KB – Page 4793 – NewzIntel.com

MIL-OSI: Magnite Partners With Sky New Zealand to Power Programmatic Advertising on Sky Sport Now

Source: GlobeNewswire (MIL-OSI)

AUCKLAND, New Zealand, Jan. 28, 2025 (GLOBE NEWSWIRE) — Magnite (NASDAQ: MGNI), the largest independent sell-side advertising company, is working with Sky New Zealand to power programmatic advertising on Sky’s premium live and on-demand sports streaming platform, Sky Sport Now. Following the recent launch of digital advertising on Sky Sport Now, buyers will have programmatic access to the platform’s high-value live sports inventory for the first time through Magnite.

With 51.3 million annual streams* and content across an average of 35 sporting codes, Sky Sport Now offers advertisers a golden opportunity to engage audiences with data-driven targeting and optimised campaigns, maintained within a premium environment. Magnite’s cutting-edge streaming technology will help Sky recognise the value of their content in a way that respects the viewer experience, while making it easier for buyers to access scalable, premium inventory and reach engaged audiences.

Lauren Quaintance, Sky New Zealand’s Chief Media and Data Officer, says: “The launch of digital advertising on Sky Sport Now unlocks Sky’s highly engaged live sport audiences on this platform for the first time. With all the live sport that Kiwis love in one place and scalable audiences now available to local digital advertisers, we’re experiencing strong interest from clients eager to get involved, and we’re incredibly grateful for the support from agencies and advertisers.

“Aligning with the right partners to ensure we can package this inventory efficiently, while delivering a premium viewing experience has been critical, and Magnite has proven to be a highly effective partner. We’re excited to continue working with them to facilitate programmatic access to Sky’s highly engaged live sport audiences for the first time.”

Yael Milbank, Managing Director, ANZ at Magnite, says: “Sky New Zealand has expanded their offering to meet the consumer appetite for more accessible live sports content, and we’re pleased to be working with them to unlock new opportunities for advertisers to reach highly engaged sports fans. We look forward to helping drive continued success as they leverage our leading streaming technology to enable programmatic activation of premium live sports inventory on Sky Sport Now.”

About Sky New Zealand
Sky is New Zealand’s leading entertainment company and home to the best and broadest choice in live sport, movies, shows, documentaries and news. Sky offers a suite of viewing choices to suit every New Zealander, whether it’s through the Sky Box and companion app Sky Go for premium direct-to-home customers, its streaming services Sky Sport Now for sport and Neon for movies and entertainment, or free-to-air on Sky Open.

About Magnite
We’re Magnite (NASDAQ: MGNI), the world’s largest independent sell-side advertising company. Publishers use our technology to monetize their content across all screens and formats including CTV, online video, display, and audio. The world’s leading agencies and brands trust our platform to access brand-safe, high-quality ad inventory and execute billions of advertising transactions each month. Anchored in bustling New York City, sunny Los Angeles, mile high Denver, historic London, colorful Singapore, and down under in Sydney, Magnite has offices across North America, EMEA, LATAM, and APAC.

Media Contact:
Einsteinz Communications
carlotta@einsteinz.com.au

_____________________

*SOURCE 1: NIELSEN CMI, Q1 2023 – Q4 2023, AP15+, ONLINE VIDEO/TV SERVICES USED L7D.

The MIL Network –

January 29, 2025

MIL-OSI: Provident Financial Services, Inc. Announces Fourth Quarter and Full Year Earnings, Declaration of Quarterly Cash Dividend and Annual Meeting Date

Source: GlobeNewswire (MIL-OSI)

ISELIN, N.J., Jan. 28, 2025 (GLOBE NEWSWIRE) — Provident Financial Services, Inc. (NYSE:PFS) (the “Company”) reported net income of $48.5 million, or $0.37 per basic and diluted share for the three months ended December 31, 2024, compared to $46.4 million, or $0.36 per basic and diluted share, for the three months ended September 30, 2024 and $27.3 million, or $0.36 per basic and diluted share, for the three months ended December 31, 2023. For the year ended December 31, 2024, net income totaled $115.5 million, or $1.05 per basic and diluted share, compared to $128.4 million, or $1.72 per basic and $1.71 per diluted share, for the year ended December 31, 2023.

The Company’s earnings for the three months and year ended December 31, 2024 reflect the impact of the May 16, 2024 merger with Lakeland Bancorp, Inc. (“Lakeland”), which added $10.91 billion to total assets, $7.91 billion to loans, and $8.62 billion to deposits, net of purchase accounting adjustments. The merger with Lakeland significantly impacted provisions for credit losses in 2024 due to the initial Current Expected Credit Loss (“CECL”) provisions recorded on acquired loans in the second quarter. Transaction costs related to our merger with Lakeland totaled $20.2 million and $56.9 million, for the three months and year ended December 31, 2024, respectively, compared with transaction costs of $2.5 million and $7.8 million for the respective 2023 periods. Additionally, the Company realized a $2.8 million loss related to the sale of subordinated debt issued by Lakeland from the Provident investment portfolio, during the second quarter of 2024.

Anthony J. Labozzetta, President and Chief Executive Officer commented, “Provident had an eventful 2024 marked by solid financial performance and defined by the completion of our merger with Lakeland. We have maintained excellent asset quality, grown our deposits, and benefited from our expanding fee-based businesses. With core systems conversion and integration now completed, we look forward to further improving our performance across all business lines in 2025.”

Performance Highlights for the Fourth Quarter of 2024

Adjusted for transaction costs related to the merger with Lakeland, net of tax, the Company’s annualized adjusted returns on average assets, average equity and average tangible equity⁽¹⁾ were 1.05%, 9.53% and 15.39% for the quarter ended December 31, 2024, compared to 0.95%, 8.62% and 14.53% for the quarter ended September 30, 2024. A reconciliation between GAAP and the above non-GAAP ratios is shown on page 13 of the earnings release.
The Company’s annualized adjusted pre-tax, pre-provision returns on average assets, average equity and average tangible equity⁽²⁾ were 1.53%, 13.91% and 20.31% for the quarter ended December 31, 2024, compared to 1.48%, 13.48% and 19.77% for the quarter ended September 30, 2024. A reconciliation between GAAP and the above non-GAAP ratios is shown on page 13 of the earnings release.
Net interest margin decreased three basis points to 3.28% for the quarter ended December 31, 2024, from 3.31% for the trailing quarter, mainly due to a reduction in net accretion of purchase accounting adjustments related to the Lakeland merger. However, the core net interest margin, which excludes the impact of purchase accounting accretion and amortization, increased four basis points from the trailing quarter to 2.85%. The average yield on total loans decreased 22 basis points to 5.99% for the quarter ended December 31, 2024, compared to the trailing quarter, while the average cost of deposits, including non-interest-bearing deposits, decreased 11 basis points to 2.25% for the quarter ended December 31, 2024.
Wealth management and insurance agency income increased 12% and 19%, respectively, versus the same period in 2023.
Asset quality improved in the quarter, as non-performing loans to total loans as of December 31, 2024 decreased to 0.39% from 0.47% as of September 30, 2024, while non-performing assets to total assets as of December 31, 2024 decreased to 0.34% from 0.41% as of September 30, 2024.
The Company recorded a $7.8 million provision for credit losses on loans for the quarter ended December 31, 2024, compared to a $9.6 million provision for the trailing quarter. The decrease in the provision for credit losses on loans for the quarter was primarily attributable to the reclassification of $151.3 million to the held for sale portfolio, partially offset by modest deterioration in the economic forecast within our CECL model.
Total deposits increased $247.6 million to $18.62 billion as of December 31, 2024 compared to September 30, 2024.
In December of 2024, $151.3 million of the Bank’s commercial loan portfolio was reclassified from loans held for investment into the held for sale portfolio as a result of a decision to exit the non-relationship equipment lease financing business.
As of December 31, 2024, the Company’s loan pipeline, consisting of work-in-process and loans approved pending closing, totaled $1.79 billion, with a weighted average interest rate of 6.91%.
At December 31, 2024, CRE loans related to office properties totaled $884.1 million, compared to $921.1 million at September 30, 2024. CRE loans secured by office properties constitutes 4.6% of total loans and have an average loan size of $1.9 million, with seven relationships greater than $10.0 million. There were four loans totaling $9.1 million on non-accrual as of December 31, 2024.
As of December 31, 2024, multi-family CRE loans secured by New York City properties totaled $244.5 million, compared to $226.6 million as of September 30, 2024. This portfolio constitutes only 1.3% of total loans and has an average loan size of $2.8 million. Loans that are collateralized by rent stabilized apartments comprise less than 0.80% of the total loan portfolio and are all performing.

Declaration of Quarterly Dividend

The Company’s Board of Directors declared a quarterly cash dividend of $0.24 per common share payable on February 28, 2025, to stockholders of record as of the close of business on February 14, 2025.

Annual Meeting Date Set

The Annual Meeting of Stockholders will be held on April 24, 2025 at 10:00 a.m. Eastern Time as a virtual meeting. February 28, 2025 has been established as the record date for the determination of stockholders entitled to vote at the Annual Meeting.

Results of Operations

Three months ended December 31, 2024 compared to the three months ended September 30, 2024

For the three months ended December 31, 2024, net income was $48.5 million, or $0.37 per basic and diluted share, compared to net income of $46.4 million, or $0.36 per basic and diluted share, for the three months ended September 30, 2024.

Net Interest Income and Net Interest Margin

Net interest income decreased $2.0 million to $181.7 million for the three months ended December 31, 2024, from $183.7 million for the trailing quarter. The decrease in net interest income was primarily due to a decrease in net accretion of purchase accounting adjustments in the loan portfolio related to the Lakeland merger.

The Company’s net interest margin decreased three basis points to 3.28% for the quarter ended December 31, 2024, from 3.31% for the trailing quarter. The average yield on interest-earning assets for the quarter ended December 31, 2024 decreased 18 basis points to 5.66%, compared to the trailing quarter. The average cost of interest-bearing liabilities for the quarter ended December 31, 2024 decreased 16 basis points to 3.03%, compared to the trailing quarter. The average cost of interest-bearing deposits for the quarter ended December 31, 2024 decreased 15 basis points to 2.81%, compared to 2.96% for the trailing quarter. The average cost of total deposits, including non-interest-bearing deposits, was 2.25% for the quarter ended December 31, 2024, compared to 2.36% for the trailing quarter. The average cost of borrowed funds for the quarter ended December 31, 2024 was 3.64%, compared to 3.73% for the quarter ended September 30, 2024. The net accretion of purchase accounting adjustments contributed 43 basis points to the net interest margin for the quarter ended December 31, 2024, compared with 50 basis points in the trailing quarter. The reduction in purchase accounting accretion was largely due to the prepayment of certain loans that resulted in accelerated amortization of acquisition premiums and a decrease in accelerated accretion related to prepayments of loans with acquisition discounts.

Provision for Credit Losses on Loans

For the quarter ended December 31, 2024, the Company recorded a $7.8 million provision for credit losses related to loans, compared with a provision for credit losses on loans of $9.6 million for the quarter ended September 30, 2024. The decrease in the provision for credit losses on loans for the quarter was primarily attributable to the reclassification of $151.3 million of commercial loans to the held for sale portfolio, partially offset by modest deterioration in the economic forecast within our CECL model for the current quarter as compared to the prior quarter. For the three months ended December 31, 2024, net charge-offs totaled $5.5 million, or an annualized 12 basis points of average loans, compared to net charge-offs of $6.8 million, or an annualized 14 basis points of average loans for the trailing quarter.

Non-Interest Income and Expense

For the three months ended December 31, 2024, non-interest income totaled $24.2 million, a decrease of $2.7 million, compared to the trailing quarter. Bank owned life insurance (“BOLI”) income decreased $2.0 million compared to the trailing quarter, to $2.3 million for the three months ended December 31, 2024, primarily due to a reduction in benefit claims. Insurance agency income decreased $342,000 to $3.3 million for the three months ended December 31, 2024, compared to $3.6 million for the trailing quarter, largely due to a seasonal decrease in business activity. Additionally, other income decreased $181,000 to $1.3 million for the three months ended December 31, 2024, compared to the trailing quarter, while fees and commissions decreased $129,000 to $9.7 million for the three months ended December 31, 2024, compared to the trailing quarter.

Non-interest expense totaled $134.3 million for the three months ended December 31, 2024, a decrease of $1.7 million, compared to $136.0 million for the trailing quarter. Compensation and benefits expense decreased $3.5 million to $59.9 million for the three months ended December 31, 2024, compared to $63.5 million for the trailing quarter mainly due to decreases in salary expense and payroll tax expense. Amortization of intangibles decreased $2.7 million to $9.5 million for the three months ended December 31, 2024 primarily due to a current quarter adjustment to the rate of core deposit intangible amortization related to Lakeland, as a result of lower projected attrition on core deposits. FDIC insurance decreased $769,000 to $3.4 million for the three months ended December 31, 2024, compared to $4.2 million for the trailing quarter, primarily due to a decreases in the assessment rate and average assets. Additionally, data processing expense decreased $600,000 to $9.9 million for the three months ended December 31, 2024, compared to the trailing quarter, largely due to a decrease in core system expenses. Partially offsetting these decreases, merger-related expenses increased $4.6 million to $20.2 million for the three months ended December 31, 2024, compared to the trailing quarter, while other operating expenses increased $1.6 million to $17.4 million for the three months ended December 31, 2024, compared to the trailing quarter largely due to a $1.4 million charge for contingent litigation reserves.

The Company’s annualized adjusted non-interest expense as a percentage of average assets⁽⁴⁾ was 1.90% for the quarter ended December 31, 2024, compared to 1.98% for the trailing quarter. The efficiency ratio (adjusted non-interest expense divided by the sum of net interest income and non-interest income)⁽⁵⁾ was 55.43% for the three months ended December 31, 2024, compared to 57.20% for the trailing quarter.

Income Tax Expense

For the three months ended December 31, 2024, the Company’s income tax expense was $14.2 million with an effective tax rate of 22.6%, compared with income tax expense of $18.9 million with an effective tax rate of 28.9% for the trailing quarter. The decrease in tax expense and the effective tax rate for the three months ended December 31, 2024, compared with the trailing quarter was largely due to a $4.2 million tax benefit related to the revaluation of deferred tax assets to reflect the imposition by the State of New Jersey of a 2.5% Corporate Transit Fee, effective January 1, 2024.

Three months ended December 31, 2024 compared to the three months ended December 31, 2023

For the three months ended December 31, 2024, net income was $48.5 million, or $0.37 per basic and diluted share, compared to net income of $27.3 million, or $0.36 per basic and diluted share, for the three months ended December 31, 2023. The Company’s earnings for the quarter ended December 31, 2024 reflected the impact of the May 16, 2024 merger with Lakeland. The results of operations included transaction costs related to the merger with Lakeland totaling $20.2 million and $2.5 million for the three months ended December 31, 2024 and 2023, respectively.

Net Interest Income and Net Interest Margin

Net interest income increased $85.9 million to $181.7 million for the three months ended December 31, 2024, from $95.8 million for same period in 2023. Net interest income for the quarter ended December 31, 2024 compared to the same period in 2023 was favorably impacted by the net assets acquired from Lakeland, combined with favorable repricing of adjustable rate loans, higher market rates on new loan originations and the originations of higher-yielding loans, partially offset by unfavorable repricing of deposits.

The Company’s net interest margin increased 36 basis points to 3.28% for the quarter ended December 31, 2024, from 2.92% for the same period last year. The average yield on interest-earning assets for the quarter ended December 31, 2024 increased 62 basis points to 5.66%, compared to 5.04% for the quarter ended December 31, 2023. The average cost of interest-bearing liabilities increased 32 basis points for the quarter ended December 31, 2024 to 3.03%, compared to 2.71% for the fourth quarter of 2023. The average cost of interest-bearing deposits for the quarter ended December 31, 2024 was 2.81%, compared to 2.47% for the same period last year. The average cost of total deposits, including non-interest-bearing deposits, was 2.25% for the quarter ended December 31, 2024, compared with 1.95% for the quarter ended December 31, 2023. The average cost of borrowed funds for the quarter ended December 31, 2024 was 3.64%, compared to 3.71% for the same period last year.

Provision for Credit Losses on Loans

For the quarter ended December 31, 2024, the Company recorded a $7.8 million provision for credit losses related to loans, compared with a $500,000 provision for credit losses on loans for the quarter ended December 31, 2023. The increase in the provision for credit losses on loans was largely a function of the period-over-period deterioration in the economic forecast and an increase in loans from the Lakeland acquisition.

Non-Interest Income and Expense

Non-interest income totaled $24.2 million for the quarter ended December 31, 2024, an increase of $5.2 million, compared to the same period in 2023. Fee income increased $3.6 million to $9.7 million for the three months ended December 31, 2024, compared to the same period in 2023, primarily resulting from the Lakeland merger. Wealth management income increased $812,000 to $7.7 million for the three months ended December 31, 2024, compared to the same period in 2023, primarily due to an increase in the average market value of assets under management, while BOLI income increased $617,000 to $2.3 million for the three months ended December 31, 2024, compared to the same period in 2023 largely due to an increase in income related to the addition of Lakeland’s BOLI. Insurance agency income increased $530,000 to $3.3 million, for the three months ended December 31, 2024, compared to the same period in 2023, largely due to strong retention revenue and new business activity. Partially offsetting these increases to non-interest income, other income decreased $330,000 to $1.3 million for the three months ended December 31, 2024, compared to the quarter ended December 31, 2023, primarily due to a decrease in net gains on the sale of SBA loans.

Non-interest expense totaled $134.3 million for the three months ended December 31, 2024, an increase of $58.5 million, compared to $75.9 million for the three months ended December 31, 2023. Compensation and benefits expense increased $21.2 million to $59.9 million for three months ended December 31, 2024, compared to $38.8 million for the same period in 2023. The increase in compensation and benefits expense was primarily attributable to the addition of Lakeland. Additionally, merger-related expense increased $17.7 million to $20.2 million for the three months ended December 31, 2024, compared to the same period in 2023. Amortization of intangibles increased $8.8 million to $9.5 million for the three months ended December 31, 2024, compared to $721,000 for the same period in 2023, largely due to core deposit intangible amortization related to the addition of Lakeland. Net occupancy expenses increased $4.8 million to $12.6 million for the three months ended December 31, 2024, compared to the same period in 2023, primarily due to an increase in depreciation and maintenance expenses related to the addition of Lakeland. Data processing expense increased $3.4 million to $9.9 million for the three months ended December 31, 2024, compared to the same period in 2023, largely due to additional software and hardware expenses related to the addition of Lakeland, while other operating expenses increased $1.7 million to $17.4 million for the three months ended December 31, 2024, compared to the same period in 2023, largely due to an increase in professional service expenses.

The Company’s annualized adjusted non-interest expense as a percentage of average assets⁽⁴⁾ was 1.90% for the quarter ended December 31, 2024, compared to 1.98% for the same period in 2023. The efficiency ratio (adjusted non-interest expense divided by the sum of net interest income and non-interest income)⁽⁵⁾ was 55.43% for the three months ended December 31, 2024 compared to 61.32% for the same respective period in 2023.

Income Tax Expense

For the three months ended December 31, 2024, the Company’s income tax expense was $14.2 million with an effective tax rate of 22.6%, compared with $12.5 million with an effective tax rate of 31.3% for the three months ended December 31, 2023. The increase in tax expense for the three months ended December 31, 2024, compared with the three months ended December 31, 2023, was primarily due to an increase in taxable income, which was partially offset by a $4.2 million tax benefit related to the revaluation of deferred tax assets to reflect the imposition by the State of New Jersey of a 2.5% Corporate Transit Fee, effective January 1, 2024. The decrease in the effective tax rate for the three months ended December 31, 2024, compared with the three months ended December 31, 2023 was primarily due to the aforementioned $4.2 million tax benefit related to the revaluation of deferred tax assets.

Year ended December 31, 2024 compared to the year ended December 31, 2023

For the year ended December 31, 2024, net income totaled $115.5 million, or $1.05 per basic and diluted share, compared to net income of $128.4 million, or $1.71 per basic and diluted share, for the year ended December 31, 2023.

Net Interest Income and Net Interest Margin

Net interest income increased $201.2 million to $600.6 million for the year ended December 31, 2024, from $399.5 million for 2023. Net interest income for the year ended December 31, 2024 was favorably impacted by the net assets acquired from Lakeland, combined with the favorable repricing of adjustable rate loans and higher market rates on new loan originations, partially offset by the unfavorable repricing of both deposits and borrowings.

For the year ended December 31, 2024, the net interest margin increased 10 basis points to 3.26%, compared to 3.16% for 2023. The weighted average yield on interest earning assets increased 81 basis points to 5.68% for the year ended December 31, 2024, compared to 4.87% for 2023, while the weighted average cost of interest-bearing liabilities increased 81 basis points to 3.05% for the year ended December 31, 2024, compared to 2.24% last year. The average cost of interest-bearing deposits increased 84 basis points to 2.83% for the year ended December 31, 2024, compared to 1.99% in the prior year. Average non-interest-bearing demand deposits increased $792.0 million to $3.12 billion for the year ended December 31, 2024, compared with $2.33 billion for 2023. The average cost of total deposits, including non-interest-bearing deposits, was 2.26% for the year ended December 31, 2024, compared with 1.54% for 2023. The average cost of borrowings for the year ended December 31, 2024 was 3.71%, compared to 3.41% in the prior year.

Provision for Credit Losses on Loans

For the year ended December 31, 2024, the Company recorded an $83.6 million provision for credit losses related to loans, compared with a provision for credit losses of $28.2 million for 2023. The increased provision for credit losses on loans for the year ended December 31, 2024 was primarily attributable to an initial CECL provision for credit losses on loans of $60.1 million recorded as part of the Lakeland merger in accordance with GAAP requirements for accounting for business combinations, partially offset by some economic forecast improvement over the current twelve-month period within our CECL model, compared to last year.

Non-Interest Income and Expense

For the year ended December 31, 2024, non-interest income totaled $94.1 million, an increase of $14.3 million, compared to 2023. Fee income increased $9.7 million to $34.1 million for the year ended December 31, 2024, compared to 2023, primarily due to the addition of Lakeland. BOLI income increased $5.2 million to $11.7 million for the year ended December 31, 2024, compared to 2023, primarily due to an increase in benefit claims, combined with an increase in income related to the addition of Lakeland’s BOLI, while wealth management income increased $2.9 million to $30.5 million for the year ended December 31, 2024, compared to 2023, mainly due to an increase in the average market value of assets under management during the period. Additionally, insurance agency income increased $2.3 million to $16.2 million for the year ended December 31, 2024, compared to $13.9 million for 2023, largely due to increases in contingent commissions, retention revenue and new business activity. Partially offsetting these increases in non-interest income, net gains on securities transactions decreased $3.0 million for the year ended December 31, 2024, primarily due to a $2.8 million loss related to the sale from the Provident investment portfolio of subordinated debt issued by Lakeland. Additionally, other income decreased $2.8 million to $4.5 million for the year ended December 31, 2024, compared to $7.3 million for 2023, primarily due to a $2.0 million gain from the sale of a foreclosed commercial property recorded in the prior year, combined with a decrease in gains on sales of SBA loans in the current year.

Non-interest expense totaled $457.5 million for the year ended December 31, 2024, an increase of $182.2 million, compared to $275.3 million for 2023. Compensation and benefits expense increased $69.8 million to $218.3 million for the year ended December 31, 2024, compared to $148.5 million for 2023. The increase in compensation and benefits expense was primarily attributable to the addition of Lakeland. Merger-related expenses increased $49.0 million to $56.9 million for the year ended December 31, 2024, compared to $7.8 million for 2023. Amortization of intangibles increased $26.0 million to $28.9 million for the year ended December 31, 2024, compared to $3.0 million for 2023, largely due to core deposit intangible amortization related to the addition of Lakeland. Net occupancy expense increased $12.7 million to $45.0 million for the year ended December 31, 2024, compared to 2023, primarily due to increases in depreciation and maintenance expense related to the addition of Lakeland, while data processing expense increased $12.6 million to $35.6 million for the year ended December 31, 2024, compared to $23.0 million for 2023, primarily due to additional software and hardware expenses related to the addition of Lakeland. Other operating expenses increased $7.3 million to $54.7 million for the year ended December 31, 2024, compared to $47.4 million for 2023, primarily due to increases in consulting and other professional service expenses, while FDIC insurance increased $4.4 million to $13.0 million for the year ended December 31, 2024, primarily due to the addition of Lakeland.

