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Category: Pandemic

  • MIL-OSI United Nations: Tonga: Building infrastructure resilience in an isolated, hazardous world

    Source: UNISDR Disaster Risk Reduction

    Tonga: Building infrastructure resilience in an isolated, hazardous world

    (In collaboration with UNDRR and CDRI)

    When an underwater volcano erupted about 65 kilometres north of Tonga’s main island, Tongatapu, in January 2022, it sent ash high into the atmosphere and triggered a tsunami that struck the archipelago nation with waves as high as 15 metres. While the waves killed four people directly in Tonga, the eruption and consequent tsunami smashed into residential and non-residential buildings alike, damaged other infrastructure such as submarine cables, and contaminated water supplies with ashfall.

    Tonga

    is one of the most disaster-prone countries in the world.

    85,000 people

    in Tonga affected by the 2022 volcano eruption.

    The event also highlighted how Tonga must quickly build more resilience into its infrastructure and economy if it wants to improve the quality of life for its roughly 100,000 population.

    The country is a lower-middle income nation, constrained by its geographic isolation, small market size, and high cost of basic services. A Pacific archipelago of 172 islands, whose nearest neighbours – Fiji and Samoa – are more than 700 kilometres away, Tonga is highly dependent on climate sensitive-sectors such as agriculture, fisheries, and tourism. Its economy is sensitive to external shocks. 

    Cyclones, tsunamis, and volcanoes cause serious damage every time they hit Tonga, and yet – in recent years – the Pacific nation has experienced more extreme weather events than usual. Cyclone Gita, a category 4 tropical cyclone which hit Tonga in February 2018, was one of the most powerful storms to hit Tonga in decades, killing two, destroying at least 171 homes, and damaging more than 1,100 others. 

    This immense vulnerability to multiple natural hazards – and the dangers of cascading impacts – led Tonga to become one of four countries – together with Bhutan, Chile, and Madagascar – pioneering the Global Methodology for Infrastructure Resilience Review. Developed by the UN Office for Disaster Risk Reduction (UNDRR) and the Coalition for Disaster Resilient Infrastructure (CDRI), the methodology helps countries to identify and prioritise the strategies that will build their infrastructure resilience through a five-step approach.

    1

    Stakeholder mapping

    • Key ministries, regulators and operators in infrastructure development
    • Cross-sector coordination mechanisms

    Review of existing policies and regulations

    • Policies and regulations shaping infrastructure resilience
    • Integration of disaster risks in national plans and strategies

    Identification of vulnerabilities (Stress Testing)

    • Data collection on hazards and vulnerabilities
    • Multi-hazard resilience testing of infrastructure systems

    Principles for resilient infrastructure

    • Infrastructure resilience assessment using the UNDRR Resilience Principles
    • Identification of resilience-building interventions

    Development of an Implementation plan

    • Results validation and prioritization
    • Implementation plan with assigned responsibilities

    “The infrastructure resilience review process is already helping us to do that,” he said.

    Advancing Infrastructure Resilience in Tonga

    • The process

    • The process

      In 2021, Tonga enacted the Disaster Risk Management (DRM) 2021 Act, replacing the Emergency Management Act 2007, signaling a new ambition to manage risk instead of reacting to disaster. 

      After the 2022 volcano eruption, it also connected quickly with international partners. With World Bank support, it upgraded its ports, roads, and an airport, making them more resilient to storm surges, floods, and high winds. The Asian Development Bank has also helped with grants to help the country recover from disasters and health emergencies, including the COVID-19 pandemic.

      The infrastructure resilience assessment approach in the Global Methodology, provided Tonga with the opportunity to take a holistic look at their infrastructure and risk, identify the gaps, and then fill them.

      Stress-testing of Critical Infrastructure against Identified Hazard, Tonga

      In the first phase, a technical working group was set up with representatives from 21 departments and agencies across six ministries. Supported by this working group, the review process began with a kick-off meeting that included key stakeholders for infrastructure development, disaster risk reduction, and sectoral operations. Next, in phase two, it reviewed existing policies and regulations, assessing the extent to which they address disaster risks and support infrastructure resilience.

      In the third phase, stakeholders conducted stress tests and gap analysis on ten critical infrastructure functions against a range of hazards, including cyclones, droughts, underground water / seawater intrusion, tsunamis, volcanic eruptions, non-communicable diseases, land degradation and erosion, floods, sea level rises, and cybersecurity breaches. By identifying these vulnerabilities, interdependences, and cascading risks, the participants were able to seriously consider the economic impacts and interdependences of different hazards throughout. 

      Fourth, Tonga’s current resilient infrastructure practices were assessed against the UNDRR Principles for Resilient Infrastructure. These six principles set out the key conditions for sustainable infrastructure resilience. They support the Sendai Framework for Disaster Risk Reduction and Sustainable Development Goals, as well as the G20 Principles for Investing in Quality Infrastructure. 

      Finally, stakeholders drafted an implementation plan, consolidating the findings and providing a road map for enhancing infrastructure resilience.

      “By prioritising resilience, the country can support sustainable economic growth, adapt to climate change, and protect communities, while minimising economic and human losses.”

    • Water sector

    • Water sector

      One of the sectors examined was the water sector, including a deep dive analysis. Water is everywhere in a small island development state (SIDS) like Tonga, of course, but securing a stable supply remains difficult. Water in Tonga comes from ground water and rainwater, which are both vulnerable to impacts from climate change. 

      Rising sea-levels mean that many assets are at risk of flooding, while soil erosion is also a threat. When sea levels rise, salt water can enter some freshwater supplies, reducing the available water for drinking. 

      Funding the necessary upgrades, however, is a challenge. The Tonga Water Board (TWB) operates without subsidies, making capital investment difficult.

      Meanwhile, the lack of a centralised infrastructure database complicates the assessment and management of existing resources. Multiple institutions manage water resources across the archipelago’s 45 or so inhabited islands, doing so with varying levels of expertise. While integrated planning and coordination should be essential for efficiency, the system is fragmented. Integrated planning and management are urgently needed to ensure resilience in the water sector. Equally as importantly, there’s a need for more data and information, and for a better understanding of how to use the already available data, which does not capture all boreholes and rainwater harvesting.

      Challenges are even greater on the outer islands. Most villages lack a formalised tariff system, complicating the collection of revenue for repairs and maintenance. Composed of local residents, Village Water Committees (VWCs) play a crucial role, but they often lack financial and other supporting skills. Without structured regulations and trained personnel, infrastructure upkeep is inconsistent.

      “But at the same time, it takes four or five hours by boat to reach some of these communities,” he said. “It is not an easy job.” The support system for water infrastructure needs to be planned, designed, and monitored more effectively to become more resilient to hazards, which is an area of need for VWC.

      Finally, the water pumping stations are dependent on electricity. This means that if a cyclone damages the power lines and impacts electricity supply, then water supply would also be affected. The disaster responses are complicated by limited standard operating procedures (SOPs) as cyclones, volcanoes, and tsunamis all affect the water infrastructure in different ways. Take a look at how some of the most recent events have affected Tonga’s water infrastructure:

      Hazard-related disruptions in Tonga’s water sector

      TROPICAL CYCLONES:

      Cyclone Gita (2018) damaged water distribution systems and rainwater tanks, while other cyclones have led to extensive system failures.

      VOLCANIC ERUPTIONS AND ASHFALL:

      The 2022 eruption of Hunga Tonga-Hunga Ha’apai severely impacted water punps and contaminated rainwater tanks, leading to supply disruptions.

      DROUGHTS:

      Prolonged droughts in 2023 have affected rainwater collection systems, exacerbating water shortages.

      TSUNAMIS:

      The 2022 tsunami contamined groundwater sources in southern islands and destroyed coastal water infrastructure.

      Several resilience measures do exist. Desalination units provide emergency water, even if their maintenance or repairs sometimes fall on untrained community members, causing delays and potential safety issues. Overall, however, these are uneven and insufficient.

      Some development support has been provided, but the projects are also unevenly distributed. They tend to focus mostly on the main island, leaving outer islands underserved. 

      From the Infrastructure Resilience Review, several recommendations emerged:

      • Build Village Water Committee capacity by developing management manuals, training, and emergency water plans for climate and disaster events.  
      • Establish standard procedures for Village Water Committees to capture and share water data, linking it into a centralised system. Procure and distribute the necessary hardware, then train the VWCs in its use.
      • Set up processes to coordinate donor projects across the water sector.
      • Review the complete water sector for exposure to hazards, including its dependencies on other sectors such as transport, ICT and energy.
      • Find ways to improve the management of both rainwater and groundwater.
      • Improve water security on the outer islands by increasing water storage volumes, testing new solutions such as hydro panels and mobile desalination units. 
    • Transport

    • Transport

      The Infrastructure Resilience Review also looked at transport, given the importance and vulnerabilities of Tonga’s ports, airports, and roads. 

      On the one hand, Tonga’s geographic isolation makes it highly dependent on its ports and airports for imports of food, fuel, and spare parts. In 2000, the last available energy balance showed that 75 percent of the country’s energy depends on imported petroleum products. Over 98 percent of Tonga’s grid-supplied electricity is generated using imported diesel. 

      On the other hand, those ports and airports are highly vulnerable to disruption of the other critical infrastructure functions, including transport. The ports and airports both depend on Tonga’s roads, for example, to connect them with the rest of the country.

      Multi Hazards Disaster Risk Assessment, ARUP 2021

      However, while Tonga’s climate is already tropical, climate change is expected to bring heavier and more frequent rainfall, damaging roads in the low-lying areas. Inadequate drainage will compound this damage, disrupting transport and mobility to the ports and airports. 

      In turn, this could also disrupt Tonga’s electricity, which relies heavily on diesel imports, as well as the delivery of clean water to remote areas or even – in case of emergencies – access to evacuation centres. 

      The Roadmap for Infrastructure Resilience has multiple recommendations for improving road transport resilience, including the following: 

      • Improve data on infrastructure quality to understand better which rural and urban roads are exposed to flooding. 
      • Produce geohazard maps to enable monitoring of infrastructure resilience and vulnerability.
      • Develop mitigation measures based on assessments of the road quality.
      • Integrate climate safety factors into road design.

      Additionally, the Roadmap for Infrastructure Resilience in the Kingdom of Tonga makes specific priority recommendations for individual sectors, including the development of a national resilient critical infrastructure strategy, the establishment of a critical infrastructure working group, and the establishment of a central disaster data centre. 

      “The infrastructure resilience review reminds us that we are not passive actors, but that to a much greater extent we are masters of our own destiny,” said Sione Pulotu ‘Akau’ola, CEO for Ministry of MEIDECC.

      “In the long run, building resilience into our infrastructure will save us lives, destruction, and economic damage,” he said.

    Download the full report:
    Roadmap for Infrastructure Resilience in the Kingdom of Tonga

    MIL OSI United Nations News –

  • MIL-OSI United Kingdom: Community Payback Orders – Unpaid work or Other Activity Requirements: February 2005

    Source: Scottish Government

    An Official Statistics Publication for Scotland

    The Chief Statistician has released figures on Community Payback Orders (CPOs) unpaid work or other activity requirements today.

    The publication covers the changes in rates of progression during and after the COVID-19 pandemic, information on the number of hours imposed by the courts for this requirement and the number of unpaid work hours to be progressed.

    In 2023-24, there were 15,100 CPOs imposed by the courts, which included 1.39 million unpaid work hours imposed as part of unpaid work requirements.

    There has been an increase of 7% in the number of CPOs issued in the first 11 months of 2024-25, compared to this period in 2023-24.

    In February 2025, there was 867,300 unpaid work hours to be progressed. This is an increase of 9% from February 2024.

    An estimate of the number of unpaid work hours imposed between February 2024 to January 2025 was in the range of 1.48 to 1.54 million hours. When compared with previous time period this showed an increase of at least 7%. The increase in hours imposed is a contributing factor to the increase in unpaid work hours to be progressed.

    Background

     Full statistical publication is available on Scottish Government website.

     Official statistics are produced in accordance with the Code of Practice for Statistics.

     This information relates to only one of the 10 requirements that can be imposed for Community Payback Orders (CPOs). The unpaid work or other activity requirement (abbreviated to unpaid work) is one of the most common to be imposed. Unpaid work requirements are continuously being imposed, and, at the same time, existing requirements are being completed.  Completing unpaid work requirements takes time and, as a result, there will always be outstanding hours in the system while requirements are being progressed.

    The data for this publication comes from four different data sources. Therefore, estimates are used to allow reporting on the same time-frame. Changes to the recent unpaid work hours to be progressed should be treated with caution due to seasonal fluctuation. It is better to look at the overall annual trend than focus on the changes in the last two quarters.

    Further statistics on Justice Social Work

    MIL OSI United Kingdom –

  • MIL-OSI Europe: ECB Consumer Expectations Survey results – March 2025

    Source: European Central Bank

    29 April 2025

    Compared with February 2025:

    • median consumer perceptions of inflation over the previous 12 months remained unchanged, as did expectations for inflation five years ahead (reported for the first time this month), while median inflation expectations for both the next 12 months and three years ahead increased;
    • expectations for nominal income growth over the next 12 months remained unchanged, while expectations for spending growth over the next 12 months decreased;
    • expectations for economic growth over the next 12 months were unchanged (remaining somewhat negative), while the expected unemployment rate in 12 months’ time decreased;
    • expectations for growth in the price of homes over the next 12 months increased, while expectations for mortgage interest rates 12 months ahead remained unchanged.

    Inflation

    The median rate of perceived inflation over the previous 12 months remained unchanged at 3.1% in March. This is its lowest level since September 2021. Median expectations for inflation over the next 12 months increased by 0.3 percentage points to 2.9%, the highest level since April 2024, while expectations for three years ahead edged up by 0.1 percentage points to 2.5%, the highest level since March 2024. Expectations for inflation five years ahead, which are being reported for the first time this month, were unchanged for the fourth consecutive month at 2.1%. For more information on this new measure of inflation expectations, please see the box entitled “Consumers’ long-term inflation expectations: an overview” in the Economic Bulletin, Issue 3, ECB, 2025. Inflation expectations at the one-year, three-year and five-year horizons thus remained below the perceived past inflation rate. Uncertainty about inflation expectations over the next 12 months remained unchanged in March at its lowest level since January 2022. While the broad evolution of inflation perceptions and expectations remained relatively closely aligned across income groups, over the previous year and a half inflation perceptions and short-horizon expectations for lower income quintiles were, on average, slightly above those for higher income quintiles. Younger respondents (aged 18-34) continued to report lower inflation perceptions and expectations than older respondents (those aged 35-54 and 55-70), albeit to a lesser degree than in previous years. (Inflation results)

    Income and consumption

    Consumers’ nominal income growth expectations over the next 12 months remained unchanged at 1.0%. Perceived nominal spending growth over the previous 12 months increased to 5.0%, from 4.9% in February. Expected nominal spending growth over the next 12 months decreased to 3.4% in March, from 3.5% in February and 3.6% in January. This decrease was observed across most income groups. (Income and consumption results)

    Economic growth and labour market

    Economic growth expectations for the next 12 months were stable in March, standing at -1.2%. Expectations for the unemployment rate 12 months ahead decreased to 10.4%, from 10.5% in February. Consumers continued to expect the future unemployment rate to be only slightly higher than the perceived current unemployment rate (10.0%), implying a broadly stable labour market. Expectations for both economic growth and the unemployment rate remained broadly stable over the previous four months, fluctuating within a narrow range. (Economic growth and labour market results)

    Housing and credit access

    Consumers expected the price of their home to increase by 3.1% over the next 12 months, which was slightly higher than in February. Households in the lowest income quintile continued to expect higher growth in house prices than those in the highest income quintile (3.3% and 2.8% respectively), although the difference between them narrowed in recent months. Expectations for mortgage interest rates 12 months ahead remained unchanged from February at 4.4%. As in previous months, the lowest income households expected the highest mortgage interest rates 12 months ahead (5.1%), while the highest income households expected the lowest rates (4.0%). The net percentage of households reporting a tightening (relative to those reporting an easing) in access to credit over the previous 12 months increased, while the net percentage of those expecting a tightening over the next 12 months declined. (Housing and credit access results)

    The microdata underlying the aggregate results are available on the Consumer Expectations Survey (CES) web page in the Data and methodological information section.

    The release of the Consumer Expectations Survey (CES) results for April is scheduled for 28 May 2025.

    For media queries, please contact: Benoit Deeg, tel.: +49 172 1683704.

    Notes

    MIL OSI Europe News –

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

    Source: The Conversation (Au and NZ) – 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 Analysis – EveningReport.nz –

  • MIL-OSI Asia-Pac: President Lai meets Japanese Diet Member and former Minister of State for Economic Security Takaichi Sanae

    Source: Republic of China Taiwan

    Details
    2025-04-23
    President Lai delivers remarks at International Holocaust Remembrance Day event
    On the afternoon of April 23, President Lai Ching-te attended an International Holocaust Remembrance Day event and delivered remarks, in which he emphasized that peace is priceless, and war has no winners, while morality, democracy, and respect for human rights are powerful forces against violence and tyranny. The president stated that Taiwan will continue to expand cooperation with democratic partners and safeguard regional and global peace and stability, defending democracy, freedom, and human rights. He said we must never forget history, and must overcome our differences and join in solidarity to ensure that the next generations live in a world that is more just and more peaceful. Upon arriving at the event, President Lai heard a testimony from the granddaughter of a Holocaust survivor, followed by a rabbi’s recitation of the prayer “El Maleh Rachamim.” He then joined other distinguished guests in lighting candles in memory of the victims. A transcript of President Lai’s remarks follows: To begin, I want to thank the Israel Economic and Cultural Office (ISECO) in Taipei, German Institute Taipei, Taiwan Foundation for Democracy, and Ministry of Foreign Affairs for co-organizing this deeply significant memorial ceremony again this year. I also want to thank everyone for attending. We are here today to remember the victims of the Holocaust, express sympathy for the survivors, honor the brave individuals who protected the victims, and acknowledge all who were impacted by this atrocity. It was deeply moving to hear Ms. [Orly] Sela share the story of how her grandmother, Yehudit Biksz, escaped the Nazi regime. I want to thank her specially for traveling so far to attend this event. From the 1930s through World War II, the Nazi regime sought to exclude Jewish people from society. In their campaign, they perpetrated systematic genocide driven by their ideology. Policies and directives under the authoritarian Nazi regime resulted in the deaths of approximately 6 million Jews. Millions of others were persecuted, including Romani people, persons with disabilities, the gay community, and anyone who disagreed with Nazi ideology. It is one of the darkest chapters in human history. Many countries, including Taiwan, have enacted anti-massacre legislation, and observe a remembrance day each year. Those occasions help us remember the victims, preserve historical memory, and most importantly, reinforce our resolve to fight against hatred and discrimination. Twenty-three years ago, Chelujan (車路墘) Church in Tainan founded the Taiwan Holocaust Memorial Museum. It is the first Jewish museum in Taiwan, and the second Holocaust museum in Asia. Its founding mission urges us to forget hatred and love one another; put an end to war and advocate peace. Many of the exhibition items come from Jewish people, connecting Taiwan closer with Israel and helping Taiwanese better understand the experiences of Jewish people. In this way, we grow to more deeply cherish peace. When I was mayor of Tainan, I took part in an exhibition event at Chelujan Church. I was also invited by the Israeli government to join the International Mayors Conference in Israel, where I visited the World Holocaust Remembrance Center. I will never forget how deeply that experience moved me, and as a result, peace and human rights became even more important issues for me. These issues are valued by Taiwan and our friends and allies. They are also important links connecting Taiwan with the world. Peace is priceless, and war has no winners. We will continue to expand cooperation with democratic partners and safeguard regional and global peace and stability. We will also continue to make greater contributions and work with the international community to defend democracy, freedom, and human rights. This year also marks the 80th anniversary of the end of World War II. However, we still see wars raging around the world. We see a resurgence of authoritarian powers, which could severely impact global democracy, peace, and prosperous development. Today’s event allows for more than reflection on the past; it also serves as a warning for the future. We are reminded of the threats that hatred, prejudice, and extremism pose to humanity. But we are also reminded that morality, democracy, and respect for human rights are powerful forces against violence and tyranny. We must never forget history. We must overcome our differences and join in solidarity for a better future. Let’s work together to ensure that the next generations live in a world that is more just and more peaceful. Also in attendance at the event were Member of the Israeli Knesset (parliament) and Taiwan friendship group Chair Boaz Toporovsky, ISECO Representative Maya Yaron, and German Institute Taipei Deputy Director General Andreas Hofem.

    Details
    2025-04-23
    President Lai pays respects to Pope Francis  
    On the morning of April 23, President Lai Ching-te visited the Taipei Archdiocesan Curia to pay respects in a memorial ceremony for His Holiness Pope Francis. As officiant of the ceremony, President Lai burned incense and presented flowers, fruits, and wine to pay his respects to Pope Francis. At the direction of the master of ceremonies, the president then bowed three times in front of Pope Francis’s memorial portrait, conveying his grief and deep respect for the late pope. After hearing of Pope Francis’s passing on April 21, President Lai promptly requested the Ministry of Foreign Affairs to express sincere condolences from the people and government of Taiwan to the Vatican. The president also instructed Minister of Foreign Affairs Lin Chia-lung (林佳龍) to convey condolences to the Holy See’s Apostolic Nunciature in Taiwan.  

    Details
    2025-04-23
    President Lai meets US CNAS NextGen fellows
    On the morning of April 23, President Lai Ching-te met with fellows from the Shawn Brimley Next Generation National Security Leaders Program (NextGen) run by the Center for a New American Security (CNAS). In remarks, President Lai thanked the government of the United States for continuing its arms sales to Taiwan over the years, supporting Taiwan’s efforts to enhance its national defense capabilities and jointly maintaining peace and stability in the Indo-Pacific region. The president pointed out that we will promote our “Taiwan plus one” policy, that is, new arrangements for Taiwan plus the US, and form a “Taiwan investment in the US team” to expand investment and bring about even closer Taiwan-US trade cooperation, allowing us to reduce the trade deficit and generate development that benefits both sides. A translation of President Lai’s remarks follows: Ms. Michèle Flournoy, chair of the CNAS Board of Directors, is a good friend of Taiwan, and she has made major contributions to Taiwan-US relations through her long-time efforts on various aspects of our cooperation. I am happy to welcome Chair Flournoy, who is once again leading a NextGen Fellowship delegation to Taiwan. CNAS is a prominent think tank focusing on US national security and defense policy based in Washington, DC. Its NextGen Fellowship has fostered talented individuals in the fields of national security and foreign affairs. This year’s delegation is significantly larger than those of the past, demonstrating the increased importance that the next generation of US leaders attach to Taiwan. On behalf of the people of Taiwan, I extend my sincerest welcome to you all. The Taiwan Strait, an issue of importance for our guests, has become a global issue. There is a high degree of international consensus that peace and stability across the Taiwan Strait are indispensable elements in global security and prosperity. Facing military threats from China, Taiwan proposed the Four Pillars of Peace action plan. First, we are actively implementing military reforms, enhancing whole-of-society defense resilience, and working to increase our defense budget to more than 3 percent of GDP. Second, we are strengthening our economic resilience. As Taiwan’s economy must keep advancing, we can no longer put all our eggs in one basket. We are taking action to remain firmly rooted in Taiwan while expanding our global presence and marketing worldwide. In these efforts, we are already seeing results. Third, we are standing side-by-side with other democratic countries to demonstrate the strength of deterrence and achieve our goal of peace through strength. And fourth, Taiwan is willing, under the principles of parity and dignity, to conduct exchanges and cooperate with China towards achieving peace and stability in the Taiwan Strait. This April 10 marked the 46th anniversary of the enactment of the Taiwan Relations Act. We thank the US government for continuing its arms sales to Taiwan over the years, supporting Taiwan’s efforts to enhance its national defense capabilities and jointly maintaining peace and stability in the Indo-Pacific region. We look forward to Taiwan and the US continuing to strengthen collaboration on the development of both our defense industries as well as the building of non-red supply chains. This will yield even more results and further deepen our economic and trade partnership. The US is now the main destination for outbound investment from Taiwan. Moving forward, we will promote our “Taiwan plus one” policy, that is, new arrangements for Taiwan plus the US. And our government will form a “Taiwan investment in the US team” to expand investment. We hope this will bring Taiwan-US economic and trade cooperation even closer and, through mutually beneficial assistance, allow us to generate development that benefits both our sides while reducing our trade deficit. In closing, thank you once again for visiting Taiwan. We hope your trip is fruitful and leaves you with a deep impression of Taiwan. We also hope that going forward you continue supporting Taiwan and advancing even greater development for Taiwan-US ties.  Chair Flournoy then delivered remarks, first thanking President Lai for making time to receive their delegation. Referring to President Lai’s earlier remarks, she said that it is quite an impressive group, as past members of this program have gone on to become members of the US Congress, leading government experts, and leaders in the think-tank world and in the private sector. She remarked that investing in this group is a wonderful privilege for her and that they appreciate President Lai’s agreeing to take the time to engage in exchange with them. Chair Flournoy emphasized that they are visiting Taiwan at a critical moment, when there is so much change and volatility in the geostrategic environment, a lot of uncertainty, and a lot of unpredictability. She stated that given our shared values, our shared passion for democracy and human rights, and our shared interests in peace and stability in the Indo-Pacific region, this is an important time for dialogue, collaboration, and looking for additional opportunities where we can work together towards regional peace and stability.

    Details
    2025-04-18
    President Lai meets US delegation from Senate Foreign Relations Subcommittee on East Asia and the Pacific
    On the afternoon of April 18, President Lai Ching-te met with a delegation led by Senator Pete Ricketts, chairman of the United States Senate Foreign Relations Subcommittee on East Asia, the Pacific, and International Cybersecurity Policy. In remarks, President Lai said we hope to promote our Taiwan plus one policy, that is, new industrial arrangements for Taiwan plus the US, to leverage the strengths of both sides and reinforce our links in such areas as the economy, trade, and technological innovation. The president said that by deepening cooperation, Taiwan and the US will be better positioned to work together on building non-red supply chains. He said a more secure and sustainable economic and trade partnership will allow us to address the challenges posed by geopolitics, climate change, and the restructuring of global supply chains. A translation of President Lai’s remarks follows: I warmly welcome you all to Taiwan. I want to take this opportunity to especially thank Chairman Pete Ricketts and Ranking Member Chris Coons for their high regard and support for Taiwan. Chairman Ricketts has elected to visit Taiwan on his first overseas trip since taking up his new position in January. Ranking Member Coons made a dedicated trip to Taiwan in 2021 to announce a donation of COVID-19 vaccines on behalf of the US government. He also visited last May, soon after my inauguration, continuing to deepen Taiwan-US exchanges. Thanks to support from Chairman Ricketts and Ranking Member Coons, the US Congress has continued to introduce many concrete initiatives and resources to assist Taiwan through the National Defense Authorization Act and Consolidated Appropriations Act, bringing the Taiwan-US partnership even closer. For this, I want to again express my gratitude. There has long been bipartisan support in the US Congress for maintaining security in the Taiwan Strait. Faced with China’s persistent political and military intimidation, Taiwan will endeavor to reform national defense and enhance whole-of-society defense resilience. We will also make special budget allocations to ensure that our defense budget exceeds 3 percent of GDP, up from the current 2.5 percent, so as to enhance Taiwan’s self-defense capabilities. We look forward to Taiwan and the US continuing to work together to maintain peace and stability in the region. We will also promote our Taiwan plus one policy, that is, new industrial arrangements for Taiwan plus the US. We hope to leverage the strengths of both sides and reinforce our links in such areas as the economy, trade, and technological innovation, jointly promoting prosperity and development. We believe that by deepening cooperation through the Taiwan plus one policy, Taiwan and the US will be better positioned to work together on building non-red supply chains. A more secure and sustainable economic and trade partnership will allow us to address the challenges posed by geopolitics, climate change, and the restructuring of global supply chains. In closing, I wish Chairman Ricketts and Ranking Member Coons a smooth and successful visit. Chairman Ricketts then delivered remarks, first thanking President Lai for his hospitality. He said that he and his delegation have had a wonderful time meeting with government officials, industry representatives, and the team at the American Institute in Taiwan. Highlighting that Taiwan has long been a friend and partner of the US, he said their bipartisan delegation to Taiwan emphasizes long-time bipartisan support in the US Congress for Taiwan, and though administrations change, that bipartisan support remains. Chairman Ricketts stated that the US is committed to peace and stability in the Indo-Pacific and that they want to see peace across the Taiwan Strait. He also stated that the US opposes any unilateral change in the status of Taiwan and that they expect any differences between Taiwan and China to be resolved peacefully without coercion or the threat of force. To that end, he said, the US will continue to assist Taiwan in its self-defense and will also step up by bolstering its own defense capabilities, noting that there is broad consensus on this in the US Congress. Chairman Ricketts stated that they want to see Taiwan participate in international organizations and memberships where appropriate, and encourage Taiwan to reach out to current and past diplomatic allies to strengthen those bilateral relationships. He pointed out that the long economic relationship between the US and Taiwan is important for our as well as the entire world’s security and prosperity. He also noted that there are many opportunities for us to continue to grow the economic relationship that will help create more prosperity for our respective peoples and ensure that we are more secure in the world. Chairman Ricketts emphasized that they made this trip early on in the new US administration to work with Taiwan to develop three points: security, diplomatic relations, and the economy. He stated that in the face of rising aggression from communist China, the US will provide commensurate help to Taiwan in self-defense and that they will continue to provide the services and tools needed. In closing, Chairman Ricketts once again thanked President Lai for the hospitality and said he looks forward to dialogue on how we can continue these relationships. Ranking Member Coons then delivered remarks. Mentioning that their delegation also visited the Philippines on this trip, he said that there and in Taiwan, they have been focused on peace, stability, and security, and the ways for deepening and strengthening economic and security relations. He noted that 46 years ago, the US Senate passed the Taiwan Relations Act, adding that it was strongly bipartisan when enacted and that support for it is still strongly bipartisan today. Its core commitment, he said, is that the US will be engaged and will be a partner in ensuring that any dispute or challenge across the strait will be resolved peacefully, and that Taiwan will have the resources it needs for its self-defense. Ranking Member Coons said that between people, friendships are deepest and most enduring when they are based not just on interests but on values, and that the same is true between the US and Taiwan. Free press, free enterprise, free societies, democracy – these core shared values, he said, anchor our friendship and partnership, making them deeper. He remarked that they are grateful for the significant investment in the US being made by companies from Taiwan, but what anchors our partnership, in addition to these important investments and investments being made by Taiwan in its own security, are the values that mobilize our free-enterprise spirit and our commitment to free societies. In Europe in recent years, Ranking Member Coons said, an aggressive nation has tried to change boundaries and change history by force. He said that the US and dozens of countries committed to freedom have come to the aid of Ukraine to defend it, help it stabilize, and secure its future. So too in this region of the world, he added, the US and a bipartisan group in the US Senate are committed to stable, secure, peaceful relations and to deterring any unilateral effort to change the status quo by force. In closing, he said he is grateful for a chance to return to Taiwan after the pandemic and that he looks forward to our conversation, our partnership, and the important work we have in front of us. The delegation was accompanied to the Presidential Office by American Institute in Taiwan Taipei Office Director Raymond Greene.

    Details
    2025-04-17
    President Lai meets New Zealand delegation from All-Party Parliamentary Group on Taiwan  
    On the morning of April 17, President Lai Ching-te met with a delegation from New Zealand’s All-Party Parliamentary Group on Taiwan. In remarks, President Lai thanked the government of New Zealand for reiterating the importance of peace and stability across the Taiwan Strait on multiple occasions since last year. He also stated that this year, the Taiwan-New Zealand economic cooperation agreement (ANZTEC) is being implemented in its complete form. The president expressed hope that deeper collaboration in such fields as smart agriculture, food manufacturing, biomedicine, the digital economy, and clean energy, as well as exchanges among our indigenous peoples, will allow our economies and industries to continue evolving as they adapt to the challenges arising from global changes. A translation of President Lai’s remarks follows: I extend a warm welcome to all of our guests. New Zealand’s All-Party Parliamentary Group on Taiwan was established in 2023, marking a significant milestone in the deepening of Taiwan-New Zealand relations. I would like to thank Members of Parliament Stuart Smith and Tangi Utikere for leading this delegation, and thank all our guests for demonstrating support for Taiwan through action. We currently face a rapidly changing international landscape. Authoritarian regimes continue to converge and expand. Democracies must actively cooperate and jointly safeguard peace, stability, and the prosperous development of the Indo-Pacific region. Since last year, the government of New Zealand has on multiple occasions reiterated the importance of peace and stability across the Taiwan Strait. On behalf of the people of Taiwan, I would like to express our sincere gratitude for these statements and demonstrations of support. This year, ANZTEC is being implemented in its complete form. We look forward to exploring even more diverse markets with New Zealand. Deeper collaboration in such fields as smart agriculture, food manufacturing, biomedicine, the digital economy, and clean energy, as well as exchanges among indigenous peoples, will allow our economies and industries to continue evolving as they adapt to the challenges arising from global changes. Taiwan and New Zealand share the universal values of democracy, freedom, and respect for human rights, and parliamentary diplomacy is a tradition practiced by democracies around the world. Looking ahead, our parliamentary exchanges and mutual visits are bound to become more frequent. This will enable us to explore even more opportunities for cooperation and further deepen and solidify the democratic partnership between Taiwan and New Zealand. Thank you once again for making the long journey to visit us. I wish you a fruitful and successful trip. I also hope that everyone can take time to see more of Taiwan, try our local cuisine, and learn more about our culture. I hope our guests will fall in love with Taiwan. MP Smith then delivered remarks, saying that it is a great pleasure and an honor to be received by President Lai. The MP, noting that President Lai already covered many of the points he planned to make, went on to say that New Zealand and Taiwan share many values. He indicated that both are trading nations that rely on easy access for imports and exports, and that is why freedom of navigation is so important. That is why New Zealand had a naval vessel sail through the Taiwan Strait, he said, to underline the importance of freedom of navigation and our mutual security. MP Smith said that they look forward to building stronger relationships and enhancing the trade between our two nations. He added that New Zealand has much to offer in the field of geothermal energy to assist Taiwan, and mentioned that New Zealand is third largest in terms of the number of rocket launchers for satellites, which could assist Taiwan with communications in the future. New Zealand has other products as well, he said, but looks for assistance from Taiwan’s technology and technological sector. Lastly, MP Smith stated that he looks forward to a long and prosperous relationship between Taiwan and New Zealand. MP Utikere then delivered remarks, indicating that like Taiwan, New Zealand is a nation that is surrounded by ocean, which means that they rely on strong partnerships with communities of interest all around the globe. He said that the all-party parliamentary friendship group that was established and that they are a part of goes a long way in ensuring that a secure relationship between our two parliaments can continue to prosper. The MP also thanked Taiwan’s Representative to New Zealand Joanne Ou (歐江安) and her team for their work, which has ensured the success of the delegation’s visit. He said that the delegation experienced meetings with ministers in Taiwan’s government, members of the legislature, and those from the non-government organization sector as well. He also said that they enjoyed the opportunity to visit Wulai, and that the strength of the connections between the indigenous peoples of Taiwan and the indigenous peoples of Aotearoa New Zealand is something that certainly landed with members of the delegation. MP Utikere noted that he will take up President Lai’s offer on experiencing more of Taiwan, and will spend a few extra days in Tainan, which he understands has a very special place in the president’s heart, adding that he looks forward to his time and experiences there. The MP concluded his remarks by saying that this will be a relationship that continues to go from strength to strength. After their remarks, the New Zealand delegation sang the Māori song “Tutira Mai Nga Iwi” to extend best wishes to Taiwan. Also in attendance at the meeting were New Zealand Members of Parliament Jamie Arbuckle, Greg Fleming, Hamish Campbell, Cameron Luxton, and Helen White.  

    Details
    2025-04-06
    President Lai delivers remarks on US tariff policy response
    On April 6, President Lai Ching-te delivered recorded remarks regarding the impact of the 32 percent tariff that the United States government recently imposed on imports from Taiwan in the name of reciprocity. In his remarks, President Lai explained that the government will adopt five response strategies, including making every effort to improve reciprocal tariff rates through negotiations, adopting a support plan for affected domestic industries, adopting medium- and long-term economic development plans, forming new “Taiwan plus the US” arrangements, and launching industry listening tours. The president emphasized that as we face this latest challenge, the government and civil society will work hand in hand, and expressed hope that all parties, both ruling and opposition, will support the measures that the Executive Yuan will take to open up a broader path for Taiwan’s economy. A translation of President Lai’s remarks follows: My fellow citizens, good evening. The US government recently announced higher tariffs on countries around the world in the name of reciprocity, including imposing a 32 percent tariff on imports from Taiwan. This is bound to have a major impact on our nation. Various countries have already responded, and some have even adopted retaliatory measures. Tremendous changes in the global economy are expected. Taiwan is an export-led economy, and in facing future challenges there will inevitably be difficulties, so we must proceed carefully to turn danger into safety. During this time, I want to express gratitude to all sectors of society for providing valuable opinions, which the government regards highly, and will use as a reference to make policy decisions.  However, if we calmly and carefully analyze Taiwan’s trade with the US, we find that last year Taiwan’s exports to the US were valued at US$111.4 billion, accounting for 23.4 percent of total export value, with the other 75-plus percent of products sold worldwide to countries other than the US. Of products sold to the US, competitive ICT products and electronic components accounted for 65.4 percent. This shows that Taiwan’s economy does still have considerable resilience. As long as our response strategies are appropriate, and the public and private sectors join forces, we can reduce impacts. Please do not panic. To address the reciprocal tariffs by the US, Taiwan has no plans to adopt retaliatory tariffs. There will be no change in corporate investment commitments to the US, as long as they are consistent with national interests. But we must ensure the US clearly understands Taiwan’s contributions to US economic development. More importantly, we must actively seek to understand changes in the global economic situation, strengthen Taiwan-US industry cooperation, elevate the status of Taiwan industries in global supply chains, and with safeguarding the continued development of Taiwan’s economy as our goal, adopt the following five strategies to respond. Strategy one: Make every effort to improve reciprocal tariff rates through negotiations using the following five methods:  1. Taiwan has already formed a negotiation team led by Vice Premier Cheng Li-chiun (鄭麗君). The team includes members from the National Security Council, the Office of Trade Negotiations, and relevant Executive Yuan ministries and agencies, as well as academia and industry. Like the US-Mexico-Canada free trade agreement, negotiations on tariffs can start from Taiwan-US bilateral zero-tariff treatment. 2. To expand purchases from the US and thereby reduce the trade deficit, the Executive Yuan has already completed an inventory regarding large-scale procurement plans for agricultural, industrial, petroleum, and natural gas products, and the Ministry of National Defense has also proposed a military procurement list. All procurement plans will be actively pursued. 3. Expand investments in the US. Taiwan’s cumulative investment in the US already exceeds US$100 billion, creating approximately 400,000 jobs. In the future, in addition to increased investment in the US by Taiwan Semiconductor Manufacturing Company, other industries such as electronics, ICT, petrochemicals, and natural gas can all increase their US investments, deepening Taiwan-US industry cooperation. Taiwan’s government has helped form a “Taiwan investment in the US” team, and hopes that the US will reciprocate by forming a “US investment in Taiwan” team to bring about closer Taiwan-US trade cooperation, jointly creating a future economic golden age.  4. We must eliminate non-tariff barriers to trade. Non-tariff barriers are an indicator by which the US assesses whether a trading partner is trading fairly with the US. Therefore, we will proactively resolve longstanding non-tariff barriers so that negotiations can proceed more smoothly. 5. We must resolve two issues that have been matters of longstanding concern to the US. One regards high-tech export controls, and the other regards illegal transshipment of dumped goods, otherwise referred to as “origin washing.” Strategy two: We must adopt a plan for supporting our industries. For industries that will be affected by the tariffs, and especially traditional industries as well as micro-, small-, and medium-sized enterprises, we will provide timely and needed support and assistance. Premier Cho Jung-tai (卓榮泰) and his administrative team recently announced a package of 20 specific measures designed to address nine areas. Moving forward, the support we provide to different industries will depend on how they are affected by the tariffs, will take into account the particular features of each industry, and will help each industry innovate, upgrade, and transform. Strategy three: We must adopt medium- and long-term economic development plans. At this point in time, our government must simultaneously adopt new strategies for economic and industrial development. This is also the fundamental path to solutions for future economic challenges. The government will proactively cooperate with friends and allies, develop a diverse range of markets, and achieve closer integration of entities in the upper, middle, and lower reaches of industrial supply chains. This course of action will make Taiwan’s industrial ecosystem more complete, and will help Taiwanese industries upgrade and transform. We must also make good use of the competitive advantages we possess in such areas as semiconductor manufacturing, integrated chip design, ICT, and smart manufacturing to build Taiwan into an AI island, and promote relevant applications for food, clothing, housing, and transportation, as well as military, security and surveillance, next-generation communications, and the medical and health and wellness industries as we advance toward a smarter, more sustainable, and more prosperous new Taiwan. Strategy four: “Taiwan plus one,” i.e., new “Taiwan plus the US” arrangements: While staying firmly rooted in Taiwan, our enterprises are expanding their global presence and marketing worldwide. This has been our national economic development strategy, and the most important aspect is maintaining a solid base here in Taiwan. We absolutely must maintain a solid footing, and cannot allow the present strife to cause us to waver. Therefore, our government will incentivize investments, carry out deregulation, and continue to improve Taiwan’s investment climate by actively resolving problems involving access to water, electricity, land, human resources, and professional talent. This will enable corporations to stay in Taiwan and continue investing here. In addition, we must also help the overseas manufacturing facilities of offshore Taiwanese businesses to make necessary adjustments to support our “Taiwan plus one” policy, in that our national economic development strategy will be adjusted as follows: to stay firmly rooted in Taiwan while expanding our global presence, strengthening US ties, and marketing worldwide. We intend to make use of the new state of supply chains to strengthen cooperation between Taiwanese and US industries, and gain further access to US markets. Strategy five: Launch industry listening tours: All industrial firms, regardless of sector or size, will be affected to some degree once the US reciprocal tariffs go into effect. The administrative teams led by myself and Premier Cho will hear out industry concerns so that we can quickly resolve problems and make sure policies meet actual needs. My fellow citizens, over the past half-century and more, Taiwan has been through two energy crises, the Asian financial crisis, the global financial crisis, and pandemics. We have been able to not only withstand one test after another, but even turn crises into opportunities. The Taiwanese economy has emerged from these crises stronger and more resilient than ever. As we face this latest challenge, the government and civil society will work hand in hand, and I hope that all parties in the legislature, both ruling and opposition, will support the measures that the Executive Yuan will take to open up a broader path for Taiwan’s economy. Let us join together and give it our all. Thank you.

