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Category: United States of America

  • MIL-OSI USA: Senator Murray Opening Remarks at Full Committee Mark Up of Interior-Environment and Transportation-Housing and Urban Development Bills

    US Senate News:

    Source: United States Senator for Washington State Patty Murray

    ***WATCH: Senator Murray’s opening remarks***

    Washington, D.C. – Today, U.S. Senator Patty Murray (D-WA), Vice Chair of the Senate Appropriations Committee, delivered the following opening remarks as the committee meets to consider the draft fiscal year 2026 Interior, Environment, and Related Agencies, and Transportation, Housing and Urban Development, and Related Agencies appropriations acts.

    Senator Murray’s opening remarks, as delivered, are below:

    “Thank you very much, Chair Collins, and thank you to Senator Murkowski and Senator Merkley, our Interior subcommittee leads, and Senators Hyde-Smith and Gillibrand, our THUD subcommittee leaders, for working so hard and working together to hammer out two bipartisan bills.

    “May not be the bills I would have written on my own, certainly more I would love to see us do and investments and accountability measures I’d like to see. But these bills are serious bipartisan compromises that reject many of the truly harmful cuts Trump and House Republicans are pushing for, and maintains crucial programs that help make sure folks back home have a roof over their heads; safe, reliable transportation; and clean air and water.

    “In the Interior bill, we were able to put together a bill that protects public lands and national parks, invests in fighting wildfires, helps live up to our obligations to Tribes, and invests in critical work protecting our environment—and our families.

    “And in the THUD bill, we were able to maintain crucial investments to address the housing crisis reject Trump’s deep cuts to rental assistance programs that make sure millions of families have a roof over their head and invest in transportation infrastructure across the board—including a much needed increase to hire more air traffic controllers.

    “These are worthwhile investments—and they show just what is possible if we work together and exactly why a bipartisan process is a better path for everyone than the Trump bills House Republicans seem intent on writing—or another slush fund CR.

    “Now, Russ Vought may want to break this process—and make it more partisan, he said so. He may want to set Congress on a track for a shutdown. But we, on this committee, can reject that partisan vision that hurts working families everywhere. And we can reject the painful cuts and policies they’re trying to inflict in our communities—just as these bills do.

    “In fact, I think most of us here recognize that we have to reject that path.

    “Because, at the end of the day—passing funding bills here in the Senate takes 60 votes.

    “And that means the Trump-Vought path is choosing a dead end and a shut down.

    “I won’t pretend the work ahead is going to be easy—I think every one of us knows, compromise means doing hard work, making hard choices.

    “And it requires trust—something that unfortunately continues to be chipped away at. I hope that trajectory can be reversed—and I look forward to more discussion on each of the bills before us today.”

    MIL OSI USA News –

  • MIL-OSI USA: Senate Appropriations Committee Approves Interior-Environment, Transportation-HUD Bills

    US Senate News:

    Source: United States Senator for Washington State Patty Murray

    Committee approves Interior-Environment bill in a 26-2 vote — BILL SUMMARY HERE

    Committee approves Transportation-HUD bill in a 27-1 vote — BILL SUMMARY HERE

    ***WATCH and READ: Senator Murray’s opening remarks***

    Washington, D.C. – Today, the Senate Appropriations Committee met for a full committee markup to consider its draft fiscal year 2026 Interior, Environment, and Related Agencies, and Transportation, Housing and Urban Development, and Related Agencies appropriations acts.

    “These may not be the bills I would have written on my own. There’s more I certainly want to see us do and investments and accountability measures I’ll keep pushing for. But these bills are serious, bipartisan compromises that reject so many of the truly harmful cuts Trump and House Republicans are pushing for and that maintain crucial programs that help make sure folks back home have a roof over their head, safe, reliable transportation, and clean air and water,” said Vice Chair Patty Murray in her opening remarks. “Now, Russ Vought may want to break this process and make it more partisan. He may want to set Congress on track for a shutdown. But we can reject that partisan vision that hurts working families everywhere. And we can reject the painful cuts and policies Trump and Vought are trying to inflict in our communities—just as these bills do.”

    In a 26-2 vote, the Committee approved the draft fiscal year 2026 Interior, Environment, and Related Agencies appropriations bill.

    “Oregonians turned out in record numbers during my town halls to deliver a clear message—we need to do everything we can to fight against harmful federal funding cuts and to instead double down on supporting our public lands, Tribal communities, and clean air and water for all,” said Senator Jeff Merkley (D-OR), Ranking Member of the Interior, Environment, and Related Agencies Subcommittee. “This bipartisan bill protects funding for operating the National Park System, National Refuge System, National Forest System, our National Conservation Lands, and the Land and Water Conservation Fund, making a bold statement to the Trump Administration that Congress intends to fight back against any attempt to rip away public lands from public use. I’ll continue to work with members from both parties to invest in our country’s and our children’s futures.”

    “When it comes to protecting our public lands, this bill provides critical funding for our National Parks and our Forest Service and rejects the absolutely paltry level Trump put forward, as well as the House Republican level. It also prevents our national parks from being sold off. It ensures federal firefighters will not face a pay cut, and it fully funds wild fire prevention and suppression. When it comes to our obligations to our Tribes, we were able to provide $12 billion across Tribal programs—rejecting Trump efforts to cut Tribal safety, Tribal schools, the Bureau of Indian Affairs, and advanced appropriations for the Indian Health Service,” said Vice Chair Murray in comments on the bill. “This bill also protects clean water and air programs and continues vital, cutting-edge research that protects families’ health and wellbeing which is under threat from this administration. No doubt, there is more I’d like to do here but this is a solid bipartisan bill to sustain critical programs that protect our environment and families’ health in the face of Trump cuts.”

    The following amendments to the bill were considered during today’s mark up:

    • Manager’s package offered by Chair Murkowski.
      • Adopted unanimously.
    • Reed amendment to prevent the Trump administration from redirecting funding Congress provided for the National Endowment of the Humanities to fund its plans to create a sculpture garden of notable Americans at its discretion.
      • Debated; withdrawn.
    • Heinrich amendment to require the National Park Service, the U.S. Forest Service, and the Department of the Interior to maintain at least the same number of full-time equivalents as they had in September 2020 to ensure adequate staffing at our national parks and for wildfire prevention and response.
      • Republicans rejected the amendment in a 15-14 party-line vote.

    A summary of the bill is available HERE.

    Final bill text, report, Congressionally Directed Spending (CDS) projects, and adopted amendments will be available HERE later today.

    In a 27-1 vote, the Committee approved the draft fiscal year 2026 Transportation, Housing and Urban Development, and Related Agencies appropriations bill.

    “I would like to thank Chair Collins, Vice Chair Murray, and Chair Hyde-Smith for their leadership and support of this bipartisan bill. As ranking member of the Transportation and Housing Subcommittee, I am committed to working with Democrats and Republicans alike to find bipartisan solutions to meet the needs of my constituents. This bill provides safe and efficient travel by fully funding the FAA and by making investments in Amtrak and transit projects critical to New York. It also protects families, seniors, and people with disabilities who rely on HUD rental and homeless assistance programs, while also investing in affordable housing. The bill soundly rejects the harmful proposals from the Trump administration and will help lower costs for all Americans,” said Senator Kirsten Gillibrand (D-NY), Ranking Member of the Transportation, Housing and Urban Development, and Related Agencies Subcommittee.

    “While I still want to do more to address the housing crisis—and I am not going to stop pushing on that—I’m glad to say this bill rejects President Trump’s proposed cuts to rental assistance that would have put 10 million people at risk of eviction—mostly kids, seniors, and people with disabilities. This bill delivers funding to help ensure no one is kicked out of their home, and keep families stably housed,” Vice Chair Murray said in comments on the bill. “When it comes to transportation, this bill includes a much-needed increase for FAA to hire air traffic controllers, modernize equipment, and more. It also invests in highway safety, rail safety, and pipeline safety—not to mention investments in our ports and shipyards. It rejects Trump’s cuts to the essential air services that would have cut off so many small and rural communities. It rejects House Republicans’ proposal to slash Capital Investment Grants by 98%. And of course, it rejects Trump’s plan to eliminate BUILD grants. This is a program I helped launch that supports major construction projects across the country.”

    The following amendments to the bill were considered during today’s mark up:

    • Manager’s package offered by Chair Hyde-Smith.
      • Adopted unanimously.
    • Merkley amendment to prohibit funds provided in any fiscal year 2026 appropriations act from being eligible for rescissions or deferrals under the Impoundment Control Act’s fast-track procedures, ensuring they can only be considered through annual appropriations bills.
      • Republicans rejected the amendment in a 15-14 party line vote.

    A summary of the bill is available HERE.

    Final bill text, report, Congressionally Directed Spending (CDS) projects, and adopted amendments will be available HERE later today.

    MIL OSI USA News –

  • MIL-OSI USA: AARP Endorses Cassidy Bill to Eliminate Waste, Fraud, and Abuse in Medicare Advantage Program

    US Senate News:

    Source: United States Senator for Louisiana Bill Cassidy

    WASHINGTON – The American Association of Retired Persons (AARP) endorsed the No Unreasonable Payments, Coding, or Diagnoses for the Elderly (No UPCODE) Act. The landmark legislation introduced earlier this year by U.S. Senators Bill Cassidy, M.D. (R-LA) and Jeff Merkley (D-OR) improves the way Medicare Advantage plans assess patients’ health risks and reduce overpayments for care. Medicare Advantage is a program that millions of seniors rely on to deliver high-quality care.
    “AARP believes that the No UPCODE Act is a commonsense solution that protects older Americans, strengthens oversight, and helps to ensure the long-term sustainability of Medicare,” said Bill Sweeney, AARP’s senior vice president for government affairs.
    “This bill addresses a problem both Republicans and Democrats have labeled as waste, fraud, and abuse. AARP agrees the No UPCODE Act protects seniors by preserving benefits and eliminating waste,” said Dr. Cassidy. “When companies upcode, taxpayers foot the bill and patients get nothing. That’s wrong.”
    Traditional Medicare plans reimburse providers for the cost of treatments rendered, while Medicare Advantage is paid a standard rate based on the health of an individual patient. Because of this, Medicare Advantage plans have a financial incentive to make beneficiaries appear sicker than they may be to receive a higher Medicare reimbursement. This bill will save $200 billion to $270 billion over 10 years.
    The No UPCODE Act would eliminate those incentives by:

    Developing a risk-adjustment model that uses two years of diagnostic data instead of just one year.
    Limiting the ability to use old or unrelated medical conditions when determining the cost of care. 
    Ensuring Medicare is only charged for treatment related to relevant medical conditions.
    Closing the gap between how a patient is assessed under traditional Medicare and Medicare Advantage.

    Background
    Earlier this year, Cassidy discussed his No UPCODE Act during U.S. Centers for Medicare and Medicaid Services (CMS) Director nominee Mehmet Oz’s confirmation hearing before the U.S. Senate Finance Committee.

    MIL OSI USA News –

  • MIL-OSI USA: Brownley Introduces Legislation to Protect Survivor Benefits for Veterans’ Spouses

    Source: United States House of Representatives – Julia Brownley (D-CA)

    Washington, DC – Today, Congresswoman Julia Brownley (CA-26) announced the introduction of the Veterans’ Surviving Spouse Equity Act, legislation to ensure surviving spouses of veterans are not unfairly denied benefits due to outdated marriage laws. The bill would align spousal benefits eligibility between the Social Security Administration (SSA) and the Department of Veterans Affairs (VA) and correct long-standing inconsistencies in VA law that prevent veteran spouses from accessing the survivor benefits their life partners earned in service to our country. 

    “After hearing from a constituent who was denied survivor benefits because of outdated marriage laws, I introduced this bill to rectify this wrong,” said Congresswoman Julia Brownley. “She had spent years caring for her veteran spouse, yet after his passing, she was left to navigate a cold and unforgiving bureaucracy that refused to recognize their life together. Sadly, her story is not unique. Across the country, too many surviving spouses are being forced to navigate a bureaucratic maze of outdated and inconsistent marriage laws at one of the most difficult times in their lives – after the loss of their life partner. The Veterans’ Surviving Spouse Equity Act will ensure these spouses are seen, heard, and treated with the dignity and respect they deserve. When a veteran serves our country, their family serves too. It’s time our laws reflect that.”

    Under current law, surviving spouses are eligible for Dependency and Indemnity Compensation (DIC) benefits; however, eligibility is limited to spouses who were married to the veteran for at least one year or who had a child with the veteran. A significant challenge for surviving spouses of veterans is that VA relies on inconsistent definitions of marriage to determine eligibility for survivor benefits. These rules lead to unfair outcomes, denying benefits to long-term partners whose relationships don’t fit narrow legal criteria. 

    While the VA recognizes informal unions like common-law marriages in some cases, eligibility often depends on a confusing patchwork of state laws and a couple’s awareness of those laws. For example, a couple in a common-law marriage living in California (a state that does not recognize common-law marriage) may be denied benefits, while a similar couple in Colorado would qualify. To make matters worse, surviving spouses who know their state does not recognize common-law marriage can actually be at a disadvantage when applying for survivor benefits.

    Additionally, the law requires that couples be legally married for at least one year for the surviving spouse to receive benefits. This arbitrary rule means someone who lived with and cared for a veteran for many years but was legally married for only six months may be denied benefits, while someone married for just over a year would qualify. In some instances, VA has even determined that a civil or religious marriage within the last year of a veteran’s life terminates an existing common-law marriage, restarting the one-year clock and further complicating eligibility.

    Unlike VA, the Social Security Administration (SSA), pursuant to Section 1614 of the Social Security Act, permits a spouse to qualify for survivor benefits if they hold “themselves out to the community in which they reside as husband and wife.”

    The Veterans Surviving Spouse Equity Act would synchronize spousal qualifications between SSA and VA, allowing VA to recognize a surviving spouse if they lived with the veteran in the same household for at least one year continuously until the veteran’s death, and if the couple held themselves out as married to their community, regardless of whether there was a legal or religious marriage during that year.

    The Veterans’ Surviving Spouse Equity Act is endorsed by Minority Veterans of America.

    Read the full text of the bill here.

    ###

    Issues: 119th Congress, Veterans’ Affairs

    MIL OSI USA News –

  • MIL-OSI Security: Former Kokomo Police Department Officer Charged with Sexually Assaulting 14-Year-old Girl

    Source: United States Attorneys General

    A federal grand jury in Indianapolis, Indiana, returned a two-count indictment, unsealed today, charging former Kokomo Police Department officer Sinmi Asomuyide with sexually assaulting a 14-year-old girl and with lying to state investigators to try to cover up the assault.

    The first count of the indictment charges Asomuyide, who was 31 years old, with willfully depriving Minor #1, who was 14 years old, of her constitutional rights by sexually assaulting her.  The first count also charges that the defendant’s conduct included kidnapping.

    The second count of the indictment charges Asomuyide with lying to the Indiana State Police to try to cover up the assault by, among other things, denying having sexual contact with Minor #1 and denying that there would be any reason for the presence of his semen in his squad car when, in fact, he ejaculated inside his squad car after causing Minor #1’s hand to touch his exposed penis.

    If convicted, Asomuyide faces a maximum sentence of life in prison.

    Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division, Interim U.S. Attorney Thomas E. Wheeler for the Southern District of Indiana, and Special Agent in Charge Timothy O’Malley of the FBI Indianapolis Field Office made the announcement.

    The FBI Indianapolis Field Office is investigating the case, with the cooperation of the Kokomo Police Department; Bloomington Police Department; and Indiana State Police.

    Assistant U.S. Attorney Peter Blackett for the Southern District of Indiana and Senior Sex Crimes Counsel Tara Allison of the Justice Department’s Civil Rights Division are prosecuting the case.

    This investigation is ongoing.  Anyone with additional information is encouraged to call the FBI at 1-800-CALL-FBI.

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

    MIL Security OSI –

  • MIL-OSI USA: SBA Disaster Assistance Available for Those Impacted by Rowena Fire

    Source: US State of Oregon

    elp is now available for those recovering from the Rowena Fire. At the request of Governor Tina Kotek, the U.S. Small Business Administration (SBA) has approved an Administrative Disaster Declaration, opening the door for low-interest federal loans to assist impacted residents and business owners.

    If the fire damaged your home, business, property, or vehicle, you may be eligible for an SBA disaster loan to help with repairs or replacement. These loans are available to small businesses, homeowners, and renters.

    Starting Friday, July 18, SBA representatives will be on-site at the Disaster Loan Outreach Center (DLOC) in The Dalles to offer personal, one-on-one assistance. They can answer questions, explain the loan process, and help you complete your application.

    The DLOC is located at The Gloria Center, 2505 W. Seventh St., The Dalles, and is open Monday through Friday, 9 a.m. to 6 p.m.

    To learn more or apply online, visit www.sba.gov/disaster

    MIL OSI USA News –

  • MIL-OSI Security: USNS Comfort Departs Dominican Republic After Fourth CP25 Mission Stop

    Source: United States SOUTHERN COMMAND

    The Mercy-class hospital ship USNS Comfort (T-AH 20) departed from Puerto Plata, Dominican Republic, July 21, 2025, after a four-day mission stop during Continuing Promise 2025 (CP25). At the Dominican mission stop, Comfort’s team provided medical and dental care, veterinary subject matter exchanges, medical subject matter exchanges, a humanitarian aid and disaster response workshop, band performances, and a beach clean-up event.

    MIL Security OSI –

  • MIL-OSI: Ninepoint Partners Announces Estimated July 2025 Cash Distributions for Ninepoint Cash Management Fund – ETF Series

    Source: GlobeNewswire (MIL-OSI)

    TORONTO, July 24, 2025 (GLOBE NEWSWIRE) — Ninepoint Partners LP (“Ninepoint Partners”) today announced the estimated July 2025 cash distribution for the ETF Series of Ninepoint Cash Management Fund (the “Fund”). Ninepoint Partners expects to issue a press release on or about July 30, 2025, which will provide the final distribution rate. The record date for the cash distribution is July 31, 2025, payable on August 8, 2025.

    All estimates in this document are based on the accounting data as of July 23, 2025. Due to subscriptions and/or redemptions and/or other factors, the final July 2025 distribution may differ from these estimates and the difference could be material. The information included in this letter is for reference purposes only. Please reconcile all information against your official client statements. This is not intended to be a statement for official tax reporting purposes or any form of tax advice.

    The actual taxable amounts of distributions for 2025, including the tax characteristics of the distributions, will be reported to CDS Clearing and Depository Services Inc. in early 2026. Securityholders can contact their brokerage firm for this information.

    The per-unit estimated July 2025 distribution is detailed below:

    Ninepoint ETF Series Ticker Cash Distribution per unit Notional Distribution per unit CUSIP
    Ninepoint Cash
    Management Fund    		 NSAV $0.11750 $0.00000 65443X105


    About Ninepoint Partners

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

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

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

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

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

    Sales Inquiries:

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

    The MIL Network –

  • MIL-OSI: USCB Financial Holdings, Inc. Reports Record Fully Diluted EPS of $0.40 for Q2 2025; ROAA of 1.22% and ROAE of 14.29%

    Source: GlobeNewswire (MIL-OSI)

    MIAMI, July 24, 2025 (GLOBE NEWSWIRE) — USCB Financial Holdings, Inc. (the “Company”) (NASDAQ: USCB), the holding company for U.S. Century Bank (the “Bank”), reported net income of $8.1 million or $0.40 per fully diluted share for the three months ended June 30, 2025, compared with net income of $6.2 million or $0.31 per fully diluted share for the same period in 2024.

    “We are proud to report another consecutive record quarter, with continued improvement in our profitability ratios reflecting the strength of our core operations,” said Luis de la Aguilera, Chairman, President and CEO. “This quarter, NIM reached 3.28%, driven by healthy loan growth and disciplined deposit pricing. We remain focused on sustaining this momentum while prudently managing risk and capital allocation to deliver long-term value to our shareholders.”

    Unless otherwise stated, all percentage comparisons in the bullet points below are calculated at or for the quarter ended June 30, 2025 compared to at or for the quarter ended June 30, 2024 and annualized where appropriate.

    Profitability

    • Annualized return on average assets for the quarter ended June 30, 2025 was 1.22% compared to 1.01% for the second quarter of 2024.
    • Annualized return on average stockholders’ equity for the quarter ended June 30, 2025 was 14.29% compared to 12.63% for the second quarter of 2024.
    • The efficiency ratio for the quarter ended June 30, 2025 was 51.77% compared to 56.33% for the second quarter of 2024.
    • Net interest margin for the quarter ended June 30, 2025 was 3.28% compared to 2.94% for the second quarter of 2024.
    • Net interest income before provision for credit losses was $21.0 million for the quarter ended June 30, 2025, an increase of $3.7 million or 21.5% compared to $17.3 million for the same period in 2024.

    Balance Sheet

    • Total assets were $2.7 billion at June 30, 2025, representing an increase of $261.2 million or 10.6% from $2.5 billion at June 30, 2024.
    • Total loans held for investment were $2.1 billion at June 30, 2025, representing an increase of $244.1 million or 13.1% from $1.9 billion at June 30, 2024.
    • Total deposits were $2.3 billion at June 30, 2025, representing an increase of $279.0 million or 13.6% from $2.1 billion at June 30, 2024.
    • Total stockholders’ equity was $231.6 million at June 30, 2025, representing an increase of $30.6 million or 15.2% from $201.0 million at June 30, 2024. Total stockholders’ equity included accumulated comprehensive loss of $41.8 million at June 30, 2025 compared to accumulated comprehensive loss of $44.7 million at June 30, 2024.

    Asset Quality

    • The allowance for credit losses (“ACL”) increased by $2.7 million to $24.9 million at June 30, 2025 from $22.2 million at June 30, 2024.
    • The ACL represented 1.18% of total loans at June 30, 2025 and 1.19% at June 30, 2024.
    • The provision for credit loss was $1.0 million for the quarter ended June 30, 2025, an increase of $245 thousand compared to $786 thousand for the same period in 2024.
    • The ratio of non-performing loans to total loans was 0.06% at June 30, 2025 and 0.04% at June 30, 2024. Non-performing loans totaled $1.4 million at June 30, 2025 and $758 thousand at June 30, 2024.

    Non-interest Income and Non-interest Expense

    • Non-interest income was $3.4 million for the three months ended June 30, 2025, an increase of $159 thousand or 5.0% compared to $3.2 million for the same period in 2024.
    • Non-interest expense was $12.6 million for the three months ended June 30, 2025, an increase of $1.1 million or 9.3% compared to $11.6 million for the same period in 2024.

    Capital

    • On July 21, 2025, the Company’s Board of Directors declared a quarterly cash dividend of $0.10 per share of the Company’s Class A common stock. The dividend will be paid on September 5, 2025 to shareholders of record at the close of business on August 15, 2025.
    • As of June 30, 2025, total risk-based capital ratios for the Company and the Bank were 13.73% and 13.67%, respectively, well in excess of regulatory requirements.
    • Tangible book value per common share (a non-GAAP measure) was $11.53 at June 30, 2025, representing an increase of $0.30 or 10.7% annualized from $11.23 at March 31, 2025. At June 30, 2025, tangible book value per common share was negatively affected by ($2.08) per share due to an accumulated comprehensive loss of $41.8 million mostly due to changes in the market value of the Company’s available for sale securities. At March 31, 2025, tangible book value per common share was negatively affected by ($2.05) per share due to an accumulated comprehensive loss of $41.1 million.

    Conference Call and Webcast

    The Company will host a conference call on Friday, July 25, 2025, at 11:00 a.m. Eastern Time to discuss the Company’s unaudited financial results for the quarter ended June 30, 2025. To access the conference call, dial (833) 816-1416 (U.S. toll-free) and ask to join the USCB Financial Holdings Call.

    Additionally, interested parties can listen to a live webcast of the call in the “Investor Relations” section of the Company’s website at www.uscentury.com. An archived version of the webcast will be available in the same location shortly after the live call has ended.

    About USCB Financial Holdings, Inc.

    USCB Financial Holdings, Inc. is the bank holding company for U.S. Century Bank. Established in 2002, U.S. Century Bank is one of the largest community banks headquartered in Miami, and one of the largest community banks in the State of Florida. U.S. Century Bank is rated 5-Stars by BauerFinancial, the nation’s leading independent bank rating firm. U.S. Century Bank offers customers a wide range of financial products and services and supports numerous community organizations, including the Greater Miami Chamber of Commerce, the South Florida Hispanic Chamber of Commerce, and ChamberSouth. For more information about us or to find a banking center near you, please call (305) 715-5200 or visit www.uscentury.com.

    Forward-Looking Statements

    This earnings release may contain statements that are not historical in nature and are intended to be, and are hereby identified as, forward-looking statements for purposes of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are those that are not historical facts. The words “may,” “will,” “anticipate,” “could,” “should,” “would,” “believe,” “contemplate,” “expect,” “aim,” “plan,” “estimate,” “seek,” “continue,” and “intend,”, the negative of these terms, as well as other similar words and expressions of the future, are intended to identify forward-looking statements. These forward-looking statements include, but are not limited to, statements related to our projected growth, anticipated future financial performance, and management’s long-term performance goals, as well as statements relating to the anticipated effects on our results of operations and financial condition from expected or potential developments or events, or business and growth strategies, including anticipated internal growth and balance sheet restructuring.

    These forward-looking statements involve significant risks and uncertainties that could cause our actual results to differ materially from those anticipated in such statements. Potential risks and uncertainties include, but are not limited to:

    • the strength of the United States economy in general and the strength of the local economies in which we conduct operations;
    • our ability to successfully manage interest rate risk, credit risk, liquidity risk, and other risks inherent to our industry;
    • the accuracy of our financial statement estimates and assumptions, including the estimates used for our credit loss reserve and deferred tax asset valuation allowance;
    • the efficiency and effectiveness of our internal control procedures and processes;
    • our ability to comply with the extensive laws and regulations to which we are subject, including the laws for each jurisdiction where we operate;
    • adverse changes or conditions in capital and financial markets, including actual or potential stresses in the banking industry;
    • deposit attrition and the level of our uninsured deposits;
    • legislative or regulatory changes and changes in accounting principles, policies, practices or guidelines, including the on-going effects of the Current Expected Credit Losses (“CECL”) standard;
    • the lack of a significantly diversified loan portfolio and our concentration in the South Florida market, including the risks of geographic, depositor, and industry concentrations, including our concentration in loans secured by real estate, in particular, commercial real estate;
    • the effects of climate change;
    • the concentration of ownership of our common stock;
    • fluctuations in the price of our common stock;
    • our ability to fund or access the capital markets at attractive rates and terms and manage our growth, both organic growth as well as growth through other means, such as future acquisitions;
    • inflation, interest rate, unemployment rate, and market and monetary fluctuations;
    • the effects of potential new or increased tariffs and trade restrictions;
    • the impact of international hostilities and geopolitical events;
    • increased competition and its effect on the pricing of our products and services as well as our interest rate spread and net interest margin;
    • the loss of key employees;
    • the effectiveness of our risk management strategies, including operational risks, including, but not limited to, client, employee, or third-party fraud and security breaches; and
    • other risks described in this earnings release and other filings we make with the Securities and Exchange Commission (“SEC”).

    All forward-looking statements are necessarily only estimates of future results, and there can be no assurance  that actual results will not differ materially from expectations. Therefore, you are cautioned not to place undue reliance on any forward-looking statements. Further, forward-looking statements included in this earnings release are made only as of the date hereof, and we undertake no obligation to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statements are made or to reflect the occurrence of unanticipated events, unless required to do so under the federal securities laws. You should also review the risk factors described in the reports the Company filed or will file with the SEC.

