MIL-Evening Report: When it comes to health information, who should you trust? 4 ways to spot a dodgy ‘expert’

Source: The Conversation (Au and NZ) – By Hassan Vally, Associate Professor, Epidemiology, Deakin University

When it comes to our health, we’re constantly being warned about being taken in by misinformation. Yet for most of us what we believe ultimately comes down to who we trust, including which “experts” we trust.

The problem is that not everyone who presents themselves as an expert is actually an expert. And an expert in one area isn’t necessarily an expert in everything.

The reality is that we often rely on superficial cues to decide who to trust. We’re often swayed by how confidently someone speaks, their perceived authority, or how compelling their story sounds. For some, it’s simply the loudest voice that carries the most weight.

Even if we feel we have some understanding of science, few of us have the time or the capacity to verify every claim made by every so-called “expert”.

So how can we distinguish credible experts from those that are not? Here are four things I look out for.

1. Dodgy experts don’t acknowledge uncertainty

One thing that separates trustworthy experts from dodgy ones, is their humility. They have a healthy respect of the limitations of science, the gaps in the evidence, and even the limitations of their own expertise.

And importantly, they communicate this clearly.

In contrast, one of the most common characteristics of the dodgy expert is they are misleadingly certain. They often present issues in overly simplistic, black-and-white terms, and they draw conclusions with misplaced confidence.

This, of course, is part of their appeal. A neat clear-cut message that downplays uncertainty, complexity and nuance can be persuasive – and often even more persuasive than a messy but accurate message.

One of the clearest examples of unfounded certainty was the confident claim by some “experts” early in the pandemic that COVID was no worse than the flu, a conclusion which ignored uncertainties in the emerging data.

2. The dodgy experts doesn’t strive to be objective

Credible experts follow a well-established and disciplined approach when communicating science. They present their understanding clearly, support it with evidence, and endeavour to remove emotion and bias from their thinking.

A core principle of scientific thinking is striving for objectivity – and language reflects this. Experts generally aim to provide high-quality information to assist the public to make informed decisions for themselves, rather than manipulating them to reach specific conclusions.

Dodgy experts often rely on overly emotional language, inject political agendas, or resort to personal attacks against critics in order to elicit strong emotions. This is a powerful tool for manipulating opinions when the evidence is lacking.

One of the most harmful examples of this is the use of emotional testimonials by dodgy experts who claim people have “beaten cancer naturally”, offering false hope and often leading patients to abandon proven treatments.

3. Dodgy experts cherry-pick evidence

Despite what those seeking to mislead you would have you believe, scientists only reach consensus when a large body of high-quality evidence points in the same direction.

So one of the most crucial skills experts possess is the ability to critically evaluate evidence. That means understanding its strengths and weaknesses, assessing its reliability, and synthesising what the full evidence base indicates. This task requires a deep understanding of their area of expertise.

Dodgy experts don’t do this. They tend to dismiss inconvenient evidence that contradicts their narrative and readily embrace flawed, or even discredited, studies. In short: they often cherry-pick evidence to suit their position.

Unfortunately, this tactic can be hard to spot if you don’t have an understanding of the full evidence base, which is something dodgy experts exploit.

Scientists only reach consensus when a large body of evidence points in the same direction.
Matej Kastelic/Shutterstock

A red flag that you are being misled by a dodgy expert is when there is a clear over-reliance on a single study, despite its low quality.

Perhaps the most well-known example of cherry-picking is the way dodgy experts rely on a single, discredited study to push the false claim that the MMR (measles, mumps and rubella) vaccine causes autism, while ignoring the vast body of high-quality evidence that clearly shows no such link.

4. Dodgy experts don’t change their mind when the evidence changes

Dodgy experts are often rigidly attached to their beliefs, even when new evidence emerges.

In contrast, genuine experts welcome new evidence and are willing to change their views accordingly. This openness is often unfairly portrayed as weakness, but it reflects an expert’s desire to understand the world accurately.

A striking example of this is the shift in our understanding of stomach ulcers. For years, ulcers were blamed on stress and spicy food, but that changed when Australian gastroenterologist and researcher Barry Marshall, in a bold move, swallowed Helicobacter pylori to demonstrate its potential role.

His self-experiment (which is generally not recommended!) was the first step in a broader body of research that ultimately proved bacteria, not lifestyle, was the primary cause of ulcers. This ultimately led to Marshall and his colleague pathologist and researcher Robin Warren being awarded a Nobel Prize.

As this example highlights, when presented with the evidence, clinicians and scientists acknowledged they’d got the underlying cause of stomach ulcers wrong. Clinical practice subsequently improved, with doctors prescribing antibiotics to kill the ulcer-causing bacteria.

This is how science informs practice so we can continually improve health outcomes.

In a nutshell

True expertise is marked by intellectual humility, a commitment to high-quality evidence, a willingness to engage with nuance and uncertainty, flexibility, and a capacity to respectfully navigate differing opinions.

In contrast, dodgy experts claim to have all the answers, dismiss uncertainty, cherry-pick studies, personally attack those who disagree with them, and rely more on emotion and ideology than evidence.

Hassan Vally does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

– ref. When it comes to health information, who should you trust? 4 ways to spot a dodgy ‘expert’ – https://theconversation.com/when-it-comes-to-health-information-who-should-you-trust-4-ways-to-spot-a-dodgy-expert-253437

MIL OSI Analysis – EveningReport.nz –

May 1, 2025

MIL-OSI USA: Commencement Student Speaker Spotlight: Daniella Dennis

Source: US State of Connecticut

Meet Daniella Dennis of New Britain. Her parents were born and raised in Jamaica and immigrated to America in the late 1990s. The youngest of four siblings, her mother as a Certified Nursing Assistant introduced her to the medical field. Before matriculating at UConn School of Medicine she was an EMT and a patient care technician during the COVID-19 pandemic. After graduation, she will be entering emergency medicine residency at UConn and will be a proud first-generation college graduate and first doctor in her family. Her advice to all students: no matter what stage you are at, you can never have too many mentors.

Why did you choose the UConn School of Medicine?

I was born and raised in Connecticut so UConn growing up was a dream school for me. Something I’ve loved about UConn is its Team Based Learning curriculum which makes it very unique compared to other medical schools and its cohesiveness between faculty and students.

Tell us more about your path to medical school.

After New Britain High School, I attended Central Connecticut State University where I was a biomolecular science major with a minor in community engagement and graduated in 2018. Following graduation, I took two gap years where I worked as an EMT and as a patient care tech over at Hartford Hospital and then matriculated at the University of Connecticut School of Medicine in the fall of 2021.

What activities were you involved with as a student?

I was involved in a multitude of different leadership positions including being secretary of the Student National Medical Association, a part of the Gold Humanism Society, in various surgical student groups and participated as a mentor as part of the Health Career Opportunities Programs — a pipeline program created by Dr. Marja Hurley here at UConn Health that helps students from high school who come from underrepresented backgrounds including those who are first-generation college students to be able to get into college and then furthermore get into medical and dental school.

What’s one thing that surprised you about UConn?

How willing faculty are open to listening to student feedback and always looking for different ways to improve the curriculum and always looking for other new ways to improve student wellness.

What’s one thing every student should do during their time at UConn?

One of my favorite events that UConn has every single year is Culture Shock which is run in collaboration with the Student National Medical Association, the Latino Medical Association, and the Student National Dental Association. Culture shock is essentially our version of a school-wide talent show where we have students showcase their various talents and their cultures and most importantly it’s a great time to have the entire student body and faculty be around for a great night of celebration. The event raises money for various charities within the Greater Hartford Area. This event takes place every December and I’m glad to have been able to participate in Culture Shock and be able to attend the event every single year since my first year of medical school. I absolutely love seeing people in my class and even upper-class students be involved. Whether it’s my peers showcasing their singing skills, dancing, or most importantly the most famous part of the night is our fashion show where you get to showcase various pieces and clothing from your particular culture.

Who inspired you to enter health care?

It started with my mother who was a certified nursing assistant at a rehabilitation center and in elementary school after school I would visit her at work and be around various health care professionals including physicians, nurses, and physician assistants and I became very curious at that time at an early age about becoming a doctor. It wasn’t really until high school where we had a Health Academy that’s focused on helping students go into health care professionals that I really started to think more about becoming a physician. Furthermore I had a great relationship with my pediatrician growing up who became one of my first mentors in the field of medicine that I made the final decision to go to medical school after my sophomore year of college where during that summer between freshman and sophomore year I did a six-week program at Columbia University focused on first generation college students who were interested in going into health professional careers. During that program, I was able to shadow various physicians and different medical sub-specialties which really gave me the confidence and knowledge to go into medicine. From that experience I decided to go on the pathway of becoming a doctor and I’ve had a multitude of other great inspiration and mentors along the way that helped guide me on this path.

What are your plans after graduation?

I’ll be continuing my journey here at UConn as an Emergency Medicine resident physician.

What’s one thing that will always make you think of UConn?

The people! The faculty, friends, and mentors are what makes UConn have its collaborative feel and most importantly always making you feel comfortable and welcomed.

What does being a part of UConn mean to you?

I love being at UConn! Being at UConn feels at home. I think most importantly the reason that I love being here is that it feels like a community. I’m very thankful for my colleagues who’ve helped me throughout my entire medical school time. I really do love the faculty who also have been very supportive and very attentive to student wellness. These are the characteristics and traits that I want to continue to have as I transition in the next part of my journey of becoming a resident.

What’s it going to be like to walk across the Commencement stage and get your degree?

It’s going to be a huge accomplishment for me, especially in my case being a first-generation college student and now to be the first person in my family to become a doctor. It’s going to be an amazing accomplishment to share this moment with friends and family watching me on the stage and I’m super thankful for their support in terms of this entire journey to be able to get to this point.

Any final words of wisdom for incoming students?

Get involved and explore as early as you possibly can and most importantly you can never have too many mentors there’s always something that you can learn and grow from someone no matter what field that they come from. Always take advantage of the ability to ask for help.

MIL OSI USA News –

May 1, 2025

MIL-OSI Global: China is reshaping central Asia’s energy sector as Russian influence fades

Source: The Conversation – UK – By Lorena Lombardozzi, Senior Lecturer in Political Economy of Global Development, SOAS, University of London

China has been developing closer ties with countries in central Asia over recent years. Trade between China and the central Asia region grew to US$89 billion (£69 billion) in 2023, an increase of 27% on the previous year. Chinese trade rose with every country there except Turkmenistan.

In my paper from June 2024, which is part of a collection of studies looking at the impact of China’s sprawling belt and road initiative in low- and middle-income countries, I explored how Chinese investment is affecting Uzbekistan’s energy sector.

Chinese investment in Uzbekistan has grown significantly since 2020. By the end of 2022, it had reached US$4.5 billion, up from US$2.8 billion one year before. There are now over 3,450 Chinese companies in Uzbekistan, accounting for roughly 20% of all foreign companies in the country.

One of the main reasons for China’s expanding footprint in central Asia is to intensify energy cooperation. By becoming a major buyer, lender and investor in the region’s energy sector, China is hoping to reduce its dependence on countries such as Russia.

Central Asia is a region of Asia consisting of Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan.
Peter Hermes Furian / Shutterstock

Central Asia has been politically and economically dependent on Russia since the Soviet Union invaded the region in the 19th century. Much of its infrastructure was built to provide commodities like cotton and energy to Russia, with the latter selling it at high prices to Europe. This infrastructure has, until relatively recently, remained largely unchanged.

However, some central Asian countries have been able to reduce their dependence on Russia over the past decade or so. China has become the main importer of Uzbek gas, with a peak share of more than 80%. And Uzbekistan exported almost US$2 billion worth of goods to China in 2022, matching its volume of trade with Russia.

Investment in energy infrastructure is taking place in a reflection of these trade patterns. Central Asia boasts significant reserves of oil and gas. But most of the region’s pipelines were traditionally directed towards Russia and, to a lesser extent, south-west to Turkey.

Pipelines have been built and maintained with China’s support that are directed towards the east. These pipelines have facilitated trade with China and have helped reduce operational waste in the energy sectors of Turkmenistan, Kazakhstan and Uzbekistan.

In 2025, China plans to resume the construction of a pipeline stretching from Turkmenistan through Uzbekistan, Tajikistan and Kyrgyzstan, pending the finalisation of a gas supply contract with Turkmenistan. This will further strengthen China’s energy ties with the region.

A few years ago, while I was carrying out fieldwork in Uzbekistan, I interviewed policy experts and those involved in the Uzbek energy industry. My interviewees saw deals with China as more reliable than Russia, which has in the past renegotiated the terms of long-term energy contracts with central Asian countries or has added unfair clauses in its favour.

In 2018, for example, the Uzbek government needed additional gas to meet domestic demand. Russia’s Lukoil energy company agreed to sell the gas from a joint Lukoil-Uzbek production facility to Uzbekistan, but at a hefty price. The Uzbek government incurred debt to Lukoil worth US$600 million.

A train transporting gas parked in Samarkand train station, Uzbekistan.
Lewis Tse / Shutterstock

Chinese involvement in the Uzbek energy sector is also having an indirect effect on Uzbekistan’s green economy. During the pandemic, Uzbekistan’s gas exports to China dropped significantly, exposing operators to the vulnerability of relying on a single energy source.

Gas exports to China have recovered since 2021. But this shock prompted policymakers to explore ways of diversifying Uzbekistan’s energy production away from fossil fuels. Over the past few years, Uzbekistan has invested over US$4 billion in renewable energy production, with the technology and expertise often coming from China.

With the support of Chinese companies, vast solar power plants have been planned and developed near the Uzbek capital, Tashkent, as well as other cities like Navoi. Wind turbines have been supplied by Chinese firms for projects in Ferghana, near the border with Kyrgyzstan.

Chinese-led investment in the renewable energy sector has created further demand for skilled and semi-skilled labour, such as translators, logistics operators and engineers. My interviewees noted positive – albeit limited – effects on employment and wages in the sector.

New challenges ahead

There are, however, also drawbacks to Chinese involvement in central Asia’s energy sector. Uzbekistan’s gas trade with China is a possible source of political and economic vulnerability.

The export price of Uzbek gas is more profitable for energy companies than the local subsidised price, so exports have taken priority over the domestic market. Uzbek consumers often have to contend with rationed gas supplies or no access to gas at all, especially during the winter when demand is at its highest.

This has led to dissatisfaction among the Uzbek population, especially in rural areas where people have had to resort to burning alternative sources of fuel like coal, firewood and animal dung. These energy sources are harmful to health and the environment.

Western sanctions on Russian oil and gas since 2022, when Russia launched its invasion of Ukraine, have also created further competition for Uzbek gas. Russian gas suppliers have sought alternative markets in Asia to circumvent the sanctions. Trade flow data shows that India, Turkey and even China have increased the amount of Russian fossil fuels they buy.

But, by and large, the state of play in the global energy market seems to be changing. Central Asia is in a strong position to benefit.

Lorena Lombardozzi does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

– ref. China is reshaping central Asia’s energy sector as Russian influence fades – https://theconversation.com/china-is-reshaping-central-asias-energy-sector-as-russian-influence-fades-245232

MIL OSI – Global Reports –

May 1, 2025

MIL-OSI USA: Beyer On GDP Report: ??“The Economic Warning Lights Are All Flashing Red”??

Source: United States House of Representatives – Representative Don Beyer (D-VA)

Congressman Don Beyer (D-VA), who serves as the Senior House Democrat on Congress’ Joint Economic Committee, today reacted to the U.S. Bureau of Economic Analysis (BEA) release of its advance estimate for the gross domestic product (GDP) in the first quarter (Q1) of 2025. BEA found that: “Real gross domestic product (GDP) decreased at an annual rate of 0.3 percent in the first quarter of 2025… In the fourth quarter of 2024, real GDP increased 2.4 percent.”

Beyer said:

“Trump’s chaos is clearly and significantly raising the risk of a recession, and the economic warning lights are all flashing red.

“The economy just shrank in the first three months of Trump’s presidency, after years of growth and a strong previous quarter. This GDP report also showed inflation rising, and all of this is before we even begin to see the worst impacts of Trump’s tariffs. Private sector hiring in April declined sharply, consumer confidence fell to its lowest point in three decades, and consumer expectations for the near-term economic performance are worse than they were at any point of the pandemic. Trump just had the worst stock market performance to start a presidency in over 50 years. Recession odds from economists and forecasters paint an increasingly grim picture.

“The economic news is so bad that Trump is trying to distance himself from his own economic performance and blame others for an economy he declared, upon being sworn in 100 days ago, would ‘flourish’ ‘from this day forward.’ Even his own supporters will not believe these flimsy excuses. Trump inherited a strong economy and is running it into the ground with stupid and disastrous tariffs, as Republicans in Congress refuse to stop him.”

MIL OSI USA News –

May 1, 2025

MIL-OSI Global: From COVID to cancer: Why Canada’s RNA vaccine leadership matters more than ever

Source: The Conversation – Canada – By Anna Blakney, Assistant Professor, Michael Smith Laboratories and School of Biomedical Engineering, University of British Columbia

As the world marks World Immunization Week, attention turns once again to the lifesaving power of vaccines.

Amid headlines about rising cases of measles, falling vaccination rates and growing vaccine hesitancy, a quieter revolution is underway — one that could fundamentally reshape how we respond to global health threats, including pandemics and cancer.

This revolution is being powered by RNA technology — and Canada is uniquely positioned to lead it.

A made-in-Canada breakthrough

While the swift development of COVID-19 vaccines appeared to be a sudden scientific triumph, it was built on six decades of foundational work. Much of that work happened in Canada. Messenger RNA (mRNA) are large, negatively charged molecules that are easily degraded and repelled by our cells.

To coax our cells to internalize them, scientists developed a way to encapsulate them in “fat bubbles” or lipid nanoparticles (LNPs), which were invented by Pieter Cullis and collaborators. Cullis, a co-author of this article, is a professor in biochemistry and molecular biology at the University of British Columbia.

Once inside a patients’ cells, the mRNA gives the cell instructions to translate a viral protein that triggers an immune response. Both the Pfizer/BioNTech and Moderna vaccines — which relied on these fat bubbles — were found to be highly efficacious (more than 94 per cent) and safe, both in initial trials and continuous monitoring over time. They were estimated to have saved nearly 10 million lives in 2021 alone.

That’s just the beginning. Research teams across the country are now building on this homegrown innovation to expand the potential of RNA vaccines beyond infectious diseases.

The next generation: Less means more

At the University of British Columbia, the Blakney Lab is focused on developing vaccines and therapies using self-amplifying RNA (saRNA), a technology that offers several advantages over conventional mRNA. Because saRNA replicates itself once inside a patient’s cells, much smaller doses are needed to produce a robust immune response.

Now, this replication process may sound like something out of a science fiction film, but similar to mRNA vaccines, this technology has been developed over decades and has been thoroughly clinically validated. The saRNA technology reduces manufacturing costs and makes vaccine production more scalable during global emergencies. Notably, the lower dose can also minimize side effects, potentially reducing the risk of getting a sore arm or having to miss a day of work after vaccination.

Recent pre-clinical studies have shown that saRNA vaccines can offer longer-lasting immunity with smaller doses, and multiple clinical trials are now underway to evaluate their use for influenza, Zika virus and even cancer.

Vaccine equity, health security, economic growth

Expanding Canada’s domestic RNA vaccine capacity is more than just a scientific priority; it’s a public health imperative and economic opportunity. During the COVID-19 pandemic, global supply chain breakdowns exposed the risks of relying on international sources for essential vaccine ingredients and production. Investing in local infrastructure allows for faster and more flexible responses to future outbreaks.

But it’s not just about pandemic readiness. One of the most exciting frontiers for RNA technology is the development of personalized cancer vaccines. These vaccines train the immune system to recognize and attack mutations specific to an individual’s tumour.

In early clinical trials, mRNA-based cancer vaccines — such as those developed by Moderna and BioNTech — have shown promising results, dramatically reducing recurrence rates in melanoma and pancreatic cancer patients.

Canada’s scientific ecosystem is primed to contribute meaningfully to this next generation of therapies. Strengthening our biotech infrastructure could create high-quality jobs, stimulate economic growth and reinforce Canada’s place as a leader in the global bioeconomy.

From crisis to capacity

The COVID-19 pandemic showed us how rapidly science can enable positive public health outcomes — and how easily inequities can widen if infrastructure and access aren’t prioritized.

Despite being home to world-class researchers, Canada lacked the manufacturing capacity to produce its own mRNA vaccines. That gap is now being addressed through substantial recent investments from the government of Canada, but sustaining momentum will require long-term commitment from policymakers and funders.

Equity must also remain at the forefront. Communities in rural, remote and Indigenous regions often face barriers to accessing vaccines — not because of hesitancy, but due to logistical challenges and under-resourced health systems. The Public Health Agency of Canada has emphasized the importance of building trust and tailoring solutions in partnership with these communities.

Vaccine confidence remains another challenge. Post-pandemic surveys reveal that misinformation continues to shape public perceptions, even about long-established vaccines like MMR. Addressing this requires proactive science communication, sustained public education and rebuilding trusted relationships between communities and health systems.

Looking ahead

World Immunization Week offered a chance to celebrate how far we’ve come — but also to ask what comes next. With decades of research leadership, a strong innovation ecosystem and new investments in RNA infrastructure, Canada has the tools to lead the next chapter of mRNA technology development.

Whether it’s fighting the next virus or personalizing cancer therapies for individual patients, RNA technologies hold transformative promise. Seizing this opportunity will require sustained support, policy alignment and a focus on equitable access.

By investing in RNA innovation today, Canada can deliver not just vaccines, but a healthier, more resilient future for all.

Immunity and Society is a new series from The Conversation Canada that presents new vaccine discoveries and immune-based innovations that are changing how we understand and protect human health. Through a partnership with the Bridge Research Consortium, these articles — written by academics in Canada at the forefront of immunology and biomanufacturing — explore the latest developments and their social impacts.

Anna Blakney sits on the scientific advisory board and/or consults for Genvax Technologies, Replicate Biosciences and Pasture Biosciences. She receives funding from CIHR, CBRF, NSERC and CFI.

Pieter Cullis a co-founder and have shares in Acuitas Therapeutics, the company that provided the LNP enabling the Pfizer/BioNTech COVID-19 vaccine. He receives funding from CIHR.

– ref. From COVID to cancer: Why Canada’s RNA vaccine leadership matters more than ever – https://theconversation.com/from-covid-to-cancer-why-canadas-rna-vaccine-leadership-matters-more-than-ever-254692

MIL OSI – Global Reports –

May 1, 2025

MIL-OSI Global: Boat wakes aren’t just a nuisance, they harm freshwater shorelines and wildlife

Source: The Conversation – Canada – By Chris Houser, Professor in Department of Earth and Environmental Science, and Dean of Science, University of Waterloo

After long winters, Canadians love their summers. For some, that means summer vacations by a lake, along a river or on a bay for some much-needed rest and relaxation. For some, it’s time to disconnect at the dock, while for others it’s a time to cruise the lake or enjoy the thrill of water-skiing, tubing and wake-boarding.

Over the last decade, there’s been a strong growth in the sale of new and pre-owned motorboats, and in particular, wake boats that are designed to generate large wakes.

While recreational boating is a multi-billion-dollar industry in Canada, and enjoyed by many — including me — there has been increasing concern among cottage owners and other advocacy groups about the impact of the wakes generated by these boats.

Recreational boat wake and jet ski jumping wakes in cottage country in Ontario. (Chris Houser)

There is increasing evidence that boat wakes erode the shoreline, disrupt aquatic ecosystems, degrade water quality and pose a safety hazard to those at the shoreline or also on the water.

Stronger than waves

In Ontario’s cottage country, boat wakes represent a significant portion of total wave energy.

Except for lakes where motorboats are restricted, the energy generated by wakes is greater than the energy of the waves generated by winds. The exact amount depends on the size, shape and depth of the body of water, but recent research I conducted with colleagues suggests wakes can account for up to 90 per cent of the total wave energy in small lakes with widths up to five kilometres.

One respondent to our survey noted that:

“The shore is eroding. I’m losing land and trees into the water. The water is more murky than ever before and the constant large waves makes it unsafe for my kids to swim at times.”

Wakes not only represent an increase in the number of waves, but they are also responsible for waves of greater height and energy, particularly those generated by wake boats. The smaller the lake, the greater the wake energy at the shoreline, but it is also larger along rivers, lake arms and in bays due to the types and frequency of boating in those areas.

There is limited impact along rocky shorelines, our research has found, but change can occur where the shorelines are muddy or sandy and the water is shallow.

Just like large storm waves, wakes can erode the shoreline and uproot and undermine shoreline vegetation. The resuspension of bottom sediment and organic material can also degrade water quality and clarity, leading to the development of algae blooms and hypoxia and the dispersion of contaminants.

“We have boats that are enhanced for sale surfing and our lake is not wide enough or deep enough to handle the energy generated by the wakes that are produced by these boats. We have parts of our lake that are less than 20 metres wide and less than eigth feet deep, and these boats are generating cut-outs on the bottom of the lake bed, which of course stirs up silt from the floor bed and harms water clarity.” A cottager on Fairy Lake, north of Toronto.

Dangers to loons, fish, docks and people

The turbulence can also disturb loon nests and fish spawning in shallow water by destroying nests, washing away eggs and displacing juvenile fish, leading to reduced reproductive success.

“It is not a coincidence we have not had loons nesting on our point for 10 years since our channel became a busy wake-surfing mecca.” A cottager on Lake Joseph, north of Toronto.

In our research, residents and cottage owners also raised concerns that wakes cause damage to shoreline infrastructure and docked vessels, leading to greater maintenance and repair costs. Large wakes can make it difficult for smaller slower boats to navigate safely, and at the shoreline, those waves pose a hazard to swimmers, who may be knocked off balance or even swept out by larger waves.

While studies suggest that wakes represent a significant portion of the wave energy on small lakes, there has been little actual documentation of impacts, and we discovered that there was little direct evidence of erosion. Most examples were extreme and highlighted potential hotspots of shoreline change associated with boat wakes.

“Our shoreline has eroded approximately six feet in the last 10 years, causing trees and shoreline to collapse into the lake.” A Lake Joseph cottager.

Most respondents to the survey identified boat operation, the experience of the operators and use of the lake by other users (for example, those fishing, swimming and relaxing) as the primary issues associated with wakes and boating in general. This is consistent with another recent study that found no evidence of shoreline erosion, but an increase in sediment resuspension and phosphorus availability.

Speed limits, no-wake zones

Further study is needed to determine when and where boat wakes are a physical and/or ecological stressor rather than simply being a disturbance to the peaceful cottage country scene.

Through these studies, it will be possible to implement appropriate speed limits and no-wake zones, limits to wakeboat use and improve education and awareness as the industry continues to improve hull designs to reduce the wake.

There is no doubt that the debate over the impact of boat wakes will continue this summer, but hopefully it won’t make our time on the dock this summer too rocky.

Chris Houser does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

– ref. Boat wakes aren’t just a nuisance, they harm freshwater shorelines and wildlife – https://theconversation.com/boat-wakes-arent-just-a-nuisance-they-harm-freshwater-shorelines-and-wildlife-251958

MIL OSI – Global Reports –

May 1, 2025

MIL-OSI Global: Trump seeks to reshape how schools discipline students

Source: The Conversation – USA – By F. Chris Curran, Associate Professor of Educational Leadership and Policy, University of Florida

School discipline has evolved over the years. Jose Luis Pelaez Inc/DigitalVision via Getty Images

The Trump administration is trying to reshape how schools discipline students – and alter the federal government’s role in the process.

On April 23, 2025, President Donald Trump issued an executive order suggesting schools have been using racially discriminatory discipline policies. It sets in motion new federal guidance that would reverse policies supported by the Obama and Biden administrations aimed at reducing racial disparities in how Black children and other students of color are disciplined in school.

I believe the order could have far-reaching consequences and is likely to prompt pushback and legal challenges. As a researcher who studies school discipline, I can explain why this is happening and what it means for schools and students.

Local control, federal influence

School discipline has historically been locally controlled, though federal law does mandate a few disciplinary responses, such as expulsion for possessing firearms. School boards create codes of conduct. School principals and teachers make and enforce rules.

However, federal guidance over the past decade has increasingly shaped these local decisions.

In 2014, for example, the U.S. departments of Education and Justice issued guidance to reduce racial disparities in school discipline. This Obama-era letter suggested that higher rates of discipline for racial minorities could be evidence of discrimination. The guidance signaled how the U.S. Department of Education would interpret federal law and what might be cause for federal investigation.

In the following years, schools reduced suspensions and adopted alternatives such as restorative practices, which focus on talking through and repairing harm instead of removing students from the classroom. But some people saw this as a weakening of school discipline. Politicians and policy advocates even claimed that these changes in discipline contributed to school shootings.

Even though the guidance was rescinded during the first Trump administration, the federal government continued to investigate disparities in discipline. And without alternative guidance, many schools continued practices guided by the Obama-era policies.

These efforts to reduce disparities in school discipline continued under President Joe Biden, though without reinstating the Obama-era guidance.

In the return to schooling after COVID-19 shutdowns, however, schools grappled with reports of increasing student misbehavior. Nationally, almost 9 in 10 principals reported negative effects of the pandemic on student behavior.

At the same time, there were reports that some schools were not properly documenting serious misbehavior – hiding high or disparate rates of discipline. These problems created an opportunity for the Trump administration to push new federal guidance.

What Trump’s executive order does

Trump’s new executive order sets the stage for further federal influence over discipline policy and practices. Here’s a breakdown of what it contains.

First, the executive order states that schools should no longer focus on differences in rates of discipline across subgroups. It contends that doing so has led to schools failing to report incidents and making decisions based on students’ race rather than objective facts.

Next, the executive order calls on the secretary of education to develop new school discipline guidance for states and schools. It also calls for the secretary of education and attorney general to work with state leaders to reshape how their states can prevent racial discrimination in discipline.

Finally, the executive order requires a report on “the status of discriminatory-equity-ideology-based” school discipline. The order does not explicitly say what such discipline is, but it presumably includes alternatives to suspension and approaches that focus on considering race in disciplinary decisions.

The report is to provide model policies that the order claims will uphold “American values and traditional virtues” and provide examples of discipline not based on “equity ideology.”

Part of the report will also include an evaluation of past federal civil rights investigations and federal funding supporting organizations that promote discipline approaches deemed problematic under the new order. This addresses concerns that the threat of federal investigation over discipline disparities was used to influence schools’ discipline policies.

In short, the order suggests expanded federal involvement in school discipline. It does so despite noting that it is an “obvious conclusion” that “disciplinary decisions are best left in the hands of classroom teachers and administrators.”

Meaning of ‘discrimination’ in anti-DEI era

The executive order claims to provide “protections against racial discrimination” in school discipline. Interestingly, the policies Trump is seeking to undo were similarly intended to reduce racial disparities.

This seeming contradiction can be understood when the executive order is viewed against the backdrop of current education policy debates. A wide set of policies grounded in efforts of diversity, equity and inclusion and related topics have been at the forefront of debates over schooling in the past five years. From debates around “critical race theory” – the idea that racism is embedded in our social systems – to the content of school libraries, the “culture wars” are at the schoolhouse door.

It is no coincidence, then, that the executive order uses the term “discriminatory equity ideology” to describe discipline policies it prohibits.

I argue this reframing of DEI from diversity, equity and inclusion to discrimination illustrates that the new executive order is not just about school discipline. It is part of a bigger debate on the value and impacts of DEI and politicized contention over public schooling.

What order means for schools and students

In the short term, I believe educators will face much uncertainty. The executive order is vague. It does not name specific discipline policies that should be avoided or used.

But in the coming months, the executive order promises increased federal influence over school discipline. The full scope or impact of this is not yet clear. However, it is reasonable to expect that, just like other contested issues in education, there will be legal challenges and pushback in some locales.

In short, the “common sense” discipline reforms called for in the executive order are unlikely to be seen as common sense for everyone.

F. Chris Curran has received funding from the National Institute of Justice, the Bureau of Justice Assistance, the American Civil Liberties Union, and the American Educational Research Association for research on school discipline and safety.

– ref. Trump seeks to reshape how schools discipline students – https://theconversation.com/trump-seeks-to-reshape-how-schools-discipline-students-255377

MIL OSI – Global Reports –

May 1, 2025

MIL-OSI USA: U.S. oil companies spent less on interest over the last decade despite higher rates

Source: US Energy Information Administration

In-brief analysis

April 30, 2025

Data source: Evaluate Energy
Note: Production expenses include costs of goods sold, operating expenses, and production taxes from company income statements. Interest expenses are in 2024 dollars and deflated using the Consumer Price Index.

Higher oil prices, increased drilling efficiency, and structurally lower debt needs have contributed to lower interest expenses for some publicly traded U.S. oil companies over the past decade, despite the level of interest rates across the economy being relatively high.

Based on the published financial reports of 26 U.S. publicly traded oil companies, interest expenses per barrel of oil equivalent (BOE)—a measure that accounts for crude oil, hydrocarbon gas liquids, and natural gas production—in 2024 were about $1.50/BOE, or around 6% of production expenses. In real dollar terms and as a share of production expenses, interest expenses are lower than they were before the pandemic, even though general interest rates are now higher.

Although interest expenses typically represent a small portion of production expenses—those associated with labor, materials, and the costs of extracting and storing oil and other commodities—their variability can fluctuate with macroeconomic conditions. For example, a rapid decline in crude oil prices might lower some production expenses but not interest expenses, which are often fixed throughout the life of a loan. During these times, interest expenses can represent 15% or more of regular production expenses.

Data source: Bloomberg L.P.

The decline in interest expenses may be counterintuitive as interest rates in the United States have generally increased since 2020 and 2021. Short-term interest rates—designated by the federal funds effective rate, which determines the interest rate on overnight bank loans—have reached as high as 5.3% since 2022 and stayed above 4% since then, compared with nearly 0% five years ago.

The Federal Reserve determines the federal funds rate, and the rate serves as a key monetary policy tool to reach the goals of price stability and maximum employment. The federal funds rate affects other interest rates that are determined from market participants’ supply and demand for loans, including bank loans, government bonds, and corporate bonds. For example, Moody’s Aaa and Baa corporate bond rates represent different bond yields based on creditworthiness.

Oil company interest expense has declined despite higher interest rates because of:

Relatively high oil prices. Crude oil prices increased in the years after the pandemic. Higher oil prices bring in more revenue, which means oil companies need to borrow less to fund their capital expenditures and can also pay down debt obligations. In addition, higher oil prices increase the value of a company’s proved reserves and reduce the risk of loan default, which may lead to better borrowing terms, such as lower interest rates.
Increased efficiency and cost reduction. Lowering production expenses and improving efficiency increases company profits, which could result in better borrowing terms and lower borrowing costs.
Tempered investment growth and strategy. In recent years, companies have implemented strategies that favor modest capital expenditure growth by targeting fewer but more profitable projects. With this approach, the company may generate more profits even if the company’s production growth was small or unchanged. This strategy reduces companies’ needs for outside capital, including borrowing.

Principal contributor: Jeff Barron

MIL OSI USA News –

May 1, 2025

MIL-OSI: Alpine Banks of Colorado announces financial results for first quarter 2025

Source: GlobeNewswire (MIL-OSI)

GLENWOOD SPRINGS, Colo., April 30, 2025 (GLOBE NEWSWIRE) — Alpine Banks of Colorado (OTCQX: ALPIB) (“Alpine” or the “Company”), the holding company for Alpine Bank (the “Bank”), today announced results (unaudited) for the first quarter ended March 31, 2025. The Company reported net income of $14.3 million, or $133.99 per basic Class A common share and $0.89 per basic Class B common share, for first quarter 2025.

Highlights in first quarter 2025 include:

Basic earnings per Class A common share increased 3.9%, or $5.07, during first quarter 2025.
Basic earnings per Class A common share increased 36.3%, or $35.67, compared to first quarter 2024.
Basic earnings per Class B common share increased 3.9%, or $0.03, during first quarter 2025.
Basic earnings per Class B common share increased 36.3%, or $0.23, compared to first quarter 2024.
Net interest margin for first quarter 2025 was 3.38%, compared to 3.18% in fourth quarter 2024, and 2.81% in first quarter 2024.

“We are pleased with the start to 2025 as shown in our first quarter 2025 financial performance,” said Glen Jammaron, Alpine Banks of Colorado President and Vice Chairman. “Customer deposit growth continued, led by a strong winter season in our resort markets. Additionally, we saw our loan portfolio totals begin growing again following a slow 2024. Net income increased 35% from the first quarter 2024. During first quarter 2025 we launched Mission Possible: Operation Streamline, our initiative to simplify and streamline operations. We anticipate modules of Mission Possible: Operation Streamline to continue through 2027.”

Net Income

Net income for first quarter 2025 and fourth quarter 2024 was $14.3 million and $13.8 million, respectively. Interest income decreased $0.7 million in first quarter 2025 compared to fourth quarter 2024, primarily due to decreases in yields on balances due from banks, decreased volume in the securities portfolio and two fewer days in the quarter. These decreases were slightly offset by increases in yields on the loan and securities portfolios and increases in volume in the loan portfolio and balances due from banks. Interest expense decreased $3.2 million in first quarter 2025 compared to fourth quarter 2024, primarily due to decreases in costs on the Company’s trust preferred securities, other borrowings, and cost of deposits. These increases were partially offset by a decrease in volume of deposits. Noninterest income decreased $0.8 million in first quarter 2025 compared to fourth quarter 2024, primarily due to decreases in earnings on bank‐owned life insurance and service charges on deposit accounts, partially offset by increases in other income. Noninterest expense increased $0.8 million in first quarter 2025 compared to fourth quarter 2024, due to increases in salary and employee benefit expenses and occupancy expenses, slightly offset by decreases in furniture and fixture expenses and other expenses. A provision for loan losses of $1.8 million was recorded in first quarter 2025 compared to a $1.5 million provision for loan losses recorded in the fourth quarter 2024.

Net income for the three months ended March 31, 2025, and March 31, 2024, was $14.3 million and $10.6 million, respectively. Interest income increased $3.2 million in first quarter 2025 compared to first quarter 2024, primarily due to increases in volume in the loan portfolio and balances due from banks, along with increases in yields on the loan portfolio, the securities portfolio, and balances due from banks. These increases were slightly offset by a decrease in volume in the securities portfolio and a decrease in yield on the balances due from banks. Interest expense decreased $4.9 million in first quarter 2025 compared to first quarter 2024, primarily due to decreases in costs on the Company’s trust preferred securities, other borrowings, and cost of deposits. These decreases were partially offset by an increase in the volume of deposit balances. Noninterest income increased $1.1 million in 2025 compared to 2024, primarily due to increases in earnings on bankowned life insurance, service charges on deposit accounts, and other income. Noninterest expense increased $2.2 million in 2025 compared to 2024, due to increases in other expenses, salary and employee benefit expenses, and occupancy expenses, partially offset a decrease in furniture and fixtures expenses, Provision for loan losses increased $2.5 million in the three months ended March 31, 2025 due to loan portfolio increases and a small volume of loan charge‐offs, compared to the three months ended March 31, 2024.

