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  • MIL-OSI USA: DOE Invests $32 Million for Grid-Edge Technology and Smart Charge Management

    Source: US Office of Energy Efficiency and Renewable Energy

    WASHINGTON, D.C.—Today, the U.S. Department of Energy (DOE) announced $32 million for six selected pilot projects that will support new load growth through grid-edge innovations and the ability of energy providers to right-size grid investments for future load growth. These Connected Communities projects in eight states will also provide new strategies and tools for utilities, grid planners and operators, automakers, electric vehicle (EV) smart charge management service providers, and the communities they serve to improve resilience and reduce costs.
    “Providing low-cost, resilient, and reliable energy to all Americans is a top priority for the DOE,” said Jeff Marootian, principal deputy assistant secretary for DOE’s Office of Energy Efficiency and Renewable Energy. “As our nation’s energy system faces unprecedented demand growth, it’s more important than ever to deploy solutions that maximize all our energy resources and deliver the most efficient, reliable, and affordable electricity possible. These pilot projects will leverage the latest grid-edge solutions—like energy efficiency, demand-responsive building systems, energy storage, EV smart charging, and advanced grid-planning strategies—to equip communities and utilities with the tools and data they need to confidently manage our evolving electric grid.”
    DOE continues to evaluate applications for this funding opportunity and intends to award additional projects up to a total of $65 million, as originally announced, with additional selections as reviews are completed. 
    Connected Communities 2.0 builds on the successes and lessons learned from the first cohort of Connected Communities, launched in 2020, and DOE’s original smart neighborhoods in Georgia and Alabama. The first Connected Communities projects focused on integration of distributed energy resources (DERs) to support a more variable grid. The 2.0 version aims to address growing challenges to the grid head-on, ensuring that necessary upgrades are sized correctly to accommodate increasing loads at vehicle charging locations, data centers, buildings, and industrial sites in a way that leverages the flexibility of these new loads. In the process, DOE is selecting a cohort and collecting data needed to build confidence that the grid is highly flexible and resilient.
    Connected Communities 2.0 centers on two major areas:

    Connected Communities (topic 1), focused on integrated grid-edge technical measures in buildings, industry, and transportation to prepare the electric grid for new loads and improve customer benefits and grid resilience.
    Smart Charge Management (subtopic 1A), focused on various unique urban, suburban, and rural-use cases to build confidence in smart charge management as an effective approach for EVs to provide flexibility and value to the electric grid.

    Three projects have been selected in each area.
    The Connected Communities selectees are:

    The Accelerating Community-wide Connected Electric Loads & Energy Reliability Achieved Through Integration with Nationwide Grid (ACCELERATING) Connectivity initiative (Minnesota), led by the Beneficial Electrification League, will advance a nationally scalable approach for building load management. The project will prioritize partnerships with electric cooperatives in Minnesota that advance communications to optimize residential thermal loads as grid assets. (Award amount: $5.3 million)
    Purdue University (Indiana) will demonstrate pathways for rural electric membership cooperatives to improve energy efficiency and resilience in the face of new load growth in collaboration with the National Rural Electric Cooperative Association. Pathways include engaging with rural communities, piloting financial programs, coordinating DERs through systems, and scaling up lessons learned. (Award amount: $5.9 million)
    The Responsive Energy Communities Harnessing Advanced Grid Efficiency (RECHARGE) initiative (California), led by Pacific Gas & Electric, will target residential units, businesses and industry in the city of San Jose and in the Fresno County. RECHARGE will address the growing electric demand and distribution capacity challenges in these communities. (Award amount: $6 million)

    The Smart Charge Management selectees are:

    One Energy Enterprises (Ohio) will pioneer a community charging depot for medium- and heavy-duty truck fleets, which will integrate advanced microgrid technology and DERs to minimize charging investments, while optimizing the grid. The site will be located in Findlay, Ohio, with plans for expansion to support a larger number of class 6–8 electric trucks. (Award amount: $3.2 million)
    Baltimore Gas & Electric Company (Maryland) will use a multi-faceted distributed energy resource management system to unlock grid-aware managed charging functionality. The project will feature technology that reduces residential EV charging peak loads, decreases infrastructure upgrade costs, and adjusts charging schedules to alleviate grid congestion. (Award amount: $5.9 million)
    EV.Energy (California, Florida, Alaska, Rhode Island, and Hawaii) will demonstrate and validate smart charge management solutions in five diverse utility territories across five different states. Smart charge management approaches will include optimization for renewable energy matching, reduced grid congestion, timer peak smoothing, expanded charging access for multifamily housing, and both vehicle-to-home and vehicle-to-grid technologies.  (Award amount: $6 million)

    The six projects selected today will demonstrate the capabilities of grid-edge technologies and integrated power systems that are efficient, resilient, flexible, and affordable, along with distribution and grid-planning strategies that can be replicated across the United States.
    Integration is essential to Connected Communities, and DOE’s Office of Energy Efficiency and Renewable Energy (EERE) and Office of Electricity are collaborating to support integrated energy system planning with a network of technology offices and industry partners. The Connected Communities 2.0 funding announcement is led by EERE’s Building Technologies Office and Vehicle Technologies Office in collaboration with the Solar Energy Technologies Office, Industrial Efficiency and Decarbonization Office, and Geothermal Technologies Office.

    MIL OSI USA News –

  • MIL-OSI USA: DOE Announces New Tools Making it Easier for Home Contractors to Install Energy Saving Appliances and Lower Costs

    Source: US Department of Energy

    As More Americans Seek Home Energy Upgrades, New DOE Resources Will Enable Easier Access to the Historic Money Saving Incentives Provided by the Biden-Harris Administration’s Investing in America Agenda

    WASHINGTON, D.C.—  In support of the Biden-Harris Administration’s Investing in America agenda, the U.S. Department of Energy (DOE) today released new resources to help American households and home energy efficiency contractors understand how to qualify for thousands of dollars in federal tax credits, made available by the Inflation Reduction Act, for home upgrades. The resources include a Tax Credit Product Lookup Tool to help determine if new equipment is eligible for tax credits; information that walks contractors through key elements of home insulation products that can lower utility bills and qualify for tax credits; and a training module on how contractors can leverage a range of home energy efficiency incentives. By making it easier for households and contractors to know if they qualify for these tax credits, this tool will enable more Americans to access them and to lower their utility bills. 

    These resources will help drive access to the Energy Efficient Home Improvement Credit, which more than 2.3 million families have already claimed, saving over $2 billion total—an average tax cut of $880 per household—according to the U.S. Department of the Treasury. The Energy Efficient Home Improvement Credit, which is available through 2032, allows households to receive up to $3,200 in tax credits annually for a variety of energy-efficient home improvements. Improving home energy efficiency and upgrading equipment will save homeowners money on utility bills and improve home resilience, and is key to the Biden-Harris Administration’s national clean energy goals. 

    “Across the board, the Biden-Harris Administration is making it easier for more American households to save energy and save money on home improvement upgrades that will keep money in their pockets for years to come,” said U.S. Secretary of Energy Jennifer M. Granholm. “Contractors are the go-to resource for homeowners looking to upgrade insulation, wiring and appliances, which is why we are providing new tools that get contractors the information to ensure their customers can unlock Investing in America savings.”  

    New Resources  

    • The Tax Credit Product Lookup Tool can help determine if new heating, air-conditioning, or water-heating equipment may be eligible for the Energy Efficient Home Improvement Credit. Contractors—or even homeowners—can enter information about a particular product to determine if it meets tax credit eligibility criteria and receive a single page report that the homeowner can print or save for their records.
    • The home insulation explainer walks contractors and homeowners through the key elements of home insulation and air-sealing products that can lower utility bills and qualify for tax credits.
    • The new contractor training module provides detailed introductory information on how contractors can leverage residential energy efficiency incentives, including those available from federal, state, local, and utility-run programs. The 30-minute video is available for free on the Building Science Education Solution Center. The training is complementary to DOE’s Energy Skilled recognition program, which contractors can use to find training and certification programs that develop the skills and knowledge needed for clean energy jobs. 

    These new resources build on existing DOE tools to help Americans explore energy-saving technologies for their homes, including heat pump water heater and cold climate heat pump tools to guide contractors and homeowners through the decision-making process for selecting equipment. 

    Homeowners can also go to the ENERGY STAR website to find information on the many federal tax credits offered for energy-efficient home heat pump technology, home improvements, and clean energy equipment upgrades. The website also offers detailed instructions for claiming tax credits as well as strategies for maximizing federal tax savings.  

    Many energy-efficient tax credits can be used together with DOE Home Energy Rebate programs and other state, local, and utility energy efficiency incentives, helping consumers save even more on purchase and installation costs. Collectively, the product lookup and decision tools, along with contractor training, will help Americans improve their homes’ energy efficiency while ensuring they get the right equipment for their comfort needs, qualify for incentives, and lower their energy bills. 

    MIL OSI USA News –

  • MIL-OSI USA: DOE and Commerce Department Sign Memorandum of Understanding to Advance Safe, Secure, and Trustworthy Development and Use of AI

    Source: US Department of Energy

    WASHINGTON, D.C. — The U.S. Department of Energy (DOE) and the U.S. Department of Commerce (DOC), as represented by the National Institute of Standards and Technology (NIST), announced a memorandum of understanding (MOU) signed earlier this year to collaborate on safety research, testing, and evaluation of advanced artificial intelligence (AI) models and systems.  

    This partnership is a key example of the Biden-Harris Administration’s whole-of-government approach to ensuring the safe, secure, and trustworthy development and use of AI. This announcement follows the recent release of the first-ever National Security Memorandum on AI, which designated the U.S. AI Safety Institute (US AISI), which is housed within NIST, as a key hub of the U.S. government’s AI safety efforts and identifies a substantial role for DOE in helping the U.S. government understand and mitigate AI safety risks and improve the performance and reliability of AI models and systems. 

    “There’s no question that AI is the next frontier for scientific and clean energy breakthroughs, which underscores the Biden-Harris Administration’s efforts to push forward scientific innovation in a safe and secure manner” said U.S. Secretary of Energy Jennifer M. Granholm. “Across the federal government we are committed to advancing AI safety and today’s partnership ensures that Americans can confidently benefit from AI-powered innovation and prosperity for years to come.” 

    In addition to facilitating joint research efforts and information sharing, this agreement enables the Department of Energy and its National Laboratories to lend both their technical capacity and their subject matter expertise to the US AISI and NIST. 

    “By empowering our teams to work together, this partnership with the Department of Energy will undoubtedly help the U.S. AI Safety Institute and NIST advance the science of AI safety,” said U.S. Secretary of Commerce Gina Raimondo. “Safety is key to continued innovation in AI, and we have no time to waste in working together across government to develop robust research, testing, and evaluations to protect and advance essential national security priorities.” 

    Through this MOU, the DOE and DOC intend to evaluate the impact of AI models on public safety, including risks to critical infrastructure, energy security, and national security. Key focus areas include developing classified evaluations of advanced AI models’ chemical and biological risks, as well as developing and evaluating evaluate privacy enhancing technologies that aim to protect personal and commercial proprietary data. These efforts, combined with DOE’s AI testbeds, will help lay the foundation for a safe and innovative future for AI. 

    Read the full MOU here. 

    MIL OSI USA News –

  • MIL-OSI USA: DOE Announces Collaboration With Tribal Leaders To Reduce Greenhouse Gas Emissions and Strengthen National Security

    Source: US Department of Energy

    WASHINGTON, D.C. —  The U.S. Department of Energy (DOE) today announced the formation of the Tribal Fossil Energy and Carbon Management Working Group, administered by DOE’s Office of Fossil Energy and Carbon Management (FECM). Tribes play a critical role in helping the United States meet its energy security and climate obligations while working to develop their vast energy, critical minerals and materials, and carbon management potential. As part of this collaboration, the Working Group will provide ongoing advice and expertise to DOE on the best ways to assist Tribal decarbonization efforts and utilization of their natural resources. DOE’s technical assistance will help Tribes spur local economic development; provide workforce training for local, high-wage, middle class jobs; and support Tribal technical capacity for fostering energy, economic, and community development opportunities.

    “The U.S. Department of Energy recognizes that energy is foundational to Tribal self-determination, and we are proud to have Tribal leadership in, and partnership with DOE’s efforts to expand clean energy development,” said U.S. Secretary of Energy Jennifer M. Granholm. “Under the Biden-Harris administration, DOE has invested more money in Tribal clean energy projects than any administration and we are excited to build on this work with a new Working Group aimed at supporting Tribal capacity-building and investments in carbon management, methane mitigation and critical minerals that benefit Tribal communities.”  

    This Fossil Energy and Carbon Management Tribal Working Group marks the fourth working group the DOE has established to collaborate with Tribes. This latest working group will initially include representation from eight federally recognized Tribes with significant fossil energy reserves and reliance on revenue from those resources, including: Jicarilla Apache; Crow Nation; Navajo Nation; Caddo Nation; Hopi Nation; Southern Ute; Arctic North Slope Iñupiat; and Mandan, Hidatsa and Arikara (MHA) Nation. DOE anticipates the number of Tribes formally participating in the working group will grow over time.   

    “The Mandan, Hidatsa, and Arikara Nation is deeply honored to have hosted DOE and the forum participants for a site visit to our MHA Native Green Grow and Bakken operations,” said Chairman Mark N. Fox. “We extend our heartfelt thanks to the U.S. Department of Energy’s Office of Fossil Energy and Carbon Management and the U.S. Energy Association for bringing together such an important gathering. It was a privilege to showcase our innovative initiatives and share our vision for sustainable resource development on tribal lands. The MHA Nation looks forward to continued collaboration through the Tribal Working Group and exploring new opportunities with DOE to ensure that our energy resources are managed responsibly for the benefit of future generations.” 

    “The Caddo Nation is honored to join the FECM Tribal Working Group and participate in this vital initiative,” said Chairman Bobby Gonzalez. “As stewards of our land and resources, we recognize the importance of addressing methane emissions and are exploring new opportunities for mitigation. Our Nation is particularly excited to work with FECM and other partners such as the Oklahoma University along with engineers and chemist and industry leaders on innovative solutions like converting methane to hydrogen, which aligns with our long-term energy goals and our commitment to sustainable development and lower emissions. These discussions within [the] FECM Tribal Working Group will not only benefit our Nation but also help Indian Country and the broader Oklahoma community as we look toward a cleaner, more resilient future.” 

    “The Iñupiat Community of the Arctic Slope is eager to participate in the Tribal Working Group in collaboration with the U.S. Department of Energy’s Office of Fossil Energy and Carbon Management,” said Director of Natural Resources Doreen Leavitt. “As stewards of the vast oil and gas resources on the Alaskan North Slope, we are committed to managing these resources in a way that honors our land and our people, while ensuring the well-being of future generations. We look forward to working together with FECM to explore sustainable practices that balance economic development with environmental protection, so that our communities can thrive for years to come.” 

    “We are committed to advancing practices that will bring long-term benefits to the Navajo Nation as well as other participating Tribes,” said Interim Tribal Co-Chair William D. McCabe. “Our participation in the [Tribal Carbon Management Strategies] forum strengthened our resolve to foster sustainable, responsible management of our natural resources. The Navajo Nation looks forward to actively collaborating within the Tribal Working Group and working alongside FECM to explore and leverage the full suite of technologies under the FECM umbrella. Together, we can harness these innovations to ensure that our resources are utilized in a way that brings economic growth, preserves our lands, and supports the prosperity and well-being of the Navajo people, now and for generations to come.”

    “The Southern Ute Indian Tribe is proud to participate in the Fossil Energy and Carbon Management Tribal Working Group,” said Demi Morishige, Designated Representative. “This partnership enables us to advocate for our community’s priorities and promote sustainable energy initiatives that reflect our unwavering commitment to Tribal sovereignty. We are eager to collaborate with our fellow tribal nations and the U.S. Department of Energy to develop solutions for a safe, affordable, and reliable carbon-neutral future. Our efforts will prioritize promoting economic development across all tribal communities.” 

    “The Crow Nation extends its heartfelt gratitude to the U.S. Department of Energy’s Office of Fossil Energy and Carbon Management and the U.S. Energy Association for the opportunity to participate in the Tribal Carbon Management Strategies Forum held in Medora, North Dakota. We are deeply honored to engage in these meaningful discussions about the future of energy, resource management, and economic development for our people. Our Nation is blessed with significant carbon resources, and we look forward to actively participating in the Tribal Working Group, where we can explore new avenues of cooperation with FECM. Together, we can ensure that the Crow Nation continues to utilize these resources in a manner that fosters prosperity for our people and protects the well-being of future generations.” 

    The Bipartisan Infrastructure Law provides more than $13 billion in funding to directly support Tribal communities and makes Tribes eligible to apply for or request billions in additional funding. The Inflation Reduction Act directs $720 million in climate resilience and energy funding to Tribes, as well as provides hundreds of billions in tax credits for which clean energy and industrial projects on Tribal lands and in Tribal communities are eligible. For this reason, the initial priorities proposed for the working group are to explore technical assistance and capacity-building to leverage these funding opportunities related to FECM’s portfolio and other DOE offices:   

    • Development of carbon capture, transport and storage facilities and infrastructure; 
    • Methane mitigation;   
    • Critical minerals production and processing; and  
    • Repurposing existing energy assets slated for retirement—such as coal, oil, and/or natural gas facilities and accompanying equipment and infrastructure. 

