Category: Internet Communications Technology

  • MIL-OSI: MEXC Concludes Golden Era Showdown with 350,000 USDT Gold Bar Awarded in Europe

    Source: GlobeNewswire (MIL-OSI)

    VICTORIA, Seychelles, July 31, 2025 (GLOBE NEWSWIRE) — MEXC, a leading global cryptocurrency exchange, held an offline awards ceremony in Europe to thank users for their enthusiastic participation in its Golden Era Showdown mid-year trading event. MEXC presented the 100-ounce gold bar grand prize, valued at 350,000 USDT, to the lucky winner.

    The Golden Era Showdown attracted over 200,000 participants and unlocked a 4 million USDT prize pool during its three-week run. The event generated 376,908 daily scratch card chances, 16,635 weekly lucky draw chances, and 5,666 lucky lottery tickets.

    Notably, the event’s grand prize utilized an innovative Bitcoin blockchain hash methodology to ensure complete transparency and fairness. The ultimate lottery was determined by the last 5 digits of the first Bitcoin block hash generated after 12:00:00 UTC on July 4, 2025. The winning number was 70270, with winners selected by closest match. The 100-ounce gold bar (valued at 350,000 USDT) corresponded to lottery number 00270, while the 1 BTC prize (valued at approximately 110,000 USDT) was awarded to lottery number 05270.

    Other major winners included 0.5 BTC (valued at approximately 55,000 USDT), lottery number 04270; 0.3 BTC (valued at approximately 33,000 USDT), lottery number 03270; and 0.1 BTC (valued at approximately 11,000 USDT), lottery number 02270. Additionally, detailed information about Expert Prize, Weekly Surprises, and Daily Prize winners can be found on the MEXC official website.

    At the awards ceremony, winner Soufyan shared his initial reaction to the notification. “When I first got the notification, I couldn’t believe it was real. I kept double-checking until I confirmed it was actually me,” he said.

    Soufyan has been using MEXC for about 1.5 years. Initially, he decided to switch to MEXC after hearing many positive reviews about its competitive low fees, frequent events, and generous user rewards. “Since I started using MEXC, I’ve barely used other platforms.” Soufyan explained. When asked for advice to new investors, he suggested avoiding emotional trading and excessive leverage. He also expressed optimism about AI sector tokens this year, emphasizing those with real-world applications rather than speculative projects.

    The success of Golden Era Showdown underscores MEXC’s philosophy of putting users first through generous rewards and cutting-edge transparency measures. The event’s record-breaking participation reflects the strong trust users place in the platform, while the seamless prize distribution demonstrates MEXC’s commitment to empowering users and delivering on its promises.

    About MEXC
    Founded in 2018, MEXC is committed to being “Your Easiest Way to Crypto.” Serving over 40 million users across 170+ countries, MEXC is known for its broad selection of trending tokens, everyday airdrop opportunities, and low trading fees. Our user-friendly platform is designed to support both new traders and experienced investors, offering secure and efficient access to digital assets. MEXC prioritizes simplicity and innovation, making crypto trading more accessible and rewarding.
    MEXC Official WebsiteXTelegramHow to Sign Up on MEXC

    Photo accompanying this announcement is available at:

    https://www.globenewswire.com/NewsRoom/AttachmentNg/cfdfb0e3-512a-469c-ae51-b861528a2632

    The MIL Network

  • MIL-OSI Russia: China’s State Internet Information Office Discusses H20 Backdoor Data Leak Risks with Nvidia

    Translation. Region: Russian Federal

    Source: People’s Republic of China in Russian – People’s Republic of China in Russian –

    An important disclaimer is at the bottom of this article.

    Source: People’s Republic of China – State Council News

    Xinhua | 31.07.2025

    Keywords: China, cybersecurity

    Source: Xinhua

    China’s Internet Information Office Discusses H20 Backdoor Data Leak Risks with Nvidia China’s Internet Information Office Discusses H20 Backdoor Data Leak Risks with Nvidia

    Please note: This information is raw content obtained directly from the source of the information. It is an accurate report of what the source claims and does not necessarily reflect the position of MIL-OSI or its clients.

    .

    MIL OSI Russia News

  • MIL-OSI Russia: China Improves People’s Livelihoods with Digital and Smart Services

    Translation. Region: Russian Federal

    Source: People’s Republic of China in Russian – People’s Republic of China in Russian –

    An important disclaimer is at the bottom of this article.

    Source: People’s Republic of China – State Council News

    BEIJING, July 31 (Xinhua) — In 2024, China made continuous efforts to implement information technology in social services such as medical care, health care, social security, employment and elderly care, bringing people a greater sense of fulfillment, happiness and security.

    By the end of 2024, the number of users of online medical services in China will reach 418 million, and the country will have 1.07 billion users of electronic social security cards, Wen Ruisong, an official with the State Internet Information Office, said on Wednesday at an event to release a report on the development of informatization in China.

    The aforementioned report states that in terms of the level of information technology development among China’s provincial-level administrative units, the top ten places are occupied by Beijing City, Zhejiang Province, Shanghai City, Guangdong Province, Jiangsu Province, Shandong Province, Fujian Province, Sichuan Province, Chongqing City and Tianjin City.

    Please note: This information is raw content obtained directly from the source of the information. It is an accurate report of what the source claims and does not necessarily reflect the position of MIL-OSI or its clients.

    .

    MIL OSI Russia News

  • MIL-OSI Asia-Pac: Hospital Authority streamlines clinical research approval to promote medical research development (with photo)

    Source: Hong Kong Government special administrative region – 4

    The following is issued on behalf of the Hospital Authority:

         The Hospital Authority (HA) held a sharing session today (July 31) with representatives from the Greater Bay Area International Clinical Trial Institute (GBAICTI) and Hong Kong’s pharmaceutical industry to outline a series of enhancement measures implemented by the HA for promoting clinical research development, including the recently implemented streamlined approval procedures aiming at attracting more clinical research projects from the industry.
     
         Last year, the HA established a Central Clinical Research and Innovation Office and Cluster Clinical Research Support Offices in each cluster to provide support for frontline healthcare professionals and proactively encourage participation in clinical research. In April this year, the HA further enhanced the application and approval procedures for commercially sponsored clinical research, including revising the long-standing standard clinical research agreement template to provide more up-to-date content and balance the interests of all parties. The HA has also engaged a professional organisation to assist in the review and approval of commercially sponsored clinical research applications, expediting the approval process and timeframe through the incorporation of industry expertise.
     
         The Director (Quality and Safety) of the HA, Dr Michael Wong, expressed confidence that the new measures will promote the clinical research development. “As a key player in local clinical research with professional medical teams and extensive healthcare data, the HA has been aligning with government policies and engaging in communication and exchange with various healthcare institutions and industry stakeholders. Through optimising processes and streamlining approval procedures, the HA aims to facilitate efficient implementation and execution of clinical research, fostering a more conducive environment for medical innovation and enhancing Hong Kong’s competitiveness in international clinical research.”
     
         About 100 participants in the sharing session included members and representatives from the GBAICTI and the Hong Kong Association of the Pharmaceutical Industry, who had in-depth exchanges on the development of clinical research in Hong Kong.
     
         The HA Central Institutional Review Board (Central IRB) completed the integration of all cluster Research Ethics Committees in March 2024 and has processed over 1 000 clinical research applications. The Central IRB serves as a co-ordinator and has been further streamlining the research ethics application and approval process and facilitating cross-cluster clinical research applications. Following process optimisation, simple clinical research applications can now be processed through an expedited review procedure, with approval times significantly reduced to within 30 days, while the ethics review for complex research applications can be completed within 60 days.
     
         The HA will continue to dovetail with government policy directions and the needs of the pharmaceutical industry, deepen collaboration with the GBAICTI, and fully support various clinical research applications, thereby promoting Hong Kong’s medical and scientific research, enhancing healthcare standards, and benefitting patients.

    MIL OSI Asia Pacific News

  • MIL-OSI: MEXC Launches ETH Launchpad for Ethereum’s 10th Anniversary: Users Share 100 ETH at Up to 90% Off

    Source: GlobeNewswire (MIL-OSI)

    VICTORIA, Seychelles, July 31, 2025 (GLOBE NEWSWIRE) — MEXC, a leading global cryptocurrency exchange, today announced it has launched its exclusive ETH Launchpad subscription event, offering users the opportunity to share 100 ETH at unprecedented discount rates of up to 90% off in celebration of Ethereum’s 10th anniversary.

    MEXC Launchpad is an innovative token issuance platform that provides users with guaranteed access to high-quality projects at discounted prices. In its previous BTC discount purchase event, MEXC Launchpad attracted over 90,000 participants, with 28,000 successful subscribers and a total subscription volume exceeding $3.3 million. New users achieved returns of up to 902.5%, with an annual percentage yield (APY) of 23,530.2%, while existing users earned 25.0% returns with an APY of 651.2%.

    Key Event Information

    Event Timeline

    • Subscription Period: July 31, 2025, 08:00 (UTC) – August 21, 2025, 08:00 (UTC)
    • Allocation Period: August 21, 2025, 08:00 (UTC) – August 21, 2025, 10:00 (UTC)

    Subscription Pools
    New User Exclusive Pool

    • Subscription Price: 360 USDT
    • Total Supply: 60 ETH
    • Min. Subscription: 100 USDT
    • Max. Subscription: 200 USDT

    To be eligible, new users must maintain a net deposit of at least 100 USDT, and complete at least 100 USDT in spot trading and 1,500 USDT in futures trading during the event period.

    MX Pool (All Users)

    • Subscription Price: 1,360 MX
    • Total Supply: 40 ETH
    • Min. Subscription: 50 MX
    • Max. Subscription: 6,000 MX

    To participate in the MX pool, users must complete at least 2,000 USDT in futures trading during the event.

    Referral Rewards
    Existing users can invite friends to join MEXC and share a 10,000 USDT bonus pool. Referrers will receive 20 USDT for each new user who signs up using their referral code and successfully subscribes to the USDT pool. Rewards are distributed on a first-come, first-served basis.

    How to Participate:

    1. Users must create a MEXC account (if they haven’t already) and register for the event.
    2. Participants are required to complete Advanced KYC verification.
    3. Complete any required tasks and subscribe with MX or USDT during the Subscription Period.
    4. Subscriptions will be locked for final calculation during the Allocation Period.

    MEXC’s User-First Philosophy

    This ETH Launchpad event embodies MEXC’s unwavering commitment to prioritizing user benefits above all else through industry-leading discount rates. With industry-leading token listing efficiency, over 3,000 digital assets available, exceptional trading depth, low trading fees, and robust security infrastructure, MEXC has become the preferred platform for an increasing number of traders worldwide. MEXC will continue to roll out innovative events and substantial rewards that empower users and enhance their trading experience.

    For more information and to participate in MEXC’s ETH Launchpad, please visit here.

    About MEXC
    Founded in 2018, MEXC is committed to being “Your Easiest Way to Crypto.” Serving over 40 million users across 170+ countries, MEXC is known for its broad selection of trending tokens, daily airdrop opportunities, and low trading fees. Our user-friendly platform is designed to support both new traders and experienced investors, offering secure and efficient access to digital assets. MEXC prioritizes simplicity and innovation, making crypto trading more accessible and rewarding.
    MEXC Official WebsiteXTelegramHow to Sign Up on MEXC

    For media inquiries, please contact MEXC PR team: media@mexc.com

    Risk Disclaimer:
    The information provided in this article regarding cryptocurrencies does not constitute investment advice. Given the highly volatile nature of the cryptocurrency market, investors are encouraged to carefully assess market fluctuations, the fundamentals of projects, and potential financial risks before making any trading decisions.

    A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/02b063d4-732c-424b-aaa3-69b4ec191fdf

    The MIL Network

  • MIL-OSI: WTW Reports Second Quarter 2025 Earnings

    Source: GlobeNewswire (MIL-OSI)

    • Revenue1of $2.3 billion was flat compared to prior-year quarter due to the sale of TRANZACT
    • Organic Revenue growth of 5% for the quarter
    • Diluted Earnings per Share was $3.32 for the quarter, up 144% over prior year
    • Adjusted Diluted Earnings per Share was $2.86 for the quarter, up 20% over prior year2
    • Operating Margin was 16.3% for the quarter, up 690 basis points over prior year
    • Adjusted Operating Margin was 18.5% for the quarter, up 150 basis points from prior year

    LONDON, July 31, 2025 (GLOBE NEWSWIRE) — WTW (NASDAQ: WTW) (the “Company”), a leading global advisory, broking and solutions company, today announced financial results for the second quarter ended June 30, 2025.

    “Our strong second quarter results demonstrate the meaningful progress we’ve made towards advancing our strategy, helping deliver solid topline results, along with margin and earnings growth,” said Carl Hess, WTW’s Chief Executive Officer. “I’m pleased with how our businesses continued to prove their value and resilience this quarter, providing our clients with critical solutions to help manage people, risk and capital amidst economic uncertainty. Building on our strong first-half performance and continued momentum, we enter the second half of 2025 on track to deliver on our financial framework, including mid-single digit organic revenue growth, operating margin expansion, adjusted earnings per share growth, and free-cash-flow margin expansion. I’d like to thank our colleagues for their consistent execution and dedication to delivering for our clients.”

    Consolidated Results

    As reported, USD millions, except %

    Key Metrics Q2-25 Q2-242 Y/Y Change
    Revenue1 $2,261 $2,265 Reported (0)% | CC (1)% | Organic 5%
    Income from Operations $368 $212 74%
    Operating Margin % 16.3% 9.4% 690 bps
    Adjusted Operating Income $419 $385 9%
    Adjusted Operating Margin % 18.5% 17.0% 150 bps
    Net Income $332 $142 134%
    Adjusted Net Income $285 $247 15%
    Diluted EPS $3.32 $1.36 144%
    Adjusted Diluted EPS $2.86 $2.39 20%
    1 The revenue amounts included in this release are presented on a U.S. GAAP basis except where stated otherwise. The segment discussion is on an organic basis.
       
    2 Refer to “WTW Non-GAAP Measures” below and the Q2-25 Supplemental Slides for recast of historical Non-GAAP measures.
       

    Revenue was $2.26 billion for the second quarter of 2025, which was flat compared to $2.27 billion for the same period in the prior year due to the sale of TRANZACT. Excluding the impact of foreign currency, revenue decreased 1%. On an organic basis, revenue increased 5%. See Supplemental Segment Information for additional detail on book-of-business settlements and interest income included in revenue.

    Net Income for the second quarter of 2025 was $332 million compared to Net Income of $142 million in the prior-year second quarter. Adjusted EBITDA for the second quarter was $470 million, or 20.8% of revenue, an increase of 6%, compared to Adjusted EBITDA of $445 million, or 19.6% of revenue, in the prior-year second quarter. The U.S. GAAP tax rate for the second quarter was (6.8)%, and the adjusted income tax rate for the second quarter used in calculating adjusted diluted earnings per share was 18.0%.

    Cash Flow and Capital Allocation

    Cash flows from operating activities were $326 million for the six months ended June 30, 2025, compared to cash flows from operating activities of $431 million for the same prior-year period. Free cash flow for the six months ended June 30, 2025 and 2024 was $217 million and $305 million, respectively, a decrease of $88 million. The decline was primarily due to increased compensation and cash tax payments as well as the absence of cash inflows from TRANZACT following its sale on December 31, 2024, partly offset by lower Transformation program spending and operational improvements. During the quarter ended June 30, 2025, the Company repurchased 1,614,427 of its outstanding shares for $500 million.

    Second Quarter 2025 Segment Highlights

    Health, Wealth & Career (“HWC”)

    As reported, USD millions, except %

    Health, Wealth & Career Q2-25 Q2-24 Y/Y Change
    Total Revenue $1,180 $1,260 Reported (6)% | CC (8)% | Organic 4%
    Operating Income $280 $276 1%
    Operating Margin % 23.8% 21.9% 190 bps

    The HWC segment had revenue of $1.18 billion in the second quarter of 2025, a decrease of 6% (8% decrease constant currency and organic growth of 4%) from $1.26 billion in the prior year due to the sale of TRANZACT. Health delivered organic revenue growth driven by double-digit increases outside North America and solid performance in North America. Wealth generated organic revenue growth from higher levels of Retirement work globally alongside growth in our Investments business from new business wins and product launches. Career had modest revenue growth as healthy demand for advisory project work outside North America was offset by North America client postponement decisions made earlier in the year. Benefits Delivery & Outsourcing revenue was materially flat, as increased project and core administration work within Europe was tempered by lower commission revenue in the Individual Marketplace business compared to the prior year.

    Operating margins in the HWC segment increased 190 basis points from the prior-year second quarter to 23.8%, primarily due to the sale of TRANZACT. Excluding TRANZACT operating margins increased 20 basis points. Please refer to the Supplemental Slides for TRANZACT’s standalone historical financial results.

    Risk & Broking (“R&B”)

    As reported, USD millions, except %

    Risk & Broking Q2-25 Q2-24 Y/Y Change
    Total Revenue $1,047 $979 Reported 7% | CC 6% | Organic 6%
    Operating Income $222 $202 10%
    Operating Margin % 21.2% 20.6% 60 bps

    The R&B segment had revenue of $1.05 billion in the second quarter of 2025, an increase of 7% (6% increase constant currency and organic) from $979 million in the prior year. Corporate Risk & Broking (CRB) had organic revenue growth driven by higher levels of new business activity and strong client retention globally. Insurance Consulting and Technology (ICT) revenue was flat for the quarter as clients managed spend more cautiously amid ongoing economic uncertainty.

    Operating margins in the R&B segment increased 60 basis points from the prior-year second quarter to 21.2%, due primarily to operating leverage driven by strong organic revenue growth and savings from the Transformation program which were partially offset by headwinds from decreased interest income and foreign currency fluctuations.

    Select 2025 Financial Considerations

    Changes to Non-GAAP financial measures:

    • All reported non-GAAP metrics will exclude non-cash net periodic pension and postretirement benefits
    • Free cash flow and free cash flow margin will capture cash outflows for capitalized software costs
    • Refer to Supplemental Slides for recast of historical Non-GAAP measures

    Business mix:

    • TRANZACT business, which contributed $1.14 to adjusted diluted earnings per share in 2024, is no longer part of the business portfolio following the completion of the TRANZACT sale in the fourth quarter of 2024
    • Reinsurance joint venture with Bain Capital expected to be a headwind on adjusted diluted earnings per share of approximately $0.20, which will be partially mitigated by gains from other equity investments, resulting in a net headwind of approximately $0.10 at the interest in earnings of associates level

    Free cash flow:

    • Expect cash outflows in 2025 from the payment of accrued costs related to the Transformation program which concluded in 2024

    Capital allocation:

    • Expect share repurchases of ~$1.5 billion, subject to market conditions and potential capital allocation to organic and inorganic investment opportunities

    Foreign exchange:

    • Expect a foreign currency tailwind on adjusted diluted earnings per share of approximately $0.05 in 2025 at today’s rates

    Adjusted operating margin outlook:

    • ~100 basis points of average annual margin expansion over next 3 years in R&B
    • Incremental annual margin expansion at HWC and enterprise levels

    The 2025 Financial Considerations above include Non-GAAP financial measures. We do not reconcile forward-looking Non-GAAP measures for reasons explained under “WTW Non-GAAP Measures” below.

    Conference Call

    The Company will host a conference call to discuss the financial results for the second quarter 2025. It will be held on Thursday, July 31, 2025, beginning at 9:00 a.m. Eastern Time. A live, listen-only webcast of the conference call will be available on WTW’s website. Analysts and institutional investors may participate in the conference call’s question-and-answer session by registering in advance here. An online replay will be available at investors.wtwco.com shortly after the call concludes.

    About WTW

    At WTW (NASDAQ: WTW), we provide data-driven, insight-led solutions in the areas of people, risk and capital. Leveraging the global view and local expertise of our colleagues serving 140 countries and markets, we help organizations sharpen their strategy, enhance organizational resilience, motivate their workforce and maximize performance. Working shoulder to shoulder with our clients, we uncover opportunities for sustainable success—and provide perspective that moves you. Learn more at www.wtwco.com.

    WTW Non-GAAP Measures

    In order to assist readers of our consolidated financial statements in understanding the core operating results that WTW’s management uses to evaluate the business and for financial planning, we present the following non-GAAP measures: (1) Constant Currency Change, (2) Organic Change, (3) Adjusted Operating Income/Margin, (4) Adjusted EBITDA/Margin, (5) Adjusted Net Income, (6) Adjusted Diluted Earnings Per Share, (7) Adjusted Income Before Taxes, (8) Adjusted Income Taxes/Tax Rate, (9) Free Cash Flow and (10) Free Cash Flow Margin.

    We believe that those measures are relevant and provide pertinent information widely used by analysts, investors and other interested parties in our industry to provide a baseline for evaluating and comparing our operating performance, and in the case of free cash flow, our liquidity results.

    Within the measures referred to as ‘adjusted’, we adjust for significant items which will not be settled in cash, or which we believe to be items that are not core to our current or future operations. Some of these items may not be applicable for the current quarter, however they may be part of our full-year results. Additionally, we have historically adjusted for certain items which are not described below, but for which we may adjust in a future period when applicable. Items applicable to the quarter or full year results, or the comparable periods, include the following:

    • Restructuring costs and transaction and transformation – Management believes it is appropriate to adjust for restructuring costs and transaction and transformation when they relate to a specific significant program with a defined set of activities and costs that are not expected to continue beyond a defined period of time, or significant acquisition-related transaction expenses. We believe the adjustment is necessary to present how the Company is performing, both now and in the future when the incurrence of these costs will have concluded.
    • Provisions for specified litigation matters – We will include provisions for litigation matters which we believe are not representative of our core business operations. Among other things, we determine this by reference to the amount of the loss (net of insurance and other recovery receivables) and by reference to whether the matter relates to an unusual and complex scenario that is not expected to be repeated as part of our ongoing, ordinary business. These amounts are presented net of insurance and other recovery receivables. See the footnotes to the reconciliation tables below for more specificity on the litigation matter excluded from adjusted results.
    • Gains and losses on disposals of operations – Adjustment to remove the gains or losses resulting from disposed operations that have not been classified as discontinued operations.
    • Net periodic pension and postretirement benefits – Adjustment to remove the recognition of net periodic pension and postretirement benefits (including pension settlements), other than service costs. We have included this adjustment as applicable in our prior-period disclosures in order to conform to the current-period presentation.
    • Tax effect of significant adjustments – Relates to the incremental tax expense or benefit resulting from significant or unusual events including significant statutory tax rate changes enacted in material jurisdictions in which we operate, internal reorganizations of ownership of certain businesses that reduced the investment held by our U.S.-controlled subsidiaries and the recovery of certain refunds or payment of taxes related to businesses in which we no longer participate.

    We evaluate our revenue on an as reported (U.S. GAAP), constant currency and organic basis. We believe presenting constant currency and organic information provides valuable supplemental information regarding our comparable results, consistent with how we evaluate our performance internally.

    We consider Constant Currency Change, Organic Change, Adjusted Operating Income/Margin, Adjusted EBITDA/Margin, Adjusted Net Income, Adjusted Diluted Earnings Per Share, Adjusted Income Before Taxes, Adjusted Income Taxes/Tax Rate and Free Cash Flow to be important financial measures, which are used to internally evaluate and assess our core operations and to benchmark our operating and liquidity results against our competitors. These non-GAAP measures are important in illustrating what our comparable operating and liquidity results would have been had we not incurred transaction-related and non-recurring items. Reconciliations of these measures are included in the accompanying tables with the following exception: The Company does not reconcile its forward-looking non-GAAP financial measures to the corresponding U.S. GAAP measures, due to variability and difficulty in making accurate forecasts and projections and/or certain information not being ascertainable or accessible; and because not all of the information, such as foreign currency impacts necessary for a quantitative reconciliation of these forward-looking non-GAAP financial measures to the most directly comparable U.S. GAAP financial measure, is available to the Company without unreasonable efforts. For the same reasons, the Company is unable to address the probable significance of the unavailable information. The Company provides non-GAAP financial measures that it believes will be achieved, however it cannot accurately predict all of the components of the adjusted calculations and the U.S. GAAP measures may be materially different than the non-GAAP measures.

    Our non-GAAP measures and their accompanying definitions are presented as follows:

    Constant Currency Change – Represents the year-over-year change in revenue excluding the impact of foreign currency fluctuations. To calculate this impact, the prior year local currency results are first translated using the current year monthly average exchange rates. The change is calculated by comparing the prior year revenue, translated at the current year monthly average exchange rates, to the current year as reported revenue, for the same period. We believe constant currency measures provide useful information to investors because they provide transparency to performance by excluding the effects that foreign currency exchange rate fluctuations have on period-over-period comparability given volatility in foreign currency exchange markets.

    Organic Change – Excludes the impact of fluctuations in foreign currency exchange rates, as described above and the period-over-period impact of acquisitions and divestitures on current-year revenue. We believe that excluding transaction-related items from our U.S. GAAP financial measures provides useful supplemental information to our investors, and it is important in illustrating what our core operating results would have been had we not included these transaction-related items, since the nature, size and number of these transaction-related items can vary from period to period.

    Adjusted Operating Income/Margin – Income from operations adjusted for amortization, restructuring costs, transaction and transformation and non-recurring items that, in management’s judgment, significantly affect the period-over-period assessment of operating results. Adjusted operating income margin is calculated by dividing adjusted operating income by revenue. We consider adjusted operating income/margin to be important financial measures, which are used internally to evaluate and assess our core operations and to benchmark our operating results against our competitors.

    Adjusted EBITDA/Margin – Net Income adjusted for provision for income taxes, interest expense, depreciation and amortization, restructuring costs, transaction and transformation, gains and losses on disposals of operations, net periodic pension and postretirement benefits, and non-recurring items that, in management’s judgment, significantly affect the period-over-period assessment of operating results. Adjusted EBITDA Margin is calculated by dividing adjusted EBITDA by revenue. We consider adjusted EBITDA/margin to be important financial measures, which are used internally to evaluate and assess our core operations, to benchmark our operating results against our competitors and to evaluate and measure our performance-based compensation plans.

    Adjusted Net Income – Net Income Attributable to WTW adjusted for amortization, restructuring costs, transaction and transformation, gains and losses on disposals of operations, net periodic pension and postretirement benefits, and non-recurring items that, in management’s judgment, significantly affect the period-over-period assessment of operating results and the related tax effect of those adjustments and the tax effects of internal reorganizations. This measure is used solely for the purpose of calculating adjusted diluted earnings per share.

    Adjusted Diluted Earnings Per Share – Adjusted Net Income divided by the weighted-average number of ordinary shares, diluted. Adjusted diluted earnings per share is used to internally evaluate and assess our core operations and to benchmark our operating results against our competitors.

    Adjusted Income Before Taxes – Income from operations before income taxes and interest in earnings of associates adjusted for amortization, restructuring costs, transaction and transformation, gains and losses on disposals of operations, net periodic pension and postretirement benefits, and non-recurring items that, in management’s judgment, significantly affect the period-over-period assessment of operating results. Adjusted income before taxes is used solely for the purpose of calculating the adjusted income tax rate.

    Adjusted Income Taxes/Tax Rate – Provision for income taxes adjusted for taxes on certain items of amortization, restructuring costs, transaction and transformation, gains and losses on disposals of operations, net periodic pension and postretirement benefits, the tax effects of significant adjustments and non-recurring items that, in management’s judgment, significantly affect the period-over-period assessment of operating results, divided by adjusted income before taxes. Adjusted income taxes is used solely for the purpose of calculating the adjusted income tax rate. Management believes that the adjusted income tax rate presents a rate that is more closely aligned to the rate that we would incur if not for the reduction of pre-tax income for the adjusted items and the tax effects of internal reorganizations, which are not core to our current and future operations.

    Free Cash Flow – Cash flows from operating activities less cash used to purchase fixed assets and software. Free Cash Flow is a liquidity measure and is not meant to represent residual cash flow available for discretionary expenditures. Management believes that free cash flow presents the core operating performance and cash-generating capabilities of our business operations. As a result of our change in presentation, free cash flow for the prior period has been adjusted to conform to the current period, which includes the deduction of our capitalized software costs.

    Free Cash Flow Margin – Free Cash Flow as a percentage of revenue, which represents how much of revenue would be realized on a cash basis. We consider this measure to be a meaningful metric for tracking cash conversion on a year-over-year basis due to the non-cash nature of our pension income, which is included in our GAAP and Non-GAAP earnings metrics presented herein.

    These non-GAAP measures are not defined in the same manner by all companies and may not be comparable to other similarly titled measures of other companies. Non-GAAP measures should be considered in addition to, and not as a substitute for, the information contained within our condensed consolidated financial statements.

    WTW Forward-Looking Statements

    This document contains ‘forward-looking statements’ within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934, which are intended to be covered by the safe harbors created by those laws. These forward-looking statements include information about possible or assumed future results of our operations. All statements, other than statements of historical facts, that address activities, events or developments that we expect or anticipate may occur in the future, including such things as: our outlook; the potential impact of natural or man-made disasters like health pandemics and other world health crises; future capital expenditures; ongoing working capital efforts; future share repurchases; financial results (including our revenue, costs or margins) and the impact of changes to tax laws on our financial results; existing and evolving business strategies including those related to acquisitions and dispositions; demand for our services and competitive strengths; strategic goals; the benefits of new initiatives; growth of our business and operations; the sustained health of our product, service, transaction, client, and talent assessment and management pipelines; our ability to successfully manage ongoing leadership, organizational and technology changes, including investments in improving systems and processes; our ability to implement and realize anticipated benefits of any cost-savings initiatives generated from our completed multi-year operational transformation program or other expense savings initiatives; our recognition of future impairment charges; and plans and references to future performance, including our future financial and operating results, short-term and long-term financial goals, plans, objectives, expectations and intentions, including with respect to free cash flow generation, adjusted net revenue, adjusted operating margin and adjusted earnings per share, are forward-looking statements. Also, when we use words such as ‘may’, ‘will’, ‘would’, ‘anticipate’, ‘believe’, ‘estimate’, ‘expect’, ‘intend’, ‘plan’, ‘continues’, ‘seek’, ‘target’, ‘goal’, ‘focus’, ‘probably’, or similar expressions, we are making forward-looking statements. Such statements are based upon the current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. All forward-looking disclosure is speculative by its nature.

    There are important risks, uncertainties, events and factors that could cause our actual results or performance to differ materially from those in the forward-looking statements contained in this document, including the following: our ability to successfully establish, execute and achieve our global business strategy as it evolves; our ability to fully realize the anticipated benefits of our growth strategy, including inorganic growth through acquisitions; our ability to achieve our short-term and long-term financial goals, such as with respect to our cash flow generation, and the timing with respect to such achievement; the risks related to changes in general economic conditions, business and political conditions, changes in the financial markets, inflation, credit availability, increased interest rates, changes in trade policies, increased tariffs and retaliatory actions; the risks to our short-term and long-term financial goals from any of the risks or uncertainties set forth herein; the risks relating to the adverse impacts of macroeconomic trends, including those relating to changes in trade policies and tariffs, as well as political events, war, such as the Russia-Ukraine and Israel-Hamas wars, and other international disputes, terrorism, natural disasters, public health issues and other business interruptions on the global economy and capital markets, such as uncertainty in the global markets, inflation, changes in interest rates and recessionary trends, changes in spending by government agencies and contractors, which could have a material adverse effect on our business, financial condition, results of operations and long-term goals; our ability to successfully hedge against fluctuations in foreign currency rates; the risks relating to the adverse impacts of natural or man-made disasters such as health pandemics and other world health crises on the demand for our products and services, our cash flows and our business operations; material interruptions to or loss of our information processing capabilities, or failure to effectively maintain and upgrade our information technology resources and systems and related risks of cybersecurity breaches or incidents; our ability to comply with complex and evolving regulations related to data privacy, cybersecurity and artificial intelligence; the risks relating to the transitional arrangements in effect subsequent to our completed sale of TRANZACT; significant competition that we face and the potential for loss of market share and/or profitability; the impact of seasonality and differences in timing of renewals and non-recurring revenue increases from disposals and book-of-business sales; the insufficiency of client data protection, potential breaches of information systems or insufficient safeguards against cybersecurity breaches or incidents; the risk of increased liability or new legal claims arising from our new and existing products and services, and expectations, intentions and outcomes relating to outstanding litigation; the risk of substantial negative outcomes on existing or potential future litigation or investigation matters; changes in the regulatory environment in which we operate, including, among other risks, the impacts of pending competition law and regulatory investigations; various claims, government inquiries or investigations or the potential for regulatory action; our ability to make divestitures or acquisitions, including our ability to integrate or manage acquired businesses or carve-out businesses to be disposed, as well as our ability to identify and successfully execute on opportunities for strategic collaboration; our ability to integrate direct-to-consumer sales and marketing solutions with our existing offerings and solutions; our ability to successfully manage ongoing organizational changes, including as a result of our recently-completed multi-year operational transformation program, investments in improving systems and processes, and in connection with our acquisition and divestiture activities; disasters or business continuity problems; our ability to successfully enhance our billing, collection and other working capital efforts, and thereby increase our free cash flow; our ability to properly identify and manage conflicts of interest; reputational damage, including from association with third parties; reliance on third-party service providers and suppliers; risks relating to changes in our management structures and in senior leadership; the loss of key employees or a large number of employees and rehiring rates; our ability to maintain our corporate culture; doing business internationally, including the impact of global trade policies and retaliatory considerations as well as foreign currency exchange rates; compliance with extensive government regulation; the risk of sanctions imposed by governments, or changes to associated sanction regulations (such as sanctions imposed on Russia) and related counter-sanctions; our ability to effectively apply technology, data and analytics solutions, including through the use of artificial intelligence, for internal operations, maintaining industry standards, meeting client preferences and gaining competitive advantage, among other things; changes and developments in the insurance industry or the U.S. healthcare system, including those related to Medicare, and any other changes and developments in legal, regulatory, economic, business or operational conditions that could impact our businesses; the inability to protect our intellectual property rights, or the potential infringement upon the intellectual property rights of others; fluctuations in our pension assets and liabilities and related changes in pension income, including as a result of, related to, or derived from movements in the interest rate environment, investment returns, inflation, or changes in other assumptions that are used to estimate our benefit obligations and their effect on adjusted earnings per share; our capital structure, including indebtedness amounts, the limitations imposed by the covenants in the documents governing such indebtedness and the maintenance of the financial and disclosure controls and procedures of each; our ability to obtain financing on favorable terms or at all; adverse changes in our credit ratings; the impact of recent or potential changes to U.S. or foreign laws, and the enactment of additional, or the revision of existing, state, federal, and/or foreign laws and regulations, recent judicial decisions and development of case law, other regulations and any policy changes and legislative actions, including those that may impose additional excise taxes or impact our effective tax rate; U.S. federal income tax consequences to U.S. persons owning at least 10% of our shares; changes in accounting principles, estimates or assumptions; our recognition of future impairment charges; risks relating to or arising from environmental, social and governance (‘ESG’) practices; fluctuation in revenue against our relatively fixed or higher-than-expected expenses; the risk that investment levels increase; the laws of Ireland being different from the laws of the U.S. and potentially affording less protections to the holders of our securities; and our holding company structure potentially preventing us from being able to receive dividends or other distributions in needed amounts from our subsidiaries.

