loans and other real estate owned.

⁽⁴⁾	The tax rate utilized in calculating the tax benefit is 21%. Certain merger-related expenses were non-deductible.

The MIL Network –

February 7, 2025

MIL-OSI: AMG Reports Financial and Operating Results for the Fourth Quarter and Full Year 2024

Source: GlobeNewswire (MIL-OSI)

Company reports EPS of $4.92, Economic EPS of $6.53 in the fourth quarter of 2024
EPS of $15.13, Economic EPS of $21.36 for the full year 2024

New partnership with NorthBridge Partners, a private markets manager specializing in industrial logistics real estate assets
Net income (controlling interest) of $512 million, Economic Net Income (controlling interest) of $702 million
10% full-year Economic Earnings per share growth reflects AMG’s ongoing strategic evolution and disciplined capital allocation strategy
Repurchased $700 million in common stock or approximately 13% of shares outstanding in 2024

WEST PALM BEACH, Fla., Feb. 06, 2025 (GLOBE NEWSWIRE) — AMG, a strategic partner to leading independent investment management firms globally, today reported its financial and operating results for the fourth quarter and year ended December 31, 2024.

Jay C. Horgen, President and Chief Executive Officer of AMG, said:
“AMG delivered record Economic Earnings per share in 2024; growth of 10% relative to the prior year reflected the ongoing evolution of our business and the positive impact of our disciplined capital allocation strategy.

“In 2024, we continued to strategically evolve our business, increasing our exposure to alternatives, which further enhances our long-term growth prospects. AMG’s private markets Affiliates raised approximately $24 billion during the year, reflecting the ongoing demand for our Affiliates’ specialized strategies. Throughout the year we continued to invest our capital and resources alongside our Affiliates to develop new products for the U.S. wealth marketplace, including additional innovative alternative solutions across private markets and liquid alternatives.

“This morning, we announced our investment in NorthBridge Partners, a leading vertically integrated real estate manager with excellent forward prospects, given its deep expertise and targeted investment strategy in last-mile logistics, a high-growth sector benefiting from the expanding digital economy and evolving supply chain dynamics. Our partnership with NorthBridge broadens AMG’s participation in private markets and underscores our focus on investing in areas of secular growth. AMG’s proven ability to magnify the competitive advantages of partner-owned firms, while also preserving their independence, continues to differentiate AMG’s partnership model and is highly valued by prospective Affiliates.

“Our execution across each element of our growth strategy, including investing in new Affiliate partnerships, investing in our existing Affiliates, and investing in AMG’s capabilities to magnify our Affiliates’ success, is driving the evolution of our distinctive business profile. Given AMG’s proven strategic capabilities and 30-year track record of successful partnerships, our opportunities to invest in growth are expanding. With our ample financial flexibility and disciplined capital allocation framework, we enter 2025 in an excellent position to continue executing on our strategy, and create meaningful incremental shareholder value over time.”

FINANCIAL HIGHLIGHTS	Three Months Ended						Years Ended
(in millions, except as noted and per share data)	12/31/2023			12/31/2024			12/31/2023			12/31/2024
Operating Performance Measures
AUM (at period end, in billions)	$	672.7		$	707.9		$	672.7		$	707.9
Average AUM (in billions)		648.1			717.3			660.3			700.5
Net client cash flows (in billions)		(6.1	)		(8.3	)		(29.2	)		(13.9	)
Aggregate fees		1,560.9			1,509.2			5,066.6			5,236.0
Financial Performance Measures
Net income (controlling interest)	$	196.2		$	162.1		$	672.9		$	511.6
Earnings per share (diluted)⁽¹⁾		5.15			4.92			17.42			15.13
Supplemental Performance Measures⁽²⁾
Adjusted EBITDA (controlling interest)	$	296.2		$	281.7		$	935.7		$	973.1
Economic net income (controlling interest)		242.9			205.8			717.8			701.6
Economic earnings per share		6.86			6.53			19.48			21.36

For additional information on our Supplemental Performance Measures, including reconciliations to GAAP, see the Financial Tables and Notes.

Capital Management
During the fourth quarter of 2024, the Company repurchased approximately $120 million in common stock, bringing full-year share repurchases to approximately $700 million. The Company also announced a fourth-quarter cash dividend of $0.01 per share of common stock, payable March 4, 2025 to stockholders of record as of the close of business on February 18, 2025.

About AMG
AMG (NYSE: AMG) is a strategic partner to leading independent investment management firms globally. AMG’s strategy is to generate long‐term value by investing in high-quality independent partner-owned firms, through a proven partnership approach, and allocating resources across AMG’s unique opportunity set to the areas of highest growth and return. Through its distinctive approach, AMG magnifies its Affiliates’ existing advantages and actively supports their independence and ownership culture. As of December 31, 2024, AMG’s aggregate assets under management were approximately $708 billion across a diverse range of private markets, liquid alternative, and differentiated long-only investment strategies. For more information, please visit the Company’s website at www.amg.com.

Conference Call, Replay and Presentation Information
A conference call will be held with AMG’s management at 8:30 a.m. Eastern time today. Parties interested in listening to the conference call should dial 1-877-407-8291 (U.S. calls) or 1-201-689-8345 (non-U.S. calls) shortly before the call begins.

The conference call will also be available for replay beginning approximately one hour after the conclusion of the call. To hear a replay of the call, please dial 1-877-660-6853 (U.S. calls) or 1-201-612-7415 (non-U.S. calls) and provide conference ID 13750674. The live call and replay of the session and a presentation highlighting the Company’s performance can also be accessed via AMG’s website at https://ir.amg.com/.

Financial Tables Follow

ASSETS UNDER MANAGEMENT – STATEMENTS OF CHANGES *(in billions)*

	Alternatives						Differentiated Long-Only
BY STRATEGY – QUARTER TO DATE	Private Markets			Liquid Alternatives			Equities			Multi-Asset & Fixed Income			Total
AUM, September 30, 2024	$	131.2		$	135.3		$	345.9		$	116.0		$	728.4
Client cash inflows and commitments		5.6			8.9			10.2			5.2			29.9
Client cash outflows		(0.1	)		(7.3	)		(25.8	)		(5.0	)		(38.2	)
Net client cash flows		5.5			1.6			(15.6	)		0.2			(8.3	)
Market changes		(0.2	)		3.5			(2.5	)		0.4			1.2
Foreign exchange		(0.5	)		(3.1	)		(6.3	)		(1.3	)		(11.2	)
Realizations and distributions (net)		(0.7	)		(0.2	)		(1.3	)		(0.1	)		(2.3	)
Other		0.1			3.6			(4.0	)		0.4			0.1
AUM, December 31, 2024	$	135.4		$	140.7		$	316.2		$	115.6		$	707.9

	Alternatives						Differentiated Long-Only
BY STRATEGY – YEAR TO DATE	Private Markets			Liquid Alternatives			Equities			Multi-Asset & Fixed Income			Total
AUM, December 31, 2023	$	114.8		$	124.0		$	329.4		$	104.5		$	672.7
Client cash inflows and commitments		23.7			27.5			38.1			22.1			111.4
Client cash outflows		(0.2	)		(25.6	)		(80.2	)		(19.3	)		(125.3	)
Net client cash flows		23.5			1.9			(42.1	)		2.8			(13.9	)
New investments		0.7			—			—			0.7			1.4
Market changes		0.4			10.6			41.4			8.7			61.1
Foreign exchange		(0.3	)		(0.8	)		(4.6	)		(1.2	)		(6.9	)
Realizations and distributions (net)		(4.4	)		(0.5	)		(1.4	)		(0.3	)		(6.6	)
Other		0.7			5.5			(6.5	)		0.4			0.1
AUM, December 31, 2024	$	135.4		$	140.7		$	316.2		$	115.6		$	707.9


CONSOLIDATED STATEMENTS OF INCOME

	Three Months Ended
(in millions, except per share data)	12/31/2023			12/31/2024
Consolidated revenue	$	502.7		$	524.2

Consolidated expenses:
Compensation and related expenses		244.5			238.8
Selling, general and administrative		84.8			98.4
Intangible amortization and impairments		10.8			7.3
Interest expense		31.4			35.2
Depreciation and other amortization		3.0			4.0
Other expenses (net)		9.6			8.8
Total consolidated expenses		384.1			392.5

Equity method income (net)⁽³⁾		125.7			124.5
Affiliate Transaction gains⁽⁴⁾		—			—
Investment and other income		29.8			17.5
Income before income taxes		274.1			273.7

Income tax expense		29.8			52.6
Net income		244.3			221.1

Net income (non-controlling interests)		(48.1	)		(59.0	)
Net income (controlling interest)	$	196.2		$	162.1

Average shares outstanding (basic)		33.7			30.1
Average shares outstanding (diluted)		41.3			36.0

Earnings per share (basic)	$	5.83		$	5.39
Earnings per share (diluted)⁽¹⁾	$	5.15		$	4.92


RECONCILIATIONS OF SUPPLEMENTAL PERFORMANCE MEASURES⁽²⁾

	Three Months Ended
(in millions, except per share data)	12/31/2023			12/31/2024
Net income (controlling interest)	$	196.2		$	162.1
Intangible amortization and impairments		39.9			30.5
Intangible-related deferred taxes		12.8			15.3
Affiliate Transactions⁽⁴⁾		—			—
Other economic items		(6.0	)		(2.1	)
Economic net income (controlling interest)	$	242.9		$	205.8

Average shares outstanding (adjusted diluted)		35.4			31.5
Economic earnings per share	$	6.86		$	6.53

Net income (controlling interest)	$	196.2		$	162.1
Interest expense		31.4			35.2
Income taxes		34.5			54.9
Intangible amortization and impairments		39.9			30.5
Affiliate Transactions⁽⁴⁾		—			—
Other items		(5.8	)		(1.0	)
Adjusted EBITDA (controlling interest)	$	296.2		$	281.7

See Notes for additional information.