    As a next step, FECM plans to convene representatives of the participating Tribes for a series of virtual information briefings across these identified priorities to prepare for the first formal meeting of the working group in 2025.  

    FECM minimizes environmental and climate impacts of fossil fuels and industrial processes while working to achieve net-zero emissions across the U.S economy. Priority areas of technology work include carbon capture, carbon conversion, carbon dioxide removal, carbon dioxide transport and storage, hydrogen production with carbon management, methane emissions reduction, and critical minerals production. To learn more, visit the FECM website, sign up for FECM news announcements, and visit the National Energy Technology Laboratory website. 

    MIL OSI USA News –

  • MIL-OSI USA: U.S.-Republic of Korea Reach Provisional Agreement on Nuclear Cooperation

    Source: US Department of Energy

    U.S.-Republic of Korea Reach Provisional Agreement on Nuclear Cooperation

    Energy.gov

    November 4, 2024

    Consistent with the deep and longstanding relationship between the United States and the Republic of Korea, the two countries reached a significant outcome on November 1, advancing their cooperation on civil nuclear energy by initialing a Memorandum of Understanding (MOU) on Principles Concerning Nuclear Exports and Cooperation. The United States and the Republic of Korea reaffirmed their mutual commitment to promoting the expansion of peaceful nuclear energy while upholding the highest standards of nonproliferation, safety, safeguards, and security. Toward this end, the parties strengthened their administration of export controls on civil nuclear technology. These further commitments will provide a springboard for the expansion of our bilateral work in combatting climate change, accelerating global energy transitions, and assuring critical supply chains while creating billions of dollars worth of new economic opportunities and the creation or maintenance of tens of thousands of manufacturing jobs for both of our industries. The MOU will proceed to final review in both countries’ capitals.

    MIL OSI USA News –

  • MIL-OSI USA: Biden-Harris Administration Announces $30 Million to Ease Interconnection Backlog, Deliver More Energy Supply on America’s Power Grid

    Source: US Department of Energy

    WASHINGTON, D.C.— The Biden-Harris Administration, through the U.S. Department of Energy (DOE), today announced up to $30 million available from the Bipartisan Infrastructure Law to accelerate the interconnection process for new energy generation through the introduction of artificial intelligence techniques. The new Artificial Intelligence for Interconnection (AI4IX) program will develop partnerships between software developers, grid operators (including Regional Transmission Operators (RTOs) and Power Marketing Administrations), and energy project developers to modernize the interconnection application process and significantly reduce the time required to review, approve, and commission new generation interconnections across the country. 

    “Artificial intelligence is an energy solution capable of helping clear an interconnection backlog that will free up new energy sources to ensure consumers have power when and where they need it,” said U.S. Secretary of Energy Jennifer M. Granholm. 

    Interconnection queues to connect new generation are not keeping pace with the needs of the grid. Currently, new generation interconnection can take up to seven years and DOE’s recent Queued Up Report shows that active, but unconnected capacity is twice the amount of current connected generation.  

    Interconnection applications are often reviewed manually, creating a labor-intensive process, particularly given that many applications are incomplete or insufficient. Some organizations have indicated that over 90% of interconnection applications they receive are deficient and correcting these applications is a significant cause of long analysis and development delays.   

    Artificial intelligence can help improve applications and improve review. Funded by the Bipartisan Infrastructure Law, under AI4IX, projects will work to apply existing AI algorithms to the interconnection application process to more quickly identify deficient applications and rapidly notify applicants for resolution. For example, AI software trained on a library of accurate documentation and application materials can review interconnection applications for the required site control documentation and flag errors within submitted supporting documents. Documenting site control for interconnection is a particularly challenging issue for project developers due to the different stakeholders, property laws, and grid facility access requirements for each generator project.   

    After identifying application errors, the software would then notify the applicant that their documentation is not sufficient and why, enabling them to quickly respond to the specific issues. By deploying AI, the precision and speed in identifying documentation issues and providing specific reasons to enable timely resolutions or correction can improve over time. Applying AI technology and existing algorithms can accelerate each phase of the interconnection application process. 

    The AI4IX program aligns with DOE’s continued support for improving interconnection queues across the United States. Under the Department’s Grid Resilience and Innovation Partnership (GRIP) Program, DOE is supporting a multi-state project led by GridUnity to deploy AI-enabled software to improve the efficiency of the interconnection process with multiple RTOs covering approximately 60% of the U.S. population—around 210 million people—to enhance energy reliability, security, and lower costs. In addition, DOE’s Office of Energy Efficiency and Renewable Energy is leading the Interconnection Innovation e-Xchange (i2X) Transmission initiative, which convenes diverse groups involved in the interconnection of energy resources to facilitate adoption of best practices and inspire new interconnection ideas and capabilities. In October 2024, the i2X program released a draft roadmap that identifies solutions the interconnection community (including utilities, grid operators, regulators, state and local governments, interconnection customers, energy justice groups, nonprofits, clean energy developers, solution providers, public interest groups) can take within the next ten years to create more reliable and resilience electric infrastructure.  

    The AI4IX program also aligns with DOE’s continued support for improving interconnection queues across the United States and supports its 2024 AI for Energy report that was prepared pursuant to President Biden’s Executive Order on the Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence, issued October 30, 2023. 

    ConnectWerx as the Intermediary will manage the technical assistance partnerships under the AI4IX program, via an innovative Partnership Intermediary Agreement (PIA) set up by the DOE’s Office of Technology Transitions (OTT). This agreement enables ConnectWerx to broaden DOE’s engagement with innovative organizations and non-traditional partners, facilitating the rapid development, scaling, and deployment of clean energy solutions. 

    Applications for the first round of AI4IX funding are due by January 10, 2025, by 1:00 pm ET. An informational webinar and objective strategy session will be held on December 5, 2024, at 2 pm ET. Registration is required. 

    Additional informational office hours will be held on December 17, 2024. DOE expects to make selections in Winter 2025. 

    Learn more about the Grid Deployment Office. 

    MIL OSI USA News –

  • MIL-OSI USA: U.S. Department of Energy Invests $45 Million to Support Regional Consortia Focused on Securing Domestic Critical Minerals and Materials

    Source: US Department of Energy

    WASHINGTON, D.C. — The U.S. Department of Energy’s (DOE) Office of Fossil Energy and Carbon Management (FECM) today announced $45 million in federal funding for six projects to create regional consortia to accelerate the development of critical mineral and materials supply chains including novel nonfuel carbon-based products from secondary and unconventional feedstocks. Realizing the value of secondary and unconventional feedstocks, such as coal and coal by-products, effluent waters from oil and gas development, and acid mine drainage will enable the United States to rebuild domestic supply chains for critical minerals and materials. By focusing on abundant American secondary and unconventional sources, these investments will support dependable and enduring supplies for American manufacturing and production of technologies essential to clean energy and our nation’s defense. 

    “Rebuilding a domestic supply chain for critical minerals and materials here at home will both safeguard our national security and support the continued development of a clean energy and industrial economy,” said Brad Crabtree, Assistant Secretary of Fossil Energy and Carbon Management. “DOE is investing in collaborative regional projects to help us realize our nation’s full potential for recovery of these vital resources, while creating high-wage jobs and delivering environmental benefits for communities across the United States.”

    Selected projects will build upon the work of DOE’s Carbon Ore, Rare Earth and Critical Minerals (CORE-CM) Initiative, expanding the focus from the basin scale to cover eight regions across the Nation. Teams consist of partners such as private industry; universities; local, state, and federal government; local communities; and Tribes and Tribal organizations who will develop and implement strategies that enable each U.S. region to realize its economic critical minerals and materials potential, including valuable non-fuel carbon-based products.

    • University of Alaska Fairbanks (Fairbanks, Alaska) will work with three state geological surveys from Alaska, Oregon, and Washington to better understand the geologic framework and distribution of underexplored mineral resource deposits in the Northwest.
    • University of Illinois Urbana-Champaign (Champaign, Illinois), through the Illinois State Geological Survey, will work with the geological surveys of Michigan, Kentucky, Iowa, Indiana and Ohio to build the economic case for developing critical minerals and materials from coal and coal wastes in the Upper Midwest.
    • University of Texas at Austin (Austin, Texas) will identify resource potential in the Gulf Coast and Permian Basin areas, including from petroleum industry waste; produced water; coal, coal ash, and other coal mine related waste; and other nonfuel mine and processing wastes.
    • University of Utah (Salt Lake City, Utah) will evaluate critical minerals and materials and carbon associated with coal-related materials, sedimentary-hosted minerals, waste-related materials, and other potential value-added materials in the Rocky Mountain region.
    • University of Wyoming (Laramie, Wyoming) will assess the Great Plains and Interior Highlands, which consists of ten states and four basins, to develop domestic supply chains that use secondary and unconventional critical mineral resources.
    • Virginia Polytechnic Institute and State University (Blacksburg, Virginia) will lead a consortium of academic institutions, research laboratories, federal and state natural resource offices, and consultancies to evaluate critical minerals for potential future extraction in the Appalachian Mountain region.

    DOE’s National Energy Technology Laboratory (NETL), under the purview of FECM, will manage the selected projects. A detailed list of the selected projects can be found here. Additional selections may be made at a later date. 

    FECM reduces emissions from fossil energy production and use and key industrial processes, while strengthening U.S. energy and critical minerals security. To learn more, visit the FECM website, sign up for FECM news announcements, and visit the NETL website.

    MIL OSI USA News –

  • MIL-OSI USA: DOE Invests $101 Million to Establish Carbon Capture, Removal, and Conversion Test Centers

    Source: US Department of Energy

    WASHINGTON, D.C. – The U.S. Department of Energy’s (DOE) Office of Fossil Energy and Carbon Management (FECM) today announced $101 million in federal funding for five projects to support the development of carbon dioxide (CO2) capture, removal, and conversion test centers for cement manufacturing facilities and power plants. Accelerating the responsible development and deployment of technologies to capture CO2 emissions from industrial operations and power generation and to remove CO2 directly from the atmosphere will help reduce CO2 emissions, provide new job opportunities, and strengthen the Nation’s energy security. 

    “Carbon management technologies such as carbon capture can significantly reduce emissions from fossil energy use and key industrial processes, like cement production,” said Brad Crabtree, Assistant Secretary of Fossil Energy and Carbon Management. “By investing in test centers, we are helping reduce barriers to commercial scale deployment of carbon capture, conversion, and removal technologies that will ultimately help reduce pollution and create jobs.”

    The five selected projects will support the establishment of test centers to cost-effectively research and evaluate technologies to capture and convert CO₂ into products from utility and industrial sources or remove CO2 from the atmosphere. Establishing test centers of various sizes that use varying feedstocks from different industries can help establish and improve the efficacy and performance of carbon capture technologies. Each of these projects will enable economical and environmentally sustainable carbon management:

    • The Board of Trustees of the University of Illinois (Urbana, Illinois) plans to develop the conceptual design, business, technical and managerial structures for a test center to evaluate and accelerate carbon capture, removal, and conversion technologies in the cement industry. 
       
    • Holcim US (Chicago, Illinois) plans to establish a domestic Cement Carbon Management Innovation Center at its Hagerstown Cement Facility in Maryland and explore the feasibility of the testing center location, ownership structure, business model and technology partners. 
       
    • Southern Company Services, Inc. (Birmingham, Alabama) intends to maintain and operate the National Carbon Capture Center, a comprehensive test facility capable of evaluating CO2 capture, removal, and conversion technologies under electric generating plant operating conditions. 
       
    • University of North Dakota Energy & Environmental Research Center (Grand Forks, North Dakota) plans to enhance its existing CO2 capture, removal and conversion test center to rapidly and cost-effectively test more technologies under relevant power plant operating conditions. 
       
    • University of Wyoming (Laramie, Wyoming) plans to expand the existing Wyoming Integrated Test Center’s capabilities to accommodate a wider range of carbon management technologies, simulating emissions from natural gas and industrial facilities.

    Project funding is subject to appropriations. DOE’s National Energy Technology Laboratory (NETL), under the purview of FECM, will manage the selected projects. Additional details about the projects can be found here.

    FECM reduces emissions from fossil energy production and use and key industrial processes, while strengthening U.S. energy and critical minerals security. To learn more, visit the FECM website, sign up for FECM news announcements, and visit the NETL website. 

    MIL OSI USA News –

  • MIL-OSI USA: DOE Announces $100 Million for Pilot-scale Carbon Conversion

    Source: US Department of Energy

    WASHINGTON, D.C. – The U.S. Department of Energy’s (DOE) Office of Fossil Energy and Carbon Management (FECM) today announced up to $100 million in federal funding for large-scale conversion of carbon emissions captured from industrial operations and power plants into environmentally responsible and economically valuable products. Provided by the Bipartisan Infrastructure Law, the funding will advance the pilot scale testing of carbon conversion technologies with high technology readiness levels (TRLs) capable of achieving significant carbon mitigation via biological, catalytic, or mineralization pathways.

    “Carbon conversion technologies enable the transformation of captured carbon emissions into sustainable and economically valuable products with many different applications,” said Brad Crabtree, Assistant Secretary of Fossil Energy and Carbon Management. “The funding announced today will help demonstrate the feasibility of these technologies and further develop them for broader-scale adoption.”

    This notice of funding opportunity (NOFO) also supports testing of carbon conversion product performance and characterization needed for market or consumer adoption. This may include life cycle analysis (LCA) development for novel carbon conversion technologies and LCA development for pilot facilities using these technologies.

    This NOFO supports DOE’s Carbon Conversion Program, which works to develop and advance technologies that feasibly convert captured carbon emissions into more sustainable carbon-derived products, including chemicals, fuels, building materials, plastics, and bioproducts, with the potential for lower costs and improved performance over time.

    Selected projects will perform research in the following four topic areas:

    • Pilot-Scale Biological Conversion. Research focused on technologies at TRL 5 that seek pilot scale conversion of carbon dioxide, either through photosynthetic or non-photosynthetic routes. Research and development (R&D) will support algae biomass production, separation, and conversion, as well as autotrophic CO2 fermentation to fuels and products.
       
    • Pilot-Scale Catalytic Conversion. Research focused on technologies at TRL 5 that seek pilot scale thermochemical and electrochemical conversion of carbon dioxide. R&D will support reactor and catalyst performance improvements, long-term stability, and electrolyzer stack durability and design. 
       
    • Pilot-Scale Mineralization. Research focused on technologies at TRL 5 that seek pilot scale mineralization of carbon dioxide to produce synthetic aggregates, alternative binders, or injection, curing, and carbonation processes. R&D will support pilot scale operations at a scale of 10 tonnes/day. 
       
    • Other Testing and LCA Development Required for Commercialization. R&D will support performance testing in specific environments, production of the amount of material needed for testing, performance validation support, and specific tests required as a prerequisite for participation in competitive purchasing and procurement processes. 

    Read more details of this NOFO here. All questions must be submitted through FedConnect; register here for an account. The application deadline is April 11, 2025 at 5:00 PM Eastern Time.

    FECM reduces emissions from fossil energy production and use and key industrial processes, while strengthening U.S. energy and critical minerals security. To learn more, visit the FECM website, sign up for FECM news announcements and visit the National Energy Technology Laboratory website.

    MIL OSI USA News –

  • MIL-OSI USA: DOE Invests Over $32 Million to Increase Efficiency of U.S. Critical Minerals Production Through the Co-Manufacture of Value-Added Products

    Source: US Department of Energy

    WASHINGTON, D.C. – The U.S. Department of Energy’s (DOE) Office of Fossil Energy and Carbon Management (FECM) today announced $32.75 million for 12 projects that will advance cost effective and environmentally responsible processes to produce and refine critical minerals and materials here in the United States. The funding, provided by the Bipartisan Infrastructure Law, focuses on projects that will develop value-added products, such as graphite or building materials, from feedstocks such as mining waste streams that also contain viable levels of critical minerals and materials. The manufacture of these co-products can improve the economic feasibility of domestically producing critical minerals and materials from these same feedstocks to reduce our dependence on offshore supplies. These projects will help safeguard our national security and build a clean energy and industrial economy, while creating good-paying jobs and supporting communities across the country that historically have depended on mining and energy production.

    “Building reliable and affordable critical mineral and material supply chains is essential to deploying the technologies needed for national defense and to support low-carbon U.S. energy production, manufacturing, and transport,” said Brad Crabtree, Assistant Secretary of Fossil Energy and Carbon Management. “Through DOE’s strategic investments in projects that help improve the economics of domestic materials production through the manufacture of valuable co-products, we are creating good-paying jobs, increasing U.S. competitiveness, reducing our import reliance, and strengthening our national security and energy independence.”

    According to the U.S. Geological Survey, more than 95% of the U.S. demand for rare earth elements is met by foreign sources. More than 50% of most critical minerals come from foreign sources, and at least 12 critical minerals come exclusively from foreign sources.