Income Tax Expense

For the year ended December 31, 2024, the Company’s income tax expense was $34.1 million with an effective tax rate of 22.8%, compared with $47.4 million with an effective tax rate of 27.0% for 2023. The decrease in tax expense for the year ended December 31, 2024, compared with last year was largely due to a $10.0 million tax benefit related to the revaluation of deferred tax assets to reflect the imposition by the State of New Jersey of a 2.5% Corporate Transit Fee, effective January 1, 2024, combined with a decrease in taxable income as a result of the initial CECL provision for credit losses on loans of $60.1 million recorded in accordance with GAAP requirements for accounting for business combinations and additional expenses from the Lakeland merger.

Asset Quality

The Company’s total non-performing loans at December 31, 2024 were $72.1 million, or 0.39% of total loans, compared to $89.9 million or 0.47% of total loans at September 30, 2024 and $49.6 million, or 0.46% of total loans at December 31, 2023. The $17.9 million decrease in non-performing loans at December 31, 2024, compared to the trailing quarter, consisted of a $24.3 million decrease in non-performing commercial loans and a $676,000 decrease in non-performing residential loans, partially offset by a $6.9 million increase in non-performing commercial mortgage loans and a $223,000 increase in non-performing consumer loans. As of December 31, 2024, impaired loans totaled $55.4 million with related specific reserves of $7.5 million, compared with impaired loans totaling $74.0 million with related specific reserves of $7.2 million as of September 30, 2024. As of December 31, 2023, impaired loans totaled $42.3 million with related specific reserves of $2.9 million.

At December 31, 2024, the Company’s allowance for credit losses related to the loan portfolio was 1.04% of total loans, compared to 1.02% and 0.99% at September 30, 2024 and December 31, 2023, respectively. The allowance for credit losses increased $88.0 million to $193.4 million at December 31, 2024, from $107.2 million at December 31, 2023. The increase in the allowance for credit losses on loans at December 31, 2024 compared to December 31, 2023 was due to an $83.6 million provision for credit losses on loans, which included an initial CECL provision of $60.1 million on loans acquired from Lakeland, and a $17.2 million allowance recorded through goodwill related to Purchased Credit Deteriorated loans acquired from Lakeland, partially offset by net charge-offs of $14.6 million.

The following table sets forth accruing past due loans and non-accrual loans on the dates indicated, as well as certain asset quality ratios.

	December 31, 2024				September 30, 2024				December 31, 2023
	Number of Loans	Principal Balance of Loans			Number of Loans	Principal Balance of Loans			Number of Loans	Principal Balance of Loans
	(Dollars in thousands)
Accruing past due loans:
30 to 59 days past due:
Commercial mortgage loans	7	$	8,538		2	$	430		1	$	825
Multi-family mortgage loans	—		—		—		—		1		3,815
Construction loans	—		—		—		—		—		—
Residential mortgage loans	22		6,388		23		5,020		13		3,429
Total mortgage loans	29		14,926		25		5,450		15		8,069
Commercial loans	23		4,248		14		1,952		6		998
Consumer loans	47		3,152		53		4,073		31		875
Total 30 to 59 days past due	99	$	22,326		92	$	11,475		52	$	9,942

60 to 89 days past due:
Commercial mortgage loans	4	$	3,954		1	$	641		—	$	—
Multi-family mortgage loans	—		—		—		—		1		1,635
Construction loans	—		—		—		—		—		—
Residential mortgage loans	17		5,049		11		1,991		8		1,208
Total mortgage loans	21		9,003		12		2,632		9		2,843
Commercial loans	9		2,377		9		1,240		3		198
Consumer loans	15		856		10		606		5		275
Total 60 to 89 days past due	45		12,236		31		4,478		17		3,316
Total accruing past due loans	144	$	34,562		123	$	15,953		69	$	13,258

Non-accrual:
Commercial mortgage loans	17	$	20,883		17	$	13,969		7	$	5,151
Multi-family mortgage loans	6		7,498		6		7,578		1		744
Construction loans	2		13,246		2		13,151		1		771
Residential mortgage loans	23		4,535		24		5,211		7		853
Total mortgage loans	48		46,162		49		39,909		16		7,519
Commercial loans	65		24,243		69		48,592		26		41,487
Consumer loans	23		1,656		32		1,433		10		633
Total non-accrual loans	136	$	72,061		150	$	89,934		52	$	49,639

Non-performing loans to total loans			0.39	%			0.47	%			0.46	%
Allowance for loan losses to total non-performing loans			268.43	%			217.09	%			215.96	%
Allowance for loan losses to total loans			1.04	%			1.02	%			0.99	%

At December 31, 2024 and December 31, 2023, the Company held foreclosed assets of $9.5 million and $11.7 million, respectively. During the year ended December 31, 2024, there were four properties sold with an aggregate carrying value of $861,000 and one write-down of a foreclosed commercial property of $1.3 million. Foreclosed assets at December 31, 2024 consisted primarily of commercial real estate. Total non-performing assets at December 31, 2024 increased $20.2 million to $81.5 million, or 0.34% of total assets, from $61.3 million, or 0.43% of total assets at December 31, 2023.

Balance Sheet Summary

Total assets at December 31, 2024 were $24.05 billion, a $13.78 billion increase from December 31, 2023. The increase in total assets was primarily due to the addition of Lakeland.

The Company’s loans held for investment portfolio totaled $18.66 billion at December 31, 2024 and $10.87 billion at December 31, 2023. The loan portfolio consists of the following:

		December 31, 2024			September 30, 2024			December 31, 2023
		(Dollars in thousands)
Mortgage loans:
Commercial		$	7,228,078		$	7,342,456		$	4,512,411
Multi-family			3,382,933			3,226,918			1,812,500
Construction			823,503			873,509			653,246
Residential			2,014,844			2,032,671			1,164,956
	Total mortgage loans		13,449,358			13,475,554			8,143,113
Commercial loans			4,604,367			4,710,601			2,440,621
Consumer loans			613,819			623,709			299,164
	Total gross loans		18,667,544			18,809,864			10,882,898
Premiums on purchased loans			1,338			1,362			1,474
Net deferred fees and unearned discounts			(9,512	)		(16,617	)		(12,456	)
	Total loans	$	18,659,370		$	18,794,609		$	10,871,916

As part of the merger with Lakeland, we acquired $7.91 billion in loans, net of purchase accounting adjustments. For the year ended December 31, 2024, the Company experienced net increases of $1.57 billion in multi-family loans, $2.16 billion in commercial loans and $2.72 billion in commercial mortgage loans, partially offset by net decreases of $170.3 million in construction loans and net decreases in residential mortgage and consumer loans of $849.9 million and $314.7 million, respectively. Commercial loans, consisting of commercial real estate, multi-family, commercial and construction loans, represented 85.9% of the loan portfolio at December 31, 2024, compared to 86.5% at December 31, 2023.

For the year ended December 31, 2024, loan funding, including advances on lines of credit, totaled $4.73 billion, compared with $3.34 billion for the same period in 2023.

At December 31, 2024, the Company’s unfunded loan commitments totaled $2.73 billion, including commitments of $1.62 billion in commercial loans, $608.1 million in construction loans and $85.1 million in commercial mortgage loans. Unfunded loan commitments at September 30, 2024 and December 31, 2023 totaled $2.97 billion and $2.09 billion, respectively.

The loan pipeline, consisting of work-in-process and loans approved pending closing, totaled $1.79 billion at December 31, 2024, compared to $1.98 billion at September 30, 2024 and $1.70 billion at December 31, 2023.

Total investment securities were $3.21 billion at December 31, 2024, a $2.26 billion increase from December 31, 2023. This increase was primarily due to the addition of Lakeland.

Total deposits increased $10.56 billion during the year ended December 31, 2024, to $18.62 billion. Total savings and demand deposit accounts increased $6.26 billion to $15.46 billion at December 31, 2024, while total time deposits increased $2.07 billion to $3.17 billion at December 31, 2024. The increase in savings and demand deposits was largely attributable to a $3.13 billion increase in interest-bearing demand deposits, a $1.59 billion increase in non-interest-bearing demand deposits, a $1.04 billion increase in money market deposits and a $504.0 million increase in savings deposits. The increase in time deposits consisted of a $1.98 billion increase in retail time deposits and a $91.1 million increase in brokered time deposits.

Borrowed funds increased $1.34 billion during the year ended December 31, 2024, to $2.02 billion. The increase in borrowings was largely due to the addition of Lakeland. Borrowed funds represented 8.4% of total assets at December 31, 2024, an decrease from 13.9% at December 31, 2023.

Stockholders’ equity increased $1.60 billion during the year ended December 31, 2024, to $2.60 billion, primarily due to common stock issued for the purchase of Lakeland, net income earned for the period and a slight improvement in unrealized losses on available for sale debt securities, partially offset by cash dividends paid to stockholders. For the year ended December 31, 2024, common stock repurchases totaled 89,569 shares at an average cost of $14.90 per share, all of which were made in connection with withholding to cover income taxes on the vesting of stock-based compensation. At December 31, 2024, approximately 3.1 million shares remained eligible for repurchase under the current stock repurchase authorization. Book value per share and tangible book value per share⁽⁶⁾ at December 31, 2024 were $19.93 and $13.66, respectively, compared with $22.38 and $16.32, respectively, at December 31, 2023.

About the Company

Provident Financial Services, Inc. is the holding company for Provident Bank, a community-oriented bank offering “commitment you can count on” since 1839. Provident Bank provides a comprehensive array of financial products and services through its network of branches throughout New Jersey, Bucks, Lehigh and Northampton counties in Pennsylvania, as well as Orange, Queens and Nassau Counties in New York. The Bank also provides fiduciary and wealth management services through its wholly owned subsidiary, Beacon Trust Company and insurance services through its wholly owned subsidiary, Provident Protection Plus, Inc.

Post Earnings Conference Call

Representatives of the Company will hold a conference call for investors on Wednesday, January 29, 2025 at 10:00 a.m. Eastern Time to discuss the Company’s financial results for the quarter and year ended December 31, 2024. The call may be accessed by dialing 1-888-412-4131 (United States Toll Free) and 1-646-960-0134 (United States Local). Speakers will need to enter conference ID code (3610756) before being met by a live operator. Internet access to the call is also available (listen only) at provident.bank by going to Investor Relations and clicking on “Webcast.”

Forward Looking Statements

Certain statements contained herein are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements may be identified by reference to a future period or periods, or by the use of forward-looking terminology, such as “may,” “will,” “believe,” “expect,” “estimate,” “project,” “intend,” “anticipate,” “continue,” or similar terms or variations on those terms, or the negative of those terms. Forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to, those set forth in Item 1A of the Company’s Annual Report on Form 10-K, as supplemented by its Quarterly Reports on Form 10-Q, and those related to the economic environment, particularly in the market areas in which the Company operates, inflation and unemployment, competitive products and pricing, real estate values, fiscal and monetary policies of the U.S. Government, the effects of the recent turmoil in the banking industry, changes in accounting policies and practices that may be adopted by the regulatory agencies and the accounting standards setters, changes in government regulations affecting financial institutions, including regulatory fees and capital requirements, changes in prevailing interest rates, potential goodwill impairment, acquisitions and the integration of acquired businesses, credit risk management, asset-liability management, the financial and securities markets, the availability of and costs associated with sources of liquidity, the ability to complete, or any delays in completing, the pending merger between the Company and Lakeland; any failure to realize the anticipated benefits of the transaction when expected or at all; the possibility that the transaction may be more expensive to complete than anticipated, including as a result of unexpected conditions, factors or events; potential adverse reactions or changes to business, employee, customer and/or counterparty relationships, including those resulting from the completion of the merger and integration of the companies; and the impact of a potential shutdown of the federal government.

The Company cautions readers not to place undue reliance on any such forward-looking statements which speak only as of the date they are made. The Company advises readers that the factors listed above could affect the Company’s financial performance and could cause the Company’s actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements. The Company does not assume any duty, and does not undertake, to update any forward-looking statements to reflect events or circumstances after the date of this statement.

Footnotes

⁽¹⁾ Annualized adjusted pre-tax, pre-provision return on average assets, annualized return on average tangible equity, tangible book value per share, annualized adjusted non-interest expense as a percentage of average assets and the efficiency ratio are non-GAAP financial measures. Please refer to the Notes following the Consolidated Financial Highlights which contain the reconciliation of GAAP to non-GAAP financial measures and the associated calculations.

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Consolidated Financial Highlights
(Dollars in Thousands, except share data) (Unaudited)

	At or for the Three months ended									At or for the Year ended
	December 31,			September 30,			December 31,			December 31,			December 31,
		2024			2024			2023			2024			2023
Statement of Income
Net interest income	$	181,737		$	183,701		$	95,788		$	600,614		$	399,454
Provision for credit losses		8,880			9,299			(863	)		87,564			28,168
Non-interest income		24,175			26,855			18,968			94,113			79,829
Non-interest expense		134,323			136,002			75,851			457,548			275,336
Income before income tax expense		62,709			65,255			39,768			149,615			175,779
Net income		48,524			46,405			27,312			115,525			128,398
Diluted earnings per share	$	0.37		$	0.36		$	0.36		$	1.05		$	1.71
Interest rate spread		2.63	%		2.65	%		2.33	%		2.63	%		2.63	%
Net interest margin		3.28	%		3.31	%		2.92	%		3.26	%		3.16	%

Profitability
Annualized return on average assets		0.81	%		0.76	%		0.77	%		0.57	%		0.92	%
Annualized adjusted return on average assets ⁽¹⁾		1.05	%		0.95	%		0.83	%		0.78	%		0.97	%
Annualized return on average equity		7.36	%		6.94	%		6.60	%		5.07	%		7.81	%
Annualized adjusted return on average equity ⁽¹⁾		9.53	%		8.62	%		7.10	%		6.95	%		8.22	%
Annualized return on average tangible equity ⁽³⁾		12.21	%		12.06	%		9.32	%		8.58	%		11.01	%
Annualized adjusted return on average tangible equity ⁽¹⁾		15.39	%		14.53	%		9.99	%		11.29	%		11.54	%
Annualized adjusted non-interest expense to average assets ⁽⁴⁾		1.90	%		1.98	%		1.98	%		1.97	%		1.90	%
Efficiency ratio ⁽⁴⁾		55.43	%		57.20	%		61.32	%		57.67	%		55.19	%

Asset Quality
Non-accrual loans				$	89,934					$	72,061		$	49,639
90+ and still accruing					—						—			—
Non-performing loans					88,061						72,061			49,639
Foreclosed assets					9,801						9,473			11,651
Non-performing assets					97,862						81,534			61,290
Non-performing loans to total loans					0.47	%					0.39	%		0.46	%
Non-performing assets to total assets					0.41	%					0.34	%		0.43	%
Allowance for loan losses				$	191,175					$	193,432		$	107,200
Allowance for loan losses to total non-performing loans					217.09	%					268.43	%		215.96	%
Allowance for loan losses to total loans					1.02	%					1.04	%		0.99	%
Net loan charge-offs	$	5,493			6,756		$	4,010		$	14,560		$	8,129
Annualized net loan charge offs to average total loans		0.12	%		0.14	%		0.16	%		0.09	%		0.08	%

Average Balance Sheet Data
Assets	$	23,908,514		$	24,248,038		$	14,114,626		$	20,382,148		$	13,915,467
Loans, net		18,487,443			18,531,939			10,660,201			15,600,431			10,367,620
Earning assets		21,760,458			21,809,226			12,823,541			18,403,149			12,637,224
Savings and demand deposits		15,581,608			15,394,715			9,210,315			13,103,803			9,358,290
Borrowings		1,711,806			2,125,149			1,873,822			1,983,674			1,636,572
Interest-bearing liabilities		17,093,382			17,304,569			10,020,726			14,596,325			9,671,794
Stockholders’ equity		2,624,019			2,660,470			1,642,854			2,279,525			1,644,529
Average yield on interest-earning assets		5.66	%		5.84	%		5.04	%		5.68	%		4.87	%
Average cost of interest-bearing liabilities		3.03	%		3.19	%		2.71	%		3.05	%		2.24	%

Notes and Reconciliation of GAAP and Non-GAAP Financial Measures
(Dollars in Thousands, except share data)

The Company has presented the following non-GAAP (U.S. Generally Accepted Accounting Principles) financial measures because it believes that these measures provide useful and comparative information to assess trends in the Company’s results of operations and financial condition. Presentation of these non-GAAP financial measures is consistent with how the Company evaluates its performance internally and these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the Company’s industry. Investors should recognize that the Company’s presentation of these non-GAAP financial measures might not be comparable to similarly-titled measures of other companies. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures and the Company strongly encourages a review of its condensed consolidated financial statements in their entirety.

(1) Annualized Adjusted Return on Average Assets, Equity and Tangible Equity
	Three Months Ended									Year Ended
	December 31,			September 30,			December 31,			December 31,			December 31,
	2024			2024			2023			2024			2023
Net Income	$	48,524		$	46,405		$	27,312		$	115,525		$	128,398
Merger-related transaction costs		20,184			15,567			2,477			56,867			7,826
Less: income tax expense		(5,819	)		(4,306	)		(465	)		(14,010	)		(1,480	)
Annualized adjusted net income	$	62,889		$	57,666		$	29,324		$	158,382		$	134,744
Less: Amortization of Intangibles (net of tax)	$	6,649		$	8,551		$	504		$	20,226		$	2,064
Annualized adjusted net income for annualized adjusted return on average tangible equity	$	69,538		$	66,216		$	29,828		$	178,607		$	136,808

Annualized Adjusted Return on Average Assets		1.05	%		0.95	%		0.83	%		0.78	%		0.97	%
Annualized Adjusted Return on Average Equity		9.53	%		8.62	%		7.10	%		6.95	%		8.22	%
Annualized Adjusted Return on Average Tangible Equity		15.39	%		14.53	%		9.99	%		11.29	%		11.54	%

(2) Annualized adjusted pre-tax, pre-provision (“PTPP”) returns on average assets, average equity and average tangible equity
	Three Months Ended									Year Ended
	December 31,			September 30,			December 31,			December 31,			December 31,
		2024			2024			2023			2024			2023
Net income	$	48,524		$	46,405		$	27,312		$	115,525		$	128,398
Adjustments to net income:
Provision charge (benefit) for credit losses		8,880			9,299			(863	)		87,564			28,168
Net loss on Lakeland bond sale		—			—			—			2,839			—
Merger-related transaction costs		20,184			15,567			2,477			56,867			7,826
Contingent litigation reserves		—			—			3,000			—			3,000
Income tax expense		14,185			18,850			12,456			34,090			47,381
Adjusted PTPP income	$	91,773		$	90,121		$	44,382		$	296,885		$	214,773

Annualized Adjusted PTPP income	$	365,097		$	358,525		$	176,081		$	296,885		$	214,773
Average assets	$	23,908,514		$	24,248,038		$	14,114,626		$	20,382,148		$	13,915,467
Average equity	$	2,624,019		$	2,660,470		$	1,642,854		$	2,279,525		$	1,644,529
Average tangible equity	$	1,797,994		$	1,813,327		$	1,184,444		$	1,581,339		$	1,185,026

Annualized Adjusted PTPP return on average assets		1.53	%		1.48	%		1.25	%		1.46	%		1.54	%
Annualized PTPP return on average equity		13.91	%		13.48	%		10.72	%		13.02	%		13.06	%
Annualized PTPP return on average tangible equity		20.31	%		19.77	%		14.87	%		18.77	%		18.12	%

(3) Annualized Return on Average Tangible Equity
	Three Months Ended									Year Ended
	December 31,			September 30,			December 31,			December 31,			December 31,
		2024			2024			2023			2024			2023
Total average stockholders’ equity	$	2,624,019		$	2,660,470		$	1,642,854		$	2,279,525		$	1,644,529
Less: total average intangible assets		826,025			847,143			458,410			698,186			459,503
Total average tangible stockholders’ equity	$	1,797,994		$	1,813,327		$	1,184,444		$	1,581,339		$	1,185,026

Net income	$	48,524		$	46,405		$	27,312		$	115,525		$	128,398
Less: Amortization of Intangibles, net of tax		6,649			8,551			504			20,226			2,064
Total net income (loss)	$	55,173		$	54,956		$	27,816		$	135,751		$	130,462

Annualized return on average tangible equity (net income/total average tangible stockholders’ equity)		12.21	%		12.06	%		9.32	%		8.58	%		11.01	%

(4) Annualized Adjusted Non-Interest Expense to Average Assets
	Three Months Ended									Year Ended
	December 31,			September 30,			December 31,			December 31,			December 31,
		2024			2024			2023			2024			2023
Reported non-interest expense	$	134,323		$	136,002		$	75,851		$	457,548		$	275,336
Adjustments to non-interest expense:
Merger-related transaction costs		20,184			15,567			2,477			56,867			7,826
Contingent litigation reserves		—			—			3,000			—			3,000
Adjusted non-interest expense	$	114,139		$	120,435		$	70,374		$	400,681		$	264,510

Annualized adjusted non-interest expense	$	454,075		$	479,122		$	279,201		$	400,681		$	264,510
Average assets	$	23,908,514		$	24,248,038		$	14,114,626		$	20,382,148		$	13,915,467
Annualized adjusted non-interest expense/average assets		1.90	%		1.98	%		1.98	%		1.97	%		1.90	%

(5) Efficiency Ratio Calculation
	Three Months Ended									Year Ended
	December 31,			September 30,			December 31,			December 31,			December 31,
		2024			2024			2023			2024			2023
Net interest income	$	181,737		$	183,701		$	95,788		$	600,614		$	399,454
Non-interest income		24,175			26,855			18,968			94,113			79,829
Adjustments to non-interest income:
Net loss (gain) on securities transactions		14			(2	)		7			2,986			(30	)
Adjusted non-interest income		24,189			26,853			18,975			97,099			79,799
Total income	$	205,912		$	210,554		$	114,756		$	694,727		$	479,283

Adjusted non-interest expense	$	114,139		$	120,435		$	70,374		$	400,681		$	264,510

Efficiency ratio (adjusted non-interest expense/income)		55.43	%		57.20	%		61.32	%		57.67	%		55.19	%

(6) Book and Tangible Book Value per Share
										December 31,			December 31,
											2024			2023
Total stockholders’ equity										$	2,601,207		$	1,690,596
Less: total intangible assets											819,230			457,942
Total tangible stockholders’ equity										$	1,781,977		$	1,232,654

Shares outstanding											130,489,493			75,537,186

Book value per share (total stockholders’ equity/shares outstanding)										$	19.93		$	22.38
Tangible book value per share (total tangible stockholders’ equity/shares outstanding)										$	13.66		$	16.32

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Consolidated Statements of Financial Condition
December 31, 2024 (Unaudited) and December 31, 2023
(Dollars in Thousands)

Assets	December 31, 2024			December 31, 2023
Cash and due from banks	$	166,914		$	180,241
Short-term investments		25			14
Total cash and cash equivalents		166,939			180,255
Available for sale debt securities, at fair value		2,768,915			1,690,112
Held to maturity debt securities, (net of $14,000 allowance as of December 31, 2024 (unaudited) and $31,000 allowance as of December 31, 2023)		327,623			363,080
Equity securities, at fair value		19,762			1,270
Federal Home Loan Bank stock		112,115			79,217
Loans held for sale		162,453			1,785
Loans held for investment		18,659,370			10,871,916
Less allowance for credit losses		193,432			107,200
Net loans		18,628,391			10,766,501
Foreclosed assets, net		9,473			11,651
Banking premises and equipment, net		119,622			70,998
Accrued interest receivable		91,160			58,966
Intangible assets		819,230			457,942
Bank-owned life insurance		405,893			243,050
Other assets		582,702			287,768
Total assets	$	24,051,825		$	14,210,810

Liabilities and Stockholders’ Equity
Deposits:
Demand deposits	$	13,775,991		$	8,020,889
Savings deposits		1,679,667			1,175,683
Certificates of deposit of $250,000 or more		789,342			218,549
Other time deposits		2,378,813			877,393
Total deposits		18,623,813			10,292,514
Mortgage escrow deposits		42,247			36,838
Borrowed funds		2,020,435			1,970,033
Subordinated debentures		401,608			10,695
Other liabilities		362,515			210,134
Total liabilities		21,450,618			12,520,214

Stockholders’ equity:
Preferred stock, $0.01 par value, 50,000,000 shares authorized, none issued		—			—
Common stock, $0.01 par value, 200,000,000 shares authorized, 137,565,966 shares issued and 130,489,493 shares outstanding as of December 31, 2024 and 75,537,186 outstanding as of December 31, 2023.		1,376			832
Additional paid-in capital		1,834,495			989,058
Retained earnings		989,111			974,542
Accumulated other comprehensive loss		(135,355	)		(141,115	)
Treasury stock		(88,420	)		(127,825	)
Unallocated common stock held by the Employee Stock Ownership Plan		—			(4,896	)
Common Stock acquired by the Directors’ Deferred Fee Plan		—			(2,694	)
Deferred Compensation – Directors’ Deferred Fee Plan		—			2,694
Total stockholders’ equity		2,601,207			1,690,596
Total liabilities and stockholders’ equity	$	24,051,825		$	14,210,810