CONSOLIDATED STATEMENTS OF INCOME

	Years Ended
(in millions, except per share data)	12/31/2023			12/31/2024
Consolidated revenue	$	2,057.8		$	2,040.9

Consolidated expenses:
Compensation and related expenses		907.5			915.3
Selling, general and administrative		358.2			376.5
Intangible amortization and impairments		48.3			29.0
Interest expense		123.8			133.3
Depreciation and other amortization		13.0			13.4
Other expenses (net)		45.8			40.3
Total consolidated expenses		1,496.6			1,507.8

Equity method income (net)⁽³⁾		280.0			312.7
Affiliate Transaction gains⁽⁴⁾		133.1			—
Investment and other income		117.1			77.4
Income before income taxes		1,091.4			923.2

Income tax expense		185.3			182.6
Net income		906.1			740.6

Net income (non-controlling interests)		(233.2	)		(229.0	)
Net income (controlling interest)	$	672.9		$	511.6

Average shares outstanding (basic)		35.1			31.1
Average shares outstanding (diluted)		42.2			36.1

Earnings per share (basic)	$	19.18		$	16.45
Earnings per share (diluted)⁽¹⁾	$	17.42		$	15.13


RECONCILIATIONS OF SUPPLEMENTAL PERFORMANCE MEASURES⁽²⁾

	Years Ended
(in millions, except per share data)	12/31/2023			12/31/2024
Net income (controlling interest)	$	672.9		$	511.6
Intangible amortization and impairments		128.5			149.2
Intangible-related deferred taxes		57.3			61.9
Affiliate Transactions⁽⁴⁾		(122.1	)		—
Other economic items		(18.8	)		(21.1	)
Economic net income (controlling interest)	$	717.8		$	701.6

Average shares outstanding (adjusted diluted)		36.8			32.8
Economic earnings per share	$	19.48		$	21.36

Net income (controlling interest)	$	672.9		$	511.6
Interest expense		123.8			133.3
Income taxes		185.2			187.9
Intangible amortization and impairments		128.5			149.2
Affiliate Transactions⁽⁴⁾		(162.7	)		—
Other items		(12.0	)		(8.9	)
Adjusted EBITDA (controlling interest)	$	935.7		$	973.1

See Notes for additional information.

CONSOLIDATED BALANCE SHEETS

	Years Ended
(in millions)	12/31/2023			12/31/2024
Assets
Cash and cash equivalents	$	813.6		$	950.0
Receivables		368.4			409.7
Investments		941.9			595.6
Goodwill		2,523.6			2,504.9
Acquired client relationships (net)		1,812.4			1,777.8
Equity method investments in Affiliates (net)		2,288.5			2,246.6
Fixed assets (net)		67.3			57.6
Other assets		243.9			288.7
Total assets	$	9,059.6		$	8,830.9

Liabilities and Equity
Payables and accrued liabilities	$	628.5		$	639.1
Debt		2,537.5			2,620.2
Deferred tax liability (net)		463.8			520.5
Other liabilities		466.3			402.4
Total liabilities		4,096.1			4,182.2

Redeemable non-controlling interests		393.4			350.5
Equity:
Common stock		0.6			0.6
Additional paid-in capital		741.4			733.1
Accumulated other comprehensive loss		(167.6	)		(163.6	)
Retained earnings		6,389.6			6,899.8
		6,964.0			7,469.9
Less: treasury stock, at cost		(3,376.1	)		(4,124.6	)
Total stockholders’ equity		3,587.9			3,345.3
Non-controlling interests		982.2			952.9
Total equity		4,570.1			4,298.2
Total liabilities and equity	$	9,059.6		$	8,830.9

Notes

(1)	Earnings per share (diluted) adjusts for the dilutive effect of the potential issuance of incremental shares of our common stock.

	We assume the settlement of all of our Redeemable non-controlling interests using the maximum number of shares permitted under our arrangements. The issuance of shares and the related income acquired are excluded from the calculation if an assumed purchase of Redeemable non-controlling interests would be anti-dilutive to diluted earnings per share.

	We are required to apply the if-converted method to our outstanding junior convertible securities when calculating Earnings per share (diluted). Under the if-converted method, shares that are issuable upon conversion are deemed outstanding, regardless of whether the securities are contractually convertible into our common stock at that time. For this calculation, the interest expense (net of tax) attributable to these dilutive securities is added back to Net income (controlling interest), reflecting the assumption that the securities have been converted. Issuable shares for these securities and related interest expense are excluded from the calculation if an assumed conversion would be anti-dilutive to diluted earnings per share.

	The following table provides a reconciliation of the numerator and denominator used in the calculation of basic and diluted earnings per share:

	Three Months Ended				Years Ended
(in millions)	12/31/2023		12/31/2024		12/31/2023		12/31/2024
Numerator
Net income (controlling interest)	$	196.2	$	162.1	$	672.9	$	511.6
Income from hypothetical settlement of Redeemable non-controlling interests, net of taxes		12.9		11.7		49.0		20.5
Interest expense on junior convertible securities, net of taxes		3.4		3.4		13.4		13.4
Net income (controlling interest), as adjusted	$	212.5	$	177.2	$	735.3	$	545.5
Denominator
Average shares outstanding (basic)		33.7		30.1		35.1		31.1
Effect of dilutive instruments:
Stock options and restricted stock units		1.7		1.4		1.7		1.7
Hypothetical issuance of shares to settle Redeemable non-controlling interests		4.2		2.8		3.7		1.6
Junior convertible securities		1.7		1.7		1.7		1.7
Average shares outstanding (diluted)		41.3		36.0		42.2		36.1

(2)	As supplemental information, we provide non-GAAP performance measures of Adjusted EBITDA (controlling interest), Economic net income (controlling interest), and Economic earnings per share. We believe that many investors use our Adjusted EBITDA (controlling interest) when comparing our financial performance to other companies in the investment management industry. Management utilizes these non-GAAP performance measures to assess our performance before our share of certain non-cash GAAP expenses primarily related to the acquisition of interests in Affiliates and to improve comparability between periods. Economic net income (controlling interest) and Economic earnings per share are used by management and our Board of Directors as our principal performance benchmarks, including as one of the measures for determining executive compensation. These non-GAAP performance measures are provided in addition to, but not as a substitute for, Net income (controlling interest), Earnings per share, or other GAAP performance measures. For additional information on our non-GAAP measures, see our most recent Annual and Quarterly Reports on Form 10-K and 10-Q, respectively, which are accessible on the SEC’s website at www.sec.gov.

	Adjusted EBITDA (controlling interest) represents our performance before our share of interest expense, income and certain non-income based taxes, depreciation, amortization, impairments, gains and losses related to Affiliate Transactions, and non-cash items such as certain Affiliate equity activity, gains and losses on our contingent payment obligations, and unrealized gains and losses on seed capital, general partner commitments, and other strategic investments. Adjusted EBITDA (controlling interest) is also adjusted to include realized economic gains and losses related to these seed capital, general partner commitments, and other strategic investments.

	Under our Economic net income (controlling interest) definition, we adjust Net income (controlling interest) for our share of pre-tax intangible amortization and impairments related to intangible assets (including the portion attributable to equity method investments in Affiliates) because these expenses do not correspond to the changes in the value of these assets, which do not diminish predictably over time. We also adjust for deferred taxes attributable to intangible assets because we believe it is unlikely these accruals will be used to settle material tax obligations. Further, we adjust for gains and losses related to Affiliate Transactions, net of tax, and other economic items. Other economic items include certain Affiliate equity activity, gains and losses related to contingent payment obligations, tax windfalls and shortfalls from share-based compensation, unrealized gains and losses on seed capital, general partner commitments, and other strategic investments, and realized economic gains and losses related to these seed capital, general partner commitments, and other strategic investments.

	Economic earnings per share represents Economic net income (controlling interest) divided by the Average shares outstanding (adjusted diluted). In this calculation, we exclude the potential shares issued upon settlement of Redeemable non-controlling interests from Average shares outstanding (adjusted diluted) because we intend to settle those obligations without issuing shares, consistent with all prior Affiliate equity purchase transactions. The potential share issuance in connection with our junior convertible securities is measured using a “treasury stock” method. Under this method, only the net number of shares of common stock equal to the value of the junior convertible securities in excess of par, if any, are deemed to be outstanding. We believe the inclusion of net shares under a treasury stock method best reflects the benefit of the increase in available capital resources (which could be used to repurchase shares of our common stock) that occurs when these securities are converted and we are relieved of our debt obligation.

	The following table provides a reconciliation of Average shares outstanding (adjusted diluted):

	Three Months Ended				Years Ended
(in millions)	12/31/2023		12/31/2024		12/31/2023		12/31/2024
Average shares outstanding (diluted)	41.3		36.0		42.2		36.1
Hypothetical issuance of shares to settle Redeemable non-controlling interests	(4.2	)	(2.8	)	(3.7	)	(1.6	)
Junior convertible securities	(1.7	)	(1.7	)	(1.7	)	(1.7	)
Average shares outstanding (adjusted diluted)	35.4		31.5		36.8		32.8

(3)	The following table presents equity method earnings and equity method intangible amortization and impairments, which in aggregate form Equity method income (net):

		Three Months Ended						Years Ended
	(in millions)	12/31/2023			12/31/2024			12/31/2023			12/31/2024
	Equity method earnings	$	158.3		$	150.1		$	375.6		$	442.7
	Equity method intangible amortization and impairments		(32.6	)		(25.6	)		(95.6	)		(130.0	)
	Equity method income (net)	$	125.7		$	124.5		$	280.0		$	312.7

(4)	The following table presents the impact of the completion of our previously announced sales of our equity interests in Veritable, LP to a third party in the third quarter of 2023, and Baring Private Equity Asia to EQT AB (“EQT”), a public company listed on Nasdaq Stockholm (EQT ST), in the fourth quarter of 2022, pursuant to which we received ordinary shares of EQT:

		Three Months Ended				Years Ended
	(in millions)	12/31/2023		12/31/2024		12/31/2023			12/31/2024
	Affiliate Transaction gain	$	—	$	—	$	133.1		$	—
	Investment and other income – Realized gains on EQT shares		—		—		29.6			—
	Affiliate Transactions, pre-tax		—		—		162.7			—
	Income taxes		—		—		(40.6	)		—
	Affiliate Transactions, after-tax	$	—	$	—	$	122.1		$	—

Forward-Looking Statements and Other Matters

Certain matters discussed in this press release issued by Affiliated Managers Group, Inc. (“AMG” or the “Company”) may constitute forward-looking statements within the meaning of the federal securities laws. These statements include, but are not limited to, statements related to our expectations regarding the performance of our business, our financial results, our liquidity and capital resources, and other non-historical statements. You can identify these forward-looking statements by the use of words such as “outlook,” “guidance,” “believes,” “expects,” “potential,” “preliminary,” “continues,” “may,” “will,” “should,” “seeks,” “approximately,” “predicts,” “projects,” “positioned,” “prospects,” “intends,” “plans,” “estimates,” “pending investments,” “anticipates,” or the negative version of these words or other comparable words. Actual results and the timing of certain events could differ materially from those projected in or contemplated by the forward-looking statements due to a number of factors, including changes in the securities or financial markets or in general economic conditions, the availability of equity and debt financing, competition for acquisitions of interests in investment management firms, uncertainties relating to closing of pending investments or transactions and potential changes in the anticipated benefits thereof, the investment performance and growth rates of our Affiliates and their ability to effectively market their investment strategies, the mix of Affiliate contributions to our earnings, and other risks, uncertainties, and assumptions, including those described under the section entitled “Risk Factors” in our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Such factors may be updated from time to time in our periodic filings with the SEC. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in our filings with the SEC. We undertake no obligation to publicly update or review any forward-looking statements, whether as a result of new information, future developments, or otherwise, except as required by applicable law.