    The foregoing list of factors is not exhaustive and new factors may emerge from time to time that could also affect actual performance and results. For more information, please see Part I, Item 1A in our Annual Report on Form 10-K, and our subsequent filings with the SEC. Copies are available online at http://www.sec.gov or www.wtwco.com.

    Although we believe that the assumptions underlying our forward-looking statements are reasonable, any of these assumptions, and therefore also the forward-looking statements based on these assumptions, could themselves prove to be inaccurate. Given the significant uncertainties inherent in the forward-looking statements included in this document, our inclusion of this information is not a representation or guarantee by us that our objectives and plans will be achieved.

    Our forward-looking statements speak only as of the date made and we will not update these forward-looking statements unless the securities laws require us to do so. With regard to these risks, uncertainties and assumptions, the forward-looking events discussed in this document may not occur, and we caution you against unduly relying on these forward-looking statements.

    Contact

    INVESTORS
    Claudia De La Hoz | Claudia.Delahoz@wtwco.com

    WTW
    Supplemental Segment Information
    (In millions of U.S. dollars)
    (Unaudited)
         
    REVENUE    
                  Components of Revenue Change(i)
                        Less:       Less:    
        Three Months Ended
    June 30,
        As Reported   Currency   Constant Currency   Acquisitions/   Organic
        2025     2024     % Change   Impact   Change   Divestitures   Change
                                     
    Health, Wealth & Career                                
    Revenue excluding interest income   $ 1,173     $ 1,251     (6)%   1%   (7)%   (12)%   4%
    Interest income     7       9                      
    Total     1,180       1,260     (6)%   1%   (8)%   (12)%   4%
                                     
    Risk & Broking                                
    Revenue excluding interest income   $ 1,024     $ 950     8%   1%   6%   0%   6%
    Interest income     23       29                      
    Total     1,047       979     7%   1%   6%   0%   6%
                                     
    Segment Revenue   $ 2,227     $ 2,239     (1)%   1%   (2)%   (7)%   5%
    Corporate, reimbursable expenses and other     24       20                      
    Interest income     10       6                      
    Revenue   $ 2,261     $ 2,265     0%   1%   (1)%   (6)%   5%(ii)
                  Components of Revenue Change(i)
                        Less:       Less:    
        Six Months Ended June 30,     As Reported   Currency   Constant Currency   Acquisitions/   Organic
        2025     2024     % Change   Impact   Change   Divestitures   Change
                                     
    Health, Wealth & Career                                
    Revenue excluding interest income   $ 2,331     $ 2,578     (10)%   0%   (10)%   (13)%   3%
    Interest income     14       18                      
    Total     2,345       2,596     (10)%   0%   (10)%   (13)%   3%
                                     
    Risk & Broking                                
    Revenue excluding interest income   $ 2,029     $ 1,900     7%   0%   7%   0%   7%
    Interest income     45       57                      
    Total     2,074       1,957     6%   0%   6%   0%   6%
                                     
    Segment Revenue   $ 4,419     $ 4,553     (3)%   0%   (3)%   (7)%   5%
    Corporate, reimbursable expenses and other     45       41                      
    Interest income     20       12                      
    Revenue   $ 4,484     $ 4,606     (3)%   0%   (3)%   (7)%   5%(ii)
    (i) Components of revenue change may not add due to rounding.
    (ii) Interest income did not contribute to organic change for the three and six months ended June 30, 2025.


    BOOK-OF-BUSINESS SETTLEMENTS AND INTEREST INCOME

        Three Months Ended June 30,
        HWC   R&B   Corporate   Total
        2025   2024   2025   2024   2025   2024   2025   2024
    Book-of-business settlements   $     $     $ 3     $ 2     $     $     $ 3     $ 2  
    Interest income     7       9       23       29       10       6       40       44  
    Total   $ 7     $ 9     $ 26     $ 31     $ 10     $ 6     $ 43     $ 46  
        Six Months Ended June 30,
        HWC   R&B   Corporate   Total
        2025   2024   2025   2024   2025   2024   2025   2024
    Book-of-business settlements   $ 2     $     $ 3     $ 4     $     $     $ 5     $ 4  
    Interest income     14       18       45       57       20       12       79       87  
    Total   $ 16     $ 18     $ 48     $ 61     $ 20     $ 12     $ 84     $ 91  


    SEGMENT OPERATING INCOME
    (i)

        Three Months Ended
    June 30,
        2025   2024
                 
    Health, Wealth & Career   $ 280     $ 276  
    Risk & Broking     222       202  
    Segment Operating Income   $ 502     $ 478  
        Six Months Ended
    June 30,
        2025   2024
                 
    Health, Wealth & Career   $ 591     $ 612  
    Risk & Broking     448       405  
    Segment Operating Income   $ 1,039     $ 1,017  
    (i) Segment operating income excludes certain costs, including amortization of intangibles, restructuring costs, transaction and transformation expenses, certain litigation provisions, and to the extent that the actual expense based upon which allocations are made differs from the forecast/budget amount, a reconciling item will be created between internally-allocated expenses and the actual expenses reported for U.S. GAAP purposes.


    SEGMENT OPERATING MARGINS

        Three Months Ended June 30,
        2025   2024
    Health, Wealth & Career   23.8%   21.9%
    Risk & Broking   21.2%   20.6%
        Six Months Ended June 30,
        2025   2024
    Health, Wealth & Career   25.2%   23.6%
    Risk & Broking   21.6%   20.7%


    RECONCILIATIONS OF SEGMENT OPERATING INCOME TO INCOME FROM OPERATIONS BEFORE INCOME TAXES

        Three Months Ended June 30,
        2025   2024
                 
    Segment Operating Income   $ 502     $ 478  
    Amortization     (49 )     (60 )
    Restructuring costs           (3 )
    Transaction and transformation(i)     (2 )     (97 )
    Unallocated, net(ii)     (83 )     (106 )
    Income from Operations     368       212  
    Interest expense     (64 )     (68 )
    Other income, net     9       23  
    Income from operations before income taxes and interest in earnings of associates   $ 313     $ 167  
        Six Months Ended June 30,
        2025   2024
                 
    Segment Operating Income   $ 1,039     $ 1,017  
    Amortization     (97 )     (120 )
    Restructuring costs           (21 )
    Transaction and transformation(i)     (2 )     (222 )
    Unallocated, net(ii)     (140 )     (162 )
    Income from Operations     800       492  
    Interest expense     (129 )     (132 )
    Other (loss)/income, net     (55 )     49  
    Income from operations before income taxes and interest in earnings of associates   $ 616     $ 409  
    (i) In addition to legal fees and other transaction costs, includes primarily consulting fees and compensation costs related to the Transformation program.
    (ii)  Includes certain costs, primarily related to corporate functions which are not directly related to the segments, and certain differences between budgeted expenses determined at the beginning of the year and actual expenses that we report for U.S. GAAP purposes.
    WTW
    Reconciliations of Non-GAAP Measures
    (In millions of U.S. dollars, except per share data)
    (Unaudited)
     
    RECONCILIATIONS OF NET INCOME ATTRIBUTABLE TO WTW TO ADJUSTED DILUTED EARNINGS PER SHARE
           
        Three Months Ended June 30,
        2025   2024
                 
    Net income attributable to WTW   $ 331     $ 141  
    Adjusted for certain items:            
    Amortization     49       60  
    Restructuring costs           3  
    Transaction and transformation     2       97  
    Provision for specified litigation matter (i)           13  
    Net periodic pension and postretirement benefits     (13 )     (21 )
    Tax effect on certain items listed above(ii)     (10 )     (39 )
    Tax effect of significant adjustments     (74 )     (7 )
    Adjusted Net Income   $ 285     $ 247  
                 
    Weighted-average ordinary shares, diluted     100       103  
                 
    Diluted Earnings Per Share   $ 3.32     $ 1.36  
    Adjusted for certain items:(iii)            
    Amortization     0.49       0.58  
    Restructuring costs           0.03  
    Transaction and transformation     0.02       0.94  
    Provision for specified litigation matter (i)           0.13  
    Net periodic pension and postretirement benefits     (0.13 )     (0.20 )
    Tax effect on certain items listed above(ii)     (0.10 )     (0.38 )
    Tax effect of significant adjustments     (0.74 )     (0.07 )
    Adjusted Diluted Earnings Per Share(iii)   $ 2.86     $ 2.39  
        Six Months Ended June 30,
        2025   2024
                 
    Net income attributable to WTW   $ 566     $ 331  
    Adjusted for certain items:            
    Amortization     97       120  
    Restructuring costs           21  
    Transaction and transformation     2       222  
    Provision for specified litigation matter(i)           13  
    Net periodic pension and postretirement benefits     62       (43 )
    Gain on disposal of operations     (14 )      
    Tax effect on certain items listed above(ii)     (38 )     (85 )
    Tax effect of significant adjustments     (74 )     (7 )
    Adjusted Net Income   $ 601     $ 572  
                 
    Weighted-average ordinary shares, diluted     100       104  
                 
    Diluted Earnings Per Share   $ 5.64     $ 3.20  
    Adjusted for certain items:(iii)            
    Amortization     0.97       1.16  
    Restructuring costs           0.20  
    Transaction and transformation     0.02       2.14  
    Provision for specified litigation matter(i)           0.13  
    Net periodic pension and postretirement benefits     0.62       (0.42 )
    Gain on disposal of operations     (0.14 )      
    Tax effect on certain items listed above(ii)     (0.38 )     (0.82 )
    Tax effect of significant adjustments     (0.74 )     (0.07 )
    Adjusted Diluted Earnings Per Share(iii)   $ 5.99     $ 5.53  
    (i) Represents a provision related to potential litigation arising out of a structured insurance program originally placed for a client over 15 years ago. The program is of a type and complexity that was highly bespoke to the client and for that reason is unlikely to be exactly replicated elsewhere. Because of this, while we do not believe the potential litigation is material, we believe excluding this matter from adjusted results makes results more comparable from period to period and more representative of our core business operations.
    (ii) The tax effect was calculated using an effective tax rate for each item.
    (iii) Per share values and totals may differ due to rounding.


    RECONCILIATIONS OF NET INCOME TO ADJUSTED EBITDA

        Three Months Ended June 30,  
        2025   2024  
                   
    Net Income   $ 332   14.7% $ 142   6.3%
    (Benefit from)/provision for income taxes     (21 )     26    
    Interest expense     64       68    
    Depreciation     57       57    
    Amortization     49       60    
    Restructuring costs           3    
    Transaction and transformation     2       97    
    Provision for specified litigation matter(i)           13    
    Net periodic pension and postretirement benefits     (13 )     (21 )  
    Adjusted EBITDA and Adjusted EBITDA Margin   $ 470   20.8% $ 445   19.6%
        Six Months Ended June 30,  
        2025   2024  
                   
    Net Income   $ 571   12.7% $ 336   7.3%
    Provision for income taxes     44       74    
    Interest expense     129       132    
    Depreciation     111       116    
    Amortization     97       120    
    Restructuring costs           21    
    Transaction and transformation     2       222    
    Provision for specified litigation matter(i)           13    
    Net periodic pension and postretirement benefits     62       (43 )  
    Gain on disposal of operations     (14 )        
    Adjusted EBITDA and Adjusted EBITDA Margin   $ 1,002   22.3% $ 991   21.5%
    (i) Represents a provision related to potential litigation arising out of a structured insurance program originally placed for a client over 15 years ago. The program is of a type and complexity that was highly bespoke to the client and for that reason is unlikely to be exactly replicated elsewhere. Because of this, while we do not believe the potential litigation is material, we believe excluding this matter from adjusted results makes results more comparable from period to period and more representative of our core business operations.


    RECONCILIATIONS OF INCOME FROM OPERATIONS TO ADJUSTED OPERATING INCOME

        Three Months Ended June 30,  
        2025   2024  
                   
    Income from operations and Operating margin   $ 368   16.3% $ 212   9.4%
    Adjusted for certain items:              
    Amortization     49       60    
    Restructuring costs           3    
    Transaction and transformation     2       97    
    Provision for specified litigation matter(i)           13    
    Adjusted operating income and Adjusted operating income margin   $ 419   18.5% $ 385   17.0%
        Six Months Ended June 30,  
        2025   2024  
                   
    Income from operations and Operating margin   $ 800   17.8% $ 492   10.7%
    Adjusted for certain items:              
    Amortization     97       120    
    Restructuring costs           21    
    Transaction and transformation     2       222    
    Provision for specified litigation matter(i)           13    
    Adjusted operating income and Adjusted operating income margin   $ 899   20.0% $ 868   18.8%
    (i) Represents a provision related to potential litigation arising out of a structured insurance program originally placed for a client over 15 years ago. The program is of a type and complexity that was highly bespoke to the client and for that reason is unlikely to be exactly replicated elsewhere. Because of this, while we do not believe the potential litigation is material, we believe excluding this matter from adjusted results makes results more comparable from period to period and more representative of our core business operations.


    RECONCILIATIONS OF GAAP INCOME TAXES/TAX RATE TO ADJUSTED INCOME TAXES/TAX RATE

        Three Months Ended June 30,
        2025   2024
                 
    Income from operations before income taxes and interest in earnings of associates   $ 313     $ 167  
                 
    Adjusted for certain items:            
    Amortization     49       60  
    Restructuring costs           3  
    Transaction and transformation     2       97  
    Provision for specified litigation matter(i)           13  
    Net periodic pension and postretirement benefits     (13 )     (21 )
    Adjusted income before taxes   $ 351     $ 319  
                 
    (Benefit from)/provision for income taxes   $ (21 )   $ 26  
    Tax effect on certain items listed above(ii)     10       39  
    Tax effect of significant adjustments     74       7  
    Adjusted income taxes   $ 63     $ 72  
                 
    U.S. GAAP tax rate     (6.8 )%     15.6 %
    Adjusted income tax rate     18.0 %     22.4 %
        Six Months Ended June 30,
        2025   2024
                 
    Income from operations before income taxes and interest in earnings of associates   $ 616     $ 409  
                 
    Adjusted for certain items:            
    Amortization     97       120  
    Restructuring costs           21  
    Transaction and transformation     2       222  
    Provision for specified litigation matter(i)           13  
    Net periodic pension and postretirement benefits     62       (43 )
    Gain on disposal of operations     (14 )      
    Adjusted income before taxes   $ 763     $ 742  
                 
    Provision for income taxes   $ 44     $ 74  
    Tax effect on certain items listed above(ii)     38       85  
    Tax effect of significant adjustments     74       7  
    Adjusted income taxes   $ 156     $ 166  
                 
    U.S. GAAP tax rate     7.1 %     18.1 %
    Adjusted income tax rate     20.5 %     22.3 %
    (i) Represents a provision related to potential litigation arising out of a structured insurance program originally placed for a client over 15 years ago. The program is of a type and complexity that was highly bespoke to the client and for that reason is unlikely to be exactly replicated elsewhere. Because of this, while we do not believe the potential litigation is material, we believe excluding this matter from adjusted results makes results more comparable from period to period and more representative of our core business operations.
    (ii) The tax effect was calculated using an effective tax rate for each item.


    RECONCILIATION OF CASH FLOWS FROM OPERATING ACTIVITIES TO FREE CASH FLOW

        Six Months Ended June 30,
        2025   2024
                 
    Cash flows from operating activities   $ 326     $ 431  
    Less: Additions to fixed assets and software     (109 )     (126 )
    Free Cash Flow   $ 217     $ 305  
    WILLIS TOWERS WATSON PUBLIC LIMITED COMPANY
    Condensed Consolidated Statements of Income
    (In millions of U.S. dollars, except per share data)
    (Unaudited)
                 
        Three Months Ended
    June 30,
      Six Months Ended
    June 30,
        2025   2024   2025   2024
    Revenue   $ 2,261     $ 2,265     $ 4,484     $ 4,606  
                             
    Costs of providing services                        
    Salaries and benefits     1,449       1,397       2,773       2,739  
    Other operating expenses     336       439       701       896  
    Depreciation     57       57       111       116  
    Amortization     49       60       97       120  
    Restructuring costs           3             21  
    Transaction and transformation     2       97       2       222  
    Total costs of providing services     1,893       2,053       3,684       4,114  
                             
    Income from operations     368       212       800       492  
                             
    Interest expense     (64 )     (68 )     (129 )     (132 )
    Other income/(loss), net     9       23       (55 )     49  
                             
    INCOME FROM OPERATIONS BEFORE INCOME TAXES AND INTEREST IN EARNINGS OF ASSOCIATES   313       167       616       409  
                             
    Benefit from/(provision for) income taxes     21       (26 )     (44 )     (74 )
                             
    INCOME FROM OPERATIONS BEFORE INTEREST IN EARNINGS OF ASSOCIATES   334       141       572       335  
                             
    Interest in earnings of associates, net of tax     (2 )     1       (1 )     1  
                             
    NET INCOME   332       142       571       336  
                             
    Income attributable to non-controlling interests     (1 )     (1 )     (5 )     (5 )
                             
    NET INCOME ATTRIBUTABLE TO WTW   $ 331     $ 141     $ 566     $ 331  
                             
    EARNINGS PER SHARE                        
    Basic earnings per share   $ 3.34     $ 1.37     $ 5.68     $ 3.22  
    Diluted earnings per share   $ 3.32     $ 1.36     $ 5.64     $ 3.20  
                             
    Weighted-average ordinary shares, basic     99       103       100       103  
    Weighted-average ordinary shares, diluted     100       103       100       104  
    WILLIS TOWERS WATSON PUBLIC LIMITED COMPANY
    Condensed Consolidated Balance Sheets
    (In millions of U.S. dollars, except share data)
    (Unaudited)
                 
        June 30,   December 31,
        2025   2024
    ASSETS            
    Cash and cash equivalents   $ 1,963     $ 1,890  
    Fiduciary assets     10,720       9,504  
    Accounts receivable, net     2,364       2,494  
    Prepaid and other current assets     558       1,217  
    Total current assets     15,605       15,105  
    Fixed assets, net     696       661  
    Goodwill     8,938       8,799  
    Other intangible assets, net     1,232       1,295  
    Right-of-use assets     495       485  
    Pension benefits assets     578       530  
    Other non-current assets     934       806  
    Total non-current assets     12,873       12,576  
    TOTAL ASSETS   $ 28,478     $ 27,681  
    LIABILITIES AND EQUITY            
    Fiduciary liabilities   $ 10,720     $ 9,504  
    Deferred revenue and accrued expenses     1,726       2,211  
    Current debt     549        
    Current lease liabilities     124       118  
    Other current liabilities     752       765  
    Total current liabilities     13,871       12,598  
    Long-term debt     4,762       5,309  
    Liability for pension benefits     550       615  
    Provision for liabilities     369       341  
    Long-term lease liabilities     500       502  
    Other non-current liabilities     246       299  
    Total non-current liabilities     6,427       7,066  
    TOTAL LIABILITIES     20,298       19,664  
    COMMITMENTS AND CONTINGENCIES            
    EQUITY(i)            
    Additional paid-in capital     11,012       10,989  
    (Accumulated deficit)/retained earnings     (206 )     109  
    Accumulated other comprehensive loss, net of tax     (2,706 )     (3,158 )
    Total WTW shareholders’ equity     8,100       7,940  
    Non-controlling interests     80       77  
    Total Equity     8,180       8,017  
    TOTAL LIABILITIES AND EQUITY   $ 28,478     $ 27,681  
         
    (i) Equity includes (a) Ordinary shares $0.000304635 nominal value; Authorized 1,510,003,775; Issued 97,853,208 (2025) and 99,805,780 (2024); Outstanding 97,853,208 (2025) and 99,805,780 (2024) and (b) Preference shares, $0.000115 nominal value; Authorized 1,000,000,000 and Issued none in 2025 and 2024.
    WILLIS TOWERS WATSON PUBLIC LIMITED COMPANY
    Condensed Consolidated Statements of Cash Flows
    (In millions of U.S. dollars)
    (Unaudited)
           
        Six Months Ended June 30,
        2025   2024
    CASH FLOWS FROM OPERATING ACTIVITIES            
    NET INCOME   $ 571     $ 336  
    Adjustments to reconcile net income to total net cash from operating activities:            
    Depreciation     111       116  
    Amortization     97       120  
    Non-cash restructuring charges           12  
    Non-cash lease expense     47       49  
    Net periodic cost/(benefit) of defined benefit pension plans     94       (11 )
    Provision for doubtful receivables from clients     7       10  
    Benefit from deferred income taxes     (70 )     (25 )
    Share-based compensation     68       54  
    Net gain on disposal of operations     (14 )      
    Non-cash foreign exchange loss/(gain)     30       (12 )
    Other, net     18       22  
    Changes in operating assets and liabilities, net of effects from purchase of subsidiaries:            
    Accounts receivable     225       118  
    Other assets     (99 )     (161 )
    Other liabilities     (778 )     (242 )
    Provisions     19       45  
    Net cash from operating activities     326       431  
                 
    CASH FLOWS FROM/(USED IN) INVESTING ACTIVITIES            
    Additions to fixed assets and software     (109 )     (126 )
    Acquisitions of operations, net of cash acquired     (14 )     (18 )
    Contributions to investments in associates     (8 )      
    Net proceeds from sale of operations     836        
    Net purchases of held-to-maturity securities     (50 )      
    Net purchases of available-for-sale securities     (43 )     (14 )
    Net cash from/(used in) investing activities     612       (158 )
                 
    CASH FLOWS (USED IN)/FROM FINANCING ACTIVITIES            
    Senior notes issued           746  
    Debt issuance costs           (9 )
    Repayments of debt     (2 )     (652 )
    Repurchase of shares     (700 )     (301 )
    Net proceeds from fiduciary funds held for clients     141       783  
    Payments of deferred and contingent consideration related to acquisitions     (15 )      
    Cash paid for employee taxes on withholding shares     (43 )     (24 )
    Dividends paid     (179 )     (176 )
    Acquisitions of and dividends paid to non-controlling interests     (2 )     (3 )
    Net cash (used in)/from financing activities     (800 )     364  
                 
    INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH     138       637  
    Effect of exchange rate changes on cash, cash equivalents and restricted cash     207       (53 )
    CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD (i)     4,998       3,792  
    CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD (i)   $ 5,343     $ 4,376  
         
    (i) The amounts of cash, cash equivalents and restricted cash, their respective classification on the condensed consolidated balance sheets, as well as their respective portions of the increase or decrease in cash, cash equivalents and restricted cash for each of the periods presented have been included in the Supplemental Disclosure of Cash Flow Information section.

    SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

        Six Months Ended June 30,
        2025   2024
                 
    Supplemental disclosures of cash flow information:            
    Cash and cash equivalents   $ 1,963     $ 1,247  
    Fiduciary funds (included in fiduciary assets)     3,380       3,129  
    Total cash, cash equivalents and restricted cash   $ 5,343     $ 4,376  
                 
    Decrease in cash, cash equivalents and other restricted cash   $ (3 )   $ (154 )
    Increase in fiduciary funds     141       791  
    Total (i)   $ 138     $ 637  
    (i) Does not include the effect of exchange rate changes on cash, cash equivalents and restricted cash.

    The MIL Network

  • MIL-OSI: Gilat to Present at the 28th Annual Oppenheimer Technology, Internet & Communications Virtual Conference on Monday, August 11

    Source: GlobeNewswire (MIL-OSI)

    PETAH TIKVA, Israel, July 31, 2025 (GLOBE NEWSWIRE) — Gilat Satellite Networks Ltd. (Nasdaq: GILT, TASE: GILT), a worldwide leader in satellite networking technology, solutions, and services, today announced it will be presenting at the 28th Annual Oppenheimer Technology, Internet & Communications Virtual Conference on Monday, August 11, 2025.

    Mr. Adi Sfadia, the Company’s CEO, will be available for one-on-one meetings with investors on August 11 and 12. The company will give a presentation to conference participants on August 11, 2025, at 9:55 am Eastern Time.  

    To schedule a meeting with Mr. Sfadia, please contact an Oppenheimer representative or email a request to the Gilat investor relations team at GilatIR@allianceadvisors.com.

    About Gilat

    Gilat Satellite Networks Ltd. (NASDAQ: GILT, TASE: GILT) is a leading global provider of satellite-based broadband communications. With over 35 years of experience, we develop and deliver deep technology solutions for satellite, ground, and new space connectivity, offering next-generation solutions and services for critical connectivity across commercial and defense applications. We believe in the right of all people to be connected and are united in our resolution to provide communication solutions to all reaches of the world.

    Together with our wholly owned subsidiaries, Gilat Wavestream, Gilat DataPath, and Gilat Stellar Blu, we offer integrated, high-value solutions supporting multi-orbit constellations, Very High Throughput Satellites (VHTS), and Software-Defined Satellites (SDS) via our Commercial and Defense Divisions. Our comprehensive portfolio is comprised of a cloud-based platform and modems; high-performance satellite terminals; advanced Satellite On-the-Move (SOTM) antennas and ESAs; highly efficient, high-power Solid State Power Amplifiers (SSPA) and Block Upconverters (BUC) and includes integrated ground systems for commercial and defense markets, field services, network management software, and cybersecurity services.

    Gilat’s products and tailored solutions support multiple applications including government and defense, IFC and mobility, broadband access, cellular backhaul, enterprise, aerospace, broadcast, and critical infrastructure clients all while meeting the most stringent service level requirements. For more information, please visit: http://www.gilat.com

    Certain statements made herein that are not historical are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. The words “estimate”, “project”, “intend”, “expect”, “believe” and similar expressions are intended to identify forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties. Many factors could cause the actual results, performance or achievements of Gilat to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, among others, changes in general economic and business conditions, inability to maintain market acceptance to Gilat’s products, inability to timely develop and introduce new technologies, products and applications, rapid changes in the market for Gilat’s products, loss of market share and pressure on prices resulting from competition, introduction of competing products by other companies, inability to manage growth and expansion, loss of key OEM partners, inability to attract and retain qualified personnel, inability to protect the Company’s proprietary technology and risks associated with Gilat’s international operations and its location in Israel, including those related to Israel’s preemptive strike against Iran’s nuclear project and the continued hostilities between Israel and Iran, and the hostilities between Israel and Hamas. For additional information regarding these and other risks and uncertainties associated with Gilat’s business, reference is made to Gilat’s reports filed from time to time with the Securities and Exchange Commission. We undertake no obligation to update or revise any forward-looking statements for any reason.

    Contact:
    Gilat Satellite Networks
    Hagay Katz, Chief Products and Marketing Officer
    hagayk@gilat.com

    Alliance Advisors:
    GilatIR@allianceadvisors.com
    Phone: +1 212 838 3777

    The MIL Network

  • MIL-OSI: 2X acquires Outbound Funnel, expanding comprehensive RevOps and AI-powered go-to-market technology services leadership

    Source: GlobeNewswire (MIL-OSI)

    MALVERN, Pa., July 31, 2025 (GLOBE NEWSWIRE) — 2X, the leader in subscription-based go-to-market services, today announced the acquisition of Outbound Funnel, a premier revenue operations consultancy specializing in AI-powered sales engagement and revenue intelligence platforms across the modern GTM technology stack. As the longest-standing partner for leading platforms including Gong, Outreach, SalesLoft, and 6sense, Outbound Funnel brings unparalleled expertise in implementation, optimization, and managed services. This strategic acquisition significantly expands 2X’s revenue operations capabilities and reinforces its position as the definitive subscription-based services partner for comprehensive GTM transformation.

    The acquisition brings together complementary expertise spanning the entire GTM technology ecosystem. Outbound Funnel has established itself as the first and longest-standing implementation partner across multiple sales engagement platforms, with over 800 Outreach implementations, 600+ Gong deployments, and hundreds of SalesLoft implementations. The company’s deep cross-platform expertise enables complex migrations and integrations, including transformative projects like consolidating eight separate instances into a unified system for enterprise clients like Intercom, Siemens, Affirm, Asana, and Expensify.

    Expanding Revenue Operations Excellence

    This acquisition builds on 2X’s strategic investments in revenue operations, including the recent acquisition of Intelligent Demand, which brought best-in-class RevOps capabilities to the 2X portfolio. Together, these acquisitions position 2X as the definitive partner for organizations seeking comprehensive revenue operations advisory and managed services.

    “Revenue operations has become the strategic backbone of modern GTM organizations, and AI-powered sales engagement platforms are transforming how these teams operate,” said Dom Colasante, CEO of 2X. “Outbound Funnel’s position as the first and longest-standing partner across leading sales engagement platforms, combined with their expertise in AI-driven revenue intelligence and complex platform migrations, makes them the ideal addition to our comprehensive GTM services portfolio. Together, we’re delivering the full spectrum of technology implementation and managed services that revenue leaders need.”

    AI-Powered GTM Technology Leadership

    Outbound Funnel operates at the center of the AI-powered sales engagement ecosystem, with deep expertise across platforms leveraging conversation intelligence, predictive analytics, and automated workflows. The company’s comprehensive partner network includes AI-driven platforms like Gong for revenue intelligence, MadKudu’s AI prospecting tools, ChiliPiper’s AI-powered demand conversion, and other next-generation technologies. This acquisition positions 2X as the definitive partner for organizations seeking to implement and optimize AI-powered GTM technology stacks with ongoing managed services support.

    Strengthening GTM Technology Services

    The addition of Outbound Funnel positions 2X as the premier subscription-based partner for GTM technology implementation and ongoing managed services. With Outbound Funnel’s specialized expertise in revenue technology consulting, implementation, integration, project services, training, custom solutions, and managed services, 2X can now offer comprehensive subscription-based solutions that extend GTM technology vendors’ capabilities with ongoing operational support and strategic advisory.

    “We’re thrilled to welcome the exceptional Outbound Funnel team to 2X,” said Colasante. “Their deep technical expertise and proven success in transforming revenue operations through technology value realization perfectly complements our scalable managed services model. This acquisition brings top-tier talent from expert implementation consultants to revenue operations specialists who will help us deliver even greater value to our clients.”

    Validation from Technology Partners

    The acquisition has garnered support from leading GTM technology companies, reflecting the strong partnerships Outbound Funnel has built across the ecosystem.

    “We’re excited about 2X’s investment in the revenue intelligence ecosystem through this acquisition,” said Rob Moyer, Global Head of Partnerships of Gong. “Outbound Funnel has been an exceptional implementation partner, and their expertise combined with 2X’s comprehensive managed services model creates exceptional value for organizations looking to maximize their GTM technology investments.”

    Proven Success with Leading Organizations

    Outbound Funnel’s track record speaks to the quality of their team and approach across the entire GTM technology landscape. Their clients consistently report exceptional results, including 98% adoption rates across sales engagement platforms, 10% increases in win rates through AI-powered conversation intelligence, and significantly accelerated deployment timelines. The company’s expertise spans from complex multi-year migration projects to ongoing optimization of AI-driven revenue operations.

    “Outbound Funnel was instrumental in helping us maximize our AI-powered platform investments,” said a Head of Enablement & Product Marketing at a leading technology company. “Their cross-platform expertise and deep understanding of AI-driven sales engagement tools enabled us to achieve incredible results with 98% adoption across our GTM teams and a 10% increase in win rate.”