    MIL OSI Asia Pacific News –

  • MIL-OSI Europe: Piero Cipollone: Navigating a fractured horizon: risks and policy options in a fragmenting world

    Source: European Central Bank

    Speech by Piero Cipollone, Member of the Executive Board of the ECB, at the conference on “Policy challenges in a fragmenting world: Global trade, exchange rates, and capital flow” organised by the Bank for International Settlements, the Bank of England, the ECB and the International Monetary Fund

    Frankfurt am Main, 29 April 2025

    I’m honoured to welcome you to this conference, jointly organised by the Bank for International Settlements (BIS), the Bank of England, the European Central Bank (ECB) and the International Monetary Fund (IMF).[1]

    Today, we come together to discuss the urgent challenges posed by global fragmentation – a growing risk to our interconnected world. Earlier this month, the President of the United States announced tariff hikes, sending shockwaves through the global economy – a stark reminder that the fractures we face are no longer hypothetical, but real.

    This announcement is but the latest chapter in a series of four major shocks that have been reshaping our world in recent years.

    First, since 2018 the intensifying power struggle between the United States and China has led to tit-for-tat tariffs affecting nearly two-thirds of the trade between these two economic giants. Second, starting in 2020, the pandemic caused unprecedented disruptions to supply chains, which prompted a re-evaluation of the balance between global integration and resilience. Third, in 2022 Russia’s unjustified invasion of Ukraine not only triggered an energy crisis but also deepened a geopolitical divide that continues to have worldwide repercussions. And fourth, we are now facing the rising risk of economic fragmentation within the western bloc itself, as new trade barriers threaten long-standing international partnerships.

    The data paint a sobering picture. Geopolitical risk levels have surged to 50% above the post-global financial crisis average, and uncertainty surrounding trade policy has risen to more than eight times its average since 2021.[2] What we are experiencing is not merely a temporary disruption – it is a profound shift in how nations interact economically, financially and diplomatically. So, it does not come as a surprise that financial markets have experienced considerable volatility in recent weeks. It remains to be seen if, for markets to find a stable equilibrium, it will be enough to step back from the current international economic disorder towards a more stable, predictable and reliable trading system – a development that appears elusive in the short term. Against this backdrop, recent moves in exchange rates, bond yields and equities, suggest that US markets have not been playing their usual role as a safe haven in this particular episode of stress. This potentially has far-reaching longer-term implications for capital flows and the international financial system.

    Today I will focus on three key points. First, we are seeing increasing signs of fragmentation becoming visible across the economy and financial system. Second, the implications of this accelerating fragmentation could extend far beyond the immediate disruptions, with consequences for growth, stability and prosperity. Third, in this evolving economic landscape, central banks must adapt their approaches yet retain a steadfast focus on their core mandates, while striving to preserve international cooperation.

    The emerging reality of fragmentation

    Let me begin by addressing a common belief – still held by many until recently – that, despite rising geopolitical tensions, globalisation appears largely resilient. Headline figures in trade and cross-border investment, for example, do indeed appear to support this belief. In 2024 world trade expanded to a record USD 33 trillion – up 3.7% from 2023. Similarly, the global stock of foreign direct investment reached an unprecedented USD 41 trillion.[3] However, these surface-level indicators may not reflect the underlying realities, creating a misleading sense of stability when important changes are already underway. In reality, fragmentation is already happening in both the global economy and the financial system.

    Fragmentation of the real economy

    Fragmentation is most evident in rebalancing trade, driven by escalating geopolitical tensions. Take, for instance, the escalating US-China trade tensions that have been intensifying since 2018. Studies show the impact of geopolitical distance on trade has become notably negative. A doubling of geopolitical distance between countries – akin to moving from the position of Germany to that of India in relation to the United States – decreases bilateral trade flows by approximately 20%.[4]

    The series of shocks to the global economy in recent years have also contributed to this fragmentation. According to gravity model estimates, trade between geopolitically distant blocs has significantly declined. Trade between rivals is about 4% lower than it might have been without the heightened tensions post-2017, while trade between friends is approximately 6% higher.[5] Global value chains are being reconfigured as companies respond to these new realities. In 2023 surveys already indicated that only about a quarter of leading firms operating in the euro area[6] that sourced critical inputs from countries considered subject to elevated risk had not developed strategies to reduce their exposure.[7]

    However, these shifting trade patterns have not yet been reflected in overall global trade flows. Non-aligned countries have played a crucial role as intermediaries, or connectors, helping to sustain global trade levels even as direct trade between rival blocs declines.[8] But this stabilising influence is unlikely to endure as trade fragmentation deepens and geopolitical alliances continue to shift.

    The tariffs announced by the US Administration are far-reaching and affect a substantial share of global trade flows. The effects on the real economy are likely to be material. In its World Economic Outlook, published last week, the International Monetary Fund revised down global growth projections for 2025-26 by a cumulative 0.8 percentage points and global trade by a cumulative 2.3 percentage points.[9] This notably reflects a negative hit from tariffs that ranges between 0.4% to 1% of world GDP by 2027.[10] In particular, IMF growth projections for the United States have been revised down by a cumulative 1.3 percentage points in 2025-26. The cumulative impact on euro area growth is smaller, at 0.4 percentage points.

    Financial fragmentation

    The fragmentation we are witnessing in global trade is mirrored in the financial sector, where geopolitical tensions are also reshaping the landscape.

    In recent years, global foreign direct investment flows have increasingly aligned with geopolitical divides. Foreign direct investment in new ventures has plunged by nearly two-thirds between countries from different geopolitical blocs. However, strong intra-bloc investments have helped sustain overall foreign direct investment levels globally, masking some of the fragmentation occurring beneath the surface.[11]

    But, as with trade flows, this dynamic is unlikely to persist as geopolitical tensions grow within established economic blocs. For instance, increased geopolitical distance is shown to curtail cross-border lending. A two standard deviation rise in geopolitical distance – akin to moving from the position of France to that of Pakistan in relation to Germany – leads to a reduction of 3 percentage points in cross-border bank lending.[12]

    The impact of fragmentation in global financial infrastructure is perhaps even more revealing. Since 2014 correspondent banking relationships – crucial for facilitating trade flows across countries – have declined by 20%. While other factors – such as a wave of concentration in the banking industry, technological disruptions and profitability considerations – have played a role[13], the contribution of the geopolitical dimension can hardly be overstated. The repercussions of this decline can be profound. Research shows that when correspondent banking relationships are severed in a specific corridor, a firm’s likelihood of continuing to export between the two countries of that corridor falls by about 5 percentage points in the short term, and by about 20 percentage points after four years.[14]

    Contributing to this trend, countries such as China, Russia and Iran have launched multiple initiatives to develop alternatives to established networks such as SWIFT, raising the possibility of a fragmented global payment system.[15] Geopolitical alignment now exerts a stronger influence than trade relationships or technical standards in connecting payment systems between countries.[16] This poses risks of regional networks becoming more unstable, increased trade costs and settlement times, and reduced risk sharing across countries.

    Additionally, we are witnessing a noticeable shift away from traditional reserve currencies, with growing interest in holding gold. Central banks purchased more than 1,000 tonnes of gold in 2024, almost double the level of the previous decade, with China being the largest purchaser, at over 225 tonnes. At market valuations, the share of gold in global official reserves has increased, reaching 20% in 2024, while that of the US dollar has decreased. Survey data suggest that two-thirds of central banks invested in gold to diversify, 40% to protect against geopolitical risk and 18% because of the uncertainty over the future of the international monetary system.[17] There are further signs that geopolitical considerations increasingly influence decisions to invest in gold. The negative correlation of gold prices with real yields has broken down since 2022, a phenomenon we have also observed in recent weeks. This suggests that gold prices have been influenced by more than simply the use of gold to hedge against inflation. Moreover, countries geopolitically close to China and Russia have seen more pronounced increases in the share of gold in official foreign reserves since the last quarter of 2021.

    The looming consequences of fragmentation

    Accelerating fragmentation is resulting in the immediate disruptions we are now seeing, but this is likely to only be the beginning – potentially profound medium and long-term consequences for growth, stability and prosperity can be expected.

    Medium-term impacts

    The initial consequences of fragmentation are already evident in the form of increased uncertainty. In particular, trade policy uncertainty has led to a broader rise in global economic policy instability, which is stifling investment and dampening consumption. Our research suggests that the recent increase in trade policy uncertainty could reduce euro area business investment by 1.1% in the first year and real GDP growth by around 0.2 percentage points in 2025-26[18]. Consumer sentiment is also under strain, with the ECB’s Consumer Expectations Survey revealing that rising geopolitical risks are leading to more pessimistic expectations, higher income uncertainty and ultimately a lower willingness to spend.[19] Moreover, ECB staff estimates suggest that the observed increase in financial market volatility might imply lower GDP growth of about 0.2 percentage points in 2025.

    Over the medium term, tariffs are set to have an unambiguously recessionary effect, both for countries imposing restrictions and those receiving them. The costs are particularly high when exchange rates fail to absorb tariff shocks, and some evidence suggests exchange rates have become less effective in this role.[20]

    The Eurosystem’s analysis of potential fragmentation scenarios suggests that such trade disruptions could turn out to be significant. In the case of a mild decoupling between the western (United States-centric) and the eastern (China-centric) bloc, where trade between East and West reverts to the level observed in the mid-1990s, global output could drop by close to 2%.[21] In the more extreme case of a severe decoupling – essentially a halt to trade flows – between the two blocs, global output could drop by up to 9%. Trade-dependent nations would bear the brunt of these trade shocks, with China potentially suffering losses of between 5% and 20%, and the EU seeing declines ranging from 2.4% to 9.5% in the mild and severe decoupling scenarios respectively. The analysis also shows that the United States would be more significantly affected if it imposed additional trade restrictions against western and neutral economies – with real GDP losses of almost 11% in the severe decoupling scenario – whereas EU losses would increase only slightly in such a case.[22]

    The inflationary effects of trade fragmentation are more uncertain. They depend mainly on the response of exchange rates, firms’ markups and wages. Moreover, they are not distributed equally. While higher import costs and the ensuing price pressures are likely to drive up inflation in the countries raising tariffs, the impact is more ambiguous in other countries as a result of the tariffs’ global recessionary effects, which push down demand and commodity prices, as well as of the possible dumping of exports from countries with overcapacity. The short to medium-term effects may even prove disinflationary for the euro area, where real rates have increased and the euro has appreciated following US tariff announcements.

    In fact, a key feature of most model-based assessments is that higher US tariffs lead to a depreciation of currencies against the US dollar, moderating the inflationary effect for the United States and amplifying it for other countries. But so far we have seen the opposite: the risk-off sentiment in response to US tariff announcements and economic policy uncertainty have led to capital flows away from the United States, depreciating the dollar and putting upward pressure on US bond yields. Conversely, the euro area benefited from safe haven flows, with the euro appreciating and nominal bond yields decreasing.

    Long-term structural changes

    The long-term consequences of economic fragmentation are inherently difficult to predict, but by drawing on historical examples and recognising emerging trends, it’s clear that we are on the verge of significant structural changes. Two areas stand out.

    The first one is structurally lower growth. On this point, international economic literature has reached an overwhelming consensus.[23] Quantitatively, point estimates might vary. For example, research of 151 countries spanning more than five decades of the 20th century reveals that higher tariffs have typically led to lower economic growth. This is largely due to key production factors – labour and capital – being redirected into less productive sectors.[24]

    However, data from the late 19th and early 20th centuries, a period which tariff supporters often look back to, seem to tell a different story. At that time, trade barriers across countries were high – the US effective tariff rate, for example, reached almost 60%, twice as high as after the 2 April tariffs. And sometimes countries imposing higher trade barriers enjoyed higher growth, which may provide motivation for current policymakers’ trade tariff policies. But these episodes need to be read in historical context. Before 1913, tariffs mostly shielded manufacturing, a high-productivity sector at the time, attracting labour from other, less productive sectors, like agriculture. Therefore, their negative effects were mitigated by the expansion of industries at the frontier of technological innovation. Moreover, the interwar years offer further nuance – the Smoot-Hawley tariffs of the 1930s had relatively limited direct effects on US growth, mainly because trade accounted for just 5% of the economy.

    But today’s tariffs are unlikely to replicate the positive effects seen in the 19th century. Instead, they risk creating the same inefficiencies observed in the course of the 20th century, by diverting resources from high-productivity sectors to lower-productivity ones. This contractionary effect could lead to persistently lower global growth rates. In fact, the abolition of trade barriers within the EU and the international efforts towards lower trade barriers in the second half of the 20th century were a direct response to the economic and political impact of protectionism,[25] which had played a key role in worsening and prolonging the Great Depression[26] and had contributed to the formation of competing blocs in the run-up to the Second World War.[27]

    The second long-term shift driven by fragmentation might be the gradual transition from a US-dominated, global system to a more multipolar one, where multiple currencies compete for reserve status. For example, if the long-term implications of higher tariffs materialise, notably in the form of higher inflation, slower growth and higher US debt, this could undermine confidence in the US dollar’s dominant role in international trade and finance.[28] Combined with a further disengagement from global geopolitical affairs and military alliances, this could, over time, undermine the “exorbitant privilege” enjoyed by the United States, resulting in higher interest rates domestically.[29]

    Moreover, as alternative payment systems gain traction, regional currencies may start to emerge as reserves within their respective blocs. This could be accompanied by the rise of competing payment systems, further fragmenting global financial flows and international trade. Such shifts would increase transaction costs and erode the capacity of countries to share risks on a global scale, making the world economy more fragmented and less efficient.

    The central bank’s role in a fragmented world

    So, as these tectonic shifts reshape the global economic landscape, central banks must adapt their approaches while remaining steadfast in their core mandates. The challenges posed by fragmentation require a delicate balance between confronting new realities and working to preserve the benefits of an integrated global economy. In order to navigate the present age of fragmentation, it is necessary to take action in four key areas.

    First, central banks must focus on understanding and monitoring fragmentation. Traditional macroeconomic models often assume seamless global integration and may not fully capture the dynamics of a fragmenting world. Enhanced analytical frameworks that incorporate geopolitical factors and how businesses adjust to these risks will be essential for accurate forecasting and effective policy formulation. The Eurosystem is reflecting on these issues.

    Second, monetary policy must adapt to the new nature of supply shocks generated by fragmentation. The effects of the greater frequency, size and more persistent nature of fragmentation-induced shocks and their incidence on prices require a careful calibration of our monetary responses. In this respect, our communication needs to acknowledge the uncertainty and trade-offs we face while giving a clear sense of how we will react depending on the incoming data. This can be done by making use of scenario analysis and providing clarity about our reaction function, as emphasised recently by President Lagarde.[30]

    Third, instead of building walls, we must forge unity. Even as political winds shift, central banks should strengthen international cooperation where possible. Through forums such as those provided by the BIS and the Financial Stability Board, we can keep open channels of cooperation that transcend borders. Our work on cross-border payments stands as proof of this commitment in line with the G20 Roadmap[31]. The ECB is pioneering a cross-currency settlement service through TARGET Instant Payment Settlement (TIPS) – initially linking the euro, the Swedish krona and the Danish krone. We are exploring connections between TIPS and other fast-payment systems globally, both bilaterally and on the basis of a multilateral network such as the BIS’ Project Nexus.[32]

    And fourth, central banks must enhance their capacity to address financial stability risks arising from fragmentation. The potential for sudden stops in capital flows, payment disruptions and volatility in currency markets requires robust contingency planning and crisis management frameworks. Global financial interlinkages and spillovers highlight the importance of preserving and further reinforcing the global financial safety net so that we can swiftly and effectively address financial stress, which is more likely to emerge in a fragmenting world.[33]

    In fact, the lesson from the 1930s is that international coordination is key to avoiding protectionist snowball effects, where tit-for-tat trade barriers multiply as each country seeks to direct spending to merchandise produced at home rather than abroad.[34] In order to avoid this, the G20 countries committed to preserving open trade could call an international trade conference to avoid beggar-thy-neighbour policies[35] and instead agree on other measures, such as macroeconomic policies that can support the global economy in this period of uncertainty and contribute to reduce global imbalances.

    Let me finally emphasise that the current situation also has important implications for the euro area. If the EU upholds its status as a reliable partner that defends trade openness, investor protection, the rule of law and central bank independence, the euro has the potential to play the role of a global public good. This requires a deep, trusted market for internationally accepted euro debt securities. That is why policy efforts to integrate and deepen European capital markets must go hand in hand with efforts to issue European safe assets.[36]

    Conclusion

    Let me conclude.

    As we stand at this crossroads of global fragmentation, we must confront an uncomfortable truth: we are drifting toward a fractured economic and financial landscape where trust is eroded and alliances are strained.

    Central banks now face a double challenge: to be an anchor of stability in turbulent economic waters while reimagining their role in a world where multiple economic blocs are forming. The question is not whether we adapt, but how we mitigate the costs of fragmentation without sacrificing the potential of global integration.

    Our greatest risk lies not in the shocks we anticipate, but in the alliances we neglect, the innovations we overlook and the common ground we fail to find. The future of global prosperity hinges on our ability to use fragmentation as a catalyst to reinvent the common good.

    MIL OSI Europe News –

  • MIL-OSI USA: Public school educators are still underpaid, four new NEA reports show

    Source: US National Education Union

    By: Joshua Horwich

    Published: April 29, 2025

    WASHINGTON — U.S. educators still suffer from too-low wages and a lack of professional respect, according to four new reports examining educator pay and school funding from pre-K through college. The National Education Association’s annual reports today show salaries continue to lag behind inflation. These poor wages are not without consequence: Too-low pay exacerbates the national teacher shortage, making it difficult for school districts to attract and retain quality educators while also worsening educator morale.

    Thanks to strong advocacy by NEA members and some elected leaders stepping up, teachers received the most significant year-over-year pay increase in more than a decade. States such as California, Colorado, Maryland, Nevada, New Mexico, and Oregon demonstrated significant progress in teacher pay, putting more money into educators’ pockets. Meanwhile, states like Montana and Rhode Island led the way in increasing pay for K-12 education support professionals. At the same time, Maryland, Nevada, and Wisconsin showed the largest increases in faculty pay at public four-year universities.

    Despite this progress, much work remains to eliminate the teacher pay penalty, address inadequate pay for all educators, and finally make the investments necessary at the state and local levels to attract and retain quality educators in public schools. Additionally, in places like Arkansas, the increases in teacher pay were tied to legislation that took money out of public education and put it into the hands of billionaires eager to line their pockets, hurting students in the long run.

    “In some states, educators are seeing long-overdue pay increases, thanks to union-led advocacy, but overall, educator pay is still not keeping up with inflation. This hard-won progress is now under threat from the Trump administration’s careless, callous, and reckless actions, and students will pay the price,” said NEA President Becky Pringle. “Their plans to gut public education will rip funding from public schools and roll back these very same gains to help provide competitive and professional pay to educators. These resources are desperately needed to ensure every student has access to every opportunity needed to succeed. What is happening at the federal level is not just an attack on educators—it’s an attack on every student and every family in every community of this country.”

    The data released today includes “Rankings and Estimates,” a report NEA has produced since the 1960s, which is widely cited as an authoritative source on average teacher salaries and per-student expenditures. NEA’s “Teacher Salary Benchmark Report” provides information from over 12,000 school districts on starting teacher salaries and salaries at other points of the teaching career continuum. The “Education Support Professional Earnings Report” offers a pay breakdown for school support staff, also known as education support professionals, working in K-12 public schools and higher education. NEA’s “Higher Education Faculty Salary Analysis” examines full-time faculty and graduate assistant salaries at the national, state, and institutional levels. Additionally, NEA released financial snapshots for four demographics: teachers at the preK-12 level, higher education faculty, and support staff at both the preK-12 and higher education levels.

    Data highlights and trends:   

    • In 2023–2024, the national average public school teacher salary rose by 3.8% to $72,030, with a projected 3.0% increase for 2024–2025.
    • Despite these increases, average teacher pay has not kept up with inflation over the last decade, resulting in a 5% decrease in real earnings.
    • The average starting teacher salary was $46,526, marking a 4.4% increase, the largest in 15 years, yet it’s still $3,728 below 2008–2009 levels.
    • 16.6% of U.S. school districts offer starting salaries less than $40,000, a drop of over 10 percentage points from the prior year. However, approximately 69.9% of school districts still pay starting salaries below $50,000. Only 20.7% of school districts offer teacher salaries over $100,000.
    • 87% of teachers expressed concern over low pay, and 40% work extra jobs. Nearly 30% of full-time K-12 support professionals earn under $25,000.
    • Full-time faculty on 9- or 10-month contracts averaged $101,955, a 4.2% increase, yet 6.8% below pre-pandemic levels after adjusting for inflation.
    • Faculty at Historically Black Colleges and Universities earn 75 cents for every dollar non-HBCU educators make.
    • Unionized teachers earn 24% more on average in states with collective bargaining, and education support professionals earn 7% more.
    • Starting salaries and top pay for teachers and support staff are higher in states with bargaining laws compared to those without.

    “As Donald Trump and Elon Musk attempt to take a chainsaw to public education so that billionaires can get another tax cut, our students will pay the price,” added Pringle. “Parents and educators know what works. We need to invest in smaller class sizes, more tools and resources, and build on the progress educators, unions, and state leaders have recently made to increase educator pay. Those pay increases have also been instrumental in addressing and mitigating the educator shortages plaguing our public schools. America’s 50 million public school students deserve strong and well-funded public schools—not the chaos and destruction Trump and Musk are unleashing on their education.”

    For additional information about Rankings and Estimates and related NEA salary data reports, please visit www.nea.org/educatorpay. 

    Follow us on Bluesky at https://bsky.app/profile/neapresident.bsky.social and https://bsky.app/profile/neatoday.bsky.social

    # # #

    The National Education Association is the nation’s largest professional employee organization, representing more than 3 million elementary and secondary teachers, higher education faculty, education support professionals, school administrators, retired educators, students preparing to become teachers, healthcare workers, and public employees. Learn more at www.nea.org.

    MIL OSI USA News –

  • MIL-OSI Australia: Australia’s External Position and the Evolution of the FX Markets

    Source: Airservices Australia

    Introduction

    I would like to thank Bloomberg for hosting this event. Today I will discuss Australia’s evolving external position and the development of foreign exchange (FX) markets. I will emphasise the growing footprint of superannuation funds in Australia’s capital flows and the importance of these and other ‘buy-side’ firms of adopting best practices in FX markets.

    Australia’s capital account and FX markets since the float

    The removal of capital account restrictions and the floating of the Australian dollar in 1983 reshaped our economy. Free capital movement facilitated large increases in foreign investment in Australia and allowed Australian households and firms to diversify their portfolios by investing overseas. Deep, well-functioning FX markets that developed following the float helped banks, businesses and fund managers to manage their foreign exposures.

    Australia’s integration into global capital markets saw two distinct trends in our net investment position with the rest of the world (Graph 1). First, in the decades after the float, Australia’s high investment rate was associated with rising foreign debt. This saw net foreign liabilities rise substantially to around 50 per cent of GDP. Second, over more recent years, outbound investment has grown as a share of GDP as Australia’s saving rate rose and domestic investment declined. This accumulation of foreign assets has contributed to an extraordinary decline in Australia’s net foreign liabilities to levels last seen prior to 1983.

    The rise in external debt and the internationalisation of FX markets in the 1980s

    While foreign ownership of Australian assets was already common in some sectors, the full opening of the capital account allowed for much more foreign investment in Australia. The growth in debt held by overseas creditors was particularly noticeable in domestic banking and resource sectors.

    The increase in cross-border investment was accompanied by a rise in FX transactions. Prior to the float, spot transactions by local commercial banks dominated FX transactions. While the Australian dollar spot market grew strongly, the 1980s also saw the establishment of FX swap markets. These instruments, which allowed market participants to better hedge their foreign currency exposures, quickly became the most traded in Australian dollar markets (Graph 2). The deepening of FX markets locally was also supported by the Australian Government’s steps to broaden foreign banks’ participation in Australia’s markets.

    The growth of currency markets enabled non-financial corporations to make use of hedges in support of their trade flows and foreign-currency borrowing. This hedging was in part a response to post-float currency volatility and high-profile losses by unhedged borrowers. Over the 1980s, both the share of firms hedging and the average share of currency exposures hedged increased significantly.

    By the mid-1990s, the internationalisation of the Australian dollar and its capital markets was well advanced. Trading in Australian dollar FX derivatives had risen to $75 billion per day, with about 60 per cent undertaken offshore. Also, foreign entities were issuing debt in Australian dollars in the ‘Kangaroo bond market’. This issuance grew steadily over the 2000s, supported by cross-currency basis swaps, another FX derivative but with longer tenors that enabled better hedging of long-lived foreign currency borrowings.

    Rising demand for Australian dollar assets from international investors enabled Australian businesses to issue debt in Australian dollars. At the same time, Australian banks and businesses issuing in large offshore markets could hedge their foreign currency-denominated debt back into Australian dollars at a modest cost. Both developments greatly reduced the vulnerability of Australian debtors to Australian dollar depreciation.

    The growth in Australian dollar FX markets since the float has been remarkable: it is the sixth most traded currency, even though Australia ranks 13th in economic size. This demonstrates the importance to Australia of FX markets in support of foreign trade and investment. But it also reflects the attractive correlations of the Australian economy (and hence the Australian dollar) with economic developments in Asia, coupled with strong institutional settings in Australia, including the free movement of capital.

    The increasing role of superannuation funds in Australia’s FX markets

    Another key facet of Australia’s external position has been the substantial growth of the net foreign equity position. Australians have steadily accumulated more foreign equity holdings than foreigners have accumulated in Australian equity. Indeed, since 2013 we have had a positive net equity asset position (Graph 3).

    The rise in net equity assets of late has occurred while Australia has been running a current account deficit, creating an unusual situation. Inflows of new liabilities rose with the banks returning to offshore debt markets as the RBA’s Term Funding Facility came to an end. However, a further rise in foreign equity holdings offset this, so net liabilities still declined. Much of the rise in net foreign equities reflects valuation effects from the Australian dollar’s depreciation and rising overseas equity values (Graph 4). Even so, new equity accumulation continues, driven by investment from Australia’s superannuation funds.

    The growth of superannuation funds since 1993 and their rising offshore investments have significantly shaped Australia’s balance of payments. Super funds’ offshore asset allocation has increased from nearly one-third in 2013 to about half in 2024 (Graph 5). As a result, super funds now account for a substantial share of Australia’s capital outflows.

    Purchases of foreign currency assets by superannuation funds expose them to exchange rate fluctuations. Many funds shield their members by partially hedging the foreign exchange rate risk associated with offshore assets via, for example, FX swaps. Given the large increase in super funds’ offshore assets, the extent of foreign currency assets hedged has more than quadrupled since 2013. This has made the super funds natural counterparties to domestic banks, which are hedging their FX exposures arising from issuing debt offshore in foreign currency terms.

    The Foreign Exchange Global Code

    This discussion highlights the increasing role of superannuation funds and their asset managers in FX markets. For FX markets to meet participants’ needs, it is important that they all observe common standards promoting fair and transparent markets. The Foreign Exchange Global Code (Code) fulfills that function.

    With the advent of the Code in 2017, buy-side participants like super funds can have greater confidence in market functioning and the behaviour of their sell-side counterparties. But this is a two-way street: both sell-side and buy-side firms should adhere to the Code’s standards. Moreover, one way for fund managers to demonstrate that they are meeting their fiduciary duties is to adhere to the Code. Encouraging more buy-side participants to sign up is a focus of the Global Foreign Exchange Committee (GFXC).

    To this end, the GFXC has worked hard to explain the process of signing up to the Code. We have emphasised that adoptees can concentrate on those aspects of the Code that are material to their activities, thereby greatly reducing the burden for buy-side firms.

    I will end by acknowledging the sharp rise in volatility in FX markets in early April as markets incorporated announcements about the US administration’s tariffs and the subsequent ebb and flow of related news. The Australian dollar fluctuated within a range of US4 cents, experiencing its largest daily decline of 4.5 per cent against the US dollar outside of the global financial crisis. Also, measures of volatility from FX options increased to levels observed during the pandemic and liquidity deteriorated noticeably. While markets have been more settled of late, such episodes serve as a reminder of the importance of the Code. It enhances trust between market participants and offers standardised and predictable ways of doing business. Hence, the role the Code plays in proper market functioning is even more crucial during periods of great uncertainty when markets are adjusting to significant economic news.

    MIL OSI News –

  • MIL-OSI USA: Agreement on FY 2026 State Budget

    Source: US State of New York

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    April 28, 2025

    Albany, NY

    Governor Kathy Hochul today announced an agreement has been reached with legislative leaders on key priorities in the Fiscal Year 2026 New York State Budget.

    “I promised New Yorkers to fight like hell to put money back in their pockets and make our streets and subways safer. That’s exactly what this budget will do,” Governor Hochul said. “Working with our partners in the Legislature we’ve reached an agreement to pass a balanced, fiscally responsible budget. Good things take time, and this budget is going to make a real difference for New York families.”

    Highlights of the Fiscal Year 2026 Budget include:

    • A $1 billion tax cut for middle-class and low-income New Yorkers, bringing tax rates to their lowest levels in nearly 70 years.
    • Delivering a sweeping increase to the Child Tax Credit by giving eligible families a $1,000 credit for kids younger than 4 years old and a $500 credit for kids ages 4-16, effectively doubling the credit for the average family
    • Expanding access to child care by investing $2.2 billion statewide, including a $350 million investment to save child care subsidies for tens of thousands of New York City families.
    • Sending New York’s first-ever Inflation Refund checks, which will dedicate $2 billion to provide direct cash assistance to more than 8 million New Yorkers with checks of up to $400 per family.
    • Reducing the Payroll Mobility Tax for small businesses, and eliminating it for self-employed individuals earning $150,000 or less.
    • Providing $340 million to ensure free breakfast and lunch for every K-12 student in New York, saving families an average of $1,600 per child.
    • Investing a record $357 million in gun violence prevention programs that have helped drive gun violence down by more than 50% when compared to pandemic-era peaks.
    • Fixing the discovery laws to support victims and survivors, and reduce the number of cases being thrown out on technicalities, while investing $120 million in funding for discovery law compliance for prosecutors and defense attorneys.
    • Creating a new Class B misdemeanor to crack down on individuals who use a mask to conceal their identity when committing a Class A misdemeanor or higher crime or fleeing the scene immediately after committing such a crime.
    • Making our subways safer by investing $77 million for police officers on every overnight subway train, installing platform barriers and LED lighting and allocating $25 million for welcome centers to connect homeless individuals with services and care.
    • Strengthening involuntary commitment, improving Kendra’s Law and investing $16.5 million in Assisted Outpatient Treatment and $2 million in OMH staffing to ensure people with severe mental illness get compassionate care.
    • Strengthening the continuum of mental health care by investing $160 million to create a 100 new forensic inpatient psychiatric beds in New York City.

    “I promised New Yorkers to fight like hell to put money back in their pockets and make our streets and subways safer.”

    Governor Kathy Hochul

    • Setting a statewide bell-to-bell distraction-free schools policy with a $13.5 million investment to help schools operationalize bans on smart phone and other internet enabled devices usage during the school day, making New York the largest state in the nation with a bell-to-bell ban.
    • Investing $47 million to make community college free for adult students pursuing associate degrees in certain high-demand industries.
    • Leveling the playing field for homebuyers by banning private equity purchases within the first 90 days a home is on the market and making investments in Pro-Housing Communities and City of Yes.
    • Making a record $1 billion investment in climate priorities, including assistance to electrify homes, thermal energy networks, EV charging infrastructure and renewable energy projects.
    • Making the biggest capital investment in New York’s transportation history by fully funding the Metropolitan Transportation Authority’s (MTA’s) proposed $68.4 billion 2025-2029 capital plan to build the Interborough Express, crack down on fare evasion and focus on much needed repairs and upgrades.
    • Investing an additional $800 million in the Department of Transportation’s 5-year Capital Plan to support core highway and bridge construction projects.
    • Modernizing the Hudson Valley Rail System to reduce travel time, increase connectivity and strengthen economic connections across the region.

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    With a conceptual agreement in place, the legislative houses are expected to pass bills that will enact these priorities in the coming days. Based on a preliminary assessment of the negotiated changes to the Executive proposal, the total Budget for FY 2026 is currently estimated at $254 billion. The FY 2026 Budget does not raise income or statewide business taxes, maintains record State reserves to safeguard state finances and grants the Governor the powers necessary to make future adjustments if actions by the federal government require.

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    MIL OSI USA News –

  • MIL-OSI: Farmers & Merchants Bancorp, Inc. Reports 2025 First-Quarter Financial Results

    Source: GlobeNewswire (MIL-OSI)

    ARCHBOLD, Ohio, April 28, 2025 (GLOBE NEWSWIRE) — Farmers & Merchants Bancorp, Inc. (Nasdaq: FMAO) today reported financial results for the 2025 first quarter ended March 31, 2025.

    2025 First Quarter Financial and Operating Highlights
    (at March 31, 2025 and on a year-over-year basis unless noted)

    • 88 consecutive quarters of profitability
    • Total interest income increased 6.1% to $41.0 million, driven by a 19-basis point improvement in the yield on earning assets and a higher average loan balance
    • Total loans increased by $40.5 million, or 1.6% to $2.58 billion
    • Total assets increased by $101.2 million, or 3.1% to $3.39 billion
    • Total deposits increased by $78.9 million, or 3.0% to $2.70 billion
    • Efficiency ratio improved to 66.79%, compared to 74.08%
    • Pre-tax, pre-provision income increased 49.6% to $9.3 million, from $6.2 million
    • Net income increased 29.7% to $7.0 million, or $0.51 per basic and diluted share
    • Asset quality remains at historically strong levels with nonperforming loans of only $4.5 million and net charge-offs to average loans of 0.01%
    • Tier 1 leverage ratio was 8.44%

    Lars B. Eller, President and Chief Executive Officer, stated, “2025 is off to a solid start, reflecting the positive impacts our strategic priorities are having on our financial performance. Throughout the first quarter we made progress enhancing profitability, controlling growth, driving innovation, and achieving greater operational efficiency. Most importantly, our strong first-quarter results underscore the excellent execution by our team and F&M’s ongoing commitment to delivering local, personalized financial services to our communities in Ohio, Indiana, and Michigan.”

    Mr. Eller continued, “For the first quarter of 2025 our net interest margin grew 43-basis points year-over year to 3.03% and increased 19-basis points from the fourth quarter of 2024. This growth demonstrates the benefits of continued loan repricing, as well as our disciplined approach to new loan originations and strategic efforts underway to improve our cost of funds. Total revenue – defined by net interest income plus noninterest income – increased 16.7% year-over-year, while noninterest expense rose 5.2%. This favorable spread strengthened our efficiency ratio and drove a 49.6% increase in pre-tax, pre-provision income. As we continue to successfully execute against our 2025 strategic priorities, we expect continued year-over-year growth in net income.”

    Income Statement
    Net income for the 2025 first quarter ended March 31, 2025, was $7.0 million, compared to $5.4 million for the same period last year. Net income per basic and diluted share for the 2025 first quarter was $0.51, compared to $0.39 for the same period last year.

    Deposits
    At March 31, 2025, total deposits were $2.70 billion, an increase of 3.0% from March 31, 2024. The Company’s cost of interest-bearing liabilities was 2.76% for the quarter ended March 31, 2025, compared to 3.06% for the quarter ended March 31, 2024.

    Mr. Eller commented, “We continue to pursue opportunities that optimize our deposit base and grow low-cost checking deposits. As a result, more expensive time-account balances have declined year-over-year by $19.5 million, while total deposits have increased by $78.9 million reflecting growth in lower cost core deposits. These trends have reduced our cost of funds, while improving our loan-to-deposit ratio.”

    Loan Portfolio and Asset Quality
    “Offices opened in 2023 continue to add new loans and new deposits at a faster pace than our legacy locations, which we believe demonstrates the need for the local community banking services F&M provides. Overall, we are experiencing stable demand across all of our markets, as a result of the addition of proven bankers to our team, our regional structure, new financial products, and growing commercial relationships. Positive demand trends allow us to control growth, expand our yield on loans, and maintain excellent asset quality. Our credit quality remains strong with nonperforming loans to total loans of just 0.17% at March 31, 2025 – the fourth quarter in a row this metric has remained below 0.20%,” continued Mr. Eller.

    Total loans, net at March 31, 2025, increased 1.6%, or by $40.5 million to $2.58 billion, compared to $2.54 billion at March 31, 2024. The year-over-year increase was driven primarily by higher agricultural, commercial and industrial, and commercial real estate loans, partially offset primarily by lower consumer, agricultural real estate, and consumer real estate loans. Compared to the quarter ended December 31, 2024, total loans, net at March 31, 2025, increased by 0.8% or $20.0 million.