This release does not constitute an offer of any products, investment vehicles, or services of any AMG Affiliate.

From time to time, AMG may use its website as a distribution channel of material Company information. AMG routinely posts financial and other important information regarding the Company in the Investor Relations section of its website at www.amg.com and encourages investors to consult that section regularly.

Investor and Media Relations
Patricia Figueroa
+1 (617) 747-3300
ir@amg.com
pr@amg.com

The MIL Network –

February 7, 2025

MIL-OSI: eQ Plc Managers’ Transactions – Jacob af Forselles

Source: GlobeNewswire (MIL-OSI)

eQ Plc Managers’ Transactions
6 February 2025 at 1:00 p.m.

Person subject to the notification requirement
Name: Magnus af Forselles
Position: Other senior manager

Issuer: eQ Oyj
LEI: 743700R4FA6AVH5J3D68
Notification type: INITIAL NOTIFICATION
Reference number: 94994/4/4
____________________________________________
Transaction date: 2025-02-03
Outside a trading venue
Instrument type: FINANCIAL INSTRUMENT LINKED TO A SHARE OR A DEBT INSTRUMENT
Name of the instrument: eQ Oyj Optio-oikeudet 2025
Nature of transaction: ACCEPTANCE OF A STOCK OPTION

Transaction details
(1): Volume: 40000 Unit price: 0 EUR

Aggregated transactions (1):
Volume: 40000 Volume weighted average price: 0 EUR

eQ Plc

Additional information: Juha Surve, Group General Counsel, tel. +358 9 6817 8733

Distribution: Nasdaq Helsinki, www.eQ.fi

eQ Group is a Finnish group of companies specialising in asset management and corporate finance business. eQ Asset Management offers a wide range of asset management services (including private equity funds and real estate asset management) for institutions and individuals. The assets managed by the Group total approximately EUR 13.4 billion. Advium Corporate Finance, which is part of the Group, offers services related to mergers and acquisitions, real estate transactions and equity capital markets.

More information about the Group is available on our website at www.eQ.fi.

The MIL Network –

February 7, 2025
MIL-OSI: eQ Plc Managers’ Transactions – Staffan Jåfs

Source: GlobeNewswire (MIL-OSI)

eQ Plc Managers’ Transactions
6 February 2025 at 1:00 p.m.

Person subject to the notification requirement
Name: Staffan Jåfs
Position: Other senior manager

Issuer: eQ Oyj
LEI: 743700R4FA6AVH5J3D68
Notification type: INITIAL NOTIFICATION
Reference number: 94979/5/4
____________________________________________
Transaction date: 2025-02-04
Outside a trading venue
Instrument type: FINANCIAL INSTRUMENT LINKED TO A SHARE OR A DEBT INSTRUMENT
Name of the instrument: eQ Oyj Optio-oikeudet 2025
Nature of transaction: ACCEPTANCE OF A STOCK OPTION

Transaction details
(1): Volume: 70000 Unit price: 0 EUR

Aggregated transactions (1):
Volume: 70000 Volume weighted average price: 0 EUR

eQ Plc

Additional information: Juha Surve, Group General Counsel, tel. +358 9 6817 8733

Distribution: Nasdaq Helsinki, www.eQ.fi

eQ Group is a Finnish group of companies specialising in asset management and corporate finance business. eQ Asset Management offers a wide range of asset management services (including private equity funds and real estate asset management) for institutions and individuals. The assets managed by the Group total approximately EUR 13.4 billion. Advium Corporate Finance, which is part of the Group, offers services related to mergers and acquisitions, real estate transactions and equity capital markets.

More information about the Group is available on our website at www.eQ.fi.

The MIL Network –

February 7, 2025
MIL-OSI: eQ Plc Managers’ Transactions – Juha Surve

Source: GlobeNewswire (MIL-OSI)

eQ Plc Managers’ Transactions
6 February 2025 at 1:00 p.m.

Person subject to the notification requirement
Name: Juha Surve
Position: Other senior manager

Issuer: eQ Oyj
LEI: 743700R4FA6AVH5J3D68
Notification type: INITIAL NOTIFICATION
Reference number: 95018/4/4
____________________________________________
Transaction date: 2025-02-03
Outside a trading venue
Instrument type: FINANCIAL INSTRUMENT LINKED TO A SHARE OR A DEBT INSTRUMENT
Name of the instrument: eQ Oyj Optio-oikeudet 2025
Nature of transaction: ACCEPTANCE OF A STOCK OPTION

Transaction details
(1): Volume: 40000 Unit price: 0 EUR

Aggregated transactions (1):
Volume: 40000 Volume weighted average price: 0 EUR

eQ Plc

Additional information: Juha Surve, Group General Counsel, tel. +358 9 6817 8733

Distribution: Nasdaq Helsinki, www.eQ.fi

eQ Group is a Finnish group of companies specialising in asset management and corporate finance business. eQ Asset Management offers a wide range of asset management services (including private equity funds and real estate asset management) for institutions and individuals. The assets managed by the Group total approximately EUR 13.4 billion. Advium Corporate Finance, which is part of the Group, offers services related to mergers and acquisitions, real estate transactions and equity capital markets.

More information about the Group is available on our website at www.eQ.fi.

The MIL Network –

February 7, 2025
MIL-OSI: eQ Plc Managers’ Transactions – Tero Estovirta

Source: GlobeNewswire (MIL-OSI)

eQ Plc Managers’ Transactions
6 February 2025 at 1:00 p.m.

Person subject to the notification requirement
Name: Tero Estovirta
Position: Other senior manager

Issuer: eQ Oyj
LEI: 743700R4FA6AVH5J3D68
Notification type: INITIAL NOTIFICATION
Reference number: 94828/4/4
____________________________________________
Transaction date: 2025-02-03
Outside a trading venue
Instrument type: FINANCIAL INSTRUMENT LINKED TO A SHARE OR A DEBT INSTRUMENT
Name of the instrument: eQ Oyj Optio-oikeudet 2025
Nature of transaction: ACCEPTANCE OF A STOCK OPTION

Transaction details
(1): Volume: 70000 Unit price: 0 EUR

Aggregated transactions (1):
Volume: 70000 Volume weighted average price: 0 EUR

eQ Plc

Additional information: Juha Surve, Group General Counsel, tel. +358 9 6817 8733

Distribution: Nasdaq Helsinki, www.eQ.fi

eQ Group is a Finnish group of companies specialising in asset management and corporate finance business. eQ Asset Management offers a wide range of asset management services (including private equity funds and real estate asset management) for institutions and individuals. The assets managed by the Group total approximately EUR 13.4 billion. Advium Corporate Finance, which is part of the Group, offers services related to mergers and acquisitions, real estate transactions and equity capital markets.

More information about the Group is available on our website at www.eQ.fi.

The MIL Network –

February 7, 2025
MIL-OSI: eQ Plc Managers’ Transactions – Antti Lyytikäinen

Source: GlobeNewswire (MIL-OSI)

eQ Plc Managers’ Transactions
6 February 2025 at 1:00 p.m.

Person subject to the notification requirement
Name: Antti Lyytikäinen
Position: Chief Financial Officer

Issuer: eQ Oyj
LEI: 743700R4FA6AVH5J3D68
Notification type: INITIAL NOTIFICATION
Reference number: 94961/4/4
____________________________________________
Transaction date: 2025-02-03
Outside a trading venue
Instrument type: FINANCIAL INSTRUMENT LINKED TO A SHARE OR A DEBT INSTRUMENT
Name of the instrument: eQ Oyj Optio-oikeudet 2025
Nature of transaction: ACCEPTANCE OF A STOCK OPTION

Transaction details
(1): Volume: 70000 Unit price: 0 EUR

Aggregated transactions (1):
Volume: 70000 Volume weighted average price: 0 EUR

eQ Plc

Additional information: Juha Surve, Group General Counsel, tel. +358 9 6817 8733

Distribution: Nasdaq Helsinki, www.eQ.fi

eQ Group is a Finnish group of companies specialising in asset management and corporate finance business. eQ Asset Management offers a wide range of asset management services (including private equity funds and real estate asset management) for institutions and individuals. The assets managed by the Group total approximately EUR 13.4 billion. Advium Corporate Finance, which is part of the Group, offers services related to mergers and acquisitions, real estate transactions and equity capital markets.

More information about the Group is available on our website at www.eQ.fi.

The MIL Network –

February 7, 2025
MIL-OSI Economics: Steven Maijoor: Cyber resilience in an age of geopolitical tensions

Source: Bank for International Settlements

On December 12th 2023, Kyivstar, Ukraine’s largest telecom provider, suffered a cyberattack that disrupted services for millions of users. The attack, attributed to the Russian state-sponsored group Sandworm, was one of the biggest cyber incidents in Ukraine since the onset of the Russian invasion. The hackers had infiltrated Kyivstar’s infrastructure months earlier. They deployed malware that erased thousands of virtual servers and personal computers, crippling the company’s network for managing communication services.