    Critical Material Innovation, Efficiency, and Alternatives

    The “Critical Material Innovation, Efficiency, and Alternatives” funding opportunity will provide up to $150 million over several rounds of project selections to help to build a secure, sustainable domestic supply of critical minerals from sources across the United States, including recycled materials, mine waste, industrial waste, and ore deposits. Specifically, the funding opportunity will support bench- and pilot-scale research, development, and demonstration projects to increase the robustness of domestic supply chains and reduce our reliance on foreign supply chains. The following 12 projects selected for negotiation fall under the “Value Added Products” area of interest, and are focused on developing products created from other materials that are also part of the waste streams from which critical minerals and materials are extracted:

    • Ohio University (Athens, Ohio) plans to develop and demonstrate the viability of a novel continuous engineered foaming process to produce value-added carbon building materials from coal and coal waste containing critical minerals and materials.
    • Loukus Technologies, Inc. (Calumet, Michigan) aims to establish a semi-continuous process for conversion of cerium oxide with low-value scrap aluminum machining chips to produce advanced aluminum-cerium alloys.
    • Trustees of the Colorado School of Mines (Golden, Colorado) plans to develop bench-scale continuous processes to produce building materials, specifically geopolymer bricks, lightweight aggregates, and ceramic tiles, from critical minerals and materials found in mine tailings. 
    • Still Bright, Inc. (Newark, New Jersey) seeks develop a novel electrochemical technology to extract metal co-products from copper concentrate. 
    • Lawrence Berkeley National Laboratory (Berkeley, California) will develop a domestic supply of lithium while co-producing up to 10 other critical and valuable metals, graphite, and Portland cement.
    • University of Utah (Salt Lake City, Utah) will establish a process to demonstrate co-production of lithium salt, potassium salt, and magnesium salt from Great Salt Lakes brine. 
    • National Energy Technology Laboratory (Albany, Oregon) will define optimum parameters for chromite concentration and the extraction of platinum group elements needed to enable green hydrogen production.
    • Oak Ridge National Laboratory (Oak Ridge, Tennessee) will repurpose end-of-life graphite recycled from spent lithium-ion batteries into value-added graphitic materials using innovative purification and treatment methods.
    • National Energy Technology Laboratory (Albany, Oregon) will design the process of melting electrodes by electric resistance heating of slag—a by-product of the smelting process in metal extraction and refining—which contains rare earth elements in the form of oxides and/or fluorides.
    • Airtronics, LLC (Tucson, Arizona) will develop efficient recycling technologies to recover critical materials, precious metals, and base metals within electronic waste.
    • Mexichem Fluor Inc. (St. Gabriel, Louisiana) will demonstrate the feasibility of an efficient and sustainable process for graphite anode active material production from both graphite waste from battery recycling and mined graphite flake.
    • Melt Technologies LP (Briggs, Texas) will implement a pilot facility to produce tungsten carbide products—essential for many U.S. industries—from feedstock with greater efficiency and lower cost.

    A detailed list of the selected projects and funding amounts can be found here. DOE plans to make additional selections under the FOA’s remaining areas of interest at a later date. 

    DOE’s selections are subject to environmental review in accordance with the National Environmental Policy Act review process. DOE reserves the right to terminate award negotiations at any time for any reason.

    DOE’s Broader Advancements in Critical Minerals and Materials

    With the selections announced today, FECM has committed an estimated $254 million since January 2021 for projects that support critical minerals and materials exploration, resource identification, production, and processing in traditional mining and fossil fuel-producing communities across the country. 

    FECM reduces emissions from fossil energy production and use and key industrial processes, while strengthening U.S. energy and critical minerals security. To learn more, visit the FECM website, sign up for FECM news announcements, and visit the National Energy Technology Laboratory website.

    MIL OSI USA News –

  • MIL-OSI USA: DOE Invests Nearly $14 Million to Advance Technologies that Transform Carbon Emissions into Valuable Products

    Source: US Department of Energy

    WASHINGTON, D.C. — The U.S. Department of Energy’s (DOE) Office of Fossil Energy and Carbon Management (FECM) today announced $13.7 million in federal funding for four projects that will advance large-scale conversion of carbon dioxide (CO2) emissions into environmentally responsible and economically valuable products. With funding provided by the Bipartisan Infrastructure Law, projects will help develop conversion technologies that feasibly produce crucial fuels, building materials, and other carbon-based products from captured carbon emissions. 

    “Chemicals production and petroleum refining industries are vital for the U.S. economy and our nation’s energy security, but are also responsible for significant carbon emissions,” said Brad Crabtree, Assistant Secretary of Fossil Energy and Carbon Management. “DOE’s investments in carbon conversion technology will support new economic opportunities and job creation, while providing lower-emissions carbon product alternatives for these industries at the same time.” 

    The selected projects will support two areas of focus: (1) engineering-scale testing of electrochemical systems for converting carbon dioxide emissions into value-added products, such as engineering polymer/resin precursors, specialty chemicals, and commodity chemicals; and (2) feasibility studies that examine retrofitting refineries and petrochemical facilities for carbon conversion:

    • Dioxide Materials Inc. (Boca Raton, Florida) plans to scale technology for the production of low-greenhouse gas ethanol and mevalonic acid via a combination of electrolysis and bioprocessing. 
       
    • Terraforma Carbon LLC (State College, Pennsylvania) aims to evaluate the technical and economic feasibility of carbon capture and conversion to methanol by modeling a retrofit of Shell’s Norco refinery in St. Charles Parish, Louisiana using molten salt-based capture technology.
       
    • Thiozen Inc. (Pasadena, California) plans to explore the use of a hydrogen sulfide reforming technology to produce low-cost and low-emissions methanol.
       
    • Twelve Benefit Corp. (Berkeley, California) seeks to accelerate the production of low-carbon chemicals and syngas through rapid research, development, and deployment of its CO2 electrolyzers.

    DOE’s National Energy Technology Laboratory (NETL), under the purview of FECM, will manage the selected projects. A detailed list of the selected projects can be found here.

    These projects support the goals of DOE’s Clean Fuels and Products Energy Earthshot, which aims to meet projected 2050 net-zero emissions demands for 100% of aviation fuel; 50% of maritime, rail and off-road fuel; and 50% of carbon-based chemicals by using sustainable carbon resources.

    FECM reduces emissions from fossil energy production and use and key industrial processes, while strengthening U.S. energy and critical minerals security. To learn more, visit the FECM website, sign up for FECM news announcements, and visit the National Energy Technology Laboratory website.

    MIL OSI USA News –

  • MIL-OSI USA: ICYMI: Multistate coalition blocks Trump Administration from freezing essential federal funding

    Source: Washington State News

    OLYMPIA — The U.S. District Court for the District of Rhode Island today granted a request from 22 states, including Washington, for a temporary restraining order halting a White House policy that would block federal agency grants, loans and other financial assistance programs.

    This temporary restraining order extends beyond the administrative stay granted Tuesday by the U.S. District Court for the District of Columbia in response to a lawsuit brought by nonprofit groups that receive federal funds.

    “This outcome reminds us that our country is still governed by the Constitution, even when we have a lawless president determined to sow disorder and eliminate vital programs,” Attorney General Nick Brown said. “Now more than ever, states have a key role in upholding the rule of law.”

    The proposed policy, issued by the president’s Office of Management and Budget on Monday, would have put an indefinite pause on the majority of federal assistance, jeopardizing funds for health care, education, law enforcement, disaster relief, infrastructure and more. The next day, Attorney General Nick Brown and attorneys general from 22 other states sued to immediately stop the enforcement of the OMB policy and preserve trillions of dollars in essential funding.

    While the administration has attempted to rescind the policy, states and organizations that receive federal funding continue to experience major disruptions. Following OMB’s issuance of the policy, Medicaid funds in multiple states were frozen. Head Start programs across the country were cut off from funds, leading some childcare centers to close. Despite the District Court for the District of Columbia’s stay, disruptions to critical funds are continuing to be reported across the country.

    The White House signaled Wednesday they would be re-issuing the order in some form, but today’s temporary restraining order restrains and prohibits the administration from doing that for now as well.

    The lawsuit was led by the attorneys general of New York, California, Illinois, Massachusetts, New Jersey and Rhode Island. Joining the lawsuit are the attorneys general of Arizona, Colorado, Connecticut, Delaware, Hawaii, Maine, Maryland, Michigan, Minnesota, Nevada, New Mexico, North Carolina, Oregon, Vermont, Washington, Wisconsin and the District of Columbia.

    MIL OSI USA News –

  • MIL-OSI USA: Attorney General Bonta, 22 State Attorneys General Secure Court Order Temporarily Blocking Federal Funding Freeze

    Source: US State of California

    Friday, January 31, 2025

    Contact: (916) 210-6000, agpressoffice@doj.ca.gov

    OAKLAND – California Attorney General Rob Bonta today issued the following statement on the U.S. District Court for the District of Rhode Island’s decision granting a temporary restraining order to prevent a pause on critical federal assistance funding from going into effect:

    “Today’s court order ensures our communities are able to continue to access necessary federal funding for disaster recovery, including for California’s wildfire recovery efforts; education; public health and safety; and infrastructure projects. While the OMB directive was rescinded, the Administration has made clear that it intends to proceed with its plans to freeze federal funding – that’s why we went to court to get this emergency pause. 

    The Trump Administration is intentionally creating chaos through its public actions and statements, attempting to sow fear and confusion in our communities. We will not fall for this bait and switch. California has too much at stake. 

    I am grateful for the court’s decision, and I will continue fighting to ensure that the President’s disastrous federal funding freeze never sees the light of day.” 

    Attorney General Bonta co-led a multistate coalition in filing a lawsuit seeking to block the federal funding freeze on Tuesday.

    Today’s decision institutes a temporary restraining order while the states seek a preliminary injunction. While the order is in effect, the Trump Administration may not pause, freeze, impede, block, cancel, or terminate its awards or obligations to provide federal financial assistance unless specifically allowed under the law. The order also blocks the Trump Administration from reissuing, adopting, implementing, or otherwise giving effect to the OMB directive under any other name or title, such as the continued implementation identified by the White House Press Secretary’s statement on January 29, 2025. 

    The Trump Administration is required to give written notice of this order to all agencies and their employees, contractors, and grantees by Monday, February 3, 2025, at 9 a.m. ET. 

    This order extends beyond the administrative stay granted by the U.S. District Court for the District of Columbia in response to a lawsuit brought by nonprofit groups that receive federal funds. 

    A copy of the decision is available here.

    # # #

    MIL OSI USA News –

  • MIL-OSI Security: Former Senior Adviser for the Federal Reserve Indicted on Charges of Economic Espionage

    Source: United States Attorneys General

    John Harold Rogers, 63, of Vienna, Virginia, a former Senior Adviser for the Federal Reserve Board of Governors (FRB), was arrested today on charges that he conspired to steal Federal Reserve trade secrets for the benefit of the People’s Republic of China (PRC).

    In furtherance of the conspiracy, allegedly made false statements to the Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau (FRB-OIG), and those false statements had a material impact on its investigation.

    “As alleged, the defendant violated the trust placed in him by the Federal Reserve Bank by putting U.S. trade secrets in the hands of his PRC co-conspirators, knowing full well that such information would benefit the PRC Government and PRC instrumentalities,” said Devin DeBacker, head of the Justice Department’s National Security Division. “The Justice Department will continue to use all the tools at its disposal to disrupt economic espionage and protect our national security.”

    “President Trump tasks us with protecting our fellow Americans from all enemies, foreign and domestic. As alleged in the indictment, this defendant leveraged his position within the Federal Reserve to pass sensitive financial information to the Chinese government, a designated adversary,” said U.S. Attorney Edward R. Martin Jr. for the District of Columbia. “Let this indictment serve as a warning to all who seek to betray or exploit the United States: law enforcement will find you and hold you accountable.”

    “As alleged in the indictment, Rogers betrayed his country while employed at the Federal Reserve by providing restricted U.S. financial and economic information to Chinese government intelligence officers,” said Assistant Director Kevin Vorndran of the FBI Counterintelligence Division. “This information could allow adversaries to illegally gain a strategic economic advantage at the expense of the U.S. This indictment sends a clear message that the FBI and our partners will hold accountable those who threaten our national security.”

    “The Chinese Communist Party has expanded its economic espionage campaign to target U.S. government financial policies and trade secrets in an effort to undermine the United States and become the sole superpower,” said Assistant Director in Charge David Sundberg of the FBI Washington Field Office. “Today’s indictment represents the FBI’s unwavering commitment to protect U.S. national security interests and U.S. jobs and bring to justice those who are willing to betray their country for personal gain.”

    “This indictment sends a clear message that those who deliberately misuse sensitive Federal Reserve information for their own personal gain and lie about it to investigators will be held accountable for their actions,” said Special Agent in Charge John T. Perez of the FRB-OIG, Headquarters Operations.

    According to the indictment, Rogers, a U.S. citizen with a Ph.D. in economics, worked as a Senior Adviser in FRB’s Division of International Finance of the FRB from 2010 until 2021, where he was entrusted with confidential FRB information. The confidential information that Rogers allegedly shared with his Chinese co-conspirators, who worked for the intelligence and security apparatus of China and who posed as graduate students at a PRC university, is economically valuable when secret.

    China holds a large amount of U.S. foreign debt (approximately $816 billion as of October 2024). The data Rogers shared with his co-conspirators could allow China to manipulate the U.S. market, in a manner similar to insider trading. Gaining advance knowledge of U.S. economic policy, including advance knowledge of changes to the federal funds rate, could provide China with an advantage when selling or buying U.S. bonds or securities.

    The indictment alleges that, from at least 2018, Rogers allegedly exploited his employment with the FRB by soliciting trade-secret information regarding proprietary economic data sets, deliberations about tariffs targeting China, briefing books for designated governors, and sensitive information about Federal Open Market Committee (FOMC) deliberations and forthcoming announcements. He passed that information electronically to his personal email account, in violation of FRB policy, or printed it prior to traveling to China, in preparation for meetings with his co-conspirators.

    Under the guise of teaching “classes,” Rogers met with his co-conspirators in hotel rooms in China where he conveyed sensitive, trade-secret information that belonged to the FRB and the FOMC. In 2023, Rogers was paid approximately $450,000 as a part-time professor at a Chinese university.

    On Feb. 4, 2020, in response to questioning by the FRB-OIG, Rogers lied about his accessing and passage of sensitive information and his associations with his co-conspirators.

    Rogers is charged with conspiracy to commit economic espionage and with making false statements.

    The FBI Washington Field Office and FRB-OIG are investigating the case.

    Assistant U.S. Attorney Kimberly Paschall for the District of Columbia and Trial Attorneys Nicholas Hunter and Steve Marzen of the National Security Division’s Counterintelligence and Export Section are prosecuting the case.

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

    MIL Security OSI –

  • MIL-OSI Security: U.S. Attorney’s Office Collects Over $12.9M in Civil and Criminal Actions in Fiscal Year 2024

    Source: Office of United States Attorneys

    SALT LAKE CITY, Utah – U.S. Attorney Trina A. Higgins announced today that the District of Utah collected $12,954,017.21 in criminal and civil actions in Fiscal Year 2024. Of this amount, $8,385,272.13 was collected in criminal actions and $4,568,745.08 was collected in civil actions.  

    Additionally, the District of Utah worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $2,978,609.99 in cases pursued jointly by these offices. Of this amount, $12,350.00 was collected in criminal actions and $2,966,259.99 was collected in civil actions.

    For example:   
    •    A Washington County man paid the remaining balance of $2,139,926.35 in restitution in FY2024 after he was ordered by the court in 2022 to pay $3.2 million dollars. The defendant was sentenced to 33 months’ imprisonment after he failed to file financial reports with the United States Treasury after bringing currency in excess of $10,000 back into the United States from China. See press release: Washington Man Sentenced to 33 Months in Prison and Ordered to Pay $3.2 Million Dollars for Kickback Scheme

    •    In July 2024, A Utah businessman was sentenced to imprisonment and ordered by the court to pay $10,250,834.53 in restitution after he admitted to defrauding hundreds of trusting investors throughout the United States out of millions of dollars in his smartphone company, SAYGUS. See press release: Smartphone Fraudster Sentenced to 29 Months’ Imprisonment After Cheating Investors Out of $10M

    The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.

    Additionally, the U.S. Attorney’s Office in the District of Utah, working with partner agencies and divisions, collected $4,625,653 in asset forfeiture actions in FY 2024. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.

    MIL Security OSI –

  • MIL-OSI USA: Governor Polis Releases Statement on Court Decision to Halt Federal Funding Freeze

    Source: US State of Colorado

    DENVER – Governor Polis released the following statement on the multi-state lawsuit filed against President Trump’s funding freeze and the court’s decision to issue a temporary restraining order to halt the freeze. 

    “This is an important step in protecting critical federal funding that supports Colorado’s people, businesses and communities across the state. We are committed to delivering real results and improving affordability and quality of life for the people we serve, and this chaotic federal freeze would have devastating impacts. It’s disappointing to see the Trump administration interfere with Congressionally appropriated dollars that are already committed to projects and that support people across Colorado and the United States. We are glad that the freeze on these dollars is temporarily blocked so that we will be available to continue to support these important programs and projects while the lawsuit moves forward and continue providing essential services to Coloradans. We appreciate the court’s action and we look forward to continuing to pursue this in the hearing,” said Governor Jared Polis. 

    Click here to view the full order. 