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Consolidated Statements of Income
Three months ended December 31, 2024, September 30, 2024 (Unaudited) and December 31, 2023, and year ended December 31, 2024 (Unaudited) and 2023
(Dollars in Thousands, except per share data)

	Three Months Ended								Year Ended
	December 31,			September 30,		December 31,			December 31,			December 31,
		2024			2024		2023			2024			2023
Interest and dividend income:
Real estate secured loans	$	194,236		$	197,857	$	109,112		$	655,868		$	408,942
Commercial loans		75,978			81,183		34,939			251,793			128,854
Consumer loans		10,815			12,947		5,020			36,635			18,439
Available for sale debt securities, equity securities and Federal Home Loan Bank stock		27,197			25,974		12,042			85,895			46,790
Held to maturity debt securities		2,125			2,136		2,303			8,885			9,362
Deposits, federal funds sold and other short-term investments		1,596			2,425		755			7,062			3,433
Total interest income		311,947			322,522		164,171			1,046,138			615,820

Interest expense:
Deposits		105,922			110,009		50,579			349,523			159,459
Borrowed funds		15,652			19,923		17,527			73,523			55,856
Subordinated debt		8,636			8,889		277			22,478			1,051
Total interest expense		130,210			138,821		68,383			445,524			216,366
Net interest income		181,737			183,701		95,788			600,614			399,454
Provision charge (benefit) for credit losses		8,880			9,299		(863	)		87,564			28,168
Net interest income after provision for credit losses		172,857			174,402		96,651			513,050			371,286

Non-interest income:
Fees		9,687			9,816		6,102			34,114			24,396
Wealth management income		7,655			7,620		6,843			30,533			27,669
Insurance agency income		3,289			3,631		2,759			16,201			13,934
Bank-owned life insurance		2,261			4,308		1,644			11,709			6,482
Net (loss) gain on securities transactions		(14	)		2		(7	)		(2,986	)		30
Other income		1,297			1,478		1,627			4,542			7,318
Total non-interest income		24,175			26,855		18,968			94,113			79,829

Non-interest expense:
Compensation and employee benefits		59,937			63,468		38,773			218,341			148,497
Net occupancy expense		12,562			12,790		7,797			45,014			32,271
Data processing expense		9,881			10,481		6,457			35,579			22,993
FDIC Insurance		3,411			4,180		2,890			12,964			8,578
Amortization of intangibles		9,511			12,231		721			28,931			2,952
Advertising and promotion expense		1,485			1,524		1,100			5,146			4,822
Merger-related expenses		20,184			15,567		2,477			56,867			7,826
Other operating expenses		17,352			15,761		15,636			54,706			47,397
Total non-interest expense		134,323			136,002		75,851			457,548			275,336
Income before income tax expense		62,709			65,255		39,768			149,615			175,779
Income tax expense		14,185			18,850		12,456			34,090			47,381
Net income	$	48,524		$	46,405	$	27,312		$	115,525		$	128,398

Basic earnings per share	$	0.37		$	0.36	$	0.36		$	1.05		$	1.72
Average basic shares outstanding		130,067,244			129,941,845		74,995,705			109,668,911			74,844,489

Diluted earnings per share	$	0.37		$	0.36	$	0.36		$	1.05		$	1.71
Average diluted shares outstanding		130,163,872			130,004,870		75,041,545			109,712,732			74,873,256

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Net Interest Margin Analysis
Quarterly Average Balances
(Dollars in Thousands) (Unaudited)

	December 31, 2024						September 30, 2024						December 31, 2023
	Average Balance		Interest		Average Yield/Cost		Average Balance		Interest		Average Yield/Cost		Average Balance		Interest		Average Yield/Cost
Interest-Earning Assets:
Deposits	$	117,998	$	1,596	5.38	%	$	179,313	$	2,425	5.38	%	$	54,998	$	745	5.37	%
Federal funds sold and other short-term investments		—		—	—	%		—		—	—	%		838		10	4.39	%
Available for sale debt securities		2,720,065		25,063	3.69	%		2,644,262		24,884	3.72	%		1,647,906		9,858	2.39	%
Held to maturity debt securities, net ⁽¹⁾		328,147		2,125	2.59	%		342,217		2,136	2.50	%		364,433		2,303	2.53	%
Equity securities, at fair value		19,920		—	—	%		19,654		—	—	%		1,016		—	—	%
Federal Home Loan Bank stock		86,885		2,134	9.82	%		91,841		1,090	4.75	%		94,149		2,184	9.28	%
Net loans: ⁽²⁾
Total mortgage loans		13,287,942		194,236	5.75	%		13,363,265		197,857	5.83	%		8,028,300		109,112	5.34	%
Total commercial loans		4,587,048		75,978	6.54	%		4,546,088		81,183	7.05	%		2,329,430		34,939	5.90	%
Total consumer loans		612,453		10,815	7.02	%		622,586		12,947	8.27	%		302,471		5,020	6.58	%
Total net loans		18,487,443		281,029	5.99	%		18,531,939		291,987	6.21	%		10,660,201		149,071	5.50	%
Total interest-earning assets	$	21,760,458	$	311,947	5.66	%	$	21,809,226	$	322,522	5.84	%	$	12,823,541	$	164,171	5.04	%

Non-Interest Earning Assets:
Cash and due from banks		159,151						341,505						111,610
Other assets		1,988,905						2,097,307						1,179,475
Total assets	$	23,908,514					$	24,248,038					$	14,114,626

Interest-Bearing Liabilities:
Demand deposits	$	10,115,827	$	71,265	2.80	%	$	9,942,053	$	74,864	3.00	%	$	5,856,916	$	39,648	2.69	%
Savings deposits		1,677,725		968	0.23	%		1,711,502		1006	0.23	%		1,183,857		602	0.20	%
Time deposits		3,187,172		33,689	4.21	%		3,112,598		34,139	4.36	%		1,095,468		10,329	3.74	%
Total Deposits		14,980,724		105,922	2.81	%		14,766,153		110,009	2.96	%		8,136,241		50,579	2.47	%
Borrowed funds		1,711,806		15,652	3.64	%		2,125,149		19,923	3.73	%		1,873,822		17,527	3.71	%
Subordinated debentures		400,852		8,636	8.57	%		413,267		8,889	8.56	%		10,663		277	10.27	%
Total interest-bearing liabilities		17,093,382		130,210	3.03	%		17,304,569		138,821	3.19	%		10,020,726		68,383	2.71	%

Non-Interest Bearing Liabilities:
Non-interest bearing deposits		3,788,056						3,741,160						2,169,542
Other non-interest bearing liabilities		403,057						541,839						281,504
Total non-interest bearing liabilities		4,191,113						4,282,999						2,451,046
Total liabilities		21,284,495						21,587,568						12,471,772
Stockholders’ equity		2,624,019						2,660,470						1,642,854
Total liabilities and stockholders’ equity	$	23,908,514					$	24,248,038					$	14,114,626

Net interest income			$	181,737					$	183,701					$	95,788
Net interest rate spread					2.63	%					2.65	%					2.33	%
Net interest-earning assets	$	4,667,076					$	4,504,657					$	2,802,815
Net interest margin ⁽³⁾					3.28	%					3.31	%					2.92	%
Ratio of interest-earning assets to total interest-bearing liabilities	1.27x						1.26x						1.28x


(1	)	Average outstanding balance amounts shown are amortized cost, net of allowance for credit losses.
(2	)	Average outstanding balances are net of the allowance for loan losses, deferred loan fees and expenses, loan premiums and discounts and include non-accrual loans.
(3	)	Annualized net interest income divided by average interest-earning assets.

The following table summarizes the quarterly net interest margin for the previous five quarters.

	12/31/24		9/30/24		6/30/24		3/31/24		12/31/23
	4th Qtr.		3rd Qtr.		2nd Qtr.		1st Qtr.		4th Qtr.
Interest-Earning Assets:
Securities	3.78	%	3.69	%	3.40	%	2.87	%	2.79	%
Net loans	5.99	%	6.21	%	6.05	%	5.51	%	5.50	%
Total interest-earning assets	5.66	%	5.84	%	5.67	%	5.06	%	5.04	%

Interest-Bearing Liabilities:
Total deposits	2.81	%	2.96	%	2.84	%	2.60	%	2.47	%
Total borrowings	3.64	%	3.73	%	3.83	%	3.60	%	3.71	%
Total interest-bearing liabilities	3.03	%	3.19	%	3.09	%	2.80	%	2.71	%

Interest rate spread	2.63	%	2.65	%	2.58	%	2.26	%	2.33	%
Net interest margin	3.28	%	3.31	%	3.21	%	2.87	%	2.92	%

Ratio of interest-earning assets to interest-bearing liabilities	1.27x		1.26x		1.25x		1.28x		1.28x

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Net Interest Margin Analysis
Average Year to Date Balances
(Dollars in Thousands) (Unaudited)

	December 31, 2024						December 31, 2023
	Average				Average		Average				Average
	Balance		Interest		Yield/Cost		Balance		Interest		Yield/Cost
Interest-Earning Assets:
Deposits	$	36,932	$	7,062	5.23	%	$	65,991	$	3,421	5.18	%
Federal funds sold and other short-term investments		—		—	—	%		255		12	4.55	%
Available for sale debt securities		2,323,158		77,617	3.32	%		1,745,105		40,678	2.33	%
Held to maturity debt securities, net ⁽¹⁾		344,903		8,885	2.58	%		375,436		9,362	2.49	%
Equity securities, at fair value		12,367		—	—	%		1,020		—	—	%
Federal Home Loan Bank stock		85,358		8,278	9.70	%		81,797		6,112	7.47	%
Net loans: ⁽²⁾
Total mortgage loans		11,333,540		655,868	5.79	%		7,813,764		408,942	5.23	%
Total commercial loans		3,768,388		251,793	6.68	%		2,251,175		128,854	5.72	%
Total consumer loans		498,503		36,635	7.35	%		302,681		18,439	6.09	%
Total net loans		15,600,431		944,296	6.05	%		10,367,620		556,235	5.37	%
Total interest-earning assets	$	18,403,149	$	1,046,138	5.68	%	$	12,637,224	$	615,820	4.87	%

Non-Interest Earning Assets:
Cash and due from banks		233,829						119,232
Other assets		1,745,170						1,159,011
Total assets	$	20,382,148					$	13,915,467

Interest-Bearing Liabilities:
Demand deposits	$	8,480,380	$	245,874	2.90	%	$	5,747,671	$	125,471	2.18	%
Savings deposits		1,502,852		3,443	0.23	%		1,282,062		2,184	0.17	%
Time deposits		2,367,144		100,206	4.23	%		994,901		31,804	3.20	%
Total deposits		12,350,376		349,523	2.83	%		8,024,634		159,459	1.99	%
Borrowed funds		1,983,674		73,523	3.71	%		1,636,572		55,856	3.41	%
Subordinated debentures		262,275		22,478	8.57	%		10,588		1,051	9.92	%
Total interest-bearing liabilities	$	14,596,325	$	445,524	3.05	%	$	9,671,794	$	216,366	2.24	%

Non-Interest Bearing Liabilities:
Non-interest bearing deposits		3,120,571						2,328,557
Other non-interest bearing liabilities		385,727						270,587
Total non-interest bearing liabilities		3,506,298						2,599,144
Total liabilities		18,102,623						12,270,938
Stockholders’ equity		2,279,525						1,644,529
Total liabilities and stockholders’ equity	$	20,382,148					$	13,915,467

Net interest income			$	600,614					$	399,454
Net interest rate spread					2.63	%					2.63	%
Net interest-earning assets	$	3,806,824					$	2,965,430
Net interest margin ⁽³⁾					3.26	%					3.16	%
Ratio of interest-earning assets to total interest-bearing liabilities	1.26x						1.31x


(1) Average outstanding balance amounts shown are amortized cost, net of allowance for credit losses.
(2) Average outstanding balance are net of the allowance for loan losses, deferred loan fees and expenses, loan premium and discounts and include non-accrual loans.
(3) Annualized net interest income divided by average interest-earning assets.

The following table summarizes the year-to-date net interest margin for the previous three years.

	Year Ended
	December 31, 2024		December 31, 2023		December 31, 2022
Interest-Earning Assets:
Securities	3.43	%	2.62	%	1.86	%
Net loans	6.05	%	5.37	%	4.26	%
Total interest-earning assets	5.68	%	4.87	%	3.76	%

Interest-Bearing Liabilities:
Total deposits	2.83	%	1.99	%	0.47	%
Total borrowings	3.71	%	3.41	%	1.23	%
Total interest-bearing liabilities	3.05	%	2.24	%	0.54	%

Interest rate spread	2.63	%	2.63	%	3.22	%
Net interest margin	3.26	%	3.16	%	3.37	%

Ratio of interest-earning assets to interest-bearing liabilities	1.26x		1.31x		1.38x

The MIL Network –

January 29, 2025

MIL-OSI: Darren Morcombe Acquires Common Shares of Southern Cross Gold Consolidated Ltd.

Source: GlobeNewswire (MIL-OSI)

VANCOUVER, British Columbia, Jan. 28, 2025 (GLOBE NEWSWIRE) — Darren Morcombe announces that his security holding percentage in the common shares (each, a “Share”) of Southern Cross Gold Consolidated Ltd. (the “Company”), following the Company’s completion of a scheme of arrangement with Southern Cross Gold Ltd. (“SXG1”), as announced in the Company’s press release dated January 23, 2025, is approximately 13.22% on a partially diluted basis.

Effective January 23, 2025, the Company, an issuer listed on the TSX Venture Exchange (TSXV: SXGC) and on the Australian Securities Exchange (ASX: SX2), with its head office at Suite 1305, 1090 West Georgia Street, Vancouver, British Columbia, V6E 3V7, acquired pursuant to a scheme of arrangement all the issued share capital of SXG1 it did not previously own in consideration for the issuance of 125,041,031 Shares at an exchange ratio of 1:1 and a deemed price of $3.35 per Share (the “Transaction”). Prior to the Transaction, SXG1 was listed on the Australian Securities Exchange.

Immediately prior to the completion of the Transaction, Mr. Morcombe owned and controlled 5,454,286 Shares, representing approximately 5.65% of the then-outstanding Shares on a partially diluted basis.

Pursuant to the Transaction, Mr. Morcombe acquired control and ownership over an additional 22,546,434 Shares and 1,500,000 options to purchase Shares, resulting in control and ownership over a total of 28,000,720 Shares and 1,500,000 options to purchase Shares, representing approximately 13.22% of the outstanding Shares on a partially diluted basis, and a change in Mr. Morcombe’s security holding percentage in the Shares of 7.57%.

Mr. Morcombe acquired the Shares for investment purposes. Mr. Morcombe may, depending on various factors, including, without limitation, market and other conditions, increase or decrease his beneficial ownership, control or direction over Shares or other securities of the Company.

For further information, please contact:

Mariana Bermudez
Telephone: 604-685-9316

This news release is issued pursuant to the early warning requirements of applicable securities laws. A copy of the Early Warning Report will appear on the Company’s profile on the SEDAR+ website at www.sedarplus.ca. A copy of the Early Warning Report may also be obtained by contacting Mariana Bermudez.

The MIL Network –

January 29, 2025

MIL-OSI: Fairfax India Shareholders Approve One-Time Deviation From Investment Concentration Restriction

Source: GlobeNewswire (MIL-OSI)

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

TORONTO, Jan. 28, 2025 (GLOBE NEWSWIRE) — Fairfax India Holdings Corporation (“Fairfax India” or the “Company”) (TSX: FIH.U) is pleased to announce the voting results from its special meeting of shareholders held on January 28, 2025 (the “Special Meeting”) in connection with a proposed one-time deviation from the Company’s investment concentration restriction set forth in its by-laws (the “Investment Concentration Restriction”) in order to complete the previously announced acquisition of an additional 10% equity interest in Bangalore International Airport Limited (the “Additional BIAL Investment”).

The special resolution to approve the one-time deviation from the Investment Concentration Restriction required the approval of the holders of multiple voting shares and subordinate voting shares of the Company, each voting separately as a class. At the Special Meeting, the special resolution was approved by (i) 100% of the votes cast by holders of multiple voting shares, and (ii) approximately 99% of the votes cast by holders of subordinate voting shares.

Completion of the Additional BIAL Investment remains subject to receipt of applicable third party consents and other customary closing conditions. Assuming that the remaining conditions to closing are satisfied, it is expected that the Additional BIAL Investment will close in Q1 2025.

About Fairfax India

Fairfax India is an investment holding company whose objective is to achieve long-term capital appreciation, while preserving capital, by investing in public and private equity securities and debt instruments in India and Indian businesses or other businesses with customers, suppliers or business primarily conducted in, or dependent on, India.

For further information, contact:	John Varnell, Vice President, Corporate Affairs
	(416) 367-4755

This press release may contain forward-looking statements within the meaning of applicable securities legislation. Forward-looking statements may relate to the Company’s or an Indian Investment’s future outlook and anticipated events or results and may include statements regarding the financial position, business strategy, growth strategy, budgets, operations, financial results, taxes, dividends, plans and objectives of the Company. Particularly, statements regarding future results, performance, achievements, prospects or opportunities of the Company, an Indian Investment, or the Indian market are forward-looking statements. In some cases, forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate” or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might”, “will” or “will be taken”, “occur” or “be achieved”.

Forward-looking statements are based on our opinions and estimates as of the date of this press release, and they are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking statements, including but not limited to the following factors: oil price risk; geographic concentration of investments; foreign currency fluctuation; volatility of the Indian securities markets; investments may be made in foreign private businesses where information is unreliable or unavailable; valuation methodologies involve subjective judgments; financial market fluctuations; pace of completing investments; minority investments; reliance on key personnel and risks associated with the Investment Advisory Agreement; disruption of the Company’s information technology systems; lawsuits; use of leverage; significant ownership by Fairfax may adversely affect the market price of the subordinate voting shares; weather risk; taxation risks; emerging markets; MLI; economic risk; trading price of subordinate voting shares relative to book value per share risk; and economic disruptions from the after-effects of the COVID-19 pandemic and the conflicts in Ukraine and the Middle East. Additional risks and uncertainties are described in the Company’s annual information form dated March 8, 2024 which is available on SEDAR+ at www.sedarplus.ca and on the Company’s website at www.fairfaxindia.ca. These factors and assumptions are not intended to represent a complete list of the factors and assumptions that could affect the Company. These factors and assumptions, however, should be considered carefully.

Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements contained herein, except as required by applicable securities laws.

The MIL Network –

January 29, 2025

MIL-OSI Submissions: Economy Analysis – KOF-NZZ survey: where do Swiss economists stand on key economic policy issues?

Source: KOF Economic Institute

KOF has collaborated with the Neue Zürcher Zeitung (NZZ) newspaper to survey economists on fundamental and current economic questions. The results show that they reject state intervention such as rent controls and trade tariffs. On the other hand, opinions are divided along political lines when it comes to questions about easing Switzerland’s debt brake or subsidising environmentally friendly technologies.

The December 2024 survey consisted of 19 statements from various economic subject areas. Academic research economists based in Switzerland were questioned.

A total of 177 responses were received, which represents a response rate of 21 per cent.

The respondents* were also asked about three characteristics: their age, gender and political affiliation. As far as political affiliation is concerned, the proportion of respondents defining themselves as being (more) to the left (36 per cent) is higher than the proportion defining themselves as (more) to the right (20 per cent).

A large proportion (44 per cent) place themselves politically in the centre. However, it should be noted that 18 per cent of respondents did not answer the question about their political affiliation. A comparison of these characteristics shows that women and young people (tend to) position themselves on the left politically.

This is consistent with surveys (in German, French or Italian) conducted by the Federal Statistical Office (FSO) among the Swiss population as a whole. The KOF-NZZ survey shows that political affiliation has a significant influence on the responses to 13 out of the 19 questions in the survey.

Competition and regulation: mostly sceptical about intervention

Four questions about market intervention show that the economists surveyed tend to favour only little regulation. A majority (71 per cent) are of the opinion that rent controls (tend to) reduce the quantity and quality of housing supply. Respondents who tend to define themselves politically as right-wing overwhelmingly agree with this statement (93 per cent).

Among left-leaning economists, around half (51 per cent) agree (25 per cent of them are undecided, i.e. neither agree nor disagree). There is unanimity on the question of whether tariffs and import quotas reduce a country’s material prosperity. A total of 81 per cent of economists (tend to) agree with this statement. This figure rises to 93 per cent among those with a right-wing political affiliation and is 70 per cent among those on the left.

The view that wage controls and/or price controls should (preferably) not be used as a means of combatting inflation is very widely held among the survey respondents, with 83 per cent agreeing with this opinion (93 per cent of right-wing respondents, 81 per cent of left-wing respondents and 86 per cent of those in the centre).

By contrast, the responses to the question of whether a binding minimum wage increases unemployment among young people and unskilled workers are less clear-cut: overall, 44 per cent (tend to) agree with this statement while 38 per cent (tend to) disagree.

A high proportion (18 per cent) neither agree nor disagree with the statement. The political affiliations are divided in their assessment of this question. While the majority of (more) right-wing respondents (72 per cent) agree with the statement that unemployment will (tend to) increase, the corresponding figure is 50 per cent for respondents from the centre. In contrast, the majority of (more) left-wing respondents (tend to) reject this statement (60 per cent).

Regulation of large Swiss banks: too-big-to-fail amendment controversial

Since Credit Suisse was acquired by UBS, the regulation of big banks has once again become the focus of public debate. Economists do not agree on whether it would be possible in principle to amend too-big-to-fail regulation, so that a major Swiss bank could be wound up without any risk to taxpayers in the event of a crisis. 47 per cent (tend to) agree with this statement, 14 per cent neither agree nor disagree, and 39 per cent (tend to) disagree. The influence of political affiliation on response behaviour is not very pronounced here.

Public debt: considered too high in many advanced economies

The COVID-19 pandemic has led to a sharp increase in government debt in many countries. This has triggered a broad debate about the extent to which public debt is too high in several countries. Overall, around two-thirds of survey respondents (tend to) consider it to be too high in many advanced economies. The majority of economists who define themselves as politically (more) to the right or in the centre agree with this statement (86 per cent and 75 per cent respectively). The situation is different in the case of respondents who define themselves politically as (more) to the left: 44 per cent of them agree with this statement, 30 per cent neither agree nor disagree, and 26 per cent disagree.

In Switzerland, the government spending ratio – i.e. public spending as a share of gross domestic product – is not considered to be too high. More than two-thirds of survey respondents reject the statement that the government spending ratio is too high. This view is fairly widespread across the political spectrum, although not equally pronounced in all cases. 48 per cent of respondents who define themselves as (more) right-wing reject this statement, 11 per cent are undecided and 41 per cent agree. The majority of other political affiliations reject this statement (59 per cent of respondents who define themselves as centrists and 90 per cent of those on the left).

The economists agree less about Switzerland’s debt brake. Overall, 37 per cent agree with the statement that the debt brake should be relaxed, 17 per cent are undecided and 46 per cent disagree. Of the (more) right-wing economists, 71 per cent disagree with the statement. Of those respondents who define themselves politically as centrists, 45 per cent disagree and 33 per cent agree. And, of the economists who see themselves as (more) left-wing, 47 per cent agree and 34 per cent disagree.

Inequality: wealth distribution too unequal according to around half of respondents

The economists were also asked about their views on inequality in Switzerland. A distinction was made here between disposable income and wealth. 41 per cent of respondents stated that disposable incomes should (probably) be distributed more equally. On the other hand, 36 per cent (tend to) reject this statement. However, the answers differed considerably depending on the respondents’ political preferences. 71 per cent of those with (more) left-wing leanings agree with the statement that incomes should be distributed more equally, while the same proportion of those with (more) right-wing leanings reject this statement. There is a mixed picture among economists who see themselves politically as centrists, with 30 per cent agreeing and 41 per cent disagreeing with the statement.

56 per cent consider the distribution of wealth to be (probably) too unequal. 29 per cent (tend to) reject this statement. This means that wealth inequality in Switzerland is viewed more critically than income inequality. However, the influence of political affiliation can be felt here in a similar way to the issue of income inequality. 75 per cent of right-wing respondents disagree with the statement that wealth should be distributed more equally, whereas 88 per cent of left-wing respondents agree with it. 53 per cent of those in the centre agree with the statement.