    What’s Next

    “We’re incredibly excited to join the 2X family and bring our comprehensive GTM technology expertise to their world-class managed services platform,” said Curtis Ropp, Founder and CEO of Outbound Funnel. “From day one, we’ve been committed to helping organizations maximize the value of their entire sales engagement and revenue intelligence technology stack. As the first implementation partner across multiple leading platforms, we’ve built deep expertise in AI-powered conversation intelligence, sales automation, and complex migrations. Partnering with 2X allows us to scale this impact and deliver even greater value to clients who need both strategic implementation and ongoing operational support across their entire GTM technology ecosystem.”

    Curtis Ropp will join the 2X management team and continue to operate and grow Outbound Funnel, now a 2X company.

    About 2X

    2X is the global leader in subscription-based go-to-market services, helping GTM leaders achieve greater impact while lowering costs through its comprehensive managed services delivery model. Building on its foundation as the leader in B2B marketing as a service (MaaS), 2X now provides end-to-end go-to-market solutions including marketing operations and MarTech management, campaign build and optimization, content and creative production, revenue operations, sales technology implementation, and strategic consulting services. 2X is a services partner of 6sense, Salesforce, Adobe Marketo Engage, HubSpot, Gong, Bombora, Drift, WordPress, Google, Meta, and many other leading revenue platforms.

    With more than 1,000 team members globally, 2X is backed by private-equity firms Recognize Partners and Insight Partners. 2X has been recognized as one of the fastest-growing companies in the US by Inc. and the Financial Times. For more information, visit 2X.marketing or our LinkedIn.

    About Outbound Funnel

    Outbound Funnel is a premier revenue operations consultancy specializing in AI-powered sales engagement and revenue intelligence technology implementation and optimization. As the first and longest-standing implementation partner across leading platforms including Outreach (800+ implementations), Gong (600+ deployments), and SalesLoft (hundreds of implementations), Outbound Funnel has helped thousands of organizations transform their revenue operations through expert deployment of AI-driven platforms and strategic advisory services. With a team of seasoned RevOps experts, Outbound Funnel empowers GTM teams to maximize their technology investments and drive measurable business outcomes. With a team of seasoned RevOps experts, Outbound Funnel empowers GTM teams to maximize their technology investments and drive measurable business outcomes.

    About Recognize

    Recognize is a distinguished investor and business builder focused on next-generation Digital Services companies. Headquartered in New York, the firm seeks to back visionary founders, entrepreneurs, and management teams who are building innovative businesses that leverage AI, software, and digital platforms to deliver transformative outcomes to enterprises. Recognize provides deep operational expertise, industry relationships, and strategic capital to drive accelerated growth of these specialized businesses. To learn more, visit www.recognize.com.

    About Insight Partners

    Insight Partners is a global software investor partnering with high-growth technology, software, and Internet startup and ScaleUp companies that are driving transformative change in their industries. As of December 31, 2024, the firm has over $90B in regulatory assets under management. Insight Partners has invested in more than 800 companies worldwide and has seen over 55 portfolio companies achieve an IPO. Headquartered in New York City, Insight has offices in London, Tel Aviv, and the Bay Area. Insight’s mission is to find, fund, and work successfully with visionary executives, providing them with tailored, hands-on software expertise along their growth journey, from their first investment to IPO. For more information on Insight and all its investments, visit insightpartners.com or follow us on X @insightpartners.

    Media Contact
    Audree Hernandez
    JMAC PR for 2X
    2X@jmacpr.com

    The MIL Network

  • MIL-OSI Africa: Modi’s visit to Ghana signals India’s broader Africa strategy. A researcher explains

    Source: The Conversation – Africa – By Veda Vaidyanathan, Associate, Harvard University Asia Center, Harvard Kennedy School

    Ghana has historically been an anchor of Indian enterprise and diplomacy on the African continent.

    New Delhi and Accra formalised ties in 1957. At the time, their partnership was grounded in shared anti-colonial ideals and a common vision for post-independence development. India offered counsel on building Ghana’s institutions, including its external intelligence agency. Meanwhile, Indian teachers, technicians, and traders regularly travelled to the west African country in search of opportunity.

    The July 2025 visit of the Indian prime minister, Narendra Modi, to Ghana – the first by an Indian leader in over three decades – came at a critical moment for the continent. As the global order shifts towards multi-polarity, countries like Ghana are navigating a complex landscape, which includes western donors scaling back commitments. This has opened space to deepen cooperation through pragmatic, interest-driven collaborations with longstanding partners like India. Speaking at the Munich Security Conference, Ghana’s President John Mahama captured the spirit of this global realignment, noting that

    as bridges are burning, new bridges are being formed.

    Against this backdrop, Prime Minister Modi’s visit offered an opportunity to both revive and recalibrate bilateral ties. The visit carried a strong economic and strategic orientation. Ghana positioned itself as a partner in areas where India holds comparative advantage, such as pharmaceuticals. Over 26% of Africa’s generic medicines are sourced from India. The Food and Drugs Authority’s (Ghana’s regulator of pharmaceutical standards) listing of foreign pharmaceutical manufacturing facilities is dominated by Indian firms.

    Defence cooperation was also on the agenda. Ghana is looking to India for training, equipment and broader security engagement in response to rising threats from the Sahel and coastal piracy.

    This emphasis on shared security interests is underscored by Ghana’s alignment with India on counter-terrorism. President Mahama for instance has condemned the Pahalgam terrorist attacks that occurred in April, 2025.

    Reviving economic ties

    Economic ties are at the heart of this renewed engagement between the two countries. Bilateral trade currently stands at around US$3 billion. Both leaders aim to double it to US$6 billion over the next five years. Currently, Ghana enjoys a trade surplus with India. This is mainly due to gold exports, which account for over 70% of its shipments. Cocoa, cashew nuts, and timber are also key exports, while imports from India include pharmaceuticals, machinery, vehicles, and various industrial goods.

    India has invested more than US$2 billion in Ghana. These investments span private capital, concessional finance and grants across 900 projects. India now ranks among Ghana’s top investors. Indian firms and state-backed institutions play a key role in critical infrastructure development. Landmark projects include the 97km standard gauge Tema-Mpakadan Railway Line and the Ghana-India Kofi Annan ICT Centre, a hub for innovation and research.

    In an earlier study, I documented the perspectives of Indian entrepreneurs in Ghana. The findings underscored the country’s appeal as a land of economic opportunity. In interviews, Indian businesses highlighted Ghana’s stable political environment. An expanding consumer base, and relatively transparent regulatory framework were also mentioned. Together, these factors continue to attract investor interest.

    This economic momentum likely paved the way to pursue a closer bilateral relationship, marked by the elevation to a ‘Comprehensive Partnership’.

    While delegates in the July visit addressed issues such as financial inclusion, healthcare and agriculture, the tangible outcomes were limited. Four memoranda of understanding were signed. They cover cooperation on traditional medicine, regulatory standards and cultural exchange. The creation of a joint commission to structure and advance bilateral collaboration across priority sectors was also signed.

    Moving forward, Ghana offers India an entry point into west Africa’s resource landscape. With reserves of gold, bauxite, manganese and lithium, Ghana is well positioned to contribute to India’s needs for critical minerals. President Mahama’s invitation for investment in mineral extraction and processing aligns with India’s National Critical Mineral Mission, New Delhi is looking for supply chains for its energy transition. It creates an opportunity for Indian mining companies to expand into African markets.


    Read more: The world is rushing to Africa to mine critical minerals like lithium – how the continent should deal with the demand


    Pragmatic diplomacy

    With nearly US$100 billion in trade, cumulative investments of nearly US$75 billion, and a 3.5 million strong diaspora, the broader contours of India’s Africa policy is increasingly pragmatic and issue based.

    New Delhi’s evolving relations with Accra reflects this. It comes as Ghana is making sweeping economic reforms domestically, particularly in fiscal management and debt restructuring.

    This ambitious “economic reboot” hinges on attracting private sector investment. In this context, the Indian diaspora, already deeply embedded in Ghana’s commercial networks, is well positioned to foster stronger economic ties.

    In his address to Ghana’s Parliament, The Indian Prime Minister spoke of development cooperation that is demand driven and focused on building local capacity and creating local opportunities. This approach “to not just invest, but empower”, signals India’s growing intent to anchor relationships in mutual agency, rather than dependency.

    – Modi’s visit to Ghana signals India’s broader Africa strategy. A researcher explains
    – https://theconversation.com/modis-visit-to-ghana-signals-indias-broader-africa-strategy-a-researcher-explains-261187

    MIL OSI Africa

  • MIL-OSI Analysis: Modi’s visit to Ghana signals India’s broader Africa strategy. A researcher explains

    Source: The Conversation – Africa (2) – By Veda Vaidyanathan, Associate, Harvard University Asia Center, Harvard Kennedy School

    Ghana has historically been an anchor of Indian enterprise and diplomacy on the African continent.

    New Delhi and Accra formalised ties in 1957. At the time, their partnership was grounded in shared anti-colonial ideals and a common vision for post-independence development. India offered counsel on building Ghana’s institutions, including its external intelligence agency. Meanwhile, Indian teachers, technicians, and traders regularly travelled to the west African country in search of opportunity.

    The July 2025 visit of the Indian prime minister, Narendra Modi, to Ghana – the first by an Indian leader in over three decades – came at a critical moment for the continent. As the global order shifts towards multi-polarity, countries like Ghana are navigating a complex landscape, which includes western donors scaling back commitments. This has opened space to deepen cooperation through pragmatic, interest-driven collaborations with longstanding partners like India. Speaking at the Munich Security Conference, Ghana’s President John Mahama captured the spirit of this global realignment, noting that

    as bridges are burning, new bridges are being formed.

    Against this backdrop, Prime Minister Modi’s visit offered an opportunity to both revive and recalibrate bilateral ties. The visit carried a strong economic and strategic orientation. Ghana positioned itself as a partner in areas where India holds comparative advantage, such as pharmaceuticals. Over 26% of Africa’s generic medicines are sourced from India. The Food and Drugs Authority’s (Ghana’s regulator of pharmaceutical standards) listing of foreign pharmaceutical manufacturing facilities is dominated by Indian firms.

    Defence cooperation was also on the agenda. Ghana is looking to India for training, equipment and broader security engagement in response to rising threats from the Sahel and coastal piracy.

    This emphasis on shared security interests is underscored by Ghana’s alignment with India on counter-terrorism. President Mahama for instance has condemned the Pahalgam terrorist attacks that occurred in April, 2025.

    Reviving economic ties

    Economic ties are at the heart of this renewed engagement between the two countries. Bilateral trade currently stands at around US$3 billion. Both leaders aim to double it to US$6 billion over the next five years. Currently, Ghana enjoys a trade surplus with India. This is mainly due to gold exports, which account for over 70% of its shipments. Cocoa, cashew nuts, and timber are also key exports, while imports from India include pharmaceuticals, machinery, vehicles, and various industrial goods.

    India has invested more than US$2 billion in Ghana. These investments span private capital, concessional finance and grants across 900 projects. India now ranks among Ghana’s top investors. Indian firms and state-backed institutions play a key role in critical infrastructure development. Landmark projects include the 97km standard gauge Tema-Mpakadan Railway Line and the Ghana-India Kofi Annan ICT Centre, a hub for innovation and research.

    In an earlier study, I documented the perspectives of Indian entrepreneurs in Ghana. The findings underscored the country’s appeal as a land of economic opportunity. In interviews, Indian businesses highlighted Ghana’s stable political environment. An expanding consumer base, and relatively transparent regulatory framework were also mentioned. Together, these factors continue to attract investor interest.

    This economic momentum likely paved the way to pursue a closer bilateral relationship, marked by the elevation to a ‘Comprehensive Partnership’.

    While delegates in the July visit addressed issues such as financial inclusion, healthcare and agriculture, the tangible outcomes were limited. Four memoranda of understanding were signed. They cover cooperation on traditional medicine, regulatory standards and cultural exchange. The creation of a joint commission to structure and advance bilateral collaboration across priority sectors was also signed.

    Moving forward, Ghana offers India an entry point into west Africa’s resource landscape. With reserves of gold, bauxite, manganese and lithium, Ghana is well positioned to contribute to India’s needs for critical minerals. President Mahama’s invitation for investment in mineral extraction and processing aligns with India’s National Critical Mineral Mission, New Delhi is looking for supply chains for its energy transition. It creates an opportunity for Indian mining companies to expand into African markets.




    Read more:
    The world is rushing to Africa to mine critical minerals like lithium – how the continent should deal with the demand


    Pragmatic diplomacy

    With nearly US$100 billion in trade, cumulative investments of nearly US$75 billion, and a 3.5 million strong diaspora, the broader contours of India’s Africa policy is increasingly pragmatic and issue based.

    New Delhi’s evolving relations with Accra reflects this. It comes as Ghana is making sweeping economic reforms domestically, particularly in fiscal management and debt restructuring.

    This ambitious “economic reboot” hinges on attracting private sector investment. In this context, the Indian diaspora, already deeply embedded in Ghana’s commercial networks, is well positioned to foster stronger economic ties.

    In his address to Ghana’s Parliament, The Indian Prime Minister spoke of development cooperation that is demand driven and focused on building local capacity and creating local opportunities. This approach “to not just invest, but empower”, signals India’s growing intent to anchor relationships in mutual agency, rather than dependency.

    Veda Vaidyanathan is Fellow, Foreign Policy and Security Studies, at a leading Indian think tank.

    ref. Modi’s visit to Ghana signals India’s broader Africa strategy. A researcher explains – https://theconversation.com/modis-visit-to-ghana-signals-indias-broader-africa-strategy-a-researcher-explains-261187

    MIL OSI Analysis

  • MIL-OSI USA: Fact Sheet: The President’s Working Group on Digital Asset Markets Releases Recommendations to Strengthen American Leadership in Digital Financial Technology

    US Senate News:

    Source: US Whitehouse
    USHERING IN THE GOLDEN AGE OF CRYPTO: When President Trump took office in January, he promised to make America the “crypto capital of the world.” Today, the President’s Working Group on Digital Asset Markets is releasing a report that provides a roadmap to make that promise a reality.
    Established by President Trump’s Executive Order 14178 Strengthening American Leadership in Digital Financial Technology, the Working Group consists of officials throughout the Federal government and was tasked with submitting a report that recommends regulatory and legislative proposals to advance the policies established in the Order.
    By implementing these recommendations, policymakers can ensure that the United States leads the blockchain revolution and ushers in the Golden Age of Crypto.
    POSITIONING AMERICA AS THE LEADER IN DIGITAL ASSET MARKETS:The Working Group determined that a fit-for-purpose market structure framework is essential to support growth and innovation in the digital assets industry, protect consumers, and keep the United States at the forefront of digital asset development. The Working Group recommends that:
    Congress build on the massive bipartisan House of Representatives vote for CLARITY by enacting legislation that:
    Eliminates existing gaps in regulatory oversight by providing the CFTC authority to oversee spot markets for non-security digital assets.
    Embraces DeFi technology and recognizes the potential of integrating such technology into mainstream finance.

    The SEC and CFTC use their existing authorities to:
    Immediately enable the trading of digital assets at the Federal level by providing clarity to market participants on issues such as registration, custody, trading, and recordkeeping.
    Allow innovative financial products to reach consumers without bureaucratic delays through the use of tools like safe harbors and regulatory sandboxes.  

    MODERNIZING BANK REGULATION FOR DIGITAL ASSETS: The Trump Administration has already ended Operation Choke Point 2.0 once and for all by working to end regulatory efforts that deny banking services to the digital assets industry. A sound and predictable banking regulatory framework that embraces the promise of blockchain technology will allow depository institutions to meet customer demand for core banking services for digital assets, and make it easier for those customers to access digital asset markets. The Working Group recommends that regulators take additional actions to:
    Relaunch crypto innovation efforts to clarify permissible bank activities in custody, tokenization, stablecoin issuance, and the use of blockchains.
    Promote transparency regarding the process for institutions to obtain bank charters or Reserve Bank master accounts.
    Ensure that bank capital rules are aligned with the actual risks associated with digital assets, not simply the fact of their presence on a distributed ledger.
    STRENGTHENING THE ROLE OF THE U.S. DOLLAR: The widespread adoption of dollar-backed stablecoins will modernize payments infrastructure and allow the United States to move away from costly and outdated legacy systems. On July 18, 2025, President Trump signed the historic GENIUS Act into law, which creates the first-ever Federal regulatory framework for stablecoins. The Working Group recommends that:
    Treasury and the banking agencies faithfully and expeditiously implement the GENIUS Act.
    Congress take additional action to protect privacy and civil liberties by passing the Anti-CBDC Surveillance State Act to codify the provisions of the President’s Executive Order banning Central Bank Digital Currencies in the United States.
    COMBATING ILLICIT FINANCE IN THE DIGITAL AGE: By modernizing our anti-money laundering rules, the United States can be a leader in financial innovation while protecting our national security interests. The Working Group recommends that:
    Treasury and the appropriate regulators provide clarity regarding BSA obligations and reporting.
    Congress reinforce the importance of self-custody and clarify the AML/CFT obligations of actors within the decentralized finance ecosystem.
    Regulators work to prevent the misuse of authorities to target lawful activities of law-abiding citizens and protect citizens’ privacy.
    ENSURING FAIRNESS AND PREDICTABILITY IN DIGITAL ASSET TAXATION: Our tax rules must align with new technologies and eliminate compliance hurdles for both individuals and businesses engaged in activities involving digital assets. The Working Group recommends that:
    Treasury and the IRS reduce burdens on taxpayers by publishing guidance on topics related to CAMT, wrapping transactions, and de minimis receipts of digital assets.
    Treasury and the IRS review previously issued guidance on the tax treatment of activities like mining and staking.
    Congress enact legislation that treats digital assets as a new class of assets subject to modified versions of tax rules applicable to securities or commodities for Federal income tax purposes and add digital assets to the list of assets subject to wash sale rules.

    MIL OSI USA News

  • MIL-OSI Asia-Pac: President Lai meets delegation from US National Endowment for Democracy

    Source: Republic of China Taiwan

    Details
    2025-07-24
    President Lai meets Somaliland Foreign Minister Abdirahman Dahir Adam  
    On the morning of July 24, President Lai Ching-te met with a delegation led by Republic of Somaliland Minister of Foreign Affairs and International Cooperation Abdirahman Dahir Adam. In remarks, President Lai thanked the Somaliland government for its longstanding, staunch support for Taiwan-Somaliland relations. The president mentioned that this year marks the fifth anniversary of Taiwan and Somaliland’s mutual establishment of representative offices and that our exchanges in various areas have yielded significant results. He expressed hope for continuing to deepen our partnership, advancing our bilateral friendship and fruitful cooperation. A translation of President Lai’s remarks follows: I warmly welcome all of our guests to Taiwan. This is the first visit to Taiwan for Minister Adam, Minister Khadir Hussein Abdi, and Admiral Ahmed Hurre Hariye. I thank you for your high regard and support for Taiwan. I also very much appreciate that Lead Advisor Mohamed Omar Hagi Mohamoud, who served as representative of Somaliland to Taiwan during the past five years, continues deepening Taiwan-Somaliland ties in his new role. Somaliland is renowned as a beacon of democracy in the Horn of Africa. I want to once again congratulate Somaliland on successfully holding presidential and political party elections last November, which garnered praise from the international community. At that time, I appointed Deputy Minister of Foreign Affairs François Chihchung Wu (吳志中) to serve as special envoy and lead a delegation to attend the inauguration of President Abdirahman Mohamed Abdullahi, demonstrating that Taiwan would work closely with Somaliland’s new government to write a new chapter in our friendship. Recently, authoritarian regimes have continued to apply new forms of coercion as they intensify suppression of Taiwan’s and Somaliland’s international participation. In response, our two sides must continue to deepen our partnership and demonstrate the resilience of democratic alliances, as well as our staunch commitment to defending our values.  This year marks the fifth anniversary of Taiwan and Somaliland’s mutual establishment of representative offices. Through our joint efforts, we have continued to expand exchanges in various areas, yielding significant results. This afternoon, we will also sign an agreement on coast guard cooperation, launching bilateral cooperation in maritime affairs. Regarding President Abdullahi’s focus on maritime security, the blue economy, and other policy objectives, we can strengthen our bilateral partnership moving forward. In addition, we also hope to work together with like-minded countries such as the United States, and through trilateral or multilateral cooperation platforms, realize the strategic goal of a non-red Somaliland coastline. I want to thank the Somaliland government once more for its longstanding, staunch support for Taiwan-Somaliland relations. I look forward to working with all of you to continue to advance our bilateral friendship and fruitful cooperation. In closing, I once again welcome Minister Adam and the delegation. I have every confidence that, in addition to advancing bilateral cooperation, this trip will allow you to experience Taiwan’s natural beauty and diverse culture. Minister Adam then delivered remarks, thanking the government and people of Taiwan for the warm hospitality they have received since their arrival. He stated that Taiwan is a peaceful nation and that it shares with Somaliland the value of democracy. He stated that we also share the goal of obtaining recognition, so he is glad that the Taiwan-Somaliland relationship is growing by the day. Minister Adam pointed out that there is much pressure that we are both facing in our relationship, but he reassured President Lai that no amount of pressure can change Somaliland’s strong ties with Taiwan. He also thanked the Taiwan government for the help it has proffered to Somaliland, adding that our relationship will only get better. Minister Adam said that Taiwan and Somaliland can cooperate in many areas and that there is more opportunity in Somaliland than any other country, adding that Somaliland is open for investment from Taiwan. Noting that our countries can also collaborate in other areas such as education and maritime security, the minister said that he is glad they will be signing a cooperative agreement in maritime security with Taiwan. He then said he is looking forward to a better relationship in the future. The delegation was accompanied to the Presidential Office by Somaliland Representative to Taiwan Mahmoud Adam Jama Galaal.  

    Details
    2025-07-22
    President Lai meets cross-party Irish Oireachtas delegation
    On the morning of July 22, President Lai Ching-te met with a cross-party delegation from the Oireachtas (parliament) of Ireland. In remarks, President Lai stated that Taiwan and Ireland are both guardians of the values of freedom and democracy. He indicated that Taiwan will continue to take action and show the world that it is a trustworthy democratic partner that can contribute to the international community, saying that we look forward to building an even closer partnership with Ireland as we work together for the well-being of our peoples and for global democracy, peace, and prosperity. A translation of President Lai’s remarks follows: Deputy Speaker John McGuinness is a dear friend of Taiwan who also chairs the Ireland-Taiwan Parliamentary Friendship Association. Thanks to his efforts over the years, support for Taiwan has grown stronger in the Oireachtas. I thank him and all of our guests for traveling such a long way to demonstrate support for Taiwan and open more doors for exchanges and cooperation. Europe is Taiwan’s third largest trading partner and largest source of foreign investment. Ireland is a European stronghold for technology and innovative industries. Just like Taiwan, Ireland is an export-oriented economy. Our industrial structures are highly complementary. We hope that Taiwan’s electronics manufacturing and machinery industries can explore deeper cooperation with Ireland’s ICT software and biopharmaceutical fields, creating win-win outcomes. In May, the Irish government launched its National Semiconductor Strategy, outlining a vision to become a global semiconductor hub. Taiwan is home to the world’s most critical semiconductor ecosystem, and our own industrial development closely parallels that of Ireland. Moreover, we aspire to build non-red technological supply chains with democratic partners. I believe that going forward, Taiwan and Ireland can bolster collaboration so as to upgrade the competitiveness of our respective semiconductor industries. Together, we can help build a values-based economic system for democracies. I was delighted to receive congratulations from Deputy Speaker McGuinness on my election. Taiwan and Ireland are both guardians of the values of freedom and democracy. This visit from our guests further attests to our common beliefs. As authoritarianism continues to expand, Taiwan will continue to take action and show the world that it is a trustworthy democratic partner that can contribute to the international community. We look forward to building an even closer partnership with Ireland as we work together for the well-being of our peoples and for global democracy, peace, and prosperity. Deputy Speaker McGuinness then delivered remarks, stating that he has been to Taiwan on many occasions and that it is a great honor to join President Lai and his staff at the Presidential Office. He said that Ireland has continued to build its strong relationship with Taiwan based on our democratic values and the interests that we have in trade throughout the world, strengthening this relationship based on culture, education, and more. Noting that he served with many other diplomats from Taiwan, he said all had the same goal, which was to further the interests of the Ireland-Taiwan friendship and to ensure that it grows and prospers. The deputy speaker then extended to President Lai the delegation’s best wishes for his term in office, stating that they commit to the same values as the previous friendship groups that have been visiting Taiwan. He went on to say that some members of the group are newly elected, representing the next generation of the association, and that they are committed to working together with Taiwan to stand strong in the defense of democracy. Deputy Speaker McGuinness also noted that the father of Deputy Ken O’Flynn, one of the delegation members, played an important role as a former chairman of the association, remarking that it is good to see such continuity taking place. Deputy Speaker McGuiness said that he believes the world is facing huge challenges and uncertainty in terms of our markets and trade with one another. He said we have to watch for what the United States will do next and be conscious of what China is doing, emphasizing that the European Union stands strong in the center of this, while Ireland plays a huge role in the context of democracy, trade, and the betterment of all things for the citizens that they represent. The deputy speaker then stated that while we focus on the development of AI that is extremely important for all of us, we can work together to ensure that we control AI rather than AI controlling us. He also remarked that we cannot lose sight of our traditional trading means, saying that we have to keep all of our trade together, expand on that trade, and then take on the new technologies that come before us. Deputy Speaker McGuinness concluded his remarks by thanking President Lai for receiving the delegation, stating that they commit to their continuation of support for Taiwan and for democracy. Also in attendance were Deputies Malcolm Byrne and Barry Ward, and Senator Teresa Costello.

    Details
    2025-07-22
    President Lai meets official delegation from European Parliament’s Special Committee on the European Democracy Shield
    On the morning of July 22, President Lai Ching-te met with an official delegation from the European Parliament’s Special Committee on the European Democracy Shield (EUDS). In remarks, President Lai thanked the committee for choosing to visit Taiwan for its first trip to Asia, demonstrating the close ties between Taiwan and Europe. President Lai emphasized that Taiwan, standing at the very frontline of the democratic world, is determined to protect democracy, peace, and prosperity worldwide. He expressed hope that we can share our experiences with Europe to foster even more resilient societies. A translation of President Lai’s remarks follows: Firstly, on behalf of the people of Taiwan, I extend a warm welcome to your delegation, which marks another official visit from the European Parliament. The Special Committee on the EUDS aims to strengthen societal resilience and counter disinformation and hybrid threats. Having been constituted at the beginning of this year, the committee has chosen to visit Taiwan for its first trip to Asia, demonstrating the close ties between Taiwan and Europe and the unlimited possibilities for deepening cooperation on issues of concern. I am also delighted to see many old friends of Taiwan gathered here today. I deeply appreciate your longstanding support for Taiwan. Taiwan and the European Union enjoy close trade and economic relations and share the values of freedom and democracy. However, in recent years, we have both been subjected to information manipulation and infiltration by foreign forces that seek to interfere in democratic elections, foment division in our societies, and shake people’s faith in democracy. Taiwan not only faces an onslaught of disinformation, but also is the target of gray-zone aggression. That is why, after taking office, I established the Whole-of-Society Defense Resilience Committee at the Presidential Office, with myself as convener. The committee is a platform that integrates domestic affairs, national defense, foreign affairs, cybersecurity, and civil resources. It aims to strengthen the capability of Taiwan’s society to defend itself against new forms of threat, pinpoint external and internal vulnerabilities, and bolster overall resilience and security. The efforts that democracies make are not for opposing anyone else; they are for safeguarding the way of life that we cherish – just as Europe has endeavored to promote diversity and human rights. The Taiwanese people firmly believe that when our society is united and people trust one another, we will be able to withstand any form of authoritarian aggression. Taiwan stands at the very frontline of the democratic world. We are determined to protect democracy, peace, and prosperity worldwide. We also hope to share our experiences with Europe and deepen cooperation in such fields as cybersecurity, media literacy, and societal resilience. Thank you once again for visiting Taiwan. Your presence further strengthens the foundations of Taiwan-Europe relations. Let us continue to work together to uphold freedom and democracy and foster even more resilient societies. EUDS Special Committee Chair Nathalie Loiseau then delivered remarks, saying that the delegation has members from different countries, including France, Germany, the Czech Republic, Poland, and Belgium, and different political parties, but that they have in common their desire for stronger relations between the EU and Taiwan. Committee Chair Loiseau stated that the EU and Taiwan, having many things in common, should work more together. She noted that we have strong trade relations, strong investments on both sides, and strong cultural relations, while we are also facing very similar challenges and threats. She said that we are democracies living in a world where autocracies want to weaken and divide democracies. She added that we also face external information manipulation, cyberattacks, sabotage, attempts to capture elites, and every single gray-zone activity that aims to divide and weaken us. Committee Chair Loiseau pointed out another commonality, that we have never threatened our neighbors. She said that we want to live in peace and we care about our people; we want to defend ourselves, not to attack others. We are not being threatened because of what we do, she emphasized, but because of what we are; and thus there is no reason for not working more together to face these threats and attacks. Committee Chair Loiseau said that Taiwan has valuable experience and good practices in the area of societal resilience, and that they are interested in learning more about Taiwan’s whole-of-society approach. They in Europe are facing interference, she said, mainly from Russia, and they know that Russia inspires others. She added that they in the EU also have experience regulating social media in a way which combines freedom of expression and responsibility. In closing, the chair said that they are happy to have the opportunity to exchange views with President Lai and that the European Parliament will continue to strongly support relations between the EU and Taiwan. The delegation also included Members of the European Parliament Engin Eroglu, Tomáš Zdechovský, Michał Wawrykiewicz, Kathleen Van Brempt, and Markéta Gregorová.

    Details
    2025-07-17
    President Lai meets President of Guatemalan Congress Nery Abilio Ramos y Ramos  
    On the morning of July 17, President Lai Ching-te met with a delegation led by Nery Abilio Ramos y Ramos, the president of the Congress of the Republic of Guatemala. In remarks, President Lai thanked Congress President Ramos and the Guatemalan Congress for their support for Taiwan, and noted that official diplomatic relations between Taiwan and Guatemala go back more than 90 years. As important partners in the global democratic community, the president said, the two nations will continue moving forward together in joint defense of the values of democracy and freedom, and will cooperate to promote regional and global prosperity and development. A translation of President Lai’s remarks follows:  I recall that when Congress President Ramos visited Taiwan in July last year, he put forward many ideas about how our countries could promote bilateral cooperation and exchanges. Now, a year later, he is leading another cross-party delegation from the Guatemalan Congress on a visit, demonstrating support for Taiwan and continuing to help deepen our diplomatic ties. In addition to extending a sincere welcome to the distinguished delegation members who have traveled so far to be here, I would also like to express our concern and condolences for everyone in Guatemala affected by the earthquake that struck earlier this month. We hope that the recovery effort is going smoothly. Official diplomatic relations between Taiwan and Guatemala go back more than 90 years. In such fields as healthcare, agriculture, education, and women’s empowerment, we have continually strengthened our cooperation to benefit our peoples. Just last month, Guatemala’s President Bernardo Arévalo and the First Lady led a delegation on a state visit to Taiwan. President Arévalo and I signed a letter of intent for semiconductor cooperation, and also witnessed the signing of cooperation documents to establish a political consultation mechanism and continue to promote bilateral investment. This has laid an even sounder foundation for bilateral exchanges and cooperation, and will help enhance both countries’ international competitiveness. Taiwan is currently running a semiconductor vocational training program, helping Guatemala cultivate semiconductor talent and develop its tech industry, and demonstrating our determination to share experience with democratic partners. At the same time, we continue to assist Taiwanese businesses in their efforts to develop overseas markets with Guatemala as an important base, spurring industrial development in both countries and increasing economic and trade benefits. I want to thank Congress President Ramos and the Guatemalan Congress for their continued support for Taiwan’s international participation. Representing the Guatemalan Congress, Congress President Ramos has signed resolutions in support of Taiwan, and has also issued statements addressing China’s misinterpretation of United Nations General Assembly Resolution 2758. Taiwan and Guatemala, as important partners in the global democratic community, will continue moving forward together in joint defense of the values of democracy and freedom, and will cooperate to promote regional and global prosperity and development. Congress President Ramos then delivered remarks, first noting that the members of the delegation are not only from different parties, but also represent different classes, cultures, professions, and departments, which shows that the diplomatic ties between Guatemala and the Republic of China (Taiwan) are based on firm friendships at all levels and in all fields. Noting that this was his second time to visit Taiwan and meet with President Lai, Congress President Ramos thanked the government of Taiwan for its warm hospitality. With the international situation growing more complex by the day, he said, Guatemala highly values its longstanding friendship and cooperative ties with Taiwan, and hopes that both sides can continue to deepen their cooperation in such areas as the economy, technology, education, agriculture, and culture, and work together to spur sustainable development in each of our countries. Congress President Ramos said that the way the Taiwan government looks after the well-being of its people is an excellent model for how other countries should promote national development and social well-being. Accordingly, he said, the Guatemalan Congress has stood for justice and, for a second time, adopted a resolution backing Taiwan’s participation in the World Health Assembly. Regarding President Arévalo’s state visit to Taiwan the previous month, Congress President Ramos commented that this high-level interaction has undoubtedly strengthened the diplomatic ties between Taiwan and Guatemala and led to more opportunities for cooperation. Congress President Ramos emphasized that democracy, freedom, and human rights are universal values that bind Taiwan and Guatemala together, and that he is confident the two countries’ diplomatic ties will continue to grow deeper. In closing, on behalf of the Republic of Guatemala, Congress President Ramos presented President Lai with a Chinese translation of the resolution that the Guatemalan Congress proposed to the UN in support of Taiwan’s participation in international organizations, demonstrating the staunch bonds of friendship between the two countries. The delegation was accompanied to the Presidential Office by Guatemala Ambassador Luis Raúl Estévez López.  