    F&M continues to closely monitor its loan portfolio with a particular emphasis on higher risk sectors. Nonperforming loans were $4.5 million, or 0.17% of total loans at March 31, 2025, compared to $19.4 million, or 0.76% of total loans at March 31, 2024, and $3.1 million, or 0.12% at December 31, 2024.

    F&M maintains a well-balanced, diverse and high performing CRE portfolio. CRE loans represented 51.3% of the Company’s total loan portfolio at March 31, 2025. In addition, F&M’s commercial real estate office credit exposure represented 5.4% of the Company’s total loan portfolio at March 31, 2025, with a weighted average loan-to-value of approximately 63% and an average loan of approximately $965,366.

    F&M’s CRE portfolio included the following categories at March 31, 2025:

    CRE Category

    		  

    Dollar
    Balance

    		   Percent of
    CRE
    Portfolio    (*)    		   Percent of
    Total Loan
    Portfolio    (*)
                 
    Industrial   $ 281,484   21.2%   10.9%
    Multi-family     217,903   16.4%   8.4%
    Retail     213,281   16.1%   8.3%
    Hotels     157,139   11.8%   6.1%
    Office     139,069   10.5%   5.4%
    Gas Stations     70,983   5.3%   2.7%
    Food Service     52,827   4.0%   2.0%
    Senior Living     31,400   2.4%   1.2%
    Development     29,907   2.3%   1.2%
    Auto Dealers     27,294   2.1%   1.1%
    Other     104,411   7.9%   4.0%
    Total CRE   $ 1,325,698   100.0%   51.3%
                   

    * Numbers have been rounded

    At March 31, 2025, the Company’s allowance for credit losses to nonperforming loans was 586.38%, compared to 127.28% at March 31, 2024. The allowance to total loans was 1.07% at March 31, 2025, compared to 1.05% at March 31, 2024. Including accretable yield adjustments, associated with the Company’s prior acquisitions, F&M’s allowance for credit losses to total loans was 1.08% at March 31, 2025, compared to 1.11% at March 31, 2024.

    Mr. Eller concluded, “While the near-term economic environment has become more fluid, we believe F&M is in a strong position because of the platform we have built and the strategies we are pursuing to transform our business in 2025. As a result, we continue to believe 2025 will be another good year for F&M.”

    Stockholders’ Equity and Dividends
    Total stockholders’ equity increased 8.5% to $344.6 million, or $25.12 per share at March 31, 2025, from $317.7 million, or $23.22 per share at March 31, 2024. The Company had a Tier 1 leverage ratio of 8.44%, compared to 8.40% at March 31, 2024.

    Tangible stockholders’ equity increased to $263.0 million at March 31, 2025, compared to $256.5 million at March 31, 2024. On a per share basis, tangible stockholders’ equity at March 31, 2025, was $19.17 per share, compared to $18.75 per share at March 31, 2024.

    For the three months ended March 31, 2025, the Company declared cash dividends of $0.22125 per share, representing a 0.6% increase over the same period last year. F&M is committed to returning capital to shareholders and has increased the annual cash dividend for 30 consecutive years. For the three months ended March 31, 2025, the dividend payout ratio was 43.10% compared to 55.52% for the same period last year.

    About Farmers & Merchants State Bank:
    F&M Bank is a local independent community bank that has been serving its communities since 1897. F&M Bank provides commercial banking, retail banking and other financial services. Our locations are in Butler, Champaign, Fulton, Defiance, Hancock, Henry, Lucas, Shelby, Williams, and Wood counties in Ohio. In Northeast Indiana, we have offices located in Adams, Allen, DeKalb, Jay, Steuben and Wells counties. The Michigan footprint includes Oakland County, and we have Loan Production Offices in Troy, Michigan; Muncie, Indiana; and Perrysburg and Bryan, Ohio.

    Safe Harbor Statement
    Farmers & Merchants Bancorp, Inc. (“F&M”) wishes to take advantage of the Safe Harbor provisions included in the Private Securities Litigation Reform Act of 1995. Statements by F&M, including management’s expectations and comments, may not be based on historical facts and are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21B of the Securities Exchange Act of 1934, as amended. Actual results could vary materially depending on risks and uncertainties inherent in general and local banking conditions, competitive factors specific to markets in which F&M and its subsidiaries operate, future interest rate levels, legislative and regulatory decisions, capital market conditions, or the effects of the COVID-19 pandemic, and its impacts on our credit quality and business operations, as well as its impact on general economic and financial market conditions. F&M assumes no responsibility to update this information. For more details, please refer to F&M’s SEC filing, including its most recent Annual Report on Form 10-K and quarterly reports on Form 10-Q. Such filings can be viewed at the SEC’s website, www.sec.gov or through F&M’s website www.fm.bank.

    Non-GAAP Financial Measures
    This press release includes disclosure of financial measures not prepared in accordance with generally accepted accounting principles in the United States (GAAP). A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed by GAAP. Farmers & Merchants Bancorp, Inc. believes that these non-GAAP financial measures provide both management and investors a more complete understanding of the underlying operational results and trends and Farmers & Merchants Bancorp, Inc.’s marketplace performance. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the numbers prepared in accordance with GAAP. A reconciliation of GAAP to non-GAAP financial measures is included within this press release.

    FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF INCOME & COMPREHENSIVE INCOME
    (Unaudited) (in thousands of dollars, except per share data)
     
      Three Months Ended
      March 31, 2025   December 31, 2024   September 30, 2024   June 30, 2024   March 31, 2024
    Interest Income                  
    Loans, including fees $ 37,072     $ 36,663     $ 36,873     $ 36,593     $ 35,200  
    Debt securities:                  
    U.S. Treasury and government agencies   2,097       1,882       1,467       1,148       1,045  
    Municipalities   382       384       387       389       394  
    Dividends   338       367       334       327       333  
    Federal funds sold   –       24       7       7       7  
    Other   1,113       2,531       2,833       2,702       1,675  
    Total interest income   41,002       41,851       41,901       41,166       38,654  
    Interest Expense                  
    Deposits   13,988       15,749       16,947       16,488       15,279  
    Federal funds purchased and securities sold under agreements to repurchase   271       274       277       276       284  
    Borrowed funds   2,550       2,713       2,804       2,742       2,689  
    Subordinated notes   284       285       284       285       284  
    Total interest expense   17,093       19,021       20,312       19,791       18,536  
    Net Interest Income – Before Provision for Credit Losses   23,909       22,830       21,589       21,375       20,118  
    Provision for (Recovery of) Credit Losses – Loans   811       346       282       605       (289 )
    Recovery of Credit Losses – Off Balance Sheet Exposures   (260 )     (120 )     (267 )     (18 )     (266 )
    Net Interest Income After Provision for Credit Losses   23,358       22,604       21,574       20,788       20,673  
    Noninterest Income                  
    Customer service fees   381       237       300       189       598  
    Other service charges and fees   1,124       1,176       1,155       1,085       1,057  
    Interchange income   1,421       1,322       1,315       1,330       1,429  
    Loan servicing income   762       771       710       513       539  
    Net gain on sale of loans   284       223       215       314       107  
    Increase in cash surrender value of bank owned life insurance   244       248       265       236       216  
    Net gain (loss) on sale of other assets owned   (54 )     22       –       49       –  
    Total noninterest income   4,162       3,999       3,960       3,716       3,946  
    Noninterest Expense                  
    Salaries and wages   7,878       7,020       7,713       7,589       7,846  
    Employee benefits   2,404       2,148       2,112       2,112       2,171  
    Net occupancy expense   1,199       1,072       1,054       999       1,027  
    Furniture and equipment   1,278       1,032       1,472       1,407       1,353  
    Data processing   557       160       339       448       500  
    Franchise taxes   397       312       410       265       555  
    ATM expense   491       328       472       397       473  
    Advertising   503       498       597       519       530  
    FDIC assessment   465       505       516       507       580  
    Servicing rights amortization – net   127       244       219       187       168  
    Loan expense   228       236       244       251       229  
    Consulting fees   745       242       251       198       186  
    Professional fees   559       368       453       527       445  
    Intangible asset amortization   445       446       445       444       445  
    Other general and administrative   1,484       1,465       1,128       1,495       1,333  
    Total noninterest expense   18,760       16,076       17,425       17,345       17,841  
    Income Before Income Taxes   8,760       10,527       8,109       7,159       6,778  
    Income Taxes   1,808       2,146       1,593       1,477       1,419  
    Net Income   6,952       8,381       6,516       5,682       5,359  
    Other Comprehensive Income (Loss) (Net of Tax):                  
    Net unrealized gain (loss) on available-for-sale securities   6,464       (7,403 )     11,664       2,531       (1,995 )
    Reclassification adjustment for realized loss on sale of available-for-sale securities   –       –       –       –       –  
    Net unrealized gain (loss) on available-for-sale securities   6,464       (7,403 )     11,664       2,531       (1,995 )
    Tax expense (benefit)   1,358       (1,554 )     2,449       531       (418 )
    Other comprehensive income (loss)   5,106       (5,849 )     9,215       2,000       (1,577 )
    Comprehensive Income $ 12,058     $ 2,532     $ 15,731     $ 7,682     $ 3,782  
    Basic Earnings Per Share $ 0.51     $ 0.61     $ 0.48     $ 0.42     $ 0.39  
    Diluted Earnings Per Share $ 0.51     $ 0.61     $ 0.48     $ 0.42     $ 0.39  
    Dividends Declared $ 0.22125     $ 0.22125     $ 0.22125     $ 0.22     $ 0.22  
                       
    FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (Unaudited) (in thousands of dollars, except share data)
     
      March 31, 2025   December 31, 2024   September 30, 2024   June 30, 2024   March 31, 2024
      (Unaudited)       (Unaudited)   (Unaudited)   (Unaudited)
    Assets                  
    Cash and due from banks $ 172,612     $ 174,855     $ 244,572     $ 191,785     $ 186,541  
    Federal funds sold   425       1,496       932       1,283       1,241  
    Total cash and cash equivalents   173,037       176,351       245,504       193,068       187,782  
                       
    Interest-bearing time deposits   1,992       2,482       2,727       3,221       2,735  
    Securities – available-for-sale   438,568       426,556       404,881       365,209       347,516  
    Other securities, at cost   14,062       14,400       15,028       14,721       14,744  
    Loans held for sale   2,331       2,996       1,706       1,628       2,410  
    Loans, net of allowance for credit losses   2,555,552       2,536,043       2,512,852       2,534,468       2,516,687  
    Premises and equipment   33,163       33,828       33,779       34,507       35,007  
    Construction in progress   –       –       35       38       9  
    Goodwill   86,358       86,358       86,358       86,358       86,358  
    Loan servicing rights   5,805       5,656       5,644       5,504       5,555  
    Bank owned life insurance   35,116       34,872       34,624       34,359       34,123  
    Other assets   42,802       45,181       46,047       49,552       54,628  
                       
    Total Assets $ 3,388,786     $ 3,364,723     $ 3,389,185     $ 3,322,633     $ 3,287,554  
                       
    Liabilities and Stockholders’ Equity                  
    Liabilities                  
    Deposits                  
    Noninterest-bearing $ 502,318     $ 516,904     $ 481,444     $ 479,069     $ 510,731  
    Interest-bearing                  
    NOW accounts   874,881       850,462       865,617       821,145       829,236  
    Savings   696,635       671,818       661,565       673,284       635,430  
    Time   626,450       647,581       676,187       667,592       645,985  
    Total deposits   2,700,284       2,686,765       2,684,813       2,641,090       2,621,382  
                       
    Federal funds purchased and securities                  
    sold under agreements to repurchase   27,258       27,218       27,292       27,218       28,218  
    Federal Home Loan Bank (FHLB) advances   245,474       246,056       263,081       266,102       256,628  
    Subordinated notes, net of unamortized issuance costs   34,846       34,818       34,789       34,759       34,731  
    Dividend payable   2,997       2,996       2,998       2,975       2,975  
    Accrued expenses and other liabilities   33,326       31,659       40,832       27,825       25,930  
    Total liabilities   3,044,185       3,029,512       3,053,805       2,999,969       2,969,864  
                       
    Commitments and Contingencies                  
                       
    Stockholders’ Equity                  
    Common stock – No par value 20,000,000 shares authorized; issued                  
    14,564,425 shares 3/31/25 and 12/31/24; outstanding 13,718,336 shares 3/31/25 and 13,699,536 shares 12/31/24   135,407       135,565       135,193       135,829       135,482  
    Treasury stock – 846,089 shares 3/31/25 and 864,889 shares 12/31/24   (10,768 )     (10,985 )     (10,904 )     (11,006 )     (10,851 )
    Retained earnings   240,079       235,854       230,465       226,430       223,648  
    Accumulated other comprehensive loss   (20,117 )     (25,223 )     (19,374 )     (28,589 )     (30,589 )
    Total stockholders’ equity   344,601       335,211       335,380       322,664       317,690  
                       
    Total Liabilities and Stockholders’ Equity $ 3,388,786     $ 3,364,723     $ 3,389,185     $ 3,322,633     $ 3,287,554  
                       
    FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES
    SELECT FINANCIAL DATA
                                   
        For the Three Months Ended
    Selected financial data   March 31, 2025   December 31, 2024   September 30, 2024   June 30, 2024   March 31, 2024
    Return on average assets     0.85 %     0.99 %     0.78 %     0.69 %     0.66 %
    Return on average equity     8.31 %     10.00 %     7.93 %     7.13 %     6.76 %
    Yield on earning assets     5.19 %     5.20 %     5.27 %     5.22 %     5.00 %
    Cost of interest bearing liabilities     2.76 %     3.01 %     3.21 %     3.18 %     3.06 %
    Net interest spread     2.43 %     2.19 %     2.06 %     2.04 %     1.94 %
    Net interest margin     3.03 %     2.84 %     2.71 %     2.71 %     2.60 %
    Efficiency ratio     66.79 %     59.82 %     67.98 %     69.03 %     74.08 %
    Dividend payout ratio     43.10 %     35.75 %     45.99 %     52.35 %     55.52 %
    Tangible book value per share   $ 17.71     $ 17.74     $ 17.72     $ 16.79     $ 16.51  
    Tier 1 leverage ratio     8.44 %     8.12 %     8.04 %     8.02 %     8.40 %
    Average shares outstanding     13,706,003       13,699,869       13,687,119       13,681,501       13,671,166  
                                   
    Loans   March 31, 2025   December 31, 2024   September 30, 2024   June 30, 2024   March 31, 2024
    (Dollar amounts in thousands)                              
    Commercial real estate   $ 1,325,698     $ 1,310,811     $ 1,301,160     $ 1,303,598     $ 1,304,400  
    Agricultural real estate     215,898       216,401       220,328       222,558       227,455  
    Consumer real estate     523,383       520,114       524,055       525,902       525,178  
    Commercial and industrial     278,254       275,152       260,732       268,426       256,051  
    Agricultural     153,607       152,080       137,252       142,909       127,670  
    Consumer     60,115       63,009       67,394       70,918       74,819  
    Other     24,985       24,978       25,916       26,449       26,776  
    Less: Net deferred loan fees, costs and other (1)     (36 )     (676 )     1,499       (1,022 )     (982 )
    Total loans, net   $ 2,581,904     $ 2,561,869     $ 2,538,336     $ 2,559,738     $ 2,541,367  
                                   
                                   
    Asset quality data   March 31, 2025   December 31, 2024   September 30, 2024   June 30, 2024   March 31, 2024
    (Dollar amounts in thousands)                              
    Nonaccrual loans   $ 4,494     $ 3,124     $ 2,898     $ 2,487     $ 19,391  
    90 day past due and accruing   $ –     $ –     $ –     $ –     $ –  
    Nonperforming loans   $ 4,494     $ 3,124     $ 2,898     $ 2,487     $ 19,391  
    Other real estate owned   $ –     $ –     $ –     $ –     $ –  
    Nonperforming assets   $ 4,494     $ 3,124     $ 2,898     $ 2,487     $ 19,391  
                                   
                                   
    Allowance for credit losses – loans   $ 26,352     $ 25,826     $ 25,484     $ 25,270     $ 24,680  
    Allowance for credit losses – off balance sheet credit exposures     1,281       1,541       1,661       1,928       1,946  
    Total allowance for credit losses   $ 27,633     $ 27,367     $ 27,145     $ 27,198     $ 26,626  
    Total allowance for credit losses/total loans     1.07 %     1.07 %     1.07 %     1.06 %     1.05 %
    Adjusted credit losses with accretable yield/total loans     1.08 %     1.08 %     1.10 %     1.10 %     1.11 %
    Net charge-offs:                              
    Quarter-to-date   $ 285     $ 4     $ 68     $ 15     $ 55  
    Year-to-date   $ 285     $ 142     $ 138     $ 70     $ 55  
    Net charge-offs to average loans                              
    Quarter-to-date     0.01 %     0.00 %     0.00 %     0.00 %     0.00 %
    Year-to-date     0.01 %     0.01 %     0.01 %     0.00 %     0.00 %
    Nonperforming loans/total loans     0.17 %     0.12 %     0.11 %     0.10 %     0.76 %
    Allowance for credit losses/nonperforming loans     586.38 %     826.70 %     879.37 %     1016.08 %     127.28 %
    NPA coverage ratio     586.38 %     826.70 %     879.37 %     1016.08 %     127.28 %
                                   
    (1) Includes carrying value adjustments of $1.7 million as of March 31, 2025, $1.1 million as of December 31, 2024, $3.0 million as of September 30, 2024, $612 thousand as of June 30, 2024, and $969 thousand as of March 31, 2024 related to interest rate swaps associated with fixed rate loans
                                   
    FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES
    AVERAGE BALANCE SHEETS AND RELATED YIELDS AND RATES
    (in thousands of dollars, except percentages)
                       
                           
      For the Three Months Ended   For the Three Months Ended
      March 31, 2025   March 31, 2024
    Interest Earning Assets: Average Balance   Interest/Dividends   Annualized
    Yield/Rate    		   Average Balance   Interest/Dividends   Annualized
    Yield/Rate
    Loans $ 2,578,531   $ 37,072   5.75%   $ 2,577,114   $ 35,200   5.46%
    Taxable investment securities   458,519     2,739   2.39%     384,928     1,686   1.75%
    Tax-exempt investment securities   18,310     78   2.16%     21,109     86   2.06%
    Fed funds sold & other   105,770     1,113   4.21%     110,388     1,682   6.09%
    Total Interest Earning Assets   3,161,130   $ 41,002   5.19%     3,093,539   $ 38,654   5.00%
                           
    Nonearning Assets   166,630             159,240        
                           
    Total Assets $ 3,327,760           $ 3,252,779        
                           
    Interest Bearing Liabilities:                      
    Savings deposits $ 1,543,665   $ 8,564   2.22%   $ 1,443,530   $ 9,407   2.61%
    Other time deposits   627,498     5,424   3.46%     650,580     5,872   3.61%
    Other borrowed money   245,734     2,550   4.15%     263,280     2,689   4.09%
    Fed funds purchased & securities                      
    sold under agreement to repurchase   27,480     271   3.94%     28,458     284   3.99%
    Subordinated notes   34,828     284   3.26%     34,712     284   3.27%
    Total Interest Bearing Liabilities $ 2,479,205   $ 17,093   2.76%   $ 2,420,560   $ 18,536   3.06%
                           
    Noninterest Bearing Liabilities   509,190             514,986        
                           
    Stockholders’ Equity $ 339,365           $ 317,233        
                           
    Net Interest Income and Interest Rate Spread     $ 23,909   2.43%       $ 20,118   1.94%
                           
    Net Interest Margin         3.03%           2.60%
                           
    Yields on Tax exempt securities and the portion of the tax-exempt IDB loans included in loans have been tax adjusted based on a 21% tax rate in the charts    
                           
    FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES
    AVERAGE BALANCE SHEETS AND RELATED YIELDS AND RATES
    (in thousands of dollars, except percentages)
                                       
      For the Three Months Ended March 31, 2025   For the Three Months Ended March 31, 2024
      As Reported   Excluding Acc/Amort Difference   As Reported   Excluding Acc/Amort Difference
      $ Yield   $ Yield   $ Yield   $ Yield   $ Yield   $ Yield
    Interest Earning Assets:                                  
    Loans $ 37,072 5.75 %   $ 36,468 5.66 %   $ 604 0.09 %   $ 35,200 5.46 %   $ 34,525 5.36 %   $ 675   0.10 %
    Taxable investment securities   2,739 2.39 %     2,739 2.39 %     – 0.00 %     1,686 1.75 %     1,686 1.75 %     –   0.00 %
    Tax-exempt investment securities   78 2.16 %     78 2.16 %     – 0.00 %     86 2.06 %     86 2.06 %     –   0.00 %
    Fed funds sold & other   1,113 4.21 %     1,113 4.21 %     – 0.00 %     1,682 6.09 %     1,682 6.09 %     –   0.00 %
    Total Interest Earning Assets   41,002 5.19 %     40,398 5.11 %     604 0.08 %     38,654 5.00 %     37,979 4.92 %     675   0.08 %
                                       
    Interest Bearing Liabilities:                                  
    Savings deposits $ 8,564 2.22 %   $ 8,564 2.22 %   $ – 0.00 %   $ 9,407 2.61 %   $ 9,407 2.61 %   $ –   0.00 %
    Other time deposits   5,424 3.46 %     5,424 3.46 %     – 0.00 %     5,872 3.61 %     5,872 3.61 %     –   0.00 %
    Other borrowed money   2,550 4.15 %     2,547 4.15 %     3 0.00 %     2,689 4.09 %     2,707 4.11 %     (18 ) -0.02 %
    Federal funds purchased and                                  
    securities sold under agreement to                                  
    repurchase   271 3.94 %     271 3.94 %     – 0.00 %     284 3.99 %     284 3.99 %     –   0.00 %
    Subordinated notes   284 3.26 %     284 3.26 %     – 0.00 %     284 3.27 %     284 3.27 %     –   0.00 %
    Total Interest Bearing Liabilities   17,093 2.76 %     17,090 2.76 %     3 -0.00 %     18,536 3.06 %     18,554 3.07 %     (18 ) -0.01 %
                                       
    Interest/Dividend income/yield   41,002 5.19 %     40,398 5.11 %     604 0.08 %     38,654 5.00 %     37,979 4.92 %     675   0.08 %
    Interest Expense / yield   17,093 2.76 %     17,090 2.76 %     3 -0.00 %     18,536 3.06 %     18,554 3.07 %     (18 ) -0.01 %
    Net Interest Spread   23,909 2.43 %     23,308 2.35 %     601 0.08 %     20,118 1.94 %     19,425 1.85 %     693   0.09 %
    Net Interest Margin   3.03 %     2.95 %     0.08 %     2.60 %     2.52 %     0.08 %
                                       
    Company Contact: Investor and Media Contact:
    Lars B. Eller
    President and Chief Executive Officer
    Farmers & Merchants Bancorp, Inc.
    (419) 446-2501
    leller@fm.bank    		 Andrew M. Berger
    Managing Director
    SM Berger & Company, Inc.
    (216) 464-6400
    andrew@smberger.com

    The MIL Network –

  • MIL-OSI: Brown & Brown, Inc. announces first quarter 2025 results, including total revenues of $1.4 billion, an increase of 11.6%; Organic Revenue growth of 6.5%; diluted net income per share of $1.15; Diluted Net Income Per Share – Adjusted of $1.29; and a quarterly dividend of $0.15 per share

    Source: GlobeNewswire (MIL-OSI)

    DAYTONA BEACH, Fla., April 28, 2025 (GLOBE NEWSWIRE) — Brown & Brown, Inc. (NYSE:BRO) (the “Company”) announced its unaudited financial results for the first quarter 2025.

    Revenues for the first quarter of 2025 under U.S. generally accepted accounting principles (“GAAP”) were $1.4 billion, increasing $146 million, or 11.6%, compared to the first quarter of the prior year, with commissions and fees increasing by 12.0% and Organic Revenue increasing by 6.5%. Income before income taxes was $427 million, increasing 17.3% from the first quarter of the prior year with Income Before Income Taxes Margin increasing to 30.4% from 28.9%. EBITDAC – Adjusted was $535 million, increasing 14.8% from the first quarter of the prior year with EBITDAC Margin – Adjusted increasing to 38.1% from 37.0%. Net income attributable to the Company was $331 million, increasing $38 million, or 13.0%, and diluted net income per share increased to $1.15, or 12.7%, with Diluted Net Income Per Share – Adjusted increasing to $1.29, or 13.2%, each as compared to the first quarter of the prior year.

    J. Powell Brown, president and chief executive officer of the Company, noted, “We continue to execute our plan and are pleased with our performance for the quarter.”

    In addition, the Company today announced that the Board of Directors has declared a regular quarterly cash dividend of $0.15 per share. The dividend is payable on May 21, 2025, to shareholders of record on May 12, 2025.

    Reconciliation of Commissions and Fees
    to Organic Revenue
    (in millions, unaudited)
         
      Three Months Ended March 31,  
      2025     2024  
    Commissions and fees $ 1,385     $ 1,237  
    Profit-sharing contingent commissions   (43 )     (46 )
    Core commissions and fees $ 1,342     $ 1,191  
    Acquisitions   (79 )      
    Dispositions         (3 )
    Foreign Currency Translation         (2 )
    Organic Revenue $ 1,263     $ 1,186  
    Organic Revenue growth $ 77        
    Organic Revenue growth %   6.5 %      
                 

    See information regarding non-GAAP measures presented later in this press release.

    Reconciliation of Diluted Net Income Per Share to
    Diluted Net Income Per Share – Adjusted
    (unaudited)
     
      Three Months Ended March 31,   Change
      2025   2024   $   %
    Diluted net income per share $ 1.15     $ 1.02     $ 0.13       12.7 %
    Change in estimated acquisition earn-out payables   (0.01 )     (0.01 )     —        
    (Gain)/loss on disposal   —       0.01       (0.01 )      
    Amortization   0.15       0.12       0.03        
    Diluted Net Income Per Share – Adjusted $ 1.29     $ 1.14     $ 0.15       13.2 %
                                   

    See information regarding non-GAAP measures presented later in this press release.

    Reconciliation of Income Before Income Taxes to EBITDAC and
    EBITDAC – Adjusted and Income Before Income Taxes Margin(1)to
    EBITDAC Margin and EBITDAC Margin – Adjusted
    (in millions, unaudited)
     
      Three Months Ended March 31,  
      2025   2024
    Total revenues $ 1,404     $ 1,258  
    Income before income taxes $ 427     $ 364  
    Income Before Income Taxes Margin(1)   30.4 %     28.9 %
    Amortization   53       43  
    Depreciation   11       11  
    Interest   46       48  
    Change in estimated acquisition earn-out payables   (4 )     (2 )
    EBITDAC $ 533     $ 464  
    EBITDAC Margin   38.0 %     36.9 %
    (Gain)/loss on disposal   2       2  
    EBITDAC – Adjusted $ 535     $ 466  
    EBITDAC Margin – Adjusted   38.1 %     37.0 %
                   

    (1)  “Income Before Income Taxes Margin” is defined as income before income taxes divided by total revenues.

    See information regarding non-GAAP measures presented later in this press release.

    Brown & Brown, Inc.
    Consolidated Statements of Income
    (in millions, except per share data; unaudited)
     
      Three Months Ended March 31,  
      2025     2024  
    REVENUES          
    Commissions and fees $ 1,385     $ 1,237  
    Investment and other income   19       21  
    Total revenues   1,404       1,258  
    EXPENSES          
    Employee compensation and benefits   683       631  
    Other operating expenses   186       161  
    Loss on disposal   2       2  
    Amortization   53       43  
    Depreciation   11       11  
    Interest   46       48  
    Change in estimated acquisition earn-out payables   (4 )     (2 )
    Total expenses   977       894  
    Income before income taxes   427       364  
    Income taxes   93       71  
    Net income before non-controlling interests   334       293  
    Less: Net income attributable to non-controlling interests   3       —  
    Net income attributable to the Company $ 331     $ 293  
    Net income per share:          
    Basic $ 1.16     $ 1.03  
    Diluted $ 1.15     $ 1.02  
    Weighted average number of shares outstanding:          
    Basic   283       281  
    Diluted   285       283  
                   
    Brown & Brown, Inc.
    Consolidated Balance Sheets
    (in millions, except per share data, unaudited)
     
      March 31,
    2025    		     December 31,
    2024    		  
    ASSETS          
    Current assets:          
    Cash and cash equivalents $ 669     $ 675  
    Fiduciary cash   1,771       1,827  
    Commission, fees, and other receivables   1,083       895  
    Fiduciary receivables   1,136       1,116  
    Reinsurance recoverable   447       1,527  
    Prepaid reinsurance premiums   480       520  
    Other current assets   331       364  
    Total current assets   5,917       6,924  
    Fixed assets, net   327       319  
    Operating lease assets   197       200  
    Goodwill   8,111       7,970  
    Amortizable intangible assets, net   1,821       1,814  
    Other assets   387       385  
    Total assets $ 16,760     $ 17,612  
    LIABILITIES AND EQUITY          
    Current liabilities:          
    Fiduciary liabilities $ 2,907     $ 2,943  
    Losses and loss adjustment reserve   462       1,543  
    Unearned premiums   542       577  
    Accounts payable   481       373  
    Accrued expenses and other liabilities   463       653  
    Current portion of long-term debt   75       225  
    Total current liabilities   4,930       6,314  
    Long-term debt less unamortized discount and debt issuance costs   3,731       3,599  
    Operating lease liabilities   186       189  
    Deferred income taxes, net   701       711  
    Other liabilities   371       362  
    Equity:          
    Common stock, par value $0.10 per share; authorized 560 shares; issued 306 shares and outstanding 287 shares at 2025, issued 306 shares and outstanding 286 shares at 2024, respectively   31       31  
    Additional paid-in capital   1,107       1,118  
    Treasury stock, at cost 20 shares at 2025 and 2024   (748 )     (748 )
    Accumulated other comprehensive loss   15       (109 )
    Non-controlling interests   20       17  
    Retained earnings   6,416       6,128  
    Total equity   6,841       6,437  
    Total liabilities and equity $ 16,760     $ 17,612  
                   
    Brown & Brown, Inc.
    Consolidated Statements of Cash Flows
    (in millions, unaudited)
         
      Three Months Ended March 31,  
      2025   2024
    Cash flows from operating activities:          
    Net income before non-controlling interests $ 334     $ 293  
    Adjustments to reconcile net income before non-controlling interests to net cash provided by operating activities:          
    Amortization   53       43  
    Depreciation   11       11  
    Non-cash stock-based compensation   29       29  
    Change in estimated acquisition earn-out payables   (4 )     (2 )
    Deferred income taxes   (10 )     (1 )
    Net loss on sales/disposals of investments, businesses, fixed assets and customer accounts   2       2  
    Payments on acquisition earn-outs in excess of original estimated payables   —       (13 )
    Other   2       —  
    Changes in operating assets and liabilities, net of effect from acquisitions and divestitures:          
    Commissions, fees and other receivables (increase)/decrease   (180 )     (142 )
    Reinsurance recoverable (increase)/decrease   1,080       60  
    Prepaid reinsurance premiums (increase)/decrease   40       33  
    Other assets (increase)/decrease   35       —  
    Losses and loss adjustment reserve increase/(decrease)   (1,081 )     (59 )
    Unearned premiums increase/(decrease)   (35 )     25  
    Accounts payable increase/(decrease)   126       (86 )
    Accrued expenses and other liabilities increase/(decrease)   (195 )     (186 )
    Other liabilities increase/(decrease)   6       6  
    Net cash provided by operating activities   213       13  
    Cash flows from investing activities:          
    Additions to fixed assets   (17 )     (13 )
    Payments for businesses acquired, net of cash acquired   (67 )     (76 )
    Proceeds from sales of businesses, fixed assets and customer accounts   9       —  
    Other investing activities   (4 )     1  
    Net cash used in investing activities   (79 )     (88 )
    Cash flows from financing activities:          
    Fiduciary receivables and liabilities, net   (90 )     (26 )
    Payments on acquisition earn-outs   (26 )     (39 )
    Payments on long-term debt   (169 )     (13 )
    Borrowings on revolving credit facility   150       150  
    Payments on revolving credit facility   —       (50 )
    Repurchase shares to fund tax withholdings for non-cash stock-based compensation   (40 )     (54 )
    Cash dividends paid   (43 )     (38 )
    Other financing activities   —       3  
    Net cash used in financing activities   (218 )     (67 )
    Effect of foreign exchange rate changes in cash and cash equivalents inclusive of fiduciary cash   22       (11 )
    Net decrease in cash and cash equivalents inclusive of fiduciary cash   (62 )     (153 )
    Cash and cash equivalents inclusive of fiduciary cash at beginning of period   2,502       2,303  
    Cash and cash equivalents inclusive of fiduciary cash at end of period $ 2,440     $ 2,150  
                   

    Conference call, webcast and slide presentation

    A conference call to discuss the results of the first quarter of 2025 will be held on Tuesday, April 29, 2025, at 8:00 AM (EDT). The Company may refer to a slide presentation during its conference call. You can access the webcast and the slides from the “Investor Relations” section of the Company’s website at bbrown.com.

    About Brown & Brown

    Brown & Brown, Inc. (NYSE: BRO) is a leading insurance brokerage firm providing enhanced customer-centric risk management solutions since 1939. With a global presence spanning 500+ locations and a team of more than 17,000 professionals, we are dedicated to delivering scalable, innovative strategies for our customers at every step of their growth journey. Learn more at bbrown.com.

    Forward-looking statements

    This press release may contain certain statements relating to future results which are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which are intended to be covered by the safe harbors created by those laws. You can identify these statements by forward-looking words such as “may,” “will,” “should,” “expect,” “anticipate,” “believe,” “intend,” “estimate,” “plan” and “continue” or similar words. We have based these statements on our current expectations about potential future events. Although we believe the expectations expressed in the forward-looking statements included in this press release are based upon reasonable assumptions within the bounds of our knowledge of our business, a number of factors could cause actual results to differ materially from those expressed in any forward-looking statements, whether oral or written, made by us or on our behalf. Many of these factors have previously been identified in filings or statements made by us or on our behalf. Important factors which could cause our actual results to differ, possibly materially from the forward-looking statements in this press release include but are not limited to the following items: the Company’s determination as it finalizes its financial results for the first quarter of 2025 that its financial results differ from the current preliminary unaudited numbers set forth herein; the inability to hire, retain and develop qualified employees, as well as the loss of any of our executive officers or other key employees; a cybersecurity attack or any other interruption in information technology and/or data security that may impact our operations or the operations of third parties that support us; acquisition-related risks that could negatively affect the success of our growth strategy, including the possibility that we may not be able to successfully identify suitable acquisition candidates, complete acquisitions, successfully integrate acquired businesses into our operations and expand into new markets; risks related to our international operations, which may result in additional risks or require more management time and expense than our domestic operations to achieve or maintain profitability; the requirement for additional resources and time to adequately respond to dynamics resulting from rapid technological change; the loss of or significant change to any of our insurance company or intermediary relationships, which could result in loss of capacity to write business, additional expense, loss of market share or material decrease in our commissions; the effect of natural disasters on our profit-sharing contingent commissions, insurer capacity or claims expenses within our captive insurance facilities; adverse economic conditions, political conditions, outbreaks of war, disasters, or regulatory changes in states or countries where we have a concentration of our business; the inability to maintain our culture or a significant change in management, management philosophy or our business strategy; fluctuations in our commission revenue as a result of factors outside of our control; the effects of significant or sustained inflation or higher interest rates; claims expense resulting from the limited underwriting risk associated with our participation in capitalized captive insurance facilities; risks associated with our automobile and recreational vehicle dealer services (“F&I”) businesses; changes in, or the termination of, certain programs administered by the U.S. federal government from which we derive revenues; the limitations of our system of disclosure and internal controls and procedures in preventing errors or fraud, or in informing management of all material information in a timely manner; our reliance on vendors and other third parties to perform key functions of our business operations and provide services to our customers; the significant control certain shareholders have; changes in data privacy and protection laws and regulations or any failure to comply with such laws and regulations; improper disclosure of confidential information; our ability to comply with non-U.S. laws, regulations and policies; the potential adverse effect of certain actual or potential claims, regulatory actions or proceedings on our businesses, results of operations, financial condition or liquidity; uncertainty in our business practices and compensation arrangements with insurance carriers due to potential changes in regulations; regulatory changes that could reduce our profitability or growth by increasing compliance costs, technology compliance, restricting the products or services we may sell, the markets we may enter, the methods by which we may sell our products and services, or the prices we may charge for our services and the form of compensation we may accept from our customers, carriers and third-parties; increasing scrutiny and changing laws and expectations from regulators, investors and customers with respect to our environmental, social and governance practices and disclosure; a decrease in demand for liability insurance as a result of tort reform legislation; our failure to comply with any covenants contained in our debt agreements; the possibility that covenants in our debt agreements could prevent us from engaging in certain potentially beneficial activities; fluctuations in foreign currency exchange rates; a downgrade to our corporate credit rating, the credit ratings of our outstanding debt or other market speculation; changes in the U.S.-based credit markets that might adversely affect our business, results of operations and financial condition; changes in current U.S. or global economic conditions, including an extended slowdown in the markets in which we operate; disintermediation within the insurance industry, including increased competition from insurance companies, technology companies and the financial services industry, as well as the shift away from traditional insurance markets; conditions that result in reduced insurer capacity; quarterly and annual variations in our commissions that result from the timing of policy renewals and the net effect of new and lost business production; intangible asset risk, including the possibility that our goodwill may become impaired in the future; changes in our accounting estimates and assumptions; future pandemics, epidemics or outbreaks of infectious diseases, and the resulting governmental and societal responses; other risks and uncertainties as may be detailed from time to time in our public announcements and Securities and Exchange Commission (“SEC”) filings; and other factors that the Company may not have currently identified or quantified. Assumptions as to any of the foregoing, and all statements, are not based upon historical fact, but rather reflect our current expectations concerning future results and events. Forward-looking statements that we make or that are made by others on our behalf are based upon a knowledge of our business and the environment in which we operate, but because of the factors listed above, among others, actual results may differ from those in the forward-looking statements. Consequently, these cautionary statements qualify all of the forward-looking statements we make herein. We cannot assure you that the results or developments anticipated by us will be realized, or even if substantially realized, that those results or developments will result in the expected consequences for us or affect us, our business or our operations in the way we expect. We caution readers not to place undue reliance on these forward-looking statements. All forward-looking statements made herein are made only as of the date of this press release, and the Company does not undertake any obligation to publicly update or correct any forward-looking statements to reflect events or circumstances that subsequently occur or of which the Company hereafter becomes aware.

    Non-GAAP supplemental financial information
    This press release contains references to “non-GAAP financial measures” as defined in SEC Regulation G, consisting of Organic Revenue, EBITDAC, EBITDAC Margin, EBITDAC – Adjusted, EBITDAC Margin – Adjusted and Diluted Net Income Per Share – Adjusted. We present these measures because we believe such information is of interest to the investment community and because we believe it provides additional meaningful methods to evaluate the Company’s operating performance from period to period on a basis that may not be otherwise apparent on a GAAP basis due to the impact of certain items that have a high degree of variability, that we believe are not indicative of ongoing performance and that are not easily comparable from period to period. This non-GAAP financial information should be considered in addition to, not in lieu of, the Company’s consolidated income statements and balance sheets as of the relevant date. Consistent with Regulation G, a description of such information is provided below and a reconciliation of such items to GAAP information can be found within this press release as well as in our periodic filings with the SEC.