Net interest margin increased from 3.18% to 3.38% from fourth quarter 2024 to first quarter 2025. Net interest margin for the three months ended March 31, 2025, and March 31, 2024, was 3.38% and 2.81%, respectively.

Assets

Total assets increased $139.7 million, or 2.1%, to $6.64 billion as of March 31, 2025, compared to December 31, 2024, primarily due to increased cash and due from banks and loans receivable partially offset by decreased investment securities balances. The Alpine Bank Wealth Management* division had assets under management of $1.32 billion on March 31, 2025, compared to $1.37 billion on December 31, 2024, a decrease of 3.8%.

Loans

Loans outstanding as of March 31, 2025, totaled $4.1 billion. The loan portfolio increased $66.0 million, or 1.6%, during first quarter 2025 compared to December 31, 2024. This increase was driven by a $48.6 million increase in real estate construction loans, a $22.3 million increase in commercial real estate loans and a $1.7 million increase in consumer loans. This increase was slightly offset by a $3.4 million decrease in residential real estate loans and a $3.1 million decrease in commercial and industrial loans.

Loans outstanding as of March 31, 2025, reflected an increase of $96.5 million, or 2.4%, compared to loans outstanding of $4.0 billion on March 31, 2024. This growth was driven by a $63.4 million increase in commercial real estate loans, a $30.4 million increase in real estate construction loans and a $7.8 million increase in consumer loans. This increase was slightly offset by a $3.4 million decrease in commercial and industrial loans and a $2.0 million decrease in residential real estate loans.

Deposits

Total deposits increased $118.0 million, or 2.0%, to $5.9 billion during first quarter 2025 compared to December 31, 2024, primarily due to a $104.5 million increase in money market accounts, a $74.2 million increase in demand deposits, a $27.2 million increase in interest‐bearing checking accounts, and a $1.9 million increase in savings accounts. This increase was partially offset by a $89.8 million decrease in certificate of deposit accounts. Brokered certificates of deposit decreased 24.5% to $185.0 million on March 31, 2025, compared to $245.0 million on December 31, 2024. Noninterest‐bearing demand accounts comprised 30.8% of all deposits on March 31, 2025, compared to 30.2% on December 31, 2024.

Total deposits of $5.94 billion on March 31, 2025, reflected an increase of $27.0 million, or 0.5%, compared to total deposits of $5.91 billion on March 31, 2024. This increase was due to a $278.1 million increase in money market accounts, a $26.8 million increase in demand deposits and a $10.2 million increase in interest‐bearing checking accounts. This increase was partially offset by a $275.6 million decrease in certificate of deposit accounts and a $12.5 million decrease in savings accounts. Brokered certificates of deposit decreased 60.7% to $185.0 million on March 31, 2025, compared to $470.7 million on March 31, 2024. Noninterest‐bearing demand accounts comprised 30.8% of all deposits on March 31, 2025, compared to 30.5% on March 31, 2024.

Capital

The Bank continues to be designated as a “well capitalized” institution as its capital ratios exceed the minimum requirements for this designation. As of March 31, 2025, the Bank’s Tier 1 Leverage Ratio was 9.76%, Tier 1 Risk‐Based Capital Ratio was 14.13%, and Total Risk‐Based Capital Ratio was 15.28%. On a consolidated basis, the Company’s Tier 1 Leverage Ratio was 9.46%, Tier 1 Risk‐Based Capital Ratio was 13.69%, and Total Risk‐Based Capital Ratio was 15.92% as of March 31, 2025.

Book value per share on March 31, 2025, was $4,940.82 per Class A common share and $32.94 per Class B common share, an increase of $204.63 per Class A common share and $1.37 per Class B common share from December 31, 2024.

Amended and Restated Articles of Incorporation

On April 10, 2025, the shareholders of Alpine approved amended and restated articles of incorporation to affect the following actions, among other things:

Increase from 15,100,000 to 30,000,000 the total authorized shares of common stock that the Company is authorized to issue;
Increase from 100,000 to 15,000,000 the authorized shares of the Class A common stock;
Effect a forward stock split of the outstanding shares of the Class A common stock by a ratio of 150‐for‐one;
Provide that holders of Class A common stock and Class B common stock shall be entitled to share equally, on a per share basis based upon the number of shares issued and outstanding, in dividends and other distributions;
Provide that each one share of Class B common stock shall be entitled to one vote;
Provide that each one share of Class A common stock shall be entitled to twenty votes;
Provide that unless otherwise required by law the Class A common stock and Class B common stock will vote together as a single class on all matters, including the election of directors;
Provide that a majority of the total voting power of the outstanding shares of common stock entitled to vote shall constitute a quorum at any meeting of shareholders; and
Provide that the approval of certain corporate actions requires the approval of more than 66 2/3% of the voting power of the outstanding shares of common stock entitled to vote.

Alpine anticipates that the amended and restated articles of incorporation and related stock split of the Class A common stock will become effective on May 1, 2025.

Additional information can be found in the proxy materials for our 2025 Annual Meeting of Stockholders at www.alpinebank.com/who‐we‐are/investor‐relations.html.

Dividends

During first quarter 2025, the Company paid cash dividends of $31.50 per Class A common share and $0.21 per Class B common share. On April 10, 2025, the Company declared cash dividends of $31.50 per Class A common share and $0.21 per Class B common share payable on April 28, 2025, to shareholders of record on April 21, 2025.

About Alpine Banks of Colorado

Alpine Banks of Colorado, is a $6.7 billion, independent, employee‐owned organization founded in 1973 with headquarters in Glenwood Springs, Colorado. Alpine Bank employs 890 people and serves 170,000 customers with personal, business, wealth management*, mortgage, and electronic banking services across Colorado’s Western Slope, mountains and Front Range. Alpine Bank has a five‐star rating – meaning it has earned a superior performance classification – from BauerFinancial, an independent organization that analyzes and rates the performance of financial institutions in the United States. Shares of the Class B non‐voting common stock of Alpine Banks of Colorado trade under the symbol “ALPIB” on the OTCQX® Best Market. Learn more at www.alpinebank.com.

*Alpine Bank Wealth Management services are not FDIC insured, may lose value, and are not guaranteed by the Bank.

Contacts:	Glen Jammaron	Eric A. Gardey
	President and Vice Chairman	Chief Financial Officer
	Alpine Banks of Colorado	Alpine Banks of Colorado
	2200 Grand Avenue	2200 Grand Avenue
	Glenwood Springs, CO 81601	Glenwood Springs, CO 81601
	(970) 384‐3266	(970) 384‐3257

A note about forward‐looking statements

This press release contains “forward‐looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward‐looking statements can be identified by words such as “anticipates,” “intends,” “plans,” “seeks,” “reflects,” “believes,” “can,” “would,” “should,” “will,” “estimates,” “looks forward to,” “continues,” “expects” and similar references to future periods. Examples of forward‐looking statements include, but are not limited to, statements we make regarding our evaluation of macro‐environment risks, Federal Reserve rate management, and trends reflecting things such as regulatory capital standards and adequacy. Forward‐looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward‐looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Our actual results may differ materially from those contemplated by the forward‐looking statements. We caution you therefore against relying on any of these forward‐looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. Important factors that could cause actual results to differ materially from those in the forward‐looking statement include, but are not limited to:

The ability to attract new deposits and loans;
Demand for financial services in our market areas;
Competitive market‐pricing factors;
Changes in assumptions underlying the establishment of allowances for loan losses and other estimates;
Effects of future economic, business and market conditions, including higher inflation;
Adverse effects of public health events, such as the COVID‐19 pandemic, including governmental and societal responses;
Deterioration in economic conditions that could result in increased loan losses;
Actions by competitors and other market participants that could have an adverse impact on expected performance;
Risks associated with concentrations in real estate‐related loans;
Risks inherent in making loans, such as repayment risks and fluctuating collateral values;
Market interest rate volatility, including changes to the federal funds rate;
Stability of funding sources and continued availability of borrowings;
Geopolitical events, including global tariffs, acts of war, international hostilities and terrorist activities;
Assumptions and estimates used in applying critical accounting policies and modeling, including under the CECL model, which may prove unreliable, inaccurate, or not predictive of actual results;
Actions of government regulators, including potential future changes in the target range for the federal funds rate by the Board of Governors of the Federal Reserve;
Sale of investment securities in a loss position before their value recovers, including as a result of asset liability management strategies or in response to liquidity needs;
Any increases in FDIC assessments;
Risks associated with potential cybersecurity incidents, data breaches or failures of key information technology systems;
The ability to maintain adequate liquidity and regulatory capital, and comply with evolving federal and state banking regulations;
Changes in legal or regulatory requirements or the results of regulatory examinations that could restrict growth;
The ability to recruit and retain key management and staff;
The ability to raise capital or incur debt on reasonable terms; and
Effectiveness of legislation and regulatory efforts to help the U.S. and global financial markets.

There are many factors that could cause actual results to differ materially from those contemplated by forward‐looking statements. Any forward‐looking statement made by us in this press release or in any subsequent written or oral statements attributable to the Company are expressly qualified in their entirety by the cautionary statements above. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to update any forward‐looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

https://alpinebank.kcmspreview.com/_/kcms-doc/1507/91579/Alpine-Banks-of-Colorado-Consolidated-Financial-Statements-3.31.25.pdf

Contact:	Eric A. Gardey, Chief Financial Officer
	Alpine Banks of Colorado
	(970) 384‐3257
	ericgardey@alpinebank.com

The MIL Network –

May 1, 2025

MIL-OSI: Pushpay’s 2025 State of Church Tech Report Reveals Digital Tools are Strengthening Faith, Fueling Connection, and Shaping the Future of Ministry

Source: GlobeNewswire (MIL-OSI)

REDMOND, Wash., April 30, 2025 (GLOBE NEWSWIRE) — Pushpay, the leading payments and engagement solutions provider for mission-driven organizations, today released findings from its 2025 State of Church Technology report. The study, which this year is presented in partnership with Engiven and Checkr, reveals that a majority of U.S. church leaders believe technology is playing a vital role in enhancing connection within their communities (86%).

As church leaders look for ways to foster authentic relationships and spiritual growth, many are recognizing the power of digital tools to connect with their communities in lasting, transformative ways. Amid the loneliness epidemic, Pushpay’s report reveals that churches are four times more likely to say technology reduces loneliness than increases it, underscoring the vital role digital tools play in fostering community. Live streaming in particular has emerged as a key driver of engagement, with 86% of surveyed leaders agreeing that this service enhances both participation and discipleship.

Conducted in February 2025, the fourth annual benchmark study offers a comprehensive look at the current usage, considerations, and barriers leaders face when embracing new technology, and forecasts what will remain strategically important as churches plan for the future of ministry. These insights are derived from the responses of more than 1,700 church leaders across the country, all of whom are actively leveraging technology to cultivate meaningful connections.

“This year’s State of Church Tech report offers more than just statistics and data—it’s a window into the evolving mindset of church leaders,” said Kenny Wyatt, Pushpay CEO. “We see overwhelming consensus that technology plays a critical role in ministry, and I’m encouraged by the way churches are approaching it. More and more leaders view these tools as an avenue to enhance, not replace, the human relationships that are so central to the Church.”

AI Adoption Surges Across Ministries

According to the report, 45% of church leaders currently use AI, up 80% compared to last year’s findings, reflecting that the use of AI in church operations has moved from early-adopter to mainstream status. 45% of leaders also believe that generative AI tools will be strategically important to their ministry over the next two to three years.

While use cases vary, the majority of churches are using AI to improve operational efficiency, and over 40% of respondents cite applications like generating and editing emails, social media content, and imagery. However, hesitancy remains when it comes to using AI to create theological content, with fewer than 25% leveraging the tool to create sermons or devotionals. As AI becomes more integrated, churches remain rooted in spiritual guidance.

Live Streaming Momentum Remains, Placing Value in High-End Viewer Experiences

Eighty seven percent of churches have continued to stream their worship services. While the pandemic made streaming a necessity for churches worldwide, this powerful solution for connecting with online viewers hasn’t waned in popularity for the majority, only seeing a slight dip from 2022 which was the peak of livestream adoption (91%). This year’s findings also signal that churches are placing more value in high-end streaming and hosting solutions. Churches are also expanding video delivery through in-app players, a 6% increase over the previous year.

Additional Findings from the 2025 Report:

70% of church leaders say technology has increased generosity within their congregation.
Communication remains the top challenge ministry leaders hope technology can better address, cited by 51% of respondents.
Only 10% of churches indicated they are leveraging cryptocurrency today—however, 39% of church leaders believe cryptocurrency will be strategically important to their church in the next two to three years, which is a 44% increase from last year.
Church management software (ChMS) adoption rose 4% year over year, with 86% of churches now using ChMS. Mobile app adoption also increased, with 67% of churches using an app, up 2% from last year.
Concerns about the financial cost of adopting new technology fell 9%—the first reported decline since the report’s inception.
More than half (52%) of church leaders reported an increase in their technology budgets, while just 10% reported a decrease.

Younger Generations Drive Engagement Growth

Church engagement has shown signs of stabilization for the first time in over a decade, driven largely by Millennials and Gen Z. Millennials are twice as likely to join a church that prioritizes technology as part of its mission, highlighting the need to meet younger generations in the digital spaces where they already live and connect. According to Pew Research’s latest Religious Landscape Study (RLS), after years of a steady decline, Christianity in the U.S. has flattened, with 62% of Americans identifying as Christian. Pushpay’s report further supports this trend, with 46% of churches reporting increased engagement among Millennials, followed by Gen Z (39%) and Gen X (32%).

“For the next generation, faith isn’t just preached—it’s played, practiced, and posted. When churches embrace technology like gamification and immersive learning, we’re not just reaching Gen Z—we’re discipling them in their native language,” said Justin Lester, Senior Pastor at Friendship Missionary Baptist Church, and a panelist on Pushpay’s upcoming State of Church Tech webinar.

Pushpay will host a 2025 State of Church Tech webinar live on Wednesday, May 21, at 10 a.m. PT, featuring industry experts Justin Lester, Senior Pastor at Friendship Missionary Baptist Church, Joel Stepanek of the National Eucharistic Congress, and Church communications consultant Katie Allred. They will share insights on the report findings and discuss what they mean for the future of the Church. To join, register online, or to access the full report, visit www.pushpay.com.

About Pushpay
Pushpay empowers mission-based organizations to engage their communities. We exist to bring people together and help people be known. Through our innovative suite of products, we cultivate generosity by streamlining donation processes, enhancing communication, and strengthening connection. Whether managing donations, organizing events, or connecting with community members, Pushpay’s integrated tools enable ministry leaders to focus on what matters most – growing their ministry and deepening engagement. For more information visit www.pushpay.com.

About Engiven
Engiven is a leading provider of non-cash giving solutions to public charities, faith-based organizations, universities, financial institutions, and donation platforms. The Engiven platform and developer tools enable highly secure and automated cryptocurrency and stock-giving methodologies which help organizations maximize their giving opportunities. For more information visit https://engiven.com.

About Checkr
Checkr is the data platform that powers safe and fair decisions. We’re a technology company that helps our customers assess risk, modernize hiring, and cultivate trusted relationships in their workplaces and communities. For more information, visit https://checkr.com.

US Media / PR Contact: Chelsea Looney PR@pushpay.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/738b9119-4423-45d3-8b94-60d103d4d8cf

The MIL Network –

May 1, 2025

MIL-OSI: Voxtur Announces Financial Results for the Year and Quarter Ended December 31, 2024

Source: GlobeNewswire (MIL-OSI)

TORONTO and TAMPA, Fla., April 30, 2025 (GLOBE NEWSWIRE) — Voxtur Analytics Corp. (TSXV: VXTR; OTCQB: VXTRF) (“Voxtur” or the “Company”), a North American technology company creating a more transparent and accessible real estate lending ecosystem, today announced its financial results for the three months and year ended December 31, 2024. The Company’s Audited Consolidated Financial Statements for the year ended December 31, 2024, and the related Management’s Discussion and Analysis (“MD&A”) are available at www.sedarplus.ca and at www.voxtur.com.

Financial Results:

Continuing Operations	Unaudited				Audited
	Three months ended December 31				Year ended December 31
(In thousands of Canadian dollars)	2024		2023		2024		2023

Revenue ¹	$	9,307	$	9,886	$	45,737	$	48,959
Gross profit ¹		5,391		6,073		28,889		31,527
Gross profit as a % of Revenue ¹		58%		61%		63%		64%

¹ Calculations include only the results from continuing operations and do not include results of discontinued operations. On November 1, 2023, the Company finalized the sale of its wholly owned appraisal management company (“AMC”) business for $35,135 ($25,324 USD). Results of the AMC business are classified as discontinued operations.

Throughout 2024, the Company remained focused on implementing meaningful operational improvements and driving disciplined cost management. These efforts are reflected in full-year financial results, which show that while total revenue decreased by approximately $3.2 million and total gross profit declined by approximately $2.6 million compared to fiscal 2023, the Company was able to reduce cash used in operations by approximately $13.2 million, being a year-over-year improvement of approximately 46%. The Company anticipates continued improvement in this regard into early 2025 as previously implemented efficiencies take full effect.

Further discussion with respect to the financial results can be found in the Company’s MD&A available at www.sedarplus.ca and at www.voxtur.com.

“Despite macroeconomic uncertainty, including persistently high mortgage rates and industry volatility, we are staying focused on the fundamentals we can control — operational efficiency, debt reduction, and strategic execution,” said Ryan Marshall, CEO. “With leadership transitions behind us, we believe 2025 is a pivotal year to reposition the business and unlock long-term value.”

In connection with the strategic review process announced in January 2025, the Company continues to work closely with its advisor to evaluate a number of opportunities. No material updates are available at this time; however, the Company remains actively engaged in the process of evaluating the economic value and long-term alignment of each of the opportunities in front of us. The Company intends to host a shareholder call once there is material progress to report.

“We are encouraged by the level of interest in various components of our business and continue to evaluate each opportunity with discipline,” added Marshall. “Our focus remains on pursuing outcomes that are both financially and strategically sound for the company and its stakeholders.”

About Voxtur

Voxtur is a proptech company. The company offers targeted data analytics to simplify the multifaceted aspects of the lending lifecycle for investors, lenders, government agencies and servicers. Voxtur’s proprietary data hub and workflow platforms more accurately and efficiently value real estate assets, providing critical due diligence that enables market participants to effectively originate, trade, or service defaults on mortgage loans. As an independent and transparent mortgage technology provider, the company offers primary and secondary market solutions in the United States and Canada. For more information, visit www.voxtur.com.

Forward-Looking Information

This news release contains certain forward-looking statements and forward-looking information (collectively, “forward-looking information”) which reflect the expectations of management regarding the Company’s future growth, financial performance and objectives and the Company’s strategic initiatives, plans, business prospects and opportunities. These forward-looking statements reflect management’s current expectations regarding future events and the Company’s financial and operating performance and speak only as of the date of this press release. By their very nature, forward-looking statements require management to make assumptions and involve significant risks and uncertainties, should not be read as guarantees of future events, performance or results, and give rise to the possibility that management’s predictions, forecasts, projections, expectations or conclusions will not prove to be accurate, that the assumptions may not be correct and that the Company’s future growth, financial performance and objectives and the Company’s strategic initiatives, plans, business prospects and opportunities, including the duration, impact of and recovery from the COVID-19 pandemic, will not occur or be achieved. Any information contained herein that is not based on historical facts may be deemed to constitute forward-looking information within the meaning of Canadian and United States securities laws. Forward-looking information may be based on expectations, estimates and projections as at the date of this news release, and may be identified by the words “may”, “would”, “could”, “should”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” or similar expressions. Forward-looking information may include but is not limited to the anticipated financial performance of the Company and other events or conditions that may occur in the future. Investors are cautioned that forward-looking information is not based on historical facts but instead reflects estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the information is provided. Although the Company believes that the expectations reflected in such forward-looking information are reasonable, such information involves risks and uncertainties, and undue reliance should not be placed on such information, as unknown or unpredictable factors could have material adverse effects on future results, performance, or achievements of the Company. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking information include but are not limited to: additional costs related to acquisitions, integration of acquired businesses, and implementation of new products; changing global financial conditions, especially in light of the COVID-19 global pandemic; reliance on specific key employees and customers to maintain business operations; competition within the Company’s industry; a risk in technological failure, failure to implement technological upgrades, or failure to implement new technological products in accordance with expected timelines; changing market conditions related to defaulted mortgage loans, and the failure of clients to send foreclosure and bankruptcy referrals in volumes similar to those prior to the COVID-19 global pandemic; failure of governing agencies and regulatory bodies to approve the use of products and services developed by the Company; the Company’s dependence on maintaining intellectual property and protecting newly developed intellectual property; operating losses and negative cash flows; and currency fluctuations. Accordingly, readers should not place undue reliance on forward-looking information contained herein. Factors relating to the Company’s financial guidance and targets disclosed in this press release include, in addition to the factors set out above, the degree to which actual future events accord with, or vary from, the expectations of, and assumptions used by, Voxtur’s management in preparing the financial guidance and targets.

This forward-looking information is provided as of the date of this news release and, accordingly, is subject to change after such date. The Company does not assume any obligation to update or revise this information to reflect new events or circumstances except as required in accordance with applicable laws.

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

Voxtur’s common shares are traded on the TSX Venture Exchange under the symbol VXTR and in the US on the OTCQB under the symbol VXTRF.

Company Contact:  
Jordan Ross
Tel: (416)708-9764 
jordan@voxtur.com

The MIL Network –

May 1, 2025

MIL-OSI China: China’s National Health Commission answers questions on white paper from press

Source: People’s Republic of China Ministry of Health

BEIJING — China’s State Council Information Office on Wednesday released a white paper titled “Covid-19 Prevention, Control and Origins Tracing: China’s Actions and Stance.”

The National Health Commission has responded to questions raised by the press regarding the white paper.

Q1: What’s the background of issuing the white paper, Covid-19 Prevention, Control and Origins-Tracing: China’s Actions and Stance, and what information does it contain?

A: Since the outbreak of Covid-19, China has been open and transparent in sharing information, and generous and selfless in providing aid. Its efforts in response and commitment to transparency have been highly acclaimed by the international community. However, the US District Court for the Eastern District of Missouri accused China of “hoarding medical supplies” and ruled that China must pay Missouri 24.49 billion USD in compensation for COVID-related losses; and recently, an article published on the official website of the White House blamed the origin of the virus on China, where some US politicians made spurious allegations, accusing China of concealing pandemic information from the world and hoarding medical supplies.

In such context, China released this white paper to present a systematic overview of China’s key achievement in tracing the origins of Covid-19, to attest to its contribution to international cooperation in the response to the global pandemic, and to advance scientific endeavors and foster global collaboration as a responsible major country in this critical domain. Despite being the world’s largest economy and most developed country, the US failed to make contributions commensurate with its capabilities; even worse, it blamed its own problems on others and sabotaged collaborative global efforts to address the crisis. China firmly opposes and strongly condemns such practice.

The white paper contains a preface, the main body, and a conclusion, in total 14,000 Chinese characters. The main body has three chapters: “Contributing Chinese Wisdom to the Study of the Origins of SARS-CoV-2”, “China’s Contribution to the Global Fight against Covid-19”, and “The Mismanaged Response of the US to the Covid-19 Pandemic”.

Q2: How is the origins study of SARS-CoV-2 going in China? Where should the next step be taken?

A: Since the outbreak of Covid-19, China has consistently dedicated substantial resources to collaborative research into the origins of the virus participated by Chinese and international scientists. Upholding its commitment to international responsibilities and scientific soundness with openness and transparency, the country spearheaded research initiatives in critical fields such as clinical epidemiology, molecular epidemiology, environmental epidemiology, and the identification of intermediate animal hosts. China closely cooperated with the World Health Organization (WHO) on the study of the virus origins with a strong sense of global responsibility and transparency, and in 2020 and 2021 invited WHO expert teams to China to carry out joint investigations. On March 30, 2021, the WHO organized a member state information session and press conference to present the findings about the origins of the SARS-CoV-2 virus and published the “WHO-convened Global Study of Origins of SARS-CoV-2: China Part-Joint WHO-China Study” on its official website. To date, no findings have contradicted the conclusions of the “Joint WHO-China Study”.

The next phase of the origins study should be conducted mainly in the US. A large number of studies have pinned the origin of the virus outside of China. A US CDC study reveals that out of 7,389 serological survey samples collected from nine states from December 13, 2019 to January 17, 2020, 106 were Covid-19 antibody positive. This suggests that the virus existed in the US before the first official case was identified. Similarly, the NIH “All of Us” Research Program tested 24,079 blood samples collected from participants across 50 states from January 2 to March 18, 2020, identifying nine containing Covid-19 antibodies. The earliest two were collected on January 7 and 8, respectively. These findings show that the virus was circulating in the US at a low level as early as December 2019, well before the first official cases were recorded. An expert associated with The Lancet suggested that SARS-CoV-2 might not have come from nature; instead, it probably came from an incident at a US bio-technology lab. Between 2006 and 2013, the US reported at least 1,500 serious laboratory incidents involving coronaviruses and other highly dangerous pathogens linked to diseases such as SARS, MERS, Ebola, anthrax, smallpox, and avian influenza.

These questionable events all suggest that Covid-19 may have emerged earlier than the US official timeline, and earlier than the outbreak in China. A thorough and in-depth investigation into the origins of the virus should be conducted in the US The US must not continue to turn a deaf ear to this call; rather, it should respond to the reasonable concern of the international community, share the data of earlier suspected cases with the WHO, and give a responsible answer to the world.

Q3: How does China comment on the performance of the US in its response to Covid-19?

A: The delayed and ineffective response to Covid-19 in the US made it the worst performing country in handling of the pandemic.

In January 2020, the federal government of the US, choosing to downplay the severity of the transmission, labelled the novel coronavirus pneumonia as a case of “bad flu” which would “disappear” automatically one day, touted hydroxychloroquine and azithromycin as “wonder drugs” without solid scientific evidence, and even advocated the use of detergents to control infections and transmissions, becoming a laughing stock in the scientific community. The US government also deprived its citizens of the right to be informed of updated pandemic information. From March 3, 2020, the US CDC stopped releasing key data on Covid-19, including tallying the people tested for the virus, on the grounds that its information might not be “accurate”. Over the next three years or so, people in the US could only find information about the pandemic from estimated data collected and reported by non-governmental institutions such as the Johns Hopkins University. By mid-April 2020, the number of confirmed Covid-19 cases in the US had exceeded 660,000. However, with an eye on the upcoming presidential elections, the Administration announced that the pandemic had “passed the peak,” and rushed to roll out plans to reopen the economy. Insisting that citizens should be “free to choose,” the government of Florida demanded schools across the state to reopen, leading to widespread infection among teachers and students.

Covid-19 overwhelmed the costly and profit-driven US medical system, and vulnerable groups such as the impoverished, ethnic minorities, and senior citizens were the first to be abandoned in treatment. According to a report from the Associated Press in June 2020, of every 10 deaths in the US, eight were people over 65 years old. With a strained medical system, infected people could not receive timely care and death toll surged. The American people’s rights to life and health were in no way being guaranteed on an equal basis.

Data from the US National Center for Health Statistics shows that the life expectancy in the country fell from 78.8 years in 2019 to 77 in 2020, and further declined to 76.1 in 2021, a decrease of 2.7 years from 2019. For comparison, life expectancy in China rose from 77.3 years in 2019, to 77.93 in 2020, 78.2 in 2021, 78.3 in 2022, and 78.6 in 2023, signaling a steady improvement in population health.

US CDC data released in May 2023 revealed that deaths due to Covid-19 in the US totaled 1.13 million, accounting for 16.4 percent of concurrent global deaths reported by the WHO. These figures were out of alignment with the overall population size, economic strength, and level of medical technology of the US, and were indicative of its ineffective and unscientific response policies.

The US not only botched its own response to Covid-19, but also obstructed and sabotaged international cooperation in various ways. The deliberate concealment of information by the US government misled other countries and the WHO in the research and analysis of Covid-19 trends. The US government publicly announced that it would take an America First approach in vaccine supply and vaccination, keeping hoarding excess vaccines and agitating vaccine nationalism on the one hand, and waging a smear campaign to discredit China’s vaccines on the other. A US think tank criticized the US for its reluctance to provide foreign aid, saying this practice would expose the country as a “selfish isolationist when its help was most desperately needed.”

Q4: The Missouri and other US state governments have initiated groundless lawsuits against China, holding China accountable for the pandemic. What is China’s comment on this?

A: The groundless lawsuit of Missouri is a politically motivated farce orchestrated by state governments out of political self-interest that has ignored basic facts and violated fundamental legal norms. It is an affront to the sovereignty and dignity of all nations and to the international rule of law. China rejects such proceedings and will never accept a judgement delivered in absentia.

The allegations in the judgement that China concealed pandemic information from the world and that China hoarded medical supplies are groundless. In the early stage of the outbreak, China provided clear information to the international community, adopting an open and transparent approach in releasing relevant information to the world. By May 31, 2020, the Joint Prevention and Control Mechanism and the Information Office of the State Council had held 161 press conferences, during which over 490 officials from more than 50 government departments answered over 1,400 questions from Chinese and foreign media.

China tried every possible means to provide materials and assistance. From January 2020 to May 2022, China offered over 4.6 billion protective suits, 18 billion test kits, and 430 billion masks to 15 international organizations and 153 countries, including the US.

In 2020, China sent 38 medical expert teams to 34 countries assisting in local pandemic control efforts, sharing China’s experience and practice in preventing and controlling the epidemic, and medical treatment plans.

China made a significant contribution to the global fight against the pandemic, for which China deserves recognition and fair treatment, rather than blames and damage claims. In contrast, the incompetent responses of the Missouri state government led to a mortality rate ranking among the highest in the US Now the state government is trying to shift the blame for its failures, which is both irresponsible and unethical, a selfish and evading presence. China will never accede to demands for compensation claimed on baseless allegations, and will take resolute countermeasures in defense of its legitimate rights.

Q5: How China played its roles as WHO member in global health governance?

A: Since the outbreak of Covid-19, China lost no time in sharing information on the epidemic updates and genome sequencing to the international community including the WHO. China invited multiple WHO international expert missions to conduct joint research on its territory. China provided tremendous supplies and aid to the international community to the best of its ability and shared the experience of pandemic prevention, control, diagnosis and treatment. Constantly sticking to the shared idea of a community with a shared future for mankind, China has made significant contributions to the global fight against pandemic by carrying out international cooperations.

In early 2020, the WHO dispatched warnings to the international community including the US, reminding of “a possible pandemic on a larger scale”. On April 10, the US government, which up till then had dismissed the WHO admonitions as sensational, began to accuse the media, WHO officials and Democratic congressmen of incompetence in fighting against the pandemic. On April 14, the US government announced for the first time that it would suspend funding to the WHO on the ground that the organization had not performed its fundamental duties.

On January 20, 2025, the current US government again announced its withdrawal from the WHO on the excuses that it had failed in responding to the pandemic and yielded to China’s influence. Far from reflecting on its own incompetence during the pandemic, the US government has gone too far in shifting the blame, which will further harm its competence in responding to new emergencies to the public health.

China supports the United Nations and the WHO in playing and enhancing their mandatory roles and the capacity building of global health governance. China has been, and will be, active in participating in the WHO’s efforts in preventing and responding to emergencies in public health, in implementing and amending the “International Health Regulations,” and in reviewing a “pandemic treaty.” China will be active in participating in the IPPPR of the WHO and its SAGO mission by contributing advice and opinions. China has contributed and will continue to contribute Chinese perspectives, solutions and strengths to building an efficient and sustainable global public health system for the benefit of all humanity and fortifying defenses for the lives and health of all.

MIL OSI China News –

April 30, 2025

MIL-OSI China: China releases white paper on Covid-19 prevention, control and origins tracing

Source: People’s Republic of China Ministry of Health

BEIJING — China’s State Council Information Office on Wednesday issued a white paper titled “Covid-19 Prevention, Control and Origins Tracing: China’s Actions and Stance.”

Apart from preface and conclusion, the document contains three chapters: “Contributing Chinese Wisdom to the Study of the Origins of SARS-CoV-2,” “China’s Contribution to the Global Fight Against Covid-19,” and “The Mismanaged Response of the US to the Covid-19 Pandemic.”

Full text: Covid-19 Prevention, Control and Origins Tracing: China’s Actions and Stance

MIL OSI China News –

April 30, 2025

MIL-OSI United Kingdom: Manchester launches annual State of the City Report

Source: City of Manchester

The latest State of the City report, detailing Manchester’s progress in delivering its 10-year strategy, comes at a pivotal moment.

It is published as the current 2015-25 Our Manchester Strategy period concludes, and the city prepares to launch its new strategy for the next decade.

The annual State of the City report provides a snapshot of how the city has progressed and where deep-rooted challenges are being addressed.

Bev Craig, Leader of Manchester City Council, said: “This is a significant year for Manchester as we prepare to launch the new Our Manchester Strategy which will guide the city for the next decade, and reflect on the progress we have collectively made in the last 10 years.

“Our annual State of the City report enables us to chart that progress as well as the challenges that still remain.

“The report demonstrates Manchester’s dynamism as we continue to see strong population and economic growth and begin to see the impact of a raft of initiatives to tackle inequalities and ensure that everyone is included in the city’s success. That includes overseeing the building of more council, social and genuinely affordable homes than at any time in the last 15 years.

“We’re also investing in improving neighbourhoods across the city. Progress is being made. But while Manchester is now firmly established among leading European cities, and is one of the fastest growing, we are focused on taking that success to the next level – and taking all Mancunians with us.”

The State of the City report assesses progress against the 2015-25 Our Manchester Strategy’s five key themes:

A Thriving and Sustainable City

In 2024, Manchester’s population continued to grow, driven primarily by international migration and a rise in student numbers. This growth has had a positive impact on the city’s overall development, particularly in the city centre, which remains a central hub for economic growth, benefiting both Manchester itself and the wider region.

The demand for office space in Manchester remains robust, with 2024 expected to see record levels of leasing activity for office spaces, marking a significant milestone in the post-pandemic recovery. Additionally, the Oxford Road corridor continues to attract large-scale investments, such as the launch of City Labs 4.0 and new office and research opportunities on Upper Brook Street, alongside the approval of a strategic regeneration framework for Sister – a new innovation district and global science hub.

Manchester’s cultural, tourism, and leisure sectors have also seen a surge in visitor numbers throughout 2024. Aviva Studios and Co-op Live have quickly become key venues, drawing in crowds for major music and cultural events. At the same time, investment in the city’s district centres, supported by Government funding secured by the Council has led to noticeable progress, particularly in areas like Wythenshawe, Gorton, Moston and Withington with impetus to expand this to high streets across the city.

A Highly Skilled City

As Manchester’s population continues to grow, the city’s workforce has also expanded, with 426,000 people in employment. Most schools in the city are now rated as good or outstanding. Additionally, more young people are pursuing post-16 education, with an increase in capacity at various colleges and schools, although this remains an ongoing challenge.

Manchester continues to attract and retain a large number of graduates, which contributes to the city’s thriving workforce. Economic growth has been fueled by the rise of highly skilled jobs in industries such as digital technology, biotechnology, and advanced materials.

However, there are still significant levels of economic inactivity, particularly due to poor health. To address this, a variety of programs have been introduced to help individuals access employment opportunities and improve their skills.

Targeted initiatives have focused on specific sectors and employers, with local job fairs and customised support programs being backed by various funding schemes. As part of the city’s efforts to achieve UNICEF Child Friendly City status, partnerships between schools and employers have been established.

Furthermore, Manchester has earned the designation of a UNESCO City of Lifelong Learning, a step forward in supporting adult education and lifelong learning. In addition to these efforts, significant programs are underway to create green jobs, aligning with the growing demand for sustainable employment in the economy.

A Progressive and Equitable City

Making Manchester Fairer is the city’s five-year action plan aimed at tackling health inequalities across Manchester. In 2024, key milestones included the delivery of one million meals through the Manchester Food Board Partnership and the continued support of local initiatives via the In Our Nature project, which is designed to help communities across the city.

The ongoing cost-of-living crisis has left 100,000 households with less than £30 per month in disposable income. To support these households, Manchester has provided a range of services, including free school meals, digital inclusion initiatives, a dedicated advice line, and direct financial support through a household support fund.

Homelessness remains a significant challenge, with a high number of people presenting as homeless each year. However, there has been progress, with the use of B&B accommodation for families all but eradicated, a decrease in rough sleeping, and fewer individuals in temporary accommodation.

Alongside this, a new Children and Young People’s Plan for 2024-2027 has been developed, informed by the voices of children and young people. This plan emphasises prevention and early intervention, aiming to help young people stay safe and thrive within their communities.

As part of the UNICEF Child Friendly City program, 11,000 children shared their views, and in January 2024, key priorities were established, including ensuring children are safe and secure, have a sense of place, and lead healthy lives. In addition, the city continues to prioritise addressing health inequalities through a variety of public health measures, which remain central to the “Making Manchester Fairer” initiative.

A Liveable and Zero Carbon City

The Housing Strategy 2022-2032 sets an ambitious target of constructing 36,000 homes, with at least 10,000 of those being affordable.

In its first two years, significant progress has already been made. Last year 600 affordable homes were completed with a further 1,500 on site and a further 1,450 in the pipeline – meaning Manchester is on track to meet this target.

To further support housing development, Strategic Regeneration Frameworks have been introduced in key areas across the city, including Victoria North, Grey Mare Lane, Strangeways, and Holt Town, which will see large numbers of new homes including affordable homes built. Additionally, a retrofit programme is in place, aiming to improve the energy efficiency of a third of the homes managed by the Manchester Housing Providers Partnership by 2032.

Manchester has made progress in reducing its carbon emissions, with a 5% decrease in 2022 (the latest data available). However, more work is needed to meet long-term sustainability targets. To accelerate efforts, a new framework for the period of 2025-2030 is currently under development.

Safety remains a top priority for residents, and the Manchester Community Safety Partnership has rolled out several key initiatives to address the city’s main concerns.

Meanwhile, Manchester’s parks and green spaces have seen a significant increase in activity, with a 7% rise in the number of events and activities hosted in 2024.

The launch of Always, Everywhere: the Manchester Culture Ambition in 2024 followed extensive consultation and marked a significant step forward for the city’s cultural development. The English National Opera (ENO) also announced its move to Manchester, and the completion of HOME Arches provides a new creative workspace for the city’s artists and innovators.

In the sporting realm, Manchester hosted 24 major sporting events in 2024, further solidifying its reputation as a sporting hub. Additionally, the city was named the first European Capital of Cycling, showcasing its commitment to sustainable transport and active living.