The attack had several immediate effects. First of all, approximately half of Kyivstar’s network was disabled, leaving millions without mobile and internet connection. But the damage wasn’t limited to the telecom sector. The attack also disrupted banking operations, payment processing, and online banking services. Some ATMs and point-of-sale terminals didn’t work. Financial transactions were in disarray across the country.

Amazingly, the Ukrainians were quickly able to restore services. Over the past three years they have become quite proficient in dealing with large-scale disruption. Many critical processes in Ukraine are equipped with redundancy measures. Many people even have two sim cards in their phones. That enabled the other Ukrainian telecom providers to circumvent the outage. Services at Kyivstar were gradually reinstated, with almost full restoration achieved eight days after the attack.

This episode raises some inconvenient questions. What if this would happen to us? What if a large scale Russian or Chinese cyberattack is launched on the telecoms sector of an EU member state? Would it be possible? How much damage could such an attack cause? Would it affect financial services? And would we be able to recover as quickly as the Ukrainians did?

A few years ago, most people would have found these questions to be rather hypothetical, but today, unfortunately, they have become quite urgent. Geopolitical tensions have been rising for more than a decade, but over the past few years they have accelerated. Countries are re-arming, they are protecting their strategic economic infrastructures, they are imposing trade restrictions and sanctions on each other, and they are weaponising access to international financial infrastructures and services. Needless to say this is bad news for the world economy and the financial sector. But perhaps in no area is the geopolitical threat so real and acute as in the digital domain.

Apart from the Kyivstar case, there are many other examples to back this up. In late 2023, a Russian hacker breached Microsoft’s corporate network by exploiting a legacy account. As a result, the security and confidentiality of the email accounts of many organisations around the world were potentially compromised. Last year, the FBI discovered a dormant network of Chinese hackers in the United States that had compromised hundreds of routers and that was on standby to launch an attack if called on. And recently, Russian and Chinese vessels were suspected of damaging subsea data cables. Since state-sponsored cyberattacks are often very well concealed, we do not have reliable numbers on how often they occur. But anecdotal information from intelligence agencies, like the Dutch General Intelligence and Security Service, suggest their number is increasing.

Traditionally, the financial sector has been an attractive target for cyber criminals with financial motives. But with the changing geopolitical climate, nation-state cyberattacks have become a very real possibility. Their main aim is to cause disruption and to steal sensitive information. Nation-state actors possess more resources, sophistication, and endurance than other hackers. And many sectors of the economy have become more vulnerable to large-scale disruption due to increased complexity and digitalisation. This is certainly true of financial services, with their long outsourcing chains and interconnectedness. And many financial firms depend on the same third-party service providers, so if one of these suppliers is attacked, large chunks of the financial sector may experience the knock-on effects. As we showed in our latest Financial Stability overview, a quarter of all reported global cyberattacks can potentially affect the financial sector through a vital process run by a third party on which the financial system depends.

So, to answer the questions I posed at the start: yes, I think a major state-sponsored cyberattack on the financial sector or one of its supporting sectors could happen. And frankly, I hope we would be able to recover as quickly as the Ukrainians did.

That is not because financial institutions haven’t prepared. Many financial institutions have taken big steps in recent years to boost their cyber resilience. I think it is fair to say the financial industry is one of the better digitally defended sectors in the economy. As it should be. But given the size and urgency of the threat, we need to do even more to keep financial services safe. This is why cyber resilience will absolutely be a key focus area in our supervision of the financial industry in the coming years. This goes both for De Nederlandsche Bank, and for the European Central Bank.

Our aim is to make financial services safer against cyber threats. Not only by increasing the resilience of the financial sector itself, but also by stepping up the robustness of the entire chain of ICT service providers. DORA, the European Digital Operational Resilience Act, that came into effect at the beginning of this year, gives us additional tools to accomplish this aim.

To start with, under DORA, threat-led penetration tests are mandatory for the largest financial institutions in Europe. In the Netherlands we have been conducting these kinds of tests voluntarily for over eight years with good results, and we are very pleased that it is now becoming the norm at the European level.

But DORA also imposes stricter requirements for managing cyber risks in outsourcing chains. For example, financial firms face stricter rules for conducting due diligence on potential ICT providers. As a result, Fintechs may also experience more stringent due diligence from financial sector customers. And very importantly, under DORA, European supervisors can conduct inspections of critical third-party ICT service providers in tandem with national supervisory authorities. We expect bigtechs like Google and Microsoft to be placed under EU-wide supervision. And, just as with the banks, we are going to test their readiness to detect and withstand cyberattacks.

Despite all efforts, there is no such thing as perfect cyber security. It is therefore vital that financial institutions take measures to recover quickly after cyber incidents. This is crucial to ensure that services can continue and people don’t lose trust in financial firms or the financial sector as a whole.

The results of the ECB’s 2024 cyber stress test show that there is room for improvement on the recovery front. So it’s a very good thing that DORA also imposes new requirements on institutions’ continuity plans and backup policies. They need to develop a culture where cyber incidents are quickly detected and reported, they need to have their playbooks in place and they need to have clearly defined management roles and responsibilities. These are key ingredients for an effective response after a cyberattack.

An important principle of our supervision has always been that financial institutions are responsible for putting their own house in order. And that is also the case with cybersecurity. But if we only focus on individual institutions, we miss something. As I mentioned, on a digital level the financial sector is so interconnected, and connected to other vital sectors of the economy as well, that some degree of overall coordination and cooperation is necessary to arrive at an optimal level of resilience. Notably, recent assessments, derived from nationwide contingency exercises in the Netherlands, reveal various weaknesses. These weaknesses relate to the exchange of information between critical infrastructure providers, the distribution of roles and responsibilities, and the mobilisation of scarce cyber security knowledge and expertise in the event of major cyber incidents.

So the message here is: we need to work together. Governments should take the lead to improve cross-sectoral cooperation and coordination. They must continue to conduct large-scale cyber-drills and practice activating crisis plans. The insights gained should be used to enhance resilience.

But there is also a role for financial supervisors like DNB. Under the new legislation, we do not only need to check whether financial firms are compliant, but we also have an obligation ourselves to look over the fence and cooperate closely with other sectors. DNB is putting this into practice by working with vital sectors that are most critical to the financial sector, such as energy and telecommunications. Within our mandate, we support these sectors with information, cooperation and ethical hacking experience.

To sum up, the threat of major disruptions to our financial system from nation-state cyberattacks has become more urgent. Financial firms, and the entire outsourcing chain on which they depend, therefore need to do whatever they can to further boost their cyber resilience. Both in terms of detection and recovery. Cyber resilience is a top priority for European financial supervisors and there are new European laws in place. And we are going to use these laws to make sure that financial institutions under our supervision are as secure and well defended as possible. Enhancing resilience also means we need to work together. Governments, financial firms, supervisors, telecom, energy and other vital players in the outsourcing chain. Because in cyberspace, we are all linked together. And after all, a chain is only as strong as its weakest link.

Thank you.

MIL OSI Economics –

February 7, 2025

MIL-OSI: Societe Generale: Fourth quarter & 2024 full year results

Source: GlobeNewswire (MIL-OSI)

RESULTS AT 31 DECEMBER 2024

Press release
Paris, 6 February 2025

2024 RESULTS ABOVE ALL GROUP TARGETS
GROUP NET INCOME OF EUR 4.2 BILLION, +69% vs. 2023

Annual revenues of EUR 26.8 billion, up by +6.7% vs. 2023, above the ≥+5% target set for 2024, driven in particular by the strong rebound in net interest income in France and by an excellent performance in Global Banking and Investor Solutions with revenues above EUR 10 billion

Cost-to-income ratio of 69.0%, below the target of <71% set for 2024, thanks to tight control of costs, which are stable vs. 2023

Cost of risk at 26 basis points, at the lower end of the 2024 guidance range

Profitability (ROTE) of 6.9%, above the target of >6% expected for 2024

CET1 ratio of 13.3% at end-2024, around 310 basis points above regulatory requirement

+75% INCREASE IN DISTRIBUTION TO SHAREHOLDERS VS. 2023

Proposed distribution of EUR 1,740 million¹, equivalent to EUR 2.18 per share¹, composed of:

a cash dividend of EUR 1.09 per share to be proposed to the General Meeting

a share buyback programme of EUR 872 million, equivalent to EUR 1.09 per share¹. ECB approval has been obtained to launch the programme, due to start on 10 February 2025
Increase of the payout ratio to 50% of net income²

2025 FINANCIAL TARGETS, STRONG CAPITAL, EXECUTION DISCIPLINE

Revenue growth of more than +3%³ vs. 2024

Decrease in costs above -1%³ vs. 2024

Improvement of the cost-to-income ratio, less than 66% in 2025

Cost of risk between 25 and 30 basis points in 2025

Increase of the ROTE, more than 8% in 2025

CET1 ratio above 13% post Basel IV throughout the year 2025

With a solid CET1 ratio ahead of the capital trajectory, we are proposing to improve the distribution policy with:

an overall distribution payout ratio of 50% of net income²
a balanced distribution between cash dividends and share buybacks

Slawomir Krupa, the Group’s Chief Executive Officer, commented:
“In 2024, our performance improves materially. All our targets are exceeded and ahead of plan. Strong capital build-up, strong and sustainable business growth, strong cost control and risk management, and a material progress in our integration projects led to the doubling of the earnings per share. Against this strong backdrop, we are improving both the 2024 distribution and our distribution policy. I would like to thank the entire Societe Generale team for their dedication and remarkable commitment, every single day, to serving our clients and our Bank.
We will continue to focus in 2025 on the relentless execution of our strategy, improving our performance even further.”