    We view Organic Revenue and Organic Revenue growth as important indicators when assessing and evaluating our performance on a consolidated basis and for each of our three segments, because it allows us to determine a comparable, but non-GAAP, measurement of revenue growth that is associated with the revenue sources that were a part of our business in both the current and prior year and that are expected to continue in the future. In addition, we believe Diluted Net Income Per Share – Adjusted provides a meaningful representation of our operating performance and improves the comparability of our results between periods by excluding the impact of the change in estimated acquisition earn-out payables, the impact of amortization of intangible assets and certain other non-recurring or infrequently occurring items. We also view EBITDAC, EBITDAC – Adjusted, EBITDAC Margin and EBITDAC Margin – Adjusted as important indicators when assessing and evaluating our performance, as they present more comparable measurements of our operating margins in a meaningful and consistent manner. As disclosed in our most recent proxy statement, we use Organic Revenue growth, Diluted Net Income Per Share – Adjusted and EBITDAC Margin – Adjusted as key performance metrics for our short-term and long-term incentive compensation plans for executive officers and other key employees.

    Non-GAAP Revenue Measures

    • Organic Revenue is our core commissions and fees less: (i) the core commissions and fees earned for the first 12 months by newly acquired operations; (ii) divested business (core commissions and fees generated from offices, books of business or niches sold or terminated during the comparable period); and (iii) Foreign Currency Translation (as defined below). The term “core commissions and fees” excludes profit-sharing contingent commissions and therefore represents the revenues earned directly from specific insurance policies sold and specific fee-based services rendered. Organic Revenue can be expressed as a dollar amount or a percentage rate when describing Organic Revenue growth.

    Non-GAAP Earnings Measures

    • EBITDAC is defined as income before interest, income taxes, depreciation, amortization and the change in estimated acquisition earn-out payables.
    • EBITDAC Margin is defined as EBITDAC divided by total revenues.
    • EBITDAC – Adjusted is defined as EBITDAC, excluding (gain)/loss on disposal (as defined below).
    • EBITDAC Margin – Adjusted is defined as EBITDAC – Adjusted divided by total revenues.
    • Diluted Net Income Per Share – Adjusted is defined as diluted net income per share, excluding the after-tax impact of (i) the change in estimated acquisition earn-out payables, (ii) (gain)/loss on disposal, (as defined below) and (iii) amortization.

    Definitions Related to Certain Components of Non-GAAP Measures

    • “Foreign Currency Translation” means the period-over-period impact of foreign currency translation, which is calculated by applying current-year foreign exchange rates to the various functional currencies in our business to our reporting currency of US dollars for the same period in the prior year.
    • “(Gain)/loss on disposal,” a caption on our consolidated statements of income which reflects net proceeds received as compared to net book value related to sales of books of business and other divestiture transactions, such as the disposal of a business through sale or closure.

    Our industry peers may provide similar supplemental non-GAAP information with respect to one or more of these measures, although they may not use the same or comparable terminology and may not make identical adjustments and, therefore comparability may be limited.  This supplemental non-GAAP financial information should be considered in addition to, and not in lieu of, the Company’s condensed consolidated financial statements.

    For more information:

    R. Andrew Watts
    Chief Financial Officer
    (386) 239-5770

    The MIL Network –

  • MIL-OSI: CVR Energy Reports First Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    • First quarter net loss attributable to CVR Energy stockholders of $123 million; EBITDA loss of $61 million; adjusted EBITDA of $24 million
    • First quarter loss per diluted share of $1.22 and adjusted loss per diluted share of 58 cents
    • CVR Energy will not pay a cash dividend for the first quarter of 2025
    • CVR Partners announced a cash distribution of $2.26 per common unit

    SUGAR LAND, Texas, April 28, 2025 (GLOBE NEWSWIRE) — CVR Energy, Inc. (NYSE: CVI, “CVR Energy” or the “Company”) today announced first quarter 2025 net loss attributable to CVR Energy stockholders of $123 million, or $1.22 per diluted share, compared to first quarter 2024 net income attributable to CVR Energy stockholders of $82 million, or 81 cents per diluted share. Adjusted loss for the first quarter of 2025 was 58 cents per diluted share, compared to adjusted earnings per diluted share of 4 cents in the first quarter of 2024. Net loss for the first quarter of 2025 was $105 million, compared to net income of $90 million in the first quarter of 2024. First quarter 2025 EBITDA loss was $61 million, compared to first quarter 2024 EBITDA of $203 million. Adjusted EBITDA for the first quarter of 2025 was $24 million, compared to adjusted EBITDA of $99 million in the first quarter of 2024.

    “CVR Energy’s 2025 first quarter earnings results for its refining business were impacted by planned and unplanned downtime at the Coffeyville refinery,” said Dave Lamp, CVR Energy’s Chief Executive Officer. “With the turnaround at Coffeyville now completed, we are well-positioned for the upcoming driving season, and we currently have no planned turnarounds at either refinery until 2027.

    “CVR Partners achieved solid operating results for the first quarter of 2025, with a combined ammonia production rate of 101 percent,” Lamp said. “CVR Partners was pleased to declare a first quarter 2025 cash distribution of $2.26 per common unit.”

    Petroleum Segment

    The Petroleum Segment reported a first quarter 2025 net loss of $160 million and EBITDA loss of $119 million, compared to net income of $127 million and EBITDA of $171 million for the first quarter of 2024. Adjusted EBITDA loss for the Petroleum Segment was $30 million for the first quarter of 2025, compared to adjusted EBITDA of $67 million for the first quarter of 2024.

    Combined total throughput for the first quarter of 2025 was approximately 120,000 barrels per day (“bpd”) compared to approximately 196,000 bpd of combined total throughput for the first quarter of 2024. The decrease in throughput was primarily due to the turnaround at the Coffeyville, Kansas, refinery during the first quarter of 2025.

    Refining margin for the first quarter of 2025 was $(5) million, or (42) cents per total throughput barrel, compared to $290 million, or $16.29 per total throughput barrel, during the same period in 2024. Included in our first quarter 2025 refining margin were unfavorable mark-to-market impacts on our outstanding Renewable Fuel Standard (“RFS”) obligation of $112 million, favorable unrealized derivative impacts of $3 million primarily related to Canadian crude oil positions, and favorable inventory valuation impacts of $20 million. Excluding these items, adjusted refining margin for the first quarter of 2025 was $7.72 per barrel, compared to an adjusted refining margin per barrel of $10.46 for the first quarter of 2024. The decrease in adjusted refining margin per barrel was primarily due to a decrease in the Group 3 2-1-1 crack spread.

    Renewables Segment

    Effective beginning with the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, and due to the prominence of the renewables business relative to the Company’s overall 2024 performance, we revised our reportable segments to reflect a new reportable segment: Renewables. The Renewables Segment includes the operations of the renewable diesel unit and renewable feedstock pretreater at the refinery in Wynnewood, Oklahoma.

    The Renewables Segment reported first quarter 2025 net income of less than $1 million and EBITDA of $6 million, compared to net loss of $10 million and EBITDA loss of $4 million for the first quarter of 2024. Adjusted EBITDA for the Renewables Segment was $3 million for the first quarter of 2025, compared to adjusted EBITDA loss of $5 million for the first quarter of 2024.

    Total vegetable oil throughput for the first quarter of 2025 was approximately 156,000 gallons per day (“gpd”), compared to approximately 76,000 gpd for the first quarter of 2024.

    Renewables margin was $16 million, or $1.13 per vegetable oil throughput gallon, for the first quarter of 2025 compared to $4 million, or 65 cents per vegetable oil throughput gallon, for the first quarter of 2024. Factors contributing to our first quarter 2025 renewables margin were higher net sales of $33 million resulting from increased production and sales volumes in the current period coupled with increased D4 RIN and LCFS credit prices, partially offset by a decrease in average CARB ULSD prices of 26 cents per gallon. Higher net sales were partially offset by higher cost of sales of $22 million due to an increase in throughput and production volumes.

    Nitrogen Fertilizer Segment

    The Nitrogen Fertilizer Segment reported net income of $27 million and EBITDA of $53 million on net sales of $143 million for the first quarter of 2025, compared to net income of $13 million and EBITDA of $40 million on net sales of $128 million for the first quarter of 2024.

    Production at CVR Partners, LP’s (“CVR Partners”) fertilizer facilities increased compared to the first quarter of 2024, producing a combined 216,000 tons of ammonia during the first quarter of 2025, of which 64,000 net tons were available for sale while the rest was upgraded to other fertilizer products, including 348,000 tons of urea ammonia nitrate (“UAN”). During the first quarter of 2024, the fertilizer facilities produced a combined 193,000 tons of ammonia, of which 60,000 net tons were available for sale while the remainder was upgraded to other fertilizer products, including 305,000 tons of UAN.

    For the first quarter 2025, average realized gate prices for ammonia showed an increase compared to the prior year, up 5 percent to $554 per ton, and UAN was down 4 percent over the prior year to $256 per ton. Average realized gate prices for ammonia and UAN were $528 and $267 per ton, respectively, for the first quarter of 2024.

    Corporate and Other

    The Company reported an income tax benefit of $49 million, or 31.8 percent of loss before income taxes, for the three months ended March 31, 2025, compared to an income tax expense of $17 million, or 15.9 percent of income before income taxes, for the three months ended March 31, 2024. The decrease in income tax expense was primarily due to a decrease in overall pretax earnings while the change in the effective tax rate was primarily due to changes in pretax earnings attributable to noncontrolling interest and the impact of federal and state tax credits and incentives in relation to overall pretax earnings.

    Cash, Debt and Dividend

    Consolidated cash and cash equivalents were $695 million at March 31, 2025, a decrease of $292 million from December 31, 2024. Consolidated total debt and finance lease obligations were $1.9 billion at March 31, 2025, including $570 million held by the Nitrogen Fertilizer Segment.

    CVR Energy will not pay a cash dividend for the first quarter of 2025.

    Today, CVR Partners announced that the Board of Directors of its general partner declared a first quarter 2025 cash distribution of $2.26 per common unit, which will be paid on May 19, 2025, to common unitholders of record as of May 12, 2025.

    First Quarter 2025 Earnings Conference Call

    CVR Energy previously announced that it will host its first quarter 2025 Earnings Conference Call on Tuesday, April 29, at 1 p.m. Eastern. The Earnings Conference Call may also include discussion of Company developments, forward-looking information and other material information about business and financial matters.

    The first quarter 2025 Earnings Conference Call will be webcast live and can be accessed on the Investor Relations section of CVR Energy’s website at www.CVREnergy.com. For investors or analysts who want to participate during the call, the dial-in number is (877) 407-8291. The webcast will be archived and available for 14 days at https://edge.media-server.com/mmc/p/uxpz7jf5. A repeat of the call also can be accessed for 14 days by dialing (877) 660-6853, conference ID 13752979.

    Forward-Looking Statements
    This news release may contain 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. Statements concerning current estimates, expectations and projections about future results, performance, prospects, opportunities, plans, actions and events and other statements, concerns, or matters that are not historical facts are “forward-looking statements,” as that term is defined under the federal securities laws. These forward-looking statements include, but are not limited to, statements regarding future: continued safe and reliable operations; drivers of our results; EBITDA and Adjusted EBITDA; impacts of planned and unplanned downtime; our position for the upcoming driving season; timing of turnarounds and impacts thereof on our results; asset utilization, capture, production volume, throughput, product yield and crude oil gathering rates, including the factors impacting same; cash flow generation; operating income and net sales, including the factors impacting same; refining margin; crack spreads, including the drivers thereof; impact of costs to comply with the RFS and revaluation of our RFS liability; inventory levels and valuation impacts; derivative gains and losses and the drivers thereof; renewable feedstocks; production rates and operations capabilities of our renewable diesel unit, including the ability to return to hydrocarbon service; demand trends; RIN generation levels; benefits of our corporate transformation to segregate our renewables business; access to capital and new partnerships; RIN pricing, including its impact on performance and the Company’s ability to offset the impact thereof; LCFS credit and CARB ULSD pricing; carbon capture and decarbonization initiatives; demand for refined products; ammonia and UAN pricing; global fertilizer industry conditions; grain prices; crop inventory levels; crop and planting levels; production levels and utilization at our nitrogen fertilizer facilities; nitrogen fertilizer sales volumes; ability to and levels to which we upgrade ammonia to other fertilizer products, including UAN; income tax expense and benefits, including the drivers thereof; pretax earnings and our effective tax rate; the availability and impact of tax credits and incentives; use of proceeds under our debt instruments; debt levels; cash and cash equivalent levels; dividends and distributions, including the timing, payment and amount (if any) thereof; direct operating expenses, capital expenditures, depreciation and amortization; turnaround expense; cash reserves; labor supply shortages, difficulties, disputes or strikes, including the impact thereof; and other matters. You can generally identify forward-looking statements by our use of forward-looking terminology such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “explore,” “evaluate,” “intend,” “may,” “might,” “plan,” “potential,” “predict,” “seek,” “should,” or “will,” or the negative thereof or other variations thereon or comparable terminology. These forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond our control. Investors are cautioned that various factors may affect these forward-looking statements, including (among others) the health and economic effects of any pandemic, demand for fossil fuels and price volatility of crude oil, other feedstocks and refined products; the ability of Company to pay cash dividends and of CVR Partners to make cash distributions; potential operating hazards; costs of compliance with existing or new laws and regulations and potential liabilities arising therefrom; impacts of the planting season on CVR Partners; our controlling shareholder’s intention regarding ownership of our common stock or CVR Partners’ common units; general economic and business conditions; political disturbances, geopolitical instability and tensions; existing and future laws, rulings, policies and regulations, including the reinterpretation or amplification thereof by regulators, and including but not limited to those relating to the environment, climate change, and/or the production, transportation, or storage of hazardous chemicals, materials, or substances, like ammonia; political uncertainty and impacts to the oil and gas industry and the United States economy generally as a result of actions taken by a new administration, including the imposition of tariffs or changes in climate or other energy laws, rules, regulations, or policies; impacts of plant outages; potential operating hazards from accidents, fires, severe weather, tornadoes, floods, wildfires, or other natural disasters; and other risks. For additional discussion of risk factors which may affect our results, please see the risk factors and other disclosures included in our most recent Annual Report on Form 10-K, any subsequently filed Quarterly Reports on Form 10-Q and our other Securities and Exchange Commission (“SEC”) filings. These and other risks may cause our actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. Given these risks and uncertainties, you are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements included in this news release are made only as of the date hereof. CVR Energy disclaims any intention or obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by law.

    About CVR Energy, Inc.
    Headquartered in Sugar Land, Texas, CVR Energy is a diversified holding company primarily engaged in the renewable fuels and petroleum refining and marketing business, as well as in the nitrogen fertilizer manufacturing business through its interest in CVR Partners. CVR Energy subsidiaries serve as the general partner and own 37 percent of the common units of CVR Partners.

    Investors and others should note that CVR Energy may announce material information using SEC filings, press releases, public conference calls, webcasts and the Investor Relations page of its website. CVR Energy may use these channels to distribute material information about the Company and to communicate important information about the Company, corporate initiatives and other matters. Information that CVR Energy posts on its website could be deemed material; therefore, CVR Energy encourages investors, the media, its customers, business partners and others interested in the Company to review the information posted on its website.

    Contact Information:

    Investor Relations
    Richard Roberts
    (281) 207-3205
    InvestorRelations@CVREnergy.com

    Media Relations
    Brandee Stephens
    (281) 207-3516
    MediaRelations@CVREnergy.com

    Non-GAAP Measures

    Our management uses certain non-GAAP performance measures, and reconciliations to those measures, to evaluate current and past performance and prospects for the future to supplement our financial information presented in accordance with accounting principles generally accepted in the United States (“GAAP”). These non-GAAP financial measures are important factors in assessing our operating results and profitability and include the performance and liquidity measures defined below.

    As a result of continuing volatile market conditions and the impacts certain non-cash items may have on the evaluation of our operations and results, the Company began disclosing the Adjusted Refining Margin non-GAAP measure, as defined below, in the second quarter of 2024. We believe the presentation of this non-GAAP measure is meaningful to compare our operating results between periods and better aligns with our peer companies. All prior periods presented have been conformed to the definition below.

    The following are non-GAAP measures we present for the periods ended March 31, 2025 and 2024:

    EBITDA – Consolidated net income (loss) before (i) interest expense, net, (ii) income tax expense (benefit) and (iii) depreciation and amortization expense.

    Petroleum EBITDA, Renewables EBITDA, and Nitrogen Fertilizer EBITDA – Segment net income (loss) before segment (i) interest expense, net, (ii) income tax expense (benefit), and (iii) depreciation and amortization.

    Refining Margin – The difference between our Petroleum Segment net sales and cost of materials and other.

    Adjusted Refining Margin – Refining Margin adjusted for certain significant noncash items and items that management believes are not attributable to or indicative of our underlying operational results of the period or that may obscure results and trends we deem useful.

    Refining Margin and Adjusted Refining Margin, per Throughput Barrel – Refining Margin and Adjusted Refining Margin divided by the total throughput barrels during the period, which is calculated as total throughput barrels per day times the number of days in the period.

    Direct Operating Expenses per Throughput Barrel – Direct operating expenses for our Petroleum Segment divided by total throughput barrels for the period, which is calculated as total throughput barrels per day times the number of days in the period.

    Renewables Margin – The difference between our Renewables Segment net sales and cost of materials and other.

    Adjusted Renewables Margin – Renewables Margin adjusted for certain significant noncash items and items that management believes are not attributable to or indicative of our underlying operational results of the period or that may obscure results and trends we deem useful.

    Renewables Margin and Adjusted Renewables Margin, per Vegetable Oil Throughput Gallon – Renewables Margin and Adjusted Renewables Margin divided by the total vegetable oil throughput gallons for the period, which is calculated as total vegetable oil throughput gallons per day times the number of days in the period.

    Direct Operating Expenses per Vegetable Oil Throughput Gallon – Direct operating expenses for our Renewables Segment divided by total vegetable oil throughput gallons for the period, which is calculated as total vegetable oil throughput gallons per day times the number of days in the period.

    Adjusted EBITDA, Petroleum Adjusted EBITDA, Renewables Adjusted EBITDA, and Nitrogen Fertilizer Adjusted EBITDA – EBITDA, Petroleum EBITDA, Renewables EBITDA, and Nitrogen Fertilizer EBITDA adjusted for certain significant non-cash items and items that management believes are not attributable to or indicative of our underlying operational results of the period or that may obscure results and trends we deem useful.

    Adjusted Earnings (Loss) per Share – Earnings (loss) per share adjusted for certain significant non-cash items and items that management believes are not attributable to or indicative of our on-going operations or that may obscure our underlying results and trends.

    Free Cash Flow – Net cash provided by (used in) operating activities less capital expenditures and capitalized turnaround expenditures.

    We present these measures because we believe they may help investors, analysts, lenders and ratings agencies analyze our results of operations and liquidity in conjunction with our U.S. GAAP results, including but not limited to our operating performance as compared to other publicly traded companies in the refining and fertilizer industries, without regard to historical cost basis or financing methods and our ability to incur and service debt and fund capital expenditures. Non-GAAP measures have important limitations as analytical tools, because they exclude some, but not all, items that affect net earnings and operating income. These measures should not be considered substitutes for their most directly comparable U.S. GAAP financial measures. See “Non-GAAP Reconciliations” included herein for reconciliation of these amounts. Due to rounding, numbers presented within this section may not add or equal to numbers or totals presented elsewhere within this document.

    Factors Affecting Comparability of Our Financial Results

    Petroleum Segment

    Our results of operations for the periods presented may not be comparable with prior periods or to our results of operations in the future due to capitalized expenditures as part of planned turnarounds. Total capitalized expenditures were $166 million and $39 million during the three months ended March 31, 2025 and 2024, respectively.

    CVR Energy, Inc.
    (all information in this release is unaudited)

    Consolidated Statement of Operations Data

      Three Months Ended
    March 31,
    (in millions, except per share data)   2025       2024  
    Net sales $ 1,646     $ 1,863  
    Operating costs and expenses:      
    Cost of materials and other   1,517       1,463  
    Direct operating expenses (exclusive of depreciation and amortization)   154       164  
    Depreciation and amortization   66       75  
    Cost of sales   1,737       1,702  
    Selling, general and administrative expenses (exclusive of depreciation and amortization)   37       36  
    Depreciation and amortization   2       1  
    Loss on asset disposal   1       1  
    Operating (loss) income   (131 )     123  
    Other (expense) income:      
    Interest expense, net   (25 )     (20 )
    Other income, net   2       4  
    (Loss) income before income tax benefit   (154 )     107  
    Income tax (benefit) expense   (49 )     17  
    Net (loss) income   (105 )     90  
    Less: Net income attributable to noncontrolling interest   18       8  
    Net (loss) income attributable to CVR Energy stockholders $ (123 )   $ 82  
           
    Basic and diluted (loss) earnings per share $ (1.22 )   $ 0.81  
    Dividends declared per share $ —     $ 0.50  
           
    Adjusted (loss) earnings per share * $ (0.58 )   $ 0.04  
    EBITDA * $ (61 )   $ 203  
    Adjusted EBITDA * $ 24     $ 99  
           
    Weighted-average common shares outstanding – basic and diluted   100.5       100.5  

    _______________
    * See “Non-GAAP Reconciliations” section below.

    Selected Consolidated Balance Sheet Data

    (in millions) March 31, 2025   December 31, 2024
    Cash and cash equivalents $ 695     $ 987  
    Working capital (inclusive of cash and cash equivalents)   395       726  
    Total assets   4,251       4,263  
    Total debt and finance lease obligations, including current portion   1,918       1,919  
    Total liabilities   3,480       3,375  
    Total CVR stockholders’ equity   580       703  
                   

    Selected Consolidated Cash Flow Data

      Three Months Ended
    March 31,
    (in millions)   2025       2024  
    Net cash used in:      
    Operating activities $ (195 )   $ 177  
    Investing activities   (82 )     (55 )
    Financing activities   (15 )     (664 )
    Net decrease in cash, cash equivalents, and restricted cash $ (292 )   $ (542 )
           
    Free cash flow * $ (285 )   $ 121  

    _______________
    * See “Non-GAAP Reconciliations” section below.

    Selected Segment Data

      Three Months Ended March 31,
        2025       2024
    (in millions) Petroleum   Renewables   Nitrogen Fertilizer   Consolidated   Petroleum   Renewables   Nitrogen Fertilizer   Consolidated
    Net sales $ 1,477     $ 66   $ 143   $ 1,646     $ 1,722   $ 33     $ 128   $ 1,863
    Operating (loss) income   (161 )     —     35     (131 )     118     (10 )     20     123
    Net (loss) income   (160 )     —     27     (105 )     127     (10 )     13     90
    EBITDA *   (119 )     6     53     (61 )     171     (4 )     40     203
                                   
    Capital expenditures (1)                              
    Maintenance $ 41     $ —   $ 4   $ 45     $ 22   $ 1     $ 5   $ 30
    Growth   8       —     2     10       14     7       —     21
    Total capital expenditures $ 49     $ —   $ 6   $ 55     $ 36   $ 8     $ 5   $ 51

    _______________
    * See “Non-GAAP Reconciliations” section below.
    (1) Capital expenditures are shown exclusive of capitalized turnaround expenditures.

    Selected Balance Sheet Data

      March 31, 2025   December 31, 2024
    (in millions) Petroleum   Renewables   Nitrogen Fertilizer   Consolidated   Petroleum   Renewables   Nitrogen Fertilizer   Consolidated
    Cash and cash equivalents (1) $ 434   $ 20   $ 122   $ 695   $ 735   $ 13   $ 91   $ 987
    Total assets   3,297     422     1,014     4,251     3,288     420     1,019     4,263
    Total debt and finance lease obligations, including current portion (2)   352     —     570     1,918     354     —     569     1,919

    _______________
    (1) Corporate cash and cash equivalents consisted of $119 million and $148 million at March 31, 2025 and December 31, 2024, respectively.
    (2) Corporate total debt and finance lease obligations, including current portion consisted of $996 million and $996 million at March 31, 2025 and December 31, 2024, respectively.

    Petroleum Segment

    Key Operating Metrics per Total Throughput Barrel

      Three Months Ended
    March 31,
    (in millions)   2025       2024  
    Refining margin * $ (0.42 )   $ 16.29  
    Adjusted refining margin *   7.72       10.46  
    Direct operating expenses *   8.58       5.78  

    _______________
    * See “Non-GAAP Reconciliations” section below.

    Refining Throughput and Production Data by Refinery

    Throughput Data Three Months Ended
    March 31,
    (in bpd)   2025       2024  
    Coffeyville              
    Gathered crude   26,728       62,405  
    Other domestic   12,348       45,925  
    Canadian   640       9,532  
    Condensate   —       7,700  
    Other feedstocks and blendstocks   6,330       12,569  
    Wynnewood              
    Gathered crude   58,420       43,059  
    Other domestic   573       —  
    Condensate   10,152       10,262  
    Other feedstocks and blendstocks   5,186       4,340  
    Total throughput   120,377       195,792  
                   
    Production Data Three Months Ended
    March 31,
    (in bpd)   2025       2024  
    Coffeyville      
    Gasoline   18,940       72,723  
    Distillate   20,233       56,007  
    Other liquid products   6,324       4,554  
    Solids   1,321       4,980  
    Wynnewood      
    Gasoline   39,740       31,984  
    Distillate   24,948       19,166  
    Other liquid products   5,058       5,563  
    Solids   11       6  
    Total production   116,575       194,983  
           
    Crude utilization (1)   52.7 %     86.6 %
    Light product yield (as % of crude throughput) (2)   95.4 %     100.6 %
    Liquid volume yield (as % of total throughput) (3)   95.7 %     97.0 %
    Distillate yield (as % of crude throughput) (4)   41.5 %     42.0 %

    _______________
    (1) Total Gathered crude, Other domestic, Canadian, and Condensate throughput (collectively, “Total Crude Throughput”) divided by consolidated crude oil throughput capacity of 206,500 bpd.
    (2) Total Gasoline and Distillate divided by Total Crude Throughput.
    (3) Total Gasoline, Distillate, and Other liquid products divided by total throughput.
    (4) Total Distillate divided by Total Crude Throughput.

    Key Market Indicators

      Three Months Ended
    March 31,
        2025       2024  
    West Texas Intermediate (WTI) NYMEX $ 71.42     $ 76.91  
    Crude Oil Differentials to WTI:      
    Brent   3.56       4.85  
    WCS (heavy sour)   (12.45 )     (16.91 )
    Condensate   (0.64 )     (0.83 )
    Midland Cushing   1.10       1.59  
    NYMEX Crack Spreads:      
    Gasoline   16.83       22.55  
    Heating Oil   28.46       36.87  
    NYMEX 2-1-1 Crack Spread   22.64       29.71  
    PADD II Group 3 Product Basis:      
    Gasoline   (2.81 )     (9.97 )
    Ultra-Low Sulfur Diesel   (7.19 )     (10.35 )
    PADD II Group 3 Product Crack Spread:      
    Gasoline   14.02       12.58  
    Ultra-Low Sulfur Diesel   21.27       26.51  
    PADD II Group 3 2-1-1   17.65       19.55  
                   

    Renewables Segment

    Key Operating Metrics per Vegetable Oil Throughput Gallon

      Three Months Ended
    March 31,
        2025       2024  
    Renewables margin * $ 1.13     $ 0.65  
    Adjusted renewables margin *   0.94       0.47  
    Direct operating expenses *   0.48       0.84  

    _______________
    * See “Non-GAAP Reconciliations” section below.

    Renewables Throughput and Production Data

      Three Months Ended March 31,
    (in gallons per day)   2025       2024  
    Throughput Data      
    Corn Oil   19,503       31,295  
    Soybean Oil   136,440       44,362  
           
    Production Data      
    Renewable diesel   144,189       62,594  
           
    Renewable utilization (1)   61.9 %     30.0 %
    Renewable diesel yield (as % of corn and soybean oil throughput)   92.5 %     82.7 %

    _______________
    (1) Total corn and soybean oil throughput divided by total renewable throughput capacity of 252,000 gallons per day.

    Key Market Indicators

      Three Months Ended
    March 31,
        2025       2024  
    Chicago Board of Trade (CBOT) soybean oil (dollars per pound) $ 0.44     $ 0.47  
    Midwest crude corn oil (dollars per pound)   0.47       0.55  
    CARB ULSD (dollars per gallon)   2.41       2.66  
    NYMEX ULSD (dollars per gallon)   2.38       2.71  
    California LCFS (dollars per metric ton)   66.12       63.53  
    Biodiesel RINs (dollars per RIN)   0.79       0.58  
                   

    Nitrogen Fertilizer Segment

      Three Months Ended
    March 31,
    (percent of capacity utilization)   2025       2024  
    Ammonia utilization rate (1)   101 %     90 %

    _______________
    (1) Reflects our ammonia utilization rate on a consolidated basis. Utilization is an important measure used by management to assess operational output at each of CVR Partners’ facilities. Utilization is calculated as actual tons produced divided by capacity. We present our utilization for the three months ended March 31, 2025 and 2024 and take into account the impact of our current turnaround cycles on any specific period. Additionally, we present utilization solely on ammonia production rather than each nitrogen product as it provides a comparative baseline against industry peers and eliminates the disparity of plant configurations for upgrade of ammonia into other nitrogen products. With our efforts being primarily focused on ammonia upgrade capabilities, this measure provides a meaningful view of how well we operate.

    Sales and Production Data

      Three Months Ended
    March 31,
        2025       2024  
    Consolidated sales volumes (thousands of tons):      
    Ammonia   60       70  
    UAN   336       284  
           
    Consolidated product pricing at gate (dollars per ton): (1)      
    Ammonia $ 554     $ 528  
    UAN   256       267  
           
    Consolidated production volume (thousands of tons):      
    Ammonia (gross produced) (2)   216       193  
    Ammonia (net available for sale) (2)   64       60  
    UAN   348       305  
           
    Feedstock:      
    Petroleum coke used in production (thousands of tons)   131       128  
    Petroleum coke used in production (dollars per ton) $ 42.43     $ 75.71  
    Natural gas used in production (thousands of MMBtus) (3)   2,159       2,148  
    Natural gas used in production (dollars per MMBtu) (3) $ 4.62     $ 3.10  
    Natural gas in cost of materials and other (thousands of MMBtus) (3)   1,605       1,765  
    Natural gas in cost of materials and other (dollars per MMBtu) (3) $ 4.63     $ 3.49  

    _______________
    (1) Product pricing at gate represents sales less freight revenue divided by product sales volume in tons and is shown in order to provide a pricing measure that is comparable across the fertilizer industry.
    (2) Gross tons produced for ammonia represent total ammonia produced, including ammonia produced that was upgraded into other fertilizer products. Net tons available for sale represent ammonia available for sale that was not upgraded into other fertilizer products.
    (3) The feedstock natural gas shown above does not include natural gas used for fuel. The cost of fuel natural gas is included in direct operating expense.

    Key Market Indicators

      Three Months Ended
    March 31,
        2025       2024  
    Ammonia — Southern plains (dollars per ton) $ 562     $ 567  
    Ammonia — Corn belt (dollars per ton)   618       598  
    UAN — Corn belt (dollars per ton)   324       292  
           
    Natural gas NYMEX (dollars per MMBtu) $ 3.87     $ 2.10  
                   

    Q2 2025 Outlook

    The table below summarizes our outlook for certain operational statistics and financial information for the second quarter of 2025. See “Forward-Looking Statements” above.

      Q2 2025
      Low   High
    Petroleum      
    Total throughput (bpd)   160,000       180,000  
    Crude utilization (1)   82 %     90 %
    Direct operating expenses (in millions) (2) $ 105     $ 115  
    Turnaround (in millions) (3)   15       20  
           
    Renewables      
    Total throughput (in millions of gallons)   16       20  
    Renewable utilization (4)   70 %     87 %
    Direct operating expenses (in millions) (2) $ 8     $ 10  
           
    Nitrogen Fertilizer      
    Ammonia utilization rate   93 %     97 %
    Direct operating expenses (in millions) (2) $ 57     $ 62  
           
    Capital Expenditures (in millions) (3)      
    Petroleum $ 35     $ 40  
    Renewables   2       4  
    Nitrogen Fertilizer   18       22  
    Other   1       3  
    Total capital expenditures $ 56     $ 69  

    _______________
    (1) Represents crude oil throughput divided by consolidated crude oil throughput capacity of 206,500 bpd.
    (2) Direct operating expenses are shown exclusive of depreciation and amortization, turnaround expenses, and inventory valuation impacts.
    (3) Turnaround and capital expenditures are disclosed on an accrual basis.
    (4) Represents renewable feedstock throughput divided by total renewable throughput capacity of 252,000 gallons per day.

    Non-GAAP Reconciliations

    Reconciliation of Net (Loss) Income to EBITDA and Adjusted EBITDA

      Three Months Ended
    March 31,
    (in millions)   2025       2024  
    Net (loss) income $ (105 )   $ 90  
    Interest expense, net   25       20  
    Income tax (benefit) expense   (49 )     17  
    Depreciation and amortization   68       76  
    EBITDA   (61 )     203  
    Adjustments:      
    Revaluation of RFS liability, unfavorable (favorable)   112       (91 )
    Unrealized (gain) loss on derivatives, net   (3 )     24  
    Inventory valuation impacts, favorable   (24 )     (37 )
    Adjusted EBITDA $ 24     $ 99  
                   

    Reconciliation of Basic and Diluted (Loss) Earnings per Share to Adjusted (Loss) Earnings per Share

      Three Months Ended
    March 31,
        2025       2024  
    Basic and diluted (loss) earnings per share $ (1.22 )   $ 0.81  
    Adjustments: (1)      
    Revaluation of RFS liability, unfavorable (favorable)   0.84       (0.67 )
    Unrealized (gain) loss on derivatives, net   (0.03 )     0.18  
    Inventory valuation impacts, favorable   (0.17 )     (0.28 )
    Adjusted (loss) earnings per share $ (0.58 )   $ 0.04  

    _______________
    (1) Amounts are shown after-tax, using the Company’s marginal tax rate, and are presented on a per share basis using the weighted average shares outstanding for each period.

    Reconciliation of Net Cash (Used In) Provided By Operating Activities to Free Cash Flow

      Three Months Ended
    March 31,
    (in millions)   2025       2024  
    Net cash (used in) provided by operating activities $ (195 )   $ 177  
    Less:      
    Capital expenditures   (51 )     (47 )
    Capitalized turnaround expenditures   (43 )     (12 )
    Return of equity method investment   4       3  
    Free cash flow $ (285 )   $ 121  
                   

    Reconciliation of Petroleum Segment Net (Loss) Income to EBITDA and Adjusted EBITDA

      Three Months Ended
    March 31,
    (in millions)   2025       2024  
    Petroleum net (loss) income $ (160 )   $ 127  
    Interest (income) expense, net   —       (4 )
    Depreciation and amortization   41       48  
    Petroleum EBITDA   (119 )     171  
    Adjustments:      
    Revaluation of RFS liability, unfavorable (favorable)   112       (91 )
    Unrealized (gain) loss on derivatives, net   (3 )     24  
    Inventory valuation impacts, favorable (1)   (20 )     (37 )
    Petroleum Adjusted EBITDA $ (30 )   $ 67  
                   

    Reconciliation of Petroleum Segment Gross (Loss) Profit to Refining Margin and Adjusted Refining Margin

      Three Months Ended
    March 31,
    (in millions)   2025       2024  
    Net sales $ 1,477     $ 1,722  
    Less:      
    Cost of materials and other   (1,482 )     (1,432 )
    Direct operating expenses (exclusive of depreciation and amortization)   (93 )     (103 )
    Depreciation and amortization   (41 )     (48 )
    Gross (loss) profit   (139 )     139  
    Add:      
    Direct operating expenses (exclusive of depreciation and amortization)   93       103  
    Depreciation and amortization   41       48  
    Refining margin   (5 )     290  
    Adjustments:      
    Revaluation of RFS liability, unfavorable (favorable)   112       (91 )
    Unrealized (gain) loss on derivatives, net   (3 )     24  
    Inventory valuation impacts, favorable (1)   (20 )     (37 )
    Adjusted refining margin $ 84     $ 186  
           
    Total throughput barrels per day   120,377       195,792  
    Days in the period   90       91  
    Total throughput barrels   10,833,969       17,817,099  
           
    Refining margin per total throughput barrel $ (0.42 )   $ 16.29  
    Adjusted refining margin per total throughput barrel   7.72       10.46  
    Direct operating expenses per total throughput barrel   8.58       5.78  

    _______________
    (1) The Petroleum Segment’s basis for determining inventory value under GAAP is First-In, First-Out (“FIFO”). Changes in crude oil prices can cause fluctuations in the inventory valuation of crude oil, work in process and finished goods, thereby resulting in a favorable inventory valuation impact when crude oil prices increase and an unfavorable inventory valuation impact when crude oil prices decrease. The inventory valuation impact is calculated based upon inventory values at the beginning of the accounting period and at the end of the accounting period.

    Reconciliation of Renewables Segment Net Income (Loss) to EBITDA and Adjusted EBITDA

      Three Months Ended March 31,
    (in millions)   2025       2024  
    Renewables net income (loss) $ —     $ (10 )
    Depreciation and amortization   6       6  
    Renewables EBITDA   6       (4 )
    Adjustments:      
    Inventory valuation impacts, favorable (1)   (3 )     (1 )
    Renewables Adjusted EBITDA $ 3     $ (5 )
                   

    Reconciliation of Renewables Segment Gross Profit (Loss) to Renewables Margin and Adjusted Renewables Margin

      Three Months Ended March 31,
    (in millions, except throughput data)   2025       2024  
    Net sales $ 66     $ 33  
    Less:      
    Cost of materials and other   50       29  
    Direct operating expenses (exclusive of depreciation and amortization)   6       5  
    Depreciation and amortization   6       6  
    Gross profit (loss)   4       (7 )
    Add:      
    Direct operating expenses (exclusive of depreciation and amortization)   6       5  
    Depreciation and amortization   6       6  
    Renewables margin   16       4  
    Inventory valuation impacts, favorable (1)   (3 )     (1 )
    Adjusted renewables margin $ 13     $ 3  
           
    Total vegetable oil throughput gallons per day   155,943       75,657  
    Days in the period   90       91  
    Total vegetable oil throughput gallons   14,034,826       6,884,761  
           
    Renewables margin per vegetable oil throughput gallon $ 1.13     $ 0.65  
    Adjusted renewables margin per vegetable oil throughput gallon   0.94       0.47  
    Direct operating expenses per vegetable oil throughput gallon   0.48       0.84  

    _______________
    (1) The Renewables Segment’s basis for determining inventory value under GAAP is FIFO. Changes in renewable diesel and renewable feedstock prices can cause fluctuations in the inventory valuation of renewable diesel, work in process and finished goods, thereby resulting in a favorable inventory valuation impact when renewable diesel prices increase and an unfavorable inventory valuation impact when renewable diesel prices decrease. The inventory valuation impact is calculated based upon inventory values at the beginning of the accounting period and at the end of the accounting period.

    Reconciliation of Nitrogen Fertilizer Segment Net Income to EBITDA and Adjusted EBITDA

      Three Months Ended
    March 31,
    (in millions)   2025       2024  
    Nitrogen Fertilizer net income $ 27     $ 13  
    Interest expense, net   8       8  
    Depreciation and amortization   18       19  
    Nitrogen Fertilizer EBITDA and Adjusted EBITDA $ 53     $ 40  
                   

    The MIL Network –

  • MIL-OSI Security: Florida Woman Sentenced to Federal Prison for Supervising Maryland Unemployment Insurance Scheme

    Source: United States Department of Justice (National Center for Disaster Fraud)

    Defendant obtained victim’s personal information to file false and fraudulent unemployment insurance claims.

    Baltimore, Maryland – U.S. District Judge Julie R. Rubin sentenced Tiia Woods, 47, of Jacksonville, Florida, to 74 months in prison followed by three years of supervised release. The sentence is in connection with Woods’s role as an organizer of an unemployment insurance (UI) fraud scheme. Through the conspiracy, victims lost approximately $3,296,725.