A Connected City

In collaboration with Transport for Greater Manchester (TfGM), significant road improvements are currently underway on Whitworth Street West and Deansgate. These upgrades are part of the city’s broader efforts to enhance its infrastructure and transportation network.

Manchester has also developed an ambitious plan to expand Electric Vehicle charging across the city, supporting the transition to greener transportation options. This initiative is a key part of the city’s strategy to promote sustainability and reduce carbon emissions.

The Bee Network, an integrated public transport system for Greater Manchester, continues to grow and improve. All remaining buses in the city were franchised and brought under local control, further streamlining the public transport experience for residents.

Additionally, 14 active travel schemes focused on walking and cycling are either underway or in the planning stages. These initiatives aim to promote healthier, more sustainable travel options, making it easier for residents to choose active modes of transport.

MIL OSI United Kingdom –

April 30, 2025

MIL-OSI United Kingdom: Fraud Bill to save £1.5 billion progresses to the Lords

Source: United Kingdom – Executive Government & Departments 2

Press release

Fraud Bill to save £1.5 billion progresses to the Lords

Plans to recover stolen cash and impose driving bans on those who repeatedly fail to pay back taxpayer money moved a step closer today, as Ministers vowed “to address the unacceptable levels of fraud and error we’ve inherited”

The Public Authorities (Fraud, Error, and Recovery) Bill, set to save £1.5 billion over the next five years, progresses to the Lords 
The Bill follows the biggest welfare fraud and error budget package in recent history 
Changes could help boost investment in public services and protect the public purse, as part of the Plan for Change

New souped-up powers from the Department of Work and Pensions (DWP), which will allow DWP to recover money directly from the bank accounts of fraudsters who can repay but are wilfully gaming the system in order not to, passed an important stage in the House of Commons as it had its Third Reading. 

The Public Authorities (Fraud, Error, and Recovery) Bill, which could put these measures into law, will help DWP to catch fraudsters, prevent overpayments and protect taxpayer’s money.  

The Bill will save the taxpayer £1.5 billion over the next five years and is part of wider plans set out in the Autumn budget and Spring Statement to save £9.6 billion by 2030. This means taxpayer’s money can be invested in public services as part of the government’s Plan for Change.   

Minister for Transformation, Andrew Western said:   

Enhancing our powers is essential to fulfilling our commitment to the public, as they will enable us to address the unacceptable levels of fraud and error we’ve inherited and better protect public funds.

By strengthening our ability to catch criminals and prevent overpayments, we can keep up with the evolving nature of welfare fraud while reducing the risk of people falling further into debt, ensuring that more resources are directed towards improving the lives of people across the country.

The new legislation comes as the government is dealing with the broken welfare system it inherited, with out-of-control levels of fraud and error costing the taxpayer around £10 billion a year – with a total of £35 billion of taxpayers’ money incorrectly paid to those not entitled to the money since the pandemic.    

The Bill will also give powers to the DWP to get data from banks and other financial institutions to help verify the eligibility of those who receive certain benefits to make sure they are getting the correct payments – this will help to stop people falling further into debt because of incorrect payments and help the DWP spot fraudulent claims. 

No personal information will be shared by DWP to support financial institutions in the identification of these accounts, and DWP will not have access to people’s bank accounts in verifying eligibility and will not be able to see where people are spending their money.   

Protections are central to the Bill, making sure there is proportionate and effective use of the powers, and that DWP is protecting vulnerable customers. For example, people will only be disqualified from driving as a last resort when they don’t rely on their car for work or for caring responsibilities and where they continually avoid repayment. Staff will be trained to the highest standards on the appropriate use of new powers, and we will introduce new oversight and reporting mechanisms. 

On top of the Bill measures, the Chancellor announced in the Spring Statement a further commitment to recruit over 500 additional DWP fraud and error staff who will make better use of government data to correct errors in benefit claims, as well as increasing checks on potential Universal Credit claimants by introducing more ways to verify the amount of savings they hold, as well as their earnings and expenses.

The Cabinet Office’s Public Sector Fraud Authority will also be given more powers under the legislation, allowing the department’s investigators to detect and recover fraud in other departments and bodies across the public sector. 

Minister in the Cabinet Office, Georgia Gould said:   

This Bill will save taxpayers’ money. People are currently getting away with stealing vast sums of cash because our investigators don’t have the powers they need to detect and recover fraud across the public sector.

We’re giving our investigators new powers to tackle fraud wherever they find it – as well as doubling the time available to bring pandemic fraudsters to justice.

An additional new measure will see the time limit for civil claims against Covid fraud doubled from six to twelve years. This step change in the ability to fight fraud committed during the pandemic will give the Covid Corruption Commissioner and the Public Sector Fraud Authority more time to investigate complex cases and apply their new powers retrospectively – including the ability to raid properties and retrieve money from Covid fraudsters’ bank accounts.   

The Bill measures will now progress to the House of Lords to be debated further.

Additional Information

The Fraud, Error and Recovery Bill forms part of wider government plans to save a total of £8.6bn over 5 years in the biggest welfare fraud and error budget package in recent history.
Since the pandemic, a total of £35 billion of taxpayers’ money has been incorrectly paid to those not entitled to DWP benefits.

Published 30 April 2025

MIL OSI United Kingdom –

April 30, 2025

MIL-OSI: Subsea 7 S.A. Announces First Quarter 2025 Results

Source: GlobeNewswire (MIL-OSI)

Luxembourg – 30 April 2025 – Subsea 7 S.A. (Oslo Børs: SUBC, ADR: SUBCY, ISIN: LU0075646355, the Company) announced today results of Subsea7 Group (the Group, Subsea7) for the first quarter which ended 31 March 2025.

Highlights

First quarter Adjusted EBITDA of $236 million, up 46% on the prior year, equating to a margin of 15%
Strong operational and financial performance from both Subsea and Conventional and Renewables, with Adjusted EBITDA margins of 18% and 10% respectively
Guidance for full year 2025 reaffirmed
A high-quality backlog of $10.8 billion gives over 80% visibility on 2025 revenue guidance and supports the outlook for Adjusted EBITDA margin expansion to 18 to 20%
Balance sheet remains strong with net debt including lease liabilities of $632 million, equating to 0.5 times the Adjusted EBITDA generated in the last four quarters

	Three Months Ended
For the period (in $ millions, except Adjusted EBITDA margin and per share data)	31 Mar 2025 Unaudited	31 Mar 2024 Unaudited
Revenue	1,529	1,395
Adjusted EBITDA^(a)	236	162
Adjusted EBITDA margin^(a)	15%	12%
Net operating income	77	20
Net income	17	29

Earnings per share – in $ per share
Basic	0.06	0.09
Diluted^(b)	0.06	0.09

At (in $ millions)	31 Mar 2025 Unaudited	31 Dec 2024 Unaudited
Backlog^(a)	10,819	11,175
Book-to-bill ratio^(a)	0.6x	1.2x
Cash and cash equivalents	459	575
Borrowings	(691)	(722)
Net debt excluding lease liabilities^(a)	(232)	(147)
Net debt including lease liabilities^(a)	(632)	(602)

(a) For explanations and reconciliations of Adjusted EBITDA, Adjusted EBITDA margin, Backlog, Book-to-bill ratio and Net debt refer to the ‘Alternative Performance Measures’ section of the Condensed Consolidated Financial Statements.

(b) For the explanation and a reconciliation of diluted earnings per share refer to Note 7 ‘Earnings per share’ to the Condensed Consolidated Financial Statements.

John Evans, Chief Executive Officer, said:

Subsea7 had a good start to 2025 with solid financial performance underpinned by strong project execution, which offset a heavy vessel maintenance schedule. The Group reported 10% revenue growth year-on-year and Adjusted EBITDA margin expansion of 380bps, putting us on track to meet full year expectations. With backlog of $10.8 billion including $4.8 billion for execution in the remainder of the year, we have a high level of visibility for 2025.

Although uncertainty in the global economy has increased in recent months, the outlook for long-term energy demand growth remains positive. Subsea7’s strategy to focus on long-duration developments in cost-advantaged sectors of the deepwater adds resilience to our subsea business, and our exposure to strategic gas developments, such as the Sakarya field in Türkiye, and new oil provinces such as Namibia, gives us further confidence. In offshore wind, we are positive about the opportunities presented by this year’s CFD allocation round in the UK, where it is expected that the volume of projects sanctioned will nearly double year-on-year. We are well-positioned in this market, with a strong track record and collaborative client relationships.

Overall, while volatility in commodity prices and global tariffs create headwinds for investor sentiment in the sector, the fundamentals of our industry remain robust and our focused strategy leaves the Group well-positioned to deliver strong growth in profitability and cash generation in 2025.

First quarter project review
During the first quarter, we undertook significant planned vessel maintenance. This maintenance ensures that our vessels are optimised ahead of a busy year. Nevertheless we made good progress on our subsea, conventional and renewables projects. In Africa, Seven Arctic was active installing flexibles and umbilicals at Agogo in Angola, where it was joined by Seven Borealis, after it completed Zuluf in Saudi Arabia. Seven Pacific was busy at the Raven field in Egypt before mobilising for early flexlay work at Sakarya in Türkiye. In the Americas, Seven Oceans undertook work on a range of projects including Sunspear, Salamanca and Shenandoah in the US, while Seven Seas worked mainly on Cypre in Trinidad and Tobago and Seven Vega continued rigid pipelay at Mero 3 in Brazil.

In Renewables, Seaway Strashnov and Seaway Alfa Lift underwent maintenance before preparing to restart work at Dogger Bank in the UK. We also took advantage of the winter off-season to install a monopile gripper on Seaway Ventus before starting the East Anglia THREE project in the UK, where we will install 95 monopiles. In Taiwan we were active on Hai Long.

First quarter financial review
Revenue was $1.5 billion an increase of 10% compared to the prior year period. Adjusted EBITDA of $236 million equated to a margin of 15%, up from 12% in Q1 2024. A strong operational performance in Subsea and Conventional, and high activity in Taiwan in Renewables helped offset seasonal weakness and vessel maintenance.

Depreciation and amortisation charges were $160 million, resulting in net operating income of $77 million compared to $20 million in the prior year period. Net finance costs of $17 million and a net foreign exchange loss of $28 million, resulted in net income for the quarter of $17 million compared to $29 million in the prior year period.

Net cash generated from operating activities in the first quarter was $51 million, including a $163 million adverse movement in net working capital. Net cash used in investing activities was $68 million mainly related to purchases of property, plant and equipment. Net cash used in financing activities was $106 million including lease payments of $59 million. Overall, cash and cash equivalents decreased by $116 million in the quarter to $459 million at 31 March 2025 and net debt was $632 million, including lease liabilities of $400 million.

First quarter order intake was $0.9 billion comprising new awards of $0.4 billion and escalations of $0.5 billion resulting in a book-to-bill ratio of 0.6 times. Backlog at the end of March was $10.8 billion, of which $4.8 billion is expected to be executed in 2025, $3.5 billion in 2026 and $2.5 billion in 2027 and beyond.

Guidance

Our financial guidance for 2025 is unchanged. We continue to anticipate that revenue in 2025 will be between $6.8 billion and $7.2 billion, while the Adjusted EBITDA margin is expected to be within a range from 18% to 20%. Based on our firm backlog of contracts and the prospects in our tendering pipeline, we expect margins to exceed 20% in 2026.

Conference Call Information
Date: 30 April 2025
Time: 12:00 UK Time, 13:00 CET
Access the webcast at subsea7.com or https://edge.media-server.com/mmc/p/3v6564ut/
Register for the conference call https://register-conf.media-server.com/register/BI419d51592b6f40e8823c7efe91ab9dab

For further information, please contact:
Katherine Tonks
Head of Investor Relations
Tel: +44-20-8210-5568
Email: ir@subsea7.com

Special Note Regarding Forward-Looking Statements

This document may contain ‘forward-looking statements’ (within the meaning of the safe harbour provisions of the U.S. Private Securities Litigation Reform Act of 1995). These statements relate to our current expectations, beliefs, intentions, assumptions or strategies regarding the future and are subject to known and unknown risks that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements may be identified by the use of words such as ‘anticipate’, ‘believe’, ‘estimate’, ‘expect’, ‘future’, ‘goal’, ‘intend’, ‘likely’, ‘may’, ‘plan’, ‘project’, ‘seek’, ‘should’, ‘strategy’, ‘will’, and similar expressions. The principal risks which could affect future operations of the Group are described in the ‘Risk Management’ section of the Group’s Annual Report. Factors that may cause actual and future results and trends to differ materially from our forward-looking statements include (but are not limited to): (i) our ability to deliver fixed-price projects in accordance with client expectations and within the parameters of our bids, and to avoid cost overruns; (ii) our ability to collect receivables, negotiate variation orders and collect the related revenue; (iii) our ability to recover costs on significant projects; (iv) capital expenditure by oil and gas companies, which is affected by fluctuations in the price of, and demand for, crude oil and natural gas; (v) unanticipated delays or cancellation of projects included in our backlog; (vi) competition and price fluctuations in the markets and businesses in which we operate; (vii) the loss of, or deterioration in our relationship with, any significant clients; (viii) the outcome of legal proceedings or governmental inquiries; (ix) uncertainties inherent in operating internationally, including economic, political and social instability, boycotts or embargoes, labour unrest, changes in foreign governmental regulations, corruption and currency fluctuations; (x) the effects of a pandemic or epidemic or a natural disaster; (xi) liability to third parties for the failure of our joint venture partners to fulfil their obligations; (xii) changes in, or our failure to comply with, applicable laws and regulations (including regulatory measures addressing climate change); (xiii) operating hazards, including spills, environmental damage, personal or property damage and business interruptions caused by adverse weather; (xiv) equipment or mechanical failures, which could increase costs, impair revenue and result in penalties for failure to meet project completion requirements; (xv) the timely delivery of vessels on order and the timely completion of ship conversion programmes; (xvi) our ability to keep pace with technological changes and the impact of potential information technology, cyber security or data security breaches; (xvii) global availability at scale and commercial viability of suitable alternative vessel fuels; and, (xviii) the effectiveness of our disclosure controls and procedures and internal control over financial reporting. Many of these factors are beyond our ability to control or predict. Given these uncertainties, you should not place undue reliance on the forward-looking statements. Each forward-looking statement speaks only as of the date of this document. We undertake no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

This information is considered to be inside information pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act. This stock exchange release was published by Katherine Tonks, Investor Relations, Subsea7, on 30 April 2025 08:00 CET.

Attachments

The MIL Network –

April 30, 2025

MIL-OSI: Q1 Trading Update

Source: GlobeNewswire (MIL-OSI)

LEI: 213800ZBKL9BHSL2K459

OSB GROUP PLC: Trading update

Published: 30.04.2025

OSB GROUP PLC

Q1 2025 Trading update

OSB GROUP PLC (OSBG or the Group), the specialist lending and retail savings group, today issues its trading update for the period from 1 January 2025 to date.

Highlights

OSBG’s first quarter performance was in line with expectations and the Group is on track to meet its full year guidance
Originations were £1.1bn (Q1 2024: £1.0bn) in the first quarter
The Group’s net loan book was £25.2bn (31 December 2024: £25.1bn) as we maintained pricing discipline and focus on higher-yielding specialist sub-segments of Commercial, Asset Finance, Bridging and Development Finance
Retail deposits remained broadly flat at £23.8bn (31 December 2024: £23.8bn) and TFSME balance outstanding was £810m as at 31 March 2025 (31 December 2024: £1.4bn)
Three months plus arrears balances were 1.7% as at 31 March 2025, unchanged from the end of 2024, in line with modelled expectations
The Group has repurchased £15.7m worth of shares under the £100m share repurchase programme¹ which is due complete no later than 10 March 2026

As at market close on 29 April 2025

Andy Golding, CEO of OSB Group, said:

“I am pleased with the performance of our lending and savings franchises in the first quarter of 2025.

We continued to prioritise returns over growth when pricing new and retention mortgage products which led to a broadly flat net loan book compared to the end of 2024.

We saw growth in originations in more complex Buy-to-Let and our higher-yielding specialist sub-segments and retail deposit pricing remained in line with our assumptions with an attractive blended front book margin.

Retail deposits were broadly flat as the Group focused on optimising liquidity and utilised funds from the December securitisation to repay c.£600m of its TFSME balance. Since the end of the quarter, we have repaid a further c.£150m of this funding.

The transformation programme progressed well in the quarter with all new Kent Reliance fixed rate bonds now available on our new savings platform. I am proud that our focus on building and delivering excellent journeys for our customers was recognised in March by FS Tech award for Best Customer Service and Experience – Technology.

Given the Group’s performance to date, we are on track to deliver the 2025 guidance of low single digit net loan book growth, net interest margin of c.225bps, c.£270m of administrative expenses and low-teens RoTE.

The Board is cognisant of the geopolitical environment and continues to monitor its impact on the UK economy and the macroeconomic scenarios used in the Group’s IFRS 9 models.

The Group is well positioned to deliver on its guidance with attractive and sustainable returns for the shareholders and I look to the future with confidence.”

Enquiries:

OSB GROUP PLC

Alexander Holcroft t: 01634 838 973

Brunswick Group

Robin Wrench / Simone Selzer t: 020 7404 5959

About OSB GROUP PLC
OneSavings Bank plc (OSB) began trading as a bank on 1 February 2011 and was admitted to the main market of the London Stock Exchange in June 2014 (OSB.L). OSB joined the FTSE 250 index in June 2015. On 4 October 2019, OSB acquired Charter Court Financial Services Group plc (CCFS) and its subsidiary businesses. On 30 November 2020, OSB GROUP PLC became the listed entity and holding company for the OSB Group. The Group provides specialist lending and retail savings and is authorised by the Prudential Regulation Authority, part of the Bank of England, and regulated by the Financial Conduct Authority and Prudential Regulation Authority. The Group reports under two segments, OneSavings Bank and Charter Court Financial Services.

OneSavings Bank (OSB)
OSB primarily targets market sub-sectors that offer high growth potential and attractive risk-adjusted returns in which it can take a leading position and where it has established expertise, platforms and capabilities. These include private rented sector Buy-to-Let, commercial and semi-commercial mortgages, residential development finance, bespoke and specialist residential lending and asset finance.
OSB originates mortgages organically via specialist brokers and independent financial advisers through its specialist brands including Kent Reliance for Intermediaries and InterBay Commercial. It is differentiated through its use of highly skilled, experience-based manual underwriting and efficient operating model.
OSB is predominantly funded by retail savings originated through the long-established Kent Reliance name, which takes deposits online and through a network of branches in the South East of England. Diversification of funding is currently provided by securitisation programmes and the Bank of England’s Term Funding Scheme with additional incentives for SMEs.

Charter Court Financial Services Group (CCFS)
CCFS focuses on providing Buy-to-Let and specialist residential mortgages and retail savings products. It operates through its brands: Precise and Charter Savings Bank.
It is differentiated through risk management expertise and best-of-breed automated technology and systems, ensuring efficient processing, strong credit and collateral risk control and speed of product development and innovation. These factors have enabled strong balance sheet growth whilst maintaining high credit quality mortgage assets.
CCFS is predominantly funded by retail savings originated through its Charter Savings Bank brand. Diversification of funding is currently provided by securitisation programmes and the Bank of England’s Term Funding Scheme with additional incentives for SMEs.

Important disclaimer

This document should be read in conjunction with any other documents or announcements distributed by OSB GROUP PLC (OSBG) through the Regulatory News Service (RNS).

This document is not audited and contains certain forward-looking statements with respect to the business, strategy and plans of OSBG, its current goals, beliefs, intentions, strategies and expectations relating to its future financial condition, performance and results, and ESG ambitions, targets and commitments described herein. Such forward-looking statements include, without limitation, those preceded by, followed by or that include the words ‘targets’, ‘believes’, ‘estimates’, ‘expects’, ‘aims’, ‘intends’, ‘will’, ‘may’, ‘anticipates’, ‘projects’, ‘plans’, ‘forecasts’, ‘outlook’, ‘likely’, ‘guidance’, ‘trends’, ‘future’, ‘would’, ‘could’, ‘should’ or similar expressions or negatives thereof but are not the exclusive means of identifying such statements. Statements that are not historical or current facts, including statements about OSBG’s, its directors’ and/or management’s beliefs and expectations, are forward-looking statements. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend upon circumstances that may or may not occur in the future that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. Factors that could cause actual business, strategy, plans and/or results (including but not limited to the payment of dividends) to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements made by OSBG or on its behalf include, but are not limited to: general economic and business conditions in the UK and internationally, including any changes in global trade policies; market related trends and developments; fluctuations in exchange rates, stock markets, inflation, deflation, interest rates, energy prices and currencies; policies of the Bank of England, the European Central Bank and other G7 central banks; the ability to access sufficient sources of capital, liquidity and funding when required; changes to OSBG’s credit ratings; the ability to derive cost savings; changing demographic developments, and changing customer behaviour, including consumer spending, saving and borrowing habits; changes in customer preferences; changes to borrower or counterparty credit quality; instability in the global financial markets, including Eurozone instability, the potential for countries to exit the European Union (the EU) or the Eurozone, and the impact of any sovereign credit rating downgrade or other sovereign financial issues; technological changes and risks to cyber security; natural and other disasters, adverse weather and similar contingencies outside OSBG’s control; inadequate or failed internal or external processes, people and systems; acts of war and terrorist acts or hostility and responses to those acts; geopolitical events and diplomatic tensions; the impact of outbreaks, epidemics and pandemics or other such events; changes in laws, regulations, taxation, ESG reporting standards, accounting standards or practices, including as a result of the UK’s exit from the EU; regulatory capital or liquidity requirements and similar contingencies outside OSBG’s control; the policies and actions of governmental or regulatory authorities in the UK, the EU or elsewhere including the implementation and interpretation of key legislation and regulation; the ability to attract and retain senior management and other employees; the extent of any future impairment charges or write-downs caused by, but not limited to, depressed asset valuations, market disruptions and illiquid markets; market relating trends and developments; exposure to regulatory scrutiny, legal proceedings, regulatory investigations or complaints; changes in competition and pricing environments; the inability to hedge certain risks economically; the adequacy of loss reserves; the actions of competitors, including non-bank financial services and lending companies; the success of OSBG in managing the risks of the foregoing; and other risks inherent to the industries and markets in which OSBG operates.

Accordingly, no reliance may be placed on any forward-looking statement. Neither OSBG, nor any of its directors, officers or employees provides any representation, warranty or assurance that any of these statements or forecasts will come to pass or that any forecast results will be achieved. Any forward-looking statements made in this document speak only as of the date they are made and it should not be assumed that they have been revised or updated in the light of new information of future events. Except as required by the Prudential Regulation Authority, the Financial Conduct Authority, the London Stock Exchange PLC or applicable law, OSBG expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained in this document to reflect any change in OSBG’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. For additional information on possible risks to OSBG’s business, (which may cause actual results to differ materially from those expressed or implied in any forward-looking statement), please see the Risk review section in the OSBG Annual Report and Accounts 2024. Copies of this are available at www.osb.co.uk and on request from OSBG.

Nothing in this document or any subsequent discussion of this document constitutes or forms part of a public offer under any applicable law or an offer or the solicitation of an offer to purchase or sell any securities or financial instruments. Nor does it constitute advice or a recommendation with respect to such securities or financial instruments, or any invitation or inducement to engage in investment activity under section 21 of the Financial Services and Markets Act 2000. Past performance cannot be relied on as a guide to future performance. Statements about historical performance must not be construed to indicate that future performance, share price or results in any future period will necessarily match or exceed those of any prior period. Nothing in this document is intended to be, or should be construed as, a profit forecast or estimate for any period.

In regard to any information provided by third parties, neither OSBG nor any of its directors, officers or employees explicitly or implicitly guarantees that such information is exact, up to date, accurate, comprehensive or complete. In no event shall OSBG be liable for any use by any party of, for any decision made or action taken by any party in reliance upon, or for inaccuracies or errors in, or omission from, any third-party information contained herein. Moreover, in reproducing such information by any means, OSBG may introduce any changes it deems suitable, may omit partially or completely any aspect of the information from this document, and accepts no liability whatsoever for any resulting discrepancy.

Liability arising from anything in this document shall be governed by English law, and neither OSBG nor any of its affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with this document. Nothing in this document shall exclude any liability under applicable laws that cannot be excluded in accordance with such laws.

Certain figures contained in this document, including financial information, may have been subject to rounding adjustments and foreign exchange conversions. Accordingly, in certain instances, the sum or percentage change of the numbers contained in this document may not conform exactly to the total figure given.

The MIL Network –

April 30, 2025

MIL-OSI United Nations: Palau Establishes Steering Committee to Guide Passport Digitalization

Source: International Organization for Migration (IOM)

Ngerekebesang, Palau – The Government of Palau, in partnership with the International Organization for Migration (IOM) and with support from the Government of Japan, has launched its first official meeting under the Enhancing Border Management Capacity through the Introduction of an E-Passport for the Republic of Palau project.

Launched at the Embassy of Japan in Ngerekebesang on 18 April 2025., the project marks a significant milestone in the country’s efforts to align Palauan passports with international good practices to augment security of the passport issuance system. This shift will not only protect Palauan passport holders from identity theft but also ensure seamless access to passport application for all citizens.

The meeting convened key stakeholders including Gustav Aitaro, Minister of State, Hiroyuki Orikasa, Ambassador of Japan to Palau, senior officials from the Ministry of State, Finance, Justice and the Judiciary Branch along with representatives from IOM and the Embassy of Japan.

The USD 4.5 million initiative, funded by the Government of Japan, will transition Palauan passports to electronic, machine-readable passports (e-MRPs) that feature embedded biometric data, significantly improving security and global compatibility. Over the next three years, the project will digitalize Palau’s passport application and issuance systems and introduce new technologies and infrastructure to strengthen the country’s identity management capacity.

In his opening remarks, Minister Aitaro, reaffirmed the government’s commitment to strengthening travel document integrity and enhancing service delivery to Palauan citizens.

Ambassador Orikasa emphasized Japan’s strong partnership with Palau in building effective border systems.

Salvatore Sortino, IOM Chief of Mission for Micronesia, highlighted the project’s potential to improve travel convenience, reduce identity fraud, and strengthen regional security.

A key outcome of the meeting was the formal establishment of the Project Steering Committee, which will provide strategic oversight and ensure inter-agency coordination throughout the life of the project. Chaired by the Minister of State, the Committee comprises senior representatives from the Ministry of Finance, Ministry of Justice, Judiciary Branch, and Embassy of Japan (as an observer), with IOM serving as the Secretariat.

The E-Passport Project is a timely intervention that responds to the evolving mobility needs of Palauans and the realities of international travel in a post-pandemic world. It represents a major step forward in strengthening Palau’s border infrastructure and expanding access to secure, reliable travel documents for all its citizens. The members of the Steering Committee will meet again in August to review project progress.

***

For more information, please contact at IOM Micronesia: Yohan Senarath at ysenarath@iom.int in Palau or Haimanot Abebe at haabebe@iom.int, +691 320 8735 in the Federated States of Micronesia

MIL OSI United Nations News –

April 30, 2025

MIL-OSI USA: At Senate Hearing, Murray Highlights Lack of Transparency and Stonewalling at VA, Efforts to Address MST, and Need for Practical Telework Policies in Health Care Settings

US Senate News:

Source: United States Senator for Washington State Patty Murray
Senator Murray: “I hope that Secretary Collins—who says he’s running the most transparent VA in history—decides that VA can be transparent enough to let a senator hold a discussion about VA healthcare onsite at the local VA, as I have done for over 30 years and I know other members have as well.”
ICYMI: After Trump Admin Refuses to Allow VA to Host Discussion on Women Veterans’ Health Care, Senator Murray Meets with Women Veterans and Advocates In Seattle
ICYMI: At Senate Hearing, Senator Murray Highlights Devastating Cuts to VA Workforce, and Presses Nominees on Willingness to Comply with the Law
*** VIDEO of Senator Murray’s Remarks and Questioning HERE***
Washington, D.C. — Today, at a Senate Veterans’ Affairs Committee hearing to address veterans’ mental health, U.S. Senator Patty Murray (D-WA), a senior member and former Chair of the Senate Veterans’ Committee, questioned Dr. Thomas O’Toole, Acting Assistant Undersecretary for Health and Clinical Services at Veterans Health Administration, on the importance of transparency and communication between veterans and VA after the Trump administration recently prohibited VA Puget Sound from either hosting or participating in a roundtable with Senator Murray and local Seattle area veterans on women’s health. Senator Murray also questioned how the Trump administration’s mass firings might undermine care for veterans who have dealt with sexual trauma and also raised the administration’s return to office policy and its disruptive impact on patients and providers.
Senator Murray began by emphasizing the importance of hearing directly from the VA and VA providers to improve mental health care outreach and noted that last week, VA Puget Sound was denied the ability to host and participate in a roundtable discussion with Senator Murray in Seattle, asking O’Toole, “Can you explain why having both the VA and veterans together is important for a robust conversation?”
O’Toole responded, “Thank you Senator, and I appreciate it. I’m not familiar with the situation you’re describing, so unfortunately, I can’t comment to that, and to the specifics or to the approval, or lack of. But absolutely we are informed by our veterans, it helps us be a better agency and a better organization, and it’s something we try to encourage in as many capacities as we can.”
Murray pressed, “Well do you know if the new policy that prevents elected officials from meeting with veterans at VA facilities comes from within VHA or does it come from political leadership at VA Central Office?”
“I would have to defer to our leadership in terms of describing it better than I can myself,” O’Toole replied.
Murray said, “Ok, well Mr. Chairman this is really important and I hope that Secretary Collins—who says he’s running the most transparent VA in history—decides that VA can be transparent enough to let a senator hold a discussion about VA healthcare onsite at the local VA, as I have done for over 30 years and I know other members have as well. So, I am not done with this topic.”
Murray addressed the fact that women are more likely to seek care through VA, and also more likely to be dealing with depression, anxiety, or sexual trauma. In 2022, suicide rates for women veterans with histories with sexual trauma were 75 percent higher than those without. Murray stressed getting in touch with these veterans can literally mean the difference between life and death, and said, “However, in February, President Trump and Musk fired more than 2,400 VA employees, including dedicated health professionals who staff the phones at VA’s veteran crisis line.”
“What steps is VA taking now to reach survivors of military sexual trauma?” Murray asked O’Toole.
O’Toole replied, “Thank you Senator. Well, first in relation to the veteran crisis line—that decision was reversed, and we have actually seen a net increase in staff working in the veteran crisis line, and I’m happy to report that outcome. The outreach and specifically efforts for women who are victims of military sexual trauma has been incorporated into our reach vet, and reach vet algorithm, so that we are specifically identifying and engaging those women to make sure that we are providing better care. I’d like to defer to Mr. Fisher who can also speak specifically to some of the efforts at the veteran resource centers as well.”
Mr. Fischer added, “Thank you Senator for the question, so vet centers have historically gone out and reached out to any veteran cohort and servicemember cohort that’s eligible for vet center services. That includes women veterans, that includes individuals who experience military sexual trauma. We’ve continued to do this since the change of the administration. Our outreach staff, as well as our counseling staff at vet centers are exempted from any hiring freeze. And what we can say specific to women veterans is that every year we see increases in the number of women veterans that are coming into vet centers. We also see high trust scores with women veterans who receive vet center services. Last year was at 93%.”
Murray continued by pressing, “I don’t see how 80,000 employees being removed will help the VA provide services.”
Murray pivoted to how remote work agreements have allowed VA to hire more mental health providers to treat disabled, rural, and geriatric veterans who have difficulty travelling to VA hospitals for in-person appointments. Now, VA providers are being required to work in-person, Murray said, “Those providers have been working remotely since before the pandemic and now, instead of being able to take video calls in private offices, they’re speaking with veteran patients in open floor spaces where there is no privacy. This is a violation of veterans’ privacy, it’s a violation of HIPAA, it is leading doctors and counselors to look elsewhere for work. I am almost out of time, I just want to say that the elimination of telework agreements is really affecting our veterans access to mental healthcare, and we need to have a further conversation with you about how we can fix that.”
Senator Murray was the first woman to join the Senate Veterans’ Affairs Committee and the first woman to chair the Committee—as the daughter of a World War II veteran, supporting veterans and their families has always been an important priority for her. Senator Murray has been a leading voice in the Senate speaking out forcefully against President Trump and Elon Musk’s mass firing of VA employees and VA researchers across the country and Elon Musk and DOGE’s infiltration of the VA, including accessing veterans’ sensitive personal information. In recent weeks, Senator Murray and her colleagues sent letters to VA Secretary Doug Collins demanding that the VA swiftly reverse moves to cut VA researchers, as well as multiple letters pressing Secretary Collins to sever Elon Musk and DOGE’s access to any VA or other government system with information about veterans, and protect veterans, their families, and VA staff from unprecedented access to sensitive information. Senator Murray grilled Trump’s nominee for VA Deputy Secretary, Dr. Paul Lawrence, on the mass firings of VA employees and VA researchers, and voted against Doug Collins’s nomination to be VA Secretary in early February, sounding the alarm over reports of DOGE at the VA and making clear that the Trump administration’s lawlessness was putting our national security and our veterans at risk.

MIL OSI USA News –

April 30, 2025

MIL-OSI: Orca Energy Group Inc. Announces 2024 Year End Audited Financial Results

Source: GlobeNewswire (MIL-OSI)

TORTOLA, British Virgin Islands, April 29, 2025 (GLOBE NEWSWIRE) — Orca Energy Group Inc. (“Orca” or “the Company” and includes its subsidiaries and affiliates) (TSX-V: ORC.A, ORC.B) today announced its audited financial results for the fourth quarter (“Q4 2024“) and year ended December 31, 2024. All dollar amounts are in United States dollars unless otherwise stated.

Revenue increased by 51% for Q4 2024 and by 1% for the year ended December 31, 2024 compared to the same prior year periods. Certain volumes were supplied as Protected Gas (defined below) prior to July 31, 2024. After the termination of Protected Gas after July 31, 2024, those volumes were instead supplied as Additional Gas (defined below). These volumes, which were delivered to Songas Limited (“Songas“) in August, September and October 2024 and for which the Company did not receive compensation, have not been recognized in revenue in 2024. These unrecognized gross revenues include 80.5% of sales to Songas in the amount of $6.2 million.
On October 30, 2024, PanAfrican Energy Tanzania Limited (“PAET”), a wholly-owned subsidiary of the Company, was advised by Songas that the Interim Power Purchase Agreement (“PPA”) between Tanzania Electric Supply Company Limited (“TANESCO“) and Songas would expire on October 31, 2024, and that it was unknown if a new PPA would be entered into. At midnight on October 31, 2024 Songas shut down the Songas Power Plant. In the event that a new PPA is not entered into, there is a possibility that the Songas Power Plant will be shut down indefinitely. To date the Songas Power Plant remains shutdown. This has adversely impacted demand for production volumes from the Songo Songo gas field.
Gas delivered and sold decreased by 3% for Q4 2024 and by 15% for the year ended December 31, 2024 compared to the same prior year periods. During 2024, Tanzania’s Julius Nyerere Hydropower Project (“JNHPP”) commenced commercial operations, with progressive commissioning of 5 turbines allowing peak output of over 700 MW. Combined with the early onset of the wet season and rainfall well above seasonal averages for the period, hydro power generation and the Songas Power Plant shutdown have been the primary factors in reduced gas liftings for the power sector.
On April 14, 2023, PAET formally requested Tanzanian Petroleum Development Corporation (“TPDC“) apply for an extension of the Songo Songo Development License (the “License”). TPDC is contractually required to make this application promptly upon a request by the Company. There are currently no certainties on the timing, nature and extent of any such extensions. Until such extension has been finalized, a high degree of uncertainty exists with respect to the extent of the Company’s operating activities subsequent to October 2026, when the License is set to expire. In November 2024, TPDC submitted the application for the extension of the License to the Ministry of Energy (“MoE“), however, being uneconomical, the Company informed TPDC that it did not agree with the terms as submitted. Having declined to address PAET’s concerns itself, TPDC has refused to rescind and resubmit the application and has advised PAET to raise any issues directly to the MoE. Our Counsel subsequently submitted a letter to the MoE, requesting a meeting to address the issues, to date we haven’t had a response.
On April 15, 2024, contrary to the terms of the Gas Agreement and Production Sharing Agreement (the “PSA”) and in violation of Pan African Energy Corporation (Mauritius) (“PAEM”) and PAET’s expectations, the Permanent Secretary of MoE wrote to TPDC, copying PAET and Songas, directing TPDC to “ensure that Protected Gas continues to be produced to the end of the Development Licence on 10th October 2026”. Consistent with that instruction, TPDC took the position that Protected Gas should continue despite the parties’ contractual agreement that Protected Gas ceased after July 31, 2024.
PAET, TPDC and Tanzania Portland Cement PLC (“TPCPLC”) subsequently agreed to the terms of the Supplementary Gas Agreement (“SGA”) to sell volumes after July 31, 2024 as Additional Gas, which, prior to August 1, 2024, were supplied as Protected Gas. TPCPLC has fully paid the Company $10.4 million of the receivable outstanding as at December 31, 2024.
Following cessation of Protected Gas after July 31, 2024, despite the absence of an executed contract to do so, Songas continued to lift gas volumes in August, September and October 2024, at an average rate of 20.2 MMcfd. On September 23, 2024, the Company was notified by Songas that it acknowledges it had lifted this volume, but due to TPDC’s refusal to approve a Gas Sales Agreement for this Additional Gas, they would elect to pay for only 19.5% of such volumes. This accords with the payment arrangements for Complex Additional Gas (defined below). Payments were made on this basis by Songas in Q4 2024, in the amount of $1.9 million representing 19.5% of the total invoiced amount of $9.7 million.
On August 7, 2024, PAET and PAEM issued a notice of dispute (“Notice of Dispute”) in respect of an investment treaty claim against the GoT for breach of the Agreement on Promotion and Reciprocal Protection of Investment between the Government of the Republic of Mauritius and the GoT (“BIT”), and a contractual dispute against the Government of Tanzania (“GoT”) and TPDC, for breaches of the: (i) PSA, and (ii) the Gas Agreement. Initial meetings with both the Advisory and Coordinating Committees were held during the week of October 14, 2024 without any resolution on the key issues in dispute. The matters have been further referred to the relevant entity’s chief executive officers and working groups in accordance with the dispute resolution process. Discussions continued with meetings held in March 2025 . Further updates on this matter will be made as appropriate.
In February 2025, the Company received a judgment (the “Judgment”) from the Tanzanian High Court (Commercial Division) (the “Court”) for a claim brought by a contractor against PAET. The claim was brought by the contractor for losses arising from PAET’s termination of a contract relating to the Company’s 3D seismic acquisition program. The contract was signed in 2022 and works were due to be completed by the end of 2022. However, work only commenced in 2023 and was never completed. Pursuant to the Judgment, the Court ordered specific and general damages in the aggregate of $23.1 million, plus legal costs and interest at a rate of 7% per annum be paid by PAET to the contractor. PAET respectfully disagrees with the Judgement and has initiated the appeal process. PAET was required to post security for the full amount of the Judgment until the appeal is resolved. The Company has recognised the resulting liability in 2024 based on the Judgement applied. The Company has initiated the appeal process, and if successful in that process, a reversal would be recognized in earnings at that time.
The well intervention operations on SS-7 have now concluded. The work program, following a complex mobilization to Songo Songo Island, sought to restore the mechanical integrity of the well to shutoff water production in order to restart production from the southern compartment of the Songo Songo gas field. Following several remedial cement treatments to shut off the lower water producing zone and reperforation of the upper Neocomian sands, limited and unsustained gas flows were observed. The Company, in line with its contingency plans, set a cement plug above the Neocomian interval and perforated the shallower Cenomanian sands. Having completed all possible downhole work, and after an unsuccessful attempt to produce gas from the Cenomanian sands, the Company ceased well intervention operations and demobilized the barge and jack-up from the SS-7 site. The total expected project cost has increased to $25.9 million from $23.5 million, primarily as a result of the significant attempts required to shut off water and reproduce the well. A comprehensive post project analysis will be carried out to evaluate the intervention results, which have not met production expectations. During the year, the Company recorded an asset impairment expense of $25.9 million with respect to the SS-7 well workover program.
The Company completed a production and saturation logging program in three wells: SS-3, SS-10 and SS-5. Results indicate that the wells and field are performing in line with expectations, and have been used to update longer term reservoir management plans. The total expected program cost increased to $2.2 million from $1.3 million.
Net loss attributable to shareholders amounted to $21.6 million for the year ended December 31, 2024 compared to net income attributable to shareholders of $7.0 million for the same prior year period. In Q4 2024, the Company recorded an asset impairment expense of $25.9 million with respect to the SS-7 well workover program and a loss allowance of $21.7 million with respect to the ongoing litigation relating to the Judgment in the High Court of Tanzania.
Net cash flows from operating activities decreased by 37% for Q4 2024 and by 44% for the year ended December 31, 2024 compared to the same prior year periods. The decrease for the year ended December 31, 2024 over the comparable prior year period is mainly a result of changes in non-cash working capital.
Capital expenditures increased by 635% for Q4 2024 and by 244% for the year ended December 31, 2024 compared to the same prior year periods. The capital expenditures in 2024 primarily related to the well workover program. The capital expenditures in 2023 primarily related to the initial costs of the well workover program and the 3D seismic acquisition program.
The Company exited the period with $21.9 million in working capital (December 31, 2023: $67.3 million), cash and cash equivalents of $90.1 million (December 31, 2023: $101.6 million) and long-term debt of $ nil (December 31, 2023: $30.0 million). Cash held in hard currencies (USD, Euro, GBP, CDN) was $87.1 million, as at December 31, 2024 (December 31, 2023: $60.4 million). The decrease in long-term debt is related to a repayment of principal of $10.0 million in April 2024 and October 2024, representing the fourth and fifth semi-annual repayments of the Company’s long-term debt as well as maturing of the outstanding loan principal.
Subsequent to December 31, 2024, the Company fully prepaid the $60 million investment (the “Loan”) made by International Finance Corporation (“IFC”) in PAET, pursuant to a loan agreement dated October 29, 2015 between the IFC, PAET and the Company (the “Loan Agreement”). To effect the foregoing prepayment, the Company paid to IFC $30.6 million, representing the aggregate outstanding principal of the Loan together with all accrued interest thereon and all other amounts owing in connection with the Loan as of February 21, 2025. As of the date hereof, the annual variable participating interest granted by PAET to the IFC under the terms of the Loan Agreement remains outstanding.
As at December 31, 2024, the current receivable from TANESCO was $12.7 million (December 31, 2023: $5.9 million). The TANESCO long-term receivable as at December 31, 2024 and as at December 31, 2023 was $22.0 million and has been fully provided for. Subsequent to December 31, 2024, the Company has invoiced TANESCO $14.5 million for Q1 2025 gas deliveries. TANESCO has paid the Company $24.2 million to date which relate to the outstanding amount at December 31, 2024 and payments for a portion of Q1 2025 gas deliveries
Total working interest proved conventional natural gas reserves (“1P”) and total proved plus probable conventional natural gas reserves (“2P”) decreased by 53% and 56%, respectively, as at December 31, 2024 compared to the prior year. The decrease was primarily attributed to 26.7 Bcf of production in 2024 and 18.1 Bcf of negative technical revisions. The technical revisions were primarily due to lower forecasted gas sales to the end of the License attributed to increased hydro power use in Tanzania and the removal of Proved Undeveloped reserves due to the unsuccessful well intervention on SS-7. The net present value of lower reserves and estimated future cash flows from 2P reserves at a 10% discount rate decreased by 45% compared to the previous year mainly as a result of lower reserves at year end 2024 and the associated 33% reduction in the number of years outstanding on the current License.
We currently forecast average Additional Gas sales for 2025 to be in the range of 70-72 MMcfd for the full year which is estimated to be 4% lower than 2024. Given the uncertainty associated with the extension of the License, capital allocations for development projects will be minimal during 2025 and limited to the implementation of essential safety and maintenance matters only.