    Non-GAAP Financial Measures

    This earnings release includes financial information determined by methods other than in accordance with generally accepted accounting principles (“GAAP”). This financial information includes certain operating performance measures. Management has included these non-GAAP measures because it believes these measures may provide useful supplemental information for evaluating the Company’s operations and underlying performance trends. Further, management uses these measures in managing and evaluating the Company’s business and intends to refer to them in discussions about our operations and performance. Operating performance measures should be viewed in addition to, and not as an alternative to or substitute for, measures determined in accordance with GAAP, and are not necessarily comparable to non-GAAP measures that may be presented by other companies. Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures can be found in the ‘Non-GAAP Reconciliation Tables’ included in the exhibits to this earnings release.

    All numbers included in this press release are unaudited unless otherwise noted.

    Contacts:

    Investor Relations
    InvestorRelations@uscentury.com 

    Media Relations
    Martha Guerra-Kattou
    MGuerra@uscentury.com 

    USCB FINANCIAL HOLDINGS, INC.
    CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
    (Dollars in thousands, except per share data)
                           
      Three Months Ended June 30,   Six Months Ended June 30,
      2025   2024   2025   2024
    Interest income:                      
    Loans, including fees $ 31,946   $ 28,017   $ 62,191   $ 54,660
    Investment securities   3,432     3,069     6,456     5,880
    Interest-bearing deposits in financial institutions   776     1,531     1,485     2,964
    Total interest income   36,154     32,617     70,132     63,504
    Interest expense:                      
    Interest-bearing checking deposits   285     391     623     760
    Savings and money market deposits   9,410     10,071     18,745     20,465
    Time deposits   4,343     3,222     8,261     6,516
    FHLB advances and other borrowings   1,082     1,622     2,354     3,294
    Total interest expense   15,120     15,306     29,983     31,035
    Net interest income before provision for credit losses   21,034     17,311     40,149     32,469
    Provision for credit losses   1,031     786     1,712     1,196
    Net interest income after provision for credit losses   20,003     16,525     38,437     31,273
    Non-interest income:                          
    Service fees   2,402     1,977     4,733     3,628
    Gain on sale of securities available for sale, net   –     14     –     14
    Gain on sale of loans held for sale, net   151     417     676     484
    Other non-interest income   817     803     1,677     1,549
    Total non-interest income   3,370     3,211     7,086     5,675
    Non-interest expense:                          
    Salaries and employee benefits   7,954     7,353     15,590     13,663
    Occupancy   1,337     1,266     2,621     2,580
    Regulatory assessments and fees   396     476     817     909
    Consulting and legal fees   263     263     456     855
    Network and information technology services   564     479     1,069     986
    Other operating expense   2,120     1,723     4,133     3,741
    Total non-interest expense   12,634     11,560     24,686     22,734
    Net income before income tax expense   10,739     8,176     20,837     14,214
    Income tax expense   2,599     1,967     5,039     3,393
    Net income $ 8,140   $ 6,209   $ 15,798   $ 10,821
    Per share information:                      
    Net income per common share, basic $ 0.41   $ 0.32   $ 0.79   $ 0.55
    Net income per common share, diluted $ 0.40   $ 0.31   $ 0.78   $ 0.55
    Cash dividends declared $ 0.10   $ 0.05   $ 0.20   $ 0.10
    Weighted average shares outstanding:                      
    Common shares, basic   20,059,264     19,650,681     20,040,205     19,642,006
    Common shares, diluted   20,295,794     19,717,167     20,299,585     19,707,561
                           
     
    USCB FINANCIAL HOLDINGS, INC.
    SELECTED FINANCIAL DATA (UNAUDITED)
    (Dollars in thousands, except per share data)
                                 
      As of or For the Three Months Ended
      6/30/2025   3/31/2025   12/31/2024   9/30/2024   6/30/2024
    Income statement data:                            
    Net interest income before provision for credit losses $ 21,034     $ 19,115     $ 19,358     $ 18,109     $ 17,311  
    Provision for credit losses   1,031       681       1,030       931       786  
    Net interest income after provision for credit losses   20,003       18,434       18,328       17,178       16,525  
    Service fees   2,402       2,331       2,667       2,544       1,977  
    Gain on sale of securities available for sale, net   –       –       –       –       14  
    Gain on sale of loans held for sale, net   151       525       154       109       417  
    Other non-interest income   817       860       806       785       803  
    Total non-interest income   3,370       3,716       3,627       3,438       3,211  
    Salaries and employee benefits   7,954       7,636       7,930       7,200       7,353  
    Occupancy   1,337       1,284       1,337       1,341       1,266  
    Regulatory assessments and fees   396       421       405       452       476  
    Consulting and legal fees   263       193       552       161       263  
    Network and information technology services   564       505       494       513       479  
    Other operating expense   2,120       2,013       2,136       1,787       1,723  
    Total non-interest expense   12,634       12,052       12,854       11,454       11,560  
    Net income before income tax expense   10,739       10,098       9,101       9,162       8,176  
    Income tax expense   2,599       2,440       2,197       2,213       1,967  
    Net income $ 8,140     $ 7,658     $ 6,904     $ 6,949     $ 6,209  
    Per share information:                            
    Net income per common share, basic $ 0.41     $ 0.38     $ 0.35     $ 0.35     $ 0.32  
    Net income per common share, diluted $ 0.40     $ 0.38     $ 0.34     $ 0.35     $ 0.31  
    Cash dividends declared $ 0.10     $ 0.10     $ 0.05     $ 0.05     $ 0.05  
    Balance sheet data (at period-end):                            
    Cash and cash equivalents $ 54,819     $ 97,984     $ 77,035     $ 38,486     $ 77,261  
    Securities available-for-sale $ 285,382     $ 275,139     $ 260,221     $ 259,527     $ 236,444  
    Securities held-to-maturity $ 158,740     $ 161,790     $ 164,694     $ 167,001     $ 169,606  
    Total securities $ 444,122     $ 436,929     $ 424,915     $ 426,528     $ 406,050  
    Loans held for investment (1) $ 2,113,318     $ 2,036,212     $ 1,972,848     $ 1,931,362     $ 1,869,249  
    Allowance for credit losses $ (24,933 )   $ (24,740 )   $ (24,070 )   $ (23,067 )   $ (22,230 )
    Total assets $ 2,719,474     $ 2,677,382     $ 2,581,216     $ 2,503,954     $ 2,458,270  
    Non-interest-bearing demand deposits $ 584,895     $ 605,489     $ 575,159     $ 637,313     $ 579,243  
    Interest-bearing deposits $ 1,750,766     $ 1,704,080     $ 1,598,845     $ 1,489,304     $ 1,477,459  
    Total deposits $ 2,335,661     $ 2,309,569     $ 2,174,004     $ 2,126,617     $ 2,056,702  
    FHLB advances and other borrowings $ 108,000     $ 108,000     $ 163,000     $ 118,000     $ 162,000  
    Total liabilities $ 2,487,891     $ 2,452,294     $ 2,365,828     $ 2,290,038     $ 2,257,250  
    Total stockholders’ equity $ 231,583     $ 225,088     $ 215,388     $ 213,916     $ 201,020  
    Capital ratios:(2)                            
    Leverage ratio   9.72 %     9.61 %     9.53 %     9.34 %     9.03 %
    Common equity tier 1 capital   12.52 %     12.48 %     12.28 %     12.01 %     11.93 %
    Tier 1 risk-based capital   12.52 %     12.48 %     12.28 %     12.01 %     11.93 %
    Total risk-based capital   13.73 %     13.72 %     13.51 %     13.22 %     13.12 %
                                 
    (1) Loan amounts include deferred fees/costs.
    (2) Reflects the Company’s regulatory capital ratios which are provided for informational purposes only; as a small bank holding company, the Company is not subject to regulatory capital requirements. The Bank’s total risk-based capital at June 30, 2025 was 13.67%.
     
    USCB FINANCIAL HOLDINGS, INC.
    AVERAGE BALANCES, RATIOS, AND OTHER DATA (UNAUDITED)
    (Dollars in thousands)
                                 
      As of or For the Three Months Ended
      6/30/2025   3/31/2025   12/31/2024   9/30/2024   6/30/2024
    Average balance sheet data:                            
    Cash and cash equivalents $ 71,388     $ 82,610     $ 56,937     $ 87,937     $ 107,831  
    Securities available-for-sale $ 281,840     $ 265,154     $ 255,786     $ 244,882     $ 263,345  
    Securities held-to-maturity $ 160,443     $ 163,510     $ 165,831     $ 168,632     $ 171,682  
    Total securities $ 442,283     $ 428,664     $ 421,617     $ 413,514     $ 435,027  
    Loans held for investment(1) $ 2,057,445     $ 1,986,856     $ 1,958,566     $ 1,878,230     $ 1,828,487  
    Total assets $ 2,677,198     $ 2,606,593     $ 2,544,592     $ 2,485,434     $ 2,479,222  
    Interest-bearing deposits $ 1,710,568     $ 1,652,147     $ 1,547,789     $ 1,468,067     $ 1,473,513  
    Non-interest-bearing demand deposits $ 580,121     $ 563,040     $ 590,829     $ 609,456     $ 610,370  
    Total deposits $ 2,290,689     $ 2,215,187     $ 2,138,618     $ 2,077,523     $ 2,083,883  
    FHLB advances and other borrowings $ 116,527     $ 138,944     $ 151,804     $ 156,043     $ 162,000  
    Total liabilities $ 2,448,706     $ 2,387,088     $ 2,328,877     $ 2,278,793     $ 2,281,467  
    Total stockholders’ equity $ 228,492     $ 219,505     $ 215,715     $ 206,641     $ 197,755  
    Performance ratios:                            
    Return on average assets (2)   1.22 %     1.19 %     1.08 %     1.11 %     1.01 %
    Return on average equity (2)   14.29 %     14.15 %     12.73 %     13.38 %     12.63 %
    Net interest margin (2)   3.28 %     3.10 %     3.16 %     3.03 %     2.94 %
    Non-interest income to average assets (2)   0.50 %     0.58 %     0.57 %     0.55 %     0.52 %
    Non-interest expense to average assets (2)   1.89 %     1.88 %     2.01 %     1.83 %     1.88 %
    Efficiency ratio (3)   51.77 %     52.79 %     55.92 %     53.16 %     56.33 %
    Loans by type (at period end): (4)                            
    Residential real estate $ 307,020     $ 301,164     $ 289,961     $ 283,477     $ 256,807  
    Commercial real estate $ 1,206,621     $ 1,150,129     $ 1,136,417     $ 1,095,112     $ 1,053,030  
    Commercial and industrial $ 263,966     $ 256,326     $ 258,311     $ 246,539     $ 248,525  
    Correspondent banks $ 110,155     $ 103,026     $ 82,438     $ 103,815     $ 112,510  
    Consumer and other $ 218,426     $ 218,711     $ 198,091     $ 198,604     $ 194,644  
    Asset quality data:                            
    Allowance for credit losses to total loans   1.18 %     1.22 %     1.22 %     1.19 %     1.19 %
    Allowance for credit losses to non-performing loans   1825 %     595 %     889 %     846 %     2,933 %
    Total non-performing loans(5) $ 1,366     $ 4,156     $ 2,707     $ 2,725     $ 758  
    Non-performing loans to total loans   0.06 %     0.20 %     0.14 %     0.14 %     0.04 %
    Non-performing assets to total assets(5)   0.05 %     0.16 %     0.10 %     0.11 %     0.03 %
    Net charge-offs (recoveries of) to average loans (2)   0.14 %     0.00 %     (0.00 )%     (0.00 )%     (0.00 )%
    Net charge-offs (recovery) of credit losses $ 702     $ 2     $ (11 )   $ (6 )   $ (2 )
    Interest rates and yields:(2)                            
    Loans held for investment   6.23 %     6.17 %     6.25 %     6.32 %     6.16 %
    Investment securities   3.06 %     2.81 %     2.63 %     2.61 %     2.80 %
    Total interest-earning assets   5.64 %     5.51 %     5.57 %     5.61 %     5.54 %
    Deposits(6)   2.46 %     2.49 %     2.48 %     2.66 %     2.64 %
    FHLB advances and other borrowings   3.72 %     3.71 %     3.81 %     4.05 %     4.03 %
    Total interest-bearing liabilities   3.32 %     3.37 %     3.47 %     3.79 %     3.76 %
    Other information:                            
    Full-time equivalent employees   203       201       199       198       197  
                                 
    (1) Loan amounts include deferred fees/costs.
    (2) Annualized.
    (3) Efficiency ratio is defined as total non-interest expense divided by sum of net interest income and total non-interest income.
    (4) Loan amounts exclude deferred fees/costs.
    (5) The amounts for total non-performing loans and total non-performing assets are the same at the dates presented since there was no other real estate owned (OREO) recorded at any of the dates presented.
    (6) Reflects effect of non-interest-bearing deposits.
     
    USCB FINANCIAL HOLDINGS, INC.
    NET INTEREST MARGIN (UNAUDITED)
    (Dollars in thousands)
                                   
      Three Months Ended June 30,
      2025   2024
      Average
    Balance    		   Interest   Yield/Rate (1)   Average
    Balance    		   Interest   Yield/Rate (1)
    Assets                              
    Interest-earning assets:                              
    Loans held for investment(2) $ 2,057,445   $ 31,946   6.23 %   $ 1,828,487   $ 28,017   6.16 %
    Investment securities (3)   449,624     3,432   3.06 %     440,559     3,069   2.80 %
    Other interest-earning assets   63,974     776   4.87 %     100,371     1,531   6.13 %
    Total interest-earning assets   2,571,043     36,154   5.64 %     2,369,417     32,617   5.54 %
    Non-interest-earning assets   106,155                 109,805            
    Total assets $ 2,677,198             $ 2,479,222          
    Liabilities and stockholders’ equity                                    
    Interest-bearing liabilities:                              
    Interest-bearing checking deposits $ 46,694     285   2.45 %   $ 56,369     391   2.79 %
    Saving and money market deposits   1,211,513     9,410   3.12 %     1,101,272     10,071   3.68 %
    Time deposits   452,361     4,343   3.85 %     315,872     3,222   4.10 %
    Total interest-bearing deposits   1,710,568     14,038   3.29 %     1,473,513     13,684   3.74 %
    FHLB advances and other borrowings   116,527     1,082   3.72 %     162,000     1,622   4.03 %
    Total interest-bearing liabilities   1,827,095     15,120   3.32 %     1,635,513     15,306   3.76 %
    Non-interest-bearing demand deposits   580,121                 610,370             
    Other non-interest-bearing liabilities   41,490               35,584          
    Total liabilities   2,448,706                 2,281,467            
    Stockholders’ equity   228,492               197,755          
    Total liabilities and stockholders’ equity $ 2,677,198               $ 2,479,222            
    Net interest income       $ 21,034             $ 17,311    
    Net interest spread (4)             2.32 %               1.78 %
    Net interest margin (5)             3.28 %               2.94 %
                                   
    (1) Annualized.
    (2) Average loan balances include non-accrual loans. Interest income on loans includes accretion of deferred loan fees, net of deferred loan costs.
    (3) At fair value except for securities held to maturity. This amount includes FHLB stock.
    (4) Net interest spread is the average yield earned on total interest-earning assets minus the average rate paid on total interest-bearing liabilities.
    (5) Net interest margin is the ratio of net interest income to total interest-earning assets.
     
    USCB FINANCIAL HOLDINGS, INC.
    NON-GAAP FINANCIAL MEASURES (UNAUDITED)
    (Dollars in thousands)
                                 
      As of or For the Three Months Ended
      6/30/2025   3/31/2025   12/31/2024   9/30/2024   6/30/2024
    Pre-tax pre-provision (“PTPP”) income:(1)                            
    Net income $ 8,140     $ 7,658     $ 6,904     $ 6,949     $ 6,209  
    Plus: Provision for income taxes   2,599       2,440       2,197       2,213       1,967  
    Plus: Provision for credit losses   1,031       681       1,030       931       786  
    PTPP income $ 11,770     $ 10,779     $ 10,131     $ 10,093     $ 8,962  
                                 
    PTPP return on average assets:(1)                                 
    PTPP income $ 11,770     $ 10,779     $ 10,131     $ 10,093     $ 8,962  
    Average assets $ 2,677,198     $ 2,606,593     $ 2,544,592     $ 2,485,434     $ 2,479,222  
    PTPP return on average assets (2)   1.76 %     1.68 %     1.58 %     1.62 %     1.45 %
                                      
    Operating net income:(1)                            
    Net income $ 8,140     $ 7,658     $ 6,904     $ 6,949     $ 6,209  
    Less: Net gains on sale of securities   –       –       –       –       14  
    Less: Tax effect on sale of securities   –       –       –       –       (4 )
    Operating net income $ 8,140     $ 7,658     $ 6,904     $ 6,949     $ 6,199  
                                      
    Operating PTPP income:(1)                            
    PTPP income $ 11,770     $ 10,779     $ 10,131     $ 10,093     $ 8,962  
    Less: Net gains on sale of securities   –       –       –       –       14  
    Operating PTPP income $ 11,770     $ 10,779     $ 10,131     $ 10,093     $ 8,948  
                                 
    Operating PTPP return on average assets:(1)                                 
    Operating PTPP income $ 11,770     $ 10,779     $ 10,131     $ 10,093     $ 8,948  
    Average assets $ 2,677,198     $ 2,606,593     $ 2,544,592     $ 2,485,434     $ 2,479,222  
    Operating PTPP return on average assets (2)   1.76 %     1.68 %     1.58 %     1.62 %     1.45 %
                                      
    Operating return on average assets:(1)                            
    Operating net income $ 8,140     $ 7,658     $ 6,904     $ 6,949     $ 6,199  
    Average assets $ 2,677,198     $ 2,606,593     $ 2,544,592     $ 2,485,434     $ 2,479,222  
    Operating return on average assets (2)   1.22 %     1.19 %     1.08 %     1.11 %     1.01 %
                                 
    Operating return on average equity:(1)                            
    Operating net income $ 8,140     $ 7,658     $ 6,904     $ 6,949     $ 6,199  
    Average equity $ 228,492     $ 219,505     $ 215,715     $ 206,641     $ 197,755  
    Operating return on average equity (2)   14.29 %     14.15 %     12.73 %     13.38 %     12.61 %
                                 
    Operating Revenue:(1)                            
    Net interest income $ 21,034     $ 19,115     $ 19,358     $ 18,109     $ 17,311  
    Non-interest income   3,370       3,716       3,627       3,438       3,211  
    Less: Net gains on sale of securities   –       –       –       –       14  
    Operating revenue $ 24,404     $ 22,831     $ 22,985     $ 21,547     $ 20,508  
                                 
    Operating Efficiency Ratio:(1)                            
    Total non-interest expense $ 12,634     $ 12,052     $ 12,854     $ 11,454     $ 11,560  
    Operating revenue $ 24,404     $ 22,831     $ 22,985     $ 21,547     $ 20,508  
    Operating efficiency ratio   51.77 %     52.79 %     55.92 %     53.16 %     56.37 %
                                 
    (1) The Company believes these non-GAAP measurements are key indicators of the ongoing earnings power of the Company.
    (2) Annualized.
     
    USCB FINANCIAL HOLDINGS, INC.
    NON-GAAP FINANCIAL MEASURES (UNAUDITED)
    (Dollars in thousands, except per share data)
                                 
      As of or For the Three Months Ended
      6/30/2025   3/31/2025   12/31/2024   9/30/2024   6/30/2024
    Tangible book value per common share (at period-end):(1)                            
    Total stockholders’ equity $ 231,583     $ 225,088     $ 215,388     $ 213,916     $ 201,020  
    Less: Intangible assets   –       –       –       –       –  
    Tangible stockholders’ equity $ 231,583     $ 225,088     $ 215,388     $ 213,916     $ 201,020  
    Total shares issued and outstanding (at period-end):                            
    Total common shares issued and outstanding   20,078,385       20,048,385       19,924,632       19,620,632       19,630,632  
    Tangible book value per common share(2) $ 11.53     $ 11.23     $ 10.81     $ 10.90     $ 10.24  
                                 
    Operating diluted net income per common share:(1)                            
    Operating net income $ 8,140     $ 7,658     $ 6,904     $ 6,949     $ 6,199  
    Total weighted average diluted shares of common stock   20,295,794       20,319,535       20,183,731       19,825,211       19,717,167  
    Operating diluted net income per common share: $ 0.40     $ 0.38     $ 0.34     $ 0.35     $ 0.31  
                                 
    Tangible Common Equity/Tangible Assets(1)                            
    Tangible stockholders’ equity $ 231,583     $ 225,088     $ 215,388     $ 213,916     $ 201,020  
    Tangible total assets(3) $ 2,719,474     $ 2,677,382     $ 2,581,216     $ 2,503,954     $ 2,458,270  
    Tangible Common Equity/Tangible Assets   8.52 %     8.41 %     8.34 %     8.54 %     8.18 %
                                 
    (1) The Company believes these non-GAAP measurements are key indicators of the ongoing earnings power of the Company.
    (2) Excludes the dilutive effect, if any, of shares of common stock issuable upon exercise of outstanding stock options.
    (3) Since the Company has no intangible assets, tangible total assets is the same amount as total assets calculated under GAAP.

    The MIL Network –

  • MIL-OSI: First Western Reports Second Quarter 2025 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    Second Quarter 2025 Summary

    • Total loans increased $115 million, or 4.7%, from $2.43 billion as of Q1 2025 to $2.54 billion as of Q2 2025
    • Net interest margin increased 6 basis points from 2.61% in Q1 2025 to 2.67% in Q2 2025
    • Net interest income increased $0.4 million from $17.5 million in Q1 2025 to $17.9 million in Q2 2025
    • Non-interest expense decreased $0.3 million from $19.4 million in Q1 2025 to $19.1 million in Q2 2025
    • Net income available to common shareholders of $2.5 million, or $0.26 per diluted share, in Q2 2025

    DENVER, July 24, 2025 (GLOBE NEWSWIRE) — First Western Financial, Inc. (“First Western” or the “Company”) (NASDAQ: MYFW), today reported financial results for the second quarter ended June 30, 2025.

    Net income available to common shareholders was $2.5 million, or $0.26 per diluted share, for the second quarter of 2025. This compares to net income of $4.2 million, or $0.43 per diluted share, for the first quarter of 2025, and net income of $1.1 million, or $0.11 per diluted share, for the second quarter of 2024.

    Scott C. Wylie, CEO of First Western, commented, “We executed well in the second quarter and saw positive trends in many areas including loan and deposit growth, an expansion in our net interest margin, well managed expenses, and stable asset quality. We were able to redeploy the cash from the sale of our two largest OREO properties into loan production and securities purchases, which positively impacted our net interest margin. While maintaining our disciplined underwriting and pricing criteria, we had a very strong quarter of loan production, which was well diversified across our markets and loan portfolios. Our strong loan production reflects the healthy economic conditions we continue to see across our markets, as well as the contribution of banking talent we have added over the past few years.

    “Our loan and deposit pipelines remain healthy and we expect to see solid balance sheet growth over the second half of the year, along with continued expansion in our net interest margin while we continue to maintain tight expense control. We believe this will continue to result in solid financial performance for our shareholders as we move through the year,” said Mr. Wylie.

      For the Three Months Ended
      June 30,   March 31,   June 30,
    (Dollars in thousands, except per share data)   2025       2025       2024  
    Earnings Summary          
    Net interest income $ 17,884     $ 17,453     $ 15,778  
    Provision for credit losses   1,773       80       2,334  
    Total non-interest income   6,305       7,345       6,972  
    Total non-interest expense   19,099       19,361       19,001  
    Income before income taxes   3,317       5,357       1,415  
    Income tax expense   814       1,172       339  
    Net income available to common shareholders   2,503       4,185       1,076  
    Basic earnings per common share   0.26       0.43       0.11  
    Diluted earnings per common share   0.26       0.43       0.11  
               
    Return on average assets (annualized)   0.36 %     0.59 %     0.15 %
    Return on average shareholders’ equity (annualized)   3.90       6.63       1.73  
    Return on tangible common equity (annualized)(1)   4.40       7.44       2.00  
    Net interest margin   2.67       2.61       2.35  
    Efficiency ratio(1)   78.83       79.16       82.25  

    ____________________

    (1) Represents a Non-GAAP financial measure. See “Reconciliations of Non-GAAP Financial Measures” for a reconciliation of our Non-GAAP measures to the most directly comparable GAAP financial measure.

    Operating Results for the Second Quarter 2025

    Revenue

    Total income before non-interest expense was $22.4 million for the second quarter of 2025, a decrease of 9.3% from $24.7 million for the first quarter of 2025. Gross revenue(1) was $24.2 million for the second quarter of 2025, a decrease of 1.6% from $24.6 million for the first quarter of 2025. Relative to the first quarter of 2025, the decrease in total income before non-interest expense was primarily driven by an increase in the Provision for credit losses and decreases in Net gain on loans held for sale and Net gain on other real estate owned, partially offset by an increase in Net interest income. Relative to the second quarter of 2024, total income before non-interest expense increased 9.8% from $20.4 million and Gross revenue increased 4.8% from $23.1 million. Relative to the second quarter of 2024, the increase in total income before non-interest expense was primarily driven by an increase in Net interest income and decrease in the Provision for credit losses, partially offset by a decrease in Net gain on mortgage loans.

    (1) Represents a Non-GAAP financial measure. See “Reconciliations of Non-GAAP Financial Measures” for a reconciliation of our Non-GAAP measures to the most directly comparable GAAP financial measure.

    Net Interest Margin

    Net interest margin for the second quarter of 2025 increased 6 basis points to 2.67% from 2.61% reported in the first quarter of 2025, primarily due to a decrease in cost of deposits and increase in interest-earning assets yield. The decrease in cost of deposits was primarily due to lower rates on time deposits and the increase in interest-earning assets yield was primarily due to an improved mix in average interest-earning asset balances.

    The yield on interest-earning assets increased 4 basis points to 5.61% from 5.57% reported in the first quarter of 2025 and the cost of interest-bearing liabilities decreased 2 basis points to 3.63% from 3.65% reported in the first quarter of 2025.

    Relative to the second quarter of 2024, net interest margin increased 32 basis points from 2.35%, primarily due to a 42 basis point decrease in total cost of funds as a result of the lower interest rate environment.

    Net Interest Income

    Net interest income for the second quarter of 2025 was $17.9 million, an increase of 2.3% from $17.5 million for the first quarter of 2025. The increase quarter over quarter was primarily driven by a 6 basis point increase in net interest margin, offset partially by a decline in average interest-earning assets. Relative to the second quarter of 2024, net interest income increased 13.3% from $15.8 million. The increase compared to the second quarter of 2024 was primarily driven by a 32 basis point increase in net interest margin, offset partially by a decline in average interest-earnings assets.

    Non-interest Income

    Non-interest income for the second quarter of 2025 was $6.3 million, a decrease of 13.7% from $7.3 million in the first quarter of 2025. The decrease was driven primarily by decreases in Net gain on other real estate owned, Net gain on loans held for sale, and Risk management and insurance fees, partially offset by an increase in Net gain on mortgage loans due to an increase in origination volume. The first quarter of 2025 included a Net gain on other real estate of $0.5 million due to the sale of our two largest OREO properties as well as a Net gain on loans held for sale of $0.2 million due to the reversal of a previous quarter’s write-down on a non-performing loan.

    Relative to the second quarter of 2024, non-interest income decreased $0.7 million, driven primarily by a decrease in Net gain on mortgage loans due to a decrease in origination volume.