    Kelly O. Hayes, U.S. Attorney for the District of Maryland, announced the sentence with Special Agent in Charge Troy W. Springer, National Capital Region, U.S. Department of Labor’s Office of Inspector General (DOL-OIG), and Special Agent in Charge William J. DelBagno of the Federal Bureau of Investigation (FBI) – Baltimore Field Office.

    According to the guilty plea, beginning in June 2020, and continuing through at least May 2021, Woods engaged in a conspiracy to defraud and obtain money through materially false and fraudulent pretenses, representations, and promises in connection with the UI scheme.  Woods obtained the personal identifiable information of real persons and used the information to submit false and fraudulent unemployment insurance claims to the Maryland Department of Labor (MD-DOL).

    Woods and her co-conspirators used UI benefits, which were designated to assist unemployed or underemployed people due to the COVID-19 national emergency, for their personal use. She instructed her co-conspirators Tyshawna Davis and Devante Smith via text message in furtherance of the conspiracy. Woods’s guidance included instructions on how to obtain benefits, expedite a claim, and how much Woods would keep for herself.

    Smith was previously sentenced to 54 months in prison for his role in the conspiracy.

    The Coronavirus Aid, Relief, and Economic Security (CARES) Act — a federal law enacted in March 2020 — provided emergency financial assistance to Americans suffering from the economic effects of the COVID-19 pandemic. The CARES Act authorized increased unemployment insurance (“UI”) benefits.  UI benefits have historically been a state and federal program that provided monetary benefits to eligible workers.  The CARES Act expanded states’ ability to provide UI benefits for many workers impacted by COVID-19, including self-employed workers or independent contractors, who would not normally be eligible for UI benefits.

    The District of Maryland Strike Force is one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud, including fraud relating to the CARES Act.  The CARES Act was designed to provide emergency financial assistance to Americans suffering the economic effects caused by the COVID-19 pandemic.  The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors.  The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.

    For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.  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.

    U.S. Attorney Hayes commended the DOL-OIG and FBI, along with Bank of America – Detection and Complex Investigations Fraud Rings and Analytics, for their work in the investigation.  Ms. Hayes also thanked Assistant U.S. Attorneys Evelyn Lombardo Cusson and Harry M. Gruber who prosecuted the federal case.

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

    # # #

    MIL Security OSI –

  • MIL-OSI: RBB Bancorp Reports First Quarter 2025 Earnings

    Source: GlobeNewswire (MIL-OSI)

    LOS ANGELES, April 28, 2025 (GLOBE NEWSWIRE) — RBB Bancorp (NASDAQ:RBB) and its subsidiaries, Royal Business Bank (the “Bank”) and RBB Asset Management Company (“RAM”), collectively referred to herein as the “Company,” announced financial results for the quarter ended March 31, 2025.

    First Quarter 2025 Highlights

    • Net income totaled $2.3 million, or $0.13 diluted earnings per share
    • Return on average assets of 0.24%, compared to 0.44% for the quarter ended December 31, 2024
    • Net interest margin expanded to 2.88%, up from 2.76% for the quarter ended December 31, 2024
    • Net loans held for investment growth of $89.8 million, or 12% annualized 
    • Nonperforming assets decreased $16.5 million, or 20.3%, to $64.6 million at March 31, 2025, down from $81.0 million at December 31, 2024
    • Book value and tangible book value per share(1) increased to $28.77 and $24.63 at March 31, 2025, up from $28.66 and $24.51 at December 31, 2024 

    The Company reported net income of $2.3 million, or $0.13 diluted earnings per share, for the quarter ended March 31, 2025, compared to net income of $4.4 million, or $0.25 diluted earnings per share, for the quarter ended December 31, 2024. First quarter of 2025 net income included $6.7 million in pre-tax provision for credit losses mostly related to reducing exposure to nonperforming loans, including higher specific reserves.

    “First quarter net income declined to $2.3 million, or 13 cents per share, as we took decisive action to address our nonperforming loans,” said David Morris, Chief Executive Officer of RBB Bancorp. “We reduced our net exposure to nonperforming loans to $51 million, including specific reserves, or 32% since year end. We remain focused on resolving our nonperforming loans as quickly as possible while minimizing the impact to earnings and capital and we think our actions in the first quarter reflect this.”

    “Our loan production was relatively strong during the first quarter driven by continued execution of our initiatives, which resulted in 12% annualized net loan growth. Our loan prospect pipeline continues to be healthy, and we anticipate loan growth to continue in the second quarter, albeit likely at a more moderate pace,” said Johnny Lee, President of RBB Bancorp and President and Chief Executive Officer of the Bank. “While the market environment is volatile, we have not observed significant signs of financial impact to our clients at this time.”

    (1 ) Reconciliations of the non–U.S. generally accepted accounting principles (“GAAP”) measures included at the end of this press release.

    Net Interest Income and Net Interest Margin

    Net interest income was $26.2 million for the first quarter of 2025, compared to $26.0 million for the fourth quarter of 2024. The $186,000 increase was due to a $2.4 million decrease in interest expense, offset by a $2.2 million decrease in interest income. The decrease in interest income was mostly due to the impact of fewer days in the quarter of $1.2 million and lower average excess liquidity (cash and cash equivalents and investment securities) of $1.5 million. The decrease in interest expense was mostly due to the impact of lower average funding rates of $1.5 million, fewer days in the quarter of $621,000 and lower average interest-bearing liabilities of $336,000. The $1.5 million attributed to lower average funding rates included $1.8 million due to a 29 basis point decrease in the average cost of interest-bearing deposits.

    The net interest margin (“NIM”) was 2.88% for the first quarter of 2025, an increase of 12 basis points from 2.76% for the fourth quarter of 2024. The NIM expansion was due to a 17 basis point decrease in the overall cost of funds, partially offset by a 3 basis point decrease in the yield on average interest-earning assets. The yield on average interest-earning assets decreased to 5.76% for the first quarter of 2025 from 5.79% for the fourth quarter of 2024 due mainly to a decrease in the yield on average cash and cash equivalents of 32 basis points and average loans of 2 basis points, partially offset by the benefit of a change in the mix in average-earning assets. Average loans represented 84% of average interest-earning assets in the first quarter of 2025, as compared to 82% in the fourth quarter of 2024.

    The average cost of funds decreased to 3.15% for the first quarter of 2025 from 3.32% for the fourth quarter of 2024, driven by a 29 basis point decrease in the average cost of interest-bearing deposits, partially offset by a 38 basis point increase in the average cost of borrowings. The average cost of interest-bearing deposits decreased to 3.77% for the first quarter of 2025 from 4.06% for the fourth quarter of 2024. During the first quarter of 2025, $150.0 million in Federal Home Loan Bank (“FHLB”) advances with an average cost of 1.18% matured and were largely replaced with $110.0 million in FHLB advances with various terms at an average rate of 3.88%. The overall funding mix for the first quarter of 2025 remained relatively unchanged from the fourth quarter of 2024 with total deposits representing 90% of the funding mix and average noninterest-bearing deposits representing 17% of average total deposits. The all-in average spot rate for total deposits was 3.06% at March 31, 2025.

    Provision for Credit Losses

    The provision for credit losses was $6.7 million for the first quarter of 2025 compared to $6.0 million for the fourth quarter of 2024. The first quarter of 2025 provision for credit losses was due to an increase in specific reserves of $2.8 million, net charge-offs of $2.6 million and an increase in general reserves of $1.3 million due mainly to net loan growth. The first quarter increase in specific reserves related mostly to two lending relationships. Net charge-offs included $1.4 million related to a bulk sale of $10.8 million in underperforming single-family residential (“SFR”) mortgage loans, of which $6.5 million were on nonaccrual at the end of the year, and $1.2 million related to an $8.8 million loan transferred to other real estate owned (“OREO”) and subsequently sold. Net charge-offs on an annualized basis represented 0.35% of average loans for the first quarter of 2025 compared to 0.26% for the fourth quarter of 2024. The first quarter provision also took into consideration factors such as changes in loan balances, the loan portfolio mix, the outlook for economic conditions and market interest rates, and changes in credit quality metrics, including changes in nonperforming loans, special mention and substandard loans during the period.

    Noninterest Income

    Noninterest income for the first quarter of 2025 was $2.3 million, a decrease of $434,000 from $2.7 million for the fourth quarter of 2024. This decrease was mostly due to the fourth quarter of 2024 including $258,000 of income from a Bank Enterprise Award grant (included in other income) and lower net gain on sale of loans as compared to the fourth quarter of 2024.

    Noninterest Expense

    Noninterest expense for the first quarter of 2025 was $18.5 million, an increase of $873,000 from $17.6 million for the fourth quarter of 2024. This increase was mostly due to higher salaries and employee benefits expense of $716,000 attributed to higher payroll taxes and annual pay increases, which are typically reflected in the first quarter of the year. The annualized noninterest expenses to average assets ratio was 1.90% for the first quarter of 2025, up from 1.76% for the fourth quarter of 2024. The efficiency ratio was 65.1% for the first quarter of 2025, up from 61.5% for the fourth quarter of 2024 due mostly to higher noninterest expense.

    Income Taxes

    The effective tax rate was 28.2% for the first quarter of 2025 and 13.3% for the fourth quarter of 2024. The increase in the effective tax rate for the first quarter was due in part to lower tax credits combined with higher estimated pre-tax net income for the full year of 2025 as compared to the prior quarter.2

    Balance Sheet

    At March 31, 2025, total assets were $4.0 billion, a $16.9 million increase compared to December 31, 2024, and a $131.4 million increase compared to March 31, 2024.

    Loan and Securities Portfolio

    Loans held for investment (“HFI”) totaled $3.1 billion as of March 31, 2025, an increase of $89.8 million, or 12% annualized, compared to December 31, 2024 and an increase of $115.7 million, or 3.8%, compared to March 31, 2024. The first quarter of 2025 net loan growth included $201 million in new production with an average yield of 6.77%. When loan sales, charge-offs, and foreclosures totaling $28.6 million are considered, the annualized first quarter net loan growth rate was 16%. The increase from December 31, 2024 was primarily due to a $51.8 million increase in SFR mortgage loans, a $44.0 million increase in commercial real estate (“CRE”) loans, a $6.0 million increase in commercial and industrial (“C&I”) loans and a $3.4 million increase in Small Business Administration (“SBA”) loans, partially offset by a $14.4 million decrease in construction and land development (“C&D”) loans. The loan to deposit ratio was 98.4% at March 31, 2025, compared to 97.5% at December 31, 2024 and 98.6% at March 31, 2024. 

    As of March 31, 2025, available for sale securities totaled $378.2 million, a decrease of $42.0 million from December 31, 2024, primarily related to the net decrease in short-term commercial paper of $41.4 million due to maturity and purchase activity during the first quarter of 2025. As of March 31, 2025, net unrealized losses totaled $25.0 million, a $4.2 million decrease, when compared to net unrealized losses of $29.2 million as of December 31, 2024.

    Deposits

    Total deposits were $3.1 billion as of March 31, 2025, an increase of $58.8 million, or 7.7% annualized, compared to December 31, 2024 and an increase of $114.3 million, or 3.8%, compared to March 31, 2024. The increase during the first quarter of 2025 was due to a $93.6 million increase in interest-bearing deposits, while noninterest-bearing deposits decreased $34.8 million. The increase in interest-bearing deposits included increases in non-maturity deposits of $58.2 million and time deposits of $35.5 million. Wholesale deposits totaled $158.5 million at March 31, 2025, and $147.5 million at December 31, 2024. Noninterest-bearing deposits totaled $528.2 million and represented 16.8% of total deposits at March 31, 2025 compared to $563.0 million and 18.3% at December 31, 2024.

    Credit Quality

    Nonperforming assets totaled $64.6 million, or 1.61% of total assets, at March 31, 2025, down from $81.0 million, or 2.03% of total assets, at December 31, 2024. The $16.5 million decrease in nonperforming assets was due to sales totaling $20.0 million and payoffs or paydowns of $1.8 million, partially offset by the addition of one $5.3 million CRE loan placed on nonaccrual status in the first quarter of 2025. Nonperforming assets included one $4.2 million OREO (included in “Accrued interest and other assets”) at March 31, 2025, which was a nonaccrual loan at December 31, 2024.

    Special mention loans totaled $64.3 million, or 2.05% of total loans, at March 31, 2025, down from $65.3 million, or 2.14% of total loans, at December 31, 2024. The $1.1 million decrease was primarily due to the upgrade of one $1.7 million CRE loan to a pass-rated loan, offset by the addition of one $578,000 C&I loan. All special mention loans are paying current.

    Substandard loans totaled $76.4 million at March 31, 2025, down from $100.3 million at December 31, 2024. This $24.0 million decrease was primarily due to loan sales totaling $11.7 million, transfers to OREO totaling $12.8 million, of which $8.8 million was subsequently sold during the first quarter of 2025, and payoffs and paydowns totaling $5.4 million, partially offset by the downgrade of two loans totaling $6.2 million. Of the total substandard loans at March 31, 2025, there were $16.0 million on accrual status.

    30-89 day delinquent loans, excluding nonperforming loans, totaled $5.9 million, or 0.19% of total loans, at March 31, 2025, down from $22.1 million, or 0.72% of total loans, at December 31, 2024. The $16.2 million decrease was mostly due to $16.3 million in loans returning to current status, $2.9 million in SFR mortgage loans included in the bulk sale of several underperforming SFR mortgage loans and $398,000 in paydowns and payoffs, offset by $3.5 million in new delinquent loans.3

    As of March 31, 2025, the allowance for credit losses totaled $52.6 million and was comprised of an allowance for loan losses of $51.9 million and a reserve for unfunded commitments of $629,000 (included in “Accrued interest and other liabilities”). This compares to the allowance for credit losses of $48.5 million, comprised of an allowance for loan losses of $47.7 million and a reserve for unfunded commitments of $729,000 at December 31, 2024. The $4.1 million increase in the allowance for credit losses for the first quarter of 2025 was due to a $6.7 million provision for credit losses offset by net charge-offs of $2.6 million. Net charge-offs included $1.4 million related to a bulk sale of $10.8 million in underperforming SFR mortgage loans, of which $6.5 million were on nonaccrual at the end of the year, and $1.2 million related to an $8.8 million loan transferred to OREO and subsequently sold. The allowance for loan losses as a percentage of loans HFI increased to 1.65% at March 31, 2025, compared to 1.56% at December 31, 2024, due to an increase in specific reserves. The allowance for loan losses as a percentage of nonperforming loans HFI was 86% at March 31, 2025, an increase from 68% at December 31, 2024. 

        For the Three Months Ended March 31, 2025  
    (dollars in thousands)   Allowance for
    loan losses    		     Reserve for
    unfunded loan
    commitments    		     Allowance for
    credit losses    		  
    Beginning balance   $ 47,729     $ 729     $ 48,458  
    Provision for (reversal of) credit losses     6,846       (100 )     6,746  
    Less loans charged-off     (2,727 )     —       (2,727 )
    Recoveries on loans charged-off     84       —       84  
    Ending balance   $ 51,932     $ 629     $ 52,561  

    Shareholders’ Equity

    At March 31, 2025, total shareholders’ equity was $510.3 million, a $2.4 million increase compared to December 31, 2024, and a $3.7 million decrease compared to March 31, 2024. The increase in shareholders’ equity for the first quarter of 2025 was due to lower net unrealized losses on available for sale securities of $3.0 million, net income of $2.3 million and equity compensation activity of $43,000, offset by common stock cash dividends paid of $2.9 million. The decrease in shareholders’ equity for the last twelve months was due to common stock repurchases of $19.2 million and dividends paid of $11.6 million on common stock, offset by net income of $20.9 million, lower net unrealized losses on available for sale securities of $3.7 million, and equity compensation activity of $2.5 million. Book value per share and tangible book value per share(1) increased to $28.77 and $24.63 at March 31, 2025, up from $28.66 and $24.51 at December 31, 2024 and up from $27.67 and $23.68 at March 31, 2024.

    (1 ) Reconciliations of the non–U.S. generally accepted accounting principles (“GAAP”) measures included at the end of this press release.

    Corporate Overview

    RBB Bancorp is a community-based financial holding company headquartered in Los Angeles, California. As of March 31, 2025, the Company had total assets of $4.0 billion. Its wholly-owned subsidiary, Royal Business Bank, is a full service commercial bank, which provides consumer and business banking services predominately to the Asian-centric communities in Los Angeles County, Orange County, and Ventura County in California, in Las Vegas, Nevada, in Brooklyn, Queens, and Manhattan in New York, in Edison, New Jersey, in the Chicago neighborhoods of Chinatown and Bridgeport, Illinois, and on Oahu, Hawaii. Bank services include remote deposit, E-banking, mobile banking, commercial and investor real estate loans, business loans and lines of credit, commercial and industrial loans, SBA 7A and 504 loans, 1-4 single family residential loans, trade finance, a full range of depository account products and wealth management services. The Bank has nine branches in Los Angeles County, two branches in Ventura County, one branch in Orange County, California, one branch in Las Vegas, Nevada, three branches and one loan operation center in Brooklyn, three branches in Queens, one branch in Manhattan in New York, one branch in Edison, New Jersey, two branches in Chicago, Illinois, and one branch in Honolulu, Hawaii. The Company’s administrative and lending center is located at 1055 Wilshire Blvd., Los Angeles, California 90017, and its operations center is located at 7025 Orangethorpe Ave., Buena Park, California 90621. The Company’s website address is www.royalbusinessbankusa.com.

    Conference Call

    Management will hold a conference call at 11:00 a.m. Pacific time/2:00 p.m. Eastern time on Tuesday, April 29, 2025, to discuss the Company’s first quarter 2025 financial results.

    To listen to the conference call, please dial 1-888-506-0062 or 1-973-528-0011, the Participant ID code is 534591, conference ID RBBQ125. A replay of the call will be made available at 1-877-481-4010 or 1-919-882-2331, the passcode is 52277, approximately one hour after the conclusion of the call and will remain available through May 13, 2025.

    The conference call will also be simultaneously webcast over the Internet; please visit our Royal Business Bank website at www.royalbusinessbankusa.com and click on the “Investors” tab to access the call from the site. This webcast will be recorded and available for replay on our website approximately two hours after the conclusion of the conference call.

    Disclosure

    This press release contains certain non-GAAP financial disclosures for tangible common equity and tangible assets and adjusted earnings. The Company uses certain non-GAAP financial measures to provide meaningful supplemental information regarding the Company’s operational performance and to enhance investors’ overall understanding of such financial performance. Please refer to the tables at the end of this release for a presentation of performance ratios in accordance with GAAP and a reconciliation of the non-GAAP financial measures to the GAAP financial measures.

    Safe Harbor

    Certain matters set forth herein (including the exhibits hereto) constitute forward-looking statements relating to the Company’s current business plans and expectations and our future financial position and operating results. These forward-looking statements are subject to risks and uncertainties that could cause actual results, performance and/or achievements to differ materially from those projected. These risks and uncertainties include, but are not limited to, the effectiveness of the Company’s internal control over financial reporting and disclosure controls and procedures; the potential for additional material weaknesses in the Company’s internal controls over financial reporting or other potential control deficiencies of which the Company is not currently aware or which have not been detected; business and economic conditions generally and in the financial services industry, nationally and within our current and future geographic markets, including the tight labor market, ineffective management of the United States (“U.S.”) federal budget or debt or turbulence or uncertainly in domestic or foreign financial markets; the strength of the U.S. economy in general and the strength of the local economies in which we conduct operations; adverse developments in the banking industry highlighted by high-profile bank failures and the potential impact of such developments on customer confidence, liquidity and regulatory responses to these developments; possible additional provisions for credit losses and charge-offs; credit risks of lending activities and deterioration in asset or credit quality; extensive laws and regulations and supervision that we are subject to, including potential supervisory action by bank supervisory authorities; compliance with the Bank Secrecy Act and other money laundering statutes and regulations; potential goodwill impairment; liquidity risk; failure to comply with debt covenants; fluctuations in interest rates; risks associated with acquisitions and the expansion of our business into new markets; inflation and deflation; real estate market conditions and the value of real estate collateral; the effects of having concentrations in our loan portfolio, including commercial real estate and the risks of geographic and industry concentrations; environmental liabilities; our ability to compete with larger competitors; our ability to retain key personnel; successful management of reputational risk; severe weather, natural disasters, earthquakes, fires, including direct and indirect costs and impacts on clients, the Company and its employees from the January 2025 Los Angeles County wildfires; or other adverse external events could harm our business; geopolitical conditions, including acts or threats of terrorism, actions taken by the U.S. or other governments in response to acts or threats of terrorism and/or military conflicts, including the conflicts between Russia and Ukraine, in the Middle East, and increasing tensions between China and Taiwan, which could impact business and economic conditions in the U.S. and abroad; tariffs, trade policies, and related tensions, which could impact our clients, specific industry sectors, and/or broader economic conditions and financial market; public health crises and pandemics, and their effects on the economic and business environments in which we operate, including our credit quality and business operations, as well as the impact on general economic and financial market conditions; general economic or business conditions in Asia, and other regions where the Bank has operations; failures, interruptions, or security breaches of our information systems; climate change, including any enhanced regulatory, compliance, credit and reputational risks and costs; cybersecurity threats and the cost of defending against them; our ability to adapt our systems to the expanding use of technology in banking; risk management processes and strategies; adverse results in legal proceedings; the impact of regulatory enforcement actions, if any; certain provisions in our charter and bylaws that may affect acquisition of the Company; changes in tax laws and regulations; the impact of governmental efforts to restructure the U.S. financial regulatory system and increased costs of compliance and other risks associated with changes in regulation, including any amendments to the Dodd-Frank Wall Street Reform and Consumer Protection Act; the impact of changes in the Federal Deposit Insurance Corporation (“FDIC”) insurance assessment rate and the rules and regulations related to the calculation of the FDIC insurance assessments; the effect of changes in accounting policies and practices or accounting standards, as may be adopted from time-to-time by bank regulatory agencies, the SEC, the Public Company Accounting Oversight Board, the Financial Accounting Standards Board or other accounting standards setters; fluctuations in the Company’s stock price; restrictions on dividends and other distributions by laws and regulations and by our regulators and our capital structure; our ability to raise additional capital, if needed, and the potential resulting dilution of interests of holders of our common stock; the soundness of other financial institutions; our ongoing relations with our various federal and state regulators, including the SEC, FDIC, FRB and California Department of Financial Protection and Innovation; our success at managing the risks involved in the foregoing items and all other factors set forth in the Company’s public reports, including its Annual Report as filed under Form 10-K for the year ended December 31, 2024, and particularly the discussion of risk factors within that document. The Company does not undertake, and specifically disclaims any obligation, to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements except as required by law. Any statements about future operating results, such as those concerning accretion and dilution to the Company’s earnings or shareholders, are for illustrative purposes only, are not forecasts, and actual results may differ.

    RBB BANCORP AND SUBSIDIARIES
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (Unaudited)
    (Dollars in thousands)
     
        March 31,     December 31,     September 30,     June 30,     March 31,  
        2025     2024     2024     2024     2024  
    Assets                                        
    Cash and due from banks   $ 25,315     $ 27,747     $ 26,388     $ 23,313     $ 21,887  
    Interest-earning deposits with financial institutions     213,508       229,998       323,002       229,456       247,356  
    Cash and cash equivalents     238,823       257,745       349,390       252,769       269,243  
    Interest-earning time deposits with financial institutions     600       600       600       600       600  
    Investment securities available for sale     378,188       420,190       305,666       325,582       335,194  
    Investment securities held to maturity     5,188       5,191       5,195       5,200       5,204  
    Loans held for sale     655       11,250       812       3,146       3,903  
    Loans held for investment     3,143,063       3,053,230       3,091,896       3,047,712       3,027,361  
    Allowance for loan losses     (51,932 )     (47,729 )     (43,685 )     (41,741 )     (41,688 )
    Net loans held for investment     3,091,131       3,005,501       3,048,211       3,005,971       2,985,673  
    Premises and equipment, net     24,308       24,601       24,839       25,049       25,363  
    Federal Home Loan Bank (FHLB) stock     15,000       15,000       15,000       15,000       15,000  
    Cash surrender value of bank owned life insurance     60,699       60,296       59,889       59,486       59,101  
    Goodwill     71,498       71,498       71,498       71,498       71,498  
    Servicing assets     6,766       6,985       7,256       7,545       7,794  
    Core deposit intangibles     1,839       2,011       2,194       2,394       2,594  
    Right-of-use assets     26,779       28,048       29,283       30,530       31,231  
    Accrued interest and other assets     87,926       83,561       70,644       63,416       65,608  
    Total assets   $ 4,009,400     $ 3,992,477     $ 3,990,477     $ 3,868,186     $ 3,878,006  
    Liabilities and shareholders’ equity                                        
    Deposits:                                        
    Noninterest-bearing demand   $ 528,205     $ 563,012     $ 543,623     $ 542,971     $ 539,517  
    Savings, NOW and money market accounts     721,216       663,034       666,089       647,770       642,840  
    Time deposits, $250,000 and under     1,000,106       1,007,452       1,052,462       1,014,189       1,083,898  
    Time deposits, greater than $250,000     893,101       850,291       830,010       818,675       762,074  
    Total deposits     3,142,628       3,083,789       3,092,184       3,023,605       3,028,329  
    FHLB advances     160,000       200,000       200,000       150,000       150,000  
    Long-term debt, net of issuance costs     119,624       119,529       119,433       119,338       119,243  
    Subordinated debentures     15,211       15,156       15,102       15,047       14,993  
    Lease liabilities – operating leases     28,483       29,705       30,880       32,087       32,690  
    Accrued interest and other liabilities     33,148       36,421       23,150       16,818       18,765  
    Total liabilities     3,499,094       3,484,600       3,480,749       3,356,895       3,364,020  
    Shareholders’ equity:                                        
    Common stock     260,284       259,957       259,280       266,160       271,645  
    Additional paid-in capital     3,360       3,645       3,520       3,456       3,348  
    Retained earnings     263,885       264,460       262,946       262,518       259,903  
    Non-controlling interest     72       72       72       72       72  
    Accumulated other comprehensive loss, net     (17,295 )     (20,257 )     (16,090 )     (20,915 )     (20,982 )
    Total shareholders’ equity     510,306       507,877       509,728       511,291       513,986  
    Total liabilities and shareholders’ equity   $ 4,009,400     $ 3,992,477     $ 3,990,477     $ 3,868,186     $ 3,878,006  
     
    RBB BANCORP AND SUBSIDIARIES
    CONDENSED CONSOLIDATED STATEMENTS OF INCOME
    (Unaudited)
    (In thousands, except share and per share data) 
     
        For the Three Months Ended  
        March 31, 2025     December 31, 2024     March 31, 2024  
    Interest and dividend income:                        
    Interest and fees on loans   $ 45,621     $ 46,374     $ 45,547  
    Interest on interest-earning deposits     2,014       3,641       5,040  
    Interest on investment securities     4,136       3,962       3,611  
    Dividend income on FHLB stock     330       330       331  
    Interest on federal funds sold and other     235       248       266  
    Total interest and dividend income     52,336       54,555       54,795  
    Interest expense:                        
    Interest on savings deposits, NOW and money market accounts     4,468       4,671       4,478  
    Interest on time deposits     19,084       21,361       23,322  
    Interest on long-term debt and subordinated debentures     1,632       1,660       1,679  
    Interest on FHLB advances     989       886       439  
    Total interest expense     26,173       28,578       29,918  
    Net interest income before provision for credit losses     26,163       25,977       24,877  
    Provision for credit losses     6,746       6,000       —  
    Net interest income after provision for credit losses     19,417       19,977       24,877  
    Noninterest income:                        
    Service charges and fees     1,017       988       992  
    Gain on sale of loans     81       376       312  
    Loan servicing fees, net of amortization     588       492       589  
    Increase in cash surrender value of life insurance     403       407       382  
    Gain on OREO     —       —       724  
    Other income     206       466       373  
    Total noninterest income     2,295       2,729       3,372  
    Noninterest expense:                        
    Salaries and employee benefits     10,643       9,927       9,927  
    Occupancy and equipment expenses     2,407       2,403       2,443  
    Data processing     1,602       1,499       1,420  
    Legal and professional     1,515       1,355       880  
    Office expenses     408       399       356  
    Marketing and business promotion     197       251       172  
    Insurance and regulatory assessments     730       677       982  
    Core deposit premium     172       182       201  
    Other expenses     848       956       588  
    Total noninterest expense     18,522       17,649       16,969  
    Income before income taxes     3,190       5,057       11,280  
    Income tax expense     900       672       3,244  
    Net income   $ 2,290     $ 4,385     $ 8,036  
                             
    Net income per share                        
    Basic   $ 0.13     $ 0.25     $ 0.43  
    Diluted   $ 0.13     $ 0.25     $ 0.43  
    Cash dividends declared per common share   $ 0.16     $ 0.16     $ 0.16  
    Weighted-average common shares outstanding                        
    Basic     17,727,712       17,704,992       18,601,277  
    Diluted     17,770,588       17,796,840       18,666,683  
                             
    RBB BANCORP AND SUBSIDIARIES
    AVERAGE BALANCE SHEET AND NET INTEREST INCOME
    (Unaudited)
     
        For the Three Months Ended  
        March 31, 2025     December 31, 2024     March 31, 2024  
    (tax-equivalent basis,    Average     Interest     Yield /     Average     Interest     Yield /     Average     Interest     Yield /  
      dollars in thousands)   Balance     & Fees     Rate     Balance     & Fees     Rate     Balance     & Fees     Rate  
    Interest-earning assets                                                                        
    Cash and cash equivalents (1)   $ 194,236     $ 2,249       4.70 %   $ 308,455     $ 3,890       5.02 %   $ 364,979     $ 5,306       5.85 %
    FHLB Stock     15,000       330       8.92 %     15,000       330       8.75 %     15,000       331       8.88 %
    Securities                                                                        
    Available for sale (2)     390,178       4,113       4.28 %     361,253       3,939       4.34 %     320,015       3,589       4.51 %
    Held to maturity (2)     5,189       49       3.83 %     5,194       48       3.68 %     5,207       46       3.55 %
    Total loans (3)     3,079,224       45,621       6.01 %     3,059,786       46,374       6.03 %     3,018,423       45,547       6.07 %
    Total interest-earning assets     3,683,827     $ 52,362       5.76 %     3,749,688     $ 54,581       5.79 %     3,723,624     $ 54,819       5.92 %
    Total noninterest-earning assets     260,508                       244,609                       246,341                  
    Total average assets   $ 3,944,335                     $ 3,994,297                     $ 3,969,965                  
                                                                             
    Interest-bearing liabilities                                                                        
    NOW     61,222       321       2.13 %   $ 53,879     $ 254       1.88 %   $ 58,946     $ 298       2.03 %
    Money market     463,443       3,625       3.17 %     463,850       3,735       3.20 %     411,751       3,526       3.44 %
    Saving deposits     155,116       522       1.36 %     162,351       682       1.67 %     157,227       654       1.67 %
    Time deposits, $250,000 and under     989,622       10,046       4.12 %     1,034,946       11,583       4.45 %     1,175,804       13,805       4.72 %
    Time deposits, greater than $250,000     864,804       9,038       4.24 %     835,583       9,778       4.66 %     785,172       9,517       4.88 %
    Total interest-bearing deposits     2,534,207       23,552       3.77 %     2,550,609       26,032       4.06 %     2,588,900       27,800       4.32 %
    FHLB advances     176,833       989       2.27 %     200,000       886       1.76 %     150,000       439       1.18 %
    Long-term debt     119,562       1,295       4.39 %     119,466       1,295       4.31 %     119,180       1,295       4.37 %
    Subordinated debentures     15,175       337       9.01 %     15,121       365       9.60 %     14,957       384       10.33 %
    Total interest-bearing liabilities     2,845,777       26,173       3.73 %     2,885,196       28,578       3.94 %     2,873,037       29,918       4.19 %
    Noninterest-bearing liabilities                                                                        
    Noninterest-bearing deposits     520,145                       539,900                       528,346                  
    Other noninterest-bearing liabilities     66,151                       56,993                       55,795                  
    Total noninterest-bearing liabilities     586,296                       596,893                       584,141                  
    Shareholders’ equity     512,262                       512,208                       512,787                  
    Total liabilities and shareholders’ equity   $ 3,944,335                     $ 3,994,297                     $ 3,969,965                  
    Net interest income / interest rate spreads           $ 26,189       2.03 %           $ 26,003       1.85 %           $ 24,901       1.73 %
    Net interest margin                     2.88 %                     2.76 %                     2.69 %
                                                                             
    Total cost of deposits   $ 3,054,352     $ 23,552       3.13 %   $ 3,090,509     $ 26,032       3.35 %   $ 3,117,246     $ 27,800       3.59 %
    Total cost of funds   $ 3,365,922     $ 26,173       3.15 %   $ 3,425,096     $ 28,578       3.32 %   $ 3,401,383     $ 29,918       3.54 %
    (1 ) Includes income and average balances for interest-earning time deposits and other miscellaneous interest-earning assets.
    (2 ) Interest income and average rates for tax-exempt securities are presented on a tax-equivalent basis.
    (3 ) Average loan balances relate to loans held for investment and loans held for sale and include nonaccrual loans. Interest income on loans includes the effects of discount accretion and net deferred loan origination fees and costs accounted for as yield adjustments.
    RBB BANCORP AND SUBSIDIARIES
    SELECTED FINANCIAL HIGHLIGHTS
    (Unaudited)
     
        At or for the Three Months Ended  
        March 31,     December 31,     March 31,  
        2025     2024     2024  
    Per share data (common stock)                        
    Book value   $ 28.77     $ 28.66     $ 27.67  
    Tangible book value (1)   $ 24.63     $ 24.51     $ 23.68  
    Performance ratios                        
    Return on average assets, annualized     0.24 %     0.44 %     0.81 %
    Return on average shareholders’ equity, annualized     1.81 %     3.41 %     6.30 %
    Return on average tangible common equity, annualized (1)     2.12 %     3.98 %     7.37 %
    Noninterest income to average assets, annualized     0.24 %     0.27 %     0.34 %
    Noninterest expense to average assets, annualized     1.90 %     1.76 %     1.72 %
    Yield on average earning assets     5.76 %     5.79 %     5.92 %
    Yield on average loans     6.01 %     6.03 %     6.07 %
    Cost of average total deposits (2)     3.13 %     3.35 %     3.59 %
    Cost of average interest-bearing deposits     3.77 %     4.06 %     4.32 %
    Cost of average interest-bearing liabilities     3.73 %     3.94 %     4.19 %
    Net interest spread     2.03 %     1.85 %     1.73 %
    Net interest margin     2.88 %     2.76 %     2.69 %
    Efficiency ratio (3)     65.09 %     61.48 %     60.07 %
    Common stock dividend payout ratio     123.08 %     64.00 %     37.21 %
                             
    (1 ) Non-GAAP measure. See Non–GAAP reconciliations set forth at the end of this press release.
    (2 ) Total deposits include non-interest bearing deposits and interest-bearing deposits.
    (3 ) Ratio calculated by dividing noninterest expense by the sum of net interest income before provision for credit losses and noninterest income.
    RBB BANCORP AND SUBSIDIARIES
    SELECTED FINANCIAL HIGHLIGHTS
    (Unaudited)
    (Dollars in thousands)
     
        At or for the quarter ended  
        March 31,     December 31,     March 31,  
        2025     2024     2024  
    Credit Quality Data:                        
    Special mention loans   $ 64,279     $ 65,329     $ 20,580  
    Special mention loans to total loans     2.05 %     2.14 %     0.68 %
    Substandard loans HFI   $ 76,372     $ 89,141     $ 57,170  
    Substandard loans HFS   $ —     $ 11,195     $ —  
    Substandard loans HFI to total loans HFI     2.43 %     2.92 %     1.89 %
    Loans 30-89 days past due, excluding nonperforming loans   $ 5,927     $ 22,086     $ 20,950  
    Loans 30-89 days past due, excluding nonperforming loans, to total loans     0.19 %     0.72 %     0.69 %
    Nonperforming loans HFI   $ 60,380     $ 69,843     $ 35,935  
    Nonperforming loans HFS   $ —     $ 11,195     $ —  
    OREO   $ 4,170     $ —     $ 1,071  
    Nonperforming assets   $ 64,550     $ 81,038     $ 37,006  
    Nonperforming loans HFI to total loans HFI     1.92 %     2.29 %     1.19 %
    Nonperforming assets to total assets     1.61 %     2.03 %     0.95 %
                             
    Allowance for loan losses   $ 51,932     $ 47,729     $ 41,688  
    Allowance for loan losses to total loans HFI     1.65 %     1.56 %     1.38 %
    Allowance for loan losses to nonperforming loans HFI     86.01 %     68.34 %     116.01 %
    Net charge-offs   $ 2,643     $ 2,006     $ 184  
    Net charge-offs to average loans     0.35 %     0.26 %     0.02 %
                             
    Capital ratios (1)                        
    Tangible common equity to tangible assets (2)     11.10 %     11.08 %     11.56 %
    Tier 1 leverage ratio     12.07 %     11.92 %     12.16 %
    Tier 1 common capital to risk-weighted assets     17.87 %     17.94 %     19.10 %
    Tier 1 capital to risk-weighted assets     18.45 %     18.52 %     19.72 %
    Total capital to risk-weighted assets     24.41 %     24.49 %     25.91 %
    (1 ) March 31, 2025 capital ratios are preliminary.
    (2 ) Non-GAAP measure. See Non-GAAP reconciliations set forth at the end of this press release.
    RBB BANCORP AND SUBSIDIARIES
    SELECTED FINANCIAL HIGHLIGHTS
    (Unaudited)
     
    Loan Portfolio Detail   As of March 31, 2025   As of December 31, 2024     As of March 31, 2024  
    (dollars in thousands)   $   %   $     %     $     %  
    Loans:                                          
    Commercial and industrial   $ 135,538   4.3 %   $ 129,585       4.2 %   $ 121,441       4.0 %
    SBA     50,651   1.6 %     47,263       1.5 %     54,677       1.8 %
    Construction and land development     158,883   5.1 %     173,290       5.7 %     198,070       6.5 %
    Commercial real estate (1)     1,245,402   39.6 %     1,201,420       39.3 %     1,178,498       38.9 %
    Single-family residential mortgages     1,545,822   49.2 %     1,494,022       48.9 %     1,463,497       48.4 %
    Other loans     6,767   0.2 %     7,650       0.4 %     11,178       0.4 %
    Total loans (2)   $ 3,143,063   100.0 %   $ 3,053,230       100.0 %   $ 3,027,361       100.0 %
    Allowance for loan losses     (51,932 )       (47,729 )             (41,688 )        
    Total loans, net   $ 3,091,131       $ 3,005,501             $ 2,985,673          
    (1 ) Includes non-farm and non-residential loans, multi-family residential loans and non-owner occupied single family residential loans.
    (2 ) Net of discounts and deferred fees and costs of $808, $488, and $474 as of March 31, 2025, December 31, 2024, and March 31, 2024, respectively.
    Deposits   As of March 31, 2025   As of December 31, 2024     As of March 31, 2024  
    (dollars in thousands)   $   %   $     %     $     %  
    Deposits:                                          
    Noninterest-bearing demand   $ 528,205   16.8 %   $ 563,012       18.3 %   $ 539,517       17.8 %
    Savings, NOW and money market accounts     721,216   22.9 %     663,034       21.5 %     642,840       21.2 %
    Time deposits, $250,000 and under     863,962   27.5 %     882,438       28.6 %     901,738       29.8 %
    Time deposits, greater than $250,000     870,708   27.8 %     827,854       26.8 %     746,611       24.7 %
    Wholesale deposits (1)     158,537   5.0 %     147,451       4.8 %     197,623       6.5 %
    Total deposits   $ 3,142,628   100.0 %   $ 3,083,789       100.0 %   $ 3,028,329       100.0 %
    (1 ) Includes brokered deposits, collateralized deposits from the State of California, and deposits acquired through internet listing services.

