NewzIntel.com

Category: Intelligence Agencies

  • MIL-OSI Security: Culver City Man Agrees to Plead Guilty to Recklessly Crashing Drone into Super Scooper Firefighting Aircraft During Palisades Fire

    Source: Office of United States Attorneys

    LOS ANGELES – A Culver City man agreed to plead guilty to recklessly operating a drone that crashed into and damaged a Super Scooper firefighting aircraft fighting the Palisades Fire earlier this month, the Justice Department announced today.

    Peter Tripp Akemann, 56, has agreed to plead guilty to one count of unsafe operation of an unmanned aircraft. This morning federal prosecutors filed a criminal information charging Akemann with the misdemeanor offense that carries a prison sentence of up to one year in federal prison.

    In a plea agreement also filed this morning, Akemann agreed to plead guilty to the criminal offense and admitted to his reckless and illegal conduct in flying the drone that posed an imminent safety hazard to the Super Scooper crew. As a result of the drone collision, the firefighting aircraft was taken out of service for a period of time and was not able to continue its firefighting mission. As part of the plea agreement, Akemann agreed to pay full restitution to the Government of Quebec, which supplied the plane, and an aircraft repair company that repaired the plane. Akemann also agreed to complete 150 hours of community service in support of the 2025 Southern California wildfire relief effort.

    “This defendant recklessly flew an aircraft into airspace where first responders were risking their lives in an attempt to protect lives and property,” said Acting United States Attorney Joseph T. McNally. “This damage caused to the Super Scooper is a stark reminder that flying drones during times of emergency poses an extreme threat to personnel trying to help people and compromises the overall ability of police and fire to conduct operations. As this case demonstrates, we will track down drone operators who violate the law and interfere with the critical work of our first responders.”

    “Lack of common sense and ignorance of your duty as a drone pilot will not shield you from criminal charges,” said Akil Davis, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “Please respect the law, respect the FAA’s rules and respect our firefighters and the residents they are protecting by keeping your drone at home during wildfires.”

    Akemann is expected to make his initial appearance this afternoon in United States District Court in downtown Los Angeles. 

    According to the plea agreement, while the wildfire was burning in and around Pacific Palisades on January 9, Akemann drove to the Third Street Promenade in Santa Monica and parked his vehicle on the top floor of the parking structure. He then launched a drone and flew it towards Pacific Palisades to observe damage caused by the Palisades Fire.

    Akemann flew the drone at least 2,500 meters (more than 1.5 miles) toward the fire and lost sight of the drone. As Akemann was flying the drone, it collided with a Government of Quebec Super Scooper carrying two crewmembers attempting to fight the blaze. The impact caused an approximately 3-inch-by-6-inch hole in the left wing. After landing, maintenance personnel identified the damage and took the aircraft out of service for repairs.

    At the time of the collision, the Federal Aviation Administration had issued temporary flight restrictions that prohibited drone operations near the Los Angeles County wildfires that erupted earlier this month.

    As a result of the collision, the Government of Quebec and an aircraft repair company incurred costs of at least $65,169 to repair the plane.

    The FBI investigated this matter. The Department of Transportation’s Office of Inspector General, the Federal Aviation Administration, the Los Angeles Fire Department, and the California Department of Forestry and Fire Protection (CALFIRE) provided substantial assistance.

    Assistant United States Attorneys Kedar S. Bhatia and Ian V. Yanniello of the Terrorism and Export Crimes Section are prosecuting this case.

    MIL Security OSI –

  • MIL-OSI Security: Jacksonville Man Indicted For Attempting To Entice And Meet An 11-Year-Old Child To Engage In Sexual Activity

    Source: Office of United States Attorneys

    Jacksonville, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Noel Daniel Simonca (47, Jacksonville) with attempting to entice a minor child to engage in sexual activity. If convicted, Simonca faces a minimum penalty of 10 years, up to life, in federal prison and a potential lifetime term of supervised release. Simonca was arrested on January 19, 2025. 

    According to court documents, on December 10, 2024, an undercover FBI agent (UC) in Jacksonville was conducting an online undercover operation to identify adult individuals who were seeking to make contact with and engage in sexual activity with children. Posing as the parent of an 11-year-old child, the UC posted a short message in a public chatroom of a particular online social messaging app. A short time later, an individual using the app name “mdesase” contacted the UC using a private text messaging feature of the app. User “mdesase” confirmed that he would “love to see [the 11-year-old child],” and indicated that he had a preference for children aged “8-13.” On December 11, 2024, the UC and user “mdesase,” who was subsequently identified as Simonca, discussed meeting to have a “play date” and “trade [daughters].”

    Between December 12, 2024, and January 19, 2025, there were more online text conversations between the UC and Simonca during which they discussed meeting in person. On December 26, 2024, Simonca texted the UC and described the sexual activity that he intended to engage in with UC’s “child.” Simonca and the UC ultimately agreed to meet at a specific location in Jacksonville Beach so that Simonca could meet the “child” and take photos of “her.” On the afternoon of January 19, 2025, Simonca drove to the agreed meeting location where he was arrested by FBI agents.  

    An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.   

    This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.

    It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ 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 child victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. 

    MIL Security OSI –

  • MIL-OSI Security: New Jersey Man Pleads Guilty to Conspiracy Charge Related to Videos Depicting Monkey Torture and Mutilation

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

    CINCINNATI – A New Jersey man pleaded guilty in federal court in Cincinnati today to conspiracy related to his involvement with online groups dedicated to creating and distributing “animal crush” videos depicting acts of extreme violence and sexual abuse against monkeys.

    According to court documents, Giancarlo Morelli, of Wharton, conspired with others to create and distribute videos depicting acts of sadistic violence against baby and adult monkeys. The conspirators used encrypted chat applications to direct money to individuals in Indonesia willing to commit the requested acts of torture on camera. 

    According to a statement of facts signed by Morelli, the videos in question included depictions of monkeys having their genitals burned and cut off.

    U.S. Attorney Kenneth L. Parker for the Southern District of Ohio made today’s announcement.

    The U.S. Fish and Wildlife Service and FBI investigated the case.

    Senior Trial Attorney Adam C. Cullman of the Justice Department’s Environmental Crimes Section and Assistant U.S. Attorney Timothy Oakley for the Southern District of Ohio are prosecuting the case.

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    MIL Security OSI –

  • MIL-OSI Security: PCP Trafficker Sentenced to 65 Months in Federal Prison

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

                WASHINGTON – Kelvin Sanker Jr., 42, of Washington D.C., was sentenced today in U.S. District Court to 65 months in federal prison for his participation in a major fentanyl and PCP trafficking ring that operated in Washington, D.C.

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

               Sanker pleaded guilty October 22, 2024, before U.S. District Court Judge Dabney L. Friedrich, to one count of conspiracy to distribute and possess with intent to distribute Phencyclidine (PCP). As part of the four-member conspiracy, between August 2023 and February 2024, Sanker assisted in the preparation, storage, and sale of approximately two kilograms of PCP to two undercover officers. In addition to the 65-month prison-term, Judge Friedrich ordered Sanker to serve five years of supervised release. 

              According to court documents, Sanker supplied the PCP for at least seven sales of the illegal drug to undercover officers. Sanker stored the PCP at the home he shared with his elderly mother in a residential area of Washington, D.C. He prepared it for sale by placing it in 8 or 16 oz. water bottles or juice bottles. He then distributed it to his co-conspirators for further sale.

                On March 6, 2024, FBI and DEA agents executed search warrants on five residences associated with the conspiracy including Sanker’s home where law enforcement found approximately 1 pound of marijuana, about $1,000 in cash, body armor, and a Glock gun box with two empty magazines and one 30-round extended magazine. In Sanker’s backyard, officers found trace amounts of PCP in a paint can, his patio littered with cans of starter fluid, a substance he used to cut pure PCP prior to distribution, plastic funnels used for pouring liquids, and empty water bottles — materials often used to prepare and store PCP for distribution. On Sanker’s phone, investigators found photographs of the paint can with the PCP residue, a Draco semi-automatic pistol similar to the one found in a co-defendant’s car, and other apparent firearms.

                Sanker was arrested on April 17, 2024, and has been held since.

              Co-conspirator Jamar Bennett, 45, was sentenced on January 15, 2025, to 121 months in prison for conspiracy to distribute one kilogram or more of PCP, and for being a felon in possession of a firearm.  Co-defendant Lamont M. Langston, 44, pleaded guilty December 19, 2024, to conspiracy to distribute one kilogram or more of PCP and for being a felon in possession of a firearm. Langston’s sentencing is pending. A third co-conspirator, Norman Morris, 44, is being held pending trial. 

               This investigation is part of Washington/Baltimore High Intensity Drug Trafficking (HIDTA) Washington Area Group Initiative, which seeks to identify, disrupt, and dismantle drug trafficking organizations and money laundering organizations; reduce drug-related crime and violence; and identify and respond to emerging drug trends.

               The case is being investigated by FBI. It is being prosecuted by Special Assistant U.S. Attorney Adam Stempel and Assistant U.S. Attorney Peter V. Roman of the Violence Reduction and Trafficking Offenses Section (VRTO).

    24cr109

    MIL Security OSI –

  • MIL-OSI Security: U.S. Attorney’s Office, FBI, and USMS Disrupt Contraband Operation at Cibola County Correctional Center with Arrest

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

    ALBUQUERQUE – Federal law enforcement arrested two Albuquerque men on Tuesday after executing search warrants that uncovered a significant cache of weapons, drugs, and evidence of an ongoing drug trafficking operation linked to the Cibola County Correctional Center.

    According to court records, Michael “Gomer” Ernest Garcia, 46, was arrested on outstanding federal and state warrants. A second man, Eric Edwards, 36, was taken into custody on a state warrant.

    Garcia was the final defendant sought in connection with an investigation into a conspiracy involving both incarcerated and non-incarcerated individuals who formed a drug trafficking network that was introducing contraband into the Cibola County Correctional Center in Milan, NM.

    During the operation, authorities seized weapons and illegal substances from Garcia’s residence, including:

    • Sixteen firearms, among them one pistol with a machine gun conversion device, five AR-15 rifles, two AR-15 pistols, and one AK-47 rifle
    • More than two dozen high-capacity magazines
    • Hundreds of rounds of ammunition in various calibers
    • Controlled substances including methamphetamine and heroin

    Garcia had been evading law enforcement for over two years and was featured on the “METRO 15” wanted poster.

    U.S. Attorney Alexander M.M. Uballez, Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, and David Barnett, U.S. Marshal for the District of New Mexico, made the announcement today.

    The FBI Albuquerque Division Violent Gang Task Force (VGTF) and United States Marshals Service jointly investigated this case with assistance from the CoreCivic Intelligence Unit and the New Mexico State Police. Assistant United States Attorneys Paul Mysliwiec and David Hirsch are prosecuting the case.

    The VGTF is an FBI led task force comprising of agents and officers from the New Mexico State Police, Rio Rancho Police Department, Bernalillo County Sheriff’s Office, and the Albuquerque Police Department.

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    MIL Security OSI –

  • MIL-OSI Security: Monessen Resident Sentenced to Two Decades in Prison for Production of Material Depicting the Sexual Exploitation of a Minor

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

    PITTSBURGH, Pa. – A former resident of Monessen, Pennsylvania, has been sentenced in federal court to 20 years in prison, to be followed by 10 years of supervised release, on his conviction of production of material depicting the sexual exploitation of a minor, Acting United States Attorney Troy Rivetti announced today.

    United States District Judge Christy Criswell Wiegand imposed the sentence on Stefan Sweeney, 36.

    According to information presented to the Court, Sweeney produced a video depicting the sexual exploitation of a 13-year-old girl.

    In imposing the sentence, Judge Wiegand stated that a 20-year term of imprisonment reflected a balance between the defendant’s acceptance of responsibility and the serious nature of his crimes.

    Assistant United States Attorney DeMarr Moulton prosecuted this case on behalf of the government.

    Acting United States Attorney Rivetti commended the Federal Bureau of Investigation; Kennedy Township Police Department; Pittsburgh Bureau of Police, and other local police departments for the investigation leading to the successful prosecution of Sweeney.

    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 Attorneys’ 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, please visit www.justice.gov/psc.

    MIL Security OSI –

  • MIL-OSI: Bank of the James Announces Fourth Quarter, Full Year of 2024 Financial Results and Declaration of Dividend

    Source: GlobeNewswire (MIL-OSI)

    LYNCHBURG, Va., Jan. 31, 2025 (GLOBE NEWSWIRE) — Bank of the James Financial Group, Inc. (the “Company”) (NASDAQ:BOTJ), the parent company of Bank of the James (the “Bank”), a full-service commercial and retail bank, and Pettyjohn, Wood & White, Inc. (“PWW”), an SEC-registered investment advisor, today announced unaudited results of operations for the three month and 12 month periods ended December 31, 2024. The Bank serves Region 2000 (the greater Lynchburg MSA) and the Blacksburg, Buchanan, Charlottesville, Harrisonburg, Lexington, Nellysford, Roanoke, and Wytheville, Virginia markets.

    Net income for the three months ended December 31, 2024 was $1.62 million or $0.36 per basic and diluted share compared with $2.11 million or $0.45 per basic and diluted share for the three months ended December 31, 2023. Net income for the 12 months ended December 31, 2024 was $7.94 million or $1.75 per share compared with $8.70 million or $1.91 per share for the year 12 months ended December 31, 2023.

    Robert R. Chapman III, CEO of the Bank, commented: “Our Company delivered another year of high-quality earnings driven by a wide range of banking products, services, and investment management. These diversified sources of revenue were supported by a large regional market and broad base of commercial and retail clients, enabling the Company and the Bank to record strong financial performance and grow shareholder value in a year that presented its share of economic changes and challenges.

    “With a more stable interest rate environment, we made new loans and repriced existing loans to accurately reflect prevailing rates, which generated a positive trend in yields on earning assets. We began to slow the rate of interest expense increases that have characterized the past three years. Although margins continue to experience pressure, there was net interest margin expansion beginning in the second half of 2024 – a positive trend that we anticipate will continue in coming quarters.

    “Noninterest income was an important component of earnings that included fee income from commercial treasury management, wealth management through PWW, gains on the sale of originated residential mortgages, card services and more. Led by healthy growth in these activities, noninterest income in 2024 rose 18% from a year earlier.

    “Total loans, net, increased 6% in 2024, with commercial real estate loan growth leading the way. Commercial & industrial and commercial construction loan portfolios grew moderately year-over-year. Residential mortgages increased 6% as we continued our practice of selling most originated mortgages to the secondary market. Our mortgage lending team did an outstanding job of maintaining our Bank’s leadership as a premier mortgage originator in the markets we serve.

    “Key to generating consistent, predictable earnings is maintaining high levels of loan quality through credit management. Measures such as asset quality ratios, total nonperforming loans, and provisioning for credit losses continue reflect exceptional credit management. Our credit management team, headed by Chief Credit Officer Chip Umberger, continue to do outstanding work ensuring loan quality.

    “Total deposits increased in 2024 compared with 2023. We remain focused on growing deposits from commercial and retail customers, particularly core deposits, and building this important source of funding for loans and providing liquidity. During the year, we opened strategic locations in Buchanan and Nellysford, Virginia, further expanding the Bank’s deposit-gathering capabilities and value to customers.

    “We provided meaningful value to our shareholders in 2024. Solid earnings, strong asset quality and efficient operation contributed to a consistent, longstanding trend of enhancing the Company’s value to its shareholders. Stockholders’ equity rose 8% from a year earlier, retained earnings increased by more than $6 million, and book value per share rose to $14.28 at December 31, 2024 from $13.21 a year earlier. The Company also paid quarterly cash dividends to shareholders, as it has for many years.

    “We believe the Company is well-positioned for the coming year, continuing on a path of providing superior value to our shareholders, customers and communities.”

    Fourth Quarter and Full Year of 2024 Highlights

    • Net income and earnings per share (EPS) in the fourth quarter and full year of 2024 was impacted by higher noninterest expense, which included a $534,000 fee related to the negotiation of a contract with a credit/debit card processor. Over the term of the contract, the Company expects to recognize up to $438,000 in incentive payments from the card processor, and anticipates generating additional long-term benefits and savings of $2.1 million associated with the contract.
    • Total interest income rose 13% to $44.64 million for the full year of 2024 compared with $39.36 million in 2023. The growth primarily reflected commercial loan interest rates, commercial real estate (CRE) growth, and the addition of higher-rate residential mortgages. The average yield earned on loans, including fees, increased to 5.50% in 2024 compared with 5.05% in 2023.
    • Net interest income after provision for (recovery of) credit losses in the full year of 2024 was $29.89 million compared with $29.92 million for the full year of 2023. The full year of 2024 reflected loan loss recoveries driven by strong asset quality, and the impact of elevated interest expense.
    • Net interest margin in the fourth quarter of 2024 was 3.18%, trending up from 3.16% in the third quarter and 3.02% in the second quarter of 2024, reflecting continuing margin expansion. Net interest margin for the full year of 2024 was 3.11% compared with 3.29% in 2023. Interest spread for the full year of 2024 was 2.78% compared with 3.06% a year earlier.
    • Total noninterest income for the full year of 2024 was $15.14 million, up 17.64% from $12.87 million a year earlier. Growth primarily reflected gains on sale of loans held for sale, fee income generated by commercial treasury services and residential mortgage originations, and wealth management fee income from PWW, which contributed $0.34 per share to earnings in 2024.
    • Loans, net of the allowance for credit losses, increased 6% to $636.55 million at December 31, 2024 compared with $601.92 million at December 31, 2023.
    • Commercial real estate loans (owner occupied and non-owner occupied) grew 9% to $335.53 million at December 31, 2024 from $306.86 million a year earlier.
    • Measures of asset quality included a ratio of nonperforming loans to total loans of 0.25% at December 31, 2024, low levels of nonperforming loans, and zero other real estate owned (OREO).
    • Total assets were $979.24 million at December 31, 2024 compared with $969.37 million at December 31, 2023.
    • Total deposits were $882.40 million at December 31, 2024, up from $878.46 million at December 31, 2023.
    • Shareholder value measures included 8% growth in stockholders’ equity at December 31, 2024 from a year earlier, retained earnings of $42.80 million, up from $36.68 million a year earlier, and a book value per share of $14.28 compared with $13.21 at December 31, 2023.
    • On January 21, 2025 the Company’s board of directors approved a quarterly dividend of $0.10 per common share to stockholders of record as of March 7, 2025, to be paid on March 21, 2025.

    Fourth Quarter, Full Year of 2024 Operational Review

    Net interest income after provision for (recovery of) credit losses for the fourth quarter of 2024 was $7.76 million compared to net interest income after provision for credit losses of $7.29 million a year earlier. In the full year of 2024, net interest income after recovery of credit losses was $29.89 million compared with $29.92 a year earlier. The credit loss recovery in the full year of 2024 was $655,000 compared with $179,000 in the full year of 2023.

    Total interest income increased to $11.64 million in the fourth quarter of 2024 compared with $10.54 million a year earlier. The full year of 2024 total interest income was $44.64 million, up from $39.36 million in the full year of 2023. The year-over-year increases primarily reflected upward rate adjustments to variable rate commercial loans and new loans reflecting the prevailing rate environment.

    During 2024, investment portfolio management and appropriate rate increases on loans contributed to year-over-year growth in yields on total earning assets, which were 4.75% in 2024 compared with 4.36% in 2023.

    Total interest expense in the fourth quarter of 2024 was $3.95 million and $15.41 million for the full year of 2024, increasing 25.44% and 60.12% from $3.15 and $9.62 in the comparable periods of 2023. The increase primarily reflects higher deposit rates commensurate with the prevailing interest rate environment, and also more interest-bearing deposits.

    A stabilizing interest rate environment contributed to some margin pressure relief, particularly in the second half of 2024. For the full year of 2024, the net interest margin was 3.11% compared with 3.29% a year earlier, while interest spread was 2.78% for the full year of 2024, compared with 3.06% a year earlier.

    Noninterest income in the fourth quarter of 2024 rose 20% to $3.82 million compared with $3.18 million in the fourth quarter of 2023. For the full year of 2024, noninterest income was up 18% to $15.14 million from $12.87 million in 2023.

    Noninterest income in 2024 included income contributions from debit card activity, a write-up on an investment in an SBIC fund, commercial treasury services, and the mortgage division. Strong contributions from wealth management fees, primarily generated by PWW, were $4.84 million in 2024, up from $4.20 million a year earlier. Steady activity in residential mortgage originations throughout 2024 was reflected in gains on sale of loans held for sale of $4.49 million compared with $3.94 million a year earlier.

    Noninterest expense in the fourth quarter of $9.50 million compared with $8.42 million in the fourth quarter of 2023. Noninterest expense for the full year of 2024 was $35.11 million compared with $32.51 million for the full year of 2023. As previously noted, noninterest expense was impacted by a one-time payment to a consultant that helped negotiate a contract with a debit card provider, recorded in the fourth quarter of 2024. We will recognize incentive payments and cost savings from the underlying contract in subsequent quarters. Diligent expense management, judicious personnel expenses related to new locations, and accrual of year-end employee compensation throughout the year contributed to stable year-over-year salaries and employee benefits costs in the fourth quarter and full year of 2024.

    Balance Sheet: Strong Cash Position, High Asset Quality

    Total assets were $979.24 million at December 31, 2024 compared with $969.37 million at December 31, 2023, with the increase primarily reflecting loan growth.

    Loans, net of allowance for credit losses, were $636.55 million at December 31, 2024 compared with $601.92 million at December 31, 2023, primarily reflecting growth of commercial real estate loans and stability in other loan categories.

    Commercial real estate loans (owner-occupied and non-owner occupied and excluding construction loans) were $335.53 million at December 31, 2024 compared with $306.86 million at December 31, 2023, reflecting new loans and a decreasing rate of loan payoffs. Of this amount, commercial real estate (non-owner occupied) was approximately $195.09 million and commercial real estate (owner occupied) was $140.44 million. The Bank closely monitors concentrations in these segments, and has no commercial real estate loans secured by large office buildings in large metropolitan city centers.

    Commercial construction/land loans and residential construction/land loans were $50.04 million at December 31, 2024 compared with $50.28 million at December 31, 2023. The Company continued experiencing positive activity and health in commercial and residential construction projects. Commercial and industrial loans were $66.42 million at December 31, 2024 compared with $65.32 million at December 31, 2023, reflecting a continuing trend of stability in this loan segment.

    Residential mortgage loans that we intend to keep on the balance sheet were $113.30 million at December 31, 2024 compared with $106.99 million at December 31, 2023. Growth of these retained mortgages has been minimal, as the Bank has continued to focus on selling the majority of originated mortgage loans to the secondary market. Consumer loans (open-end and closed-end) were $78.31 million at December 31, 2024 compared with $76.52 million at December 31, 2023.

    Ongoing high asset quality continues to have a positive impact on the Company’s financial performance. The ratio of nonperforming loans to total loans at December 31, 2024 was 0.25% compared with 0.06% at December 31, 2023. The allowance for credit losses on loans to total loans was 1.09% at December 31, 2024 compared with 1.22% on December 31, 2023. Total nonperforming loans were $1.64 million at December 31, 2024. As a result of having no OREO, total nonperforming assets were the same as total nonperforming loans.

    Total deposits were $882.40 million at December 31, 2024, compared with $878.46 million at December 31, 2023. Noninterest bearing demand deposits, NOW, money market and savings were down moderately compared with 2023 and time deposits increased. At both December 31, 2024 and December 31, 2023, the Bank had no brokered deposits.

    Key measures of shareholder value were positive. Stockholders’ equity increased 8% to $64.87 million at December 31, 2024 from $60.04 million a year earlier. Retained earnings increased to $42.80 million at December 31, 2024 compared with $36.68 million a year earlier. Book value per share was $14.28 compared with $13.21 at December 31, 2023, but down from $15.15 at September 30, 2024, in part reflecting quarterly fluctuations in required fair market valuations of the Company’s available-for-sale investment portfolio.

    Some balance sheet measures are impacted by interest rate fluctuations and fair market valuation measurements in the Company’s available-for-sale securities portfolio and are reflected in accumulated other comprehensive loss. These mark-to-market losses are excluded when calculating the Bank’s regulatory capital ratios. The available-for-sale securities portfolio is composed primarily of securities with explicit or implicit government guarantees, including U.S. Treasuries and U.S. agency obligations, and other highly-rated debt instruments. The Company does not expect to realize the unrealized losses as it has the intent and ability to hold the securities until their recovery, which may be at maturity. Management continues to diligently monitor the creditworthiness of the issuers of the debt instruments within its securities portfolio.

    About the Company

    Bank of the James, a wholly-owned subsidiary of Bank of the James Financial Group, Inc. opened for business in July 1999 and is headquartered in Lynchburg, Virginia. The Bank currently services customers in Virginia from offices located in Altavista, Amherst, Appomattox, Bedford, Blacksburg, Buchanan, Charlottesville, Forest, Harrisonburg, Lexington, Lynchburg, Madison Heights, Nellysford, Roanoke, Rustburg, and Wytheville. The Bank offers full investment and insurance services through its BOTJ Investment Services division and BOTJ Insurance, Inc. subsidiary. The Bank provides mortgage loan origination through Bank of the James Mortgage, a division of Bank of the James. The Company provides investment advisory services through its wholly-owned subsidiary, Pettyjohn, Wood & White, Inc., an SEC-registered investment advisor. Bank of the James Financial Group, Inc. common stock is listed under the symbol “BOTJ” on the NASDAQ Stock Market, LLC. Additional information on the Company is available at www.bankofthejames.bank.

    Cautionary Statement Regarding Forward-Looking Statements

    This press release contains statements that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. The words “believe,” “estimate,” “expect,” “intend,” “anticipate,” “plan” and similar expressions and variations thereof identify certain of such forward-looking statements which speak only as of the dates on which they were made. Bank of the James Financial Group, Inc. (the “Company”) undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those indicated in the forward-looking statements as a result of various factors. Such factors include, but are not limited to, competition, general economic conditions, potential changes in interest rates, changes in the value of real estate securing loans made by the Bank as well as geopolitical conditions. Additional information concerning factors that could cause actual results to materially differ from those in the forward-looking statements is contained in the Company’s filings with the Securities and Exchange Commission.

    CONTACT: J. Todd Scruggs, Executive Vice President and Chief Financial Officer (434) 846-2000.