Causes of inflation: monetary explanation widespread

As far as the causes of inflation are concerned, a distinction can be made between monetarist and non-monetarist (e.g. Keynesian, supply-side or structural) explanations. Monetarists believe that inflation is a monetary phenomenon. This means that inflation – particularly beyond the short term – is a consequence of an expansion of the money supply that is greater than the increase in the real production of goods and services. Keynesian inflation theory, on the other hand, focuses on the Phillips curve, which shows that unemployment and the inflation rate are negatively correlated in the short term.

Both theories tend to meet with approval in the survey. However, approval of the monetarist approach is slightly higher: 58 per cent agree with the statement that inflation is (more likely to be) a monetary phenomenon. In contrast, just under half of respondents (51 per cent) are convinced that unemployment can be reduced in the short term by a higher inflation rate. Views on monetarism differ according to the respondents’ political affiliations: 76 per cent of the (more) right-wing respondents (tend to) agree with monetarism theory, while 68 per cent of economists in the centre of the political spectrum (tend to) agree. Of those respondents on the (more) left wing of the spectrum, 34 per cent (tend to) agree and 47 per cent (tend to) disagree. In contrast, the approval rates for the short-term Phillips curve do not differ greatly across the political spectrum (left: 50 per cent, centre: 61 per cent, right: 45 per cent).

Environmental policy: disagreement over industrial subsidies

The economists surveyed also commented on key environmental policy issues. There is disagreement on the question of whether the transition to green technologies in Switzerland should be subsidised by industry. While a total of 45 per cent of the economists surveyed were (mainly) in favour of this, 41 per cent were (mainly) against this approach. A further 14 per cent were undecided. The respondents’ political affiliations play a significant role in this question.

Industrial subsidies are rejected by 71 per cent of respondents who define themselves as (more) politically right-wing, as do 46 per cent of those in the political centre. In contrast, 65 per cent of respondents on the (more) left wing of the spectrum are in favour of such subsidies.

On the other hand, the general attitude towards combatting pollution through emissions taxes rather than through the statutory imposition of limits is clearer. A clear majority of 78 per cent overall (tend to) prefer the introduction of emissions taxes over the imposition of limits. This preference applies across the political spectrum.

There is also a consensus when it comes to assessing the potential of new technologies. A total of 72 per cent of respondents (tend to) believe that carbon-neutral economic growth will be possible as a result of technological innovation. Only 12 per cent are (mainly) sceptical, while 16 per cent are undecided.

The role of central banks in climate policy is another topic that is repeatedly the subject of intense debate. In April 2024, for example, the National Council discussed climate rules for the Swiss National Bank (SNB). 62 per cent of the economists responding to the KOF-NZZ survey generally (tend to) reject the inclusion of climate targets in central banks’ mandates. By contrast, 28 per cent would (tend to) be in favour of such an extension of these mandates. However, the responses given differ significantly depending on political affiliation. 86 per cent of (more) right-wing respondents and 70 per cent of those located in the political centre (tend to) reject the inclusion of climate targets by central banks. Respondents on the (more) left wing of the spectrum are less clear in their preferences: a narrow majority of 53 per cent are in favour, 15 per cent are neither in favour nor against, and 32 per cent are opposed. It is also clear that female economists are more in favour of including climate targets than male economists.

Political views most influential in assessing distribution issues

The respondents’ political views play a role in their responses to the majority of questions. This influence is particularly strong in the case of questions on the distribution of both wealth and income. However, the responses to some of the questions on climate policy also differ according to political affiliation – for example, the role of central banks in climate policy or the use of industrial subsidies. The respondents’ political affiliations are also of great importance when assessing the impact of minimum wages and the public spending ratio in Switzerland.

On the other hand, views across the political spectrum are similar when it comes to the potential of new technologies for carbon-neutral growth, assessing the introduction of emissions taxes, capital rules for banks, and too-big-to-fail regulation. Assessments of the Phillips curve also hardly differ across the political spectrum.

————————
*Demographics of survey respondents:
Of those surveyed, 14 per cent are younger than 35, 38 per cent are between 36 and 45, 22 per cent are between 46 and 55, and 26 per cent are older than 56. 84 per cent of respondents are male and 16 per cent are female. Broken down by age category, the proportion of women is highest (20 per cent) in the 36 to 45 age group. The lowest proportion of women (11 per cent) is in the over 56 age group.

The KOF-NZZ survey of economists covers topics relevant to economic policy in Switzerland and provides a means of publicising the views of economists conducting academic research. The Neue Zürcher Zeitung (NZZ) newspaper is KOF’s media partner in the preparation and interpretation of this survey. KOF and the NZZ jointly conducted a survey of major fundamental and topical economic issues in December 2024. Some of the questions are updated formulations of an international survey conducted by Bruno S. Frey, Werner W. Pommerehne, Friedrich Schneider and Guy Gilbert in 1980 (link to the paper). The survey was conducted between 2 December and 20 December 2024. 854 economists were contacted. Responses were received from 177 economists at 19 institutions. (ref. https://news.ethz.ch/d?p00ce04y00o6iq00d0000l3i0000000003muuielzwweyd2e3r5ll4si000bik000000o2qwjku )

MIL OSI – Submitted News –

January 29, 2025

MIL-OSI Submissions: Business – Consultants And Interim Managers Launch BRICS Network

Source: German Technology & Engineering Corporation (GTEC)

Karlheinz Zuerl, Interim Manager of the Year 2024*, has set up an international business network to bridge the gap between Western industrialized nations and the BRICS countries.

Berlin, January 28 2025 – A new international network of consultants and interim managers has been launched under the name “BRICS Project Network” to support Western companies in expanding their business in BRICS countries and vice versa. “The BRICS nations account for nearly half of the global population and produce over a third of the world’s economic output, surpassing the G7 countries,” explained Karlheinz Zuerl, CEO of the German Technology & Engineering Corporation (GTEC) based in Shanghai, China, which spearheads this initiative.

Karlheinz Zuerl said: “The further development of economic relations between the Western industrialized nations and the BRICS community helps all parties involved. The new network reportedly includes China, Hong Kong, India and Southeast Asia (Malaysia, Indonesia, Vietnam, Thailand), the United Arab Emirates, Iran, Brazil and South America, Mexico, Canada (USMCA customs union), Russia, Eastern Europe and a number of African countries in the global south, such as South Africa, Ethiopia and Egypt.

Wide Range Of Services

Acting as a “bridge-builder” between these countries and the Western industrialized world, the new network offers a wide range of services: Management Consulting, Business Development, Project Management, Interim Management, Training and Education. Karlheinz Zuerl gave specific examples: “We carry out market analyses, set up international sales networks, initiate business partnerships and takeovers, represent companies at trade fairs and other events, take care of organizational development, look after human resources, set up branches on behalf of companies, carry out relocations and company transfers, optimize finances and local production and carry out restructuring to improve earnings.”

According to the information provided, the consultants and managers in the network have many years of experience in a wide range of sectors. Examples given include: Manufacturing, automotive, mechanical and plant engineering, construction, electrical and electronics, domestic appliances, environmental technology, information technology, pharmaceuticals and communications technology. If required, interim managers can take on operational roles such as general management, commercial management, project or quality management, research and development, human resources and finance, sales and marketing or change management.

Trade Disputes And Sanctions Weigh On Relations

Trade disputes between the US and China and sanctions against Russia are putting a strain on economic relations. The economic relationship between the Western industrialized nations and the BRICS countries is under severe strain. These tensions have led the BRICS to seek alternatives to reduce their dependence on Western financial systems, for example by discussing a common currency or reducing the use of the US dollar in trade.

“We are not politicians,” said Karlheinz Zuerl, “but business consultants and interim managers who build cross-border business relationships and investments that benefit all parties. Given the geopolitical tensions, the enormous economic potential for both parties is often underestimated. With experienced professionals like those in our network, this potential can be realized.”

He points out that a number of BRICS countries play an important role in technological development, as attractive manufacturing locations and as suppliers of raw materials and energy to the Western industrial world. Without China, India, Russia and Brazil, the Western economy would be much poorer,” said Karlheinz Zuerl, underlining the importance of the BRICS countries today.

* Karlheinz Zuerl was honoured by United Interim, the leading community for interim managers in Germany, Austria and Switzerland, and Steinbeis Augsburg Business School.

GTEC (https://gtec.asia) helps Western industrial companies to overcome challenges in Asia. The focus is on business development, the establishment and expansion of branches and production facilities, as well as restructuring and turnaround measures to bring automotive suppliers and mechanical engineering companies in critical phases back into the profit zone. Under the direction of CEO Karlheinz Zuerl, a team of consultants, experts and interim managers is on hand to work on-site with the client if necessary. The CEO himself is available for tasks as an interim general manager and for executive consulting. GTEC’s list of references includes corporations such as BMW, Bosch, General Motors and Siemens, large medium-sized companies such as Hella, Schaeffler, Valeo and ZF, as well as smaller medium-sized companies that are less well known but are operating all the more.

MIL OSI – Submitted News –

January 29, 2025

MIL-OSI Submissions: Tech – DeepSeek overtakes ChatGPT with 50x Google Trends surge in a week – Finbold

Source: Finbold

The release of the latest version of the Chinese artificial intelligence (AI) model DeepSeek swiftly created a media and stock market storm as it, given the official costs of development, threw into disarray the massive investments made in Western AI companies.

Finbold research uncovered that in a single week ending on Monday, January 27, Google Trends global score for DeepSeek soared fiftyfold, hitting 100 – the highest figure possible for a selected region and time frame.

Though the score was the highest in China by far, the new model also soared above ChatGPT in the U.S.

Hong Kong, likewise, saw exceptional interest and took second place, while the countries where DeepSeek was also highly searched for, in descending order, include Singapore, Tunisia, Morocco, Nepal, Algeria, Ethiopia, Jordan, and Kenya.

Specifically, the AI model’s Google Trends score stood at 100 in China, 22 in Hong Kong, 16 in Singapore, and 6 in the U.S.

DeepSeek’s popularity also emerges outside Google Trends

The surge in interest was also evident on the Play Store, where the DeepSeek app took the top spot, leading to sufficient volume – and possibly a cyberattack – to ensure access is restricted to users with a Chinese phone number.

Additionally, the emergence of a new major player in the AI industry triggered a stock market bloodbath, with the semiconductor giant Nvidia (NVDA) being hit particularly hard and losing approximately $600 billion in market capitalization – the single biggest one-company valuation drop in a single day.

Still, as Andreja Stojanovic, a co-author of the research, pointed out, there were some immediate benefits:

“The introduction of new and powerful competition has had an immediate positive effect on consumers, as OpenAI’s Sam Altman promised additional features to ChatGPT’s paying users.”

Elsewhere, the tumult triggered some calls for a ban or restrictions on Chinese technology, akin to the tariffs and other protectionist measures imposed on Chinese electric vehicle (EV) makers.

For more: https://finbold.com/deepseek-overtakes-chatgpt-with-50x-google-trends-surge-in-a-week/

MIL OSI – Submitted News –

January 29, 2025

MIL-OSI Submissions: Russia-Ukraine Conflict – 3-year mark of war in Ukraine: Here’s the Data

Source: Physicians for Human Rights (PHR)

Approaching the three-year mark since Russia’s full-scale invasion of Ukraine on February 24, Physicians for Human Rights (PHR) and its Ukrainian partners share new data, resources, and experts available for interview to support your team’s coverage of this upcoming milestone.

PHR and partners have systematically documented attacks on health in Ukraine through a database and interactive map (attacksonhealthukraine.org).

A staggering 1582 attacks on health care facilities, workers, and infrastructure have been perpetrated since February 2022. We are currently analyzing recent attacks and will again update the map ahead of the three-year mark – if you would like a preview of the upcoming data release please let us know.

Additionally: a first-of-its-kind report published last month by PHR and Truth Hounds details how Russia’s widespread and systematic attacks on Ukraine’s energy grid have harmed health care workers and endangered patients.

92% of 2,261 Ukrainian health care workers we surveyed report experiencing power outages at their health care facility due to attacks on energy infrastructure. The report documents how Russia’s assault on Ukraine’s energy infrastructure led to interrupted or delayed surgeries, forcing surgeons to operate in darkness illuminated only by flashlights; failures in life support systems; discontinued flow of water to hospitals; diagnostic and treatment equipment becoming unusable; patients experiencing panic attacks and cardiac arrhythmia due to lack of power; impeded maternal care service delivery; and other impacts on health care provision.

Previously, a case study by PHR and partners documented how Russian authorities have systematically sought to target Ukraine’s health care system to cement their control over the civilian population in Ukrainian territories under occupation.

PHR and our medical and human rights partners across Ukraine have conducted a wide range of research and advocacy since the full-scale invasion began, from attacks on health care to supporting survivors of conflict-related sexual violence in Ukraine. PHR experts routinely brief policymakers across Ukraine, US, Europe, and the UN system on human rights in the country.

PHR experts are available as sources for your reporting on Ukraine and the upcoming three-year mark. This includes Uliana Poltavets, who leads PHR’s Ukraine work from Kyiv and has co-authored all publications noted above. Poltavets can share insights about efforts to hold Putin and Russian military officials accountable for war crimes; the impacts of attacks on the energy grid and hospitals; and the need for sustained international support for Ukraine.

In addition to Poltavets, PHR has a wide network of Ukrainian and international clinicians, researchers, and advocates with whom we can also connect you to support your reporting. This includes Roman Koval, head of research at the Ukrainian organization Truth Hounds, and PHR health and human rights researcher Dr. Houssam al-Nahhas, a Syrian physician who researches attacks on health care (and who himself survived attacks on health care by the Assad government).

MIL OSI – Submitted News –

January 29, 2025

MIL-OSI United Nations: DR Congo crisis: ‘The violence must end now’, UN Security Council told

Source: United Nations 4

28 January 2025 Peace and Security

The UN Security Council convened its second emergency meeting in three days on Tuesday to address the escalating crisis in Goma – the regional capital of the eastern Democratic Republic of the Congo (DRC).

Vivian van de Perre, Deputy Head of the UN Stabilization Mission in the DRC (MONUSCO), provided a detailed briefing from Goma, highlighting the dire humanitarian situation and the need for “urgent and coordinated international action,” to stop the fighting between Rwanda-backed M23 rebels and Congolese forces – as they battle for control of the city.

She reported that the recent clashes have led to massive displacement, with over 178,000 people fleeing Kalehe territory after the M23 took control of Minova.

More than 34,000 of those on the run have sought refuge in already overcrowded IDP sites in and around Goma, exacerbating the humanitarian crisis and overwhelming the city’s infrastructure.

Rebels and Rwandan troops joint attack

“Despite the appeals from Member States during the Security Council meeting on 26 January, the M23/RDF [Rwanda Defence Force] launched an attack on Goma, using heavy direct and indirect fire,” Ms. van de Perre stated.

“These attacks have resulted in numerous civilian casualties, further displacement, and significant trauma among the population.”

She emphasised the critical role of MONUSCO in providing refuge and protection, noting that the mission has received a large number of people seeking safety, including officials and armed elements who have surrendered.

“MONUSCO’s bases are not able to accommodate the large number of surrendering elements and civilians seeking refuge,” she said. “The Uruguayan Battalion (URUBATT) alone has taken in approximately 1,200 Congolese soldiers and over a thousand civilians, placing immense pressure on resources.”

UN bases ‘not safe’

The situation is further complicated by damage to water tanks, compromising the security of UN personnel and property.

“Our bases are not safe: two mortars have hit MONUSCO bases and compounds in the last three days, as well as numerous bullets,” Ms. van de Perre reported.

“Installations of [formed police unit] staff in Jambar camp have been destroyed and burnt.”

Casualty evacuation efforts remain a significant challenge, with peacekeepers injured during the fighting in Sake.

Despite the closure of Goma airport, MONUSCO continues to facilitate medical evacuations with the help of SAMIDRC – the Southern African Development Community mission in DRC.

Evacuation of injured ‘blue helmets’

“We continue to do our utmost to ensure timely evacuation of injured peacekeepers and other casualties to our level 3 hospital in Goma despite continued challenges,” Ms. van de Perre said.

The M23 and Rwandan forces’ capture of Goma’s international airport and their advance from multiple directions have heightened the risk of weapons proliferation, as combatants blend into the civilian population, the Deputy UN Special Representative continued.

The mass influx of IDPs, separation of families, and escape of prisoners from Goma prison have increased the vulnerability of women and children to sexual and gender-based violence.

Ms. van de Perre called on all parties to guarantee the protection of life and access to basic services, and to prevent sexual violence.

“The degree of suffering that the population here in Goma and its environs is enduring is truly unimaginable,” she said.

“Let us please draw on our humanity and do our utmost to bring an immediate end to such levels of violence and suffering.”

In light of the ongoing conflict, Ms. van de Perre urged the establishment of humanitarian corridors between Goma, Minova and Bukavu, and the reopening of critical airports and border points.

Political solution must be found

She emphasised that military action cannot resolve the conflict and called for a resumption of the Luanda Process under the auspices of the Angolan Government to ensure de-escalation and “avert the looming threat of a third Congo war.”

The briefing concluded with a call for urgent and coordinated international action to address the crisis in Goma. Despite the challenges, MONUSCO remains a vital lifeline for vulnerable groups, but its effectiveness is being severely tested by the ongoing violence and logistical difficulties.

“The protection of civilians and the pursuit of a peaceful resolution must be prioritised to end the suffering in Goma,” MONUSCO’s deputy head stressed.

MIL OSI United Nations News –

January 29, 2025

MIL-OSI New Zealand: Transport Sector – Transporting New Zealand backs speed limit changes

Source: Ia Ara Aotearoa Transporting New Zealand

National road freight association Ia Ara Aotearoa Transporting New Zealand has welcomed today’s Government announcement reversing speed limit reductions on 38 sections of the state highway network, saying the changes will reduce journey times and help avoid dangerous behaviour by frustrated drivers.

Speed limits on 49 further sections of state highway will be put out for public consultation to allows local communities to have their say on whether to revert to previous speed limits.

Chief Executive Dom Kalasih says the changes reflect the Government’s more balanced approach to speed management, taking a cost-benefit approach to speed limit setting.

“Our members have been frustrated by blanket speed reductions around the country over the past four years that did not adequately consider the impact of increased journey times, dangerous overtaking and tailgating by frustrated drivers, and increased freight costs for businesses and consumers and we’ve made these points consistently to road controlling authorities across the country.

“We’re pleased to see the programme of speed limit reversals getting underway, as directed by the Government’s Setting of Speed Limits 2024 Land Transport Rule.”

Kalasih says that while appropriate speed limits play a vital role in road safety, they need to be considered alongside good roading design and effective enforcement.

“It is crucial that Government continues to invest in adequate maintenance, roading improvements, and effective enforcement of RIDS (restraints, impairment, distraction and speed).

“Speed limit setting is only one key element of supporting road safety and reducing our road toll.”

About Ia Ara Aotearoa Transporting New Zealand

Ia Ara Aotearoa Transporting New Zealand is the peak national membership association representing the road freight transport industry. Our members operate urban, rural and inter- regional commercial freight transport services throughout the country.

Road is the dominant freight mode in New Zealand, transporting 92.8% of the freight task on a tonnage basis, and 75.1% on a tonne-km basis. The road freight transport industry employs over 34,000 people across more than 4700 businesses, with an annual turnover of $6 billion.

MIL OSI New Zealand News –

January 29, 2025

MIL-OSI New Zealand: Economy – Reserve Bank NZ speech: Beyond the cycle – Growth and interest rates in the long run

Source: Reserve Bank of New Zealand

29 January 2025 – In a speech delivered today, Reserve Bank Chief Economist Paul Conway discussed New Zealand’s longer-term ‘potential output’ and its significance for monetary policy.

“Understanding potential output is crucial for assessing whether the economy is running too hot or too cold from an inflation control perspective and for gauging medium-term growth prospects,” Mr Conway says.

Mr Conway also outlined the Reserve Bank’s assessment of the ‘neutral interest rate’, which shapes expectations for where the OCR will tend to move over time, in the absence of economic shocks.

The speech goes beyond the business cycle to explore New Zealand’s long-term economic challenges and key factors influencing future growth – including productivity growth. It also explores drivers behind changes in New Zealand’s neutral interest rate.

Key insights from the speech include:

In the absence of future shocks, economic activity in New Zealand will tend towards the level of potential output, as pandemic-related disruptions fade. Likewise, without future shocks, the OCR will tend towards the neutral interest rate.
Over the next few years, with declining inward migration and weak productivity growth, potential output growth is likely to be modest. This will set a modest ‘speed limit’ on how fast the economy can grow without generating excess inflation pressure.
Unlocking higher investment and productivity growth is key to raising potential output growth and improving per capita incomes. This would also reduce the likelihood of negative recessionary economic growth during future periods of restrictive monetary policy.
Reserve Bank estimates suggest that the neutral interest rate has fallen over recent decades, given weak productivity growth and aging populations. Our research suggests that this decline may be reversing and that the long-term nominal neutral interest rate currently lies between 2.5% and 3.5%.

Background notes

What is potential output?
Potential output is the level of goods and services the economy can sustainably supply without generating excess inflation or disinflation. It depends on the supply of inputs – capital and labour – and how productively they are combined to produce output. For example, if there are more people available to work, more capital to use, or better ways of doing things, then potential output increases.

What is the neutral interest rate?
The nominal neutral interest rate is the level of the Official Cash Rate (OCR) consistent with inflation being sustainably at target and the economy running at its potential output. Without future shocks, the neutral interest rate indicates where the OCR is likely to settle to keep inflation at the 2% target midpoint.

More information

Read the speech: https://govt.us20.list-manage.com/track/click?u=bd316aa7ee4f5679c56377819&id=2920e70068&e=f3c68946f8
Watch the speech: https://govt.us20.list-manage.com/track/click?u=bd316aa7ee4f5679c56377819&id=e1dd2a8aa0&e=f3c68946f8

MIL OSI New Zealand News –

January 29, 2025

MIL-OSI USA: Woman Sentenced for Fraud Scheme Involving Claims for Unnecessary Respiratory Tests Submitted with COVID-19 Tests

Source: US State of California

A California woman was sentenced today to nine years in prison for her role in fraudulently submitting claims to governmental and private insurance programs during the COVID‑19 pandemic for expensive respiratory pathogen panel (RPP) tests that were medically unnecessary and never ordered by health care providers.

According to court documents, Lourdes Navarro, 66, of Glendale, and Imran Shams owned and controlled Matias Clinical Laboratory, doing business as Health Care Providers Laboratory (HCPL). Navarro and Shams conspired to obtain nasal swab specimens that enabled HCPL to test for COVID-19, as well as to obtain testing orders from physicians and other medical professionals. The specimens were collected from, among others, residents and staff at nursing homes, assisted living facilities, rehabilitation facilities, and similar types of facilities, and from students and staff at primary and secondary schools, for the purported purpose of conducting screening tests to identify and isolate individuals infected with COVID-19. However, Navarro and Shams caused HCPL to perform RPP tests on most of the specimens, even though only COVID-19 testing had been ordered and there was no medical justification for conducting RPP tests on asymptomatic individuals who needed only COVID-19 screening tests. Through HCPL, Navarro and Shams billed approximately $369 million for the RPP tests to Medicare, the Health Resources and Services Administration COVID-19 Uninsured Program, and a private health insurance company, and were reimbursed approximately $46.7 million for fraudulent claims.

Navarro was also ordered to forfeit $11,662,939 in funds that the government had previously seized from three bank accounts. The total amount seized and forfeited from Navarro and Shams is $14,518,485. Navarro also was ordered to pay $46,735,400 in restitution.

Navarro pleaded guilty on Oct. 5, 2023, to conspiracy to commit health care fraud and wire fraud. Shams pleaded guilty on Jan. 24, 2023, in the Central District of California to conspiracy to commit health care fraud and concealment of his exclusion from Medicare and was sentenced to 10 years in prison on Jan. 30, 2024. In addition, on May 29, 2024, Shams was sentenced to five years in prison in connection with his 2017 plea in the Eastern District of New York to conspiracy to commit money laundering, conspiracy to pay and receive kickbacks, and defrauding the United States by obstructing the lawful functions of the IRS, of which three years were ordered to run consecutive to the Central District of California sentence.

Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division, Assistant Director in Charge Akil Davis of the FBI Los Angeles Field Office, and Acting Special Agent in Charge Rochelle Wong of the Department of Health and Human Services Office of Inspector General (HHS-OIG) Los Angeles Regional Office made the announcement.

The FBI and HHS-OIG investigated the case.

Trial Attorneys Gary A. Winters and Raymond E. Beckering III of the Criminal Division’s Fraud Section prosecuted the case. Assistant U.S. Attorney Maxwell Coll for the Central District of California handled the financial penalties.

The Justice Department’s COVID-19 Fraud Enforcement Task Force marshals the resources of the department in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The task force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, visit www.justice.gov/coronavirus.