    Non-interest Expense

    Non-interest expense for the second quarter of 2025 was $19.1 million, a decrease of 1.5% from $19.4 million in the first quarter of 2025. The decrease was primarily driven by a decrease in Salaries and employee benefits due to the seasonality of payroll taxes, partially offset by an increase in Professional services.

    Relative to the second quarter of 2024, non-interest expense increased 0.5% from $19.0 million, driven primarily by an increase in Occupancy and equipment expenses, partially offset by a decrease in Salaries and employee benefits.

    The Company’s efficiency ratio(1) was 78.8% in the second quarter of 2025, compared with 79.2% in the first quarter of 2025 and 82.3% in the second quarter of 2024.

    (1) Represents a Non-GAAP financial measure. See “Reconciliations of Non-GAAP Financial Measures” for a reconciliation of our Non-GAAP measures to the most directly comparable GAAP financial measure.

    Income Taxes

    The Company recorded Income tax expense of $0.8 million for the second quarter of 2025, compared to $1.2 million for the first quarter of 2025, and $0.3 million for the second quarter of 2024.

    Loans

    Total loans held for investment were $2.54 billion as of June 30, 2025, an increase of $115 million or 4.7% compared to March 31, 2025. Changes in the quarter included net growth in the Cash, securities, and other and 1-4 family residential portfolios, partially offset by a net decrease in the Construction and development portfolio. Relative to the second quarter of 2024, total loans held for investment increased from $2.46 billion as of June 30, 2024, primarily driven by net growth in the 1-4 family residential and Non-owner occupied commercial real estate portfolios, partially offset by net decreases in the Construction and development and Commercial and industrial portfolios.

    Deposits

    Total deposits were $2.53 billion as of June 30, 2025, an increase of 0.4% from $2.52 billion as of March 31, 2025. Relative to the second quarter of 2024, total deposits increased from $2.41 billion as of June 30, 2024, driven primarily by an increase in Interest-bearing deposits.

    Borrowings

    Federal Home Loan Bank (“FHLB”) and Federal Reserve borrowings were a combined $163.4 million as of June 30, 2025, an increase of $111.8 million from $51.6 million as of March 31, 2025. The change when compared to March 31, 2025 was primarily driven by net draws on the Company’s FHLB line of credit as a result of interest-earning asset growth during the quarter. Relative to the second quarter of 2024, borrowings decreased $28.1 million from $191.5 million as of June 30, 2024. The decrease in borrowings from June 30, 2024 was primarily driven by Bank Term Funding Program (“BTFP”) payoffs and net pay downs on the Company’s FHLB line of credit as a result of deposit growth.

    Subordinated notes were $44.7 million as of June 30, 2025, compared to $44.6 million as of March 31, 2025. Subordinated notes decreased $7.8 million from $52.5 million as of June 30, 2024. Relative to the second quarter of 2024, the decrease was primarily due to the redemption of $8.0 million of subordinated notes that became eligible to call in the first quarter of 2025.

    Assets Under Management

    Assets Under Management (“AUM”) was $7.50 billion as of June 30, 2025, an increase of $320 million, or 4.5%, from $7.18 billion as of March 31, 2025. The increase in AUM during the quarter was primarily attributable to improving market conditions. Compared to June 30, 2024, total AUM increased 6.9% from $7.01 billion.

    Credit Quality

    Non-performing assets totaled $18.8 million, or 0.62% of Total assets, as of June 30, 2025, compared to $17.1 million, or 0.59% of total assets, as of March 31, 2025. The increase in non-performing assets during the quarter was due to additions to non-performing loans. As of June 30, 2024, non-performing assets totaled $49.3 million, or 1.68% of total assets. Relative to the second quarter of 2024, the decrease in non-performing assets was primarily driven by the sale of two OREO properties, partially offset by additions to non-performing loans. OREO totaled $4.4 million as of June 30, 2025 and March 31, 2025, a decrease of $7.0 million from $11.4 million as of June 30, 2024.

    Non-performing loans totaled $14.4 million as of June 30, 2025, an increase of $1.6 million from $12.8 million as of March 31, 2025. The increase was due to the addition of one credit relationship that is in active workout. This relationship is secured by a residential real estate asset, business assets, and a personal guarantee. As of June 30, 2024, non-performing loans totaled $37.9 million. The decrease when compared to June 30, 2024 was driven by the migration of one loan relationship out of non-performing loans and into OREO, partially offset by additions to non-performing loans.

    During the second quarter of 2025, the Company recorded provision expense of $1.8 million, compared to $0.1 million in the first quarter of 2025 and $2.3 million in the second quarter of 2024. The increase in provision expense recorded in the second quarter of 2025 compared to the first quarter of 2025 was primarily driven by loan growth and charge-offs.

    Capital

    As of June 30, 2025, First Western (“Consolidated”) and First Western Trust Bank (“Bank”) exceeded the minimum capital levels required by their respective regulators. As of June 30, 2025, the Bank was classified as “well capitalized,” as summarized in the following table:

      June 30,
      2025
    Consolidated Capital  
    Tier 1 capital to risk-weighted assets 9.96 %
    Common Equity Tier 1 (“CET1”) to risk-weighted assets 9.96  
    Total capital to risk-weighted assets 12.67  
    Tier 1 capital to average assets 8.31  
       
    Bank Capital  
    Tier 1 capital to risk-weighted assets 11.36 %
    CET1 to risk-weighted assets 11.36  
    Total capital to risk-weighted assets 12.13  
    Tier 1 capital to average assets 9.49  

    Book value per common share increased 0.8% from $26.44 as of March 31, 2025 to $26.64 as of June 30, 2025. Book value per common share increased 4.3% from $25.55 as of June 30, 2024.

    Tangible book value per common share(1) increased 0.9% from $23.18 as of March 31, 2025, to $23.39 as of June 30, 2025. Tangible book value per common share increased 5.0% from $22.27 as of June 30, 2024.

    During the three months ended June 30, 2025, the Company repurchased 26,287 shares for $0.5 million.

    (1) Represents a Non-GAAP financial measure. See “Reconciliations of Non-GAAP Financial Measures” for a reconciliation of our Non-GAAP measures to the most directly comparable GAAP financial measure.

    Conference Call, Webcast and Slide Presentation

    The Company will host a conference call and webcast at 10:00 a.m. MT/ 12:00 p.m. ET on Friday, July 25, 2025. Telephone access: https://register-conf.media-server.com/register/BI4e9784b7b6ee4a528ae8f3affe52d2ee. 

    A slide presentation relating to the second quarter 2025 results will be accessible prior to the scheduled conference call. The slide presentation and webcast of the conference call can be accessed on the Events and Presentations page of the Company’s investor relations website at https://myfw.gcs-web.com. 

    About First Western

    First Western is a financial services holding company headquartered in Denver, Colorado, with operations in Colorado, Arizona, Wyoming, California, and Montana. First Western and its subsidiaries provide a fully integrated suite of wealth management services on a private trust bank platform, which includes a comprehensive selection of deposit, loan, trust, wealth planning and investment management products and services. First Western’s common stock is traded on the Nasdaq Global Select Market under the symbol “MYFW.” For more information, please visit www.myfw.com. 

    Non-GAAP Financial Measures

    Some of the financial measures included in this press release are not measures of financial performance recognized in accordance with generally accepted accounting principles in the United States (“GAAP”). These non-GAAP financial measures include “Tangible Common Equity,” “Tangible Common Book Value per Share,” “Return on Tangible Common Equity,” “Efficiency Ratio,” and “Gross Revenue”. The Company believes these non-GAAP financial measures provide both management and investors a more complete understanding of the Company’s financial position and performance. These non-GAAP financial measures are supplemental and are not a substitute for any analysis based on GAAP financial measures. Not all companies use the same calculation of these measures; therefore, this presentation may not be comparable to other similarly titled measures as presented by other companies. Reconciliation of non-GAAP financial measures to GAAP financial measures are provided at the end of this press release.

    Forward-Looking Statements

    Statements in this news release regarding our expectations and beliefs about our future financial performance and financial condition, as well as trends in our business and markets are “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements often include words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “project,” “position,” “outlook,” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “opportunity,” “could,” or “may.” The forward-looking statements in this news release are based on current information and on assumptions that we make about future events and circumstances that are subject to a number of risks and uncertainties that are often difficult to predict and beyond our control. As a result of those risks and uncertainties, our actual financial results in the future could differ, possibly materially, from those expressed in or implied by the forward-looking statements contained in this news release and could cause us to make changes to our future plans. Those risks and uncertainties include, without limitation, the risk of geographic concentration in Colorado, Arizona, Wyoming, California, and Montana; the risk of changes in the economy affecting real estate values and liquidity; the risk in our ability to continue to originate residential real estate loans and sell such loans; risks specific to commercial loans and borrowers; the risk of claims and litigation pertaining to our fiduciary responsibilities; the risk of changes in interest rates could reduce our net interest margins and net interest income; increased credit risk, including as a result of deterioration in economic conditions, could require us to increase our allowance for credit losses and could have a material adverse effect on our results of operations and financial condition; the risk in our ability to maintain a strong core deposit base or other low-cost funding sources. Additional information regarding these and other risks and uncertainties to which our business and future financial performance are subject is contained in our Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (“SEC”) on March 7, 2025 (“Form 10-K”), and other documents we file with the SEC from time to time. We urge readers of this news release to review the “Risk Factors” section our Form 10-K and any updates to those risk factors set forth in our subsequent Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and our other filings with the SEC. Also, our actual financial results in the future may differ from those currently expected due to additional risks and uncertainties of which we are not currently aware or which we do not currently view as, but in the future may become, material to our business or operating results. Due to these and other possible uncertainties and risks, readers are cautioned not to place undue reliance on the forward-looking statements contained in this news release, which speak only as of today’s date, or to make predictions based solely on historical financial performance. Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.

    Contacts:
    Financial Profiles, Inc.
    Tony Rossi
    310-622-8221
    MYFW@finprofiles.com 
    IR@myfw.com 

    First Western Financial, Inc.
    Condensed Consolidated Statements of Income (unaudited)
     
      Three Months Ended
      June 30,   March 31,   June 30,
    (dollars in thousands, except per share amounts)   2025     2025     2024  
    Interest and dividend income:          
    Loans, including fees $ 35,085   $ 34,068   $ 35,275  
    Loans accounted for under the fair value option   85     111     168  
    Investment securities   819     681     651  
    Interest-bearing deposits in other financial institutions   1,356     2,221     1,855  
    Dividends, restricted stock   155     128     105  
    Total interest and dividend income   37,500     37,209     38,054  
               
    Interest expense:          
    Deposits   18,208     18,516     20,848  
    Other borrowed funds   1,408     1,240     1,428  
    Total interest expense   19,616     19,756     22,276  
    Net interest income   17,884     17,453     15,778  
    Less: Provision for credit losses   1,773     80     2,334  
    Net interest income, after provision for credit losses   16,111     17,373     13,444  
               
    Non-interest income:          
    Trust and investment management fees   4,512     4,677     4,875  
    Net gain on mortgage loans   1,187     1,067     1,820  
    Net gain on loans held for sale   —     222     —  
    Bank fees   293     422     327  
    Risk management and insurance fees   47     259     109  
    Income on company-owned life insurance   112     110     106  
    Net gain (loss) on loans accounted for under the fair value option   26     6     (315 )
    Net gain on other real estate owned   —     459     —  
    Unrealized gain (loss) recognized on equity securities   3     11     (2 )
    Other   125     112     52  
    Total non-interest income   6,305     7,345     6,972  
    Total income before non-interest expense   22,416     24,718     20,416  
               
    Non-interest expense:          
    Salaries and employee benefits   11,019     11,480     11,097  
    Occupancy and equipment   2,224     2,210     2,080  
    Professional services   1,855     1,704     1,826  
    Technology and information systems   1,030     1,078     1,042  
    Data processing   1,166     1,122     1,101  
    Marketing   267     216     243  
    Amortization of other intangible assets   52     51     56  
    Other   1,486     1,500     1,556  
    Total non-interest expense   19,099     19,361     19,001  
    Income before income taxes   3,317     5,357     1,415  
    Income tax expense   814     1,172     339  
    Net income available to common shareholders $ 2,503   $ 4,185   $ 1,076  
    Earnings per common share:          
    Basic $ 0.26   $ 0.43   $ 0.11  
    Diluted   0.26     0.43     0.11  
    First Western Financial, Inc.
    Condensed Consolidated Balance Sheets (unaudited)
               
      June 30,   March 31,   June 30,
    (dollars in thousands)   2025       2025       2024  
    Assets          
    Cash and cash equivalents:          
    Cash and due from banks $ 12,353     $ 15,924     $ 6,374  
    Interest-bearing deposits in other financial institutions   219,961       255,658       239,425  
    Total cash and cash equivalents   232,314       271,582       245,799  
               
    Held-to-maturity debt securities (fair value of $93,979, $67,479 and $71,067, respectively), net of allowance for credit losses of $71   99,825       73,775       78,927  
    Correspondent bank stock, at cost   11,254       5,968       10,804  
    Mortgage loans held for sale, at fair value   24,151       10,557       26,856  
    Loans (includes $5,099, $6,112, and $10,190 measured at fair value, respectively)   2,540,096       2,425,367       2,456,063  
    Allowance for credit losses   (18,994 )     (17,956 )     (27,319 )
    Loans, net   2,521,102       2,407,411       2,428,744  
    Premises and equipment, net   24,488       24,554       24,657  
    Accrued interest receivable   10,783       10,623       11,339  
    Accounts receivable   4,435       4,505       5,118  
    Other receivables   4,915       4,608       4,875  
    Other real estate owned, net   4,385       4,385       11,421  
    Goodwill and other intangible assets, net   31,524       31,576       31,741  
    Deferred tax assets, net   2,809       2,856       6,123  
    Company-owned life insurance   17,184       17,071       16,741  
    Other assets   37,628       36,829       34,410  
    Total assets $ 3,026,797     $ 2,906,300     $ 2,937,555  
               
    Liabilities          
    Deposits:          
    Noninterest-bearing $ 361,656     $ 409,696     $ 396,702  
    Interest-bearing   2,167,473       2,105,701       2,014,190  
    Total deposits   2,529,129       2,515,397       2,410,892  
    Borrowings:          
    Federal Home Loan Bank and Federal Reserve borrowings   163,416       51,612       191,505  
    Subordinated notes   44,673       44,621       52,451  
    Accrued interest payable   1,406       2,371       2,243  
    Other liabilities   29,326       35,744       33,589  
    Total liabilities   2,767,950       2,649,745       2,690,680  
               
    Shareholders’ Equity          
    Total shareholders’ equity   258,847       256,555       246,875  
    Total liabilities and shareholders’ equity $ 3,026,797     $ 2,906,300     $ 2,937,555  
                           
    First Western Financial, Inc.
    Consolidated Financial Summary (unaudited)
               
      June 30,   March 31,   June 30,
    (dollars in thousands)   2025       2025       2024  
    Loan Portfolio          
    Cash, Securities, and Other $ 161,725     $ 101,078     $ 143,720  
    Consumer and Other   15,778       16,688       15,645  
    Construction and Development   255,870       291,133       309,146  
    1-4 Family Residential   1,012,662       971,179       904,569  
    Non-Owner Occupied CRE   655,954       636,820       609,790  
    Owner Occupied CRE   196,692       182,417       189,353  
    Commercial and Industrial   239,278       223,197       277,973  
    Total   2,537,959       2,422,512       2,450,196  
    Loans accounted for under the fair value option   5,235       6,280       10,494  
    Total loans held for investment   2,543,194       2,428,792       2,460,690  
    Deferred (fees) costs and unamortized premiums/(unaccreted discounts), net(1)   (3,098 )     (3,425 )     (4,627 )
    Loans (includes $5,099, $6,112, and $10,190 measured at fair value, respectively) $ 2,540,096     $ 2,425,367     $ 2,456,063  
    Mortgage loans held for sale   24,151       10,557       26,856  
               
    Deposit Portfolio          
    Money market deposit accounts $ 1,632,997     $ 1,566,737     $ 1,342,753  
    Time deposits   397,006       379,533       519,597  
    Interest checking accounts   123,967       144,980       135,759  
    Savings accounts   13,503       14,451       16,081  
    Total interest-bearing deposits   2,167,473       2,105,701       2,014,190  
    Noninterest-bearing accounts   361,656       409,696       396,702  
    Total deposits $ 2,529,129     $ 2,515,397     $ 2,410,892  

    ____________________
    (1) Includes fair value adjustments on loans held for investment accounted for under the fair value option.

    First Western Financial, Inc.
    Consolidated Financial Summary (unaudited) (continued)
     
      As of or for the Three Months Ended
      June 30,   March 31,   June 30,
    (dollars in thousands)   2025       2025       2024  
    Average Balance Sheets          
    Assets          
    Interest-earning assets:          
    Interest-bearing deposits in other financial institutions $ 121,950     $ 198,294     $ 141,600  
    Debt securities   85,739       75,592       75,461  
    Correspondent bank stock   7,199       5,806       4,801  
    Gross loans   2,443,758       2,407,482       2,443,937  
    Mortgage loans held for sale   18,803       13,593       20,254  
    Loans held at fair value   5,690       6,846       11,314  
    Total interest-earning assets   2,683,139       2,707,613       2,697,367  
    Noninterest-earning assets   126,397       145,479       119,247  
    Total assets $ 2,809,536     $ 2,853,092     $ 2,816,614  
               
    Liabilities and Shareholders’ Equity          
    Interest-bearing liabilities:          
    Interest-bearing deposits $ 2,047,570     $ 2,090,505     $ 2,001,691  
    FHLB and Federal Reserve borrowings   75,362       51,885       67,196  
    Subordinated notes   44,639       52,495       52,414  
    Total interest-bearing liabilities   2,167,571       2,194,885       2,121,301  
    Noninterest-bearing liabilities:          
    Noninterest-bearing deposits   352,391       363,922       412,741  
    Other liabilities   32,794       41,656       34,051  
    Total noninterest-bearing liabilities   385,185       405,578       446,792  
    Total shareholders’ equity   256,780       252,629       248,521  
    Total liabilities and shareholders’ equity $ 2,809,536     $ 2,853,092     $ 2,816,614  
               
    Yields/Cost of funds (annualized)          
    Interest-bearing deposits in other financial institutions   4.46 %     4.54 %     5.27 %
    Debt securities   3.83       3.65       3.47  
    Correspondent bank stock   8.64       8.94       8.80  
    Loans   5.71       5.71       5.75  
    Loan held at fair value   5.99       6.58       5.97  
    Mortgage loans held for sale   6.61       5.46       6.83  
    Total interest-earning assets   5.61       5.57       5.67  
    Interest-bearing deposits   3.57       3.59       4.19  
    Total deposits   3.04       3.06       3.47  
    FHLB and Federal Reserve borrowings   4.14       3.92       4.14  
    Subordinated notes   5.66       5.70       5.66  
    Total interest-bearing liabilities   3.63       3.65       4.22  
    Net interest margin   2.67       2.61       2.35  
    Net interest rate spread   1.98       1.92       1.45  
    First Western Financial, Inc.
    Consolidated Financial Summary (unaudited) (continued)
       
      As of or for the Three Months Ended
      June 30,   March 31,   June 30,
    (dollars in thousands, except share and per share amounts)   2025       2025       2024  
    Asset Quality          
    Non-performing loans $ 14,394     $ 12,758     $ 37,909  
    Non-performing assets   18,779       17,143       49,330  
    Net charge-offs (recoveries)   657       566       (9 )
    Non-performing loans to total loans   0.57 %     0.53 %     1.54 %
    Non-performing assets to total assets   0.62       0.59       1.68  
    Allowance for credit losses to non-performing loans   131.96       140.74       72.06  
    Allowance for credit losses to total loans   0.75       0.74       1.11  
    Net charge-offs to average loans   0.03       0.02     *
               
    Assets Under Management $ 7,497,361     $ 7,176,624     $ 7,011,796  
               
    Market Data          
    Book value per share at period end $ 26.64     $ 26.44     $ 25.55  
    Tangible book value per common share(1)   23.39       23.18       22.27  
    Weighted average outstanding shares, basic   9,707,924       9,704,419       9,647,345  
    Weighted average outstanding shares, diluted   9,809,321       9,798,591       9,750,667  
    Shares outstanding at period end   9,717,922       9,704,320       9,660,549  
               
    Consolidated Capital          
    Tier 1 capital to risk-weighted assets   9.96 %     10.35 %     9.92 %
    CET1 to risk-weighted assets   9.96       10.35       9.92  
    Total capital to risk-weighted assets   12.67       13.15       13.44  
    Tier 1 capital to average assets   8.31       8.12       7.91  
               
    Bank Capital          
    Tier 1 capital to risk-weighted assets   11.36 %     11.76 %     11.22 %
    CET1 to risk-weighted assets   11.36       11.76       11.22  
    Total capital to risk-weighted assets   12.13       12.52       12.35  
    Tier 1 capital to average assets   9.49       9.24       8.95  

    ____________________
    (1) Represents a Non-GAAP financial measure. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of our Non-GAAP measures to the most directly comparable GAAP financial measure.

    First Western Financial, Inc.
    Consolidated Financial Summary (unaudited) (continued)

    Reconciliations of Non-GAAP Financial Measures

      As of or for the Three Months Ended
      June 30,   March 31,   June 30,
    (dollars in thousands, except share and per share amounts)   2025       2025       2024  
    Tangible Common          
    Total shareholders’ equity $ 258,847     $ 256,555     $ 246,875  
    Less: goodwill and other intangibles, net   31,524       31,576       31,741  
    Tangible common equity $ 227,323     $ 224,979     $ 215,134  
               
    Common shares outstanding, end of period   9,717,922       9,704,320       9,660,549  
    Tangible common book value per share $ 23.39     $ 23.18     $ 22.27  
    Net income available to common shareholders   2,503       4,185       1,076  
    Return on tangible common equity (annualized)   4.40 %     7.44 %     2.00 %
               
    Efficiency          
    Non-interest expense $ 19,099     $ 19,361     $ 19,001  
    Less: OREO expenses and write-downs   53       (80 )     29  
    Adjusted non-interest expense $ 19,046     $ 19,441     $ 18,972  
               
    Total income before non-interest expense $ 22,416     $ 24,718     $ 20,416  
    Less: unrealized gain (loss) recognized on equity securities   3       11       (2 )
    Less: net gain (loss) on loans accounted for under the fair value option   26       6       (315 )
    Less: net gain on loans held for sale   —       222       —  
    Plus: provision for credit losses   1,773       80       2,334  
    Gross revenue $ 24,160     $ 24,559     $ 23,067  
    Efficiency ratio   78.83 %     79.16 %     82.25 %

    The MIL Network –

  • MIL-OSI: First Western Reports Second Quarter 2025 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    Second Quarter 2025 Summary

    • Total loans increased $115 million, or 4.7%, from $2.43 billion as of Q1 2025 to $2.54 billion as of Q2 2025
    • Net interest margin increased 6 basis points from 2.61% in Q1 2025 to 2.67% in Q2 2025
    • Net interest income increased $0.4 million from $17.5 million in Q1 2025 to $17.9 million in Q2 2025
    • Non-interest expense decreased $0.3 million from $19.4 million in Q1 2025 to $19.1 million in Q2 2025
    • Net income available to common shareholders of $2.5 million, or $0.26 per diluted share, in Q2 2025

    DENVER, July 24, 2025 (GLOBE NEWSWIRE) — First Western Financial, Inc. (“First Western” or the “Company”) (NASDAQ: MYFW), today reported financial results for the second quarter ended June 30, 2025.

    Net income available to common shareholders was $2.5 million, or $0.26 per diluted share, for the second quarter of 2025. This compares to net income of $4.2 million, or $0.43 per diluted share, for the first quarter of 2025, and net income of $1.1 million, or $0.11 per diluted share, for the second quarter of 2024.

    Scott C. Wylie, CEO of First Western, commented, “We executed well in the second quarter and saw positive trends in many areas including loan and deposit growth, an expansion in our net interest margin, well managed expenses, and stable asset quality. We were able to redeploy the cash from the sale of our two largest OREO properties into loan production and securities purchases, which positively impacted our net interest margin. While maintaining our disciplined underwriting and pricing criteria, we had a very strong quarter of loan production, which was well diversified across our markets and loan portfolios. Our strong loan production reflects the healthy economic conditions we continue to see across our markets, as well as the contribution of banking talent we have added over the past few years.

    “Our loan and deposit pipelines remain healthy and we expect to see solid balance sheet growth over the second half of the year, along with continued expansion in our net interest margin while we continue to maintain tight expense control. We believe this will continue to result in solid financial performance for our shareholders as we move through the year,” said Mr. Wylie.

      For the Three Months Ended
      June 30,   March 31,   June 30,
    (Dollars in thousands, except per share data)   2025       2025       2024  
    Earnings Summary          
    Net interest income $ 17,884     $ 17,453     $ 15,778  
    Provision for credit losses   1,773       80       2,334  
    Total non-interest income   6,305       7,345       6,972  
    Total non-interest expense   19,099       19,361       19,001  
    Income before income taxes   3,317       5,357       1,415  
    Income tax expense   814       1,172       339  
    Net income available to common shareholders   2,503       4,185       1,076  
    Basic earnings per common share   0.26       0.43       0.11  
    Diluted earnings per common share   0.26       0.43       0.11  
               
    Return on average assets (annualized)   0.36 %     0.59 %     0.15 %
    Return on average shareholders’ equity (annualized)   3.90       6.63       1.73  
    Return on tangible common equity (annualized)(1)   4.40       7.44       2.00  
    Net interest margin   2.67       2.61       2.35  
    Efficiency ratio(1)   78.83       79.16       82.25  

    ____________________

    (1) Represents a Non-GAAP financial measure. See “Reconciliations of Non-GAAP Financial Measures” for a reconciliation of our Non-GAAP measures to the most directly comparable GAAP financial measure.

    Operating Results for the Second Quarter 2025

    Revenue

    Total income before non-interest expense was $22.4 million for the second quarter of 2025, a decrease of 9.3% from $24.7 million for the first quarter of 2025. Gross revenue(1) was $24.2 million for the second quarter of 2025, a decrease of 1.6% from $24.6 million for the first quarter of 2025. Relative to the first quarter of 2025, the decrease in total income before non-interest expense was primarily driven by an increase in the Provision for credit losses and decreases in Net gain on loans held for sale and Net gain on other real estate owned, partially offset by an increase in Net interest income. Relative to the second quarter of 2024, total income before non-interest expense increased 9.8% from $20.4 million and Gross revenue increased 4.8% from $23.1 million. Relative to the second quarter of 2024, the increase in total income before non-interest expense was primarily driven by an increase in Net interest income and decrease in the Provision for credit losses, partially offset by a decrease in Net gain on mortgage loans.

    (1) Represents a Non-GAAP financial measure. See “Reconciliations of Non-GAAP Financial Measures” for a reconciliation of our Non-GAAP measures to the most directly comparable GAAP financial measure.

    Net Interest Margin

    Net interest margin for the second quarter of 2025 increased 6 basis points to 2.67% from 2.61% reported in the first quarter of 2025, primarily due to a decrease in cost of deposits and increase in interest-earning assets yield. The decrease in cost of deposits was primarily due to lower rates on time deposits and the increase in interest-earning assets yield was primarily due to an improved mix in average interest-earning asset balances.

    The yield on interest-earning assets increased 4 basis points to 5.61% from 5.57% reported in the first quarter of 2025 and the cost of interest-bearing liabilities decreased 2 basis points to 3.63% from 3.65% reported in the first quarter of 2025.

    Relative to the second quarter of 2024, net interest margin increased 32 basis points from 2.35%, primarily due to a 42 basis point decrease in total cost of funds as a result of the lower interest rate environment.