    FINANCIAL RESULTS FOLLOW

    Bank of the James Financial Group, Inc. and Subsidiaries
    Consolidated Balance Sheets
    (dollar amounts in thousands, except per share amounts)

      (unaudited)    
    Assets 12/31/2024   12/31/2023
    Cash and due from banks $ 23,287     $ 25,613  
    Federal funds sold   50,022       49,225  
    Total cash and cash equivalents   73,309       74,838  
           
    Securities held-to-maturity (fair value of $3,170 and $3,231 as of December 31, 2024 and 2023)   3,606       3,622  
    Securities available-for-sale, at fair value   187,916       216,510  
    Restricted stock, at cost   1,821       1,541  
    Loans, net of allowance for credit losses of $7,044 and $7,412 as of December 31, 2024 and 2023   636,552       601,921  
    Loans held for sale   3,616       1,258  
    Premises and equipment, net   19,313       18,141  
    Interest receivable   3,065       2,835  
    Cash value – bank owned life insurance   22,907       21,586  
    Customer relationship Intangible   6,725       7,285  
    Goodwill   2,054       2,054  
    Income taxes receivable   –       128  
    Deferred tax asset   8,936       8,206  
    Other assets   9,424       9,446  
    Total assets $ 979,244     $ 969,371  
           
    Liabilities and Stockholders’ Equity      
    Deposits      
    Noninterest bearing demand $ 129,692     $ 134,275  
    NOW, money market and savings   522,208       538,229  
    Time   230,504       205,955  
    Total deposits   882,404       878,459  
           
    Capital notes, net   10,048       10,042  
    Other borrowings   9,300       9,890  
    Income taxes payable   86       –  
    Interest payable   722       480  
    Other liabilities   11,819       10,461  
    Total liabilities $ 914,379     $ 909,332  
           
    Stockholders’ equity      
    Common stock $2.14 par value; authorized 10,000,000 shares; issued and outstanding 4,543,338 as of December 31, 2024 and 2023   9,723       9,723  
    Additional paid-in-capital   35,253       35,253  
    Accumulated other comprehensive (loss)   (22,915 )     (21,615 )
    Retained earnings   42,804       36,678  
    Total stockholders’ equity $ 64,865     $ 60,039  
           
    Total liabilities and stockholders’ equity $ 979,244     $ 969,371  
     
     

    Bank of the James Financial Group, Inc. and Subsidiaries
    Consolidated Statements of Income
    (dollar amounts in thousands, except per share amounts)
    (unaudited)

        For the Year Ended
        Ended December 31,
    Interest Income     2024       2023  
    Loans   $ 34,505     $ 31,378  
    Securities        
    US Government and agency obligations     1,471       1,273  
    Mortgage-backed securities     2,381       1,899  
    Municipals     1,244       1,212  
    Dividends     95       82  
    Corporates     543       560  
    Interest bearing deposits     775       496  
    Federal Funds sold     3,629       2,462  
    Total interest income     44,643       39,362  
             
    Interest Expense        
    Deposits        
    NOW, money market savings     5,455       2,984  
    Time Deposits     9,173       5,796  
    FHLB borrowings     –       31  
    Finance leases     76       86  
    Other borrowings     376       398  
    Capital notes     327       327  
    Total interest expense     15,407       9,622  
             
    Net interest income     29,236       29,740  
             
    Recovery of credit losses     (655 )     (179 )
             
    Net interest income after recovery of credit losses     29,891       29,919  
             
    Noninterest income        
    Gains on sale of loans held for sale     4,494       3,938  
    Service charges, fees and commissions     4,003       3,901  
    Wealth management fees     4,843       4,197  
    Life insurance income     721       548  
    Other     1,014       283  
    Gain on sales of available-for-sale securities     62       –  
             
    Total noninterest income     15,137       12,867  
             
    Noninterest expenses        
    Salaries and employee benefits     19,294       18,311  
    Occupancy     1,964       1,819  
    Equipment     2,499       2,416  
    Supplies     542       530  
    Professional, data processing, and other outside expense     6,528       5,296  
    Marketing     768       919  
    Credit expense     816       805  
    Other real estate expenses, net     –       40  
    FDIC insurance expense     441       419  
    Amortization of intangibles     560       560  
    Other     1,693       1,392  
    Total noninterest expenses     35,105       32,507  
             
    Income before income taxes     9,923       10,279  
             
    Income tax expense     1,979       1,575  
             
    Net Income   $ 7,944     $ 8,704  
             
    Weighted average shares outstanding – basic and diluted     4,543,338       4,562,374  
             
    Net income per common share – basic and diluted   $ 1.75     $ 1.91  
     
     

    Bank of the James Financial Group, Inc. and Subsidiaries
    Dollar amounts in thousands, except per share data
    unaudited

    Selected Data: Three
    months
    ending
    Dec 31,
    2024    		 Three
    months
    ending
    Dec 31,
    2023    		 Change Year
    to
    date
    Dec 31,
    2024    		 Year
    to
    date
    Dec 31,
    2023    		 Change
    Interest income $     11,636   $    10,538     10.42 % $     44,643   $     39,362     13.42 %
    Interest expense   3,950     3,149     25.44 %   15,407     9,622     60.12 %
    Net interest income   7,686     7,389     4.02 %   29,236     29,740     -1.69 %
    Provision for (recovery of) credit losses   (71 )   99     -171.72 %   (655 )   (179 )   265.92 %
    Noninterest income   3,816     3,178     20.08 %   15,137     12,867     17.64 %
    Noninterest expense   9,503     8,416     12.92 %   35,105     32,507     7.99 %
    Income taxes   452     (56 )   -907.14 %   1,979     1,575     25.65 %
    Net income   1,618     2,108     -23.24 %   7,944     8,704     -8.73 %
    Weighted average shares outstanding – basic and diluted   4,543,338     4,543,338     –     4,543,338     4,562,374     (19,036 )
    Basic and diluted net income per share $        0.36   $         0.45   $     (0.09 ) $         1.75   $      1.91   $     (0.16 )
    Balance Sheet at
    period end:    		 Dec 31,
    2024    		 Dec 31,
    2023    		 Change Dec 31,
    2023    		 Dec 31,
    2022    		 Change
    Loans, net $    636,552 $ 601,921   5.75 % $    601,921 $    605,366   -0.57 %
    Loans held for sale   3,616   1,258   187.44 %   1,258   2,423   -48.08 %
    Total securities   191,522   220,132   -13.00 %   220,132   189,426   16.21 %
    Total deposits   882,404   878,459   0.45 %   878,459   848,138   3.58 %
    Stockholders’ equity   64,865   60,039   8.04 %   60,039   50,226   19.54 %
    Total assets   979,244   969,371   1.02 %   969,371   928,571   4.39 %
    Shares outstanding   4,543,338   4,543,338   –     4,543,338   4,628,657   (85,319 )
    Book value per share $       14.28 $       13.21 $         1.07   $        13.21 $        10.85 $      2.36  
    Daily averages: Three
    months
    ending
    Dec 31,
    2024    		 Three
    months
    ending
    Dec 31,
    2023    		 Change Year
    to
    date
    Dec 31,
    2024    		 Year
    to
    date
    Dec 31,
    2023    		 Change
    Loans $ 642,197   $ 609,800   5.31 % $ 623,769   $ 616,047   1.25 %
    Loans held for sale   3,612     3,406   6.05 %   3,494     3,512   -0.51 %
    Total securities (book value)   218,680     236,267   -7.44 %   232,992     226,637   2.80 %
    Total deposits   920,655     882,277   4.35 %   901,449     867,269   3.94 %
    Stockholders’ equity   68,563     50,097   36.86 %   62,575     50,977   22.75 %
    Interest earning assets   963,217     921,665   4.51 %   939,900     903,491   4.03 %
    Interest bearing liabilities   801,812     753,144   6.46 %   783,003     738,335   6.05 %
    Total assets   1,021,547     963,511   6.02 %   995,738     950,276   4.78 %
                 
    Financial Ratios: Three
    months
    ending
    Dec 31,
    2024    		 Three
    months
    ending
    Dec 31,
    2023    		 Change Year
    to
    date
    Dec 31,
    2024    		 Year
    to
    date
    Dec 31,
    2023    		 Change
    Return on average assets   0.63 %   0.87 % (0.24 )   0.80 %   0.92 % (0.12 )
    Return on average equity   9.39 %   16.69 % (7.30 )   12.70 %   17.07 % (4.37 )
    Net interest margin   3.18 %   3.18 % –     3.11 %   3.29 % (0.18 )
    Efficiency ratio   82.62 %   79.64 % 2.98     79.11 %   76.29 % 2.82  
    Average equity to average assets   6.71 %   5.20 % 1.51     6.28 %   5.36 % 0.92  
    Allowance for credit losses: Three
    months
    ending
    Dec 31,
    2024    		 Three
    months
    ending
    Dec 31,
    2023    		 Change Year
    to
    date
    Dec 31,
    2024    		 Year
    to
    date
    Dec 31,
    2023    		 Change
    Beginning balance $ 7,078   $ 7,320   -3.31 % $ 7,412   $ 6,259   18.42 %
    Retained earnings adjustment related to impact of adoption of ASU 2016-13   –     –   N/A     –     1,245   -100.00 %
    Provision for (recovery of) credit losses*   (39 )   123   -131.71 %   (533 )   (65 ) 720.00 %
    Charge-offs   –     (40 ) -100.00 %   (84 )   (236 ) -64.41 %
    Recoveries   5     9   -44.44 %   249     209   19.14 %
    Ending balance   7,044     7,412   -4.96 %   7,044     7,412   -4.96 %
                 
    * does not include provision for or recovery of unfunded loan commitment liability    
    Nonperforming assets: Dec 31,
    2024    		 Dec 31,
    2023    		 Change Dec 31,
    2023    		 Dec 31,
    2022    		 Change
    Total nonperforming loans $ 1,640 $ 391 319.44 % $ 391 $ 633 -38.23 %
    Other real estate owned   –   – N/A     –   566 -100.00 %
    Total nonperforming assets   1,640   391 319.44 %   391   1,199 -67.39 %
    Asset quality ratios: Dec 31,
    2024    		 Dec 31,
    2023    		 Change Dec 31,
    2023    		 Dec 31,
    2022    		 Change
    Nonperforming loans to total loans 0.25 % 0.06 % 0.19   0.06 % 0.10 % (0.04 )
    Allowance for credit losses for loans to total loans 1.09 % 1.22 % (0.12 ) 1.22 % 1.02 % 0.19  
    Allowance for credit losses for loans to nonperforming loans 429.51 % 1895.65 % (1,466.14 ) 1895.65 % 988.78 % 906.87  

    The MIL Network –

  • MIL-OSI Security: Guilty Verdict in Cook County Armed Drug Trafficking Conspiracy Trial

    Source: Office of United States Attorneys

    VALDOSTA, Ga. – The head of an armed drug trafficking organization (DTO) based out of Cook County, Georgia, and two co-conspirators were found guilty this week of numerous federal charges following a two-and-a-half-week trial in Valdosta.

    Calvin James Smith, Sr., aka “Rollo,” 56, of Adel, Georgia, was found guilty of all 23 counts he was charged with in the 44-count indictment: one count of conspiracy to distribute and to possess with intent to distribute controlled substances; 14 counts of distribution of methamphetamine; one count of possession with intent to distribute methamphetamine; two counts of distribution of cocaine base; one count of possession with intent to distribute cocaine; one count of attempt to possess with intent to distribute cocaine; one count of possession with intent to distribute marijuana; one count of possession of a firearm by a convicted felon; and one count of possession of a firearm in furtherance of a drug trafficking crime. Smith is facing a maximum of life in prison.

    Bobby Leon Kaiser, 54, of Adel, was found guilty of nine of 12 counts he was charged with: one count of conspiracy to distribute and to possess with intent to distribute controlled substances; two counts of distribution of methamphetamine; five counts of distribution of cocaine base; and one count of distribution of cocaine. Kaiser is facing a maximum of life in prison.

    Vernardo Henley, 44, of Valdosta, was found guilty of one count of conspiracy to possess with intent to distribute controlled substances. Henley is facing a maximum of life in prison.

    The trial began on Monday, Jan. 13, and concluded on Wednesday evening, Jan. 29. Senior U.S. District Judge W. Louis Sands presided over the cases. Sentencing dates will be determined by the Court. There is no parole in the federal system.

    “Federal, state and local law enforcement marshaled significant resources to stop the distribution of a large amount of deadly illegal drugs from a small town in South Georgia. Our dedicated trial team worked tirelessly to hold the leader and his co-conspirators accountable for their crimes,” said Acting U.S. Attorney C. Shanelle Booker. “Armed drug trafficking organizations have no place in our communities, and we will continue working together to make Middle Georgia safer for everyone.”

    “The success of this large-scale investigation and the arrests of these drug dealers demonstrates the FBI’s commitment to fighting the drug trafficking organizations responsible for driving addiction and destroying communities,” said FBI Atlanta Supervisory Senior Resident Agent Rich Bilson.

    “Today’s verdict sends a clear message that criminal organizations operating in Georgia, especially those trafficking in dangerous drugs and using firearms to further their operations, will be held accountable,” said GBI Director Chris Hosey. “This conviction is a testament to the tireless work of our law enforcement partners, who have dedicated countless hours to ensuring that those who threaten our communities with violence and illegal substances will face justice.”

    “Investigations and prosecutions like this one are great examples of the ongoing effort between local agencies and our federal partners to disrupt the flow of illegal narcotics into our communities,” said Hahira Police Chief Stryde Jones. “We are thankful to see this effort come to a close successfully.”

    According to court documents and statements referenced in court, the FBI undertook a significant investigation beginning as early as December 2020 of an armed drug trafficking organization (DTO) led by Smith and centered in Adel, a small town in South Georgia. During the course of the investigation, agents determined that Smith and Kaiser were distributing large quantities of methamphetamine and crack cocaine, as well as marijuana, working with several associates. Kaiser and others were operating an open drug market at Kaiser’s gazebo and storage shed in Adel, where Smith was a major seller. Henley was released from federal prison on Jan. 20, 2022, and was heard over wiretap trying to locate Smith and purchase up to four kilograms of methamphetamine and sell the drugs. Beginning in Oct. 2021 and continuing through Nov. 10, 2022, agents developed confidential sources (CS) who provided information regarding drug activity at the gazebo and storage shed and conducted more than 25 controlled evidence purchases of methamphetamine and crack cocaine. As part of a wiretap, agents discovered 13 locations used by the DTO. Search warrants were executed at these locations on Nov. 10, 2022, and methamphetamine, cocaine, crack cocaine, fentanyl, marijuana and 15 handguns and rifles were seized. Agents recovered more than five kilograms of pure methamphetamine, more than ten pounds of marijuana and several hundred grams of crack cocaine and cocaine.

    Smith was recorded hundreds of times discussing purchases and sales of methamphetamine, cocaine and marijuana, and directing others to distribute the drugs. Smith has a lengthy criminal history including aggravated assault, illegal possession of a firearm by a convicted felon and controlled substance distribution. Henley has many prior convictions including a 2015 conviction in the Middle District of Georgia for possession with intent to distribute controlled substances and illegal possession of a firearm by a convicted felon. Kaiser has prior felony convictions, including false imprisonment and drug possession.

    This case was investigated by the FBI, the Georgia Bureau of Investigations (GBI), the Hahira Police Department, with assistance from the United States Postal Inspection Service, the Cook County Sheriff’s Office, the Lowndes County Sheriff’s Office, the Adel Police Department and the Moultrie Police Department.

    Assistant U.S. Attorneys Monica Daniels and Robert McCullers are prosecuting the case for the Government.

    MIL Security OSI –

  • MIL-OSI Security: Defense News: Naval District Washington Prepares for Citadel Shield-Solid Curtain 2025

    Source: United States Navy

    Naval Support Activity (NSA) Washington, NSA Bethesda, NSA Annapolis, NSA South Potomac, and Naval Air Station Patuxent River, will participate in the yearly, two-part anti-terrorism and force protection exercise designed to test the effectiveness of the installations readiness and training programs.

    “Citadel Shield-Solid Curtain 2025 is an important exercise that ensures our security forces are at peak readiness to respond to evolving threats,” said Rob Shaffer, Security Director Naval District Washington. “We train the way we fight, and this exercise allows us to refine our procedures, strengthen our decision-making, and enhance coordination with partner agencies, ultimately protecting our most valuable asset – our people.”

    During the first week of February 3 – 7, emergency responders on Navy installations will engage in Citadel Shield. Throughout the week, the field training will focus on the installation level with various scenarios such as an active shooter, unauthorized base access, suspicious packages, and unmanned aerial surveillance.

    “The Navy is committed to being a good neighbor, and the safety of our personnel and the surrounding community is our top priority,” said Shaffer. “While Citadel Shield-Solid Curtain 2025 may lead to increased activity around our installations, we are working to minimize disruptions. This exercise reinforces the importance of a proactive force protection mindset for all Navy personnel, ensuring we are ready to respond to any potential threat while also allowing our Sailors to hone their skills and maintain the highest level of readiness.”

    The second week of February (the 10th through the 14th) is the Solid Curtain portion of the exercise, which will focus on various national-level scenarios. During this week, base force protection conditions or FPCON levels will change daily with training evolutions. Some scenarios may cause irregular traffic patterns or gate hours on the installations.

    Installation personnel can obtain essential notifications during CS/SC25 by registering for the Wide Area Alert Network (WAAN). Personnel should also familiarize themselves with their command or tenant command anti-terrorism plan to know what to expect during the exercise.

    Register for the WAAN at https://ndw.cnic.navy.mil/waan/

    To keep up with all things NDW, follow our socials at https://www.facebook.com/NavDistWash, https://www.instagram.com/navdistwash/

    MIL Security OSI –

  • MIL-OSI Security: Pittsburgh Resident Sentenced to 25 Years in Prison for Sex Trafficking of Multiple Women

    Source: Office of United States Attorneys

    PITTSBURGH, Pa. – A resident of Pittsburgh, Pennsylvania, was sentenced in federal court on January 30, 2025, to 25 years in prison for his conviction of sex trafficking, Acting United States Attorney Troy Rivetti announced today.

    United States District Judge J. Nicholas Ranjan imposed the sentence on Eric Jefferson, 41.

    According to information presented to the Court, from in and around June 2019 to in and around April 2022, Jefferson coerced and forced at least four women to perform commercial sex work for his monetary gain. Jefferson provided the women with drugs for meeting clients and would withhold the drugs if the women—who were addicted to narcotics and could become ill with withdrawal symptoms—refused to meet with clients. Jefferson also used violence and threats of violence to coerce and force the women to engage in commercial sex work.

    “Eric Jefferson forced these women to earn money on his behalf, controlling the victims both through physical force and exploiting their dependence upon narcotics,” said Acting United States Attorney Rivetti. “Working with our law enforcement partners, we will aggressively prosecute human traffickers such as Jefferson in order to protect and rescue the most vulnerable victims in our district.”

    “Protecting the most vulnerable members of our community will always be among the highest priorities for the FBI,” said FBI Pittsburgh Special Agent in Charge Kevin Rojek. “The message this sentencing sends is clear: the FBI and our partners will aggressively pursue criminals who think they can prey on others.”

    Prior to imposing sentence, Judge Ranjan heard from the victims of the charged crimes and stressed the heinousness of Jefferson’s conduct and its devastating impacts upon the victims.

    Assistant United States Attorney DeMarr Moulton prosecuted this case on behalf of the government.

    Acting United States Attorney Rivetti commended the Federal Bureau of Investigation and Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Jefferson.

    This prosecution is part of Operation T.E.N. (Trafficking Ends Now), an umbrella coalition for law enforcement, community, and non-profit partners in the 25 counties in the Western District of Pennsylvania. This coordinated effort aims to end human trafficking through education and improved cooperation across agencies and service providers, thereby enhancing the office’s ability to empower victims of human trafficking to become thriving survivors.

    MIL Security OSI –

  • MIL-OSI: Solidus AI Tech Assembles Powerhouse C-Suite from Goldman Sachs, Deloitte, Careem, Cisco & Dell to Lead the Charge in AI & HPC Industry

    Source: GlobeNewswire (MIL-OSI)

    Dubai, UAE, Jan. 31, 2025 (GLOBE NEWSWIRE) — Solidus AI Tech, a pioneering force in AI-driven high-performance computing (HPC), has fortified its leadership team with an elite selection of industry veterans from globally recognized firms, including Goldman Sachs, Deloitte, Careem, Cisco, and Dell. This addition to the powerhouse C-suite is set to drive the company’s mission of revolutionizing AI infrastructure and accelerating the adoption of AI solutions worldwide.

    Unparalleled Financial and Investment Leadership

    Kal Desai – Chief Financial Officer (CFO) Kal Desai, an Australian-qualified chartered accountant, brings decades of financial acumen spanning Australia, the U.K., and the Middle East. With a career that includes leadership roles at BHP Billiton, Orange, and Reuters, Kal has played a pivotal role in the financial scaling of technology enterprises. Notably, he spearheaded capital raises and exits, including the landmark sale of Zawya to Thomson Reuters in 2012 and his instrumental role as founding CFO of Careem, which was acquired by Uber for $3.1 billion. At Solidus AI Tech, he will steer financial growth strategies, ensuring a robust financial infrastructure to support expansion and innovation.

    Michael Swan – Chief Investment Officer (CIO) With nearly two decades of investment expertise in both traditional finance (TradFi) and decentralized finance (DeFi), Michael Swan has held influential roles at Macquarie Bank and Goldman Sachs. Transitioning into the Web3 sector, he became a recognized industry authority at Tokenomik Inc., executing over 70 seed and private round investments across blockchain projects. As CIO, Michael will architect innovative financing solutions, leveraging a hybrid model of instruments to optimize capital structures for Solidus AI Tech.

    Elite Technology and Innovation Leadership

    Christian Szilagyi – Chief Technology Officer (CTO) A veteran technology leader with over 30 years of experience, Christian Szilagyi has a distinguished career in infrastructure architecture, AI, automation, and high-performance computing (HPC). His track record includes key roles at industry titans like Dell, Verint, and LivePerson, as well as pioneering regional expansions for Calabrio and Centrical. With expertise spanning DevOps, B2C optimization, and enterprise AI integration, Christian will drive Solidus AI Tech’s technology strategy, ensuring its AI and HPC capabilities are at the cutting edge of innovation.

    Niraj Poduval – Chief Innovation Officer (CINO) With over 11 years of AI and data consulting expertise, Niraj Poduval has played a key role in AI adoption strategies across banking, retail, smart cities, and the public sector. His tenure at Deloitte saw him architect AI transformation roadmaps for high-profile clients. As CINO at Solidus AI Tech, Niraj will lead AI-driven initiatives, aligning technological advancements with the company’s strategic vision to maximize business impact and market expansion.

    Commercial and Market Expansion Leadership

    Mike Doria – Chief Commercial Officer (CCO) Bringing extensive expertise in Web3, AI, and enterprise infrastructure, Mike Doria has held key leadership roles at Cisco and DXC. His track record includes spearheading revenue growth, securing funding for large-scale data center projects, and launching disruptive AI solutions. With experience as a co-founder and CEO of multiple technology ventures, Mike is set to drive Solidus AI Tech’s commercial strategy, expanding its market reach and establishing it as a dominant force in AI-powered computing.

    A Bold Vision for the Future of AI & HPC

    This addition formidable C-suite brings a wealth of expertise across finance, investment, technology, and commercial strategy. Their combined leadership positions Solidus AI Tech at the forefront of AI and HPC innovation, strengthening its position as a leading infrastructure provider for AI-powered applications. With a strategic blend of TradFi, DeFi, and cutting-edge AI solutions, the company is positioned to drive transformative advancements in AI adoption across industries.

    Solidus AI Tech is an upcoming industry leader in high-performance AI computing solutions, committed to building the next generation of AI infrastructure. With a focus on sustainability, efficiency, and cutting-edge technology, Solidus AI Tech provides enterprises with the tools and computing power necessary to drive AI-driven transformations.

    Learn more:

    Website: https://aitech.io/
    Twitter X: https://twitter.com/AITECHio
    Telegram: https://t.me/solidusaichat

    Disclaimer: 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.

    The MIL Network –

  • MIL-OSI: Pacific Financial Corp Earns $2.2 Million, or $0.21 per Diluted Share for Fourth Quarter 2024; Reports Fiscal 2024 Earnings of $9.5 Million, or $0.92 per Diluted Share; Declares Quarterly Cash Dividend of $0.14 per Share

    Source: GlobeNewswire (MIL-OSI)

    ABERDEEN, Wash., Jan. 31, 2025 (GLOBE NEWSWIRE) — Pacific Financial Corporation (OTCQX: PFLC), (“Pacific Financial”) or the (“Company”), the holding company for Bank of the Pacific (the “Bank”), reported net income of $2.2 million, or $0.21 per diluted share for the fourth quarter of 2024, compared to $2.6 million, or $0.25 per diluted share for the third quarter of 2024, and $2.9 million, or $0.28 per diluted share for the fourth quarter of 2023. For the year ended December 31, 2024, the Company reported net income of $9.5 million, or $0.92 per share compared to $14.6 million, or $1.40 for the year ended December 31, 2023. Except for year-end December 31, 2023, all results are unaudited.

    The board of directors of Pacific Financial declared a quarterly cash dividend of $0.14 per share on January 22, 2025. The dividend will be payable on February 28, 2025 to shareholders of record on February 14, 2025.

    “During the quarter we finalized the closure of our mortgage banking division recording termination costs of $773,000 impacting our fourth quarter 2024 operating results. Excluding those expenses adjusted net income was $2.8 million for the fourth quarter, an increase from the prior quarter. As we begin 2025, we expect the benefit of this closure to translate to improved efficiency of our operations moving forward,” said Denise Portmann, President and Chief Executive Officer.

    “Though the loan portfolio increased at a slower rate during the quarter, we continue to have healthy customer activity as pipelines began to improve with the decrease in index rates experienced early in the quarter. In addition, earnings for the year benefited from solid year over year growth in average loan balances. Our history of a strong net interest margin continued to be supported by solid relationships with our depositors with a strong core deposit base. Core deposits represented 87% of total deposits at year end,” said Portmann. “In addition, our overall credit quality metrics remained strong with nonperforming assets remaining low at $1.1 million or 0.09% of total assets and with a net recovery to the ACL for the quarter. Our capital base and ratios continue to be robust and exceed regulatory well-capitalized ratios. This robust capital base allowed for the continued repurchase of shares during the year. With our strong capital ratios and strong balance sheet, we believe we remain well-positioned for the future.”

    Fourth Quarter 2024 Financial Highlights:

    • Return on average assets (“ROAA”) was 0.74%, compared to 0.90% for the third quarter 2024, and 1.02% for the fourth quarter 2023.
    • Return on average equity (“ROAE”) was 7.27%, compared to 8.77% from the preceding quarter, and 10.88% from the fourth quarter a year earlier.
    • Net interest income was $10.9 million, compared to $11.2 million for the third quarter of 2024, and $11.7 million for the fourth quarter of 2023.
    • Net interest margin (“NIM”) decreased to 3.99%, compared to 4.19% from the preceding quarter, and 4.34% for the fourth quarter a year ago.
    • Provision for credit losses was a benefit of $103,000 for the fourth quarter ended December 31, 2024, compared to a benefit of $66,000 for the preceding quarter and a provision of $111,000 in the fourth quarter a year ago.
    • Gross loans balances held in portfolio increased by $5.3 million, or less than 1% to $704.9 million at December 31, 2024, compared to $699.6 million at September 30, 2024, and increased by $19.5 million, or 3%, from $685.3 million at December 31, 2023.
    • Total deposits remained at $1.01 billion at December 31, 2024 relative to the previous quarter and one year earlier. Core deposits represented 87% of total deposits, with non-interest bearing deposits representing 38% of total deposits at December 31, 2024.
    • Asset quality remains solid with nonperforming assets to total assets declining to 0.09%, compared to 0.10% three months earlier, and increasing from 0.06% at December 31, 2023. Substandard loans decreased $911,000 to $2.7 million at December 31, 2024 from $3.6 million the prior quarter.
    • Shareholder equity decreased $7.2 million during the quarter largely due to accumulated other comprehensive income marks on the investment portfolio, stock repurchases and dividend payments offset by net income. Tangible book value per share was $9.93 at December 31, 2024.
    • Pacific Financial and Bank of the Pacific continues to exceed regulatory well-capitalized requirements. At December 31, 2024 Pacific Financial’s estimated leverage ratio was 11.3% and its estimated total risk-based capital ratio was 17.5%.

    Balance Sheet Review

    Total assets decreased slightly to $1.15 billion at December 31, 2024, compared to $1.16 billion at September 30, 2024, and was unchanged relative to December 31, 2023.

    Liquidity metrics continued to remain strong with total liquidity, both on and off balance sheet sources, at $550.6 million as of December 31, 2024. The Bank has established collateralized credit lines with borrowing capacity from the Federal Home Loan Bank of Des Moines (FHLB) and from the Federal Reserve Bank of San Francisco, as well as $60.0 million in unsecured borrowing lines from various correspondent banks. There was no balance outstanding on any of these facilities at quarter-end. The Company’s available liquidity sources at December 31, 2024 represented a coverage of short-term funds available to uninsured and uncollateralized deposits of 217%. Uninsured or uncollateralized deposits were 25% of total deposits at December 31, 2024.

    The following table summarizes the Bank’s available liquidity:

    LIQUIDITY (unaudited) Period Ended   Change from   % of Deposits  
    ($ in 000s)      
                                             
        Dec 31,   Sep 30,   Dec 31,     Sep 30, 2024   Dec 31, 2023   Dec 31, Sep 30, Dec 31,  
        2024   2024   2023     $ %   $ %   2024 2024 2023  
    Short-term Funding                                        
    Cash and cash equivalents $ 67,951 $ 85,430 $ 95,781   $ (17,479 ) -20% $ (27,830 ) -29%   7% 8% 9%  
    Unencumbered AFS Securities   158,472   154,565   140,049     3,907   3%   18,423   13%   16% 15% 14%  
    Secured lines of Credit (FHLB, FRB)   324,187   336,771   327,264     (12,584 ) -4%   (3,077 ) -1%   32% 33% 32%  
    Short-term Funding $ 550,610 $ 576,766 $ 563,094   $ (26,156 ) -5% $ (12,484 ) -2%   55% 57% 56%  
                                             

    Investment securities: The investment securities portfolio increased 3% to $304.5 million, compared to $296.8 million at September 30, 2024 and increased 4% compared to the like period a year ago. The increase from the prior quarter was primarily due to the purchase of $19.8 million of collateralized mortgage obligations and mortgage backed securities. These purchases were partially offset by an increase in net unrealized losses on available for sale investments which increased $7.6 million to $22.4 million ($17.5 million after-tax) at December 31, 2024, which represents 7% of the AFS portfolio.

    U.S. Treasury bonds and securities issued by the U.S. Government sponsored agencies accounted for 86%, 85%, and 85%, of the investment portfolio as of December 31, 2024, September 30, 2024, and December 31, 2023. The largest investment category is collateralized mortgage obligations which accounted for 48% of the investment portfolio at December 31, 2024, compared to 43% one year earlier. The average adjusted duration to reset of the investment securities portfolio was 4.19 years at December 31, 2024.

    Gross loans balances increased $5.3 million, or 1%, to $704.9 million at December 31, 2024, compared to $699.6 million at September 30, 2024. During the fourth quarter, new multi-family loans more than offset the decline in construction and development loans and the decline in residential 1-4 family loans.

    Year-over-year loan growth was 3%, or $19.5 million, with the largest increases in residential 1-4 family and multi-family loans increasing $7.2 million and $18.0 million, respectively. Loans classified as commercial real estate for regulatory concentration purposes totaled $267.9 million at December 31, 2024, or 192% of total risk-based capital.

    The Company continues to manage concentration limits that establish maximum exposure levels by certain industry segments, loan product types, geography and single borrower limits. In addition, the loan portfolio continues to be well-diversified and is collateralized with assets predominantly within the Company’s Western Washington and Oregon markets.

    Credit quality: Nonperforming assets were minimal and remained at $1.1 million, or 0.09% of total assets at December 31, 2024, compared to $664,000, or 0.06% at December 31, 2023. The Company has zero other real estate owned as of December 31, 2024 and accruing loans past due more than 30 days represent only 0.14% of total loans. Total loans designated as special mention increased by $6.0 million to $10.8 million at December 31, 2024 compared to $4.8 million at September 30, 2024 and was primarily related to a downgrade of one agriculture credit relationship of $4.2 million.

    Allowance for credit losses (“ACL”) for loans was $8.9 million, or 1.26% of gross loans at December 31, 2024, compared to $8.9 million or 1.27% of loans at September 30, 2024 and $8.5 million or 1.24% at December 31, 2023. A benefit for credit losses on loans of $119,000 was recorded in the current quarter. This compares to a provision for credit losses on loans of $27,000 in the third quarter of 2024 and a provision for credit losses on loans of $162,000 for the fourth quarter of 2023. The benefit for credit losses in the current quarter largely reflects net loan recoveries of $73,000 realized during the quarter, compared to a net recovery of $11,000 for the preceding quarter and $21,000 for the fourth quarter one year ago. Provisions for unfunded loans was $16,000 for the fourth quarter compared to a benefit of $93,000 the previous quarter and a benefit of $51,000 one year earlier.