Financial and Operating Highlights for the Three Months and Year Ended December 31, 2024
	Three Months ended December 31				% Change				Year ended December 31					% Change
(Expressed in $’000 unless indicated otherwise)	2024		2023		Q4/24 vs Q4/23				2024	2023				Ytd/24 vs Ytd/23
OPERATING
Daily average gas delivered and sold(MMcfd)	78.6		80.8		(3)%			72.9		85.6			(15			)%
Industrial	19.7		13.4		47%			16.1		13.7			18			%
Power	58.9		67.4		(13)%			56.8		71.9			(21			)%
Daily average gas delivered and sold and revenue recognized(MMcfd)	71.8		80.8		(11)%			68.8		85.6			(20			)%
Industrial	19.7		13.4		47%			16.1		13.7			18			%
Power	52.1		67.4		(23)%			52.7		71.9			(27			)%
Average price($/mcf)
Industrial	7.35		8.97		(18)%		8.45			8.73				(3)%
Power	3.90		3.84		2%		3.88			3.71				5%
Weighted average	4.85		4.69		3%		4.95			4.51				10%
Operating netback($/mcf)1	3.56		2.28		56%		3.13			2.38				32%
FINANCIAL
Revenue	36,855		24,448		51%		111,593			110,235				1%
Net (loss) / income attributable to shareholders	(25,821	)	(438	)	n/m		(21,578)			7,014				n/m
per share – basic and diluted($)	(1.31	)	(0.02	)	n/m		(1.09)			0.35				n/m
Net cash flows from operating activities	6,254		9,858		(37)%		27,086			48,485				(44)%
per share – basic and diluted($)1	0.32		0.50		(36)%		1.37			2.44				(44)%
Capital expenditures1	14,869		2,065		620%		27,548			8,103				240%
Weighted average Class A and Class B Shares1(‘000)	19,772		19,826		0%		19,780			19,841				0%
					December 31,					As at December 31,
					2024					2023				% Change
Working capital (including cash)¹						21,904						67,323		(67	)%
Cash and cash equivalents						90,076						101,566		(11	)%
Long-term loan						–					21,961			(100	)%
Outstanding shares(‘000)
Class A						1,750						1,750		0	%
Class B						18,022						18,051		0	%
Total shares outstanding						19,772						19,801		0	%
RESERVES²
Gross Reserves(Bcf)
Proved						40						85		(53)%
Probable						1						9		(89)%
Proved plus probable						41						94		(56)%
Net Present Value, discounted at 10%($ million)
Proved									62			108		(43)%
Proved plus probable									65			119		(45)%

¹ See Non-GAAP Financial Measures and Ratios.

Jay Lyons, Chief Executive Officer, commented:

“Orca remains committed to Tanzania and wants to play a key role in Tanzania’s power generation strategy for the foreseeable future. Although demand for power in Tanzania is growing rapidly, surpassing the country’s current capacity, Orca has been unable to agree with the Government of Tanzania and TPDC with regard to securing a license extension for the Songo Songo gas field.

Given the limited time remaining on the License, and the lack of a resolution on an extension, Orca has limited capital spending to only essential safety and maintenance activities. At this current moment, further investment is not commercially viable unless the License is extended. Therefore, in order to preserve shareholder value, Orca has focused on reducing costs, operating efficiently, and minimizing expenditures.

There are currently no certainties on the timing, nature and extent of any such extensions. Until such extension has been finalized, a high degree of uncertainty exists with respect to the extent of the Company’s operating activities subsequent to October 2026. The Company is prepared to invest further in Tanzania. However, this investment depends on resolving the License extension and achieving a sustainable commercial framework. Without a resolution, Orca must act to protect the interests of its shareholders, even as it continues to support Tanzania’s long-term energy goals.”

The Company’s complete Audited Consolidated Financial Statements and Notes and Management’s Discussion & Analysis for the year ended December 31, 2024 may be found on the Company’s website www.orcaenergygroup.com or on the Company’s profile on SEDAR+ at www.sedarplus.ca.

Orca Energy Group Inc.

Orca Energy Group Inc. is an international public company engaged in natural gas development and supply in Tanzania through its subsidiary PanAfrican Energy Tanzania Limited. Orca trades on the TSX Venture Exchange under the trading symbols ORC.B and ORC.A.

The principal asset of Orca is its indirect interest in the with TPDC and the GoT in the United Republic of Tanzania. This PSA covers the production and marketing of certain gas from the License offshore Tanzania. The PSA defines the gas produced from the Songo Songo gas field as “Protected Gas“ and “Additional Gas“. The Gas Agreement defined “Complex Additional Gas”, to be gas produced from the Songo Songo gas field, which is included in Additional Gas. Under the Gas Agreement, until July 31, 2024, Protected Gas was owned by TPDC and was sold to Songas and TPCPLC. After July 31, 2024, Protected Gas ceased and all production from the Songo Songo gas field constitutes Additional Gas which PAET and TPDC are entitled to sell on commercial terms until the PSA expires in October 2026. Songas is the owner of the infrastructure that enables the gas to be processed and delivered to Dar es Salaam, which includes a gas processing plant on Songo Songo Island. Additional Gas is all gas that is produced from the Songo Songo gas field in excess of Protected Gas.

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

Abbreviations

Bcf	billion standard cubic feet
MMcf	million standard cubit feet
MMcfd	million standard cubic feet per day

Non-GAAP Financial Measures and Ratios
In this press release, the Company has disclosed the following non-GAAP financial measures, non-GAAP ratios and supplementary financial measures: capital expenditures, operating netback, operating netback per mcf, working capital, net cash flows from operating activities per share and weighted average Class A and Class B Shares.

These non-GAAP financial measures and ratios disclosed in this press release do not have any standardized meaning under IFRS and may not be comparable to similar financial measures disclosed by other issuers. These non-GAAP financial measures and ratios should not, therefore, be considered in isolation or as a substitute for, or superior to, measures and ratios of the Company’s financial performance defined or determined in accordance with IFRS. These non-GAAP financial measures and ratios are calculated on a consistent basis from period to period.

Non-GAAP Financial Measures

Capital expenditures
Capital expenditures is a useful measure as it provides an indication of our investment activities. The most directly comparable financial measure is net cash from (used in) investing activities. A reconciliation to the most directly comparable financial measure is as follows:

	Three Months ended December 31				Year ended December 31
$’000	2024		2023		2024		2023
Pipelines, well workovers and infrastructure	14,869		2,067		27,233		7,984
Other capital expenditures	–		(2	)	315		119
Capital expenditures	14,869		2,065		27,548		8,103
Right of use	–		852		57		852
Change in non-cash working capital	(4,125	)	(708	)	(9,645	)	(161	)
Net cash used by investing activities	10,744		2,209		17,960		8,794

Operating netback

Operating netback is calculated as revenue less processing and transportation tariffs, TPDC’s revenue share, and operating and distribution costs. The operating netback summarizes all costs that are associated with bringing the gas from the Songo Songo gas field to the market, it is a measure of profitability. A reconciliation to the most directly comparable financial measure is as follows:

	Three Months ended December 31				Year ended December 31
$’000	2024		2023		2024		2023
Revenue	36,855		24,448		111,593		110,235
Production, distribution and transportation expenses	(5,265	)	(4,576	)	(19,990	)	(19,197	)
Net Production Revenue	31,590		19,872		91,603		91,038
Less current income tax adjustment (recorded in revenue)	(8,061	)	(2,896	)	(12,817	)	(16,527	)
Operating netback	23,529		16,976		78,786		74,511
Sales volumes MMcf where revenue is recognized	6,604		7,435		25,185		31,256
Netback $/mcf	3.56		2.28		3.13		2.38

Non-GAAP Ratios

Operating netback per mcf

Operating netback per mcf represents the profit margin associated with the production and sale of Additional Gas and is calculated by taking the operating netback and dividing it by the volume of Additional Gas delivered and sold. This is a key measure as it demonstrates the profit generated from each unit of production.

Supplementary Financial Measures

Working capital

Working capital is defined as current assets less current liabilities, as reported in the Company’s Consolidated Statements of Financial Position. It is an important measure as it indicates the Company’s ability to meet its financial obligations as they fall due.

Net cash flows from operating activities per share

Net cash flows from operating activities per share is calculated as net cash flows from operating activities divided by the weighted average number of shares, similar to the calculation of earnings per share. Net cash flow from operations is an important measure as it indicates the cash generated from the operations that is available to fund ongoing capital commitments.

Weighted average Class A and Class B Shares

In calculating the weighted average number of shares outstanding during any period the Company takes the opening balance multiplied by the number of days until the balance changes. It then takes the new balance and multiplies that by the number of days until the next change, or until the period end. The resulting multiples of shares and days are then aggregated and the total is divided by the total number of days in the period.

Forward-Looking Statements

This press release contains forward-looking statements or information (collectively, “forward-looking statements”) within the meaning of applicable securities legislation. All statements, other than statements of historical fact included in this press release, which address activities, events or developments that Orca expects or anticipates to occur in the future, are forward-looking statements. Forward-looking statements often contain terms such as may, will, should, anticipate, expect, continue, estimate, believe, project, forecast, plan, intend, target, outlook, focus, could and similar words suggesting future outcomes or statements regarding an outlook. More particularly, this press release contains, without limitation, forward-looking statements pertaining to the following: anticipated average gas sales, including Additional Gas sales, for 2024; ongoing negotiation of new commercial terms and discussion of requirements under the Gas Agreement with Songas and TPCPLC; ongoing discussion of PGSA extension with TANESCO; assessment by the Company of the merits of the claim made by the seismic contractor and the timing of the scheduled hearing; planned intervention in offshore well SS-7 including timing, project costs and the anticipated increased gas delivery; planned installation of a new common well inlet manifold and its anticipated timing, costs and effects; planned production logging program at various wells and its anticipated timing, costs and effects; implementation of a new work program at the Songas plant and forecasted production improvement as a result; the Company’s expectation that capital projects will be funded through the Company’s working capital; the Company’s expectation that all capital allocation decisions will be based upon prudent economic evaluations and returns; extension of the development license and the Company’s expectation to continue to actively engage with the MoE to progress the license extension; maintenance of gas sale contract discipline by the Company in accordance with its gas supply agreements; and the Company’s expectations regarding supply and demand of natural gas. In addition, statements relating to “reserves” are by their nature forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions that the reserves described can be produced profitably in the future. The recovery and reserve estimates of the Company’s reserves provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. Although management believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, access to resources and infrastructure, performance or achievement since such expectations are inherently subject to significant business, economic, operational, competitive, political and social uncertainties and contingencies.

These forward-looking statements involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company’s control, and many factors could cause the Company’s actual results to differ materially from those expressed or implied in any forward-looking statements made by the Company, including, but not limited to: risk that the Company may incur losses and legal expenses as a result of the claim brought forth by the seismic contractor; risk that the cost, timing and anticipated benefits from the Company’s various development programs in 2024 are different than expected; that not all capital allocation decisions will be based upon prudent economic evaluations and returns; inability to extend the development license and inability to maintain gas sale contract discipline; uncertainties with respect to negotiations involving the Gas Agreement; changes to forecasts regarding future development capital spending and source of capital funding; risk of future restrictions on the movement of cash from Jersey, Mauritius or Tanzania; occurrence of circumstance or events which significantly impact the Company’s cash flow and liquidity and the Company’s ability cover its long-term and short-term obligations or fund planned capital expenditures; prolonged foreign exchange reserves deficiency in Tanzania; the lack of availability of US dollars; inability to convert Tanzanian shillings into US dollars as and when required; discontinuation of work by the Company with the GoT on alternative development plan for longer term field development; lack of access to Songas processing and transportation facilities; risk of reduced current and potential production capacity of the Songo Songo gas field; the Company’s expectations regarding the supply and demand of natural gas is incorrect; uncertainty associated with the evolution of Tanzanian legislation; the risk of unanticipated effects regarding changes to the Company’s tax liabilities and its operations as a result of amendments made to existing legislation, the implementation of further legislation and the Company’s interpretation of the same; the impact of general economic conditions in the areas in which the Company operates; civil unrest; the susceptibility of the areas in which the Company operates to outbreaks of disease; industry conditions; changes in laws and regulations including the adoption of new environmental laws and regulations; impact of local content regulations and variances in the interpretation and enforcement of such regulations; the lack of availability of qualified personnel or management; fluctuations in commodity prices, foreign exchange or interest rates; stock market volatility; competition for, among other things, capital, oil and gas field services and skilled personnel and increased competition; failure to obtain required equipment for field development; delays in development plans; effect of changes to the PSA on the Company as a result of the implementation of new government policies for the oil and gas industry; inaccurate reserves estimates; incorrect forecasts in production and growth potential of the Company’s assets; obtaining required approvals of regulatory authorities; risks associated with negotiating with foreign governments; inability to satisfy debt conditions of financing; risk that the Company will not be able to fulfil its contractual obligations; risk that trade and other receivables may not be paid by the Company’s customers when due; the risk that the Company’s Tanzanian operations will not provide near term revenue earnings; reduced global economic activity as a result of the continuing impacts of geo-political conflicts or pandemics. In addition, there are risks and uncertainties associated with oil and gas operations, therefore the Company’s actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by these forward-looking statements will transpire or occur, or if any of them do so, what benefits the Company will derive therefrom. Readers are cautioned that the foregoing list of factors is not exhaustive.

Future shareholder returns, including but not limited to the payment of dividends or other distributions to shareholders, if any, and the level thereof is uncertain. Any decision to pay further distributions on the Class A Shares and Class B Shares (including the actual amount, the declaration date, the record date and the payment date in connection therewith) will be subject to the discretion of the Board of Directors of the Company and may depend on a variety of factors, including, without limitation the Company’s business performance, financial condition, financial requirements, growth plans, expected capital requirements and other conditions existing at such future time including, without limitation, contractual restrictions and compliance with applicable laws. There can be no assurance that the Company will pay any distributions in the future.

Such forward-looking statements are based on certain assumptions made by the Company in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors the Company believes are appropriate in the circumstances, including, but not limited to, the anticipated supply and demand of natural gas are in line with the Company’s expectations; the Company’s average Additional Gas sales are in line with forecasts; accurate assessment by the Company of the merit of claims brought forward by the seismic contractor; successful negotiation of the Gas Agreement; successful implementation of various development programs at the budgeted expenditures, including the planned intervention in the SS-7 well; all capital allocation decisions will be based upon prudent economic evaluations and returns; extension of the development license and maintenance of gas sale contract discipline on a go-forward basis pursuant to the Company’s gas supply agreements; that the Company will receive payment of arrears from TANESCO; that the Company will have sufficient cash flow, debt or equity sources or other financial resources required to fund its capital and operating expenditures and requirements as needed; that there will continue to be no restrictions on the movement of cash from Mauritius, Jersey or Tanzania; availability of US dollars and that the Company will continue to be able to convert Tanzanian shillings into US dollars as required; that the Company will successfully negotiate agreements; receipt of required regulatory approvals; the ability of the Company to increase production as required to meet demand; infrastructure capacity; commodity prices will not deteriorate significantly; the ability of the Company to obtain equipment and services in a timely manner to carry out exploration, development and exploitation activities; future capital expenditures; availability of skilled labor; timing and amount of capital expenditures; uninterrupted access to infrastructure; that the impact of increasing competition is consistent with expectations; conditions in general economic and financial markets; effects of regulation by governmental agencies; current or, where applicable, proposed industry conditions, laws and regulations will continue in effect or as anticipated as described herein; the effect of new environmental and climate-change related regulations will not negatively impact the Company; the Company is able to maintain strong commercial relationships with the GoT and other state and parastatal organizations; the current and future administration in Tanzania continues to honor the terms of the PSA and the Company’s other principal agreements; and other matters.

The forward-looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

The MIL Network –

April 30, 2025

MIL-OSI Global: Did ‘induced atmospheric vibration’ cause blackouts in Europe? An electrical engineer explains the phenomenon

Source: The Conversation – Global Perspectives – By Mehdi Seyedmahmoudian, Professor of Electrical Engineering, School of Engineering, Swinburne University of Technology

The lights are mostly back on in Spain, Portugal and southern France after a widespread blackout on Monday.

The blackout caused chaos for tens of millions of people. It shut down traffic lights and ATMs, halted public transport, cut phone service and forced people to eat dinner huddled around candles as night fell. Many people found themselves trapped in trains and elevators.

Spain’s prime minister, Pedro Sánchez, has said the exact cause of the blackout is yet to be determined. In early reporting, Portugal’s grid operator REN was quoted as blaming the event on a rare phenomenon known as “induced atmospheric vibration”. REN has since reportedly refuted this.

But what is this vibration? And how can energy systems be improved to mitigate the risk of widespread blackouts?

How much does weather affect electricity?

Weather is a major cause of disruptions to electricity supply. In fact, in the United States, 83% of reported blackouts between 2000 and 2021 were attributed to weather-related events.

The ways weather can affect the supply of electricity are manifold. For example, cyclones can bring down transmission lines, heatwaves can place too high a demand on the grid, and bushfires can raze substations.

Wind can also cause transmission lines to vibrate. These vibrations are characterised by either high amplitude and low frequency (known as “conductor galloping”), or low amplitude and high frequency (known as “aeolian vibrations”).

These vibrations are a significant problem for grid operators. They can place increased stress on grid infrastructure, potentially leading to blackouts.

To reduce the risk of vibration, grid operators often use wire stabilisers known as “stock bridge dampers”.

What is ‘induced atmospheric vibration’?

Vibrations in power lines can also be caused by extreme changes in temperature or air pressure. And this is one hypothesis about what caused the recent widespread blackout across the Iberian peninsula.

As The Guardian initially reported Portugal’s REN as saying:

Due to extreme temperature variations in the interior of Spain, there were anomalous oscillations in the very high voltage lines (400 kV), a phenomenon known as “induced atmospheric vibration”. These oscillations caused synchronisation failures between the electrical systems, leading to successive disturbances across the interconnected European network.

In fact, “induced atmospheric vibration” is not a commonly used term, but it seems likely the explanation was intended to refer to physical processes climate scientists have known about for quite some time.

In simple terms, it seems to refer to wavelike movements or oscillations in the atmosphere, caused by sudden changes in temperature or pressure. These can be triggered by extreme heating, large-scale energy releases (such as explosions or bushfires), or intense weather events.

When a part of Earth’s surface heats up very quickly – due to a heatwave, for example – the air above it warms, expands and becomes lighter. That rising warm air creates a pressure imbalance with the surrounding cooler, denser air. The atmosphere responds to this imbalance by generating waves, not unlike ripples spreading across a pond.

These pressure waves can travel through the atmosphere. In some cases, they can interact with power infrastructure — particularly long-distance, high-voltage transmission lines.

These types of atmospheric waves are usually called gravity waves, thermal oscillations or acoustic-gravity waves. While the phrase “induced atmospheric vibration” is not formally established in meteorology, it seems to describe this same family of phenomena.

What’s important is that it’s not just high temperatures alone that causes these effects — it’s how quickly and unevenly the temperature changes across a region. That’s what sets the atmosphere into motion and can cause power lines to vibrate. Again, though, it’s still unclear if this is what was behind the recent blackout in Europe.

Atmospheric waves can sometimes be seen in clouds.
Jeff Schmaltz/NASA

More centralised, more vulnerable

Understanding how the atmosphere behaves under these conditions is becoming increasingly important. As our energy systems become more interconnected and more dependent on long-distance transmission, even relatively subtle atmospheric disturbances can have outsized impacts. What might once have seemed like a fringe effect is now a growing factor in grid resilience.

Under growing environmental and electrical stress, centralised energy networks are dangerously vulnerable. The increasing electrification of buildings, the rapid uptake of electric vehicles, and the integration of intermittent renewable energy sources have placed unprecedented pressure on traditional grids that were never designed for this level of complexity, dynamism or centralisation.

Continuing to rely on centralised grid structures without fundamentally rethinking resilience puts entire regions at risk — not just from technical faults, but from environmental volatility.

The way to avoid such catastrophic risks is clear: we must embrace innovative solutions such as community microgrids. These are decentralised, flexible and resilient energy networks that can operate independently when needed.

Strengthening local energy autonomy is key to building a secure, affordable and future-ready electricity system.

The European blackout, regardless of its immediate cause, demonstrates that our electrical grids have become dangerously sensitive. Failure to address these structural weaknesses will have consequences far worse than those experienced during the COVID pandemic.

Mehdi Seyedmahmoudian does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

– ref. Did ‘induced atmospheric vibration’ cause blackouts in Europe? An electrical engineer explains the phenomenon – https://theconversation.com/did-induced-atmospheric-vibration-cause-blackouts-in-europe-an-electrical-engineer-explains-the-phenomenon-255497

MIL OSI – Global Reports –

April 30, 2025

MIL-OSI USA: Cantwell Statement on Trump’s First 100 Days in Office

US Senate News:

Source: United States Senator for Washington Maria Cantwell
04.29.25
Cantwell Statement on Trump’s First 100 Days in Office
WASHINGTON, D.C. – Today marks 100 days since President Donald Trump took office. U.S. Senator Maria Cantwell (D-WA), ranking member of the Senate Committee on Commerce, Science, and Transportation, and senior member of the Senate Finance Committee, released the following statement:
“The first 100 days of President Trump’s Administration have been so chaotic it’s hard to pick what actions will cause the most lasting damage.
“Was it unilaterally launching chaotic trade wars across the globe with tariffs that harm American businesses and consumers?
“Was it gutting the workforce at NOAA, where dedicated staff help us track climate change, monitor weather patterns, and fight devastating wildfires?
“Was it ignoring due process — illegally detaining and deporting U.S. citizens and lawful permanent residents of the United States?
“Was it slamming the brakes on vital scientific research that is helping us cure cancer and prevent another pandemic, while elevating a science denier to lead HHS?
“Was it attacking the independent judiciary and threatening the rule of law?
“Was it dismantling the Department of Education, which will have devastating impacts for students and schools across Washington state?
“I know what we didn’t see: A single action that would lower costs for Americans.”

MIL OSI USA News –

April 30, 2025

MIL-OSI Security: Miami Man Sentenced to 15 Years in Prison for Leading Payment Protection Program Fraud Scheme

Source: Office of United States Attorneys

MIAMI – Lazaro Verdecia Hernandez, 37, of Miami, was sentenced today to 15 years in federal prison for leading a scheme that involved obtaining fraudulent loans under the Paycheck Protection Program (PPP) and laundering the proceeds.

Verdecia and co-conspirator Heidi Cid submitted over 63 fraudulent PPP loan applications. In the loan paperwork, they made the applicants appear eligible for pandemic relief by falsifying the number of company employees and forging documents. As a result of the fake submissions, lenders disbursed over $14.5 million to bank accounts controlled by individuals who then withdraw the money and gave Verdecia, Cid, and another co-coconspirator, Yadier Rodriguez Arteaga, their cut.

During earlier proceedings, Arteaga and Cid were adjudicated guilty and sentenced to federal prison terms: Arteaga to almost six years and Cid to 26 months.

U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida; Special Agent in Charge Rafael Barros for the U. S. Secret Service (USSS); Special Agent in Charge Edwin S. Bonano for the Federal Housing Finance Agency, Office of Inspector General (FHFA OIG); and Special Agent in Charge Amaleka McCall-Brathwaite, U.S. Small Business Administration Office of Inspector General (SBA OIG), Eastern Region, made the announcement.

USSS Miami and FHFA OIG investigated the case with the assistance of the U.S. Small Business Administration Office of Inspector General (SBA OIG), Eastern Region. Assistant U.S. Attorneys Thomas Haggerty and Eli Rubin prosecuted the case. Assistant U.S. Attorney Sarah Klco is handling asset forfeiture.

The following cases were previously charged in relation to the fraud scheme:

U.S. v. Roberto Lopez, Kenia Carrillo, Lester Hedman Safont, Oreste Ruiz Linares, Honolio Navarro Caballero, Barbara Alvarez, Javier Pico, Alfredo Contrera, and Erisbel Gonzalez Gomez, Case No. 22-cr-20368;
U.S. v. Nancy Bahos Serna, Case No. 23-cr-20310;
U.S. v. Jorge Trueba Lopez, Case No. 21-cr-20382;
U.S. v. Nancy Saavedra Torres, Case No. 21-cr-20225;
U.S. v. Giraldo Caraballo, Case No. 21-cr-20264;
U.S. v. Felix Martinez and Yailin Perez, Case No. 21-cr-20276;
U.S. v. Yoliesse Sarmiento Carrion, Case No. 22-cr-20530;
U.S. v. Osiel Rodriguez Furgel, Case No. 21-cr-20251; and
U.S. v. Leonardo Gonzalez Lopez, Case No. 23-cr-20113.

Each of these defendants pled guilty, except for Javier Pico and Erisbel Gonzalez Gomez who are fugitives.

Approximately 22 people were charged and convicted in the conspiracy.

In March 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was enacted. It was designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. Among other sources of relief, the CARES Act authorized and provided funding to the SBA to provide Economic Injury Disaster Loans (EIDLs) to eligible small businesses, including sole proprietorships and independent contractors, experiencing substantial financial disruptions due to the COVID-19 pandemic to allow them to meet financial obligations and operating expenses that could otherwise have been met had the disaster not occurred. EIDL applications were submitted directly to the SBA via the SBA’s on-line application website, and the applications were processed and the loans funded for qualifying applicants directly by the SBA.

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

On Sep. 15, 2022, the Attorney General selected the Southern District of Florida’s U.S. Attorney’s Office to head one of three national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. For more information on the department’s response to the pandemic, please click here.

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

You may find a copy of this press release (and any updates) on the website of the United States Attorney’s Office for the Southern District of Florida at https://www.justice.gov/usao-sdfl.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 23-cr-20421.

###

MIL Security OSI –

April 30, 2025

MIL-OSI: Silicon Motion Announces Results for the Period Ended March 31, 2025

Source: GlobeNewswire (MIL-OSI)

Business Highlights

First quarter of 2025 sales decreased 13% Q/Q and decreased 12% Y/Y
- SSD controller sales: 1Q of 2025 decreased 10% to 15% Q/Q and decreased 20% to 25% Y/Y
- eMMC+UFS controller sales: 1Q of 2025 decreased 15% to 20% Q/Q and decreased 0% to 5% Y/Y
- SSD solutions sales: 1Q of 2025 decreased 20% to 25% Q/Q and decreased 35% to 40% Y/Y
Announced new $50 million share repurchase program

Financial Highlights

	1Q 2025 GAAP	1Q 2025 Non-GAAP*
• Net sales	$166.5 million (-13% Q/Q, -12% Y/Y)	$166.5 million (-13% Q/Q, -12% Y/Y)
• Gross margin	47.1%	47.1%
• Operating margin	5.9%	8.9%
• Earnings per diluted ADS	$0.58	$0.60

* Please see supplemental reconciliations of U.S. Generally Accepted Accounting Principles (“GAAP”) to all non-GAAP financial measures mentioned herein towards the end of this news release.

TAIPEI, Taiwan and MILPITAS, Calif., April 30, 2025 (GLOBE NEWSWIRE) — Silicon Motion Technology Corporation (NasdaqGS: SIMO) (“Silicon Motion,” the “Company” or “we”) today announced its financial results for the quarter ended March 31, 2025. For the first quarter of 2025, net sales (GAAP) decreased sequentially to $166.5 million from $191.2 million in the fourth quarter of 2024. Net income (GAAP) decreased to $19.5 million, or $0.58 per diluted American depositary share (“ADS”) (GAAP), from net income (GAAP) of $21.6 million, or $0.64 per diluted ADS (GAAP), in the fourth quarter of 2024.

For the first quarter of 2025, net income (non-GAAP) decreased to $20.3 million, or $0.60 per diluted ADS (non-GAAP), from net income (non-GAAP) of $29.4 million, or $0.87 per diluted ADS (non-GAAP), in the fourth quarter of 2024.

All financial numbers are in U.S. dollars unless otherwise noted.

First Quarter of 2025 Review

“Despite the challenging macro environment in the first quarter of 2025, we executed our plan and delivered quarterly revenue at the high end of our guided range and delivered another quarter of gross margin expansion,” stated Wallace Kou, President and CEO of Silicon Motion. “Our industry leading PCIe Gen 5 controller experienced stronger than expected demand during the quarter, partially driven by growing AI inference demands from white box server makers leveraging more mainstream hardware components. Our eMMC and UFS controllers also experienced better than expected demand given a rebound in the smartphone market and our ongoing market share gains. While the near-term remains challenging given the broader economic challenges associated with tariffs and potential trade wars, we remain focused on delivering strong, sustainable long-term growth through product diversification; expanding into new markets; and growing market share across our portfolio of consumer, enterprise, automotive, industrial and storage solutions.”

Key Financial Results

($ in millions, except per ADS amounts)	GAAP			Non-GAAP
($ in millions, except per ADS amounts)	1Q 2025	4Q 2024	1Q 2024	1Q 2025	4Q 2024	1Q 2024
Revenue	$166.5	$191.2	$189.3	$166.5	$191.2	$189.3
Gross profit	$78.4	$87.6	$85.1	$78.4	$87.9	$85.2
Percent of revenue	47.1%	45.8%	45.0%	47.1%	46.0%	45.0%
Operating expenses	$68.6	$69.9	$67.2	$63.6	$58.3	$62.5
Operating profit	$9.8	$17.7	$18.0	$14.9	$29.6	$22.6
Percent of revenue	5.9%	9.3%	9.5%	8.9%	15.5%	12.0%
Earnings per diluted ADS	$0.58	$0.64	$0.48	$0.60	$0.87	$0.64

Other Financial Information

($ in millions)	1Q 2025	4Q 2024	1Q 2024
Cash, cash equivalents, and restricted cash—end of period	$331.7	$334.3	$349.3
Routine capital expenditures	$7.0	$7.3	$5.0
Dividend payments	$17.0	$16.8	$16.8
Share repurchases	$24.3	—	—

During the first quarter of 2025, we had $11.7 million of capital expenditures, including $7.0 million for the routine purchases of testing equipment, software, design tools and other items, and $4.7 million for building construction in Hsinchu, Taiwan.

Returning Value to Shareholders

On February 6, 2025, we announced that our Board of Directors had authorized a new program for the Company to repurchase up to $50 million of our ADSs over a six-month period. In the first quarter of 2025, we repurchased $24.3 million of our ADSs at an average price of $56.96 per ADS.

Business Outlook

“We are rapidly expanding our market opportunities as we invest in new products and enter new markets, which we anticipate will drive improved revenue and profitability for many years to come. In 2025, we expect to benefit from the introduction of several new products, including our 8-channel PCIE Gen 5 controller, our 4-channel PCIe Gen 5 controller targeting the mass market that will be introduced in late 2025, our higher-end UFS 4.1 and new low-cost UFS 2.2 controllers that will ramp in the second half of 2025. We introduced our first MonTitan enterprise/AI-class products at the end of 2024, and we expect these to ramp-up production with our first customers in the second half of 2025. Additionally, we continue to expand our automotive product portfolio and our market share across multiple applications. While the near-term environment remains challenging given the macro environment, including the potential impact of tariffs and potential trade wars, we continue to believe we will see a strong rebound in the consumer markets in the second half of 2025, enhanced by our new product introductions, and we continue to target a revenue run rate of $1 billion as we exit the year.”

For the second quarter of 2025, management expects:

($ in millions, except percentages)	GAAP	Non-GAAP Adjustment	Non-GAAP
Revenue	$175 to $183 +5% to 10% Q/Q	—	$175 to $183 +5% to 10% Q/Q
Gross margin	47.0% to 48.0%	Approximately $0.1*	47.0% to 48.0%
Operating margin	6.6% to 9.2%	Approximately $3.1 to $4.1**	8.9% to 10.9%

* Projected gross margin (non-GAAP) excludes $0.1 million of stock-based compensation.
** Projected operating margin (non-GAAP) excludes $3.1million to $4.1 million of stock-based compensation and dispute related expenses.

Conference Call & Webcast:

The Company’s management team will conduct a conference call at 8:00 am Eastern Time on April 30, 2025.

Conference Call Details
Participants must register in advance to join the conference call using the link provided below. Conference access information (including dial-in information and a unique access PIN) will be provided in the email received upon registration.

Participant Online Registration:
https://register-conf.media-server.com/register/BI5c69a4c2d96041b59a2bf8a51cec1881

A webcast of the call will be available on the Company’s website at www.siliconmotion.com.

Discussion of Non-GAAP Financial Measures

To supplement the Company’s unaudited selected financial results calculated in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”), the Company discloses certain non-GAAP financial measures that exclude stock-based compensation and other items, including gross profit (non-GAAP), gross margin (non-GAAP), operating expenses (non-GAAP), operating profit (non-GAAP), operating margin (non-GAAP), non-operating income (expense) (non-GAAP), net income (non-GAAP), and earnings per diluted ADS (non-GAAP). These non-GAAP measures are not in accordance with or an alternative to GAAP and may be different from similarly-titled non-GAAP measures used by other companies. We believe that these non-GAAP measures have limitations in that they do not reflect all the amounts associated with the Company’s results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate the Company’s results of operations in conjunction with the corresponding GAAP measures. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the most directly comparable GAAP measure. We compensate for the limitations of our non-GAAP financial measures by relying upon GAAP results to gain a complete picture of our performance.