GROUP CONSOLIDATED RESULTS

In EURm	Q4 24	Q4 23	Change		2024	2023	Change
Net banking income	6,621	5,957	+11.1%	+12.5%*	26,788	25,104	+6.7%	+5.7%*
Operating expenses	(4,595)	(4,666)	-1.5%	-0.7%*	(18,472)	(18,524)	-0.3%	-1.6%*
Gross operating income	2,026	1,291	+57.0%	+61.3%*	8,316	6,580	+26.4%	+26.6%*
Net cost of risk	(338)	(361)	-6.4%	-4.9%*	(1,530)	(1,025)	+49.3%	+48.6%*
Operating income	1,688	930	+81.6%	+87.4%*	6,786	5,555	+22.2%	+22.5%*
Net income/expense from other assets	(11)	(21)	+48.9%	+45.2%*	(77)	(113)	+31.4%	+26.3%*
Income tax	(413)	(302)	+36.6%	+40.5%*	(1,601)	(1,679)	-4.7%	-4.9%*
Net income	1,273	612	x 2.1	x 2.1*	5,129	3,449	+48.7%	+49.6%*
O.w. non-controlling interests	233	183	+27.0%	+33.6%*	929	957	-3.0%	-9.3%*
Group net income	1,041	429	x 2.4	x 2.5*	4,200	2,492	+68.6%	+73.2%*
ROE	5.8%	1.5%			6.1%	3.1%	+0.0%	+0.0%*
ROTE	6.6%	1.7%			6.9%	4.2%	+0.0%	+0.0%*
Cost to income	69.4%	78.3%			69.0%	73.8%	+0.0%	+0.0%*

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

The Board of Directors of Societe Generale, which met on 5 February 2025 under the chairmanship of Lorenzo Bini Smaghi, examined the Societe Generale Group’s results for Q4 24 and endorsed the 2024 financial statements.

Net banking income

Net banking income stood at EUR 6.6 billion, up by +11.1% vs. Q4 23.

Revenues of French Retail, Private Banking and Insurance were up by +15.5% vs. Q4 23 and totalled EUR 2.3 billion in Q4 24. Net interest income increased in Q4 24 (+36% vs. Q4 23), in line with the latest estimates. Assets under management in Private Banking and Insurance increased by +7% each in Q4 24 vs. Q4 23. Lastly, BoursoBank showed strong growth momentum with more than 460,000 new clients in the quarter, allowing to reach a client base of 7.2 million clients at end-December 2024, above the target of 7 million clients set for end-2024. In addition, BoursoBank posted a positive contribution to Group net income in 2024 for the second year in a row.

Global Banking and Investor Solutions registered a +12.4% increase in revenues relative to Q4 23. Revenues amounted to EUR 2.5 billion for the quarter, driven by strong momentum across all businesses. Global Markets grew by 9.8% in Q4 24 vs. Q4 23. Revenues from the Equities business were up by +10%, reaching a record level for a fourth quarter. They were driven by favourable market conditions, particularly after the result of the presidential elections in the United States. Fixed Income and Currencies were up by +9% owing to solid commercial activity in financing and intermediation across all asset classes. In Financing and Advisory, solid commercial momentum was recorded in structured finance and the performance of M&A and advisory continued to rebound. Likewise, Global Transaction & Payment Services posted a +26% increase in revenues vs. Q4 23, driven by a sustained commercial development across all businesses, particularly in correspondent banking.

Mobility, International Retail Banking and Financial Services’ revenues were up by +2.0% vs. Q4 23, mainly due to an increase in margins at Ayvens. International Retail Banking recorded a -3.6% fall in revenues vs. Q4 23 at EUR 1.0 billion, due to a scope effect related to the asset disposals finalised in Africa (Morocco, Chad, Congo, Madagascar). Revenues were up +3.4% at constant perimeter and exchange rates. Revenues from Mobility and Financial Services were up by +8.3% vs. Q4 23 mainly due to non-recuring items in Q4 23 and improved margins at Ayvens.

The Corporate Centre recorded revenues of EUR -159 million in Q4 24.

Over 2024, net banking income increased by +6.7% vs. 2023.

Operating expenses

Operating expenses came out to EUR 4,595 million in Q4 24, down by -1.5% vs. Q4 23.
They include a scope effect of around EUR 46 million related to the integration of Bernstein’s cash equity operations and a decrease in transformation costs of EUR 26 million. Excluding these items, operating expenses were down by nearly -2% in Q4 24 vs. Q4-23 owing to the effect of the cost saving measures implemented across all business lines.

The cost-to-income ratio stood at 69.4% in Q4 24, significantly lower than in Q4 23 (78.3%).

Over 2024, operating expenses remained relatively stable (-0.3% vs. 2023), thanks from rigorous cost management. The cost-to-income ratio stood at 69.0% (vs. 73.8% in 2023), a level below the target of 71% for 2024.

Cost of risk

The cost of risk fell to 23 basis points over the quarter (or EUR 338 million). This includes a EUR 386 million provision for non-performing loans (around 26 basis points) and a reversal of a provision on performing loans for EUR -48 million.

At end-December, the Group’s provisions on performing loans amounted to EUR 3,119 million, stable relative to 30 September 2024. The EUR -453 million contraction relative to 31 December 2023 is mainly owing to the application of IFRS 5.

The gross non-performing loan ratio stood at 2.81%⁴^,⁵ at 31 December 2024, significantly down vs. end of September 2024 (2.95%). The net coverage ratio on the Group’s non-performing loans stood at 81%⁶ at 31 December 2024 (after taking into account guarantees and collateral).

Net profits from other assets

The Group recorded a net loss of EUR -11 million in Q4 24, mainly related to the accounting impacts of finalised asset sales, such as the disposals of our activities in Morocco and Madagascar.

Group net income

Group net income stood at EUR 1,041 million for the quarter, equating to a Return on Tangible Equity (ROTE) of 6.6%.

Over the year, Group net income stood at EUR 4,200 million, equating to a Return on Tangible Equity (ROTE) of 6.9%.

Shareholder distribution

The Board of Directors approved the distribution policy for the 2024 fiscal year, aiming to distribute EUR 2.18 per share, equivalent to EUR 1,740 million, of which EUR 872 million in share buyback⁷. A cash dividend of EUR 1.09 per share will be proposed at the General Meeting of Shareholders on 20 May 2025. The dividend will be detached on 26 May 2025 and paid out on 28 May 2025.

AN ESTABLISHED ESG STRATEGY FROM WHICH TO STEP FORWARD

In 2024, Societe Generale accelerated the execution of its ESG roadmap, particularly with respect to the contribution to the environmental transition:

The Group now covers ~70% of companies’⁸ financed emissions, with 10 alignment targets for the carbon-intensive sectors. It has already reduced its oil and gas upstream exposure by more than 50% since the end of 2019⁹
In Q2 24 and ahead of schedule, the Group reached its target of EUR 300 billion for sustainable finance planned for the period 2022-2025. A new target of EUR 500 billion, complementing the work carried out as part of the portfolio alignment, was announced for the period 2024-2030. This will help increase the orientation of financial flows towards decarbonization activities.

The Group has broadened the scope of actions to prepare for a sustainable future by supporting new players and new technologies:

The EUR 1 billion investment for the transition, announced during the Capital Markets Day, has entered its operationalization phase
A new partnership with the EIB to unlock up to EUR 8 billion in the wind industry supply chain in Europe was signed in Q4 24.

At the same time, ESG risk management continues to be strengthened, enhancing forward-looking assessments of environmental risk materiality and further integrating environmental, social and governance risks into the risk framework.
Lastly, the Group is moving forward with its ambitions as a responsible employer: at the end of 2024, the “Group Leaders Circle” (Top 250) had ~30% women executives¹⁰ and ~30% international members. As announced during the Capital Markets Day, the EUR 100 million envelope commitment to reduce the gender pay gap was launched in 2023.

THE GROUP’S FINANCIAL STRUCTURE

At 31 December 2024, the Group’s Common Equity Tier 1 ratio stood at 13.3%¹¹, around 310 basis points above the regulatory requirement. Likewise, the Liquidity Coverage Ratio (LCR) was well ahead of regulatory requirements at 156% at end-December 2024 (145% on average for the quarter), and the Net Stable Funding Ratio (NSFR) stood at 117% at end-December 2024.

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

	31/12/2024	31/12/2023	Requirements
CET1⁽¹⁾	13.3%	13.1%	10.24%
Fully-loaded CET1	13.3%	13.1%	10.24%
Tier 1 ratio ⁽¹⁾	16.1%	15.6%	12.17%
Total Capital⁽¹⁾	18.9%	18.2%	14.73%
Leverage ratio⁽¹⁾	4.34%	4.25%	3.60%
TLAC (% RWA)⁽¹⁾	29.7%	31.9%	22.31%
TLAC (% leverage)⁽¹⁾	8.0%	8.7%	6.75%
MREL (% RWA)⁽¹⁾	34.2%	33.7%	27.58%
MREL (% leverage)⁽¹⁾	9.2%	9.2%	6.23%
End of period LCR	156%	160%	>100%
Period average LCR	145%	155%	>100%
NSFR	117%	119%	>100%

In EURbn	31/12/2024	31/12/2023
Total consolidated balance sheet	1,574	1,554
Shareholders’ equity (IFRS), Group share	70	66
Risk-weighted assets	390	389
O.w. credit risk	327	326
Total funded balance sheet	952	970
Customer loans	463	497
Customer deposits	614	618

At 31 December 2024, the parent company had issued EUR 43.2 billion in medium/long-term debt under its 2024 funding program. The subsidiaries had issued EUR 4.7 billion. In all, the Group has issued a total of EUR 47.9 billion.

At 10 January 2025, the parent company 2025 funding program was executed at 47% 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”.

FRENCH RETAIL, PRIVATE BANKING AND INSURANCE

In EURm	Q4 24	Q4 23	Change	2024	2023	Change
Net banking income	2,267	1,963	+15.5%	8,657	8,053	+7.5%
Of which net interest income	1,091	801	+36.2%	3,868	3,199	+20.9%
Of which fees	1,028	948	+8.5%	4,108	3,975	+3.3%
Operating expenses	(1,672)	(1,683)	-0.7%	(6,634)	(6,756)	-1.8%
Gross operating income	596	280	x 2.1	2,024	1,297	+56.0%
Net cost of risk	(115)	(163)	-29.6%	(712)	(505)	+41.0%
Operating income	481	118	x 4.1	1,312	792	+65.6%
Net profits or losses from other assets	(2)	5	n/s	6	9	-35.1%
Group net income	360	90	x 4.0	991	596	+66.2%
RONE	9.1%	2.3%		6.3%	3.9%
Cost to income	73.7%	85.7%		76.6%	83.9%

Commercial activity

SG Network, Private Banking and Insurance

The SG Network’s average outstanding deposits amounted to EUR 232 billion in Q4 24, down by -1% on Q4 23, with strong shift of inflows into investment products and savings life insurance.