    Total deposits remained at $1.01 billion at December 31, 2024 compared to the prior quarter and one year earlier. Deposit composition between non-maturity deposits and time deposit CDs also remained relatively unchanged for the quarter. Within non-maturity deposits, non-interest bearing demand deposits decreased which was more than offset by the growth in interest bearing demand deposits and reflects the Bank’s continued focused efforts on retaining core customer relationships. Pacific Financial continues to benefit from a strong core deposit base which positively impacts our net interest margin. Non-interest bearing deposits continues to remain the largest concentration of deposits and represented 38% of deposits at December 31, 2024 and September 30, 2024. Interest-bearing demand and money market deposits both represent 19% of total deposits at December 31, 2024.

    Year-over-year the deposit composition changed slightly, primarily as a result of customers transferring balances to higher yielding accounts, and as a result, time deposits increased to $135.5 million, or 13% of total deposits at December 31, 2024 compared to $100.8 million or 10% of total deposits at December 31, 2023.

    Shareholders’ equity was $113.9 million at December 31, 2024, compared to $121.1 million at September 30, 2024, and $114.7 million at December 31, 2023. The decrease in shareholders’ equity during the current quarter was due to repurchases of common stock, dividend payments and an increase in unrealized losses on available-for-sale securities due to increases in interest rates. Net unrealized losses (after-tax) included in shareholders’ equity on available-for-sale securities was $17.5 million at December 31, 2024 compared to $11.5 million at September 30, 2024, and $16.1 million at December 31, 2023.

    Book value per common share was $11.26 at December 31, 2024, compared to $11.78 at September 30, 2024, and $11.04 at December 31, 2023. The Company’s tangible common equity ratio was 8.8% at December 31, 2024 and 9.4% at September 30, 2024, compared to 8.9% at December 31, 2023. Regulatory capital ratios of both the Company and the Bank continue to exceed the well-capitalized regulatory thresholds, with the Company’s leverage ratio at 11.3% and total risk-based capital ratio at 17.5% as of December 31, 2024. These regulatory capital ratios are estimates, pending completion and filing of regulatory reports.

    In anticipation of the expiration of the stock repurchase plan authorized in 2023, in September 2024, the Board of Directors authorized an additional $2.6 million toward future repurchases; approximately 2.0% of total shares outstanding.

    Income Statement Review

    Net interest income decreased $353,000 to $10.9 million for the fourth quarter of 2024, compared to $11.2 million for the third quarter of 2024, and decreased $801,000 compared to $11.7 million for the fourth quarter a year ago. The change in the current quarter compared to the preceding quarter reflects lower overall loan and interest bearing cash yields. Though yields for newly originated loans and other variable rate loans plus purchased investments were recorded at higher yields, the downward repricing of floating rate loans and interest-earning cash tied to short term rate indexes as well as decreased balances of interest earning cash and increasing deposit costs impacted total net interest income.

    The decrease in net interest income compared to the year ago quarter reflects the increase in funding costs, with interest income remaining relatively flat, reflecting lower interest earning deposit balances offset by increased loan interest income as the Bank re-deployed interest earning deposit balances into higher yielding assets including both loans and investments.

    Though decreasing from 4.19% for the preceding quarter and 4.34% for the fourth quarter ended December 31, 2023, the Bank’s net interest margin continued to remain strong at 3.99% for the quarter ended December 31, 2024. Yields on total interest earning assets decreased 19 basis points to 5.10% for the fourth quarter of 2024 compared to 5.29% for the prior quarter and 5.14% in the like quarter a year ago. Average loan yields decreased 15 basis points to 5.84% during the current quarter, compared to 5.99% for the preceding quarter and 5.80% for the fourth quarter 2023. The Bank’s total cost of funds increased only 2 basis points to 1.17% for the current quarter, compared to 1.15% for the preceding quarter, and 0.83% for the fourth quarter 2023. The small increase in the costs of deposits was due to retention efforts and competitive pricing of deposit products. As mentioned earlier, the large balance of non-interest bearing deposits at 38% has helped minimize volatility in deposit costs.

    Noninterest income increased to $1.8 million for the current quarter, compared to $1.7 million for the linked quarter and increased from $1.5 million a year earlier. The increase compared to the linked quarter was primarily due to $60,000 of death benefit income from a bank-owned life insurance policy. Fee and service charge income increased slightly in the fourth quarter of 2024 to $1.3 million compared to $1.2 million in the previous quarter and the fourth quarter of 2023.

    The company closed its mortgage banking division in the fourth quarter. The elimination of the mortgage banking division is expected to improve the efficiency of the company in 2025.

    Noninterest expenses increased to $10.1 million for the fourth quarter of 2024 compared to $9.7 million for the prior quarter and increased from $9.5 million for the fourth quarter of 2023. The current quarter reflects increased expenses associated with closing the mortgage division. Salaries and employee benefit expenses were elevated in the current quarter due to severance and retention payments while occupancy expenses were also elevated due to lease contract termination costs associated with our mortgage operations center. In addition, data processing and IT costs increased related to the termination of mortgage origination software contracts. Overall, expenses associated with closing the mortgage division were approximately $773,000. Excluding the mortgage division termination costs, total non-interest expenses would have been $9.3 million for the current quarter.

    The company’s efficiency ratio increased to 79.80% for the fourth quarter of 2024, compared to 75.48% in the preceding quarter and increased from 72.22% in the same quarter a year ago. The efficiency ratio is expected to decline in 2025 with the elimination of expenses associated with the closed mortgage division.

    Income tax expense: Federal and Oregon state income tax expenses totaled $492,000 for the current quarter, and $633,000 for the preceding quarter, resulting in effective tax rates of 18.5% and 19.6%, respectively. These income tax expenses reflect the benefits of tax exempt income on tax-exempt loans and investments, affordable housing tax credit financing, and investments in bank-owned life insurance.

    FINANCIAL HIGHLIGHTS (unaudited) Quarter Ended   Change From   Twelve Months Ended   Change   
           
    (In 000s, except per share data)                                                  
        Dec 31,   Sep 30,   Dec 31,     Sep 30, 2024   Dec 31, 2023   Dec 31,   Dec 31,            
        2024   2024   2023     $ %   $ %   2024   2023     $ %  
    Earnings Ratios & Data                                                  
    Net Income $ 2,162 $ 2,594 $ 2,942   $ (432 ) -17% $ (780 ) -27% $ 9,532 $ 14,605   $ (5,073 ) -35%  
    Return on average assets   0.74%   0.90%   1.02%     -0.16%       -0.28%       0.84%   1.22%     -0.38%      
    Return on average equity   7.27%   8.77%   10.88%     -1.50%       -3.61%       8.20%   13.48%     -5.28%      
    Efficiency ratio(1)   79.80%   75.48%   72.22%     4.32%       7.58%       76.69%   66.56%     10.13%      
    Net-interest margin %(2)   3.99%   4.19%   4.34%     -0.20%       -0.35%       4.18%   4.39%     -0.21%      
                                                       
    Share Ratios & Data                                                  
    Basic earnings per share $ 0.21 $ 0.25 $ 0.28   $ (0.04 ) -16% $ (0.07 ) -25% $ 0.93 $ 1.40   $ (0.47 )    
    Diluted earning per share $ 0.21 $ 0.25 $ 0.28   $ (0.04 ) -16% $ (0.07 ) -25% $ 0.92 $ 1.40   $ (0.48 )    
    Book value per share(3) $ 11.26 $ 11.78 $ 11.04   $ (0.52 ) -4% $ 0.22   2%                    
    Tangible book value per share(4) $ 9.93 $ 10.47 $ 9.75   $ (0.54 ) -5% $ 0.18   2%                    
    Common shares outstanding   10,110   10,283   10,389     (173 ) -2%   (279 ) -3%                    
    PFLC stock price $ 12.45 $ 11.65 $ 10.70   $ 0.80   7% $ 1.75   16%                    
    Dividends paid per share $ 0.14 $ 0.14 $ 0.14   $ –   0% $ –   0% $ 0.56 $ 0.53   $ 0.03   6%  
                                                       
    Balance Sheet Data                                                  
    Assets $ 1,153,563 $ 1,158,410 $ 1,148,899   $ (4,847 ) 0% $ 4,664   0%                    
    Portfolio Loans $ 704,865 $ 699,603 $ 685,349   $ 5,262   1% $ 19,516   3%                    
    Deposits $ 1,014,731 $ 1,011,473 $ 1,009,292   $ 3,258   0% $ 5,439   1%                    
    Investments $ 304,502 $ 296,792 $ 293,579   $ 7,710   3% $ 10,923   4%                    
    Shareholders equity $ 113,856 $ 121,087 $ 114,691   $ (7,231 ) -6% $ (835 ) -1%                    
                                                       
    Liquidity Ratios                                                  
    Short-term funding to uninsured                                                  
    and uncollateralized deposits   217%   229%   243%     -12%       -26%                        
    Uninsured and uncollateralized                                                  
    deposits to total deposits   25%   25%   23%     0%       2%                        
    Portfolio loans to deposits ratio   69%   69%   67%     0%       2%                        
                                                       
    Asset Quality Ratios                                                  
    Non-performing assets to assets   0.09%   0.10%   0.06%     -0.01%       0.03%                        
    Non-accrual loans to portfolio loans   0.16%   0.16%   0.10%     0.00%       0.06%                        
    Loan losses to avg portfolio loans   -0.04%   -0.01%   -0.01%     -0.03%       -0.03%       0.00%   0.03%     -0.03%      
    ACL to portfolio loans   1.26%   1.27%   1.24%     -0.01%       0.02%                        
                                                       
    Capital Ratios (PFC)                                                  
    Total risk-based capital ratio   17.5%   17.9%   17.7%     -0.4%       -0.2%                        
    Tier 1 risk-based capital ratio   16.3%   16.7%   16.5%     -0.4%       -0.2%                        
    Common equity tier 1 ratio   14.7%   15.0%   14.9%     -0.3%       -0.2%                        
    Leverage ratio   11.3%   11.6%   11.3%     -0.3%       0.0%                        
    Tangible common equity ratio   8.8%   9.4%   8.9%     -0.6%       -0.1%                        
                                                       
    (1) Non-interest expense divided by net interest income plus noninterest income.
    (2) Tax-exempt income has been adjusted to a tax equivalent basis at a rate of 21%.
    (3) Book value per share is calculated as the total common shareholders’ equity divided by the period ending number of common stock shares outstanding.
    (4) Tangible book value per share is calculated as the total common shareholders’ equity less total intangible assets and liabilities, divided by the period ending number of common stock shares outstanding.
     
    INCOME STATEMENT (unaudited) Quarter Ended   Change From   Twelve Months Ended   Change  
           
    ($ in 000s)                                                      
        Dec 31,   Sep 30,   Dec 31,     Sep 30, 2024   Dec 31, 2023   Dec 31,   Dec 31,            
        2024   2024   2023     $ %   $ %   2024   2023     $ %  
    Interest Income                                                      
    Loan interest & fee income $ 10,340   $ 10,520   $ 9,872   $ (180 ) -2% $ 468   5% $ 41,192 $ 37,037   $ 4,155   11%  
    Interest bearing cash income   942     1,108     1,440     (166 ) -15%   (498 ) -35%   3,833   9,109     (5,276 ) -58%  
    Investment income   2,590     2,503     2,501     87   3%   89   4%   9,978   9,334     644   7%  
    Interest Income   13,872     14,131     13,813     (259 ) -2%   59   0%   55,003   55,480     (477 ) -1%  
                                                           
    Interest Expense                                                      
    Deposits interest expense   2,796     2,684     1,914     112   4%   882   46%   9,829   5,351     4,478   84%  
    Other borrowings interest expense   225     243     247     (18 ) -7%   (22 ) -9%   951   929     22   2%  
    Interest Expense   3,021     2,927     2,161     94   3%   860   40%   10,780   6,280     4,500   72%  
    Net Interest Income   10,851     11,204     11,652     (353 ) -3%   (801 ) -7%   44,223   49,200     (4,977 ) -10%  
    Provision (benefit) for credit losses   (103 )   (66 )   111     (37   56%   (214 ) -193%   168   520     (352 ) -68%  
    Net Interest Income after provision   10,954     11,270     11,541     (316 ) -3%   (587 ) -5%   44,055   48,680     (4,625 ) -10%  
                                                           
    Non-Interest Income                                                      
    Fees and service charges   1,267     1,225     1,242     42   3%   25   2%   4,791   4,937     (146 ) -3%  
    Gain on sale of investments, net   –     –     –     –   -100%   –   -100%   121   (154 )   275   -179%  
    Gain on sale of loans, net   267     267     95     –   0%   172   181%   1,132   635     497   78%  
    Income on bank-owned insurance   250     188     176     62   33%   74   42%   800   685     115   17%  
    Other non-interest income   (9 )   7     16     (16 ) -229%   (25 ) -156%   25   69     (44 ) -64%  
    Non-Interest Income   1,775     1,687     1,529     88   5%   246   16%   6,869   6,172     697   11%  
                                                           
    Non-Interest Expense                                                      
    Salaries and employee benefits   6,288     6,341     5,787     (53 ) -1%   501   9%   24,944   22,793     2,151   9%  
    Occupancy   768     601     679     167   28%   89   13%   2,574   2,215     359   16%  
    Furniture, Fixtures & Equipment   289     286     301     3   1%   (12 ) -4%   1,127   1,109     18   2%  
    Marketing & donations   149     201     169     (52 ) -26%   (20 ) -12%   680   549     131   24%  
    Professional services   267     233     342     34   15%   (75 ) -22%   1,163   1,283     (120 ) -9%  
    Data Processing & IT   1,380     1,185     1,223     195   16%   157   13%   4,921   4,713     208   4%  
    Other   934     883     1,019     51   6%   (85 ) -8%   3,775   4,194     (419 ) -10%  
    Non-Interest Expense   10,075     9,730     9,520     345   4%   555   6%   39,184   36,856     2,328   6%  
    Income before income taxes   2,654     3,227     3,550     (573 ) -18%   (896 ) -25%   11,740   17,996     (6,256 ) -35%  
    Provision for income taxes   492     633     608     (141 ) -22%   (116 ) -19%   2,208   3,391     (1,183 ) -35%  
    Net Income $ 2,162   $ 2,594   $ 2,942   $ (432 ) -17%   (780 ) -27% $ 9,532 $ 14,605   $ (5,073 ) -35%  
                                                           
    Effective tax rate   18.5%     19.6%     17.1%     -1.1%       1.4%       18.8%   18.8%     0.0%      
     
    BALANCE SHEET (unaudited) Period Ended   Change from   % of Total  
    ($ in 000s)      
                                                   
        Dec 31,    Sep 30,    Dec 31,      Sep 30, 2024 Dec 31, 2023   Dec 31, Sep 30, Dec 31,  
        2024    2024    2023      $ %   $ %   2024 2024 2023  
    Assets                                              
    Cash on hand and in banks $ 18,136   $ 20,621   $ 16,716     $ (2,485 ) -12% $ 1,420   8%   2% 2% 1%  
    Interest bearing deposits   62,015     80,522     91,355       (18,507 ) -23%   (29,340 ) -32%   6% 7% 8%  
    Investment securities   304,502     296,792     293,579       7,710   3%   10,923   4%   26% 26% 26%  
    Loans held-for-sale   –     140     1,103       (140 ) -100%   (1,103 ) -100%   0% 0% 0%  
    Portfolio Loans, net of deferred fees   704,248     698,974     684,554       5,274   1%   19,694   3%   61% 60% 60%  
    Allowance for credit losses   (8,851 )   (8,897 )   (8,530 )     46   -1%   (321 ) 4%   -1% -1% -1%  
    Net loans   695,397     690,077     676,024       5,320   1%   19,373   3%   60% 60% 59%  
    Premises & equipment   16,952     17,124     15,579       (172 ) -1%   1,373   9%   1% 1% 1%  
    Goodwill & Other Intangibles   13,435     13,435     13,435       –   0%   –   0%   1% 1% 1%  
    Bank-owned life Insurance   28,333     28,084     27,497       249   1%   836   3%   2% 2% 2%  
    Other assets   14,793     11,615     13,611       3,178   27%   1,182   9%   2% 2% 2%  
    Total Assets $ 1,153,563   $ 1,158,410   $ 1,148,899     $ (4,847 ) 0% $ 4,664   0%   100% 100% 100%  
                                                   
    Liabilities & Shareholders’ Equity                                              
    Deposits $ 1,014,731   $ 1,011,473   $ 1,009,292     $ 3,258   0% $ 5,439   1%   88% 88% 88%  
    Borrowings   13,403   $ 13,403   $ 13,403       –   0%   –   0%   1% 1% 1%  
    Other liabilities   11,573   $ 12,447   $ 11,513       (874 )  -7%   60   1%   1% 1% 1%  
    Shareholders’ equity   113,856   $ 121,087   $ 114,691       (7,231 ) -6%   (835 ) -1%   10% 10% 10%  
    Liabilities & Shareholders’ Equity $ 1,153,563   $ 1,158,410   $ 1,148,899     $ (4,847 ) 0% $ 4,664   0%   100% 100% 100%  
                                                   
    INVESTMENT COMPOSITION & CONCENTRATIONS (unaudited) Period Ended   Change from   % of Total  
         
    ($ in 000s)                                              
        Dec 31,   Sep 30,   Dec 31,     Sep 30, 2024 Dec 31, 2023   Dec 31, Sep 30, Dec 31,  
        2024   2024   2023     $ %   $ %   2024 2024 2023  
    Investment Securities                                              
    Collateralized mortgage obligations $ 147,262   $ 141,842   $ 126,949     $ 5,420   4% $ 20,313   16%   48% 48% 43%  
    Mortgage backed securities   46,112     41,264     38,103       4,848   12%   8,009   21%   15% 14% 13%  
    U.S. Government and agency securities   67,716     68,961     83,748       (1,245 ) -2%   (16,032 ) -19%   22% 23% 29%  
    Municipal securities   43,412     44,725     44,779       (1,313 ) -3%   (1,367 ) -3%   15% 15% 15%  
    Investment Securities $ 304,502   $ 296,792   $ 293,579     $ 7,710   3% $ 10,923 ) 4%   100% 100% 100%  
                                                   
    Held to maturity securities $ 41,442   $ 42,301   $ 55,454     $ (859 ) -2% $ (14,012 ) -25%   14% 14% 19%  
    Available for sale securities $ 263,060   $ 254,491   $ 238,125     $ 8,569   3% $ 24,935   10%   86% 86% 81%  
                                                   
    Government & Agency securities $ 261,063   $ 252,039   $ 248,768     $ 9,024   4% $ 12,295   5%   86% 85% 85%  
    AAA, AA, A rated securities $ 42,773   $ 44,084   $ 43,687     $ (1,311 ) -3% $ (914 ) -2%   14% 15% 15%  
    Non-rated securities $ 666   $ 669   $ 1,124     $ (3 ) 0% $ (458 ) -41%   0% 0% 0%  
                                                   
    AFS Unrealized Gain (Loss) $ (22,437 ) $ (14,804 ) $ (20,808 )   $ (7,633 ) 52% $ (1,629 ) 8%   -7% -5% -7%  
     
    PORTFOLIO LOAN COMPOSITION & CONCENTRATIONS (unaudited) Period Ended   Change from   % of Total  
         
    ($ in 000s)                                              
        Dec 31,   Sep 30,   Dec 31,     Sep 30, 2024 Dec 31, 2023   Dec 31, Sep 30, Dec 31,  
        2024   2024   2023     $ %   $ %   2024 2024 2023  
    Portfolio Loans                                              
    Commercial & agriculture $ 75,240   $ 73,002   $ 75,444     $ 2,238   3% $ (204 ) 0%   10% 10% 11%  
    Real estate:                                              
    Construction and development   42,725     46,569     48,720       (3,844 ) -8%   (5,995 ) -12%   6% 7% 7%  
    Residential 1-4 family   103,489     105,298     96,301       (1,809 ) -2%   7,188   7%   15% 15% 14%  
    Multi-family   68,978     60,773     51,025       8,205   14%   17,953   35%   10% 9% 7%  
    CRE — owner occupied   165,120     167,086     164,443       (1,966 ) -1%   677   0%   23% 24% 24%  
    CRE — non owner occupied   159,582     157,347     155,280       2,235   1%   4,302   3%   23% 22% 23%  
    Farmland   26,864     26,553     27,273       311   1%   (409 ) -1%   4% 4% 4%  
    Consumer   62,867     62,975     66,863       (108 ) 0%   (3,996 ) -6%   9% 9% 10%  
    Portfolio Loans   704,865     699,603     685,349       5,262   1%   19,516   3%   100% 100% 100%  
    Less: ACL   (8,851 )   (8,897 )   (8,530 )                            
    Less: deferred fees   (617 )   (629 )   (795 )                            
    Net loans $ 695,397   $ 690,077   $ 676,024                              
                                                   
    Regulatory Commercial Real Estate $ 267,857   $ 261,292   $ 252,493     $ 6,565   3% $ 15,364   6%   38% 37% 37%  
    Total Risk Based Capital(1) $ 139,458   $ 140,971   $ 138,449     $ (1,513 ) -1% $ 1,009   1%          
    CRE to Risk Based Capital(1)   192%     185%     182%           7%       10%          
     
    CRE–MULTI-FAMILY & NON OWNER OCCUPIED COMPOSITION (unaudited) Period Ended   Change from   % of Total  
         
    ($ in 000s)                                        
        Dec 31,   Sep 30,   Dec 31,     Sep 30, 2024 Dec 31, 2023   Dec 31, Sep 30, Dec 31,  
        2024   2024   2023     $ %   $ %   2024 2024 2023  
    Collateral Composition(2)                                        
    Multifamily $ 73,575 $ 63,099 $ 59,557   $ 10,476   17% $ 14,018   24%   30% 27% 27%  
    Retail   36,813   37,685   29,470     (872 ) -2%   7,343   25%   15% 16% 13%  
    Hospitality   31,369   30,844   31,657     525   2%   (288 ) -1%   13% 13% 14%  
    Mini Storage   25,028   25,758   21,625     (730 ) -3%   3,403   16%   10% 11% 10%  
    Office   23,921   22,921   23,626     1,000   4%   295   1%   10% 10% 11%  
    Mixed Use   22,662   22,708   26,329     (46 ) 0%   (3,667 ) -14%   9% 10% 12%  
    Industrial   14,723   13,912   11,410     811   6%   3,313   29%   6% 6% 5%  
    Warehouse   7,531   7,582   6,169     (51 ) -1%   1,362   22%   3% 3% 3%  
    Special Purpose   6,921   6,968   7,102     (47 ) -1%   (181 ) -3%   3% 3% 3%  
    Other   3,155   3,174   3,326     (19 ) -1%   (171 ) -5%   1% 1% 2%  
    Total $ 245,698 $ 234,651 $ 220,271   $ 11,047   5% $ 25,427   12%   100% 100% 100%  
                                             
    (1) Bank of the Pacific                                        
    (2) Includes loans in process of construction                                        
     
    CREDIT QUALITY (unaudited) Period Ended   Change from  
       
    ($ in 000s)   Dec 31,   Sep 30,   Dec 31,     Sep 30, 2024 Dec 31, 2023  
        2024   2024   2023     $ %   $ %  
    Risk Rating Distribution                                
    Pass $ 691,350 $ 691,199 $ 674,992   $ 151   0% $ 16,358   2%  
    Special Mention   10,811   4,789   4,669     6,022   126%   6,142   132%  
    Substandard   2,704   3,615   5,688     (911 ) -25%   (2,984 ) -52%  
    Portfolio Loans $ 704,865 $ 699,603 $ 685,349   $ 5,262   1% $ 19,516   3%  
                                     
    Nonperforming Assets                                
    Nonaccruing loans   1,094   1,138   664   $ (44 ) -4%   430   65%  
    Other real estate owned   –   –   –     –   0%   –   0%  
    Nonperforming Assets $ 1,094 $ 1,138 $ 664   $ (44 ) -4%   430   65%  
                                     
    Credit Metrics                                
    Classified loans1 to portfolio loans   0.38%   0.52%   0.83%     -0.14%       -0.45%      
    ACL to classified loans1   327.33%   246.11%   149.96%     81.22%       177.37%      
    Loans past due 30+ days to portfolio loans2   0.14%   0.03%   0.08%     0.11%       0.06%      
    Nonperforming assets to total assets   0.09%   0.10%   0.06%     -0.01%       0.03%      
    Nonaccruing loans to portfolio loans   0.16%   0.16%   0.10%     0.00%       0.06%      
                                     
    (1) Classified loans include loans rated substandard or worse and are defined as loans having a well-defined weakness or weaknesses related to the borrower’s financial capacity or to pledged collateral that may jeopardize the repayment of the debt. They are characterized by the possibility that the Bank may sustain some loss if the deficiencies giving rise to the substandard classification are not corrected.
    (2) Excludes non-accrual loans
                                     
    DEPOSIT COMPOSITION & CONCENTRATIONS (unaudited) Period Ended   Change from   % of Total  
         
    ($ in 000s)                                        
        Dec 31,   Sep 30,   Dec 31,     Sep 30, 2024 Dec 31, 2023   Dec 31, Sep 30, Dec 31,  
        2024   2024   2023     $ %   $ %   2024 2024 2023  
    Deposits                                        
    Interest-bearing demand $ 194,526 $ 183,337 $ 183,436   $ 11,189   6% $ 11,090   6%   19% 18% 18%  
    Money market   193,324   192,185   179,344     1,139   1%   13,980   8%   19% 19% 18%  
    Savings   115,520   117,131   136,408     (1,611 ) -1%   (20,888 ) -15%   11% 12% 13%  
    Time deposits (CDs)   135,485   133,995   100,832     1,490   1%   34,653   34%   13% 13% 10%  
    Total interest-bearing deposits   638,855   626,648   600,020     12,207   2%   38,835   6%   62% 62% 59%  
    Non-interest bearing demand   375,876   384,825   409,272     (8,949 ) -2%   (33,396 ) -8%   38% 38% 41%  
    Total deposits $ 1,014,731 $ 1,011,473 $ 1,009,292   $ 3,258   0% $ 5,439   1%   100% 100% 100%  
                                             
    Insured Deposits $ 629,600 $ 636,725 $ 647,330   $ (7,125 ) -1% $ (393,526 ) -61%   62% 63% 64%  
    Collateralized Deposits   131,327   122,448   129,895     8,879   7%   1,432   1%   13% 12% 13%  
    Uninsured Deposits   253,804   252,300   232,067     1,504   1%   397,533   171%   25% 25% 23%  
    Total Deposits $ 1,014,731 $ 1,011,473 $ 1,009,292   $ 3,258   0% $ 5,439   1%   100% 100% 100%  
                                             
    Consumer Deposits $ 466,826 $ 458,097 $ 470,425   $ 8,729   2% $ (3,599 ) -1%   46% 45% 46%  
    Business Deposits   406,308   420,845   398,977     (14,537 ) -3%   7,331   2%   40% 42% 40%  
    Public Deposits   141,597   132,531   139,890     9,066   7%   1,707   1%   14% 13% 14%  
    Total Deposits $ 1,014,731 $ 1,011,473 $ 1,009,292   $ 3,258   0% $ 5,439   1%   100% 100% 100%  
                                             
    NET INTEREST MARGIN (unaudited) Quarter Ended   Change From   Twelve Months Ended   Change   
           
    ($ in 000s)                                                  
        Dec 31,   Sep 30,   Dec 31,     Sep 30, 2024   Dec 31, 2023   Dec 31,   Dec 31,            
        2024   2024   2023     $   %   $   %   2024   2023     $ %  
                                                       
    Average Interest Bearing Balances                                                  
    Portfolio loans $ 703,811 $ 697,904 $ 675,622   $ 5,907   1% $ 28,189   4% $ 697,527 $ 659,165   $ 38,362   6%  
    Loans held for sale $ 1,033 $ 1,276 $ 709   $ (243 ) -19% $ 324   46% $ 1,125 $ 628   $ 497   79%  
    Investment securities $ 302,501 $ 285,947 $ 289,245   $ 16,554   6% $ 13,256   5% $ 291,133 $ 286,473   $ 4,660   2%  
    Interest-bearing cash $ 78,296 $ 81,755 $ 105,177   $ (3,459 ) -4% $ (26,881 ) -26% $ 72,893 $ 180,781   $ (107,888 ) -60%  
    Total interest-earning assets $ 1,085,641 $ 1,066,882 $ 1,070,753   $ 18,759   2% $ 14,888   1% $ 1,062,678 $ 1,127,047   $ (64,369 ) -6%  
    Non-interest bearing deposits $ 388,227 $ 383,332 $ 419,994   $ 4,895   1% $ (31,767 ) -8% $ 388,561 $ 448,234   $ (59,673 ) -13%  
    Interest-bearing deposits $ 628,475 $ 615,388 $ 593,464   $ 13,087   2% $ 35,011   6% $ 607,678 $ 620,026   $ (12,348 ) -2%  
    Total Deposits $ 1,016,702 $ 998,720 $ 1,013,458   $ 17,982   2% $ 3,244   0% $ 996,239 $ 1,068,260   $ (72,021 ) -7%  
    Borrowings $ 13,403 $ 13,403 $ 13,403   $ –   0% $ –   0% $ 13,403 $ 13,401   $ 2   0%  
    Total interest-bearing liabilities $ 641,878 $ 628,791 $ 606,867   $ 13,087   2% $ 35,011   6% $ 621,081 $ 633,427   $ (12,346 ) -2%  
                                                       