Our non-GAAP financial measures are provided to enhance the user’s overall understanding of our current financial performance and our prospects for the future. Specifically, we believe the non-GAAP results provide useful information to both management and investors as these non-GAAP results exclude certain expenses, gains and losses that we believe are not indicative of our core operating results and because they are consistent with the financial models and estimates published by many analysts who follow the Company. We use non-GAAP measures to evaluate the operating performance of our business, for comparison with our forecasts, and for benchmarking our performance externally against our competitors. Also, when evaluating potential acquisitions, we exclude the items described below from our consideration of the target’s performance and valuation. Since we find these measures to be useful, we believe that our investors benefit from seeing the results from management’s perspective in addition to seeing our GAAP results. We believe that these non-GAAP measures, when read in conjunction with the Company’s GAAP financials, provide useful information to investors by offering:

the ability to make more meaningful period-to-period comparisons of the Company’s on-going operating results;
the ability to better identify trends in the Company’s underlying business and perform related trend analysis;
a better understanding of how management plans and measures the Company’s underlying business; and
an easier way to compare the Company’s operating results against analyst financial models and operating results of our competitors that supplement their GAAP results with non-GAAP financial measures.

The following are explanations of each of the adjustments that we incorporate into our non-GAAP measures, as well as the reasons for excluding each of these individual items in our reconciliation of these non-GAAP financial measures:

Stock-based compensation expense consists of non-cash charges related to the fair value of restricted stock units awarded to employees. The Company believes that the exclusion of these non-cash charges provides for more accurate comparisons of our operating results to our peer companies due to the varying available valuation methodologies, subjective assumptions and the variety of award types. In addition, the Company believes it is useful to investors to understand the specific impact of share-based compensation on its operating results.

Restructuring charges relate to the restructuring of our underperforming product lines, principally the write-down of NAND flash, embedded DRAM and SSD inventory valuation and severance payments.

Dispute related expenses consist of legal, consultant, other fees and resolution related to the dispute.

Foreign exchange loss (gain) consists of translation gains and/or losses of non-US$ denominated current assets and current liabilities, as well as certain other balance sheet items, which result from the appreciation or depreciation of non-US$ currencies against the US$. We do not use financial instruments to manage the impact on our operations from changes in foreign exchange rates, and because our operations are subject to fluctuations in foreign exchange rates, we therefore exclude foreign exchange gains and losses when presenting non-GAAP financial measures.

Realized/Unrealized loss (gain) on investments relates to the disposal and net change in fair value of long-term investments.

Silicon Motion Technology Corporation Consolidated Statements of Income (in thousands, except percentages and per ADS data, unaudited)

	For Three Months Ended
	Mar. 31,	Dec. 31,	Mar. 31,
	2024	2024	2025
	($)	($)	($)
Net Sales	189,311	191,160	166,492
Cost of sales	104,191	103,560	88,125
Gross profit	85,120	87,600	78,367
Operating expenses
Research & development	54,392	54,156	55,026
Sales & marketing	6,304	7,360	7,115
General & administrative	6,474	8,350	6,460
Operating income	17,950	17,734	9,766
Non-operating income (expense)
Interest income, net	3,066	3,768	2,929
Foreign exchange gain, net	588	1,046	373
Realized/Unrealized gain(loss) on investments	(1,608)	956	3,296
Subtotal	2,046	5,770	6,598
Income before income tax	19,996	23,504	16,364
Income tax expense (benefit)	3,980	1,935	(3,099)
Net income	16,016	21,569	19,463

Earnings per basic ADS	0.48	0.64	0.58
Earnings per diluted ADS	0.48	0.64	0.58

Margin Analysis:
Gross margin	45.0%	45.8%	47.1%
Operating margin	9.5%	9.3%	5.9%
Net margin	8.5%	11.3%	11.7%

Additional Data:
Weighted avg. ADS equivalents	33,508	33,690	33,634
Diluted ADS equivalents	33,701	33,814	33,827

Silicon Motion Technology Corporation Reconciliation of GAAP to Non-GAAP Operating Results (in thousands, except percentages and per ADS data, unaudited)

	For Three Months Ended
	Mar. 31,	Dec. 31,	Mar. 31,
	2024	2024	2025
	($)	($)	($)
Gross profit (GAAP)	85,120	87,600	78,367
*Gross margin (GAAP)*	45.0%	45.8%	47.1%
Stock-based compensation (A)	72	162	73
Restructuring charges	–	164	–
Gross profit (non-GAAP)	85,192	87,926	78,440
*Gross margin (non-GAAP)*	45.0%	46.0%	47.1%

Operating expenses (GAAP)	67,170	69,866	68,601
Stock-based compensation (A)	(3,093)	(9,585)	(4,738)
Dispute related expenses	(1,532)	(1,999)	(277)
Operating expenses (non-GAAP)	62,545	58,282	63,586

Operating profit (GAAP)	17,950	17,734	9,766
*Operating margin (GAAP)*	9.5%	9.3%	5.9%
Total adjustments to operating profit	4,697	11,910	5,088
Operating profit (non-GAAP)	22,647	29,644	14,854
*Operating margin (non-GAAP)*	12.0%	15.5%	8.9%

Non-operating income (expense) (GAAP)	2,046	5,770	6,598
Foreign exchange loss (gain), net	(588)	(1,046)	(373)
Realized/Unrealized loss (gain) on investments	1,608	(956)	(3,296)
Non-operating income (expense) (non-GAAP)	3,066	3,768	2,929

Net income (GAAP)	16,016	21,569	19,463
Total pre-tax impact of non-GAAP adjustments	5,717	9,908	1,419
Income tax impact of non-GAAP adjustments	(147)	(2,049)	(610)
Net income (non-GAAP)	21,586	29,428	20,272

Earnings per diluted ADS (GAAP)	$0.48	$0.64	$0.58
Earnings per diluted ADS (non-GAAP)	$0.64	$0.87	$0.60

Shares used in computing earnings per diluted ADS (GAAP)	33,701	33,814	33,827
Non-GAAP adjustments	26	181	20
Shares used in computing earnings per diluted ADS (non-GAAP)	33,727	33,995	33,847

(A)Excludes stock-based compensation as follows:
Cost of sales	72	162	73
Research & development	2,143	6,670	3,003
Sales & marketing	347	978	862
General & administrative	603	1,937	873

Silicon Motion Technology Corporation Consolidated Balance Sheet (In thousands, unaudited)

	Mar. 31,	Dec. 31,	Mar. 31,
	2024	2024	2025
	($)	($)	($)
Cash and cash equivalents	294,814	276,068	275,140
Accounts receivable (net)	186,154	233,744	206,693
Inventories	253,316	199,229	180,903
Refundable deposits – current	49,610	54,645	53,015
Prepaid expenses and other current assets	17,944	31,187	32,102
Total current assets	801,838	794,873	747,853
Long-term investments	15,489	17,326	20,636
Property and equipment (net)	174,420	188,398	193,603
Other assets	32,529	30,739	29,310
Total assets	1,024,276	1,031,336	991,402

Accounts payable	64,810	17,773	23,048
Income tax payable	10,702	13,107	14,782
Accrued expenses and other current liabilities	135,425	168,624	130,277
Total current liabilities	210,937	199,504	168,107
Other liabilities	59,883	59,548	50,968
Total liabilities	270,820	259,052	219,075
Shareholders’ equity	753,456	772,284	772,327
Total liabilities & shareholders’ equity	1,024,276	1,031,336	991,402

Silicon Motion Technology Corporation Condensed Consolidated Statements of Cash Flows (in thousands, unaudited)

	For Three Months Ended
	Mar. 31,	Dec. 31,	Mar. 31,
	2024	2024	2025
	($)	($)	($)
Net income	16,016	21,569	19,463
Depreciation & amortization	5,608	7,256	7,225
Stock-based compensation	3,165	9,747	4,811
Investment losses (gain) & disposals	1,608	(956)	(3,309)
Changes in operating assets and liabilities	(18,586)	(43,774)	22,082
Net cash provided by (used in) operating activities	7,811	(6,158)	50,272

Purchase of property & equipment	(10,749)	(10,836)	(11,661)
Proceeds from disposal of properties	–	3	13
Purchase of long-term investments	–	(4,173)	–
Disposal of long-term investments	–	4,432	–
Net cash provided by (used in) investing activities	(10,749)	(10,574)	(11,648)

Dividend payments	(16,808)	(16,814)	(16,956)
Share repurchases	–	–	(24,291)
Net cash used in financing activities	(16,808)	(16,814)	(41,247)

Net increase (decrease) in cash, cash equivalents & restricted cash	(19,746)	(33,546)	(2,623)
Effect of foreign exchange changes	35	(717)	37
Cash, cash equivalents & restricted cash—beginning of period	368,990	368,596	334,333
Cash, cash equivalents & restricted cash—end of period	349,279	334,333	331,747

About Silicon Motion:

We are the global leader in supplying NAND flash controllers for solid state storage devices. We supply more SSD controllers than any other company in the world for servers, PCs and other client devices and are the leading merchant supplier of eMMC and UFS embedded storage controllers used in smartphones, IoT devices and other applications. We also supply customized high-performance hyperscale data center and specialized industrial and automotive SSD solutions. Our customers include most of the NAND flash vendors, storage device module makers and leading OEMs. For further information on Silicon Motion, visit us at www.siliconmotion.com.

Forward-Looking Statements:
This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue,” or the negative of these terms or other comparable terminology. Although such statements are based on our own information and information from other sources we believe to be reliable, you should not place undue reliance on them. These statements involve risks and uncertainties, and actual market trends or our actual results of operations, financial condition or business prospects may differ materially from those expressed or implied in these forward-looking statements for a variety of reasons. Potential risks and uncertainties include, but are not limited to the unpredictable volume and timing of customer orders, which are not fixed by contract but vary on a purchase order basis; the loss of one or more key customers or the significant reduction, postponement, rescheduling or cancellation of orders from one or more customers; general economic conditions or conditions in the semiconductor or consumer electronics markets; the impact of inflation on our business and customer’s businesses and any effect this has on economic activity in the markets in which we operate; the functionalities and performance of our information technology (“IT”) systems, which are subject to cybersecurity threats and which support our critical operational activities, and any breaches of our IT systems or those of our customers, suppliers, partners and providers of third-party licensed technology; the effects on our business and our customer’s business taking into account the ongoing U.S.-China tariffs and trade disputes; the uncertainties associated with any future global or regional pandemic; the continuing tensions between Taiwan and China, including enhanced military activities; decreases in the overall average selling prices of our products; changes in the relative sales mix of our products; changes in our cost of finished goods; supply chain disruptions that have affected us and our industry as well as other industries on a global basis; the payment, or non-payment, of cash dividends in the future at the discretion of our board of directors and any announced planned increases in such dividends; changes in our cost of finished goods; the availability, pricing, and timeliness of delivery of other components and raw materials used in the products we sell given the current raw material supply shortages being experienced in our industry; our customers’ sales outlook, purchasing patterns, and inventory adjustments based on consumer demands and general economic conditions; any potential impairment charges that may be incurred related to businesses previously acquired or divested in the future; our ability to successfully develop, introduce, and sell new or enhanced products in a timely manner; and the timing of new product announcements or introductions by us or by our competitors. For additional discussion of these risks and uncertainties and other factors, please see the documents we file from time to time with the U.S. Securities and Exchange Commission, including our Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission on April 30, 2024. Other than as required under the securities laws, we do not intend, and do not undertake any obligation to, update or revise any forward-looking statements, which apply only as of the date of this news release.

The MIL Network –

April 30, 2025

MIL-OSI: Sound Financial Bancorp, Inc. Q1 2025 Results

Source: GlobeNewswire (MIL-OSI)

SEATTLE, April 29, 2025 (GLOBE NEWSWIRE) — Sound Financial Bancorp, Inc. (the “Company”) (Nasdaq: SFBC), the holding company for Sound Community Bank (the “Bank”), today reported net income of $1.2 million for the quarter ended March 31, 2025, or $0.45 diluted earnings per share, as compared to net income of $1.9 million, or $0.74 diluted earnings per share, for the quarter ended December 31, 2024, and $770 thousand, or $0.30 diluted earnings per share, for the quarter ended March 31, 2024. The Company also announced today that its Board of Directors declared a cash dividend on the Company’s common stock of $0.19 per share, payable on May 23, 2025 to stockholders of record as of the close of business on May 9, 2025.

Comments from the President / Chief Executive Officer and Chief Financial Officer

“Despite ongoing economic uncertainty, we remained focused on lowering our cost of deposits and originating new loans at higher rates, which contributed to a 12-basis point improvement in our net interest margin compared to the prior quarter. This reflects the team’s strong efforts to build full banking relationships by addressing both the lending and deposit needs of our consumer and business clients,” remarked Laurie Stewart, President and Chief Executive Officer.

“We continue to prioritize expense management, even though expenses increased compared to the previous quarter. The quarter-over-quarter increase was largely due to typical year-end accrual adjustments and annual expenses that are recognized in the first quarter. However, when compared to the first quarter of 2024, we have seen reductions in combined salaries and benefits, and operational expenses, thanks to our investments in technology. We also expect the year-over-year growth in data processing costs to moderate as the year progresses,” explained Wes Ochs, Executive Vice President and Chief Financial Officer.

Mr. Ochs continued, “While we did see an increase in nonperforming loans this quarter mainly due to two specific credits, one of which has since been repaid, we have not observed broader signs of stress in the loan portfolio. Importantly, we also successfully exited a $17 million loan that had been rated as special mention, which contributed to the decline in overall loan balances. Notably, 83% of our nonperforming loans are tied to just four loans, each with its own unique circumstances. These loans are well-secured, and we are actively working toward resolutions in the near-term.”


Q1 2025 Financial Performance
Total assets increased $75.6 million or 7.6% to $1.07 billion at March 31, 2025, from $993.6 million at December 31, 2024, and decreased $17.5 million or 1.6% from $1.09 billion at March 31, 2024.				Net interest income decreased $149 thousand or 1.8% to $8.1 million for the quarter ended March 31, 2025, from $8.2 million for the quarter ended December 31, 2024, and increased $611 thousand or 8.2% from $7.5 million for the quarter ended March 31, 2024.

Loans held-for-portfolio decreased $13.9 million or 1.5% to $886.2 million at March 31, 2025, compared to $900.2 million at December 31, 2024, and decreased $11.7 million or 1.3% from $897.9 million at March 31, 2024.				Net interest margin (“NIM”), annualized, was 3.25% for the quarter ended March 31, 2025, compared to 3.13% for the quarter ended December 31, 2024 and 2.95% for the quarter ended March 31, 2024.

Total deposits increased $72.5 million or 8.7% to $910.3 million at March 31, 2025, from $837.8 million at December 31, 2024, and decreased $6.5 million or 0.7% from $916.9 million at March 31, 2024. Noninterest-bearing deposits decreased $5.8 million or 4.4% to $126.7 million at March 31, 2025 compared to $132.5 million at December 31, 2024, and decreased $2.0 million or 1.5% compared to $128.7 million at March 31, 2024.				A $203 thousand release of provision for credit losses was recorded for the quarter ended March 31, 2025, compared to a $14 thousand provision and a $33 thousand release of provision for credit losses for the quarters ended December 31, 2024 and March 31, 2024, respectively. At March 31, 2025, the allowance for credit losses on loans to total loans outstanding was 0.95%, compared to 0.94% at December 31, 2024 and 0.96% at March 31, 2024.

The loans-to-deposits ratio was 98% at March 31, 2025, compared to 108% at December 31, 2024 and 98% at March 31, 2024.				Total noninterest income decreased $62 thousand or 5.3% to $1.1 million for the quarter ended March 31, 2025, compared to the quarter ended December 31, 2024, and was virtually unchanged compared to the quarter ended March 31, 2024.

Total nonperforming loans increased $2.2 million or 28.9% to $9.7 million at March 31, 2025, from $7.5 million at December 31, 2024, and increased $600 thousand or 6.6% from $9.1 million at March 31, 2024. Nonperforming loans to total loans was 1.09% and the allowance for credit losses on loans to total nonperforming loans was 86.95% at March 31, 2025.				Total noninterest expense increased $856 thousand or 12.1% to $7.9 million for the quarter ended March 31, 2025, compared to the quarter ended December 31, 2024, and increased $258 thousand or 3.4% compared to the quarter ended March 31, 2024.

				The Bank continued to maintain capital levels in excess of regulatory requirements and was categorized as “well-capitalized” at March 31, 2025.

Operating Results

Net Interest Income after (Release of) Provision for Credit Losses

	For the Quarter Ended								Q1 2025 vs. Q4 2024					Q1 2025 vs. Q1 2024
	March 31, 2025			December 31, 2024		March 31, 2024			Amount ($)			Percentage (%)		Amount ($)			Percentage (%)
	(Dollars in thousands, unaudited)
Interest income	$	13,706		$	14,736	$	13,760		$	(1,030	)	(7.0)	%	$	(54	)	(0.4)	%
Interest expense		5,635			6,516		6,300			(881	)	(13.5)	%		(665	)	(10.6)	%
Net interest income		8,071			8,220		7,460			(149	)	(1.8)	%		611		8.2	%
(Release of) provision for credit losses		(203	)		14		(33	)		(217	)	(1550.0)	%		(170	)	515.2	%
Net interest income after (release of) provision for credit losses		8,274			8,206		7,493			68		0.8	%		781		10.4	%

Q1 2025 vs Q4 2024

The decrease in interest income from the prior quarter was primarily due to a lower average balance of loans, investments and interest-earning cash, an eight basis point decline in the average yield on loans, a 41 basis point decline in the average yield on interest-bearing cash, and a 57 basis point decline in the average yield on investments.

Interest income on loans decreased $482 thousand, or 3.7%, to $12.6 million for the quarter ended March 31, 2025, compared to $13.1 million for the quarter ended December 31, 2024. The average balance of total loans was $896.8 million for the quarter ended March 31, 2025, down from $900.8 million for the quarter ended December 31, 2024. The decrease in the average balance of total loans was primarily due to declines in construction and land loans and one-to-four family loans, offset by growth in commercial and multifamily loans and home equity loans. The average balances for manufactured home loans, floating home loans, commercial business loans, and other consumer loans remained relatively flat from the fourth quarter of 2024. The average yield on total loans was 5.69% for the quarter ended March 31, 2025, down from 5.77% for the quarter ended December 31, 2024. The decline was primarily due to interest that was reversed on nonaccrual loans during the first quarter, as well as interest that had been recognized on those loans in the fourth quarter. This was partly offset by new loans being made at higher interest rates and some variable-rate loans adjusting upward. Interest income on investments was $108 thousand for the quarter ended March 31, 2025, compared to $132 thousand for the quarter ended December 31, 2024. Interest income on interest-bearing cash decreased $524 thousand to $1.0 million for the quarter ended March 31, 2025, compared to $1.5 million for the quarter ended December 31, 2024. This decrease was a result of both lower average yields and average balances during the quarter.

The decrease in interest expense during the current quarter from the prior quarter was primarily the result of lower average balances and rates paid on all categories of interest-bearing deposits. The average cost of deposits was 2.37% for the quarter ended March 31, 2025, down from 2.58% for the quarter ended December 31, 2024 as higher costing deposits repriced lower due to market interest rate cuts beginning in September 2024. The average cost of FHLB advances was 4.25% for the quarter ended March 31, 2025, down from 4.31% for the quarter ended December 31, 2024.

A release of provision for credit losses of $203 thousand was recorded for the quarter ended March 31, 2025, consisting of a release of provision for credit losses on loans of $85 thousand and a release of provision for credit losses on unfunded loan commitments of $118 thousand. This compared to a provision for credit losses of $14 thousand for the quarter ended December 31, 2024, consisting of a release of provision for credit losses on loans of $73 thousand and a provision for credit losses on unfunded loan commitments of $87 thousand. The decrease in the provision for credit losses for the quarter ended March 31, 2025 compared to the quarter ended December 31, 2024 resulted primarily from a smaller loan portfolio and a reduced balance of unfunded commitments, partially offset by an additional qualitative adjustment applied to certain loan segments, specifically consumer and construction loans, reflecting increased uncertainty in market conditions tied to the impact of tariffs and other external factors affecting our clients. Expected credit loss estimates consider various factors, including market conditions, borrower-specific information, projected delinquencies, and anticipated effects of economic trends on borrowers’ ability to repay.

Q1 2025 vs Q1 2024

Interest income on loans increased $355 thousand, or 2.9%, to $12.6 million for the quarter ended March 31, 2025, compared to $12.2 million for the quarter ended March 31, 2024. The average balance of total loans was $896.8 million for the quarter ended March 31, 2025, up from $895.4 million for the quarter ended March 31, 2024. The average yield on total loans was 5.69% for the quarter ended March 31, 2025, up from 5.49% for the quarter ended March 31, 2024. The increase in the average loan yield during the current quarter, compared to the same quarter in 2024, was primarily due to the origination of new loans at higher interest rates. Additionally, variable-rate loans resetting to higher rates contributed to the increase in average yield compared to the first quarter of 2024. Interest income on investments was $108 thousand for the quarter ended March 31, 2025, compared to $111 thousand for the quarter ended March 31, 2024. Interest income on interest-bearing cash decreased $406 thousand to $1.0 million for the quarter ended March 31, 2025, compared to $1.4 million for the quarter ended March 31, 2024. The decrease was a result of both a lower average yield and average balance.

The decrease in interest expense during the current quarter from the same quarter a year ago was primarily the result of a $18.9 million decrease in the average balance of interest-bearing demand and NOW accounts, a $25.5 million decrease in the average balance of certificate accounts, and a $15.0 million decrease in the average balance of FHLB advances, as well as lower average rates paid on all categories of interest-bearing deposits; resulting from lower market interest rates generally. These average-balance decreases were partially offset by a $51.0 million increase in the average balance of savings and money market accounts. The average cost of deposits was 2.37% for the quarter ended March 31, 2025, down from 2.57% for the quarter ended March 31, 2024. The average cost of FHLB advances was 4.25% for the quarter ended March 31, 2025, down from 4.31% for the quarter ended March 31, 2024.

A release of provision for credit losses of $203 thousand was recorded for the quarter ended March 31, 2025, consisting of a release of provision for credit losses on loans of $85 thousand and a release of provision for credit losses on unfunded loan commitments of $118 thousand. This compared to a release of provision for credit losses of $33 thousand for the quarter ended March 31, 2024, consisting of a release of provision for credit losses on loans of $106 thousand and a provision for credit losses on unfunded loan commitments of $73 thousand. The larger release recorded in the current quarter primarily reflected the factors discussed above.

Noninterest Income

	For the Quarter Ended								Q1 2025 vs. Q4 2024					Q1 2025 vs. Q1 2024
	March 31, 2025			December 31, 2024		March 31, 2024			Amount ($)			Percentage (%)		Amount ($)			Percentage (%)
	(Dollars in thousands, unaudited)
Service charges and fee income	$	684		$	619	$	612		$	65		10.5	%	$	72		11.8	%
Earnings on bank-owned life insurance (“BOLI”)		195			127		177			68		53.5	%		18		10.2	%
Mortgage servicing income		269			277		282			(8	)	(2.9)	%		(13	)	(4.6)	%
Fair value adjustment on mortgage servicing rights		(99	)		77		(65	)		(176	)	(228.6)	%		(34	)	52.3	%
Net gain on sale of loans		49			53		90			(4	)	(7.5)	%		(41	)	(45.6)	%
Other income		—			7		—			(7	)	(100.0)	%		—		100.0	%
Total noninterest income	$	1,098		$	1,160	$	1,096		$	(62	)	(5.3)	%	$	2		0.2	%

Q1 2025 vs Q4 2024

The decrease in noninterest income during the current quarter compared to the quarter ended December 31, 2024 was primarily related to

a $176 thousand downward adjustment in fair value of mortgage servicing rights due to a smaller servicing portfolio, partially offset by :
an increase of $68 thousand in earnings from BOLI primarily due to the strategic decision to surrender and exchange existing policies into higher yielding policies in the first quarter, offset by fluctuations in financial markets which decreased the values of policies; and
a $65 thousand increase in service charges and fee income due to a volume incentive paid by Mastercard in the first quarter of 2025 and higher interchange income.

Loans sold during the quarter ended March 31, 2025, totaled $2.0 million, compared to $3.5 million and $4.2 million of loans sold during the quarters ended December 31, 2024 and March 31, 2024, respectively.

Q1 2025 vs Q1 2024

The increase in noninterest income during the current quarter compared to the quarter ended March 31, 2024 was primarily due to

a $72 thousand increase in service charges and fee income primarily due to the reasons noted above, and
an $18 thousand increase in earnings from BOLI primarily due to the strategic decision to surrender and exchange existing policies into higher yielding policies in the first quarter, offset by fluctuations in financial markets, which reduced the values of policies. The increases in service charges and fee income and in earnings from BOLI were partially offset by
a $13 thousand decrease in mortgage servicing income as a result of the portfolio paying down at a faster rate than originations replace repayments;
a $34 thousand decrease in the fair value adjustment on mortgage servicing rights due to a smaller servicing portfolio; and
a $41 thousand decrease in net gain on sale of loans due to fewer loans sold.

Noninterest Expense

	For the Quarter Ended							Q1 2025 vs. Q4 2024				Q1 2025 vs. Q1 2024
	March 31, 2025		December 31, 2024			March 31, 2024		Amount ($)		Percentage (%)		Amount ($)			Percentage (%)
	(Dollars in thousands, unaudited)
Salaries and benefits	$	4,595	$	3,920		$	4,543	$	675	17.2	%	$	52		1.1	%
Operations		1,365		1,329			1,457		36	2.7	%		(92	)	(6.3)	%
Regulatory assessments		221		189			189		32	16.9	%		32		16.9	%
Occupancy		437		409			444		28	6.8	%		(7	)	(1.6)	%
Data processing		1,293		1,232			1,017		61	5.0	%		276		27.1	%
Net loss (gain) on OREO and repossessed assets		3		(21	)		6		24	(114.3)	%		(3	)	(50.0)	%
Total noninterest expense	$	7,914	$	7,058		$	7,656	$	856	12.1	%	$	258		3.4	%

Q1 2025 vs Q4 2024

The increase in noninterest expense during the current quarter from the quarter ended December 31, 2024 was primarily a result of:

a $675 thousand increase in salaries and benefits related to higher salaries expense, partially due to accrual reversals in the fourth quarter 2024, along with an annual deferred compensation contribution for key executives made in the first quarter of each year, higher 401(k) contributions, and higher payroll taxes related to annual bonus payments;
a $32 thousand increase in regulatory assessments due to a higher estimated accrual for exam costs;
a $28 thousand increase in occupancy due to higher annual property charges and maintenance fees recognized in the first quarter;
a $61 thousand increase in data processing due to higher vendor fees associated with annual subscription renewals; and
a $24 thousand increase in OREO and repossessed assets due to the addition of a new property in the first quarter of 2025 and the absence of property sales in the prior quarter.

Q1 2025 vs Q1 2024

The increase in noninterest expense during the current quarter from the quarter ended March 31, 2024 was primarily a result of:

a $276 thousand increase in data processing expenses due to various project implementations that began amortizing in the third quarter of 2024 and the reimbursement of expenses by a software vendor in the first quarter of 2024;
a $32 thousand increase in regulatory assessment expenses due to a higher estimated accrual for exam costs.

These increases were partially offset by a $92 thousand decrease in operations expense, primarily due to the recognition of annual fee reimbursements from Mastercard beginning in the first quarter of 2025 and lower expenses across various accounts resulting from ongoing cost saving initiatives and process improvements.

Balance Sheet Review, Capital Management and Credit Quality

Assets at March 31, 2025 totaled $1.07 billion, up from $993.6 million at December 31, 2024 and down from $1.09 billion at March 31, 2024. The increase in total assets from December 31, 2024 was primarily due to an increase in cash and cash equivalents, partially offset by a lower balance of loans held-for-portfolio. The decrease from one year ago was primarily a result of lower balances of cash and cash equivalents and loans held-for-portfolio.

Cash and cash equivalents increased $87.9 million, or 201.3%, to $131.5 million at March 31, 2025, compared to $43.6 million at December 31, 2024, and decreased $6.5 million, or 4.7%, from $138.0 million at March 31, 2024. The increased cash and cash equivalents from the prior quarter-end was primarily due to the strategic decision to sell reciprocal deposits at the end of 2024, which reduced our cash balances. These reciprocal deposits returned to our balance sheet in the first quarter of 2025.

Investment securities decreased $110 thousand, or 1.1%, to $9.8 million at March 31, 2025, compared to $9.9 million at December 31, 2024, and decreased $462 thousand, or 4.5%, from $10.3 million at March 31, 2024, as pay-offs and paydowns of investments exceeded new purchases. Held-to-maturity securities totaled $2.1 million at both March 31, 2025 and December 31, 2024, and totaled $2.2 million at March 31, 2024. Available-for-sale securities totaled $7.7 million at March 31, 2025, compared to $7.8 million at December 31, 2024 and $8.1 million at March 31, 2024.

Loans held-for-portfolio were $886.2 million at March 31, 2025, compared to $900.2 million at December 31, 2024 and $897.9 million at March 31, 2024. The decrease from both prior dates was primarily due to the payoff during the first quarter of 2025 of one $17.0 million loan that was risk rated special mention.

Nonperforming assets (“NPAs”), which are comprised of nonaccrual loans (including nonperforming modified loans), other real estate owned (“OREO”) and other repossessed assets, increased $2.2 million, or 29.4%, to $9.7 million at March 31, 2025, from $7.5 million at December 31, 2024 and decreased $49 thousand, or 0.5%, from $9.7 million at March 31, 2024. The increase in NPAs from December 31, 2024 was primarily due to the addition of six loans totaling $2.4 million to nonaccrual status, including two commercial real estate loans of $1.1 million and $988 thousand. The increase also included $41 thousand of other real estate owned properties. These additions were partially offset by $207 thousand in regular loan payments. Subsequent to quarter-end, the $988 thousand commercial real estate loan added during the quarter was paid-off. The decrease in NPAs from one year ago was primarily due to payoffs totaling $2.1 million, the return of $522 thousand of loans to accrual status, the sale of two other real estate owned properties for $690 thousand, and regular loan payments. These decreases were partially offset by the placement of an additional $3.6 million of loans on nonaccrual status, which included the two commercial real estate loans noted above.

NPAs to total assets were 0.91%, 0.75% and 0.90% at March 31, 2025, December 31, 2024 and March 31, 2024, respectively. The allowance for credit losses on loans to total loans outstanding was 0.95% at March 31, 2025, compared to 0.94% at December 31, 2024 and 0.96% at March 31, 2024. Net loan charge-offs for the first quarter of 2025 totaled $21 thousand, compared to $13 thousand for the fourth quarter of 2024, and $56 thousand for the first quarter of 2024.

The following table summarizes our NPAs at the dates indicated (dollars in thousands):

	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
Nonperforming Loans:
One-to-four family	$	762		$	537		$	745		$	822		$	835
Home equity loans		368			298			338			342			83
Commercial and multifamily		5,627			3,734			4,719			5,161			4,747
Construction and land		22			24			25			28			29
Manufactured homes		501			521			230			136			166
Floating homes		2,363			2,363			2,377			2,417			3,192
Commercial business		—			11			23			—			—
Other consumer		10			3			32			3			1
Total nonperforming loans		9,653			7,491			8,489			8,909			9,053
OREO and Other Repossessed Assets:
Commercial and multifamily		—			—			—			—			575
Manufactured homes		41			—			115			115			115
Total OREO and repossessed assets		41			—			115			115			690
Total NPAs	$	9,694		$	7,491		$	8,604		$	9,024		$	9,743

Percentage of Nonperforming Loans:
One-to-four family		7.9	%		7.3	%		8.7	%		9.1	%		8.5	%
Home equity loans		3.8			4.0			3.9			3.8			0.9
Commercial and multifamily		58.0			49.8			54.8			57.2			48.7
Construction and land		0.2			0.3			0.3			0.3			0.3
Manufactured homes		5.2			7.0			2.7			1.5			1.7
Floating homes		24.4			31.5			27.6			26.8			32.8
Commercial business		—			0.1			0.3			—			—
Other consumer		0.1			—			0.4			—			—
Total nonperforming loans		99.6			100.0			98.7			98.7			92.9
Percentage of OREO and Other Repossessed Assets:
Commercial and multifamily		—			—			—			—			5.9
Manufactured homes		0.4			—			1.3			1.3			1.2
Total OREO and repossessed assets		0.4			—			1.3			1.3			7.1
Total NPAs		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

The following table summarizes the allowance for credit losses at the dates and for the periods indicated (dollars in thousands, unaudited):

	At or For the Quarter Ended:
	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
Allowance for Credit Losses on Loans
Balance at beginning of period	$	8,499		$	8,585		$	8,493		$	8,598		$	8,760
(Release of) provision for credit losses during the period		(85	)		(73	)		106			(88	)		(106	)
Net charge-offs during the period		(21	)		(13	)		(14	)		(17	)		(56	)
Balance at end of period	$	8,393		$	8,499		$	8,585		$	8,493		$	8,598
Allowance for Credit Losses on Unfunded Loan Commitments
Balance at beginning of period	$	234		$	147		$	245		$	266		$	193
Provision for (release of) provision for credit losses during the period		(118	)		87			(98	)		(21	)		73
Balance at end of period		116			234			147			245			266
Allowance for Credit Losses	$	8,509		$	8,733		$	8,732		$	8,738		$	8,864
Allowance for credit losses on loans to total loans		0.95	%		0.94	%		0.95	%		0.96	%		0.96	%
Allowance for credit losses to total loans		0.96	%		0.97	%		0.97	%		0.98	%		0.99	%
Allowance for credit losses on loans to total nonperforming loans		86.95	%		113.46	%		101.13	%		95.33	%		94.97	%
Allowance for credit losses to total nonperforming loans		88.15	%		116.58	%		102.86	%		98.08	%		97.91	%

Total deposits increased $72.5 million, or 8.7%, to $910.3 million at March 31, 2025, from $837.8 million at December 31, 2024 and decreased $6.5 million, or 0.7%, from $916.9 million at March 31, 2024. The increase in total deposits compared to the prior quarter-end was primarily a result of the movement of reciprocal deposits off balance sheet for strategic objectives at year-end, followed by the return of those deposits to our balance sheet in the first quarter of 2025, and a decrease in one high cost money market deposit relationship as part of our strategic decision to decrease our overall cost of funds. Noninterest-bearing deposits decreased $5.8 million, or 4.4%, to $126.7 million at March 31, 2025, compared to $132.5 million at December 31, 2024 and decreased $2.0 million, or 1.5%, from $128.7 million at March 31, 2024. Noninterest-bearing deposits represented 13.9%, 15.8% and 14.0% of total deposits at March 31, 2025, December 31, 2024 and March 31, 2024, respectively.

FHLB advances totaled $25.0 million at March 31, 2025, compared to $25.0 million at both December 31, 2024, and March 31, 2024. FHLB advances are primarily used to support organic loan growth and to maintain liquidity ratios in line with our asset/liability objectives. FHLB advances outstanding at March 31, 2025 had maturities ranging from early 2026 through early 2028. Subordinated notes, net totaled $11.8 million at both March 31, 2025 and December 31, 2024, and $11.7 million at March 31, 2024.

Stockholders’ equity totaled $104.4 million at March 31, 2025, an increase of $765 thousand, or 0.7%, from $103.7 million at December 31, 2024, and an increase of $3.4 million, or 3.4%, from $101.0 million at March 31, 2024. The increase in stockholders’ equity from December 31, 2024 was primarily the result of $1.2 million of net income earned during the current quarter, $81 thousand in share-based compensation, and $21 thousand in common stock options exercised, partially offset by a $17 thousand increase in accumulated other comprehensive loss, net of tax and the payment of $487 thousand in cash dividends to the Company’s stockholders.

Sound Financial Bancorp, Inc., a bank holding company, is the parent company of Sound Community Bank, which is headquartered in Seattle, Washington and has full-service branches in Seattle, Tacoma, Mountlake Terrace, Sequim, Port Angeles, Port Ludlow and University Place. Sound Community Bank is a Fannie Mae Approved Lender and Seller/Servicer with one loan production office located in the Madison Park neighborhood of Seattle. For more information, please visit www.soundcb.com.

Forward-Looking Statements Disclaimer

When used in this press release and in documents filed or furnished by Sound Financial Bancorp, Inc. (the “Company”) with the Securities and Exchange Commission (the “SEC”), in the Company’s other press releases or other public or stockholder communications, and in oral statements made with the approval of an authorized executive officer, the words or phrases “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” “intends” or similar expressions are intended to identify “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements, which are based on various underlying assumptions and expectations and are subject to risks, uncertainties and other unknown factors, may include projections of our future financial performance based on our growth strategies and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events and may turn out to be wrong because of inaccurate assumptions we might make, because of the factors listed below or because of other factors that we cannot foresee that could cause our actual results to be materially different from historical results or from any future results expressed or implied by such forward-looking statements. You are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date made.

Factors which could cause actual results to differ materially, include, but are not limited to: adverse impacts to economic conditions in the Company’s local market areas, other markets where the Company has lending relationships, or other aspects of the Company’s business operations or financial markets, including, without limitation, as a result of employment levels, labor shortages and the effects of inflation or deflation, a recession or slowed economic growth, as well as supply chain disruptions; changes in the interest rate environment, including increases and decreases in the Board of Governors of the Federal Reserve System (the Federal Reserve) benchmark rate and the duration at which such interest rate levels are maintained, which could adversely affect our revenues and expenses, the values of our assets and obligations, and the availability and cost of capital and liquidity; the impact of inflation and the current and future monetary policies of the Federal Reserve in response thereto; the effects of any federal government shutdown; the impact of bank failures or adverse developments at other banks and related negative press about the banking industry in general on investor and depositor sentiment; changes in consumer spending, borrowing and savings habits; fluctuations in interest rates; the risks of lending and investing activities, including changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for credit losses; the Company’s ability to access cost-effective funding; fluctuations in real estate values and both residential and commercial real estate market conditions; demand for loans and deposits in the Company’s market area; secondary market conditions for loans;expectations regarding key growth initiatives and strategic priorities; environmental, social and governance goals and targets; results of examinations of the Company or the Bank by their regulators; increased competition; changes in management’s business strategies; legislative changes; changes in the regulatory and tax environments in which the Company operates; disruptions, security breaches, or other adverse events, failures or interruptions in, or attacks on, our information technology systems or on our third-party vendors; the potential for new or increased tariffs, trade restrictions, or geopolitical tensions that could affect economic activity or specific industry sectors; the effects of climate change, severe weather events, natural disasters, pandemics, epidemics and other public health crises, acts of war or terrorism, civil unrest and other external events on our business; and other factors described in the Company’s latest Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q and other documents filed with or furnished to the SEC, which are available at www.soundcb.com and on the SEC’s website at www.sec.gov. The risks inherent in these factors could cause the Company’s actual results to differ materially from those expressed in any forward-looking statements made by, or on behalf of, the Company and could negatively affect the Company’s operating and stock performance.

The Company does not undertake—and specifically disclaims any obligation—to revise any forward-looking statement to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statement.