    Non-GAAP Reconciliations

    Tangible Book Value Reconciliations

    Tangible book value per share is a non-GAAP disclosure. Management measures tangible book value per share to assess the Company’s capital strength and business performance and believes this is helpful to investors as additional tools for further understanding our performance. The following is a reconciliation of tangible book value to the Company shareholders’ equity computed in accordance with GAAP, as well as a calculation of tangible book value per share as of March 31, 2025, December 31, 2024, and March 31, 2024.

                           
    (dollars in thousands, except share and per share data)   March 31, 2025     December 31, 2024     March 31, 2024  
    Tangible common equity:                        
    Total shareholders’ equity   $ 510,306     $ 507,877     $ 513,986  
    Adjustments                        
    Goodwill     (71,498 )     (71,498 )     (71,498 )
    Core deposit intangible     (1,839 )     (2,011 )     (2,594 )
    Tangible common equity   $ 436,969     $ 434,368     $ 439,894  
    Tangible assets:                        
    Total assets-GAAP   $ 4,009,400     $ 3,992,477     $ 3,878,006  
    Adjustments                        
    Goodwill     (71,498 )     (71,498 )     (71,498 )
    Core deposit intangible     (1,839 )     (2,011 )     (2,594 )
    Tangible assets   $ 3,936,063     $ 3,918,968     $ 3,803,914  
    Common shares outstanding     17,738,628       17,720,416       18,578,132  
    Common equity to assets ratio     12.73 %     12.72 %     13.25 %
    Tangible common equity to tangible assets ratio     11.10 %     11.08 %     11.56 %
    Book value per share   $ 28.77     $ 28.66     $ 27.67  
    Tangible book value per share   $ 24.63     $ 24.51     $ 23.68  

    Return on Average Tangible Common Equity

    Management measures return on average tangible common equity (“ROATCE”) to assess the Company’s capital strength and business performance and believes this is helpful to investors as an additional tool for further understanding our performance. Tangible equity excludes goodwill and other intangible assets (excluding mortgage servicing rights) and is reviewed by banking and financial institution regulators when assessing a financial institution’s capital adequacy. This non-GAAP financial measure should not be considered a substitute for operating results determined in accordance with GAAP and may not be comparable to other similarly titled measures used by other companies. The following table reconciles ROATCE to its most comparable GAAP measure:

        Three Months Ended  
    (dollars in thousands)   March 31, 2025     December 31, 2024     March 31, 2024  
    Net income available to common shareholders   $ 2,290     $ 4,385     $ 8,036  
    Average shareholders’ equity     512,262       512,208       512,787  
    Adjustments:                        
    Average goodwill     (71,498 )     (71,498 )     (71,498 )
    Average core deposit intangible     (1,951 )     (2,129 )     (2,726 )
    Adjusted average tangible common equity   $ 438,813     $ 438,581     $ 438,563  
    Return on average common equity, annualized     1.81 %     3.41 %     6.30 %
    Return on average tangible common equity, annualized     2.12 %     3.98 %     7.37 %

    The MIL Network –

  • MIL-OSI: EZCORP Reports Second Quarter Fiscal 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    AUSTIN, Texas, April 28, 2025 (GLOBE NEWSWIRE) — EZCORP, Inc. (NASDAQ: EZPW), a leading provider of pawn transactions in the United States and Latin America, today announced results for its second quarter ended March 31, 2025.

    Unless otherwise noted, all amounts in this release are in conformity with U.S. generally accepted accounting principles (“GAAP”) and comparisons shown are to the same period in the prior year.

    SECOND QUARTER HIGHLIGHTS

    • Pawn loans outstanding (PLO) up 11% to $261.8 million.
    • Net income increased 18% to $25.4 million. On an adjusted basis1, net income increased 25% to $26.1 million.
    • Diluted earnings per share increased 14% to $0.33. On an adjusted basis, diluted earnings per share increased 21% to $0.34.
    • Adjusted EBITDA increased 23% to $45.1 million.
    • Total revenues increased 7% to $306.3 million, while gross profit increased 6% to $178.5 million.
    • Completed a $300.0 million private offering of senior notes due 2032.

    CEO COMMENTARY AND OUTLOOK
    Lachie Given, Chief Executive Officer, stated, “Our team delivered another impressive quarter of operational and financial performance, highlighted by record Q2 PLO, which drove strong growth in revenue and pawn service charges. Persistent inflation and economic pressure continue to impact value-conscious consumers who are increasingly turning to us for short-term cash and secondhand goods. Our strengthened operating model and best-in-class customer service also fueled the bottom line, driving a material increase in adjusted EBITDA to $45.1 million, up 23%.

    “Our consistent performance across geographies reflects our company-wide commitment to our core values of People, Pawn and Passion. In the U.S., PLO and adjusted EBITDA increased 15%, reflecting strong loan demand, increased average loan size and disciplined cost management. In Latin America, PLO increased 17% on a constant currency basis, and adjusted EBITDA grew 36%, propelled by robust demand for loans and secondhand goods and our strong operational execution.

    “Our disciplined capital allocation strategy prioritizes substantial liquidity to drive strong organic growth, pursue value-enhancing acquisitions and investments and meet near-term debt maturities. In March, we completed a $300.0 million private offering of senior notes, the Company’s largest financing transaction to date, expanding our financial flexibility for continued growth and meaningfully enhancing our capital structure, as we retire our 2025 convertible notes maturing on May 1.

    “It was another outstanding quarter for EZCORP, and I thank the team for their unwavering commitment to operational excellence as we continue to drive significantly enhanced value for our shareholders.”

    CONSOLIDATED RESULTS

    Three Months Ended March 31 As Reported   Adjusted1
    in millions, except per share amounts 2025
    		   2024
    		   2025
    		   2024
                   
    Total revenues $ 306.3     $ 285.6     $ 318.9     $ 285.6  
    Gross profit $ 178.5     $ 167.6     $ 185.0     $ 167.6  
    Income before tax $ 34.4     $ 28.7     $ 35.4     $ 28.0  
    Net income $ 25.4     $ 21.5     $ 26.1     $ 21.0  
    Diluted earnings per share $ 0.33     $ 0.29     $ 0.34     $ 0.28  
    EBITDA (non-GAAP measure) $ 43.8     $ 37.4     $ 45.1     $ 36.7  
                                   
    • PLO increased 11% to $261.8 million, up $26.1 million. On a same-store2 basis, PLO increased 11% due to increase in average loan size, continued strong pawn demand and improved operational performance.
    • Total revenues increased 7% and gross profit increased 6%, reflecting improved pawn service charge (PSC) revenues due to higher average PLO.
    • PSC increased 8% as a result of higher average PLO.
    • Merchandise sales gross margin at 34%, down from 35%. Aged general merchandise was 2.4% of total general merchandise inventory, up 14 basis points.
    • Net inventory increased 27%, as a result of the increase in PLO and decrease in inventory turnover to 2.5x, from 2.9x.
    • Store expenses increased 2% and were flat on a same-store basis.
    • General and administrative expenses increased 8%, primarily due to labor and a gain on a corporate lease termination in the prior year.
    • Income before taxes was $34.4 million, up 20% from $28.7 million, and adjusted EBITDA increased 23% to $45.1 million.
    • Diluted earnings per share increased 14% to $0.33. On an adjusted basis, diluted earnings per share increased 21% to $0.34.
    • Cash and cash equivalents at the end of the quarter was $505.2 million, up from $170.5 million as of September 30, 2024. The increase was primarily due to $300.0 million (less issuance costs) from the issuance of the Senior Notes due 2032 and cash from operating activities.

    SEGMENT RESULTS
    U.S. Pawn

    • PLO ended the quarter at $199.4 million, up 15% on a total and same-store basis due to increase in average loan size, increased loan demand and improved operational performance.
    • Total revenues increased 7% and gross profit increased 8%, reflecting higher PSC.
    • PSC increased 9% as a result of higher average PLO, partially offset by lower PLO yield.
    • Merchandise sales increased 2%, and gross margin decreased to 36% from 37%. Aged general merchandise decreased by 14 basis points to 2.8%, or $1.3 million of total general merchandise inventory. Excluding our three Max Pawn luxury stores in Las Vegas, aged general merchandise was 1.5%.
    • Net inventory increased 29%, due to increase in PLO, increase in customer layaways and a decrease in inventory turnover to 2.3x, from 2.6x.
    • Store expenses increased 3% (2% on a same-store basis) primarily due to labor, the majority of which was offset by a decrease in expenses related to our loyalty program.
    • Segment contribution increased 16% to $47.1 million.
    • Segment store count remained at 542.

    Latin America Pawn

    • PLO improved to $62.4 million, up 1% (17% on constant currency basis). On a same-store basis, PLO decreased 2% (14% increase on a constant currency basis). The constant currency increase was due to improved operational performance and increased loan demand.
    • Total revenues were up 9% (25% on constant currency basis), and gross profit increased 3% (18% on a constant currency basis), mainly due to increased PSC.
    • PSC increased to $28.3 million, up 4% (19% on a constant currency basis) as a result of higher average PLO.
    • Merchandise sales increased 5% (21% on constant currency basis) and merchandise sales gross margin decreased to 30% from 33%. Aged general merchandise increased to 1.9% from 1.4% of total general merchandise inventory.
    • Net inventory increased 23% (44% on a constant currency basis) due to increase in PLO and decrease in inventory turnover to 3.2x, from 3.6x.
    • Store expenses decreased 2% (13% increase on a constant currency basis) and decreased 4% on a same-store basis (11% increase on a constant currency basis). The constant currency increase was primarily due to increased labor, in line with store activity and minimum wage increases, offset by a decrease in expenses related to our loyalty program.
    • Segment contribution increased 30% to $10.6 million (43% on a constant currency basis). On an adjusted basis, segment contribution was up 42% to $11.6 million.
    • Segment store count increased by one to 742 due to the addition of nine de novo stores, the acquisition of one store, and the consolidation of nine stores.

    FORM 10-Q
    EZCORP’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2025 has been filed with the Securities and Exchange Commission. The report is available in the Investor Relations section of the Company’s website at http://investors.ezcorp.com. EZCORP shareholders may obtain a paper copy of the report, free of charge, by sending a request to the investor relations contact below.

    CONFERENCE CALL
    EZCORP will host a conference call on Tuesday, April 29, 2025, at 8:00 am Central Time to discuss Second Quarter Fiscal 2025 results. Analysts and institutional investors may participate on the conference call by registering online at https://registrations.events/direct/NTM1088399. Once registered you will receive the dial-in details with a unique PIN to join the call. The conference call will be webcast simultaneously to the public through this link: https://edge.media-server.com/mmc/p/hqptihjy. A replay of the conference call will be available online at http://investors.ezcorp.com shortly after the end of the call. 

    ABOUT EZCORP
    Formed in 1989, EZCORP has grown into a leading provider of pawn transactions in the United States and Latin America. We also sell pre-owned and recycled merchandise, primarily collateral forfeited from pawn lending operations and merchandise purchased from customers. We are dedicated to satisfying the short-term cash needs of consumers who are both cash and credit constrained, focusing on an industry-leading customer experience. EZCORP is traded on NASDAQ under the symbol EZPW and is a member of the S&P 1000 Index and Nasdaq Composite Index. 

    Follow us on social media:
    Facebook EZPAWN Official https://www.facebook.com/EZPAWN/
    EZCORP Instagram Official https://www.instagram.com/ezcorp_official/
    EZPAWN Instagram Official https://www.instagram.com/ezpawnofficial/
    EZCORP LinkedIn https://www.linkedin.com/company/ezcorp/

    FORWARD LOOKING STATEMENTS
    This announcement contains certain forward-looking statements regarding the Company’s strategy, initiatives and expected performance. These statements are based on the Company’s current expectations as to the outcome and timing of future events. All statements, other than statements of historical facts, including all statements regarding the Company’s strategy, initiatives and future performance, that address activities or results that the Company plans, expects, believes, projects, estimates or anticipates, will, should or may occur in the future, including future financial or operating results, are forward-looking statements. Actual results for future periods may differ materially from those expressed or implied by these forward-looking statements due to a number of uncertainties and other factors, including operating risks, liquidity risks, legislative or regulatory developments, market factors, current or future litigation and risks associated with the COVID-19 pandemic. For a discussion of these and other factors affecting the Company’s business and prospects, see the Company’s annual, quarterly and other reports filed with the Securities and Exchange Commission. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time.

    Contact:
    Email: Investor_Relations@ezcorp.com
    Phone: (512) 314-2220

           
    EZCORP, Inc.
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (Unaudited)
           
      Three Months Ended
    March 31,    		   Six Months Ended
    March 31,
    (in thousands, except per share amounts) 2025   2024   2025   2024
    Revenues:              
    Merchandise sales $ 169,467     $ 164,687     $ 355,810     $ 344,090  
    Jewelry scrapping sales   20,938       13,714       37,670       27,796  
    Pawn service charges   115,871       107,163       232,923       213,612  
    Other revenues   40       75       83       132  
    Total revenues   306,316       285,639       626,486       585,630  
    Merchandise cost of goods sold   111,555       106,259       233,379       221,469  
    Jewelry scrapping cost of goods sold   16,309       11,788       29,251       23,996  
    Gross profit   178,452       167,592       363,856       340,165  
    Operating expenses:              
    Store expenses   116,527       114,582       232,978       225,137  
    General and administrative   19,640       18,266       38,309       34,809  
    Depreciation and amortization   8,020       8,219       16,355       16,784  
    Loss (gain) on sale or disposal of assets and other   17       3       25       (169 )
    Other income   —       (765 )     —       (765 )
    Total operating expenses   144,204       140,305       287,667       275,796  
    Operating income   34,248       27,287       76,189       64,369  
    Interest expense   3,281       3,402       6,428       6,842  
    Interest income   (1,875 )     (2,882 )     (3,968 )     (5,521 )
    Equity in net income of unconsolidated affiliates   (1,505 )     (1,719 )     (2,980 )     (2,872 )
    Other (income) expense   (65 )     (165 )     913       (436 )
    Income before income taxes   34,412       28,651       75,796       66,356  
    Income tax expense   9,022       7,172       19,390       16,407  
    Net income $ 25,390     $ 21,479     $ 56,406     $ 49,949  
                   
    Basic earnings per share $ 0.46     $ 0.39     $ 1.03     $ 0.91  
    Diluted earnings per share $ 0.33     $ 0.29     $ 0.74     $ 0.65  
                   
    Weighted-average basic shares outstanding   54,965       55,093       54,895       55,084  
    Weighted-average diluted shares outstanding   83,140       83,045       83,247       84,948  
                                   
    EZCORP, Inc.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (Unaudited)
               
    (in thousands, except share and per share amounts) March 31,
    2025    		   March 31,
    2024    		   September 30,
    2024
               
    Assets:          
    Current assets:          
    Cash and cash equivalents $ 505,239     $ 229,111     $ 170,513  
    Restricted cash   9,499       8,581       9,294  
    Pawn loans   261,830       235,773       274,084  
    Pawn service charges receivable, net   42,323       38,268       44,013  
    Inventory, net   207,783       163,429       191,923  
    Prepaid expenses and other current assets   40,283       47,142       39,171  
    Total current assets   1,066,957       722,304       728,998  
    Investments in unconsolidated affiliates   13,967       13,162       13,329  
    Other investments   51,903       51,220       51,900  
    Property and equipment, net   64,150       63,306       65,973  
    Right-of-use assets, net   229,878       243,752       226,602  
    Goodwill   305,239       310,658       306,478  
    Intangible assets, net   57,079       61,714       58,451  
    Deferred tax asset, net   25,090       26,247       25,362  
    Other assets, net   15,365       15,779       16,144  
    Total assets $ 1,829,628     $ 1,508,142     $ 1,493,237  
               
    Liabilities and equity:          
    Current liabilities:          
    Current maturities of long-term debt, net $ 103,325     $ 34,347     $ 103,072  
    Accounts payable, accrued expenses and other current liabilities   70,843       62,838       85,737  
    Customer layaway deposits   31,016       20,352       21,570  
    Operating lease liabilities, current   58,855       55,658       58,998  
    Total current liabilities   264,039       173,195       269,377  
    Long-term debt, net   517,188       326,573       224,256  
    Deferred tax liability, net   1,818       465       2,080  
    Operating lease liabilities   182,873       197,285       180,616  
    Other long-term liabilities   12,135       10,228       12,337  
    Total liabilities   978,053       707,746       688,666  
    Commitments and contingencies          
    Stockholders’ equity:          
    Class A Non-voting Common Stock, par value $0.01 per share; shares authorized: 100 million; issued and outstanding: 52,043,599 as of March 31, 2025; 52,057,309 as of March 31, 2024; and 51,582,698 as of September 30, 2024   520       521       516  
    Class B Voting Common Stock, convertible, par value $0.01 per share; shares authorized: 3 million; issued and outstanding: 2,970,171   30       30       30  
    Additional paid-in capital   347,796       345,174       348,366  
    Retained earnings   561,211       477,683       507,206  
    Accumulated other comprehensive loss   (57,982 )     (23,012 )     (51,547 )
    Total equity   851,575       800,396       804,571  
    Total liabilities and equity $ 1,829,628     $ 1,508,142     $ 1,493,237  
                           
    EZCORP, Inc.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (Unaudited)
       
      Six Months Ended
    March 31,
    (in thousands) 2025   2024
       
    Operating activities:      
    Net income $ 56,406     $ 49,949  
    Adjustments to reconcile net income to net cash provided by operating activities:      
    Depreciation and amortization   16,355       16,784  
    Amortization of deferred financing costs   725       807  
    Non-cash lease expense   28,943       29,514  
    Deferred income taxes   10       515  
    Other adjustments   (1,241 )     (1,429 )
    Provision for inventory reserve   39       183  
    Stock compensation expense   5,001       4,844  
    Equity in net income from investment in unconsolidated affiliates   (2,980 )     (2,872 )
    Changes in operating assets and liabilities, net of business acquisitions:      
    Pawn service charges receivable   1,547       1,071  
    Inventory   (5,390 )     1,617  
    Prepaid expenses, other current assets and other assets   444       (8,699 )
    Accounts payable, accrued expenses and other liabilities   (45,490 )     (57,531 )
    Customer layaway deposits   9,640       886  
    Income taxes   (1,081 )     909  
    Net cash provided by operating activities   62,928       36,548  
    Investing activities:      
    Loans made   (484,611 )     (433,194 )
    Loans repaid   284,095       262,970  
    Recovery of pawn loan principal through sale of forfeited collateral   198,387       188,351  
    Capital expenditures, net   (13,966 )     (13,654 )
    Acquisitions, net of cash acquired   (79 )     (8,610 )
    Investment in unconsolidated affiliate   (509 )     (850 )
    Investment in other investments   —       (15,000 )
    Dividends from unconsolidated affiliates   1,902       1,745  
    Net cash used in investing activities   (14,781 )     (18,242 )
    Financing activities:      
    Taxes paid related to net share settlement of equity awards   (3,971 )     (3,253 )
    Proceeds from borrowings   300,000       —  
    Debt issuance cost   (5,310 )     —  
    Purchase and retirement of treasury stock   (3,997 )     (6,010 )
    Payments of finance leases   (266 )     (276 )
    Net cash provided by (used in) financing activities   286,456       (9,539 )
    Effect of exchange rate changes on cash and cash equivalents and restricted cash   328       (43 )
    Net increase in cash, cash equivalents and restricted cash   334,931       8,724  
    Cash and cash equivalents and restricted cash at beginning of period   179,807       228,968  
    Cash and cash equivalents and restricted cash at end of period $ 514,738     $ 237,692  
           
    EZCORP, Inc.
    OPERATING SEGMENT RESULTS
       
      Three Months Ended March 31, 2025
    (Unaudited)
    (in thousands) U.S. Pawn   Latin America
    Pawn    		   Other
    Investments    		   Total Segments   Corporate
    Items    		   Consolidated
                           
    Revenues:                      
    Merchandise sales $ 116,915     $ 52,552     $ —     $ 169,467     $ —     $ 169,467  
    Jewelry scrapping sales   16,898       4,040       —       20,938       —       20,938  
    Pawn service charges   87,548       28,323       —       115,871       —       115,871  
    Other revenues   24       16       —       40       —       40  
    Total revenues   221,385       84,931       —       306,316       —       306,316  
    Merchandise cost of goods sold   74,772       36,783       —       111,555       —       111,555  
    Jewelry scrapping cost of goods sold   13,235       3,074       —       16,309       —       16,309  
    Gross profit   133,378       45,074       —       178,452       —       178,452  
    Segment and corporate expenses (income):                      
    Store expenses   83,532       32,995       —       116,527       —       116,527  
    General and administrative   —       —       —       —       19,640       19,640  
    Depreciation and amortization   2,682       1,989       —       4,671       3,349       8,020  
    Loss on sale or disposal of assets and other   17       —       —       17       —       17  
    Interest expense   —       —       —       —       3,281       3,281  
    Interest income   —       (337 )     (605 )     (942 )     (933 )     (1,875 )
    Equity in net (income) loss of unconsolidated affiliates   —       —       (1,866 )     (1,866 )     361       (1,505 )
    Other expense (income)   4       (137 )     —       (133 )     68       (65 )
    Segment contribution $ 47,143     $ 10,564     $ 2,471     $ 60,178          
    Income (loss) before income taxes             $ 60,178     $ (25,766 )   $ 34,412  
                                       
      Three Months Ended March 31, 2024
    (Unaudited)
    (in thousands) U.S. Pawn   Latin America
    Pawn    		   Other
    Investments    		   Total Segments   Corporate
    Items    		   Consolidated
                           
    Revenues:                      
    Merchandise sales $ 114,849     $ 49,838     $ —     $ 164,687     $ —     $ 164,687  
    Jewelry scrapping sales   12,686       1,028       —       13,714       —       13,714  
    Pawn service charges   80,010       27,153       —       107,163       —       107,163  
    Other revenues   29       15       31       75       —       75  
    Total revenues   207,574       78,034       31       285,639       —       285,639  
    Merchandise cost of goods sold   72,798       33,461       —       106,259       —       106,259  
    Jewelry scrapping cost of goods sold   10,794       994       —       11,788       —       11,788  
    Gross profit   123,982       43,579       31       167,592       —       167,592  
    Segment and corporate expenses (income):                      
    Store expenses   80,840       33,742       —       114,582       —       114,582  
    General and administrative   —       —       —       —       18,266       18,266  
    Depreciation and amortization   2,516       2,392       —       4,908       3,311       8,219  
    (Gain) loss on sale or disposal of assets and other   (30 )     (66 )     —       (96 )     99       3  
    Other income   —       —       —       —       (765 )     (765 )
    Interest expense   —       —       —       —       3,402       3,402  
    Interest income   —       (608 )     (633 )     (1,241 )     (1,641 )     (2,882 )
    Equity in net income of unconsolidated affiliates   —       —       (1,719 )     (1,719 )     —       (1,719 )
    Other expense (income)   —       1       14       15       (180 )     (165 )
    Segment contribution $ 40,656     $ 8,118     $ 2,369     $ 51,143          
    Income (loss) before income taxes             $ 51,143     $ (22,492 )   $ 28,651  
                                       
      Six Months Ended March 31, 2025
    (Unaudited)
    (in thousands) U.S. Pawn   Latin America
    Pawn    		   Other
    Investments    		   Total Segments   Corporate
    Items    		   Consolidated
                           
    Revenues:                      
    Merchandise sales $ 245,715     $ 110,095     $ —     $ 355,810     $ —     $ 355,810  
    Jewelry scrapping sales   32,396       5,274       —       37,670       —       37,670  
    Pawn service charges   175,424       57,499       —       232,923       —       232,923  
    Other revenues   51       32       —       83       —       83  
    Total revenues   453,586       172,900       —       626,486       —       626,486  
    Merchandise cost of goods sold   156,328       77,051       —       233,379       —       233,379  
    Jewelry scrapping cost of goods sold   25,203       4,048       —       29,251       —       29,251  
    Gross profit   272,055       91,801       —       363,856       —       363,856  
    Segment and corporate expenses (income):                      
    Store expenses   166,621       66,357       —       232,978       —       232,978  
    General and administrative   —       —       —       —       38,309       38,309  
    Depreciation and amortization   5,399       4,035       —       9,434       6,921       16,355  
    Loss on sale or disposal of assets and other   17       8       —       25       —       25  
    Interest expense   —       —       —       —       6,428       6,428  
    Interest income   —       (539 )     (1,199 )     (1,738 )     (2,230 )     (3,968 )
    Equity in net (income) loss of unconsolidated affiliates   —       —       (3,489 )     (3,489 )     509       (2,980 )
    Other (income) loss   (7 )     (208 )     —       (215 )     1,128       913  
    Segment contribution   100,025       22,148     $ 4,688     $ 126,861          
    Income (loss) before income taxes             $ 126,861     $ (51,065 )   $ 75,796  
                                       
      Six Months Ended March 31, 2024
    (Unaudited)
    (in thousands) U.S. Pawn   Latin America
    Pawn    		   Other
    Investments    		   Total Segments   Corporate
    Items    		   Consolidated
                           
    Revenues:                      
    Merchandise sales $ 240,362     $ 103,728     $ —     $ 344,090     $ —     $ 344,090  
    Jewelry scrapping sales   25,501       2,295       —       27,796       —       27,796  
    Pawn service charges   159,083       54,529       —       213,612       —       213,612  
    Other revenues   66       31       35       132       —       132  
    Total revenues   425,012       160,583       35       585,630       —       585,630  
    Merchandise cost of goods sold   151,507       69,962       —       221,469       —       221,469  
    Jewelry scrapping cost of goods sold   22,078       1,918       —       23,996       —       23,996  
    Gross profit   251,427       88,703       35       340,165       —       340,165  
    Segment and corporate expenses (income):                      
    Store expenses   158,095       67,042       —       225,137       —       225,137  
    General and administrative   —       —       —       —       34,809       34,809  
    Depreciation and amortization   5,140       4,731       —       9,871       6,913       16,784  
    (Gain) loss on sale or disposal of assets and other   (4 )     (262 )     —       (266 )     97       (169 )
    Other income   —       —       —       —       (765 )     (765 )
    Interest expense   —       —       —       —       6,842       6,842  
    Interest income   —       (1,028 )     (1,206 )     (2,234 )     (3,287 )     (5,521 )
    Equity in net income of unconsolidated affiliates   —       —       (2,872 )     (2,872 )     —       (2,872 )
    Other (income) expense   —       (47 )     15       (32 )     (404 )     (436 )
    Segment contribution $ 88,196     $ 18,267     $ 4,098     $ 110,561          
    Income (loss) before income taxes             $ 110,561     $ (44,205 )   $ 66,356  
                                       
    EZCORP, Inc.
    STORE COUNT ACTIVITY
    (Unaudited)
       
      Three Months Ended March 31, 2025
      U.S. Pawn
    		   Latin America
    Pawn    		   Consolidated
                   
    As of December 31, 2024   542       741       1,283  
    New locations opened   —       9       9  
    Locations acquired   —       1       1  
    Locations combined or closed   —       (9 )     (9 )
    As of March 31, 2025   542       742       1,284  
                           
      Three Months Ended March 31, 2024
      U.S. Pawn   Latin America
    Pawn    		   Consolidated
               
    As of December 31, 2023   530       707       1,237  
    New locations opened   —       9       9  
    Locations acquired   6       —       6  
    Locations combined or closed   (1 )     (5 )     (6 )
    As of March 31, 2024   535       711       1,246  
                           
      Six Months Ended March 31, 2025
      U.S. Pawn
    		   Latin America
    Pawn    		   Consolidated
                   
    As of September 30, 2024   542       737       1,279  
    New locations opened   —       13       13  
    Locations acquired   —       1       1  
    Locations combined or closed   —       (9 )     (9 )
    As of March 31, 2025   542       742       1,284  
                           
      Six Months Ended March 31, 2024
      U.S. Pawn   Latin America
    Pawn    		   Consolidated
               
    As of September 30, 2023   529       702       1,231  
    New locations opened   —       14       14  
    Locations acquired   7       —       7  
    Locations combined or closed   (1 )     (5 )     (6 )
    As of March 31, 2024   535       711       1,246  
                           

    Non-GAAP Financial Information (Unaudited)
    In addition to the financial information prepared in conformity with accounting U.S. generally accepted accounting principles (“GAAP”), we provide certain other non-GAAP financial information on a constant currency (“constant currency”) and adjusted basis. We use constant currency results to evaluate our Latin America Pawn operations, which are denominated primarily in Mexican pesos, Guatemalan quetzales and other Latin American currencies. We believe that presentation of constant currency and adjusted results is meaningful and useful in understanding the activities and business metrics of our operations and reflects an additional way of viewing aspects of our business that, when viewed with GAAP results, provides a more complete understanding of factors and trends affecting our business. We provide non-GAAP financial information for informational purposes and to enhance understanding of our GAAP consolidated financial statements. We use this non-GAAP financial information primarily to evaluate and compare operating results across accounting periods.

    Readers should consider the information in addition to, but not instead of or superior to, our financial statements prepared in accordance with GAAP. This non-GAAP financial information may be determined or calculated differently by other companies, limiting the usefulness of those measures for comparative purposes.

    Constant currency results reported herein are calculated by translating consolidated balance sheet and consolidated statement of operations items denominated in local currency to U.S. dollars using the exchange rate from the prior-year comparable period, as opposed to the current period, in order to exclude the effects of foreign currency rate fluctuations. In addition, we have an equity method investment that is denominated in Australian dollars and is translated into U.S. dollars. We used the end-of-period rate for balance sheet items and the average closing daily exchange rate on a monthly basis during the appropriate period for statement of operations items. The end-of-period and approximate average exchange rates for each applicable currency as compared to U.S. dollars as of and for the three and six months ended March 31, 2025 and 2024 were as follows:

      March 31,   Three Months Ended
    March 31,    		   Six Months Ended
    March 31,
      2025
    		   2024
    		   2025
    		   2024
    		   2025
    		   2024
                                                   
    Mexican peso   20.4       16.6       20.4       17.0       20.3       17.3  
    Guatemalan quetzal   7.6       7.6       7.6       7.6       7.5       7.6  
    Honduran lempira   25.2       24.4       25.2       24.4       25.0       24.4  
    Australian dollar   1.6       1.5       1.6       1.5       1.6       1.5  
                                                   

    Our statement of operations constant currency results reflect the monthly exchange rate fluctuations and so are not directly calculable from the above rates. Constant currency results, where presented, also exclude the foreign currency gain or loss.

    Miscellaneous Non-GAAP Financial Measures

      Three Months Ended
    March 31,
    (in millions) 2025   2024
           
    Net income $ 25.4     $ 21.5  
    Interest expense   3.3       3.4  
    Interest income   (1.9 )     (2.9 )
    Income tax expense   9.0       7.2  
    Depreciation and amortization   8.0       8.2  
    EBITDA $ 43.8     $ 37.4  
                   
      Total
    Revenues    		   Gross
    Profit    		   Income
    Before Tax    		   Tax Effect   Net
    Income    		   Diluted EPS   EBITDA
                               
    2025 Q2 Reported $ 306.3     $ 178.5     $ 34.4     $ 9.0     $ 25.4     $ 0.33     $ 43.8  
    FX Impact   —       —       0.1       —       0.1       —       0.1  
    Constant Currency   12.6       6.5       0.9       0.3       0.6       0.01       1.2  
    2025 Q2 Adjusted $ 318.9     $ 185.0     $ 35.4     $ 9.3     $ 26.1     $ 0.34     $ 45.1  
                                                           
      Total
    Revenues    		   Gross
    Profit    		   Income
    Before Tax    		   Tax Effect   Net
    Income    		   Diluted EPS   EBITDA
                               
    2024 Q2 Reported $ 285.6     $ 167.6     $ 28.7     $ 7.2     $ 21.5     $ 0.29     $ 37.4  
    Corporate Lease Termination   —       —       (0.8 )     (0.2 )     (0.6 )     (0.01 )     (0.8 )
    FX Impact   —       —       0.1       —       0.1       —       0.1  
    2024 Q2 Adjusted $ 285.6     $ 167.6     $ 28.0     $ 7.0     $ 21.0     $ 0.28     $ 36.7  
                                                           
      Three Months Ended
    March 31, 2025    		   Six Months Ended
    March 31, 2025
    (in millions) U.S. Dollar
    Amount    		   Percentage
    Change YOY    		   U.S. Dollar
    Amount    		   Percentage
    Change YOY
                   
    Consolidated revenues $ 306.3       7 %   $ 626.5       7 %
    Currency exchange rate fluctuations   12.6           22.0      
    Constant currency consolidated revenues $ 318.9       12 %   $ 648.5       11 %
                   
    Consolidated gross profit $ 178.5       6 %   $ 363.9       7 %
    Currency exchange rate fluctuations   6.5           11.3      
    Constant currency consolidated gross profit $ 185.0       10 %   $ 375.2       10 %
                   
    Consolidated net inventory $ 207.8       27 %   $ 207.8       27 %
    Currency exchange rate fluctuations   8.7           8.7      
    Constant currency consolidated net inventory $ 216.5       32 %   $ 216.5       32 %
                   
    Latin America Pawn gross profit $ 45.1       3 %   $ 91.8       3 %
    Currency exchange rate fluctuations   6.5           11.3      
    Constant currency Latin America Pawn gross profit $ 51.6       18 %   $ 103.1       16 %
                   
    Latin America Pawn PLO $ 62.4       1 %   $ 62.4       1 %
    Currency exchange rate fluctuations   10.0           10.0      
    Constant currency Latin America Pawn PLO $ 72.4       17 %   $ 72.4       17 %
                   
    Latin America Pawn PSC revenues $ 28.3       4 %   $ 57.5       5 %
    Currency exchange rate fluctuations   3.9           6.7      
    Constant currency Latin America Pawn PSC revenues $ 32.2       19 %   $ 64.2       18 %
                   
    Latin America Pawn merchandise sales $ 52.6       5 %   $ 110.1       6 %
    Currency exchange rate fluctuations   7.9           14.5      
    Constant currency Latin America Pawn merchandise sales $ 60.5       21 %   $ 124.6       20 %
                   
    Latin America Pawn segment profit before tax $ 10.6       30 %   $ 22.2       21 %
    Currency exchange rate fluctuations   1.0           2.0      
    Constant currency Latin America Pawn segment profit before tax $ 11.6       43 %   $ 24.2       32 %
                                   

    The MIL Network –

  • MIL-OSI Economics: Luis de Guindos: Presentation of the ECB Annual Report 2024 to the Committee on Economic and Monetary Affairs of the European Parliament

    Source: European Central Bank

    Introductory remarks by Luis de Guindos, Vice-President of the ECB, at the ECON Committee of the European Parliament

    Brussels, 28 April 2025

    It is a pleasure to present the ECB’s Annual Report for 2024 to this esteemed Committee. Concurrently, we are also publishing our response to the European Parliament’s resolution on our previous Annual Report. These elements – our Annual Report, today’s discussion and our response to your resolution – are central to the ECB’s accountability to the European Parliament and highlight the open dialogue between our institutions.

    In my remarks today, I will discuss the economic and financial stability landscape and consider the challenges that lie ahead. I will share the ECB’s assessment and underline the need to invest in measures to enhance Europe’s resilience amid a volatile external environment and an uncertain outlook.

    Economic developments and monetary policy

    As highlighted in the Annual Report, economic activity in the euro area began to recover gradually in 2024. Incoming data suggest modest growth in the first quarter of 2025. However, risks have intensified amid exceptional uncertainty, largely related to trade. Euro area exporters are now facing new barriers, and tensions in financial markets and geopolitical uncertainty will likely weigh on business investment. In this environment, consumers may become cautious about the future and hold back spending.

    In the medium term, a resilient labour market, higher real incomes and the impact of our monetary policy easing should support spending. Moreover, recent policy initiatives focused on defence spending and infrastructure investment at both national and EU levels are expected to positively affect activity and strengthen long-term growth.

    Turning to inflation, headline figures fell further towards the ECB’s 2% target in 2024, supported by our then restrictive monetary policy. Looking ahead, inflation is expected to hover around our target. However, global trade disruptions are adding uncertainty to the inflation outlook. Declining energy prices, further wage moderation and a stronger euro could dampen inflation, potentially amplified by weaker demand for euro area exports and a re-routing of other countries’ exports into the euro area. Conversely, a fragmentation of global supply chains could raise import prices and hence inflation.

    Following a period of holding interest rates steady in early 2024, the ECB started reducing its key interest rates in June. So far, we have lowered the rate on the deposit facility by 175 basis points to 2.25%, in view of the disinflation process being well on track. We are determined to ensure that inflation stabilises sustainably at our 2% medium-term target. Especially given current uncertainty, we will continue to follow a data-dependent and meeting-by-meeting approach to setting the appropriate monetary policy stance, and we are not pre-committing to a particular rate path.

    Maintaining financial stability

    Let me also say a few words on financial stability in the light of recent developments.

    The recent trade policy upheaval has triggered the most significant financial market turmoil since the pandemic. While euro area banks’ valuations have also been affected, their fundamentals remain robust and they are well positioned to withstand potential shocks thanks to their sizeable capital and liquidity buffers.

    But despite the resilience of our financial sector, these developments warrant careful monitoring. Sharp adjustments in financial markets could become disorderly, particularly if they are amplified by the growing size and influence of non-bank financial institutions. In addition, trade conflicts could pose challenges for both households and corporates, translating into rising credit risk for banks and non-banks alike. Finally, a combination of weaker growth and heightened spending needs could increase pressures on government finances.

    To ensure our banking system remains resilient in this environment, we need a regulatory framework that is fit for purpose. Decisive action is required to move us closer to completing the banking union. This includes an effective crisis management and deposit insurance framework that extends to small and medium-sized banks, and progress on a European deposit insurance scheme. The recent financial market turmoil also highlights that non-banks must be subject to robust rules, and that gaps in the regulatory framework need to be closed so they are not treated differently to regular banks.

    The ECB supports efforts to simplify the regulatory framework. However, this should not be confused with deregulation. The resilience of our financial system can largely be attributed to the rules established since the global financial crisis. Financial stability is a global public good – it is in everybody’s interest and must remain the long-term goal.

    Europe’s future policy priorities

    A strong and resilient financial sector will also play a crucial role – alongside the public sector – in financing Europe’s key policy priorities as we confront a series of generational challenges.

    The defence investments foreseen in the EU will have an impact on national public finances. By spending jointly through EU-level initiatives, we can achieve greater scale, reduce costs and strengthen our strategic autonomy – all while supporting long-term growth and fiscal sustainability.

    In addition to the pressing security challenges, investing in the green transition and digital innovation remains vital to boosting Europe’s competitiveness and closing the productivity gap with our global peers.

    Finally, the evolving global landscape underscores the need to strengthen trade within the EU’s Single Market, as emphasised by the European Commission.[1] A more integrated and deeper Single Market is essential if we are to achieve the scale required for European firms to thrive and expand, thereby enhancing our resilience against external shocks. We also need to ensure that innovative firms can access the financing they need in order to grow. In this context, completing the savings and investment union is both urgent and essential.

    Conclusion

    Faced with a complex and uncertain landscape, the ECB remains firmly committed to its primary mandate of maintaining price stability. This is the most important contribution we can make towards fostering a strong and prosperous Europe.

    I know that both our institutions are united by our commitment to serve the people of Europe, within our respective mandates. Our dialogue today is testament to this.