    Yield / Cost $(1)                                                  
    Portfolio loans $ 10,336 $ 10,509 $ 9,879   $ (173 ) -2% $ 457   5% $ 41,169 $ 37,088   $ 4,081   11%  
    Loans held for sale $ 16 $ 22 $ 12   $ (6 ) -27% $ 4   33% $ 71 $ 39   $ 32   82%  
    Investment securities $ 2,622 $ 2,535 $ 2,536   $ 87   3% $ 86   3% $ 10,107 $ 9,489   $ 618   7%  
    Interest-bearing cash $ 942 $ 1,108 $ 1,440   $ (166 ) -15% $ (498 ) -35% $ 3,833 $ 9,109   $ (5,276 ) -58%  
    Total interest-earning assets $ 13,916 $ 14,174 $ 13,867   $ (258 ) -2% $ 49   0% $ 55,180 $ 55,725   $ (545 ) -1%  
    Interest-bearing deposits $ 2,796 $ 2,684 $ 1,914   $ 112   4% $ 882   46% $ 9,829 $ 5,351   $ 4,478   84%  
    Borrowings $ 225 $ 243 $ 247   $ (18 ) -7% $ (22 ) -9% $ 951 $ 929   $ 22   2%  
    Total interest-bearing liabilities $ 3,021 $ 2,927 $ 2,161   $ 94   3% $ 860   40% $ 10,780 $ 6,280   $ 4,500   72%  
    Net interest income $ 10,895 $ 11,247 $ 11,706   $ (352 ) -3% $ (811 ) -7% $ 44,400 $ 49,445   $ (5,045 ) -10%  
                                                       
    Yield / Cost %(1)                                                  
    Yield on portfolio loans   5.84%   5.99%   5.80%     -0.15%       0.04%       5.90%   5.63%     0.27%      
    Yield on investment securities   3.45%   3.53%   3.48%     -0.08%       -0.03%       3.47%   3.31%     0.16%      
    Yield on interest-bearing cash   4.79%   5.39%   5.44%     -0.60%       -0.65%       5.26%   5.04%     0.22%      
    Cost of interest-bearing deposits   1.77%   1.74%   1.28%     0.03%       0.49%       1.62%   0.86%     0.76%      
    Cost of borrowings   6.68%   7.21%   7.31%     -0.53%       -0.63%       7.10%   6.93%     0.17%      
    Cost of deposits and borrowings   1.17%   1.15%   0.83%     0.02%       0.34%       1.07%   0.58%     0.49%      
                                                       
    Yield on interest-earning assets   5.10%   5.29%   5.14%     -0.19%       -0.04%       5.19%   4.94%     0.25%      
    Cost of interest-bearing liabilities   1.87%   1.85%   1.41%     0.02%       0.46%       1.74%   0.99%     0.75%      
    Net interest spread   3.23%   3.44%   3.73%     -0.21%       -0.50%       3.45%   3.95%     -0.50%      
    Net interest margin   3.99%   4.19%   4.34%     -0.20%       -0.35%       4.18%   4.39%     -0.21%      
                                                       
    (1) Tax-exempt income has been adjusted to a tax equivalent basis at a rate of 21%.
                                                       
    ALLOWANCE FOR CREDIT LOSSES (ACL) (unaudited) Quarter Ended   Change From   Twelve Months Ended   Change   
           
    ($ in 000s)                                                            
        Dec 31,   Sep 30,   Dec 31,     Sep 30, 2024   Dec 31, 2023   Dec 31,   Dec 31,            
        2024   2024   2023     $ %   $ %   2024   2023     $ %  
    Allowance for Credit Losses                                                            
    Beginning of period balance $ 8,897   $ 8,859   $ 8,347     $ 38   0% $ 550   7% $ 8,530   $ 8,236     $ 294   4%  
    Impact of CECL Adoption (ASC 326)   –     –     –       –   -100%   –   -100%   –     (157 )     157   -100%  
    Charge-offs   (32 )   (5 )   (20 )     (27 ) 540%   (12 ) 60%   (129 )   (279 )     150   -54%  
    Recoveries   105     16     41       89   556%   64   156%   124     96       28   29%  
    Net (charge-off) recovery   73     11     21       62   564%   52   248%   (5 )   (183 )     178   -97%  
    Provision (benefit)   (119 )   27     162       (146 ) -541%   (281 ) -173%   326     634       (308 ) -49%  
    End of period balance $ 8,851   $ 8,897   $ 8,530     $ (46 ) -1% $ 321   4% $ 8,851   $ 8,530     $ 321   4%  
                                                                 
    Net charge-off (recovery) to                                                            
    average portfolio loans   -0.04%     -0.01%     -0.01%       -0.03%       -0.03%       0.00%     0.03%       -0.03%      
    ACL to portfolio loans   1.26%     1.27%     1.24%       -0.01%       0.02%       1.26%     1.24%       0.02%      
                                                                 
    Allowance for unfunded loans                                                            
    Beginning of period balance $ 524   $ 617   $ 749     $ (93 ) -15% $ (225 ) -30% $ 698   $ 203     $ 495   244%  
    Impact of CECL Adoption (ASC 326)   –     –     –       –   -100%   –   -100%   –     609       (609 ) -100%  
    Provision (benefit)   16     (93 )   (51 )     109   -117%   67   -131%   (158 )   (114 )     (44 ) 39%  
    End of period balance $ 540   $ 524   $ 698     $ 16   3% $ (158 ) -23% $ 540   $ 698     $ (158 ) -23%  
                                                                 

    ABOUT PACIFIC FINANCIAL CORPORATION

    Pacific Financial Corporation of Aberdeen, Washington, is the bank holding company for Bank of the Pacific, a state chartered and federally insured commercial bank. Bank of the Pacific offers banking products and services to small-to-medium sized businesses and professionals in western Washington and Oregon. At December 31, 2024, the Company had total assets of $1.15 billion and operated fifteen branches in the communities of Grays Harbor, Pacific, Thurston, Whatcom, Skagit, Clark and Wahkiakum counties in the State of Washington, and three branches in the communities of Clatsop and Clackamas counties in Oregon. The Company also operated loan production offices in the communities of Burlington, Washington and Salem, Oregon. Visit the Company’s website at www.bankofthepacific.com. Member FDIC.

    Cautions Concerning Forward-Looking Statements
    This press release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other laws, including all statements in this release that are not historical facts or that relate to future plans or events or projected results of Pacific Financial Corporation and its wholly-owned subsidiary, Bank of the Pacific. Such statements are based on information available at the time of communication and are based on current beliefs and expectations of the Company’s management and are subject to risks and uncertainties, many of which are beyond our control, which could cause actual events or results to differ materially from those projected, anticipated or implied, and could negatively impact the Company’s operating and stock price performance. These risks and uncertainties include various risks associated with growing the Bank and expanding the services it provides, development of new business lines and markets, competition in the marketplace, general economic conditions, changes in interest rates, extensive and evolving regulation of the banking industry, and many other risks. Any forward-looking statements in this communication are based on information at the time the statement is made. We undertake no obligation to update or revise any forward-looking statement. Readers of this release are cautioned not to put undue reliance on forward-looking statements.

    The MIL Network –

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

    Source: GlobeNewswire (MIL-OSI)

    TORONTO, Jan. 31, 2025 (GLOBE NEWSWIRE) — Ninepoint Partners LP (“Ninepoint Partners”) today announced the final January 2025 cash distribution for the Ninepoint Cash Management Fund – ETF Series. The record date for the distribution is January 31, 2025. This distribution is payable on February 7, 2025.

    The per-unit final January distribution is detailed below:

    Ninepoint ETF Series Ticker Cash Distribution
    per unit    		 Notional Distribution
    per unit    		 CUSIP
    Ninepoint Cash Management Fund NSAV $0.14673 $0.00000 65443X105


    About Ninepoint Partners

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

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

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

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

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

    Sales Inquiries:

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

    The MIL Network –

  • MIL-OSI: Orrstown Financial Services, Inc. Reports Fourth Quarter 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    • Net income of $13.7 million, or $0.71 per diluted share, for the three months ended December 31, 2024 compared to net loss of $7.9 million, or $0.41 per diluted share, for the three months ended September 30, 2024; the fourth quarter of 2024 included $3.9 million in expenses related to the merger and $0.5 million for a legal settlement compared to $17.0 million in expenses related to the merger, $15.5 million of provision for credit losses on non-purchase credit deteriorated loans and $4.8 million for an executive retirement, net of taxes, for the third quarter of 2024;
    • Excluding the impact of the non-recurring charges referenced above, net income and diluted earnings per share, respectively, were $16.7 million(1) and $0.87(1) for the fourth quarter of 2024 compared to adjusted net income and diluted earnings per share of $21.4 million(1) and $1.11(1), respectively;
    • The Board of Directors declared a cash dividend of $0.26 per common share, payable February 21, 2025, to shareholders of record as of February 14, 2025; this represents an increase in the Company’s quarterly cash dividend of $0.03 per share, or 13%;
    • The previously announced cost save target of 18% has been achieved for the go-forward operating run rate as of December 31, 2024;
    • With the core conversion being completed in November 2024, the fourth quarter results reflected several ongoing activities associated with the conversion and the transitional period; the fourth quarter also included elevated salaries and employee benefit expenses due to year end performance-based incentive accruals;
    • Net interest margin, on a tax equivalent basis, was 4.05% in the fourth quarter of 2024 compared to 4.14% in the third quarter of 2024; the net accretion impact of purchase accounting marks was $7.2 million of net interest income, which represents 52 basis points of net interest margin for the fourth quarter of 2024 compared to $5.8 million of net interest income, which represents 42 basis points of net interest margin, for the third quarter of 2024;
    • Commercial loans declined by $59.5 million, or 2%, from September 30, 2024 to December 31, 2024 due primarily to strategic actions to reduce risk in the portfolio, including reducing commercial real estate (“CRE”) loan concentrations; a pool of mostly commercial and industrial loans totaling $6.0 million was sold, including $2.6 million of nonaccrual loans; total classified loans declined by $16.9 million during the fourth quarter of 2024;
    • Noninterest income decreased by $1.2 million to $11.2 million in the three months ended December 31, 2024 compared to $12.4 million in the three months ended September 30, 2024; this reduction was driven by certain courtesy fee waivers provided to clients as well as tax credits recognized in the third quarter of 2024 that did not recur in the fourth quarter;
    • The provision for credit losses was $1.8 million for the three months ended December 31, 2024, inclusive of a charge-off of $2.4 million for one commercial and industrial (C&I) relationship and charge-offs associated with the loan sale of $0.6 million, which was offset by the acceleration of a purchase mark for the same amount;
    • Tangible book value per common share(1) increased to $21.19 per share at December 31, 2024 compared to $21.12 per share at September 30, 2024.

    (1) Non-GAAP measure. See Appendix A for additional information.

    HARRISBURG, Pa., Jan. 31, 2025 (GLOBE NEWSWIRE) — Orrstown Financial Services, Inc. (NASDAQ: ORRF), the parent company of Orrstown Bank (the “Bank”), announced earnings for the three months ended December 31, 2024. Net income totaled $13.7 million for the three months ended December 31, 2024, compared to net loss of $7.9 million for the three months ended September 30, 2024 and net income of $7.6 million for the three months ended December 31, 2023. Diluted earnings per share was $0.71 for the three months ended December 31, 2024, compared to diluted loss per share of $0.41 for the three months ended September 30, 2024 and diluted earnings per share of $0.73 for the three months ended December 31, 2023. For the fourth quarter of 2024, excluding the impact of merger-related expenses and other non-recurring charges, net of taxes, net income and diluted earnings per share were $16.7 million(1) and $0.87(1), respectively. For the third quarter of 2024, excluding the impact of the merger-related expenses, net of taxes, net income and diluted earnings per share were $21.4 million(1) and $1.11(1), respectively. For the fourth quarter of 2023, excluding the impact from the merger-related expenses, net income and diluted earnings per share were $8.6 million(1) and $0.83(1), respectively.

    “While we are pleased with another year of strong core earnings, we are even more excited about what lies ahead,” said Thomas R. Quinn, Jr., President and Chief Executive Officer. “We successfully completed our core conversion in November and have achieved the targeted 18% cost savings in our future operating run rate of the two banks’ combined noninterest expense base. With the integration behind us, we look forward to returning our focus to growing the company, enhancing shareholder value and building the premier community banking franchise in our Pennsylvania and Maryland markets.”

    (1) Non-GAAP measure. See Appendix A for additional information.

    DISCUSSION OF RESULTS

    Balance Sheet

    Loans

    Loans held for investment was $3.9 billion at December 31, 2024, a decrease of $50.2 million, compared to $4.0 billion at September 30, 2024. The decrease from the third quarter of 2024 was primarily due to strategic actions to reduce risk in the portfolio, including reducing CRE loan concentrations.

    Investment Securities

    Investment securities, all of which are classified as available-for-sale, increased by $2.9 million to $829.7 million at December 31, 2024 from $826.8 million at September 30, 2024. During the fourth quarter of 2024, investment securities totaling $37.7 million were purchased, partially offset by paydowns of $18.1 million and net unrealized losses of $16.2 million. The overall duration of the Company’s investment securities portfolio was 4.1 years at December 31, 2024 compared to 4.6 years at September 30, 2024. See Appendix B for a summary of the Bank’s investment securities at December 31, 2024, highlighting their concentrations, credit ratings and credit enhancement levels.

    Deposits

    During the fourth quarter of 2024, deposits decreased by $35.1 million to $4.6 billion at December 31, 2024 compared to $4.7 billion at September 30, 2024 due to normal seasonal activity. The Bank’s loan-to-deposit ratio decreased slightly to 85% at December 31, 2024 from 86% at September 30, 2024.

    Borrowings

    The Bank actively manages its liquidity position through its various sources of funding to meet the needs of its clients. FHLB advances and other borrowings remained at $115.4 million at December 31, 2024 and September 30, 2024. The Bank seeks to maintain sufficient liquidity to ensure client needs can be addressed in a timely basis. The Bank had available alternative funding sources, such as FHLB advances and other wholesale options, of approximately $1.7 billion at December 31, 2024.

    Goodwill and Intangible Assets

    Goodwill decreased by $2.5 million from September 30, 2024 to December 31, 2024 due to certain purchase accounting adjustments, primarily an increase in the core deposit intangible of $4.1 million.

    Income Statement

    Net Interest Income and Margin

    Net interest income was $50.6 million for the three months ended December 31, 2024 compared to $51.7 million for the three months ended September 30, 2024. The net interest margin, on a tax equivalent basis, decreased to 4.05% in the fourth quarter of 2024 from 4.14% in the third quarter of 2024. The net interest margin was positively impacted by the net accretion impact of purchase accounting marks on loans, securities, deposits and borrowings of $7.2 million, which represents 52 basis points of net interest margin during the fourth quarter of 2024. During the third quarter of 2024, the net accretion impact of purchase accounting marks was $5.8 million, which represented 42 basis points of net interest margin. Funding costs show signs of stabilizing.

    Interest income on loans, on a tax equivalent basis, decreased by $2.7 million to $68.1 million for the three months ended December 31, 2024 compared to $70.8 million for the three months ended September 30, 2024. Average loans decreased by $28.0 million during the three months ended December 31, 2024 compared to the three months ended September 30, 2024.

    Interest income on investment securities, on a tax equivalent basis, was $9.9 million for the fourth quarter of 2024 compared to $10.1 million in the third quarter of 2024.

    Interest expense, on a tax equivalent basis, decreased by $1.9 million to $29.4 million for the three months ended December 31, 2024 compared to $31.3 million for the three months ended September 30, 2024. Average interest-bearing deposits decreased by $58.1 million during the three months ended December 31, 2024 compared to the three months ended September 30, 2024. Average borrowings decreased by $1.3 million during the three months ended December 31, 2024 compared to the three months ended September 30, 2024. Interest expense includes $0.9 million and $1.5 million of amortization of purchase accounting marks for the three months ended December 31, 2024 and September 30, 2024, respectively.

    Provision for Credit Losses

    The allowance for credit losses (“ACL”) on loans decreased to $48.7 million at December 31, 2024 from $49.6 million at September 30, 2024. The ACL to total loans was 1.24% at December 31, 2024 compared to 1.25% at September 30, 2024. The Company recorded a provision for credit losses on loans of $2.1 million for the three months ended December 31, 2024 compared to $14.1 million for the three months ended September 30, 2024. Net charge-offs were $3.0 million for the three months ended December 31, 2024 compared to net charge-offs of $0.3 million for the three months ended September 30, 2024. During the fourth quarter of 2024, the Bank sold $6.0 million of mostly C&I loans, which resulted in a charge-off totaling $0.6 million. There was also a corresponding $0.6 million of purchase accounting accretion associated with these loans.

    Classified loans decreased by $16.9 million to $88.6 million at December 31, 2024 from $105.5 million at September 30, 2024 primarily due to a combination of repayments and net rating upgrades, in addition to the loan sale. Non-accrual loans decreased by $2.8 million to $24.1 million at December 31, 2024 from $26.9 million at September 30, 2024 partially due to a sale of mostly C&I loans on nonaccrual status totaling $2.6 million during the fourth quarter of 2024. Nonaccrual loans to total loans decreased to 0.61% at December 31, 2024 compared to 0.68% at September 30, 2024 and decreased from 1.11% at December 31, 2023. Management believes the ACL to be adequate based on current asset quality metrics and economic conditions.

    Noninterest Income

    Noninterest income decreased by $1.2 million to $11.2 million in the three months ended December 31, 2024 from $12.4 million in the three months ended September 30, 2024. There were reduced service charges in the fourth quarter due to fee waivers provided to clients in the post-conversion period from November through the end of the year.

    Wealth management income decreased to $4.9 million in the three months ended December 31, 2024 compared to $5.0 million for the three months ended September 30, 2024. The team continues to provide value added services to clients and deliver strong results.

    Other income decreased by $0.3 million to $1.6 million in the three months ended December 31, 2024 compared to $1.9 million in the three months ended September 30, 2024 due to income from solar tax credits totaling $0.3 million recorded during the third quarter of 2024.

    Noninterest Expenses

    Noninterest expenses decreased by $17.4 million to $42.9 million in the three months ended December 31, 2024 from $60.3 million in the three months ended September 30, 2024.

    The Company’s financial results for any periods ended prior to July 1, 2024 reflect Orrstown’s results only on a standalone basis. As a result of this factor and the merger-related items below, the Company’s financial results for the fourth quarter of 2024 may not be directly comparable to prior reported periods.

    For the three months ended December 31, 2024, merger-related expenses totaled $3.9 million, a decrease of $13.1 million, compared to $17.0 million for the three months ended September 30, 2024. The merger costs incurred during the fourth quarter of 2024 include employee separation costs, software conversion costs and professional fees. The Company expect to incur some additional merger-related expenses in the first quarter of 2025.

    Salaries and benefits expense decreased by $4.8 million to $22.4 million for the three months ended December 31, 2024 compared to $27.2 million for the three months ended September 30, 2024. The three months ended September 30, 2024 included $4.8 million of expenses associated with the retirement of an executive.

    Intangible asset amortization increased to $2.8 million for the three months ended December 31, 2024 compared to $2.5 million for the three months ended September 30, 2024. This increase is due to the amortization expense recognized on the core deposit intangible of $40.1 million and wealth customer relationship intangible of $10.4 million established on July 1, 2024 from the merger. Due to the aforementioned purchase accounting adjustment, the three months ended December 31, 2024 included $0.4 million of additional amortization expense associated with this adjustment.

    Taxes other than income decreased by $0.8 million in the three months ended December 31, 2024 compared to the three months ended September 30, 2024. This decrease reflects tax credits recognized during the fourth quarter of 2024.

    Income Taxes

    The Company’s effective tax rate was 20.1% for both the fourth and third quarters of 2024. The Company’s effective tax rate for the three months ended December 31, 2024 is less than the 21% federal statutory rate primarily due to tax-exempt income, including interest earned on tax-exempt loans and securities and income from life insurance policies and tax credits partially offset by the disallowed portion of interest expense against earnings in association with the Bank’s tax-exempt investments under the Tax Equity and Fiscal Responsibility Act of 1982 (“TEFRA”) and the impact of nondeductible merger-related costs. The Company regularly analyzes its projected taxable income and makes adjustments to the provision for income taxes accordingly.

    Capital

    Shareholders’ equity totaled $516.7 million at December 31, 2024 compared to $516.2 million at September 30, 2024. The impact of net income of $13.7 million was offset by a reduction of $10.4 million in accumulated other comprehensive loss from an increase in unrealized losses in the investment portfolio and dividend payments of $4.4 million.

    Tangible book value per share(1) increased to $21.19 per share at December 31, 2024 from $21.12 per share at September 30, 2024.

    The Company’s tangible common equity ratio was 7.5% at both December 31, 2024 and September 30, 2024. The Company’s total risk-based capital ratio was 12.4% at both December 31, 2024 and September 30, 2024. The Company’s Tier 1 leverage ratio increased to 8.3% at December 31, 2024 compared to 8.0% at September 30, 2024 driven by earnings and a decrease in average assets during the fourth quarter of 2024.

    At December 31, 2024, all four capital ratios applicable to the Company were above regulatory minimum levels to be deemed “well capitalized” under current bank regulatory guidelines. The Company continues to believe that capital is adequate to support the risks inherent in the balance sheet, as well as growth requirements.

    (1) Non-GAAP measure. See Appendix A for additional information.

    Investor Relations Contact:
    Neelesh Kalani
    Executive Vice President, Chief Financial Officer
    Phone (717) 510-7097
    FINANCIAL HIGHLIGHTS (Unaudited)              
                   
      Three Months Ended   Twelve Months Ended
      December 31,   December 31,   December 31,   December 31,
    (In thousands)   2024       2023       2024       2023  
                   
    Profitability for the period:              
    Net interest income $ 50,573     $ 26,018     $ 155,254     $ 104,906  
    Provision for credit losses   1,755       418       16,546       1,682  
    Noninterest income   11,247       6,491       37,435       25,652  
    Noninterest expenses   42,930       22,392       148,337       83,843  
    Income before income tax expense   17,135       9,699       27,806       45,033  
    Income tax expense   3,451       2,056       5,756       9,370  
    Net income available to common shareholders $ 13,684     $ 7,643     $ 22,050     $ 35,663  
                   
    Financial ratios:              
    Return on average assets (1)   1.00 %     1.00 %     0.51 %     1.19 %
    Return on average assets, adjusted (1) (2) (3)   1.22 %     1.13 %     1.30 %     1.22 %
    Return on average equity (1)   10.54 %     12.21 %     5.62 %     14.66 %
    Return on average equity, adjusted (1) (2) (3)   12.86 %     13.77 %     14.29 %     15.06 %
    Net interest margin (1)   4.05 %     3.71 %     3.92 %     3.80 %
    Efficiency ratio   69.4 %     68.9 %     77.0 %     64.2 %
    Efficiency ratio, adjusted (2) (3)   62.3 %     65.6 %     62.5 %     63.4 %
    Income per common share:              
    Basic $ 0.72     $ 0.74     $ 1.49     $ 3.45  
    Basic, adjusted (2) (3) $ 0.87     $ 0.84     $ 3.80     $ 3.54  
    Diluted $ 0.71     $ 0.73     $ 1.48     $ 3.42  
    Diluted, adjusted (2) (3) $ 0.87     $ 0.83     $ 3.76     $ 3.51  
                   
    Average equity to average assets   9.45 %     8.18 %     9.08 %     8.11 %
                   
    (1) Annualized for the three months ended December 31, 2024 and 2023.
    (2) Ratio has been adjusted for the non-recurring charges for all periods presented.
    (3) Non-GAAP based financial measure. Please refer to Appendix A – Supplemental Reporting of Non-GAAP Measures and GAAP to Non-GAAP Reconciliations for a discussion of our use of non-GAAP based financial measures, including tables reconciling GAAP and non-GAAP financial measures appearing herein.
    FINANCIAL HIGHLIGHTS (Unaudited)      
    (continued)      
      December 31,   December 31,
    (Dollars in thousands, except per share amounts)   2024       2023  
    At period-end:      
    Total assets $ 5,431,023     $ 3,064,240  
    Loans, net of allowance for credit losses   3,882,525       2,269,611  
    Loans held-for-sale, at fair value   6,614       5,816  
    Securities available for sale, at fair value   829,711       513,519  
    Total deposits   4,615,706       2,558,814  
    FHLB advances and other borrowings and Securities sold under agreements to repurchase   141,227       147,285  
    Subordinated notes and trust preferred debt   68,680       32,093  
    Shareholders’ equity   516,682       265,056  
           
    Credit quality and capital ratios (1):      
    Allowance for credit losses to total loans   1.24 %     1.25 %
    Total nonaccrual loans to total loans   0.61 %     1.11 %
    Nonperforming assets to total assets   0.45 %     0.83 %
    Allowance for credit losses to nonaccrual loans   202 %     112 %
    Total risk-based capital:      
    Orrstown Financial Services, Inc.   12.4 %     13.0 %
    Orrstown Bank   12.4 %     12.8 %
    Tier 1 risk-based capital:      
    Orrstown Financial Services, Inc.   10.2 %     10.8 %
    Orrstown Bank   11.2 %     11.6 %
    Tier 1 common equity risk-based capital:      
    Orrstown Financial Services, Inc.   10.0 %     10.8 %
    Orrstown Bank   11.2 %     11.6 %
    Tier 1 leverage capital:      
    Orrstown Financial Services, Inc.   8.3 %     8.9 %
    Orrstown Bank   9.1 %     9.5 %
           
    Book value per common share $ 26.65     $ 24.98  
           
    (1) Capital ratios are estimated for the current period, subject to regulatory filings. The Company elected the three-year phase in option for the day-one impact of ASU 2016-13 for current expected credit losses (“CECL”) to regulatory capital. Beginning in 2023, the Company adjusted retained earnings, allowance for credit losses includable in tier 2 capital and the deferred tax assets from temporary differences in risk weighted assets by the permitted percentage of the day-one impact from adopting the CECL standard.
    CONSOLIDATED BALANCE SHEETS (Unaudited)      
           
    (Dollars in thousands, except per share amounts) December 31, 2024   December 31, 2023
    Assets      
    Cash and due from banks $ 51,026     $ 32,586  
    Interest-bearing deposits with banks   187,282       32,575  
    Cash and cash equivalents   238,308       65,161  
    Restricted investments in bank stocks   20,232       11,992  
    Securities available for sale (amortized cost of $864,920 and $549,089 at December 31, 2024 and December 31, 2023, respectively)   829,711       513,519  
    Loans held for sale, at fair value   6,614       5,816  
    Loans   3,931,214       2,298,313  
    Less: Allowance for credit losses   (48,689 )     (28,702 )
    Net loans   3,882,525       2,269,611  
    Premises and equipment, net   50,217       29,393  
    Cash surrender value of life insurance   143,854       73,204  
    Goodwill   68,106       18,724  
    Other intangible assets, net   47,765       2,414  
    Accrued interest receivable   21,058       13,630  
    Deferred tax assets, net   42,647       22,017  
    Other assets   79,986       38,759  
    Total assets $ 5,431,023     $ 3,064,240  
           
    Liabilities      
    Deposits:      
    Noninterest-bearing $ 886,786     $ 430,959  
    Interest-bearing   3,728,920       2,127,855  
    Total deposits   4,615,706       2,558,814  
    Securities sold under agreements to repurchase and federal funds purchased   25,863       9,785  
    FHLB advances and other borrowings   115,364       137,500  
    Subordinated notes and trust preferred debt   68,680       32,093  
    Other liabilities   88,728       60,992  
    Total liabilities   4,914,341       2,799,184  
           
    Shareholders’ Equity      
    Preferred stock, $1.25 par value per share; 500,000 shares authorized; no shares issued or outstanding   —       —  
    Common stock, no par value—$0.05205 stated value per share; 50,000,000 shares authorized; 19,722,640 shares issued and 19,389,967 outstanding at December 31, 2024; 11,204,599 shares issued and 10,612,390 outstanding at December 31, 2023   1,027       583  
    Additional paid—in capital   423,274       189,027  
    Retained earnings   126,540       117,667  
    Accumulated other comprehensive loss   (26,316 )     (28,476 )
    Treasury stock— 332,673 and 592,209 shares, at cost at December 31, 2024 and December 31, 2023, respectively   (7,843 )     (13,745 )
    Total shareholders’ equity   516,682       265,056  
    Total liabilities and shareholders’ equity $ 5,431,023     $ 3,064,240  
    ORRSTOWN FINANCIAL SERVICES, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
                     
        Three Months Ended   Twelve Months Ended
        December 31,   December 31,   December 31,   December 31,
    (Dollars in thousands, except per share amounts)     2024       2023       2024       2023  
    Interest income                
    Loans   $ 67,870     $ 33,910     $ 210,287     $ 126,595  
    Investment securities – taxable     8,773       4,787       27,361       18,031  
    Investment securities – tax-exempt     880       871       3,521       3,462  
    Short-term investments     2,492       460       7,764       1,809  
    Total interest income     80,015       40,028       248,933       149,897  
    Interest expense                
    Deposits     26,850       12,118       84,234       37,510  
    Securities sold under agreements to repurchase and federal funds purchased     67       30       215       114  
    FHLB advances and other borrowings     1,165       1,358       4,945       5,350  
    Subordinated notes and trust preferred debt     1,360       504       4,285       2,017  
    Total interest expense     29,442       14,010       93,679       44,991  
    Net interest income     50,573       26,018       155,254       104,906  
    Provision for credit losses     1,755       418       16,546       1,682  
    Net interest income after provision for credit losses     48,818       25,600       138,708       103,224  
    Noninterest income                
    Service charges     2,050       1,198       6,893       4,866  
    Interchange income     1,608       952       5,259       3,873  
    Swap fee income     597       588       1,676       1,039  
    Wealth management income     4,902       2,945       16,353       11,340  
    Mortgage banking activities     517       143       1,835       591  
    Investment securities (losses) gains     (5 )     (39 )     249       (47 )
    Other income     1,578       704       5,170       3,990  
    Total noninterest income     11,247       6,491       37,435       25,652  
    Noninterest expenses                
    Salaries and employee benefits     22,444       12,848       76,581       50,983  
    Occupancy, furniture and equipment     4,893       2,534       14,570       9,593  
    Data processing     1,540       1,247       6,088       4,913  
    Advertising and bank promotions     878       501       2,587       2,157  
    FDIC insurance     955       460       2,677       1,960  
    Professional services     1,591       702       4,142       2,905  
    Taxes other than income     (312 )     203       734       1,050  
    Intangible asset amortization     2,838       236       5,742       953  
    Merger-related expenses     3,887       1,059       22,671       1,059  
    Restructuring expenses     39       —       296       —  
    Other operating expenses     4,177       2,602       12,249       8,270  
    Total noninterest expenses     42,930       22,392       148,337       83,843  
    Income before income tax expense     17,135       9,699       27,806       45,033  
    Income tax expense     3,451       2,056       5,756       9,370  
    Net income   $ 13,684     $ 7,643     $ 22,050     $ 35,663  
    continued
                     