CONSOLIDATED INCOME STATEMENTS
(Dollars in thousands, unaudited)

	For the Quarter Ended
	March 31, 2025			December 31, 2024			September 30, 2024		June 30, 2024			March 31, 2024
Interest income	$	13,706		$	14,736		$	14,838	$	14,039		$	13,760
Interest expense		5,635			6,516			6,965		6,591			6,300
Net interest income		8,071			8,220			7,873		7,448			7,460
(Release of) provision for credit losses		(203	)		14			8		(109	)		(33	)
Net interest income after (release of) provision for credit losses		8,274			8,206			7,865		7,557			7,493
Noninterest income:
Service charges and fee income		684			619			628		761			612
Earnings on bank-owned life insurance		195			127			186		134			177
Mortgage servicing income		269			277			280		279			282
Fair value adjustment on mortgage servicing rights		(99	)		77			101		(116	)		(65	)
Net gain on sale of loans		49			53			40		74			90
Other income		—			7			—		30			—
Total noninterest income		1,098			1,160			1,235		1,162			1,096
Noninterest expense:
Salaries and benefits		4,595			3,920			4,469		4,658			4,543
Operations		1,365			1,329			1,540		1,569			1,457
Regulatory assessments		221			189			189		220			189
Occupancy		437			409			414		397			444
Data processing		1,293			1,232			1,067		910			1,017
Net (gain) loss on OREO and repossessed assets		3			(21	)		—		(17	)		6
Total noninterest expense		7,914			7,058			7,679		7,737			7,656
Income before provision for income taxes		1,458			2,308			1,421		982			933
Provision for income taxes		291			389			267		187			163
Net income	$	1,167		$	1,919		$	1,154	$	795		$	770

CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, unaudited)

	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
ASSETS
Cash and cash equivalents	$	131,494		$	43,641		$	148,930		$	135,111		$	137,977
Available-for-sale securities, at fair value		7,689			7,790			8,032			7,996			8,115
Held-to-maturity securities, at amortized cost		2,121			2,130			2,139			2,147			2,157
Loans held-for-sale		2,267			487			65			257			351
Loans held-for-portfolio		886,226			900,171			901,733			889,274			897,877
Allowance for credit losses – loans		(8,393	)		(8,499	)		(8,585	)		(8,493	)		(8,598	)
Total loans held-for-portfolio, net		877,833			891,672			893,148			880,781			889,279
Accrued interest receivable		3,540			3,471			3,705			3,413			3,617
Bank-owned life insurance, net		22,685			22,490			22,363			22,172			22,037
Other real estate owned (“OREO”) and other repossessed assets, net		41			—			115			115			690
Mortgage servicing rights, at fair value		4,688			4,769			4,665			4,540			4,612
Federal Home Loan Bank (“FHLB”) stock, at cost		1,734			1,730			2,405			2,406			2,406
Premises and equipment, net		4,591			4,697			4,807			4,906			6,685
Right-of-use assets		3,546			3,725			3,779			4,020			4,259
Other assets		6,957			7,031			6,777			6,995			4,500
TOTAL ASSETS	$	1,069,186		$	993,633		$	1,100,930		$	1,074,859		$	1,086,685
LIABILITIES
Interest-bearing deposits	$	783,660		$	705,267		$	800,480		$	781,854		$	788,217
Noninterest-bearing deposits		126,687			132,532			129,717			124,915			128,666
Total deposits		910,347			837,799			930,197			906,769			916,883
Borrowings		25,000			25,000			40,000			40,000			40,000
Accrued interest payable		586			765			908			760			719
Lease liabilities		3,828			4,013			4,079			4,328			4,576
Other liabilities		10,774			9,371			9,711			9,105			9,578
Advance payments from borrowers for taxes and insurance		2,450			1,260			2,047			812			2,209
Subordinated notes, net		11,770			11,759			11,749			11,738			11,728
TOTAL LIABILITIES		964,755			889,967			998,691			973,512			985,693
STOCKHOLDERS’ EQUITY:
Common stock		25			25			25			25			25
Additional paid-in capital		28,515			28,413			28,296			28,198			28,110
Retained earnings		76,952			76,272			74,840			74,173			73,907
Accumulated other comprehensive loss, net of tax		(1,061	)		(1,044	)		(922	)		(1,049	)		(1,050	)
TOTAL STOCKHOLDERS’ EQUITY		104,431			103,666			102,239			101,347			100,992
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,069,186		$	993,633		$	1,100,930		$	1,074,859		$	1,086,685

KEY FINANCIAL RATIOS
(unaudited)

	For the Quarter Ended
	March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024
Annualized return on average assets	0.45	%	0.70	%	0.42	%	0.30	%	0.29	%
Annualized return on average equity	4.53	%	7.40	%	4.50	%	3.17	%	3.06	%
Annualized net interest margin⁽¹⁾	3.25	%	3.13	%	2.98	%	2.92	%	2.95	%
Annualized efficiency ratio⁽²⁾	86.31	%	75.25	%	84.31	%	89.86	%	89.48	%

(1)	Net interest income divided by average interest earning assets.
(2)	Noninterest expense divided by total revenue (net interest income and noninterest income).

PER COMMON SHARE DATA
(unaudited)

	At or For the Quarter Ended
	March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024
Basic earnings per share	$	0.45	$	0.75	$	0.45	$	0.31	$	0.30
Diluted earnings per share	$	0.45	$	0.74	$	0.45	$	0.31	$	0.30
Weighted-average basic shares outstanding		2,554,265		2,547,210		2,544,233		2,540,538		2,539,213
Weighted-average diluted shares outstanding		2,578,609		2,578,771		2,569,368		2,559,015		2,556,958
Common shares outstanding at period-end		2,566,069		2,564,907		2,564,095		2,557,284		2,558,546
Book value per share	$	40.70	$	40.42	$	39.87	$	39.63	$	39.47

AVERAGE BALANCE, AVERAGE YIELD EARNED, AND AVERAGE RATE PAID
(Dollars in thousands, unaudited)

The following table presents, for the periods indicated, the total dollar amount of interest income from average interest-earning assets and the resultant yields, as well as the interest expense on average interest-bearing liabilities, expressed both in dollars and rates. Income and yields on tax-exempt obligations have not been computed on a tax equivalent basis. All average balances are daily average balances. Nonaccrual loans have been included in the table as loans carrying a zero yield for the period they have been on nonaccrual (dollars in thousands).

	Three Months Ended
	March 31, 2025							December 31, 2024							March 31, 2024
	Average Outstanding Balance			Interest Earned/Paid		Yield/Rate		Average Outstanding Balance			Interest Earned/Paid		Yield/Rate		Average Outstanding Balance			Interest Earned/Paid		Yield/Rate
Interest-Earning Assets:
Loans receivable	$	896,822		$	12,588	5.69	%	$	900,832		$	13,070	5.77	%	$	895,430		$	12,233	5.49	%
Interest-earning cash		95,999			1,010	4.27	%		130,412			1,534	4.68	%		107,361			1,416	5.30	%
Investments		12,924			108	3.39	%		13,263			132	3.96	%		14,038			111	3.18	%
Total interest-earning assets	$	1,005,745			13,706	5.53	%		1,044,507		$	14,736	5.61	%	$	1,016,829			13,760	5.44	%
Interest-Bearing Liabilities:
Savings and money market accounts	$	335,419			2,058	2.49	%	$	350,495			2,476	2.81	%	$	284,455			1,866	2.64	%
Demand and NOW accounts		140,905			108	0.31	%		144,470			128	0.35	%		159,762			141	0.35	%
Certificate accounts		289,960			3,039	4.25	%		301,293			3,413	4.51	%		315,495			3,696	4.71	%
Subordinated notes		11,766			168	5.79	%		11,756			168	5.69	%		11,724			168	5.76	%
Borrowings		25,000			262	4.25	%		30,546			331	4.31	%		40,000			429	4.31	%
Total interest-bearing liabilities	$	803,050			5,635	2.85	%	$	838,560			6,516	3.09	%	$	811,436			6,300	3.12	%
Net interest income/spread				$	8,071	2.68	%				$	8,220	2.52	%				$	7,460	2.32	%
Net interest margin						3.25	%						3.13	%						2.95	%

Ratio of interest-earning assets to interest-bearing liabilities		125	%						125	%						125	%
Noninterest-bearing deposits	$	126,215						$	130,476						$	132,438
Total deposits		892,499		$	5,205	2.37	%		926,734		$	6,017	2.58	%		892,150		$	5,703	2.57	%
Total funding ⁽¹⁾		929,265			5,635	2.46	%		969,036			6,516	2.68	%		943,874			6,300	2.68	%

(1)	Total funding is the sum of average interest-bearing liabilities and average noninterest-bearing deposits. The cost of total funding is calculated as annualized total interest expense divided by average total funding.

LOANS
(Dollars in thousands, unaudited)

	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
Real estate loans:
One-to-four family	$	262,457		$	269,684		$	271,702		$	268,488		$	279,213
Home equity		28,112			26,686			25,199			26,185			24,380
Commercial and multifamily		392,798			371,516			358,587			342,632			324,483
Construction and land		42,492			73,077			85,724			96,962			111,726
Total real estate loans		725,859			740,963			741,212			734,267			739,802
Consumer Loans:
Manufactured homes		42,448			41,128			40,371			38,953			37,583
Floating homes		86,626			86,411			86,155			81,622			84,237
Other consumer		18,224			17,720			18,266			18,422			18,847
Total consumer loans		147,298			145,259			144,792			138,997			140,667
Commercial business loans		14,690			15,605			17,481			17,860			19,075
Total loans		887,847			901,827			903,485			891,124			899,544
Less:
Premiums		688			718			736			754			808
Deferred fees, net		(2,309	)		(2,374	)		(2,488	)		(2,604	)		(2,475	)
Allowance for credit losses – loans		(8,393	)		(8,499	)		(8,585	)		(8,493	)		(8,598	)
Total loans held-for-portfolio, net	$	877,833		$	891,672		$	893,148		$	880,781		$	889,279

DEPOSITS
(Dollars in thousands, unaudited)

	March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024
Noninterest-bearing demand	$	126,687	$	132,532	$	129,717	$	124,915	$	128,666
Interest-bearing demand		143,595		142,126		148,740		152,829		159,178
Savings		63,533		61,252		61,455		63,368		65,723
Money market		287,058		206,067		285,655		253,873		241,976
Certificates		289,474		295,822		304,630		311,784		321,340
Total deposits	$	910,347	$	837,799	$	930,197	$	906,769	$	916,883

CREDIT QUALITY DATA
(Dollars in thousands, unaudited)

	At or For the Quarter Ended
	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
Total nonperforming loans	$	9,653		$	7,491		$	8,489		$	8,909		$	9,053
OREO and other repossessed assets		41			—			115			115			690
Total nonperforming assets	$	9,694		$	7,491		$	8,604		$	9,024		$	9,743
Net charge-offs during the quarter	$	(21	)	$	(13	)	$	(14	)	$	(17	)	$	(56	)
Provision for (release of) credit losses during the quarter		(203	)		14			8			(109	)		(33	)
Allowance for credit losses – loans		8,393			8,499			8,585			8,493			8,598
Allowance for credit losses – loans to total loans		0.95	%		0.94	%		0.95	%		0.96	%		0.96	%
Allowance for credit losses – loans to total nonperforming loans		86.95	%		113.46	%		101.13	%		95.33	%		94.97	%
Nonperforming loans to total loans		1.09	%		0.83	%		0.94	%		1.00	%		1.01	%
Nonperforming assets to total assets		0.91	%		0.75	%		0.78	%		0.84	%		0.90	%

OTHER STATISTICS
(Dollars in thousands, unaudited)

	At or For the Quarter Ended
	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024

Total loans to total deposits		97.53	%		107.64	%		97.13	%		98.27	%		98.11	%
Noninterest-bearing deposits to total deposits		13.92	%		15.82	%		13.95	%		13.78	%		14.03	%

Average total assets for the quarter	$	1,051,135		$	1,089,067		$	1,095,404		$	1,070,579		$	1,062,036
Average total equity for the quarter	$	104,543		$	103,181		$	102,059		$	100,961		$	101,292

Contact

Financial:
Wes Ochs
Executive Vice President/CFO
(206) 436-8587

Media:
Laurie Stewart
President/CEO
(206) 436-1495

The MIL Network –

April 30, 2025

MIL-OSI: ChampionX Reports First Quarter 2025 Results

Source: GlobeNewswire (MIL-OSI)

THE WOODLANDS, Texas, April 29, 2025 (GLOBE NEWSWIRE) — ChampionX Corporation (NASDAQ: CHX) (“ChampionX” or the “Company”) today announced first quarter of 2025 results. Revenue was $864.5 million, net income attributable to ChampionX was $85.8 million, and adjusted EBITDA was $190.9 million. Income before income taxes margin was 12.1% and adjusted EBITDA margin was 22.1%. Cash from operating activities was $66.8 million and free cash flow was $38.6 million.

CEO Commentary

“The first quarter demonstrated the resilience of our ChampionX portfolio as we delivered strong adjusted EBITDA and adjusted EBITDA margin, and generated positive free cash flow. These results reflect the commitment of our ChampionX employees around the world who express daily an unwavering focus on delivering value-added solutions for our customers’ most important challenges. I am thankful and humbled to lead such a talented and dedicated team,” ChampionX’s President and Chief Executive Officer Sivasankaran “Soma” Somasundaram said.

“During the first quarter of 2025, we generated revenue of $864 million, which decreased 5% sequentially, in line with our expectations, driven primarily by a typical seasonal decline in international operations. We generated net income attributable to ChampionX of $86 million, income before income taxes margin of 12.1%, and we delivered adjusted EBITDA of $191 million, representing a 22.1% adjusted EBITDA margin, our second-highest level as ChampionX, which speaks to the continued productivity and profitability focus of our team.

“Cash flow from operating activities was $67 million during the first quarter, which represented 78% of net income attributable to ChampionX, and we generated free cash flow of $39 million, our 12th consecutive quarter of positive free cash flow. Our balance sheet and financial position remain strong, ending the first quarter with approximately $1.2 billion of liquidity, including $527 million of cash and $674 million of available capacity on our revolving credit facility.

“As a leading global provider of production optimization solutions for the energy industry, ChampionX is uniquely well-positioned to help operators meet the objective of maximizing the value of their producing assets, particularly against the backdrop of the ongoing structural shift toward capital discipline and moderating capital spending in the upstream and midstream industries. As global oil production grows, our differentiated and resilient production-oriented portfolio drives our expectation of positive performance relative to general oil and gas market activity in 2025.

“Amid recent changes in international trade policies, ChampionX is continuing to put its continuous improvement culture to work every day to successfully deliver products and technologies designed to improve our cost structure and drive efficiencies. We are leveraging our global and flexible supply chain footprint, long-standing supplier partnerships, pricing adjustments, and productivity initiatives to address tariff impacts, and we will continue to be there to serve our customers and deliver differentiated margin and free cash flow performance.”

Agreement to be Acquired by SLB

On April 2, 2024, SLB (NYSE: SLB) and ChampionX jointly announced a definitive Agreement and Plan of Merger (the “Merger Agreement”) for SLB to purchase ChampionX in an all-stock transaction. The transaction was unanimously approved by the ChampionX board of directors and the transaction received the approval of the ChampionX stockholders at a special meeting held on June 18, 2024. The transaction is subject to regulatory approvals and other customary closing conditions.

ChampionX may continue to pay its regular quarterly cash dividends with customary record and payment dates, subject to certain limitations under the Merger Agreement. Given the pending acquisition of ChampionX by SLB, ChampionX has discontinued providing quarterly guidance and will not host a conference call or webcast to discuss its first quarter 2025 results.

Production Chemical Technologies

Production Chemical Technologies revenue in the first quarter of 2025 was $523.4 million, a decrease of $46.3 million, or 8%, sequentially, due primarily to seasonally lower international sales volumes.

Segment operating profit was $82.2 million and adjusted segment EBITDA was $109.1 million. Segment operating profit margin was 15.7%, a sequential decrease of 248 basis points, and adjusted segment EBITDA margin was 20.8%, a sequential decrease of 259 basis points. The sequential decrease in segment operating profit margin and adjusted segment EBITDA margin was driven by lower sales volumes.

Production & Automation Technologies

Production & Automation Technologies revenue in the first quarter of 2025 was $264.4 million, a decrease of $5.2 million, or 2%, sequentially, due primarily to seasonally lower international sales volumes. Revenue from digital products was $57.8 million in the first quarter of 2025, a sequential decrease of 7%, driven by seasonally lower customer activity in North America.

Segment operating profit was $37.6 million and adjusted segment EBITDA was $70.3 million. Segment operating profit margin was 14.2%, a sequential decrease of 27 basis points, and adjusted segment EBITDA margin was 26.6%, a sequential increase of 34 basis points. The decrease in segment operating profit margin and the increase in adjusted segment EBITDA margin was driven by lower sales volumes, offset somewhat by productivity improvements.

Drilling Technologies

Drilling Technologies revenue in the first quarter of 2025 was $50.5 million, a decrease of $1.4 million, or 3%, sequentially, driven primarily by lower North America sales volumes.

Segment operating profit was $8.2 million and adjusted segment EBITDA was $10.2 million. Segment operating profit margin was 16.2%, compared to 20.6% in the prior quarter, and adjusted segment EBITDA margin was 20.3%, a decrease of 346 basis points, sequentially, due primarily to lower volumes.

Reservoir Chemical Technologies

Reservoir Chemical Technologies revenue in the first quarter of 2025 was $26.9 million, an increase of $5.0 million, or 23%, sequentially, driven by higher sales volumes in the U.S. and internationally.

Segment operating profit was $5.5 million and adjusted segment EBITDA was $6.3 million. Segment operating profit margin was 20.5%, an increase of 1008 basis points, sequentially, and adjusted segment EBITDA margin was 23.6%, an increase of 647 basis points, sequentially. The increase in segment operating profit margin and adjusted segment EBITDA margin was driven by higher sales volumes together with a more favorable product mix.

Other Business Highlights: Production Chemical Technologies and Reservoir Chemical Technologies

Awarded several first fill contracts for new conventional and unconventional fields in the Middle East region.
The North America Offshore production chemicals team was awarded the contract for an upcoming major capital project in the Gulf of America. The win was the culmination of years’ worth of work developing technical solutions to address the project’s most impactful challenges.
Commenced the initial deliveries of a significant volume of hydrate inhibitor for a major new FPSO, supporting an independent Australian operator.
Awarded program of competitive process water treatment applications in Canada after performing comprehensive technical assessments and value-added recommendations.
Completed our second RENEWIQ^® (production and reservoir chemistry delivered through one trailer) joint offering for frac treating.
Reservoir group was awarded RENEWIQ work for the application of our production enhancement PROE completion chemistry to improve production over the life of wells. This program, combined with our one-site PCT service expertise, continues to bring differentiated solutions to operators in the Permian Basin.
Started the Unconventional Water team to support North America Land Water applications.
Recently won four different contracts after re-entering the US Land market with our H2S scavenger program.
Providing chemistries supporting a Canadian customer that is scheduled to commission and start up a new thermal asset in August 2025.

Other Business Highlights: Production & Automation Technologies

Awarded a multi-year contract for production optimization software by a customer in Indonesia. 4000+ wells were successfully migrated in Q1 to our XSPOC^® production optimization software, delivering data-driven insights to help the customer make informed production decisions across their field for all artificial lift systems.
Continue to see strong market adoption of new digital technologies as operators look for cost-effective, scalable monitoring solutions. More than 450 SmartSpin^® wireless rod rotator sensors have been installed in the field and 120+ of the recently launched SMARTEN™^® Lite rod pump controller have been deployed.
ChampionX’s RMSpumptools, in partnership with our UNBRIDLED^® ESP Systems team, continues to grow sales of Automatic Diverter Valves (ADV) in the Permian for a major oil company. This key technology offers customers better sand and solids management in ESP systems and acts as a safety device for ESPs featuring a PMM motor.
Following two 6-month trial installations, RMSpumptools has received an order for its Y-chek systems by a Middle East national oil company. This success sets the direction for expansion of this Y-chek solution.
Completed the first 30+ well trial with a major producer in the Permian basin of the newly offered chemical injection assurance (CIA) software module on the modern, secure, and scalable Connexia^® platform. The CIA software provides fully integrated chemical measurement and delivery data as well as control and optimization capabilities.
The SMARTEN XE ESP control system is a leader in the ESP control market. In Q1, ChampionX secured a new customer based on the advanced capabilities of the SMARTEN XE controller. The system’s ability to deliver enhanced performance across multi-pad projects was central to the customer’s decision. Since launch, ChampionX has installed hundreds of ESPs with SMARTEN XE controls, improving the operation of customers’ ESP systems.
Launched newly designed LOOKOUT^® optimization services to provide real-time data with full ESP system control, advanced data visualization, integrated communications, and direct access to a team of multi-disciplined artificial lift experts. Powered by a modern digital backbone, LOOKOUT optimization services enable streamlined integration of diverse data sources and control solutions. LOOKOUT also leverages the full capabilities of the SMARTEN XE ESP control system, delivering advanced automation for ESP operations.
ChampionX’s Integrated Production Optimization (IPO) business continues to expand. A Permian operator, following a series of acquisitions, has expanded implementation of the IPO solution across newly acquired acreage – placing all new wells and ESP replacements under the IPO program. IPO has consistently delivered measurable production uplift, enhanced equipment reliability, stabilized reservoir pressure drawdown, and optimized chemical spend for the operator.
ChampionX’s Norris Sucker Rods has been awarded a large contract for the supply of approximately 35,000 sucker rods for a major customer in India. ChampionX won the contract based on superior reliability and in-country technical support, according to the customer.
Norris Rods received a large bulk order for sucker rods from a U.S. independent producer to assure supply for future operations and to mitigate the impact of tariffs. Norris Rods are manufactured from U.S. steel at the Company’s factory in Tulsa, Oklahoma.

About Non-GAAP Measures

In addition to financial results determined in accordance with generally accepted accounting principles in the United States (“GAAP”), this news release presents non-GAAP financial measures. Management believes that adjusted EBITDA, adjusted EBITDA margin, adjusted net income attributable to ChampionX and adjusted diluted earnings per share attributable to ChampionX, provide useful information to investors regarding the Company’s financial condition and results of operations because they reflect the core operating results of our businesses and help facilitate comparisons of operating performance across periods. In addition, free cash flow, free cash flow to adjusted EBITDA ratio, and free cash flow to revenue ratio are used by management to measure our ability to generate positive cash flow for debt reduction and to support our strategic objectives. Although management believes the aforementioned non-GAAP financial measures are good tools for internal use and the investment community in evaluating ChampionX’s overall financial performance, the foregoing non-GAAP financial measures should be considered in addition to, not as a substitute for or superior to, other measures of financial performance prepared in accordance with GAAP. A reconciliation of these non-GAAP measures to the most directly comparable GAAP measures is included in the accompanying financial tables.

About ChampionX

ChampionX is a global leader in chemistry solutions, artificial lift systems, and highly engineered equipment and technologies that help companies drill for and produce oil and gas safely, efficiently, and sustainably around the world. ChampionX’s expertise, innovative products, and digital technologies provide enhanced oil and gas production, transportation, and real-time emissions monitoring throughout the lifecycle of a well. To learn more about ChampionX, visit our website at www.ChampionX.com.

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include statements relating to the proposed transaction between SLB and ChampionX, including statements regarding the benefits of the transaction and the anticipated timing of the transaction, and information regarding the businesses of SLB and ChampionX, including expectations regarding outlook and all underlying assumptions, SLB’s and ChampionX’s objectives, plans and strategies, information relating to operating trends in markets where SLB and ChampionX operate, statements that contain projections of results of operations or of financial condition and all other statements other than statements of historical fact that address activities, events or developments that SLB or ChampionX intends, expects, projects, believes or anticipates will or may occur in the future. Such statements are based on management’s beliefs and assumptions made based on information currently available to management. All statements in this communication, other than statements of historical fact, are forward-looking statements that may be identified by the use of the words “outlook,” “guidance,” “expects,” “believes,” “anticipates,” “should,” “estimates,” “intends,” “plans,” “seeks,” “targets,” “may,” “can,” “believe,” “predict,” “potential,” “projected,” “projections,” “precursor,” “forecast,” “ambition,” “goal,” “scheduled,” “think,” “could,” “would,” “will,” “see,” “likely,” and other similar expressions or variations, but not all forward-looking statements include such words. These forward-looking statements involve known and unknown risks and uncertainties, and which may cause SLB’s or ChampionX’s actual results and performance to be materially different from those expressed or implied in the forward-looking statements. Factors and risks that may impact future results and performance include, but are not limited to those factors and risks described in Part I, “Item 1. Business”, “Item 1A. Risk Factors”, and “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in SLB’s Annual Report on Form 10-K for the year ended December 31, 2024, as filed with the Securities and Exchange Commission (the “SEC”) on January 22, 2025 and Part 1, Item 1A, “Risk Factors” in ChampionX’s Annual Report on Form 10-K for the year ended December 31, 2024 filed with the SEC on February 5, 2025, and each of their respective, subsequent Current Reports on Form 8-K. These include, but are not limited to, and in each case as a possible result of the proposed transaction on each of SLB and ChampionX: the ultimate outcome of the proposed transaction between SLB and ChampionX, including the effect of the announcement of the proposed transaction; the ability to operate the SLB and ChampionX respective businesses, including business disruptions; difficulties in retaining and hiring key personnel and employees; the ability to maintain favorable business relationships with customers, suppliers and other business partners; the terms and timing of the proposed transaction; the occurrence of any event, change or other circumstance that could give rise to the termination of the proposed transaction; the anticipated or actual tax treatment of the proposed transaction; the ability to satisfy closing conditions to the completion of the proposed transaction (including the adoption of the merger agreement in respect of the proposed transaction by ChampionX stockholders); other risks related to the completion of the proposed transaction and actions related thereto; the ability of SLB and ChampionX to integrate the business successfully and to achieve anticipated synergies and value creation from the proposed transaction; changes in demand for SLB’s or ChampionX’s products and services; global market, political and economic conditions, including in the countries in which SLB and ChampionX operate; the ability to secure government regulatory approvals on the terms expected, at all or in a timely manner; the extent of growth of the oilfield services market generally, including for chemical solutions in production and midstream operations; the global macro-economic environment, including headwinds caused by inflation, rising interest rates, unfavorable currency exchange rates, and potential recessionary or depressionary conditions; the impact of shifts in prices or margins of the products that SLB or ChampionX sells or services that SLB or ChampionX provides, including due to a shift towards lower margin products or services; cyber-attacks, information security and data privacy; the impact of public health crises, such as pandemics (including COVID-19) and epidemics and any related company or government policies and actions to protect the health and safety of individuals or government policies or actions to maintain the functioning of national or global economies and markets; trends in crude oil and natural gas prices, including trends in chemical solutions across the oil and natural gas industries, that may affect the drilling and production activity, profitability and financial stability of SLB’s and ChampionX’s customers and therefore the demand for, and profitability of, their products and services; litigation and regulatory proceedings, including any proceedings that may be instituted against SLB or ChampionX related to the proposed transaction; failure to effectively and timely address energy transitions that could adversely affect the businesses of SLB or ChampionX, results of operations, and cash flows of SLB or ChampionX; and disruptions of SLB’s or ChampionX’s information technology systems.

These risks, as well as other risks related to the proposed transaction, are included in the Form S-4 and proxy statement/prospectus that was filed with the SEC in connection with the proposed transaction. While the list of factors presented here is, and the list of factors presented in the registration statement on Form S-4 are, considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. For additional information about other factors that could cause actual results to differ materially from those described in the forward-looking statements, please refer to SLB’s and ChampionX’s respective periodic reports and other filings with the SEC, including the risk factors identified in SLB’s and ChampionX’s Annual Reports on Form 10-K, respectively, and SLB’s and ChampionX’s Quarterly Reports on Form 10-Q. The forward-looking statements included in this communication are made only as of the date hereof. Neither SLB nor ChampionX undertakes any obligation to update any forward-looking statements to reflect subsequent events or circumstances, except as required by law.

Investor Contact: Byron Pope
byron.pope@championx.com
281-602-0094

Media Contact: John Breed
john.breed@championx.com
281-403-5751

CHAMPIONX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)

	Three Months Ended
	March 31,			December 31,			March 31,
(in thousands, except per share amounts)		2025			2024			2024
Revenue	$	864,464		$	912,037		$	922,141
Cost of goods and services		572,938			600,154			622,937
Gross profit		291,526			311,883			299,204
Costs and expenses:
Selling, general and administrative expense		177,045			184,722			172,414
(Gain) loss on sale-leaseback transaction		—			—			(29,883	)
Interest expense, net		13,196			12,375			13,935
Foreign currency transaction losses (gains), net		1,504			1,697			55
Other expense (income), net		(4,631	)		(5,026	)		2,927
Income before income taxes		104,412			118,115			139,756
Provision for income taxes		15,384			33,204			26,596
Net income		89,028			84,911			113,160
Net income attributable to noncontrolling interest		3,231			2,145			237
Net income attributable to ChampionX	$	85,797		$	82,766		$	112,923

Earnings per share attributable to ChampionX:
Basic	$	0.45		$	0.43		$	0.59
Diluted	$	0.44		$	0.43		$	0.58

Weighted-average shares outstanding:
Basic		191,143			190,586			190,803
Diluted		193,709			193,487			193,964

CHAMPIONX CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)

(in thousands)	March 31, 2025			December 31, 2024
*ASSETS*
Current Assets:
Cash and cash equivalents	$	526,559		$	507,681
Receivables, net		417,639			466,782
Inventories, net		497,183			496,831
Assets held for sale		241,791			14,001
Prepaid expenses and other current assets		85,617			78,602
Total current assets		1,768,789			1,563,897

Property, plant and equipment, net		729,931			755,422
Goodwill		619,505			718,944
Intangible assets, net		247,907			258,614
Other non-current assets		134,258			173,375
Total assets	$	3,500,390		$	3,470,252

*LIABILITIES AND EQUITY*
Current Liabilities:
Current portion of long-term debt	$	6,203		$	6,203
Accounts payable		498,335			455,531
Liabilities held for sale		61,415			—
Other current liabilities		218,943			324,138
Total current liabilities		784,896			785,872

Long-term debt		590,746			591,453
Other long-term liabilities		220,054			261,749
Stockholders’ equity:
ChampionX stockholders’ equity		1,916,726			1,846,437
Noncontrolling interest		(12,032	)		(15,259	)
Total liabilities and equity	$	3,500,390		$	3,470,252

CHAMPIONX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)

	Three Months Ended March 31,
(in thousands)		2025			2024
Cash flows from operating activities:
Net income	$	89,028		$	113,160
Depreciation and amortization		60,056			59,580
(Gain) loss on sale-leaseback transaction		—			(29,883	)
Loss on Argentina Blue Chip Swap transaction		—			4,092
Deferred income taxes		(10,941	)		(12,903	)
Loss (gain) on disposal of fixed assets		1,616			1,107
Receivables		13,937			62,915
Inventories		(25,569	)		(39,873	)
Accounts payable		40,675			68,248
Other assets		(19,955	)		(602	)
Leased assets		(6,665	)		(4,254	)
Other operating items, net		(75,380	)		(48,079	)
Net cash flows provided by operating activities		66,802			173,508

Cash flows from investing activities:
Capital expenditures		(31,250	)		(31,912	)
Proceeds from sale of fixed assets		3,004			2,390
Proceeds from sale-leaseback transaction		—			44,292
Purchase of investments		—			(17,162	)
Sale of investments		—			13,070
Acquisitions, net of cash acquired		—			(21,472	)
Net cash used for investing activities		(28,246	)		(10,794	)

Cash flows from financing activities:
Repayment of long-term debt		(1,551	)		(1,551	)
Repurchases of common stock		—			(49,399	)
Dividends paid		(18,110	)		(16,247	)
Other		(488	)		3,104
Net cash used for financing activities		(20,149	)		(64,093	)

Effect of exchange rate changes on cash and cash equivalents		471			(1,161	)

Net increase in cash and cash equivalents		18,878			97,460
Cash and cash equivalents at beginning of period		507,681			288,557
Cash and cash equivalents at end of period	$	526,559		$	386,017

CHAMPIONX CORPORATION
BUSINESS SEGMENT DATA
(UNAUDITED)

	Three Months Ended
	March 31,			December 31,			March 31,
(in thousands)		2025			2024			2024
Segment revenue:
Production Chemical Technologies	$	523,390		$	569,662		$	590,108
Production & Automation Technologies		264,377			269,568			252,614
Drilling Technologies		50,530			51,942			55,206
Reservoir Chemical Technologies		26,926			21,937			24,705
Corporate and other		(759	)		(1,072	)		(492	)
Total revenue	$	864,464		$	912,037		$	922,141

Income before income taxes:
Segment operating profit (loss):
Production Chemical Technologies	$	82,172		$	103,567		$	87,832
Production & Automation Technologies		37,554			39,027			28,470
Drilling Technologies		8,174			10,703			44,402
Reservoir Chemical Technologies		5,529			2,294			3,746
Total segment operating profit		133,429			155,591			164,450
Corporate and other		15,821			25,101			10,759
Interest expense, net		13,196			12,375			13,935
Income before income taxes	$	104,412		$	118,115		$	139,756

Operating profit margin / income before income taxes margin:
Production Chemical Technologies		15.7	%		18.2	%		14.9	%
Production & Automation Technologies		14.2	%		14.5	%		11.3	%
Drilling Technologies		16.2	%		20.6	%		80.4	%
Reservoir Chemical Technologies		20.5	%		10.5	%		15.2	%
ChampionX Consolidated		12.1	%		13.0	%		15.2	%

Adjusted EBITDA
Production Chemical Technologies	$	109,065		$	133,475		$	118,031
Production & Automation Technologies		70,269			70,739			60,340
Drilling Technologies		10,237			12,321			16,074
Reservoir Chemical Technologies		6,347			3,751			5,346
Corporate and other		(5,049	)		(8,021	)		(8,079	)
Adjusted EBITDA	$	190,869		$	212,265		$	191,712

Adjusted EBITDA margin
Production Chemical Technologies		20.8	%		23.4	%		20.0	%
Production & Automation Technologies		26.6	%		26.2	%		23.9	%
Drilling Technologies		20.3	%		23.7	%		29.1	%
Reservoir Chemical Technologies		23.6	%		17.1	%		21.6	%
ChampionX Consolidated		22.1	%		23.3	%		20.8	%

CHAMPIONX CORPORATION
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES
(UNAUDITED)

	Three Months Ended
	March 31,			December 31,			March 31,
(in thousands)		2025			2024			2024
Net income attributable to ChampionX	$	85,797		$	82,766		$	112,923
Pre-tax adjustments:
(Gain) loss on sale leaseback transaction⁽¹⁾		—			—			(29,883	)
Russia sanctions compliance and impacts⁽²⁾		28			73			152
Restructuring and other related charges		1,059			2,704			1,709
Merger transaction costs⁽³⁾		10,232			14,434			—
Acquisition costs and related adjustments⁽⁴⁾		—			75			1,232
Intellectual property defense		382			158			779
Merger-related indemnification responsibility⁽⁵⁾		—			100			—
Tulsa, Oklahoma storm damage		—			—			305
Foreign currency transaction losses (gains), net		1,504			1,697			55
Loss on Argentina Blue Chip Swap transaction		—			—			4,092
Tax impact of adjustments		(2,971	)		(5,565	)		5,066
Adjusted net income attributable to ChampionX		96,031			96,442			96,430
Tax impact of adjustments		2,971			5,565			(5,066	)
Net income attributable to noncontrolling interest		3,231			2,145			237
Depreciation and amortization		60,056			62,534			59,580
Provision for income taxes		15,384			33,204			26,596
Interest expense, net		13,196			12,375			13,935
Adjusted EBITDA	$	190,869		$	212,265		$	191,712

_______________________

_{(1) Amount represents the gain on the sale and leaseback of certain buildings and land.}
_{(2) Includes charges incurred related to legal and professional fees to comply with, as well as additional foreign currency exchange losses associated with, the sanctions imposed in Russia.}
_{(3) Includes costs incurred in relation to the Merger Agreement with Schlumberger Limited, including third party legal and professional fees.}
_{(4) Includes costs incurred for the acquisition of businesses.}
_{(5) Expense related to the June 3, 2020 merger transaction with Ecolab in which we acquired the Chemical Technologies business.}

	Three Months Ended
	March 31,			December 31,			March 31,
(in thousands)		2025			2024			2024
Diluted earnings per share attributable to ChampionX	$	0.44		$	0.43		$	0.58
Per share adjustments:
(Gain) loss on sale leaseback transaction and disposal group		—			—			(0.15	)
Russia sanctions compliance and impacts		—			—			—
Restructuring and other related charges		0.01			0.01			0.01
Merger transaction costs		0.05			0.07			—
Acquisition costs and related adjustments		—			—			0.01
Intellectual property defense		—			—			—
Merger-related indemnification responsibility		—			—			—
Tulsa, Oklahoma storm damage		—			—			—
Foreign currency transaction losses (gains), net		0.01			0.01			—
Loss on Argentina Blue Chip Swap transaction		—			—			0.02
Tax impact of adjustments		(0.01	)		(0.02	)		0.03
Adjusted diluted earnings per share attributable to ChampionX	$	0.50		$	0.50		$	0.50

CHAMPIONX CORPORATION
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES BY SEGMENT
(UNAUDITED)

	Three Months Ended
	March 31,			December 31,			March 31,
(in thousands)		2025			2024			2024
Production Chemical Technologies
Segment operating profit	$	82,172		$	103,567		$	87,832
Non-GAAP adjustments		1,658			2,251			3,933
Depreciation and amortization		25,235			27,657			26,266
Segment adjusted EBITDA	$	109,065		$	133,475		$	118,031

Production & Automation Technologies
Segment operating profit	$	37,554		$	39,027		$	28,470
Non-GAAP adjustments		764			75			2,076
Depreciation and amortization		31,951			31,637			29,794
Segment adjusted EBITDA	$	70,269		$	70,739		$	60,340

Drilling Technologies
Segment operating profit	$	8,174		$	10,703		$	44,402
Non-GAAP adjustments		766			306			(29,883	)
Depreciation and amortization		1,297			1,312			1,555
Segment adjusted EBITDA	$	10,237		$	12,321		$	16,074

Reservoir Chemical Technologies
Segment operating profit	$	5,529		$	2,294		$	3,746
Non-GAAP adjustments		(278	)		39			16
Depreciation and amortization		1,096			1,418			1,584
Segment adjusted EBITDA	$	6,347		$	3,751		$	5,346

Corporate and other
Segment operating profit	$	(29,017	)	$	(37,476	)	$	(24,694	)
Non-GAAP adjustments		10,295			16,570			2,299
Depreciation and amortization		477			510			381
Interest expense, net		13,196			12,375			13,935
Segment adjusted EBITDA	$	(5,049	)	$	(8,021	)	$	(8,079	)

Free Cash Flow

	Three Months Ended
	March 31,			December 31,			March 31,
(in thousands)		2025			2024			2024
Free Cash Flow
Cash flows from operating activities	$	66,802		$	207,250		$	173,508
Less: Capital expenditures, net of proceeds from sale of fixed assets		(28,246	)		(37,117	)		(29,522	)
Free cash flow	$	38,556		$	170,133		$	143,986

Cash From Operating Activities to Revenue Ratio
Cash flows from operating activities	$	66,802		$	207,250		$	173,508
Revenue	$	864,464		$	912,037		$	922,141

Cash from operating activities to revenue ratio		8	%		23	%		19	%

Free Cash Flow to Revenue Ratio
Free cash flow	$	38,556		$	170,133		$	143,986
Revenue	$	864,464		$	912,037		$	922,141

Free cash flow to revenue ratio		4	%		19	%		16	%

Free Cash Flow to Adjusted EBITDA Ratio
Free cash flow	$	38,556		$	170,133		$	143,986
Adjusted EBITDA	$	190,869		$	212,265		$	191,712

Free cash flow to adjusted EBITDA ratio		20	%		80	%		75	%

The MIL Network –

April 30, 2025

MIL-OSI USA: Cassidy Introduces Bill to Help Working Families Afford Their First Homes

US Senate News:

Source: United States Senator for Louisiana Bill Cassidy

WASHINGTON – U.S. Senator Bill Cassidy, M.D. (R-LA) introduced the Affordable Housing Bond Enhancement Act to make homeownership more accessible for working families by improving tax credits for first-time homebuyers. The bill improves access to affordable home ownership by expanding tax credits for first-time buyers and making it easier for MRB borrowers to finance home improvements.
“Buying a home is increasingly out of reach for first-time buyers. This addresses that issue,” said Dr. Cassidy. “By giving them a boost, we get them on the ladder of homeownership.”
“The National Council of State Housing Agencies (NCSHA) thanks Senators Bill Cassidy and Cortez Masto for introducing the Affordable Housing Bond Enhancement Act, which will expand access to homeownership for low- and moderate-income home buyers,” said Stockton Williams, executive director of NCSHA. “Mortgage Revenue Bonds and Mortgage Credit Certificates historically have been the state housing finance agencies’ primary tool for financing affordable homeownership opportunities for working families, having helped nearly four million home buyers combined. This legislation will enact a series of simple, commonsense reforms to the MRB and MCC programs that will allow HFAs to better stretch their resources and help more underserved households.”
Cassidy was joined by U.S. Senator Catherine Cortez Masto (D-NV) in reintroducing the legislation.
Specifically, the Affordable Housing Bond Enhancement Act would:

Simplify the application process for MRB and MCC programs and make commonsense changes to use tax benefits to aid working families and add additional flexibility for borrowers.
Allow homeowners to refinance their mortgages with MRB loans, lowering costs for homeowners.
Increase the amount of money homeowners with MRB loans can direct towards making home health and safety improvements, including possibly adding accessible bathrooms and ramps to help older and disabled Americans remain in their homes, as well as supporting energy efficiency upgrades or disaster mitigation renovations. The bill raises the current limit of $15,000 to $75,000.
Provide housing finance agencies with the flexibility to extend loan and credit periods to account for delays due to the pandemic, supply chain issues, or construction shortages.
Only require the issuers, not the lenders, to report MCC recipients to the IRS for tax accuracy and shorten the lengthy 90-day public notice requirement to 30 days to encourage more widespread use of the MCC program.