    Net Interest Income

    Net interest income for the second quarter of 2025 was $17.9 million, an increase of 2.3% from $17.5 million for the first quarter of 2025. The increase quarter over quarter was primarily driven by a 6 basis point increase in net interest margin, offset partially by a decline in average interest-earning assets. Relative to the second quarter of 2024, net interest income increased 13.3% from $15.8 million. The increase compared to the second quarter of 2024 was primarily driven by a 32 basis point increase in net interest margin, offset partially by a decline in average interest-earnings assets.

    Non-interest Income

    Non-interest income for the second quarter of 2025 was $6.3 million, a decrease of 13.7% from $7.3 million in the first quarter of 2025. The decrease was driven primarily by decreases in Net gain on other real estate owned, Net gain on loans held for sale, and Risk management and insurance fees, partially offset by an increase in Net gain on mortgage loans due to an increase in origination volume. The first quarter of 2025 included a Net gain on other real estate of $0.5 million due to the sale of our two largest OREO properties as well as a Net gain on loans held for sale of $0.2 million due to the reversal of a previous quarter’s write-down on a non-performing loan.

    Relative to the second quarter of 2024, non-interest income decreased $0.7 million, driven primarily by a decrease in Net gain on mortgage loans due to a decrease in origination volume.

    Non-interest Expense

    Non-interest expense for the second quarter of 2025 was $19.1 million, a decrease of 1.5% from $19.4 million in the first quarter of 2025. The decrease was primarily driven by a decrease in Salaries and employee benefits due to the seasonality of payroll taxes, partially offset by an increase in Professional services.

    Relative to the second quarter of 2024, non-interest expense increased 0.5% from $19.0 million, driven primarily by an increase in Occupancy and equipment expenses, partially offset by a decrease in Salaries and employee benefits.

    The Company’s efficiency ratio(1) was 78.8% in the second quarter of 2025, compared with 79.2% in the first quarter of 2025 and 82.3% in the second quarter of 2024.

    (1) Represents a Non-GAAP financial measure. See “Reconciliations of Non-GAAP Financial Measures” for a reconciliation of our Non-GAAP measures to the most directly comparable GAAP financial measure.

    Income Taxes

    The Company recorded Income tax expense of $0.8 million for the second quarter of 2025, compared to $1.2 million for the first quarter of 2025, and $0.3 million for the second quarter of 2024.

    Loans

    Total loans held for investment were $2.54 billion as of June 30, 2025, an increase of $115 million or 4.7% compared to March 31, 2025. Changes in the quarter included net growth in the Cash, securities, and other and 1-4 family residential portfolios, partially offset by a net decrease in the Construction and development portfolio. Relative to the second quarter of 2024, total loans held for investment increased from $2.46 billion as of June 30, 2024, primarily driven by net growth in the 1-4 family residential and Non-owner occupied commercial real estate portfolios, partially offset by net decreases in the Construction and development and Commercial and industrial portfolios.

    Deposits

    Total deposits were $2.53 billion as of June 30, 2025, an increase of 0.4% from $2.52 billion as of March 31, 2025. Relative to the second quarter of 2024, total deposits increased from $2.41 billion as of June 30, 2024, driven primarily by an increase in Interest-bearing deposits.

    Borrowings

    Federal Home Loan Bank (“FHLB”) and Federal Reserve borrowings were a combined $163.4 million as of June 30, 2025, an increase of $111.8 million from $51.6 million as of March 31, 2025. The change when compared to March 31, 2025 was primarily driven by net draws on the Company’s FHLB line of credit as a result of interest-earning asset growth during the quarter. Relative to the second quarter of 2024, borrowings decreased $28.1 million from $191.5 million as of June 30, 2024. The decrease in borrowings from June 30, 2024 was primarily driven by Bank Term Funding Program (“BTFP”) payoffs and net pay downs on the Company’s FHLB line of credit as a result of deposit growth.

    Subordinated notes were $44.7 million as of June 30, 2025, compared to $44.6 million as of March 31, 2025. Subordinated notes decreased $7.8 million from $52.5 million as of June 30, 2024. Relative to the second quarter of 2024, the decrease was primarily due to the redemption of $8.0 million of subordinated notes that became eligible to call in the first quarter of 2025.

    Assets Under Management

    Assets Under Management (“AUM”) was $7.50 billion as of June 30, 2025, an increase of $320 million, or 4.5%, from $7.18 billion as of March 31, 2025. The increase in AUM during the quarter was primarily attributable to improving market conditions. Compared to June 30, 2024, total AUM increased 6.9% from $7.01 billion.

    Credit Quality

    Non-performing assets totaled $18.8 million, or 0.62% of Total assets, as of June 30, 2025, compared to $17.1 million, or 0.59% of total assets, as of March 31, 2025. The increase in non-performing assets during the quarter was due to additions to non-performing loans. As of June 30, 2024, non-performing assets totaled $49.3 million, or 1.68% of total assets. Relative to the second quarter of 2024, the decrease in non-performing assets was primarily driven by the sale of two OREO properties, partially offset by additions to non-performing loans. OREO totaled $4.4 million as of June 30, 2025 and March 31, 2025, a decrease of $7.0 million from $11.4 million as of June 30, 2024.

    Non-performing loans totaled $14.4 million as of June 30, 2025, an increase of $1.6 million from $12.8 million as of March 31, 2025. The increase was due to the addition of one credit relationship that is in active workout. This relationship is secured by a residential real estate asset, business assets, and a personal guarantee. As of June 30, 2024, non-performing loans totaled $37.9 million. The decrease when compared to June 30, 2024 was driven by the migration of one loan relationship out of non-performing loans and into OREO, partially offset by additions to non-performing loans.

    During the second quarter of 2025, the Company recorded provision expense of $1.8 million, compared to $0.1 million in the first quarter of 2025 and $2.3 million in the second quarter of 2024. The increase in provision expense recorded in the second quarter of 2025 compared to the first quarter of 2025 was primarily driven by loan growth and charge-offs.

    Capital

    As of June 30, 2025, First Western (“Consolidated”) and First Western Trust Bank (“Bank”) exceeded the minimum capital levels required by their respective regulators. As of June 30, 2025, the Bank was classified as “well capitalized,” as summarized in the following table:

      June 30,
      2025
    Consolidated Capital  
    Tier 1 capital to risk-weighted assets 9.96 %
    Common Equity Tier 1 (“CET1”) to risk-weighted assets 9.96  
    Total capital to risk-weighted assets 12.67  
    Tier 1 capital to average assets 8.31  
       
    Bank Capital  
    Tier 1 capital to risk-weighted assets 11.36 %
    CET1 to risk-weighted assets 11.36  
    Total capital to risk-weighted assets 12.13  
    Tier 1 capital to average assets 9.49  

    Book value per common share increased 0.8% from $26.44 as of March 31, 2025 to $26.64 as of June 30, 2025. Book value per common share increased 4.3% from $25.55 as of June 30, 2024.

    Tangible book value per common share(1) increased 0.9% from $23.18 as of March 31, 2025, to $23.39 as of June 30, 2025. Tangible book value per common share increased 5.0% from $22.27 as of June 30, 2024.

    During the three months ended June 30, 2025, the Company repurchased 26,287 shares for $0.5 million.

    (1) Represents a Non-GAAP financial measure. See “Reconciliations of Non-GAAP Financial Measures” for a reconciliation of our Non-GAAP measures to the most directly comparable GAAP financial measure.

    Conference Call, Webcast and Slide Presentation

    The Company will host a conference call and webcast at 10:00 a.m. MT/ 12:00 p.m. ET on Friday, July 25, 2025. Telephone access: https://register-conf.media-server.com/register/BI4e9784b7b6ee4a528ae8f3affe52d2ee. 

    A slide presentation relating to the second quarter 2025 results will be accessible prior to the scheduled conference call. The slide presentation and webcast of the conference call can be accessed on the Events and Presentations page of the Company’s investor relations website at https://myfw.gcs-web.com. 

    About First Western

    First Western is a financial services holding company headquartered in Denver, Colorado, with operations in Colorado, Arizona, Wyoming, California, and Montana. First Western and its subsidiaries provide a fully integrated suite of wealth management services on a private trust bank platform, which includes a comprehensive selection of deposit, loan, trust, wealth planning and investment management products and services. First Western’s common stock is traded on the Nasdaq Global Select Market under the symbol “MYFW.” For more information, please visit www.myfw.com. 

    Non-GAAP Financial Measures

    Some of the financial measures included in this press release are not measures of financial performance recognized in accordance with generally accepted accounting principles in the United States (“GAAP”). These non-GAAP financial measures include “Tangible Common Equity,” “Tangible Common Book Value per Share,” “Return on Tangible Common Equity,” “Efficiency Ratio,” and “Gross Revenue”. The Company believes these non-GAAP financial measures provide both management and investors a more complete understanding of the Company’s financial position and performance. These non-GAAP financial measures are supplemental and are not a substitute for any analysis based on GAAP financial measures. Not all companies use the same calculation of these measures; therefore, this presentation may not be comparable to other similarly titled measures as presented by other companies. Reconciliation of non-GAAP financial measures to GAAP financial measures are provided at the end of this press release.

    Forward-Looking Statements

    Statements in this news release regarding our expectations and beliefs about our future financial performance and financial condition, as well as trends in our business and markets are “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements often include words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “project,” “position,” “outlook,” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “opportunity,” “could,” or “may.” The forward-looking statements in this news release are based on current information and on assumptions that we make about future events and circumstances that are subject to a number of risks and uncertainties that are often difficult to predict and beyond our control. As a result of those risks and uncertainties, our actual financial results in the future could differ, possibly materially, from those expressed in or implied by the forward-looking statements contained in this news release and could cause us to make changes to our future plans. Those risks and uncertainties include, without limitation, the risk of geographic concentration in Colorado, Arizona, Wyoming, California, and Montana; the risk of changes in the economy affecting real estate values and liquidity; the risk in our ability to continue to originate residential real estate loans and sell such loans; risks specific to commercial loans and borrowers; the risk of claims and litigation pertaining to our fiduciary responsibilities; the risk of changes in interest rates could reduce our net interest margins and net interest income; increased credit risk, including as a result of deterioration in economic conditions, could require us to increase our allowance for credit losses and could have a material adverse effect on our results of operations and financial condition; the risk in our ability to maintain a strong core deposit base or other low-cost funding sources. Additional information regarding these and other risks and uncertainties to which our business and future financial performance are subject is contained in our Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (“SEC”) on March 7, 2025 (“Form 10-K”), and other documents we file with the SEC from time to time. We urge readers of this news release to review the “Risk Factors” section our Form 10-K and any updates to those risk factors set forth in our subsequent Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and our other filings with the SEC. Also, our actual financial results in the future may differ from those currently expected due to additional risks and uncertainties of which we are not currently aware or which we do not currently view as, but in the future may become, material to our business or operating results. Due to these and other possible uncertainties and risks, readers are cautioned not to place undue reliance on the forward-looking statements contained in this news release, which speak only as of today’s date, or to make predictions based solely on historical financial performance. Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.

    Contacts:
    Financial Profiles, Inc.
    Tony Rossi
    310-622-8221
    MYFW@finprofiles.com 
    IR@myfw.com 

    First Western Financial, Inc.
    Condensed Consolidated Statements of Income (unaudited)
     
      Three Months Ended
      June 30,   March 31,   June 30,
    (dollars in thousands, except per share amounts)   2025     2025     2024  
    Interest and dividend income:          
    Loans, including fees $ 35,085   $ 34,068   $ 35,275  
    Loans accounted for under the fair value option   85     111     168  
    Investment securities   819     681     651  
    Interest-bearing deposits in other financial institutions   1,356     2,221     1,855  
    Dividends, restricted stock   155     128     105  
    Total interest and dividend income   37,500     37,209     38,054  
               
    Interest expense:          
    Deposits   18,208     18,516     20,848  
    Other borrowed funds   1,408     1,240     1,428  
    Total interest expense   19,616     19,756     22,276  
    Net interest income   17,884     17,453     15,778  
    Less: Provision for credit losses   1,773     80     2,334  
    Net interest income, after provision for credit losses   16,111     17,373     13,444  
               
    Non-interest income:          
    Trust and investment management fees   4,512     4,677     4,875  
    Net gain on mortgage loans   1,187     1,067     1,820  
    Net gain on loans held for sale   —     222     —  
    Bank fees   293     422     327  
    Risk management and insurance fees   47     259     109  
    Income on company-owned life insurance   112     110     106  
    Net gain (loss) on loans accounted for under the fair value option   26     6     (315 )
    Net gain on other real estate owned   —     459     —  
    Unrealized gain (loss) recognized on equity securities   3     11     (2 )
    Other   125     112     52  
    Total non-interest income   6,305     7,345     6,972  
    Total income before non-interest expense   22,416     24,718     20,416  
               
    Non-interest expense:          
    Salaries and employee benefits   11,019     11,480     11,097  
    Occupancy and equipment   2,224     2,210     2,080  
    Professional services   1,855     1,704     1,826  
    Technology and information systems   1,030     1,078     1,042  
    Data processing   1,166     1,122     1,101  
    Marketing   267     216     243  
    Amortization of other intangible assets   52     51     56  
    Other   1,486     1,500     1,556  
    Total non-interest expense   19,099     19,361     19,001  
    Income before income taxes   3,317     5,357     1,415  
    Income tax expense   814     1,172     339  
    Net income available to common shareholders $ 2,503   $ 4,185   $ 1,076  
    Earnings per common share:          
    Basic $ 0.26   $ 0.43   $ 0.11  
    Diluted   0.26     0.43     0.11  
    First Western Financial, Inc.
    Condensed Consolidated Balance Sheets (unaudited)
               
      June 30,   March 31,   June 30,
    (dollars in thousands)   2025       2025       2024  
    Assets          
    Cash and cash equivalents:          
    Cash and due from banks $ 12,353     $ 15,924     $ 6,374  
    Interest-bearing deposits in other financial institutions   219,961       255,658       239,425  
    Total cash and cash equivalents   232,314       271,582       245,799  
               
    Held-to-maturity debt securities (fair value of $93,979, $67,479 and $71,067, respectively), net of allowance for credit losses of $71   99,825       73,775       78,927  
    Correspondent bank stock, at cost   11,254       5,968       10,804  
    Mortgage loans held for sale, at fair value   24,151       10,557       26,856  
    Loans (includes $5,099, $6,112, and $10,190 measured at fair value, respectively)   2,540,096       2,425,367       2,456,063  
    Allowance for credit losses   (18,994 )     (17,956 )     (27,319 )
    Loans, net   2,521,102       2,407,411       2,428,744  
    Premises and equipment, net   24,488       24,554       24,657  
    Accrued interest receivable   10,783       10,623       11,339  
    Accounts receivable   4,435       4,505       5,118  
    Other receivables   4,915       4,608       4,875  
    Other real estate owned, net   4,385       4,385       11,421  
    Goodwill and other intangible assets, net   31,524       31,576       31,741  
    Deferred tax assets, net   2,809       2,856       6,123  
    Company-owned life insurance   17,184       17,071       16,741  
    Other assets   37,628       36,829       34,410  
    Total assets $ 3,026,797     $ 2,906,300     $ 2,937,555  
               
    Liabilities          
    Deposits:          
    Noninterest-bearing $ 361,656     $ 409,696     $ 396,702  
    Interest-bearing   2,167,473       2,105,701       2,014,190  
    Total deposits   2,529,129       2,515,397       2,410,892  
    Borrowings:          
    Federal Home Loan Bank and Federal Reserve borrowings   163,416       51,612       191,505  
    Subordinated notes   44,673       44,621       52,451  
    Accrued interest payable   1,406       2,371       2,243  
    Other liabilities   29,326       35,744       33,589  
    Total liabilities   2,767,950       2,649,745       2,690,680  
               
    Shareholders’ Equity          
    Total shareholders’ equity   258,847       256,555       246,875  
    Total liabilities and shareholders’ equity $ 3,026,797     $ 2,906,300     $ 2,937,555  
                           
    First Western Financial, Inc.
    Consolidated Financial Summary (unaudited)
               
      June 30,   March 31,   June 30,
    (dollars in thousands)   2025       2025       2024  
    Loan Portfolio          
    Cash, Securities, and Other $ 161,725     $ 101,078     $ 143,720  
    Consumer and Other   15,778       16,688       15,645  
    Construction and Development   255,870       291,133       309,146  
    1-4 Family Residential   1,012,662       971,179       904,569  
    Non-Owner Occupied CRE   655,954       636,820       609,790  
    Owner Occupied CRE   196,692       182,417       189,353  
    Commercial and Industrial   239,278       223,197       277,973  
    Total   2,537,959       2,422,512       2,450,196  
    Loans accounted for under the fair value option   5,235       6,280       10,494  
    Total loans held for investment   2,543,194       2,428,792       2,460,690  
    Deferred (fees) costs and unamortized premiums/(unaccreted discounts), net(1)   (3,098 )     (3,425 )     (4,627 )
    Loans (includes $5,099, $6,112, and $10,190 measured at fair value, respectively) $ 2,540,096     $ 2,425,367     $ 2,456,063  
    Mortgage loans held for sale   24,151       10,557       26,856  
               
    Deposit Portfolio          
    Money market deposit accounts $ 1,632,997     $ 1,566,737     $ 1,342,753  
    Time deposits   397,006       379,533       519,597  
    Interest checking accounts   123,967       144,980       135,759  
    Savings accounts   13,503       14,451       16,081  
    Total interest-bearing deposits   2,167,473       2,105,701       2,014,190  
    Noninterest-bearing accounts   361,656       409,696       396,702  
    Total deposits $ 2,529,129     $ 2,515,397     $ 2,410,892  

    ____________________
    (1) Includes fair value adjustments on loans held for investment accounted for under the fair value option.

    First Western Financial, Inc.
    Consolidated Financial Summary (unaudited) (continued)
     
      As of or for the Three Months Ended
      June 30,   March 31,   June 30,
    (dollars in thousands)   2025       2025       2024  
    Average Balance Sheets          
    Assets          
    Interest-earning assets:          
    Interest-bearing deposits in other financial institutions $ 121,950     $ 198,294     $ 141,600  
    Debt securities   85,739       75,592       75,461  
    Correspondent bank stock   7,199       5,806       4,801  
    Gross loans   2,443,758       2,407,482       2,443,937  
    Mortgage loans held for sale   18,803       13,593       20,254  
    Loans held at fair value   5,690       6,846       11,314  
    Total interest-earning assets   2,683,139       2,707,613       2,697,367  
    Noninterest-earning assets   126,397       145,479       119,247  
    Total assets $ 2,809,536     $ 2,853,092     $ 2,816,614  
               
    Liabilities and Shareholders’ Equity          
    Interest-bearing liabilities:          
    Interest-bearing deposits $ 2,047,570     $ 2,090,505     $ 2,001,691  
    FHLB and Federal Reserve borrowings   75,362       51,885       67,196  
    Subordinated notes   44,639       52,495       52,414  
    Total interest-bearing liabilities   2,167,571       2,194,885       2,121,301  
    Noninterest-bearing liabilities:          
    Noninterest-bearing deposits   352,391       363,922       412,741  
    Other liabilities   32,794       41,656       34,051  
    Total noninterest-bearing liabilities   385,185       405,578       446,792  
    Total shareholders’ equity   256,780       252,629       248,521  
    Total liabilities and shareholders’ equity $ 2,809,536     $ 2,853,092     $ 2,816,614  
               
    Yields/Cost of funds (annualized)          
    Interest-bearing deposits in other financial institutions   4.46 %     4.54 %     5.27 %
    Debt securities   3.83       3.65       3.47  
    Correspondent bank stock   8.64       8.94       8.80  
    Loans   5.71       5.71       5.75  
    Loan held at fair value   5.99       6.58       5.97  
    Mortgage loans held for sale   6.61       5.46       6.83  
    Total interest-earning assets   5.61       5.57       5.67  
    Interest-bearing deposits   3.57       3.59       4.19  
    Total deposits   3.04       3.06       3.47  
    FHLB and Federal Reserve borrowings   4.14       3.92       4.14  
    Subordinated notes   5.66       5.70       5.66  
    Total interest-bearing liabilities   3.63       3.65       4.22  
    Net interest margin   2.67       2.61       2.35  
    Net interest rate spread   1.98       1.92       1.45  
    First Western Financial, Inc.
    Consolidated Financial Summary (unaudited) (continued)
       
      As of or for the Three Months Ended
      June 30,   March 31,   June 30,
    (dollars in thousands, except share and per share amounts)   2025       2025       2024  
    Asset Quality          
    Non-performing loans $ 14,394     $ 12,758     $ 37,909  
    Non-performing assets   18,779       17,143       49,330  
    Net charge-offs (recoveries)   657       566       (9 )
    Non-performing loans to total loans   0.57 %     0.53 %     1.54 %
    Non-performing assets to total assets   0.62       0.59       1.68  
    Allowance for credit losses to non-performing loans   131.96       140.74       72.06  
    Allowance for credit losses to total loans   0.75       0.74       1.11  
    Net charge-offs to average loans   0.03       0.02     *
               
    Assets Under Management $ 7,497,361     $ 7,176,624     $ 7,011,796  
               
    Market Data          
    Book value per share at period end $ 26.64     $ 26.44     $ 25.55  
    Tangible book value per common share(1)   23.39       23.18       22.27  
    Weighted average outstanding shares, basic   9,707,924       9,704,419       9,647,345  
    Weighted average outstanding shares, diluted   9,809,321       9,798,591       9,750,667  
    Shares outstanding at period end   9,717,922       9,704,320       9,660,549  
               
    Consolidated Capital          
    Tier 1 capital to risk-weighted assets   9.96 %     10.35 %     9.92 %
    CET1 to risk-weighted assets   9.96       10.35       9.92  
    Total capital to risk-weighted assets   12.67       13.15       13.44  
    Tier 1 capital to average assets   8.31       8.12       7.91  
               
    Bank Capital          
    Tier 1 capital to risk-weighted assets   11.36 %     11.76 %     11.22 %
    CET1 to risk-weighted assets   11.36       11.76       11.22  
    Total capital to risk-weighted assets   12.13       12.52       12.35  
    Tier 1 capital to average assets   9.49       9.24       8.95  

    ____________________
    (1) Represents a Non-GAAP financial measure. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of our Non-GAAP measures to the most directly comparable GAAP financial measure.

    First Western Financial, Inc.
    Consolidated Financial Summary (unaudited) (continued)

    Reconciliations of Non-GAAP Financial Measures

      As of or for the Three Months Ended
      June 30,   March 31,   June 30,
    (dollars in thousands, except share and per share amounts)   2025       2025       2024  
    Tangible Common          
    Total shareholders’ equity $ 258,847     $ 256,555     $ 246,875  
    Less: goodwill and other intangibles, net   31,524       31,576       31,741  
    Tangible common equity $ 227,323     $ 224,979     $ 215,134  
               
    Common shares outstanding, end of period   9,717,922       9,704,320       9,660,549  
    Tangible common book value per share $ 23.39     $ 23.18     $ 22.27  
    Net income available to common shareholders   2,503       4,185       1,076  
    Return on tangible common equity (annualized)   4.40 %     7.44 %     2.00 %
               
    Efficiency          
    Non-interest expense $ 19,099     $ 19,361     $ 19,001  
    Less: OREO expenses and write-downs   53       (80 )     29  
    Adjusted non-interest expense $ 19,046     $ 19,441     $ 18,972  
               
    Total income before non-interest expense $ 22,416     $ 24,718     $ 20,416  
    Less: unrealized gain (loss) recognized on equity securities   3       11       (2 )
    Less: net gain (loss) on loans accounted for under the fair value option   26       6       (315 )
    Less: net gain on loans held for sale   —       222       —  
    Plus: provision for credit losses   1,773       80       2,334  
    Gross revenue $ 24,160     $ 24,559     $ 23,067  
    Efficiency ratio   78.83 %     79.16 %     82.25 %

    The MIL Network –

  • MIL-OSI: Cenovus to hold second-quarter 2025 conference call and webcast on July 31

    Source: GlobeNewswire (MIL-OSI)

    CALGARY, Alberta, July 24, 2025 (GLOBE NEWSWIRE) — Cenovus Energy Inc. (TSX:CVE) (NYSE:CVE) will release its second-quarter 2025 results on Thursday, July 31, 2025. The news release will provide consolidated second-quarter operating and financial information. The company’s financial statements will be available on Cenovus’s website, cenovus.com.

    Second-quarter 2025 conference call: 9 a.m. MT (11 a.m. ET)

    For analysts wanting to join the call, please register in advance.

    To participate, you must complete the online registration form in advance of the conference call start time. Register ahead of time to receive a unique PIN to access the conference call via telephone. Once registered, participants can dial into the conference call from their telephone via the unique PIN or click on the “Call Me” option to receive an automated call directly on their telephone.

    To listen to the conference call online, a live audio webcast will also be available and archived for approximately 30 days.

    Cenovus Energy Inc.

    Cenovus Energy Inc. is an integrated energy company with oil and natural gas production operations in Canada and the Asia Pacific region, and upgrading, refining and marketing operations in Canada and the United States. The company is committed to maximizing value by developing its assets in a safe, responsible and cost-efficient manner, integrating environmental, social and governance considerations into its business plans. Cenovus common shares and warrants are listed on the Toronto and New York stock exchanges, and the company’s preferred shares are listed on the Toronto Stock Exchange. For more information, visit cenovus.com.

    Find Cenovus on Facebook, LinkedIn, YouTube and Instagram.

    Cenovus contacts:

    Investors Media
    Investor Relations general line
    403-766-7711    		 Media Relations general line
    403-766-7751

    The MIL Network –

  • MIL-OSI: Main Street Financial Services Corp. Announces Earnings for Second Quarter of 2025

    Source: GlobeNewswire (MIL-OSI)

    Business Highlights

    • Core net income (non-GAAP) for the second quarter of 2025 totaled $4.1 million, or $0.52 per common share
    • Deposit growth of $52.9 million, or 17.9% annualized, for the quarter ended June 30, 2025
    • Loan growth of $29.8 million, or 10.5% annualized, for the quarter ended June 30, 2025
    • Continued reduction of wholesale funding by $15 million during the second quarter of 2025. The wholesale funding balance decreased to $54 million, or 3.7% of assets, as of June 30, 2025.
    • Received regulatory approval to open retail branch office in St. Clairsville, Ohio, with an expected opening in Q3 2025
    • Declared cash dividend of $0.14 per share on July 11, 2025

    WOOSTER, Ohio, July 24, 2025 (GLOBE NEWSWIRE) — Main Street Financial Services Corp. (OTCQX: MSWV), (the “Company”), the holding company parent of Main Street Bank Corp. reported a net income of $3.7 million, or $0.47 per common share, for the three months ended June 30, 2025. Core net income, which excludes nonrecurring items and represents the Company’s earnings from ongoing operations, was $4.1 million, or $0.52 per common share for the three months ended June 30, 2025. Core return on average equity and core return on average assets for the second quarter of 2025 were 14.94% and 1.14%, compared to 9.56% and 0.77%, for the second quarter of 2024.

    The Company announced a merger of equals transaction with Wayne Savings Bancshares, Inc. (“Legacy Wayne”) on February 23, 2023. On May 31, 2024 (the “Merger Date”), the Company completed the transaction, forming a financial holding company with assets of $1.4 billion. On the Merger Date, Legacy Wayne merged with and into Main Street, with Main Street surviving the merger (the “Merger”). Immediately following the Merger, Main Street’s wholly owned bank subsidiary, Main Street Bank Corp., merged with and into Wayne Savings Community Bank, with Wayne Savings Community Bank surviving the merger. Upon completion of the Merger, Wayne Savings Community Bank was renamed Main Street Bank Corp.