MIL OSI USA News –

January 29, 2025

MIL-OSI Security: New Jersey Man Pleads Guilty to Attempting to Provide Material Support to al Shabaab

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

Danielle R. Sassoon, the United States Attorney for the Southern District of New York, announced today that KARREM NASR, a/k/a “Ghareeb Al-Muhajir,” pled guilty to attempting to provide material support to al Shabaab, a designated foreign terrorist organization before U.S. District Judge Analisa Torres.

U.S. Attorney Danielle R. Sassoon said: “Karrem Nasr devoted himself to waging violent jihad against America and its allies. Inspired by the evil terrorist attack perpetrated by Hamas on October 7, 2023, Nasr, a U.S. citizen, traveled from Egypt to Kenya in an effort to join al Shabaab so that he could execute his jihadist mission of creating death and destruction. Now, instead of perpetrating a deadly attack in the name of a foreign terrorist group, Nasr resides in federal prison. I thank the career prosecutors of my office and our law enforcement partners for their extraordinary work in disrupting this plan and bringing a terrorist to justice.”

According to the allegations in the court filings and statements made in Court:

NASR is a 24-year-old U.S. citizen who moved from New Jersey to Egypt in or about July 2023. Starting in at least in or about November 2023, NASR repeatedly expressed his desire and plans to join al Shabaab, a designated foreign terrorist organization that has attacked Americans and American allies around the world, and wage jihad, including in communications with an FBI confidential source (the “CS”), who was posing as a facilitator for terrorist organizations.^[1]

In communications exchanged with the CS and postings that NASR made online, NASR stated that he had been thinking about engaging in jihad for a long time, and he was particularly motivated to become a jihadi by the October 7, 2023, Hamas terrorist attack in Israel. For example, in communications with the CS, NASR stated that the number one enemy was “evil America,” which he called the “head of the snake.” In social media posts, NASR warned that “Jihad” was “coming soon to a US location near you,” posting airplane, bomb, and fire emojis:

In further communications with the CS, NASR expressed his intent to join al Shabaab to receive military training and engage in jihad, that he was prepared to kill and be killed, and that he specifically aspired to be a martyr for the jihadist cause. For example, NASR stated “I would like to become a martyr in the sake of Allah. . . . I think in coming years, inshallah we are going to see here big events in Egypt and the other Arab countries. Inshallah if this happens; I will come back to Egypt, inshallah to help the Muslims in Egypt in their struggle to establish here in Egypt.”

Beyond his online postings and communications with the CS, NASR took specific and targeted steps in his effort to join and receive military training from al Shabaab. Among other things, NASR made flight and lodging reservations for travel to Kenya, where he planned to meet members of al Shabaab for further travel to Somalia to join and train with the terrorist group. In addition, the day before his flight, NASR told the CS that he planned to delete data from his cellphone and computer to ensure that if he were detained, law enforcement would not be able to recover evidence of his jihadist activities from those devices. On December 14, 2023, as planned, NASR flew from Egypt to Kenya, where he then planned to transit into Somalia to join and train with al Shabaab. Later that day, NASR was taken into custody by Kenyan authorities. On December 28, 2023, NASR arrived in the U.S.

* * *

NASR, 24, of Lawrenceville, New Jersey, pled guilty to attempting to provide material support to a designated foreign terrorist organization, which carries a maximum sentence of 20 years in prison. NASR is scheduled to be sentenced by Judge Torres on June 30, 2025.

The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.

Ms. Sassoon praised the outstanding efforts of the Federal Bureau of Investigation (“FBI”)’s New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the New York City Police Department. Ms. Sassoon also thanked the FBI’s Legal Attaché Office in Nairobi, Kenya, the Counterterrorism Section of the Department of Justice’s National Security Division, the Department of Justice’s Office of International Affairs, and the Kenyan Directorate of Criminal Investigations, including the Anti-Terrorism Police Unit and the Joint Terrorism Task Force-Kenya, for their assistance.

This case is being handled by the Office’s National Security and International Narcotics Unit. Assistant U.S. Attorneys Camille L. Fletcher, Kimberly J. Ravener, and Stephen Ritchin are in charge of the prosecution, with assistance from Trial Attorney Jennifer Burke of the Counterterrorism Section.

^[1] Communications referenced herein are described in substance and in part.

MIL Security OSI –

January 29, 2025

MIL-OSI Security: Justice Department Secures Agreement Preventing Indiana Exhibitor and Dog Breeder from Violating the Animal Welfare Act

Source: Office of United States Attorneys

WASHINGTON — In a consent decree entered today by the U.S. District Court for the Northern District of Indiana, Indiana exhibitor and dog breeder, Vernon D. Miller, agreed to not apply for or engage in any activity that requires a Department of Agriculture (USDA) license for two years. If Miller is relicensed in the future, he must comply with Animal Welfare Act (AWA) regulations and standards necessary to provide humane and lawful care to the animals he exhibits and sells.

A complaint filed in October alleged that Miller — individually and doing business as the Dutch Creek Farm Animal Park in Shipshewana, Indiana — had violated the AWA by failing to provide adequate veterinary care, safe and hospitable enclosures, appropriate enrichment and sanitary housing, food and water to his animals. The complaint also alleged that Miller had failed to maintain legally required records.

At the time of the filing of the complaint, Miller had been cited for 90 AWA violations in just over a year, the highest number of citations for any USDA-licensed facility during that time period (2023-2024). Miller’s violations impacted over 300 animals that he exhibited to the public — including deer, zebra, exotic birds and primates — and dozens of dogs and puppies that he bred for sale as pets.

The citations for multiple violations included unsanitary conditions (including stalls piled high with feces and food dishes coated in grime or mold), and failing to provide animals with sufficient shelter, failing to properly vaccinate puppies and failing to provide veterinary care for animals with illnesses or open wounds. The complaint alleged that such conditions had likely led to numerous animal deaths, with at least seven animals dying in the few months prior to the filing of the case.

USDA suspended Miller’s license for 21 days starting on Oct. 9. The court entered a temporary restraining order against Miller on Oct. 28, requiring him to comply with multiple AWA regulations and standards, provide records and documentation to help monitor compliance and refrain from buying, selling, euthanizing or exhibiting animals without the consent of the United States or the court. The temporary restraining order expired on Dec. 2.

“The maltreatment of animals entrusted to Mr. Miller’s care is a despicable act that deserves just intervention,” said Acting United States Attorney Tina L. Nommay. “We will continue to work with our federal partners to identify and hold accountable those exhibitors and dog breeders who provide inhumane care to animals in violation of the Animal Welfare Act.”

“USDA is committed to ensuring the safety and wellbeing of animals protected under the Animal Welfare Act,” said Deputy Administrator Sarah Helming for USDA’s Animal Care program. “The partnership between USDA and DOJ helps to ensure enforcement of the AWA regulations for those who put regulated animals at risk.”

In addition to not applying for or engaging in activity requiring a USDA license for at least two years, the consent decree, in effect for five years, outlines that Miller will allow USDA inspectors limited access to the facility, if it is open to the public, and will produce certain records for compliance monitoring during any time he is not licensed. If Miller applies for and receives a USDA license in the future, he agrees to comply with AWA regulations and standards that he had previously violated and to maintain veterinary and other accurate and complete records.

USDA investigated the case and filed a parallel administrative enforcement action.

Senior Trial Attorney Devon Flanagan and Trial Attorneys Kamela Caschette, Angela Mo and Chris Carrara of the Justice Department’s Wildlife and Marine Resources Section prosecuted the case, with support from Assistant U.S. Attorney Dirk DeLor for the Northern District of Indiana and USDA’s Office of General Counsel and Animal and Plant Health Inspection Service.

MIL Security OSI –

January 29, 2025

MIL-OSI Security: Lame Deer woman admits assault charges in rollover crash that injured two passengers on Northern Cheyenne Indian Reservation

Source: Office of United States Attorneys

BILLINGS — A Lame Deer woman today admitted to assault charges after two passengers were seriously injured when the vehicle she was driving rolled on the Northern Cheyenne Indian Reservation, U.S. Attorney Jesse Laslovich said.

The defendant, Kendra Carol Cook, 34, pleaded guilty to two counts of assault resulting in serious bodily injury. Cook faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release on each count.

U.S. Magistrate Judge Timothy J. Cavan presided. A sentencing date will be set before U.S. District Judge Susan P. Watters. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Cook was detained pending further proceedings.

In court documents, the government alleged that on May 18, 2023, the FBI received a report that a car driven by Cook had rolled north of Lame Deer, injuring Cook and her two passengers. Cook was under the influence of alcohol at the time. A witness reported finding two women who were injured. The women told her that Cook had left the scene. One of the passengers, Jane Doe 2, was in the back seat, while another passenger, Jane Doe 1, was in the front seat. Cook told Doe 2 that she was drinking whiskey before picking her up. They bought alcohol and were drinking it while driving to Lame Deer. Cook was swerving all over the road, and, in Doe 2’s opinion, intentionally trying to wreck. Cook accelerated and turned the wheel, causing the car to go into a ditch and start flipping. Doe 1 estimated Cook was driving approximately 80 miles and hour and slowed to approximately 60 mph when they started swerving. Doe 1 denied there was any fighting or interfering with Cook. Cook acknowledged being under the influence of alcohol at the time of the wreck and claimed she and the passengers were fighting over the alcohol. Both victims suffered fractures and other serious injuries. The rollover occurred in a 35-mph speed zone.

MIL Security OSI –

January 29, 2025

MIL-OSI Security: Marshall Islands, military leaders strengthen partnership, defense

Source: United States INDO PACIFIC COMMAND

MAJURO, Marshall, Islands –

U.S. Indo-Pacific Command’s senior military official to the Republic of the Marshall Islands (RMI) met with local leaders in Majuro to discuss defense and security, Jan 23.

Commander, Joint Task Force-Micronesia (JTF-M) U.S. Navy Rear Adm. Greg Huffman spoke with representatives from the U.S. Embassy and RMI National Security Director Chris deBrum during the visit.

The U.S. has a longstanding relationship with the RMI and, continued under the recently renewed Compact of Free Association, is responsible for its defense. Established in June 2024, JTF-M’s mission is to synchronize military operations and activities across all domains from seabed to space to promote regional security and stability.

“I am thankful for the opportunity to build upon the partnership we share with the people of the Marshall Islands,” Huffman said. “We have the common goal of maintaining peace and security in the region and will continue to work together to grow our collective maritime domain awareness and strengthen our defense here and across all of Micronesia.”

Huffman shared his commitment to open lines of communication with RMI’s leadership and community about potential military activities and future investments. He also underscored the value of a common operating picture to counter illegal activity in the region.

“We look forward to partnering more closely with INDOPACOM to address security concerns,” deBrum said. “We have overlapping issues so to be able to share resources is critical to our mutual success.”

Huffman met with members of the Marshall Islands Marine Resources Authority (MIMRA) at their headquarters in Majuro, where the MIMRA team provided a capabilities brief. He also met with Commander, U.S. Army Garrison-Kwajalein Atoll Col. Andrew Morgan and Royal Australian Navy Lt. Cmdr. Lachlan Sommerville, maritime security advisor, for updates in their respective areas of responsibility.

Dedicated to promoting regional stability, JTF-M performs Homeland Defense, Defense Support to Civil Authorities, and Foreign Humanitarian Assistance through a whole of government approach within its assigned joint operations area.

For more information about JTF-M, visit https://www.pacom.mil/JTF-Micronesia/

MIL Security OSI –

January 29, 2025

MIL-OSI: Ponce Financial Group, Inc. Reports Fourth Quarter 2024 Results

Source: GlobeNewswire (MIL-OSI)

NEW YORK, Jan. 28, 2025 (GLOBE NEWSWIRE) — Ponce Financial Group, Inc., (the “Company”) (NASDAQ: PDLB), the holding company for Ponce Bank (the “Bank”), today announced results for the fourth quarter of 2024.

Fourth Quarter 2024 Highlights (Compared to Prior Periods):

Net income available to common stockholders was $2.7 million, or $0.12 per diluted share for the three months ended December 31, 2024, as compared to net income available to common stockholders of $2.2 million, or $0.10 per diluted share for the three months ended September 30, 2024 and net income available to common stockholders of $0.5 million, or $0.02 per diluted share for the three months ended December 31, 2023. Total net income for the three months ended December 31, 2024 was $2.9 million. The Company paid dividends of $0.3 million on its preferred stock during the three months ended December 31, 2024.
Included in the $2.7 million of net income available to common stockholders for the fourth quarter of 2024 results is $42.9 million in interest and dividend income and $2.1 million in non-interest income, offset by $22.2 million in interest expense, $17.3 million in non-interest expense, $1.5 million in provision for income taxes. $1.1 million in provision for credit losses and $0.3 million in dividends on preferred shares.
Net interest income of $20.7 million for the fourth quarter of 2024 increased $1.7 million, or 8.97%, from the prior quarter and increased $3.5 million, or 20.54%, from the same quarter last year.
Net interest margin was 2.80% for the fourth quarter of 2024, versus 2.65% for the prior quarter and 2.66% for the same quarter last year.

Full Year 2024 Highlights (Compared to 2023):

Net income available to common stockholders was $10.3 million, or $0.46 per diluted share for the year ended December 31, 2024, compared to net income available to common stockholders of $3.4 million, or $0.15 per diluted share for the year ended December 31, 2023. Total net income for the year ended December 31, 2024, prior to the payment of $0.6 million in dividends on preferred shares, was $11.0 million.
Net interest income for the year ended December 31, 2024 was $76.5 million, an increase of $11.2 million, or 17.18%, compared to $65.3 million for the year ended December 31, 2023.
Non-interest income for the year ended December 31, 2024 was $7.2 million, a decrease of $3.0 million, or 29.44%, from $10.2 million for the year ended December 31, 2023. The decrease was primarily driven by $4.2 million in grants that were received in the prior year.
Non-interest expense for the year ended December 31, 2024 was $66.7 million, a decrease of $2.0 million, or 2.90%, compared to $68.7 million for the year ended December 31, 2023.
Cash and equivalents were $139.8 million as of December 31, 2024, an increase of $0.6 million, or 0.47%, from $139.2 million as of December 31, 2023.
Securities totaled $472.9 million as of December 31, 2024, a decrease of $108.7 million, or 18.70%, from $581.7 million as of December 31, 2023 primarily due to regular principal payments, the maturity of one available-for-sale security in the amount of $4.0 million and one held-to-maturity security in the amount of $25.0 million and the call of one held-to-maturity security in the amount of $25.0 million.
Net loans receivable were $2.29 billion as of December 31, 2024, an increase of $390.7 million, or 20.61%, from $1.90 billion as of December 31, 2023.
Deposits were $1.88 billion as of December 31, 2024, an increase of $377.2 million, or 25.02%, from $1.51 billion as of December 31, 2023.

President and Chief Executive Officer’s Comments

Carlos P. Naudon, Ponce Financial Group, Inc.’s President and CEO, stated, “We are pleased with the progress we have made in 2024. We executed an agreement with the U.S. Treasury that gives us the option, upon achievement of certain conditions, to buy back the ECIP preferred shares we previously issued at favorable prices, we launched our PonceDirect digital bank and gained significant traction with SBA loans. Our levels of liquidity and capital remain strong, while our loans grew by 20.61% and deposits by 25.02%. We have seen consistent profitability over the past several quarters as we continue to see increases both in net interest income as well as net interest margin, while expenses are down year on year, reflecting both reduced development and continued adoption of our new technology. We remain committed to the communities we serve and our status as a Minority Depository Institution (“MDI”)/Community Development Financial Institution (“CDFI”), and we continue to invest in our people and in technology to improve our efficiency.”

Executive Chairman’s Comment

Steven A. Tsavaris, Ponce Financial Group’s Executive Chairman added, “We are working diligently to ensure that we will meet the conditions necessary to allow us to repurchase our ECIP preferred stock in the future. The agreement we executed with the U.S. Treasury in December 2024, allows for a repurchase of the ECIP preferred stock once we have achieved Deep Impact Lending, as defined under the ECIP program, that is at least 60% of our total originations on average over 16 consecutive quarters, provided that we also meet certain other conditions at the time we exercise the repurchase option. As of December 31, 2024, our Deep Impact Lending over the last 10 consecutive quarters stands at 79%, well above the threshold. Also, from second quarter of 2024 to fourth quarter of 2024, we have originated $514 million of Deep Impact Lending as well as $54 million of qualified lending which represents 383% of our base, which period, together with the first quarter of 2025, will determine the rate of dividends payable on the ECIP preferred stock from the third quarter of 2025 to the second quarter of 2026. With one quarter to go, we are confident that we will get to over 400% of our base and ensure another year of preferred dividends of 0.50%, which is the lowest dividend rate.”

Selected performance metrics are as follows (refer to “Key Metrics” for additional information):

	At or for the Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
Performance Ratios (Annualized):	2024			2024			2024			2024			2023
Return on average assets (1)		0.38	%		0.33	%		0.45	%		0.33	%		0.08	%
Return on average equity (1)		2.30	%		1.93	%		2.59	%		1.97	%		0.42	%
Net interest rate spread (1) (2)		1.98	%		1.77	%		1.72	%		1.82	%		1.74	%
Net interest margin (1) (3)		2.80	%		2.65	%		2.62	%		2.71	%		2.66	%
Non-interest expense to average assets (1)		2.25	%		2.19	%		2.28	%		2.35	%		2.66	%
Efficiency ratio (4)		75.63	%		80.87	%		80.09	%		82.56	%		96.83	%
Average interest-earning assets to average interest- bearing liabilities		127.60	%		128.35	%		129.73	%		129.69	%		133.50	%
Average equity to average assets		16.59	%		16.97	%		17.41	%		17.00	%		18.25	%

	At or for the Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
Capital Ratios (Annualized):	2024			2024			2024			2024			2023
Total capital to risk-weighted assets (Bank only)		21.47	%		21.61	%		22.47	%		22.79	%		23.30	%
Tier 1 capital to risk-weighted assets (Bank only)		20.40	%		20.45	%		21.24	%		21.54	%		22.05	%
Common equity Tier 1 capital to risk-weighted assets (Bank only)		20.40	%		20.45	%		21.24	%		21.54	%		22.05	%
Tier 1 capital to average assets (Bank only)		15.81	%		16.19	%		16.70	%		16.26	%		17.49	%

	At or for the Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
Asset Quality Ratios (Annualized):	2024			2024			2024			2024			2023
Allowance for loan losses as a percentage of total loans		0.97	%		1.09	%		1.18	%		1.23	%		1.36	%
Allowance for loan losses as a percentage of nonperforming loans		82.29	%		139.52	%		130.28	%		140.90	%		152.99	%
Net (charge-offs) recoveries to average outstanding loans (1)		(0.45	%)		(0.17	%)		(0.10	%)		(0.25	%)		(0.24	%)
Non-performing loans as a percentage of total gross loans		1.18	%		0.78	%		0.89	%		0.87	%		0.89	%
Non-performing loans as a percentage of total assets		0.90	%		0.57	%		0.65	%		0.62	%		0.62	%
Total non-performing assets as a percentage of total assets		0.90	%		0.57	%		0.65	%		0.62	%		0.62	%
Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty as a percentage of total assets (5)		1.06	%		0.73	%		0.82	%		0.79	%		0.81	%

	(1)	Annualized where appropriate.
	(2)	Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.
	(3)	Net interest margin represents net interest income divided by average total interest-earning assets.
	(4)	Efficiency ratio represents noninterest expense divided by the sum of net interest income and noninterest income.
	(5)	Balances include both modifications to borrowers experiencing financial difficulty, in accordance with ASU 2022-02 adopted on January 1, 2023, and previously existing troubled debt restructurings.

Summary of Results of Operations

Net income for the three months ended December 31, 2024 was $2.9 million compared to net income of $2.4 million for the three months ended September 30, 2024 and net income of $0.5 million for the three months ended December 31, 2023.

The $0.5 million increase of net income for the three months ended December 31, 2024 compared to the three months ended September 30, 2024 was attributed mainly to increases of $1.7 million in net interest income and $1.0 million in non-interest income, partially offset by increases of $1.0 million in non-interest expense, $0.9 million in provision for income taxes and $0.3 million in provision for credit losses.

The $2.4 million increase of net income for the three months ended December 31, 2024 compared to the three months ended December 31, 2023 was largely due to increases of $3.5 million in net interest income and $0.9 million in non-interest income and a decrease of $0.5 million in non-interest expense, partially offset by increases of $1.5 million in provision for credit losses and $1.1 million in provision for income taxes.

Net income for the year ended December 31, 2024 was $11.0 million compared to a net income of $3.4 million for the year ended December 31, 2023. The $7.6 million increase in net income was attributable to an increase of $11.2 million in net interest income and
a decrease of $1.9 million in non-interest expense, partially offset by a decrease of $2.9 million in non-interest income and increases of $2.2 million in provision for income taxes and $0.4 million in provision for credit losses.

Net Interest Income and Net Margin

Net interest income for the three months ended December 31, 2024, increased $1.7 million, or 8.97%, to $20.7 million compared to $19.0 million for the three months ended September 30, 2024 and increased $3.5 million, or 20.54%, compared to $17.2 million for the three months ended December 31, 2023.

Net interest income for the year ended December 31, 2024, increased $11.2 million, or 17.18%, to $76.5 million, compared to $65.3 million for the year ended December 31, 2023. The $11.2 million increase in net interest income was attributable to an increase of $36.8 million in total interest and dividend income, offset by an increase of $25.6 million in total interest expense.

For the year ended December 31, 2024, provision for credit losses amounted to $1.3 million, consisting of a provision for credit losses on loans in the amount of $1.5 million and a benefit on credit losses on held-to-maturity securities in the amount of $0.2 million.

Net interest margin was 2.80% for the three months ended December 31, 2024 compared to 2.65% for the prior quarter, an increase of 15bps and 2.66% for the same period last year, an increase of 14bps.

Net interest margin was 2.70% for the year ended December 31, 2024 compared to 2.66% for the year ended December 31, 2023, an increase of 4bps.

Non-interest Income

Non-interest income for the three months ended December 31, 2024, was $2.1 million, an increase of $0.9 million, or 82.19%, compared to $1.2 million for the three months ended September 30, 2024 and an increase of $0.8 million, or 63.19%, compared to $1.3 million for the three months ended December 31, 2023.

The $0.9 million increase in non-interest income for the three months ended December 31, 2024 compared to the three months ended September 30, 2024 was largely attributable to increases of $0.5 million in other non-interest income, $0.2 million in late and prepayment charges and $0.1 million in income on sale of SBA loans.

The $0.8 million increase in non-interest income for the three months ended December 31, 2024 compared to the three months ended December 31, 2023 was largely attributable to increases of $1.1 million in other non-interest income and $0.1 million in income on sale of SBA loans, partially offset by a decrease of $0.4 million in grant income received in the fourth quarter of 2023.

Non-interest income for the year ended December 31, 2024, was $7.2 million, a decrease of $3.0 million, or 29.44%, compared to $10.2 million for the year ended December 31, 2023. The $3.0 million decrease in non-interest income was largely attributable to $4.2 million related to grants received in 2023 and a decrease of $1.2 million in late and prepayment charges, partially offset by increases of $1.8 million in other non-interest income, $0.5 million in income on sale of mortgage loans and $0.1 million in income on sale of SBA loans.

Non-interest Expense

Non-interest expense for the three months ended December 31, 2024, was $17.3 million, an increase of $0.9 million, or 5.82%, compared to $16.3 million for the three months ended September 30, 2024 and a decrease of $0.6 million, or 3.54%, compared to $17.9 million for the three months ended December 31, 2023.

The $0.9 million increase in non-interest expense from the three months ended September 30, 2024 was mainly attributable to increases of $0.4 million in professional fees, $0.2 million in other operating expense, $0.1 million in marketing and promotional expenses, $0.1 million in office supplies, telephone and postage and $0.1 million in occupancy and equipment.

The $0.6 million decrease in non-interest expense from the three months ended December 31, 2023 was mainly attributable to decreases of $0.6 million in provision for contingencies, $0.6 million in compensation and benefits and $0.3 million in professional fees, partially offset by increases of $0.3 million in other operating expense, $0.2 million in occupancy and equipment, $0.1 million in marketing and promotional expenses and $0.1 million in direct loan expenses.

Non-interest expense for the year ended December 31, 2024, was $66.7 million, a decrease of $2.0 million, or 2.90%, compared to $68.7 million for the year ended December 31, 2023. The $2.0 million decrease in non-interest expense from the year ended December 31, 2023 was mainly attributable to decreases of $3.1 million in provision for contingencies, $0.9 million in professional fees, $0.7 million in data processing expenses, $0.5 million in office supplies, telephone and postage, partially offset by a decrease in microloans recoveries of $1.3 million and increases of $0.9 million in direct loan expenses, $0.3 million in occupancy and equipment and $0.2 million in compensation and benefits.