This legislation is endorsed by the National Council of State Housing Agencies, LISC, National Association of REALTORS, National Association of Homebuilders, and the Mortgage Bankers Association.

MIL OSI USA News –

April 30, 2025

MIL-OSI USA News: Fact Sheet: President Donald J. Trump Incentivizes Domestic Automobile Production

Source: The White House

INCENTIVIZING DOMESTIC AUTO PRODUCTION: Today, President Donald J. Trump signed a proclamation to protect national security by incentivizing domestic automobile production and reducing American reliance on imports of foreign automobiles and their parts.

The proclamation modifies the tariff action on automobiles and automobile parts by encouraging manufacturers to assemble their automobiles in the U.S., thereby reducing American reliance on foreign imports of automobiles and automobile parts.
It offers an offset to a portion of tariffs for automobile parts used in U.S.-assembled vehicles equal to 3.75% of the Manufacturer’s Suggested Retail Price (MSRP) of a manufacturer’s U.S. production for the next year (April 3, 2025 to April 30, 2026), and 2.5% of U.S. production the year after (May 1, 2026 to April 30, 2027).
- These percentages reflect the duty that would be owed when a 25% duty is applied to 15% of the value of a U.S.-assembled automobile in the first year, and to 10% of the value of a U.S.-assembled automobile in the second year.
- All other automobile imports will still be subject to the 25% tariff.
- For instance, if a manufacturer builds a car in the U.S. that has 85% U.S. or USMCA content, the manufacturer effectively will not owe tariffs on that vehicle’s production for the first year.
- If a manufacturer builds a car in the U.S. that is 50% U.S. or USMCA content and 50% imported from elsewhere, then instead of paying the tariff on the full 50% of the imported car parts, the manufacturer effectively only pays on 35% for the first year.
The proclamation sets strict penalties for importers who claim tariff reduction in excess of approved amounts.
This modified action will more effectively address the threat to national security by reducing reliance on foreign manufacturing, strengthening U.S. vehicle assembly operations, boosting domestic R&D, and creating American jobs, all of which are essential to a strong defense industrial base.

MAINTAINING A RESILIENT DOMESTIC INDUSTRIAL BASE: President Trump is taking further action to ensure the U.S. can sustain its domestic industrial base and meet national-security needs.

The COVID-19 pandemic exposed critical vulnerabilities and choke points in global supply chains, undermining our ability to maintain a resilient domestic industrial base.
Legislation, pre-existing trade agreements like the USMCA, revisions to the U.S.-Korea Free Trade Agreement, and subsequent negotiations have not sufficiently mitigated the threat to national security posed by imports of automobiles and certain automobile parts.
Foreign automobile industries, bolstered by unfair subsidies and aggressive industrial policies, have expanded, while U.S. production has stagnated.
In 1985, American-owned facilities in the United States manufactured 11.0 million automobiles, representing 97% of overall domestic (American- and foreign-owned) production of automobiles.
In 2024, Americans bought approximately 16 million cars, SUVs, and light trucks, and 50% of these vehicles were imports (8 million).
- Of the other 8 million vehicles assembled in America and not imported, the average domestic content is conservatively estimated at only 50% and is likely closer to 40%.
- Therefore, of the 16 million cars bought by Americans, only 25% of the vehicle content can be categorized as Made in America.
The United States trade deficit in automobile parts reached $93.5 billion in 2024.
Currently, the U.S. automobile and automobile parts industry (American-owned and foreign-owned firms) employs approximately one million U.S. workers.
Employment in automotive parts manufacturing totaled approximately 553,300 jobs in 2024, a decline of 286,000 jobs or 34% since 2000.
In 2023, Research and Development (R&D) by American-owned automobile manufacturers amounted to only 16% of global R&D spending. R&D by American-owned firms lagged behind the EU, which controlled 53% of global R&D.

MIL OSI USA News –

April 30, 2025

MIL-OSI: Northeast Bank Reports Third Quarter Results and Declares Dividend

Source: GlobeNewswire (MIL-OSI)

PORTLAND, Maine, April 29, 2025 (GLOBE NEWSWIRE) — Northeast Bank (the “Bank”) (NASDAQ: NBN), a Maine-based bank, today reported net income of $18.7 million, or $2.23 per diluted common share, for the quarter ended March 31, 2025, compared to net income of $13.9 million, or $1.83 per diluted common share, for the quarter ended March 31, 2024. Net income for the nine months ended March 31, 2025 was $58.2 million, or $7.07 per diluted common share, compared to $43.1 million, or $5.67 per diluted common share, for the nine months ended March 31, 2024.

The Board of Directors declared a cash dividend of $0.01 per share, payable on May 27, 2025, to shareholders of record as of May 13, 2025.

“We recorded strong loan volume during the third fiscal quarter,” said Rick Wayne, Chief Executive Officer. “Our National Lending Division generated $292.5 million in originated and purchased volume, and our small balance SBA 7(a) program with Newity LLC as our loan service provider has continued to grow, with quarterly originations of $121.3 million, compared to $100.3 million for the quarter ended December 31, 2024 and $29.0 million for the quarter ended March 31, 2024. At March 31, 2025, the loan portfolio, including loans held for sale, totaled $3.80 billion, representing an increase of $1.04 billion, or 37.7%, over June 30, 2024. During the quarter ended March 31, 2025, we sold $73.6 million of the guaranteed portion of our SBA loans, generating a gain on sale of $6.0 million, compared with sales of $64.5 million for a gain on sale of $5.6 million in the quarter ended December 31, 2024. For the quarter, we are reporting earnings of $2.23 per diluted common share, a return on average equity of 16.5%, and a return on average assets of 1.9%.”

As of March 31, 2025, total assets were $4.23 billion, an increase of $1.10 billion, or 35.0%, from total assets of $3.13 billion as of June 30, 2024.

1. The following table highlights the changes in the loan portfolio, including loans held for sale, for the nine months ended March 31, 2025:


	Loan Portfolio Changes
	March 31, 2025 Balance		June 30, 2024 Balance		Change ($)			Change (%)
	(Dollars in thousands)
National Lending Purchased	$	2,443,822	$	1,708,551	$	735,271			43.03	%
National Lending Originated		1,185,153		981,497		203,656			20.75	%
SBA National		152,319		48,405		103,914			214.68	%
Community Banking		19,495		22,704		(3,209	)		(14.13	%)
Total	$	3,800,789	$	2,761,157	$	1,039,632			37.65	%

Loans generated by the Bank’s National Lending Division for the quarter ended March 31, 2025 totaled $292.5 million, which consisted of $74.5 million of purchased loans at an average price of 94.2% of unpaid principal balance, and $218.0 million of originated loans. Loans generated by the Bank’s SBA Division for the quarter ended March 31, 2025 totaled $121.3 million.

An overview of the Bank’s National Lending Division portfolio follows:

	National Lending Portfolio
	Three Months Ended March 31,
	2025						2024
	Purchased		Originated		Total		Purchased		Originated		Total
	(Dollars in thousands)
Loans purchased or originated during the period:
Unpaid principal balance	$	79,144	$	217,983	$	297,127	$	–	$	153,349	$	153,349
Initial net investment basis (1)		74,553		217,983		292,536		–		153,349		153,349

Loan returns during the period:
Yield		8.33%		8.73%		8.46%		8.67%		10.09%		9.19%
Total Return on Purchased Loans (2)		8.43%		N/A		8.43%		8.70%		N/A		8.70%

	Nine Months Ended March 31,
	2025						2024
	Purchased		Originated		Total		Purchased		Originated		Total
	(Dollars in thousands)
Loans purchased or originated during the period:
Unpaid principal balance	$	901,693	$	591,292	$	1,492,985	$	271,741	$	284,876	$	556,617
Initial net investment basis (1)		821,485		591,292		1,412,777		238,477		284,876		523,353

Loan returns during the period:
Yield		8.65%		9.02%		8.77%		8.95%		9.97%		9.34%
Total Return on Purchased Loans (2)		8.70%		N/A		8.70%		8.98%		N/A		8.98%

Total loans as of period end:
Unpaid principal balance	$	2,638,438	$	1,185,153	$	3,823,591	$	1,794,669	$	975,876	$	2,770,545
Net investment basis		2,443,822		1,185,153		3,628,975		1,620,409		975,876		2,596,285

(1) Initial net investment basis on purchased loans is the initial amortized cost basis net of initial allowance for credit losses (credit mark).
(2) The total return on purchased loans represents scheduled accretion, accelerated accretion, gains (losses) on real estate owned, release of allowance for credit losses on purchased loans, and other noninterest income recorded during the period divided by the average invested balance on an annualized basis. The total return on purchased loans does not include the effect of purchased loan charge-offs or recoveries during the period. Total return on purchased loans is considered a non-GAAP financial measure. See reconciliation in below table entitled “Total Return on Purchased Loans.”

2. Deposits increased by $956.3 million, or 40.9%, from June 30, 2024. The increase was primarily attributable to increases in time deposits of $943.5 million, or 72.2%. The significant drivers in the change in time deposits were the increase in brokered time deposits, which increased by $818.8 million, and Community Banking Division time deposits, which increased by $105.3 million compared to June 30, 2024.

3. Federal Home Loan Bank (“FHLB”) advances increased by $33.4 million, or 9.7%, from June 30, 2024. The increase was attributable to one new short-term borrowing, partially offset by net paydowns on amortizing advances.

4. Shareholders’ equity increased by $90.9 million, or 24.1%, from June 30, 2024, primarily due to net income of $58.2 million and $31.3 million of net proceeds on shares issued in connection with the Bank’s at-the-market (“ATM”) program.

Net income increased by $4.8 million to $18.7 million for the quarter ended March 31, 2025, compared to net income of $13.9 million for the quarter ended March 31, 2024.

1. Net interest and dividend income before provision for credit losses increased by $9.5 million to $46.0 million for the quarter ended March 31, 2025, compared to $36.5 million for the quarter ended March 31, 2024. The increase was primarily due to the following:

An increase in interest income earned on loans of $15.8 million, primarily due to higher average balances in the National Lending Division purchased and Small Business Administration (“SBA”) portfolios, partially offset by lower rates earned across the portfolio; and
An increase in interest income earned on short-term investments of $965 thousand, due to higher average balances, partially offset by lower rates earned; partially offset by,
An increase in deposit interest expense of $7.3 million, primarily due to higher average balances, partially offset by lower rates on interest-bearing deposits.

The following table summarizes interest income and related yields recognized on the loan portfolios:


	Interest Income and Yield on Loans
	Three Months Ended March 31,
	2025						2024
	Average		Interest				Average		Interest
	Balance (1)		Income		Yield		Balance (1)		Income		Yield
	(Dollars in thousands)
Community Banking	$	20,074	$	349	7.05	%	$	24,640	$	387	6.32	%
SBA National		121,521		2,975	9.93	%		35,848		1,159	13.00	%
National Lending:
Originated		1,120,756		24,120	8.73	%		953,401		23,909	10.09	%
Purchased		2,387,715		49,034	8.33	%		1,635,494		35,260	8.67	%
Total National Lending		3,508,471		73,154	8.46	%		2,588,895		59,169	9.19	%
Total	$	3,650,066	$	76,478	8.50	%	$	2,649,383	$	60,715	9.22	%

	Nine Months Ended March 31,
	2025						2024
	Average		Interest				Average		Interest
	Balance (1)		Income		Yield		Balance (1)		Income		Yield
	(Dollars in thousands)
Community Banking	$	21,330	$	1,088	6.79	%	$	25,786	$	1,242	6.41	%
SBA National		91,481		8,145	11.86	%		30,125		2,833	12.52	%
National Lending:
Originated		1,052,656		71,297	9.02	%		951,129		71,284	9.97	%
Purchased		2,183,068		141,831	8.65	%		1,558,362		104,780	8.95	%
Total National Lending		3,235,724		213,128	8.77	%		2,509,491		176,064	9.34	%
Total	$	3,348,535	$	222,361	8.85	%	$	2,565,402	$	180,139	9.35	%

(1) Includes loans held for sale.

The components of total income on purchased loans are set forth in the table below entitled “Total Return on Purchased Loans.” When compared to the quarter ended March 31, 2024, transactional income increased by $113 thousand for the quarter ended March 31, 2025, and regularly scheduled interest and accretion increased by $14.1 million primarily due to the increase in average balances. The total return on purchased loans for the quarter ended March 31, 2025 was 8.4%, a decrease from 8.7% for the quarter ended March 31, 2024. The following table details the total return on purchased loans:


	Total Return on Purchased Loans
	Three Months Ended March 31,
	2025				2024
	Income		Return (1)		Income		Return (1)
	(Dollars in thousands)
Regularly scheduled interest and accretion	$	48,149	8.18	%	$	34,045	8.37		%
Transactional income:
Release of allowance for credit losses on purchased loans		573	0.10	%		130	0.03		%
Accelerated accretion and loan fees		885	0.15	%		1,215	0.30		%
Total transactional income		1,458	0.25	%		1,345	0.33		%
Total	$	49,607	8.43	%	$	35,390	8.70		%

	Nine Months Ended March 31,
	2025				2024
	Income		Return (1)		Income			Return (1)
	(Dollars in thousands)
Regularly scheduled interest and accretion	$	136,055	8.30	%	$	98,505		8.41	%
Transactional income:
Release of allowance for credit losses on purchased loans		734	0.05	%		356		0.03	%
Accelerated accretion and loan fees		5,775	0.35	%		6,275		0.54	%
Total transactional income		6,509	0.40	%		6,631		0.57	%
Total	$	142,564	8.70	%	$	105,136		8.98	%

(1) The total return on purchased loans represents scheduled accretion, accelerated accretion, and gains (losses) on real estate owned, and release of allowance for credit losses on purchased loans recorded during the period divided by the average invested balance on an annualized basis. The total return does not include the effect of purchased loan charge-offs or recoveries in the quarter. Total return is considered a non-GAAP financial measure.

2. Provision for credit losses increased by $2.3 million to $2.9 million for the quarter ended March 31, 2025, compared to $596 thousand in the quarter ended March 31, 2024. The increase was primarily related to loan growth and increased reserves on the unguaranteed portion of the SBA portfolio.

3. Noninterest income increased by $5.1 million for the quarter ended March 31, 2025, compared to the quarter ended March 31, 2024, primarily due to an increase in gain on sale of SBA loans of $5.0 million, due to the sale of $73.6 million in SBA loans during the quarter ended March 31, 2025 as compared to the sale of $18.9 million during the quarter ended March 31, 2024.

4. Noninterest expense increased by $3.7 million for the quarter ended March 31, 2025 compared to the quarter ended March 31, 2024, primarily due to the following:

An increase in salaries and employee benefits expense of $1.7 million, primarily due to increases in regular, stock compensation expense and incentive compensation expense;
An increase in loan expense of $1.5 million primarily related to increased expenses in connection with the origination of SBA 7(a) loans; and
An increase in Federal Deposit Insurance Corporation (the “FDIC”) insurance expense of $195 thousand, due to the growth of the Bank’s asset size and an increased assessment rate.

5. Income tax expense increased by $3.7 million to $10.8 million, or an effective tax rate of 36.7%, for the quarter ended March 31, 2025, compared to $7.2 million, or an effective tax rate of 34.1%, for the quarter ended March 31, 2024. The increase in effective tax rate is primarily due to projected changes in income apportionment for state taxes and increased projections of the required write-down of the Bank’s deferred tax asset as a result of a change in Massachusetts income tax law.

As of March 31, 2025, nonperforming assets totaled $33.4 million, or 0.79% of total assets, compared to $28.3 million, or 0.90% of total assets, as of June 30, 2024.

As of March 31, 2025, past due loans totaled $34.0 million, or 0.91% of total loans, compared to past due loans totaling $26.3 million, or 0.95% of total loans, as of June 30, 2024.

As of March 31, 2025, the Bank’s Tier 1 leverage capital ratio was 11.5%, compared to 12.3% at June 30, 2024, and the Total risk-based capital ratio was 14.0% at March 31, 2025, compared to 14.8% at June 30, 2024. Capital ratios decreased primarily due to the increase in risk-weighted assets and average assets from significant loan growth during the nine months ended March 31, 2025, partially offset by increased retained earnings and additional capital raised under the Bank’s ATM program.

Investor Call Information
Rick Wayne, Chief Executive Officer, Richard Cohen, Chief Financial Officer, and Pat Dignan, Chief Operating Officer and Chief Credit Officer of Northeast Bank, will host a conference call to discuss third quarter earnings and business outlook at 10:00 a.m. Eastern Time on Wednesday, April 30^th. To access the conference call by phone, please go to this link (Phone Registration), and you will be provided with dial in details. The call will be available via live webcast, which can be viewed by accessing the Bank’s website at www.northeastbank.com and clicking on the About Us – Investor Relations section. To listen to the webcast, attendees are encouraged to visit the website at least fifteen minutes early to register, download and install any necessary audio software. Please note there will also be a slide presentation that will accompany the webcast. For those who cannot listen to the live broadcast, a replay will be available online for one year at www.northeastbank.com.

About Northeast Bank
Northeast Bank (NASDAQ: NBN) is a bank headquartered in Portland, Maine. We offer personal and business banking services to the Maine market via seven branches. Our National Lending Division purchases and originates commercial loans on a nationwide basis. ableBanking, a division of Northeast Bank, offers online savings products to consumers nationwide. Information regarding Northeast Bank can be found at www.northeastbank.com.

Non-GAAP Financial Measures
In addition to results presented in accordance with generally accepted accounting principles (“GAAP”), this press release contains certain non-GAAP financial measures, including tangible common shareholders’ equity, tangible book value per share, total return on purchased loans, and efficiency ratio. The Bank’s management believes that the supplemental non-GAAP information is utilized by regulators and market analysts to evaluate a company’s financial condition and therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names.

Forward-Looking Statements
Statements in this press release that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. We may also make forward-looking statements in other documents we file with the FDIC, in our annual reports to our shareholders, in press releases and other written materials, and in oral statements made by our officers, directors or employees. You can identify forward-looking statements by the use of the words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “assume,” “outlook,” “will,” “should,” and other expressions that predict or indicate future events and trends and which do not relate to historical matters. Although the Bank believes that these forward-looking statements are based on reasonable estimates and assumptions, they are not guarantees of future performance and are subject to known and unknown risks, uncertainties, contingencies, and other factors. You should not place undue reliance on our forward-looking statements. You should exercise caution in interpreting and relying on forward-looking statements because they are subject to significant risks, uncertainties and other factors which are, in some cases, beyond the Bank’s control. The Bank’s actual results could differ materially from those expressed or implied by such the forward-looking statements as a result of, among other factors, changes in interest rates and real estate values; changes in employment levels, general business and economic conditions on a national basis and in the local markets in which the Bank operates; changes in customer behavior due to changing business and economic conditions (including the impact of recently imposed tariffs by the U.S. Administration and foreign governments, inflation and concerns about liquidity) or legislative or regulatory initiatives; the possibility that future credits losses are higher than currently expected due to changes in economic assumptions, customer behavior or adverse economic developments; turbulence in the capital and debt markets; competitive pressures from other financial institutions; changes in loan defaults and charge-off rates; changes in the value of securities and other assets, adequacy of credit loss reserves, or deposit levels necessitating increased borrowing to fund loans and investments; changes in legislation and regulation under the new U.S. presidential administration; operational risks including, but not limited to, cybersecurity, fraud, natural disasters, climate change and future pandemics; the risk that the Bank may not be successful in the implementation of its business strategy; the risk that intangibles recorded in the Bank’s financial statements will become impaired; changes in assumptions used in making such forward-looking statements; and the other risks and uncertainties detailed in the Bank’s Annual Report on Form 10-K, as amended by Amendment No. 1 to the Annual Report on Form 10-K/A for the year ended June 30, 2024 as updated in the Bank’s Quarterly Reports on Form 10-Q and other filings submitted to the FDIC. These statements speak only as of the date of this release and the Bank does not undertake any obligation to update or revise any of these forward-looking statements to reflect events or circumstances occurring after the date of this communication or to reflect the occurrence of unanticipated events.

NBN-F


NORTHEAST BANK
BALANCE SHEETS
(Unaudited)
(Dollars in thousands, except share and per share data)
	March 31, 2025		June 30, 2024
Assets
Cash and due from banks	$	2,443	$	2,711
Short-term investments		341,633		239,447
Total cash and cash equivalents		344,076		242,158


Available-for-sale debt securities, at fair value		21,473		48,978
Equity securities, at fair value		7,314		7,013
Total investment securities		28,787		55,991

SBA loans held for sale		60,339		14,506

Loans:
Commercial real estate		2,764,809		2,028,280
Commercial and industrial		852,985		618,846
Residential real estate		122,466		99,234
Consumer		190		291
Total loans		3,740,450		2,746,651
Less: Allowance for credit losses		46,024		26,709
Loans, net		3,694,426		2,719,942


Premises and equipment, net		25,338		27,144
Real estate owned and other possessed collateral, net		1,200		–
Federal Home Loan Bank stock, at cost		16,106		15,751
Loan servicing rights, net		810		984
Bank-owned life insurance		19,203		18,830
Accrued interest receivable		17,445		15,163
Other assets		20,772		21,734
Total assets	$	4,228,502	$	3,132,203

Liabilities and Shareholders’ Equity
Deposits:
Demand	$	154,540	$	146,727
Savings and interest checking		796,762		732,029
Money market		94,837		154,504
Time		2,249,654		1,306,203
Total deposits		3,295,793		2,339,463

Federal Home Loan Bank and other advances		378,543		345,190
Lease liability		19,465		20,252
Other liabilities		67,185		50,664
Total liabilities		3,760,986		2,755,569

Commitments and contingencies		–		–


Shareholders’ equity
Preferred stock, $1.00 par value, 1,000,000 shares authorized; no shares
issued and outstanding at March 31, 2025 and June 30, 2024		–		–
Voting common stock, $1.00 par value, 25,000,000 shares authorized;
8,525,362 and 8,127,690 shares issued and outstanding at
March 31, 2025 and June 30, 2024, respectively		8,525		8,128
Non-voting common stock, $1.00 par value, 3,000,000 shares authorized;
No shares issued and outstanding at March 31, 2025 and June 30, 2024		–		–
Additional paid-in capital		97,078		64,762
Retained earnings		361,901		303,927
Accumulated other comprehensive income (loss)		12		(183	)
Total shareholders’ equity		467,516		376,634
Total liabilities and shareholders’ equity	$	4,228,502	$	3,132,203


NORTHEAST BANK
STATEMENTS OF INCOME
(Unaudited)
(Dollars in thousands, except share and per share data)
	Three Months Ended March 31,						Nine Months Ended March 31,
	2025			2024			2025		2024
Interest and dividend income:
Interest and fees on loans		$	76,478	$	60,715		$	222,361	$	180,139
Interest on available-for-sale securities			352		596			1,383		1,639
Other interest and dividend income			3,996		3,179			12,104		9,541
Total interest and dividend income			80,826		64,490			235,848		191,319

Interest expense:
Deposits			30,593		23,340			89,959		63,772
Federal Home Loan Bank advances			4,057		4,401			11,754		16,247
Obligation under capital lease agreements			225		237			691		664
Total interest expense			34,875		27,978			102,404		80,683
Net interest and dividend income before provision for credit losses			45,951		36,512			133,444		110,636
Provision for credit losses			2,908		596			5,275		1,221
Net interest and dividend income after provision for credit losses			43,043		35,916			128,169		109,415

Noninterest income:
Fees for other services to customers			362		320			1,197		1,218
Gain on sales of SBA loans			6,014		1,015			14,915		1,837
Net unrealized gain (loss) on equity securities			79		(55	)		106		17
Loss on real estate owned, other repossessed collateral and premises and equipment, net			–		–			–		(9	)
Bank-owned life insurance income			124		116			372		348
Correspondent fee income			16		40			69		183
Other noninterest income			24		106			28		194
Total noninterest income			6,619		1,542			16,687		3,788

Noninterest expense:
Salaries and employee benefits			12,477		10,784			34,947		30,409
Occupancy and equipment expense			1,275		1,072			3,456		3,277
Professional fees			669		503			1,985		1,784
Data processing fees			1,496		1,376			4,605		3,823
Marketing expense			89		256			318		738
Loan acquisition and collection expense			2,270		813			5,626		2,402
FDIC insurance expense			468		273			1,756		917
Other noninterest expense			1,399		1,352			4,203		4,138
Total noninterest expense			20,143		16,429			56,896		47,488
Income before income tax expense			29,519		21,029			87,960		65,715
Income tax expense			10,838		7,164			29,734		22,624
Net income		$	18,681	$	13,865		$	58,226	$	43,091


Weighted-average shares outstanding:
Basic			8,216,746		7,509,320			8,047,775		7,510,065
Diluted			8,394,964		7,595,124			8,232,435		7,602,844

Earnings per common share:
Basic		$	2.27	$	1.85		$	7.24	$	5.74
Diluted			2.23		1.83			7.07		5.67

Cash dividends declared per common share		$	0.01	$	0.01		$	0.03	$	0.03


NORTHEAST BANK
AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS
(Unaudited)
(Dollars in thousands)
	Three Months Ended March 31,
	2025						2024
			Interest		Average				Interest		Average
	Average		Income/		Yield/		Average		Income/		Yield/
	Balance		Expense		Rate		Balance		Expense		Rate
Assets:
Interest-earning assets:
Investment securities	$	32,963	$	352	4.33	%	$	60,211	$	596	3.98	%
Loans (1) (2) (3)		3,650,066		76,478	8.50	%		2,649,383		60,715	9.22	%
Federal Home Loan Bank stock		16,657		301	7.33	%		17,636		449	10.24	%
Short-term investments (4)		336,877		3,695	4.45	%		204,869		2,730	5.36	%
Total interest-earning assets		4,036,563		80,826	8.12	%		2,932,099		64,490	8.85	%
Cash and due from banks		2,332						2,446
Other non-interest earning assets		39,847						50,227
Total assets	$	4,078,742					$	2,984,772

Liabilities & Shareholders’ Equity:
Interest-bearing liabilities:
NOW accounts	$	566,932	$	5,190	3.71	%	$	524,301	$	5,767	4.42	%
Money market accounts		116,647		754	2.62	%		190,379		1,619	3.42	%
Savings accounts		198,094		1,365	2.79	%		140,737		1,126	3.22	%
Time deposits		2,129,320		23,284	4.43	%		1,185,558		14,828	5.03	%
Total interest-bearing deposits		3,010,993		30,593	4.12	%		2,040,975		23,340	4.60	%
Federal Home Loan Bank advances		372,029		4,057	4.42	%		396,130		4,401	4.47	%
Lease liability		19,340		225	4.72	%		20,981		237	4.54	%
Total interest-bearing liabilities		3,402,362		34,875	4.16	%		2,458,086		27,978	4.58	%

Non-interest bearing liabilities:
Demand deposits and escrow accounts		183,348						163,042
Other liabilities		33,025						24,571
Total liabilities		3,618,735						2,645,699
Shareholders’ equity		460,007						339,073
Total liabilities and shareholders’ equity	$	4,078,742					$	2,984,772

Net interest income			$	45,951					$	36,512

Interest rate spread					3.96	%					4.27	%
Net interest margin (5)					4.62	%					5.01	%

Cost of funds (6)					3.94	%					4.29	%

(1) Interest income and yield are stated on a fully tax-equivalent basis using the statutory tax rate.
(2) Includes loans held for sale.
(3) Nonaccrual loans are included in the computation of average, but unpaid interest has not been included for purposes of determining interest income.
(4) Short-term investments include FHLB overnight deposits and other interest-bearing deposits.
(5) Net interest margin is calculated as net interest income divided by total interest-earning assets.
(6) Cost of funds is calculated as total interest expense divided by total interest-bearing liabilities plus demand deposits and escrow accounts.


NORTHEAST BANK
AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS
(Unaudited)
(Dollars in thousands)
	Nine Months Ended March 31,
	2025						2024
			Interest		Average				Interest		Average
	Average		Income/		Yield/		Average		Income/		Yield/
	Balance		Expense		Rate		Balance		Expense		Rate
Assets:
Interest-earning assets:
Investment securities	$	42,865	$	1,383	4.30	%	$	60,060	$	1,639	3.63	%
Loans (1) (2) (3)		3,348,535		222,361	8.85	%		2,565,402		180,139	9.35	%
Federal Home Loan Bank stock		16,190		977	8.04	%		20,415		1,331	8.68	%
Short-term investments (4)		302,262		11,127	4.90	%		204,252		8,210	5.35	%
Total interest-earning assets		3,709,852		235,848	8.47	%		2,850,129		191,319	8.93	%
Cash and due from banks		2,219						2,482
Other non-interest earning assets		55,078						58,609
Total assets	$	3,767,149					$	2,911,220

Liabilities & Shareholders’ Equity:
Interest-bearing liabilities:
NOW accounts	$	570,906	$	17,014	3.97	%	$	507,594	$	16,548	4.34	%
Money market accounts		131,481		2,972	3.01	%		226,072		5,760	3.39	%
Savings accounts		188,053		4,575	3.24	%		118,044		2,603	2.93	%
Time deposits		1,864,771		65,398	4.67	%		1,061,399		38,861	4.87	%
Total interest-bearing deposits		2,755,211		89,959	4.35	%		1,913,109		63,772	4.44	%
Federal Home Loan Bank advances		357,020		11,754	4.39	%		463,065		16,247	4.67	%
Lease liability		19,655		691	4.68	%		21,373		664	4.13	%
Total interest-bearing liabilities		3,131,886		102,404	4.36	%		2,397,547		80,683	4.48	%

Non-interest bearing liabilities:
Demand deposits and escrow accounts		182,877						166,955
Other liabilities		29,877						24,388
Total liabilities		3,344,640						2,588,890
Shareholders’ equity		422,509						322,330
Total liabilities and shareholders’ equity	$	3,767,149					$	2,911,220

Net interest income			$	133,444					$	110,636

Interest rate spread					4.11	%					4.45	%
Net interest margin (5)					4.79	%					5.17	%

Cost of funds (6)					4.12	%					4.19	%

(1) Interest income and yield are stated on a fully tax-equivalent basis using the statutory tax rate.
(2) Includes loans held for sale.
(3) Nonaccrual loans are included in the computation of average, but unpaid interest has not been included for purposes of determining interest income.
(4) Short-term investments include FHLB overnight deposits and other interest-bearing deposits.
(5) Net interest margin is calculated as net interest income divided by total interest-earning assets.
(6) Cost of funds is calculated as total interest expense divided by total interest-bearing liabilities plus demand deposits and escrow accounts.


NORTHEAST BANK
SELECTED FINANCIAL HIGHLIGHTS AND OTHER DATA
(Unaudited)
(Dollars in thousands, except share and per share data)
	Three Months Ended
	March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024
Net interest income	$	45,951	$	48,490	$	39,000	$	37,935	$	36,512
Provision for credit losses		2,908		1,944		422		547		596
Noninterest income		6,619		5,949		4,119		2,092		1,542
Noninterest expense		20,143		19,066		17,685		17,079		16,429
Net income		18,681		22,440		17,106		15,140		13,865

Weighted-average common shares outstanding:
Basic		8,216,746		8,044,345		7,886,148		7,765,868		7,509,320
Diluted		8,394,964		8,197,568		8,108,688		7,910,692		7,595,124
Earnings per common share:
Basic	$	2.27	$	2.79	$	2.17	$	1.95	$	1.85
Diluted		2.23		2.74		2.11		1.91		1.83

Dividends declared per common share	$	0.01	$	0.01	$	0.01	$	0.01	$	0.01

Return on average assets		1.86%		2.24%		2.09%		1.99%		1.87%
Return on average equity		16.47%		21.14%		17.53%		16.56%		16.45%
Net interest rate spread (1)		3.96%		4.21%		4.18%		4.41%		4.27%
Net interest margin (2)		4.62%		4.88%		4.90%		5.13%		5.01%
Efficiency ratio (non-GAAP) (3)		38.32%		35.02%		41.01%		42.67%		43.17%
Noninterest expense to average total assets		2.00%		1.90%		2.16%		2.24%		2.21%
Average interest-earning assets to average interest-bearing liabilities		118.64%		118.24%		118.48%		118.78%		119.28%

	As of:
	March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024
Nonperforming loans:
Originated portfolio:
Residential real estate	$	2,407	$	2,446	$	3,976	$	2,502	$	2,573
Commercial real estate		3,197		3,662		4,682		1,407		2,075
Commercial and industrial		6,945		6,696		6,684		6,520		6,928
Consumer		3		5		–		–		–
Total originated portfolio		12,552		12,809		15,342		10,429		11,576
Total purchased portfolio		19,680		17,257		21,830		17,832		16,370
Total nonperforming loans		32,232		30,066		37,172		28,261		27,946
Real estate owned and other repossessed collateral, net		1,200		1,200		–		–		–
Total nonperforming assets	$	33,432	$	31,266	$	37,172	$	28,261	$	27,946

Past due loans to total loans		0.91%		0.85%		0.89%		0.95%		1.13%
Nonperforming loans to total loans		0.86%		0.84%		1.06%		1.02%		1.05%
Nonperforming assets to total assets		0.79%		0.77%		0.94%		0.90%		0.93%
Allowance for credit losses to total loans		1.23%		1.25%		1.25%		0.97%		0.98%
Allowance for credit losses to nonperforming loans		142.79%		148.92%		117.40%		94.51%		92.83%
Net charge-offs (recoveries)	$	2,082	$	869	$	1,604	$	1,347	$	2,225
Commercial real estate loans to total capital (4)		521.47%		542.12%		604.38%		482.13%		509.08%
Net loans to deposits		112.10%		112.52%		110.70%		116.88%		118.15%
Purchased loans to total loans		65.33%		66.63%		69.11%		61.88%		60.99%
Equity to total assets		11.06%		10.88%		9.96%		12.02%		11.73%
Common equity tier 1 capital ratio		12.72%		12.66%		11.45%		13.84%		13.24%
Total risk-based capital ratio		13.97%		13.91%		12.70%		14.82%		14.22%
Tier 1 leverage capital ratio		11.45%		11.16%		12.06%		12.30%		11.79%

Total shareholders’ equity	$	467,516	$	444,101	$	392,557	$	376,634	$	351,913
Less: Preferred stock		–		–		–		–		–
Common shareholders’ equity		467,516		444,101		392,557		376,634		351,913
Less: Intangible assets (5)		–		–		–		–		–
Tangible common shareholders’ equity (non-GAAP)	$	467,516	$	444,101	$	392,557	$	376,634	$	351,913

Common shares outstanding		8,525,362		8,492,856		8,212,026		8,127,690		7,977,690
Book value per common share	$	54.84	$	52.29	$	47.80	$	46.34	$	44.11
Tangible book value per share (non-GAAP) (6)		54.84		52.29		47.80		46.34		44.11

(1) The net interest rate spread represents the difference between the weighted-average yield on interest-earning assets and the weighted-average cost of interest-bearing liabilities for the period.
(2) The net interest margin represents net interest income as a percent of average interest-earning assets for the period.
(3) The efficiency ratio represents noninterest expense divided by the sum of net interest income (before the credit loss provision) plus noninterest income.
(4) For purposes of calculating this ratio, commercial real estate includes all non-owner occupied commercial real estate loans defined as such by regulatory guidance, including all land development and construction loans.
(5) Includes the loan servicing rights asset.
(6) Tangible book value per share represents total shareholders’ equity less the sum of preferred stock and intangible assets divided by common shares outstanding.