    The Merger was accounted for as a reverse merger using the acquisition method of accounting, therefore, Legacy Wayne was deemed the acquirer for financial reporting purposes, even though Main Street was the legal acquirer. Accordingly, Legacy Wayne’s historical financial statements are the historical financial statements of the combined company for all periods before the Merger Date. Our consolidated statements of income for the quarters ended June 30, 2024 and forward, include the results from Main Street on and after May 31, 2024. Results for periods before May 31, 2024, reflect only those of Legacy Wayne and do not include the consolidated statements of income of Main Street. Accordingly, comparisons of our results for the quarter ended June 30, 2025, with those of prior periods may not be meaningful. The number of shares issued and outstanding, earnings per share, dividends paid and all references to share quantities of Main Street have been retrospectively adjusted to reflect the equivalent number of shares issued in the Merger.

    Mark Witmer, Chairman, President and CEO commented “Our core earnings this quarter highlight the strength of our banking franchise and the continued confidence of our customers. We remain focused on relationship-driven banking, disciplined risk management, and delivering long-term value to our shareholders.”

    Second Quarter 2025 Financial Results

    Net interest income was $12.5 million for the quarter ended June 30, 2025, an increase of 95% from $6.4 million for the quarter ended June 30, 2024. The net interest margin of 3.68% for the second quarter of 2025 increased 99 basis points from 2.69% for the second quarter of 2024. Loan yields were 6.48% for the quarter ended June 30, 2025, an increase of 70 basis points when compared to 5.78% for the quarter ended June 30, 2024. During the second quarter of 2025, $51.6 million of the existing loan portfolio repriced and the bank funded $78.1 million in term loans and lines of credit at current market rates. Investment yields increased 176 basis points to 4.02% as of June 30, 2025, compared to the quarter ended June 30, 2024. The cost of funds for the second quarter of 2025 was 2.53%, a decrease of 16 basis points when compared to the second quarter of 2024. The cost of funds is impacted by the acquisition of new deposit accounts in the local market at rates lower than wholesale funding, such as FHLB advances. The cost of deposits was 2.37% for the quarter ended June 30, 2025, a 13 basis point increase when compared to 2.24% for the quarter ended June 30, 2024. The cost of borrowings for the quarter ended June 30, 2025 totaled 4.84%, a decrease of 109 basis points when compared to the quarter ended June 30, 2024.

    A provision for credit losses and unfunded commitments of $374,000 was recorded for the quarter ended June 30, 2025. During the quarter, the Company recognized $148,000 in charge-offs and $114,000 in recoveries, reflecting relatively stable asset quality.

    Noninterest income totaled $0.9 million for the quarter ended June 30, 2025, an increase of $190,000, or 26.5%, when compared to the quarter ended June 30, 2024. The increase in noninterest income is primarily attributed to interchange fees and service charges generated from the acquired deposit accounts.

    Noninterest expense totaled $8.3 million for the quarter ended June 30, 2025, an increase of $1.6 million when compared to the quarter ended June 30, 2024. The increase reflects a full quarter of combined expenses after the merger. The Company incurred approximately $0.5 million in one-time termination expenses. These costs are nonrecurring in nature and are not indicative of ongoing operational trends. No further expenses related to this matter are anticipated.

    Provision for income taxes for the quarter ended June 30, 2025, was $1.0 million, reflecting an effective tax rate of 21%.

    June 30, 2025 Financial Condition

    At June 30, 2025, the Company had total assets of $1.45 billion with net loan balances totaling $1.16 billion. Loan balances grew by $29.8 million, or 17.9% annualized, during the second quarter of 2025. The increase is primarily attributed to $33.6 million growth in the commercial loan portfolio.

    The allowance for credit losses was $12.4 million at June 30, 2025, compared to $11.8 million at December 31, 2024. The allowance for credit losses as a percent of total loans was 1.06% for June 30, 2025 and 1.05% for December 31, 2024. The allowance for credit losses and the related provision for credit losses is based on management’s judgment and evaluation of the loan portfolio. Management believes the current allowance for credit losses is adequate, however, changing economic and other conditions may require future adjustments to the allowance for credit losses.

    Total nonperforming loans (NPLs) was $4.7 million at June 30, 2025, a decrease from $6.1 million at December 31, 2024. The NPL to net loan receivable ratio was 0.41% as of June 30, 2025. Past due loan balances of 30 days and more decreased from $13.8 million at December 31, 2024, to $5.9 million, or 0.51% of net loans outstanding, at June 30, 2025.

    Improvement in Asset Quality Since Merger Announcement: The combined level of classified loans for Legacy Wayne and Main Street was $24.4 million as of December 31, 2022. Since the merger announcement on February 23, 2023, the management teams of both Main Street and Wayne invested a great deal of time ensuring our combined organization utilizes strong underwriting standards and proactively monitors credit quality. Main Street sold approximately $15.2 million of loans in August 2023 and April 2024, of which approximately $12.7 million were classified loans. As of June 30, 2025, the resultant Company has $11.3 million of classified loans.

    Total liabilities was $1.33 billion at June 30, 2025 with deposits totaling $1.24 billion and wholesale funding totaling $54.0 million. Deposits grew by $52.9 million, or 17.9% annualized, during the second quarter of 2025, mainly attributed to growth from Maximize Money Market accounts and the Short-Term Relationship Certificates of Deposits. The Company primarily utilizes FHLB advances as the primary source of wholesale funding due to their accessibility and alignment with prevailing market rates. During the second quarter of 2025, the Company reduced the reliance on FHLB advances by $10 million.

    Total stockholders’ equity was $116.6 million at June 30, 2025, an increase of $5.9 million when compared to the December 31, 2024 balance. Total stockholders’ equity increased during the second quarter of 2025 primarily from net income of $3.7 million, partially offset by dividends of $1.1 million and a decrease in accumulated other comprehensive income of $1.0 million.

    Main Street Financial Services Corp. is a holding company headquartered in Wooster, Ohio. Its primary subsidiary, Main Street Bank Corp. was founded in 1899 and provides full-service banking, commercial lending, and mortgage services across its branch infrastructure. Today, Main Street Bank Corp. operates 19 branch locations in Wooster, Ohio, Wheeling, West Virginia and other surrounding communities in Ohio and West Virginia. Additional information about Main Street Bank Corp. is available at www.mymainstreetbank.bank.

    Non-GAAP Disclosure
    This press release includes disclosures of the Company’s return on average equity, return on average assets, net income, and efficiency ratios which exclude amounts the Company views as unrelated to its normalized operations, including securities gains/losses, acquisition costs, restructuring costs, legal settlements, and system conversion costs. The financial measures are not prepared in accordance with generally accepted accounting principles in the United States (GAAP). A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flow that excludes or includes amounts that are required to be disclosed by GAAP. The Company believes that these non-GAAP financial measures provide both management and investors a more complete understanding of the underlying operational results and trends and the Company’s marketplace performance. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the numbers prepared in accordance with GAAP.

    Forward-Looking–Statements
    This release contains forward-looking statements that are not historical facts and that are intended to be “forward-looking statements” as that term is defined by the Private Securities Litigation Reform Act of 1995. These forward-looking statements may include, but are not limited to, statements about the Company’s plans, objectives, expectations and intentions and other statements contained in this release that are not historical facts and pertain to the Company’s future operating results. When used in this release, the words “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” and similar expressions are generally intended to identify forward-looking statements. Actual results may differ materially from the results discussed in these forward-looking statements, because such statements are inherently subject to significant assumptions, risks and uncertainties, many of which are difficult to predict and are generally beyond the Company’s control. These include but are not limited to: the possibility of adverse economic developments that may, among other things, increase default and delinquency risks in the Company’s loan portfolios; shifts in interest rates; shifts in the rate of inflation; shifts in the demand for the Company’s loan and other products; unforeseen increases in costs and expenses; lower-than-expected revenue or cost savings in connection with acquisitions; changes in accounting policies; changes in the monetary and fiscal policies of the federal government; and changes in laws, regulations and the competitive environment. Unless legally required, the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

    Contact Information:
    Matthew Hartzler
    Executive Vice President, Chief Financial Officer
    (330) 264-5767

       
    MAIN STREET FINANCIAL SERVICES CORP.  
    Condensed Consolidated Balance Sheets  
    (Dollars in thousands, except share data – unaudited)  
      June 30, 2025   December 31, 2024  
    ASSETS        
             
    Cash and cash equivalents $ 52,381   $ 54,422  
    Securities, net (1) 158,189   163,819  
    Loans held for sale 168   –  
    Loans receivable, net 1,161,450   1,113,900  
    Federal Home Loan Bank stock 4,567   5,924  
    Premises & equipment, net 7,884   8,013  
    Bank-owned life insurance 22,036   22,155  
    Other assets 42,096   41,368  
    TOTAL ASSETS $ 1,448,771   $ 1,409,601  
             
    LIABILITIES AND STOCKHOLDERS’ EQUITY        
             
    Deposit accounts $ 1,237,600   $ 1,156,327  
    Other borrowings 28,238   28,399  
    Federal Home Loan Bank advances 54,000   100,000  
    Accrued interest payable and other liabilities 12,371   14,239  
    TOTAL LIABILITIES 1,332,209   1,298,965  
             
             
    Common stock (7,829,127 shares of $1.00 par value issued) 7,829   7,801  
    Additional paid-in capital 56,656   56,387  
    Retained earnings 62,479   57,356  
    Accumulated other comprehensive loss (10,402)   (10,908)  
    TOTAL STOCKHOLDERS’ EQUITY 116,562   110,636  
             
    TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 1,448,771   $ 1,409,601  
             
    (1) Includes available-for-sale and held-to-maturity classifications.  
    Note: The December 31, 2024 Condensed Consolidated Balance Sheet has been derived from the audited Consolidated Balance Sheet as of that date.  
             
     
    MAIN STREET FINANCIAL SERVICES CORP.
    Condensed Consolidated Statements of Income
    (Dollars in thousands, except share data – unaudited)
                   
                   
      Three Months Ended   Six Months Ended
      June 30,   June 30,
        2025     2024       2025     2024  
                   
    Interest income $ 20,698   $ 12,572     $ 40,096   $ 22,266  
    Interest expense   8,241     6,185       16,114     10,826  
    Net interest income   12,457     6,387       23,982     11,440  
    Provision for credit losses   374     4,720       619     4,595  
    Net interest income after provision for credit losses   12,083     1,666       23,363     6,845  
    Non-interest income   906     716       1,725     1,394  
    Non-interest expense              
    Salaries and employee benefits   4,361     2,889       8,077     4,889  
    Net occupancy and equipment expense   1,405     823       2,880     1,505  
    Federal deposit insurance premiums   207     179       378     322  
    Franchise taxes   105     180       210     307  
    Advertising and marketing   190     150       360     218  
    Legal   164     180       247     313  
    Professional fees   365     1,163       724     1,293  
    ATM network   132     266       212     395  
    Auditing and accounting   132     121       308     193  
    Other   1,247     772       2,426     1,222  
    Total non-interest expense   8,308     6,723       15,822     10,657  
    Income (loss) before federal income taxes   4,681     (4,341 )     9,266     (2,418 )
    Provision (benefit) for federal income taxes   1,002     (873 )     1,958     (489 )
    Net income (loss) $ 3,679   $ (3,468 )   $ 7,308   $ (1,929 )
                   
    Earnings (net loss) per share              
    Basic $ 0.47   $ (0.68 )   $ 0.94   $ (0.28 )
    Diluted $ 0.47   $ (0.67 )   $ 0.93   $ (0.27 )
                   
     
    MAIN STREET FINANCIAL SERVICES CORP.
    Selected Condensed Consolidated Financial Data
    (Dollars in thousands, except share data – unaudited)
                     
        Three Months Ended
        June   March   December   September
          2025       2025       2024       2024  
                     
    Interest and dividend income   $ 20,699     $ 19,397     $ 19,138     $ 18,930  
    Interest expense     8,241       7,872       8,531       8,308  
    Net interest income     12,457       11,525       10,607       10,622  
    Provision for credit losses     374       245       79       109  
    Net interest income after                
    provision for credit losses     12,083       11,280       10,528       10,513  
    Non-interest income     906       819       1,165       1,600  
    Non-interest expense     8,308       7,514       7,950       7,863  
    Income before federal income taxes     4,681       4,585       3,744       4,251  
    Provision for federal income taxes     1,002       956       558       804  
    Net income   $ 3,679     $ 3,629     $ 3,186     $ 3,446  
                     
    Earnings per share – basic   $ 0.47     $ 0.47     $ 0.41     $ 0.44  
    Earnings per share – diluted   $ 0.47     $ 0.47     $ 0.41     $ 0.44  
    Dividends per share   $ 0.14     $ 0.14     $ 0.14     $ 0.14  
    Return on average assets     1.03 %     1.03 %     0.90 %     1.00 %
    Return on average equity     13.42 %     13.27 %     11.69 %     12.58 %
    Shares outstanding at quarter end     7,829,137       7,801,011       7,801,011       7,801,011  
    Book value per share   $ 14.89     $ 14.73     $ 14.18     $ 14.27  
    Tangible equity per share   $ 12.97     $ 12.73     $ 12.13     $ 12.15  
    Return on common tangible equity     14.49 %     14.62 %     13.46 %     14.54 %
                     
        Three Months Ended
        June   March   December   September
          2024       2024       2023       2023  
                     
    Interest and dividend income   $ 12,572     $ 9,694     $ 9,545     $ 9,078  
    Interest expense     6,185       4,641       4,330       3,673  
    Net interest income     6,387       5,053       5,215       5,405  
    Provision (benefit) for credit losses     4,720       (126 )     4       138  
    Net interest income after                
    provision for credit losses     1,666       5,179       5,211       5,267  
    Non-interest income     716       678       1,017       691  
    Non-interest expense     6,723       3,934       3,748       3,733  
    Income (loss) before federal income taxes     (4,341 )     1,923       2,480       2,225  
    Provision (benefit) for federal income taxes     (873 )     384       443       452  
    Net income (loss)   $ (3,468 )   $ 1,539     $ 2,037     $ 1,773  
                     
    Earnings (loss) per share – basic   $ (0.68 )   $ 0.40     $ 0.53     $ 0.46  
    Earnings (loss) per share – diluted   $ (0.67 )   $ 0.40     $ 0.53     $ 0.46  
    Dividends per share   $ 0.13     $ 0.13     $ 0.13     $ 0.13  
    Return on average assets     (1.38 %)     0.76 %     1.02 %     0.91 %
    Return on average equity     (17.16 %)     11.63 %     16.90 %     14.41 %
    Shares outstanding at quarter end     7,787,055       3,840,575       3,839,702       3,837,609  
    Book value per share   $ 13.60     $ 13.81     $ 13.80     $ 12.40  
    Tangible equity per share   $ 11.49     $ 13.36     $ 13.35     $ 11.95  
    Return on common tangible equity     (15.51 %)     12.00 %     15.90 %     15.46 %
                     
     
    MAIN STREET FINANCIAL SERVICES CORP.
    Non-GAAP reconciliation
    (Dollars in thousands, except per share data – unaudited)
         
      For three months ended   For the six months ended
      June,   June,
          2025       2024       2025       2024  
                   
    Net Income as reported – GAAP   $ 3,679     $ (3,468 )   $ 7,308     $ (1,929 )
    Effect of merger related expenses (net of tax benefit)     –       5,399       –       5,573  
    Effect of termination expenses (net of tax benefit)     416       –       416       –  
    Net Income non-GAAP   $ 4,095     $ 1,931     $ 7,724     $ 3,645  
                     
    Earnings per share – GAAP   $ 0.47     $ (0.68 )   $ 0.94     $ (0.43 )
    Effect of merger related expenses     –       1.05       –       1.24  
    Effect of termination expenses     0.05       –       0.05       –  
    Earnings per share non-GAAP   $ 0.52     $ 0.38     $ 0.99     $ 0.81  
                     
    Return on average assets – GAAP     1.03 %     -1.38 %     1.03 %     -0.43 %
    Effect of merger related expenses     –       2.15 %     –       1.24 %
    Effect of termination expenses     0.12 %     –       0.06 %     –  
    Return on average assets non-GAAP     1.14 %     0.77 %     1.09 %     0.81 %
                     
    Return on average equity – GAAP     13.42 %     -17.16 %     13.34 %     -6.24 %
    Effect of merger related expenses     –       26.72 %     –       18.02 %
    Effect of termination expenses     1.52 %     –       0.76 %     –  
    Return on average equity non-GAAP     14.94 %     9.56 %     14.10 %     11.78 %
                     
    Efficiency Ratio – GAAP     62.17 %     94.65 %     61.55 %     83.04 %
    Effect of merger related expenses     –       -29.42 %     –       -18.00 %
    Effect of termination expenses     -3.11 %     –       -1.62 %     –  
    Efficiency Ratio non-GAAP     59.06 %     65.23 %     59.93 %     65.04 %
                     

    The MIL Network –

  • MIL-OSI: Bel Reports Second Quarter and First Half 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    WEST ORANGE, N.J., July 24, 2025 (GLOBE NEWSWIRE) — Bel Fuse Inc. (Nasdaq: BELFA and BELFB) today announced preliminary financial results for the second quarter and first half of 2025.

    Second Quarter 2025 Highlights

    • Net sales of $168.3 million compared to $133.2 million in Q2-24. Up 26.3% from Q2-24
    • Gross profit margin of 38.7%, compared to 40.1% in Q2-24
    • GAAP net earnings attributable to Bel shareholders of $26.9 million versus GAAP net earnings attributable to Bel shareholders of $18.8 million in Q2-24
    • Adjusted EBITDA of $35.2 million (20.9% of sales) as compared to $27.7 million (20.8% of sales) in Q2-24
    • Gain of $4.1 million on Sale of Glen Rock, PA building

    “We are pleased with our second quarter results, which exceeded expectations due to improved on-time shipments and enhanced intraquarter turns, reinforcing our thesis of growth for the year,” said Farouq Tuweiq, President and CEO. “Gross margins aligned with guidance, reflecting operational stability. Strength was evident in defense and commercial aerospace applications, alongside a rebound in networking and distribution sales in certain segments, signaling recovery after nearly two years of inventory destocking.

    “Tariffs minimally impacted performance, resulting in only $2.2 million of low-margin sales during the second quarter. We believe our ability to achieve solid results in uncertain times validates our strategic approach. For Q3, based on information available today, we anticipate net sales of $165-$180 million and gross margins of 37%-39%, driven by strong Q2 bookings and sequential growth expected in the second half.”

    “We remain optimistic about delivering value to our customers and shareholders as we navigate the evolving market dynamics,” concluded Mr. Tuweiq.

    Non-GAAP financial measures, such as Non-GAAP net earnings attributable to Bel shareholders, Non-GAAP EPS, Non-GAAP Operating Income and Adjusted EBITDA, adjust corresponding GAAP measures for provision for income taxes, other income/expense, net, interest income/expense, and depreciation and amortization, and also exclude, where applicable for the covered period presented in the financial statements, certain unusual or special items identified by management such as restructuring charges, gains/losses on sales of businesses and properties, acquisition related costs, impairment charges, noncontrolling interest (“NCI”) adjustments from fair value to redemption value, and certain litigation costs. In addition, in the fourth quarter of 2024, we modified our presentation of Non-GAAP financial measures, including revising our definitions of Adjusted EBITDA and Non-GAAP EPS, to additionally exclude from these Non-GAAP measures (i) stock-based compensation, (ii) amortization of intangibles (which primarily relates to the amortization of finite-lived customer relationships and technology associated with the Company’s historical acquisitions, including those associated with the recent acquisition of Enercon), and (iii) unrealized foreign currency exchange (gains) losses. We believe this change enhances investor insight into our operational performance. We have applied this modified definition of Adjusted EBITDA and Non-GAAP EPS to all periods presented. Please refer to the financial information included with this press release for reconciliations of GAAP financial measures to Non-GAAP financial measures and our explanation of why we present Non-GAAP financial measures.

    Conference Call
    Bel has scheduled a conference call for 8:30 a.m. ET on Friday, July 25, 2025 to discuss these results. To participate in the conference call, investors should dial 877-407-0784, or 201-689-8560 if dialing internationally. The presentation will additionally be broadcast live over the Internet and will be available at https://ir.belfuse.com/events-and-presentations. The webcast will be available via replay for a period of at least 30 days at this same Internet address. For those unable to access the live call, a telephone replay will be available at 844-512-2921, or 412-317-6671 if dialing internationally, using access code 13754675 after 12:30 pm ET, also for 30 days.

    About Bel
    Bel (www.belfuse.com) designs, manufactures and markets a broad array of products that power, protect and connect electronic circuits. These products are primarily used in the networking, telecommunications, computing, general industrial, high-speed data transmission, defense, commercial aerospace, transportation and eMobility industries. Bel’s portfolio of products also finds application in the automotive, medical, broadcasting and consumer electronics markets. Bel’s product groups include Power Solutions and Protection (front-end, board-mount and industrial power products, module products and circuit protection), Connectivity Solutions (expanded beam fiber optic, copper-based, RF and RJ connectors and cable assemblies), and Magnetic Solutions (integrated connector modules, power transformers, power inductors and discrete components). The Company operates facilities around the world.

    Company Contact:
    Lynn Hutkin
    Chief Financial Officer
    ir@belf.com

    Investor Contact:
    Three Part Advisors
    Jean Marie Young, Managing Director or Steven Hooser, Partner
    631-418-4339
    jyoung@threepa.com; shooser@threepa.com

    Cautionary Language Concerning Forward-Looking Statements
    This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, our guidance for the third quarter of 2025; our statements regarding our expectations for future periods generally including anticipated financial performance, projections and trends for the remainder of the 2025 year ahead and other future periods; our statements regarding future events, performance, plans, intentions, beliefs, expectations and estimates, including statements regarding matters such as trends and expectations as to our sales, volumes, gross margin, products, product groups, customers, geographies and end markets; statements about uncertainty of the evolving tariff landscape, associated difficulties in forecasting, the Company’s estimates concerning Bel’s global sales and recently imposed tariffs, and the Company’s intention to continue to monitor the tariff landscape and assess potential alternatives; statements about anticipated continued strength in certain end markets, and views on the effects on the Company’s overall future performance; and statements regarding our expectations and beliefs regarding trends in the Company’s business and industry and the markets in which Bel operates, and about broader market trends and the macroeconomic environment generally, and other statements regarding the Company’s positioning, its strategies, future progress, investments, plans, targets, goals, and other focuses and initiatives, and the expected timing and potential benefits thereof. These forward-looking statements are made as of the date of this release and are based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Words such as “expect,” “anticipate,” “should,” “believe,” “hope,” “target,” “project,” “forecast,” “outlook,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “might,” “could,” “intend,” variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond Bel’s control. Bel’s actual results could differ materially from those stated or implied in our forward-looking statements (including without limitation any of Bel’s projections) due to a number of factors, including but not limited to, difficulties associated with integrating previously acquired companies, including any unanticipated difficulties, or unexpected or higher than anticipated expenditures, relating to Bel’s November 2024 acquisition of Enercon, and including, without limitation, the risk that Bel is unable to integrate the Enercon business successfully or difficulties that result in the failure to realize the expected benefits and synergies within the expected time period (if at all); the possibility that the Bel’s intended acquisition of the remaining 20% stake in Enercon is not completed in accordance with the shareholders agreement as contemplated for any reason, and any resulting disruptions to Bel’s business and its currently 80% owned Enercon subsidiary as a result thereof; trends in demand which can affect Bel’s products and results, including that demand in Enercon’s end markets can be cyclical, impacting the demand for Enercon’s products, which could be materially adversely affected by reductions in defense spending; the market concerns facing Bel’s customers, and risks for the Company’s business in the event of the loss of certain substantial customers; the continuing viability of sectors that rely on Bel’s products; the effects of business and economic conditions, and challenges impacting the macroeconomic environment generally and/or Bel’s industry in particular; the effects of rising input costs, and cost changes generally, including the potential impact of inflationary pressures; capacity and supply constraints or difficulties, including supply chain constraints or other challenges; the impact of public health crises; difficulties associated with the availability of labor, and the risks of any labor unrest or labor shortages; risks associated with Bel’s international operations, including Bel’s substantial manufacturing operations in China, and following Bel’s November 2024 acquisition of Enercon , risks associated with operations in Israel, which may be adversely affected by political or economic instability, major hostilities or acts of terrorism in the region; risks associated with restructuring programs or other strategic initiatives, including any difficulties in implementation or realization of the expected benefits or cost savings; product development, commercialization or technological difficulties; the regulatory and trade environment including the potential effects of the imposition or modification of new or increased tariffs either by the U.S. government on foreign foreign imports or by a foreign government on U.S. exports related to the countries in which Bel transacts business and trade restrictions that may impact Bel, its customers and/or its suppliers, and risks associated with the evolving trade environment, trade restrictions, and changes in trade agreements, and general uncertainty about future changes in trade and tariff policy and the associated impacts of those changes; risks associated with fluctuations in foreign currency exchange rates and interest rates; uncertainties associated with legal proceedings; the market’s acceptance of the Company’s new products and competitive responses to those new products; the impact of changes to U.S. and applicable foreign legal and regulatory requirements, including tax laws; and the risks detailed in Bel’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and in subsequent reports filed by Bel with the Securities and Exchange Commission, as well as other documents that may be filed by Bel from time to time with the Securities and Exchange Commission. In light of the risks and uncertainties impacting Bel’s business, there can be no assurance that any forward-looking statement will in fact prove to be correct. Past performance is not necessarily indicative of future results. The forward-looking statements included in this press release represent Bel’s views as of the date of this press release. Bel anticipates that subsequent events and developments will cause its views to change. Bel undertakes no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing Bel’s views as of any date subsequent to the date of this press release.

    Non-GAAP Financial Measures
    The Non-GAAP financial measures identified in this press release as well as in the supplementary information to this press release (Non-GAAP net earnings attributable to Bel shareholders, Non-GAAP EPS, Non-GAAP Operating Income and Adjusted EBITDA) are not measures of performance under accounting principles generally accepted in the United States of America (“GAAP”). These measures should not be considered a substitute for, and the reader should also consider, income from operations, net earnings, earnings per share and other measures of performance as defined by GAAP as indicators of our performance or profitability. Our non-GAAP measures may not be comparable to other similarly-titled captions of other companies due to differences in the method of calculation. We present results adjusted to exclude the effects of certain unusual or special items and their related tax impact that would otherwise be included under U.S. GAAP, to aid in comparisons with other periods. We believe that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to our financial condition and results of operations. We use these non-GAAP measures to compare the Company’s performance to that of prior periods for trend analysis and for budgeting and planning purposes. We also believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing the Company’s financial measures with other similarly situated companies in our industry, many of which present similar non-GAAP financial measures to investors. We also use non-GAAP measures in determining incentive compensation. For additional information about our use of non-GAAP financial measures in connection with our Incentive Compensation Program, please see the Executive Compensation Discussion and Analysis (CD&A) section appearing in our Definitive Proxy Statement filed with the Securities and Exchange Commission on April 11, 2025.

    Website Information
    We routinely post important information for investors on our website, www.belfuse.com, in the “Investor Relations” section. We use our website as a means of disclosing material, otherwise non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should monitor the Investor Relations section of our website, in addition to following our press releases, Securities and Exchange Commission (SEC) filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document.