Balance Sheet Summary

Total assets increased $289.2 million, or 10.51%, to $3.04 billion as of December 31, 2024 from $2.75 billion as of December 31, 2023. The increase in total assets is largely attributable to increases of $390.7 million in net loans receivable, $9.8 million in Federal Home Loan Bank of New York stock, $0.8 million in mortgage loans held for sale, $0.7 million in premises and equipment and $0.6 million in cash and cash equivalents, partially offset by decreases of $93.8 million in held-to-maturity securities, $14.9 million in available-for-sale securities, $2.3 million in deferred tax assets and $2.2 million in right of use assets.

Total liabilities increased $275.1 million, or 12.18%, to $2.53 billion as of December 31, 2024 from $2.26 billion as of December 31, 2023. The increase in total liabilities was largely attributable to an increase of $377.2 million in deposits, partially offset by decreases of $88.3 million in borrowings, $8.3 million in accrued interest payable, $3.1 million in other liabilities, $2.0 million in operating lease liabilities and $0.4 million in advance payments by borrowers for taxes.

Total stockholders’ equity increased $14.1 million, or 2.87%, to $505.5 million as of December 31, 2024, from $491.4 million as of December 31, 2023. The $14.1 million increase in stockholders’ equity was largely attributable to $11.0 million in net income, $2.1 million impact to additional paid in capital as a result of share-based compensation and $1.4 million from release of ESOP shares and $0.3 million in other comprehensive income, offset by $0.6 million in dividends on preferred shares.

About Ponce Financial Group, Inc.

Ponce Financial Group, Inc. is the holding company for Ponce Bank. Ponce Bank is a Minority Depository Institution, a Community Development Financial Institution, and a certified Small Business Administration lender. Ponce Bank’s business primarily consists of taking deposits from the general public and to a lesser extent alternative funding sources and investing those funds, together with funds generated from operations and borrowings, in mortgage loans, consisting of 1-4 family residences (investor-owned and owner-occupied), multifamily residences, nonresidential properties, construction and land, and, to a lesser extent, in business and consumer loans. Ponce Bank also invests in securities, which consist of U.S. Government and federal agency securities and securities issued by government-sponsored or government-owned enterprises, as well as, mortgage-backed securities, corporate bonds and obligations, and Federal Home Loan Bank stock.

Forward Looking Statements

Certain statements herein constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by words such as “believes,” “will,” “would,” “expects,” “project,” “may,” “could,” “developments,” “strategic,” “launching,” “opportunities,” “anticipates,” “estimates,” “intends,” “plans,” “targets” and similar expressions. These statements are based upon the current beliefs and expectations of management and are subject to significant risks and uncertainties. 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, adverse conditions in the capital and debt markets and the impact of such conditions on business activities; changes in interest rates; competitive pressures from other financial institutions; the effects of general economic conditions on a national basis or in the local markets in which Ponce Bank operates, including changes that adversely affect borrowers’ ability to service and repay Ponce Bank’s loans; changes in the value of securities in the investment portfolio; changes in loan default and charge-off rates; fluctuations in real estate values; the adequacy of loan loss reserves; decreases in deposit levels necessitating increased borrowing to fund loans and investments; operational risks including, but not limited to, cybersecurity, fraud and natural disasters; changes in government regulation; changes in accounting standards and practices; the risk that intangibles recorded in the financial statements will become impaired; demand for loans in Ponce Bank’s market area; Ponce Bank’s ability to attract and maintain deposits; risks related to the implementation of acquisitions, dispositions, and restructurings; the risk that Ponce Financial Group, Inc. may not be successful in the implementation of its business strategy; changes in assumptions used in making such forward-looking statements and the risk factors described in Ponce Financial Group, Inc.’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission (the “SEC”), which are available at the SEC’s website, www.sec.gov. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. Ponce Financial Group, Inc. disclaims any obligation to publicly update or revise any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes, except as may be required by applicable law or regulation.

Ponce Financial Group, Inc. and Subsidiaries
Consolidated Statements of Financial Condition
(Dollars in thousands, except for share data)


	As of
	December 31,			September 30,			June 30,			March 31,			December 31,
	2024			2024			2024			2024			2023
ASSETS
Cash and due from banks:
Cash	$	35,478		$	32,061		$	23,128		$	29,972		$	28,930
Interest-bearing deposits		104,361			123,751			80,038			104,752			110,260
Total cash and cash equivalents		139,839			155,812			103,166			134,724			139,190
Available-for-sale securities, at fair value		104,970			111,005			113,125			116,044			119,902
Held-to-maturity securities, at amortized cost		367,938			403,736			442,113			452,955			461,748
Placement with banks		249			249			249			249			249
Mortgage loans held for sale, at fair value		10,736			9,566			37,764			7,860			9,980
Loans receivable, net		2,286,599			2,180,331			2,022,173			1,981,428			1,895,886
Accrued interest receivable		17,771			16,890			17,441			18,063			18,010
Premises and equipment, net		16,794			16,843			16,976			17,396			16,053
Right of use assets		29,093			29,785			30,349			31,021			31,272
Federal Home Loan Bank of New York stock (FHLBNY), at cost		29,182			28,515			23,972			23,892			19,377
Deferred tax assets		12,074			11,845			13,172			13,919			14,332
Other assets		24,693			51,392			21,507			21,151			24,723
Total assets	$	3,039,938		$	3,015,969		$	2,842,007		$	2,818,702		$	2,750,722
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Deposits	$	1,884,864		$	1,870,323		$	1,606,097		$	1,585,784		$	1,507,620
Operating lease liabilities		30,696			31,343			31,861			32,486			32,684
Accrued interest payable		3,712			2,918			6,820			4,218			11,965
Advance payments by borrowers for taxes and insurance		10,349			13,733			10,838			13,245			10,778
Borrowings		596,100			580,421			680,421			680,421			684,421
Other liabilities		8,717			12,642			8,313			8,866			11,859
Total liabilities		2,534,438			2,511,380			2,344,350			2,325,020			2,259,327
Commitments and contingencies
Stockholders’ Equity:
Preferred stock, $0.01 par value; 100,000,000 shares authorized		225,000			225,000			225,000			225,000			225,000
Common stock, $0.01 par value; 200,000,000 shares authorized		249			249			249			249			249
Treasury stock, at cost		(7,707	)		(9,445	)		(9,519	)		(9,702	)		(9,747	)
Additional paid-in-capital		207,319			208,478			207,934			207,584			207,106
Retained earnings		107,754			105,103			102,951			99,834			97,420
Accumulated other comprehensive loss		(15,297	)		(12,686	)		(16,557	)		(16,590	)		(15,649	)
Unearned compensation ─ ESOP		(11,818	)		(12,110	)		(12,401	)		(12,693	)		(12,984	)
Total stockholders’ equity		505,500			504,589			497,657			493,682			491,395
Total liabilities and stockholders’ equity	$	3,039,938		$	3,015,969		$	2,842,007		$	2,818,702		$	2,750,722

Ponce Financial Group, Inc. and Subsidiaries
Consolidated Statements of Operations
(Dollars in thousands, except per share data)

	Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
	2024			2024			2024			2024			2023
Interest and dividend income:
Interest on loans receivable	$	35,622		$	32,945		$	31,281		$	30,664		$	27,814
Interest on deposits due from banks		1,783			2,430			1,542			2,911			990
Interest and dividend on securities and FHLBNY stock		5,481			5,918			5,969			6,091			6,146
Total interest and dividend income		42,886			41,293			38,792			39,666			34,950
Interest expense:
Interest on certificates of deposit		8,104			6,926			6,358			6,380			5,103
Interest on other deposits		8,476			8,519			7,389			6,540			5,706
Interest on borrowings		5,576			6,825			7,141			7,923			6,944
Total interest expense		22,156			22,270			20,888			20,843			17,753
Net interest income		20,730			19,023			17,904			18,823			17,197
Provision (benefit) for credit losses		1,099			789			(374	)		(180	)		(375	)
Net interest income after provision (benefit) for credit losses		19,631			18,234			18,278			19,003			17,572
Non-interest income:
Service charges and fees		500			508			492			473			498
Brokerage commissions		44			—			9			8			13
Late and prepayment charges		318			77			426			359			365
Income on sale of mortgage loans		254			218			274			302			244
Income on sale of SBA loans		148			—			—			—			—
Grant income		—			—			—			—			438
Other		833			348			1,057			565			(273	)
Total non-interest income		2,097			1,151			2,258			1,707			1,285
Non-interest expense:
Compensation and benefits		7,668			7,674			7,724			7,844			8,262
Occupancy and equipment		3,863			3,786			3,564			3,667			3,686
Data processing expenses		1,143			1,099			1,013			1,127			1,101
Direct loan expenses		617			573			633			732			497
(Benefit) provision for contingencies		(202	)		(252	)		(493	)		164			418
Insurance and surety bond premiums		293			292			263			253			250
Office supplies, telephone and postage		294			222			233			249			294
Professional fees		1,703			1,351			1,369			1,723			2,040
Microloans recoveries		(29	)		(54	)		(65	)		(53	)		(152	)
Marketing and promotional expenses		289			180			145			100			146
Federal deposit insurance and regulatory assessment ⁽¹⁾		418			392			428			389			395
Other operating expenses ⁽¹⁾		1,206			1,051			1,333			755			960
Total non-interest expense		17,263			16,314			16,147			16,950			17,897
Income before income taxes		4,465			3,071			4,389			3,760			960
Provision for income taxes		1,532			638			1,197			1,346			442
Net income	$	2,933		$	2,433		$	3,192		$	2,414		$	518
Dividends on preferred shares		282			281			75			—			—
Net income available to common stockholders	$	2,651		$	2,152		$	3,117		$	2,414		$	518
Earnings per common share:
Basic	$	0.12		$	0.10		$	0.14		$	0.11		$	0.02
Diluted	$	0.12		$	0.10		$	0.14		$	0.11		$	0.02
Weighted average common shares outstanding:
Basic		22,528,160			22,446,009			22,409,803			22,353,492			22,224,945
Diluted		22,807,644			22,612,028			22,419,309			22,366,728			22,406,102

_{⁽¹⁾ For the three months ended September 30, 2024, June 30, 2024, March 31, 2024 and December 31, 2023, $0.3 million of federal deposit insurance was reclassified from other operating expenses to federal deposit insurance and regulatory assessments and $0.1 million of directors fees were reclassified from federal deposit insurance and regulatory assessments to other operating expenses for each periods.}

Ponce Financial Group, Inc. and Subsidiaries
Consolidated Statements of Operations
(Dollars in thousands, except per share data)

	For the Years Ended December 31,
	2024			2023			Variance $			Variance %
Interest and dividend income:
Interest on loans receivable	$	130,512		$	95,805		$	34,707			36.23	%
Interest on deposits due from banks		8,666			4,973			3,693			74.26	%
Interest and dividend on securities and FHLBNY stock		23,459			25,089			(1,630	)		(6.50	%)
Total interest and dividend income		162,637			125,867			36,770			29.21	%
Interest expense:
Interest on certificates of deposit		27,768			16,571			11,197			67.57	%
Interest on other deposits		30,924			18,570			12,354			66.53	%
Interest on borrowings		27,465			25,460			2,005			7.88	%
Total interest expense		86,157			60,601			25,556			42.17	%
Net interest income		76,480			65,266			11,214			17.18	%
Provision for credit losses		1,334			973			361			37.10	%
Net interest income after provision for credit losses		75,146			64,293			10,853			16.88	%
Non-interest income:
Service charges and fees		1,973			1,986			(13	)		(0.65	%)
Brokerage commissions		61			80			(19	)		(23.75	%)
Late and prepayment charges		1,180			2,365			(1,185	)		(50.11	%)
Income on sale of mortgage loans		1,048			598			450			75.25	%
Income on sale of SBA loans		148			—			148			100.00	%
Grant income		—			4,156			(4,156	)		(100.00	%)
Other		2,803			1,038			1,765			170.04	%
Total non-interest income		7,213			10,223			(3,010	)		(29.44	%)
Non-interest expense:
Compensation and benefits		30,910			30,699			211			0.69	%
Occupancy and equipment		14,880			14,568			312			2.14	%
Data processing expenses		4,382			5,083			(701	)		(13.79	%)
Direct loan expenses		2,555			1,623			932			57.42	%
(Benefit) provision for contingencies		(783	)		2,311			(3,094	)		(133.88	%)
Insurance and surety bond premiums		1,101			1,018			83			8.15	%
Office supplies, telephone and postage		998			1,483			(485	)		(32.70	%)
Professional fees		6,146			7,092			(946	)		(13.34	%)
Microloans recoveries		(201	)		(1,481	)		1,280			(86.43	%)
Marketing and promotional expenses		714			825			(111	)		(13.45	%)
Federal deposit insurance and regulatory assessments ⁽¹⁾		1,627			1,472			155			10.53	%
Other operating expenses ⁽¹⁾		4,345			3,970			375			9.45	%
Total non-interest expense		66,674			68,663			(1,989	)		(2.90	%)
Income before income taxes		15,685			5,853			9,832			167.98	%
Provision for income taxes		4,713			2,501			2,212			88.44	%
Net income	$	10,972		$	3,352		$	7,620			227.33	%
Dividends on preferred shares		638			—			638			100.00	%
Net income available to common stockholders	$	10,334		$	3,352		$	6,982			208.29	%
Earnings per common share:
Basic	$	0.46		$	0.15		$	0.31			206.67	%
Diluted	$	0.46		$	0.15		$	0.31			206.67	%
Weighted average common shares outstanding:
Basic		22,434,654			22,745,317			(310,663	)		(1.37	%)
Diluted		22,551,715			22,822,313			(270,598	)		(1.19	%)

_{⁽¹⁾ For the year ended December 31, 2023, $1.2 million of federal deposit insurance was reclassified from other operating expenses to federal deposit insurance and regulatory assessments and $0.4 million of directors fees were reclassified from federal deposit insurance and regulatory assessments to other operating expenses.}

Ponce Financial Group, Inc. and Subsidiaries
Key Metrics

	At or for the Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
	2024			2024			2024			2024			2023
Performance Ratios:
Return on average assets (1)		0.38	%		0.33	%		0.45	%		0.33	%		0.08	%
Return on average equity (1)		2.30	%		1.93	%		2.59	%		1.97	%		0.42	%
Net interest rate spread (1) (2)		1.98	%		1.77	%		1.72	%		1.82	%		1.74	%
Net interest margin (1) (3)		2.80	%		2.65	%		2.62	%		2.71	%		2.66	%
Non-interest expense to average assets (1)		2.25	%		2.19	%		2.28	%		2.35	%		2.66	%
Efficiency ratio (4)		75.63	%		80.87	%		80.09	%		82.56	%		96.83	%
Average interest-earning assets to average interest- bearing liabilities		127.60	%		128.35	%		129.73	%		129.69	%		133.50	%
Average equity to average assets		16.59	%		16.97	%		17.41	%		17.00	%		18.25	%
Capital Ratios:
Total capital to risk-weighted assets (Bank only)		21.47	%		21.61	%		22.47	%		22.79	%		23.30	%
Tier 1 capital to risk-weighted assets (Bank only)		20.40	%		20.45	%		21.24	%		21.54	%		22.05	%
Common equity Tier 1 capital to risk-weighted assets (Bank only)		20.40	%		20.45	%		21.24	%		21.54	%		22.05	%
Tier 1 capital to average assets (Bank only)		15.81	%		16.19	%		16.70	%		16.26	%		17.49	%
Asset Quality Ratios:
Allowance for credit losses on loans as a percentage of total loans		0.97	%		1.09	%		1.18	%		1.23	%		1.36	%
Allowance for credit losses on loans as a percentage of nonperforming loans		82.29	%		139.52	%		130.28	%		140.90	%		152.99	%
Net (charge-offs) recoveries to average outstanding loans (1)		(0.45	%)		(0.17	%)		(0.10	%)		(0.25	%)		(0.24	%)
Non-performing loans as a percentage of total gross loans		1.18	%		0.78	%		0.89	%		0.87	%		0.89	%
Non-performing loans as a percentage of total assets		0.90	%		0.57	%		0.65	%		0.62	%		0.62	%
Total non-performing assets as a percentage of total assets		0.90	%		0.57	%		0.65	%		0.62	%		0.62	%
Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty as a percentage of total assets (5)		1.06	%		0.73	%		0.82	%		0.79	%		0.81	%
Other:
Number of offices		19			19			18			18			18
Number of full-time equivalent employees		218			228			227			233			237

	(1)	Annualized where appropriate.
	(2)	Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.
	(3)	Net interest margin represents net interest income divided by average total interest-earning assets.
	(4)	Efficiency ratio represents noninterest expense divided by the sum of net interest income and non-interest income.
	(5)	Balances include both modifications to borrowers experiencing financial difficulty, in accordance with ASU 2022-02 adopted on January 1, 2023, and previously existing troubled debt restructurings.

Ponce Financial Group, Inc. and Subsidiaries
Securities Portfolio

	December 31, 2024										December 31, 2023
				Gross		Gross								Gross		Gross
	Amortized			Unrealized		Unrealized					Amortized			Unrealized		Unrealized
	Cost			Gains		Losses			Fair Value		Cost			Gains		Losses			Fair Value
	(in thousands)										(in thousands)
Available-for-Sale Securities:
U.S. Government Bonds	$	2,994		$	—	$	(121	)	$	2,873	$	2,990		$	—	$	(206	)	$	2,784
Corporate Bonds		21,762			10		(1,368	)		20,404		25,790			—		(2,122	)		23,668
Mortgage-Backed Securities:
Collateralized Mortgage Obligations ⁽¹⁾		34,526			—		(5,991	)		28,535		39,375			—		(6,227	)		33,148
FHLMC Certificates		9,028			—		(1,366	)		7,662		10,163			—		(1,482	)		8,681
FNMA Certificates		56,010			—		(10,602	)		45,408		61,359			—		(9,842	)		51,517
GNMA Certificates		88			—		—			88		104			—		—			104
Total available-for-sale securities	$	124,408		$	10	$	(19,448	)	$	104,970	$	139,781		$	—	$	(19,879	)	$	119,902

Held-to-Maturity Securities:
U.S. Agency Bonds	$	25,000		$	—	$	(40	)	$	24,960	$	25,000		$	—	$	(181	)	$	24,819
Corporate Bonds		32,500			12		(535	)		31,977		82,500			—		(2,691	)		79,809
Mortgage-Backed Securities:
Collateralized Mortgage Obligations ⁽¹⁾		186,634			—		(7,052	)		179,582		212,093			104		(5,170	)		207,027
FHLMC Certificates		3,229			—		(223	)		3,006		3,897			—		(244	)		3,653
FNMA Certificates		105,417			—		(5,114	)		100,303		118,944			—		(4,088	)		114,856
SBA Certificates		15,374			92		—			15,466		19,712			166		—			19,878
Allowance for Credit Losses		(216	)		—		—			—		(398	)		—		—			—
Total held-to-maturity securities	$	367,938		$	104	$	(12,964	)	$	355,294	$	461,748		$	270	$	(12,374	)	$	450,042

_{⁽¹⁾ Comprised of Federal Home Loan Mortgage Corporation (“FHLMC”), Federal National Mortgage Association (“FNMA”) and Ginnie Mae (“GNMA”) issued securities.}

The following table presents the activity in the allowance for credit losses for held-to-maturity securities.

	For the Years Ended December 31,
	2024			2023
Allowance for credit losses on securities at beginning of the period	$	398		$	—
CECL adoption		—			662
Benefit for credit losses		(182	)		(264	)
Allowance for credit losses on securities at end of the period	$	216		$	398

Ponce Financial Group, Inc. and Subsidiaries
Loan Portfolio

	As of
	December 31,						September 30,						June 30,						March 31,						December 31,
	2024						2024						2024						2024						2023
	Amount			Percent			Amount			Percent			Amount			Percent			Amount			Percent			Amount			Percent
	(Dollars in thousands)
Mortgage loans:
1-4 family residential
Investor Owned	$	330,053			14.30	%	$	332,380			15.09	%	$	337,292			16.49	%	$	339,331			16.92	%	$	343,689			17.89	%
Owner-Occupied		142,363			6.17	%		145,065			6.59	%		147,485			7.21	%		150,842			7.52	%		152,311			7.93	%
Multifamily residential		670,159			29.04	%		678,029			30.78	%		545,323			26.66	%		545,825			27.22	%		550,559			28.65	%
Nonresidential properties		389,898			16.89	%		383,277			17.40	%		337,583			16.51	%		327,350			16.32	%		342,343			17.81	%
Construction and land		733,660			31.79	%		631,461			28.67	%		641,879			31.39	%		608,665			30.35	%		503,925			26.22	%
Total mortgage loans		2,266,133			98.19	%		2,170,212			98.53	%		2,009,562			98.26	%		1,972,013			98.33	%		1,892,827			98.50	%
Non-mortgage loans:
Business loans		40,849			1.77	%		28,499			1.29	%		30,222			1.48	%		26,664			1.33	%		19,779			1.03	%
Consumer loans (1)		1,038			0.04	%		4,021			0.18	%		5,305			0.26	%		6,741			0.34	%		8,966			0.47	%
Total non-mortgage loans		41,887			1.81	%		32,520			1.47	%		35,527			1.74	%		33,405			1.67	%		28,745			1.50	%
Total loans, gross		2,308,020			100.00	%		2,202,732			100.00	%		2,045,089			100.00	%		2,005,418			100.00	%		1,921,572			100.00	%
Net deferred loan origination costs		1,081						1,565						1,145						674						468
Allowance for credit losses on loans		(22,502	)					(23,966	)					(24,061	)					(24,664	)					(26,154	)
Loans, net	$	2,286,599					$	2,180,331					$	2,022,173					$	1,981,428					$	1,895,886

_{⁽¹⁾ As of September 30, 2024, June 30, 2024, March 31, 2024 and December 31, 2023, consumer loans include $3.0 million, $4.3 million, $5.7 million and $8.0 million, respectively, of microloans originated by the Bank. As of December 31, 2024, these microloans were charged-off.}

Ponce Financial Group, Inc. and Subsidiaries
Microloans Exposure (previously originated by the Bank under its arrangement with Grain)

Total Microloans Exposure as of December 31, 2024
(in thousands)
Microloans Receivable from Grain
Microloans originated – put back (inception-to-December 31, 2024)	$	23,903
Write-downs, net of recoveries (inception-to-date as of December 31, 2024)		(15,258	)
Cash receipts (inception-to-December 31, 2024)		(6,819	)
Grant/reserve		(1,826	)
Net receivable as of December 31, 2024	$	—
Microloans Receivables from Borrowers
Microloans receivable as of December 31, 2024	$	—
Allowance for credit losses on loans as of December 31, 2024		—
Microloans, net of allowance for credit losses on loans as of December 31, 2024	$	—
Investments
Investment in Grain	$	1,000
Investment write-off in Q3 2022		(1,000	)
Net investment as of December 31, 2024		—
Total exposure related to microloans as of December 31, 2024 ⁽¹⁾	$	—

_{⁽¹⁾ As of December 31, 2024, the remaining microloans were charged-off.}

Ponce Financial Group, Inc. and Subsidiaries
Allowance for Credit Losses on Loans

	For the Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
	2024			2024			2024			2024			2023
	(Dollars in thousands)
Allowance for credit losses on loans at beginning of the period	$	23,966		$	24,061		$	24,664		$	26,154		$	27,414
Provision (benefit) for credit losses on loans		1,090			801			(120	)		(255	)		(126	)
Charge-offs:
Mortgage loans:
1-4 family residences
Investor owned		—			—			—			—			—
Owner occupied		—			—			—			—			—
Multifamily residences		—			—			—			—			—
Nonresidential properties		—			(7	)		—			—			—
Construction and land		—			—			—			—			—
Non-mortgage loans:
Business		(232	)		(450	)		—			(52	)		(63	)
Consumer		(2,465	)		(634	)		(747	)		(1,302	)		(1,135	)
Total charge-offs		(2,697	)		(1,091	)		(747	)		(1,354	)		(1,198	)
Recoveries:
Non-mortgage loans:
Business		—			1			7			1			—
Consumer		143			194			257			118			64
Total recoveries		143			195			264			119			64
Net (charge-offs) recoveries		(2,554	)		(896	)		(483	)		(1,235	)		(1,134	)
Allowance for credit losses on loans at end of the period	$	22,502		$	23,966		$	24,061		$	24,664		$	26,154

Ponce Financial Group, Inc. and Subsidiaries
Deposits

	As of
	December 31,					September 30,					June 30,					March 31,					December 31,
	2024					2024					2024					2024					2023
	Amount		Percent			Amount		Percent			Amount		Percent			Amount		Percent			Amount		Percent
	(Dollars in thousands)
Demand ⁽¹⁾	$	169,178		8.98	%	$	182,737		9.78	%	$	178,125		11.09	%	$	191,541		12.07	%	$	185,151		12.28	%
Interest-bearing deposits:
NOW/IOLA accounts ⁽¹⁾		62,616		3.32	%		71,445		3.82	%		81,178		5.05	%		73,202		4.62	%		77,909		5.17	%
Money market accounts		636,219		33.75	%		660,168		35.30	%		502,255		31.27	%		482,344		30.42	%		432,735		28.70	%
Reciprocal deposits		130,677		6.93	%		94,145		5.03	%		109,945		6.85	%		97,718		6.16	%		96,860		6.42	%
Savings accounts		105,870		5.62	%		108,941		5.82	%		109,694		6.83	%		112,713		7.11	%		114,139		7.57	%
Total NOW, money market, reciprocal and savings accounts		935,382		49.62	%		934,699		49.97	%		803,072		50.00	%		765,977		48.31	%		721,643		47.86	%
Certificates of deposit of $250K or more ⁽³⁾		204,293		10.84	%		210,262		11.25	%		189,683		11.82	%		183,478		11.57	%		167,530		11.12	%
Brokered certificates of deposit ⁽²⁾		94,531		5.02	%		94,531		5.05	%		94,614		5.89	%		94,689		5.97	%		98,729		6.55	%
Listing service deposits ⁽²⁾		7,376		0.39	%		7,376		0.39	%		9,361		0.58	%		12,688		0.80	%		14,433		0.96	%
All other certificates of deposit less than $250K ⁽³⁾		474,104		25.15	%		440,718		23.56	%		331,242		20.62	%		337,411		21.28	%		320,134		21.23	%
Total certificates of deposit		780,304		41.40	%		752,887		40.25	%		624,900		38.91	%		628,266		39.62	%		600,826		39.86	%
Total interest-bearing deposits		1,715,686		91.02	%		1,687,586		90.22	%		1,427,972		88.91	%		1,394,243		87.93	%		1,322,469		87.72	%
Total deposits	$	1,884,864		100.00	%	$	1,870,323		100.00	%	$	1,606,097		100.00	%	$	1,585,784		100.00	%	$	1,507,620		100.00	%

	(1)	As of December 31, 2023, $58.2 million was reclassified from demand to NOW/IOLA accounts.
	(2)	As of December 31, 2023, there were $0.3 million in individual listing service deposits amounting to $250,000 or more. As of December 31, 2024, there were no individual listing service deposits amounting to $250,000 or more. All brokered certificates of deposit individually amounted to less than $250,000.
	(3)	As of September 30, 2024, June 30,2024, March 31, 2024 and December 31, 2023, $36.2 million, $33.5 million, $37.2 million and $35.4 million, respectively, were reclassified from all other certificates of deposit less than $250K to certificates of deposit of $250K or more.