    Details
    2025-07-08
    President Lai meets delegation led by Foreign Minister Jean-Victor Harvel Jean-Baptiste of Republic of Haiti
    On the morning of July 8, President Lai Ching-te met with a delegation led by Minister of Foreign Affairs Jean-Victor Harvel Jean-Baptiste of the Republic of Haiti and his wife. In remarks, President Lai noted that our two countries will soon mark the 70th anniversary of diplomatic relations and that our exchanges have been fruitful in important areas such as public security, educational cooperation, and infrastructure. The president stated that Taiwan will continue to work together with Haiti to promote the development of medical and health care, food security, and construction that benefits people’s livelihoods. The president thanked Haiti for supporting Taiwan’s international participation and expressed hope that both countries will continue to support each other, deepen cooperation, and face various challenges together. A translation of President Lai’s remarks follows: I am delighted to meet and exchange ideas with Minister Jean-Baptiste, his wife, and our distinguished guests. Minister Jean-Baptiste is the highest-ranking official from Haiti to visit Taiwan since former President Jovenel Moïse visited in 2018, demonstrating the importance that the Haitian government attaches to our bilateral diplomatic ties. On behalf of the Republic of China (Taiwan), I extend a sincere welcome. Next year marks the 70th anniversary of the establishment of diplomatic ties between our two countries. Our bilateral exchanges have been fruitful in important areas such as public security, educational cooperation, and infrastructure. Over the past few years, Haiti has faced challenges in such areas as food supply and healthcare. Taiwan will continue to work together with Haiti through various cooperative programs to promote the development of medical and health care, food security, and construction that benefits people’s livelihoods. I want to thank the government of Haiti and Minister Jean-Baptiste for speaking out in support of Taiwan on the international stage for many years. Minister Jean-Baptiste’s personal letter to the World Health Organization Secretariat in May this year and Minister of Public Health and Population Bertrand Sinal’s public statement during the World Health Assembly both affirmed Taiwan’s efforts and contributions to global public health and supported Taiwan’s international participation, for which we are very grateful. I hope that Taiwan and Haiti will continue to support each other and deepen cooperation. I believe that Minister Jean-Baptiste’s visit will open up more opportunities for cooperation for both countries, helping Taiwan and Haiti face various challenges together. In closing, I once again offer a sincere welcome to the delegation led by Minister Jean-Baptiste, and ask him to convey greetings from Taiwan to Prime Minister Alix Didier Fils-Aimé and the members of the Transitional Presidential Council. Minister Jean-Baptiste then delivered remarks, saying that he is extremely honored to visit Taiwan and reaffirm the solid and friendly cooperative relationship based on mutual respect between the Republic of Haiti and the Republic of China (Taiwan), which will soon mark its 70th anniversary. He also brought greetings to President Lai from Haiti’s Transitional Presidential Council and Prime Minister Fils-Aimé. Minister Jean-Baptiste emphasized that over the past few decades, despite the great geographical distance and developmental and cultural differences between our two countries, we have nevertheless established a firm friendship and demonstrated to the world the progress resulting from the mutual assistance and cooperation between our peoples. Minister Jean-Baptiste pointed out that our two countries cooperate closely in agriculture, health, education, and community development and have achieved concrete results. Taiwan’s voice, he said, is thus essential for the people of Haiti. He noted that Taiwan also plays an important role in peace and innovation and actively participates in global cooperative efforts. Pointing out that the world is currently facing significant challenges and that Haiti is experiencing its most difficult period in history, Minister Jean-Baptiste said that at this time, Taiwan and Haiti need to unite, help each other, and jointly think about how to move forward and deepen bilateral relations to benefit the peoples of both countries. Minister Jean-Baptiste said that he is pleased that throughout our solid and friendly diplomatic relationship, both countries have demonstrated mutual trust, mutual respect, and the values we jointly defend. He then stated his belief that Haiti and Taiwan will together create a cooperation model and future that are sincere, friendly, and sustainable. The delegation was accompanied to the Presidential Office by Chargé d’Affaires a.i. Francilien Victorin of the Embassy of the Republic of Haiti in Taiwan.

    Details
    2025-05-20
    President Lai interviewed by Nippon Television and Yomiuri TV
    In a recent interview on Nippon Television’s news zero program, President Lai Ching-te responded to questions from host Mr. Sakurai Sho and Yomiuri TV Shanghai Bureau Chief Watanabe Masayo on topics including reflections on his first year in office, cross-strait relations, China’s military threats, Taiwan-United States relations, and Taiwan-Japan relations. The interview was broadcast on the evening of May 19. During the interview, President Lai stated that China intends to change the world’s rules-based international order, and that if Taiwan were invaded, global supply chains would be disrupted. Therefore, he said, Taiwan will strengthen its national defense, prevent war by preparing for war, and achieve the goal of peace. The president also noted that Taiwan’s purpose for developing drones is based on national security and industrial needs, and that Taiwan hopes to collaborate with Japan. He then reiterated that China’s threats are an international problem, and expressed hope to work together with the US, Japan, and others in the global democratic community to prevent China from starting a war. Following is the text of the questions and the president’s responses: Q: How do you feel as you are about to round out your first year in office? President Lai: When I was young, I was determined to practice medicine and save lives. When I left medicine to go into politics, I was determined to transform Taiwan. And when I was sworn in as president on May 20 last year, I was determined to strengthen the nation. Time flies, and it has already been a year. Although the process has been very challenging, I am deeply honored to be a part of it. I am also profoundly grateful to our citizens for allowing me the opportunity to give back to our country. The future will certainly be full of more challenges, but I will do everything I can to unite the people and continue strengthening the nation. That is how I am feeling now. Q: We are now coming up on the 80th anniversary of the end of World War II, and over this period, we have often heard that conflict between Taiwan and the mainland is imminent. Do you personally believe that a cross-strait conflict could happen? President Lai: The international community is very much aware that China intends to replace the US and change the world’s rules-based international order, and annexing Taiwan is just the first step. So, as China’s military power grows stronger, some members of the international community are naturally on edge about whether a cross-strait conflict will break out. The international community must certainly do everything in its power to avoid a conflict in the Taiwan Strait; there is too great a cost. Besides causing direct disasters to both Taiwan and China, the impact on the global economy would be even greater, with estimated losses of US$10 trillion from war alone – that is roughly 10 percent of the global GDP. Additionally, 20 percent of global shipping passes through the Taiwan Strait and surrounding waters, so if a conflict breaks out in the strait, other countries including Japan and Korea would suffer a grave impact. For Japan and Korea, a quarter of external transit passes through the Taiwan Strait and surrounding waters, and a third of the various energy resources and minerals shipped back from other countries pass through said areas. If Taiwan were invaded, global supply chains would be disrupted, and therefore conflict in the Taiwan Strait must be avoided. Such a conflict is indeed avoidable. I am very thankful to Prime Minister of Japan Ishiba Shigeru and former Prime Ministers Abe Shinzo, Suga Yoshihide, and Kishida Fumio, as well as US President Donald Trump and former President Joe Biden, and the other G7 leaders, for continuing to emphasize at international venues that peace and stability across the Taiwan Strait are essential components for global security and prosperity. When everyone in the global democratic community works together, stacking up enough strength to make China’s objectives unattainable or to make the cost of invading Taiwan too high for it to bear, a conflict in the strait can naturally be avoided. Q: As you said, President Lai, maintaining peace and stability across the Taiwan Strait is also very important for other countries. How can war be avoided? What sort of countermeasures is Taiwan prepared to take to prevent war? President Lai: As Mr. Sakurai mentioned earlier, we are coming up on the 80th anniversary of the end of WWII. There are many lessons we can take from that war. First is that peace is priceless, and war has no winners. From the tragedies of WWII, there are lessons that humanity should learn. We must pursue peace, and not start wars blindly, as that would be a major disaster for humanity. In other words, we must be determined to safeguard peace. The second lesson is that we cannot be complacent toward authoritarian powers. If you give them an inch, they will take a mile. They will keep growing, and eventually, not only will peace be unattainable, but war will be inevitable. The third lesson is why WWII ended: It ended because different groups joined together in solidarity. Taiwan, Japan, and the Indo-Pacific region are all directly subjected to China’s threats, so we hope to be able to join together in cooperation. This is why we proposed the Four Pillars of Peace action plan. First, we will strengthen our national defense. Second, we will strengthen economic resilience. Third is standing shoulder to shoulder with the democratic community to demonstrate the strength of deterrence. Fourth is that as long as China treats Taiwan with parity and dignity, Taiwan is willing to conduct exchanges and cooperate with China, and seek peace and mutual prosperity. These four pillars can help us avoid war and achieve peace. That is to say, Taiwan hopes to achieve peace through strength, prevent war by preparing for war, keeping war from happening and pursuing the goal of peace. Q: Regarding drones, everyone knows that recently, Taiwan has been actively researching, developing, and introducing drones. Why do you need to actively research, develop, and introduce new drones at this time? President Lai: This is for two purposes. The first is to meet national security needs. The second is to meet industrial development needs. Because Taiwan, Japan, and the Philippines are all part of the first island chain, and we are all democratic nations, we cannot be like an authoritarian country like China, which has an unlimited national defense budget. In this kind of situation, island nations such as Taiwan, Japan, and the Philippines should leverage their own technologies to develop national defense methods that are asymmetric and utilize unmanned vehicles. In particular, from the Russo-Ukrainian War, we see that Ukraine has successfully utilized unmanned vehicles to protect itself and prevent Russia from unlimited invasion. In other words, the Russo-Ukrainian War has already proven the importance of drones. Therefore, the first purpose of developing drones is based on national security needs. Second, the world has already entered the era of smart technology. Whether generative, agentic, or physical, AI will continue to develop. In the future, cars and ships will also evolve into unmanned vehicles and unmanned boats, and there will be unmanned factories. Drones will even be able to assist with postal deliveries, or services like Uber, Uber Eats, and foodpanda, or agricultural irrigation and pesticide spraying. Therefore, in the future era of comprehensive smart technology, developing unmanned vehicles is a necessity. Taiwan, based on industrial needs, is actively planning the development of drones and unmanned vehicles. I would like to take this opportunity to express Taiwan’s hope to collaborate with Japan in the unmanned vehicle industry. Just as we do in the semiconductor industry, where Japan has raw materials, equipment, and technology, and Taiwan has wafer manufacturing, our two countries can cooperate. Japan is a technological power, and Taiwan also has significant technological strengths. If Taiwan and Japan work together, we will not only be able to safeguard peace and stability in the Taiwan Strait and security in the Indo-Pacific region, but it will also be very helpful for the industrial development of both countries. Q: The drones you just described probably include examples from the Russo-Ukrainian War. Taiwan and China are separated by the Taiwan Strait. Do our drones need to have cross-sea flight capabilities? President Lai: Taiwan does not intend to counterattack the mainland, and does not intend to invade any country. Taiwan’s drones are meant to protect our own nation and territory. Q: Former President Biden previously stated that US forces would assist Taiwan’s defense in the event of an attack. President Trump, however, has yet to clearly state that the US would help defend Taiwan. Do you think that in such an event, the US would help defend Taiwan? Or is Taiwan now trying to persuade the US? President Lai: Former President Biden and President Trump have answered questions from reporters. Although their responses were different, strong cooperation with Taiwan under the Biden administration has continued under the Trump administration; there has been no change. During President Trump’s first term, cooperation with Taiwan was broader and deeper compared to former President Barack Obama’s terms. After former President Biden took office, cooperation with Taiwan increased compared to President Trump’s first term. Now, during President Trump’s second term, cooperation with Taiwan is even greater than under former President Biden. Taiwan-US cooperation continues to grow stronger, and has not changed just because President Trump and former President Biden gave different responses to reporters. Furthermore, the Trump administration publicly stated that in the future, the US will shift its strategic focus from Europe to the Indo-Pacific. The US secretary of defense even publicly stated that the primary mission of the US is to prevent China from invading Taiwan, maintain stability in the Indo-Pacific, and thus maintain world peace. There is a saying in Taiwan that goes, “Help comes most to those who help themselves.” Before asking friends and allies for assistance in facing threats from China, Taiwan must first be determined and prepared to defend itself. This is Taiwan’s principle, and we are working in this direction, making all the necessary preparations to safeguard the nation. Q: I would like to ask you a question about Taiwan-Japan relations. After the Great East Japan Earthquake in 2011, you made an appeal to give Japan a great deal of assistance and care. In particular, you visited Sendai to offer condolences. Later, you also expressed condolences and concern after the earthquakes in Aomori and Kumamoto. What are your expectations for future Taiwan-Japan exchanges and development? President Lai: I come from Tainan, and my constituency is in Tainan. Tainan has very deep ties with Japan, and of course, Taiwan also has deep ties with Japan. However, among Taiwan’s 22 counties and cities, Tainan has the deepest relationship with Japan. I sincerely hope that both of you and your teams will have an opportunity to visit Tainan. I will introduce Tainan’s scenery, including architecture from the era of Japanese rule, Tainan’s cuisine, and unique aspects of Tainan society, and you can also see lifestyles and culture from the Showa era.  The Wushantou Reservoir in Tainan was completed by engineer Mr. Hatta Yoichi from Kanazawa, Japan and the team he led to Tainan after he graduated from then-Tokyo Imperial University. It has nearly a century of history and is still in use today. This reservoir, along with the 16,000-km-long Chianan Canal, transformed the 150,000-hectare Chianan Plain into Taiwan’s premier rice-growing area. It was that foundation in agriculture that enabled Taiwan to develop industry and the technology sector of today. The reservoir continues to supply water to Tainan Science Park. It is used by residents of Tainan, the agricultural sector, and industry, and even the technology sector in Xinshi Industrial Park, as well as Taiwan Semiconductor Manufacturing Company. Because of this, the people of Tainan are deeply grateful for Mr. Hatta and very friendly toward the people of Japan. A major earthquake, the largest in 50 years, struck Tainan on February 6, 2016, resulting in significant casualties. As mayor of Tainan at the time, I was extremely grateful to then-Prime Minister Abe, who sent five Japanese officials to the disaster site in Tainan the day after the earthquake. They were very thoughtful and asked what kind of assistance we needed from the Japanese government. They offered to provide help based on what we needed. I was deeply moved, as former Prime Minister Abe showed such care, going beyond the formality of just sending supplies that we may or may not have actually needed. Instead, the officials asked what we needed and then provided assistance based on those needs, which really moved me. Similarly, when the Great East Japan Earthquake of 2011 or the later Kumamoto earthquakes struck, the people of Tainan, under my leadership, naturally and dutifully expressed their support. Even earlier, when central Taiwan was hit by a major earthquake in 1999, Japan was the first country to deploy a rescue team to the disaster area. On February 6, 2018, after a major earthquake in Hualien, former Prime Minister Abe appeared in a video holding up a message of encouragement he had written in calligraphy saying “Remain strong, Taiwan.” All of Taiwan was deeply moved. Over the years, Taiwan and Japan have supported each other when earthquakes struck, and have forged bonds that are family-like, not just neighborly. This is truly valuable. In the future, I hope Taiwan and Japan can be like brothers, and that the peoples of Taiwan and Japan can treat one another like family. If Taiwan has a problem, then Japan has a problem; if Japan has a problem, then Taiwan has a problem. By caring for and helping each other, we can face various challenges and difficulties, and pursue a brighter future. Q: President Lai, you just used the phrase “If Taiwan has a problem, then Japan has a problem.” In the event that China attempts to invade Taiwan by force, what kind of response measures would you hope the US military and Japan’s Self-Defense Forces take? President Lai: As I just mentioned, annexing Taiwan is only China’s first step. Its ultimate objective is to change the rules-based international order. That being the case, China’s threats are an international problem. So, I would very much hope to work together with the US, Japan, and others in the global democratic community to prevent China from starting a war – prevention, after all, is more important than cure.

    MIL OSI Asia Pacific News

  • MIL-Evening Report: More than 2 in 5 young Australians are lonely, our new report shows. This is what could help

    Source: The Conversation (Au and NZ) – By Michelle H. Lim, Associate Professor, Sydney School of Public Health, University of Sydney

    Oliver Rossi/Getty Images

    Loneliness is not a word often associated with young people. We tend to think of our youth as a time spent with family, friends and being engaged with school and work activities. Loneliness is an experience we may be more likely to associate with older people.

    In a new report looking at loneliness in young Australians, we found 43% of people aged 15 to 25 feel lonely. That’s more than two in five young people.

    While one in four felt lonely when asked, one in seven had felt lonely for at least two years (what we call persistent loneliness).

    There’s more we should be doing in Australia to address loneliness among young people and more broadly.

    What else did we find?

    In this report, we analysed data from the Household, Income and Labour Dynamics in Australia survey from 2022–23. This helped us understand what sort of factors increase the risk of loneliness among young people.

    We found having poor physical health and mental health can double (or more) the likelihood of persistent loneliness among young people.

    Life circumstances, as well as socioeconomic and behavioural factors, also play a role, as shown below.

    Worryingly, young people who report persistent loneliness are over seven times more likely to experience high or very high psychological distress compared to those who aren’t lonely.

    But loneliness in young people should not be seen just as a mental health issue. Research shows it can have consequences for physical health too. For example, a study published in 2024 found loneliness is linked to early signs of vascular dysfunction (functional changes to the arteries) in adults as young as 22.

    Why does loneliness persist?

    As well as analysing data, we also interviewed young people aged 16 to 25 from diverse backgrounds about what helps them make healthy social connections, and what hinders them.

    One of the things they flagged was a need for safe community spaces. A male participant from metro New South Wales, aged between 22 and 25, said:

    After lectures, someone’s hungry, you go to eat together. We used to go to [Name of restaurant] after almost every lecture. Talk or discuss somethings so it gave us that extra opportunity to mingle amongst each other and take that next step towards building a good friendship.

    We found technology could both help and hinder social connections. A female from regional Victoria, aged 22 to 25, who identified as LGBTIQ+, told us:

    If you’re in school or something like that and you don’t really have […] many people within your community to look to, it’s really nice being able to connect with people and make those friends online.

    On the flip side, a female participant from metropolitan Victoria, aged between 16 and 18, said:

    a lot of maybe like mean stuff or like bullying and stuff happens over the Internet […] there’s a big group chat and like everyone’s texting on it or something. And then a lot of the time, people will break off into a smaller chat […] or they’ll break off into one on one and be like, ohh, do you see what she said?

    The high cost of living was also regarded as a hindrance to maintaining social connections. As a male aged 22 to 25 from metro NSW told us:

    you’ll go on [a] drive [with friends] or whatever […] but that is so like incredibly expensive. Having to pay for your own car and like petrol and insurance and maintenance. Sometimes it’s hard to […] even like […] sit down in peace and have a chat. All the cafes will close at 2 and by the time everyone gets out of their jobs, you’re having to go to a restaurant and [you’re] spending 50 dollars.

    So what can we do?

    Loneliness has long been treated as a personal issue but it’s increasingly clear we have to shift our approach to include community-wide and systemic solutions.

    The World Health Organization’s Commission on Social Connection recently released a report pointing to loneliness as a public health, social, community and economic issue.

    In Australia, the economic burden of loneliness stands at A$2.7 billion each year for associated health-care costs including GP and hospital visits.

    And there are additional costs including lower workforce productivity and educational outcomes that have yet to be accounted for.

    Some countries have already developed and implemented strategies to address loneliness. In 2023, Denmark, for example, commissioned the development of a national loneliness action plan led by a consortium of organisations. This was underpinned by an investment of around 21 million Danish kroner (roughly A$5 million) over 2023–25.

    Australia now stands at a crossroads.

    Australia needs a national loneliness strategy

    A national strategy underpinned by evidence and by lived experience is crucial to effectively address loneliness. This approach would:

    • coordinate efforts across sectors: health, education, social services and business

    • identify effective strategies that should be included in a comprehensive response, and the principles to guide their delivery in communities and other settings

    • highlight sub-groups at risk of persistent loneliness who should be prioritised within population-wide strategies

    • commit to the delivery of a national awareness campaign that can educate the public and reduce stigma around loneliness.

    With the right national strategy, we will be able to increase our capacity to help all Australians, not just young people, connect in meaningful ways.


    If this article has raised issues for you, or if you’re concerned about someone you know, call Lifeline on 13 11 14. You can learn more about youth loneliness and how to help at Ending Loneliness Together.

    Michelle H. Lim is the CEO and Scientific Chair of Ending Loneliness Together. She is also the Vice-Chair of the International Scientific Board of the Global Initiative on Loneliness and Connection, and is part of the Technical Advisory Group – Social Connection at the World Health Organization.

    Ben Smith is a member of the Management Committee and Scientific Advisory Board of Ending Loneliness Together. He is also the Conjoint Chair of Public Health with the Western Sydney Local Health District.

    ref. More than 2 in 5 young Australians are lonely, our new report shows. This is what could help – https://theconversation.com/more-than-2-in-5-young-australians-are-lonely-our-new-report-shows-this-is-what-could-help-261260

    MIL OSI AnalysisEveningReport.nz

  • MIL-OSI USA: Tillis, Colleagues Introduce Framework to Combat Foreign Online Piracy, Protect American Copyright Holders

    US Senate News:

    Source: United States Senator for North Carolina Thom Tillis

    WASHINGTON, D.C. – Today, Senators Thom Tillis (R-NC), Chris Coons (D-DE), Marsha Blackburn (R-TN), and Adam Schiff (D-CA) introduced a discussion draft of the Block Bad Electronic Art and Recording Distributors (Block BEARD) Act of 2025 bipartisan legislation that would allow copyright owners, who have had their property stolen, to seek U.S. federal court action to block dedicated foreign online piracy operations from making that stolen content available to American households. 

    “Foreign piracy sites are stealing from American creators, threatening good-paying jobs, and exposing U.S. consumers to real online harms via malware, identity theft, and the like,” said Senator Tillis. “The Block BEARD Act gives us a smart, targeted tool to stop these criminal operations at the source without infringing on legitimate speech or due process. I’m proud to lead this bipartisan discussion to protect our creative economy and digital security and I look forward to continuing to work with my colleagues in the House to address this important matter.” 

    “Foreign websites pirating American movies, TV shows, art, and books steal tens of billions of dollars from the U.S. economy each year,” said Senator Coons. “This costs our creative community hundreds of thousands of jobs. Today, the United States takes an important step to join the many other nations around the world that have taken steps to crack down on foreign IP theft. This bipartisan legislation will give Americans the tools they need to protect their intellectual property rights, while ensuring the internet remains a vibrant forum for free speech. I look forward to working with my colleagues and with stakeholders on all sides of this issue to advance this much-needed bill.”

    “Tennessee’s thriving creative community must be protected from the theft of creative works by foreign criminals,” said Senator Blackburn. “Foreign piracy operations jeopardize the American creative industry through phishing, identity theft, and financial fraud, and the Block BEARD Act would protect creators by enabling them to pursue legal action in U.S. federal courts against these criminals.”

    “I’m proud to join my colleagues in this effort to protect creators and consumers alike from foreign criminal enterprises seeking to steal our intellectual property and exploit Americans,” said Senator Schiff. “As Ranking Member of the Senate Judiciary Subcommittee on Intellectual Property and a steadfast advocate for the creative community, I understand that robust protections are essential for innovation and economic growth in the digital age. This commonsense approach will provide the courts with the tools they need to combat foreign piracy operations and help level the playing field for American artists and creators who deserve to be fairly compensated for their work.” 

     “We are grateful to Senators Tillis, Coons, Blackburn, and Schiff for their leadership in crafting a carefully tailored proposal that empowers US federal courts to protect consumers, rightsholders, and markets from large scale foreign piracy while preserving the protections contained in the DMCA,” said Mitch Glazier, Chairman and CEO, Recording Industry Association of America. “Similar tools have been proven effective around the world over the last ten years with no harm to speech, Internet infrastructure or security, or participation online, and we strongly support this effort to create a simple, effective, judicial remedy with due process in the U.S.”

    “Piracy steals hundreds of thousands of jobs from the film and television industry, drains billions from the U.S. economy, and puts millions of American consumers at risk – and the Block BEARD Act will provide us with a safe and effective way to counter this danger and combat large-scale copyright infringement,” said Charles Rivkin, Chairman and CEO, Motion Picture Association. “With bold leadership from Senators Tillis, Coons, Blackburn, and Schiff, the Block BEARD Act will equip our nation with a tool that’s worked in dozens of countries worldwide: a narrow, targeted means to fight the worst forms of foreign piracy while protecting free speech and the rule of law.”

    Background:

    The Block BEARD Act would empower copyright owners to seek U.S. federal court orders against foreign websites dedicated to digital piracy, preventing them from making stolen content accessible to American households. To obtain relief, copyright holders must present evidence of specific harm and demonstrate the criminal nature of the targeted site. Courts could then direct internet service providers block access to the identified sites, while granting those providers immunity from liability, including for claims related to the petitioner’s actions.  The legislation includes strong public interest safeguards to protect free expression, due process, and legitimate online services operating in compliance with U.S. law. This targeted legal tool mirrors successful approaches used in over 50 democratic countries to curb foreign piracy operations that undermine creative industry jobs and expose users to malware, identity theft, and fraud.  

    Full text of the Block BEARD Act is available HERE.

    MIL OSI USA News

  • MIL-OSI Security: Delaware County Man Arrested for Sexual Exploitation of a Child

    Source: Office of United States Attorneys

    Brent G. Trimbell had Been Released from State Pretrial Custody on Rape and Aggravated Sexual Abuse Charges Before Being Charged Federally

    SYRACUSE, NEW YORK – Brent G. Trimbell, age 44, of Delaware County was arrested Sunday evening and had his initial appearance today on a charge of sexual exploitation of a child. Acting United States Attorney John A. Sarcone III and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.

    The complaint alleges that Trimbell exchanged sexually explicit messages with a female child victim, including messages persuading her to create and send him videos of her engaged in sexually explicit conduct. The child created the content Trimbell requested and sent it to him over social media. The complaint also alleges that Trimbell had sexual contact with the victim on at least three occasions and sent the victim videos depicting him masturbating.

    Trimbell was first charged by state authorities with state sex offenses related to the foregoing conduct, but late last week he was released on bail.

    If convicted of sexual exploitation of a child, Trimbell faces a maximum term of imprisonment of 30 years and a mandatory minimum term of imprisonment of 15 years, a term of supervised release of at least five years and up to life, a fine of $250,000, forfeiture of property used to commit the offense, and restitution to the victim. Trimbell also would be required to register as a sex offender.

    Acting U.S. Attorney John A. Sarcone III stated: “Trimbell was charged with serious state sex offenses but was released on bail. Now, Trimbell is in federal custody—facing serious federal offenses—which if convicted, will result in a mandatory term of imprisonment of 15 years.  This is how we keep the children in our community safe.”

    FBI Special Agent in Charge Craig L. Tremaroli stated: “FBI Albany is incredibly thankful for the swift coordination from our partners at the Delaware County Sheriff’s Office and United States Attorney’s Office that has now resulted in serious federal charges against Mr. Trimbell. The FBI, together with our law enforcement partners, will continue to coordinate with our state and local partners to share the information and resources needed to ensure anyone hurting our most vulnerable is investigated and brought to justice.”

    Following the initial appearance, Trimbell was remanded to the custody of the United States Marshals Service pending further proceedings.

    The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.

    This case is being investigated by the Federal Bureau of Investigation and the Delaware County Sheriff’s Office. Assistant U.S. Attorney Michael D. Gadarian is prosecuting the case as part of Project Safe Childhood.

    Project Safe Childhood is a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.

    MIL Security OSI

  • MIL-OSI: Bitget Launchpool Features GAIA with over 4.7M Tokens in Rewards

    Source: GlobeNewswire (MIL-OSI)

    VICTORIA, Seychelles, July 29, 2025 (GLOBE NEWSWIRE) — Bitget, the leading cryptocurrency exchange and Web3 company, has announced the feature of Gaia (GAIA) on its launchpool as well as a listing for spot trading. Gaia is a decentralized computing infrastructure that enables everyone to create, deploy, scale, and monetize their own AI agents. Trading for the GAIA/USDT pair will begin on 30 July 2025, 09:00 (UTC).

    Bitget’s GAIA Launchpool campaign is offering 4,741,300 GAIA in total rewards. Eligible users can participate by locking BGB during the event, which runs from 30 July 2025, 09:00 to 1 August 2025, 09:00 (UTC). In the BGB locking pool, users can lock between 5 and 50,000 BGB, with maximum limits determined by their VIP tier, for a chance to earn a share of 3,858,300 GAIA.

    Alongside the listing, Bitget will launch a CandyBomb campaign with 633,000 GAIA available in rewards. Of this, 211,000 GAIA will be allocated to the GAIA, BTC and BGB trading pool for new users, while 422,000 GAIA will be up for grabs in the GAIA trading pool for existing users. The campaign will run from 30 July 2025, 9:00 till 6 Aug 2025, 9:00 (UTC).

    Bitget will also run an X Giveaway, where 750 qualified users will have the chance to win a share of 125,000 GAIA. The campaign runs from 30 July 2025, 9:00 to 1 August 2025, 9:00 (UTC). To participate, users must follow Bitget and Gaia on X, quote the giveaway post with the hashtag #GAIAxBitgetLaunchpool, tag a friend, sign up, deposit or trade GAIA on Bitget, and complete the form linked in the post.

    In addition, a community campaign will run from 30 July 2025, 9:00 to 6 Aug 2025, 9:00 (UTC), offering another 125,000 GAIA to be shared among 750 qualified users. To join, users need to become members of both the Bitget Discord and BGB Holders Group, sign up, make a net deposit of over 100 USDT, and complete any GAIA/USDT spot trade.

    Gaia is a decentralized AI network that enables users to host, own, and interact with autonomous AI agents in a secure and transparent environment. Built on blockchain technology, Gaia ensures each AI node operates independently while contributing to a broader, interconnected ecosystem. Users can deploy advanced models such as Qwen2 0.5B Instruct and customize them using personal or business data to create tailored AI services.

    By prioritizing data sovereignty and privacy, Gaia introduces a new model for decentralized AI development and monetization. Its user-friendly infrastructure allows individuals to easily install node software, configure models, and participate in domain-based AI collaboration, unlocking new possibilities for innovation in the Web3 space.

    Bitget continues to expand its offerings, positioning itself as a leading platform for cryptocurrency trading. The exchange has established a reputation for innovative solutions that empower users to explore crypto within a secure CeDeFi ecosystem.

    With an extensive selection of over 800 cryptocurrency pairs and a commitment to broaden its offerings to more than 900 trading pairs, Bitget connects users to various ecosystems, including Bitcoin, Ethereum, Solana, Base, and TON. The addition of Gaia into Bitget’s portfolio marks a significant step toward expanding its ecosystem by embracing decentralized AI innovation, empowering users with greater control over data privacy, and supporting the next generation of AI-driven Web3 applications.

    For more details on Gaia, visit here.

    About Bitget

    Established in 2018, Bitget is the world’s leading cryptocurrency exchange and Web3 company. Serving over 120 million users in 150+ countries and regions, the Bitget exchange is committed to helping users trade smarter with its pioneering copy trading feature and other trading solutions, while offering real-time access to Bitcoin price, Ethereum price, and other cryptocurrency prices. Formerly known as BitKeep, Bitget Wallet is a leading non-custodial crypto wallet supporting 130+ blockchains and millions of tokens. It offers multi-chain trading, staking, payments, and direct access to 20,000+ DApps, with advanced swaps and market insights built into a single platform.

    Bitget is driving crypto adoption through strategic partnerships, such as its role as the Official Crypto Partner of the World’s Top Football League, LALIGA, in EASTERN, SEA and LATAM markets, as well as a global partner of Turkish National athletes Buse Tosun Çavuşoğlu (Wrestling world champion), Samet Gümüş (Boxing gold medalist) and İlkin Aydın (Volleyball national team), to inspire the global community to embrace the future of cryptocurrency.

    Aligned with its global impact strategy, Bitget has joined hands with UNICEF to support blockchain education for 1.1 million people by 2027. In the world of motorsports, Bitget is the exclusive cryptocurrency exchange partner of MotoGP™, one of the world’s most thrilling championships.

    For more information, visit: Website | Twitter | Telegram | LinkedIn | Discord | Bitget Wallet

    For media inquiries, please contact: media@bitget.com

    Risk Warning: Digital asset prices are subject to fluctuation and may experience significant volatility. Investors are advised to only allocate funds they can afford to lose. The value of any investment may be impacted, and there is a possibility that financial objectives may not be met, nor the principal investment recovered. Independent financial advice should always be sought, and personal financial experience and standing carefully considered. Past performance is not a reliable indicator of future results. Bitget accepts no liability for any potential losses incurred. Nothing contained herein should be construed as financial advice. For further information, please refer to our Terms of Use.