        Three Months Ended   Twelve Months Ended
        December 31,   December 31,   December 31,   December 31,
          2024       2023       2024       2023  
    Share information:                
    Basic earnings per share   $ 0.72     $ 0.74     $ 1.49     $ 3.45  
    Diluted earnings per share   $ 0.71     $ 0.73     $ 1.48     $ 3.42  
    Dividends paid per share   $ 0.23     $ 0.20     $ 0.86     $ 0.80  
    Weighted average shares – basic     19,118       10,321       14,761       10,340  
    Weighted average shares – diluted     19,300       10,419       14,914       10,435  
    ANALYSIS OF NET INTEREST INCOME        
    Average Balances and Interest Rates, Taxable-Equivalent Basis (Unaudited)    
         
      Three Months Ended
      12/31/2024   9/30/2024   6/30/2024   3/31/2024   12/31/2023
          Taxable-   Taxable-       Taxable-   Taxable-       Taxable-   Taxable-       Taxable-   Taxable-       Taxable-   Taxable-
      Average   Equivalent   Equivalent   Average   Equivalent   Equivalent   Average   Equivalent   Equivalent   Average   Equivalent   Equivalent   Average   Equivalent   Equivalent
    (In thousands) Balance   Interest   Rate   Balance   Interest   Rate   Balance   Interest   Rate   Balance   Interest   Rate   Balance   Interest   Rate
    Assets                                                          
    Federal funds sold & interest-bearing bank balances $ 199,236   $ 2,492     4.96 %   $ 184,465   $ 2,452     5.29 %   $ 142,868   $ 1,864     5.25 %   $ 74,523   $ 956     5.16 %   $ 37,873   $ 460     4.82 %
    Investment securities (1)(2)   849,389     9,887     4.66       849,700     10,123     4.77       538,451     6,114     4.54       519,851     5,694     4.39       508,891     5,890     4.63  
    Loans (1)(3)(4)(5)(6)   3,961,269     68,073     6.82       3,989,259     70,849     7.07       2,324,942     35,690     6.17       2,308,103     36,382     6.34       2,286,678     34,055     5.91  
    Total interest-earning assets   5,009,894     80,452     6.38       5,023,424     83,424     6.61       3,006,261     43,668     5.84       2,902,477     43,032     5.96       2,833,442     40,405     5.67  
    Other assets   454,271             491,719             204,863             196,295             204,382        
    Total assets $ 5,464,165           $ 5,515,143           $ 3,211,124           $ 3,098,772           $ 3,037,824        
    Liabilities and Shareholders’ Equity                                                
    Interest-bearing demand deposits(7) $ 1,257,316     5,360     1.69     $ 2,554,743     16,165     2.52     $ 1,649,753     10,118     2.47     $ 1,570,622     9,192     2.35     $ 1,543,575     8,333     2.14  
    Savings deposits(7)   1,538,287     10,381     2.68       283,337     148     0.21       165,467     140     0.34       170,005     144     0.34       178,351     153     0.34  
    Time deposits   998,963     11,109     4.41       1,014,628     12,290     4.82       481,721     5,007     4.18       428,443     4,180     3.92       392,085     3,632     3.67  
    Total interest-bearing deposits   3,794,566     26,850     2.81       3,852,708     28,603     2.95       2,296,941     15,265     2.67       2,169,070     13,516     2.51       2,114,011     12,118     2.27  
    Securities sold under agreements to repurchase and federal funds purchased   21,572     67     1.23       23,075     96     1.66       13,412     27     0.81       12,010     25     0.85       13,874     30     0.85  
    FHLB advances and other borrowings   115,373     1,165     4.01       115,388     1,154     3.98       115,000     1,152     4.03       137,505     1,474     4.31       127,843     1,358     4.21  
    Subordinated notes and trust preferred debt   68,571     1,360     7.88       68,399     1,437     8.36       32,118     734     9.19       32,100     754     9.45       32,083     504     6.29  
    Total interest-bearing liabilities   4,000,082     29,442     2.92       4,059,570     31,290     3.07       2,457,471     17,178     2.81       2,350,685     15,769     2.70       2,287,811     14,010     2.43  
    Noninterest-bearing demand deposits   849,999             807,886             423,037             417,469             441,695        
    Other liabilities   97,685             110,017             57,828             62,329             59,876        
    Total liabilities   4,947,766             4,977,473             2,938,336             2,830,483             2,789,382        
    Shareholders’ equity   516,399             537,670             272,788             268,289             248,442        
    Total $ 5,464,165           $ 5,515,143           $ 3,211,124           $ 3,098,772           $ 3,037,824        
    Taxable-equivalent net interest income / net interest spread       51,010     3.46 %         52,134     3.55 %         26,490     3.02 %         27,263     3.26 %         26,395     3.24 %
    Taxable-equivalent net interest margin         4.05 %           4.14 %           3.54 %           3.77 %           3.71 %
    Taxable-equivalent adjustment       (437 )             (437 )             (387 )             (382 )             (377 )    
    Net interest income     $ 50,573             $ 51,697             $ 26,103             $ 26,881             $ 26,018      
    Ratio of average interest-earning assets to average interest-bearing liabilities         125 %           124 %           122 %           123 %           124 %
                                                               
    NOTES:                                                          
    (1) Yields and interest income on tax-exempt assets have been computed on a taxable-equivalent basis assuming a 21% tax rate.
    (2) Average balance of investment securities is computed at fair value.
    (3) Average balances include nonaccrual loans.
    (4) Interest income on loans includes prepayment and late fees, where applicable.
    (5) Interest income on loans includes interest recovered of $1.6 million from the payoff of a commercial real estate loan on nonaccrual status in the three months ended March 31, 2024.
    (6) Interest income on loans includes accretion on purchase accounting marks of $7.6 million, $7.3 million, $0.2 million, $0.1 million and $0.1 million for the three months ended December 31, 2024, September 30, 2024, June 30, 2024, March 31, 2024 and December 31, 2023, respectively.
    (7) Changes between average deposit type balances are due to operational updates for deposit sweeps during the three months ended December 31, 2024.
    ANALYSIS OF NET INTEREST INCOME        
    Average Balances and Interest Rates, Taxable-Equivalent Basis (Unaudited)    
    (continued)                      
      Twelve Months Ended
      December 31, 2024   December 31, 2023
          Taxable-   Taxable-       Taxable-   Taxable-
      Average   Equivalent   Equivalent   Average   Equivalent   Equivalent
    (In thousands) Balance   Interest   Rate   Balance   Interest   Rate
    Assets                      
    Federal funds sold & interest-bearing bank balances $ 150,500     $ 7,764       5.14 %   $ 40,856     $ 1,809       4.43 %
    Investment securities (1)(2)   690,223       31,817       4.60       520,465       22,414       4.31  
    Loans (1)(3)(4)(5)(6)   3,150,425       210,994       6.68       2,239,574       127,107       5.68  
    Total interest-earning assets   3,991,148       250,575       6.26       2,800,895       151,330       5.40  
    Other assets   330,324               198,632          
    Total assets $ 4,321,472             $ 2,999,527          
    Liabilities and Shareholders’ Equity                      
    Interest-bearing demand deposits(7) $ 1,147,124       21,455       1.87     $ 1,525,204       26,944       1.77  
    Savings deposits(7)   1,153,097       30,193       2.61       198,157       585       0.30  
    Time deposits   732,446       32,586       4.44       338,170       9,981       2.95  
    Total interest-bearing deposits   3,032,667       84,234       2.77       2,061,531       37,510       1.82  
    Securities sold under agreements to repurchase and federal funds purchased   17,543       215       1.22       14,111       114       0.80  
    FHLB advances and other borrowings   120,787       4,945       4.08       123,697       5,350       4.32  
    Subordinated notes and trust preferred debt   50,397       4,285       8.48       32,058       2,017       6.29  
    Total interest-bearing liabilities   3,221,394       93,679       2.91       2,231,397       44,991       2.02  
    Noninterest-bearing demand deposits   625,714               470,349          
    Other liabilities   82,084               54,447          
    Total liabilities   3,929,192               2,756,193          
    Shareholders’ equity   392,280               243,334          
    Total liabilities and shareholders’ equity $ 4,321,472             $ 2,999,527          
    Taxable-equivalent net interest income / net interest spread       156,896       3.36 %         106,339       3.39 %
    Taxable-equivalent net interest margin           3.92 %             3.80 %
    Taxable-equivalent adjustment       (1,642 )             (1,433 )    
    Net interest income     $ 155,254             $ 104,906      
    Ratio of average interest-earning assets to average interest-bearing liabilities           124 %             126 %
                           
    NOTES TO ANALYSIS OF NET INTEREST INCOME:
    (1) Yields and interest income on tax-exempt assets have been computed on a taxable-equivalent basis assuming a 21% tax rate.
    (2) Average balance of investment securities is computed at fair value.
    (3) Average balances include nonaccrual loans.
    (4) Interest income on loans includes prepayment and late fees, where applicable.
    (5) Interest income on loans includes interest recovered of $1.6 million from the payoff of a commercial real estate loan on nonaccrual status for the twelve months ended December 31, 2024.
    (6) Interest income on loans includes accretion on purchase accounting marks of $15.2 million and $0.7 million for the twelve months ended December 31, 2024 and 2023, respectively.
    (7) Changes between average deposit type balances are due to operational updates for deposit sweeps during the three months ended December 31, 2024.
    ORRSTOWN FINANCIAL SERVICES, INC.        
    HISTORICAL TRENDS IN QUARTERLY FINANCIAL DATA (Unaudited)        
                       
    (In thousands) December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023
    Profitability for the quarter:                  
    Net interest income $ 50,573     $ 51,697     $ 26,103     $ 26,881     $ 26,018  
    Provision for credit losses   1,755       13,681       812       298       418  
    Noninterest income   11,247       12,386       7,172       6,630       6,491  
    Noninterest expenses   42,930       60,299       22,639       22,469       22,392  
    Income (loss) before income taxes   17,135       (9,897 )     9,824       10,744       9,699  
    Income tax expense (benefit)   3,451       (1,994 )     2,086       2,213       2,056  
    Net income (loss) $ 13,684     $ (7,903 )   $ 7,738     $ 8,531     $ 7,643  
                       
    Financial ratios:                  
    Return on average assets (1)   1.00 %     (0.57) %     0.97 %     1.11 %     1.00 %
    Return on average assets, adjusted (1)(2)(3)   1.22 %     1.55 %     1.09 %     1.19 %     1.13 %
    Return on average equity (1)   10.54 %     (5.85) %     11.41 %     12.79 %     12.21 %
    Return on average equity, adjusted (1)(2)(3)   12.86 %     15.85 %     12.88 %     13.79 %     13.77 %
    Net interest margin (1)   4.05 %     4.14 %     3.54 %     3.77 %     3.71 %
    Efficiency ratio   69.4 %     94.1 %     68.0 %     67.0 %     68.9 %
    Efficiency ratio, adjusted (2)(3)   62.3 %     67.2 %     64.6 %     65.0 %     65.6 %
                       
    Per share information:                  
    Income (loss) per common share:                  
    Basic $ 0.72     $ (0.41 )   $ 0.74     $ 0.82     $ 0.74  
    Basic, adjusted (2)(3)   0.87       1.12       0.84       0.89       0.84  
    Diluted   0.71       (0.41 )     0.73       0.81       0.73  
    Diluted, adjusted (2)(3)   0.87       1.11       0.83       0.88       0.83  
    Book value   26.65       26.65       25.97       25.38       24.98  
    Book value, adjusted (2) (3)   28.40       28.24       26.12       25.44       25.07  
    Tangible book value (3)   21.19       21.12       24.08       23.47       23.03  
    Tangible book value, adjusted (2) (3)   22.94       22.72       24.23       23.53       23.12  
    Cash dividends paid   0.23       0.23       0.20       0.20       0.20  
                       
    Average basic shares   19,118       19,088       10,393       10,349       10,321  
    Average diluted shares   19,300       19,226       10,553       10,482       10,419  
                                           
    (1) Annualized.
    (2) Ratio has been adjusted for non-recurring expenses for all periods presented.
    (3) Non-GAAP based financial measure. Please refer to Appendix A – Supplemental Reporting of Non-GAAP Measures and GAAP to Non-GAAP Reconciliations for a discussion of our use of non-GAAP based financial measures, including tables reconciling GAAP and non-GAAP financial measures appearing herein.
    ORRSTOWN FINANCIAL SERVICES, INC.                
    HISTORICAL TRENDS IN QUARTERLY FINANCIAL DATA (Unaudited)        
    (continued)                  
    (In thousands) December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023
    Noninterest income:                  
    Service charges $ 2,050     $ 2,360     $ 1,283     $ 1,200     $ 1,198  
    Interchange income   1,608       1,779       961       911       952  
    Swap fee income   597       505       375       199       588  
    Wealth management income   4,902       5,037       3,312       3,102       2,945  
    Mortgage banking activities   517       491       369       458       143  
    Other income   1,578       1,943       884       765       704  
    Investment securities (losses) gains   (5 )     271       (12 )     (5 )     (39 )
    Total noninterest income $ 11,247     $ 12,386     $ 7,172     $ 6,630     $ 6,491  
                       
    Noninterest expenses:                  
    Salaries and employee benefits $ 22,444     $ 27,190     $ 13,195     $ 13,752     $ 12,848  
    Occupancy, furniture and equipment   4,893       4,333       2,705       2,639       2,534  
    Data processing   1,540       2,046       1,237       1,265       1,247  
    Advertising and bank promotions   878       537       774       398       501  
    FDIC insurance   955       862       419       441       460  
    Professional services   1,591       1,119       801       631       702  
    Taxes other than income   (312 )     503       49       494       203  
    Intangible asset amortization   2,838       2,464       215       225       236  
    Merger-related expenses   3,887       16,977       1,135       672       1,059  
    Restructuring expenses   39       257       —       —       —  
    Other operating expenses   4,177       4,011       2,109       1,952       2,602  
    Total noninterest expenses $ 42,930     $ 60,299     $ 22,639     $ 22,469     $ 22,392  
    HISTORICAL TRENDS IN QUARTERLY FINANCIAL DATA (Unaudited)            
    (continued)                  
    (In thousands) December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023
    Balance Sheet at quarter end:                  
    Cash and cash equivalents $ 238,308     $ 236,780     $ 132,509     $ 182,722     $ 65,161  
    Restricted investments in bank stocks   20,232       20,247       11,147       11,453       11,992  
    Securities available for sale   829,711       826,828       529,082       514,909       513,519  
    Loans held for sale, at fair value   6,614       3,561       1,562       535       5,816  
    Loans:                  
    Commercial real estate:                  
    Owner occupied   633,567       622,726       371,301       364,280       373,757  
    Non-owner occupied   1,160,238       1,164,501       710,477       707,871       694,638  
    Multi-family   274,135       276,296       151,542       147,773       150,675  
    Non-owner occupied residential   179,512       190,786       89,156       91,858       95,040  
    Agricultural   125,156       129,486       25,551       25,909       26,847  
    Commercial and industrial   451,384       471,983       349,425       339,615       340,238  
    Acquisition and development:                  
    1-4 family residential construction   47,432       56,383       32,439       22,277       24,516  
    Commercial and land development   241,424       262,317       129,883       118,010       115,249  
    Municipal   30,044       27,960       10,594       10,925       9,812  
    Total commercial loans   3,142,892       3,202,438       1,870,368       1,828,518       1,830,772  
    Residential mortgage:                  
    First lien   460,297       451,195       271,153       270,748       266,239  
    Home equity – term   5,988       6,508       4,633       4,966       5,078  
    Home equity – lines of credit   303,561       303,165       192,736       189,966       186,450  
    Installment and other loans   18,476       18,131       8,713       8,875       9,774  
    Total loans   3,931,214       3,981,437       2,347,603       2,303,073       2,298,313  
    Allowance for credit losses   (48,689 )     (49,630 )     (29,864 )     (29,165 )     (28,702 )
    Net loans held for investment   3,882,525       3,931,807       2,317,739       2,273,908       2,269,611  
    Goodwill   68,106       70,655       18,724       18,724       18,724  
    Other intangible assets, net   47,765       46,144       1,974       2,189       2,414  
    Total assets   5,431,023       5,470,589       3,198,782       3,183,331       3,064,240  
    Total deposits   4,615,706       4,650,853       2,702,884       2,695,951       2,558,814  
    FHLB advances and other borrowings and Securities sold under agreements to repurchase   141,227       137,310       129,625       127,099       147,285  
    Subordinated notes and trust preferred debt   68,680       68,510       32,128       32,111       32,093  
    Total shareholders’ equity   516,682       516,206       278,376       271,682       265,056  
    HISTORICAL TRENDS IN QUARTERLY FINANCIAL DATA (Unaudited)            
    (continued)                  
      December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023
    Capital and credit quality measures (1):                  
    Total risk-based capital:                  
    Orrstown Financial Services, Inc.   12.4 %     12.4 %     13.3 %     13.4 %     13.0 %
    Orrstown Bank   12.4 %     12.2 %     13.1 %     13.1 %     12.8 %
    Tier 1 risk-based capital:                  
    Orrstown Financial Services, Inc.   10.2 %     10.0 %     11.1 %     11.2 %     10.8 %
    Orrstown Bank   11.2 %     11.0 %     12.0 %     11.9 %     11.6 %
    Tier 1 common equity risk-based capital:                  
    Orrstown Financial Services, Inc.   10.0 %     9.8 %     11.1 %     11.2 %     10.8 %
    Orrstown Bank   11.2 %     11.0 %     12.0 %     11.9 %     11.6 %
    Tier 1 leverage capital:                  
    Orrstown Financial Services, Inc.   8.3 %     8.0 %     8.9 %     9.0 %     8.9 %
    Orrstown Bank   9.1 %     8.8 %     9.5 %     9.6 %     9.5 %
                       
    Average equity to average assets   9.45 %     9.75 %     8.50 %     8.66 %     8.18 %
    Allowance for credit losses to total loans   1.24 %     1.25 %     1.27 %     1.27 %     1.25 %
    Total nonaccrual loans to total loans   0.61 %     0.68 %     0.36 %     0.56 %     1.11 %
    Nonperforming assets to total assets   0.45 %     0.49 %     0.26 %     0.40 %     0.83 %
    Allowance for credit losses to nonaccrual loans   202 %     184 %     357 %     226 %     112 %
                       
    Other information:                  
    Net charge-offs (recoveries) $ 3,002     $ 269     $ 113     $ (42 )   $ (6 )
    Classified loans   88,628       105,465       48,722       48,997       55,030  
    Nonperforming and other risk assets:                  
    Nonaccrual loans   24,111       26,927       8,363       12,886       25,527  
    Other real estate owned   138       138       —       —       —  
    Total nonperforming assets   24,249       27,065       8,363       12,886       25,527  
    Financial difficulty modifications still accruing   4,897       9,497       —       —       9  
    Loans past due 90 days or more and still accruing   641       337       187       99       66  
    Total nonperforming and other risk assets $ 29,787     $ 36,899     $ 8,550     $ 12,985     $ 25,602  
     
    (1) Capital ratios are estimated for the current period, subject to regulatory filings. The Company elected the three-year phase in option for the day-one impact of ASU 2016-13 for current expected credit losses (“CECL”) to regulatory capital. Beginning in 2023, the Company adjusted retained earnings, allowance for credit losses includable in tier 2 capital and the deferred tax assets from temporary differences in risk weighted assets by the permitted percentage of the day-one impact from adopting the new CECL standard.


    Appendix A – Supplemental Reporting of Non-GAAP Measures and GAAP to Non-GAAP Reconciliations

    Management believes providing certain other “non-GAAP” financial information will assist investors in their understanding of the effect on recent financial results from non-recurring charges.

    As a result of acquisitions, the Company has intangible assets consisting of goodwill, core deposit and other intangible assets, which totaled $115.9 million and $21.1 million at December 31, 2024 and December 31, 2023, respectively. In addition, during the three months ended December 31, 2024, September 30, 2024, June 30, 2024, March 31, 2024 and December 31, 2023, the Company incurred $3.9 million, $17.0 million, $1.1 million, $0.7 million and $1.1 million in merger-related expenses, respectively. During the three months ended December 31, 2024 and September 30, 2024, the Company incurred other non-recurring charges totaling $0.5 million and $20.2 million, respectively.

    Tangible book value per common share and the impact of the non-recurring expenses on net income and associated ratios, as used by the Company in this earnings release, are determined by methods other than in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). While we believe this information is a useful supplement to GAAP based measures presented in this earnings release, readers are cautioned that this non-GAAP disclosure has limitations as an analytical tool, should not be viewed as a substitute for financial measures determined in accordance with GAAP, and should not be considered in isolation or as a substitute for analysis of our results and financial condition as reported under GAAP, nor are such measures necessarily comparable to non-GAAP performance measures that may be presented by other companies. This supplemental presentation should not be construed as an inference that our future results will be unaffected by similar adjustments to be determined in accordance with GAAP.

    The following tables present the computation of each non-GAAP based measure:

    (In thousands)

    Tangible Book Value per Common Share   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023
    Shareholders’ equity (most directly comparable GAAP-based measure)   $ 516,682     $ 516,206     $ 278,376     $ 271,682     $ 265,056  
    Less: Goodwill     68,106       70,655       18,724       18,724       18,724  
    Other intangible assets     47,765       46,144       1,974       2,189       2,414  
    Related tax effect     (10,031 )     (9,690 )     (415 )     (460 )     (507 )
    Tangible common equity (non-GAAP)   $ 410,842     $ 409,097     $ 258,093     $ 251,229     $ 244,425  
                         
    Common shares outstanding     19,390       19,373       10,720       10,705       10,612  
                         
    Book value per share (most directly comparable GAAP-based measure)   $ 26.65     $ 26.65     $ 25.97     $ 25.38     $ 24.98  
    Intangible assets per share     5.46       5.53       1.89       1.91       1.95  
    Tangible book value per share (non-GAAP)   $ 21.19     $ 21.12     $ 24.08     $ 23.47     $ 23.03  
    (In thousands) Three Months Ended   Twelve Months Ended
    Adjusted Ratios for Non-recurring Charges December 31,
    2024    		   September 30, 2024   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023    		   December 31,
    2024    		   December 31,
    2023
    Net income (loss) (A) – most directly comparable GAAP-based measure $ 13,684     $ (7,903 )   $ 7,738     $ 8,531     $ 7,643     $ 22,050     $ 35,663  
    Plus: Merger-related expenses (B)   3,887       16,977       1,135       672       1,059       22,671       1,059  
    Plus: Executive retirement expenses (B)   35       4,758       —       —       —       4,793       —  
    Plus: Provision for credit losses on non-PCD loans (B)   —       15,504       —       —       —       15,504       —  
    Plus: Provision for legal settlement (B)   478       —       —       —       —       478       —  
    Less: Related tax effect (C)   (1,386 )     (7,915 )     (139 )     (1 )     (79 )     (9,442 )     (79 )
    Adjusted net income (D=A+B-C) – Non-GAAP $ 16,698     $ 21,421     $ 8,734     $ 9,202     $ 8,623     $ 56,054     $ 36,643  
                               
    Average assets (E) $ 5,464,165     $ 5,515,143     $ 3,211,124     $ 3,098,772     $ 3,037,824     $ 4,321,472     $ 2,999,527  
    Return on average assets (= A / E) – most directly comparable GAAP-based measure (1)   1.00 %      (0.57) %     0.97 %     1.11 %     1.00 %     0.51 %     1.19 %
    Return on average assets, adjusted (= D / E) – Non-GAAP (1)   1.22 %     1.55 %     1.09 %     1.19 %     1.13 %     1.30 %     1.22 %
                               
    Average equity (F) $ 516,399     $ 537,670     $ 272,788     $ 268,289     $ 248,442     $ 392,280     $ 243,334  
    Return on average equity (= A / F) – most directly comparable GAAP-based measure (1)   10.54 %     (5.85) %     11.41 %     12.79 %     12.21 %     5.62 %     14.66 %
    Return on average equity, adjusted (= D / F) – Non-GAAP (1)   12.86 %     15.85 %     12.88 %     13.79 %     13.77 %     14.29 %     15.06 %
                               
    Weighted average shares – basic (G) – most directly comparable GAAP-based measure   19,118       19,088       10,393       10,349       10,321       14,761       10,340  
    Basic earnings (loss) per share (= A / G) – most directly comparable GAAP-based measure $ 0.72     $ (0.41 )   $ 0.74     $ 0.82     $ 0.74     $ 1.49     $ 3.45  
    Basic earnings per share, adjusted (= D / G) – Non-GAAP $ 0.87     $ 1.12     $ 0.84     $ 0.89     $ 0.84     $ 3.80     $ 3.54  
                               
    Weighted average shares – diluted (H) – most directly comparable GAAP-based measure   19,300       19,226       10,553       10,482       10,419       14,914       10,435  
    Diluted earnings (loss) per share (= A / H) – most directly comparable GAAP-based measure $ 0.71     $ (0.41 )   $ 0.73     $ 0.81     $ 0.73     $ 1.48     $ 3.42  
    Diluted earnings per share, adjusted (= D / H) – Non-GAAP $ 0.87     $ 1.11     $ 0.83     $ 0.88     $ 0.83     $ 3.76     $ 3.51  
                               
    continued
    (1) Annualized                          
      Three Months Ended   Twelve Months Ended
      December 31,
    2024    		   September 30, 2024   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023    		   December 31,
    2024    		   December 31,
    2023
    Noninterest expense (I) – most directly comparable GAAP-based measure $ 42,930     $ 60,299     $ 22,639     $ 22,469     $ 22,392     $ 148,337     $ 83,843  
    Less: Merger-related expenses (B)   (3,887 )     (16,977 )     (1,135 )     (672 )     (1,059 )     (22,671 )     (1,059 )
    Less: Executive retirement expenses (B)   (35 )     (4,758 )     —       —       —       (4,793 )     —  
    Less: Provision for legal settlement (B)   (478 )     —       —       —       —       (478 )     —  
    Adjusted noninterest expense (J = I – B) – Non-GAAP $ 38,531     $ 38,564     $ 21,504     $ 21,797     $ 21,333     $ 120,396     $ 82,784  
                               
    Net interest income (K) $ 50,573     $ 51,697     $ 26,103     $ 26,881     $ 26,018     $ 155,254     $ 104,906  
    Noninterest income (L)   11,247       12,386       7,172       6,630       6,491       37,435       25,652  
    Total operating income (M = K + L) $ 61,820     $ 64,083     $ 33,275     $ 33,511     $ 32,509     $ 192,689     $ 130,558  
                               
    Efficiency ratio (= I / M) – most directly comparable GAAP-based measure   69.4 %     94.1 %     68.0 %     67.0 %     68.9 %     77.0 %     64.2 %
    Efficiency ratio, adjusted (= J / M) – Non-GAAP   62.3 %     60.2 %     64.6 %     65.0 %     65.6 %     62.5 %     63.4 %
                               
    (1) Annualized                          


    Appendix B – Investment Portfolio Concentrations

    The following table summarizes the credit ratings and collateral associated with the Company’s investment security portfolio, excluding equity securities, at December 31, 2024:

    (In thousands)

    Sector Portfolio
    Mix    		   Amortized
    Book    		   Fair Value   Credit Enhancement   AAA   AA   A   BBB   NR   Collateral / Guarantee Type
    Unsecured ABS — %   $ 3,073   $ 2,854   27 %   — %   — %   — %   — %   100 %   Unsecured Consumer Debt
    Student Loan ABS 1       4,060     4,035   27     —     —     —     —     100     Seasoned Student Loans
    Federal Family Education Loan ABS 9       80,121     80,063   11     7     81     —     12     —     Federal Family Education Loan (1)
    PACE Loan ABS —       1,985     1,727   7     100     —     —     —     —     PACE Loans (2)
    Non-Agency CMBS 2       15,920     15,901   27     —     —     —     —     100      
    Non-Agency RMBS 2       16,555     14,528   16     100     —     —     —     —     Reverse Mortgages (3)
    Municipal – General Obligation 12       99,515     90,767       11     82     7     —     —      
    Municipal – Revenue 14       120,903     109,261       —     82     12     —     6      
    SBA ReRemic (5) —       2,283     2,278       —     100     —     —     —     SBA Guarantee (4)
    Small Business Administration 1       5,926     6,263       —     100     —     —     —     SBA Guarantee (4)
    Agency MBS 19       160,027     155,778       —     100     —     —     —     Residential Mortgages (4)
    Agency CMO 38       332,380     326,045       —     100     —     —     —      
    U.S. Treasury securities 2       20,043     18,063       —     100     —     —     —     U.S. Government Guarantee (4)
    Corporate bonds —       1,935     1,954       —     —     52     48     —      
      100 %   $ 864,726   $ 829,517       4 %   89 %   3 %   1 %   3 %    
                                           
    (1) 97% guaranteed by U.S. government
    (2) PACE acronym represents Property Assessed Clean Energy loans
    (3) Non-agency reverse mortgages with current structural credit enhancements
    (4) Guaranteed by U.S. government or U.S. government agencies
    (5) SBA ReRemic acronym represents Re-Securitization of Real Estate Mortgage Investment Conduits
                                           
    Note: Ratings in table are the lowest of the six rating agencies (Standard & Poor’s, Moody’s, Fitch, Morningstar, DBRS and Kroll Bond Rating Agency). Standard & Poor’s rates U.S. government obligations at AA+.