Ponce Financial Group, Inc. and Subsidiaries
Borrowings

	December 31,							December 31,
	2024							2023
	Scheduled Maturity		Redeemable at Call Date		Weighted Average Rate			Scheduled Maturity		Redeemable at Call Date		Weighted Average Rate
	(Dollars in thousands)
Overnight line of credit advance	$	25,000	$	25,000		4.69	%	$	—	$	—		—	%

Term advances ending:
2024		—		—		—			363,321		363,321		4.55
2025		100,000		100,000		4.48			50,000		50,000		4.41
2026		200,000		200,000		4.25			—		—		—
2027		212,000		212,000		3.44			212,000		212,000		3.44
2028		9,100		9,100		3.84			9,100		9,100		3.84
2029		50,000		50,000		3.35			50,000		50,000		3.35
	$	596,100	$	596,100		3.94	%	$	684,421	$	684,421		4.10	%

Ponce Financial Group, Inc. and Subsidiaries
Nonperforming Assets

	As of Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
	2024			2024			2024			2024			2023
	(Dollars in thousands)
Non-accrual loans:
Mortgage loans:
1-4 family residential
Investor owned	$	436		$	436		$	436		$	399		$	793
Owner occupied		1,423			1,423			1,423			1,426			1,682
Multifamily residential		10,271			4,685			5,754			4,098			2,979
Nonresidential properties		—			824			828			441			—
Construction and land		14,158			8,907			8,907			10,277			10,759
Non-mortgage loans:
Business		343			180			396			146			165
Consumer		—			—			—			—			—
Total non-accrual loans (not including non-accruing modifications to borrowers experiencing financial difficulty) ⁽¹⁾	$	26,631		$	16,455		$	17,744		$	16,787		$	16,378

Non-accruing modifications to borrowers experiencing financial difficulty ⁽¹⁾:
Mortgage loans:
1-4 family residential
Investor owned	$	279		$	278		$	277		$	270		$	270
Owner occupied		435			444			448			447			447
Multifamily residential		—			—			—			—			—
Nonresidential properties		—			—			—			—			—
Construction and land		—			—			—			—			—
Non-mortgage loans:
Business		—			—			—			—			—
Consumer		—			—			—			—			—
Total non-accruing modifications to borrowers experiencing financial difficulty ⁽¹⁾		714			722			725			717			717
Total non-accrual loans ⁽²⁾	$	27,345		$	17,177		$	18,469		$	17,504		$	17,095

Accruing modifications to borrowers experiencing financial difficulty (1):
Mortgage loans:
1-4 family residential
Investor owned	$	1,807		$	1,821		$	1,830		$	1,850		$	2,112
Owner occupied		2,062			2,116			2,171			2,288			2,313
Multifamily residential		—			—			—			—			—
Nonresidential properties		652			672			707			748			757
Construction and land		—			—			—			—			—
Non-mortgage loans:
Business		215			222			—			—			—
Consumer		—			—			—			—			—
Total accruing modifications to borrowers experiencing financial difficulty ⁽¹⁾	$	4,736		$	4,831		$	4,708		$	4,886		$	5,182
Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty ⁽¹⁾	$	32,081		$	22,008		$	23,177		$	22,390		$	22,277
Total non-performing loans to total gross loans		1.18	%		0.78	%		0.89	%		0.87	%		0.89	%
Total non-performing assets to total assets		0.90	%		0.57	%		0.65	%		0.62	%		0.62	%
Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty as a percentage of total assets ⁽¹⁾		1.06	%		0.73	%		0.82	%		0.79	%		0.81	%

	(1)	Balances include both modifications to borrowers experiencing financial difficulty, in accordance with ASU 2022-02 adopted on January 1, 2023, and previously existing troubled debt restructurings.
	(2)	Includes nonperforming mortgage loans held for sale.

Ponce Financial Group, Inc. and Subsidiaries
Average Balance Sheets

	For the Three Months Ended December 31,
	2024						2023
	Average						Average
	Outstanding				Average		Outstanding				Average
	Balance		Interest		Yield/Rate ⁽¹⁾		Balance		Interest		Yield/Rate ⁽¹⁾
	(Dollars in thousands)
Interest-earning assets:
Loans ⁽²⁾	$	2,261,426	$	35,622	6.27	%	$	1,884,301	$	27,814	5.86	%
Securities ⁽³⁾		507,510		4,860	3.81	%		582,563		5,715	3.89	%
Other ⁽⁴⁾		179,701		2,404	5.32	%		96,070		1,421	5.87	%
Total interest-earning assets		2,948,637		42,886	5.79	%		2,562,934		34,950	5.41	%
Non-interest-earning assets		108,558						107,305
Total assets	$	3,057,195					$	2,670,239
Interest-bearing liabilities:
NOW/IOLA ^{(5) (6)}	$	68,776	$	119	0.69	%	$	75,926	$	181	0.95	%
Money market ⁽⁶⁾		761,130		8,329	4.35	%		474,306		5,495	4.60	%
Savings		109,217		27	0.10	%		116,600		28	0.10	%
Certificates of deposit		783,335		8,104	4.12	%		559,713		5,103	3.62	%
Total deposits		1,722,458		16,579	3.83	%		1,226,545		10,807	3.50	%
Advance payments by borrowers		15,147		1	0.03	%		15,033		2	0.05	%
Borrowings		573,316		5,576	3.87	%		678,235		6,944	4.06	%
Total interest-bearing liabilities		2,310,921		22,156	3.81	%		1,919,813		17,753	3.67	%
Non-interest-bearing liabilities:
Non-interest-bearing demand ⁽⁵⁾		191,355		—				211,434		—
Other non-interest-bearing liabilities		47,875		—				51,764		—
Total non-interest-bearing liabilities		239,230		—				263,198		—
Total liabilities		2,550,151		22,156				2,183,011		17,753
Total equity		507,044						487,228
Total liabilities and total equity	$	3,057,195			3.81	%	$	2,670,239			3.67	%
Net interest income			$	20,730					$	17,197
Net interest rate spread ⁽⁷⁾					1.98	%					1.74	%
Net interest-earning assets ⁽⁸⁾	$	637,716					$	643,121
Net interest margin ⁽⁹⁾					2.80	%					2.66	%
Average interest-earning assets to interest-bearing liabilities					127.60	%					133.50	%

	(1)	Annualized where appropriate.
	(2)	Loans include loans and mortgage loans held for sale, at fair value.
	(3)	Securities include available-for-sale securities and held-to-maturity securities.
	(4)	Includes FHLBNY demand account, FHLBNY stock dividends and FRBNY demand deposits.
	(5)	Includes reclassification of $55.7 million average outstanding balances from non-interest bearing demand to NOW/IOLA for the three months ended December 31, 2023.
	(6)	Includes $0.2 million of interest expense reclassified from money market to NOW/IOLA for the three months ended December 31, 2023.
	(7)	Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.
	(8)	Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
	(9)	Net interest margin represents net interest income divided by average total interest-earning assets.

Ponce Financial Group, Inc. and Subsidiaries
Average Balance Sheets

	For the Years Ended December 31,
	2024							2023
	Average							Average
	Outstanding				Average			Outstanding				Average
	Balance		Interest		Yield/Rate			Balance		Interest		Yield/Rate
	(Dollars in thousands)
Interest-earning assets:
Loans ⁽¹⁾	$	2,094,820	$	130,512		6.23	%	$	1,730,275	$	95,805		5.54	%
Securities ⁽²⁾		548,641		21,289		3.88	%		606,815		23,342		3.85	%
Other ⁽³⁾		192,403		10,836		5.63	%		119,923		6,720		5.60	%
Total interest-earning assets		2,835,864		162,637		5.74	%		2,457,013		125,867		5.12	%
Non-interest-earning assets		107,017							115,760
Total assets	$	2,942,881						$	2,572,773
Interest-bearing liabilities:
NOW/IOLA ^{(4) (5)}	$	74,796	$	662		0.89	%	$	70,993	$	1,314		1.85	%
Money market ⁽⁵⁾		654,521		30,148		4.61	%		424,160		17,132		4.04	%
Savings		111,028		107		0.10	%		121,550		116		0.10	%
Certificates of deposit		676,306		27,768		4.11	%		528,999		16,571		3.13	%
Total deposits		1,516,651		58,685		3.87	%		1,145,702		35,133		3.07	%
Advance payments by borrowers		14,034		7		0.05	%		14,869		8		0.05	%
Borrowings		670,982		27,465		4.09	%		633,116		25,460		4.02	%
Total interest-bearing liabilities		2,201,667		86,157		3.91	%		1,793,687		60,601		3.38	%
Non-interest-bearing liabilities:
Non-interest-bearing demand ⁽⁴⁾		191,155		—					241,510		—
Other non-interest-bearing liabilities		50,259		—					45,858		—
Total non-interest-bearing liabilities		241,414		—					287,368		—
Total liabilities		2,443,081		86,157					2,081,055		60,601
Total equity		499,800							491,718
Total liabilities and total equity	$	2,942,881				3.91	%	$	2,572,773				3.38	%
Net interest income			$	76,480						$	65,266
Net interest rate spread ⁽⁶⁾						1.83	%						1.74	%
Net interest-earning assets ⁽⁷⁾	$	634,197						$	663,326
Net interest margin ⁽⁸⁾						2.70	%						2.66	%
Average interest-earning assets to
interest-bearing liabilities						128.81	%						136.98	%

	(1)	Loans include loans and mortgage loans held for sale, at fair value.
	(2)	Securities include available-for-sale securities and held-to-maturity securities.
	(3)	Includes FHLBNY demand account, FHLBNY stock dividends and FRBNY demand deposits.
	(4)	Includes reclassification of $48.8 million average outstanding balances from non-interest bearing demand to NOW/IOLA for the three months ended December 31, 2023.
	(5)	Includes $1.3 million of interest expense reclassified from money market to NOW/IOLA for the year ended December 31, 2023.
	(6)	Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.
	(7)	Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
	(8)	Net interest margin represents net interest income divided by average total interest-earning assets.

Ponce Financial Group, Inc. and Subsidiaries
Other Data

	As of
	December 31,		September 30,		June 30,		March 31,		December 31,
	2024		2024		2024		2024		2023
Other Data
Common shares issued		24,886,711		24,886,711		24,886,711		24,886,711		24,886,711
Less treasury shares		925,497		1,067,248		1,074,979		1,096,214		1,101,191
Common shares outstanding at end of period		23,961,214		23,819,463		23,811,732		23,790,497		23,785,520

Book value per common share	$	11.71	$	11.74	$	11.45	$	11.29	$	11.20
Tangible book value per common share	$	11.71	$	11.74	$	11.45	$	11.29	$	11.20

Contact:
Sergio Vaccaro
Sergio.vaccaro@poncebank.net
718-931-9000

The MIL Network –

January 29, 2025

MIL-OSI USA: Lummis Secures Key Subcommittee Chairmanship to Champion Wyoming Energy

US Senate News:

Source: United States Senator for Wyoming Cynthia Lummis

January 28, 2025

WASHINGTON, D.C. – U.S. Senator Cynthia Lummis (R-WY) announced she will chair the Environment and Public Works Subcommittee on Clean Air, Climate, Nuclear Innovation and Safety for the 119th Congress:
“Thanks to my position on the Environment and Public Works committee, I can deliver crucial results for the people of Wyoming,” said Lummis. “I am honored to chair this subcommittee, which oversees the EPA Office of Air and Radiation and the Nuclear Regulatory Commission. Wyoming continues to develop its traditional energy sector while investing in new and exciting nuclear technology. I look forward to advancing policies that benefit an all-of-the-above energy approach and spur development across the Cowboy State. ”
Senator Lummis will also serve on the Transportation and Infrastructure and the Fisheries, Water, and Wildlife subcommittees.

MIL OSI USA News –

January 29, 2025

MIL-OSI USA: Hagerty Stands with Small Businesses, Supports Repeal of Misnamed Corporate Transparency Act

US Senate News:

Source: United States Senator for Tennessee Bill Hagerty

January 28, 2025

WASHINGTON—United States Senator Bill Hagerty (R-TN), a member of the Senate Banking Committee, has joined Senator Tommy Tuberville (R-AL) and his colleagues in introducing legislation that would repeal the Corporate Transparency Act (CTA) and its onerous small business reporting requirements.
Background
The CTA was passed into law as part of the 2021 National Defense Authorization Act. While the bill intended to target shell companies that facilitate illicit activities, in practice, it created substantial compliance burdens for approximately 32.6 million law-abiding small businesses and associations that operate as corporations or limited liability companies. Penalties for noncompliance can result in up to two years in prison and a $10,000 fine. The Biden Administration’s botched implementation of the CTA only worsened the situation; according to a survey conducted by the National Federation of Independent Business (NFIB), 83 percent of their members were unfamiliar with the reporting requirements.
The legislation co-sponsored by Hagerty, the Repealing Big Brother Overreach Act, would repeal the CTA.
Full text of the legislation can be found here.

MIL OSI USA News –

January 29, 2025

MIL-OSI USA: ICYMI—Hagerty Joins America’s Newsroom on Fox News to Discuss Trump’s Foreign Policy Wins, Cabinet Nominations

US Senate News:

Source: United States Senator for Tennessee Bill Hagerty
WASHINGTON—United States Senator Bill Hagerty (R-TN), a member of the Senate Appropriations, Banking, and Foreign Relations Committees and former U.S. Ambassador to Japan, today joined America’s Newsroom on Fox News to discuss President Donald Trump’s foreign policy wins during his first week in office, along with the need to confirm his cabinet nominees.

*Click the photo above or here to watch*
Partial Transcript
Hagerty on the need for reciprocity in tariff deals: “If you think about the tariff situation worldwide, the United States has been treated unfairly for years. President Trump has constantly and consistently talked about reciprocity. This goes all the way back to World War II. We created very favorable terms of trade for nations in Europe, nations like Japan, whose economies have been devastated. We should have time limited [the trade deals]. We should have put some sort of GDP-per-capita limit on that. Because right now, the United States has the lowest tariffs, on a trade weighted basis, of any major economy. Other countries have been taking advantage of us. President Trump sees this, and access to our economy is a privilege, not a right. You saw what happened in Colombia; he knows how to use leverage. He knows how to, essentially, let them know that he’s not going to tolerate bad behavior. And if countries like Colombia don’t want to cooperate with us, they’re not going to have access to our markets.”
Hagerty on pausing funding to other nations within the State Department: “These are all very legitimate and reasonable questions to ask, Martha. There’s a lot of pearl clutching going on in Washington right now. But I can tell you back in 2016, 2017, the State Department acted as quickly as they could to shovel money out the door to NGOs, to the UN, to agencies that didn’t have the U.S.’ best interest at heart. I think it’s entirely appropriate that Secretary [Marco] Rubio put a pause on all of this. I sent a letter to every agency head in the United States government, letting them know, line and verse, how they would violate U.S. law if they were to ‘reprogram funds’ at the very end. We’re going to get a report on all of that here in the next couple of weeks. So, I think this is something that’s entirely legitimate. It’s something that should happen, and we need to make certain that taxpayer [dollars] are being used for things that advance America’s interest.”
Hagerty on the state of Trump’s cabinet nominees: “I actually feel very good about how the nominees are moving through the process. You think about Senator [John] Thune, he’s been extremely diligent, in terms of setting up a process that will get our nominees confirmed as rapidly as possible. The Democrats have done everything they can to slow us down, but Senator Thune, our leader, has done a terrific job of making sure that we’re moving a pace. I feel good about our nominees. [Secretary] Pete Hegseth certainly had everything, including the kitchen sink, thrown at him, and he navigated the process very well. And I think as people got to know him, got to hear from him, they got to realize they had a very smart individual there who is very capable. I expect the same from the other nominees, and that process continues to pace here this week.”
Hagerty on the need to confirm Trump’s cabinet nominees: “President Trump is entitled to his nominees. I think you’ve got a tremendous number of challenges that our nation is facing right now. President Trump opened a very large tent as he came into office, and he selected people that he thinks will help him achieve his goals, achieve the promises that he made to the American public. So, I think, on the balance, Republicans should, certainly, defer to President Trump. Everybody’s entitled to their own opinion—obviously, you’ve seen people vote in different ways from me—but, on the whole, I think people should give President Trump the benefit of the doubt.”

MIL OSI USA News –

January 29, 2025

MIL-OSI USA: Kaine, Young, Reed & Marshall Introduce Bipartisan Bill to Support Mental Health Resources for Health Care Providers

US Senate News:

Source: United States Senator for Virginia Tim Kaine
WASHINGTON, D.C. – Today, U.S. Senators Tim Kaine (D-VA), a member of the Senate Health, Education, Labor, and Pensions (HELP) Committee, Todd Young (R-IN), Jack Reed (D-RI), and Roger Marshall (R-KS) introduced bipartisan legislation to reauthorize the Dr. Lorna Breen Health Care Provider Protection Act, a comprehensive law Kaine, Young, Reed and Marshall successfully passed in 2022 to help prevent suicide, burnout, and mental and behavioral health conditions among health care professionals. The law has already provided $100 million in funding for mental health care for providers across the country, including $5.6 million in federal funding for Virginia providers at UVA Health, Virginia Commonwealth University, and George Mason University. But provisions of the law that made this funding possible expired last year. The Dr. Lorna Breen Health Care Provider Protection Reauthorization Act would reauthorize these grant programs for five years.
“Dr. Lorna Breen was a physician from Charlottesville who tragically died by suicide after working on the frontlines of the COVID-19 pandemic,” said Kaine. “In 2022, I was honored to work with her family and Senators Young, Reed and Marshall to pass legislation in her honor to help ensure health care workers have access to the mental health support they need. I urge all of my colleagues on both sides of the aisle to join us in standing with our health care heroes by reauthorizing that law, so it can continue to support our healers.”
“Our frontline workers put their own health on the line every day to serve our communities in Indiana and across the country,” said Young. “Congress must act to reauthorize this important program to provide our health care workforce with needed support to prevent suicide and promote mental and behavioral health.”
“Doctors, nurses, and health aids take care of patients who need them. The federal government must do its part to ensure the mental and physical health needs of our health care workforce are taken care of too,” said Reed.
“Our health care providers dedicate their lives to taking care of patients, sometimes, this comes at their own expense,” said Marshall. “We must ensure we’re giving them the support they need when it comes to their mental health. I’m proud to join Senators Kaine and Young in leading the reauthorization of this very important program which helps provide access to mental and behavioral health resources to our health care professionals.”
“Health workers are at the heart of every life saved and ever patient cared for, yet the U.S. health care system is straining our workforce and perpetuating the alarming levels of burnout and poor mental health they are experiencing,” said Corey Feist, JD, MBA, co-founder and CEO of the Dr. Lorna Breen Heroes’ Foundation, which leads the ALL IN: Wellbeing First for Healthcare coalition. “We are immensely grateful to Senators Kaine, Young, Reed, and Marshall for their steadfast commitment to reauthorize and fund the landmark Dr. Lorna Breen Health Care Provider Protection Act and build upon it to address the primary driver of health workers’ burnout—administrative burden.”
Specifically, Dr. Lorna Breen Health Care Provider Protection Reauthorization Act would:
Reauthorize a grant program for health care organizations and professional associations for employee education on strategies to reduce burnout, peer-support programming, and mental and behavioral health treatment for five years. Communities with a shortage of health care workers, rural communities, and those experiencing burnout due to administrative burdens, such as lengthy paperwork, will be prioritized.
Reauthorize a grant program for health profession schools or other institutions to train health care workers and students in strategies to prevent suicide, burnout, mental health conditions, and substance use disorders for five years.
Reauthorize a national evidence-based education and awareness campaign. Currently, the campaign provides hospital and health system leaders with evidence-informed solutions to reduce health care worker burnout. Reauthorization will provide resources for the campaign to continue and expand beyond its current scope.
In addition to Kaine, Young, Reed and Marshall, the legislation is cosponsored by U.S. Senators Shelley Moore Capito (R-WV), Lisa Murkowski (R-AK), Jeanne Shaheen (D-NH), and Mark R. Warner (D-VA).
Full text of the bill is available here.