    A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/7730d634-b088-4a1c-b437-c1051b2dd570

    The MIL Network

  • MIL-OSI: WISeKey Renews WebTrust Compliance for OISTE/WISeKey Global Root of Trust

    Source: GlobeNewswire (MIL-OSI)

    WISeKey Renews WebTrust Compliance for OISTE/WISeKey Global Root of Trust

    Geneva and Zug, Switzerland – July 29, 2025 – WISeKey International Holding Ltd (“WISeKey”, SIX: WIHN; Nasdaq: WKEY), a global leader in cybersecurity and IoT, today announced the successful renewal of its WebTrust Seal of Assurance. This renewal confirms that WISeKey’s OISTE/WISeKey Trust Model and Certification Authority (CA) services meet the rigorous audit criteria established by the WebTrust program.

    The WebTrust for Certification Authorities program, now overseen by CPA Canada, is designed to strengthen public trust in digital certificate services and the broader PKI ecosystem. By maintaining this prestigious certification, WISeKey reinforces its position as a trusted provider of secure digital identity and cybersecurity solutions.

    Comprehensive Audit Scope
    WISeKey has successfully passed WebTrust audits in the following critical domains:

    • WebTrust for Certification Authorities – validates WISeKey’s operational integrity in the issuance and lifecycle management of digital certificates.
    • WebTrust for Baseline Requirements – confirms compliance with the CA/B Forum’s security and issuance standards for publicly trusted certificates.
    • WebTrust for Extended Validation (EV) – verifies WISeKey’s adherence to strict requirements for issuing EV SSL certificates.
    • WebTrust for S/MIME – introduced in 2024, it confirms WISeKey’s secure practices in issuing digital certificates for encrypted email communications.
    • WebTrust for Network Security – newly added in 2025, itattests to WISeKey’s robust cybersecurity controls across its infrastructure.

    Advancing Trust Services
    WISeKey delivers its trust services via next-generation certificate management platforms, which offer automated provisioning (via ACME and APIs), crypto-agility, and streamlined renewal and revocation processes, reducing operational risks and improving efficiency.

    This latest certification also covers WISeKey’s newly deployed Root Certification Authorities, which serve as the foundation for its post-quantum trust services. Through its subsidiary, SEALSQ Corp (Nasdaq: LAES), WISeKey is investing heavily in quantum-resistant solutions that integrate both software and hardware components.

    Carlos Moreira, Founder and CEO of WISeKey, stated: “The renewal of our WebTrust assurance demonstrates the reliability and resilience of WISeKey’s Trust Services. It reflects our commitment to maintaining the highest standards of security and compliance for our global clients.”

    Expanding Global Recognition
    In addition to WebTrust accreditation, WISeKey undergoes regular assessments to meet the diverse compliance requirements of its multinational clientele. These include accreditations for:

    • Matter, the smart home standard supported by CSA, Google, Apple, and Amazon.
    • Wi-SUN Alliance, reflects WISeKey’s standing as a trusted root for critical IoT and home automation.
    • GSMA, ensurs compliance with mobile security standards, such as the issuance of digital certificates for eSIM.

    The Role of OISTE Roots in PKI and WISeKey Trust Services delivered by the WISeKey Holding
    OISTE Root Certificate Authorities (Root CAs) sit at the top of the PKI hierarchy. They issue and validate subordinate CAs, anchoring trust for all digital certificates downstream. If a Root CA is compromised, the entire trust chain can be invalidated, making trustworthiness and security paramount.
    Certificates issued by trusted CAs enable authentication, encryption, and integrity for digital communications. EV certificates, in particular, offer enhanced validation and are preferred for high-assurance applications.

    By maintaining WebTrust accreditation, OISTE’s Root CAs remain embedded in major browsers and operating systems, ensuring seamless interoperability and global recognition.

    WISeKey SA, another WISeKey subsidiary which specializes in RoT and PKI solutions for secure authentication and identification in IoT, Blockchain, and AI, acts as a “Trust Center” for the rest of companies of the group, centralizing and optimizing the investment in datacenter and PKI technologies.

    For more information, visit: www.oiste.org and www.wisekey.com

    About WISeKey

    WISeKey International Holding Ltd (“WISeKey”, SIX: WIHN; Nasdaq: WKEY) is a global leader in cybersecurity, digital identity, and IoT solutions platform. It operates as a Swiss-based holding company through several operational subsidiaries, each dedicated to specific aspects of its technology portfolio. The subsidiaries include (i) SEALSQ Corp (Nasdaq: LAES), which focuses on semiconductors, PKI, and post-quantum technology products, (ii) WISeKey SA which specializes in RoT and PKI solutions for secure authentication and identification in IoT, Blockchain, and AI, (iii) WISeSat AG which focuses on space technology for secure satellite communication, specifically for IoT applications, (iv) WISe.ART Corp which focuses on trusted blockchain NFTs and operates the WISe.ART marketplace for secure NFT transactions, and (v) SEALCOIN AG which focuses on decentralized physical internet with DePIN technology and house the development of the SEALCOIN platform.

    Each subsidiary contributes to WISeKey’s mission of securing the internet while focusing on their respective areas of research and expertise. Their technologies seamlessly integrate into the comprehensive WISeKey platform. WISeKey secures digital identity ecosystems for individuals and objects using Blockchain, AI, and IoT technologies. With over 1.6 billion microchips deployed across various IoT sectors, WISeKey plays a vital role in securing the Internet of Everything. The company’s semiconductors generate valuable Big Data that, when analyzed with AI, enable predictive equipment failure prevention. Trusted by the OISTE/WISeKey cryptographic Root of Trust, WISeKey provides secure authentication and identification for IoT, Blockchain, and AI applications. The WISeKey Root of Trust ensures the integrity of online transactions between objects and people. For more information on WISeKey’s strategic direction and its subsidiary companies, please visit www.wisekey.com.

    Disclaimer
    This communication expressly or implicitly contains certain forward-looking statements concerning WISeKey International Holding Ltd and its business. Such statements involve certain known and unknown risks, uncertainties and other factors, which could cause the actual results, financial condition, performance or achievements of WISeKey International Holding Ltd to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. WISeKey International Holding Ltd is providing this communication as of this date and does not undertake to update any forward-looking statements contained herein as a result of new information, future events or otherwise.

    This press release does not constitute an offer to sell, or a solicitation of an offer to buy, any securities, and it does not constitute an offering prospectus within the meaning of the Swiss Financial Services Act (“FinSA”), the FinSa’s predecessor legislation or advertising within the meaning of the FinSA. Investors must rely on their own evaluation of WISeKey and its securities, including the merits and risks involved. Nothing contained herein is, or shall be relied on as, a promise or representation as to the future performance of WISeKey.

    Press and Investor Contacts

    WISeKey International Holding Ltd
    Company Contact: Carlos Moreira
    Chairman & CEO
    Tel: +41 22 594 3000
    info@wisekey.com 
    WISeKey Investor Relations (US) 
    The Equity Group Inc.
    Lena Cati
    Tel: +1 212 836-9611
    lcati@theequitygroup.com

    The MIL Network

  • MIL-OSI Banking: [Testimonials] Samsung EEIP: Driving Measurable Growth in Black-Owned SMMEs

    Source: Samsung

    As part of Samsung’s R280-million worth Equity Equivalent Investment Programme (EEIP) launched in 2019, in collaboration with the Department of Trade, Industry and Competition (Dtic) – the partners recently opened the third call, inviting all suitable, black-owned ICT and Service Centre SMMEs to take part in this year’s Samsung EEIP Enterprise Development (ED) Programme.
     
    This Samsung ED programme which aims to empower black-owned ICT and Service Centre enterprises to boost the economy and create jobs through entrepreneurship and business support – involves initiatives like grant funding, specialist business development support and access to supply chain opportunities for black-owned and women-owned small, medium and micro enterprises. This programme’s efforts are aligned with the country’s transformation goals and aim to foster a more inclusive economy. 
     
    In an effort to inspire potential future participants coupled by Samsung’s need to measure the impact and effectiveness of its CSR initiatives – the company took the time to speak to two of the beneficiaries from the ED programme in the last few years. When asked how Samsung EEIP provided the participating SMME owners with the confidence and support needed to mean business about their businesses, this is what they had to say:
     
    One of the beneficiaries is Thoriso Rangata. He is a 32-year-old, businessman and the owner of KTO Digital, which focuses on Business Process Automation, Software Development Services and Background Screening Software as a Service (SaaS) solution provider. Thoriso says from being part of the programme, he gained the reassurance and confidence he needed.
     
    Thoriso based in Johannesburg, originally from Limpopo, became part of the programme when he responded to a public call for applications in 2020. At the time, his business, KTO Digital, needed support in order to meet the company’s growth objectives. Thoriso is a true example of how the programme is able to empowerment ICT entrepreneurship as well as stimulate job creation and assist in contributing to economic growth. 
     

     
    Since being part of the EEIP programme, Thoriso’s company won the Nedbank Business of the Year Award in 2022. In the same year, his company launched their own product and received accreditation as a credit bureau business.
     
    The support he received from the programme has allowed KTO Digital to create over 20 jobs between 2021 to date. This is in line with the programme’s objective of creating both direct and indirect jobs, with a particular emphasis on Black Economic Empowerment (BEE) and the development of township economy.
     
    These achievements demonstrate how the EEIP programme has provided Thoriso and his team the opportunity to pursue their passions as well as bringing security and stability – not only to his employees but also to their families’ livelihoods. Thoriso explains, “the other direct benefits that KTO Digital received from being part of the programme included: Grant Funding, Asset Financing as well as Continuous Business Mentorship – and this, is exactly what our business needed in order to move forward.”
     
    He added: “As a company, we strongly believe that the skills we acquired from this EEIP programme, which included Business regulatory governance structures and strategic business growth approaches/methods – have contributed to the success of our business to date. This programme has really helped us to achieve our goals, and it has taken our business to new heights.”
     
    Based in Sinoville, Tshwane, the second EEIP beneficiary is Dumisani Mkhwebane – a 38-year-old businessman who co-owns and runs TIA-Solutions – an IT company with Boitumelo Mkhwebane – a 36-year-old, businesswoman. Their business focuses on Secure Scalable IT Solutions by building cloud infrastructure through collaborative team efforts. This provides their customers with resilience from cyber-attacks and contributes to productivity, efficiency as well as business continuity.
     

     
    Dumisani explained further: “As TIA-Solutions, we partner with multinational vendors such as Microsoft, Fortinet and Veritas which allow us to give our customers end-to-end, tailor-made IT solutions that cater to their business needs.”
     
    He also elaborated on how the company entered into the programme, Dumisani said: “We saw an advert on LinkedIn in 2023 about the EEIP Enterprise ED and decided to enter. We then received Capital Investment to buy computer equipment for our internal operations as well as company vehicles. In addition, we received Business Training and Skills development for our employees as well as other vital skills that we needed which included: Business Management Skills, Marketing and how to better position our company.
     
    “The programme has both Financial and Non-Financial benefits for Business Growth and Sustainability,” Dumisani added. “It is for these reasons that we would like to encourage other SMEs to apply to be part of the programme. We strongly believe that the ED programme will help grow other SMEs like it did ours and it will help a great deal in upskilling their workforce.”
     
    Importantly, this Samsung ED programme seeks to inspire potential future participants by demonstrating how the EEIP can help them kick-start their businesses. The tangible results articulated by these beneficiaries are a confirmation of Samsung’s commitment to empowering entrepreneurs and providing a reliable support system to SMEs in the country.
     
    Nicky Beukes, Samsung South Africa EEIP Project Manager concluded: “It is clear from these testimonials that through the reassurance and confidence offered by this Samsung EEIP ED programme – we are slowly, but surely achieving our intention of shifting the perception of potential candidates from “I’m working on something” to “I run a successful business”. As Samsung, we are happy to be delivering according to our programme’s overall and multi-faceted objectives which include the creation of a more inclusive and prosperous society through strategic investments, skills development and entrepreneurial support.” 
     

     

    MIL OSI Global Banks

  • MIL-OSI: Coastal Financial Corporation Announces Second Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    EVERETT, Wash., July 29, 2025 (GLOBE NEWSWIRE) — Coastal Financial Corporation (Nasdaq: CCB) (the “Company”, “Coastal”, “we”, “our”, or “us”), the holding company for Coastal Community Bank (the “Bank”), through which it operates a community-focused bank segment (“community bank”) with an industry leading banking as a service (“BaaS”) segment (“CCBX”), today reported unaudited financial results for the quarter ended June 30, 2025, including net income of $11.0 million, or $0.71 per diluted common share, compared to $9.7 million, or $0.63 per diluted common share, for the three months ended March 31, 2025 and $11.6 million, or $0.84 per diluted common share, for the three months ended June 30, 2024.

    Management Discussion of the Second Quarter Results

    “Second quarter of 2025 saw a lower provision for credit losses as a result of an improvement in the performance of the CCBX portfolio and our focus on originating higher quality CCBX loans resulting in lower historical loss factors. Noninterest expenses were fairly flat compared to last quarter related to continued onboarding and implementation costs for partnerships and products within CCBX and investments in technology. We believe these investments are important to the long-term success and scalability of the Company,” stated CEO Eric Sprink. “We had another quarter of quality deposit growth of $122.3 million during the second quarter, and our CCBX program fee income, excluding nonrecurring revenue, increased 8.2% compared to the prior quarter.”

    Key Points for Second Quarter and Our Go-Forward Strategy

    • CCBX Making Progress on Launching New Programs. As of June 30, 2025 we had two partners in testing, two in implementation/onboarding, five signed letters of intent (LOI) and we have an active pipeline of new partners along with new products with existing partners for the balance of 2025 and into 2026. Total BaaS program fee income was $6.8 million, excluding $504,000 in nonrecurring revenue, for the three months ended June 30, 2025, an increase of $512,000, or 8.2%, from the three months ended March 31, 2025. We continue to have contracts with our partners that fully indemnify us against fraud and 98.8% against credit risk as of June 30, 2025.
    • Continued Investments in Future Growth. Total noninterest expense of $72.8 million was up $843,000, or 1.2%, as compared to $72.0 million in the quarter ended March 31, 2025, mainly driven by higher data processing and software costs partially offset by lower legal and professional expenses. With the increase in new CCBX partners and the launch of products with existing partners in 2025, we expect that expenses will be predominantly incurred at the outset, emphasizing compliance and operational risk management. This will occur before the new programs or products start to produce revenue. As a result, we believe expense growth should moderate considerably in the second half of 2025, with new programs or products starting to produce revenue to offset the initial up-front expenses.
    • Favorable Trends On, and Off Balance Sheet. Average deposits were $3.93 billion, an increase of $221.6 million, or 6.0%, over the quarter ended March 31, 2025, driven primarily by growth in CCBX partner programs and the addition of a new deposit partner. During the second quarter of 2025, we sold $1.30 billion of loans, the majority of which were credit card receivables. We retain a portion of the fee income on sold credit card loans. As of June 30, 2025 there were 313,827 off balance sheet credit cards with fee earning potential, an increase of 76,803 compared to the quarter ended March 31, 2025 and an increase of 286,146 from June 30, 2024.

    Second Quarter 2025 Financial Highlights

    The tables below outline some of our key operating metrics.

      Three Months Ended
    (Dollars in thousands, except share and per share data; unaudited) June 30,
    2025
      March 31,
    2025
      December 31,
    2024
      September 30,
    2024
      June 30,
    2024
    Income Statement Data:                  
    Interest and dividend income $ 107,797     $ 104,907     $ 102,448     $ 105,165     $ 97,422  
    Interest expense   31,060       28,845       30,071       32,892       31,250  
    Net interest income   76,737       76,062       72,377       72,273       66,172  
    Provision for credit losses   32,211       55,781       61,867       70,257       62,325  
    Net interest income after
    provision for credit losses
      44,526       20,281       10,510       2,016       3,847  
    Noninterest income   42,693       63,477       74,100       78,790       69,138  
    Noninterest expense   72,832       71,989       67,411       64,424       57,964  
    Provision for income tax   3,359       2,039       3,832       2,926       3,425  
    Net income $ 11,028     $ 9,730     $ 13,367     $ 13,456     $ 11,596  
                       
      As of and for the Three Month Period
      June 30,
    2025
      March 31,
    2025
      December 31,
    2024
      September 30,
    2024
      June 30,
    2024
    Balance Sheet Data:                  
    Cash and cash equivalents $ 719,759     $ 624,302     $ 452,513     $ 484,026     $ 487,245  
    Investment securities   45,577       46,991       47,321       48,620       49,213  
    Loans held for sale   60,474       42,132       20,600       7,565        
    Loans receivable   3,540,330       3,517,359       3,486,565       3,413,894       3,321,813  
    Allowance for credit losses   (164,794 )     (183,178 )     (176,994 )     (171,674 )     (148,878 )
    Total assets   4,480,559       4,339,282       4,121,208       4,064,472       3,959,549  
    Interest bearing deposits   3,358,216       3,251,599       3,057,808       3,047,861       2,949,643  
    Noninterest bearing deposits   555,355       539,630       527,524       579,427       593,789  
    Core deposits (1)   3,441,624       3,321,772       3,123,434       3,190,869       3,528,339  
    Total deposits   3,913,571       3,791,229       3,585,332       3,627,288       3,543,432  
    Total borrowings   47,960       47,923       47,884       47,847       47,810  
    Total shareholders’ equity $ 461,709     $ 449,917     $ 438,704     $ 331,930     $ 316,693  
                       
    Share and Per Share Data (2):                  
    Earnings per share – basic $ 0.73     $ 0.65     $ 0.97     $ 1.00     $ 0.86  
    Earnings per share – diluted $ 0.71     $ 0.63     $ 0.94     $ 0.97     $ 0.84  
    Dividends per share                            
    Book value per share (3) $ 30.59     $ 29.98     $ 29.37     $ 24.51     $ 23.54  
    Tangible book value per share (4) $ 30.59     $ 29.98     $ 29.37     $ 24.51     $ 23.54  
    Weighted avg outstanding shares – basic   15,033,296       14,962,507       13,828,605       13,447,066       13,412,667  
    Weighted avg outstanding shares – diluted   15,447,923       15,462,041       14,268,229       13,822,270       13,736,508  
    Shares outstanding at end of period   15,093,036       15,009,225       14,935,298       13,543,282       13,453,805  
    Stock options outstanding at end of period   126,654       163,932       186,354       198,370       286,119  
                                           

    See footnotes that follow the tables below

      As of and for the Three Month Period
      June 30,
    2025
      March 31,
    2025
      December 31,
    2024
      September 30,
    2024
      June 30,
    2024
    Credit Quality Data:                  
    Nonperforming assets (5) to total assets   1.36 %     1.30 %     1.52 %     1.63 %     1.34 %
    Nonperforming assets (5) to loans receivable and OREO   1.72 %     1.60 %     1.80 %     1.94 %     1.60 %
    Nonperforming loans (5) to total loans receivable   1.72 %     1.60 %     1.80 %     1.94 %     1.60 %
    Allowance for credit losses to nonperforming loans   270.7 %     325.0 %     282.5 %     258.7 %     279.9 %
    Allowance for credit losses to total loans receivable   4.65 %     5.21 %     5.08 %     5.03 %     4.48 %
    Gross charge-offs $ 53,780     $ 53,686     $ 61,585     $ 53,305     $ 55,207  
    Gross recoveries $ 4,467     $ 5,486     $ 5,223     $ 4,516     $ 2,254  
    Net charge-offs to average loans (6)   5.54 %     5.57 %     6.56 %     5.60 %     6.54 %
                       
    Capital Ratios:                  
    Company                  
    Tier 1 leverage capital   10.39 %     10.67 %     10.78 %     8.40 %     8.31 %
    Common equity Tier 1 risk-based capital   12.32 %     12.13 %     12.04 %     9.24 %     9.03 %
    Tier 1 risk-based capital   12.41 %     12.22 %     12.14 %     9.34 %     9.13 %
    Total risk-based capital   14.90 %     14.73 %     14.67 %     11.89 %     11.70 %
    Bank                  
    Tier 1 leverage capital   10.33 %     10.57 %     10.64 %     9.29 %     9.24 %
    Common equity Tier 1 risk-based capital   12.36 %     12.12 %     11.99 %     10.34 %     10.15 %
    Tier 1 risk-based capital   12.36 %     12.12 %     11.99 %     10.34 %     10.15 %
    Total risk-based capital   13.65 %     13.42 %     13.28 %     11.63 %     11.44 %
     
    (1) Core deposits are defined as all deposits excluding brokered and time deposits.
    (2) Share and per share amounts are based on total actual or average common shares outstanding, as applicable.
    (3) We calculate book value per share as total shareholders’ equity at the end of the relevant period divided by the outstanding number of our common shares at the end of each period.
    (4) Tangible book value per share is a non-GAAP financial measure. We calculate tangible book value per share as total shareholders’ equity at the end of the relevant period, less goodwill and other intangible assets, divided by the outstanding number of our common shares at the end of each period. The most directly comparable GAAP financial measure is book value per share. We had no goodwill or other intangible assets as of any of the dates indicated. As a result, tangible book value per share is the same as book value per share as of each of the dates indicated.
    (5) Nonperforming assets and nonperforming loans include loans 90+ days past due and accruing interest.
    (6) Annualized calculations.
     

    Key Performance Ratios

    Return on average assets (“ROA”) was 0.99% for the quarter ended June 30, 2025 compared to 0.93% and 1.21% for the quarters ended March 31, 2025 and June 30, 2024, respectively.  ROA for the quarter ended June 30, 2025, increased 0.06% and decreased 0.22% compared to March 31, 2025 and June 30, 2024, respectively. Noninterest expenses were slightly higher for the quarter ended June 30, 2025 compared to the quarter ended March 31, 2025 due to continued investments in growth, technology and risk management, partially offset by a decrease in legal and professional expenses. Noninterest expenses were higher than the quarter ended June 30, 2024 due primarily to an increase in salaries and employee benefits, data processing and software licenses and legal and professional expenses, all of which are related to the growth of Company and investments in technology and risk management.

    Yield on earning assets and yield on loans receivable decreased 0.40% and 0.22%, respectively, for the quarter ended June 30, 2025 compared to the quarter ended March 31, 2025, largely due to a decrease in CCBX loan yield. Lower rate capital call lines increased $66.2 million, or 49.6%, compared to the quarter ended March 31, 2025. These loans bear a lower rate of interest, but have less credit risk due to the way the loans are structured compared to other commercial loans. Average loans receivable as of June 30, 2025 increased $56.1 million compared to March 31, 2025 as net CCBX loans continue to grow, despite selling $1.30 billion in CCBX loans during the quarter ended June 30, 2025.

    The quarter over quarter volatility in the efficiency ratio and noninterest income to average asset performance metrics was driven by a higher-quality CCBX loan-mix from a credit quality perspective, which effectively reduced the credit enhancement required within non-interest income due to lower net-charge off activity as a percent of total loans which lowered our provision expense. These items have a neutral impact to net income although impacted the quarter-to-quarter metrics due to lower reported noninterest income. Additionally, results for the three months ended June 30, 2025 also included a net $439,000 loss on equity securities due to the re-valuation of a privately held equity stake, which CCB reviews quarterly. Management doesn’t believe the write-down is indicative of longer-term concerns of the portfolio company’s health at this time.

    The following table shows the Company’s key performance ratios for the periods indicated.  

        Three Months Ended
    (unaudited)   June 30,
    2025
      March 31,
    2025
      December 31,
    2024
      September 30,
    2024
      June 30,
    2024
                         
    Return on average assets (1)   0.99 %   0.93 %   1.30 %   1.34 %   1.21 %
    Return on average equity (1)   9.72 %   8.91 %   14.90 %   16.67 %   15.22 %
    Yield on earnings assets (1)   9.92 %   10.32 %   10.24 %   10.79 %   10.49 %
    Yield on loans receivable (1)   11.11 %   11.33 %   11.12 %   11.44 %   11.22 %
    Cost of funds (1)   3.13 %   3.11 %   3.24 %   3.62 %   3.60 %
    Cost of deposits (1)   3.10 %   3.08 %   3.21 %   3.59 %   3.58 %
    Net interest margin (1)   7.06 %   7.48 %   7.23 %   7.42 %   7.12 %
    Noninterest expense to average assets (1)   6.52 %   6.87 %   6.54 %   6.42 %   6.05 %
    Noninterest income to average assets (1)   3.82 %   6.06 %   7.19 %   7.85 %   7.22 %
    Efficiency ratio   60.98 %   51.59 %   46.02 %   42.65 %   42.84 %
    Loans receivable to deposits (2)   92.01 %   93.89 %   97.82 %   94.33 %   93.75 %
     
    (1) Annualized calculations shown for quarterly periods presented.
    (2) Includes loans held for sale.
     

    Management Outlook; CEO Eric Sprink

    “As we look to the latter half of 2025 and beyond, we expect to see additional new partner engagements, given that our CCBX pipeline remains strong with high-quality opportunities. We are committed to continuing to invest in our technology and risk management infrastructure to support our growth in the BaaS sector which is expected to produce future efficiencies, automation and cost reductions as we grow. The improvement in the performance of the CCBX portfolio and lower historical loss factors within the CCBX portfolio are positive indicators that our risk reduction and credit improvement efforts are proving effective, alongside the fraud and credit indemnifications provided by our partners. Additionally, we saw an increase of $512,000, or 8.2%, from the three months ended March 31, 2025 in BaaS program income, excluding nonrecurring revenue, namely in transaction and interchange income. We anticipate this growth to continue in future periods as our partner activities expand and grow.” said CEO Eric Sprink.

    Coastal Financial Corporation Overview

    The Company has one main subsidiary, the Bank, which consists of three segments: CCBX, the community bank and treasury & administration.  The CCBX segment includes all of our BaaS activities, the community bank segment includes all community banking activities and the treasury & administration segment includes treasury management, overall administration and all other aspects of the Company.  

    CCBX Performance Update

    Our CCBX segment continues to evolve, and we have 29 relationships, at varying stages, including two partners in testing, two in implementation/onboarding, and five signed LOI as of June 30, 2025.  We continue to refine the criteria for CCBX partnerships, exploring relationships with larger and more established partners, with experienced management teams, existing customer bases and strong financial positions. We also will consider promising medium and smaller sized partners that align with our approach and terms including financial wherewithal and will continue to exit relationships where it makes sense for us to do so.

    While we explore relationships with new partners we continue to expand our product offerings with existing CCBX partners. As we become more proficient in the BaaS space we aim to cultivate new relationships that align with our long-term goals. We believe that a strategy of adding new partnerships and launching new products with existing partners allows us to expand and grow our customer base with a modest increase in regulatory risk given our operational history with them. Increases in partner activity/transaction counts is positively impacting noninterest income and we expect this trend to continue as current products grow and new products are introduced. We plan to continue selling loans as part of our strategy to balance partner and lending limits, and manage the loan portfolio and credit quality. We retain a portion of the fee income for our role in processing transactions on sold credit card loans, and will continue this strategy to provide an on-going revenue source with no on balance sheet risk or capital requirement.

    As we build our deposit base, we will be able to sweep deposits off and on the balance sheet as needed. This deposit sweep capability allows us to better manage liquidity and deposit programs. At June 30, 2025 we swept off $478.7 million in deposits for FDIC insurance and liquidity purposes. Robinhood has entered the production testing phase for its suite of deposit products, signaling continued momentum in our strategic partnership pipeline. Dave finalized production testing in Q2 and is poised to initiate its beta launch, expanding our footprint in digital banking solutions. The introduction of theses products are expected to diversify and grow deposits.

    The following table illustrates the activity and evolution in CCBX relationships for the periods presented.

      As of
    (unaudited) June 30, 2025 March 31,
    2025
    June 30, 2024
    Active 20 19 19
    Friends and family / testing 2 2 1
    Implementation / onboarding 2 3 1
    Signed letters of intent 5 1 0
    Total CCBX relationships 29 25 21
     

    CCBX loans increased $29.5 million, or 1.8%, to $1.68 billion despite selling $1.30 billion in loans during the three months ended June 30, 2025. In accordance with the program agreement for one partner, we are responsible for losses on 5% of that portfolio. At June 30, 2025 the portion of that portfolio for which we are responsible represented $19.8 million in loans.

    The following table details the CCBX loan portfolio:

    CCBX   As of
        June 30, 2025   March 31, 2025   June 30, 2024
    (dollars in thousands; unaudited)   Balance   % to Total   Balance   % to Total   Balance   % to Total
    Commercial and industrial loans:                        
    Capital call lines   $ 199,675     11.9 %   $ 133,466     8.1 %   $ 109,133     7.7 %
    All other commercial & industrial loans     26,142     1.6       29,702     1.8       41,757     3.0  
    Real estate loans:                        
    Residential real estate loans     234,786     14.0       285,355     17.3       287,950     20.4  
    Consumer and other loans:                        
    Credit cards     533,925     31.8       532,775     32.2       549,241     39.0  
    Other consumer and other loans     686,321     40.7       670,026     40.6       422,136     29.9  
    Gross CCBX loans receivable     1,680,849     100.0 %     1,651,324     100.0 %     1,410,217     100.0 %
    Net deferred origination (fees) costs     (569 )         (498 )         (438 )    
    Loans receivable   $ 1,680,280         $ 1,650,826         $ 1,409,779      
    Loan Yield – CCBX (1)(2)     16.22 %         16.88 %         17.75 %    
     
    (1) CCBX yield does not include the impact of BaaS loan expense.  BaaS loan expense represents the amount paid or payable to partners for credit enhancements and originating & servicing CCBX loans. See reconciliation of the non-GAAP measures at the end of this earnings release for the impact of BaaS loan expense on CCBX loan yield.
    (2) Loan yield is annualized for the three months ended for each period presented and includes loans held for sale and nonaccrual loans.
     

    The increase in CCBX loans in the quarter ended June 30, 2025, includes an increase of $66.2 million, or 49.6%, in capital call lines as a result of normal balance fluctuations and business activities, a decrease of $50.6 million, or 17.7%, in residential real estate loans and an increase of $17.4 million or 1.5%, in other consumer and other loans. We continue to monitor and manage the CCBX loan portfolio, and sold $1.30 billion in CCBX loans during the quarter ended June 30, 2025 compared to sales of $744.6 million in the quarter ended March 31, 2025. We continue to reposition ourselves by managing CCBX credit and concentration levels in an effort to optimize our loan portfolio earnings and generate off balance sheet fee income. CCBX loan yield decreased 0.67% for the quarter ended June 30, 2025 compared to the quarter ended March 31, 2025 as a result of an increase in lower rate capital call lines and overall mix of loans compared to the quarter ended March 31, 2025, these loans bear a lower rate of interest, but have less credit risk due to the way the loans are structured compared to other commercial loans.

    The following chart shows the growth in credit card accounts that generate fee income. This includes accounts with balances, which are included in our loan totals, and accounts that have been sold and have no corresponding balance in our loan totals, and that generate fee income.

    The following chart shows the growth in active CCBX debit cards which are sources of interchange income.

    The following table details the CCBX deposit portfolio:

    CCBX   As of
        June 30, 2025   March 31, 2025   June 30, 2024
    (dollars in thousands; unaudited)   Balance   % to Total   Balance   % to Total   Balance   % to Total
    Demand, noninterest bearing   $ 60,448     2.6 %   $ 58,416     2.6 %   $ 62,234     3.0 %
    Interest bearing demand and
    money market
        2,231,159     94.5       2,145,608     94.6       1,989,105     96.7  
    Savings     51,523     2.2       16,625     0.7       5,150     0.3  
    Total core deposits     2,343,130     99.3       2,220,649     97.9       2,056,489     100.0  
    Other deposits     17,013     0.7       46,359     2.1            
    Total CCBX deposits   $ 2,360,143     100.0 %   $ 2,267,008     100.0 %   $ 2,056,489     100.0 %
    Cost of deposits (1)     3.96 %         4.01 %         4.92 %    
     
    (1) Cost of deposits is annualized for the three months ended for each period presented.
     

    CCBX deposits increased $93.1 million, or 4.1%, in the three months ended June 30, 2025 to $2.36 billion as a result of growth and normal balance fluctuations. This excludes the $478.7 million in CCBX deposits that were transferred off balance sheet for increased Federal Deposit Insurance Corporation (“FDIC”) insurance coverage and sweep purposes, compared to $406.3 million for the quarter ended March 31, 2025. Amounts in excess of FDIC insurance coverage are transferred, using a third-party facilitator/vendor sweep product, to participating financial institutions.

    Community Bank Performance Update

    In the quarter ended June 30, 2025, the community bank saw net loans decrease $6.5 million, or 0.3%, to $1.86 billion, as a result of normal balance fluctuations.

    The following table details the Community Bank loan portfolio:

    Community Bank   As of
        June 30, 2025   March 31, 2025   June 30, 2024
    (dollars in thousands; unaudited)   Balance   % to Total   Balance   % to Total   Balance   % to Total
    Commercial and industrial loans   $ 149,926     8.0 %   $ 149,104     8.0 %   $ 144,436     7.5 %
    Real estate loans:                        
    Construction, land and land development loans     194,150     10.4       166,551     8.9       173,064     9.0  
    Residential real estate loans     198,844     10.7       202,920     10.8       229,639     12.0  
    Commercial real estate loans     1,310,882     70.2       1,340,647     71.6       1,357,979     70.8  
    Consumer and other loans:                        
    Other consumer and other loans     12,230     0.7       13,326     0.7       14,220     0.7  
    Gross Community Bank loans receivable     1,866,032     100.0 %     1,872,548     100.0 %     1,919,338     100.0 %
    Net deferred origination fees     (5,982 )         (6,015 )         (7,304 )    
    Loans receivable   $ 1,860,050         $ 1,866,533         $ 1,912,034      
    Loan Yield(1)     6.53 %         6.53 %         6.52 %    
     
    (1) Loan yield is annualized for the three months ended for each period presented and includes loans held for sale and nonaccrual loans.
     