    About the Company

    With $5.4 billion in assets, Orrstown Financial Services, Inc. and its wholly-owned subsidiary, Orrstown Bank, provide a wide range of consumer and business financial services in Berks, Cumberland, Dauphin, Franklin, Lancaster, Perry, and York Counties, Pennsylvania and Anne Arundel, Baltimore, Harford, Howard, and Washington Counties, Maryland, as well as Baltimore City, Maryland. The Company’s lending area also includes adjacent counties in Pennsylvania and Maryland, as well as Loudon County, Virginia and Berkeley, Jefferson and Morgan Counties, West Virginia. Orrstown Bank is an Equal Housing Lender and its deposits are insured up to the legal maximum by the FDIC. Orrstown Financial Services, Inc.’s common stock is traded on Nasdaq (ORRF). For more information about Orrstown Financial Services, Inc. and Orrstown Bank, visit www.orrstown.com.

    Cautionary Note Regarding Forward-Looking Statements

    This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. Forward-looking statements reflect the current views of the Company’s management with respect to, among other things, future events and the Company’s financial performance. These statements are often, but not always, made through the use of words or phrases such as “may,” “should,” “could,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “project,” “forecast,” “goal,” “target,” “would” and “outlook,” or the negative variations of those words or other comparable words of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates, predictions or projections about events or the Company’s industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond the Company’s control. Accordingly, the Company cautions you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements and there can be no assurances that the Company will achieve the desired level of new business development and new loans, growth in the balance sheet and fee-based revenue lines of business, cost savings initiatives and continued reductions in risk assets or mitigation of losses in the future. Factors which could cause the actual results of the Company’s operations to differ materially from expectations include, but are not limited to: general economic conditions (including inflation and concerns about liquidity) on a national basis or in the local markets in which the Company operates; ineffectiveness of the Company’s strategic growth plan due to changes in current or future market conditions; changes in interest rates; the diversion of management’s attention from ongoing business operations and opportunities; the effects of competition and how it may impact our community banking model, including industry consolidation and development of competing financial products and services; changes in consumer behavior due to changing political, business and economic conditions, or legislative or regulatory initiatives; changes in laws and regulations; changes in credit quality; inability to raise capital, if necessary, under favorable conditions; volatility in the securities markets; the demand for our products and services; deteriorating economic conditions; geopolitical tensions; operational risks including, but not limited to, cybersecurity incidents, fraud, natural disasters and future pandemics; expenses associated with litigation and legal proceedings; the possibility that the anticipated benefits of the merger with Codorus (the “Merger”) are not realized when expected or at all; the possibility that the Merger may be more expensive to complete than anticipated; the possibility that revenues following the Merger may be lower than expected; potential adverse reactions or changes to business or employee relationships, including those resulting from the completion of the Merger; the ability to complete the integration of the two companies successfully; the dilution caused by the Company’s issuance of additional shares of its capital stock in connection with the Merger; and other risks and uncertainties, including those detailed in our Annual Report on Form 10-K for the year ended December 31, 2023 under the sections titled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and in subsequent filings made with the Securities and Exchange Commission.

    The foregoing list of factors is not exhaustive. If one or more events related to these or other risks or uncertainties materializes, or if the Company’s underlying assumptions prove to be incorrect, actual results may differ materially from what the Company anticipates. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and the Company disclaims any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. New risks and uncertainties arise from time to time, and it is not possible for the Company to predict those events or how they may affect it. In addition, the Company cannot assess the impact of each factor on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. All forward-looking statements, expressed or implied, included in this press release are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that the Company or persons acting on the Company’s behalf may issue.

    The review period for subsequent events extends up to and includes the filing date of a public company’s financial statements, when filed with the Securities and Exchange Commission. Accordingly, the consolidated financial information presented in this announcement is subject to change. Annualized, pro forma, projected and estimated numbers in this document are used for illustrative purposes only and are not forecasts and may not reflect actual results.

    The MIL Network –

  • MIL-OSI United Kingdom: New Honorary King’s Counsel welcomed by Lord Chancellor

    Source: United Kingdom – Executive Government & Departments

    His Majesty The King has approved the award of 9 new Honorary King’s Counsel (KC Honoris Causa) in England and Wales.

    His Majesty The King has approved the award of nine new Honorary King’s Counsel (KC Honoris Causa). Their biographies are listed below. Honorary KC is awarded to those who have made a major contribution to the law of England and Wales, outside practice in the courts. 

    The Lord Chancellor will preside over the award ceremony at Westminster Hall in March 2025, where she will formally award the Honorary KC to the successful nominees. 

    Honorary King’s Counsel biographies 

    Professor Martin Dixon  

    Professor Dixon is a legal scholar specialising in real property law. He is the Professor of the Law of Real Property at the University of Cambridge, where he is also Director of the Cambridge Centre for Property Law (CCPL) and a Fellow of Queens’ College. 

    He was nominated for his work on property law through his scholarship, co-authorship of leading practitioner texts, and participation in Law Commission projects. Additionally, for his co-founding of the Modern Studies in Property Law Conference and for his Editorship of The Conveyancer. 

    Rebecca Hilsenrath 

    Rebecca Hilsenrath is a lawyer and public servant with a career spanning corporate law, human rights, and strategic leadership. Currently the interim Parliamentary and Health Service Ombudsman (PHSO), she has served as Chief Executive of the PHSO, Legal Adviser to the Attorney General, and Chief Executive of LawWorks. Previously, she was the Chief Executive Officer and Chief Legal Officer of the Equality and Human Rights Commission (EHRC), where she championed equality and tackled human rights issues.   

    She was nominated for her efforts in promoting diversity in panel counsel appointments for the government and at the EHRC, increasing pro bono contributions in the legal sector, and leading international legal engagement in equality and human rights. 

    Rachel Horman-Brown 

    Rachel Horman-Brown is a solicitor focused on cases involving domestic abuse, stalking, coercive control, and forced marriage. As Director, she leads the Family Department at Watson Ramsbottom Solicitors. She is also the Chair of Paladin, the National Stalking Advocacy Service.   

    She was nominated for her campaigning for policy and legislative changes around stalking, domestic abuse, and violence against women and girls. In addition, for her work with Paladin, where she shaped legislation, including for the creation of coercive control as a specific criminal offence. She has also provided evidence to parliamentary committees and advisory groups, thereby influencing police practices and approaches to trauma. 

    Dr Laura Janes  

    Dr Laura Janes is a solicitor specialising in complex cases involving people detained in the criminal justice and mental health systems. As Legal Director at the Howard League for Penal Reform from 2016 to 2022, she led a legal service for young people in custody and spearheaded challenges against practices such as solitary confinement. She is a consultant solicitor at GT Stewart Solicitors and Scott-Moncrieff and Associates. Laura Janes is an advocate for access to justice, having founded Young Legal Aid Lawyers and held leadership roles in several legal organisations. She holds a professional doctorate in youth justice and teaches law at London South Bank University.  

    She was nominated for her contributions to the legal profession promoting access to justice, her work to drive policy changes, representing vulnerable individuals in prison, advocating for the rights of children and young people in custody and reforms to the IPP sentence.   

    Susanna McGibbon  

    Susanna McGibbon is an employed barrister and the current Treasury Solicitor, HM Procurator General and Permanent Secretary of the Government Legal Department (GLD). As the most senior Civil Service lawyer she is head of the Government Legal Profession. Her previous roles include serving as Director of GLD Litigation Group, Legal Director at the Department for Communities and Local Government and Legal Director at the Department for Business, Innovation and Skills. She is a Bencher of Lincoln’s Inn and this year holds the office of Keeper of the Walks. 

    Ms McGibbon was nominated for her legal advice on complex and sensitive issues within government especially in public and administrative law and national security. Also, for her leadership in a range of high-profile cases and inquiries and for her advocacy for diversity and inclusion across the legal profession.   

    Professor Renato Nazzini  

    Professor Nazzini is a legal scholar focusing on competition law, commercial arbitration, and construction law. He is the Director of the Centre of Construction Law and Dispute Resolution at King’s College London and a partner at LMS Legal LLP.   

    He was nominated for his contributions to competition law by developing policies on collective actions and abuse of dominance, influencing the Consumer Rights Act 2015 and the 2008 European Commission Guidance on Article 102. He has also contributed to construction law, including by leading the Centre of Construction Law and Dispute Resolution at King’s College London, producing reports on construction adjudication and promoting diversity within the field.    

    Susan Willman  

    Susan Willman (known as Sue Willman) is a solicitor specialising in public interest litigation, focusing on human rights, environmental justice, and migrants’ rights. She is a senior consultant at legal aid firm, Deighton Pierce Glynn, and has led cases addressing systemic social and environmental injustices. She is also employed by the Dickson Poon School of Law, King’s College, London as a Senior Lecturer, and Assistant Director of the King’s Legal Clinic. She has held key leadership roles, including Chair of the Law Society Human Rights Committee.    

    She was nominated for founding the Asylum Support Appeals Project (ASAP), providing free representation to destitute asylum-seekers. As well as for publishing articles, authoring a series of textbooks on asylum support, and advising a parliamentary committee on an inquiry to drive legislative reforms. 

    Douglas Wilson OBE 

    Douglas Wilson is a government lawyer currently serving as Director General and Head of the Attorney General’s Office. He has previously held positions such as Director of Legal Affairs and International Relations at GCHQ, Legal Director at the Foreign and Commonwealth Office, and has served in legal and diplomatic roles at UK posts overseas. 

    He was nominated for advising on issues such as Brexit, military operations, and intelligence cooperation, which shaped the law on the use of military force, cyberspace, and investigatory powers. Furthermore, he has promoted effective and inclusive legal practice within government.  

    Professor Adrian Zuckerman 

    Professor Zuckerman is a scholar in civil procedure and evidence law. He is Emeritus Professor of Civil Procedure at the University of Oxford and Emeritus Fellow of University College, Oxford. He is Editor-in-Chief of the Civil Justice Quarterly and a Consultant Editor of Halsbury’s Laws of England. 

    Professor Zuckerman is a prominent commentator on the administration of civil justice. He has influenced legislative policy and judicial practice, notably through contributions to the Woolf Report on Access to Justice, and the Jackson Review of Civil Litigation Costs. He has campaigned for improving access to court and for making justice available to all at proportionate cost. His work on criminal evidence refocused evidence scholarship around fundamental normative principles. 

    He was nominated for his contributions to the Civil Procedure Rules in England and Wales. His academic work, particularly “Zuckerman on Civil Procedure,” is cited in courts across the common law world. 

    Further information 

    Honorary KC is awarded by HM The King, on the advice of the Lord Chancellor. The Lord Chancellor is advised by a selection panel of senior representatives from across the legal sector, civil service, judiciary, and academia. More information about the purpose of the award can be found on GOV.UK. 

    For further information, please contact the Ministry of Justice press office. Follow us @MoJGovUK. 

    Updates to this page

    Published 31 January 2025

    MIL OSI United Kingdom –

  • MIL-OSI United Kingdom: North Cornwall coast path improvements completed

    Source: United Kingdom – Government Statements

    The path around the South West’s glorious coastline is further enhanced thanks to improvements to the Marsland Mouth to Newquay section in Cornwall.

    Walking the coast path from Pentire Point towards Polzeath

    These works form part of a national programme to create a coastal path around the whole of England. Once completed this will be the longest managed coastal walking route in the world and the UK’s longest National Trail.

    Stretching from Marsland Mouth on the North Cornwall coast down to Newquay, some 75 miles in total, the path follows the route of the existing South West Coast Path (SWCP) National Trail, beginning at the border with Devon and stretching to the railway station in Newquay.

    For anyone walking the path, there is plenty to see, with towns and villages such as Bude, Boscastle, Tintagel, Port Isaac, Polzeath, Padstow and Mawgan Porth.  Plus, the path passes by the historic highlights of Crackington Haven, Tintagel Castle, the Rumps at Pentire with its Bronze age burial mounds, the Camel Estuary (including the ferry), Trevose Head and its lighthouse and Bedruthan Steps.  In addition, there are glorious sandy beaches to stop off throughout the route.

    Making the path line up with the sea

    In establishing the new trail, Natural England has sought to improve the alignment of the SWCP where possible or move it closer to the sea. For example, at Penhalt Cliff it has been taken off road on to farmland, improving safety for walkers and drivers. For the first time wider coastal access rights on foot have been established between the trail and the sea, including cliff tops and beaches.  

    It also brings legal provision for the trail to ‘roll back’ in response to coastal erosion, thereby securing people’s rights into the future and protecting the investment being made now. You will still encounter steep climbs and descents as well as gently undulating walking along the cliff tops.

    Boscastle harbour viewed from the coast path

    Better alignment, better surfacing, better drainage

    Andrea Ayres, Deputy Area Director for Natural England said:

    This improved stretch of path takes in some of the best views in the South West and much-loved places that have been attracting visitors for many years.

    With the improvements to the path and the additional access rights, we hope it will continue to give people the chance to get out and enjoy nature, as well as continue to bring visitors to the county, since tourism is so vital to the local economy.

    While much of Cornwall’s 300-mile section of the South West Coast Path is owned by private landowners and organisations, the path is managed by Cornwall Council. The council and Cormac have worked to deliver the improvements on this stretch.

    Martyn Alvey, Cornwall Council cabinet portfolio holder for environment, said:

    The South West Coast Path is a wonderful asset popular with local residents and visitors alike, but by its very nature, is susceptible to the elements and coastal erosion.

    This funding has meant we have been able to make significant improvements to the path in Cornwall, bringing forward many projects which may otherwise have been many years away from happening.

    We’ve been able to move inland sections closer to the coast, improve surfacing and drainage, repair paths and realign hazardous sections. It is fantastic to see completion of the Marsland Mouth to Newquay section and I’m sure it will be enjoyed by all for many years to come.

    Julian Gray, Director, South West Coast Path Association (SWCPA) said:

    The King Charles III England Coast Path creates new open access rights around the coast to help connect people to nature. It also gives us new powers to manage the National Trail in the face of coastal erosion, helping us continue to improve the South West Coast Path as one of the world’s great trails.

    What is the King Charles III England Coast Path?

    The King Charles III England Coast Path (KCIIIECP) is a National Trail around the entire coast of England. Existing coastal national trails and other regional walks make up parts of the KCIIIECP and this newly improved stretch of the South West Coast Path forms part of the KCIIIECP.

    You can plan your walk on the KCIIIECP, which follows the enhanced route of the SWCP between Marsland Mouth to Newquay, by visiting the KCIIIECP or the South West Coast Path pages of the National Trails website.

    Background

    The Marine and Coastal Access Act 2009 places a duty on the Secretary of State and Natural England to secure a long-distance walking trail around the open coast of England, together with public access rights to a wider area of land along the way for people to enjoy. 

    Natural England is working at pace to ensure completion of the KCIIIECP. By the end of 2024 it had opened 1,400 miles. Subject to resources we expect to complete the KCIIIECP by spring 2026.

    To plan their visit walkers can access route maps of all opened sections of the King Charles III England Coast Path and any local diversions on the National Trails website. And can check for any restrictions to access on Natural England’s Open Access maps.

    You can promote your business, service, event or place of interest for free on the National Trails website, inspire people to spend more time in your area and benefit from the economic impact of visitors.

    National Trails, marked by the acorn symbol, pass through spectacular scenery, support local tourism and offer a range of routes from short circular walks to long distance challenges.

    King Charles III England Coast Path: 

    We have a map showing progress to complete the King Charles III England Coast Path.

    The King Charles III England Coast Path will be our longest, National Trail, passing through some of our finest countryside, maritime and industrial heritage, coastal settlements and rural locations.

    It will also be the world’s longest managed coastal trail (i.e. the trail is maintained to National Trail standards). It will secure legal rights of public access for the first time to typical coastal land including foreshore, beaches, dunes and cliffs that lies between the trail and the sea.

    Improvements to existing access to the coastline include: 

    • a clear and continuous way-marked walking route along this part of the coast, bringing some sections of the existing coastal footpath closer to the sea and linking some places together for the first time

    • targeted adjustments to make the trail more accessible for people with reduced mobility, where reasonable

    • uniquely amongst our National Trails the KCIIIECP may be moved in response to natural coastal changes, through ‘roll back’ if the coastline erodes or slips, solving the long-standing difficulties of maintaining a continuous route along the coast – and making a true coastal path practicable

    • the legal provision for roll back is proposed to sections of the trail where a need has been foreseen but can be retrospectively applied to other parts of the route if deemed necessary

    • the route of the trail can also be altered through planning proposals and where coastal and flood defence works or habitat creation would impact on the proposed or open route of the KCIIIECP

    • we have a webpage showing progress near you to create the King Charles III England Coast path

    • we work closely with a broad range of national and regional stakeholders around the country including wildlife trusts, National Trust, RSPB, NFU, CLA, RA, OSS, Environment Agency and local authorities

    The Countryside Code is the official guide on how to enjoy nature and treat both it, and the people who live and work there, with respect.  

    For landowners

    Landowners who have KCIIIECP coastal access rights on their land enjoy the lowest liabilities in England. Here is our guidance on managing your land in the coastal margin.

    About Natural England  

    Established in 2006, Natural England is the government’s independent adviser on the natural environment. Our work is focused on enhancing England’s wildlife and landscapes and maximising the benefits they bring to the public. 

    We establish and care for England’s main wildlife and geological sites, ensuring that over 4,000 National Nature Reserves (NNRs) and Sites of Special Scientific Interest are looked after and improved,

    We work to ensure that England’s landscapes are effectively protected, designating England’s National Parks and National Landscapes , and advising widely on their conservation.

    We run Environmental Stewardship and other green farming schemes that deliver over £400 million a year to farmers and landowners, enabling them to enhance the natural environment across two thirds of England’s farmland.

    We fund, manage, and provide scientific expertise for hundreds of conservation projects each year, improving the prospects for thousands of England’s species and habitats.

    We promote access to the wider countryside, helping establish National Trails and coastal trails and ensuring that the public can enjoy and benefit from them.

    For more information, visit our page on how the King Charles III England Coast Path is improving public access to England’s coast. 

    About the South West Coast Path Association

    The South West Coast Path Association is a charity (Registered Charity Number 1163422) that works to ensure the South West Coast Path is one of the best walks in the world and protects it for all to enjoy. Supporting the charity helps the South West Coast Path Association to improve the South West Coast Path and keeps the way open to beautiful coastal places.

    For more information visit the South West Coast Path Association website.

    Updates to this page

    Published 31 January 2025

    MIL OSI United Kingdom –

  • MIL-OSI USA: Padilla Questions FBI Director Nominee Kash Patel on Lack of Independence, Experience During Nomination Hearing

    US Senate News:

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

    Padilla Questions FBI Director Nominee Kash Patel on Lack of Independence, Experience During Nomination Hearing

    WATCH: Padilla slams Patel for dodging questions on background checks and civilian machine gun ownershipWASHINGTON, D.C. — Today, U.S. Senator Alex Padilla (D-Calif.) questioned Kash Patel, nominee for Director of the Federal Bureau of Investigation (FBI), during a Senate Judiciary Committee hearing. Padilla raised serious concerns about Patel’s fitness to lead the FBI independently, citing his lack of law enforcement experience, history of spreading falsehoods, and threats to weaponize the Bureau against political opponents.
    Patel has published a political enemies list, threatened to prosecute journalists, and has even said he plans to “shut down the FBI Hoover Building on Day 1 and reopen it the next day as a museum of the “deep state.” Padilla directly challenged Patel on his past public statements that FBI agents and officials are “corrupt gangsters.”
    As FBI Director, Patel would oversee the National Instant Criminal Background Check System and regulate machine gun distribution. Yet Patel repeatedly dodged questions on the constitutionality of universal background checks for firearm purchases and on whether civilian ownership of machine guns should be legal. His nomination has been praised by Gun Owners of America, a group that opposes background checks and claims that machine guns are protected under the Second Amendment — positions far outside the mainstream of law enforcement and public safety policy.
    Padilla also confronted Patel about his role in financially supporting insurrectionists convicted for their roles in the January 6 attack on the U.S. Capitol. He has raised money for the families of convicted January 6th rioters — yet he has not made similar efforts to support the police officers who were beaten, tased, and attacked defending the Capitol that day. Patel’s selective advocacy raises serious concerns about where his loyalties lie and whether he would prioritize law enforcement or political extremists as FBI Director.
    Padilla called out Patel for his reckless actions during a high-stakes national security operation. While serving as Senior Director for Counterterrorism at the National Security Council, Patel provided false information to senior leadership during a SEAL Team hostage rescue mission in Nigeria. According to former Secretary of Defense Mark Esper, Patel falsely claimed that the United States had secured permission to fly over foreign airspace, a misrepresentation that delayed the mission and put American lives at risk. When confronted by Padilla, Patel failed to own up to his serious lapse in judgement in this situation.
    Key Excerpts:
    PADILLA: Mr. Patel, do you believe that background checks for firearm purchases are constitutional?
    PATEL: I don’t know the in-depths of it, but I think that’s what the Supreme Court has said, Senator.
    PADILLA: So the word would be Y-E-S, yes. Can you say yes, are background checks constitutional?
    PATEL: I can say whatever the Constitution and the Supreme Court ruled is the rule of the land.
    PADILLA: And what is the rule, the law of the land at the moment?
    PATEL: I’m not an expert on state-by-state background checks.
    PADILLA: … Let me ask you another question. Do you believe that civilian ownership of machine guns are protected by the Second Amendment?
    PATEL: Universal background checks are different. That’s not–
    PADILLA: I asked you a separate question. Do you believe civilian ownership of machine guns is protected by the Second Amendment?
    PATEL: Whatever the courts rule in regards to the Second Amendment is what is protected by the Second Amendment.
    PADILLA: Yet another telling response, colleagues, on another important issue.
    PADILLA: … Colleagues, we’ve been hearing a lot of partial responses and lack of recollections throughout the day, and I can’t help but identify the pattern of Mr. Patel calling FBI leadership corrupt, labeling agents as gangsters, accusing them of being part of a criminal “Deep State” conspiracy. We’ve heard of his experience with the J6 prison choir, a group of individuals convicted for their roles in the January 6 insurrection. We’ve heard his false claims that the U.S. has secured airspace permissions during a high stakes SEAL team hostage rescue mission in Nigeria. I can go on and on. These positions are inconsistent with the role of FBI director, a position that demands independence, professionalism, and unwavering commitment to the rule of law. Mr. Patel, your loyalty to President Trump and the MAGA movement may score you points in some quarters, but they are certainly not the qualities necessary to serve as director of the FBI.
    Video of Padilla’s first round of questioning is available here. His second round of questioning is available here.
    Yesterday, Senator Padilla joined all Democrats on the Senate Judiciary Committee in requesting urgent access to critical materials directly pertaining to Kash Patel’s nomination.

    MIL OSI USA News –

  • MIL-OSI Australia: Interview – Doorstop, Melbourne

    Source: Australian Ministers for Education

    MARY DOYLE, MEMBER FOR ASTON: Well hello everyone, and welcome here to Boronia Heights Primary School and where Matt is the, I was about to say Premier. Where Matt is the boss of the school, that’s right. So thank you, and what a warm welcome Matt’s given us here this morning. And I’d like to also welcome Premier Jacinta Allan, Prime Minister, Anthony Albanese, Federal Education Minister, Jason Clare, and also the State Education Minister, Ben Carroll. Thank you guys for coming here on this very auspicious occasion too, the signing of the agreement that just happened. Now I’d like to introduce our Prime Minister of Australia, Anthony Albanese. Thank you.

    ANTHONY ALBANESE, PRIME MINISTER: Well, thanks very much, Mary, and it’s fantastic to be back here in the electorate of Aston that you so ably represent with such passion and commitment. And there’s nowhere that it’s more important to be in Australia than in a school, particularly when we’re talking about education.

    Before speaking about why we’re here today, I do want to address the joint counter terrorism major investigation in Dural in Sydney. The AFP Commissioner and ASIO Director-General are continuing to work with New South Wales Police. It is critical that the police are able to continue to conduct this investigation. It remains an active one. We know that some people are in custody over issues related to this investigation. There’s zero tolerance in Australia for hatred and for antisemitism. And I want any perpetrators to be hunted down and locked up – it’s as simple as that. They have no place in this sort of engagement. It’s designed to create fear and terror in the community, and it will not succeed. Because our community is stronger than the cowards who engage in this sort of activity.

    Can I say about why we’re here today – for Labor, nothing is more important than education. It is in our DNA. And what we are doing today here in Victoria is so important. Working in cooperation with Jacinta Allan and her Government, including Minister Ben Carroll. And I want to give a big thank you to Jacinta and Ben for the leadership that they have shown in bringing this arrangement to a conclusion. Of course, it’s not about politicians and it’s not about government. It’s actually about the kids who we sat down with today. Them being able to have access to the best opportunities in life that come from a great start in life. And a great start in life means best quality public education and it means making sure that no child falls behind.

    What this agreement does is not just inject $2.5 billion of additional funding into Victorian schools, but in addition to that, it’s an agreement, quite frankly, Jacinta and her Government are doing it already, which is how do we address some of the concerns that parents have had over a period of time about things like learning and phonics and the basics of literacy and numeracy? How do we lift people up? What this funding will do is enable for testing to not have to wait for NAPLAN, not have to wait until a child is 8, but make sure that in the early years, if someone needs extra assistance, they can get it. They can get that smaller group tutoring or indeed one on one learning as well. This is so important, that every child has the opportunity to be the best that they can. To lift them up, which is what good quality schools and good quality learning will do. And a shout out as well to our teachers, many of whom are here. They do fantastic work. No one goes into teaching because of the salary that it provides. They go because of the satisfaction that they get from watching a young mind expand and grow and watching people learn. The young people we met in there this morning, were telling myself and the Premier, that the best thing about school is learning. How good is that? To hear that from a six year old really brightens your day because it is so important as we move forward. We have a great partnership with the Allan Government here in Victoria. Fair funding for schools has been talked about for a long period of time. 14 years ago, David Gonski brought down his report. What we’re doing here is actually delivering, doing in the best tradition of Labor Governments, in the best tradition as well of Australia helping out our youngest Australians.

    JACINTA ALLAN, PREMIER OF VICTORIA: Thanks, Prime Minister. Thank you. Well, I’d like to echo the Prime Minister and Mary’s thanks for Boronia Heights Primary School for their really warm welcome to us here this afternoon and thanks to Mat for your leadership of this great school and thanks to the school leaders as well to Zoe and Samuel, Mackenzie and Ryan who have led us around this school so beautifully. And along with Ben and Mary and Jason, I’d also like to acknowledge Jackson Taylor, the local State Member for this fabulous local community.

    And as you can see, this week in Victoria, it’s back to school week. It’s back to school for tens of thousands of students and their families as we gear up for another school year. And I know families just want the very best start in life for their kids. And that best start comes from getting a good, strong education. And that good, strong education can be found in any one of our great government schools here in Victoria. And that’s why, that’s why this agreement that we have signed today – been negotiating for a little while – but signed today, this agreement is about demonstrating that federal Labor governments, state Labor governments are going to continue to back, back the work that principals like Mat do in our great government schools, back teachers, back staff, most importantly back the students as well so that they can get and continue to receive that top quality education. And it was back to school week for my own family as well. And as I dropped my kids off to school this morning in Bendigo, I could see the excitement, I could see the energy and I can see firsthand what a difference Labor governments make when they invest in our government schools. And that’s why this announcement today and this agreement today is just so important. $2.5 billion over the next 10 years of additional funding.

    And I want to thank the Prime Minister, thank Jason and thank Ben for reaching this agreement. Because this is going to go directly to supporting students, supporting teachers, but also those families I talked about earlier who just want the best for their kids, regardless of their background, regardless of what part of the state they’re from, they know they can get that opportunity at our government schools. Also too, I think it’s important to note that this investment comes on top of the existing investment that Victorian Labor Governments have been making in our government schools here in Victoria. $17 billion in new school buildings right across the state. And if I can make the point, since 2018, 50 per cent of all new schools in Australia have been built right here in Victoria. We’ve worked hard to support our teachers and staff with a whole range of initiatives. We’re also supporting the teachers of the future with free uni degrees, supporting that pipeline of teachers for the year ahead. The work that Ben has done on phonics has been so important. We also, though, focus on the whole student as well and the wellbeing and cost of living pressures that we know families are experiencing. And that’s why the rollout of the School Saving Bonus. Ben’s just told me that today it’s just ticked over $100 million has been redeemed through the school saving bonus. That’s $100 million that supported families, $100 million that stayed in families’ pockets because we’ve supported them with some of those essential back to school costs. That’s what Labor Government investment looks like. Teachers, staff, school, buildings and supporting families with those cost of living pressures. And that’s why this agreement is just so important. Because it means for the decade ahead we can continue to plan, continue to support the great work of our schools here in Victoria and continue to support families as they want the best for their kids. So, does Federal and State Labor governments and we’re going to continue to support them every step of the way.

    JASON CLARE, MINISTER FOR EDUCATION: Well, this is a big deal and this is a big day for public schools in Victoria. You want to know what this is about? It’s about the young people sitting behind these desks just out of shot here at the moment. And it’s about those year one students that we saw in the classroom just a moment ago and the ones that will follow them and kids who aren’t even born yet. This is about the future. This is about making sure that every child gets a great start in life, what every parent wants for their child, a great education. And what every Australian child deserves. That’s what this is about. And I tell you what, this is real leadership in action. Prime Minister, this wouldn’t have happened without your leadership and I want to thank you for it. Premier, I want to thank you for your leadership as well. As you said, this is a classic example of two Labor governments working together in the interests of Australian children and the future of our country. You get it. You know how to get things done and you get how important what’s happening in that classroom really is.