    I now look forward to your questions.

    MIL OSI Economics –

  • MIL-OSI USA: SEC Publishes New Market Data, Analysis, and Visualizations

    Source: Securities and Exchange Commission

    The Securities and Exchange Commission’s Division of Economic and Risk Analysis (DERA) has published new data and analysis on the key market areas of public issuers, exempt offerings, Commercial Mortgage-Backed Securities (CMBS), Asset-Backed Securities (ABS), money market funds, and security-based swap dealers (SBSD) in an effort to increase transparency and understanding of our capital markets amongst the public.

    “These reports reflect important information that is valuable to investors, other market participants, and academics,” said Robert Fisher, Acting Chief Economist and Director of the SEC’s Division of Economic and Risk Analysis. “Understanding these markets is critical because Americans rely on them to fund their retirements, educations, and other priorities.”

    DERA has issued the following reports:

    • Counts of Reporting Issuers Subject to the Securities Act of 1933 and the Securities Exchange Act of 1934 and Public Firms in 2023 analyzes the number of reporting issuers that in 2023 were either registered under the Exchange Act of 1934 or registered offerings under the Securities Act of 1933 and filed Forms 10-K, 10-KT, 20-F, or 40-F. This study then divides the 8,351 registered issuers into different categories that can be used to determine different counts of public companies based on various definitions and methodologies.  
    • Market Statistics of Exempt Offerings under Regulations A, D, and Crowdfunding provides updated statistics through calendar year 2024 for these regulations, including the number of offerings by type and year and the total amount of capital raised.
    • Issuance and Credit Rating Activity in the CMBS Market provides information on approximately $1.6 trillion of CMBS issuances over a nine-year period, including the number of new CMBS deals and the types of offerings, and considers and analyzes the CMBS rating activity of SEC-registered nationally recognized statistical rating organizations (NRSROs).
    • Asset-Backed Securities Markets: Issuance and Structure examines data on approximately $6 trillion of U.S. ABS issuances between 2014 and 2024, providing information about the size and structure of ABS markets, statistics on new ABS deals, and analysis of the ABS rating activity of NRSROs for the relevant period. 
    • Influences on Money Market Fund Price Variations During the March 2020 Market Dislocation presents an analysis of Form N-MFP submissions between December 2019 and December 2020 for all money market funds, including the impact of the Covid-19 pandemic on weekly fluctuations in fund prices, and identifies factors that influenced market prices.
    • Security-Based Swap Dealer Statistics analyzes the population of conditionally registered SBSDs as of December 31, 2024.

    DERA integrates financial economics and rigorous data analytics into the SEC’s core mission. It conducts detailed, high-quality economic and statistical analyses to advise on Commission matters and helps identify and respond to issues, trends, and innovations in the marketplace.

    MIL OSI USA News –

  • MIL-OSI United Kingdom: UK Resilience Academy to help secure Britain’s future with “generational upgrade” in emergency training

    Source: United Kingdom – Government Statements

    Press release

    UK Resilience Academy to help secure Britain’s future with “generational upgrade” in emergency training

    Chancellor of the Duchy of Lancaster Pat McFadden has launched the UK Resilience Academy

    • Academy to train more than 4,000 public and private sector workers in crisis skills and expertise every year, strengthening resilience in communities across the UK.
    • Biggest upgrade to resilience workers’ occupational standards in a generation to help keep the public safe as part of the Plan for Change.
    • Pat McFadden unveils Risk Vulnerability Tool to help Ministers and civil servants support vulnerable groups during a crisis and learn lessons from the Covid pandemic.

    Communities up and down the country are set to be better protected in the face of national crises from today as the government opens the UK Resilience Academy – helping to secure Britain’s future as it delivers on the Plan for Change.

    The cutting-edge centre will transform crisis training for thousands of public and private sector workers, with at least 4,000 people set to be trained at the Academy’s North Yorkshire campus every year, on courses covering everything from business continuity planning, to crowd management and crisis communications.

    The UK Resilience Academy, which will train citizens, businesses, the emergency services, the Armed Forces and the Civil Service, will sit at the heart of a newly formed network of public and private sector organisations – including the College for National Security and the Defence Academy – who have signed a Memorandum of Understanding to work together to improve the quality and accessibility of resilience training. 

    Today’s announcement comes as the Chancellor of the Duchy of Lancaster unveils new software that will allow decision makers to identify groups that are vulnerable to particular risks, by mapping real-time crisis data alongside demographic statistics.

    The Risk Vulnerability tool is now available to 10,000 ministers and civil servants across Whitehall and the Devolved Nations. It has been developed by the National Situation Centre and the Office for National Statistics, and will feed directly into government decision making during future crises. 

    Pat McFadden, Chancellor of the Duchy of Lancaster, said: 

    Our first duty is to keep people safe – and through our Plan for Change, we are creating strong and resilient communities across the country. 

    Today, we’re making a generational upgrade to crisis training for thousands of workers, and helping decision makers identify vulnerable groups in a crisis. This is all part of our plan to secure Britain’s future.

    In extreme cold weather, the software would show demographic data, such as households that rely either on gas or electricity, or areas with elderly people who would need support with food supplies, alongside near real-time data such as live weather warnings and power outages, helping decision-makers target support to those most in need. When planning for potential flooding, ministers and officials can identify areas where people have less mobility, and target these if evacuation is needed.

    This capability will strengthen the government’s approach to crisis management and better protect vulnerable people – learning from past events such as the Covid-19 pandemic.

    Updates to this page

    Published 28 April 2025

    MIL OSI United Kingdom –

  • MIL-OSI Security: Michigan Small Business, Slifco Electric, LLC, Pays Over $1.4 Million To Settle False Claims Act Allegations Regarding Paycheck Protection Program

    Source: Office of United States Attorneys

    DETROIT – Acting United States Attorney Julie A. Beck announced today that a Sterling Heights, Michigan small business, Slifco Electric, LLC, which is wholly owned by John P. Slifco, has paid $1,460,062 to settle allegations that it violated the False Claims Act by falsely certifying to the U.S. Small Business Administration (SBA) that it was eligible for full loan forgiveness under the Paycheck Protection Program (PPP).

    Congress created the PPP in March 2020 to provide emergency financial assistance to American businesses suffering from the economic effects of the COVID-19 pandemic. Under the PPP, eligible small businesses could receive forgivable loans guaranteed by the SBA. When applying for PPP loan forgiveness, borrowers were required to certify the truthfulness and accuracy of information provided to the SBA, including disclosing whether the borrower had paid any dividends or other capital distributions to its owner(s) during the loan forgiveness covered period.

    In April 2020, Slifco Electric obtained a first draw PPP loan for $2,633,170. The United States alleged that Slifco Electric falsely certified its eligibility for full forgiveness of that loan, given its failure to disclose that, from March 13, 2020, through the end of the loan forgiveness covered period, Slifco Electric paid $730,031 in capital distributions to its only owner, John P. Slifco, for Mr. Slifco’s personal expenses.

    “When businesses and individuals obtained COVID-19 relief funds that they didn’t deserve, taxpayers were cheated,” said Acting U.S. Attorney Julie A. Beck for the Eastern District of Michigan. “This office is committed to addressing fraud perpetrated against government programs, and we will continue to hold accountable those who violate the law.”

    “The favorable settlement in this case is the product of enhanced efforts by federal agencies such as the Small Business Administration working with the U.S. Attorney’s Office, SBA’s Office of Inspector General and other Federal law enforcement agencies, as well as private individuals who uncover fraudulent conduct to recover the product of this fraud as well as penalties,” said SBA General Counsel Wendell Davis.

    This matter was handled by Assistant U.S. Attorney Anthony Gentner from the United States Attorney’s Office for the Eastern District of Michigan, with assistance from the SBA’s Office of General Counsel.

    Individuals with information about allegations of fraud involving COVID-19 are encouraged to 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
    The claims resolved by the settlement are allegations only; there has been no determination of liability.

    MIL Security OSI –

  • MIL-OSI Security: Leader of Federal Pandemic Fraud Unemployment Scheme Sentenced

    Source: Office of United States Attorneys

    Brown Was One of 17 Defendants to Steal $341,205 Combined in Pandemic Relief Money

    ABINGDON, Va. – Josef Ludwig Brown, one of the leaders of a 17 defendant conspiracy to defraud the United States, commit program fraud, and commit mail fraud in connection with a scheme to file fraudulent claims for pandemic unemployment benefits was sentenced last week to 35 months in federal prison.

    Brown previously pled guilty to one count of conspiring to defraud the United States in connection with emergency benefits. Additionally, Brown was ordered to pay $119,660 in restitution.

    Previously sentenced as part of the conspiracy were: Christopher Webb, 20 months; Russell Stiltner, 24 months; Jessica  Lester, 19 months; Cara Camille Bailey, 19 months; Justin Meadows, 18 months; Terrence Vilacha, 18 months; Joseph Hass, 27 months; Brian Addair, 24 months; and Stephanie Amber Barton, Clinton Michael Altizer, Jeramy Blake Farmer,  and Hayleigh McKenzie Wolfe were each sentenced to 12 months and 1 day.

    Jonathan Webb, the individual charged with recruiting others to file fraudulent claims, mostly inmates at local jails, was sentenced to 48 months was ordered to pay $150,218 in restitution.

    All defendants were also ordered to pay restitution to the Virginia Employment Commission for the amount of their individual fraudulent claims.

    According to court documents, between March 2020 and September 2021, Josef Brown, Jonathan Webb, and Crystal Shaw developed a scheme to file fraudulent claims and recertifications for pandemic unemployment befits via the Virginia Employment Commission website. The scheme involved the collection of personal identification information (PII) of inmates housed at SWVRJA-Haysi and Abingdon, as well as personal friends and acquaintances of Brown, Webb, and Shaw. The conspirators used that information to file fraudulent claims and recertifications for pandemic unemployment benefits for incarcerated individuals and others who were ineligible for the benefits.

    In all, the defendants stole $341,205 in pandemic relief to which they were not entitled.

    As part of the Pandemic Response Accountability Committee (PRAC) Task Force, this investigation was conducted by the Special Inspector General for Pandemic Recovery. The PRAC’s 20 member Inspectors General were charged with identifying major risks that cross program and agency boundaries to detect fraud, waste, abuse, and mismanagement in the more than $5 trillion in COVID-19 spending. According to the United States Department of Labor, Virginia paid approximately $1.1 billion in fraudulent unemployment claims between April 1, 2020, and March 31, 2021.

    Acting United States Attorney Zachary T. Lee, Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Division, and Virginia Attorney General Jason Miyares announced the sentences.

    Agencies that assisted with this investigation included the Dickenson County Sheriff’s Office, the Southwest Virginia Regional Jail Authority, the FBI, U.S. Department of Labor, and the Virginia Employment Commission.

    Special Assistant U.S. Attorney M. Suzanne Kerney-Quillen, a Senior Assistant Attorney General with the Virginia Attorney General’s Major Crimes and Emerging Threats Section, and Assistant United States Attorney Danielle Stone are prosecuting the case for the United States.

    MIL Security OSI –

  • MIL-OSI United Nations: 28 April 2025 News release GOARN marks 25 years of advancing global health emergency preparedness and response

    Source: World Health Organisation

    The Global Outbreak Alert and Response Network (GOARN), an initiative coordinated by the World Health Organization (WHO), marks its 25th anniversary today. Since its inception in April 2000, the network has been at the forefront of the global fight against health emergencies. By leveraging the expertise of global partners – facilitating alerts, deploying rapid support capacities, and strengthening capacities – it has significantly enhanced country-level operations and strengthened regional development, playing a critical role in health preparedness and response.

    “GOARN is a vital part of the global health architecture,” said Dr Tedros Adhanom Ghebreyesus, WHO Director-General. “Through the network, countries get the expert support they need to respond to health emergencies, and to enhance their own capacities for preparedness and response. This means faster, more effective responses and more lives saved.”

    GOARN was created in response to the need for better coordination during global health emergencies. While many partner organizations were sending teams to assist during emergencies, there was a lack of coordination which hindered the overall effectiveness of these responses. It was also clear that no single institution could address all components of a response alone. GOARN was thus born following an international meeting organized by WHO in Geneva on 26&ndasg;28 April 2000. Some 121 representatives from 67 partner institutions discussed the growing challenge of epidemic-prone and emerging diseases, and the urgent need to build a global network based on existing partnerships to address these threats.

    In October 2000, GOARN played a key role in responding to the major Ebola outbreak in Gulu, Uganda – marking a significant milestone in what would evolve into a quarter-century of pivotal global health responses.

    “As one of the first responders deployed during the Ebola outbreak in Uganda 25 years ago, I witnessed firsthand the evolution of our response efforts and GOARN’s role,” said Dr Mike Ryan, Executive Director of WHO’s Health Emergencies Programme and Deputy Director-General of WHO.  “When I returned to Uganda earlier this year for another Ebola response, I was immensely proud to see how strong the national capacities have become, led by the Ministry of Health with the support of WHO and GOARN partners. GOARN is an example of how multilateralism works to save lives. To this day, I wear the orange GOARN lanyard alongside my blue WHO one to show my respect for and pride in this network.”

    GOARN leverages the expertise of its partner institutions to address global health challenges. Operating as a unified international community, the network has responded swiftly and effectively to public health threats by deploying technical experts to ensure the right expertise is in the right place at the right time. GOARN’s goal is to strengthen countries’ capacities and help build strong, resilient systems for response to emergencies.

    GOARN ensures that the experts are well-trained and equipped with the right skills before they’re deployed where they are needed most, fostering seamless collaboration for swift, coordinated, and impactful responses.

    GOARN has now grown into a network of over 310 institutions, including national public health agencies, nongovernmental organizations, UN agencies, academic, and other technical organizations. GOARN has responded to over 175 public health emergencies in 114 countries, deploying more than 3645 international responders who integrate within national responses, collaborating with thousands of national professionals to strengthen and enhance local efforts. The network has tackled major global public health events, including outbreaks of SARS, Ebola virus disease, Marburg virus disease, COVID-19, mpox, cholera, yellow fever, disasters such as floods and earthquakes, and war. GOARN has deployed expertise in epidemiology, disease surveillance, case management, clinical care, infection prevention and control, risk communication and community engagement, and others. These efforts have also delivered hands-on training to hundreds of national teams, bolstering their immediate response capacity and long-term resilience.

    “Looking back over the past 25 years, it’s remarkable to see how GOARN has evolved from a visionary concept to an indispensable network in the global health emergency landscape,” said Ray R. Arthur, PhD, Director, Global Disease Detection Operations Center, CDC (retired) and Former Chair of the GOARN Steering Committee. “As an early participant in establishing the network and as former chair of the Steering Committee, I witnessed firsthand the commitment and collaboration that drove the network’s success. GOARN has not only facilitated rapid response to public health emergencies but has also been instrumental in strengthening global health, ensuring that countries are better prepared for the challenges of tomorrow. It’s an honour to see the network continue to grow and play such a vital role in protecting public health worldwide.”

    Today, GOARN is a vital pillar in the Global Health Emergency Corps ensuring a well-coordinated health emergency workforce, centered in countries and connected regionally and globally. The 25-year milestone marks a significant evolution of GOARN’s role in preparedness and response. Rather than deploying large numbers of international professionals across every field, GOARN now brings in only the necessary expertise to address critical gaps on the ground. Paired with the focus on capacity strengthening and training initiates, GOARN has demonstrated the effectiveness of its mandate and efforts empowering countries to manage emergencies themselves.

    GOARN calls on all Member States, partners and the global community to continue working together to build a global health emergency architecture that is resilient, equitable, and capable of addressing future health challenges.
     

    Voices from GOARN, past and present

    Dr Mohannad Al-Nsour, Executive Director, Eastern Mediterranean Public Health Network (EMPHNET), current Chair of the GOARN Steering Committee:
    “As the world faces the growing threats of epidemics, conflict, and humanitarian crises, GOARN’s role has never been more vital. The network is being called to respond in increasingly complex environments – where conflict is more widespread, and public health emergencies unfold alongside deep humanitarian challenges. GOARN must continue to evolve, expanding its reach and strengthening collaboration to meet these urgent needs.”

    Daniela Garone, Infectious Diseases Specialist and International Medical Coordinator, Médecins Sans Frontières, current Co-Deputy Chairs of the GOARN Steering Committee and Dr Edmund Newman, Director, UK Public Health Rapid Support Team (UK-PHRST):
    “Reflecting on GOARN’s 25 years of advancing global health emergency preparedness and response, we are proud to be active partners of a network that has been instrumental in saving lives and strengthening health response systems around the world. From its humble beginnings to its current role as a vital pillar in global health response, GOARN has demonstrated the power of collaboration and expertise in tackling public health emergencies. As we look to the future, we remain committed to supporting countries in building resilient public health systems and ensuring that our collective efforts continue to evolve in response to the growing challenges of global health. Together, we will continue to foster stronger partnerships and be ready for whatever comes next.”

    Myriam Henkens MD, MPH, Senior Health Adviser, Médecins Sans Frontières, former member of GOARN Steering Committee:
    “For 25 years, GOARN has been a cornerstone in the global response to health emergencies. As a proud participant, MSF has been working alongside GOARN to strengthen health systems and ensure a more effective global response to the challenges of tomorrow. The collaborative spirit and shared expertise across the network have made a real difference in the field, and I’m proud to have been part of this journey.”

    Gail Carson, Director of Network Development at ISARIC Pandemic Sciences Institute, University of Oxford and former Chair of the GOARN Steering Committee (2022–2024):
    “Serving as Chair of the GOARN Steering Committee from 2022 to 2024 was one of the greatest honours of my career. But my connection to this network goes back much further—to GOARN’s first response to Ebola in Uganda. Over the past 25 years, I’ve seen firsthand how this global community of experts supports countries in times of crisis, delivering trusted, timely, and lifesaving technical assistance. Today, GOARN continues to evolve to meet new and complex challenges. What hasn’t changed is its core strength: GOARN remains the partner you can count on when a health emergency hits.”

    John S Mackenzie, Emeritus Professor and former Chair of the GOARN Steering Committee:
    “GOARN was born from a visionary belief that global outbreak response could be stronger through coordinated action. I was proud to serve on its first Steering Committee, and those 14 years remain among the most fulfilling of my career. GOARN continues to grow as a powerful force in global public health – driven by collaboration, expertise, and an enduring spirit of service.”

    Pat Drury, former GOARN Manager:
    “GOARN has been more than just a professional milestone—it has been a journey of saving lives and making a real difference in the face of some of the world’s most challenging outbreaks, from Ebola, and SARS to COVID-19. The network’s strength is its ability to connect people, and institutions, knowledge and expertise in real time, turning alerts into rapid responses. As the challenges have grown, so have the stakes. In an increasingly polarised world, GOARN’s role in mobilizing science, and fostering trust has never been more vital. Congratulations on 25 years of extraordinary impact, and thank you to the countless individuals who make this mission possible.”

    MIL OSI United Nations News –

  • MIL-OSI USA: Communities and AFSCME Sue to Save Efforts to Stop Trump Cuts, RFK Jr. Anti-Science Meddling

    Source: American Federation of State, County and Municipal Employees Union

    Municipalities in Texas, Tennessee, Ohio, and Missouri Unite to Prevent Pandemic-Prevention Programs

    Washington, D.C. – A coalition of major municipalities, including Harris County, Texas; Columbus, Ohio; the Metropolitan Government of Nashville and Davidson County, Tennessee;  and Kansas City, Missouri, along with public service workers represented by the American Federation of State, County, and Municipal Employees (AFSCME) are uniting to challenge unlawful budget cuts at the Department of Health and Human Services (HHS) that will cancel grants the municipalities rely on to protect people from infectious diseases and pandemics.

    The municipalities filed suit today in District Court for the District of Columbia, and the case is Harris County et. al v. Kennedy et. al. Nashville and Davidson County, Kansas City, and Columbus are represented by Democracy Forward and the Public Rights Project. AFSCME is also represented by Democracy Forward. Harris County is represented by Harris County Attorney Christian Menefee.

    “The pandemic exposed just how urgently we need strong public health systems,” said AFSCME President Lee Saunders. “In response, Congress stepped up — delivering crucial funding to local health departments to track, prepare for, and fight infectious diseases. But now, this administration is sidestepping the law and withholding taxpayer dollars meant to protect our communities so they can hand out massive tax breaks to billionaires. AFSCME members are on the front lines, vaccinating, educating and saving lives every single day. These actions threaten their ability to tackle threats like the flu and measles and jeopardize public health. We are filing this lawsuit with our partners because that funding belongs to our neighborhoods, not the ultra-rich.”

    “Harris County was set to receive funds to support critical public health services—programs that help us detect and prevent disease outbreaks, run vaccination clinics, and keep our residents healthy,” said Harris County Attorney Christian Menefee. “The Trump administration doesn’t get to override Congress just because it wants to score political points. This funding is the backbone of our local public health response – especially during disease outbreaks. You don’t get to break the law just because you don’t like how Congress spent the money.”

    “The Trump administration’s termination of billions of dollars in infectious disease funding is both dangerous and unconstitutional,” said Columbus City Attorney Zach Klein.“Cities cannot stay quiet on the sidelines as extremists within this administration continue to defy the constitution and recklessly endanger the health and safety of our children and the public. That’s why we’re in the arena fighting to see this funding released as Congress intended—so that health departments can do their jobs and prevent needless deaths of children and our most vulnerable from outbreaks of deadly diseases like measles.”

    “The federal government’s mass termination of local health programs has caused an immediate disruption in life-saving health care services. Metro Nashville joined this lawsuit because the federal government’s unlawful termination of health programs has forced layoffs of Health Department employees, termination of lab testing for infectious disease, including lab tests where the patient is waiting on a result, elimination of programs for childhood vaccination, and more. We were on the verge of providing these life saving services to our unhoused population but that initiative is halted in its tracks,” said Wally Dietz, Director of Law, Metropolitan Government of Nashville.

    On March 24, 2025, President Trump and controversial anti-science HHS Secretary Robert F. Kennedy Jr. unlawfully eliminated the congressionally-appropriated federal grants under Centers for Disease Control’s COVID-19 related grant programs, which provide more than $11 billion worth of federal grants to local municipalities for the vital public health work of identifying, monitoring, and addressing infectious diseases; ensuring access to necessary immunizations, including immunizations for children; and strengthening emergency preparedness to avoid future pandemics.

    “Cancelling programs that seek to prevent the spread of infectious diseases – in the middle of active pandemics – is not just unconstitutional, it is unconscionable,” said Skye Perryman, President and CEO of Democracy Forward. “The Trump administration’s destructive agenda threatens to deprive residents of essential public health services in the midst of continuing dangers posed by COVID-19 and other diseases, including a deadly measles outbreak centered in Texas that has spread to Ohio, Tennessee, and other states across the country. The stakes here are real and immediate. Democracy Forward is honored to work with the Public Rights Project and Harris County to represent these municipalities, which are fighting to preserve crucial and lifesaving public health efforts.”

    “Our government partners have been left scrambling to fill gaps from the loss of vital local initiatives,” said Jill Habig, founder and CEO of Public Rights Project. “These grants were more than a response to the pandemic — they were investments in the people and programs that keep our communities healthy every day.”

    Bizarrely, though the reasoning offered by the Trump administration for canceling the grants was the end of the COVID-19 pandemic, the programs canceled were not limited to work on COVID-19, and include work to stop outbreaks of avian flu and measles, two infectious diseases currently spreading in American neighborhoods.

    Please find the full complaint here.

    – # # # –

    Democracy Forward is a national legal organization that advances democracy and social progress through litigation, policy, public education, and regulatory engagement. For more information, please visit www.democracyforward.org.

    MIL OSI USA News –

  • MIL-OSI Security: Wake Forest Woman Sentenced to Prison for $85K COVID Fraud

    Source: Office of United States Attorneys

    WILMINGTON, N.C. – A Wake Forest woman was sentenced to six months in prison, followed by one year of home confinement, on Tuesday, April 22, 2025, for conspiring to defraud the United States government with respect to Covid-19 Paycheck Protection Program loans.  Sonya Lenise Davis, 57, pled guilty to conspiracy to commit wire fraud on August 7, 2024.

    According to court documents and other information presented in court, Davis and others lied on applications to the Small Business Association for Paycheck Protection Program (PPP) loans. These loans were a form of Covid-19 relief funding to help keep small businesses afloat during the pandemic. Davis did not qualify for these loans, but nevertheless lied, and helped others to lie, to steal money from the program. On her own loan application, Davis falsified information about her company, Sonya’s Braiding, by inflating the number of employees and income. Davis also assisted others to acquire and submit fake documents to bolster wage claims on their own PPP loans using fake IRS forms. In some instances, Davis also assisted conspirators to obtain fake bank statements. As a result, Davis and others illegally obtained more than $85,000 in Covid relief loan money.

    Daniel P. Bubar, Acting U.S. Attorney for the Eastern District of North Carolina, made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. The Internal Revenue Service (IRS) investigated the case and Assistant U.S. Attorney William Gilmore and Special Assistant U.S. Attorney Lisa Labresh prosecuted the case.

    Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:23-CR-00299.

    ###

    MIL Security OSI –

  • MIL-OSI Global: Oshikatsu, the fandom phenomenon Japan hopes can boost its flagging economy

    Source: The Conversation – Global Perspectives – By Fabio Gygi, Senior Lecturer in Anthropology, SOAS, University of London

    Posters in Tokyo’s enormous Shinjuku railway station are normally used for advertising commodities like cosmetics and food, as well as new films. But occasionally you may happen across a poster with a birthday message and a picture of a young man, often from a boy band and typically with impeccable looks.

    These posters are created by specialised advertising companies and are paid for by adoring fans. They are part of a phenomenon called oshikatsu, a term coined in recent years that is made from the Japanese words for “push” and “activity”.

    Oshikatsu refers to the efforts fans engage in to support their favourite oshi, which can mean an entertainer, an anime or manga character, or a group they admire and want to “push”.

    A considerable part of this support is economic in nature. Fans attend events and concerts, or buy merchandise such as CDs, posters and other collectables. Other forms of oshikatsu are meant to spread the fame of their idol by sharing content about their oshi, engaging in social media campaigns, and writing fan fiction or drawing fan art.

    A birthday message for Kogun, a South Korean singer trying to make it in Japan, in 2022.
    Fabio Gygi, CC BY-NC-ND

    Oshikatsu developed out of the desire of fans to have a closer link to their idols. The combination of oshi and katsu first appeared on social media networks in 2016 and became widespread as a hashtag on Twitter in 2018. In 2021, oshikatsu was nominated as a candidate for Japan’s word of the year, a sign that its use had become mainstream.

    Now, it has appeared on the radar of corporate Japan. The reason for this is a burst of inflation in recent years, caused by pandemic supply chain disruption and geopolitical shocks, that has caused Japanese consumers to reduce their spending.

    However, with wages set to rise again for the third time in three years, the government is cautiously optimistic that economic growth can be rekindled through consumer-driven spending. Entertainment and media companies are looking to oshikatsu as a potential driver of this, although it is unclear whether the upcoming pay hikes will be sufficient.

    A widespread phenomenon

    Contrary to popular perception, oshikatsu is no longer the purview solely of subcultures or young people. It has made inroads with older age groups in Japan as well.

    According to a 2024 survey by Japanese marketing research company Harumeku, 46% of women aged in their 50s have an oshi that they support financially. Older generations tend to have more money to spend, especially after their own children have finished education.

    Oshikatsu also signifies an interesting reversal in terms of gender. While husbands in the traditional Japanese household are still expected to be breadwinners, in oshikatsu it is more often women who financially support young men.

    How much fans spend on their oshi depends. According to a recent survey by Japanese marketing company CDG and Oshicoco, an advertising agency specialising in oshikatsu, the average amount fans spend on activities related to their oshis is 250,000 yen (about £1,300) annually.

    This contributes an estimated 3.5 trillion yen (£18.8 billion) to the Japanese economy each year, and accounts for 2.1% of Japan’s total annual retail sales.

    Oshikatsu will drive up consumer spending. But I doubt it will have the impact on the Japanese economy that the authorities are hoping for. For the younger fans, the danger is that government approval will kill any kind of cool clout, making oshikatsu less appealing to these people in the long run.

    And if you support an oshi who has not yet made it, you may have a stronger sense that your support matters. Hence some of the spending will go directly to individuals, rather than to established corporate superstars. But it’s also possible that struggling young oshis may spend more of this money than established celebrities.

    Japan hopes that fandom can help revitalise its economy.
    amri48 / Shutterstock

    The international press is focusing either on the economic side of oshikatsu, or on the quirkiness of “obsessive” fans who get second jobs to support their oshi and mothers spending large sums on a man half their age. But what such coverage misses is the slow yet profound societal transformation that oshikatsu is a sign of.

    Research from 2022 on people engaging in oshikatsu makes clear that “fan activities” address a deep wish for connection, validation and belonging. While this could be satisfied by friendship or an intimate partnership, an increasing number of Japanese young adults feel that such relationships are “bothersome”.

    Young men are leading in this category, especially those who do not work as white-collar corporate workers with relatively stable jobs, the so-called salarymen. Many who work part time or in blue-collar jobs are finding it difficult to imagine a future in which they have families.

    The tertiary sector is thus changing to accommodate an increasing number of services that turn intangible things such as friendship, companionship and escapist romance fantasies into paid-for services.

    From non-sexual cuddling to renting a friend for the day or going on a date with a cross-dressing escort, temporary respite from loneliness can be sought on a per-hour basis. As a result, human connection itself is becoming something that can be consumed for a fee.

    On the other hand, sharing oshikatsu activities can create new friendships. Fans coming together to worship their idols collectively is a powerful way of creating new communities. It remains to be seen how these shifts in the way people relate to each other will shape the future of Japan’s economy and society.

    Fabio Gygi 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. Oshikatsu, the fandom phenomenon Japan hopes can boost its flagging economy – https://theconversation.com/oshikatsu-the-fandom-phenomenon-japan-hopes-can-boost-its-flagging-economy-253853

    MIL OSI – Global Reports –

  • MIL-OSI Europe: Luis de Guindos: Presentation of the ECB Annual Report 2024 to the Committee on Economic and Monetary Affairs of the European Parliament

    Source: European Central Bank

    Introductory remarks by Luis de Guindos, Vice-President of the ECB, at the ECON Committee of the European Parliament

    Brussels, 28 April 2025

    It is a pleasure to present the ECB’s Annual Report for 2024 to this esteemed Committee. Concurrently, we are also publishing our response to the European Parliament’s resolution on our previous Annual Report. These elements – our Annual Report, today’s discussion and our response to your resolution – are central to the ECB’s accountability to the European Parliament and highlight the open dialogue between our institutions.

    In my remarks today, I will discuss the economic and financial stability landscape and consider the challenges that lie ahead. I will share the ECB’s assessment and underline the need to invest in measures to enhance Europe’s resilience amid a volatile external environment and an uncertain outlook.

    Economic developments and monetary policy

    As highlighted in the Annual Report, economic activity in the euro area began to recover gradually in 2024. Incoming data suggest modest growth in the first quarter of 2025. However, risks have intensified amid exceptional uncertainty, largely related to trade. Euro area exporters are now facing new barriers, and tensions in financial markets and geopolitical uncertainty will likely weigh on business investment. In this environment, consumers may become cautious about the future and hold back spending.

    In the medium term, a resilient labour market, higher real incomes and the impact of our monetary policy easing should support spending. Moreover, recent policy initiatives focused on defence spending and infrastructure investment at both national and EU levels are expected to positively affect activity and strengthen long-term growth.

    Turning to inflation, headline figures fell further towards the ECB’s 2% target in 2024, supported by our then restrictive monetary policy. Looking ahead, inflation is expected to hover around our target. However, global trade disruptions are adding uncertainty to the inflation outlook. Declining energy prices, further wage moderation and a stronger euro could dampen inflation, potentially amplified by weaker demand for euro area exports and a re-routing of other countries’ exports into the euro area. Conversely, a fragmentation of global supply chains could raise import prices and hence inflation.

    Following a period of holding interest rates steady in early 2024, the ECB started reducing its key interest rates in June. So far, we have lowered the rate on the deposit facility by 175 basis points to 2.25%, in view of the disinflation process being well on track. We are determined to ensure that inflation stabilises sustainably at our 2% medium-term target. Especially given current uncertainty, we will continue to follow a data-dependent and meeting-by-meeting approach to setting the appropriate monetary policy stance, and we are not pre-committing to a particular rate path.

    Maintaining financial stability

    Let me also say a few words on financial stability in the light of recent developments.

    The recent trade policy upheaval has triggered the most significant financial market turmoil since the pandemic. While euro area banks’ valuations have also been affected, their fundamentals remain robust and they are well positioned to withstand potential shocks thanks to their sizeable capital and liquidity buffers.

    But despite the resilience of our financial sector, these developments warrant careful monitoring. Sharp adjustments in financial markets could become disorderly, particularly if they are amplified by the growing size and influence of non-bank financial institutions. In addition, trade conflicts could pose challenges for both households and corporates, translating into rising credit risk for banks and non-banks alike. Finally, a combination of weaker growth and heightened spending needs could increase pressures on government finances.

    To ensure our banking system remains resilient in this environment, we need a regulatory framework that is fit for purpose. Decisive action is required to move us closer to completing the banking union. This includes an effective crisis management and deposit insurance framework that extends to small and medium-sized banks, and progress on a European deposit insurance scheme. The recent financial market turmoil also highlights that non-banks must be subject to robust rules, and that gaps in the regulatory framework need to be closed so they are not treated differently to regular banks.

    The ECB supports efforts to simplify the regulatory framework. However, this should not be confused with deregulation. The resilience of our financial system can largely be attributed to the rules established since the global financial crisis. Financial stability is a global public good – it is in everybody’s interest and must remain the long-term goal.

    Europe’s future policy priorities

    A strong and resilient financial sector will also play a crucial role – alongside the public sector – in financing Europe’s key policy priorities as we confront a series of generational challenges.

    The defence investments foreseen in the EU will have an impact on national public finances. By spending jointly through EU-level initiatives, we can achieve greater scale, reduce costs and strengthen our strategic autonomy – all while supporting long-term growth and fiscal sustainability.

    In addition to the pressing security challenges, investing in the green transition and digital innovation remains vital to boosting Europe’s competitiveness and closing the productivity gap with our global peers.

    Finally, the evolving global landscape underscores the need to strengthen trade within the EU’s Single Market, as emphasised by the European Commission.[1] A more integrated and deeper Single Market is essential if we are to achieve the scale required for European firms to thrive and expand, thereby enhancing our resilience against external shocks. We also need to ensure that innovative firms can access the financing they need in order to grow. In this context, completing the savings and investment union is both urgent and essential.

    Conclusion

    Faced with a complex and uncertain landscape, the ECB remains firmly committed to its primary mandate of maintaining price stability. This is the most important contribution we can make towards fostering a strong and prosperous Europe.

    I know that both our institutions are united by our commitment to serve the people of Europe, within our respective mandates. Our dialogue today is testament to this.

    I now look forward to your questions.

    MIL OSI Europe News –

  • MIL-OSI: Citizens Community Bancorp, Inc. Reports First Quarter 2025 Earnings of $0.32 Per Share; Book Value Per Share Up 8% and Tangible Book Value Per Share Up 10% Since March 31, 2024, After Annual Dividend Payment of $0.36 Per Share

    Source: GlobeNewswire (MIL-OSI)

    EAU CLAIRE, Wis., April 28, 2025 (GLOBE NEWSWIRE) — Citizens Community Bancorp, Inc. (the “Company”) (Nasdaq: CZWI), the parent company of Citizens Community Federal N.A. (the “Bank” or “CCFBank”), today reported earnings of $3.2 million and earnings per diluted share of $0.32 for the first quarter ended March 31, 2025, compared to $2.7 million and earnings per diluted share of $0.27 for the fourth quarter ended December 31, 2024, and $4.1 million and $0.39 earnings per diluted share for the quarter ended March 31, 2024, respectively.

    The Company’s first quarter 2025 operating results reflected the following changes from the fourth quarter of 2024: (1) decrease in net interest income of $0.1 million as two fewer days in the quarter were largely offset by an increase in the net interest margin of 6 basis points; (2) a smaller negative provision for credit losses of $0.3 million compared to $0.5 million in the fourth quarter; (3) higher non-interest income of $0.6 million primarily due to $0.5 million higher gain on sale of loans and $0.3 million higher net gains on sale of equity securities in the first quarter of 2025; and (4) lower non-interest expense primarily due to lower compensation and related benefits of $0.2 million and lower losses on repossessed assets of $0.2 million.

    Book value per share improved to $18.02 at March 31, 2025, compared to $17.94 at December 31, 2024, and $16.61 at March 31, 2024. Tangible book value per share (non-GAAP)1 was $14.79 at March 31, 2025, compared to $14.69 at December 31, 2024, and a 10.1% increase from $13.43 at March 31, 2024. For the first quarter of 2025, tangible book value was positively impacted by (1) net income, (2) the impact of lower long-term interest rates which decreased the net unrealized loss on the available for sale securities portfolio, and (3) amortization of intangibles which were largely offset by the payment of the annual $0.36 per share dividend. Stockholders’ equity as a percentage of total assets was 10.12% at March 31, 2025, compared to 10.24% at December 31, 2024. Tangible common equity (“TCE”) as a percent of tangible assets (non-GAAP)1 decreased modestly to 8.45% at March 31, 2025, compared to 8.54% at December 31, 2024, largely due to the payment of the dividend.

    “I am pleased with results in a quarter that is seasonally the slowest for us because of winter. The balance sheet is well positioned for the remainder of 2025 with strong capital and liquidity positions, strong ACL reserves and credit metrics in our historical range. Our TCE at 8.5% provides a cushion for uncertainty like we have seen thus far in 2025 and for share repurchases. Our liquidity position, including the loan to deposit ratio below 90% is expected to support quality, well priced loan growth in the low to mid-single digit percentages with strategic, relationship borrowers. Our markets remain stable with unemployment below national averages and tariff exposure appears to be indirect should this risk persist. We believe loan repricing and originations will benefit our net-interest margin expansion, especially in the second half of 2025, and throughout 2026, as well as will the impact of deposit repricing,” stated Stephen Bianchi, Chairman, President, and Chief Executive Officer.