    ###

    MIL OSI USA News –

  • MIL-OSI USA: Investing in Developmental Disability Service Providers

    Source: US State of New York

    Governor Kathy Hochul today announced nearly $850 million dollars in updated reimbursement rates for non-profit residential and day service providers licensed by the New York State Office for People With Developmental Disabilities. The FY 2025 Enacted Budget, combined with additional federal funding, provided for more than $400 million in new resources to be allocated each year for OPWDD’s service providers. Governor Hochul’s FY 2026 Executive Budget continues this investment and will help to fill critical gaps in this workforce while creating new job opportunities. This investment will enable providers to raise wages for their dedicated staff, ultimately making New York a more affordable place to live and work. Our provider industry has faced challenges, and this bold initiative by Governor Hochul demonstrates a commitment to supporting this sector, its hardworking people and the communities they serve.

    “New York’s service providers are providing a critical service to people with developmental disabilities and their families, and they deserve to be paid a fair rate for the services they deliver,” Governor Hochul said. “This rate adjustment is expected to enable a majority of service providers to increase pay to their frontline staff, which would make living in New York more affordable for one of our hardest working, most dedicated and compassionate workforces.”

    Rate rebasing is a federally required process where provider reimbursement rates are updated to reflect changes in the actual cost of delivering services. These resources will enable provider agencies to offer higher wages for direct care staff, helping to address staffing vacancies and reduce turnover, which are critical to improving the quality of care for people with disabilities. Additionally, the funding will support other essential costs associated with delivering these vital services.

    Since 2022, the State has made more than $2.8 billion available to OPWDD providers to support investments in the workforce – about $1.4 billion in one-time federally-approved bonuses, nearly $1.1 billion through three consecutive Cost of Living Adjustments (COLAs), including the 2.84 percent COLA included in last year’s budget, and over $340 million through various State-funded bonus initiatives. Cumulatively, more than $3.7 billion will have been made available to OPWDD’s network of non-profit providers, when including the new resources from this unprecedented investment in rates.

    Office of the Chief Disability Officer Kim Hill Ridley said, “This investment is a key part of strengthening the disabilities service system and prioritizing wage increases for our direct support workforce who assist New Yorkers with disabilities in their daily lives. Thank you to Governor Hochul for this resource that helps providers to remain competitive while providing the very best support and services.”

    Office for People With Developmental Disabilities (OPWDD) Acting Commissioner Willow Baer said, “OPWDD is pleased to be able to release these significant rate adjustments that will help our service providers continue to maintain critical support and recruit and retain talented and qualified frontline staff. I am proud of this important investment and am excited to see this funding passed along to address long-standing concerns and strengthen this vital workforce.”

    State Senator Patricia Fahy said, “Investing in our caregivers and direct support workforce that provide critical services and care for New Yorkers living with disabilities is how we address vacancies, retention, and ensure continuation of that care. This funding will allow providers to offer more competitive wages and address staffing challenges, ultimately leading to improved care for New Yorkers living with disabilities and their families. I thank Governor Hochul and Commissioner Baer for recognizing the importance of investing in our frontline workforce, and I look forward to working with my colleagues to further invest in our direct support professional workforce.”

    Assemblymember Angelo Santabarbara said, “Direct Support Professionals are the backbone of our care system, providing critical support that allows individuals with developmental disabilities to live with dignity and independence. This investment is a significant step in strengthening disability services, ensuring providers can offer more competitive wages to recruit and retain the dedicated professionals who make a real difference in people’s lives. It helps address workforce shortages and reinforces our commitment to a strong and sustainable care system. I appreciate Governor Hochul’s recognition of this need and commitment to supporting New York’s disability service providers. As the father of a son with a disability, this is an issue I am deeply passionate about, and I remain focused on advancing policies that strengthen these services, ensuring individuals with disabilities and their families have access to the care and support they deserve.”

    NY Alliance for Inclusion and Innovation President and CEO Michael Seereiter said, “The NY Alliance and its 135 not-for-profit provider members are extremely grateful to Governor Kathy Hochul and OPWDD Acting Commissioner Willow Baer for this unprecedented investment that will significantly enhance our ability to support the 130,000+ New Yorkers living with intellectual and developmental disabilities (I/DD) and their families who are supported by OPWDD. These resources will give our residential and day services providers the ability to attract and engage direct support, frontline supervisor, and other critical staff positions necessary for providing high quality supports, and address other essential costs associated with these services.”

    ARC NY CEO Erik Geizer said, “New York state has made a meaningful and much-needed investment in people with intellectual and developmental disabilities. Years of insufficient investment has driven a crisis in our system that has diminished the quality and availability of essential supports and services. We applaud Governor Hochul and OPWDD for collaborating with providers to better align investment with the current cost of delivering services. These additional resources will help providers better meet the needs of the people we support. We look forward to continuing to work with the state to ensure we honor our commitment to provide high quality, compassionate care for our citizens with special needs.”

    CP State CEO and President Mike Alvaro said, “We applaud New York State and the Office for People With Developmental Disabilities (OPWDD) for updating provider rates, marking an important investment in services for people with disabilities. We also appreciate Governor Kathy Hochul and Acting Commissioner Willow Baer for their commitment and efforts to bolster the developmental disability system. This support helps providers strengthen their workforce, meet rising costs, and—most importantly—ensure a high-quality network of care is available statewide for individuals with intellectual and developmental disabilities.”

    Winifred Schiff Inter Agency Council CEO said, “We applaud Governor Hochul and Acting Commissioner Willow Baer for their support of the developmental disabilities service sector, their recognition that the cost of providing services has steadily grown while rates lagged far behind, and their appreciation that our front-line staff provide essential, life supporting and affirming services that make life possible for so many New Yorkers. While our work is not done, the recent rate adjustment will go a long way towards compensating for years of stagnant rates and some of the losses experienced by providers during the COVID pandemic, and we trust that Governor Hochul will continue to stand with us so that together, we can achieve adequate wages for our front line work force, and our sector will continue to support New Yorkers with developmental disabilities and their families, far into the future.”

    DDAWNY President Mindy Cervoni said, “The Developmental Disabilities Alliance of Western New York (DDAWNY) is deeply grateful to Governor Hochul for her unwavering commitment to New York’s non-profit service providers supporting individuals with developmental disabilities. This transformative funding empowers providers to continue to deliver high-quality services while offering more competitive wages to direct support professionals – the compassionate and skilled individuals who deliver hands-on care and vital support to people with developmental disabilities. By recognizing the invaluable work of these professionals and ensuring they are compensated fairly, this investment strengthens workforce stability and significantly enhances the quality of life for the individuals and families who depend on their care.”

    MIL OSI USA News –

  • MIL-OSI Security: U.S. Attorney, U.S. Secret Service, and FBI Announce Federal Charges Against Albuquerque Man for Making Threats Against President Trump

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

    ALBUQUERQUE – A federal grand jury has indicted an Albuquerque man for interstate communications containing a threat against then President Donald J. Trump.

    The criminal complaint alleges that Tyler Miles Leveque, 37, made multiple threatening social media posts between January 2 and 4, 2025, expressing intent to harm the President-Elect and others at an upcoming rally. The posts included statements such as “you and your rich friends are dead no threat a promise” and references to violence at an event reportedly planned for January 19th in Washington D.C.

    During an interview with agents from the U.S. Secret Service and the Federal Bureau of Investigation on January 6, 2025, Leveque admitted to making the threatening posts and recently purchasing a firearm. Investigators confirmed Leveque had recently bought a gun from a local business.

    Leveque will remain in custody pending trial, which has not been scheduled. If convicted, Leveque faces up to five years in prison.

    U.S. Attorney Alexander M.M. Uballez, Ron Emmot, Resident Agent in Charge of the U.S. Secret Service Albuquerque Resident Office, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, made the announcement today.

    The U.S. Secret Service investigated this case with the assistance of the FBI Albuquerque Field Office and the Albuquerque Police Department. Assistant U.S. Attorney Sammy Hurtado is prosecuting the case.

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

    # # #

    MIL Security OSI –

  • MIL-OSI Security: Big Island Lake Cree Territory — Pierceland RCMP seek public assistance locating missing 13-year-old male

    Source: Royal Canadian Mounted Police

    On January, 31, 2025 RCMP received a report of a missing 13-year-old male, Dwight Sandfly.

    Dwight Sandfly was last seen on January 24, 2025 at approximately 2:00 p.m on Big Island Cree Territory.

    Since he was reported missing, Pierceland RCMP have been checking places Dwight Sandfly is known to visit and following up on information received. They are now asking members of the public to report information on Dwight’s whereabouts.

    Dwight Sandfly is described as:

    • Height: 5’9″
    • Weight: 143 lbs
    • Eye colour: Brown
    • Hair colour and style: long curly black hair

    Dwight Sandfly may have travelled to the Onion Lake area, but his current whereabouts are unknown. If you have seen Dwight Sandfly or know where he is, contact Pierceland RCMP at 310-RCMP. Information can also be submitted anonymously by contacting Saskatchewan Crime Stoppers at 1-800-222-TIPS (8477) or www.saskcrimestoppers.com.

    MIL Security OSI –

  • MIL-OSI Security: New Orleans Man Guilty of Being a Felon in Possession of a Firearm

    Source: Office of United States Attorneys

    NEW ORLEANS, LOUISIANA –LaMICHAEL JACKSON (“JACKSON”), age 26, pled guilty on January 30, 2025 before U.S. District Judge Eldon E. Fallon to being a felon in possession of a firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(8).

    According to court documents, New Orleans Police Department (NOPD) officers on patrol in Hollygrove saw JACKSON holding a Palmetto State Armory Model PA-15 pistol.  JACKSON fled in a vehicle before being stopped by NOPD.  Inside the vehicle officers recovered a second gun belonging to JACKSON, a Glock Model 43x, nine-millimeter handgun.  Both firearms were loaded when  recovered.  JACKSON is prohibited from possessing a firearm due to prior felony convictions for aggravated assault with a firearm and possession of a firearm with an obliterated serial number.

    JACKSON faces up to 15 years in prison, up to three years of supervised release, up to a $250,000 fine, and a mandatory special assessment fee of $100.

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

    The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the New Orleans Police Department.  It is being prosecuted by Assistant United States Attorney David Berman of the Violent Crime Unit.

    MIL Security OSI –

  • MIL-OSI Security: Venezuelan Man Charged With Conspiracy To Distribute Methamphetamine, Possession Of A Firearm In Furtherance of Drug Trafficking Crime

    Source: Office of United States Attorneys

    DENVER – The United States Attorney’s Office for the District of Colorado announces that Jose Manuel Guerra-Caballero, 37, of Venezuela, was charged with one count of conspiracy to distribute more than 500 grams of a substance containing methamphetamine, and one count of possession of a firearm in furtherance of a drug trafficking crime.

    According to the complaint, Guerra-Caballero, described by a co-conspirator as a member of the Tren de Aragua criminal organization, conspired with six other individuals to provide armed protection for a drug transaction involving ten pounds of methamphetamine. Guerra-Caballero arranged the protection remotely and confirmed over the phone that his co-conspirators were armed and ready to serve in the operation.

    The drug deal was a ruse created by undercover ATF agents after Guerra-Caballero and his associates had offered their services for various illegal and violent activities. The undercover operation came on the heels of multiple purchases of firearms by ATF undercover officers that Guerra-Caballero believed would be trafficked to Mexico.

    The defendant was arrested in Indiana and made his initial appearance in front of Judge Colin H. Lindsay in the Western District of Kentucky.

    The Bureau of Alcohol, Tobacco, Firearms and Explosives, and Homeland Security Investigations are handling the investigation.  The prosecution is being handled by the Violent Crimes and Immigration Enforcement Section of the United States Attorney’s Office in the District of Colorado.

    Case Number: 25-mj-17

    MIL Security OSI –

  • MIL-OSI Security: DENHAM SPRINGS MAN SENTENCED TO 78 MONTHS IN FEDERAL PRISON FOR DISTRIBUTION OF CHILD PORNOGRAPHY

    Source: Office of United States Attorneys

    United States Attorney Ronald C. Gathe, Jr. announced that U.S. District Judge Judge Brian A. Jackson sentenced Barry Paul Vining, age 57, of Denham Springs, Louisiana, to 78 months in federal prison following his conviction for distribution of child pornography. Vining must serve five years of supervised release upon completing his term of imprisonment. The Court also ordered Vining to pay $357,000 in restitution and ordered him to register as a sex offender upon his release.

    According to admissions made as part of his guilty plea, on November 27, 2022, Vining knowingly distributed the two images of child pornography when he uploaded them to a file sharing service accessed via the internet, and that allowed other users of the service around the world to download and share the images. In addition, at the time Vining distributed the child pornography, he possessed files that contained numerous images and videos of child pornography.

    This matter was investigated by the U.S. Department of Homeland Security – Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Paul L. Pugliese.

    This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and 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 http://www.justice.gov/psc.

    MIL Security OSI –

  • MIL-OSI Security: Oklahoma City Man Sentenced to Serve More Than Three Years in Federal Prison for Illegal Possession of Machinegun Conversion Devices

    Source: Office of United States Attorneys

    OKLAHOMA CITY – JOHN ANTHONY OWEN, 24, of Oklahoma City, has been sentenced to serve 46 months in federal prison for unlawful possession of machineguns, announced U.S. Attorney Robert J. Troester.

    On June 3, 2024, Owen was charged by Information with unlawful possession of machineguns. According to public record, on April 4, 2024, officers with the Oklahoma City Police Department executed a search warrant at Owen’s residence. During the search, officers recovered two firearms which had been modified with machinegun conversion devices (MCDs). When installed, MCDs convert semi-automatic weapons into fully automatic machineguns. Possession of these devices violates federal law.

    On July 3, 2024, Owen pleaded guilty and admitted he knowingly possessed two MCDs.

    At the sentencing hearing on January 30, 2025, U.S. District Judge Jodi W. Dishman sentenced Owen to serve 46 months in federal prison, followed by three years of supervised release. In announcing the sentence, the Court noted the nature and circumstances of the offense.

    This case is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Oklahoma City Police Department. Assistant U.S. Attorney Stephen Hoch prosecuted the case.

    This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. This case is also part of “Project Switch Off,” the Western District of Oklahoma’s local implementation of PSN. “Project Switch Off” targets illegal machinegun conversion devices to address the significant danger these illegal devices present and to remove them from our streets. For more information about PSN, please visit https://justice.gov/psn and https://justice.gov/usao-wdok.

    Reference is made to public filings for additional information.

    MIL Security OSI –

  • MIL-OSI Security: Utah and California Businessmen Indicted for Defrauding Millions of Dollars from Investors

    Source: Office of United States Attorneys

    ST. GEORGE, Utah – An indictment was unsealed today after a fraudster was arrested following a federal grand jury’s return of an indictment this week charging him and his business partner with multiple financial crimes.

    According to court documents, Thomas Paul Madden, 66, of Washington City, Utah; and Jeremy Tyler Grabow, 54, of Ladera Ranch, California, engaged in a scheme from September 2017 to the present, to defraud investors in Cascade IR, LLC and Savitar Systems LLC. Using his entity, Cascade, Madden lied to investors about his ability and intent to sell them penny stocks, repeatedly using investors’ money for Ponzi payments and personal expenses. This part of the scheme resulted in Madden taking in over $23 million from over 200 investors.

    Beginning in 2021, Madden and Madden and Grabow used their entity Savitar, to further defraud investors. They told investors that Savitar was working with various partners on a large casino and resort project in Mexico that would generate high returns on investments. But Savitar did not have the represented business partnership and lacked any legitimate business operations. Instead, Madden and Grabow diverted investors’ money to the Ponzi scheme. The Savitar scheme resulted in Madden and Grabow obtaining over $2 million from at least 10 investors.

    Madden is charged with four counts of wire fraud. Madden and Grabow are both charged with wire fraud conspiracy and money laundering conspiracy. Madden’s initial appearance on the indictment is February 3, 2025, at 10:00 a.m. before a U.S. Magistrate Judge in St. George. Grabow’s initial appearance is scheduled for February 24, 2025, at 10:00 a.m. before a U.S. Magistrate Judge in St. George.

    United States Attorney Trina A. Higgins for the District of Utah made the announcement.

    The case is being investigated jointly by the Utah Division of Securities and the FBI Salt Lake City Field Office.

    Assistant United States Attorneys Stephen P. Dent and Joseph M. Hood of the U.S. Attorney’s Office for the District of Utah are prosecuting the case.

    If you think you are a victim in this case, information can be found on the U.S. Attorney’s Office Victim Witness Assistance page.

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

    MIL Security OSI –

  • MIL-OSI Security: Assault on Woman Sends Browning Man to Prison for More Than Three Years

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

    GREAT FALLS — A Browning man who admitted to beating and then using a belt to assault a woman on the Blackfeet Indian Reservation was sentenced today to three years and two months in prison, to be followed by three years of supervised release, U.S. Attorney Jesse Laslovich said.

    The defendant, Briar Joseph Crawford, 29, pleaded guilty in September 2024 to assault with a dangerous weapon.

    Chief U.S District Judge Brian M. Morris presided.

    The government alleged in court documents that on Aug. 6, 2023, Crawford went to Glacier National Park go fishing with the victim, identified as Jane Doe. After consuming alcohol, Crawford and Doe argued, and the conflict escalated to Crawford assaulting Doe over several hours. At one point, Crawford removed his belt, wrapped it around Doe’s neck, grabbed it and lifted her weight off the ground until she blacked out. Doe suffered numerous injuries from the prolonged assault.

    The U.S. Attorney’s Office prosecuted the case. The FBI and Blackfeet Law Enforcement Services conducted the investigation.