    The power of education to change lives, the power of a great education system to change nations. And that’s what this fundamentally is about. And I want to thank my dear friend Ben Carroll, a real reforming Education Minister who’s doing the heavy lifting here in Victoria already. And these reforms will help to fund and resource more of what Ben is already driving here in Victoria. You know, this is $2.5 billion. But more important than that, this is tied to real reform. This is about making sure that kids who fall behind at school when they’re little catch up and keep up and that more kids finish high school. We’ve seen over the last 10 years across the country a decline in the number of kids finishing high school in public schools. We’ve got to turn that around. It’s more important to finish high school today than when we were kids. And if we’re going to turn that around, it means early intervention, it means phonics checks and numeracy checks when kids are little in year one. The sort of things that we were seeing in that classroom a minute ago. And it’s about early intervention, providing more individual support for those children, perhaps out of a classroom of 30 into a classroom of three to help them to catch up and then they keep up, then more kids will finish high school and go on to TAFE if they want, or uni if they want, get the job of their dreams. So, fundamentally, that’s what it’s all about. It’s about making sure that every child in Australia gets a great start in life. What every mum and dad wants and what every Australian child deserves.

    BEN CARROLL, DEPUTY PREMIER OF VICTORIA AND MINISTER FOR EDUCATION: Thank you to all my colleagues that are here today. I also just want to give a shout out to Justin Mullaly from the Australian Education Union because the Australian Education Union have played a pivotal role in getting us where we are today. And $2.5 billion in Commonwealth additional funding for the State of Victoria, the Education State. We know public education is the most important investment in our future. We also know that 73 per cent of disadvantaged kids are in the public education system and this funding will go straight to them to support them going on to live their dreams and their life of purpose. This is a big day in the Education State. I think Anthony Albanese, today, has got the mantle of the Education Prime Minister. Also Premier Allan, who has led from the front, been with me every day working very hard to get this deal done. And I thank Premier Allan for not only her leadership in the schools agreement, but the work she’s done championing children that focus on early intervention through pre-prep, the Free TAFE, the free university degrees for teachers. This is a game changer for our education system. To Jason Clare, we’ve worked incredibly hard over the journey on this. It’s been a 12 month journey. But I’ve got to say, Jason, we’ve always been on the unity ticket when it comes to what’s best for our kids. World’s best practice in the classroom. And as the Prime Minister and Jason alluded to, the funding is one big important component and it will go to those public school kids. But there’s the other elements to it. There’s bringing in world’s best practice inside the classroom. The phonics literacy checks, the mathematics checks, the support for wellbeing. We are so proud as a Labor Government that every school is getting the mental health support and the nursing program being rolled out. That is so really, really important. I thank Premier Allan, Prime Minister, Jason Clare. For the very first time, Gonski, now, that had that vision of a needs based, sector blind education system is coming true today. No longer will a young child in any part of the State of Victoria start schooling in grade prep and go right through to year 12 without full and fair funding. We have ended that and that is a credit to the Federal Labor Government and the State Labor Government and it shows you great federalism working very well in the national interest and for our future, which is our children. Thank you.

    PRIME MINISTER: Thanks, Ben. We’re happy to take questions.

    JOURNALIST: Can I just ask you about the incident in New South Wales. When were you first briefed on the caravan incident?

    PRIME MINISTER: I get briefed regularly by the national security agencies. We don’t talk about operational matters, obviously, for obvious reasons.

    JOURNALIST: Chris Minns has said when he was briefed, can you say when you were?

    PRIME MINISTER: Well, what I do, is I don’t comment on operational matters. There are two issues that are my priority. The first is making sure that people are kept safe. The second, which is related to that, is making sure that any investigations aren’t undermined and that the police and national security agencies are able to do their work. I get ongoing briefings. Every day I get a national security briefing. And indeed, just this morning, we had a full meeting of the National Security Committee.

    JOURNALIST: Prime Minister, just asking you about the Toorak dinner that was on the paper today. Was that a fundraiser for Labor?

    PRIME MINISTER: Well, I have dinner with people. Although it was reported as a lunch, my recollection is it was a dinner. It was nowhere near as long as it’s been reported either, I’ve got to say. But I engage with people. And I’m having a dinner tonight too, and I’ll have lunch at some stage today. That’s what you do. And I had breakfast this morning as well.

    JOURNALIST: So, Prime Minister, back on the caravan. Just following on from what Simon was saying, so, with the timeline of this Premier Minns was saying he was briefed on the 20th, you had a National Cabinet meeting on the 21st to discuss matters to do with antisemitism. So, was this something that was raised at the National Cabinet meeting? And if it wasn’t, isn’t it something that should have been raised, given that all the First Ministers were dealing with their own problems?

    PRIME MINISTER: Well, I’ve been asked this before. And I repeat, I don’t intend to go through operational matters, nor do we go through the detail of what’s discussed at Cabinet meetings or National Cabinet meetings or National Security Committee meetings.

    JOURNALIST: The Opposition Leader says it’s entirely predictable that the nation has seen this escalation in antisemitic incidents. What’s your response to that?

    PRIME MINISTER: This is a time for unity and for the country to come together against these atrocities and these appalling acts. Not a time to look for political partisanship or to make political points. I don’t intend to do so. I intend to do my job, which is to work with the police and national security agencies. I must say they do an extraordinary job. We want people hunted down and put in the clink. That is what we want. And there have been a range of arrests made. Some of those have been made public, were made public on the 21st. I take the advice of the police and national security agencies for when those matters become public so that we ensure that ongoing investigations are not undermined. There is a common sense approach to this and I note that the New South Wales Police Commissioner has made comments on that this morning as well.

    JOURNALIST: Prime Minister, do you have any update on the status of Oscar Jenkins?

    PRIME MINISTER: We continue to request the Russian authorities to provide more information. They have provided information at this point, but we don’t take anything we hear off the Putin regime at face value. So, we want to – we have made it very clear that we think Mr. Jenkins should be released. We don’t think that he should have to suffer from ongoing incarceration and will continue to make representations, but we’ll also continue to work as we will with Ukraine as well, on ascertaining further information.

    JOURNALIST: Are there any certain under which you’d consider a prisoner swap for Oscar Jenkins?

    PRIME MINISTER: No, well, Australia doesn’t have prisoners in those circumstances –

    JOURNALIST: There aren’t a couple of suspected Russian spies in Brisbane?

    PRIME MINISTER: What we want is for Mr Jenkins to be able to return home.

    JOURNALIST: Do you have any message for the Jenkins family?

    PRIME MINISTER: My heart goes out to you. This is a really difficult time for you. And the fact that some information has been made available, will be a difficult time. And we stand with you and we continue to offer every assistance that we can to these families.

    JOURNALIST: Prime Minister, do you intend to fund both Melbourne Victoria’s Suburban Rail Loop and the Airport Rail Link?

    PRIME MINISTER: Well, there’s no link between the two things. We have funding available here for Victorian infrastructure. Suburban Rail Loop is an important project for a growing city. And I’ve been in consultation with the Premier. Minister King is looking after infrastructure. But one of the things about our cities and people will see this when Melbourne Metro opened. When I was the Infrastructure Minister some time ago, there was $3 billion from the Commonwealth for Melbourne metro. It was cut by Tony Abbott. For Sydney, Melbourne and Brisbane, both – all suffered, all three Eastern capitals suffered from a clogging in the centre. Now, the keys to that have been in Sydney, the metro, in Brisbane, the Cross River Rail project and in Melbourne, Melbourne metro. But the next stage is how do you get around this growing city that will be Australia’s largest without having to go into the city and out again? That’s what Suburban Rail Loop is about.

    JOURNALIST: So the $2.2 billion will be given to Victoria before the Federal election? I mean, it was committed at the last election. Will it be handed over to Victoria before?

    PRIME MINISTER: It’s in our Budget and we are working through those issues for early works. Because one of the things about Suburban Rail Loop that I know, as well, is it’s not just about a rail line. It’s about housing and it’s about infrastructure more broadly as well, and about making this great city of Melbourne more liveable, more sustainable and more productive.

    JOURNALIST: Could an airport rail be built sooner?

    PRIME MINISTER: Well, airport rail – I’m not the infrastructure Minister for Victoria.

    JOURNALIST: But you’re in charge of the money. Is it a priority or is SRL, for you?

    PRIME MINISTER: No, it’s not a matter of either or. That’s like saying, is Boronia Heights Public School a priority or is the school down the road a priority? We regard – they’re two very different projects. All of Victorian infrastructure is a priority. I’ll give you the big tip on the difference between us and the former Government. The former Government reduced Victorian infrastructure funding to about eight per cent of the national funding. Under my Government, that won’t happen. Under my Government, Victoria will always get its fair share.

    JOURNALIST: Just on the railway link. Is there currently an additional $2 billion on offer for the Commonwealth to build the airport rail link?

    PRIME MINISTER: I’m not sure what you’re referring to.

    JOURNALIST: Well, previously there’s been $5 billion. (Inaudible). This is a lot of money, and it’s important.

    PRIME MINISTER: Negotiations are taking place.

    JOURNALIST: Is there $2 billion on the table, in addition to the $5 billion from both the Commonwealth and the state that’s been previously committed to?

    PRIME MINISTER: Well, I suggest you ask Minister King. Those discussions take place between, with due respect, as Prime Minister, we run a big Budget across a whole lot of portfolios. I’m here today announcing significant funding for public schools. The Infrastructure Minister deals with state and territory jurisdictions on specifics of the infrastructure program.

    JOURNALIST: Do you think it’s possible to have Suburban Rail Loop work happening in one side of the city and then Melbourne Airport happening at the same time, or would they have to be separate?

    PRIME MINISTER: There’s lots of projects happen across lots of cities. You know, I’m a Canberran these days. There’s a light rail project under construction and there’s roads under construction around Canberra, let alone in a city the size of Melbourne. You need to deal with the growth in the West of this great city and the growth in the East of this great city, and indeed the growth in the North. I note you haven’t mentioned there’s a pretty significant road project here in the North East that has how much Commonwealth funding? That has $5 billion. And I’ve been to that project that’s under construction right now. We will do a range of projects here in Victoria. And can I say this as well, not just in Melbourne, but in regional Victoria as well.

    JOURNALIST: It is a point of quite some contention in Victoria whether we can afford to do both. Are you saying we can afford to do both? Will you tell taxpayers if you’ll prioritise one over the other?

    PRIME MINISTER: I’m saying that Victoria will get its fair share of infrastructure funding from my Government, unlike what the former Government did. That, for reasons unbeknown really, ripped that $3 billion out of Melbourne Metro, ripped money out of Victorian road projects and never put anything back.

    JOURNALIST: Can we return to the caravan and particularly the broader issues of antisemitism? I’m not drawing a direct link here, but there was an interesting speech Richard Marles made at the Sydney Institute the other night, two nights ago. And he said, ‘questioning the right of Israel to exist strikes at the heart of global Jewry. It is antisemitic’. He said, ‘denying Israel’s right to defend itself is an attempt to delegitimise Israel’s existence and has dangerous real world consequences, including here in Australia’. And the reason I ask is I think it talks about the thing that’s been the heart of the pro-Palestinian protest in many forms has been this delegitimisation of Israel. Do you agree that we are seeing the real world consequences of that and somehow this has got to stop because it’s gotten out of control?

    PRIME MINISTER: Well, of course I agree that antisemitism has to stop, full stop. People need to be put, people need to be hunted down as is occurring. People are being arrested, they’re being charged, and they’re in the clink without release, without bail. That is occurring. If you go back to the resolution that was passed with the support of both major parties in the Parliament after the October 7 terrorist atrocities – that spoke about Israel’s right to defend itself, I spoke about that on the Sunday as well. I support what has been Australia’s long standing bipartisan position. The UN decision in 1947 for 1948 wasn’t for the creation of one state, it was for the creation of two – the state of Israel and the state of Palestine. I support a two state solution where both Israelis and Palestinians are able to live in peace and security. Now to do that, in order to achieve that, clearly there needs to be as well some reform on the Palestinian side. Hamas can play no role in any future state. I go back to that resolution which I looked at it the other day. Quite frankly, history treats it well. The fact that the Parliament came together at that time and overwhelmingly, with the exception of the Greens who can speak for themselves, they overwhelmingly, the Parliament passed that resolution. That was a good thing. Thanks very much.

    JOURNALIST: Prime Minister, the Labor Party was right there. I mean you make the point, I mean Doc Evatt was right there. Formation of Israel played a crucial path to his role in the UN. The question I had for you, and I was hoping you could answer it, is whether or not this continuing question of Israel’s existence is fuelling antisemitism?

    PRIME MINISTER: We support the right of Israel to exist.

    JOURNALIST: But the question about whether you agree that it’s fuelling antisemitism?

    PRIME MINISTER: That what is? Sorry, you’re not being clear about your question.

    JOURNALIST: The continual questioning of Israel’s right to existence. Whether that fuels antisemitism?

    PRIME MINISTER: Well, I can speak for myself. I think that one of the issues that I certainly always say very clearly is that it is in the interests of Israelis, obviously, that Israel has a right to exist with security. It’s also in the interest of Palestinians that Israel has a right to exist with security as well. You need a solution that stops a cycle of violence. The solution that is being negotiated out, if you actually take a bit of a step back, look at what a solution looks like. And it looks like, as has been advocated by the United States and others such as Antony Blinken, is the creation of is Israel firstly being recognised by countries such as Saudi Arabia and others in the region. It is then Palestine being able to step forward with a path towards security for Palestinians as well. Obviously, the international community has a role to play in that. Thanks very much.

    MIL OSI News –

  • MIL-OSI USA: Hawley Secures Promises from Kash Patel to Clean Up FBI, End Biden’s Abuses

    US Senate News:

    Source: United States Senator Josh Hawley (R-Mo)

    Thursday, January 30, 2025

    U.S. Senator Josh Hawley (R-Mo.) today secured the commitment of Kash Patel, President Donald Trump’s pick to lead the Federal Bureau of Investigation (FBI), to end the Biden-era FBI attacks on Christians and parents and seek accountability for those responsible. 
    During his Senate Judiciary confirmation hearing, Patel assured Senator Hawley that he would, “[F]ully utilize, if confirmed, the investigative powers of the FBI to give you the information you require and also to hold those accountable who violated the sacred trust placed upon the FBI.”
    [embedded content]
    Watch the full exchange here, or click on the image above. 
    Senator Hawley highlighted the FBI’s political persecutions of pro-life Christians exercising their faith, parents speaking out at school-board meetings, and Americans posting about politics on social media. 
    “Do you think it’s appropriate for the FBI to single out and target people of faith in order to discourage the exercise of their First Amendment rights?” Senator Hawley asked Patel. 
    The Senator continued, asking “Do you think it’s appropriate for the FBI to try to pressure the largest technology corporations in the world . . . to censor the political speech of everyday American citizens to try and violate the First Amendment?”
    Patel unequivocally condemned the Biden Administration’s miscarriage of justice and vowed to deliver Americans the “new brand of justice” they deserve.

    MIL OSI USA News –

  • MIL-OSI USA: Grassley, Johnson Make Public Whistleblower Records Revealing DOJ and FBI Plot to Pin Trump in Jack Smith Elector Case

    US Senate News:

    Source: United States Senator for Iowa Chuck Grassley
    WASHINGTON – Senate Judiciary Committee Chairman Chuck Grassley (R-Iowa) and Permanent Subcommittee on Investigations Chairman Ron Johnson (R-Wis.) are releasing legally protected whistleblower disclosures that prove the genesis of the federal election interference case brought against President Trump began at the hands of a prolific anti-Trump FBI agent who acted outside of established protocol for opening cases.
    Internal FBI emails and predicating documents provided to Grassley and released jointly by the two senators show Timothy Thibault, a former FBI Assistant Special Agent in Charge (ASAC) who was forced to retire from the Bureau after Grassley exposed his public anti-Trump bias, authored the initial language for what ultimately became Jack Smith’s federal case against Trump regarding the 2020 presidential election. Records show Thibault essentially opened and approved his own investigation. The FBI titled the ensuing investigation “Arctic Frost.”
    Records further reveal Richard Pilger, an official in the Justice Department (DOJ)’s Public Integrity Section, reviewed and approved the FBI’s Arctic Frost investigation, authorizing DOJ to move forward with a full field criminal and Grand Jury investigation that ultimately transformed into the Trump elector case. Grassley published a 2021 report that raised concerns regarding Pilger’s troubling record at DOJ.
    Grassley in 2022 additionally questioned Thibault’s role at the FBI, writing, “I remain very concerned that political bias by a select group of Justice Department and FBI officials has infected the Justice Department’s and FBI’s usual process and procedure to open and pursue high-profile and politically charged investigations.” Grassley and Johnson in November called on Jack Smith to preserve all records related to Trump-targeted investigations.
    The records released by Grassley and Johnson are linked below:
    Grassley provided an overview of the records in his opening statement during the Senate Judiciary Committee’s hearing on Kash Patel’s nomination to be FBI Director. Excerpts from Grassley’s opening statement follow:
    “In my hand are a series of FBI emails.
    “The first is an email that Thibault sent to a subordinate agent on February 14, 2022.
    “He said, ‘Here is draft opening language we discussed.’  The draft opening was attached, and it included material that would later become part of Jack Smith’s elector case.
    “The second email is a February 24, 2022, email from Thibault to John Crabb, a prosecutor in the U.S. Attorney’s Office for the District of Columbia, saying, ‘I had a discussion with the case team and we believe there to be predication to include former President of the United States Donald J. Trump as a predicated subject.’  This FBI case would later be codenamed Arctic Frost.
    “The third email is a February 24, 2022, email from Thibault to John Crabb noting that Attorney General and FBI Director approval will be sought to open the case.
    “The fourth email is a February 25, 2022, email from Thibault’s subordinate agents saying they added Trump, and others, as a criminal subject to the case.  Thibault responded ‘Perfect.’
    “The fifth email is a March 22, 2022, email from Thibault emailing a version of an investigative opening for approval.  This didn’t include President Trump as a criminal subject. 
    “The sixth email is an April 11, 2022, email from Thibault approving the opening of Arctic Frost.
    “The seventh email is an April 13, 2022, email from an FBI agent to Thibault stating that the FBI Deputy Director approved its opening. 
    “The eighth email on that same date had Thibault emailing John Crabb that the elector case was approved.  Crabb responded, ‘Thanks a lot. Let’s talk next week.’
    “Between March 22 and April 13, other versions of the document opening the investigation existed, because a ninth email shows that the FBI General Counsel’s office made edits on March 25. 
    “Was Trump still removed as an investigative subject?  If so, which Justice Department and FBI officials – other than Jack Smith – later added him for prosecution?
    “I expect the production of all records on this matter to better understand the full fact pattern and whether other records exist.”
    -30-

    MIL OSI USA News –

  • MIL-Evening Report: NZ- Kiribati fallout: A ‘Pacific way’ perspective on the Peters spat

    A NZ-born Kiribati member of Parliament, Ruth Cross Kwansing, has tried to bring in some Pacific common sense into the diplomatic tiff between her country and Aotearoa New Zealand. Her original title on her social media posting was “A storm in a teacup: Kiribati, New Zealand and a misunderstanding over diplomacy”.

    COMMENTARY: By Ruth Cross Kwansing

    We were polarised by the United States last week, but in the same way that a windscreen wiper distracts you from the rain, our Pacific news cycle and local coconut wireless became dominated by a whirlwind of speculation after New Zealand’s Deputy Prime Minister and Foreign Affairs Minister Winston Peters announced a review of New Zealand’s aid to Kiribati.

    This followed what was perceived as a snub by our President Taneti Maamau.

    The New Zealand media, in its typical fashion, seized the opportunity to patronise Kiribati, and the familiar whispers about Chinese influence began to circulate.

    Amidst this media manufactured drama, I found myself reflecting on “that” recent experience which offered stark contrast to the geopolitical noise.

    We had the privilege of attending the ordination of a Catholic Priest in Onotoa, where the true spirit of Kiribati was exemplified in the splendour of simplicity. Despite limited resources, the island community, representing various faiths, came together to celebrate this sacred event with unparalleled joy, hilariousness and hospitality from silent hands that blessed you with love.

    Hands that built thatched huts for us to sleep in, wove mats, cooked food, made pillows and hung bananas in maneabas to provide for guests from all over Kiribati and Nauru. Our President, himself a Protestant, had prioritised and actively participated, embodying by example, the unity and peace that Bishop Simon Mani so eloquently spoke of.

    We laughed, we cried, and we felt the spirit of our loving God.

    Spirit of harmony
    That spirit of harmony and hope we carried from recent experiences felt shaken overnight by news of New Zealand’s potential aid withdrawal. Social media in Kiribati erupted with questions and concerns, fuelled by an article claiming that New Zealand was halting aid due to President Maamau “snubbing” of Deputy Prime Minister Peters.

    Importantly: President Maamau would never in a millennium intentionally “snub” New Zealand or any foreign minister. The reality is far more nuanced.

    At the end of 2024, President Maamau announced to his Cabinet Ministers that he would delegate international bilateral engagements to Vice-President Dr Teuea Toatu or other Ministers and Ambassadors appropriately. Thereby enabling him to focus intently on domestic matters, including the workplan for our national necessities outlined in the KV20 vision and 149 deliverables of his party manifesto.

    NZ’s Foreign Minister Winston Peters . . . his spat with Kiribati described as a “storm in a teacup”. Image: RNZ/Reece Baker

    While the Vice-President was prepared to receive the New Zealand delegation, it seems Minister Peters was insistent on meeting with the President himself, leading to the cancellation of his trip.

    This insistence on bypassing established protocol is not only unusual but also, well let’s just say it with as much love as possible: It’s disrespectful to Kiribati’s sovereignty.

    It is also worth noting that the Deputy Prime Minister of Australia recently visited Kiribati and engaged with the Vice-President and Cabinet Ministers without any such reluctance.

    New Zealand’s subsequent announcement of an aid review, including a potential threat to the $2 million funded RSE scheme, has understandably caused serious anxiety in Kiribati.

    Devastating impact
    The potential loss of funding for critical sectors like health, education, fisheries, economic development and climate resilience would of course have a devastating impact on our people.

    After committing $102 million between 2021-2024 these are major threats to public health where $20 million was invested in initiatives like rebuilding the Betio Hospital, training doctors, building clinics, NCD strategic planning and more, $10 million in education, $4 million in developing the fisheries sector, it’s an expansive and highly impactful list of critical support for capacity strengthening to our country.

    While New Zealand has every right to review its aid programme to Kiribati or any developing country, it is crucial that these kinds of decisions are based on genuine development processes and not used as a tool for political pressure.

    Linking Pacific aid to access to political leaders sets a questionable precedent and undermines the principles of partnership, mutual respect and “mana” that underpins the inextricably linked relationships between Pacific nations.

    The reference to potential impacts on I-Kiribati workers in New Zealand under the RSE scheme is particularly concerning. These hardworking individuals contribute significantly to the New Zealand economy in a mutually beneficial arrangement.

    We deserve to be treated with fairness and respect, not weaponised to cut at the heart of what drives our political motivations — providing for our people, who are providing for our children.

    Despite this unfortunate situation, I believe that dialogue and understanding along with truth and love will prevail.

    Greater humility needed
    In the spirit of the “effectiveness, inclusiveness, resilience, and sustainability” that upholds New Zealand’s own development principles, we should all revisit this issue with greater humility and a commitment to resolving such misunderstandings.

    As a New Zealand-born, Australian/Tuvaluan, I-Kiribati politician representing the largest constituency in Kiribati, I have zero pride or ego and will never be too proud to beg for the needs of the people I serve, who placed their faith in a government that would put them first.

    We would love to host Deputy Prime Minister Winston Peters and a New Zealand government delegation in Kiribati, and we are indescribably grateful for the kinds of support provided since we gained independence in 1979. Our history stretches back even further than that, when New Zealand’s agricultural industry was nourished by phosphate from Banaba, and we continue to treasure the intertwined links between our nations.

    Let us prioritise cooperation and mutual respect over ego and political posturing. Let’s drink fresh coconuts and eat raw fish together and talk about how we can change the world by changing ourselves first.

    The “tea party” of Pacific partnership must continue to strengthen, and deepen, ESPECIALLY when challenged to overcome misunderstandings. It should always be one where Pacific voices are heard and respected lovingly, while we work towards a collective vision of health, peace and prosperity for all.

    But if development diplomacy ever fails, we’ll remember that I-Kiribati people are some of the most determined and resilient on this planet. Our ancestors navigated to these “isolated isles of the Pacific” surrounded by 3.5 million km of ocean and found “Tungaru” which means “a place of JOY”.

    We arrived in this world with nothing, and we’ll leave it with nothing, and we get to live our whole lives not feeling sorry for ourselves in this island paradise of ours, this place of joy, where we are wealthy in ways that money cannot buy.

    We will survive

    Ruth Maryanne Cross Kwansing was elected an independent member of Parliament in Kiribati in 2024. She later joined the Tobwaan Kiribati Party.

    MIL OSI Analysis – EveningReport.nz –

  • MIL-OSI USA: Tuberville Urges Senate to Move Swiftly on Confirming RFK Jr., Kash Patel, and Tulsi Gabbard

    US Senate News:

    Source: United States Senator for Alabama Tommy Tuberville

    “They are all outstanding choices and should be confirmed to President Trump’s cabinet as soon as possible.”

    WASHINGTON – Today, U.S. Senator Tommy Tuberville (R-AL) spoke on the Senate floor about the need to quickly confirm Robert F. Kennedy Jr., Kash Patel, and Tulsi Gabbard to key roles in President Trump’s cabinet. Sen. Tuberville defended each nominees’ qualifications and their commitments to making America healthy, more just, and secure again. During the speech, Sen. Tuberville denounced the baseless attacks aimed at these nominees by the media and career politicians as nothing but dishonest attempts to tank President Trump’s nominations.

    Read Senator Tuberville’s remarks below or watch on YouTube or Rumble.  

    “Mr. President,

    I’d like to start by thanking Leader Thune for President Trump’s cabinet nominees so far. President Trump is on the verge of having his full team. We’ve confirmed Pete Hegseth, Kristi Noem, Scott Bessent and many others who are doing an outstanding job implementing President Trump’s America First agenda, but there are more critical nominees that President Trump still needs to confirm. This includes Robert Kennedy, Kash Patel, and Tulsi Gabbard, along with a few others.

    I’ve gotten the chance to meet with each of these nominees. I’ve been very impressed. They are all outstanding choices and should be confirmed to President Trump’s cabinet as soon as possible. 

    First, I’d like to express my complete and total support for Robert F. Kennedy’s nomination to be the next Secretary of Health and Human Services. You know, last November, we saw millions of Americans, especially young Americans, flock to the MAGA movement after Bobby Kennedy endorsed President Trump.

    Both my sons, 28 and 30, Tucker and Troy, were huge fans of RFK and I know there’re just millions of young people who RFK [has] brought to the table and into the fold, opening our eyes towards something they had never really been involved in, and that’s the health of their generation and all generations across the country.

    As we know, Bobby started [the] Make America Healthy Again movement, known as MAHA, which eventually joined forces with President Trump. MAHA isn’t just a political slogan. It’s not just a political slogan. It’s a movement. That has swept our Nation. For the first time, important issues like the effectiveness of vaccines, the dangers of prescription medicines, and the chemicals in our food and household products are part of our national political [discourse], as it should be. And it’s all because of the work of Robert F. Kennedy Jr. 

    You know, before entering the arena, Bobby spent four decades, environmental law, and in healthcare policies, specializing in issues like water pollution, vaccines, and food safety. Four decades. He is an accomplished attorney who attended Harvard, the London School of Economics, and the University of Virginia. And he’s authored multiple best-selling books that I would suggest anybody, that’s concerned about the health of our country, should read.

    Throughout his career, he has committed to discovering the truth about what is causing the chronic disease epidemic in America today. And his presidential campaign exposed the fact that we have a serious, a very serious public health crisis facing our country today and in the future. 

    For example, in his hearing yesterday, Bobby Kennedy laid out that over seventy percent of adults and one third of our children are overweight or obese. The rate of diabetes is ten times more prevalent today than it was in 1960. Cancer among our young people is rising by one or two percent every year. Auto immune diseases, neurodevelopmental disorders, and addiction cases are hugely on the rise. Depression and anxiety rates are absolutely through the roof. Meanwhile, more Americans are reliant on pharmaceutical drugs than ever before.

    I saw that in my formal life of being a coach of players years ago, very few on any kind of drug such as Adderall or Ritalin for attention deficit. But the last few years, it was a huge uptick in prescription drugs and many, many young people across the country. These findings are alarming, and they should, and they had better shock, all of us. 

    Thank God, Bobby has dedicated his life to getting to the bottom of what’s causing these trends. As he did in his hearing yesterday, Bobby is an expert on the health issues facing our country and has the facts, the data, and the evidence to prove it. And he will bring his commitment to evidence-based science, transparency to our national health agencies. And it’s simple: Americans want access to all the facts so they can decide what’s best for themselves and for their families. Bobby is committed to giving Americans the information that they need to be informed and make informed decisions.

    Recently, I’ve seen the mainstream media, and some politicians attempt to smear Bobby Kennedy as anti-vax, anti-industry, or an enemy of food producers. All of this couldn’t be further from the truth. It’s just a political attack. We’ve even heard from prominent Republicans like former -Vice President Mike Pence who is running ads on TV criticizing Bobby Kennedy for not being sufficiently pro-life.

    Bobby addressed this himself yesterday. He believes every abortion is a tragedy, and he will work with President Trump to implement his pro-life policies. These attacks are nothing more than dishonest attempts by the DC establishment to tank his nomination. We’ve seen that in the last couple of weeks on all nominees.