    Community bank loan categories decreased $29.8 million in commercial real estate loans and $1.1 million in consumer and other loans, partially offset by an increase of $27.6 million in construction, land and land development loans and $822,000 in commercial and industrial loans, during the quarter ended June 30, 2025.

    The following table details the community bank deposit portfolio:

    Community Bank   As of
        June 30, 2025   March 31, 2025   June 30, 2024
    (dollars in thousands; unaudited)   Balance   % to Total   Balance   % to Total   Balance   % to Total
    Demand, noninterest bearing   $ 494,907     31.9 %   $ 481,214     31.5 %   $ 531,555     35.7 %
    Interest bearing demand and
    money market
        545,655     35.1       560,416     36.8       876,668     59.0  
    Savings     57,933     3.7       59,493     3.9       63,627     4.3  
    Total core deposits     1,098,495     70.7       1,101,123     72.2       1,471,850     99.0  
    Other deposits     440,975     28.4       407,391     26.7       1     0.0  
    Time deposits less than $100,000     5,299     0.3       5,585     0.4       6,741     0.5  
    Time deposits $100,000 and over     8,659     0.6       10,122     0.7       8,351     0.5  
    Total Community Bank deposits   $ 1,553,428     100.0 %   $ 1,524,221     100.0 %   $ 1,486,943     100.0 %
    Cost of deposits(1)     1.77 %         1.76 %         1.77 %    
     
    (1)  Cost of deposits is annualized for the three months ended for each period presented.
     

    Community bank deposits increased $29.2 million, or 1.9%, during the three months ended June 30, 2025 to $1.55 billion. The community bank segment includes noninterest bearing deposits of $494.9 million, or 31.9%, of total community bank deposits, resulting in a cost of deposits of 1.77%, which compared to 1.76% for the quarter ended March 31, 2025.

    Net Interest Income and Margin Discussion

    Net interest income was $76.7 million for the quarter ended June 30, 2025, an increase of $675,000, or 0.9%, from $76.1 million for the quarter ended March 31, 2025, and an increase of $10.6 million, or 16.0%, from $66.2 million for the quarter ended June 30, 2024. Net interest income compared to March 31, 2025, was higher due to an increase in average loans receivable. The increase in net interest income compared to June 30, 2024 was largely related to growth in loans receivable and a reduction in cost of funds as a result of lower interest rates.  

    Net interest margin was 7.06% for the three months ended June 30, 2025, compared to 7.48% for the three months ended March 31, 2025, due primarily to a decrease in loan yield. Net interest margin, net of BaaS loan expense, (a reconciliation of the non-GAAP measures are set forth in the Non-GAAP Financial Measures section of this earnings release) was 4.07% for the three months ended June 30, 2025, compared to 4.28% for the three months ended March 31, 2025. Net interest margin was 7.12% for the three months ended June 30, 2024. The decrease in net interest margin for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 was largely due to a decrease in loan yield, partially offset by lower cost of funds. The $66.2 million of growth in lower rate capital call lines and overall mix of loans contributed to the decrease in net interest margin for the three months ended June 30, 2025. Capital call lines grew 49.6% quarter-over-quarter to $199.7 million, or 11.9% of total CCBX loans versus 8.1% in the prior quarter. These loans carry a lower interest rate, but also lower credit costs.

    Interest and fees on loans receivable increased $720,000, or 0.7%, to $98.9 million for the three months ended June 30, 2025, compared to $98.1 million for the three months ended March 31, 2025, as a result of loan growth. Interest and fees on loans receivable increased $8.0 million, or 8.8%, compared to $90.9 million for the three months ended June 30, 2024, due to an increase in outstanding balances. Net interest margin, net of BaaS loan expense (a reconciliation of the non-GAAP measures are set forth in the Non-GAAP Financial Measures section of this earnings release) decreased 0.21% for the three months ended June 30, 2025, compared to the three months ended March 31, 2025 and increased 0.07% compared the three months ended June 30, 2024.

    The following tables illustrate how net interest margin and loan yield is affected by BaaS loan expense:

    Consolidated   As of and for the Three Months Ended
    (dollars in thousands; unaudited)   June 30
    2025
      March 31
    2025
      June 30
    2024
    Net interest margin, net of BaaS loan expense:        
    Net interest margin (1)     7.06 %     7.48 %     7.12 %
    Earning assets     4,356,591       4,124,065       3,736,579  
    Net interest income (GAAP)     76,737       76,062       66,172  
    Less: BaaS loan expense     (32,483 )     (32,507 )     (29,011 )
    Net interest income, net of BaaS loan expense(2)   $ 44,254     $ 43,555     $ 37,161  
    Net interest margin, net of BaaS loan expense (1)(2)     4.07 %     4.28 %     4.00 %
    Loan income net of BaaS loan expense divided by average loans:    
    Loan yield (GAAP)(1)     11.11 %     11.33 %     11.22 %
    Total average loans receivable   $ 3,567,823     $ 3,511,724     $ 3,258,042  
    Interest and earned fee income on loans (GAAP)     98,867       98,147       90,879  
    BaaS loan expense     (32,483 )     (32,507 )     (29,011 )
    Net loan income(2)   $ 66,384     $ 65,640     $ 61,868  
    Loan income, net of BaaS loan expense, divided by average loans (1)(2)     7.46 %     7.58 %     7.64 %
     
    (1) Annualized calculations shown for periods presented.
    (2) A reconciliation of the non-GAAP measures are set forth at the end of this earnings release.
     

    Average investment securities decreased $900,000 to $46.3 million compared to the three months ended March 31, 2025 and decreased $3.5 million compared to the three months ended June 30, 2024 as a result of principal paydowns.

    Cost of funds was 3.13% for the quarter ended June 30, 2025, an increase of 2 basis points from the quarter ended March 31, 2025 and a decrease of 47 basis points from the quarter ended June 30, 2024. Cost of deposits for the quarter ended June 30, 2025 was 3.10%, compared to 3.08% for the quarter ended March 31, 2025, and 3.58% for the quarter ended June 30, 2024. The decreased cost of funds and deposits compared to June 30, 2024 were largely due to the reductions in the Fed funds rate in 2024.

    The following table summarizes the average yield on loans receivable and cost of deposits:

      For the Three Months Ended
      June 30, 2025   March 31, 2025   June 30, 2024
      Yield on
    Loans (2)
      Cost of
    Deposits (2)
      Yield on
    Loans (2)
      Cost of
    Deposits (2)
      Yield on
    Loans (2)
      Cost of
    Deposits (2)
    Community Bank 6.53 %   1.77 %   6.53 %   1.76 %   6.52 %   1.77 %
    CCBX (1) 16.22 %   3.96 %   16.88 %   4.01 %   17.75 %   4.92 %
    Consolidated 11.11 %   3.10 %   11.33 %   3.08 %   11.22 %   3.58 %
    (1) CCBX yield on loans does not include the impact of BaaS loan expense.  BaaS loan expense represents the amount paid or payable to partners for credit and fraud enhancements and originating & servicing CCBX loans. To determine Net BaaS loan income earned from CCBX loan relationships, the Company takes BaaS loan interest income and deducts BaaS loan expense to arrive at Net BaaS loan income which can be compared to interest income on the Company’s community bank loans. See reconciliation of the non-GAAP measures at the end of this earnings release for the impact of BaaS loan expense on CCBX loan yield.
    (2) Annualized calculations for periods presented.
     

    The following table illustrates how BaaS loan interest income is affected by BaaS loan expense resulting in net BaaS loan income and the associated yield:

        For the Three Months Ended
        June 30, 2025   March 31, 2025   June 30, 2024
    (dollars in thousands, unaudited)   Income / Expense   Income / expense divided by average CCBX loans (2)   Income / Expense   Income / expense divided by average CCBX loans(2)   Income / Expense   Income / expense divided by average CCBX loans (2)
    BaaS loan interest income   $ 68,264   16.22 %   $ 67,855   16.88 %   $ 60,138   17.75 %
    Less: BaaS loan expense     32,483   7.72 %     32,507   8.09 %     29,011   8.56 %
    Net BaaS loan income (1)   $ 35,781   8.50 %   $ 35,348   8.79 %   $ 31,127   9.19 %
    Average BaaS Loans(3)   $ 1,688,492       $ 1,630,088       $ 1,362,343    
     
    (1) A reconciliation of the non-GAAP measures are set forth at the end of this earnings release.
    (2) Annualized calculations shown for the periods presented.
    (3) Includes loans held for sale.
     

    Noninterest Income Discussion

    Noninterest income was $42.7 million for the three months ended June 30, 2025, a decrease of $20.8 million from $63.5 million for the three months ended March 31, 2025, and a decrease of $26.4 million from $69.1 million for the three months ended June 30, 2024.  The decrease in noninterest income for the quarter ended June 30, 2025 as compared to the quarter ended March 31, 2025 was primarily due to a decrease of $20.6 million in total BaaS income.  The $20.6 million decrease in total BaaS income included a $22.4 million decrease in BaaS credit enhancements related to the decrease in provision for credit losses due to an improvement in the performance of the CCBX portfolio and our focus on originating higher quality CCBX loans resulting in lower historical loss factors, which had a favorable impact on the provision for credit losses, partially offset by an increase of $1.0 million in BaaS program income, which includes $504,000 in nonrecurring revenue, and a $811,000 increase in BaaS fraud enhancements. Results for the three months ended June 30, 2025 also included a net $439,000 loss on equity securities due to the re-valuation of a privately held equity stake, which we review quarterly. Management doesn’t believe the write-down is indicative of longer-term concerns of the portfolio company’s health at this time. The $1.0 million increase in BaaS program income is largely due to an increase in transaction and interchange fees and includes $504,000 in nonrecurring revenue (see “Appendix B” for more information on the accounting for BaaS allowance for credit losses and credit and fraud enhancements).

    The $26.4 million decrease in noninterest income over the quarter ended June 30, 2024 was primarily due to a $28.5 million decrease in BaaS credit and fraud enhancements due to improvement in the performance of the CCBX loan portfolio, partially offset by an increase of $2.0 million in BaaS program income, which includes $504,000 in nonrecurring revenue.

    Noninterest Expense Discussion

    Total noninterest expense increased $843,000 to $72.8 million for the three months ended June 30, 2025, compared to $72.0 million for the three months ended March 31, 2025, and increased $14.9 million from $58.0 million for the three months ended June 30, 2024. The $843,000 increase in noninterest expense for the quarter ended June 30, 2025, as compared to the quarter ended March 31, 2025, was primarily due to a $659,000 increase in data processing and software licenses, an $811,000 increase in BaaS fraud expense and a $74,000 increase in legal and professional fees, partially offset by a $414,000 decrease in other expenses, $119,000 decrease in occupancy expense, $81,000 decrease in salaries and employee benefits and a $24,000 decrease in BaaS loan expense. The increase in data processing and software licenses were part of our continued investments in growth, technology and risk management. BaaS loan expense represents the amount paid or payable to partners for credit enhancements, fraud enhancements, and originating & servicing CCBX loans. BaaS fraud expense represents non-credit fraud losses on partner’s customer loan and deposit accounts. A portion of this expense is realized during the quarter in which the loss occurs, and a portion is estimated based on historical or other information from our partners.

    The increase in noninterest expenses for the quarter ended June 30, 2025 compared to the quarter ended June 30, 2024 was largely due to a $4.4 million increase in salary and employee benefits, a $1.6 million increase in data processing and software licenses due to enhancements and investments in technology, and a $2.7 million increase in legal and professional expenses, all of which are related to the growth of Company and investments in technology and risk management. Also contributing to the the increase was a $3.5 million increase in BaaS loan expense and a $1.0 million increase in BaaS fraud expense.

    Certain noninterest expenses are reimbursed by our CCBX partners. In accordance with GAAP we recognize all expenses in noninterest expense and the reimbursement of expenses from our CCBX partner in noninterest income. The following table reflects the portion of noninterest expenses that are reimbursed by partners to assist in the understanding of how the increases in noninterest expense are related to expenses incurred and reimbursed by CCBX partners:

        Three Months Ended
        June 30,   March 31,   June 30,
    (dollars in thousands; unaudited)     2025       2025       2024  
    Total noninterest expense (GAAP)   $ 72,832     $ 71,989     $ 57,964  
    Less: BaaS loan expense     32,483       32,507       29,011  
    Less: BaaS fraud expense     2,804       1,993       1,784  
    Less: Reimbursement of expenses (BaaS)     646       1,026       857  
    Noninterest expense, net of BaaS loan expense, BaaS fraud expense
    and reimbursement of expenses (BaaS) (1)
      $ 36,899     $ 36,463     $ 26,312  
     
    (1) A reconciliation of the non-GAAP measures are set forth at the end of this earnings release.
     

    Provision for Income Taxes

    The provision for income taxes was $3.4 million for the three months ended June 30, 2025, $2.0 million for the three months ended March 31, 2025 and $3.4 million for the second quarter of 2024.  The income tax provision as a percentage was higher for the three months ended June 30, 2025 compared to the quarter ended March 31, 2025 as a result of the higher net income and increase in state income tax rates, partially offset by the deductibility of certain equity awards, and was somewhat flat in dollar amount compared to the quarter ended June 30, 2024, but higher in tax rate.

    The Company is subject to various state taxes that are assessed as CCBX activities and employees expand into other states, which has increased the overall tax rate used in calculating the provision for income taxes in the current and future periods. The Company uses a federal statutory tax rate of 21.0% as a basis for calculating provision for federal income taxes and 5.14% for calculating the provision for state income taxes. The state rate increased in the quarter ended June 30, 2025 primarily as a result of a change in California’s tax laws.

    Financial Condition Overview

    Total assets increased $141.3 million, or 3.3%, to $4.48 billion at June 30, 2025 compared to $4.34 billion at March 31, 2025.  The increase is primarily comprised of a $95.5 million increase in cash and interest bearing deposits with other banks, a $23.0 million increase in loans receivable, and an $18.3 million increase in loans held for sale. Total loans receivable increased to $3.54 billion at June 30, 2025, from $3.52 billion at March 31, 2025.

    As of June 30, 2025, in addition to the $719.8 million in cash on hand the Company had the capacity to borrow up to a total of $642.7 million from the Federal Reserve Bank discount window and Federal Home Loan Bank, plus an additional $50.0 million from a correspondent bank. There were no borrowings outstanding on these lines as of June 30, 2025.

    The Company, on a stand alone basis, had a cash balance of $43.9 million as of June 30, 2025, a portion of which is retained for general operating purposes, including debt repayment, for funding $1.6 million in commitments to bank technology investment funds, with the remaining cash available to be contributed to the Bank as capital.  

    Uninsured deposits were $579.9 million as of June 30, 2025, compared to $558.8 million as of March 31, 2025.

    Total shareholders’ equity as of June 30, 2025 increased $11.8 million since March 31, 2025.  The increase in shareholders’ equity was primarily comprised of $11.0 million in net earnings combined with an increase of $764,000 in common stock outstanding as a result of equity awards exercised or vested during the three months ended June 30, 2025.

    The Company and the Bank remained well capitalized at June 30, 2025, as summarized in the following table.

    (unaudited)   Coastal Community Bank   Coastal Financial Corporation   Minimum Well Capitalized Ratios under Prompt Corrective Action (1)
    Tier 1 Leverage Capital (to average assets)   10.33 %   10.39 %   5.00 %
    Common Equity Tier 1 Capital (to risk-weighted assets)   12.36 %   12.32 %   6.50 %
    Tier 1 Capital (to risk-weighted assets)   12.36 %   12.41 %   8.00 %
    Total Capital (to risk-weighted assets)   13.65 %   14.90 %   10.00 %
     
    (1) Presents the minimum capital ratios for an insured depository institution, such as the Bank, to be considered well capitalized under the Prompt Corrective Action framework. The minimum requirements for the Company to be considered well capitalized under Regulation Y include to maintain, on a consolidated basis, a total risk-based capital ratio of 10.0 percent or greater and a tier 1 risk-based capital ratio of 6.0 percent or greater.
     

    Asset Quality

    The allowance for credit losses was $164.8 million and 4.65% of loans receivable at June 30, 2025 compared to $183.2 million and 5.21% at March 31, 2025 and $148.9 million and 4.48% at June 30, 2024. The allowance for credit loss allocated to the CCBX portfolio was $145.9 million and 8.68% of CCBX loans receivable at June 30, 2025, with $18.9 million of allowance for credit loss allocated to the community bank or 1.02% of total community bank loans receivable.

    The following table details the allocation of the allowance for credit loss as of the period indicated:

        As of June 30, 2025   As of March 31, 2025   As of June 30, 2024
    (dollars in thousands; unaudited)   Community Bank   CCBX   Total   Community Bank   CCBX   Total   Community Bank   CCBX   Total
    Loans receivable   $ 1,860,050     $ 1,680,280     $ 3,540,330     $ 1,866,533     $ 1,650,826     $ 3,517,359     $ 1,912,034     $ 1,409,779     $ 3,321,813  
    Allowance for
    credit losses
        (18,936 )     (145,858 )     (164,794 )     (18,992 )     (164,186 )     (183,178 )     (21,046 )     (127,832 )     (148,878 )
    Allowance for
    credit losses to
    total loans
    receivable
        1.02 %     8.68 %     4.65 %     1.02 %     9.95 %     5.21 %     1.10 %     9.07 %     4.48 %
                                                                             

    Net charge-offs totaled $49.3 million for the quarter ended June 30, 2025, compared to $48.2 million for the quarter ended March 31, 2025 and $53.0 million for the quarter ended June 30, 2024. Net charge-offs as a percent of average loans decreased to 5.54% for the quarter ended June 30, 2025 compared to 5.57% for the quarter ended March 31, 2025. CCBX partner agreements provide for a credit enhancement that covers the net-charge-offs on CCBX loans and negative deposit accounts by indemnifying or reimbursing incurred losses, except in accordance with the program agreement for one partner where the Company was responsible for credit losses on approximately 5% of a $296.3 million loan portfolio. At June 30, 2025, our portion of this portfolio represented $19.8 million in loans. Net charge-offs for this $19.8 million in loans were $1.3 million for the three months ended June 30, 2025, $1.1 million for the three months ended March 31, 2025 and $1.3 million for the three months ended June 30, 2024.

    The following table details net charge-offs for the community bank and CCBX for the period indicated:

        Three Months Ended
        June 30, 2025   March 31, 2025   June 30, 2024
    (dollars in thousands; unaudited)   Community Bank   CCBX   Total   Community Bank   CCBX   Total   Community Bank   CCBX   Total
    Gross charge-offs   $ 11     $ 53,769     $ 53,780     $ 4     $ 53,682     $ 53,686     $ 2     $ 55,205     $ 55,207  
    Gross recoveries     (2 )     (4,465 )     (4,467 )     (7 )     (5,479 )     (5,486 )     (4 )     (2,250 )     (2,254 )
    Net charge-offs   $ 9     $ 49,304     $ 49,313     $ (3 )   $ 48,203     $ 48,200     $ (2 )   $ 52,955     $ 52,953  
    Net charge-offs to
    average loans (1)
        0.00 %     11.71 %     5.54 %     0.00 %     11.99 %     5.57 %     0.00 %     15.63 %     6.54 %
     
    (1) Annualized calculations shown for periods presented.
     

    During the quarter ended June 30, 2025, a $31.0 million provision for credit losses was recorded for CCBX partner loans, compared to the $54.3 million provision for credit losses was recorded for CCBX partner loans for the quarter ended March 31, 2025. The provision was based on management’s analysis, bringing the CCBX allowance for credit losses to $145.9 million at June 30, 2025 compared to $164.2 million at March 31, 2025. The decrease in the allowance is due to an improvement in the performance of the CCBX portfolio and our focus on originating higher quality CCBX loans resulting in lower historical loss factors. As we continue to originate higher quality loans, these become a greater proportion of the CCBX portfolio, resulting in an improvement in expected losses and a reduced allowance. In general, CCBX loans have a higher level of expected losses than our community bank loans, which is reflected in the factors for the allowance for credit losses. Agreements with our CCBX partners provide for a credit enhancement which protects the Bank by indemnifying or reimbursing incurred losses.

    In accordance with accounting guidance, we estimate and record a provision for expected losses for these CCBX loans and reclassified negative deposit accounts. When the provision for CCBX credit losses and provision for unfunded commitments is recorded, a credit enhancement asset is also recorded on the balance sheet through noninterest income (BaaS credit enhancements). Expected losses are recorded in the allowance for credit losses. The credit enhancement asset is relieved when credit enhancement recoveries are received from the CCBX partner. If our partner is unable to fulfill their contracted obligations then the Bank could be exposed to additional credit losses. Management regularly evaluates and manages this counterparty risk with our CCBX partners.

    The factors used in management’s analysis for community bank credit losses indicated that a provision recapture of $47,000 was needed for the quarter ended June 30, 2025 compared to a provision of $65,000 and a provision recapture of $341,000 for the quarters ended March 31, 2025 and June 30, 2024, respectively. The provision recapture in the current period was due to the lower outstanding balance in the community bank loan portfolio.

    The following table details the provision expense/(recapture) for the community bank and CCBX for the period indicated:

        Three Months Ended
    (dollars in thousands; unaudited)   June 30,
    2025
      March 31,
    2025
      June 30,
    2024
    Community bank   $ (47 )   $ 65   $ (341 )
    CCBX     30,976       54,319     62,231  
    Total provision expense   $ 30,929     $ 54,384   $ 61,890  
     

    A provision for unfunded commitments of $1.5 million was recorded for the quarter ended June 30, 2025 as a result of a change in the loan mix of available balance. A provision for accrued interest receivable of $182,000 was recorded for the quarter ended June 30, 2025 on CCBX loans.

    At June 30, 2025, our nonperforming assets were $60.9 million, or 1.36%, of total assets, compared to $56.4 million, or 1.30%, of total assets, at March 31, 2025, and $53.2 million, or 1.34%, of total assets, at June 30, 2024. These ratios are impacted by nonperforming CCBX loans that are covered by CCBX partner credit enhancements. As of June 30, 2025, $55.3 million of the $57.0 million in nonperforming CCBX loans were covered by CCBX partner credit enhancements described above. Additionally, some CCBX partners have a collection practice that places certain loans on nonaccrual status to improve collectability. $20.1 million of these loans are less than 90 days past due as of June 30, 2025.

    Nonperforming assets increased $4.5 million during the quarter ended June 30, 2025, compared to the quarter ended March 31, 2025. Community bank nonperforming loans increased $3.7 million from March 31, 2025 to $3.8 million as of June 30, 2025, and CCBX nonperforming loans increased $847,000 to $57.0 million from March 31, 2025. The increase in CCBX nonperforming loans is due to an increase of $4.2 million in nonaccrual loans from March 31, 2025 to $24.4 million, partially offset by a $3.4 million decrease in CCBX loans that are past due 90 days or more and still accruing interest. As of June 30, 2025, $20.1 million in loans are under 90 days past due as a result of CCBX partners placing them on nonaccrual status to improve collectability. As a result of the type of loans (primarily consumer loans) originated through our CCBX partners we would typically anticipate that balances 90 days past due or more and still accruing will generally increase as those loan portfolios grow, therefore we believe the decrease in these past due CCBX loans is a positive performance indicator for the CCBX portfolio. Installment/closed-end and revolving/open-end consumer loans originated through CCBX lending partners will continue to accrue interest until 120 and 180 days past due, respectively and are reported as substandard, 90 days or more days past due and still accruing. There were no repossessed assets or other real estate owned at June 30, 2025. Our nonperforming loans to loans receivable ratio was 1.72% at June 30, 2025, compared to 1.60% at March 31, 2025, and 1.60% at June 30, 2024.

    For the quarter ended June 30, 2025, there were $9,000 in community bank net charge-offs and $49.3 million in net charge-offs were recorded on CCBX loans. These CCBX loans have a higher level of expected losses than our community bank loans, which is reflected in the factors for the allowance for credit losses.

    The following table details the Company’s nonperforming assets for the periods indicated.

    Consolidated As of
    (dollars in thousands; unaudited) June 30,
    2025
      March 31,
    2025
      June 30,
    2024
    Nonaccrual loans:          
    Commercial and industrial loans $ 2,333     $ 381     $  
    Real estate loans:          
    Construction, land and land development   1,697              
    Residential real estate               213  
    Commercial real estate               7,731  
    Consumer and other loans:          
    Credit cards   20,140       13,602        
    Other consumer and other loans   4,063       6,376        
    Total nonaccrual loans   28,233       20,359       7,944  
    Accruing loans past due 90 days or more:          
    Commercial & industrial loans   926       782       1,278  
    Real estate loans:          
    Residential real estate loans   1,817       2,407       2,722  
    Consumer and other loans:          
    Credit cards   23,116       27,187       36,465  
    Other consumer and other loans   6,775       5,632       4,779  
    Total accruing loans past due 90 days or more   32,634       36,008       45,244  
    Total nonperforming loans   60,867       56,367       53,188  
    Real estate owned                
    Repossessed assets                
    Total nonperforming assets $ 60,867     $ 56,367     $ 53,188  
    Total nonaccrual loans to loans receivable   0.80 %     0.58 %     0.24 %
    Total nonperforming loans to loans receivable   1.72 %     1.60 %     1.60 %
    Total nonperforming assets to total assets   1.36 %     1.30 %     1.34 %
                           

    The following tables detail the CCBX and community bank nonperforming assets which are included in the total nonperforming assets table above.

    CCBX As of
    (dollars in thousands; unaudited) June 30,
    2025
      March 31,
    2025
      June 30,
    2024
    Nonaccrual loans:          
    Commercial and industrial loans:          
    All other commercial & industrial loans $ 188     $ 192     $  
    Consumer and other loans:          
    Credit cards   20,140       13,602        
    Other consumer and other loans   4,063       6,376        
    Total nonaccrual loans   24,391       20,170        
    Accruing loans past due 90 days or more:          
    Commercial & industrial loans   926       782       1,278  
    Real estate loans:          
    Residential real estate loans   1,817       2,407       2,722  
    Consumer and other loans:          
    Credit cards   23,116       27,187       36,465  
    Other consumer and other loans   6,775       5,632       4,779  
    Total accruing loans past due 90 days or more   32,634       36,008       45,244  
    Total nonperforming loans   57,025       56,178       45,244  
    Other real estate owned                
    Repossessed assets                
    Total nonperforming assets $ 57,025     $ 56,178     $ 45,244  
    Total CCBX nonperforming assets to total consolidated assets   1.27 %     1.29 %     1.14 %
                           
    Community Bank As of
    (dollars in thousands; unaudited) June 30,
    2025
      March 31,
    2025
      June 30,
    2024
    Nonaccrual loans:          
    Commercial and industrial loans $ 2,145     $ 189     $  
    Real estate:          
    Construction, land and land development   1,697              
    Residential real estate               213  
    Commercial real estate               7,731  
    Total nonaccrual loans   3,842       189       7,944  
    Accruing loans past due 90 days or more:          
    Total accruing loans past due 90 days or more                
    Total nonperforming loans   3,842       189       7,944  
    Other real estate owned                
    Repossessed assets                
    Total nonperforming assets $ 3,842     $ 189     $ 7,944  
    Total community bank nonperforming assets to total consolidated assets   0.09 %     %     0.20 %
                           

    About Coastal Financial

    Coastal Financial Corporation (Nasdaq: CCB) (the “Company”), is an Everett, Washington based bank holding company whose wholly owned subsidiaries are Coastal Community Bank (“Bank”) and Arlington Olympic LLC.  The $4.48 billion Bank provides service through 14 branches in Snohomish, Island, and King Counties, the Internet and its mobile banking application.  The Bank provides banking as a service to digital financial service providers, companies and brands that want to provide financial services to their customers through the Bank’s CCBX segment.  To learn more about the Company visit www.coastalbank.com.

    CCB-ER

    Contact

    Eric Sprink, Chief Executive Officer, (425) 357-3659
    Joel Edwards, Executive Vice President & Chief Financial Officer, (425) 357-3687

    Forward-Looking Statements

    This earnings release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. Any statements about our management’s expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as “anticipate,” “believes,” “can,” “could,” “may,” “predicts,” “potential,” “should,” “will,” “estimate,” “plans,” “projects,” “continuing,” “ongoing,” “expects,” “intends” and similar words or phrases. Any or all of the forward-looking statements in this earnings release may turn out to be inaccurate. The inclusion of or reference to forward-looking information in this earnings release should not be regarded as a representation by us or any other person that the future plans, estimates or expectations contemplated by us will be achieved. We have based these forward looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. Our actual results could differ materially from those anticipated in such forward-looking statements as a result of risks, uncertainties and assumptions that are difficult to predict. Factors that could cause actual results to differ materially from those in the forward-looking statements include, without limitation, the risk that changes in U.S. trade policies, including the imposition of tariffs and retaliatory tariffs, may adversely impact our business, financial condition, and results of operations and those other risks and uncertainties discussed under “Risk Factors” in our Annual Report on Form 10-K for the most recent period filed and in any of our subsequent filings with the Securities and Exchange Commission.

    If one or more events related to these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may differ materially from what we anticipate. You are cautioned not to place undue reliance on forward-looking statements. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events, except as required by law.