    XXX

    MIL Security OSI –

  • MIL-OSI Security: Eleven Members of Deadly Drug Trafficking Organization Sentenced to Prison

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

    NORFOLK, Va. – Eleven Virginia residents have been sentenced to prison for their roles in a violent drug trafficking organization that was responsible for a double homicide in Chesapeake. A twelfth defendant is awaiting sentencing.

    According to court records and evidence presented at trial, between January 2020 and November 2022, Cortney Allen Conley, aka KO, 36, of Virginia Beach, ran a large-scale, violent interstate drug trafficking organization principally based in the Hampton Roads area. The organization frequently sold drugs at “pop-up” shops, which regularly appeared in new locations to avoid detection by law enforcement.

    In 2021, Conley was robbed at gunpoint at a pop-up on Providence Road in Chesapeake, after which Conley and his co-conspirators were regularly armed while they trafficked drugs. In July 2021, an armed robber attempted to rob a pop-up, and shop workers, including Javaid Akhtar Reed, 27, of Chesapeake, and Aaron Butler Hunter, 38, of Virginia Beach, defended Conley’s drugs and drug proceeds. During the attempted robbery, Reed ordered the attempted robber out of the shop at gunpoint.

    On May 13, 2022, two armed subjects attempted to rob the organization’s pop-up on Wintercress Way in Chesapeake. Conley and Rashaun Marcquez Johnson, 28, of Virginia Beach, shot and killed the two subjects. During the gun battle, Davian Marcelis Jenkins, 27, of Suffolk, pistol-whipped one of the subjects as the subject lay dying in the foyer. During the shootout, bullets flew across the hall into another apartment and hit a child’s play kitchen. Immediately afterward, Conley and Jenkins removed controlled substances, drug proceeds, and firearms from the pop-up and fled. Conley directed Jenkins to go back to the shooting scene and remove security cameras, which had recorded the shootout. Jenkins removed one camera from the front door of the apartment. Conley then fled the state.

    On Nov. 8, 2022, Conley was arrested in Virginia Beach at a pop-up he established after the double homicide. During the arrest, Conley jumped from a second story window and tried to run from the police.

    On April 15, 2024, after a ten day jury trial, Conley, Reed, and Kyron Speller, 29, of Norfolk, were convicted for their involvement in the organization.

    Conley was convicted of continuing criminal enterprise; possession with intent to distribute marijuana; possession with intent to distribute psilocybin and psilocyn; possessing, brandishing, and discharging a firearm in furtherance of a drug trafficking crime. Conley was sentenced today to 40 years in prison.

    Other members of the organization who were sentenced include:

    Name

    Date of Sentencing

    Sentence Imposed
    Javaid Akhtar Reed

    Dec. 23, 2024

    		 14 years, 3 months
    Corey Melic Blackwell

    July 12, 2024

    		 13 years
    Aaron Hunter

    Sept. 26, 2024

    		 10 years
    Kasheim Bryant

    Oct. 31, 2024

    		 7 years
    Amadeo Ilan Classen

    Nov. 7, 2024

    		 10 years
    Davian Marcelis Jenkins

    Nov. 7, 2024

    		 4 years
    Jeron D’Nell Cephus

    July 22, 2024

    		 3 years, 6 months
    Kyron Speller

    Oct. 25, 2024

    		 3 years, 5 months
    Lateya Conley

    Sept. 25, 2024

    		 3 years
    Jasmine Deneen Cuffee

    Oct. 31, 2024

    		 1 year, 3 months

    Johnson is scheduled to be sentenced on Feb. 21, 2025.

    Erik S. Siebert, U.S. Attorney for the Eastern District of Virginia; Michael Feinberg, Acting Special Agent in Charge of the FBI’s Norfolk Field Office; Damon E. Wood, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; Mark G. Solesky, Chief of Chesapeake Police; and Paul Neudigate, Chief of Virginia Beach Police, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen.

    Assistant U.S. Attorneys Megan M. Montoya, Joe DePadilla, and Luke Bresnahan prosecuted the case.

    A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:22-cr-147.

    MIL Security OSI –

  • MIL-OSI: Westhaven Gold Announces Management Changes

    Source: GlobeNewswire (MIL-OSI)

    VANCOUVER, British Columbia, Jan. 31, 2025 (GLOBE NEWSWIRE) — Westhaven Gold Corp. (TSX-V:WHN) announces the formal departure, by mutual agreement, of Mr. Shaun J. Pollard from the Company effective January 31, 2025.

    Separately, Ms. Janice Davies has resigned as Corporate Secretary. Ms. Zara Boldt, CPA, CGA, who was appointed as interim CFO in September, will now serve in the combined role of CFO and Corporate Secretary.

    Mr. Pollard was one of Westhaven’s founders in 2010. He played a significant role in advancing Westhaven from a capital pool company to a premier, British Columbia based, gold-focused exploration company.

    The Board of Directors wishes to thank Mr. Pollard for his contributions to Westhaven’s success over the last 14 years and Ms. Davies for her service since 2019. 

    On behalf of the Board of Directors
    WESTHAVEN GOLD CORP.

    “Gareth Thomas”

    Gareth Thomas, President, CEO & Director is responsible for this announcement
    Telephone number: 604-681-5558 ext. 102

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

    About Westhaven Gold Corp.

    Westhaven is a gold-focused exploration company advancing the high-grade discovery on the Shovelnose project in Canada’s newest gold district, the Spences Bridge Gold Belt. Westhaven controls ~61,512 hectares (~615 square kilometres) with four gold properties spread along this underexplored belt. The Shovelnose property is situated off a major highway, near power, rail, large producing mines, and within commuting distance from the city of Merritt, which translates into low-cost exploration. Westhaven trades on the TSX Venture Exchange under the ticker symbol WHN. For further information, please call 604-681-5558 or visit Westhaven’s website at www.westhavengold.com

    The MIL Network –

  • MIL-OSI: Pathfinder Bancorp, Inc. Announces Financial Results for Fourth Quarter and Full Year 2024

    Source: GlobeNewswire (MIL-OSI)

    Fourth quarter results include EPS of $0.69, deposit growth, commercial loan growth, a gain on the sale of its insurance agency, and strong contributions from new and established
    Pathfinder Bank teams across Central New York

    OSWEGO, N.Y., Jan. 31, 2025 (GLOBE NEWSWIRE) — Pathfinder Bancorp, Inc. (“Pathfinder” or the “Company”) (NASDAQ: PBHC) announced its financial results for the fourth quarter and year ended December 31, 2024.

    The holding company for Pathfinder Bank (“the Bank”) earned net income attributable to common shareholders of $4.3 million or $0.69 per share in the fourth quarter of 2024, including a benefit of approximately $1.4 million from a gain on the previously announced sale of its insurance agency, net of taxes and transaction-related expenses.

    The Company reported a net loss of $4.6 million or $0.75 per share in the third quarter of 2024, reflecting $9.0 million in provision expense that primarily resulted from a comprehensive loan portfolio review the Bank elected to undertake as part of its ongoing commitment to continuously improve its credit risk management approach, and net income of $2.5 million or $0.41 per share in the fourth quarter of 2023. For the full year, the Company earned net income of $3.8 million or $0.60 per share in 2024 and $9.3 million or $1.51 per share in 2023.

    Fourth Quarter and Full Year 2024 Highlights and Key Developments

    • Provision expense was $988,000 in the fourth quarter of 2024, compared to $9.0 million in the linked quarter and $265,000 in the fourth quarter of 2023, while the allowance for credit losses (“ACL) increased to 1.88% of loans from 1.87% on September 30, 2024 and 1.78% on December 31, 2023.
    • Net interest income was $10.8 million, compared to the $11.7 million in the linked quarter that benefited from a $887,000 catch-up interest payment, and $9.2 million in the fourth quarter of 2023. Full-year net interest income was $41.4 million in 2024 and $38.9 million in 2023.
    • Net interest margin (“NIM”) was 3.15% in the fourth quarter of 2024, compared to the 3.34% in the third quarter that benefited by 25 basis points from the catch-up interest payment, and 2.74% in the year-ago period.
    • Non-interest income was $4.9 million, including a gross, pre-tax gain of $3.2 million on the October 2024 sale of the Company’s insurance agency, compared to $1.7 million in the linked quarter and $1.3 million in the year-ago period. Full-year non-interest income was $9.6 million in 2024 and $5.2 million in 2023.
    • Non-interest expense was $8.5 million with $155,000 in October 2024 insurance agency transaction-related costs, $10.3 million in the linked quarter with $1.6 million in July 2024 branch acquisition-related costs, and $7.0 million in the year-ago period. Full-year non-interest expense was $34.4 million in 2024 and $29.4 million in 2023.
    • Pre-tax, pre-provision (“PTPP”) net income grew to $3.8 million, compared to $3.4 million in the linked and year-ago periods. PTPP net income, which is not a financial metric under generally accepted accounting principles (“GAAP”), is a measure that the Company believes is helpful to understanding profitability without giving effect to income taxes and provision for credit losses. Full-year PTPP net income was $13.5 million in 2024 and $14.7 million in 2023.
    • Total deposits were $1.20 billion at period end, growing by $8.1 million or 2.7% annualized from September 30, 2024 and $84.3 million or 7.5% from December 31, 2023. The Bank’s loan-to-deposit ratio was 76.3% on December 31, 2024.
    • Total loans were $919.0 million at period end, compared to $921.7 million on September 30, 2024 and $897.2 million on December 31, 2023. Commercial loans were $539.7 million at period end, $534.5 million on September 30, 2024 and $524.2 million on December 31, 2023.

    “Pathfinder’s core net interest income growth and net interest margin expansion were key contributors to fourth quarter earnings, and are a product of disciplined asset and liability pricing, the Bank’s valuable core deposit franchise, and our relationship-based commercial and retail lending in Central New York,” said President and Chief Executive Officer James A. Dowd. “In addition, we continue to invest in talent to serve middle market businesses throughout the Syracuse area, building on our foundation in this community. The East Syracuse branch acquired last summer, and our operations throughout the area, made important contributions to Pathfinder’s performance in the fourth quarter, and we look forward to further enhancing the breadth and depth of our commercial and other customer relationships in this important growth market.”

    Dowd added, “We also intend to maintain a sharp focus on managing operating expenses, along with our ongoing efforts to continuously enhance the Company’s proactive credit risk management approach. While there may be short-term variability in measures of operating efficiency and asset quality, our leadership team is fully committed to taking the steps necessary to make sustainable improvements over the long term and continue building franchise value for the benefit of our shareholders.”

    Net Interest Income and Net Interest Margin
    Fourth quarter 2024 net interest income was $10.8 million, a decrease of 7.8% from the third quarter of 2024, or a decrease of 0.2% when excluding an $887,000 third quarter catch-up interest payment associated with purchased loan pool positions. A decrease in interest and dividend income of $1.7 million was primarily attributed to average yield decreases of 44 basis points on loans including 39 basis points from the catch-up interest payment, 108 basis points on tax-exempt investment securities, and 28 basis points on taxable investment securities. The corresponding decreases in income from loan interest, tax-exempt investment securities, and taxable investment securities were $902,000, $24,000, and $337,000, respectively. A decrease in interest expense of $761,000 was attributed to intentional reductions in the cost of time deposits and other interest-bearing deposits, as well as reductions in borrowings expense.

    Net interest margin was 3.15% in the fourth quarter of 2024, compared to 3.34% in the linked quarter. The decrease was due to the 25 basis points of linked quarter NIM attributed to the third quarter 2024 catch-up interest payment.

    Fourth quarter 2024 net interest income was $10.8 million, an increase of 18.1% from the fourth quarter of 2023. An increase in interest and dividend income of $1.2 million was primarily attributed to average yield increases of 33 basis points on loans, 4 basis points on taxable investment securities, and 404 basis points on fed funds sold and interest-earning deposits. The corresponding increase in loan interest income, taxable investment securities, and federal funds sold and interest-earning deposits was $1.1 million, $152,000, and $13,000, respectively. A decrease in interest expense of $463,000 was attributed to changes in the Bank’s deposit mix, repricing of deposits in a lower rate environment, and reductions in borrowings expense.

    Net interest margin was 3.15% in the fourth quarter of 2024 compared to 2.74% in the same period the year prior. The increase of 41 basis points was driven by reductions in borrowing and funding costs.

    Noninterest Income
    Noninterest income totaled $4.9 million in the fourth quarter of 2024, including the $3.2 million pre-tax gain on the insurance agency sale, which represents the gross amount that is required to be 100% consolidated within the Company’s financial statements, despite Pathfinder’s 51% interest in the business sold in October 2024. Noninterest income growth from the third quarter of 2024 was $3.2 million, or $30,000 when excluding the agency sale gain. Noninterest income growth from the fourth quarter of 2023 was $3.6 million, or $419,000 when excluding the agency sale gain.

    The insurance agency sold in October contributed $49,000 in revenue to noninterest income in the fourth quarter of 2024, $367,000 in the third quarter of 2024 and $303,000 in the fourth quarter of 2023.

    Compared to the linked quarter, fourth quarter 2024 noninterest income also included increases of $16,000 in loan servicing fees and $12,000 in service charges on deposit accounts, a decrease of $194,000 in earnings and gain on bank owned life insurance (“BOLI”) after recording a $175,000 third quarter net death benefit on BOLI, and a $36,000 decrease in debit card interchange fees. Noninterest income growth from the linked quarter also reflected an increase of $438,000 in net realized gains on sales and redemptions of investment securities and $104,000 in net realized gains on sales of marketable equity securities, as well as a decrease of $51,000 in gains on sales of loans and foreclosed real estate.

    Compared to the year-ago period, fourth quarter 2024 noninterest income also included increases of $103,000 in interchange fees, $68,000 in service charges on deposit accounts, $26,000 in loan servicing fees, and $3,000 in earnings and gain on BOLI. Noninterest income growth from the year-ago quarter also reflected increases of $248,000 increase in net realized losses on sales and redemptions of investment securities, $213,000 in net realized gains on sales of marketable equity securities, and $41,000 in gains on sales of loans and foreclosed real estate.

    Noninterest Expense
    Noninterest expense totaled $8.5 million in the fourth quarter of 2024, decreasing $1.7 million from the linked quarter and increasing $1.5 million from the year-ago period.

    Fourth quarter 2024 noninterest expense included $456,000 associated with the Company’s insurance agency sale in October 2024, including $155,000 in transaction-related items. The insurance agency incurred $308,000 of noninterest expense in the third quarter of 2024 and $216,000 in the fourth quarter of 2023.

    Third quarter 2024 noninterest expense included $1.6 million in transaction-related expenses for Pathfinder’s acquisition of the East Syracuse branch acquisition in July 2024.

    Salaries and benefits were $4.1 million in the fourth quarter of 2024, decreasing $839,000 from the linked quarter and increasing $446,000 from the year-ago period. The decrease from the linked quarter reflected elevated non-exempt-employee hours for projects related to the successful third quarter closing and integration of the East Syracuse branch acquisition, as well as some personnel vacancies that were open in the fourth quarter. The increase from the fourth quarter of 2023 was primarily attributed to increased headcount and lower salary deferrals than in the prior year period.

    Building and occupancy was $1.3 million in the fourth quarter of 2024, increasing $117,000 and $390,000 from the linked and year-ago quarters, respectively. These increases were due to ongoing facilities-related costs of approximately $322,000 associated with operating the branch acquired in July 2024.

    Professional and other services expense was $608,000 in the fourth quarter of 2024, decreasing $1.2 million from the linked quarter and increasing $120,000 from the year-ago period. The decrease from the third quarter of 2024 was primarily attributed to one-time costs associated with the East Syracuse branch acquisition. The increase from the fourth quarter of 2023 was primarily attributed to a $136,000 increase in technology project implementation services and other outsourced consulting services.

    Annualized noninterest expense, including transaction-related costs, represented 2.33% of average assets in the fourth quarter of 2024, compared to 2.75% and 2.01% in the linked and year-ago periods. The efficiency ratio, including transaction-related costs, was 69.42% in the fourth quarter of 2024, compared to 75.28% and 67.25% in the linked and year-ago periods. The efficiency ratio, which is not a financial metric under GAAP, is a measure that the Company believes is helpful to understanding its level of non-interest expense as a percentage of total revenue.

    Statement of Financial Condition
    As of December 31, 2024, the Company’s statement of financial condition reflects total assets of $1.47 billion, compared to $1.48 billion and $1.47 billion recorded on September 30, 2024 and December 31, 2023, respectively.

    Loans totaled $919.0 million on December 31, 2024, decreasing 0.3% during the fourth quarter and increasing 2.4% from one year prior. Consumer and residential loans totaled $380.9 million, decreasing 2.0% during the fourth quarter and increasing 1.9% from one year prior. Commercial loans totaled $539.7 million, increasing 1.0% during the fourth quarter and 3.0% from one year prior.

    With respect to liabilities, deposits totaled $1.20 billion on December 31, 2024, increasing 0.7% during the fourth quarter and 7.5% from one year prior. The Company also utilized its lower cost liquidity to reduce total borrowings, which were $88.1 million on December 31, 2024 as compared to $100.1 million on September 30, 2024 and $175.6 million on December 31, 2023.