The SG Network’s average loan outstandings contracted by -4% vs. Q4 23 to EUR 194 billion, but -2.5% excluding PGE (state guaranteed loans). Outstanding loans to corporate and professional clients grew vs. Q3 24 excluding state guaranteed PGE loans, and individual clients lending experienced an increased commercial momentum.

The average loan to deposit ratio came to 83.6% in Q4 24, down by 2.6 percentage points relative to Q4 23.

Private Banking activities saw their assets under management¹² maintain a record level of EUR 154 billion in Q4 24, up by +7% vs. Q4 23. Net gathering stood at EUR 6.3 billion in 2024, the annual net asset gathering pace (net new money divided by AuM) being at +4% in 2024. Net banking income came to EUR 348 million over the quarter, a decrease of -2% vs. Q4 23. It stands at EUR 1,469 million for 2024, unchanged from 2023.

Insurance, which covers activities in and outside France, posted a very strong commercial performance. Life insurance outstandings increased sharply by +7% vs. Q4 23 to reach a record EUR 146 billion at end-December 2024. The share of unit-linked products remained high at 40%. Savings Life insurance gross inflows amounted to EUR 3.4 billion in Q4 24, and EUR 18.3 billion for 2024, up by +42% vs. 2023.

Personal protection and P&C premia were up by +3% vs. Q4 23 (+5% at constant perimeter).

BoursoBank

BoursoBank’s growth momentum continued with more than 460K new clients in the fourth quarter of 2024. BoursoBank reached almost 7.2 million clients in December 2024, above 2024 target.

Thanks notably to its comprehensive banking offer and recognized among the “Digital Leaders”¹³, the Bank has a low attrition rate (~3% in 2024), still down vs. 2023.

BoursoBank continued its profitable growth trajectory in 2024 with a cost per client down by -17.0% vs. 2023 with an expanding client base, more than 1.3 million net clients over 12 months (+22.4% vs. 2023).

Loans outstanding improved by +5.4% relative to Q4 23, at EUR 16 billion in Q4 24.

Average outstanding in savings including deposits and financial savings were +15.5% higher vs. Q4 23 at EUR 64 billion. Deposits outstanding totalled EUR 39 billion in Q4 24, posting another strong increase of +15.4% vs. Q4 23, driven by interest-bearing savings. Average life insurance outstandings, at EUR 13 billion in Q4 24, rose by +10.2% vs. Q4 23 (o/w 48% in unit-lined products, +3.8 percentage points vs. Q4 23). The activity continued to register strong gross inflows over the quarter (+50.4% vs. Q4 23, 65% unit-linked products).

For the second year in a row, BoursoBank recorded a positive contribution to Group net income in 2024.

At end of 2025, BoursoBank aims to exceed 8 million clients.

Net banking income

Over the quarter, revenues amounted to EUR 2,267 million (including PEL/CEL provision), up by +15% compared with Q4 23 and up by +1% compared with Q3 24. Net interest income grew by +36% vs. Q4 23 and +3% vs. Q3 24. Fee income rose by +9% relative to Q4 23.

Over the year, revenues reached EUR 8,657 million, up by +8% compared with 2023 (including PEL/CEL provision). Net interest income was up by +21% vs. 2023. Fees increased by +3% relative to 2023.

Operating expenses

Over the quarter, operating expenses came to EUR 1,672 million, down -1% compared to Q4 23. The cost-to-income ratio reached 73.7% in Q4 24 and improved by 12 percentage points vs. Q4 23.

Over the year, operating expenses totalled EUR 6,634 million, decreasing by -2% vs. 2023. The cost-to-income ratio stood at 76.6% and improved by 7.3 percentage points compared with 2023.

Cost of risk

Over the quarter, the cost of risk amounted to EUR 115 million, or 20 basis points, down compared with Q3 24 (30 basis points).

Over the year, the cost of risk totalled EUR 712 million, or 30 basis points.

Group net income

Over the quarter, Group net income totalled EUR 360 million. RONE stood at 9.1% in Q4 24.

Over the year, Group net income totalled EUR 991 million. RONE stood at 6.3% for the year.

GLOBAL BANKING AND INVESTOR SOLUTIONS

In EURm	Q4 24	Q4 23	Change		2024	2023	Change
Net banking income	2,457	2,185	+12.4%	+11.6%*	10,122	9,642	+5.0%	+4.8%*
Operating expenses	(1,644)	(1,601)	+2.7%	+2.0%*	(6,542)	(6,788)	-3.6%	-3.7%*
Gross operating income	812	584	+39.0%	+37.9%*	3,580	2,854	+25.4%	+25.0%*
Net cost of risk	(97)	(38)	x 2.5	x 2.5*	(126)	(30)	x 4.2	x 4.3*
Operating income	715	546	+31.0%	+30.1%*	3,455	2,824	+22.3%	+21.9%*
Group net income	627	467	+34.4%	+33.0%*	2,788	2,280	+22.2%	+21.7%*
RONE	16.6%	12.2%	+0.0%	+0.0%*	18.4%	14.8%	+0.0%	+0.0%*
Cost to income	66.9%	73.3%	+0.0%	+0.0%*	64.6%	70.4%	+0.0%	+0.0%*

Net banking income

Global Banking & Investor Solutions delivered an excellent fourth quarter, with revenues up by +12.4% compared with Q4 23, at EUR 2,457 million.

Over 2024, revenues reached a record¹⁴ level of EUR 10,122 million, up by +5.0% vs. FY23, owing to excellent momentum across all business lines.

Global Markets and Investor Services recorded a sharp rise in revenues over the quarter vs Q4 23 of +9.8% to EUR 1,493 million. Over 2024, they totalled EUR 6,557 million, up by +4.5% vs. FY 2023. This growth is the result of solid performance across all activities.

Global Markets posted both a record fourth quarter and a record¹ year with revenues, respectively, of EUR 1,332 million, up +9.5% vs. Q4 23, and EUR 5,884 million, up +5.6% vs. 2023, in a market environment that remains conducive.

The Equities business delivered an excellent performance, with both a record year and fourth quarter. In Q4 24, revenues amounted to EUR 831 million, a steady increase of +10.0% vs. Q4 23, benefiting from a strong commercial dynamic post US elections especially in flow, listed products and financing activities. Over 2024, revenues increased sharply by +12.2% versus 2023 to EUR 3,569 million.

Fixed Income and Currencies grew by +8.8% to EUR 501 million in Q4 24, thanks to a solid performance across all products, with an increased client engagement across Corporates and Financial Institutions following the impact of the US elections on rates and currencies. In addition, European rates and currencies franchise outperformed, together with solid secured financing opportunities in the Americas. Over 2024, revenues decreased slightly by -3.2% to EUR 2,315 million.

Securities Services’ revenues were sharply up by +12.4% versus Q4 23 at EUR 162 million but increased by +4.8% excluding the impact of equity participations. The business continued to reap the benefit of a positive fee generation trend and robust momentum in fund distribution, especially in France and Italy. Over 2024, revenues were down by -4.0%, but up by +2.8% excluding equity participations. Assets under Custody and Assets under Administration amounted to EUR 4,921 billion and EUR 623 billion, respectively.

The Financing and Advisory business posted revenues of EUR 964 million, up by +16.7% vs. Q4 23. Over 2024, revenues totalled EUR 3,566 million, up by +5.8% vs. 2023.

The Global Banking & Advisory business grew steadily by +13.7% compared with Q4 23 with a double digit increase in fees vs. Q4 23 driven by strong origination and distribution volumes in Fund Financing and Structured Finance. The rebound in M&A and Advisory continued in the fourth quarter with a strong increase in revenues. This is the second best quarter ever in terms of revenues, close to record Q4 22. Over 2024, revenues grew by +3.2% vs. 2023.

The Global Transaction & Payment Services business once again delivered an excellent performance compared with Q4 23. The sharp increase in revenues of +26.1% was driven by solid commercial momentum in all activities, as well as a high level of fee generation, led by a strong performance in correspondent banking. Over 2024, revenues saw a steady increase of +13.9%. This represents a record year and fourth quarter.

Operating expenses

Operating expenses came out to EUR 1,644 million for the quarter, including around EUR 32 million in transformation costs. They are up by +2.7% relative to Q4 23. The cost-to-income ratio came to 66.9% in Q4 24.

Over 2024, operating expenses decreased by -3.6% compared with 2023 and the cost-to-income ratio came to 64.6%.

Cost of risk

Over the quarter, the cost of risk was EUR 97 million, or 24 basis points vs. 9 basis points in Q4 23.

Over 2024, the cost of risk was EUR 126 million, or 8 basis points.

Group net income

Group net income recorded strong growth, up by +34.4% vs. Q4 23 to EUR 627 million. Over 2024, Group net income rose sharply by +22.2% to EUR 2,788 million.

Global Banking and Investor Solutions reported significant RONE of 16.6% over the quarter and 18.4% over 2024.

MOBILITY, INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES

In EURm	Q4 24	Q4 23	Change		2024	2023	Change
Net banking income	2,056	2,016	+2.0%	+6.7%*	8,458	8,507	-0.6%	-3.8%*
Operating expenses	(1,240)	(1,281)	-3.2%	+0.8%*	(5,072)	(4,760)	+6.6%	+1.7%*
Gross operating income	816	734	+11.1%	+17.0%*	3,386	3,747	-9.6%	-10.9%*
Net cost of risk	(133)	(137)	-2.5%	+2.2%*	(705)	(486)	+45.1%	+43.5%*
Operating income	682	598	+14.2%	+20.4%*	2,681	3,261	-17.8%	-19.1%*
Net income/expense from other assets	(2)	(12)	+86.1%	+84.3%*	96	(11)	n/s	n/s
Non-controlling interests	203	152	+33.1%	+39.6%*	826	826	-0.1%	-7.1%*
Group net income	314	284	+10.5%	+16.1%*	1,270	1,609	-21.1%	-20.0%*
RONE	12.0%	11.0%			12.2%	16.6%
Cost to income	60.3%	63.6%			60.0%	56.0%

⁽²⁾()

Commercial activity

International Retail Banking

International Retail Banking¹⁵ activity remained strong in Q4 24 with outstanding loans at EUR 59 billion, up by +3.4%* vs. Q4 23 and deposits at EUR 74 billion, up by +3.9%* vs. Q4 23.