    COASTAL FINANCIAL CORPORATION
    CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
    (Dollars in thousands; unaudited)

    ASSETS
      June 30,
    2025
      March 31,
    2025
      December 31,
    2024
      September 30,
    2024
      June 30,
    2024
    Cash and due from banks $ 29,546     $ 43,467     $ 36,533     $ 45,327     $ 59,995  
    Interest earning deposits with other banks   690,213       580,835       415,980       438,699       427,250  
    Investment securities, available for sale, at fair value   33       34       35       38       39  
    Investment securities, held to maturity, at amortized cost   45,544       46,957       47,286       48,582       49,174  
    Other investments   12,521       12,589       10,800       10,757       10,664  
    Loans held for sale   60,474       42,132       20,600       7,565        
    Loans receivable   3,540,330       3,517,359       3,486,565       3,413,894       3,321,813  
    Allowance for credit losses   (164,794 )     (183,178 )     (176,994 )     (171,674 )     (148,878 )
    Total loans receivable, net   3,375,536       3,334,181       3,309,571       3,242,220       3,172,935  
    CCBX credit enhancement asset   167,779       183,377       181,890       173,600       149,096  
    CCBX receivable   13,009       12,685       14,138       16,060       11,520  
    Premises and equipment, net   29,052       28,639       27,431       25,833       24,526  
    Lease right-of-use assets   4,891       5,117       5,219       5,427       5,635  
    Accrued interest receivable   20,849       21,109       21,104       22,315       21,620  
    Bank-owned life insurance, net   13,648       13,501       13,375       13,255       13,132  
    Deferred tax asset, net   3,829       3,912       3,600       3,083       2,221  
    Other assets   13,635       10,747       13,646       11,711       11,742  
    Total assets $ 4,480,559     $ 4,339,282     $ 4,121,208     $ 4,064,472     $ 3,959,549  
                       
    LIABILITIES AND SHAREHOLDERS’ EQUITY
    LIABILITIES                  
    Deposits $ 3,913,571     $ 3,791,229     $ 3,585,332     $ 3,627,288     $ 3,543,432  
    Subordinated debt, net   44,368       44,331       44,293       44,256       44,219  
    Junior subordinated debentures, net   3,592       3,592       3,591       3,591       3,591  
    Deferred compensation   295       310       332       369       405  
    Accrued interest payable   954       1,107       962       1,070       999  
    Lease liabilities   5,063       5,293       5,398       5,609       5,821  
    CCBX payable   32,939       29,391       29,171       37,839       32,539  
    Other liabilities   18,068       14,112       13,425       12,520       11,850  
    Total liabilities   4,018,850       3,889,365       3,682,504       3,732,542       3,642,856  
    SHAREHOLDERS’ EQUITY                  
    Common Stock   230,423       229,659       228,177       134,769       132,989  
    Retained earnings   231,287       220,259       210,529       197,162       183,706  
    Accumulated other comprehensive
    loss, net of tax
      (1 )     (1 )     (2 )     (1 )     (2 )
    Total shareholders’ equity   461,709       449,917       438,704       331,930       316,693  
    Total liabilities and shareholders’ equity $ 4,480,559     $ 4,339,282     $ 4,121,208     $ 4,064,472     $ 3,959,549  
     

    COASTAL FINANCIAL CORPORATION
    CONDENSED CONSOLIDATED STATEMENTS OF INCOME
    (Dollars in thousands, except per share amounts; unaudited)

      Three Months Ended
      June 30,
    2025
      March 31,
    2025
      December 31,
    2024
      September 30,
    2024
      June 30,
    2024
    INTEREST AND DIVIDEND INCOME                  
    Interest and fees on loans $ 98,867     $ 98,147   $ 95,575   $ 99,676   $ 90,879  
    Interest on interest earning deposits with
    other banks
      8,085       6,070     6,021     4,781     5,683  
    Interest on investment securities   626       650     661     675     686  
    Dividends on other investments   219       40     191     33     174  
    Total interest income   107,797       104,907     102,448     105,165     97,422  
    INTEREST EXPENSE                  
    Interest on deposits   30,400       28,185     29,404     32,083     30,578  
    Interest on borrowed funds   660       660     667     809     672  
    Total interest expense   31,060       28,845     30,071     32,892     31,250  
    Net interest income   76,737       76,062     72,377     72,273     66,172  
    PROVISION FOR CREDIT LOSSES   32,211       55,781     61,867     70,257     62,325  
    Net interest income/(expense) after
    provision for credit losses
      44,526       20,281     10,510     2,016     3,847  
    NONINTEREST INCOME                  
    Service charges and fees   913       860     932     952     946  
    Loan referral fees                      
    Unrealized gain (loss) on equity securities,
    net
      (439 )     16     1     2     9  
    Other income   853       682     473     486     257  
    Noninterest income, excluding BaaS program income and BaaS indemnification income   1,327       1,558     1,406     1,440     1,212  
    Servicing and other BaaS fees   1,539       1,419     1,043     1,044     1,525  
    Transaction and interchange fees   5,109       3,833     3,699     3,549     2,934  
    Reimbursement of expenses   646       1,026     812     565     857  
    BaaS program income   7,294       6,278     5,554     5,158     5,316  
    BaaS credit enhancements   31,268       53,648     62,097     70,108     60,826  
    BaaS fraud enhancements   2,804       1,993     5,043     2,084     1,784  
    BaaS indemnification income   34,072       55,641     67,140     72,192     62,610  
    Total noninterest income   42,693       63,477     74,100     78,790     69,138  
    NONINTEREST EXPENSE                  
    Salaries and employee benefits   21,401       21,482     17,955     17,060     16,973  
    Occupancy   915       1,034     958     964     985  
    Data processing and software licenses   5,541       4,882     4,049     4,338     3,977  
    Legal and professional expenses   5,962       5,888     4,606     3,597     3,311  
    Point of sale expense   69       107     89     73     72  
    Excise taxes   681       722     778     762     (706 )
    Federal Deposit Insurance Corporation
    (“FDIC”) assessments
      790       755     750     740     690  
    Director and staff expenses   612       631     683     559     470  
    Marketing   50       50     28     67     14  
    Other expense   1,524       1,938     1,752     1,482     1,383  
    Noninterest expense, excluding BaaS loan and BaaS fraud expense   37,545       37,489     31,648     29,642     27,169  
    BaaS loan expense   32,483       32,507     30,720     32,698     29,011  
    BaaS fraud expense   2,804       1,993     5,043     2,084     1,784  
    BaaS loan and fraud expense   35,287       34,500     35,763     34,782     30,795  
    Total noninterest expense   72,832       71,989     67,411     64,424     57,964  
    Income before provision for income
    taxes
      14,387       11,769     17,199     16,382     15,021  
    PROVISION FOR INCOME TAXES   3,359       2,039     3,832     2,926     3,425  
    NET INCOME $ 11,028     $ 9,730   $ 13,367   $ 13,456   $ 11,596  
    Basic earnings per common share $ 0.73     $ 0.65   $ 0.97   $ 1.00   $ 0.86  
    Diluted earnings per common share $ 0.71     $ 0.63   $ 0.94   $ 0.97   $ 0.84  
    Weighted average number of common shares
    outstanding:
                     
    Basic   15,033,296       14,962,507     13,828,605     13,447,066     13,412,667  
    Diluted   15,447,923       15,462,041     14,268,229     13,822,270     13,736,508  
                                     

    COASTAL FINANCIAL CORPORATION
    AVERAGE BALANCES, YIELDS, AND RATES – QUARTERLY
    (Dollars in thousands; unaudited)

      For the Three Months Ended
      June 30, 2025   March 31, 2025   June 30, 2024
      Average
    Balance
      Interest &
    Dividends
      Yield /
    Cost (1)
      Average
    Balance
      Interest &
    Dividends
      Yield /
    Cost (1)
      Average
    Balance
      Interest &
    Dividends
      Yield /
    Cost (1)
    Assets                                  
    Interest earning assets:                                  
    Interest earning deposits with
    other banks
    $ 729,652     $ 8,085   4.44 %   $ 553,393     $ 6,070   4.45 %   $ 418,165     $ 5,683   5.47 %
    Investment securities, available for sale (2)   35               37       1   10.96       43          
    Investment securities, held to maturity (2)   46,256       626   5.43       47,154       649   5.58       49,737       686   5.55  
    Other investments   12,825       219   6.85       11,757       40   1.38       10,592       174   6.61  
    Loans receivable (3)   3,567,823       98,867   11.11       3,511,724       98,147   11.33       3,258,042       90,879   11.22  
    Total interest earning assets   4,356,591       107,797   9.92       4,124,065       104,907   10.32       3,736,579       97,422   10.49  
    Noninterest earning assets:                                  
    Allowance for credit losses   (176,022 )             (170,542 )             (138,472 )        
    Other noninterest earning assets   298,698               296,993               255,205          
    Total assets $ 4,479,267             $ 4,250,516             $ 3,853,312          
                                       
    Liabilities and Shareholders’ Equity                                  
    Interest bearing liabilities:                                  
    Interest bearing deposits $ 3,369,574     $ 30,400   3.62 %   $ 3,166,384     $ 28,185   3.61 %   $ 2,854,575     $ 30,578   4.31 %
    FHLB advances and other borrowings   3       1               1         1,648       3   0.73  
    Subordinated debt   44,345       598   5.41       44,309       598   5.47       44,197       598   5.44  
    Junior subordinated debentures   3,592       61   6.81       3,592       61   6.89       3,590       71   7.95  
    Total interest bearing liabilities   3,417,514       31,060   3.65       3,214,285       28,845   3.64       2,904,010       31,250   4.33  
    Noninterest bearing deposits   562,174               543,784               584,661          
    Other liabilities   44,452               49,624               58,267          
    Total shareholders’ equity   455,127               442,823               306,374          
    Total liabilities and shareholders’ equity $ 4,479,267             $ 4,250,516             $ 3,853,312          
    Net interest income     $ 76,737           $ 76,062           $ 66,172    
    Interest rate spread         6.27 %           6.68 %           6.16 %
    Net interest margin (4)         7.06 %           7.48 %           7.12 %
     
    (1)  Yields and costs are annualized.
    (2)  For presentation in this table, average balances and the corresponding average rates for investment securities are based upon historical cost, adjusted for amortization of premiums and accretion of discounts.
    (3)  Includes loans held for sale and nonaccrual loans.
    (4)  Net interest margin represents net interest income divided by the average total interest earning assets.
     

    COASTAL FINANCIAL CORPORATION
    SELECTED AVERAGE BALANCES, YIELDS, AND RATES – BY SEGMENT – QUARTERLY
    (Dollars in thousands; unaudited)

      For the Three Months Ended
      June 30, 2025   March 31, 2025   June 30, 2024
    (dollars in thousands, unaudited) Average
    Balance
      Interest &
    Dividends
      Yield /
    Cost (1)
      Average
    Balance
      Interest &
    Dividends
      Yield /
    Cost (1)
      Average
    Balance
      Interest &
    Dividends
      Yield /
    Cost (1)
    Community Bank                                  
    Assets                                  
    Interest earning assets:                                  
    Loans receivable (2) $ 1,879,331   $ 30,603   6.53 %   $ 1,881,636   $ 30,292   6.53 %   $ 1,895,699   $ 30,741   6.52 %
    Total interest earning
    assets
      1,879,331     30,603   6.53       1,881,636     30,292   6.53       1,895,699     30,741   6.52  
    Liabilities                                  
    Interest bearing liabilities:                                
    Interest bearing
    deposits
      1,048,506     6,783   2.59 %     1,045,971     6,604   2.56 %     938,033     6,459   2.77 %
    Intrabank liability   342,232     3,792   4.44       356,337     3,909   4.45       429,452     5,836   5.47  
    Total interest bearing
    liabilities
      1,390,738     10,575   3.05       1,402,308     10,513   3.04       1,367,485     12,295   3.62  
    Noninterest bearing
    deposits
      488,593             479,329             528,214        
    Net interest income     $ 20,028           $ 19,779           $ 18,446    
    Net interest margin(3)         4.27 %           4.26 %           3.91 %
                                       
    CCBX                                  
    Assets                                  
    Interest earning assets:                                  
    Loans receivable (2)(4) $ 1,688,492   $ 68,264   16.22 %   $ 1,630,088   $ 67,855   16.88 %   $ 1,362,343   $ 60,138   17.75 %
    Intrabank asset   706,157     7,825   4.44       554,781     6,085   4.45       610,646     8,299   5.47  
    Total interest earning
    assets
      2,394,649     76,089   12.74       2,184,869     73,940   13.72       1,972,989     68,437   13.95  
    Liabilities                                  
    Interest bearing liabilities:                            
    Interest bearing
    deposits
      2,321,068     23,617   4.08 %     2,120,413     21,581   4.13 %     1,916,542     24,119   5.06 %
    Total interest bearing
    liabilities
      2,321,068     23,617   4.08       2,120,413     21,581   4.13       1,916,542     24,119   5.06  
    Noninterest bearing
    deposits
      73,581             64,455             56,447        
    Net interest income     $ 52,472           $ 52,359           $ 44,318    
    Net interest margin(3)         8.79 %           9.72 %           9.03 %
    Net interest margin, net
    of BaaS loan expense(5)
            3.35 %           3.68 %           3.12 %
                                             
      For the Three Months Ended
      June 30, 2025   March 31, 2025   June 30, 2024
    (dollars in thousands, unaudited) Average
    Balance
      Interest &
    Dividends
      Yield /
    Cost (1)
      Average
    Balance
      Interest &
    Dividends
      Yield /
    Cost (1)
      Average
    Balance
      Interest &
    Dividends
      Yield /
    Cost (1)
    Treasury & Administration                            
    Assets                                  
    Interest earning assets:                                  
    Interest earning
    deposits with
    other banks
    $ 729,652   $ 8,085   4.44 %   $ 553,393   $ 6,070   4.45 %   $ 418,165   $ 5,683   5.47 %
    Investment securities,
    available for sale (6)
      35             37     1   10.96       43       3.13  
    Investment securities,
    held to maturity (6)
      46,256     626   5.43       47,154     649   5.58       49,737     686   5.55  
    Other investments   12,825     219   6.85       11,757     40   1.38       10,592     174   6.61  
    Total interest
    earning assets
      788,768     8,930   4.54 %     612,341   6,760   4.48 %     478,537     6,543   5.50 %
    Liabilities                                  
    Interest bearing
    liabilities:
                                     
    FHLB advances
    and borrowings
    $ 3     1       $     1   %   $ 1,648     3   0.73 %
    Subordinated debt   44,345     598   5.41       44,309     598   5.47       44,197     598   5.44  
    Junior subordinated
    debentures
      3,592     61   6.81       3,592     61   6.89       3,590     71   7.95  
    Intrabank liability, net (7)   363,925     4,033   4.44       198,444     2,176   4.45       181,194     2,463   5.47  
    Total interest
    bearing liabilities
      411,865     4,693   4.57       246,345     2,836   4.67       230,629     3,135   5.47  
    Net interest income     $ 4,237           $ 3,924           $ 3,408    
    Net interest margin(3)         2.15 %           2.60 %           2.86 %
     
    (1) Yields and costs are annualized.
    (2) Includes loans held for sale and nonaccrual loans.
    (3) Net interest margin represents net interest income divided by the average total interest earning assets.
    (4) CCBX yield does not include the impact of BaaS loan expense. BaaS loan expense represents the amount paid or payable to partners for credit enhancements, fraud enhancements and originating & servicing CCBX loans. See reconciliation of the non-GAAP measures at the end of this earnings release for the impact of BaaS loan expense on CCBX loan yield.
    (5) Net interest margin, net of BaaS loan expense, includes the impact of BaaS loan expense. BaaS loan expense represents the amount paid or payable to partners for credit enhancements, fraud enhancements, originating & servicing CCBX loans. See reconciliation of the non-GAAP measures at the end of this earnings release.
    (6) For presentation in this table, average balances and the corresponding average rates for investment securities are based upon historical cost, adjusted for amortization of premiums and accretion of discounts.
    (7) Intrabank assets and liabilities are consolidated for period calculations and presented as intrabank asset, net or intrabank liability, net in the table above.
     

    Non-GAAP Financial Measures

    The Company uses certain non-GAAP financial measures to provide meaningful supplemental information regarding the Company’s operational performance and to enhance investors’ overall understanding of such financial performance.

    However, these non-GAAP financial measures are supplemental and are not a substitute for an analysis based on GAAP measures. As other companies may use different calculations for these adjusted measures, this presentation may not be comparable to other similarly titled adjusted measures reported by other companies.

    The following non-GAAP measures are presented to illustrate the impact of BaaS loan expense on net loan income and yield on loans and CCBX loans and the impact of BaaS loan expense on net interest income and net interest margin.

    Loan income, net of BaaS loan expense, divided by average loans, is a non-GAAP measure that includes the impact BaaS loan expense on loan income and the yield on loans. The most directly comparable GAAP measure is yield on loans.

    Net BaaS loan income divided by average CCBX loans is a non-GAAP measure that includes the impact BaaS loan expense on net BaaS loan income and the yield on CCBX loans. The most directly comparable GAAP measure is yield on CCBX loans.

    Net interest income, net of BaaS loan expense, is a non-GAAP measure that includes the impact BaaS loan expense on net interest income. The most directly comparable GAAP measure is net interest income.

    CCBX net interest margin, net of BaaS loan expense, is a non-GAAP measure that includes the impact of BaaS loan expense on net interest rate margin. The most directly comparable GAAP measure is CCBX net interest margin.

    Reconciliations of the GAAP and non-GAAP measures are presented below.

    CCBX   As of and for the Three Months Ended
    (dollars in thousands; unaudited)   June 30
    2025
      March 31
    2025
      June 30
    2024
    Net BaaS loan income divided by average CCBX loans:
    CCBX loan yield (GAAP)(1)     16.22 %     16.88 %     17.75 %
    Total average CCBX loans receivable   $ 1,688,492     $ 1,630,088     $ 1,362,343  
    Interest and earned fee income on CCBX loans (GAAP)     68,264       67,855       60,138  
    BaaS loan expense     (32,483 )     (32,507 )     (29,011 )
    Net BaaS loan income   $ 35,781     $ 35,348     $ 31,127  
    Net BaaS loan income divided by average CCBX loans (1)     8.50 %     8.79 %     9.19 %
    CCBX net interest margin, net of BaaS loan expense:        
    CCBX net interest margin (1)     8.79 %     9.72 %     9.03 %
    CCBX earning assets     2,394,649       2,184,869       1,972,989  
    Net interest income (GAAP)     52,472       52,359       44,318  
    Less: BaaS loan expense     (32,483 )     (32,507 )     (29,011 )
    Net interest income, net of BaaS
    loan expense
      $ 19,989     $ 19,852     $ 15,307  
    CCBX net interest margin, net of BaaS loan expense (1)     3.35 %     3.68 %     3.12 %
     
    Consolidated   As of and for the Three Months Ended
    (dollars in thousands; unaudited)   June 30
    2025
      March 31
    2025
      June 30
    2024
    Net interest margin, net of BaaS loan expense:        
    Net interest margin (1)     7.06 %     7.48 %     7.12 %
    Earning assets     4,356,591       4,124,065       3,736,579  
    Net interest income (GAAP)     76,737       76,062       66,172  
    Less: BaaS loan expense     (32,483 )     (32,507 )     (29,011 )
    Net interest income, net of BaaS loan expense   $ 44,254     $ 43,555     $ 37,161  
    Net interest margin, net of BaaS loan expense (1)     4.07 %     4.28 %     4.00 %
    Loan income net of BaaS loan expense divided by average loans:    
    Loan yield (GAAP)(1)     11.11 %     11.33 %     11.22 %
    Total average loans receivable   $ 3,567,823     $ 3,511,724     $ 3,258,042  
    Interest and earned fee income on loans (GAAP)     98,867       98,147       90,879  
    BaaS loan expense     (32,483 )     (32,507 )     (29,011 )
    Net loan income   $ 66,384     $ 65,640     $ 61,868  
    Loan income, net of BaaS loan expense, divided by average loans (1)     7.46 %     7.58 %     7.64 %
     
    (1) Annualized calculations for periods presented.
     

    The following non-GAAP measure is presented to illustrate the impact of BaaS loan expense, BaaS fraud expense and reimbursement of expenses (BaaS) on noninterest expense. Certain noninterest expenses are reimbursed by our CCBX partners. In accordance with GAAP we recognize all expenses in noninterest expense and the reimbursement of expenses from our CCBX partner in noninterest income. This non-GAAP measure shows the portion of noninterest expenses that are reimbursed by partners to assist the understanding of how the increases in noninterest expense are related to expenses incurred for and reimbursed by CCBX partner. The most comparable GAAP measure is noninterest expense.

        As of and for the Three Months Ended
    (dollars in thousands, unaudited)   June 30,
    2025
      March 31,
    2025
      June 30,
    2024
    Noninterest expense, net of reimbursement of expenses (BaaS)
    Noninterest expense (GAAP)   $ 72,832   $ 71,989   $ 57,964  
    Less: BaaS loan expense     32,483     32,507     29,011  
    Less: BaaS fraud expense     2,804     1,993     1,784  
    Less: Reimbursement of expenses     646     1,026     857  
    Noninterest expense, net of BaaS loan expense, BaaS fraud expense
    and reimbursement of expenses
      $ 36,899   $ 36,463   $ 26,312  
     

    APPENDIX A –
    As of June 30, 2025

    Industry Concentration

    We have a diversified loan portfolio, representing a wide variety of industries. Our major categories of loans are commercial real estate, consumer and other loans, residential real estate, commercial and industrial, and construction, land and land development loans. Together they represent $3.55 billion in outstanding loan balances. When combined with $1.93 billion in unused commitments the total of these categories is $5.48 billion.

    Commercial real estate loans represent the largest segment of our loans, comprising 37.0% of our total balance of outstanding loans as of June 30, 2025. Unused commitments to extend credit represents an additional $30.1 million, and the combined total in commercial real estate loans represents $1.34 billion, or 24.5% of our total outstanding loans and loan commitments.

    The following table summarizes our loan commitment by industry for our commercial real estate portfolio as of June 30, 2025:

    (dollars in thousands; unaudited)   Outstanding Balance   Available Loan Commitments   Total Outstanding Balance & Available Commitment   % of Total Loans
    (Outstanding Balance &
    Available Commitment)
      Average Loan Balance   Number of Loans  
    Apartments   $ 362,315   $ 2,889   $ 365,204   6.7 %   $ 3,814   95  
    Hotel/Motel     154,877     1,073     155,950   2.8       6,734   23  
    Convenience Store     135,118     546     135,664   2.5       2,290   59  
    Office     119,622     6,666     126,288   2.3       1,375   87  
    Warehouse     102,688         102,688   1.9       1,770   58  
    Retail     93,552     836     94,388   1.7       936   100  
    Mixed use     93,455     5,287     98,742   1.8       1,126   83  
    Mini Storage     73,695     7,272     80,967   1.5       3,685   20  
    Strip Mall     43,468         43,468   0.8       6,210   7  
    Manufacturing     35,274     570     35,844   0.7       1,306   27  
    Groups < 0.70% of total     96,818     4,938     101,756   1.8       1,226   79  
    Total   $ 1,310,882   $ 30,077   $ 1,340,959   24.5 %   $ 2,055   638  
     

    Consumer loans comprise 34.7% of our total balance of outstanding loans as of June 30, 2025. Unused commitments to extend credit represents an additional $746.8 million, and the combined total in consumer and other loans represents $1.98 billion, or 36.1% of our total outstanding loans and loan commitments. The $746.8 million in commitments is subject to CCBX partner/portfolio maximum limits. As illustrated in the table below, our CCBX partners bring in a large number of mostly smaller dollar loans, resulting in an average consumer loan balance of just $900. CCBX consumer loans are underwritten to CCBX credit standards and underwriting of these loans is regularly tested, including quarterly testing for partners with portfolio balances greater than $10.0 million.

    The following table summarizes our loan commitment by industry for our consumer and other loan portfolio as of June 30, 2025:

    (dollars in thousands; unaudited)     Outstanding Balance   Available Loan Commitments (1)   Total Outstanding Balance & Available Commitment (1)   % of Total Loans
    (Outstanding Balance &
    Available Commitment)
      Average Loan Balance   Number of Loans  
    CCBX consumer loans
    Credit cards     $ 533,925   $ 702,611   $ 1,236,536   22.6 %   $ 1.6   337,749  
    Installment loans       671,089     30,817     701,906   12.8       0.8   796,927  
    Lines of credit       676     14     690   0.0       0.9   715  
    Other loans       14,556         14,556   0.3       0.1   240,653  
    Community bank consumer loans
    Installment loans       738     2     740   0.0       30.8   24  
    Lines of credit       178     339     517   0.0       5.7   31  
    Other loans       11,314     13,000     24,314   0.4       32.6   347  
    Total     $ 1,232,476   $ 746,783   $ 1,979,259   36.1 %   $ 0.9   1,376,446  
     
    (1)  Total exposure on CCBX loans is subject to CCBX partner/portfolio maximum limits.
     

    Residential real estate loans comprise 12.2% of our total balance of outstanding loans as of June 30, 2025. Unused commitments to extend credit represents an additional $557.7 million, which is subject to partner/portfolio maximum limits, and the combined total in residential real estate loans represents $991.3 million, or 18.1% of our total outstanding loans and loan commitments.

    The following table summarizes our loan commitment by industry for our residential real estate loan portfolio as of June 30, 2025:

    (dollars in thousands; unaudited)   Outstanding Balance   Available Loan Commitments (1)   Total Outstanding Balance & Available Commitment (1)   % of Total Loans
    (Outstanding Balance &
    Available Commitment)
      Average Loan Balance   Number of Loans  
    CCBX residential real estate loans
    Home equity line of credit   $ 234,786   $ 509,297   $ 744,083   13.6 %   $ 27   8,735  
    Community bank residential real estate loans
    Closed end, secured by first liens     162,205     1,064     163,269   3.0       554   293  
    Home equity line of credit     30,328     46,270     76,598   1.4       122   249  
    Closed end, second liens     6,311     1,073     7,384   0.1       218   29  
    Total   $ 433,630   $ 557,704   $ 991,334   18.1 %   $ 47   9,306  
     
    (1)  Total exposure on CCBX loans is subject to CCBX partner/portfolio maximum limits. CCBX home equity lines of credit are limited to a $375.0 million portfolio maximum.
     

    Commercial and industrial loans comprise 10.6% of our total balance of outstanding loans as of June 30, 2025. Unused commitments to extend credit represents an additional $527.8 million, and the combined total in commercial and industrial loans represents $903.6 million, or 16.5% of our total outstanding loans and loan commitments. Included in commercial and industrial loans is $199.7 million in outstanding capital call lines, with an additional $438.4 million in available loan commitments which is limited to a $350.0 million portfolio maximum. Capital call lines are provided to venture capital firms through one of our CCBX BaaS clients. These loans are secured by the capital call rights and are individually underwritten to the Bank’s credit standards and the underwriting is reviewed by the Bank on every capital call line.

    The following table summarizes our loan commitment by industry for our commercial and industrial loan portfolio as of June 30, 2025:

    (dollars in thousands; unaudited)   Outstanding Balance   Available Loan Commitments (1)   Total Outstanding Balance & Available Commitment (1)   % of Total Loans
    (Outstanding Balance &
    Available Commitment)
      Average Loan Balance   Number of Loans  
    CCBX C&I loans
    Capital call lines   $ 199,675   $ 438,391   $ 638,066   11.6 %   $ 1,597   125  
    Retail and other loans     26,142     23,001     49,143   0.9       9   2,915  
    Community bank C&I loans
    Construction/Contractor services     30,449     32,173     62,622   1.1       154   198  
    Financial institutions     51,768         51,768   0.9       4,314   12  
    Medical / Dental / Other care     5,496     3,683     9,179   0.2       423   13  
    Manufacturing     5,325     3,976     9,301   0.2       140   38  
    Groups < 0.20% of total     56,888     26,593     83,481   1.6       228   250  
    Total   $ 375,743   $ 527,817   $ 903,560   16.5 %   $ 106   3,551  
     
    (1) Total exposure on CCBX loans is subject to CCBX partner/portfolio maximum limits.
     

    Construction, land and land development loans comprise 5.5% of our total balance of outstanding loans as of June 30, 2025. Unused commitments to extend credit represents an additional $70.0 million, and the combined total in construction, land and land development loans represents $264.2 million, or 4.8% of our total outstanding loans and loan commitments.

    The following table details our loan commitment for our construction, land and land development portfolio as of June 30, 2025:

    (dollars in thousands; unaudited)   Outstanding Balance   Available Loan Commitments   Total Outstanding Balance & Available Commitment   % of Total Loans
    (Outstanding Balance &
    Available Commitment)
      Average Loan Balance   Number of Loans  
    Commercial construction   $ 104,078   $ 48,309   $ 152,387   2.8 %   $ 7,434   14  
    Residential construction     39,831     17,340     57,171   1.0       2,655   15  
    Developed land loans     22,875     604     23,479   0.4       1,271   18  
    Undeveloped land loans     20,067     748     20,815   0.4       1,338   15  
    Land development     7,299     3,048     10,347   0.2       811   9  
    Total   $ 194,150   $ 70,049   $ 264,199   4.8 %   $ 2,735   71  
     

    Exposure and risk in our construction, land and land development portfolio increased compared to recent periods as indicated in the following table:

        Outstanding Balance as of
    (dollars in thousands; unaudited)   June 30,
    2025
      March 31,
    2025
      December 31,
    2024
      September 30,
    2024
      June 30,
    2024
    Commercial construction   $ 104,078     $ 96,716     $ 83,216     $ 97,792     $ 110,372  
    Residential construction     39,831       39,375       40,940       35,822       34,652  
    Undeveloped land loans     20,067       16,684       8,665       8,606       8,372  
    Developed land loans     22,875       7,788       8,305       14,863       13,954  
    Land development     7,299       5,988       7,072       5,968       5,714  
    Total   $ 194,150     $ 166,551     $ 148,198     $ 163,051     $ 173,064  
     

    Commitments to extend credit total $1.93 billion at June 30, 2025, however we do not anticipate our customers using the $1.93 billion that is showing as available due to CCBX partner and portfolio limits.

    The following table presents outstanding commitments to extend credit as of June 30, 2025:

    Consolidated    
    (dollars in thousands; unaudited)   As of June 30, 2025 (1)
    Commitments to extend credit:    
    Commercial and industrial loans   $ 89,426  
    Commercial and industrial loans – capital call lines     438,391  
    Construction – commercial real estate loans     52,709  
    Construction – residential real estate loans     17,340  
    Residential real estate loans     557,704  
    Commercial real estate loans     30,077  
    Credit cards     702,611  
    Consumer and other loans     44,172  
    Total commitments to extend credit   $ 1,932,430  
     
    (1) Total exposure on CCBX loans is subject to CCBX partner/portfolio maximum limits.
     

    We have individual CCBX partner portfolio limits with our each of our partners to manage loan concentration risk, liquidity risk, and counter-party partner risk. For example, as of June 30, 2025, capital call lines outstanding balance totaled $199.7 million and, while commitments totaled $438.4 million, the commitments are limited to a maximum of $350.0 million by agreement with the partner. If a CCBX partner goes over their individual limit, it would be a breach of their contract and the Bank may impose penalties and would have the choice to fund or not fund the loan.

    See the table below for CCBX portfolio maximums and related available commitments:

    CCBX                
    (dollars in thousands; unaudited)   Balance   Percent of CCBX loans receivable Available
    Commitments
    (1)
      Maximum Portfolio
    Size
    Cash
    Reserve/Pledge Account Amount
    (2)
    Commercial and industrial loans:            
    Capital call lines   $ 199,675     11.9 % $ 438,391   $ 350,000 $  
    All other commercial & industrial loans     26,142     1.6     23,001     471,186   531  
    Real estate loans:                
    Home equity lines of credit (3)     234,786     14.0     509,297     375,000   36,469  
    Consumer and other loans:            
    Credit cards – cash secured     364                
    Credit cards – unsecured     533,561         702,611       30,827  
    Credit cards – total     533,925     31.8     702,611     850,000   30,827  
    Installment loans – cash secured     128,861         30,817        
    Installment loans – unsecured     542,228               (38 )
    Installment loans – total     671,089     39.8     30,817     1,818,619   (38 )
    Other consumer and other loans     15,232     0.9     14     5,195   275  
    Gross CCBX loans receivable     1,680,849     100.0 % $ 1,704,131   $ 3,870,000 $ 68,064  
    Net deferred origination fees     (569 )            
    Loans receivable   $ 1,680,280              
     
    (1) Remaining commitment available, net of outstanding balance.
    (2) Balances are as of July 8, 2025.
    (3) These home equity lines of credit are secured by residential real estate and are accessed by using a credit card, but are classified as 1-4 family residential properties per regulatory guidelines.
     

    APPENDIX B –
    As of June 30, 2025

    CCBX – BaaS Reporting Information

    During the quarter ended June 30, 2025, $31.3 million was recorded in BaaS credit enhancements related to the provision for credit losses – loans and reserve for unfunded commitments for CCBX partner loans and negative deposit accounts. Agreements with our CCBX partners provide for a credit enhancement provided by the partner which protects the Bank by indemnifying or reimbursing incurred losses. In accordance with accounting guidance, we estimate and record a provision for expected losses for these CCBX loans, unfunded commitments, negative deposit accounts and accrued interest receivable on some CCBX partner loans. When the provision for credit losses – loans and provision for unfunded commitments is recorded, a credit enhancement asset is also recorded on the balance sheet through noninterest income (BaaS credit enhancements) in recognition of the CCBX partner legal commitment to indemnify or reimburse losses. The credit enhancement asset is relieved as credit enhancement payments and recoveries are received from the CCBX partner or taken from the partner’s cash reserve account. Agreements with our CCBX partners also provide protection to the Bank from fraud by indemnifying or reimbursing incurred fraud losses. BaaS fraud includes non-credit fraud losses on loans and deposits originated through partners, generally fraud losses related to loans are comprised primarily of first payment defaults. Fraud losses are recorded when incurred as losses in noninterest expense, and the enhancement received from the CCBX partner is recorded in noninterest income, resulting in a net impact of zero to the income statement. Many CCBX partners also pledge a cash reserve account at the Bank which the Bank can collect from when losses occur that is then replenished by the partner on a regular interval. Although agreements with our CCBX partners provide for credit enhancements that provide protection to the Bank from credit and fraud losses by indemnifying or reimbursing incurred credit and fraud losses, if our partner is unable to fulfill their contracted obligation then the bank would be exposed to additional loan and deposit losses if the cash flows on the loans were not sufficient to fund the reimbursement of loan losses, as a result of this counterparty risk. If a CCBX partner does not replenish their cash reserve account the Bank may consider an alternative plan for funding the cash reserve. This may involve the possibility of adjusting the funding amounts or timelines to better align with the partner’s specific situation. If a mutually agreeable funding plan is not agreed to, the Bank could declare the agreement in default, take over servicing and cease paying the partner for servicing the loan and providing credit enhancements. The Bank would evaluate any remaining credit enhancement asset from the CCBX partner in the event the partner failed to determine if a write-off is appropriate. If a write-off occurs, the Bank would retain the full yield and any fee income on the loan portfolio going forward, and our BaaS loan expense would decrease once default occurred and payments to the CCBX partner were stopped.

    The Bank records contractual interest earned from the borrower on CCBX partner loans in interest income, adjusted for origination costs which are paid or payable to the CCBX partner. BaaS loan expense represents the amount paid or payable to partners for credit and fraud enhancements and originating and servicing CCBX loans. To determine net revenue (Net BaaS loan income) earned from CCBX loan relationships, the Bank takes BaaS loan interest income and deducts BaaS loan expense to arrive at Net BaaS loan income (a reconciliation of the non-GAAP measures are set forth in the preceding section of this earnings release) which can be compared to interest income on the Company’s community bank loans.

    The following table illustrates how CCBX partner loan income and expenses are recorded in the financial statements:

    Loan income and related loan expense   Three Months Ended
    (dollars in thousands; unaudited)   June 30,
    2025
      March 31,
    2025
      June 30,
    2024
    Yield on loans (1)     16.22 %     16.88 %     17.75 %
    BaaS loan interest income   $ 68,264     $ 67,855     $ 60,138  
    Less: BaaS loan expense     32,483       32,507       29,011  
    Net BaaS loan income (2)   $ 35,781     $ 35,348     $ 31,127  
    Net BaaS loan income divided by average BaaS loans (1)(2)     8.50 %     8.79 %     9.19 %
     
    (1) Annualized calculation for quarterly periods shown.
    (2) A reconciliation of the non-GAAP measures are set forth in the preceding section of this earnings release.
     

    An increase in average CCBX loans receivable resulted in increased interest income on CCBX loans during the quarter ended June 30, 2025 compared to the quarter ended March 31, 2025. Our strategy is to optimize the CCBX loan portfolio and strengthen our balance sheet through originating higher quality new loans with enhanced credit standards. These higher quality loans tend to have lower stated rates and expected losses than some of our CCBX loans historically. Current loan sales and new loan growth are at more similar interest rates compared to prior periods when we were selling loans with higher risk and higher interest rates and replacing them with higher quality lower interest rate loans. We continue to reposition ourselves by managing CCBX credit and concentration levels in an effort to optimize our loan portfolio and also generate off balance sheet fee income. Growth in CCBX loans has resulted in an increase in interest income for the quarter ended June 30, 2025 compared to the quarter ended June 30, 2024.