    Shareholders’ equity totaled $121.9 million on December 31, 2024, increasing $1.6 million or 1.3% in the fourth quarter and increasing $2.4 million or 2.0% from one year prior. The fourth quarter 2024 increase primarily reflects a $4.5 million increase in retained earnings, partially offset by a $2.4 million increase in accumulated other comprehensive loss (“AOCL”) and a $481,000 decrease in additional paid in capital. The full-year 2024 increase in shareholders’ equity primarily reflects a $2.1 increase in retained earnings and a $461,000 decrease in AOCL, partially offset by a $364,000 decrease in additional paid in capital.  The noncontrolling interest included in equity on the Statements of Financial Condition was eliminated with the October 2024 sale of the 51% ownership interest in the Company’s insurance agency.

    Asset Quality
    Pathfinder’s asset quality metrics reflect ongoing efforts the Bank is undertaking as part of its commitment to continuously improve its credit risk management approach.

    Nonperforming loans were $22.1 million or 2.40% of total loans on December 31, 2024, $16.2 million or 1.75% of total loans on September 30, 2024 and $17.2 million or 1.92% of total loans on December 31, 2023.

    Net charge offs (“NCOs”) after recoveries were $1.0 million or an annualized 0.44% of average loans in the fourth quarter of 2024, with gross charge offs for consumer loans, purchased loan pools, and one commercial loan offsetting recoveries in each of these categories. NCOs were $8.7 million or an annualized 3.82% of average loans in the linked quarter, following the loan portfolio review completed in September, and $108,000 or 0.05% in the prior year period.

    Provision for credit loss expense was $988,000 in the fourth quarter of 2024, reflecting NCOs in the period and qualitative factors in the Company’s reserve model. Third quarter of 2024 provision was $9.0 million, primarily to replenish commercial loan reserves and adjust the lifetime loss estimate for solar purchased loan pool positions following the loan portfolio review completed in September. Fourth quarter 2023 provision was $265,000.

    The Company believes it is sufficiently collateralized and reserved, with an Allowance for Credit Losses (“ACL”) of $17.2 million on December 31, 2024, compared to $17.3 million on September 30, 2024 and $16.0 million on December 31, 2023. As a percentage of total loans, ACL represented 1.88% on December 31, 2024, 1.87% on September 30, 2024, and 1.78% on December 31, 2023.

    Liquidity
    The Company has diligently ensured a strong liquidity profile as of December 31, 2024 to meet its ongoing financial obligations. The Bank’s liquidity management, as evaluated by its cash reserves and operational cash flows from loan repayments and investment securities, remains robust and is effectively managed by the institution’s leadership.

    The Bank’s analysis indicates that expected cash inflows from loans and investment securities are more than sufficient to meet all projected financial obligations. Total deposits were $1.20 billion on December 31, 2024, $1.20 billion on September 30, 2024, and $1.12 billion on December 31, 2023. Core deposits represented 76.87% of total deposits on December 31, 2024, 77.45% on September 30, 2024, and 69.83% on December 31, 2023. The Bank’s continues to implement strategic initiatives to enhance its core deposit franchise, including targeted marketing campaigns and customer engagement programs aimed at deepening banking relationships and enhancing deposit stability.

    At the end of the current quarter, Pathfinder Bancorp had an available additional funding capacity of $113.8 million with the Federal Home Loan Bank of New York, which complements its liquidity reserves. Moreover, the Bank maintains additional unused credit lines totaling $43.3 million, which provide a buffer for additional funding needs. These facilities, including access to the Federal Reserve’s Discount Window, are part of a comprehensive liquidity strategy that ensures flexibility and readiness to respond to any funding requirements.

    Cash Dividend Declared
    On December 23, 2024, Pathfinder’s Board of Directors declared a cash dividend of $0.10 per share for holders of both voting common and non-voting common stock.

    In addition, this dividend also extends to the notional shares of the Company’s warrants. Shareholders registered by January 17, 2025 will be eligible for the dividend, which is scheduled for disbursement on February 7, 2025. This distribution aligns with Pathfinder Bancorp’s philosophy of consistent and reliable delivery of shareholder value.

    Evaluating the Company’s market performance, the closing stock price as of December 31, 2024 stood at $17.50 per share. This positions the dividend yield at an attractive 2.29%.

    About Pathfinder Bancorp, Inc.

    Pathfinder Bancorp, Inc. (NASDAQ: PBHC) is the commercial bank holding company for Pathfinder Bank, which serves Central New York customers throughout Oswego, Syracuse, and their neighboring communities. Strategically located branches averaging over $100 million in deposits per location, as well as diversified consumer, mortgage and commercial loan portfolios, reflect the state-chartered Bank’s commitment to in-market relationships and local customer service. The Company also offers investment services to individuals and businesses. At December 31, 2024, the Oswego-headquartered Company had assets of $1.47 billion, loans of $919.0 million, and deposits of $1.20 billion. More information is available at pathfinderbank.com and ir.pathfinderbank.com.

    Forward-Looking Statements
    Certain statements contained herein are “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. These forward-looking statements are generally identified by use of the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project” or similar expressions, or future or conditional verbs, such as “will,” “would,” “should,” “could,” or “may.” These forward-looking statements are based on current beliefs and expectations of the Company’s and the Bank’s management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the Company’s and the Bank’s control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. Factors that could cause such differences to exist include, but are not limited to: risks related to the real estate and economic environment, particularly in the market areas in which the Company and the Bank operate; fiscal and monetary policies of the U.S. Government; inflation; changes in government regulations affecting financial institutions, including regulatory compliance costs and capital requirements; fluctuations in the adequacy of the allowance for credit losses; decreases in deposit levels necessitating increased borrowing to fund loans and investments; operational risks including, but not limited to, cybersecurity, fraud and natural disasters; the risk that the Company may not be successful in the implementation of its business strategy; changes in prevailing interest rates; credit risk management; asset-liability management; and other risks described in the Company’s filings with the Securities and Exchange Commission, which are available at the SEC’s website, www.sec.gov.

    This release contains non-GAAP financial measures. For purposes of Regulation G, a non-GAAP financial measure is a numerical measure of a registrant’s historical or future financial performance, financial position, or cash flows that excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure calculated and presented in accordance with GAAP in the statement of income, balance sheet, or statement of cash flows (or equivalent statements) of the registrant; or includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure so calculated and presented. In this regard, GAAP refers to generally accepted accounting principles in the United States. Pursuant to the requirements of Regulation G, the Company has provided reconciliations within the release of the non-GAAP financial measures to the most directly comparable GAAP financial.

    Investor/Media Contacts
    James A. Dowd, President, CEO
    Justin K. Bigham, Senior Vice President, CFO
    Telephone: (315) 343-0057

    PATHFINDER BANCORP, INC.                              
    Selected Financial Information (Unaudited)                              
    (Amounts in thousands, except per share amounts)                              
                                   
        2024     2023  
    SELECTED BALANCE SHEET DATA:   December 31,     September 30,     June 30,     March 31,     December 31,  
    ASSETS:                              
    Cash and due from banks   $ 13,963     $ 18,923     $ 12,022     $ 13,565     $ 12,338  
    Interest-earning deposits     17,609       16,401       19,797       15,658       36,394  
    Total cash and cash equivalents     31,572       35,324       31,819       29,223       48,732  
    Available-for-sale securities, at fair value     269,331       271,977       274,977       279,012       258,716  
    Held-to-maturity securities, at amortized cost     158,683       161,385       166,271       172,648       179,286  
    Marketable equity securities, at fair value     4,076       3,872       3,793       3,342       3,206  
    Federal Home Loan Bank stock, at cost     4,590       5,401       8,702       7,031       8,748  
    Loans     918,986       921,660       888,263       891,531       897,207  
    Less: Allowance for credit losses     17,243       17,274       16,892       16,655       15,975  
    Loans receivable, net     901,743       904,386       871,371       874,876       881,232  
    Premises and equipment, net     19,009       18,989       18,878       18,332       18,441  
    Assets held-for-sale     –       –       3,042       3,042       3,042  
    Operating lease right-of-use assets     1,391       1,425       1,459       1,493       1,526  
    Finance lease right-of-use assets     16,676       16,873       4,004       4,038       4,073  
    Accrued interest receivable     6,881       6,806       7,076       7,170       7,286  
    Foreclosed real estate     –       –       60       82       151  
    Intangible assets, net     5,989       6,217       76       80       85  
    Goodwill     5,056       5,752       4,536       4,536       4,536  
    Bank owned life insurance     24,727       24,560       24,967       24,799       24,641  
    Other assets     25,150       20,159       25,180       23,968       22,097  
    Total assets   $ 1,474,874     $ 1,483,126     $ 1,446,211     $ 1,453,672     $ 1,465,798  
                                   
    LIABILITIES AND SHAREHOLDERS’ EQUITY:                              
    Deposits:                              
    Interest-bearing deposits   $ 990,674     $ 986,103     $ 932,132     $ 969,692     $ 949,898  
    Noninterest-bearing deposits     213,719       210,110       169,145       176,421       170,169  
    Total deposits     1,204,393       1,196,213       1,101,277       1,146,113       1,120,067  
    Short-term borrowings     61,000       60,315       127,577       91,577       125,680  
    Long-term borrowings     27,068       39,769       45,869       45,869       49,919  
    Subordinated debt     30,107       30,057       30,008       29,961       29,914  
    Accrued interest payable     234       236       2,092       1,963       2,245  
    Operating lease liabilities     1,591       1,621       1,652       1,682       1,711  
    Finance lease liabilities     16,745       16,829       4,359       4,370       4,381  
    Other liabilities     11,876       16,986       9,203       9,505       11,625  
    Total liabilities     1,353,014       1,362,026       1,322,037       1,331,040       1,345,542  
    Shareholders’ equity:                              
    Voting common stock shares issued and outstanding     4,742,841       4,719,788       4,719,788       4,719,788       4,719,288  
    Voting common stock     47       47       47       47       47  
    Non-Voting common stock     14       14       14       14       14  
    Additional paid in capital     52,750       53,231       53,182       53,151       53,114  
    Retained earnings     78,193       73,670       78,936       77,558       76,060  
    Accumulated other comprehensive loss     (9,144 )     (6,716 )     (8,786 )     (8,862 )     (9,605 )
    Unearned ESOP shares     –       –       (45 )     (90 )     (135 )
    Total Pathfinder Bancorp, Inc. shareholders’ equity     121,860       120,246       123,348       121,818       119,495  
    Noncontrolling interest     –       854       826       814       761  
    Total equity     121,860       121,100       124,174       122,632       120,256  
    Total liabilities and shareholders’ equity   $ 1,474,874     $ 1,483,126     $ 1,446,211     $ 1,453,672     $ 1,465,798  
                                             

    The above information is preliminary and based on the Company’s data available at the time of presentation.

        Years Ended December 31,     2024     2023  
    SELECTED INCOME STATEMENT DATA:   2024     2023     Q4     Q3     Q2     Q1     Q4  
    Interest and dividend income:                                          
    Loans, including fees   $ 52,705     $ 47,348     $ 13,523     $ 14,425     $ 12,489     $ 12,268     $ 12,429  
    Debt securities:                                          
    Taxable     22,319       17,500       5,312       5,664       5,736       5,607       5,092  
    Tax-exempt     1,920       1,947       445       469       498       508       506  
    Dividends     620       573       164       149       178       129       232  
    Federal funds sold and interest-earning deposits     793       295       82       492       121       98       69  
    Total interest and dividend income     78,357       67,663       19,526       21,199       19,022       18,610       18,328  
    Interest expense:                                          
    Interest on deposits     30,050       23,265       7,380       7,633       7,626       7,411       7,380  
    Interest on short-term borrowings     4,176       2,688       700       1,136       1,226       1,114       1,064  
    Interest on long-term borrowings     733       850       136       202       201       194       231  
    Interest on subordinated debt     1,966       1,941       490       496       489       491       494  
    Total interest expense     36,925       28,744       8,706       9,467       9,542       9,210       9,169  
    Net interest income     41,432       38,919       10,820       11,732       9,480       9,400       9,159  
    Provision for (benefit from) credit losses:                                          
    Loans     11,106       2,991       988       9,104       304       710       316  
    Held-to-maturity securities     (94 )     (98 )     (4 )     (31 )     (74 )     15       (74 )
    Unfunded commitments     (39 )     37       4       (104 )     60       1       23  
    Total provision for credit losses     10,973       2,930       988       8,969       290       726       265  
    Net interest income after provision for credit losses     30,459       35,989       9,832       2,763       9,190       8,674       8,894  
    Noninterest income:                                          
    Service charges on deposit accounts     1,436       1,249       405       392       330       309       336  
    Earnings and gain on bank owned life insurance     854       630       169       361       167       157       164  
    Loan servicing fees     375       307       96       79       112       88       69  
    Net realized (losses) gains on sales and redemptions of investment securities     (71 )     62       249       (188 )     16       (148 )     2  
    Gain on asset sale 1 & 2     3,169       –       3,169       –       –       –       –  
    Net realized gains (losses) on sales of marketable equity securities     197       (255 )     166       62       (139 )     108       (47 )
    Gains on sales of loans and foreclosed real estate     187       181       39       90       40       18       (2 )
    Loss on sale of premises and equipment     (13 )     –       –       (36 )     –       –       –  
    Debit card interchange fees     875       616       265       300       191       119       161  
    Insurance agency revenue 1     1,073       1,304       49       367       260       397       303  
    Other charges, commissions & fees     1,479       1,096       299       280       234       689       332  
    Total noninterest income     9,561       5,190       4,906       1,707       1,211       1,737       1,318  
    Noninterest expense:                                          
    Salaries and employee benefits     17,810       15,920       4,123       4,959       4,399       4,329       3,677  
    Building and occupancy     4,118       3,563       1,254       1,134       914       816       864  
    Data processing     2,471       2,018       721       672       550       528       499  
    Professional and other services     3,686       2,019       608       1,820       696       562       488  
    Advertising     604       671       218       165       116       105       155  
    FDIC assessments     916       885       231       228       228       229       222  
    Audits and exams     539       735       123       123       123       170       259  
    Insurance agency expense 1     1,281       1,033       456       308       232       285       216  
    Community service activities     130       200       19       20       39       52       49  
    Foreclosed real estate expenses     102       111       20       27       30       25       35  
    Other expenses     2,760       2,240       771       803       581       605       580  
    Total noninterest expense     34,417       29,395       8,544       10,259       7,908       7,706       7,044  
    Income (loss) before provision for income taxes     5,603       11,784       6,194       (5,789 )     2,493       2,705       3,168  
    Provision (benefit) for income taxes     398       2,362       558       (1,173 )     481       532       590  
    Net income (loss) attributable to noncontrolling interest and Pathfinder Bancorp, Inc.     5,205       9,422       5,636       (4,616 )     2,012       2,173       2,578  
    Net income attributable to noncontrolling interest 1     1,445       129       1,352       28       12       53       42  
    Net income (loss) attributable to Pathfinder Bancorp Inc.   $ 3,760     $ 9,293     $ 4,284     $ (4,644 )   $ 2,000     $ 2,120     $ 2,536  
    Voting Earnings per common share – basic and diluted   $ 0.60     $ 1.51     $ 0.69     $ (0.75 )   $ 0.32     $ 0.34     $ 0.41  
    Series A Non-Voting Earnings per common share- basic and diluted   $ 0.60     $ 1.51     $ 0.69     $ (0.75 )   $ 0.32     $ 0.34     $ 0.41  
    Dividends per common share (Voting and Series A Non-Voting)   $ 0.40     $ 0.36     $ 0.10     $ 0.10     $ 0.10     $ 0.10     $ 0.09  

    1 Although the Company owned 51% of its membership interest in FitzGibbons Agency, LLC (“Agency”) the Company is required to consolidate 100% of the Agency within the consolidated financial statements.
    2 The $3,169,000 consolidated gain on asset sale equals $1,616,000 associated with the Company’s 51% interest in the Agency plus $1,553,000 associated with the 49% noncontrolling interest.

    The above information is preliminary and based on the Company’s data available at the time of presentation.