    Sure. Bobby Kennedy may not be the typical pick for the job, but the American people don’t want a typical pick. The one we picked four years ago for President Biden was a lawyer, lived in California, and very seldom came to Washington D.C., worked from home. We got nothing done in health and human services.

    They gave us a mandate in November, 77 million people, to deliver Trump, President Trump’s agenda. And that includes Making America Healthy Again. As far as I’m concerned, Bobby is not part of being the healthcare establishment class. That’s a really good thing. We don’t need that. Look where it’s got us. The pharmaceutical industry and industrial food complex won’t be running the show anymore when Bobby Kennedy is confirmed. Instead, he will restore our health agencies to the gold standard of [scientific] research and explore [holistic] healthcare alternatives as part of our efforts to end chronic disease epidemics across this country.

    Ultimately, this will lower cost for Americans and ease the burden on our entire healthcare system, which is being overrun by all of the conditions that we have popping up today. With the many public health crisis we’re facing as a country, we have no time to waste. Hope my colleagues will join me in supporting Bobby for HHS Secretary and help President Trump Make America Healthy Again.

    Our next nominee, I’d like to turn to Kash Patel.

    He is on the Hill today going through his confirmation hearings. Kash is President Trump’s pick to be the FBI Director, who testified in front of the Senate all morning long. Kash is an excellent choice, and he has my full support. 

    It’s clear to the American people that the culture at the top of our top police agency in this country, the FBI, is rotten. It’s rotten to the core. We have some good people. But the people in charge have made devastating decisions against a lot of people across this country. It is far past time to clean house at the FBI.

    Over the last four years, we’ve seen the Bureau become politicized and weaponized. The Biden administration turned the FBI into the ‘fake bureau of investigation.’ The scales of justice were never fair and balanced under the last administration. Christopher Ray, the director, went after parents at school boards [and] pro-lifers. He went after Catholics. He went after grandmas who peacefully protested right outside this building on January the sixth. He went to their homes and arrested them. Not to mention the unprecedented raid on President Trump’s home in Mar-a-Lago, Florida.

    What we’ve seen unfold at our nation’s premiere law enforcement agency over the last four years is a complete and absolute disgrace to the American people and to our Constitution.

    Not only has the public’s trust in [the] FBI been completely eroded, it’s been a disservice to all the great men and women in the FBI, who commit every day to defending the Constitution and protecting us as American citizens. It’s going to take a lot of hard work to right this ship. Trust has to be put back into the FBI. Kash Patel is the right man to do [the] job.

    He’s qualified and has an impressive resume. He served in several national security and intelligence roles, as [a] federal prosecutor, and as a public defender. Not only is Kash qualified, but he also has the courage and the resolve needed to restore our faith in the FBI. Despite the media’s lies, Kash won’t have his enemies list when he takes a job, unlike the Biden administration. If crimes are committed, he will open an investigation, follow facts wherever they lead. No bias, no partiality. 

    Kash will bring back truth and transparency, uphold the rule of law and the Constitution, and protect Americans against its enemies, foreign, and domestic. He will ensure that the government works for the American people and not the other way around.

    Let’s confirm Kash quickly and give President Trump an important component of his national security team. I look forward to supporting Kash Patel, and I hope my Republican colleagues will do the same. 

    Finally, we need to confirm Tulsi Gabbard to be our next Director of National Intelligence. Like Kash, Tulsi will play a critical role on President Trump’s national security team.

    She just had her hearing in front of the Senate Intel Committee this morning. Her hearing only further confirmed to me that Tulsi is the perfect candidate for the DNI role. She is a decorated lieutenant colonel, over twenty years of service in the military. Tulsi served in combat in the Iraq War and is currently active in [the reserves]. She has a top security clearance, having passed five background checks to receive it.

    Tulsi served in Congress for eight years, where she sat on the Homeland Security, Armed Services, and Foreign Relations Committee. And as a member of Congress, she consistently participated in high-level intelligence briefings. [As] she has displayed throughout her entire career in the military and as an elected official, Tulsi will bring a fearless spirit to the DNI role.

    I have to tell you my meeting with Tulsi is one of the most impressive meetings I’ve had since I’ve been in this office going on five years. [Her] knowledge and expertise is unmatched. I have no doubt she will keep our country secure while protecting the Constitution and the constitutional rights of all Americans. She will help us return to peace through strength and put an end to Americans costly foreign wars.

    The attacks on her, questioning her loyalty to the United States are absolutely disgusting. It’s insulting. Tulsi has devoted her entire life to serving this country, [in] the military, and in public service.

    To the Senators criticizing Tulsi for not fitting the typical mold of a DNI director, [it] might just be a good thing. Have the last several years shown us that the status quo is working? No. I don’t think so. And I don’t think the American people think so either, and they’re the ones that count.

    Tulsi brings a fresh perspective to the job in the America that we all want and deserve. We do not need another James Clapper. Like the FBI, we’ve seen our intelligence community weaponized to target opponents of the regime. The IC conspired to take down President Trump in 2016 and 2020. And maybe most recently [in] the election a couple months ago.

    For that reason, I think Tulsi is exactly the change agent we need leading our intelligence community. Like Bobby Kennedy, Tulsi switched her party affiliation because she saw the status quo as a threat to the American people and our constitutional rights. As Director of National Intelligence, Tulsi will check her politics at the door just like she’s done the last twenty years serving in our military.

    She will come to DNI without any bias. She will fix our broken intelligence community, and folks, it is broken. I look forward to confirming Tulsi to DNI.

    I urge all my colleagues to join me in voting for Tulsi. She will play a major role in President Trump’s team in restoring faith in our intelligence community.

    Mr. President, I yield the floor.”

    Senator Tommy Tuberville represents Alabama in the United States Senate and is a member of the Senate Armed Services, Agriculture, Veterans’ Affairs, HELP, and Aging Committees.

    MIL OSI USA News –

  • MIL-OSI USA: Tuberville Questions Nominee to be Secretary of the Army, Advocates for Alabama Military Bases

    US Senate News:

    Source: United States Senator for Alabama Tommy Tuberville

    WASHINGTON – Today, U.S. Senator Tommy Tuberville (R-AL) questioned President Trump’s nominee for Secretary of the Army, Daniel Driscoll, in his Senate Armed Services Committee (SASC) confirmation hearing. Sen. Tuberville and Mr. Driscoll discussed delays in military construction at Redstone Arsenal. Sen. Tuberville also discussed the need to better incentivize new military recruits, following the announcement of his new Chairmanship of the SASC Subcommittee on Personnel.

    Read excerpts from Sen. Tuberville’s remarks below or watch on YouTube or Rumble.

    ON ARMY PILOT TRAINING PROGRAMS:

    TUBERVILLE: “Thank you, Mr. Chairman. Mr. Driscoll, thanks for being here. Thanks for your service. I wanna echo the thoughts about what’s happened last night here [in] our home territory is devastating. […] Fort Novosel in my state of Alabama, you know, we train all the vertical lift Army pilots, as you well know. […] I wanna get your thoughts on what you think about the new curriculum for a flight school that the Army has proposed. This affects all the pilots in the Army. And I wanna get your commitment continuing an open dialogue about the Army’s intent on how best to leverage existing resources. We’re cutting back on sorties. We’re not putting money in training like we used to—like we need to do. We’re undertrained in some areas. So, I’d like to get your thoughts on the curriculum and your thoughts about the future of vertical lift, especially with the new vertical lift that the Army is purchasing for the future fights that we might have.”

    DRISCOLL: “Senator, to your comment on what occurred last night, I think we’re all collectively gonna have to take a deep dive and figure out what occurred there. The early indicators from what I’ve seen on television—I have no other access to information—is that it might have been a training exercise gone wrong that had catastrophic outcomes. And so, we’re going to have to work together to make sure that never occurs again or at least to mitigate the odds that it could ever occur again. And then specifically the future of vertical flight—if you look at the contested airspace with our peer China and what we will have to do. Our vertical assets are going to have to be able to get further and faster with lower signature than they do today. That being said, if you look at FARA, the current push for the Army, it is early in its development, it is incredibly expensive, and we are likely going to have to work with the Black Hawk’s and the Chinook’s and the assets that we have today. And so, if confirmed, I would wanna get briefed on this and do a deep dive with the team to figure out how are we going to position ourselves and what training do we need for the next one day to five years until we can get to a better state.”

    ON MILCON DELAYS:

    TUBERVILLE: “Thank you. I want to discuss an issue that affects many of our installations, including mine in Huntsville, [Alabama] at Redstone, Arsenal. The issue is military construction—MILCON as we know it—we need to move fast, and the traditional military construction process is far too slow. Back at Redstone Arsenal, there are two warehouses as we speak being constructed, one for military by the [Army] Corps of Engineers and one by the FBI. These warehouses are roughly the same […], but the FBI has got a huge amount of bells and whistles, more than the military warehouse. The military warehouse is going to cost almost $56 million and it’s going to take 48 months—four years—to build this. Where the FBI facility is going to cost $40 million and [should take] take only basically a year and a half. We [have] got a problem. Okay? How on earth does this make any sense? The Army is currently running a repair by replacement pilot program that is being tested at a couple of installations to demolish older barracks and replace them with new modern facilities. The key part of this program is that it is using operations and maintenance dollars versus traditional MILCON dollars. Are you familiar with this?”

    DRISCOLL: “Senator, I had the opportunity to talk with you about in your office. Yeah—and this is the type of thing that makes my blood boil on behalf of soldiers. The Army has a limited budget to begin with. We have to be good stewards of the American taxpayer’s dollars. And when we are not, it is both the taxpayer and the soldier—and these soldiers are my friends—it is my friends that live in these barracks and raise their families there. And we need to stretch these dollars as far as we can.”

    ON MILITARY RECRUITING:

    TUBERVILLE: “Yeah. And the other small point I want to bring up, we’ve talked about recruiting. I won’t get into that. The new recruit in the army makes $25,000 a year before taxes. We just gave [them] a raise, but we can’t expect to attract the best and the brightest young men and women in the military unless we do something else […]. I know we give them a lot of perks at the end of the day, but we have got to understand [that] $25,000 [is not enough]. I mean, most of them can make that in two months’ time in some kind of big tech [job] or whatever. So, just keep that in mind as you get into recruiting. We have got to start taking care of these young men and women if we’re gonna build the fighting force that we need. Thank you.”

    DRISCOLL: “Yes, Sir.”

    Senator Tommy Tuberville represents Alabama in the United States Senate and is a member of the Senate Armed Services, Agriculture, Veterans’ Affairs, HELP, and Aging Committees.

    MIL OSI USA News –

  • MIL-OSI USA: In Response to Graham, Kash Patel Confirms Politicization of FBI Will End

    US Senate News:

    Source: United States Senator for South Carolina Lindsey Graham
    WASHINGTON – U.S. Senator Lindsey Graham (R-South Carolina) today questioned Kash Patel, President Donald Trump’s nominee to be Director of the Federal Bureau of Investigation (FBI), at his Senate Judiciary Committee nomination hearing.
    On the politicization of the FBI:
    GRAHAM: “The reason you’re here is because most of the public, almost every Republican, believes that the FBI has been used continuously in a political fashion, ignoring evidence, making up evidence, lying to get Donald Trump. And when it came to the Hunter Biden laptop, [the FBI] told every social media company, ‘oh that’s Russian disinformation.’ That was BS too… do you promise all of us those days are over at the FBI?”
    PATEL: “Yes Senator, they are.”
    GRAHAM: “…Do you think that’s why you’re here today, to make sure that never happens again?”
    GRAHAM: “[Former FBI agent Lisa Page] responds [to former FBI agent Peter Strzok] a couple months later, ‘[Trump] is not ever going to be president, right?’ …Strzok [responded]: ‘No. No he won’t. We’ll stop him.’ Is it fair to say that the people in charge of investigating Crossfire Hurricane hated Trump’s guts?”
    PATEL: “Well you don’t have to take my word for it…”
    GRAHAM: “Are those days over in the FBI, you hope?”
    GRAHAM: “Do you believe that Crossfire Hurricane was one of the most disgusting episodes in FBI history of a corrupt investigation led by corrupt people who wanted to take Donald Trump down?”
    PATEL: “Yes, sir.”
    GRAHAM: “Do you think that’s why you’re here in this chair today? To fix that?”
    PATEL: “I think that’s a big reason.”
    On Democrats’ attacks on Patel’s character:
    GRAHAM: “Have you ever been subject to racism as an individual?”
    PATEL: “Unfortunately, Senator, yes. I don’t want to get into those details with my family here.”
    GRAHAM: “Let’s get into a few of them. Tell me about it.”
    PATEL: “Well, if you look at the record from January 6th, where I testified before that committee, because of my personal information being released by Congress, I was subjected to a direct and significant threat on my life. And I put that information in the record. I had to move. In that threat, I was called a detestable, and I apologize if I don’t get it all right, but it’s in the record, a detestable [expletive] who had no right being in this country. ‘You should go back to where you came from. You belong with your terrorist home friends.’ That’s what was sent to me. That’s just the piece of it, but that’s nothing compared to what the men and women in law enforcement face every day, and that’s why they have my support.” https://youtu.be/KoHclcynkNI?si=RkOg1tDKXzfFDO8_&t=7
    Click here to watch Graham question Kash Patel

    MIL OSI USA News –

  • MIL-OSI Security: Luchese Crime Family Solider and Four Associates Plead Guilty to Crimes Including Racketeering, Money Laundering and Illegal Gambling

    Source: Office of United States Attorneys

    Earlier today and throughout the past few weeks, in federal court in Brooklyn, five members and associates of the Luchese organized crime family of La Cosa Nostra pleaded guilty to multiple crimes, including racketeering, money laundering and illegal gambling related to criminal activities throughout New York City. The proceedings were held before United States District Judge Kiyo A. Matsumoto.  Today, Luchese crime family soldier Anthony Villani pleaded guilty to racketeering, money laundering and illegal gambling.  As part of Villani’s plea agreement, he will pay $4 million in forfeiture.  His co-defendants have agreed to pay an additional approximately $1 million in forfeiture.  Villani and his co-defendants operated a large-scale, illegal online gambling business (the Gambling Business) that operated under the protection of the Luchese crime family across the New York metropolitan area.  The gambling business, known as “Rhino Sports,” operated since the early 2000s and brought millions in illicit profits annually.   

    John J. Durham, United States Attorney for the Eastern District of New York and James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the guilty pleas.

    “These guilty pleas represent a victory for the rule of law over the pernicious activities of organized crime that undermine the safety of our communities,” stated United States Attorney Durham.  “Illegal gambling businesses require enforcement and protection from mob rivals that carry the persistent threat of violence.  However, the defendants’ luck ran out and, thanks to the hard work of the team of prosecutors and investigators, they will be held accountable for their crimes and pay their debt to society.”

    FBI Assistant Director in Charge Dennehy stated: “Our investigations involving members of the Five Families don’t make the same headlines as they have historically. However, the men pleading guilty in this case illustrate how entrenched the traditional mafia are in their noxious and familiar criminality. They are less flashy these days – and a lot of that is due to the incredible cunning and tenacity agents and investigators on our FBI New York Westchester Organized Crime Task Force use to pursue members of these organizations.”

    As detailed in the indictment and court filings, for over 25 years, Villani has been involved in significant gambling operations, principally based in the Bronx and Westchester, New York, that were affiliated with multiple organized crime families.  Villani owned and operated the Gambling Business since at least 2004.  The Gambling Business was hosted using servers in Costa Rica and employed local bookmakers to pay and collect winnings.  Villani’s bookmakers included members and associates of the Luchese crime family and other La Cosa Nostra families.  As part of the scheme, Villani employed trusted individuals, including defendants Louis Tucci, Jr. and Dennis Filizzola, to assist in operating the business and collecting at least $1 million annually.  Records obtained of the Gambling Business’s website indicated that Villani’s illegal gambling operation regularly took bets from between 400 and 1,300 bettors each week, most of whom were based in New York City and the metropolitan area. At Villani’s direction, Filizzola took proceeds from the Gambling Business and used them to purchase U.S. Postal Service money orders in false names, which were then made payable to one of Villani’s property companies to appear as legitimate rental payments.   

    When sentenced, Villani faces up to 20 years in prison.  Louis Tucci, Jr., pleaded guilty on January 27, 2025 to illegal sports betting and faces up to five years in prison.  Filizzola pleaded guilty on January 21, 2025 to illegal sports betting and money laundering and faces up to five years in prison and up to 20 years in prison on those counts respectively.  James Coumoutsos pleaded guilty on January 21, 2025 to illegal sports betting and faces up to five years in prison.  Michael Praino pleaded guilty on January 10, 2025 to illegal sports gambling and faces up to five years in prison.  A sixth defendant remains at large.

    The government’s case is being handled by the Office’s Organized Crime and Gangs Section.  Assistant United States Attorney Antoinette N. Rangel is in charge of the prosecution.  Assistant United States Attorney Claire S. Kedeshian of the Office’s Asset Recovery Section is handling forfeiture matters.

    The Defendants:

    ANTHONY VILLANI
    Age:  60
    Elmsford, NY

    JAMES COUMOUTSOS (also known as “Quick”)
    Age:  62
    Bronx, NY

    DENNIS FILIZZOLA
    Age:  61
    Cortlandt Manor, NY

    MICHAEL PRAINO (also known as “Platinum”)
    Age:  47
    Lake Worth, Florida

    LOUIS TUCCI, JR. (also known as “Tooch”)
    Age:  61
    Tuckahoe, NY

    E.D.N.Y. Docket No. 22-CR-405 (KAM)

    MIL Security OSI –

  • MIL-OSI USA: Sens. Johnson, Grassley Make Public Whistleblower Records Revealing DOJ and FBI Plot to Pin Trump in Jack Smith Elector Case

    US Senate News:

    Source: United States Senator for Wisconsin Ron Johnson

    WASHINGTON – Today, Permanent Subcommittee on Investigations Chairman Ron Johnson (R-Wis.) and Senate Judiciary Committee Chairman Chuck Grassley (R-Iowa) are releasing legally protected whistleblower disclosures that prove the genesis of the federal election interference case brought against President Trump began at the hands of a prolific anti-Trump FBI agent who acted outside of established protocol for opening cases. 

    Internal FBI emails and predicating documents provided to Grassley and released jointly by the two senators show Timothy Thibault, a former FBI Assistant Special Agent in Charge (ASAC) who was fired from the Bureau after Grassley exposed his public anti-Trump bias, authored the initial language for what ultimately became Jack Smith’s federal case against Trump regarding the 2020 presidential election. Thibault took this action despite being unauthorized to open criminal investigations in his ASAC role. The FBI titled the ensuing investigation “Arctic Frost.” 

    Records further reveal Richard Pilger, an official in the Justice Department (DOJ)’s Public Integrity Section, reviewed and approved the FBI’s Arctic Frost investigation, authorizing DOJ to move forward with a full field criminal and Grand Jury investigation that ultimately transformed into the Trump elector case. Grassley published a 2021 report that raised concerns regarding Pilger’s troubling record at DOJ.

    Grassley in 2022 additionally questioned Thibault’s role at the FBI, writing, “I remain very concerned that political bias by a select group of Justice Department and FBI officials has infected the Justice Department’s and FBI’s usual process and procedure to open and pursue high-profile and politically charged investigations.” In November, Sens. Johnson and Grassley called on Jack Smith to preserve all records related to Trump-targeted investigations.

    The records released by Johnson and Grassley are linked below:

    Grassley provided an overview of the records in his opening statement during the Senate Judiciary Committee’s hearing on Kash Patel’s nomination to be FBI Director. Excerpts from Grassley’s opening statement follow:  

    “In my hand are a series of FBI emails.

    “The first is an email that Thibault sent to a subordinate agent on February 14, 2022.

    “He said, ‘Here is draft opening language we discussed.’  The draft opening was attached, and it included material that would later become part of Jack Smith’s elector case. 

    “The second email is a February 24, 2022, email from Thibault to John Crabb, a prosecutor in the U.S. Attorney’s Office for the District of Columbia, saying, ‘I had a discussion with the case team and we believe there to be predication to include former President of the United States Donald J. Trump as a predicated subject.’ This FBI case would later be codenamed Arctic Frost. 

    “The third email is a February 24, 2022, email from Thibault to John Crabb noting that Attorney General and FBI Director approval will be sought to open the case. 

    “The fourth email is a February 25, 2022, email from Thibault’s subordinate agents saying they added Trump, and others, as a criminal subject to the case. Thibault responded ‘Perfect.’ 

    “The fifth email is a March 22, 2022, email from Thibault emailing a version of an investigative opening for approval. This didn’t include President Trump as a criminal subject.   

    “The sixth email is an April 11, 2022, email from Thibault approving the opening of Arctic Frost.

    “The seventh email is an April 13, 2022, email from an FBI agent to Thibault stating that the FBI Deputy Director approved its opening. 

    “The eighth email on that same date had Thibault emailing John Crabb that the elector case was approved. Crabb responded, ‘Thanks a lot. Let’s talk next week.’ 

    “Between March 22 and April 13, other versions of the document opening the investigation existed, because a ninth email shows that the FBI General Counsel’s office made edits on March 25. 

    “Was Trump still removed as an investigative subject?  If so, which Justice Department and FBI officials – other than Jack Smith – later added him for prosecution? 

    “I expect the production of all records on this matter to better understand the full fact pattern and whether other records exist.”

    MIL OSI USA News –

  • MIL-OSI USA: Durbin Questions FBI Director Nominee, Kash Patel, About His Involvement With The “J6 Choir” And His Conspiracy Theory That The FBI Planned The January 6 Attack

    US Senate News:

    Source: United States Senator for Illinois Dick Durbin

    January 30, 2025

    WASHINGTON – U.S. Senate Democratic Whip Dick Durbin (D-IL), Ranking Member of the Senate Judiciary Committee, today again questioned Kash Patel, President Trump’s nominee to lead the Federal Bureau of Investigation (FBI), during his nomination hearing. Durbin first asked Mr. Patel about political violence and his promotion of the “J6 choir.”

    Mr. Patel co-produced, promoted, and sold a record recorded by the so-called “J6 prison choir” – a group of January 6 rioters who were incarcerated in the D.C. jail in February 2023. He has described the choir’s members as, “political prisoners.” Notably, he has declined to identify the members of the choir. According to one analysis of D.C. Corrections records, there were only 20 January 6 offenders in D.C. jail as of March 2023. Of these, 17 were accused of or already convicted of assaulting law enforcement officers. A recent Special Counsel report identified six members of the choir, five of whom had already pleaded guilty to assaulting law enforcement officers before Patel promoted their recording. 

    “When it comes to violence and politics, I personally believe [violence] has no place in politics. Whether it’s violence against Donald Trump or violence against Nancy Pelosi’s husband in her home, period. Those people, [the] Proud Boys, whatever they call themselves, have no place in this country as far as I’m concerned if they espouse violence in any form, do you agree?” Durbin asked.

    Mr. Patel replied, “yes.”

    “Why are we so concerned about this choir singing a song? The question is who are you going to care about, who are you going to help? Are you going to help the victims of January 6—the police and their families, or are you going to help the people arrested for assaulting [the Capitol Police officers]? I think the J6 choir looks like a tribute to them—characterizing them as ‘political prisoners’ and unlucky and just patriotic people who may have gotten out of hand. Do you see the difference?” Durbin asked.

    Mr. Patel responded that “his track record” shows which side he falls on. Yet despite this statement, he co-produced, promoted, and sold this “J6 choir” record.

    Durbin then asked Mr. Patel about his conspiracy theory that the FBI planned the January 6 attack. The conspiracy theory that January 6 was a false flag operation conducted by the FBI has been repeatedly debunked, including, most recently, in a lengthy report from the Justice Department’s Inspector General.

    “Let me ask you about one of the major conspiracy theories that I’ve heard, and you’re associated with—that the FBI planned January 6. Why did you say that?” Durbin asked.

    Mr. Patel denied stating this conspiracy theory even though on one episode of his podcast he asked, “What was the FBI doing planning January 6th for a year?”

    “Did you really think the FBI was planning January 6 for a year?” Durbin asked again.

    Mr. Patel again repeatedly denied spewing this conspiracy theory despite evidence to the contrary.

    Video of Durbin’s second round of questions in Committee is available here.

    Audio of Durbin’s second round of questions in Committee is available here.

    Footage of Durbin’s second round of questions in Committee is available here for TV Stations.

    -30-

    MIL OSI USA News –

  • MIL-OSI: Preferred Bank Announces Fire Relief Donations

    Source: GlobeNewswire (MIL-OSI)

    LOS ANGELES, Jan. 30, 2025 (GLOBE NEWSWIRE) — Preferred Bank (NASDAQ: PFBC), (the “Bank”) one of the larger independent California banks, today reported that the Board of Directors had approved a significant donation to benefit fire relief efforts on the Los Angeles area.

    Li Yu, Chairman and CEO, commented, “The recent wildfires in Southern California have been devastating and one of the worst disasters in the history of Southern California. As a company headquartered in the heart of Los Angeles, the fires have been particularly impactful for many of our associates, clients and communities. To support recovery efforts, the Board and executive management have authorized a donation in the amount of $250,000 to be split among four organizations that provide resources and relief to those impacted.

    Those Organizations are:

    • Tzu-Chi – USA
    • Pasadena Community Foundation
    • Alliance for a Better Community
    • Los Angeles Fire Department Foundation

    “In addition, the Bank is also going to match any contribution any employee has already made, or will make, to the wildfire relief efforts on top of the $250,000 donation. The amount the Bank matches will be awarded to the organization the employee donated to. We are pleased to be able to make this contribution and look forward to helping the impacted communities of Southern California rebuild.”  

    About Preferred Bank

    Preferred Bank is one of the larger independent commercial banks headquartered in California. The Bank is chartered by the State of California, and its deposits are insured by the Federal Deposit Insurance Corporation, or FDIC, to the maximum extent permitted by law. The Bank conducts its banking business from its main office in Los Angeles, California, and through twelve full-service branch banking offices in California (Alhambra, Century City, City of Industry, Torrance, Arcadia, Irvine (2), Diamond Bar, Pico Rivera, Tarzana and San Francisco (2)), one branch in Flushing, New York and a branch office in the Houston, Texas suburb of Sugar Land. In addition, the Bank also operates a loan production office in Sunnyvale, California. Preferred Bank offers a broad range of deposit and loan products and services to both commercial and consumer customers. The Bank provides personalized deposit services as well as real estate finance, commercial loans and trade finance to small and mid-sized businesses, entrepreneurs, real estate developers, professionals and high net worth individuals. Although originally founded as a Chinese-American Bank, Preferred Bank now derives most of its customers from the diversified mainstream market but does continue to benefit from the significant migration to California of ethnic Chinese from China and other areas of East Asia.

    AT THE COMPANY:   AT FINANCIAL PROFILES:
    Edward J. Czajka   Jeffrey Haas
    Executive Vice President   General Information
    Chief Financial Officer   (310) 622-8240
    (213) 891-1188   PFBC@finprofiles.com

    The MIL Network –

  • MIL-OSI Security: Michigan Woman Sentenced for Conspiracy to Distribute Fentanyl

    Source: Office of United States Attorneys

    RAPID CITY – United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Camela C. Theeler has sentenced a Clark Lake, Michigan, woman convicted of Conspiracy to Distribute a Controlled Substance. The sentencing took place on January 27, 2025.

    Jamie Lee, age 40, was sentenced to four years and nine months in federal prison, followed by five years of supervised release, $1,000 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $100.

    Lee was indicted by a federal grand jury in June of 2024. She pleaded guilty on November 13, 2024.

    Beginning around March 2023, Lee began obtaining fentanyl along with her boyfriend, Jacob Denker. They picked up fentanyl in Colorado and then brought it to South Dakota. In Rapid City, Lee and her boyfriend had sub-distributors who further distributed fentanyl throughout the Rapid City area and the Pine Ridge Reservation. This activity continued through September 2023. Overall, Lee and co-conspirators were responsible for bringing over 400 grams of fentanyl to the area. Jacob Denker was previously sentenced to 10 years in federal prison. Co-defendant Eugene Giago is scheduled for trial on March 11, 2025.

    This case was investigated by the FBI, South Dakota Division of Criminal Investigation, South Dakota Highway Patrol, and the Badlands Safe Trails Task Force. Assistant U.S. Attorney Edward C. Tarbay prosecuted the case.

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

    MIL Security OSI –

  • MIL-OSI USA: Cornyn Questions FBI Director Nominee Kash Patel on Restoring Trust in FBI & DOJ

    US Senate News:

    Source: United States Senator for Texas John Cornyn

    WASHINGTON – Today during the Senate Judiciary Committee’s hearing on the nomination of Kash Patel to be Director of the Federal Bureau of Investigation (FBI) under the Trump administration, U.S. Senator John Cornyn (R-TX) discussed with him the need to restore trust in the Department of Justice (DOJ) and the Federal Bureau of Investigation (FBI) after the Biden administration’s politicization of these agencies. Excerpts are below, and video can be found here.

    On Restoring the Rule of Law in America:

    CORNYN: “Do you believe America is an exceptional nation?”

    PATEL: “It’s the greatest nation.”

    CORNYN: “Do you believe a large part of what makes America an exceptional nation is the rule of law?”

    PATEL: “It is one of the fundamental precepts that determines that.”

    CORNYN: “Why is that?”

    PATEL: “Because without a singular application of a rule of law, we go back to the Uganda that my father fled.”

    CORNYN: “I think your biggest task is going to be, along with Pam Bondi at the Office of the Attorney General, is to restore the rule of law to the Department of Justice and the FBI. Are you willing to do that?”

    PATEL: “Absolutely, Senator.”

    CORNYN: “Without regard to partisan affiliation or politics?”

    PATEL: “Absolutely.”

    MIL OSI USA News –