For More Information:
Richard Cohen, Chief Financial Officer
Northeast Bank, 27 Pearl Street, Portland, Maine 04101
207.786.3245 ext. 3249
www.northeastbank.com

The MIL Network –

April 30, 2025

MIL-OSI: NMI Holdings, Inc. Reports Record First Quarter 2025 Financial Results

Source: GlobeNewswire (MIL-OSI)

EMERYVILLE, Calif., April 29, 2025 (GLOBE NEWSWIRE) — NMI Holdings, Inc. (Nasdaq: NMIH) today reported net income of $102.6 million, or $1.28 per diluted share, for the first quarter ended March 31, 2025, compared to $86.2 million, or $1.07 per diluted share, for the fourth quarter ended December 31, 2024 and $89.0 million, or $1.08 per diluted share, for the first quarter ended March 31, 2024. Adjusted net income for the quarter was $102.5 million, or $1.28 per diluted share, compared to $86.1 million, or $1.07 per diluted share, for the fourth quarter ended December 31, 2024 and $89.0 million, or $1.08 per diluted share, for the first quarter ended March 31, 2024.

Adam Pollitzer, President and Chief Executive Officer of National MI, said, “In the first quarter, we again delivered standout operating performance, continued growth in our high-quality insured portfolio and record financial results. We have a strong customer franchise, a talented team driving us forward every day, an exceptionally high-quality book covered by a comprehensive set of risk transfer solutions, and a robust balance sheet supported by the significant earnings power of our platform. We continue to manage our business with discipline and a focus on through-the-cycle performance, and looking forward, we’re well positioned to continue to serve our customers and their borrowers, support our talented team, and deliver sustained performance and long-term value for our shareholders.”

Selected first quarter 2025 highlights include:

Primary insurance-in-force at quarter end was $211.3 billion, compared to $210.2 billion at the end of the fourth quarter and $199.4 billion at the end of the first quarter of 2024.
Net premiums earned were $149.4 million, compared to $143.5 million in the fourth quarter and $136.7 million in the first quarter of 2024.
Total revenue was $173.2 million, compared to $166.5 million in the fourth quarter and $156.3 million in the first quarter of 2024.
Insurance claims and claim expenses were $4.5 million, compared to $17.3 million in the fourth quarter and $3.7 million in the first quarter of 2024. Loss ratio was 3.0%, compared to 12.0% in the fourth quarter and 2.7% in the first quarter of 2024.
Underwriting and operating expenses were $30.2 million, compared to $31.1 million in the fourth quarter and $29.8 million in the first quarter of 2024. Expense ratio was 20.2%, compared to 21.7% in the fourth quarter and 21.8% in the first quarter of 2024.
Net income was $102.6 million, compared to $86.2 million in the fourth quarter and $89.0 million in the first quarter of 2024. Diluted EPS was $1.28, compared to $1.07 in the fourth quarter and $1.08 in the first quarter of 2024.
Shareholders’ equity was $2.3 billion at quarter end and book value per share was $29.65. Book value per share excluding the impact of net unrealized gains and losses in the investment portfolio was $30.85, up 4% compared to $29.80 in the fourth quarter and 17% compared to $26.42 in the first quarter of 2024.
Annualized return on equity for the quarter was 18.1%, compared to 15.6% in the fourth quarter and 18.2% in the first quarter of 2024.
At quarter-end, total PMIERs available assets were $3.2 billion and net risk-based required assets were $1.9 billion.

	*Quarter Ended*			*Quarter Ended*			*Quarter Ended*			*Change*⁽¹⁾		*Change*⁽¹⁾
	*3/31/2025*			*12/31/2024*			*3/31/2024*			*Q/Q*		*Y/Y*
INSURANCE METRICS ($billions)
Primary Insurance-in-Force	$	211.3		$	210.2		$	199.4		1	%	6	%
New Insurance Written – NIW		9.2			11.9			9.4		(23)	%	(2)%

FINANCIAL HIGHLIGHTS (Unaudited, $millions, except per share amounts)
Net Premiums Earned	$	149.4		$	143.5		$	136.7		4	%	9	%
Net Investment Income		23.7			22.7			19.4		4	%	22	%
Insurance Claims and Claim Expenses		4.5			17.3			3.7		(74)	%	21	%
Underwriting and Operating Expenses		30.2			31.1			29.8		(3)	%	1	%
Net Income		102.6			86.2			89.0		19	%	15	%
Diluted EPS	$	1.28		$	1.07		$	1.08		20	%	18	%
Book Value per Share (excluding net unrealized gains and losses)⁽²⁾	$	30.85		$	29.80		$	26.42		4	%	17	%
Loss Ratio		3.0	%		12.0	%		2.7	%
Expense Ratio		20.2	%		21.7	%		21.8	%

(1) Percentages may not be replicated based on the rounded figures presented in the table. (2) Book value per share (excluding net unrealized gains and losses) is defined as total shareholders’ equity, excluding the after-tax effects of unrealized gains and losses on our investment portfolio, divided by shares outstanding.

Conference Call and Webcast Details

The company will hold a conference call, which will be webcast live today, April 29, 2025, at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time. The webcast will be available on the company’s website, www.nationalmi.com, in the “Investor Relations” section. The conference call can also be accessed by dialing (844) 481-2708 in the U.S., or (412) 317-0664 internationally, by referencing NMI Holdings, Inc.

About NMI Holdings, Inc.

NMI Holdings, Inc. (NASDAQ: NMIH), is the parent company of National Mortgage Insurance Corporation (National MI), a U.S.-based, private mortgage insurance company enabling low down payment borrowers to realize home ownership while protecting lenders and investors against losses related to a borrower’s default. To learn more, please visit www.nationalmi.com.

Cautionary Note Regarding Forward-Looking Statements

Certain statements contained in this press release or any other written or oral statements made by or on behalf of the Company in connection therewith may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the U.S. Private Securities Litigation Reform Act of 1995 (the “PSLRA”). The PSLRA provides a “safe harbor” for any forward-looking statements. All statements other than statements of historical fact included in or incorporated by reference in this release are forward-looking statements, including any statements about our expectations, outlook, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance. These statements are often, but not always, made through the use of words or phrases such as “anticipate,” “believe,” “can,” “could,” “may,” “predict,” “assume,” “potential,” “should,” “will,” “estimate,” “perceive,” “plan,” “project,” “continuing,” “ongoing,” “expect,” “intend” and similar words or phrases. All forward-looking statements are only predictions and involve estimates, known and unknown risks, assumptions and uncertainties that may turn out to be inaccurate and could cause actual results to differ materially from those expressed in them. Many risks and uncertainties are inherent in our industry and markets. Others are more specific to our business and operations. Important factors that could cause actual events or results to differ materially from those indicated in such statements include, but are not limited to: changes in general economic, market and political conditions and policies (including changes in interest rates and inflation) and investment results or other conditions that affect the U.S. housing market or the U.S. markets for home mortgages, mortgage insurance, reinsurance and credit risk transfer markets, including the risk related to geopolitical instability, inflation, an economic downturn (including any decline in home prices) or recession, and their impacts on our business, operations and personnel; changes in the charters, business practices, policies, pricing or priorities of Fannie Mae and Freddie Mac (collectively, the GSEs), which may include decisions that have the impact of decreasing or discontinuing the use of mortgage insurance as credit enhancement generally, or with first time homebuyers or on very high loan-to-value mortgages; or changes in the direction of housing policy objectives of the Federal Housing Finance Agency (“FHFA”), such as the FHFA’s priority to increase the accessibility to and affordability of homeownership for low-and-moderate income borrowers and underrepresented communities; our ability to remain an eligible mortgage insurer under the private mortgage insurer eligibility requirements (“PMIERs”) and other requirements imposed by the GSEs, which they may change at any time; retention of our existing certificates of authority in each state and the District of Columbia (“D.C.”) and our ability to remain a mortgage insurer in good standing in each state and D.C.; our future profitability, liquidity and capital resources; actions of existing competitors, including other private mortgage insurers and government mortgage insurers such as the Federal Housing Administration, the U.S. Department of Agriculture’s Rural Housing Service and the U.S. Department of Veterans Affairs, and potential market entry by new competitors or consolidation of existing competitors; adoption of new or changes to existing laws, rules and regulations that impact our business or financial condition directly or the mortgage insurance industry generally or their enforcement and implementation by regulators, including the implementation of the final rules defining and/or concerning “Qualified Mortgage” and “Qualified Residential Mortgage”; U.S. federal tax reform and other potential changes in tax law and their impact on us and our operations; legislative or regulatory changes to the GSEs’ role in the secondary mortgage market or other changes that could affect the residential mortgage industry generally or mortgage insurance industry in particular; potential legal and regulatory claims, investigations, actions, audits or inquiries that could result in adverse judgements, settlements, fines or other reliefs that could require significant expenditures or have other negative effects on our business; our ability to successfully execute and implement our capital plans, including our ability to access the equity, credit and reinsurance markets and to enter into, and receive approval of, reinsurance arrangements on terms and conditions that are acceptable to us, the GSEs and our regulators; lenders, the GSEs, or other market participants seeking alternatives to private mortgage insurance; our ability to implement our business strategy, including our ability to write mortgage insurance on high quality low down payment residential mortgage loans, implement successfully and on a timely basis, complex infrastructure, systems, procedures, and internal controls to support our business and regulatory and reporting requirements of the insurance industry; our ability to attract and retain a diverse customer base, including the largest mortgage originators; failure of risk management or pricing or investment strategies; decrease in the length of time our insurance policies are in force; emergence of unexpected claim and coverage issues, including claims exceeding our reserves or amounts we had expected to experience; potential adverse impacts arising from natural disasters including, with respect to affected areas, a decline in new business, adverse effects on home prices, and an increase in notices of default on insured mortgages; climate risk and efforts to manage or regulate climate risk by government agencies could affect our business and operations; potential adverse impacts arising from the occurrence of any man-made disasters or public health emergencies, including pandemics; the inability of our counter-parties, including third party reinsurers, to meet their obligations to us; failure to maintain, improve and continue to develop necessary information technology systems or the failure of technology providers to perform; effectiveness and security of our information technology systems and digital products and services, including the risks these systems, products or services may fail to operate as expected or planned, or expose us to cybersecurity or third-party risks (including the exposure of our confidential customer and other information); and ability to recruit, train and retain key personnel. These risks and uncertainties also include, but are not limited to, those set forth under the heading “Risk Factors” detailed in Item 1A of Part I of our Annual Report on Form 10-K for the year ended December 31, 2024, as subsequently updated through other reports we file with the SEC. All subsequent written and oral forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. We caution you not to place undue reliance on any forward-looking statement, which speaks only as of the date on which it is made, and we undertake no obligation to publicly update or revise any forward-looking statement to reflect new information, future events or circumstances that occur after the date on which the statement is made or to reflect the occurrence of unanticipated events except as required by law.

Use of Non-GAAP Financial Measures

We believe the use of the non-GAAP measures of adjusted income before tax, adjusted net income, adjusted diluted EPS, adjusted return-on-equity, adjusted expense ratio, adjusted combined ratio and book value per share (excluding net unrealized gains and losses) enhances the comparability of our fundamental financial performance between periods, and provides relevant information to investors. These non-GAAP financial measures align with the way the company’s business performance is evaluated by management. These measures are not prepared in accordance with GAAP and should not be viewed as alternatives to GAAP measures of performance. These measures have been presented to increase transparency and enhance the comparability of our fundamental operating trends across periods. Other companies may calculate these measures differently; their measures may not be comparable to those we calculate and present.

Adjusted income before tax is defined as GAAP income before tax, excluding the pre-tax effects of net realized gains or losses from our investment portfolio, periodic costs incurred in connection with capital markets transactions, and other infrequent, unusual or non-operating items in the periods in which such items are incurred.

Adjusted net income is defined as GAAP net income, excluding the after-tax effects of net realized gains or losses from our investment portfolio, periodic costs incurred in connection with capital markets transactions, and other infrequent, unusual or non-operating items in the periods in which such items are incurred. Adjustments to components of pre-tax income are tax effected using the applicable federal statutory tax rate for the respective periods.

Adjusted diluted EPS is defined as adjusted net income divided by adjusted weighted average diluted shares outstanding. Adjusted weighted average diluted shares outstanding is defined as weighted average diluted shares outstanding, adjusted for changes in the dilutive effect of non-vested shares that would otherwise have occurred had GAAP net income been calculated in accordance with adjusted net income. There will be no adjustment to weighted average diluted shares outstanding in the periods that non-vested shares are anti-dilutive under GAAP.

Adjusted return on equity is calculated by dividing adjusted net income on an annualized basis by the average shareholders’ equity for the period.

Adjusted expense ratio is defined as GAAP underwriting and operating expenses, excluding the pre-tax effects of periodic costs incurred in connection with capital markets transactions, divided by net premiums earned.

Adjusted combined ratio is defined as the total of GAAP underwriting and operating expenses, excluding the pre-tax effects of periodic costs incurred in connection with capital markets transactions and insurance claims and claims expenses, divided by net premiums earned.

Book value per share (excluding net unrealized gains and losses) is defined as total shareholders’ equity, excluding the after-tax effects of unrealized gains and losses on investments, divided by shares outstanding.

Although adjusted income before tax, adjusted net income, adjusted diluted EPS, adjusted return-on-equity, adjusted expense ratio, adjusted combined ratio and book value per share (excluding net unrealized gains and losses) exclude certain items that have occurred in the past and are expected to occur in the future, the excluded items: (1) are not viewed as part of the operating performance of our primary activities; or (2) are impacted by market, economic or regulatory factors and are not necessarily indicative of operating trends, or both. These adjustments, and the reasons for their treatment, are described below.

(1) Net realized investment gains and losses. The recognition of net realized investment gains or losses can vary significantly across periods as the timing is highly discretionary and is influenced by factors such as market opportunities, tax and capital profile, and overall market cycles that do not reflect our current period operating results.

(2) Capital markets transaction costs. Capital markets transaction costs result from activities that are undertaken to improve our debt profile or enhance our capital position through activities such as debt refinancing and capital markets reinsurance transactions that may vary in their size and timing due to factors such as market opportunities, tax and capital profile, and overall market cycles.

(3) Other infrequent, unusual or non-operating items. Items that are the result of unforeseen or uncommon events, and are not expected to recur with frequency in the future. Identification and exclusion of these items provides clarity about the impact special or rare occurrences may have on our current financial performance. Past adjustments under this category include infrequent, unusual or non-operating adjustments related to severance, restricted stock modification and other expenses incurred in connection with the CEO transition announced in September 2021 and the effects of the release of the valuation allowance recorded against our net federal and certain state net deferred tax assets in 2016 and the re-measurement of our net deferred tax assets in connection with tax reform in 2017. We believe such items are infrequent or non-recurring in nature, and are not indicative of the performance of, or ongoing trends in, our primary operating activities or business.

(4) Net unrealized gains and losses on investments. The recognition of net unrealized gains or losses on investment can vary significantly across periods and is influenced by factors such as interest rate movement, overall market and economic conditions, and tax and capital profiles. These valuation adjustments may not necessarily result in economic gains or losses and not reflective of ongoing operations.

Investor Contact
Gregory Epps
Senior Manager, Investor Relations and Treasury
Investor.relations@nationalmi.com

Consolidated statements of operations and comprehensive income (unaudited)	For the three months ended March 31,
		2025			2024
	(In Thousands, except for per share data)
Revenues
Net premiums earned	$	149,366		$	136,657
Net investment income		23,686			19,436
Net realized investment gains		24			—
Other revenues		170			160
Total revenues		173,246			156,253
Expenses
Insurance claims and claim expenses		4,478			3,694
Underwriting and operating expenses		30,175			29,815
Service expenses		116			137
Interest expense		7,106			8,040
Total expenses		41,875			41,686

Income before income taxes		131,371			114,567
Income tax expense		28,812			25,517
Net income	$	102,559		$	89,050

Earnings per share
Basic	$	1.31		$	1.10
Diluted	$	1.28		$	1.08

Weighted average common shares outstanding
Basic		78,407			80,726
Diluted		79,858			82,099

Loss ratio⁽¹⁾		3.0	%		2.7	%
Expense ratio⁽²⁾		20.2	%		21.8	%
Combined ratio		23.2	%		24.5	%

Net income	$	102,559		$	89,050
Other comprehensive income (loss), net of tax:
Unrealized gains (losses) in accumulated other comprehensive loss, net of tax expense (benefit) of $8,186 and $(2,729) for the quarters ended March 31, 2025 and 2024, respectively		30,795			(9,905	)
Reclassification adjustment for realized gains included in net income, net of tax expense of $5 for the quarter ended March 31, 2025		(19	)		—
Other comprehensive income (loss), net of tax		30,776			(9,905	)
Comprehensive income	$	133,335		$	79,145

(1) Loss ratio is calculated by dividing insurance claims and claim expenses by net premiums earned. (2) Expense ratio is calculated by dividing underwriting and operating expenses by net premiums earned.

Consolidated balance sheets (unaudited)	March 31, 2025			December 31, 2024
Assets	(In Thousands, except for share data)
Fixed maturities, available-for-sale, at fair value (amortized cost of $2,923,088 and $2,876,343 as of March 31, 2025 and December 31, 2024, respectively)	$	2,809,247		$	2,723,541
Cash and cash equivalents (including restricted cash of $90 as of December 31, 2024)		74,209			54,308
Premiums receivable, net		84,153			82,804
Accrued investment income		23,641			22,386
Deferred policy acquisition costs, net		64,013			64,327
Software and equipment, net		24,960			25,681
Intangible assets and goodwill		3,634			3,634
Reinsurance recoverable		31,379			32,260
Prepaid federal income taxes		322,175			322,175
Other assets		18,785			18,857
Total assets	$	3,456,196		$	3,349,973

Liabilities
Debt	$	415,606		$	415,146
Unearned premiums		59,176			65,217
Accounts payable and accrued expenses		78,937			103,164
Reserve for insurance claims and claim expenses		151,847			152,071
Deferred tax liability, net		418,916			386,192
Other liabilities		10,143			10,751
Total liabilities		1,134,625			1,132,541

Shareholders’ equity
Common stock – $0.01 par value; 88,321,226 shares issued and 78,301,469 shares outstanding as of March 31, 2025 and 87,902,626 shares issued and 78,600,726 shares outstanding as of December 31, 2024 (250,000,000 shares authorized)		883			879
Additional paid-in capital		1,001,545			1,004,692
Treasury Stock, at cost: 10,019,757 and 9,301,900 common shares as of March 31, 2025 and December 31, 2024, respectively		(272,647	)		(246,594	)
Accumulated other comprehensive loss, net of tax		(94,028	)		(124,804	)
Retained earnings		1,685,818			1,583,259
Total shareholders’ equity		2,321,571			2,217,432
Total liabilities and shareholders’ equity	$	3,456,196		$	3,349,973

Non-GAAP Financial Measure Reconciliations (unaudited)
	As of and for the three months ended
	3/31/2025			12/31/2024			3/31/2024
As Reported	(In Thousands, except for per share data)
Revenues
Net premiums earned	$	149,366		$	143,520		$	136,657
Net investment income		23,686			22,718			19,436
Net realized investment gains		24			33			—
Other revenues		170			233			160
Total revenues		173,246			166,504			156,253
Expenses
Insurance claims and claim expenses		4,478			17,253			3,694
Underwriting and operating expenses		30,175			31,092			29,815
Service expenses		116			184			137
Interest expense		7,106			7,102			8,040
Total expenses		41,875			55,631			41,686

Income before income taxes		131,371			110,873			114,567
Income tax expense		28,812			24,706			25,517
Net income	$	102,559		$	86,167		$	89,050

Adjustments:
Net realized investment gains		(24	)		(33	)		—
Adjusted income before taxes		131,347			110,840			114,567

Income tax benefit on adjustments⁽¹⁾		5			7			—
Adjusted net income	$	102,540		$	86,141		$	89,050

Weighted average diluted shares outstanding		79,858			80,623			82,099

Diluted EPS	$	1.28		$	1.07		$	1.08
Adjusted diluted EPS	$	1.28		$	1.07		$	1.08

Return on equity		18.1	%		15.6	%		18.2	%
Adjusted return on equity		18.1	%		15.6	%		18.2	%

Expense ratio⁽²⁾		20.2	%		21.7	%		21.8	%
Adjusted expense ratio⁽³⁾		20.2	%		21.7	%		21.8	%

Combined ratio⁽⁴⁾		23.2	%		33.7	%		24.5	%
Adjusted combined ratio⁽⁵⁾		23.2	%		33.7	%		24.5	%

Book value per share⁽⁶⁾	$	29.65		$	28.21		$	24.56
Book value per share (excluding net unrealized gains and losses)⁽⁷⁾	$	30.85		$	29.80		$	26.42

(1) Marginal tax impact of non-GAAP adjustments is calculated based on our statutory U.S. federal corporate income tax rate of 21%, except for those items that are not eligible for an income tax deduction. (2) Expense ratio is calculated by dividing underwriting and operating expenses by net premiums earned. (3) Adjusted expense ratio is calculated by dividing adjusted underwriting and operating expense (underwriting and operating expenses excluding costs related to capital markets reinsurance transactions) by net premiums earned. (4) Combined ratio is calculated by dividing the total of underwriting and operating expenses and insurance claims and claim expenses by net premiums earned. (5) Adjusted combined ratio is calculated by dividing the total of adjusted underwriting and operating expenses (underwriting and operating expenses excluding costs related to capital market reinsurance transaction) and insurance claims and claim expenses by net premiums earned. (6) Book value per share is calculated by dividing total shareholders’ equity by shares outstanding. (7) Book value per share (excluding net unrealized gains and losses) is defined as total shareholders’ equity, excluding the after-tax effects of unrealized gains and losses on our investment portfolio, divided by shares outstanding.

Historical Quarterly Data		2025			2024
	March 31			December 31			September 30			June 30			March 31
	(In Thousands, except for per share data)
Revenues
Net premiums earned	$	149,366		$	143,520		$	143,343		$	141,168		$	136,657
Net investment income		23,686			22,718			22,474			20,688			19,436
Net realized investment gains (losses)		24			33			(10	)		—			—
Other revenues		170			233			285			266			160
Total revenues		173,246			166,504			166,092			162,122			156,253
Expenses
Insurance claims and claim expenses		4,478			17,253			10,321			276			3,694
Underwriting and operating expenses		30,175			31,092			29,160			28,330			29,815
Service expenses		116			184			208			194			137
Interest expense		7,106			7,102			7,076			14,678			8,040
Total expenses		41,875			55,631			46,765			43,478			41,686

Income before income taxes		131,371			110,873			119,327			118,644			114,567
Income tax expense		28,812			24,706			26,517			26,565			25,517
Net income	$	102,559		$	86,167		$	92,810		$	92,079		$	89,050

Earnings per share
Basic	$	1.31		$	1.09		$	1.17		$	1.15		$	1.10
Diluted	$	1.28		$	1.07		$	1.15		$	1.13		$	1.08

Weighted average common shares outstanding
Basic		78,407			78,997			79,549			80,117			80,726
Diluted		79,858			80,623			81,045			81,300			82,099

Other data
Loss ratio⁽¹⁾		3.0	%		12.0	%		7.2	%		0.2	%		2.7	%
Expense ratio⁽²⁾		20.2	%		21.7	%		20.3	%		20.1	%		21.8	%
Combined ratio		23.2	%		33.7	%		27.5	%		20.3	%		24.5	%

(1) Loss ratio is calculated by dividing insurance claims and claim expenses by net premiums earned. (2) Expense ratio is calculated by dividing underwriting and operating expenses by net premiums earned.

Portfolio Statistics

The table below highlights trends in our primary portfolio as of the date and for the periods indicated.

Primary portfolio trends	As of and for the three months ended
	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
	($ Values In Millions, except as noted below)
New insurance written (NIW)	$	9,221		$	11,925		$	12,218		$	12,503		$	9,398
New risk written		2,428			3,134			3,245			3,335			2,486
Insurance-in-force (IIF)⁽¹⁾		211,308			210,183			207,538			203,501			199,373
Risk-in-force (RIF)⁽¹⁾		56,515			56,113			55,253			53,956			52,610
Policies in force (count)⁽¹⁾		661,490			659,567			654,374			645,276			635,662
Average loan size($ value in thousands)⁽¹⁾	$	319		$	319		$	317		$	315		$	314
Coverage percentage⁽²⁾		26.7	%		26.7	%		26.6	%		26.5	%		26.4	%
Loans in default (count)⁽¹⁾		6,859			6,642			5,712			4,904			5,109
Default rate⁽¹⁾		1.04	%		1.01	%		0.87	%		0.76	%		0.80	%
Risk-in-force on defaulted loans⁽¹⁾	$	567		$	545		$	468		$	401		$	414
Average net premium yield⁽³⁾		0.28	%		0.27	%		0.28	%		0.28	%		0.28	%
Earnings from cancellations	$	0.6		$	0.8		$	0.8		$	1.0		$	0.6
Annual persistency⁽⁴⁾		84.3	%		84.6	%		85.5	%		85.4	%		85.8	%
Quarterly run-off⁽⁵⁾		3.9	%		4.5	%		4.0	%		4.2	%		3.6	%

(1) Reported as of the end of the period. (2) Calculated as end of period RIF divided by end of period IIF. (3) Calculated as net premiums earned, divided by average primary IIF for the period, annualized. (4) Defined as the percentage of IIF that remains on our books after a given twelve-month period. (5) Defined as the percentage of IIF that is no longer on our books after a given three-month period.

NIW, IIF and Premiums

The tables below present NIW and primary IIF, as of the dates and for the periods indicated.

NIW	For the three months ended
	March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024
	(In Millions)
Monthly	$	9,049	$	11,688	$	11,978	$	12,288	$	9,175
Single		172		237		240		215		223
Total	$	9,221	$	11,925	$	12,218	$	12,503	$	9,398

Primary IIF	As of
	March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024
	(In Millions)
Monthly	$	193,856	$	192,228	$	189,241	$	184,862	$	180,343
Single		17,452		17,955		18,297		18,639		19,030
Total	$	211,308	$	210,183	$	207,538	$	203,501	$	199,373

The following table presents the amounts related to the company’s quota-share reinsurance transactions (the 2016 QSR Transaction, 2018 QSR Transaction, 2020 QSR Transaction, 2021 QSR Transaction, 2022 QSR Transaction, 2022 Seasoned QSR Transaction, 2023 QSR Transaction, 2024 QSR Transaction, and 2025 QSR Transaction and collectively, the QSR Transactions), insurance-linked note transactions (the 2021-1 ILN Transaction, and 2021-2 ILN Transaction and collectively, the ILN Transactions), and traditional reinsurance transactions (the 2022-1 XOL Transaction, 2022-2 XOL Transaction, 2022-3 XOL Transaction, 2023-1 XOL Transaction, 2023-2 XOL Transaction, 2024 XOL Transaction, and 2025 XOL Transaction and collectively, the XOL Transactions) for the periods indicated.

	For the three months ended
	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
	(In Thousands)
The QSR Transactions
Ceded risk-in-force	$	12,888,870		$	13,024,200		$	12,968,039		$	12,815,434		$	12,669,207
Ceded premiums earned		(41,011	)		(41,596	)		(41,761	)		(41,555	)		(41,269	)
Ceded claims and claim expenses (benefits)		523			4,075			2,449			(138	)		659
Ceding commission earned		9,768			9,997			10,152			10,222			10,292
Profit commission		23,398			20,149			21,883			24,351			23,407
The ILN Transactions⁽¹⁾
Ceded premiums	$	(3,311	)	$	(4,217	)	$	(4,302	)	$	(5,858	)	$	(5,976	)
The XOL Transactions
Ceded Premiums	$	(10,168	)	$	(9,969	)	$	(9,760	)	$	(9,403	)	$	(9,223	)

(1) Effective July 25, 2024 and December 27, 2024, NMIC exercised its optional termination rights to terminate and commute its previously outstanding excess-of-loss reinsurance agreements with Oaktown Re III Ltd. and Oaktown Re V Ltd., respectively. In connection with the terminations and commutations, the insurance-linked notes issued by Oaktown Re III Ltd. and Oaktown Re V Ltd. were redeemed in full with a distribution of remaining collateral assets.

The tables below present our total NIW by FICO, loan-to-value (LTV) ratio, and purchase/refinance mix for the periods indicated.

NIW by FICO	For the three months ended
	March 31, 2025		December 31, 2024		March 31, 2024
	(In Millions)
>= 760	$	4,971	$	6,508	$	4,888
740-759		1,753		2,090		1,797
720-739		1,177		1,621		1,220
700-719		665		890		780
680-699		413		575		530
<=679		242		241		183
Total	$	9,221	$	11,925	$	9,398
Weighted average FICO		758		758		757

NIW by LTV	For the three months ended
	March 31, 2025			December 31, 2024			March 31, 2024
	(In Millions)
95.01% and above	$	1,147		$	1,510		$	1,062
90.01% to 95.00%		4,274			5,370			4,414
85.01% to 90.00%		2,751			3,740			2,931
85.00% and below		1,049			1,305			991
Total	$	9,221		$	11,925		$	9,398
Weighted average LTV		92.2	%		92.1	%		92.3	%

NIW by purchase/refinance mix	For the three months ended
	March 31, 2025		December 31, 2024		March 31, 2024
	(In Millions)
Purchase	$	8,822	$	10,799	$	9,157
Refinance		399		1,126		241
Total	$	9,221	$	11,925	$	9,398

The table below presents a summary of our primary IIF and RIF by book year as of March 31, 2025.

Primary IIF and RIF	As of March 31, 2025
	IIF		RIF
Book Year	(In Millions)
2025	$	9,152	$	2,409
2024		42,379		11,242
2023		33,286		8,789
2022		46,203		12,356
2021		48,162		13,049
2020 and before		32,126		8,670
Total	$	211,308	$	56,515

The tables below present our total primary IIF and RIF by FICO and LTV, and total primary RIF by loan type as of the dates indicated.

Primary IIF by FICO	As of
	March 31, 2025		December 31, 2024		March 31, 2024
	(In Millions)
>= 760	$	106,004	$	105,315	$	99,195
740-759		37,716		37,321		35,416
720-739		29,430		29,343		28,033
700-719		19,737		19,766		18,904
680-699		13,324		13,374		13,002
<=679		5,097		5,064		4,823
Total	$	211,308	$	210,183	$	199,373

Primary RIF by FICO	As of
	March 31, 2025		December 31, 2024		March 31, 2024
	(In Millions)
>= 760	$	28,117	$	27,883	$	25,935
740-759		10,132		10,006		9,392
720-739		7,966		7,926		7,484
700-719		5,384		5,383		5,089
680-699		3,610		3,615		3,479
<=679		1,306		1,300		1,231
Total	$	56,515	$	56,113	$	52,610

Primary IIF by LTV	As of
	March 31, 2025		December 31, 2024		March 31, 2024
	(In Millions)
95.01% and above	$	24,167	$	23,555	$	20,277
90.01% to 95.00%		104,312		103,472		97,028
85.01% to 90.00%		64,298		64,290		61,169
85.00% and below		18,531		18,866		20,899
Total	$	211,308	$	210,183	$	199,373

Primary RIF by LTV	As of
	March 31, 2025		December 31, 2024		March 31, 2024
	(In Millions)
95.01% and above	$	7,546	$	7,345	$	6,275
90.01% to 95.00%		30,804		30,563		28,663
85.01% to 90.00%		15,957		15,956		15,174
85.00% and below		2,208		2,249		2,498
Total	$	56,515	$	56,113	$	52,610

Primary RIF by Loan Type	As of
	March 31, 2025		December 31, 2024		March 31, 2024
Fixed	98	%	98	%	98	%
Adjustable rate mortgages:
Less than five years	—		—		—
Five years and longer	2		2		2
Total	100	%	100	%	100	%

The table below presents a summary of the change in total primary IIF for the dates and periods indicated.

Primary IIF	As of and for the three months ended
	March 31, 2025			December 31, 2024			March 31, 2024
	(In Millions)
IIF, beginning of period	$	210,183		$	207,538		$	197,029
NIW		9,221			11,925			9,398
Cancellations, principal repayments and other reductions		(8,096	)		(9,280	)		(7,054	)
IIF, end of period	$	211,308		$	210,183		$	199,373

Geographic Dispersion

The following table shows the distribution by state of our primary RIF as of the periods indicated.

Top 10 primary RIF by state	As of
	March 31, 2025		December 31, 2024		March 31, 2024
California	10.1	%	10.1	%	10.2	%
Texas	8.5		8.6		8.8
Florida	7.3		7.3		7.5
Georgia	4.1		4.1		4.2
Washington	3.9		3.9		3.9
Illinois	3.8		3.8		3.9
Virginia	3.7		3.7		3.9
Pennsylvania	3.4		3.4		3.4
Ohio	3.3		3.3		3.0
North Carolina	3.2		3.2		3.1
Total	51.3	%	51.4	%	51.9	%

The table below presents selected primary portfolio statistics, by book year, as of March 31, 2025.

	As of March 31, 2025
Book Year	Original Insurance Written		Remaining Insurance in Force		% Remaining of Original Insurance		Policies Ever in Force	Number of Policies in Force	Number of Loans in Default	# of Claims Paid	Incurred Loss Ratio (Inception to Date)⁽¹⁾		Cumulative Default Rate⁽²⁾		Current default rate⁽³⁾
	($ Values In Millions)
2016 and prior	$	37,222	$	2,133	6	%	151,615	11,572	237	398	2.1	%	0.4	%	2.0	%
2017		21,582		1,753	8	%	85,897	10,007	263	189	1.8	%	0.5	%	2.6	%
2018		27,295		2,306	8	%	104,043	12,534	403	191	2.6	%	0.6	%	3.2	%
2019		45,141		5,923	13	%	148,423	26,358	509	99	2.1	%	0.4	%	1.9	%
2020		62,702		20,011	32	%	186,174	70,620	575	57	1.3	%	0.3	%	0.8	%
2021		85,574		48,162	56	%	257,972	160,946	1,704	95	3.3	%	0.7	%	1.1	%
2022		58,734		46,203	79	%	163,281	135,610	2,014	112	16.2	%	1.3	%	1.5	%
2023		40,473		33,286	82	%	111,994	96,394	836	17	14.0	%	0.8	%	0.9	%
2024		46,044		42,379	92	%	120,747	113,636	318	—	7.9	%	0.3	%	0.3	%
2025		9,221		9,152	99	%	23,956	23,813	—	—	—	%	—	%	—	%
Total	$	433,988	$	211,308			1,354,102	661,490	6,859	1,158

(1) Calculated as total claims incurred (paid and reserved) divided by cumulative premiums earned, net of reinsurance. (2) Calculated as the sum of the number of claims paid ever to date and number of loans in default divided by policies ever in force. (3) Calculated as the number of loans in default divided by number of policies in force.

The following table provides a reconciliation of the beginning and ending reserve balances for insurance claims and claim expenses:

	For the three months ended March 31,
		2025			2024
	(In Thousands)
Beginning balance	$	152,071		$	123,974
Less reinsurance recoverables⁽¹⁾		(32,260	)		(27,514	)
Beginning balance, net of reinsurance recoverables		119,811			96,460

Add claims incurred:
Claims and claim expenses incurred:
Current year⁽²⁾		34,559			32,976
Prior years⁽³⁾		(30,081	)		(29,282	)
Total claims and claim expenses incurred		4,478			3,694

Less claims paid:
Claims and claim expenses paid:
Current year⁽²⁾		—			—
Prior years⁽³⁾		4,076			852
Reinsurance terminations⁽⁴⁾		(255	)		—
Total claims and claim expenses paid		3,821			852

Reserve at end of period, net of reinsurance recoverables		120,468			99,302
Add reinsurance recoverables⁽¹⁾		31,379			27,880
Ending balance	$	151,847		$	127,182

(1) Related to ceded losses recoverable under the QSR Transactions. (2) Related to insured loans with their most recent defaults occurring in the current year. For example, if a loan defaulted in a prior year and subsequently cured and later re-defaulted in the current year, the default would be included in the current year. Amounts are presented net of reinsurance and included $25.9 million attributed to net case reserves and $8.1 million attributed to net IBNR reserves for the three months ended March 31, 2025 and $25.9 million attributed to net case reserves and $6.6 million attributed to net IBNR reserves for the three months ended March 31, 2024. (3) Related to insured loans with defaults occurring in prior years, which have been continuously in default before the start of the current year. Amounts are presented net of reinsurance and included $21.8 million attributed to net case reserves and $8.1 million attributed to net IBNR reserves for the three months ended March 31, 2025 and $22.4 million attributed to net case reserves and $6.3 million attributed to net IBNR reserves for the three months ended March 31, 2024. (4) Represents the settlement of reinsurance recoverables in conjunction with the termination of one reinsurer under the 2016, 2018 and 2021 QSR Transactions by mutual agreement on a cut-off basis with no termination fee.

The following table provides a reconciliation of the beginning and ending count of loans in default:

	For the three months ended March 31,
	2025		2024
Beginning default inventory	6,642		5,099
Plus: new defaults	2,421		1,876
Less: cures	(2,094	)	(1,817	)
Less: claims paid	(95	)	(42	)
Less: rescission and claims denied	(15	)	(7	)
Ending default inventory	6,859		5,109

The following table provides details of our claims paid, before giving effect to claims ceded under the QSR Transactions, for the periods indicated:

	For the three months ended March 31,
		2025			2024
	($ Values In Thousands)
Number of claims paid⁽¹⁾		95			42
Total amount paid for claims	$	5,225		$	1,145
Average amount paid per claim	$	55		$	27
Severity⁽²⁾		69	%		54	%

(1) Count includes 20 and 16 claims settled without payment during the three months ended March 31, 2025 and 2024, respectively. (2) Severity represents the total amount of claims paid including claim expenses divided by the related RIF on the loan at the time the claim is perfected, and is calculated including claims settled without payment.

The following table shows our average reserve per default, before giving effect to reserves ceded under the QSR Transactions, as of the dates indicated:

	As of March 31,
Average reserve per default:		2025		2024
	(In Thousands)
Case⁽¹⁾	$	20.3	$	22.9
IBNR⁽¹⁾⁽²⁾		1.8		2.0
Total	$	22.1	$	24.9

(1) Defined as the gross reserve per insured loan in default. (2) Amount includes claims adjustment expenses.

The following table provides a comparison of the PMIERs available assets and net risk-based required asset amount as reported by NMIC as of the dates indicated:

	As of
	March 31, 2025		December 31, 2024		March 31, 2024
	(In Thousands)
Available assets	$	3,230,653	$	3,108,211	$	2,821,803
Net risk-based required assets		1,867,414		1,828,807		1,561,655

The MIL Network –

April 30, 2025

Category: Pandemic

1. Dodgy experts don’t acknowledge uncertainty

2. The dodgy experts doesn’t strive to be objective

3. Dodgy experts cherry-pick evidence

4. Dodgy experts don’t change their mind when the evidence changes

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Minister in the Cabinet Office, Georgia Gould said:

Additional Information

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Minister for Transformation, Andrew Western said:   

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