        Years Ended December 31,     2024     2023  
    FINANCIAL HIGHLIGHTS:   2024     2023     Q4     Q3     Q2     Q1     Q4  
    Selected Ratios:                                          
    Return on average assets     0.26 %     0.67 %     1.17 %     -1.25 %     0.56 %     0.59 %     0.72 %
    Return on average common equity     3.06 %     8.09 %     14.09 %     -14.79 %     6.49 %     7.01 %     8.72 %
    Return on average equity     3.06 %     8.09 %     14.09 %     -14.79 %     6.49 %     7.01 %     8.72 %
    Return on average tangible common equity 1     3.23 %     8.43 %     15.54 %     -15.28 %     6.78 %     7.32 %     9.01 %
    Net interest margin     3.01 %     2.95 %     3.15 %     3.34 %     2.78 %     2.75 %     2.74 %
    Loans / deposits     76.30 %     80.10 %     76.30 %     77.05 %     80.66 %     77.79 %     80.10 %
    Core deposits/deposits 2     76.87 %     69.83 %     76.87 %     77.45 %     67.98 %     69.17 %     69.83 %
    Annualized non-interest expense / average assets     3.17 %     2.11 %     2.33 %     2.75 %     2.19 %     2.16 %     2.01 %
    Commercial real estate / risk-based capital 3     186.73 %     162.21 %     186.73 %     189.47 %     169.73 %     163.93 %     162.21 %
    Efficiency ratio 1     71.86 %     66.74 %     69.42 %     75.28 %     74.08 %     68.29 %     67.25 %
                                               
    Other Selected Data:                                          
    Average yield on loans     5.83 %     5.26 %     5.87 %     6.31 %     5.64 %     5.48 %     5.55 %
    Average cost of interest bearing deposits     3.08 %     2.45 %     2.94 %     3.11 %     3.21 %     3.07 %     3.10 %
    Average cost of total deposits, including non-interest bearing     2.59 %     2.07 %     2.44 %     2.59 %     2.72 %     2.61 %     2.63 %
    Deposits/branch 4   $ 100,366     $ 101,824     $ 100,366     $ 99,684     $ 100,116     $ 104,192     $ 101,824  
    Pre-tax, pre-provision net income 1   $ 13,478     $ 14,652     $ 3,764     $ 3,368     $ 2,767     $ 3,579     $ 3,431  
    Total revenue 1   $ 47,895     $ 44,047     $ 12,308     $ 13,627     $ 10,675     $ 11,285     $ 10,475  
                                               
    Share and Per Share Data:                                          
    Cash dividends per share   $ 0.40     $ 0.36     $ 0.10     $ 0.10     $ 0.10     $ 0.10     $ 0.09  
    Book value per common share   $ 19.90     $ 19.59     $ 19.90     $ 19.71     $ 20.22     $ 19.97     $ 19.59  
    Tangible book value per common share 1   $ 18.10     $ 18.83     $ 18.10     $ 17.75     $ 19.46     $ 19.21     $ 18.83  
    Basic and diluted weighted average shares outstanding – Voting     4,714       4,653       4,732       4,714       4,708       4,701       4,693  
    Basic and diluted earnings per share – Voting 5   $ 0.60     $ 1.51     $ 0.69     $ (0.75 )   $ 0.32     $ 0.34     $ 0.41  
    Basic and diluted weighted average shares outstanding – Series A Non-Voting     1,380       1,380       1,380       1,380       1,380       1,380       1,380  
    Basic and diluted earnings per share – Series A Non-Voting 5   $ 0.60     $ 1.51     $ 0.69     $ (0.75 )   $ 0.32     $ 0.34     $ 0.41  
    Common shares outstanding at period end     6,123       6,100       6,123       6,100       6,100       6,100       6,100  
                                               
    Pathfinder Bancorp, Inc. Capital Ratios:                                          
    Company tangible common equity to tangible assets 1     7.57 %     7.86 %     7.57 %     7.36 %     8.24 %     8.09 %     7.86 %
    Company Total Core Capital (to Risk-Weighted Assets)     15.70 %     16.17 %     15.70 %     15.55 %     16.19 %     16.23 %     16.17 %
    Company Tier 1 Capital (to Risk-Weighted Assets)     12.04 %     12.30 %     12.04 %     11.84 %     12.31 %     12.33 %     12.30 %
    Company Tier 1 Common Equity (to Risk-Weighted Assets)     11.55 %     11.81 %     11.55 %     11.33 %     11.83 %     11.85 %     11.81 %
    Company Tier 1 Capital (to Assets)     8.69 %     9.35 %     8.69 %     8.29 %     9.16 %     9.16 %     9.35 %
                                               
    Pathfinder Bank Capital Ratios:                                          
    Bank Total Core Capital (to Risk-Weighted Assets)     14.70 %     15.05 %     14.70 %     14.52 %     16.04 %     15.65 %     15.05 %
    Bank Tier 1 Capital (to Risk-Weighted Assets)     13.44 %     13.80 %     13.44 %     13.26 %     14.79 %     14.39 %     13.80 %
    Bank Tier 1 Common Equity (to Risk-Weighted Assets)     13.44 %     13.80 %     13.44 %     13.26 %     14.79 %     14.39 %     13.80 %
    Bank Tier 1 Capital (to Assets)     9.69 %     10.11 %     9.69 %     9.13 %     10.30 %     10.13 %     10.11 %

    1 Non-GAAP financial metrics. See non-GAAP reconciliation included herein for the most directly comparable GAAP measures.
    2 Non-brokered deposits excluding certificates of deposit of $250,000 or more.
    3 Construction and development, multifamily, and non-owner occupied CRE loans as a percentage of Pathfinder Bank total capital.
    4 Includes 11 full-service branches and one motor bank for December 31 and September 30, 2024, respectively. Includes 10 full-service branches and one motor bank for all periods prior.
    5 Basic and diluted earnings per share are calculated based upon the two-class method. Weighted average shares outstanding do not include unallocated ESOP shares.

    The above information is preliminary and based on the Company’s data available at the time of presentation.
        Years Ended December 31,     2024     2023  
    ASSET QUALITY:   2024     2023     Q4     Q3     Q2     Q1     Q4  
    Total loan charge-offs   $ 10,183     $ 4,221     $ 1,191     $ 8,812     $ 112     $ 68     $ 211  
    Total recoveries     345       355       171       90       46       38       103  
    Net loan charge-offs     9,838       3,866       1,020       8,722       66       30       108  
    Allowance for credit losses at period end     17,243       15,975       17,243       17,274       16,892       16,655       15,975  
    Nonperforming loans at period end     22,084       17,227       22,084       16,170       24,490       19,652       17,227  
    Nonperforming assets at period end   $ 22,084     $ 17,378     $ 22,084     $ 16,170     $ 24,550     $ 19,734     $ 17,378  
    Annualized net loan charge-offs to average loans     1.09 %     0.43 %     0.44 %     3.82 %     0.03 %     0.01 %     0.05 %
    Allowance for credit losses to period end loans     1.88 %     1.78 %     1.88 %     1.87 %     1.90 %     1.87 %     1.78 %
    Allowance for credit losses to nonperforming loans     78.08 %     92.73 %     78.08 %     106.83 %     68.98 %     84.75 %     92.73 %
    Nonperforming loans to period end loans     2.40 %     1.92 %     2.40 %     1.75 %     2.76 %     2.20 %     1.92 %
    Nonperforming assets to period end assets     1.50 %     1.19 %     1.50 %     1.09 %     1.70 %     1.36 %     1.19 %
                                                             
        2024       2023  
    LOAN COMPOSITION:   December 31,     September 30,     June 30,     March 31,     December 31,  
    1-4 family first-lien residential mortgages   $ 251,373     $ 255,235     $ 250,106     $ 252,026     $ 257,604  
    Residential construction     4,864       4,077       309       1,689       1,355  
    Commercial real estate     377,619       378,805       370,361       363,467       358,707  
    Commercial lines of credit     67,602       64,672       62,711       67,416       72,069  
    Other commercial and industrial     89,800       88,247       90,813       91,178       89,803  
    Paycheck protection program loans     113       125       136       147       158  
    Tax exempt commercial loans     4,544       2,658       3,228       3,374       3,430  
    Home equity and junior liens     51,948       52,709       35,821       35,723       34,858  
    Other consumer     72,710       76,703       75,195       77,106       79,797  
    Subtotal loans     920,573       923,231       888,680       892,126       897,781  
    Deferred loan fees     (1,587 )     (1,571 )     (417 )     (595 )     (574 )
    Total loans   $ 918,986     $ 921,660     $ 888,263     $ 891,531     $ 897,207  
                                             
        2024     2023  
    DEPOSIT COMPOSITION:   December 31,     September 30,     June 30,     March 31,     December 31,  
    Savings accounts   $ 128,752     $ 129,053     $ 106,048     $ 111,465     $ 113,543  
    Time accounts     360,586       352,729       368,262       378,103       377,570  
    Time accounts in excess of $250,000     142,473       140,181       117,021       114,514       95,272  
    Money management accounts     11,583       11,520       12,154       11,676       12,364  
    MMDA accounts     239,016       250,007       193,915       215,101       224,707  
    Demand deposit interest-bearing     101,080       97,344       128,168       134,196       119,321  
    Demand deposit noninterest-bearing     213,719       210,110       169,145       176,434       170,169  
    Mortgage escrow funds     7,184       5,269       6,564       4,624       7,121  
    Total deposits   $ 1,204,393     $ 1,196,213     $ 1,101,277     $ 1,146,113     $ 1,120,067  
                                             

    The above information is preliminary and based on the Company’s data available at the time of presentation.

        Years Ended December 31,     2024     2023  
    SELECTED AVERAGE BALANCES:   2024     2023     Q4     Q3     Q4  
    Interest-earning assets:                              
    Loans   $ 903,941     $ 899,605     $ 920,855     $ 914,467     $ 896,439  
    Taxable investment securities     423,475       379,600       412,048       415,751       403,411  
    Tax-exempt investment securities     30,861       30,318       34,918       30,382       27,941  
    Fed funds sold and interest-earning deposits     16,379       11,730       5,115       42,897       11,630  
    Total interest-earning assets     1,374,656       1,321,253       1,372,936       1,403,497       1,339,421  
    Noninterest-earning assets:                              
    Other assets     102,582       100,319       112,654       103,856       102,940  
    Allowance for credit losses     (16,670 )     (17,870 )     (17,145 )     (16,537 )     (17,359 )
    Net unrealized losses on available-for-sale securities     (9,769 )     (13,600 )     (8,534 )     (9,161 )     (15,653 )
    Total assets   $ 1,450,799     $ 1,390,102     $ 1,459,911     $ 1,481,655     $ 1,409,349  
    Interest-bearing liabilities:                              
    NOW accounts   $ 101,336     $ 92,223     $ 102,862     $ 102,868     $ 87,210  
    Money management accounts     11,679       14,116       11,371       11,828       12,518  
    MMDA accounts     227,597       239,182       257,429       227,247       231,957  
    Savings and club accounts     118,965       124,617       128,169       127,262       115,984  
    Time deposits     517,352       480,867       504,008       514,049       505,554  
    Subordinated loans     30,002       29,815       30,076       30,025       29,883  
    Borrowings     114,471       105,471       68,391       122,129       124,780  
    Total interest-bearing liabilities     1,121,402       1,086,291       1,102,306       1,135,408       1,107,886  
    Noninterest-bearing liabilities:                              
    Demand deposits     184,572       172,950       206,521       195,765       169,340  
    Other liabilities     21,923       16,037       29,491       24,856       15,858  
    Total liabilities     1,327,897       1,275,278       1,338,318       1,356,029       1,293,084  
    Shareholders’ equity     122,902       114,824       121,593       125,626       116,265  
    Total liabilities & shareholders’ equity   $ 1,450,799     $ 1,390,102     $ 1,459,911     $ 1,481,655     $ 1,409,349  
                                             
        Years Ended December 31,     2024     2023  
    SELECTED AVERAGE YIELDS:   2024     2023     Q4     Q3     Q4  
    Interest-earning assets:                              
    Loans     5.83 %     5.26 %     5.87 %     6.31 %     5.55 %
    Taxable investment securities     5.42 %     4.76 %     5.32 %     5.59 %     5.28 %
    Tax-exempt investment securities     6.22 %     6.42 %     5.10 %     6.17 %     7.24 %
    Fed funds sold and interest-earning deposits     4.84 %     2.51 %     6.41 %     4.59 %     2.37 %
    Total interest-earning assets     5.70 %     5.12 %     5.69 %     6.04 %     5.47 %
    Interest-bearing liabilities:                              
    NOW accounts     1.10 %     0.58 %     1.19 %     1.09 %     1.02 %
    Money management accounts     0.11 %     0.11 %     0.11 %     0.10 %     0.10 %
    MMDA accounts     3.52 %     2.80 %     3.23 %     3.54 %     3.72 %
    Savings and club accounts     0.26 %     0.22 %     0.26 %     0.25 %     0.26 %
    Time deposits     3.98 %     3.27 %     3.90 %     4.09 %     3.89 %
    Subordinated loans     6.55 %     6.51 %     6.52 %     6.61 %     6.61 %
    Borrowings     4.29 %     3.35 %     4.89 %     4.38 %     4.15 %
    Total interest-bearing liabilities     3.29 %     2.65 %     3.16 %     3.34 %     3.31 %
    Net interest rate spread     2.41 %     2.47 %     2.53 %     2.70 %     2.16 %
    Net interest margin     3.01 %     2.95 %     3.15 %     3.34 %     2.74 %
    Ratio of average interest-earning assets to average interest-bearing liabilities     122.58 %     121.63 %     124.55 %     123.61 %     120.90 %
                                             

    The above information is preliminary and based on the Company’s data available at the time of presentation.

        Years Ended December 31,     2024     2023  
    NON-GAAP RECONCILIATIONS:   2024     2023     Q4     Q3     Q2     Q1     Q4  
    Tangible book value per common share:                                          
    Total equity               $ 121,860     $ 120,246     $ 123,348     $ 121,818     $ 119,495  
    Intangible assets                 (11,045 )     (11,969 )     (4,612 )     (4,616 )     (4,621 )
    Tangible common equity (non-GAAP)                 110,815       108,277       118,736       117,202       114,874  
    Common shares outstanding                 6,123       6,100       6,100       6,100       6,100  
    Tangible book value per common share (non-GAAP)               $ 18.10     $ 17.75     $ 19.46     $ 19.21     $ 18.83  
    Tangible common equity to tangible assets:                                          
    Tangible common equity (non-GAAP)               $ 110,815     $ 108,277     $ 118,736     $ 117,202     $ 114,874  
    Tangible assets                 1,463,829       1,471,157       1,441,599       1,449,056       1,461,177  
    Tangible common equity to tangible assets ratio (non-GAAP)                 7.57 %     7.36 %     8.24 %     8.09 %     7.86 %
    Return on average tangible common equity:                                          
    Average shareholders’ equity   $ 122,902     $ 114,824     $ 121,593     $ 125,626     $ 123,211     $ 121,031     $ 116,265  
    Average intangible assets     6,468       4,629       11,907       4,691       4,614       4,619       4,623  
    Average tangible equity (non-GAAP)     116,434       110,195       109,686       120,935       118,597       116,412       111,642  
    Net income (loss)     3,760       9,293       4,284       (4,644 )     2,000       2,120       2,536  
    Net income (loss), annualized   $ 3,760     $ 9,293     $ 17,043     $ (18,475 )   $ 8,044     $ 8,527     $ 10,061  
    Return on average tangible common equity (non-GAAP) 1     3.23 %     8.43 %     15.54 %     -15.28 %     6.78 %     7.32 %     9.01 %
    Revenue, pre-tax, pre-provision net income, and efficiency ratio:                                          
    Net interest income   $ 41,432     $ 38,919     $ 10,820     $ 11,732     $ 9,480     $ 9,400     $ 9,159  
    Total noninterest income     9,561       5,190       4,906       1,707       1,211       1,737       1,318  
    Net realized (gains) losses on sales and redemptions of investment securities     (71 )     62       249       (188 )     16       (148 )     2  
    Gain on asset sale     3,169       –       3,169       –       –       –       –  
    Revenue (non-GAAP) 2     47,895       44,047       12,308       13,627       10,675       11,285       10,475  
    Total non-interest expense     34,417       29,395       8,544       10,259       7,908       7,706       7,044  
    Pre-tax, pre-provision net income (non-GAAP) 3   $ 13,478     $ 14,652     $ 3,764     $ 3,368     $ 2,767     $ 3,579     $ 3,431  
    Efficiency ratio (non-GAAP) 4     71.86 %     66.74 %     69.42 %     75.28 %     74.08 %     68.29 %     67.25 %

    1 Return on average tangible common equity equals annualized net income (loss) divided by average tangible equity
    2 Revenue equals net interest income plus total noninterest income less net realized gains or losses on sales and redemptions of investment securities and gain on sale of insurance agency
    3 Pre-tax, pre-provision net income equals revenue less total non-interest expense
    4 Efficiency ratio equals noninterest expense divided by revenue

    The above information is preliminary and based on the Company’s data available at the time of presentation.

    The MIL Network –

  • MIL-OSI: Apollo to Present at the 2025 UBS Financial Services Conference

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, Jan. 31, 2025 (GLOBE NEWSWIRE) — Apollo (NYSE: APO) today announced that Martin Kelly, Chief Financial Officer, will participate in a fireside chat at the UBS Financial Services Conference on Monday, February 10, 2025 at 9:40 am ET.

    A live webcast of the event will be available on Apollo’s Investor Relations website at ir.apollo.com. For those unable to join live, a replay will be available shortly after the event.

    About Apollo

    Apollo is a high-growth, global alternative asset manager. In our asset management business, we seek to provide our clients excess return at every point along the risk-reward spectrum from investment grade credit to private equity. For more than three decades, our investing expertise across our fully integrated platform has served the financial return needs of our clients and provided businesses with innovative capital solutions for growth. Through Athene, our retirement services business, we specialize in helping clients achieve financial security by providing a suite of retirement savings products and acting as a solutions provider to institutions. Our patient, creative, and knowledgeable approach to investing aligns our clients, businesses we invest in, our employees, and the communities we impact, to expand opportunity and achieve positive outcomes. As of September 30, 2024, Apollo had approximately $733 billion of assets under management. To learn more, please visit www.apollo.com.

    Contacts

    Noah Gunn
    Global Head of Investor Relations
    Apollo Global Management, Inc.
    (212) 822-0540
    IR@apollo.com

    Joanna Rose
    Global Head of Corporate Communications
    Apollo Global Management, Inc.
    (212) 822-0491
    Communications@apollo.com

    The MIL Network –

  • MIL-OSI: Territorial Bancorp Inc. Announces Fourth Quarter 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    • The Company’s tier one leverage and risk-based capital ratios were 11.68% and 28.96%, respectively, and the Company is considered to be “well-capitalized” at December 31, 2024.
    • Ratio of non-performing assets to total assets of 0.09% at December 31, 2024.