Europe continues to post good commercial performance for both entities in individual and corporate client segments. With EUR 43 billion in Q4 24, outstanding loans increased by 4.9%* vs. Q4 23, across segments in Romania and more particularly in home loans in the Czech Republic. Outstanding deposits totalled EUR 55 billion in Q4 24, up by +3.8%* vs. Q4 23, mostly driven by Romania.

In the Africa, Mediterranean Basin and Overseas France network, outstanding loans were stable* vs. Q4 23, with EUR 16 billion in Q4 24, on the back of the good performance in retail. Outstanding deposits of EUR 20 billion in Q4 24 increased by 4.0%* vs. Q4 23, mainly driven by sight deposits in retail.

Mobility and Financial Services

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

Ayvens’ earning assets totalled EUR 53.6 billion at end-December 2024, a +2.9% increase vs. end-December 2023.

Consumer Finance posted outstandings of EUR 23 billion in Q4 24, still down by -4.0% vs. Q4 23.

With EUR 15 billion in Q4 24, Equipment Finance outstandings slightly decreased by -1.4% vs. Q4 23.

Net banking income

Over the quarter, Mobility, International Retail Banking and Financial Services’ revenues rose by +2.0% vs. Q4 23 to EUR 2,056 million in Q4 24.

Over the year, revenues were stable compared with 2023 at EUR 8,458 million.

International Retail Banking revenues reached EUR 1,029 million, up by +3.4%* vs. Q4 23. Over 2024, revenues amounted to EUR 4,161 million, up by 3.8%* vs. 2023.

Revenues in Europe, which amounted to EUR 539 million in Q4 24, rose by +6.4%* vs. Q4 23, driven by the +3.5%* increase in net interest income for both KB in Czech Republic and BRD in Romania. Fee income increased strongly over the quarter in the Czech Republic, up by +29.5%* vs. Q4 23. Over 2024, revenues improved by +2.8%* vs. 2023 at EUR 2,028 million.

The Africa, Mediterranean Basin and French Overseas network maintained a sustained level of revenues in Q4 24 of EUR 490 million, stable* vs. Q4 23, mainly driven by fee growth. Over 2024, revenues improved by +4.8%* vs. 2023 at EUR 2,133 million.

Overall, revenues from Mobility and Financial Services were up by 8.3% vs. Q4 23 at EUR 1,026 million. They remained stable vs. 2023, at EUR 4,298 million in 2024.

At Ayvens, net banking income stood at EUR 707 million in Q4 24, a sharp increase of +16,3% vs. Q4 23 as reported, and of +2.0% adjusted for non-recurring items¹⁶. The amount of margins stood at 541 basis points, generating revenues up +12%¹ vs. T4-23. The used car sales markets are gradually normalising, as expected, with an average Used Car Sale (UCS) result per unit of EUR 1,267¹ per unit this quarter, vs. EUR 1,420¹ in Q3 24 and EUR 1,706¹ in Q4 23. In 2024, Ayvens posted an increase in revenues of +1.2% vs. 2023 (at EUR 3,015 million), with an increase in underlying margins.

The Consumer Finance entities posted revenues of EUR 216 million in Q4 24, still down by -4.2% vs. Q4 23. These are stabilizing from Q3 24, with an improvement in the margin for new production. Revenues from the Equipment Finance business was down this quarter by -9.3% vs. Q4 23, with EUR 103 million in Q4 24. In 2024, overall revenues for both businesses decreased by -4.0% vs. 2023.

Operating expenses

Over the quarter, operating expenses remained contained at EUR 1,240 million (-3.2% vs. Q4 23, stable* at constant perimeter and exchange rates). The cost-to-income ratio stood at 60.3% in Q4 24 vs. 63.6% in Q4 23.

Over the year, operating expenses came to EUR 5,072 million, up by +6.6% vs. 2023. They include transformation costs of around EUR 200 million.

International Retail Banking recorded an increase in costs of +4.8%* vs. Q4 23 (down by -2.1% at current perimeter and exchange rates, to EUR 577 million in Q4 24), still including the new bank tax in Romania, implemented since January 2024.

Mobility and Financial Services costs reached EUR 663 million in Q4 24, down by -4.2% vs. Q4 23.

Cost of risk

Over the quarter, the cost of risk amounted to EUR 133 million or 32 basis points, which was considerably lower than in Q3 24 (48 basis points).

Over the year, the cost of risk normalised to a level of 42 basis points, compared with 32 basis points in 2023.

Group net income

Over the quarter, Group net income came out to EUR 314 million, up by +10.5% vs. Q4 23. RONE stood at 12.0% in Q4 24. RONE was 16.3% in International Retail Banking, and 9.1% in Mobility and Financial Services in Q4 24.

Over 2024, Group net income came out to EUR 1,270 million, down by -21.1% vs. 2023. RONE stood at 12.2% in 2024. RONE was 16.4% in International Retail Banking, and 9.4% in Mobility and Financial Services in 2024.

CORPORATE CENTRE

In EURm	Q4 24	Q4 23	Change		2024	2023	Change
Net banking income	(159)	(207)	+23.4%	+24.4%*	(450)	(1,098)	+59.0%	+59.6%*
Operating expenses	(39)	(101)	-61.8%	-61.8%*	(224)	(220)	+1.6%	+1.4%*
Gross operating income	(197)	(308)	+36.0%	+36.5%*	(674)	(1,318)	+48.9%	+49.5%*
Net cost of risk	7	(23)	n/s	n/s	12	(4)	n/s	n/s
Net income/expense from other assets	(7)	(15)	+51.3%	+51.3%*	(179)	(111)	-61.3%	-61.4%*
Income tax	(37)	(45)	-17.9%	-16.6%*	81	(130)	n/s	n/s
Group net income	(261)	(412)	+36.7%	+37.0%*	(848)	(1,994)	+57.5%	+57.8%*

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

Over the quarter, the Corporate Centre’s net banking income totalled EUR -159 million, vs. EUR – 207 million in Q4 23.

Over the year, the Corporate Centre’s net banking income totalled EUR -450 million, vs. EUR – 1,098 million in 2023. It includes the booking in Q3 24 of exceptional proceeds received of approximately EUR 0.3 billion¹⁷.

Operating expenses

Over the quarter, operating expenses totalled EUR -39 million, vs. EUR -101 million in Q4 23.

Over the year, operating expenses totalled EUR -224 million, vs. EUR -220 million in 2023.

Net losses from other assets

Pursuant notably to the application of IFRS 5, the Group booked in Q4 24 various impacts from ongoing disposals of assets.

Group net income

Over the quarter, the Corporate Centre’s Group net income totalled EUR -261 million, vs. EUR -412 million in Q4 23.

Over the year, the Corporate Centre’s Group net income totalled EUR -848 million, vs. EUR -1,994 million in 2023.

To be noted that starting from 2025, normative return to businesses will be based on a 13% capital allocation.

8. 2024 AND 2025 FINANCIAL CALENDAR

2025 Financial communication calendar

April 30, 2025 First quarter 2025 results
May 20, 2025 2024 Combined General Meeting
May 26, 2025 Dividend detachment
May 28, 2025 Dividend payment
July 31, 2025 Second quarter and first half 2025 results
October 30, 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.

9. APPENDIX 1: FINANCIAL DATA

GROUP NET INCOME BY CORE BUSINESS

In EURm	Q4 24	Q4 23	Variation	2024	2023	Variation
French Retail, Private Banking and Insurance	360	90	x 4.0	991	596	+66.2%
Global Banking and Investor Solutions	627	467	+34.4%	2,788	2,280	+22.2%
Mobility, International Retail Banking & Financial Services	314	284	+10.5%	1,270	1,609	-21.1%
Core Businesses	1,301	841	+54.7%	5,048	4,486	+12.5%
Corporate Centre	(261)	(412)	+36.7%	(848)	(1,994)	+57.5%
Group	1,041	429	x 2.4	4,200	2,492	+68.6%

MAIN EXCEPTIONAL ITEMS

In EURm	Q4 24	Q4 23	12M24	12M23
Net Banking Income – Total exceptional items	0	41	287	(199)
One-off legacy items – Corporate Centre	0	41	0	(199)
Exceptional proceeds received – Corporate Centre	0	0	287	0

Operating expenses – Total one-off items and transformation charges	(76)	(102)	(613)	(765)
Transformation charges	(76)	(102)	(613)	(730)
Of which French Retail, Private Banking and Insurance	7	18	(132)	(312)
Of which Global Banking & Investor Solutions	(32)	(64)	(236)	(167)
Of which Mobility, International Retail Banking & Financial Services	(51)	(56)	(199)	(251)
Of which Corporate Centre	0	0	(47)	0
One-off items	0	0	0	(35)
Of which French Retail, Private Banking and Insurance	0	0	0	60
Of which Global Banking & Investor Solutions	0	0	0	(95)

Other one-off items – Total	(7)	(115)	(74)	(820)
Net profits or losses from other assets	(7)	(15)	(74)	(112)
Of which Mobility, International Retail Banking and Financial Services	0	0	86	0
Of which Corporate Centre	(7)	(15)	(160)	(112)
Goodwill impairment – Corporate Centre	0	0	0	(338)
Provision of Deferred Tax Assets – Corporate Centre	0	(100)	0	(370)

CONSOLIDATED BALANCE SHEET

In EUR m	31/12/2024	31/12/2023
Cash, due from central banks	201,680	223,048
Financial assets at fair value through profit or loss	526,048	495,882
Hedging derivatives	9,233	10,585
Financial assets at fair value through other comprehensive income	96,024	90,894
Securities at amortised cost	32,655	28,147
Due from banks at amortised cost	84,051	77,879
Customer loans at amortised cost	454,622	485,449
Revaluation differences on portfolios hedged against interest rate risk	(292)	(433)
Insurance and reinsurance contracts assets	615	459
Tax assets	4,687	4,717
Other assets	70,903	69,765
Non-current assets held for sale	26,426	1,763
Investments accounted for using the equity method	398	227
Tangible and intangible fixed assets	61,409	60,714
Goodwill	5,086	4,949
Total	1,573,545	1,554,045