MIL OSI USA News –

January 29, 2025

MIL-OSI USA: At Hearing, Defense Contractor Agrees with Warren: Legal Loopholes Should Not Lead to Price-Gouging the Military

US Senate News:

Source: United States Senator for Massachusetts – Elizabeth Warren
January 28, 2025
Warren: “The Pentagon is spending $440 billion this year on contracts. It’s important for us to get better procedures in place to get some eyes on what they’re doing.”
Defense contractor agrees legal loopholes should not lead to price-gouging the military
Video of Hearing
Washington, D.C. – Today, U.S. Senator Elizabeth Warren (D-Mass.), a member of the Senate Armed Services Committee, questioned Shyam Sankar, Chief Technology Officer and Executive Vice President of Palantir Technologies, about defense contractors exploiting loopholes to price gouge the military.
Senator Warren highlighted an enormous loophole in military acquisition rules that allows defense contractors to market a product as “commercial” even when the product is only made for and sold to our military. As the only customer, the Department of Defense (DoD) has no way to negotiate a fair market price without cost or pricing data, resulting in the department often overpaying for products and services.
In one example, defense contractor Honeywell successfully lobbied Congress to get its engines treated as commercial items and subsequently doubled the price of the engine.
“I completely agree that if you have a fake commercial item that doesn’t actually have commercial applicability, if the company is not able to leverage a diversified R&D base that goes beyond the government, that is the promise that should lead to price performance improvements for the government, then you’re not getting the value of the commercial item,” Mr. Shankar said.
Last year, DoD’s Inspector General released a report that found Boeing paid the Air Force 80 times the available commercial price for a soap dispenser and recommended companies be required to alert the government when prices go up 25% or more.
“I’m sure it is not your intent to team up with another organization in order to price gouge the military,” Senator Warren said to Mr. Sankar. As a result, she asked him to commit to the Pentagon watchdog’s recommendation that bid contractors should provide notice when the price of a good or service goes up by 25%. Mr. Sankar refused to commit Palantir to that recommendation but said he would get back to the committee.
Senator Warren’s bipartisan Stop Price Gouging the Military Act would close loopholes in current acquisition laws, tie financial incentives for contractors to performance, and provide the Department of Defense (DoD) the information necessary to prevent future rip-offs.
Transcript: Hearings to examine defense innovation and acquisition reform.Senate Armed Services CommitteeJanuary 28, 2025
Senator Elizabeth Warren: Thank you, Mr. Chairman. And thank you for holding this hearing. So, DoD buys a lot of stuff from defense contractors, and to protect the military and taxpayers, it’s long been the law that defense contractors must give DoD contracting officers certified cost and pricing data to help verify that a price that’s being charged is fair and reasonable.
One of the big exceptions to this, though, is for, “commercial goods and services,” based on the principle that the market will make sure it’s a fair price. If you could buy it on Amazon, that’s a fair price. You don’t have to go into all the background on how you got there. I get that, and I am all for commercial buying. But the fact is, this is turned into a massive loophole where big defense contractors withhold data, even though there’s no market, and DoD, effectively the only customer, doesn’t have this information so that these giant companies can price gouge the military.
I want to give you an example here. For years, the army was buying Chinook helicopter engines from Honeywell, and Honeywell successfully lobbied Congress so its engines would be treated as commercial, and Honeywell wouldn’t have to turn over the certified cost and pricing data. Now, Mr. Sankar, you’re the CTO of Palantir, a billion-dollar tech company that contracts with DoD once Honeywell got the engine moved to a commercial engine.
What do you think happened to the price?
Mr. Shyam Sankar, Chief Technology Officer and Executive Vice President, Palantir Technologies: I’m not familiar, Senator.
Senator Warren: Well, it went up, not down, by 100%, and that’s the problem we’ve got here too often. DOD is outgunned when it is negotiating with these giant defense contractors, which is exactly why it needs the cost and pricing data to avoid being ripped off. Now, Mr. Sankar, your company, Palantir, is looking to create a consortium with another defense tech company, Anduril, is that right? Yeah. To jointly bid for something called “other transactions agreements,” or since we have to give everything initial OTAs, where the government also waives taxpayer protections on how to get pricing information. And I’m sure it is not your intent to team up with another organization in order to price gouge the military. This next question should probably be easy here. DoD’s inspector general recommended requiring bid contractors to alert military contracting offices when the price of a good or service goes up by 25%. In other words, move it up so other people know, and can get eyes on it. Mr. Sankar, do you agree with the IGs recommendation?
Mr. Sankar: I do agree. I think the price signal is part of the competitive market and encouraging more entrants and capital to efficiently be allocated to improve things.
Senator Warren: Excellent. And will Palantir agree to do that voluntarily?
Mr. Sankar: I would defer to my team here, but I don’t think we would have any conceptual disagreement with that.
Senator Warren: Okay, so can I treat that as a yes?
Mr. Sankar: I would defer to my team.
Senator Warren: Well, I want to be clear here because the—
Mr. Sankar: As the CTO, I don’t speak on the business side.
Senator Warren: Fair enough. Look, we only know about most of these overcharges because of the work that the Department of Defense’s Inspector General has done. This is the person who President Trump just illegally fired on Friday night, along with at least 16 other IGs. I am deeply concerned that this administration is removing exactly the cops on the beat that we need to identify waste and to prevent these kinds of increases.
So, Mr. Sankar, do you think it helps or hurts national security to have Senate-confirmed watchdogs, who can be there on pricing questions, like this, to call balls and strikes?
Mr. Sankar: As a technologist, what I can speak to is, when you look at Intel in the late 60s, 96% of the market for integrated circuits was the Apollo program and the DOD. But Bob Noyce, says, the co-founder of Intel, the CO inventor the transistor, always envisioned a bigger commercial market, our ability to deliver a salt breaker and ultimately have an asymmetric threat against the Soviets—
Senator Warren: Can you relate that to the question?
Mr. Sankar: Yeah. I promise it will get there. Ability to deliver a salt breaker was because, actually he could, he could create integrated circuits that were 1000s of times cheaper than when we were building Apollo. That was only possible because he had an eye towards the commercial market. So I completely agree that if you have a fake commercial item that doesn’t actually have commercial applicability, if the company is not able to leverage a diversified R&D base that goes beyond the government, that is the promise that should lead to price performance improvements for the government, then you’re not getting the value of the commercial item. But when we look at space, for example, I grew up in the shadow of the Space Coast, the cost to get a kilogram into orbit for the shuttle, was $50,000 a kilogram, the cost with starship heavy reuse will be 10 bucks.
Senator Warren: Mr. Sankar, I very much appreciate that you’re trying to push here on cost. I am too. The question I had asked you is whether or not we need IGs—who are the whistleblowers who say people are cheating on the cost, for example, on the definition of commercial—or somebody who can help us bring these costs down. The Pentagon is spending $440 billion this year on contracts. It’s important for us to get better procedures in place to get some eyes on what they’re doing. And IGs help us do that. Thank you.

MIL OSI USA News –

January 29, 2025

MIL-OSI New Zealand: 29 January 2025 A new home for a new year The new 29 one-bedroom apartment social housing development in Nelson is ready to welcome Kāinga Ora customers.

Source: New Zealand Government Kainga Ora

Local iwi this week blessed the new three-storey development in Waimea Road in Nelson South, which was built by local developer JV Properties Limited. Neighbours and other local stakeholders also had the chance to look through the homes before customers move in.

Julia Campbell, Regional Director Nelson, Marlborough and West Coast, says people from the social housing register who have been waiting for a one-bedroom home will begin moving into the new development from early February. Some of the people moving in will now have a permanent place to call home after living in transitional housing for some time.

This, and other trees, that were already on the property were retained as part of the new development.

“Most of the people who are on the social housing register and in need of a place to live in Nelson are waiting for a one-bedroom home, so the completion of this development is a significant milestone,” Ms Campbell says.

“Our specialist placement team has thought very carefully about who will live in these homes. During pre-housing conversations, we have spoken to prospective customers about their connections to the community and any support they may need to live well in their new home in the future.

“Our team will continue to support everyone who will be living there to settle in well over the coming weeks and months. Local transitional housing providers will also continue to work with the people who are moving in from transitional housing,” she says.

Construction of the new development began in October 2023. Kāinga Ora has an agreement with JV Properties Limited to purchase the homes upon completion. It expects to settle on the purchase of the homes this week.

There are currently another 36 Kāinga Ora homes under construction in Nelson Tasman, including six homes in Oxford Street in Richmond and 26 new homes in Neale Avenue in Stoke, all of which Kāinga Ora has agreed to purchase from developers when they are completed. Four homes are also under redevelopment in Boundary Road in Nelson.

See our Nelson region for more information.

The new Waimea Road homes and a communal outdoor area

Page updated: 29 January 2025

MIL OSI New Zealand News –

January 29, 2025

MIL-OSI Security: Two New Jersey Men Convicted For Their Roles In The Stephen Crane Village Drug Trafficking Organization, Including A Leader Convicted Of Murder

Source: Office of United States Attorneys

NEWARK, N.J. – Yesterday afternoon a Newark jury convicted two New Jersey men for their roles in a violent drug trafficking organization, Acting U.S. Attorney Vikas Khanna announced.

Michael Mayse, 38, of Newark, a leader of the Stephen Crane Drug Trafficking Organization, was convicted of murder, drug trafficking conspiracy, and related drug and firearms offenses.

Gary Shahid, 66, of Newark, a drug supplier of the Stephen Crane Drug Trafficking Organization, was convicted of drug trafficking conspiracy, distribution and possession with intent to distribute controlled substances, and firearms offenses.

“This Office’s commitment to prosecuting violent crime and serious drug trafficking offenses is unwavering. This case demonstrates the strength of our partnerships with federal, state, and local law enforcement and ensures that serious consequences will follow for these defendants.”

Acting U.S. Attorney Vikas Khanna

“ATF remains steadfast in identifying and apprehending those who are terrorizing our neighborhoods with violence and senseless disorder,” ATF Special Agent in Charge L.C. Cheeks, Jr., Newark Field Division stated. “These guilty verdicts bring accountability to violent criminals whose actions disregard criminal law, human life, and public safety. We will continue to work alongside our law enforcement partners and secure the safety of our communities.”

“Drug trafficking can be a dangerous and violent game, often entangled with the deadly consequences. Today’s conviction against these two members of the Stephen Crane Village Drug Trafficking Organization, who repeatedly used violence when operating their criminal enterprise, shows the commitment the DEA and our law enforcement partners have in keeping our communities safe and making sure those responsible for these types of violent crimes face the consequences for their actions,” said DEA Special Agent in Charge Cheryl Ortiz, New Jersey Field Division.

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

Stephen Crane Village is a public housing complex near Branch Brook Park, on the border of Newark, New Jersey and Belleville, New Jersey. Stephen Crane Village was the site of an open-air drug market controlled by a violent drug trafficking organization (“DTO”) from at least February 2019 through February 2020.

Through numerous controlled purchases of narcotics, consensually recorded telephone calls and text messages, physical surveillance, electronic surveillance, and the analysis of telephone call detail records, law enforcement determined that the members of the DTO conspired to distribute narcotics, including heroin, fentanyl, and cocaine base, in and around Stephen Crane Village.

The DTO used a drug stash apartment in Stephen Crane Village to package and store their drugs for distribution. The DTO sold significant quantities of drugs to confidential sources and an undercover agent. On December 15, 2019, Mayse entered the DTO’s stash apartment in Stephen Crane Village and murdered a member of the DTO over a monetary debt relating to the drug trafficking conspiracy.

The count of conspiracy to distribute at least 100 grams of heroin carries a minimum sentence of five years in prison, maximum penalty of 40 years in prison, and a fine of up to $5 million. The counts of distribution of heroin, fentanyl, and cocaine each carry a maximum of 20 years in prison and a fine of $1 million. The count for of possession with intent to distribute 400 grams or more of fentanyl, 100 grams or more of heroin, and 500 grams or more of cocaine carries a minimum sentence of 10 years in prison, a maximum sentence of life in prison, and a fine of up to $10 million. The count of murder during and in relation to a drug trafficking crime carries a maximum sentence of life in prison and a $250,000 fine. The count of discharging a firearm during and in relation to a drug trafficking crime carries a minimum sentence of 10 years in prison, a maximum sentence of life in prison, and a $250,000 fine. The counts of possessing a firearm in furtherance of a drug trafficking crime carries a minimum sentence of 5 years in prison, a maximum sentence of life in prison, and a $250,000 fine.

Acting U.S. Attorney Khanna credited special agents and task force officers with the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Special Agent in Charge L.C. Cheeks, Jr.; special agents and task force officers of the Drug Enforcement Administration, under the direction of Special Agent in Charge Cheryl Ortiz; the Essex County Prosecutor’s Office, under the direction of Prosecutor Theodore N. Stephens II and Chief Mitchell G. McGuire; the Newark Police Department, under the direction of Director Emanuel Miranda; and the Belleville Police Department, under the direction of Chief Mark Minichini. He also thanked the U.S. Marshals Service and the Federal Bureau of Investigation for their assistance with this case.

The investigation was conducted as part of the Newark Violent Crime Initiative (VCI). The Newark VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety for the sole purpose of combatting violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the DEA, the DHS/HSI, the USMS, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, New Jersey State Parole, Union County Jail, New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center, New Jersey Department of Corrections, the East Orange Police Department, and the Irvington Police Department.

This case is also conducted under the auspices of the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

The government is represented by Assistant U.S. Attorney Tracey Agnew of the Criminal Division in Trenton and Assistant U.S. Attorney Jason Goldberg of the Organized Crime and Gangs Unit in Newark.

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Defense counsel:

Thomas Ambrosio, Esq., for Gary Shahid

Joel Silberman, Esq., and Keith Oliver, Esq., for Michael Mayse

MIL Security OSI –

January 29, 2025

MIL-OSI Security: Federal Fugitive Sentenced to 15 Years in Prison for Armed Drug Trafficking

Source: Office of United States Attorneys

MOBILE, AL – A Mobile man was sentenced to 180 months in prison for trafficking drugs and possessing firearms in furtherance of drug trafficking crimes while being a federal fugitive.

According to court documents, Tesean R. James, 30, was convicted of a bulk marijuana trafficking conspiracy in federal court in 2019. After his release from federal prison in September 2021, James absconded from court-ordered supervision and remained a fugitive for more than two years.

In July 2023, federal and local law enforcement agents attempted to arrest James on his fugitive warrant. James led agents on a high-speed vehicle chase through a residential neighborhood in Mobile, bailing out of his vehicle and eluding capture on foot. In James’s abandoned vehicle, agents recovered two pistols and seven pounds of bulk marijuana. Later, in December 2023, agents captured James in Mobile after a brief foot chase. Agents executed a search warrant at the house where James had been staying, recovering more than 34 pounds of bulk marijuana, 1.5 kilograms of psilocybin mushrooms, more than $34,000 in drug proceeds, and two guns, one of which had previously been reported stolen.

James confessed to police that he knew he had active warrants and was a federal fugitive. James admitted that he regularly received shipments of 50 pounds of marijuana at a time, which he coordinated via encrypted apps on his cell phones. Agents searched James’s cell phones, finding evidence that he had been selling marijuana and other narcotics, including mushrooms, prescription pills, and codeine syrup, since being released from federal prison in September 2021. James’s phones also contained evidence that he knew he was a fugitive, including a photo of James that had been posted on the news as “Fugitive of the Week.”

In addition to the 180-month prison term, Chief United States District Judge Jeffrey U. Beaverstock ordered James to serve a five-year term of supervised release upon his release from prison, during which time he will receive mental health treatment. The court did not impose a fine, but Judge Beaverstock ordered James to pay $300 in special assessments. The court also forfeited James’s guns and electronic devices to the United States.

U.S. Attorney Sean P. Costello of the Southern District of Alabama made the announcement.

The Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshals Service, Homeland Security Investigations, and the Mobile Police Department investigated the case.

Assistant U.S. Attorney Justin Roller prosecuted the case on behalf of the United States.

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.

MIL Security OSI –

January 29, 2025

MIL-OSI Security: U.S. Attorney’s Office Recovers More Than $55 Million in Civil Settlements and Judgments in Calendar Year 2024

Source: Office of United States Attorneys

SAN ANTONIO – U.S. Attorney Jaime Esparza announced today that the Western District of Texas recovered $55,969,678.60 in settlements and judgments in over 25 affirmative civil enforcement cases between January 1, 2024, and December 31, 2024. This figure includes recoveries in both local matters and cases handled jointly with other U.S. Attorney’s Offices and the Department of Justice’s Civil Division.

“I am proud of my office’s work this year to achieve several significant civil recoveries for American taxpayers and the people of the Western District of Texas,” said U.S. Attorney Esparza. “We will continue to work with our agency and law enforcement partners to vigorously pursue civil remedies on behalf of the United States when appropriate.”

The office’s largest civil recoveries were obtained in False Claims Act (FCA) matters. The most significant FCA recoveries include:

a $21.75 million settlement with Medisca, Inc. to resolve allegations concerning false and inflated Average Wholesale Prices for ingredients used in compound prescriptions;
a $15.875 million settlement with Booz Allen Hamilton to resolve allegations of false claims related to computer military training simulators and systems;
a $4.2 million settlement with Elara Caring and its subsidiaries to resolve allegations of false claims for hospice services provided to patients who were not terminally ill;
a $2.3 million judgment against Ma Acupuncture Center and Dr. Dongxin Ma to resolve allegations of inflated acupuncture bills submitted to the Department of Veterans Affairs;
a $2 million settlement with Five Point Enterprises LLC to resolve allegations of false claims for educational assistance benefits under the Post-9/11 GI Bill; and
a $1.3 million settlement with Oncology San Antonio and Dr. Jayasree Rao to resolve allegations of unlawful kickbacks and medically unnecessary tests and treatments.

The U.S. Attorney’s Office obtained several smaller—but nevertheless significant—FCA recoveries in COVID-fraud cases, including a $680,000 settlement with Lafayette RE Management LLC and Thibault Adrien, and a $425,710 settlement with Freedom Solar LLC. In both cases, the government alleged the settling parties made false certifications in applying for and/or obtaining forgiveness of Paycheck Protection Program loans.

Another area of emphasis for the Western District of Texas is the recovery of civil penalties under the Controlled Substances Act (CSA), which imposes strict regulatory requirements on doctors, pharmacists, and other individuals and entities that handle dangerous drugs and precursor chemicals. Significant CSA recoveries in 2024 include:

a $600,000 settlement with Dr. Alfonso Luevano (of which $465,884.22 was attributed to CSA civil penalties and $134,115.78 was attributed to FCA damages) to resolve allegations related to unlawful prescriptions for Schedule II controlled substances;
a $300,000 settlement with Shrieve Chemical Company LLC to resolve allegations the company violated recordkeeping requirements relating to the importation and distribution of listed chemicals, manufactured a listed chemical without registering, and made a drop shipment to a customer without first importing the chemical to its registered location; and
a $210,000 settlement with Sachnikumar Patel, RPh., Medical Arts Pharmacy, and Express Pharmacy to resolve allegations they unlawfully dispensed “office use” prescriptions, failed to register as reverse distributors, and violated CSA recordkeeping requirements.

The claims resolved by the settlements referenced above are allegations only and there has been no determination of liability.

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MIL Security OSI –

January 29, 2025

MIL-OSI Security: Maryland Life Insurance Broker Convicted in $20-Million Insurance Fraud Scheme

Source: Office of United States Attorneys

Baltimore, Maryland – After a seven-day trial, a federal jury found James William Wilson, Jr., 77, of Owings Mills, Maryland, guilty of 13 counts of fraud, three counts of money laundering, two counts of filing false tax returns, and one count of aggravated identity theft.

Erek L. Barron, U.S. Attorney for the District of Maryland, announced the verdict with Acting Deputy Assistant Attorney General Stuart M. Goldberg, Department of Justice Tax Division, and Special Agent in Charge Kareem Carter, Internal Revenue Service-Criminal Investigation Division, Washington Field Office.

According to court documents and evidence presented at trial, Wilson defrauded life-insurance companies by securing more than 40 life-insurance policies. Wilson’s scheme included mispresenting policy applicants’ health, wealth, and existing life-insurance coverage. The total death benefits from these policies exceeded $20 million.

Additionally, Wilson defrauded individual investors to receive funds that he used to pay premiums on the fraudulently obtained life-insurance policies. Wilson concealed the fraud by transferring the proceeds to multiple bank accounts, including accounts in the name of trusts. He then filed false individual income-tax returns for 2018 and 2019, which concealed the fraudulent proceeds from each year, approximately $5.7 million and $2 million, respectively.

Wilson is scheduled to be sentenced at 9:30 a.m., on May 1, 2025, and faces a maximum penalty of 20 years in prison for each count of conspiracy, wire fraud, mail fraud, and money laundering; and three years in prison for each count of filing a false tax return. He also faces two years in prison for one count of aggravated identity theft. A federal district court judge determines sentencing after considering the U.S. Sentencing Guidelines and other statutory factors.

In addition, Wilson’s wife, Maureen, 76, has also been charged with fraud, conspiracy, money laundering, and filing false tax returns for 2018 and 2019. Her trial is scheduled for March 3, 2025.

IRS-Criminal Investigation investigated the case, with assistance from the Maryland Insurance Administration and the Maryland Office of The Attorney General.

U.S. Attorney Barron commended the IRS-Criminal Investigation Division for their work on the case. Mr. Barron also thanked Assistant U.S. Attorneys Matthew P. Phelps and Philip Motsay and Trial Attorneys Shawn Noud and Richard Kelley, who prosecuted the federal case.

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

# # #

MIL Security OSI –

January 29, 2025

MIL-OSI Security: Guatemalan National Pleads Guilty to Unlawful Reentry

Source: Office of United States Attorneys

BOSTON – A Guatemalan man pleaded guilty yesterday in federal court in Boston to illegally reentering the United States after deportation.

Edilzar Morales-Barillas, 36, pleaded guilty to one count of unlawful reentry of a deported alien. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for May 7, 2025. Morales-Barillas was charged on July 31, 2024.

Morales-Barillas was deported from the United States on May 14, 2021. Sometime after his May 2021 removal, Morales-Barillas unlawfully reentered the United States. Immigration and Customs Enforcement became aware of Morales-Barillas’ unlawful presence in the United States on May 27, 2023, following his arrest for a fourth offense of operating under the influence of alcohol.

The charge of unlawful reentry of a deported alien provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. The defendant will be subject to deportation proceedings upon completion any sentence imposed. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

United States Attorney Leah B. Foley and Todd M. Lyons, Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations made the announcement today. Assistant U.S. Attorney Brian Sullivan of the Criminal Division is prosecuting the case.

MIL Security OSI –

January 29, 2025

MIL-OSI Security: New Orleans Man Pleads Guilty To Federal Drug Charges

Source: Office of United States Attorneys

NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that on January 16, 2025, JONAS RICHARD (“RICHARD”), age 43, pled guilty to three counts of a superseding indictment charging him with distribution of fentanyl, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C).

As to each count, RICHARD faces a maximum term of imprisonment of 20 years, up to a $1,000,000 fine, at least three years of supervised release, and a mandatory special assessment fee of $100.00. RICHARD is set for sentencing on April 24, 2025.

According to court documents, on August 24, 2023, as part of operation Big Easy, undercover agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) while walking through the French Quarter in New Orleans, were approached by RICHARD about purchasing narcotics. After agreeing to a price for heroin, RICHARD contacted his supplier/ co-defendant. Later, RICHARD’s supplier arrived and gave the narcotics to RICHARD, who then gave the narcotics to the undercover agents. After testing, the narcotics were identified as fentanyl and weighed 3.36 grams.

Following the August 24, 2023 sale, RICHARD maintained telephone contact with the undercover agent and on August 28, 2023, met the agents in a New Orleans parking lot. On this occasion, RICHARD sold them 16.26 grams of fentanyl.

On September 15, 2023, RICHARD sold the agents a half ounce of fentanyl laced heroin in two packages. Each package weighed 12.10 and 4.02 grams, respectively.

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 Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. This case was prosecuted by Assistant U.S. Attorney Sarah Dawkins of the Violent Crime Unit.

MIL Security OSI –

January 29, 2025

MIL-OSI Security: Former Colorado Springs Man Sentenced For Defrauding Taxpayer Funded COVID-19 Relief Program

Source: Office of United States Attorneys

DENVER – The United States Attorney’s Office for the District of Colorado announces that Charles Lacona, Jr., 67, formerly of Colorado Springs, was sentenced to 24 months in federal prison and ordered to pay $549,274.14 in restitution after being found guilty by a federal jury on two counts of wire fraud and one count of money laundering related to fraudulent COVID-19 related funds he received through the Paycheck Protection Program (PPP).

According to the facts established at trial, between April 2020 and April 2021, Lacona devised and participated in a scheme to defraud a lender of $513,732.50 in PPP loans. Lacona inflated payroll costs and gross receipts, made false statements and certifications, and submitted fabricated tax documents and payroll reports. During that same period, Lacona unsuccessfully applied for additional emergency government assistance through the Economic Injury Disaster Loan (EIDL) program. Lacona used some of the fraudulently obtained funds to purchase a Cadillac CT6 for $67,704.13.

“Theft of taxpayer dollars will not be tolerated,” said Acting United States Attorney J. Bishop Grewell. “This sentence sends a message that people who defrauded the United States Government will be held accountable for their actions.”

“IRS Criminal Investigation is committed to holding accountable those who exploited the COVID-19 pandemic relief programs,” said Amanda Prestegard, Special Agent In Charge, Denver Field Office. “Investigating those who defrauded programs meant for hard working Americans will remain a top priority for our agency.”

United States District Court Judge Daniel D. Domenico presided over the trial. IRS Criminal Investigation handled the investigation. Assistant United States Attorneys Craig Fansler and Nicole Cassidy handled the prosecution.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

On July 11, 2023, the Attorney General selected the District of Colorado’s U.S. Attorney’s Office to head one of five national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. The Strike Force combines law enforcement and prosecutorial resources and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors, as well as those who committed multiple instances of pandemic relief fraud. The Strike Force uses prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds. Additional information regarding the Strike Force may be found at https://www.justice.gov/opa/pr/justice-department-announces-results-nationwide-covid-19-fraud-enforcement-action.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form

MIL Security OSI –

January 29, 2025

Category: KB

Rebels and Rwandan troops joint attack

UN bases ‘not safe’

Evacuation of injured ‘blue helmets’

Political solution must be found

Source: Ia Ara Aotearoa Transporting New Zealand