    [Financial tables follow]

     
    Bel Fuse Inc.
    Supplementary Information(1)
    Condensed Consolidated Statements of Operations
    (in thousands, except per share amounts)
    (unaudited)
     
        Three Months Ended     Six Months Ended  
        June 30,     June 30,  
        2025     2024     2025     2024  
                                     
    Net sales   $ 168,299     $ 133,205     $ 320,537     $ 261,295  
    Cost of sales     103,216       79,809       196,635       159,821  
    Gross profit     65,083       53,396       123,902       101,474  
    As a % of net sales     38.7 %     40.1 %     38.7 %     38.8 %
                                     
    Research and development costs     8,104       5,994       15,326       11,209  
    Selling, general and administrative expenses     30,914       24,141       60,421       49,085  
    As a % of net sales     18.4 %     18.1 %     18.8 %     18.8 %
    Restructuring charges     280       638       (2,653 )     703  
    Gain on sale of property     (4,075 )     –       (4,075 )     –  
    Income from operations     29,860       22,623       54,883       40,477  
    As a % of net sales     17.7 %     17.0 %     17.1 %     15.5 %
                                     
    Interest expense     (3,993 )     (415 )     (8,145 )     (849 )
    Interest income     264       1,146       539       2,261  
    Other income (expense), net     7,568       (471 )     10,207       1,346  
    Earnings before income taxes     33,699       22,883       57,484       43,235  
                                     
    Provision for income taxes     6,906       4,077       12,369       8,555  
    Effective tax rate     20.5 %     17.8 %     21.5 %     19.8 %
    Net earnings   $ 26,793     $ 18,806     $ 45,115     $ 34,680  
    As a % of net sales     15.9 %     14.1 %     14.1 %     13.3 %
                                     
    Less: Net earnings attributable to noncontrolling interest     822       –       1,660       –  
    Redemption value adjustment attributable to noncontrolling interest     (890 )     –       (1,280 )     –  
    Net earnings attributable to Bel Fuse Shareholders   $ 26,861     $ 18,806     $ 44,735     $ 34,680  
                                     
    Weighted average number of shares outstanding:                                
    Class A common shares – basic and diluted     2,115       2,124       2,115       2,131  
    Class B common shares – basic and diluted     10,551       10,492       10,504       10,551  
                                     
    Net earnings per common share:                                
    Class A common shares – basic and diluted   $ 2.03     $ 1.43     $ 3.39     $ 2.61  
    Class B common shares – basic and diluted   $ 2.14     $ 1.50     $ 3.58     $ 2.76  
     
    (1) The supplementary information included in this press release for 2025 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q with the Securities and Exchange Commission.
    Bel Fuse Inc.
    Supplementary Information(1)
    Condensed Consolidated Balance Sheets
    (in thousands, unaudited)
     
        June 30, 2025     December 31, 2024  
    Assets                
    Current assets:                
    Cash and cash equivalents   $ 59,284     $ 68,253  
    Held to maturity U.S. Treasury securities     –       950  
    Accounts receivable, net     121,241       111,376  
    Inventories     164,648       161,370  
    Other current assets     33,442       31,581  
    Total current assets     378,615       373,530  
    Property, plant and equipment, net     48,704       47,879  
    Right-of-use assets     23,930       25,125  
    Related-party note receivable     3,715       2,937  
    Equity method investment     10,284       9,265  
    Goodwill and other intangible assets, net     436,292       439,984  
    Other assets     49,040       51,069  
    Total assets   $ 950,580     $ 949,789  
                     
    Total liabilities, redeemable noncontrolling interests and stockholders’ equity                
    Current liabilities:                
    Accounts payable   $ 53,685     $ 49,182  
    Operating lease liability, current     8,688       7,954  
    Other current liabilities     61,709       70,933  
    Total current liabilities     124,082       128,069  
    Long-term debt     250,000       287,500  
    Operating lease liability, long-term     16,387       17,763  
    Other liabilities     74,402       75,295  
    Total liabilities     464,871       508,627  
    Redeemable noncontrolling interests     80,966       80,586  
    Stockholders’ equity     404,743       360,576  
    Total liabilities, redeemable noncontrolling interests and stockholders’ equity   $ 950,580     $ 949,789  
     
    (1) The supplementary information included in this press release for 2025 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q with the Securities and Exchange Commission.
    Bel Fuse Inc.
    Supplementary Information(1)
    Condensed Consolidated Statements of Cash Flows
    (in thousands, unaudited)
     
        Six Months Ended  
        June 30,  
        2025     2024  
                     
    Cash flows from operating activities:                
    Net earnings   $ 45,115     $ 34,680  
    Adjustments to reconcile net earnings to net cash provided by operating activities:                
    Depreciation and amortization     13,284       7,123  
    Stock-based compensation     2,900       1,775  
    Amortization of deferred financing costs     692       27  
    Deferred income taxes     (861 )     (2,930 )
    Net unrealized gains on foreign currency revaluation     (12,913 )     (355 )
    Gain on sale of property     (4,075 )     –  
    Other, net     1,595       652  
    Changes in operating assets and liabilities:                
    Accounts receivable, net     (8,203 )     2,805  
    Unbilled receivables     (1,400 )     6,887  
    Inventories     (122 )     7,972  
    Accounts payable     3,511       (4,026 )
    Accrued expenses     (8,641 )     (14,147 )
    Accrued restructuring costs     (5,075 )     (1,553 )
    Income taxes payable     2,143       4,517  
    Other operating assets/liabilities, net     914       (5,083 )
    Net cash provided by operating activities     28,864       38,344  
                     
    Cash flows from investing activities:                
    Purchases of property, plant and equipment     (6,718 )     (4,278 )
    Purchases of held to maturity U.S. Treasury securities     –       (122,345 )
    Proceeds from held to maturity securities     950       101,071  
    Investment in related party notes receivable     (778 )     (633 )
    Proceeds from sale of property, plant and equipment     4,867       229  
    Net cash used in investing activities     (1,679 )     (25,956 )
                     
    Cash flows from financing activities:                
    Dividends paid to common stockholders     (1,660 )     (1,674 )
    Deferred financing costs     (681 )     –  
    Repayments of long-term debt     (42,500 )     –  
    Proceeds of long-term debt     5,000       –  
    Purchases of common stock     –       (14,175 )
    Net cash used in financing activities     (39,841 )     (15,849 )
                     
    Effect of exchange rate changes on cash and cash equivalents     3,687       (934 )
                     
    Net decrease in cash and cash equivalents     (8,969 )     (4,395 )
    Cash and cash equivalents – beginning of period     68,253       89,371  
    Cash and cash equivalents – end of period   $ 59,284     $ 84,976  
                     
                     
    Supplementary information:                
    Cash paid during the period for:                
    Income taxes, net of refunds received   $ 11,422     $ 8,277  
    Interest payments   $ 8,188     $ 1,985  
    ROU assets obtained in exchange for lease obligations   $ 1,502     $ 4,239  
     
    (1) The supplementary information included in this press release for 2025 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q with the Securities and Exchange Commission.
    Bel Fuse Inc.
    Supplementary Information(1)
    Product Group Highlights
    (dollars in thousands, unaudited)
     
        Sales     Gross Margin  
        Q2-25     Q2-24     % Change     Q2-25     Q2-24     Basis Point Change  
    Power Solutions and Protection   $ 86,799     $ 58,551       48.2 %     41.9 %     45.7 %     (380 )
    Connectivity Solutions     59,202       57,822       2.4 %     39.2 %     38.9 %     30  
    Magnetic Solutions     22,298       16,832       32.5 %     28.7 %     26.4 %     230  
    Total   $ 168,299     $ 133,205       26.3 %     38.7 %     40.1 %     (140 )
        Sales     Gross Margin  
        YTD June 2025     YTD June 2024     % Change     YTD June 2025     YTD June 2024     Basis Point Change  
    Power Solutions and Protection   $ 169,853       118,798       43.0 %     42.2 %     44.8 %     (260 )
    Connectivity Solutions     109,932       112,107       -1.9 %     38.6 %     37.6 %     100  
    Magnetic Solutions     40,752       30,390       34.1 %     26.9 %     21.8 %     510  
    Total   $ 320,537     $ 261,295       22.7 %     38.7 %     38.8 %     (10 )
     
    (1) The supplementary information included in this press release for 2025 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q with the Securities and Exchange Commission.
    Bel Fuse Inc.
    Supplementary Information(1)
    Reconciliation of GAAP Net Earnings to Non-GAAP Operating Income and Adjusted EBITDA(2)(3)
    (in thousands, unaudited)
     
        Three Months Ended     Six Months Ended  
        June 30,     June 30,  
        2025     2024     2025     2024  
                                     
    GAAP Net earnings   $ 26,793     $ 18,806     $ 45,115     $ 34,680  
    Provision for income taxes     6,906       4,077       12,369       8,555  
    Other income/expense, net     (7,568 )     471       (10,207 )     (1,346 )
    Interest income     (264 )     (1,146 )     (539 )     (2,261 )
    Interest expense     3,993       415       8,145       849  
    GAAP Operating Income   $ 29,860     $ 22,623     $ 54,883     $ 40,477  
    Restructuring charges     280       638       (2,653 )     703  
    Amortization of inventory step-up     799       –       1,757       –  
    Gain on sale of property     (4,075 )     –       (4,075 )     –  
    Stock-based compensation     1,721       971       2,900       1,775  
    Non-GAAP Operating Income   $ 28,585     $ 24,232     $ 52,812     $ 42,955  
    Depreciation and amortization     6,600       3,439       13,284       7,123  
    Adjusted EBITDA   $ 35,185     $ 27,671     $ 66,096     $ 50,078  
    % of net sales     20.9 %     20.8 %     20.6 %     19.2 %
                                     
    (1) The supplementary information included in this press release for 2025 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q with the Securities and Exchange Commission.
    (2) In this press release and supplemental information, we have included Non-GAAP financial measures, including Non-GAAP net earnings attributable to Bel shareholders, Non-GAAP EPS, Non-GAAP Operating Income and Adjusted EBITDA. We present results adjusted to exclude the effects of certain specified items and their related tax impact that would otherwise be included under GAAP, to aid in comparisons with other periods. We believe that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to our financial condition and results of operations. We use these non-GAAP measures to compare the Company’s performance to that of prior periods for trend analysis and for budgeting and planning purposes. We also believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing the Company’s financial measures with other similarly situated companies in our industry, many of which present similar non-GAAP financial measures to investors. We also use non-GAAP measures in determining incentive compensation. See the section above captioned “Non-GAAP Financial Measures” for additional information.
    (3) In the fourth quarter of 2024, we modified our presentation of Non-GAAP financial measures, including revising our definitions of Adjusted EBITDA and Non-GAAP EPS, to additionally exclude from these Non-GAAP measures (i) stock-based compensation, (ii) amortization of intangibles (which primarily relates to the amortization of finite-lived customer relationships and technology associated with the Company’s historical acquisitions, including those associated with the recent acquisition of Enercon), and (iii) unrealized foreign currency exchange (gains) losses. We believe this change enhances investor insight into our operational performance. We have applied this modified definition of Adjusted EBITDA and Non-GAAP EPS to all periods presented.
    Bel Fuse Inc.
    Supplementary Information(1)
    Reconciliation of GAAP Measures to Non-GAAP Measures(2)(4)
    (in thousands, except per share data) (unaudited)
     
    The following tables detail the impact that certain unusual or special items had on the Company’s net earnings per common Class A and Class B basic and diluted shares (“EPS”) and the line items in which these items were included on the consolidated statements of operations.
     
        Three Months Ended June 30, 2025     Three Months Ended June 30, 2024  
    Reconciling Items   Earnings before taxes     Provision for income taxes     Net Earnings Attributable to Bel Fuse Shareholders     Class A EPS(3)     Class B EPS(3)     Earnings before taxes     Provision for income taxes     Net Earnings Attributable to Bel Fuse Shareholders     Class A EPS(3)     Class B EPS(3)  
                                                                                     
    GAAP measures   $ 33,699     $ 6,906     $ 26,861     $ 2.03     $ 2.14     $ 22,883     $ 4,077     $ 18,806     $ 1.43     $ 1.50  
    Restructuring charges     280       48       232       0.02       0.02       638       153       485       0.04       0.04  
    Redemption value adjustment on redeemable NCI     –       –       (890 )     (0.07 )     (0.07 )     –       –       –       –       –  
    Amortization of inventory step-up     799       184       615       0.05       0.05       –       –       –       –       –  
    Gain on sale of property     (4,075 )     (937 )     (3,138 )     (0.24 )     (0.25 )     –       –       –       –       –  
    Stock-based compensation     1,721       354       1,367       0.10       0.11       972       200       772       0.06       0.06  
    Amortization of intangibles     3,697       647       3,050       0.23       0.24       1,148       239       909       0.07       0.07  
    Unrealized foreign currency exchange (gains) losses     (9,250 )     (2,127 )     (7,123 )     (0.54 )     (0.57 )     370       80       290       0.02       0.02  
    Non-GAAP measures   $ 26,871     $ 5,075     $ 20,974     $ 1.58     $ 1.67     $ 26,011     $ 4,749     $ 21,262     $ 1.61     $ 1.70  
        Six Months Ended June 30, 2025     Six Months Ended June 30, 2024  
    Reconciling Items   Earnings before taxes     Provision for income taxes     Net Earnings Attributable to Bel Fuse Shareholders     Class A EPS(3)     Class B EPS(3)     Earnings before taxes     Provision for income taxes     Net Earnings Attributable to Bel Fuse Shareholders     Class A EPS(3)     Class B EPS(3)  
                                                                                     
    GAAP measures   $ 57,484     $ 12,369     $ 44,735     $ 3.39     $ 3.58     $ 43,235     $ 8,555     $ 34,680     $ 2.61     $ 2.76  
    Restructuring charges     (2,653 )     (323 )     (2,330 )     (0.18 )     (0.19 )     703       163       540       0.04       0.04  
    Redemption value adjustment on redeemable NCI     –       –       (1,280 )     (0.10 )     (0.10 )     –       –       –       –       –  
    Amortization of inventory step-up     1,757       404       1,353       0.10       0.11       –       –       –       –       –  
    Gain on sale of property     (4,075 )     (937 )     (3,138 )     (0.24 )     (0.25 )     –       –       –       –       –  
    Stock-based compensation     2,900       597       2,303       0.18       0.18       1,776       366       1,410       0.11       0.11  
    Amortization of intangibles     7,383       1,295       6,088       0.46       0.49       2,542       503       2,039       0.15       0.16  
    Unrealized foreign currency exchange (gains) losses     (12,913 )     (2,995 )     (9,918 )     (0.75 )     (0.79 )     (529 )     (127 )     (402 )     (0.03 )     (0.03 )
    Non-GAAP measures   $ 49,883     $ 10,410     $ 37,813     $ 2.86     $ 3.02     $ 47,727     $ 9,460     $ 38,267     $ 2.89     $ 3.04  
     
    (1) The supplementary information included in this press release for 2025 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q with the Securities and Exchange Commission.
    (2) In this press release and supplemental information, we have included Non-GAAP financial measures, including Non-GAAP net earnings attributable to Bel shareholders, Non-GAAP EPS, Non-GAAP Operating Income and Adjusted EBITDA. We present results adjusted to exclude the effects of certain specified items and their related tax impact that would otherwise be included under GAAP, to aid in comparisons with other periods. We believe that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to our financial condition and results of operations. We use these non-GAAP measures to compare the Company’s performance to that of prior periods for trend analysis and for budgeting and planning purposes. We also believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing the Company’s financial measures with other similarly situated companies in our industry, many of which present similar non-GAAP financial measures to investors. We also use non-GAAP measures in determining incentive compensation. See the section above captioned “Non-GAAP Financial Measures” for additional information.
    (3) Individual amounts of earnings per share may not agree to the total due to rounding.
    (4) In the fourth quarter of 2024, we modified our presentation of Non-GAAP financial measures, including revising our definitions of Adjusted EBITDA and Non-GAAP EPS, to additionally exclude from these Non-GAAP measures (i) stock-based compensation, (ii) amortization of intangibles (which primarily relates to the amortization of finite-lived customer relationships and technology associated with the Company’s historical acquisitions, including those associated with the recent acquisition of Enercon), and (iii) unrealized foreign currency exchange (gains) losses. We believe this change enhances investor insight into our operational performance. We have applied this modified definition of Adjusted EBITDA and Non-GAAP EPS to all periods presented.

    The MIL Network –

  • MIL-OSI USA: Tuberville Chairs First HELP Subcommittee Hearing

    US Senate News:

    Source: United States Senator for Alabama Tommy Tuberville
    WASHINGTON – Yesterday, U.S. Senator Tommy Tuberville (R-AL) led his first hearing as Chairman of the Health, Education, Labor, and Pensions (HELP) Subcommittee on Education and the American Family with lead advocates for reform in the nation’s educational system. During the hearing, entitled “Empowering Families for Better Educational Results,” witnesses underscored places where the current education system falls short, such as declining literacy rates and the lack of charter schools. Sen. Tuberville emphasized the importance of allowing parents to make choices when it comes to their children’s education and the legislation that will benefit teachers, parents, and children.
    In effort to understand how to improve literacy across the nation, Sen. Tuberville and his Republican colleagues asked the witnesses what policies they believe should be implemented. The witnesses also discussed the preparation and professional development that would empower teachers in the classroom. Finally, Sen. Tuberville asked witnesses about the positive effects that charter schools can have on communities.
    Witnesses included:
    Mr. Tyler Barnett, CEO of New Schools for Alabama
    Ms. Anne Wicks, Don Evans Family Managing Director Opportunity and Democracy George W. Bush Institute
    Ms. Ginny Gentles, Director of Education Freedom and Parental Rights Defense of Freedom Institute
    Mr. Richard Barrera, Board Vice President of San Diego Unified School District
    Read excerpts of the transcript below or watch clips of the hearing on YouTube or Rumble. 
    OPENING STATEMENT:
    TUBERVILLE: “Good afternoon. The Senate Committee on Health Education Labor and Pensions Subcommittee on Education and the American Family will come to order. Thanks for being here. As you can tell, we’re running a little late. It’s a little hectic on the hill today, but we will survive. This afternoon, we’re having a hearing on empowering families for better educational results. Ranking member Blunt Rochester and I will each have an opening statement. The witnesses will have five minutes for their opening statements, and senators will each have five minutes for questions.
    We will obviously have senators coming in and out because [there are] many, many votes today. So, thank you to all the witnesses for being here today. It’s always nice to see a fellow Alabamian here today up here in the swamp. Thanks to Mr. Barnett for coming to visit today. We’ve called this hearing to discuss something very near and dear to my heart. One of the reasons I’m here. I was an educator for decades before I decided to come up here, and over those years, I saw the state of our education system decline. The federal government just kept spending more money and more money in K-12 education, and the more they spent, the worse outcomes became. It was just amazing me to watch it in real time, and it made no sense. It’s the main reason I chose to run for this office.
    I didn’t want to see our kids fail year after year, then I got here and realized that we can fix it, but a lot of things are broken. Four years I’ve been serving here on the HELP Committee, and this year, I finally got this gavel to make sure we could have something like this to where we could bring these things to light. I wanted to focus on our kids’ educational outcomes and figure out where we were failing, and also, where we’re doing good things. That leads us to today.
    That’s why we’re having this hearing.
    We need to take a good, hard look at our K-12 education system and figure out [what we can do] to fix it, to make it better, because the status quo in a lot of areas is not cutting it. That means we need to think outside the box. Since COVID, parents have gotten a lot more engaged and that’s where all the necessary change can start, right at home, family. And, since parents have started paying more attention, they’ve started calling for more and more options.
    Parents across our country are calling for their states to offer more options for their kids outside of failing school systems. States represented by folks on both sides of this dice are working on school choice options in their state legislature. We’ll hear about that issue from our witnesses today. Parents want these options, and we ought to listen to them. In my home state of Alabama last year, we passed the Choose Act, which created an income tax credit for families who choose to enroll their children in private schools or homeschooling.
    Virginia, Florida, Alaska, Massachusetts, New Jersey, Indiana, and Washington are just a few states to name that have implemented or have pending state legislation to create these income tax credits promoting school choice. It’s simple. When we give our parents and students choice, we yield better educational results. We owe our kids this investment. But it doesn’t end there.
    Right now, our kids in a lot of areas can’t read. We have kids entering middle school and high school who aren’t at a third grade reading level. I used to recruit kids. I’d bring them in with 3.5 GPAs. The next thing I know after testing them, they wouldn’t be [at a] sixth grade reading level. Something has got to change with that. States and governors across our country have taken up the literacy challenge and enacted legislation at the state level, where it should be. Ranking member Blunt Rochester’s home state of Delaware passed House Bill 304 that implemented reading assessments three times a school year for kids K-3, and my state passed the Alabama Literacy Act, which does the same thing. And we’re trying. No matter the state, this is a widespread effort, and we will discuss today the methods that are working.
    We’ll talk about the science of reading and how best to implement. In our classrooms, we’ll hear about how we can invest in our teachers, invest to prepare them to tackle this crisis head-on. They need to be set up for success just as much as our students do. I want today to be an opportunity for this committee to have a conversation about what our states are doing, and what [we can] do to support them from here, from the federal level. Our children are the best resource this country has, the best thing we’ve got going.
    And above all, we owe them one thing, an opportunity to succeed. And I look forward to working with all of you towards this common goal. Now, I yield to my ranking member, Senator Blunt Rochester, for her opening statement.”
    […]
    ON HOW THE SUCCESS OF CHARTER SCHOOLS IMPACTS DISTRICT SCHOOLS:
    TUBERVILLE: “Mr. Barnett, we’ve had tremendous growth in the number of students across American enrolling in charter schools. Over four million students to be exact. How does that success of charter schools impact our district public school system?”
    BARNETT: “Thank you, Mr. Chairman. So, there are really two large national studies that speak to this. One comes out of the Progressive Policy Institute, and another comes out of the Forum Institute. Both actually show that the presence of charter schools has, in some way, improved outcomes within district schools. There’s a certain threshold that the Progressive Policy Institute’s study showed somewhere around 30%. So, the presence of charter schools that give up to 30% of students in a given market, the opportunity to enroll has [a] positive net impact on not only charter school performance, but also district performance.”
    […]
    ON THE IMPORTANCE OF PREPARING OUR EDUCATORS TO TEACH THE SCIENCE OF READING METHOD:
    TUBERVILLE: “Ms. Wicks, you talked about teacher preparedness and professional development in your testimony. How important is preparing our educators to teach the science of reading method?”
    WICKS: “Senator, thank you for that important question. It’s critical that we give educators the right preparedness to understand this issue and be able to deploy it in their classrooms. I referenced in my opening remarks that only 25% of educator prep programs are currently teaching the science of reading to their aspiring teachers. And even worse, about 40% of them are teaching the wrong stuff. So, they’re teaching these brand-new teachers the wrong way to teach reading.
    If they’re interested in more—the National Council on Teacher Quality put out that report. They’re the best at studying Teacher Prep programs. And I think this comes down to a matter of state leadership and accreditation.
    They make some recommendations about the importance of setting state standards for what these programs need to be teaching. [We need to] have some way to measure that if it’s through accreditation or others.
    And then to tie the state licensure exams to those standards, to ensure that those candidates have actually learned this and can do it in their classroom. And you see the same thing for sitting teachers who maybe never got this in their training and need that professional development.”
    TUBERVILLE: “Thank you, Ms. Gentles, you know, on both sides of the argument whether President Trump and the Department of Education [is] undermining public school. And because of the work done to expand school choice, do you think there’s a truth to that argument?”
    GENTLES: “Consistently studies show that when states have implemented school choice programs, the nearby public schools have benefited. So increasing competition inspires innovation, and a rising tide lifts all boats. So, we were pleased to see the Executive Order from the President supporting expanding school choice [and] educational freedom, and we’re also pleased to see the Executive Order ordering the Secretary of Education to look into dismantling the Department of Education within […] federal law and with the understanding that the Secretary will be working with Congress on that. Because we do think that […] freeing up states from federal regulations from monitoring, from compliance—all the time that all those bureaucrats at the state and district level are spending on federal paperwork is going to benefit public education. It’s going to benefit public school students. It’s going to benefit public school educators.”
    TUBERVILLE: “Do you think we should give more power back to the states when it [comes to] education?”
    GENTLES: “Absolutely. We need to give power to the states. I think we’ve heard such great news today on what strong state leaders—sensible state leaders—implementing common sense policies are doing. It’s very encouraging to see what’s happening.
    We didn’t mention Louisiana, but Louisiana is a bright spot amidst the 2024 NAEP scores, the only state where fourth grade reading scores exceeded pre-COVID [grades].”
    CASSIDY: “More so than Alabama?”
    GENTLES: “Alabama’s pretty awesome too. It’s been referred to as the southern surge. There’s really good news coming out of the states and encouraging that, fostering that is absolutely the right direction. […] Education policies [are] set at the state level and let’s foster that and let’s get the federal government out of the way.”
    Senator Tommy Tuberville represents Alabama in the United States Senate and is a member of the Senate Armed Services, Agriculture, Veterans’ Affairs, HELP and Aging Committees.

    MIL OSI USA News –

  • MIL-OSI USA: Tuberville Speaks to DOD Chief of Naval Operations Nominee

    US Senate News:

    Source: United States Senator for Alabama Tommy Tuberville
    WASHINGTON – U.S. Senator Tommy Tuberville (R-AL) participated in a Senate Armed Services Committee hearing today to consider the nomination of Admiral Daryl Caudle to be Chief of Naval Operations. During the hearing, Sen. Tuberville and Admiral Caudle discussed the need to work with our allies as we work to improve our U.S. Naval capabilities, as well as the advantages of using unmanned vessels at sea.
    Excerpts from the interview can be found below and the full interview can be viewed on YouTube or Rumble.
    ON SHIPBUILDING WITH OUR ALLIES:
    TUBERVILLE: “Thank you, Mr. Chairman. Admiral, congratulations. You’ve earned this. Looking forward to working with you. You know, we talk about shipbuilding, and we do a lot of that in my state of Alabama.
    Now, we’re in the submarine business. But I was also in the education business. We’re 500,000 electricians short in this country. In mine and your lifetime, we can’t catch up. We’re gonna have to use our allies to help build some things.
    What’s your thoughts about that? And, for instance, [South] Korea, they build 5 to our 1 keels. [What] are your thoughts on helping and working with our allies to help build ships in the future?”
    CAUDLE: “Well, Senator, thanks for meeting with me. I enjoyed our time in your office. I wanna work with the Secretary of the Navy and the Department of Defense on looking at this hard. Again, I’ve said this is an all hands on deck [effort]. I don’t know how we do what we need to do without bringing international partners into the capacity problem that we have, while we build up our capacity because we need ships today.
    And, so, there are no magic beans to that. There’s nothing that’s just gonna make that happen. So, the solution space has got to open up. And I think part of that has to look at international partnerships to give us a little bit of a relief valve while we work on our own organic industrial capacity.”
    TUBERVILLE: “As you said, we need them yesterday. And again, this education problem is not going away. Our workforce problem is not going away. We gotta use the best that we know how. And we gotta build ships and we gotta build them fast. But they gotta be good ships, and I think working with our allies is gonna be one way for us to address this problem.”
    ON SAIL DRONES:
    TUBERVILLE: “What’s your thoughts on unmanned vessels like sail drones that we make in our state of Alabama. Are you familiar with those?”
    CAUDLE: “Senator, I am familiar with them. Those are type of technologies that are crucial. Sail drones are part of the fabric of how we improve our Maritime Domain Awareness. You’ve, I’m sure, heard of the instantiations we’ve had with our Task Force 59 in the Arabian Gulf using those type of technologies. We’ve had them in the Gulf of America with our southern border watch. We’re using them there with [U.S.] Fourth Fleet and other places. So, yes, that’s a part of exactly what we need to network persistent capabilities where I don’t want manned vessels spending time just collecting things that unmanned can do much more affordably and effectively.”
    TUBERVILLE: “Yeah. Those have been used well down in the Caribbean on the war on drugs. And we’re proud of how they worked, and we need to continue to expand that there. I don’t think there’s any doubt about that. A lot of eyes out there that we don’t have to man [with] people and train people, but it’s good that you go along with it. Thank you, Mr. Chairman.”
    Senator Tommy Tuberville represents Alabama in the United States Senate and is a member of the Senate Armed Services, Agriculture, Veterans’ Affairs, HELP and Aging Committees.