In EUR m	31/12/2024	31/12/2023
Due to central banks	11,364	9,718
Financial liabilities at fair value through profit or loss	396,614	375,584
Hedging derivatives	15,750	18,708
Debt securities issued	162,200	160,506
Due to banks	99,744	117,847
Customer deposits	531,675	541,677
Revaluation differences on portfolios hedged against interest rate risk	(5,277)	(5,857)
Tax liabilities	2,237	2,402
Other liabilities	90,786	93,658
Non-current liabilities held for sale	17,079	1,703
Insurance and reinsurance contracts liabilities	150,691	141,723
Provisions	4,085	4,235
Subordinated debts	17,009	15,894
Total liabilities	1,493,957	1,477,798
Shareholder’s equity	–	–
Shareholders’ equity, Group share	–	–
Issued common stocks and capital reserves	21,281	21,186
Other equity instruments	9,873	8,924
Retained earnings	33,863	32,891
Net income	4,200	2,493
Sub-total	69,217	65,494
Unrealised or deferred capital gains and losses	1,039	481
Sub-total equity, Group share	70,256	65,975
Non-controlling interests	9,332	10,272
Total equity	79,588	76,247
Total	1,573,545	1,554,045

10. APPENDIX 2: METHODOLOGY

1 –The financial information presented for the fourth quarter and full year 2024 was examined by the Board of Directors on February 5^th, 2025 and has been prepared in accordance with IFRS as adopted in the European Union and applicable at that date. The audit procedures carried out by the Statutory Auditors on the consolidated financial statements are in progress.

2 – Net banking income

The pillars’ net banking income is defined on page 42 of Societe Generale’s 2024 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 31^st, 2023. The term “costs” is also used to refer to Operating Expenses. The Cost/Income Ratio is defined on page 42 of Societe Generale’s 2024 Universal Registration Document.

4 – Cost of risk in basis points, coverage ratio for non-performing loan outstandings

The cost of risk is defined on pages 43 and 770 of Societe Generale’s 2024 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		Q4 24	Q4 23	2024	2023
French Retail, Private Banking and Insurance	Net Cost Of Risk	115	163	712	505
	Gross loan Outstandings	233,298	240,533	235,539	246,701
	Cost of Risk in bp	20	27	30	20
Global Banking and Investor Solutions	Net Cost Of Risk	97	38	126	30
	Gross loan Outstandings	160,551	168,799	162,749	169,823
	Cost of Risk in bp	24	9	8	2
Mobility, International Retail Banking & Financial Services	Net Cost Of Risk	133	137	705	486
	Gross loan Outstandings	167,911	164,965	167,738	150,161
	Cost of Risk in bp	32	33	42	32
Corporate Centre	Net Cost Of Risk	(7)	23	(12)	4
	Gross loan Outstandings	25,730	23,075	24,700	20,291
	Cost of Risk in bp	(11)	40	(5)	2
Societe Generale Group	Net Cost Of Risk	338	361	1,530	1,025
	Gross loan Outstandings	587,490	597,371	590,725	586,977
	Cost of Risk in bp	23	24	26	17

The gross coverage ratio for non-performing loan 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 (“non-performing loans”).

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 43 and 44 of Societe Generale’s 2024 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 44 of Societe Generale’s 2024 Universal Registration Document.
Group net income used for the ratio numerator is the accounting Group net income adjusted for “Interest paid and payable to holders if 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)	Q4 24	Q4 23	2024	2023
Shareholders’ equity Group share	70,256	65,975	70,256	65,975
Deeply subordinated and undated subordinated notes	(10,526)	(9,095)	(10,526)	(9,095)
Interest payable to holders of deeply & undated subordinated notes, issue premium amortisation⁽¹⁾	(25)	(21)	(25)	(21)
OCI excluding conversion reserves	757	636	757	636
Distribution provision⁽²⁾	(1,740)	(995)	(1,740)	(995)
Distribution N-1 to be paid	–	–	–	–
Equity end-of-period for ROE	58,722	56,500	58,722	56,500
Average equity for ROE	58,204	56,607	57,223	56,396
Average Goodwill⁽³⁾	(4,192)	(4,068)	(4,108)	(4,011)
Average Intangible Assets	(2,883)	(3,188)	(2,921)	(3,143)
Average equity for ROTE	51,129	49,351	50,194	49,242

Group net Income	1,041	430	4,200	2,493
Interest paid and payable to holders of deeply subordinated notes and undated subordinated notes, issue premium amortisation	(199)	(215)	(720)	(759)
Cancellation of goodwill impairment	–	–	–	338
Adjusted Group net Income	842	215	3,480	2,073
ROTE	6.6%	1.7%	6.9%	4.2%

¹⁸¹⁹²⁰

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

In EURm	Q4 24	Q4 23	Change	2024	2023	Change
French Retail , Private Banking and Insurance	15,731	15,445	+1.9%	15,634	15,454	+1.2%
Global Banking and Investor Solutions	15,129	15,247	-0.8%	15,147	15,426	-1.8%
Mobility, International Retail Banking & Financial Services	10,460	10,313	+1.4%	10,433	9,707	+7.5%
Core Businesses	41,320	41,006	+0.8%	41,214	40,587	+1.5%
Corporate Center	16,884	15,601	+8.2%	16,009	15,809	+1.3%
Group	58,204	56,607	+2.8%	57,223	56,396	+1.5%

6 – Net assets and tangible net assets

Net assets and tangible net assets are defined in the methodology, page 45 of the Group’s 2024 Universal Registration Document. The items used to calculate them are presented below:
²¹²²

End of period (in EURm)	2024	2023	2022
Shareholders’ equity Group share	70,256	65,975	66,970
Deeply subordinated and undated subordinated notes	(10,526)	(9,095)	(10,017)
Interest of deeply & undated subordinated notes, issue premium amortisation⁽¹⁾	(25)	(21)	(24)
Book value of own shares in trading portfolio	8	36	67
Net Asset Value	59,713	56,895	56,996
Goodwill⁽²⁾	(4,207)	(4,008)	(3,652)
Intangible Assets	(2,871)	(2,954)	(2,875)
Net Tangible Asset Value	52,635	49,933	50,469

Number of shares used to calculate NAPS⁽³⁾	796,498	796,244	801,147
Net Asset Value per Share	75.0	71.5	71.1
Net Tangible Asset Value per Share	66.1	62.7	63.0

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 page 44 of Societe Generale’s 2024 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)	2024	2023	2022
Existing shares	801,915	818,008	845,478
Deductions
Shares allocated to cover stock option plans and free shares awarded to staff	4,402	6,802	6,252
Other own shares and treasury shares	2,344	11,891	16,788
Number of shares used to calculate EPS⁽⁴⁾	795,169	799,315	822,437
Group net Income (in EUR m)	4,200	2,493	1,825
Interest on deeply subordinated notes and undated subordinated notes (in EUR m)	(720)	(759)	(596)
Adjusted Group net income (in EUR m)	3,480	1,735	1,230
EPS (in EUR)	4.38	2.17	1.50

²³²⁴
8 – The Societe Generale Group’s Common Equity Tier 1 capital is calculated in accordance with applicable CRR2/CRD5 rules. The fully loaded solvency ratios are presented pro forma for current earnings, net of dividends, for the current financial year, unless specified otherwise. When there is reference to phased-in ratios, these do not include the earnings for the current financial year, unless specified otherwise. The leverage ratio is also calculated according to applicable CRR2/CRD5 rules including the phased-in following the same rationale as solvency ratios.

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 more than 126,000 employees serving about 25 million clients in 65 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).

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

¹ Based on the number of shares in circulation at 31 December 2024 excluding own shares, subject to usual approvals from the General Meeting
² Reported Group net income, after deduction of interest on deeply subordinated notes and undated subordinated notes, restated from non-cash items that have no impact on CET1 ratio
³ Excluding assets sold
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 (in particular Société Générale Equipment Finance, SG Marocaine de Banques and La Marocaine Vie)
⁶ Ratio of S3 provisions, guarantees and collaterals over gross outstanding non-performing loans
⁷ The share buyback programme and the subsequent capital reduction, aim also, and in priority, at fully offsetting the dilutive impact of the future capital increase as part of the next Group Employee Share Ownership Plan, the principle of which was adopted by the Board of Directors on February 5, 2025
⁸ Scopes 1 & 2 of corporate clients’ financed emissions
⁹Target: -80% upstream exposure reduction by 2030 vs. 2019, with an intermediary step in 2025 at -50% vs. 2019
¹⁰ The target is to have at least 35% of women executives by 2026
¹¹Including IFRS 9 phasing
¹²France and International (including Switzerland and the United Kingdom)
¹³ Banking App #1 in France and #2 worldwide based on Sia Partners International Mobile Banking Benchmark in October 2024
¹⁴ At comparable business model in the post Global Financial Crisis (GFC) regulatory regime

¹⁵ Including entities reported under IFRS 5, excluding entities sold in Morocco and Madagascar in December 2024
¹⁶ Excluding non-recurring items on either margins or UCS (mainly linked to fleet revaluation at EUR 107m in Q4 23 vs. EUR 0m in Q4 24, prospective depreciation at EUR -191m in Q4 23 vs. EUR -87m in Q4 24, hyperinflation in Turkey at EUR -27m in Q4 23 vs. EUR -40m in Q4 24 and MtM of derivatives at EUR -137m in Q4 23 vs. EUR -2m in Q4 24)

¹⁷ As stated in Q2 24 results press release
¹⁸ Interest net of tax
¹⁹ Based on the 2024 proposed distribution, subject to usual approvals of the General Meeting
²⁰ Excluding goodwill arising from non-controlling interests
²¹ Interest net of tax
²² Excluding goodwill arising from non-controlling interests
²³ The number of shares considered is the number of ordinary shares outstanding at the end of the period, excluding treasury shares and buybacks, but including the trading shares held by the Group (expressed in thousand of shares)
²⁴ 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

Attachment

Societe-Generale-Q4-2024-Financial-Results-Press-release-en

The MIL Network –

February 6, 2025

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