    HONOLULU, Jan. 31, 2025 (GLOBE NEWSWIRE) — Territorial Bancorp Inc. (NASDAQ: TBNK) (the Company), headquartered in Honolulu, Hawaii, the holding company parent of Territorial Savings Bank, reported a net loss of $1.72 million, or $0.20 per diluted share, for the three months ended December 31, 2024. Results reflect $1.53 million of pre-tax merger-related expenses.

    The Board of Directors approved a dividend of $0.01 per share. The dividend is expected to be paid on February 28, 2025, to stockholders of record as of February 14, 2025.

    Hope Bancorp, Inc. Merger Agreement

    As previously announced in a joint news release issued April 29, 2024, Hope Bancorp, Inc. (NASDAQ: HOPE) (Hope Bancorp) and the Company signed a definitive merger agreement. Under the terms of the merger agreement, Company stockholders will receive a fixed exchange ratio of 0.8048 share of Hope Bancorp common stock in exchange for each share of Company common stock they own, in a 100% stock-for-stock transaction valued at approximately $78.60 million, based on the closing price of Hope Bancorp’s common stock on April 26, 2024. The transaction is intended to qualify as a tax-free reorganization for Territorial stockholders.

    Upon completion of the transaction, Hope Bancorp intends to maintain the Territorial franchise in Hawaii and preserve the 100-plus year legacy of the Territorial Savings Bank brand name, culture and commitment to the local communities. The branches will continue to do business under the Territorial Savings Bank brand, as a trade name of Bank of Hope.

    The transaction is subject to regulatory approvals and the satisfaction of other customary closing conditions.

    Interest Income

    Net interest income decreased by $2.21 million for the three months ended December 31, 2024, compared to the three months ended December 31, 2023. Total interest income was $17.91 million for the three months ended December 31, 2024, compared to $17.69 million for the three months ended December 31, 2023. The $217,000 increase in total interest income was primarily due to a $274,000 increase in interest earned on loans and a $245,000 increase in interest earned on other investments. The $274,000 increase in interest income on loans resulted from a 14 basis point increase in the average loan yield, partially offset by a $20.63 million decrease in the average loan balance. The increase in interest income on other investments is primarily due to a $28.86 million increase in the average cash balance with the Federal Reserve Bank of San Francisco (FRB), offset by a 45 basis point decrease in the average interest rate paid on cash balances. The increases in interest income on loans and other investments during the quarter were partially offset by a $302,000 decrease in interest on investment securities, which occurred because of a $40.21 million decrease in the average securities balances.

    Interest Expense and Provision for Credit Losses

    As a result of prolonged increases in short-term interest rates, total interest expense increased by $2.42 million for the three months ended December 31, 2024, compared to the three months ended December 31, 2023. Interest expense on deposits increased by $2.51 million for the three months ended December 31, 2024, primarily due to an increase in interest expense on certificates of deposit (CD) and savings accounts. Interest expense on CDs rose by $1.61 million for the three months ended December 31, 2024, due to a 17 basis point increase in the average cost of CDs and a $132.90 million increase in the average CD balance. Interest expense on savings accounts rose by $892,000 for the three months ended December 31, 2024, due to a 58 basis point increase in the average cost of savings accounts which was partially offset by a $72.23 million decrease in the average balance. The increase in the average cost of CDs and savings accounts occurred as interest rates were raised in response to the increases in market interest rates over that period. The increase in the average balance of CDs and the decrease in the average balance of savings accounts occurred as customers transferred balances from lower rate savings accounts to higher rate CDs. Interest expense on Federal Home Loan Bank (FHLB) borrowings declined by $285,000 for the three months ended December 31, 2024, as the Company paid off $82.00 million in advances from the FHLB during 2024. Interest expense on Federal Reserve Bank (FRB) borrowings rose by $230,000 for the three months ended December 31, 2024, as the Company obtained a $50.00 million advance from the FRB in the fourth quarter of 2023 to enhance the Company’s liquidity and to fund deposit withdrawals. The FRB advances were paid off during the three months ended December 31, 2024.

    The Company had a $51,000 provision for credit losses for the three months ending December 31, 2024, compared to a $144,000 provision for the three months ending December 31, 2023. The decrease in the provision for credit losses was due to a decrease in the mortgage loan portfolio, which was partially offset by an increase in provision related to growth in the consumer loan portfolio.

    Noninterest Income

    Noninterest income increased by $139,000 for the three months ended December 31, 2024 compared to the three months ended December 31, 2023, primarily due to a $129,000 decrease in pension expenses related to an increase in the return on the pension plan’s assets.

    Noninterest Expense

    Noninterest expense increased by $1.42 million for the three months ended December 31, 2024, compared to the three months ended December 31, 2023, primarily due to a $1.34 million increase in general and administrative expenses. General and administrative expenses included $1.53 million of merger-related legal and consulting expenses. Federal Deposit Insurance Corporation (FDIC) premium expense rose by $141,000 for the quarter because of an increase in the FDIC insurance premium rates. The increase in other general and administrative expenses and FDIC premiums was offset by a $170,000 decrease in occupancy expense during the quarter. The decrease was due to a one-time reversal of a previously accrued charge.

    Income Taxes

    Income tax benefit for the three months ended December 31, 2024 was $1.28 million with an effective tax rate of (42.53)% compared to income tax expense of $61,000 with an effective tax rate of 15.44% for the three months ended December 31, 2023. The change from income tax expense to income tax benefit was primarily due to a $3.40 million change in net operating income during the quarter.

    Balance Sheet

    Total assets were $2.17 billion at December 31, 2024 and $2.24 billion at December 31, 2023. Investment securities, including available for sale securities, decreased by $41.74 million to $664.16 million at December 31, 2024 from $705.90 million at December 31, 2023. The decrease in investment securities occurred because of principal repayments on mortgage-backed securities. Loans receivable decreased by $21.89 million to $1.29 billion at December 31, 2024 from $1.31 billion at December 31, 2023. The decrease in loans receivable occurred as loan repayments and sales exceeded new loan originations. Cash and cash equivalents decreased by $3.14 million to $123.52 million at December 31, 2024 from $126.66 million at December 31, 2023 due to repayments of advances from the FHLB, FRB and repurchase agreements, which were offset by increases in deposits and principal repayments on mortgage-backed securities and on loans receivable.

    Deposits increased by $81.06 million from $1.64 billion at December 31, 2023 to $1.72 billion at December 31, 2024. The increase in deposits is primarily due to deposits from state and local governments. The increase in deposits was used with principal repayments on mortgage-backed securities and loans receivable to pay off $82.00 million of maturing FHLB advances, $50.00 million of FRB advances and $10.00 million of repurchase agreements.

    Asset Quality

    Credit quality continues to be extremely important as the Company adheres to its strict underwriting standards. The Company had $1.22 million in delinquent mortgage loans 90 days or more past due at December 31, 2024, compared to $227,000 at December 31, 2023. Non-performing assets totaled $1.93 million at December 31, 2024, compared to $2.26 million at December 31, 2023. The ratio of non-performing assets to total assets was 0.09% at December 31, 2024, compared to 0.10% at December 31, 2023. The allowance for credit losses was $5.11 million at December 31, 2024, compared to $5.12 million at December 31, 2023, representing 0.40% of total loans at December 31, 2024, compared to 0.39% of total loans at December 31, 2023. The ratio of the allowance for credit losses to non-performing loans was 264.56% at December 31, 2024, compared to 226.59% at December 31, 2023.

    About Us

    Territorial Bancorp Inc., headquartered in Honolulu, Hawaii, is the stock holding company for Territorial Savings Bank. Territorial Savings Bank is a state-chartered savings bank which was originally chartered in 1921 by the Territory of Hawaii. Territorial Savings Bank conducts business from its headquarters in Honolulu, Hawaii and has 28 branch offices in the state of Hawaii. For additional information, please visit the Company’s website at: https://www.tsbhawaii.bank.

    Forward-looking statements

    This earnings release contains forward-looking statements, which can be identified by the use of words such as “estimate,” “project,” “believe,” “intend,” “anticipate,” “plan,” “seek,” “expect,” “will,” “may” and words of similar meaning. These forward-looking statements include, but are not limited to:

    • statements of our goals, intentions and expectations;
    • statements regarding our business plans, prospects, growth and operating strategies;
    • statements regarding the asset quality of our loan and investment portfolios; and
    • estimates of our risks and future costs and benefits.

    These forward-looking statements are based on our current beliefs and expectations and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. We are under no duty to and do not take any obligation to update any forward-looking statements after the date of this earnings release.

    The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements:

    • factors related to the proposed transaction with Hope Bancorp, including the receipt of regulatory approvals, and other customary closing conditions;
    • general economic conditions, either internationally, nationally or in our market areas, that are worse than expected;
    • competition among depository and other financial institutions;
    • inflation and changes in the interest rate environment that reduce our margins or reduce the fair value of financial instruments;
    • adverse changes in the securities markets;
    • changes in laws or government regulations or policies affecting financial institutions, including changes in regulatory fees and capital requirements;
    • changes in monetary or fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Federal Reserve Board;
    • our ability to enter new markets successfully and capitalize on growth opportunities;
    • our ability to successfully integrate acquired entities, if any;
    • changes in consumer demand, spending, borrowing and savings habits;
    • changes in accounting policies and practices, as may be adopted by the bank regulatory agencies, the Financial Accounting Standards Board, the Securities and Exchange Commission and the Public Company Accounting Oversight Board;
    • changes in our organization, compensation and benefit plans;
    • the timing and amount of revenues that we may recognize;
    • the value and marketability of collateral underlying our loan portfolios;
    • our ability to retain key employees;
    • cyberattacks, computer viruses and other technological risks that may breach the security of our websites or other systems to obtain unauthorized access to confidential information, destroy data or disable our systems;
    • technological change that may be more difficult or expensive than expected;
    • the ability of third-party providers to perform their obligations to us;
    • the ability of the U.S. Government to manage federal debt limits;
    • the quality and composition of our investment portfolio;
    • the effect of any pandemic disease, natural disaster, war, act of terrorism, accident or similar action or event;
    • changes in market and other conditions that would affect our ability to repurchase our common stock; and
    • changes in our financial condition or results of operations that reduce capital available to pay dividends.

    Because of these and a wide variety of other uncertainties, our actual future results may be materially different from the results indicated by these forward-looking statements.

    Contact: Walter Ida
    (808) 946-1400

    Territorial Bancorp Inc. and Subsidiaries
    Consolidated Statements of Operations (Unaudited)
    (Dollars in thousands, except per share data)
               
        Three Months Ended   Year Ended
        December 31,   December 31,
        2024
    		   2023   2024   2023
    Interest income:                    
    Loans   $ 12,280     $ 12,006   $ 48,820     $ 47,043  
    Investment securities     4,104       4,406   16,857     17,918  
    Other investments     1,524       1,279   6,628     4,127  
    Total interest income     17,908       17,691   72,305     69,088  
                         
    Interest expense:                    
    Deposits     8,731       6,223   31,389     19,484  
    Advances from the Federal Home Loan Bank     1,569       1,854   6,899     6,636  
    Advances from the Federal Reserve Bank     384       154   2,173     183  
    Securities sold under agreements to repurchase     15       46   152     154  
    Total interest expense     10,699       8,277   40,613     26,457  
                         
    Net interest income     7,209       9,414   31,692     42,631  
    Provision (reversal of provision) for credit losses     51       144   73     (3 )
                         
    Net interest income after provision (reversal of provision) for credit losses     7,158       9,270   31,619     42,634  
                         
    Noninterest income:                    
    Service and other fees     285       305   1,170     1,327  
    Income on bank-owned life insurance     257       227   1,007     855  
    Net gain on sale of loans     —       —   19     10  
    Other     200       71   415     279  
    Total noninterest income     742       603   2,611     2,471  
                         
    Noninterest expense:                    
    Salaries and employee benefits     5,181       5,109   19,787     20,832  
    Occupancy     1,539       1,709   6,858     6,910  
    Equipment     1,320       1,278   5,307     5,156  
    Federal deposit insurance premiums     386       245   1,667     982  
    Other general and administrative expenses     2,474       1,137   7,325     4,388  
    Total noninterest expense     10,900       9,478   40,944     38,268  
                         
    (Loss) Income before income taxes     (3,000 )     395   (6,714 )   6,837  
    Income tax (benefit) expense     (1,276 )     61   (2,415 )   1,810  
    Net (loss) income   $ (1,724 )   $ 334   $ (4,299 )   $ 5,027  
                         
    Basic (loss) earnings per share   $ (0.20 )   $ 0.04   $ (0.50 )   $ 0.58  
    Diluted (loss) earnings per share   $ (0.20 )   $ 0.04   $ (0.50 )   $ 0.57  
    Cash dividends declared per common share   $ 0.01     $ 0.05   $ 0.08     $ 0.74  
    Basic weighted-average shares outstanding     8,630,432       8,575,902   8,610,706     8,636,495  
    Diluted weighted-average shares outstanding     8,630,432       8,603,843   8,610,706     8,684,092  
                         
    Territorial Bancorp Inc. and Subsidiaries
    Consolidated Balance Sheets (Unaudited)
    (Dollars in thousands, except per share data)
                 
        December 31,   December 31,
        2024    2023 
    ASSETS            
    Cash and cash equivalents   $ 123,523     $ 126,659  
    Investment securities available for sale, at fair value     18,492       20,171  
    Investment securities held to maturity, at amortized cost (fair value of $513,499 and $568,128 at December 31,2024 and 2023, respectively)     645,669       685,728  
    Loans receivable     1,286,662       1,308,552  
    Allowance for credit losses     (5,114 )     (5,121 )
    Loans receivable, net of allowance for credit losses     1,281,548       1,303,431  
    Federal Home Loan Bank stock, at cost     8,542       12,192  
    Federal Reserve Bank stock, at cost     3,189       3,180  
    Accrued interest receivable     5,800       6,105  
    Premises and equipment, net     7,278       7,185  
    Right-of-use asset, net     12,523       12,371  
    Bank-owned life insurance     49,645       48,638  
    Income taxes receivable     2,082       344  
    Deferred income tax assets, net     1,877       2,457  
    Prepaid expenses and other assets     9,547       8,211  
    Total assets   $ 2,169,715     $ 2,236,672  
                 
    LIABILITIES AND STOCKHOLDERS’ EQUITY            
    Liabilities:            
    Deposits   $ 1,717,663     $ 1,636,604  
    Advances from the Federal Home Loan Bank     160,000       242,000  
    Advances from the Federal Reserve Bank     —       50,000  
    Securities sold under agreements to repurchase     —       10,000  
    Accounts payable and accrued expenses     19,403       23,334  
    Lease liability     17,967       17,297  
    Advance payments by borrowers for taxes and insurance     6,331       6,351  
    Total liabilities     1,921,364       1,985,586  
                 
    Stockholders’ Equity:            
    Preferred stock, $0.01 par value; authorized 50,000,000 shares, no shares issued or outstanding     —       —  
    Common stock, $0.01 par value; authorized 100,000,000 shares; issued and outstanding            
    8,832,210 and 8,826,613 shares at December 31, 2024 and 2023, respectively     88       88  
    Additional paid-in capital     48,367       48,022  
    Unearned ESOP shares     (1,957 )     (2,447 )
    Retained earnings     206,693       211,644  
    Accumulated other comprehensive loss     (4,840 )     (6,221 )
    Total stockholders’ equity     248,351       251,086  
    Total liabilities and stockholders’ equity   $ 2,169,715     $ 2,236,672  
                 
    Territorial Bancorp Inc. and Subsidiaries
    Selected Financial Data (Unaudited)
                       
                  Three Months Ended
                  December 31,
                    2024       2023  
                       
    Performance Ratios (annualized):            
      Return on average assets         -0.32 %     0.06 %
      Return on average equity         -2.75 %     0.53 %
      Net interest margin on average interest earning assets   1.39 %     1.78 %
      Efficiency ratio (1)           137.09 %     94.62 %
                       
                  At   At
                  December   December
                    31, 2024       31, 2023  
                       
    Selected Balance Sheet Data:            
      Book value per share (2)       $ 28.12     $ 28.45  
      Stockholders’ equity to total assets       11.45 %     11.23 %
                       
                       
    Asset Quality                
    (Dollars in thousands):              
      Delinquent loans 90 days past due and not accruing $ 1,219     $ 227  
      Non-performing assets (3)       $ 1,933     $ 2,260  
      Allowance for credit losses       $ 5,114     $ 5,121  
      Non-performing assets to total assets       0.09 %     0.10 %
      Allowance for credit losses to total loans       0.40 %     0.39 %
      Allowance for credit losses to non-performing assets   264.56 %     226.59 %
                       
                       
    Note:                
                       
    (1) Efficiency ratio is equal to noninterest expense divided by the sum of net interest income and noninterest income
    (2) Book value per share is equal to stockholders’ equity divided by number of shares issued and outstanding
    (3) Non-performing assets consist of non-accrual loans and real estate owned. Amounts are net of charge-offs

    The MIL Network –