    MIL OSI USA News –

  • MIL-OSI USA: Tuberville Introduces Huntsville’s Bill Roark During HELP Hearing

    US Senate News:

    Source: United States Senator for Alabama Tommy Tuberville
    WASHINGTON – Today, U.S. Senator Tommy Tuberville (R-AL)introduced Mr. Bill Roark of Huntsville, Alabama, as a witness appearing before the Senate Health, Education, Labor, and Pensions (HELP) Committee. The hearing was about empowering workers by expanding employee ownership.
    Read excerpts from the hearing below or watch on YouTube or Rumble.
    INTRODUCTION:
    TUBERVILLE: “I’m proud to introduce an Auburn man and a constituent, Mr. Bill Roark. Mr. Roark is the Co-founder of Torch Technologies Inc., Founder and Executive Chairman of the Board of Starfish Holdings, Inc., and Founder and Chair of the Board of Freedom Real Estate and Capital LLC, so he stays pretty busy. He’s a champion for employee ownership, and he has led multiple companies to national recognition [thanks] to his core values.
    As CEO of Torch Technologies, Mr. Rourke implemented an employee-owned ownership program from the company’s inception with the goal of becoming a 100% S corp employee stock ownership plan. His company achieved that goal in just under 10 years. Torch and Mr. Roark gained national attention for being named on the inaugural list of best of America’s best small companies by Forbes. During his tenure, Torch received multiple business awards and was named the number one fastest-growing, privately-held defense contractor in the southeast region. Torch Technologies provides superior research development and engineering services to the Department of Defense. Mr. Roark recently led Torch to become a certified evergreen company, achieving its long-term commitment to 100% employee ownership and its pledge to remain privately held to ensure enduring stability and opportunity for its workforce. This milestone came as Torch celebrated its 20th anniversary. 
    A true believer in company culture and employee well-being, Mr. Rourke has prioritized top-tier benefits and working conditions throughout his career. Mr. Rourke also founded Starfish Holdings Incorporated, a holding company that provides beneficial ownerships to employees across all its portfolios through an ESOP structure. Starfish Holdings companies now include Torch Technologies Inc., Freedom Real Estate and Capital LLC, and SIMVANA [LLC]. Mr. Roark has a proven track record with a common denominator of building companies where employees can thrive, retire with dignity, and find lasting purpose in their work.
    Thank you for being here today, Mr. Roark.”
    ON THE IMPORTANCE OF WORKPLACE DIGNITY:
    TUBERVILLE: “Important topic. Mister Roark, it’s got to be pretty mind calming to know if you work in an ESOP and you have some of the owners exit the company that everybody’s not gonna lose their job. So, what kind of security does an ESOP structure have for all employees? What that you’ve seen? Some examples.”
    ROARK: “Well, you know, we work real hard to build a succession plan in that it prepares our employees as people retire to step forward. You know, that is a challenge. One of the biggest challenges we’ve had is the success of the ESOP has led to people retiring early, so we have to work that problem a little harder and be training people ready to step into the role. The departure of employees that are retiring actually creates lots of opportunities for the other employees to accelerate in their careers quicker. So, a successful ESOP actually creates a lot of successful careers.
    It also creates the ability for employees to retire with dignity. In fact, the announcement of this hearing went out on our social media last night and one of the posts this morning, I’ll quote for you. […] Jim Deal, one of our retiring employees seven or eight years ago, he says, ‘Tell them how much you helped us retire with dignity.’ That is to me the essence of why I wanted to do this. You know, some 25 years ago, a company bought the company I worked for. And a few months after it was bought, I’d had a successful career. I went from being an entry level person to an executive. I was president of an operating segment. In that time, I’d had one of the most successful careers of anyone at that company. As that acquisition evolved and I was there, I was shortly thereafter, walked to the door and asked, told as I was handed my severance check that ‘We’ll pack your office and send your stuff home.’
    When I started this company, at the core of what I wanted is I wanted people to retire with dignity. When I walked out and stood on that corner, I didn’t feel very dignified. When I meet an employee in the grocery store, I want them to come hug me, not run from me. With the ESOP, I get lots of hugs. Every year when the ESOP statements come out, I get lots of hugs.This is a different way of doing business. I never wanna see an employee walk through the door in such an undignified manner. I put my whole life into that company. Several times, I worked 24 hours straight to get a delivery out on time.Was that respected? No. My stuff showed up in boxes with a bunch of crap that I didn’t really want, was not dignified at all. I hope that answers your question, Coach.”
    TUBERVILLE: “So, how can we help on the federal level to make ESOP structure more viable for that?”
    ROARK: “No. I think there’s lots of ideas being proposed here in in several of these bills, you know, making this easier, making it clearer in what we’re supposed to do. There’s a lot of murkiness in the bills, you know, one of the things for us in the last few years, we’ve been in a position where we could contribute more than the maximum allowable to our employees, and that creates an issue with the ESOP itself. Rf the limit is at 25%, I can only give 25%. If it were higher, we in some cases would have given higher, including this year. So, there are some pieces there where we could just fine tune some things. The ESOP is a wonderful tool and it provides stability for the employees and provides a retirement path for them as well. So, I think the more that we can refine the regulations around it to encourage people to be able to do this, clear up the rules on how the evaluations are done so that it’s clear what needs to be done. I think those would be great helps.”
    TUBERVILLE: “Thank you. Thank you, Mr. Chairman.”
    Senator Tommy Tuberville represents Alabama in the United States Senate and is a member of the Senate Armed Services, Agriculture, Veterans’ Affairs, HELP and Aging Committees.

    MIL OSI USA News –

  • MIL-OSI USA: Markey and Warnock Demand Answers from Secretaries Rubio and Noem on Contradictory U.S. Foreign and Immigration Policies Toward Haiti and Potential Illegal Arms Exports to Port-au-Prince

    US Senate News:

    Source: United States Senator for Massachusetts Ed Markey
    Letter Text (PDF)
    Washington (July 24, 2025) – Senators Edward J. Markey (D-Mass.) and Raphael Warnock (D-Ga.) today led their colleagues in writing to Secretary of State Marco Rubio and Secretary of Homeland Security Kristi Noem, requesting clarification on the contradictory U.S. foreign and immigration policies toward Haiti. The senators also demand answers on the involvement of a U.S. private military contractor (PMC)—led by Blackwater Worldwide founder Erik Prince— conducting armed operations in Haiti.
    In the letter, the lawmakers write, “According to recent reports, a U.S. private military contractor (PMC) is conducting armed operations in Haiti under a formal contract with the country’s transitional government. These reports raise urgent questions about compliance with U.S. arms export laws, the risk of U.S. complicity in gross violations of human rights, and fundamental contradictions in current U.S. foreign and immigration policy toward Haiti. In light of these concerns, and in view of the Trump administration’s recent decision to both terminate Temporary Protected Status (TPS) for Haiti and include Haiti in its newly announced travel ban, we request that you immediately clarify how these decisions are being coordinated and justified across the Executive Branch.”
    The lawmakers continued, “Weaponized drone operations, arms shipments, and deployments of U.S. mercenaries unquestionably constitute activities requiring export licenses. If those licenses were granted, their approval would appear inconsistent with NSPM-10’s human rights criteria. If no licenses were granted, then these activities may be proceeding in violation of U.S. law. At a time when U.S. foreign policy towards Haiti is increasingly inconsistent, by undermining multilateral efforts, ignoring human rights concerns, and pursuing deportations despite escalating violence, the unchecked deployment of a U.S. private military contractor with a troubling history of human rights abuses represents an urgent threat to U.S. legal obligations, credibility, and responsibilities to protect vulnerable populations.”
    The lawmakers request the following information by August 15, 2025:
    Has any U.S. private military contractor applied for or received export licenses for defense articles or military services provided in Haiti? If so, please identify them and provide copies of the export licenses.
    Have any such licenses been reviewed under NSPM-10, Section 3(d) regarding the risks to international peace and human rights? If so, please provide the results of any such review. If not, why not?
    Has any interagency review assessed whether such U.S. private military contractor activity could undermine the Multinational Security Support (MSS) mission? If so, please provide the results of any such review. If not, why not? Has the Department of State assessed whether these activities are consistent with, duplicative of, or in conflict with the UN MSS mission? If so, please provide the results of any such assessment. If not, why not?
    Have the Haitian National Police units that are reportedly receiving U.S. security assistance been vetted under the Leahy Law? If so, please provide the results of that vetting. If not, why not?
    What accounts for the contradiction between State’s support for armed stabilization operations in Haiti and DHS’s determination that TPS protections should end?
    How does the Administration reconcile the security justification for Haiti’s inclusion in the travel ban with its simultaneous assessment that Haiti’s TPS status should be terminated because it is safe for Haitians to return home?
    The letter was co-signed by Senators Chris Van Hollen (D-Md.), Elizabeth Warren (D-Mass.), Bernie Sanders (I-Vt.), Alex Padilla (D-Calif.), Adam Schiff (D-Calif.), Peter Welch (D-Vt.), and Cory Booker (D-N.J.).

    MIL OSI USA News –

  • MIL-OSI USA: Sen. Markey, Reps. Tonko, Fitzpatrick, Bacon, Introduce Community Mental Wellness & Resilience Act

    US Senate News:

    Source: United States Senator for Massachusetts Ed Markey
    Bipartisan legislation bolsters mental wellness & resilience to traumas caused by climate disasters
    Washington (July 24, 2025) – Senator Edward J. Markey (D-Mass.), a member of the Environment and Public Works Committee and co-Chair of the Environmental Justice Caucus, along with Representatives Paul D. Tonko (D-NY), Brian Fitzpatrick (R-PA), and Don Bacon (R-NE), today introduced the Community Mental Wellness and Resilience Act, a bipartisan bill that tackles the nation’s mental health crisis by addressing the extensive community trauma caused by climate disasters. This innovative legislation will empower communities through a new federal grant program to craft their own locally specific responses to the mental health problems caused by disasters and toxic stresses.
    “Communities are struggling to meet the current need for mental health services, and as the climate crisis worsens, unprecedented disasters will only cause more unprecedented harm to our physical and mental health,” said Senator Markey. “Heat waves, flash floods, wildfires, and droughts leave devastation and trauma in their wake. My Community Mental Wellness and Resilience Act would give communities the help they need to protect residents’ mental health, especially those in rural and underserved communities that are getting hit first and worst by disasters and have the fewest resources to deal with them.”
    “Extreme weather disasters don’t just wreak havoc on our homes, economies, and infrastructure — they inflict lasting trauma and mental harm for those both directly impacted and far beyond the affected area,” Congressman Tonko said. “We need to provide compassionate, evidence-informed solutions to support our communities. That’s why I’m leading this bipartisan legislation in partnership with my colleagues. We’ll continue working to further mental wellness and equip our communities with the resources they need to meet and overcome these traumas.”
    “For too long, our disaster response has focused solely on physical recovery, while the mental and emotional toll has gone unaddressed. This bipartisan legislation corrects that imbalance by treating mental health as a core component of our public health and emergency preparedness strategy. By investing in evidence-based, community-driven solutions, we’re not just helping communities rebuild—we’re helping them heal,” said Congressman Brian Fitzpatrick.
    “The mental health crisis affecting our communities is one of the most serious challenges of our time. We need comprehensive, community-driven solutions that empower local leaders to develop and implement programs that work for their specific needs,”?said Congressman Don Bacon.?“The bipartisan Community Mental Wellness and Resilience Act puts the power back in the hands of our communities to create meaningful, lasting change in mental health care.”
    In 2024, Mental Health America reported that nearly 23 percent of U.S. adults (~60 million people) experienced a diagnosed mental illness, with more than 5 percent facing severe conditions. Climate disasters only exacerbate the problem. Consequently, the number of people who experience a mental health problem as a result of a natural disaster often outweigh those with physical injuries by 40 to 1.
    The Community Mental Wellness and Resilience Act will:
    Establish a competitive grant program at the Department of Health and Human Services (HHS) to create, operate, or expand community-based programs that use a public health approach to build mental wellness and resilience
    Utilize these programs to enhance the capacity of all residents for mental wellness and resilience to prevent and heal mental health problems generated by disasters and toxic stresses
    Incorporating a set-aside to help address rural mental health disparities
    Help community initiatives build their own strategies to enhance and sustain population-level mental wellness and resilience, with specific attention to high-risk individuals
    More than 110 organizations support the legislation, including: Alliance of Nurses for Healthy Environments, American Foundation for Suicide Prevention, American Lung Association, American Psychiatric Association, American Public Health Association, International Transformational Resilience Coalition, Mental Health America, Moms Clean Air Force, National Association of Pediatric Nurse Practitioners, National Association of Social Workers, National League for Nursing, Rural Opportunity Institute, The Kennedy Forum, and YMCA of the USA.
    A fact sheet on the legislation can be found HERE.

    MIL OSI USA News –

  • MIL-OSI USA: Senator Markey Introduces Legislation to Increase Wages Nationwide for Paraprofessionals and Education Support Staff

    US Senate News:

    Source: United States Senator for Massachusetts Ed Markey
    Bill Text (PDF)
    Washington (July 24, 2025) – Senator Edward J. Markey (D-Mass.), a member of the Health, Education, Labor and Pensions Committee, today introduced the Pay Paraprofessionals and Education Support Staff Act, legislation that would set a minimum wage for school staff of $45,000 per year, or $30 per hour.
    “Paraprofessionals and education support staff make our schools safe, healthy places where all students can learn, grow, and thrive. They are a critical part of our education infrastructure, and we must invest in them the way they invest in our students, their families, and their communities,” said Senator Markey, who earlier today participated in a town hall at the U.S. Capitol with more than 100 educators and educational leaders to discuss the educator pay crisis. “As Trump and Republicans work to cut public education and attack educators across the country, I am proud to introduce this legislation, which will uplift paraprofessionals and education support staff and give them the support and resources they need to succeed.”
    Several educational leaders voiced their support for the Pay Paraprofessionals and Education Support Staff Act. 
    “Every day, we fight for our paraprofessionals and school-related personnel who are not paid enough; they work under tough conditions, and many are subject to violence during the workday. Too many must work multiple jobs just to make ends meet. Given the crucial role that PSRPs play in classrooms and the invaluable support they give to the students they serve, securing commensurate compensation and respect is critical. We are grateful to Sen. Markey for his commitment to paraprofessionals, bus drivers, custodians, school office staff, school food service workers and all the school staff who make our schools run. Do you think teachers and principals could do their jobs without PSRPs? The answer is ‘no.’ Sen. Markey’s bill, the Pay Paraprofessionals and Education Support Staff Act, would guarantee that the more than 370,000 members who make up the AFT’s PSRP division would have access to a family-sustaining wage. We look forward to moving this bill forward in Congress,” said Randi Weingarten, President of the American Federation of Teachers.
    “Paraprofessionals play an invaluable role in our classrooms and are at the heart of our public school — helping students learn, grow, and meet their basic needs,” said Jessica Tang, President of the American Federation of Teachers Massachusetts. “Outside of the classroom, they’re important members of the community, many have kids and grandkids in the schools and live in the communities they serve. For far too long, paraprofessionals have been forced to work multiple jobs, or rely on public assistance, just to make ends meet. One job should be enough. It’s time our paraprofessionals receive the fair wages, benefits, and respect that reflects the important work they do every day.”
    “Education Support Professionals strengthen our schools and communities by making sure our students are safe, healthy and ready to learn every day. But too many of these educators are forced to work two or three jobs to support their families, when one job should be enough. By passing the Pay Paraprofessionals and Education Support Staff Act, Congress will show they recognize and appreciate the invaluable contributions of our ESPs – both inside and outside the classroom. We want to thank Senator Ed Markey for introducing this legislation, and we urge Congress to act swiftly in passing it to demonstrate to our Education Support Professionals that, as a nation, we respect and value all they do for our students,” said Becky Pringle, President of the National Education Association. “As the Trump administration continues to take a wrecking ball to public education and the futures of the 50 million students in rural, suburban, and urban communities across America, this legislation is more important than ever to ensure our students get the support they need.”
    “An Education Support Professional told us how one of her students had an after-school job at a fast-food restaurant that paid more per hour than this district was paying veteran ESPs. This is shameful. ESPs play an increasingly vital role in our public schools, yet in too many districts across Massachusetts they do not earn a living wage. We have heard countless stories from ESPs who love working with their students but cannot afford to keep their school jobs. Senator Markey’s bill is a sensible and responsible approach to correcting a serious injustice in our public schools. By establishing a floor upon which to build a real living wage, this legislation will improve learning conditions – especially for our most vulnerable students – by stabilizing the education workforce,” said Max Page, President, and Deb McCarthy, Vice President of the Massachusetts Teachers Association.
    The bill is cosponsored by Senators Alex Padilla (D-Calif.), Mazie Hirono (D-Hawaii.), Bernie Sanders (I-Vt.), Kirsten Gillibrand (D-N.Y.), Peter Welch (D-Vt.), and Elizabeth Warren (D-Mass.).
    The bill is endorsed by the National Education Association, SEIU, American Federation of Teachers, AFSCME, Council for Exceptional Children, EdTrust, and National Women’s Law Center.
    On July 17, 2025, Senator Markey reintroduced the Preparing and Retaining All (PARA) Educators Act, legislation that would establish higher wages, career pipelines, and professional development opportunities for school paraeducators. In April 2025, Senator Markey and Representative Jahana Hayes (CT-05) introduced the Paraprofessionals and Education Support Staff Bill of Rights.
    On March 20, Senator Markey slammed Trump’s Executive Order to dismantle the Department of Education. On March 11, Senator Markey delivered remarks on the Senate Floor to spotlight Trump’s plan to gut the Department. On February 27, Senator Markey introduced the No Cuts to Public Schools Act, which would prevent any cuts to federal education formula funding during the Trump administration. On February 10, Senator Markey held a press conference in Boston with Massachusetts educators and teachers’ unions on Trump’s vow to dismantle the Department, and the impact on Massachusetts students, educators, and communities.
    On February 6, 2025, Senator Markey, members of the Massachusetts congressional delegation, along with the Massachusetts Teachers Association, American Federation of Teachers Massachusetts, Massachusetts Association of School Committees, and Massachusetts Association of School Superintendents, released a joint statement after President Trump vowed to dismantle the Department of Education.
    In September 2023, Senator Markey introduced the Green New Deal for Public Schools Act, legislation that would invest $1.6 trillion over the next decade in public and Bureau of Indian Education schools to upgrade every public school building in the country; reduce hazardous pollution; give schools the resources to hire hundreds of thousands of educators, paraprofessionals, and counselors; invest in schools serving low-income students; and fully fund education for students with disabilities.
    Senator Markey first introduced the Paraprofessional and Education Support Staff Bill of Rights in November 2023.

    MIL OSI USA News –

  • MIL-OSI USA: Cornyn, Graham Call for Special Counsel to Investigate Obama Administration’s Role in Russia Collusion Hoax

    US Senate News:

    Source: United States Senator for Texas John Cornyn
    WASHINGTON – U.S. Senators John Cornyn (R-TX) and Lindsey Graham (R-SC), both senior members of the Senate Judiciary Committee, today called on U.S. Attorney General Pam Bondi to appoint a special counsel to investigate the Obama administration’s involvement in the Russia collusion hoax:
    “For the good of the country, we urge Attorney General Bondi to appoint a special counsel to investigate the extent to which former President Obama, his staff, and administration officials manipulated the U.S. national security apparatus for a political outcome.
    “As we have supported in the past, appointing an independent special counsel would do the country a tremendous service in this case. 
    “With every piece of information that gets released, it becomes more evident that the entire Russia collusion hoax was created by the Obama Administration to subvert the will of the American people.
    “Democrats and the liberal media have been out to get President Trump since 2016. There must be an immediate investigation of what we believe to be an unprecedented and clear abuse of power by a U.S. presidential administration.”
    Background:
    Last week, Director of National Intelligence (DNI) Tulsi Gabbard released evidence demonstrating that former President Barack Obama and his national security staff manipulated information from the intelligence community in order to insinuate that Russia was attempting to help then-candidate Donald Trump win the 2016 presidential election, including:
    In the months leading up to the November 2016 election, the Intelligence Community (IC) assessed that Russia is “probably not trying … to influence the election by using cyber means.”
    On December 7, 2016, after the election, talking points were prepared for DNI James Clapper stating, “Foreign adversaries did not use cyberattacks on election infrastructure to alter the US Presidential election outcome.”
    A declassified copy of the Presidential Daily Brief, which was prepared using intelligence from the CIA, Defense Intelligence Agency, FBI, National Security Agency, Department of Homeland Security, State Department, and open sources, for Obama on December 8, 2016, assessed that “Russian and criminal actors did not impact recent US election results by conducting malicious cyber activities against election infrastructure.”
    That Presidential Daily Brief was scheduled to be published on December 9, 2016, but communications revealed that DNI Clapper’s office stopped its publication “based on some new guidance.”
    On December 9, 2016, Obama gathered top National Security Council Principals for a meeting in the Situation Room that included James Clapper, John Brennan, Susan Rice, John Kerry, Loretta Lynch, Andrew McCabe and others, to discuss Russia.
    After the meeting, DNI Clapper’s Executive Assistant sent an email to IC leaders tasking them with creating a new IC assessment “per the President’s request” that details the “tools Moscow used and actions it took to influence the 2016 election.” It went on to say, “ODNI will lead this effort with participation from CIA, FBI, NSA, and DHS.”
    Obama officials leaked false statements to media outlets, including The Washington Post and The New York Times, claiming, “Russia has attempted through cyber means to interfere in, if not actively influence, the outcome of an election.”
    On January 6, 2017, a new Intelligence Community Assessment was released.

    MIL OSI USA News –

  • MIL-OSI USA: RELEASE: Mullin Calls for Immediate Release of all Information Related to Epstein Case, Blasts Dem Absence Last Four Years

    US Senate News:

    Source: United States Senator MarkWayne Mullin (R-Oklahoma)

    RELEASE: Mullin Calls for Immediate Release of all Information Related to Epstein Case, Blasts Dem Absence Last Four Years

    Washington, D.C. – Today,U.S. Senator Markwayne Mullin (R-OK), introduced a resolution calling on federal and state courts to immediately unseal all materials related to any criminal investigation or prosecution of Jeffrey Epstein or Ms. Ghislaine Maxwell—subject only to redactions to protect victims.
    In his remarks, Senator Mullin previewed his resolution, addressed the Democrats’ absence on this issue for the last four years, and the need for transparency. Highlights below.

    Sen. Mullin’s full remarks can be found here.
    On the Democrats’ political theater performance:
    “As we hear my colleague from Arizona use very liberal truths to what he was saying by not giving all the facts. I’d also propose a question, where was all this outrage over the last four years when Director Wray was over the FBI and Attorney General Garland was over the DOJ? He knows, I know, and all the Democrats know that if there was anything to do with President Trump, they would have happily released it.”
    “My Lord, you went after him for everything else you could possibly think of, why wouldn’t you possibly go after this? Well, it’s because this is nothing but political theater. We know that… All of us want transparency… Why now? Is it because of their hatred towards President Trump? Because they want to do anything they can possibly do to distract what they might be hiding. Why wasn’t this done the previous four years? What happened? They had the same files. This case wasn’t new.”
    On Sen. Mullin’s resolution calling for the immediate release of the Epstein files:
    “We all want transparency and for credible information on the Epstein case to be made public so that the American people can decide. The Trump administration has already said they are committed to releasing all available files. Last week, President Trump directed AG Bondi to produce any and all pertinent grand jury testimony in the Epstein case.
    “My resolution would echo the seriousness of the directive from the President and the DOJ to the courts and calls to immediately unseal all materials. When combined with what our House colleagues have done, this resolution moves forward providing justice to the victims and transparency to the American people. Mr. President, as I said before, we want transparency.”
    On Sen. Gallego objecting to Sen. Mullin’s Resolution:
    “It’s interesting that my colleague wants to continue talking about the elites, but the elites were the ones that actually covered up the last four years of the Biden administration. I mean, think about what happened during the Biden administration. They covered up one, for his cognitive behavior. Two, they covered up the Hunter Biden laptop. Three, they covered up the Russian gate, and continue to cover up the Russian gate. And four, they covered up the fact that an autopen signed every, well, every one of his papers except one.”
    On the silence from the Democrats the last four years:
    “But yet, my colleague from Arizona is saying that we’re covering up for the elites? Let’s be honest. We know these files have been out there forever. I don’t remember a single time the Biden Administration called on these things to be released. And I definitely don’t remember my colleague from Arizona calling on these files to be released.
    Full text of Senator Mullin’s resolution can be found here.
    To read more about Senator Mullin’s resolution in Fox News, click here.

    MIL OSI USA News –

  • MIL-OSI USA: ICYMI—Hagerty Joins The Bottom Line on Fox Business to Discuss Trump’s Policy Agenda, Nominee Confirmations, Market Structure Legislation

    US Senate News:

    Source: United States Senator for Tennessee Bill Hagerty
    WASHINGTON—Yesterday, United States Senator Bill Hagerty (R-TN), a member of the Senate Appropriations and Banking Committees and former U.S. Ambassador to Japan, joined The Bottom Line on Fox Businessto discuss the Senate’s work on President Donald Trump’s legislative priorities, efforts to confirm key nominees, and the next phase of cryptocurrency market structure legislation following the passage of the GENIUS Act.
    *Click the photo above or here to watch*Partial Transcript
    Hagerty on the August recess and public support for the Big Beautiful Bill: “I’m certainly here ready to work through the weekends, ready to work into the recess that we have scheduled. We do have a communication challenge ahead because the Democrats and their liberal media partisan allies have been out telling a story that’s not true about this bill. The elements of this bill are very popular with the United States of America– extending the tax cuts, no tax on tips, and no tax on overtime. If you think about beefing up the military and securing our border, these are all things that the American public not only wants, but they voted for. There’s a lot of good to talk about, and we need to get back to talk about it. But I appreciate the opportunity to do that here. And right now, the American public is already seeing the benefit. The stock market is at an all-time high. We’re seeing great concessions being made by countries all over the world to do more business with America, more investments taking place in America, and blue-collar wages are back on the rise again. On a real and inflation-adjusted basis, blue-collar wages are up again, like they were back when President Trump was in office before. That certainly was not the case when Joe Biden was in office. We have a lot of good news to sell.”
    Hagerty on staying in Washington to work on nominee confirmations: “I think we’re going to stay here and work. That’s what the President wants us to do. This would not be necessary— and I want to be clear about this— were it not for the maximum resistance campaign that the Democrats have put in place. This is unprecedented in terms of the number of procedural hoops they have forced us to step through, because their overarching objective is to keep President Trump from seeding his cabinet, from putting his team on the ground. Despite all of their efforts, President Trump keeps winning time and time again. Our border is secure, our economy is moving in the right direction, trade deals are coming in— we’re still winning. It would be even better if we could get our team on the ground. The Democrats are trying to stop us, and we’re just going to have to keep plowing right through. So I’m here to work, through the weekends, whatever it takes to get the team on the field.”
    Hagerty on his market structure bill: “I take a great deal of pride in my legislation, the GENIUS Act. The stablecoin bill will actually open the market for digital currencies here in the United States. It puts us and our payment system into the 21st century. It brings dollar dominance into the digital arena, so that the dollar will dominate. That’s what we have to do to make certain that we stay ahead as a nation. That opens the door then for market structure, which broadens the web and allows us to reach into this innovative market. Innovation needs to take place here in the United States, and additional market structure legislation is necessary. We put a discussion draft out this week that gives a broad outline of how we want to approach it, how we’re going to define the various types of cryptocurrencies, and whether securities and or commodities should be regulated by banks, the SEC [Securities and Exchange Commission], or the CFTC [Commodity Futures Trading Commission].”
    Hagerty on efficiency and market benefits of blockchain: “We’re requesting more input from the industry, and I expect to get a tremendous amount of input here. We’re looking to move this along as quickly as possible. I’m looking at the end of September as a target deadline to get this done. This creates the opportunity to drive down costs and improve efficiency. When thinking about the speed of transactions on the blockchain, the efficiency here is enormous. It takes out counterparty risk, reduces float in the system, removes friction, and delivers great economies of scale as it unfolds.”