    The following tables are a summary of the interest components, direct fees and expenses of BaaS for the periods indicated and are not inclusive of all income and expense related to BaaS.

    Interest income   Three Months Ended
    (dollars in thousands; unaudited)   June 30,
    2025
      March 31,
    2025
      June 30,
    2024
    Loan interest income   $ 68,264     $ 67,855     $ 60,138  
    Total BaaS interest income   $ 68,264     $ 67,855     $ 60,138  
    Interest expense   Three Months Ended
    (dollars in thousands; unaudited)   June 30,
    2025
      March 31,
    2025
      June 30,
    2024
    BaaS interest expense   $ 23,617     $ 21,581     $ 24,119  
    Total BaaS interest expense   $ 23,617     $ 21,581     $ 24,119  
    BaaS income   Three Months Ended
    (dollars in thousands; unaudited)   June 30,
    2025
      March 31,
    2025
      June 30,
    2024
    BaaS program income:            
    Servicing and other BaaS fees   $ 1,539   $ 1,419   $ 1,525  
    Transaction and interchange fees     5,109     3,833     2,934  
    Reimbursement of expenses     646     1,026     857  
    Total BaaS program income     7,294     6,278     5,316  
    BaaS indemnification income:            
    BaaS credit enhancements     31,268     53,648     60,826  
    BaaS fraud enhancements     2,804     1,993     1,784  
    BaaS indemnification income     34,072     55,641     62,610  
    Total noninterest BaaS income   $ 41,366   $ 61,919   $ 67,926  
     

    Servicing and other BaaS fees increased $120,000 and transaction and interchange fees increased $1.3 million in the quarter ended June 30, 2025 compared to the quarter ended March 31, 2025. We expect servicing and other BaaS fees to be higher when we are bringing new partners on and then to decrease when transaction and interchange fees increase as partner activity grows and contracted minimum fees are replaced with these recurring fees when they exceed the minimum fees. Increases in BaaS reimbursement of fees offsets increases in noninterest expense from BaaS expenses covered by CCBX partners. Transaction and interchange fees for the quarter ended June 30, 2025 includes $504,000 in nonrecurring revenue.

    BaaS loan and fraud expense:   Three Months Ended
    (dollars in thousands; unaudited)     June 30,
    2025
          March 31,
    2025
          June 30,
    2024
     
    BaaS loan expense   $ 32,483     $ 32,507     $ 29,011  
    BaaS fraud expense     2,804       1,993       1,784  
    Total BaaS loan and fraud expense   $ 35,287     $ 34,500     $ 30,795  
     

    Infographics accompanying this announcement are available at

    https://www.globenewswire.com/NewsRoom/AttachmentNg/6d139571-0367-4331-b052-e1609dd3796f
    https://www.globenewswire.com/NewsRoom/AttachmentNg/7fef1877-3f7a-47cc-99fa-0bcdfb00de42

    The MIL Network

  • MIL-OSI Russia: Call for objective information was made at the SCO Media and Think Tank Summit

    Translation. Region: Russian Federal

    Source: People’s Republic of China in Russian – People’s Republic of China in Russian –

    An important disclaimer is at the bottom of this article.

    Source: People’s Republic of China – State Council News

    ZHENGZHOU, July 27 (Xinhua) — Participants at the Shanghai Cooperation Organization (SCO) Media and Think Tank Summit held in Zhengzhou, capital of central China’s Henan Province, from July 23 to 27 stressed the importance of properly publicizing the SCO’s cooperation and outstanding achievements.

    “We are very well aware that we, journalists, are shaping the news agenda and are starting to talk more and more about the countries of the global South,” said Irina Akulovich, director general of the Belarusian Telegraph Agency (BELTA), citing the fact that, according to estimates, the agency has already released several hundred articles about the SCO in recent months.

    According to her, today people need short and quick information, and social networks in many ways do not take responsibility for the information they provide, which leads to the truth having a harder time getting through.

    We must teach people to use information correctly, as well as to trust state media and analytics, said I. Akulovich.

    “That is why we must learn to quickly, interestingly and concretely talk in accessible language about what is happening and what our countries are doing to change this world,” she emphasized.

    According to Mirzohid Rakhimov, director of the Coordination and Methodological Center for the Modern History of Uzbekistan at the Academy of Sciences of the Republic of Uzbekistan, it is very important for the media to cover the history of the formation of the SCO, showing the path the organization took from its first steps to such a large national formation.

    He believes that lecture courses dedicated specifically to the SCO and what the media shows are also useful in that the SCO countries can exchange experiences in development with each other.

    “In recent years, I have visited Chinese universities several times and observed society, the city. I can say that the Chinese experience of transforming science and education is very useful for the countries of Central Asia. I think that here countries can learn a lot from each other in terms of studying aspects of the development of society, so it is important for the media to show all this comprehensively and objectively,” he said.

    Director of the Kyrgyz Center for Expert Initiatives “Oi Ordo” Igor Shestakov said: “Today it was said that one of the tasks of the SCO is to provide objective information. And here the role of analytical centers and mass media is very high.”

    Having stated that he is a regular reader of the Xinhua News Agency and learns news about China through it, I. Shestakov noted that with its network of correspondent offices in almost all SCO countries, Xinhua serves as an important example.

    “We should be guided by the Xinhua model and communicate more not on the Internet, not by phone, but on forums like these,” he said.

    In his view, people in China and Central Asia learn about the SCO from experts and the media, which therefore play a very important role. However, it is important to talk about the organization objectively, he added.

    The five-day event brought together around 400 representatives from approximately 200 leading media outlets, renowned think tanks and government agencies from 26 SCO countries, as well as international and regional organizations such as the UN, the SCO Secretariat, etc.

    As noted in the Zhengzhou Consensus released during the summit, the media and think tanks of the SCO countries should give full play to their roles as bridges and links to jointly and properly report on the SCO cooperation and showcase its outstanding achievements, thereby bringing wisdom and strength to the promotion of peace, stability, prosperity and development in the region and the world. -0-

    Please note: This information is raw content obtained directly from the source of the information. It is an accurate report of what the source claims and does not necessarily reflect the position of MIL-OSI or its clients.

    .

    MIL OSI Russia News

  • MIL-OSI China: Xizang Internet Photography & Video Festival wraps up with awards ceremony in Lhasa

    Source: People’s Republic of China – State Council News

    The 5th China Xizang Internet Photography & Video Festival awards ceremony was held on Friday in Lhasa, southwest China’s Xizang Autonomous Region. 

    The festival, which was launched in September 2024, was guided by the Bureau of Cyber Communications of the CAC and the Publicity Department of the CPC Xizang Autonomous Regional Committee. It was hosted by the Xizang Regional Cyberspace Administration and organized by CIIC.

    Since its launch, the event has attracted more than 140,000 submissions from around the world, showcasing Xizang’s social development, cultural heritage, natural landscapes and everyday life. It has become a vital platform for showcasing the region’s new face in the new era, generating more than 3 billion online views and interactions nationwide, with overseas dissemination exceeding 800 million views.

    After four rounds of expert review, a total of 108 entries were selected across four categories: photos, short videos (including animation), songs, and micro-movies. Each category awarded one first prize, two second prizes, and three third prizes, along with several most popular and participation awards. These winning works offered diverse and compelling perspectives on Xizang’s transformation, highlighting its cultural appeal and development momentum, and drawing widespread interest both domestically and internationally.

    This year’s festival notably featured international contributions. Foreign vloggers such as Raz Galor from Israel, Hannah Wilson from the U.K., and Gonzales Brian Alejendro from Argentina, shared their experiences in Xizang, showing viewers a true taste of life on the plateau by visiting local homes, sampling cuisine, learning instruments, and wearing Tibetan traditional clothing. Their perspectives highlighted local people’s love for life and the harmonious blend of tradition and modernity, earning them a third prize in the micro-film category and an honorable mention in the photography category. Additionally, Japanese artist Masaaki Honda’s song “Bright Days of Xizang,” which beautifully captured the tranquility and grounded feeling of the region, won the most popular award in the song category.

    A concurrent photography exhibition was also held, offering audiences a visual gateway into Xizang’s diverse and dynamic appeal. With contributions from photography enthusiasts around the globe, the exhibition featured everything from sacred mountains and serene lakes to bustling towns, traditional rituals, and modern innovations. Each image told a unique story, collectively composing a compelling visual narrative of Xizang’s ongoing transformation.

    1   2   3   >  

    MIL OSI China News

  • MIL-OSI China: Xizang Internet Photography & Video Festival wraps up with awards ceremony in Lhasa

    Source: People’s Republic of China – State Council News

    The 5th China Xizang Internet Photography & Video Festival awards ceremony was held on Friday in Lhasa, southwest China’s Xizang Autonomous Region. 

    The festival, which was launched in September 2024, was guided by the Bureau of Cyber Communications of the CAC and the Publicity Department of the CPC Xizang Autonomous Regional Committee. It was hosted by the Xizang Regional Cyberspace Administration and organized by CIIC.

    Since its launch, the event has attracted more than 140,000 submissions from around the world, showcasing Xizang’s social development, cultural heritage, natural landscapes and everyday life. It has become a vital platform for showcasing the region’s new face in the new era, generating more than 3 billion online views and interactions nationwide, with overseas dissemination exceeding 800 million views.

    After four rounds of expert review, a total of 108 entries were selected across four categories: photos, short videos (including animation), songs, and micro-movies. Each category awarded one first prize, two second prizes, and three third prizes, along with several most popular and participation awards. These winning works offered diverse and compelling perspectives on Xizang’s transformation, highlighting its cultural appeal and development momentum, and drawing widespread interest both domestically and internationally.

    This year’s festival notably featured international contributions. Foreign vloggers such as Raz Galor from Israel, Hannah Wilson from the U.K., and Gonzales Brian Alejendro from Argentina, shared their experiences in Xizang, showing viewers a true taste of life on the plateau by visiting local homes, sampling cuisine, learning instruments, and wearing Tibetan traditional clothing. Their perspectives highlighted local people’s love for life and the harmonious blend of tradition and modernity, earning them a third prize in the micro-film category and an honorable mention in the photography category. Additionally, Japanese artist Masaaki Honda’s song “Bright Days of Xizang,” which beautifully captured the tranquility and grounded feeling of the region, won the most popular award in the song category.

    A concurrent photography exhibition was also held, offering audiences a visual gateway into Xizang’s diverse and dynamic appeal. With contributions from photography enthusiasts around the globe, the exhibition featured everything from sacred mountains and serene lakes to bustling towns, traditional rituals, and modern innovations. Each image told a unique story, collectively composing a compelling visual narrative of Xizang’s ongoing transformation.

    1   2   3   >  

    MIL OSI China News

  • MIL-OSI China: Xizang Internet Photography & Video Festival wraps up with awards ceremony in Lhasa

    Source: People’s Republic of China – State Council News

    The 5th China Xizang Internet Photography & Video Festival awards ceremony was held on Friday in Lhasa, southwest China’s Xizang Autonomous Region. 

    The festival, which was launched in September 2024, was guided by the Bureau of Cyber Communications of the CAC and the Publicity Department of the CPC Xizang Autonomous Regional Committee. It was hosted by the Xizang Regional Cyberspace Administration and organized by CIIC.

    Since its launch, the event has attracted more than 140,000 submissions from around the world, showcasing Xizang’s social development, cultural heritage, natural landscapes and everyday life. It has become a vital platform for showcasing the region’s new face in the new era, generating more than 3 billion online views and interactions nationwide, with overseas dissemination exceeding 800 million views.

    After four rounds of expert review, a total of 108 entries were selected across four categories: photos, short videos (including animation), songs, and micro-movies. Each category awarded one first prize, two second prizes, and three third prizes, along with several most popular and participation awards. These winning works offered diverse and compelling perspectives on Xizang’s transformation, highlighting its cultural appeal and development momentum, and drawing widespread interest both domestically and internationally.

    This year’s festival notably featured international contributions. Foreign vloggers such as Raz Galor from Israel, Hannah Wilson from the U.K., and Gonzales Brian Alejendro from Argentina, shared their experiences in Xizang, showing viewers a true taste of life on the plateau by visiting local homes, sampling cuisine, learning instruments, and wearing Tibetan traditional clothing. Their perspectives highlighted local people’s love for life and the harmonious blend of tradition and modernity, earning them a third prize in the micro-film category and an honorable mention in the photography category. Additionally, Japanese artist Masaaki Honda’s song “Bright Days of Xizang,” which beautifully captured the tranquility and grounded feeling of the region, won the most popular award in the song category.

    A concurrent photography exhibition was also held, offering audiences a visual gateway into Xizang’s diverse and dynamic appeal. With contributions from photography enthusiasts around the globe, the exhibition featured everything from sacred mountains and serene lakes to bustling towns, traditional rituals, and modern innovations. Each image told a unique story, collectively composing a compelling visual narrative of Xizang’s ongoing transformation.

    1   2   3   >  

    MIL OSI China News

  • MIL-OSI USA: United States Disrupts North Korea Revenue Generation, Offering Rewards of Up to $15 Million

    Source: United States Department of State (2)

    Office of the Spokesperson

    Today, the Departments of State, Justice, and the Treasury are executing coordinated, decisive actions to keep Americans safe from North Korea’s malicious and illicit revenue generation schemes. The Department of State’s Transnational Organized Crime Rewards Program (TOCRP) is offering rewards totaling up to $15 million for information leading to the arrests and/or convictions, in any country, of North Korean nationals Sim Hyon-sop and six co-conspirators involved in these schemes.

    North Korea’s revenue generation schemes—which include cryptocurrency theft, illicit information technology (IT) work, trafficking in counterfeit goods, oil smuggling, and other transnational criminal activities—often target U.S. companies and U.S. citizens to raise funds for North Korea’s dangerous and unlawful WMD and ballistic missile programs, which threaten the U.S. homeland and stand in contravention of UN and U.S. sanctions. In many cases, these ballistic missiles have been unlawfully transferred to Russia, where they have been used to strike Ukrainian territory, including Kyiv.

    Today’s actions illustrate the U.S. government’s commitment to mitigating such threats posed by North Korea to protect U.S. companies, the U.S. financial system, and American citizens. The United States will not stand idly by while North Korea profits from criminal activity to fund its destabilizing actions.

    Sim Hyon-Sop and six co-conspirators were charged for their role in illicit activities to buy and sell tobacco from North Korea to gain access to U.S. dollars. The Department of State’s reward offers include an increase of up to $7 million for Sim Hyon-Sop, up to $3 million each for Myong Chol-Min and Kim Se-Un, and up to $500,000 each for Kim Yong-Bok, Kim Chol-Min, a/k/a “Jack,” Ri Tong-Min, a/k/a “Elvis,” and Ri Won-Ho.

    Sim Hyon-Sop and some of his co-conspirators—including Kim Se-Un—have also been involved in illicit IT worker schemes. North Korea dispatches thousands of IT workers abroad to orchestrate fraudulent IT work, often from Russia and China. Today, the Department of the Treasury is designating Korea Sobaeksu Trading Company, which has previously deployed IT workers to Vietnam, and three North Korean nationals, including Kim Se Un, Myong Chol Min, and Jo Kyong Hun, who have been involved in illicit revenue generation schemes. North Korea’s overseas networks provide it with access to technology, illicit finance networks, and facilitators to support its revenue generation to fund UN and U.S. sanctioned entities including the Munitions Industry Department and Ministry of Atomic Energy and Industry. The Department of State continues to engage foreign countries that support North Korean IT workers in order to prevent the targeting of Americans by North Korean revenue generation schemes.

    In addition, Christina Marie Chapman, an American citizen, will be sentenced today in the District of Columbia for her role in a North Korean IT worker scheme that defrauded more than 300 U.S. companies, including Fortune 500 corporations. North Korean IT workers specifically target remote jobs with U.S. companies due to the high salaries, which they remit back to North Korea to fund the unlawful production of WMD and ballistic missiles.

    Today’s individual reward offers are authorized by the Secretary under the TOCRP, which supports law enforcement efforts to disrupt transnational crime globally and bring fugitives to justice. If you have information, please send tips to the FBI via phone/text/WhatsApp at +1-480-695-1388. If you are located outside of the United States, you can also visit the nearest U.S. embassy or consulate. If you are in the United States, you can also contact the local FBI field office.

    THE IDENTITIES OF ANYONE PROVIDING TIPS WILL BE KEPT STRICTLY CONFIDENTIAL. Per 22 U.S.C. section 2708(f), government officials and employees are not eligible for rewards if information is provided in the performance of official duties.

    Separately, the State Department’s Rewards for Justice (RFJ) national security program has a standing reward offer of up to $5 million for information that leads to the disruption of financial mechanisms of persons engaged in certain activities that support the North Korean government and its sanctions evasion. Rewards can be paid for actionable information regarding IT worker schemes, money laundering, cyber activity, and other illicit activities that support WMD proliferation and missile development. More information on RFJ’s North Korea reward offers is available here.

    MIL OSI USA News

  • MIL-OSI Security: Roswell, Georgia, Man Sentenced for Threatening Former FBI Director Christopher Wray

    Source: US FBI

    ATLANTA – John Woodbury, 35, of Roswell, GA, has been sentenced to seventeen months in prison after pleading guilty to transmitting threats to injure then-FBI Director Christopher Wray.                                       

    “My office has zero tolerance for threats against law enforcement officers,” said U.S. Attorney Theodore S. Hertzberg. “Threatening to harm public servants who enforce our criminal laws weakens the foundation of our society and will be punished accordingly.”

    “The functioning of our democracy requires that our country’s public servants be able to do their jobs without fearing for their lives,” said FBI Atlanta Special Agent in Charge Paul Brown. “The sentencing of John Woodbury is yet another example of the FBI’s commitment to holding those accountable who threaten public officials.

    According to U.S. Attorney Hertzberg, the charges, and other information presented in court: On June 7, 2023, Woodbury posted a message on 4chan.org that threatened violence against then-FBI Director Wray. In his message, Woodbury posted Director Wray’s purported home address and wrote: “Let’s show them what a fucking ‘Nazi’ . . . looks like. . . . It’s time to burn these mother fuckers down and hang them from trees. Hit them where it fucking hurts. Hit Chris at his home. Make his family fear stepping one foot outside their god damn door.”   

    Earlier today, United States District Judge Sarah E. Geraghty sentenced Woodbury to seventeen months in prison followed by three years of supervised release. Woodbury was convicted of transmitting a threat in interstate commerce, after he pleaded guilty on April 18, 2025.

    This case was investigated by the Federal Bureau of Investigation.

    For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6185. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

    MIL Security OSI

  • MIL-OSI Russia: Young People of SCO Member States Are Becoming a Key Driver of the Organization’s Development – Participants of the SCO Media and Analytical Centers Summit

    Translation. Region: Russian Federal

    Source: People’s Republic of China in Russian – People’s Republic of China in Russian –

    An important disclaimer is at the bottom of this article.

    Source: People’s Republic of China – State Council News

    ZHENGZHOU, July 26 (Xinhua) — Young people in the Shanghai Cooperation Organization (SCO) member states are becoming a key driver for the organization’s development, contributing to strengthening mutual understanding, promoting innovation and shaping the region’s common future.

    During the SCO Media and Think Tank Summit in Zhengzhou, capital of Henan Province, central China, guests and youth from SCO member states with different cultural backgrounds gathered to discuss the role of youth in advancing the development of the SCO, and to contribute new ideas and solutions to promote harmonious coexistence and common development among various civilizations.

    On July 24, the main campus of Zhengzhou University hosted a youth salon as part of the SCO Media and Think Tank Summit. About a hundred guests, teachers and young students from China and abroad gathered under the theme “SCO Youth – Youth Power and Exchanges among Civilizations” to conduct an in-depth dialogue and jointly paint a new picture of exchange and cooperation.

    At the beginning of the event, participants were introduced to Chinese intangible cultural heritage including calligraphy, lacquer fans and printmaking, experiencing the unique charm of traditional Chinese culture.

    Speaking at the opening ceremony of the youth salon, Yang Guang, an official from the Henan Provincial Education Department, expressed the hope that young friends from the SCO countries will become storytellers who enhance mutual understanding among peoples, practitioners of mutual learning, and explorers of innovative cooperation. He called on them to seize the opportunities of digital economy development, jointly plan the prospects of innovative cooperation, and transform the creative energy of SCO youth into a powerful driving force for regional development.

    Leading researcher of the International Institute of Central Asia in Uzbekistan Shavkat Alimbekov in his speech highlighted the topic of cooperation of SCO youth in the field of innovation in the digital era. He noted that this topic not only reflects the desire of SCO member countries to deepen cooperation in the scientific and technical sphere, but also emphasizes the key role of the younger generation in shaping a sustainable and prosperous future for the region.

    According to him, digitalization and the introduction of advanced technologies create unique opportunities for sustainable development, solving socio-economic problems and strengthening ties between the SCO countries. Young people, as the main driver of progress, have the necessary knowledge, creative thinking and ambitions to implement innovative projects that can change for the better both individual communities and the entire SCO space.

    During the dialogue at the salon, participants discussed the topics: “How can media and think tanks help young people tell their countries’ stories”, “Education and career in an intercultural perspective” and “Innovative cooperation of SCO youth in the digital era”. Media representatives, foreign and Chinese students shared ideas and practical experiences in the field of intercultural communication, application of digital technologies and innovative cooperation, demonstrating the wisdom, energy and responsibility of SCO youth.

    The event created a platform for exchanging views and strengthening friendship among SCO youth, exploring practical ways of exchange between civilizations from a youth perspective and bringing powerful “youth energy” to regional cooperation.

    On the sidelines of the SCO Media and Think Tank Summit, participants also placed high hopes on the role of youth in advancing the development of the SCO.

    Deputy Editor-in-Chief of the media group “Russia Today” Dmitry Gornostaev emphasized that it is necessary to hold separate events during each media summit and invite young journalists, political scientists, and students to them.

    Pavel Negoitsa, CEO of Rossiyskaya Gazeta, noted that digital technologies are an area of new competition. Russia and China are actively developing their own information platforms, creating sovereign Internet environments and digital identification mechanisms. Young people are ahead of everyone here. That is why it is necessary to develop youth media initiatives within the SCO, involve students, bloggers and young journalists in joint projects. This will allow us to form a new generation of leaders in digital technologies and public opinion, aimed at creation, not conflict. -0-

    Please note: This information is raw content obtained directly from the source of the information. It is an accurate report of what the source claims and does not necessarily reflect the position of MIL-OSI or its clients.

    .

    MIL OSI Russia News

  • MIL-OSI China: China’s low-altitude economy posed for trillion-yuan boom, expert says

    Source: People’s Republic of China – State Council News

    A low-altitude aircraft developed by Beijing-based technology company JZX is displayed at the 24th China Internet Conference in Beijing, July 23, 2025. [Photo by Liu Sitong/China.org.cn]

    China’s low-altitude economy is on the cusp of significant expansion, with experts predicting the sector will soon be worth over 1 trillion yuan ($138 billion). This projection was a key topic at a forum hosted by the Internet Society of China (ISC) at the 24th China Internet Conference in Beijing on July 25, where discussions centered on the rapid growth and future development of this emerging industry. 

    Dai Wei, deputy secretary-general of the ISC, said the low-altitude economy has become an important and emerging area for global competition. This growing international interest is evident, with U.S. President Donald Trump having signed an executive order on June 6 to promote the development of emerging technologies such as electric vertical takeoff and landing (eVTOL) aircraft. Dai added that developing the industry will require support from digital and smart technologies, including artificial intelligence.

    Yang Jun, founder and director of ShenSi Lab — a research facility that focuses on low-altitude flight solutions — provided insights into the healthy development of the sector. He pointed out that the low-altitude industry was designated as a strategic emerging sector at the Central Economic Work Conference in 2023, along with bio-manufacturing and commercial aerospace.

    Yang predicted the sector will be worth 1 trillion yuan by the end of this year and 3.5 trillion yuan by 2035, or more, driven by ongoing major infrastructure projects, including new takeoff and landing sites, telecommunications equipment and navigation systems.

    However, the sector faces new challenges compared to traditional high-altitude flight, due to complex airflows in low-altitude space affecting flight control and route planning.

    To address these issues, Yang’s team began constructing a troposphere wind tunnel in 2022, which has been operating for nearly a year. The wind tunnel uses digital twin technology to digitize meteorological data, integrating it with traditional telecommunications equipment.

    Xu Heyuan, chief expert at the China Academy of Information and Communications Technology, said low-altitude flight, as a new mode of transportation, could help drive economic development in remote and less accessible areas, aiding poverty alleviation efforts. Xu said the sector is also a new driving force for industrial transformation and has a long industrial chain, involving innovation in both aviation and information technology.

    The ISC, established in 2001, has worked to promote exchange and cooperation within the internet sector. The organization actively supported the low-altitude economy by coordinating dialogue for technology development, commercial applications and industry collaboration. The society plans to set up a dedicated working committee for the low-altitude sector to connect policymakers, research institutions and enterprises.

    MIL OSI China News

  • MIL-OSI Canada: Governments of Canada and British Columbia to make important announcement about high-speed Internet and mobile connectivity in the province

    Source: Government of Canada News

    July 25, 2025 – Armstrong, British Columbia

    The Honourable Buckley Belanger, Secretary of State (Rural Development), together with the Honourable Diana Gibson, British Columbia’s Minister of Citizens’ Services, will make an announcement about improving high-speed Internet access and mobile connectivity in rural British Columbia.

    A media availability will follow.

    Date: Monday, July 28, 2025

    Time: 10:30 am (PT)

    Location:
    Caravan Farm Theatre
    4886 Salmon River Road
    Armstrong, British Columbia

    Members of the media are asked to contact ISED Media Relations at media@ised-isde.gc.ca to confirm their attendance.

    MIL OSI Canada News

  • MIL-OSI Security: Virginia Man Pleads Guilty to Federal Swatting Charges

    Source: US FBI

    Baltimore, Maryland – Today, Evan Strauss, 27, of Moneta, Virginia, pled guilty to conspiracy, cyberstalking, interstate threatening communications, and threats to damage or destroy by means of fire and explosives. 

    Kelly O. Hayes, U.S. Attorney for the District of Maryland, announced the guilty plea with Acting Special Agent in Charge Amanda M. Koldjeski, Federal Bureau of Investigation (FBI) – Baltimore Field Office.

    According to the guilty plea, Strauss helped create and operate an online group known as “Purgatory.”  The group used multiple online social-media platforms, including Telegram and Instagram, to coordinate and plan swatting and doxxing activities and to announce and brag about swats that they conducted.  

    “Swatting” is a term used to describe a criminal incident in which an individual contacts emergency services and falsely reports an emergency, often involving an act of violence that reportedly has or will occur at a particular location to elicit an armed law enforcement response to that location.  “Doxxing” is a term used to describe the practice of — searching for and publishing on the Internet — personal, private, or identifying information about an individual with malicious intent, such as providing the information for the purpose of facilitating the swatting of the individual.

    From December 10, 2023, through January 18, 2024, Strauss and his co-conspirators, including a co-conspirator who resided in Hagerstown, Maryland, and made calls from Maryland, placed swatting calls to police and other emergency response departments. One or more of the conspirators, acting with the intent to threaten, intimidate, and harass individuals and entities, falsely reported emergencies in the form of violent acts at particular locations to cause armed law enforcement responses.

    Strauss and his co-conspirators often used shared scripts to plan and coordinate their conduct. They then called police departments using Voice over Internet Protocol (VOIP) services to obscure their phone numbers and identities.

    As part of the scheme, Strauss called the Newark Delaware Police Department and falsely claimed that he heard a man firing shots in a school hallway. Moments later, the Maryland co-conspirator called the department again, threatening to shoot a specific Newark High School teacher and kill students. As a result of these calls, which occurred in the middle of the school day, authorities placed the school on lockdown as police officers rushed to respond. Later the same day, Strauss and other conspirators bragged about the incident and posted images from the resulting news coverage onto their group’s social media accounts.

    Strauss encouraged a Purgatory conspirator to “shut down” an airport. Following Strauss’ urging, the conspirator used a VOIP number to call the Albany Police Department in Albany, New York, stating he was going to the Albany International Airport to “shoot everybody up” and that his “friend” was going to set off bombs in the airport. Police units then rushed to respond to these threats.

    Additionally, as part of this scheme, the Maryland co-conspirator called the Houston County Sheriff’s Office in Dothan, Alabama, and threatened to burn down part of a residential trailer park and kill any law enforcement officers who arrived to respond to the threat.

    Strauss faces a maximum sentence of 10 years in federal prison for each count of threatening to damage or destroy by fire or explosive and a maximum sentence of five years in federal prison for conspiracy, cyberstalking, and interstate threats.  Co-conspirators Brayden Grace, 19, of Columbus, Ohio, and Owen Jarboe, 19, of Hagerstown, Maryland, pled guilty earlier this year and are awaiting sentencing.

    Actual sentences for federal crimes are typically less than the maximum penalties.  A federal district court judge determines sentencing after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing is scheduled for Thursday, November 6, at 10 a.m.

    U.S. Attorney Hayes commended the FBI for its work in the investigation.  Additionally, Ms. Hayes praised the Joint Terrorism Task Force, Columbus; Ohio Police Department; Newark, Delaware Police Department; Lenoir City, Tennessee Police Department; Albany, New York Police Department; Albany County, New York Sheriff’s Office; Fairburn City, Georgia Police Department; Bethel Park, Pennsylvania Police Department; Giles County, Virginia Sheriff’s Office; Blue Springs, Missouri Police Department; Tarboro, North Carolina Police Department; Boston, Massachusetts Police Department; Dodge County, Georgia Sheriff’s Office; Houston County, Alabama Sheriff’s Office; and the FBI’s Mobile, Richmond, Boston, Charlotte, and Cincinnati Field Offices for their valuable assistance. Ms. Hayes also thanked Assistant U.S. Attorneys Robert I. Goldaris and Patricia C. McLane who are prosecuting the case.

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

    # # #

    MIL Security OSI

  • MIL-OSI: Wall Street Shiba Raises $500,000 in 72 Hours, Launches STIBA ICM Labs to Power the Next Era of MemeFi

    Source: GlobeNewswire (MIL-OSI)

    SINGAPORE, July 25, 2025 (GLOBE NEWSWIRE) — Wall Street Shiba ($STIBA), a next-generation memecoin bridging AI, DeFi, and Internet Capital Markets, has successfully raised $500,000 within 72 hours of its presale launch. The project introduces a novel approach to MemeFi by combining real-world utility, institutional-grade partnerships, and advanced anti-exploit technologies.

    Backed by World Liberty Financial (WLFI), a global financial group known for supporting high-impact projects, $STIBA aims to create a sustainable and credible memecoin ecosystem. The initiative is further strengthened by the introduction of STIBA ICM Labs, a smart launchpad enabling secure token creation.

    Introducing STIBA ICM Labs
    At the core of the ecosystem is STIBA ICM Labs — a secure token generation platform with built-in safety protocols, including:

    • Hyper Anti-Rug Protection – Liquidity auto-migrated to Uniswap post-bonding curve to prevent rug pulls
    • Sniper Bot Blacklisting – Automatically blocks 80% of bots at launch
    • Sell-Limit Controls – Top holders restricted from dumping more than 30% in a single transaction
    • DAO Governance – Tokens created via ICM Labs include on-chain governance structures
    • Launch Incentives – Eligible creators receive 0.02 ETH, 5,000 $STIBA, and trading fee bonuses

    Note: All features are currently undergoing experimental testing and may evolve over time.

    Tokenomics Overview

    • Total Supply: 10 billion $STIBA
    • Presale: 25%
    • Liquidity Pool: 15%
    • Staking & Rewards: 15%
    • Marketing & Growth: 15%
    • Airdrop: 10%
    • Project Development: 20%

    Roadmap Highlights

    • Phase 1: Presale & Community Building
    • Phase 2: ICM Labs Rollout
    • Phase 3: Centralized Exchange Listings + DAO Governance
    • Phase 4: MemeFi Ecosystem Partnerships & Cross-chain Expansion
    • Phase 5: Global USD1 Payment Integration

    About Wall Street Shiba

    Wall Street Shiba ($STIBA) is the first MemeFi project designed to bridge internet culture, decentralized finance, and institutional-grade financial backing. With support from World Liberty Financial, it aims to empower creators and traders through utility-driven innovation and secure blockchain infrastructure.

    For more information, visit: https://wallstreetshiba.com
    Follow on X: https://x.com/shibawallstreet

    Media Contact:

    Wall Street Shiba Team
    Email: contact@wallstreetshiba.com

    Disclaimer: This press release is provided by the “Wall Street Shiba ($STIBA)”. The statements, views, and opinions expressed in this content are solely those of the content provider and do not necessarily reflect the views of this media platform or its publisher. We do not endorse, verify, or guarantee the accuracy, completeness, or reliability of any information presented. We do not guarantee any claims, statements, or promises made in this article. This content is for informational purposes only and should not be considered financial, investment, or trading advice.

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    A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/6be7c55c-743d-47e0-b030-573c1eae6463

    The MIL Network