    MIL OSI USA News –

  • MIL-OSI USA: Booker, Lee, McIver Introduce Bill to Expand Legal Representation for Tenants Facing Eviction

    US Senate News:

    Source: United States Senator for New Jersey Cory Booker
    WASHINGTON, D.C. – Today, U.S. Senator Cory Booker (D-NJ) along with U.S. Representatives Summer L. Lee (D-PA-12) and LaMonica McIver (D-NJ-10), reintroduced the Eviction Right to Counsel Act, a bold effort to combat the growing eviction crisis by ensuring that low-income tenants facing eviction have access to free legal representation.
    The Eviction Right to Counsel Act would establish a federal grant program through the Department of Housing and Urban Development (HUD) to support state, local, and Tribal governments that pass legislation guaranteeing a right to counsel in eviction proceedings. The bill prioritizes funding for jurisdictions that also implement additional tenant protections like just cause eviction laws, longer notice periods, emergency rental assistance, and eviction diversion programs—creating a comprehensive strategy to prevent displacement and housing instability.
    “Millions of Americans are living paycheck to paycheck while facing rapidly increasing rent prices,” said Senator Booker. “Renters facing eviction are often left defenseless without an attorney to represent them. By creating a grant program to support communities that offer a right to counsel for those facing eviction, we will make our housing system more equitable and provide substantial cost savings to both local governments and overburdened housing services across the country.”
    “Right now, in eviction courtrooms across America, 90% of landlords have lawyers while most tenants have none. And it’s no coincidence that Black families, women, and parents are bearing the brunt of it. No one should lose their home simply because they couldn’t afford a lawyer,” said Representative Lee. “In Western Pennsylvania and across PA-12, families are being crushed by rising rents, stagnant wages, and eviction threats. This bill is about supporting working people and ensuring they have a fighting chance—and that starts with legal representation. I am proud to partner with Senator Booker and Rep. McIver on this bill to help keep people in their homes.”
    “No one should lose their home because they can’t afford to hire a lawyer to take on their case,” said Representative McIver. “The Eviction Right to Counsel Act gives people a fair shot—a chance to fight their cases in court and keep families from falling into the spiral of poverty. Housing is a human right, and this bill takes a critical step toward making sure that right is a reality that people feel.”
    “Not only is housing a basic human need, but loss of housing can lead to a cascade of harms to other needs such as health, safety, and liberty. This bill would support states and cities enacting a right to counsel for tenants facing eviction, an evidence-based approach to increasing housing stability and reducing homelessness that has been adopted by cities and states across the country,” said John Pollock, Coordinator of the National Coalition for a Civil Right to Counsel.
    “For years, NLIHC has called for a national right to counsel fund to help renters stay in their homes and mitigate harm when eviction is avoidable,” said Renee Willis, NLIHC president and CEO. “I applaud Senator Booker for introducing the Eviction Right to Counsel Act to ensure low-income tenants have legal representation when their housing is most at risk. Eviction defense attorneys can make the difference between a renter staying in safe, stable housing or homelessness, and the right to counsel helps tenants know their rights and find support in navigating the complicated eviction process.”
    “We applaud Senator Booker’s leadership on this issue and very glad to see this legislation introduced today. Eviction is a policy failure and the federal government must support mechanisms that keep people safely and stably housed. We look forward to working with the Senator to see this legislation enacted,” said Arnold Cohen, Senior Policy Advisor, Housing and Community Development Network of New Jersey.
    The legislation comes amid skyrocketing rents and surging eviction filings. Nearly half of all renters in America are considered cost-burdened, spending more than 30 percent of their income on rent. Since the pandemic, rents have risen over 12 percent year-over-year, while the protections that temporarily shielded tenants from eviction have largely expired. The imbalance of legal power in eviction proceedings leaves many tenants—particularly Black renters and families with children—vulnerable to homelessness, economic instability, and trauma.
    Studies show that providing tenants with legal representation dramatically improves outcomes, often preventing eviction altogether and saving local governments millions in emergency shelter, health care, and social services costs. Cities that have invested in right to counsel programs have seen estimated cost savings of more than three times their annual investment.
    The Eviction Right to Counsel Act of 2025:
    Authorizes the Secretary of Housing and Urban Development to create a grant program for state, local, and Tribal governments that enact right to counsel legislation.
    Defines “covered individuals” as tenants with income at or below 200 percent of the federal poverty line.
    Covers civil legal actions in court or administrative forums related to:
    Eviction: Forcible removal from a tenant’s primary residence.
    Termination of Housing Subsidy: Loss of subsidies that help tenants afford their homes, which often functions as a de facto eviction.
    Requires jurisdictions receiving funding to provide full legal representation at no cost to covered individuals in these proceedings.
    Prioritizes funding for jurisdictions that have enacted additional tenant protections, including just cause eviction laws, extended notice periods, and eviction diversion programs.
    Allows grantees to use funds for implementation costs such as attorney training and legal resources.
    Authorizes $100 million in federal funding annually for five years.
    The bill is endorsed by: the National Low-Income Housing Coalition, National Coalition for a Civil Right to Counsel, National Housing Law Project, and the Housing and Community Development Network of New Jersey.
    The bill is co-sponsored by U.S. Senators Ron Wyden (D-OR), Chris Van Hollen (D-MD), Bernie Sanders (I-VT), and Richard Blumenthal (D-CT).
    To read the full text of the bill, click here.

    MIL OSI USA News –

  • MIL-OSI USA: Booker Hosts Virtual Town Hall with African American Chamber of Commerce of New Jersey Members, Discusses Trump’s Disastrous Effects on Local Businesses

    US Senate News:

    Source: United States Senator for New Jersey Cory Booker
    Washington, D.C.– This afternoon, Senator Cory Booker (D-NJ) hosted a virtual town hall event with members of the African American Chamber of Commerce of New Jersey (AACCNJ). Among the top concerns from business leaders were the Trump administration and congressional Republicans’ damaging effects on local and Black businesses.
    “Seeking to placate the Trump administration at every turn, congressional Republicans–even those in our own delegation–have undermined New Jersey’s local businesses. That’s especially true for Black small business owners across the state,” said Senator Booker. “Throughout this afternoon’s town hall with AACCNJ members, it was made clear that the economic environment under Trump is one of great uncertainty for our state’s Black business community. It’s stifling innovation, hindering opportunities for our entrepreneurs and workers, and constricting local economies up and down New Jersey. I will continue to fight alongside AACCNJ to ensure New Jersey remains a place where Black businesses can flourish.”
    Under President Trump, local businesses have struggled to navigate the severe and unpredictable nature of the administration’s trade policy. These challenges are particularly acute for small businesses which largely rely on imports, leaving them especially vulnerable to Trump’s tariff disputes. At the same time, President Trump has completely undermined the Small Business Administration and the federal government’s efforts to foster more diverse and equitable practices, including in its contract and service procurement processes.
    “The African American Chamber of Commerce of New Jersey (AACCNJ) thanks Senator Booker for the opportunity to discuss the current landscape of Black businesses in New Jersey and the broader U.S. economy. We believe this conversation to be particularly timely given the recent policy changes and the upcoming gubernatorial election in New Jersey,” said Dr. John E. Harmon, Sr., Founder, President & CEO, AACCNJ.
    During the town hall, AACCNJ members asked the Senator about federal initiatives and legislation to support state and local businesses and outlined the issues specifically affecting Black businesses.

    MIL OSI USA News –

  • MIL-OSI USA: McConnell Praises President Trump’s Selection of Paducah as Future Home of AI Infrastructure

    US Senate News:

    Source: United States Senator for Kentucky Mitch McConnell
    WASHINGTON, D.C. – U.S. Senator Mitch McConnell (R-KY) today praised the Trump Administration’s selection of the Department of Energy’s Paducah Site, home of the Paducah Gaseous Diffusion Plant (PGDP), as one of four locations for cutting-edge artificial intelligence (AI) data centers and energy generation projects: 
    “This is great news for the Paducah community, and I want to thank President Trump for selecting the Paducah Site to host new AI infrastructure. The site at the Paducah Gaseous Diffusion Plant has long held a critical role in advancing U.S. national security, and is poised, yet again, to be a national leader in an emerging and important technology. I am proud of the Paducah community and its workforce and know they are prepared to continue working closely with the Department of Energy to further instill PGDP’s role in national security while helping facilitate greater U.S. leadership in AI.” 
    NOTE: Earlier this year, Senator McConnell contacted U.S. Department of Energy Secretary Chris Wright on behalf of the community in support of Paducah’s submission for the nationwide search for the highly competitive Artificial Intelligence Infrastructure on DOE Lands program. 

    MIL OSI USA News –

  • MIL-OSI USA: NEWS: Sanders Introduces Legislation to Address America’s Teacher Pay Crisis, Holds Town Hall with Public School Educators

    US Senate News:

    Source: United States Senator for Vermont – Bernie Sanders
    WASHINGTON, July 24 — Sen. Bernie Sanders (I-Vt.), Ranking Member of the Senate Committee on Health, Education, Labor, and Pensions (HELP), today introduced the Pay Teachers Act after hearing from more than 200 teachers and educational leaders from across the country during a town hall at the U.S. Capitol. At a time when school districts nationwide report serious staffing shortages — largely due to unprecedented levels of stress, burnout and low pay — this legislation begins to address the teacher pay crisis in America and ensure that all public school teachers earn a livable and competitive wage that is at least $60,000 a year and increases over the course of their career.
    In addition to Sanders, Sens. Ed Markey (D-Mass.), Mazie Hirono (D-Hawaii), Ben Ray Lujan (D-N.M.), Peter Welch (D-Vt.), John Fetterman (D-Pa.), Jeff Merkley (D-Ore.), Elizabeth Warren (D-Mass.) and Alex Padilla (D-Calif.) also cosponsored this legislation. Joining Sanders at the town hall today were Markey; Randi Weingarten, president of the American Federation of Teachers (AFT); Princess Moss, vice president of the National Education Association (NEA); and educators from across the country.
    “If we are serious about the need for a bright and hopeful future for America, we must understand that there is no more important job in our country than educating our young people. And yet, public school teachers in America have one of the toughest, one of the most demanding and one of the most under-appreciated jobs in America,” Sanders said. “The situation has become so absurd that just four hedge fund managers on Wall Street make more money in a single year than every kindergarten teacher in America combined – over 120,000 teachers. Far too many of our nation’s public schools are under-funded, under-resourced and in major need of repair. Far too many of our public school teachers are under-paid, under-appreciated and overwhelmed. And, as a result of the so-called ‘Big Beautiful Bill’ that Trump signed into law a few weeks ago, a bad situation is about to get even worse. If we are going to have the best public school system in the world, we have got to radically change our attitude toward education and make sure that every teacher in America receives the compensation that they deserve for the enormously important and difficult work that they do. No public school teacher in America should make less than $60,000 a year.”
    Today in America, nearly one in eight teaching jobs is vacant or filled by a teacher who is not fully certified. Approximately one-third of all public school teachers make less than $60,000 a year — including more than 90% of starting teachers. Hundreds of thousands of teachers have to work two or three jobs during the school year to make ends meet. Meanwhile, the average weekly wage for public school teachers has decreased by 5% over the past 30 years, adjusted for inflation. Today, 44% of public school teachers quit the profession within five years.
    The pandemic only made things worse for educators, with the historic staffing shortages disproportionately affecting schools primarily serving students of color and students from low-income backgrounds. Recent studies show that, of all workers, K-12 public school teachers were the most likely to report higher levels of anxiety, stress and burnout during the pandemic. Further, as badly as public school teachers are paid, our school custodians, food service workers and paraprofessionals earn even less. In America today, nearly 35% of paraprofessionals and school staff earn less than $25,000 a year.
    Unacceptably, the Republican reconciliation bill recently signed into law is disastrous for public education and for public school teachers. While it provides a $900 billion tax cut to large, profitable corporations and a $1 trillion tax cut to the top 1%, it cuts over $300 billion in education funding for millions of students and educators throughout America and provides over $50 billion a year for private school vouchers.
    “If we are going to attract the best and brightest young people into teaching, if we are going to encourage teachers to teach in underserved communities, if we are going to improve teacher retention and morale, and if we are going to improve student academic outcomes, then we need to pay teachers in America decent wages and decent benefits,” Sanders continued. “We need to make it clear that high-quality public education is a major priority. That is why I am introducing the Pay Teachers Act. Because if we can provide over a trillion dollars in tax breaks to the top 1% and large corporations, please don’t tell me that we cannot afford to make sure that every teacher in America is paid at least $60,000 a year. I look forward to working with teachers and schools all across the country — some of whom I had the pleasure of hearing from today — to make that happen.”
    The bill would also provide all teachers with at least $1,000 annually for classroom supply expenses and help schools create well-paid career ladders that allow teachers to advance without leaving the classroom. Additionally, it includes Markey’s Pay Paraprofessionals and Education Support Staff Act, which would raise pay for paraprofessionals and education support personnel to at least $45,000 a year or $30 an hour. In addition to requiring that states establish a minimum teacher’s salary of $60,000 a year and pay all teachers a livable and competitive salary that increases as experience and responsibilities grow, the Pay Teachers Act would significantly increase federal investments in teachers and public schools, including tripling Title I-A funding and funding for rural education programs, diversifying and expanding the teacher pipeline, and strengthening leadership and advancement opportunities for educators.
    “Sen. Sanders’s bill, the Pay Teachers Act, will help close the pay gap by significantly increasing federal investments in public schools and raising annual teacher salaries to at least $60,000—as well as providing increases throughout teachers’ careers—to help ensure they are paid a livable and competitive salary,” said AFT President Randi Weingarten. “It would also invest in the teacher pipeline and leadership opportunities. This is a crucial federal investment to help sustain the teaching profession, which will directly help us provide greater opportunities to our students. At a time when others are abandoning public schools and our students, Sen. Sanders is proposing a necessary strategic remedy that will help attract teachers to the profession and retain them.”
    “Across the country, most of us across race, place and background want the same thing – strong public schools where every student can thrive and strong communities that support them. In order to attract and retain the passionate, qualified educators that inspire our students, give them the one-on-one support, and do everything in their power to help each student succeed, we need to pay teachers like the professionals they are. America’s educators applaud Sen. Bernie Sanders for introducing the Pay Teachers Act, which takes steps to ensure that our nation’s committed public school educators and educator support personnel receive professional recognition, including appropriate pay while also augmenting the current federal programs that support the educator pipeline. We urge Senators to support educators and cosponsor this common-sense legislation that invests in our students, educators, and public schools,” said NEA Vice President Princess Moss.
    The reintroduction of the Pay Teachers Act comes as the Trump administration continues to illegally withhold nearly $5.5 billion in critical funding for public education that was appropriated by Congress, including funds that states use to provide professional development for teachers and to pay teacher salaries. Sanders and his colleagues have repeatedly pushed for the administration to immediately release these funds.
    More than 30 organizations endorsed the Teacher Pay Act, including American Federation of Teachers, National Education Association, National PTA and The Education Trust.
    Read the bill text here.
    Read a summary of the bill here.

    MIL OSI USA News –

  • MIL-OSI USA: VIDEO: Ricketts Preserves the Good Life

    US Senate News:

    Source: United States Senator Pete Ricketts (Nebraska)
    WASHINGTON, D.C. – Yesterday, during his weekly press call with Nebraska media, U.S. Senator Pete Ricketts (R-NE) discussed the One Big Beautiful Bill and his work to deliver results that matter for Nebraska families.
    Watch the video here.
    “Nebraska is what America is supposed to be,” said Ricketts.  “We believe in hard work.  We provide for our families and take care of our communities.  We defend our freedom.  The One Big Beautiful Bill reflects those values and delivers results where they matter most.”
    TRANSCRIPT:
    Senator Ricketts: “Nebraska is what America is supposed to be. 
    “We believe in hard work. 
    “We provide for our families and take care of our communities. 
    “We defend our freedom. 
    “The One Big Beautiful Bill reflects those values and delivers results where they matter most.  
    “Nebraska workers were under pressure after years of inflation, overregulation, and rising costs as a result of the Biden administration. 
    “This bill fights back with historic tax relief and educational opportunities. 
    “It helps Nebraskans keep more of what they earn and protects Nebraska values.   
    “President Trump and Congressional Republicans are determined to put money back into Americans’ pockets. 
    “The most essential relief helps workers making less than $50,000 a year. 
    “The One Big Beautiful Bill eliminates federal tax on tips up to $25,000 per year. 
    “The no tax on overtime provision provides a deduction of up to $12,500. 
    “Just last week, I was flying out from Nebraska to D.C. when a TSA officer stopped me and thanked me for no tax on overtime.
    “In fact, he even asked if we could make that permanent. 
    “But the no tax on overtime isn’t just for the TSA—it’s for nurses, factory workers, police officers, and servers. 
    “It’s for all of the jobs that keep Nebraska and this country safe and running.   
    “This tax cut is for all jobs that sometimes require workers to give a little more and work a little harder.  
    “We are rewarding their sacrifice. 
    “Without this bill, the average Nebraska family would have seen a hike of $2,400 in taxes.
    “That’s $2,400 that Nebraskans can continue to spend on groceries, utilities, or saving toward a family vacation. 
    “The Biden administration punished hard-working Americans with inflation and wasted taxpayer dollars. 
    “The One Big Beautiful Bill helps Americans save taxes and lays the groundwork for decades of economic growth. 
    “It preserves the good life.  
    “The bill is a win for Nebraska families. 
    “The Child Tax Credit was increased to $2,200. 
    “The child and dependent care tax credit increases the maximum credit rate from 35% to 50%.
    “It’s combined with enhancement of the dependent care assistance program, which excludes up to $7,500 of dependent care assistance expenses from income each year.   
    “That is up from a previous limit of $5,000. 
    “Finding affordable and reliable childcare can be a challenge all across our state for working parents. 
    “With this bill, employers can now offer families more support without raising their workers’ costs. 
    “The employer-provided childcare credit was expanded from $150,000 to $500,000 and a new $600,000 childcare credit was created for small businesses. 
    “This will encourage more businesses to invest in childcare for their workers. 
    “The One Big Beautiful Bill gives families educational freedom and fixes how students are paying for higher education. 
    “American families now have the opportunity to choose the education that fits their children best. 
    “The bill creates a new tax credit of up to $1,700 for donations to scholarship-granting organizations that help K through 12 students access better educational opportunities. 
    “One of my priorities in this bill is the extension of Pell Grant eligibility to short-term, high-quality job training programs. 
    “This is a proven Nebraska solution I led when I was Governor. 
    “When I was Governor, we supported programs like the Nebraska Youth Registered Apprenticeship Program. 
    “We encouraged students to join the Registered Apprenticeship program and increased participation. 
    “We also started the Developing Youth Talent Initiative to connect young Nebraskans with learning opportunities in their schools about what careers they may want to choose in the future.
    “These give young people the opportunity to combine academic and technical experience with work experience.  
    “This gave Nebraska youth the foundation to choose from several pathways—to enroll in college, begin full-time employment, or combine work with training.   
    “Now, a young Nebraskan in Scottsbluff interested in welding or mechanics can qualify for federal financial aid and go to work, for example, at Aulick Industries. 
    “The bill also provides exemptions for agriculture-related assets, like farmland and combines, from FAFSA calculations. 
    “This means that farm families across the state, from Dawson to Dawes counties, aren’t going to be penalized when seeking financial aid for higher education. 
    “The bill simplifies repayment plans and caps runaway borrowing. 
    “It holds colleges accountable for leaving students with burdensome debt. 
    “Federal loans can no longer fund programs where graduates are earning less than someone with a high school diploma. 
    “Now that is common sense education policy.    
    “The One Big Beautiful Bill defends Nebraska’s values. 
    “It supports families. 
    “It encourages hard work and smart education. 
    “These are wins we promised and wins we delivered. 
    “This is how we fight for Nebraska. 
    “This is how we preserve the good life.” 

    MIL OSI USA News –

  • MIL-OSI Security: Security News: Arizona Woman Sentenced for $17M Information Technology Worker Fraud Scheme that Generated Revenue for North Korea

    Source: United States Department of Justice

    An Arizona woman was sentenced today to 102 months in prison for her role in a fraudulent scheme that assisted North Korean Information Technology (IT) workers posing as U.S. citizens and residents with obtaining remote IT positions at more than 300 U.S. companies. The scheme generated more than $17 million in illicit revenue for Chapman and for the Democratic People’s Republic of Korea (DPRK or North Korea).

    Christina Marie Chapman, 50, of Litchfield Park, Arizona, pleaded guilty on Feb. 11 in the District of Columbia to conspiracy to commit wire fraud, aggravated identity theft, and conspiracy to launder monetary instruments. In addition to the 102-month prison term, U.S. District Court Judge Randolph D. Moss ordered Chapman to serve three years of supervised release, to forfeit $284,555.92 that was to be paid to the North Koreans, and to pay a judgment of $176,850.

    “Christina Chapman perpetrated a years’ long scheme that resulted in millions of dollars raised for the DPRK regime, exploited more than 300 American companies and government agencies, and stole dozens of identities of American citizens,” said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division. “Chapman made the wrong calculation: short term personal gains that inflict harm on our citizens and support a foreign adversary will have severe long term consequences.  I encourage companies to remain vigilant of these cyber threats, and warn individuals who may be tempted by similar schemes to take heed of today’s sentence.”

    “North Korea is not just a threat to the homeland from afar. It is an enemy within. It is perpetrating fraud on American citizens, American companies, and American banks. It is a threat to Main Street in every sense of the word,” said U.S. Attorney Jeanine Ferris Pirro for the District of Columbia. “The call is coming from inside the house. If this happened to these big banks, to these Fortune 500, brand name, quintessential American companies, it can or is happening at your company. Corporations failing to verify virtual employees pose a security risk for all. You are the first line of defense against the North Korean threat.”

    “The North Korean regime has generated millions of dollars for its nuclear weapons program by victimizing American citizens, businesses, and financial institutions,” said Assistant Director Rozhavsky of the FBI’s Counterintelligence Division. “However, even an adversary as sophisticated as the North Korean government can’t succeed without the assistance of willing U.S. citizens like Christina Chapman, who was sentenced today for her role in an elaborate scheme to defraud more than 300 American companies by helping North Korean IT workers gain virtual employment and launder the money they earned. Today’s sentencing demonstrates that the FBI will work tirelessly with our partners to defend the homeland and hold those accountable who aid our adversaries.”

    “The sentencing today demonstrates the great lengths to which the North Korean government will go in its efforts and resources to fund its illicit activities. The FBI continues to pursue these threat actors to disrupt their network and hold those accountable wherever they may be,” said Special Agent in Charge Heith Janke of the FBI Phoenix Field Office.

    “Today’s sentencing brings justice to the victims whose identities were stolen for this international fraud scheme,” said Special Agent in Charge Carissa Messick of the IRS Criminal Investigation (IRS-CI) Phoenix Field Office. “The scheme was elaborate. If this sentencing proves anything, it’s that no amount of obfuscation will prevent IRS-CI and our law enforcement partners from tracking down those that wish to steal the identities of U.S. nationals, launder money, or engage in criminality that jeopardizes national security.”

    The case involved one of the largest North Korean IT worker fraud schemes charged by the Department of Justice, with 68 identities stolen from victims in the United States and 309 U.S. businesses and two international businesses defrauded.

    According to court documents, North Korea has deployed thousands of highly skilled IT workers around the world, including to the United States, to obtain remote employment using false, stolen, or borrowed identities of U.S. persons. To circumvent controls employed by U.S. companies to prevent the hiring of illicit overseas IT workers, the North Korean IT workers obtain assistance from U.S.-based collaborators.

    Chapman helped North Korean IT workers obtain jobs at 309 U.S. companies, including Fortune 500 corporations. The impacted companies included a top-five major television network, a Silicon Valley technology company, an aerospace manufacturer, an American car maker, a luxury retail store, and a U.S media and entertainment company. Some of the companies were targeted by the IT workers, who maintained a repository of postings for companies that they wanted to employ them. The IT workers also attempted to obtain employment at two different U.S. government agencies, although these efforts were generally unsuccessful.

    Chapman operated a “laptop farm” where she received and hosted computers from the U.S. companies at her home, deceiving the companies into believing that the work was being performed in the United States. Chapman also shipped 49 laptops and other devices supplied by U.S. companies to locations overseas, including multiple shipments to a city in China on the border with North Korea. More than 90 laptops were seized from Chapman’s home following the execution of a search warrant in October 2023.

    Christina Chapman organized and stored U.S. company laptops in her home, and included notes identifying the U.S. company and identity associated with each laptop.

    Much of the millions of dollars in income generated by the scheme was falsely reported to the IRS and Social Security Administration in the names of actual U.S. individuals whose identities had been stolen or borrowed. Additionally, Chapman received and forged payroll checks in the names of the stolen identities used by the IT workers and received IT workers’ wages through direct deposit from U.S. companies into her U.S. financial accounts. Chapman further transferred the proceeds from the scheme to individuals overseas.

    This case was investigated by the FBI Phoenix Field Office, and the IRS-CI Phoenix Field Office. Assistance was provided by the FBI Chicago Field Office.

    Trial Attorney Ashley R. Pungello of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Karen P. Seifert for the District of Columbia prosecuted the case, with assistance from Paralegal Specialist Jorge Casillas. Assistant U.S. Attorney Joshua Rothstein for the District of Columbia, the Victim Witness Unit, the U.S. Attorney’s Office for the District of Arizona, and the National Security Division’s National Security Cyber Section also provided assistance.

    ***

    In a coordinated effort, FBI Phoenix also issued guidance for HR professionals on detecting North Korean IT workers, and the Department of State issued guidance on the North Korean IT worker threat.

    Prior guidance was issued by the FBI, State Department, and the Department of the Treasury on this threat in a May 2022 advisory, and by the United States and the Republic of Korea (South Korea) in October 2023. The FBI issued updated guidance in May 2024 regarding the use of U.S. persons acting as facilitators by providing a U.S.-based location for U.S. companies to send devices and a U.S.-based internet connection for access to U.S. company networks and in January 2025 concerning the extortion and theft of sensitive company data by North Korean IT workers, along with recommended mitigations.

    MIL Security OSI –

  • MIL-OSI Security: Defense News in Brief: Navy Aims to Harness Innovation, Modernize Fleet Capabilities

    Source: United States Department of Defense

    Years of shrinking fleet size, diminished shipbuilding capacity and on-time repair delivery are persistent challenges for the Navy and the nation, said Navy Adm. Daryl L. Caudle, who spoke at a Senate Armed Services Committee nomination hearing in Washington.

    MIL Security OSI –