    March 31, 2025, Highlights:

    • Quarterly earnings were $3.2 million, or $0.32 per diluted share for the quarter ended March 31, 2025, an increase compared to earnings of $2.7 million, or $0.27 per diluted share for the quarter ended December 31, 2024, and a decrease from $4.1 million, or $0.39 per diluted share for the quarter ended March 31, 2024.
    • Net interest income decreased $0.1 million to $11.6 million for the current quarter ended March 31, 2025, from $11.7 million for the quarter ended December 31, 2024, and from $11.9 million for the quarter ended March 31, 2024. The decrease in net interest income from the fourth quarter of 2024 was primarily due to two fewer days in the quarter which was mostly offset by an increase in net interest margin of six basis points.
    • The net interest margin increased to 2.85%, primarily due to lower deposit costs. The net interest margin increase in the first quarter of 2025 was negatively impacted by three basis points from lower deferred fee accretion compared to the fourth quarter of 2024 due to lower payoffs in the first quarter of 2025.
    • Negative provision for credit losses of $0.25 million, $0.45 million, and $0.80 million were recorded during the quarters ended March 31, 2025, December 31, 2024, and March 31, 2024, respectively. The first quarter’s negative provision was due to decreases in on-balance sheet allowance for credit losses (“ACL”) of $0.35 million partially offset by a $0.10 million increase in off-balance sheet ACL due to an increase in unfunded loan commitments.
    • Non-interest income increased by $0.6 million in the first quarter of 2025 to $2.6 million from $2.0 million the prior quarter due to $0.5 million of higher gain on sale of loans, $0.3 million of higher net gains on equity securities partially offset by lower loan fees and service charges of $0.2 million due to lower customer activity. Total non-interest income for the quarter ended March 31, 2025, was $0.7 million lower than first quarter 2024 primarily due to lower gain on sale of loans and net realized gains on debt securities.
    • Non-interest expense decreased $0.3 million to $10.5 million from $10.8 million for both the fourth quarter of 2024 and the first quarter of 2024. The $0.3 million decrease in non-interest expense compared to the linked quarter was largely due to lower compensation due to lower incentive costs and lower losses on repossessed assets, partially offset by higher other expense. The $0.3 million decrease from the first quarter of 2024 was due to a $0.4 million decrease in other expenses resulting from lower SBA recourse reserve expense.
    • Loans receivable decreased $16.3 million during the first quarter ended March 31, 2025, to $1.353 billion compared to the prior quarter end, largely due to the seasonal impact of lower activity.
    • Total deposits increased $35.5 million during the quarter ended March 31, 2025, to $1.524 billion. Total deposit growth reflected the seasonal growth in municipal deposits of $20.8 million, which typically decreases in the middle two quarters before increasing in the fourth quarter. Growth in retail and commercial areas was partially offset by the reduction of $6.3 million in wholesale deposits due to reduction in brokered deposits.
    • The last remaining Federal Home Loan Bank advance was repaid in the quarter, resulting in no advances at March 31, 2025, down from $5.0 million at December 31, 2024, and $39.5 million one year earlier.
    • The effective tax rate was 19.6% for the quarter ended March 31, 2025, compared to 19.5% for the quarter ended December 31, 2024, and 21.3% for the quarter ended March 31, 2024.
    • Nonperforming assets increased $0.3 million during the quarter to $14.5 million at March 31, 2025, compared to $14.2 million at December 31, 2024.
    • Special mention loans increased $6.5 million to $15.0 million at March 31, 2025, from $8.5 million in the previous quarter. The increase was largely due to one C&I relationship that showed weaker cash flow than expected.
    • The efficiency ratio was 73% for the quarter ended March 31, 2025, compared to 76% for the quarter ended December 31, 2024.

    Balance Sheet and Asset Quality

    Total assets increased by $31.4 million during the quarter to $1.780 billion at March 31, 2025.

    Cash increased $50.0 million due to the growth in deposits and loan shrinkage growing our balances at the Federal Reserve.

    Securities available for sale (“AFS”) decreased $3.2 million during the quarter ended March 31, 2025, to $139.6 million from $142.9 million at December 31, 2024. The decrease was due to principal repayments of $2.6 million, and a corporate debt security maturity of $2.5 million, partially offset by lower pre-tax unrealized losses of $1.9 million.

    Securities held to maturity (“HTM”) decreased $1.2 million to $84.3 million during the quarter ended March 31, 2025, from $85.5 million at December 31, 2024, due to principal repayments.

    The on-balance sheet liquidity ratio, which is defined as the fair market value of AFS and HTM securities that are not pledged and cash on deposit with other financial institutions, was 14.38% of total assets at March 31, 2025, compared to 11.75% at December 31, 2024. On-balance sheet liquidity collateralized new borrowing capacity and uncommitted federal funds borrowing availability was $852 million, or 314%, of uninsured and uncollateralized deposits at March 31, 2025, and $725 million, or 273%, at December 31, 2024.

    Loans receivable decreased $16.3 million during the first quarter ended March 31, 2025, to $1.353 billion compared to the prior quarter end, largely due to the seasonal impact of lower origination and funding activity.

    The office loan portfolio consisting of seventy-two loans totaled $28 million at March 31, 2025, compared to seventy-one loans totaling $28 million at December 31, 2024. Criticized loans in the office loan portfolio for the quarter ended March 31, 2025, totaled $0.5 million, the same amount at December 31, 2024, and there have been no charge-offs in the trailing twelve months.

    The allowance for credit losses on loans decreased by $0.34 million to $20.2 million at March 31, 2025, representing 1.49% of total loans receivable compared to 1.50% of total loans receivable at December 31, 2024. For the quarter ended March 31, 2025, the Bank recorded a negative provision of $0.25 million which included a negative provision on ACL for loans of $0.35 million, partially offset by a provision of $0.10 million on ACL for unfunded commitments due to an increase in unfunded commitments. 30-89 day loan delinquencies decreased to 0.15% of total loans at March 31, 2025, compared to a 0.33% delinquency ratio at December 31, 2024. The Bank had $0.007 million of net recoveries in the first quarter.

    Allowance for Credit Losses (“ACL”) – Loans Percentage

    (in thousands, except ratios)

      March 31, 2025   December 31, 2024   September 30, 2024   June 30, 2024
    Loans, end of period $ 1,352,728     $ 1,368,981     $ 1,424,828     $ 1,428,588  
    Allowance for credit losses – Loans $ 20,205     $ 20,549     $ 21,000     $ 21,178  
    ACL – Loans as a percentage of loans, end of period   1.49 %     1.50 %     1.47 %     1.48 %

    In addition to the ACL – Loans, the Company has established an ACL – Unfunded Commitments of $0.435 million at March 31, 2025, $0.334 million at December 31, 2024, and $0.975 million at March 31, 2024, classified in other liabilities on the consolidated balance sheets.

    Allowance for Credit Losses – Unfunded Commitments:
    (in thousands)

        March 31, 2025
    and Three Months
    Ended    		   December 31, 2024
    and Three Months
    Ended    		   March 31, 2024
    and Three Months
    Ended
    ACL – Unfunded commitments – beginning of period   $ 334   $ 460     $ 1,250  
    (Reductions) additions to ACL – Unfunded commitments via provision for credit losses charged to operations     101     (126 )     (275 )
    ACL – Unfunded commitments – end of period   $ 435   $ 334     $ 975  
                           

    Special mention loans increased by $6.5 million to $15.0 million at March 31, 2025, compared to $8.5 million at December 31, 2024. The increase was largely due to one C&I relationship as noted earlier.

    Substandard loans increased by $0.7 million to $19.6 million at March 31, 2025, compared to $18.9 million at December 31, 2024.

    Nonperforming assets increased modestly by $0.3 million to $14.5 million at March 31, 2025, compared to $14.2 million at December 31, 2024.

      (in thousands)
      March 31, 2025   December 31, 2024   September 30, 2024   June 30, 2024   March 31, 2024
    Special mention loan balances $ 14,990   $ 8,480   $ 11,047   $ 8,848   $ 13,737
    Substandard loan balances   19,591     18,891     21,202     14,420     14,733
    Criticized loans, end of period $ 34,581   $ 27,371   $ 32,249   $ 23,268   $ 28,470
                                 

    Deposit Portfolio Composition
    (in thousands)

      March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024
    Consumer deposits $ 861,746   $ 852,083   $ 844,808   $ 822,665   $ 827,290
    Commercial deposits   423,654     412,355     406,095     395,148     400,910
    Public deposits   211,261     190,460     176,844     187,698     202,175
    Wholesale deposits   26,993     33,250     92,920     114,033     97,114
    Total deposits $ 1,523,654   $ 1,488,148   $ 1,520,667   $ 1,519,544   $ 1,527,489
                                 

    At March 31, 2025, the deposit portfolio composition was 56% consumer, 28% commercial, 14% public, and 2% wholesale deposits compared to 57% consumer, 28% commercial, 13% public, and 2% wholesale deposits at December 31, 2024.

    Deposit Composition By Type
    (in thousands)

      March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024
    Non-interest-bearing demand deposits $ 253,343   $ 252,656   $ 256,840   $ 255,703   $ 248,537
    Interest-bearing demand deposits   386,302     355,750     346,971     353,477     361,278
    Savings accounts   167,614     159,821     169,096     170,946     177,595
    Money market accounts   370,741     369,534     366,067     370,164     387,879
    Certificate accounts   345,654     350,387     381,693     369,254     352,200
    Total deposits $ 1,523,654   $ 1,488,148   $ 1,520,667   $ 1,519,544     1,527,489
                                 

    Uninsured and uncollateralized deposits were $271.7 million, or 18% of total deposits, at March 31, 2025, and $265.4 million, or 18% of total deposits, at December 31, 2024. Uninsured deposits alone at March 31, 2025, were $444.4 million, or 29% of total deposits, and $428.0 million, or 29% of total deposits at December 31, 2024.

    The last remaining Federal Home Loan Bank advance was repaid in the quarter, resulting in no advances at March 31, 2025, down from $5.0 million at December 31, 2024, and $39.5 million one year earlier.

    No common stock was repurchased in the first quarter of 2025. There are 238 thousand shares remaining available to repurchase under the July 2024 Board of Director repurchase authorization.

    Review of Operations

    Net interest income decreased $0.1 million for the quarter ended March 31, 2025, to $11.6 million from $11.7 million for the quarter ended December 31, 2024, and decreased $0.3 million from $11.9 million for the quarter ended March 31, 2024. The decrease in net interest income compared to the fourth quarter of 2024 was primarily due to two fewer days of interest income or approximately $0.2 million, the impact of smaller average assets of $0.2 million, offset by an increase in net interest margin of six basis points or $0.3 million. The net interest margin increase was negatively impacted by 3 basis points due to lower deferred fee accretion compared to the fourth quarter resulting from lower loan payoffs.

    Net interest income and net interest margin analysis:
    (in thousands, except yields and rates)

      Three months ended
      March 31, 2025   December 31, 2024   September 30, 2024   June 30, 2024   March 31, 2024
      Net
    Interest
    Income    		   Net
    Interest
    Margin    		   Net
    Interest
    Income    		   Net
    Interest
    Margin    		   Net
    Interest
    Income    		   Net
    Interest
    Margin    		   Net
    Interest
    Income    		   Net
    Interest
    Margin    		   Net
    Interest
    Income    		   Net
    Interest
    Margin
    As reported $ 11,594     2.85 %   $ 11,708     2.79 %   $ 11,285     2.63 %   $ 11,576     2.72 %   $ 11,905     2.77 %
    Less accretion for PCD loans   (36 )   (0.01)%     (42 )   (0.01)%     (45 )   (0.01)%     (62 )   (0.01)%     (75 )   (0.02)%
    Less scheduled accretion interest   (33 )   (0.01)%     (33 )   (0.01)%     (33 )   (0.01)%     (32 )   (0.01)%     (33 )   (0.01)%
    Without loan purchase accretion $ 11,525     2.83 %   $ 11,633     2.77 %   $ 11,207     2.61 %   $ 11,482     2.70 %   $ 11,797     2.74 %

    The table below shows the impact of certificate, loan and securities contractual fixed rate maturing and repricing.

    Portfolio Contractual Repricing:
    (in millions, except yields)

      Q2 2025   Q3 2025   Q4 2025   Q1 2026   Q2 2026   Q3 2026   Q4 2026   FY 2027
    Maturing Certificate Accounts:                              
    Contractual Balance $ 174     $ 101     $ 28     $ 23     $ 8     $ —     $ —     $ 8  
    Contractual Interest Rate   4.59 %     3.98 %     3.72 %     3.66 %     3.47 %     — %     — %     4.01 %
    Maturing or Repricing Loans:                              
    Contractual Balance $ 52     $ 18     $ 55     $ 45     $ 51     $ 120     $ 98     $ 243  
    Contractual Interest Rate   6.62 %     6.14 %     4.64 %     4.53 %     4.18 %     3.61 %     3.72 %     4.66 %
    Maturing or Repricing Securities:                              
    Contractual Balance $ 5     $ 3     $ 4     $ 2     $ 7     $ 7     $ 3     $ 6  
    Contractual Interest Rate   5.64 %     4.07 %     4.31 %     3.72 %     3.57 %     3.44 %     3.27 %     4.47 %
                                                                   

    Non-interest income increased by $0.6 million in the first quarter of 2025, to $2.6 million from $2.0 million the prior quarter due to $0.5 million of higher gain on sale of loans and $0.3 million of higher net gains on equity securities. Total non-interest income for the quarter ended March 31, 2025, was $0.7 million lower than first quarter 2024 primarily due to lower gain on sale of loans and net realized gains on debt securities.

    Non-interest expense decreased $0.3 million to $10.5 million from $10.8 million for both the previous quarter and the quarter one year earlier. The $0.3 million decrease in non-interest expense compared to the linked quarter was largely due to lower compensation due to lower incentive costs and lower losses on repossessed assets. The $0.3 million decrease from the first quarter of 2024 was largely due to a $0.4 million decrease in other expense due to lower SBA recourse reserve expense.

    Provision for income taxes increased to $0.8 million in the first quarter of 2025, from $0.7 million in the fourth quarter of 2024, largely due to higher pre-tax income. The effective tax rate was 19.6% for the quarter ended March 31, 2025, 19.5% for the quarter ended December 31, 2024, and 21.3% for the quarter ended March 31, 2024.

    These financial results are preliminary until the Form 10-Q is filed in May 2025.

    About the Company

    Citizens Community Bancorp, Inc. (NASDAQ: “CZWI”) is the holding company of the Bank, a national bank based in Altoona, Wisconsin, currently serving customers primarily in Wisconsin and Minnesota through 21 branch locations. Its primary markets include the Chippewa Valley Region in Wisconsin, the Twin Cities and Mankato markets in Minnesota, and various rural communities around these areas. The Bank offers traditional community banking services to businesses, ag operators and consumers, including residential mortgage loans.

    Cautionary Statement Regarding Forward-Looking Statements

    Certain statements contained in this release are considered “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may be identified using forward-looking words or phrases such as “anticipate,” “believe,” “could,” “expect,” “estimates,” “intend,” “may,” “on pace,” “preliminary,” “planned,” “potential,” “should,” “will,” “would” or the negative of those terms or other words of similar meaning. Such forward-looking statements in this release are inherently subject to many uncertainties arising in the operations and business environment of the Company and the Bank. These uncertainties include: conditions in the financial markets and economic conditions generally; the impact of inflation on our business and our customers; geopolitical tensions, including current or anticipated impact of military conflicts; higher lending risks associated with our commercial and agricultural banking activities; future pandemics (including new variants of COVID-19); cybersecurity risks; adverse impacts on the regional banking industry and the business environment in which it operates; interest rate risk; lending risk; changes in the fair value or ratings downgrades of our securities; the sufficiency of allowance for credit losses; competitive pressures among depository and other financial institutions; disintermediation risk; our ability to maintain our reputation; our ability to maintain or increase our market share; our ability to realize the benefits of net deferred tax assets; our ability to obtain needed liquidity; our ability to raise capital needed to fund growth or meet regulatory requirements; our ability to attract and retain key personnel; our ability to keep pace with technological change; prevalence of fraud and other financial crimes; the possibility that our internal controls and procedures could fail or be circumvented; our ability to successfully execute our acquisition growth strategy; risks posed by acquisitions and other expansion opportunities, including difficulties and delays in integrating the acquired business operations or fully realizing the cost savings and other benefits; restrictions on our ability to pay dividends; the potential volatility of our stock price; accounting standards for credit losses; legislative or regulatory changes or actions, or significant litigation, adversely affecting the Company or Bank; public company reporting obligations; changes in federal or state tax laws; and changes in accounting principles, policies or guidelines and their impact on financial performance. Stockholders, potential investors, and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. Such uncertainties and other risks that may affect the Company’s performance are discussed further in Part I, Item 1A, “Risk Factors,” in the Company’s Form 10-K, for the year ended December 31, 2024, filed with the Securities and Exchange Commission (“SEC”) on March 13, 2025 and the Company’s subsequent filings with the SEC. The Company undertakes no obligation to make any revisions to the forward-looking statements contained in this news release or to update them to reflect events or circumstances occurring after the date of this release.

    1Non-GAAP Financial Measures

    This press release contains non-GAAP financial measures, such as net income as adjusted, net income as adjusted per share, tangible book value, tangible book value per share, tangible common equity as a percent of tangible assets and return on average tangible common equity, which management believes may be helpful in understanding the Company’s results of operations or financial position and comparing results over different periods.

    Net income as adjusted and net income as adjusted per share are non-GAAP measures that eliminate the impact of certain expenses such as branch closure costs and related severance pay, accelerated depreciation expense and lease termination fees, and the gain on sale of branch deposits and fixed assets. Tangible book value, tangible book value per share, tangible common equity as a percentage of tangible assets and return on average tangible common equity are non-GAAP measures that eliminate the impact of goodwill and intangible assets on our financial position. Management believes these measures are useful in assessing the strength of our financial position.

    Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in this press release. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other banks and financial institutions.

    Contact: Steve Bianchi, CEO
    (715)-836-9994

    (CZWI-ER)

    CITIZENS COMMUNITY BANCORP, INC.
    Consolidated Balance Sheets
    (in thousands, except share data)
     
      March 31, 2025
    (unaudited)    		   December 31, 2024
    (audited)    		   September 30, 2024
    (unaudited)    		   March 31, 2024
    (unaudited)
    Assets              
    Cash and cash equivalents $ 100,199     $ 50,172     $ 36,632     $ 28,638  
    Securities available for sale “AFS”   139,642       142,851       149,432       151,672  
    Securities held to maturity “HTM”   84,301       85,504       87,033       89,942  
    Equity investments   5,462       4,702       5,096       3,281  
    Other investments   12,496       12,500       12,311       13,022  
    Loans receivable   1,352,728       1,368,981       1,424,828       1,450,159  
    Allowance for credit losses   (20,205 )     (20,549 )     (21,000 )     (22,436 )
    Loans receivable, net   1,332,523       1,348,432       1,403,828       1,427,723  
    Loans held for sale   3,296       1,329       697       —  
    Mortgage servicing rights, net   3,583       3,663       3,696       3,774  
    Office properties and equipment, net   16,649       17,075       17,365       18,026  
    Accrued interest receivable   5,926       5,653       6,235       6,324  
    Intangible assets   800       979       1,158       1,515  
    Goodwill   31,498       31,498       31,498       31,498  
    Foreclosed and repossessed assets, net   876       915       1,572       1,845  
    Bank owned life insurance (“BOLI”)   26,296       26,102       25,901       25,836  
    Other assets   16,416       17,144       16,683       16,219  
    TOTAL ASSETS $ 1,779,963     $ 1,748,519     $ 1,799,137     $ 1,819,315  
    Liabilities and Stockholders’ Equity              
    Liabilities:              
    Deposits $ 1,523,654     $ 1,488,148     $ 1,520,667     $ 1,527,489  
    Federal Home Loan Bank (“FHLB”) advances   —       5,000       21,000       39,500  
    Other borrowings   61,664       61,606       61,548       67,523  
    Other liabilities   14,594       14,681       15,773       11,982  
    Total liabilities   1,599,912       1,569,435       1,618,988       1,646,494  
    Stockholders’ Equity:              
    Common stock— $0.01 par value, authorized 30,000,000; 9,989,536, 9,981,996, 10,074,136, and 10,406,880 shares issued and outstanding, respectively   100       100       101       104  
    Additional paid-in capital   114,477       114,564       115,455       118,916  
    Retained earnings   80,439       80,840       78,438       71,831  
    Accumulated other comprehensive loss   (14,965 )     (16,420 )     (13,845 )     (18,030 )
    Total stockholders’ equity   180,051       179,084       180,149       172,821  
    TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 1,779,963     $ 1,748,519     $ 1,799,137     $ 1,819,315  
                                   

    Note: Certain items previously reported were reclassified for consistency with the current presentation.

    CITIZENS COMMUNITY BANCORP, INC.
    Consolidated Statements of Operations
    (in thousands, except per share data)
     
      Three Months Ended
      March 31, 2025
    (unaudited)    		   December 31, 2024
    (unaudited)    		   March 31, 2024
    (unaudited)
    Interest and dividend income:          
    Interest and fees on loans $ 18,602     $ 19,534     $ 20,168  
    Interest on investments   2,501       2,427       2,511  
    Total interest and dividend income   21,103       21,961       22,679  
    Interest expense:          
    Interest on deposits   8,597       9,273       9,209  
    Interest on FHLB borrowed funds   11       65       512  
    Interest on other borrowed funds   901       915       1,053  
    Total interest expense   9,509       10,253       10,774  
    Net interest income before provision for credit losses   11,594       11,708       11,905  
    (Negative) provision for credit losses   (250 )     (450 )     (800 )
    Net interest income after provision for credit losses   11,844       12,158       12,705  
    Non-interest income:          
    Service charges on deposit accounts   423       450       471  
    Interchange income   518       550       541  
    Loan servicing income   559       520       582  
    Gain on sale of loans   720       218       1,020  
    Loan fees and service charges   120       292       230  
    Net realized gains on debt securities   —       —       —  
    Net gains (losses) on equity securities   10       (287 )     167  
    Other   243       266       253  
    Total non-interest income   2,593       2,009       3,264  
    Non-interest expense:          
    Compensation and related benefits   5,597       5,840       5,483  
    Occupancy   1,287       1,217       1,367  
    Data processing   1,719       1,743       1,597  
    Amortization of intangible assets   179       179       179  
    Mortgage servicing rights expense, net   140       107       148  
    Advertising, marketing and public relations   167       218       164  
    FDIC premium assessment   198       192       205  
    Professional services   508       514       566  
    Losses on repossessed assets, net   4       247       —  
    Other   664       552       1,068  
    Total non-interest expense   10,463       10,809       10,777  
    Income before provision for income taxes   3,974       3,358       5,192  
    Provision for income taxes   777       656       1,104  
    Net income attributable to common stockholders $ 3,197     $ 2,702     $ 4,088  
    Per share information:          
    Basic earnings $ 0.32     $ 0.27     $ 0.39  
    Diluted earnings $ 0.32     $ 0.27     $ 0.39  
    Cash dividends paid $ 0.36     $ —     $ 0.32  
    Book value per share at end of period $ 18.02     $ 17.94     $ 16.61  
    Tangible book value per share at end of period (non-GAAP) $ 14.79     $ 14.69     $ 13.43  

    Reconciliation of GAAP Net Income and Net Income as Adjusted (non-GAAP)

    (in thousands, except per share data)

      Three Months Ended
      March 31,
    2025    		   December 31,
    2024    		   March 31,
    2024
               
    GAAP pretax income $ 3,974   $ 3,358   $ 5,192
    Branch closure costs (1)   —     —     —
    Pretax income as adjusted (2) $ 3,974   $ 3,358   $ 5,192
    Provision for income tax on net income as adjusted (3)   777     656     1,104
    Net income as adjusted (non-GAAP) (2) $ 3,197   $ 2,702   $ 4,088
    GAAP diluted earnings per share, net of tax $ 0.32   $ 0.27   $ 0.39
    Branch closure costs, net of tax   —     —     —
    Diluted earnings per share, as adjusted, net of tax (non-GAAP) $ 0.32   $ 0.27   $ 0.39
               
    Average diluted shares outstanding   10,000,818     10,033,957     10,443,267

    (1) Branch closure costs include severance pay recorded in compensation and benefits and depreciation and right of use lease asset accelerated expense included in other non-interest expense in the consolidated statement of operations.
    (2) Pretax income as adjusted and net income as adjusted are non-GAAP measures that management believes enhances the market’s ability to assess the underlying business performance and trends related to core business activities.
    (3) Provision for income tax on net income as adjusted is calculated at our effective tax rate for each respective period presented.

    Loan Composition

    (in thousands)

      March 31, 2025   December 31, 2024   September 30, 2024   June 30, 2024
    Total Loans:              
    Commercial/Agricultural real estate:              
    Commercial real estate $ 709,975     $ 709,018     $ 730,459     $ 729,236  
    Agricultural real estate   71,071       73,130       76,043       78,248  
    Multi-family real estate   237,872       220,805       239,191       234,758  
    Construction and land development   58,461       78,489       87,875       87,898  
    C&I/Agricultural operating:              
    Commercial and industrial   109,620       115,657       119,619       127,386  
    Agricultural operating   29,310       31,000       27,550       27,409  
    Residential mortgage:              
    Residential mortgage   129,070       132,341       134,944       133,503  
    Purchased HELOC loans   2,560       2,956       2,932       2,915  
    Consumer installment:              
    Originated indirect paper   3,434       3,970       4,405       5,110  
    Other consumer   4,679       5,012       5,438       5,860  
    Gross loans $ 1,356,052     $ 1,372,378     $ 1,428,456     $ 1,432,323  
    Unearned net deferred fees and costs and loans in process   (2,542 )     (2,547 )     (2,703 )     (2,733 )
    Unamortized discount on acquired loans   (782 )     (850 )     (925 )     (1,002 )
    Total loans receivable $ 1,352,728     $ 1,368,981     $ 1,424,828     $ 1,428,588  
                                   

    Nonperforming Assets
    Loan Balances at Amortized Cost

    (in thousands, except ratios)

      March 31, 2025   December 31, 2024   September 30, 2024   June 30, 2024
    Nonperforming assets:              
    Nonaccrual loans              
    Commercial real estate $ 4,948     $ 4,594     $ 4,778     $ 5,350  
    Agricultural real estate   5,934       6,222       6,193       382  
    Construction and land development   —       103       106       —  
    Commercial and industrial (“C&I”)   701       597       1,956       422  
    Agricultural operating   725       793       901       1,017  
    Residential mortgage   782       858       1,088       1,145  
    Consumer installment   1       1       20       36  
    Total nonaccrual loans $ 13,091     $ 13,168     $ 15,042     $ 8,352  
    Accruing loans past due 90 days or more   568       186       530       256  
    Total nonperforming loans (“NPLs”) at amortized cost   13,659       13,354       15,572       8,608  
    Foreclosed and repossessed assets, net   876       915       1,572       1,662  
    Total nonperforming assets (“NPAs”) $ 14,535     $ 14,269     $ 17,144     $ 10,270  
    Loans, end of period $ 1,352,728     $ 1,368,981     $ 1,424,828     $ 1,428,588  
    Total assets, end of period $ 1,779,963     $ 1,748,519     $ 1,799,137     $ 1,802,307  
    Ratios:              
    NPLs to total loans   1.01 %     0.98 %     1.09 %     0.60 %
    NPAs to total assets   0.82 %     0.82 %     0.95 %     0.57 %

    Average Balances, Interest Yields and Rates

    (in thousands, except yields and rates)

        Three Months Ended
    March 31, 2025    		   Three Months Ended
    December 31, 2024    		   Three Months Ended
    March 31, 2024
        Average
    Balance    		   Interest
    Income/
    Expense    		   Average
    Yield/
    Rate    		   Average
    Balance    		   Interest
    Income/
    Expense    		   Average
    Yield/
    Rate    		   Average
    Balance    		   Interest
    Income/
    Expense    		   Average
    Yield/
    Rate
    Average interest earning assets:                                    
    Cash and cash equivalents   $ 47,835   $ 524   4.44 %   $ 26,197   $ 327   4.97 %   $ 13,071   $ 191   5.88 %
    Loans receivable     1,363,352     18,602   5.53 %     1,396,854     19,534   5.56 %     1,456,586     20,168   5.57 %
    Investment securities     228,514     1,808   3.21 %     235,268     1,940   3.28 %     243,991     2,060   3.40 %
    Other investments     12,498     169   5.48 %     12,318     160   5.17 %     13,350     260   7.83 %
    Total interest earning assets   $ 1,652,199   $ 21,103   5.18 %   $ 1,670,637   $ 21,961   5.23 %   $ 1,726,998   $ 22,679   5.28 %
    Average interest-bearing liabilities:                                    
    Savings accounts   $ 167,001   $ 407   0.99 %   $ 162,501   $ 383   0.94 %   $ 176,838   $ 421   0.96 %
    Demand deposits     382,355     2,033   2.16 %     346,411     1,891   2.17 %     353,995     2,017   2.29 %
    Money market accounts     365,528     2,535   2.81 %     351,566     2,720   3.08 %     377,475     2,920   3.11 %
    CD’s     343,751     3,622   4.27 %     374,087     4,279   4.55 %     360,177     3,851   4.30 %
    Total deposits   $ 1,258,635   $ 8,597   2.77 %   $ 1,234,565   $ 9,273   2.99 %   $ 1,268,485   $ 9,209   2.92 %
    FHLB advances and other borrowings     64,635     912   5.72 %     72,431     980   5.38 %     124,701     1,565   5.05 %
    Total interest-bearing liabilities   $ 1,323,270   $ 9,509   2.91 %   $ 1,306,996   $ 10,253   3.12 %   $ 1,393,186   $ 10,774   3.11 %
    Net interest income       $ 11,594           $ 11,708           $ 11,905    
    Interest rate spread           2.27 %           2.11 %           2.17 %
    Net interest margin           2.85 %           2.79 %           2.77 %
    Average interest earning assets to average interest-bearing liabilities           1.25             1.28             1.24  
                                               

    Wholesale Deposits
    (in thousands)

      Quarter Ended
      March 31, 2025   December 31, 2024   September 30, 2024   June 30, 2024   March 31, 2024
    Brokered certificate accounts $ 5,489   $ 14,123   $ 48,578   $ 54,123   $ 43,507
    Brokered money market accounts   5,053     5,002     18,076     42,673     40,429
    Third party originated reciprocal deposits   16,451     14,125     26,266     17,237     13,178
    Total $ 26,993   $ 33,250   $ 92,920   $ 114,033   $ 97,114
                                 

    Key Financial Metric Ratios:

      Three Months Ended
      March 31, 2025   December 31, 2024   March 31, 2024
    Ratios based on net income:          
    Return on average assets (annualized) 0.74 %   0.61 %   0.90 %
    Return on average equity (annualized) 7.26 %   6.00 %   9.57 %
    Return on average tangible common equity4(annualized) 9.28 %   7.72 %   12.26 %
    Efficiency ratio 73 %   76 %   71 %
    Net interest margin with loan purchase accretion 2.85 %   2.79 %   2.77 %
    Net interest margin without loan purchase accretion 2.83 %   2.77 %   2.74 %
    Ratios based on net income as adjusted (non-GAAP)          
    Return on average assets as adjusted2(annualized) 0.74 %   0.61 %   0.90 %
    Return on average equity as adjusted3(annualized) 7.26 %   6.00 %   9.57 %
                     

    Reconciliation of Return on Average Assets

    (in thousands, except ratios)

      Three Months Ended
      March 31, 2025   December 31, 2024   March 31, 2024
           
    GAAP earnings after income taxes $ 3,197     $ 2,702     $ 4,088  
    Net income as adjusted after income taxes (non-GAAP) (1) $ 3,197     $ 2,702     $ 4,088  
    Average assets $ 1,763,191     $ 1,771,351     $ 1,834,152  
    Return on average assets (annualized)   0.74 %     0.61 %     0.90 %
    Return on average assets as adjusted (non-GAAP) (annualized)   0.74 %     0.61 %     0.90 %
                           

    (1) See Reconciliation of GAAP Net Income and Net Income as Adjusted (non-GAAP)

    Reconciliation of Return on Average Equity

    (in thousands, except ratios)

      Three Months Ended
      March 31, 2025   December 31, 2024   March 31, 2024
    GAAP earnings after income taxes $ 3,197     $ 2,702     $ 4,088  
    Net income as adjusted after income taxes (non-GAAP) (1) $ 3,197     $ 2,702     $ 4,088  
    Average equity $ 178,470     $ 179,242     $ 171,794  
    Return on average equity (annualized)   7.26 %     6.00 %     9.57 %
    Return on average equity as adjusted (non-GAAP) (annualized)   7.26 %     6.00 %     9.57 %
                           

    (1) See Reconciliation of GAAP Net Income and Net Income as Adjusted (non-GAAP)

    Reconciliation of Return on Average Tangible Common Equity (non-GAAP)

    (in thousands, except ratios)

      Three Months Ended
      March 31, 2025   December 31, 2024   March 31, 2024
    Total stockholders’ equity $ 180,051     $ 179,084     $ 172,821  
    Less: Goodwill   (31,498 )     (31,498 )     (31,498 )
    Less: Intangible assets   (800 )     (979 )     (1,515 )
    Tangible common equity (non-GAAP) $ 147,753     $ 146,607     $ 139,808  
    Average tangible common equity (non-GAAP) $ 146,083     $ 146,676     $ 138,692  
    GAAP earnings after income taxes   3,197       2,702       4,088  
    Amortization of intangible assets, net of tax   144       144       141  
    Tangible net income $ 3,341     $ 2,846     $ 4,229  
    Return on average tangible common equity (annualized)   9.28 %     7.72 %     12.26 %
                           

    Reconciliation of Efficiency Ratio

    (in thousands, except ratios)

      Three Months Ended
      March 31, 2025   December 31, 2024   March 31, 2024
    Non-interest expense (GAAP) $ 10,463     $ 10,809     $ 10,777  
    Less amortization of intangibles   (179 )     (179 )     (179 )
    Efficiency ratio numerator (GAAP) $ 10,284     $ 10,630     $ 10,598  
               
    Non-interest income $ 2,593     $ 2,009     $ 3,264  
    Add back net losses on debt and equity securities   —       (287 )     —  
    Subtract net gains on debt and equity securities   10       —       167  
    Net interest income   11,594       11,708       11,905  
    Efficiency ratio denominator (GAAP) $ 14,177     $ 14,004     $ 15,002  
    Efficiency ratio (GAAP)   73 %     76 %     71 %
                           

    Reconciliation of tangible book value per share (non-GAAP)

    (in thousands, except per share data)

    Tangible book value per share at end of period March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024
    Total stockholders’ equity $ 180,051     $ 179,084     $ 180,149     $ 176,045     $ 172,821  
    Less: Goodwill   (31,498 )     (31,498 )     (31,498 )     (31,498 )     (31,498 )
    Less: Intangible assets   (800 )     (979 )     (1,158 )     (1,336 )     (1,515 )
    Tangible common equity (non-GAAP) $ 147,753     $ 146,607     $ 147,493     $ 143,211     $ 139,808  
    Ending common shares outstanding   9,989,536       9,981,996       10,074,136       10,297,341       10,406,880  
    Book value per share $ 18.02     $ 17.94     $ 17.88     $ 17.10     $ 16.61  
    Tangible book value per share (non-GAAP) $ 14.79     $ 14.69     $ 14.64     $ 13.91     $ 13.43  
                                           

    Reconciliation of tangible common equity as a percent of tangible assets (non-GAAP)

    (in thousands, except ratios)

    Tangible common equity as a percent of tangible assets at end of period March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024
    Total stockholders’ equity $ 180,051     $ 179,084     $ 180,149     $ 176,045     $ 172,821  
    Less: Goodwill   (31,498 )   $ (31,498 )   $ (31,498 )   $ (31,498 )     (31,498 )
    Less: Intangible assets   (800 )   $ (979 )   $ (1,158 )   $ (1,336 )     (1,515 )
    Tangible common equity (non-GAAP) $ 147,753     $ 146,607     $ 147,493     $ 143,211     $ 139,808  
    Total Assets $ 1,779,963     $ 1,748,519     $ 1,799,137     $ 1,802,307     $ 1,819,315  
    Less: Goodwill   (31,498 )     (31,498 )     (31,498 )     (31,498 )     (31,498 )
    Less: Intangible assets   (800 )     (979 )     (1,158 )     (1,336 )     (1,515 )
    Tangible Assets (non-GAAP) $ 1,747,665     $ 1,716,042     $ 1,766,481     $ 1,769,473     $ 1,786,302  
    Total stockholders’ equity to total assets ratio   10.12 %     10.24 %     10.01 %     9.77 %     9.50 %
    Tangible common equity as a percent of tangible assets (non-GAAP)   8.45 %     8.54 %     8.35 %     8.09 %     7.83 %
                                           

    1Net income as adjusted and net income as adjusted per share are non-GAAP financial measures that management believes enhances investors’ ability to understand the underlying business performance and trends related to core business activities. For a detailed reconciliation of GAAP to non-GAAP results, see the accompanying financial table “Reconciliation of GAAP Net Income and Net Income as Adjusted (non-GAAP)”.

    2Return on average assets as adjusted is a non-GAAP measure that management believes enhances investors’ ability to understand the underlying business performance and trends relative to average assets. For a detailed reconciliation of GAAP to non-GAAP results, see the accompanying financial table “Reconciliation of Return on Average Assets as Adjusted (non-GAAP)”.

    3Return on average equity as adjusted is a non-GAAP measure that management believes enhances investors’ ability to understand the underlying business performance and trends relative to average equity. For a detailed reconciliation of GAAP to non-GAAP results, see the accompanying financial table “Reconciliation of Return on Average Equity as Adjusted (non-GAAP)”.

    4Tangible book value, tangible book value per share, tangible common equity as a percent of tangible assets and return on tangible common equity are non-GAAP measures that management believes enhances investors’ ability to understand the Company’s financial position. For a detailed reconciliation of GAAP to non-GAAP results, see the accompanying financial table “Reconciliation of tangible book value per share (non-GAAP)”, “Reconciliation of tangible common equity as a percent of tangible assets (non-GAAP)”, and “Reconciliation of return on average tangible common equity)”.

    The MIL Network –

  • MIL-OSI United Kingdom: Get up to date with your jabs this World Immunisation Week

    Source: City of Wolverhampton

    The focus of the annual World Health Organisation campaign this year is ‘immunisations for all is humanly possible’ – with the aim of ensuring even more children and young people, adults and the wider community are protected from preventable diseases.

    Councillor Jasbir Jaspal, the City of Wolverhampton Council’s Cabinet Member for Adults and Wellbeing, said: “Vaccination is one of the greatest public health interventions, both saving lives and promoting good health.

    “Immunisation protects not only the individual but also the population from preventable diseases which can cause serious illness as well as death.

    “Vaccines cannot give the disease they are designed to prevent and, if not enough people are vaccinated, diseases that have become uncommon like whooping cough, polio and measles can quickly re-emerge.

    “It’s important that vaccines are given when they are due for the best protection, but if you or your child has missed a vaccine, contact your GP to catch up.”

    The UK’s national immunisation programme starts from 2 months into old age and provides protection against a range of vaccine preventable infections including diphtheria, haemophilus influenzae type b, hepatitis B, HPV, flu, measles, meningococcal disease, mumps, whooping cough, pneumococcal disease, polio, rotavirus, RSV, rubella, shingles and tetanus.

    Other vaccines are available for those with complex health needs or those who are more at risk. More information on the vaccination schedule can be found at NHS | Vaccinations, which also includes facts and dispels myths about vaccination.

    If your child has missed their diphtheria, tetanus and polio teenage booster vaccination, the HPV (human papilloma virus) vaccination or the meningococcal (Men ACWY) vaccination in school or if your child is home educated and has not received these vaccinations when they are due, Vaccination UK will be holding a catch up clinic on Bank Holiday Monday 26 May from 10am to 2pm at Bizspace, Planetary Road WV13 3SW. To make an appointment, please call 01902 200077.

    Organised by the World Health Organisation, World Immunisation Week aims to highlight the collective action needed to protect people from vaccine preventable diseases. It aims to catch up the millions of children globally who missed out on vaccines during the Covid-19 pandemic and restore essential immunisation coverage to at least 2019 levels so that more children, adults and communities are protected from vaccine preventable diseases, allowing them to live happier, healthier lives.

    World Immunisation Week continues until Wednesday (30 April). For more information, please visit World Immunization Week 2025.

    MIL OSI United Kingdom –

  • MIL-OSI: CareCloud Launches Healthcare AI Center Set to Become World’s Largest with 500 AI Professionals

    Source: GlobeNewswire (MIL-OSI)

    SOMERSET, N.J., April 28, 2025 (GLOBE NEWSWIRE) — CareCloud, Inc. (Nasdaq: CCLD, CCLDO), a leading provider of healthcare technology and generative AI solutions, today announced the official launch of its AI Center of Excellence (the “AI CoE”) — a major strategic initiative aimed at delivering scalable, domain-specific artificial intelligence solutions purpose-built for healthcare.

    “Our ground-breaking AI Center officially began operations earlier this month with an inaugural team of over 50 AI engineers, data scientists, and healthcare domain experts, marking a pivotal moment in CareCloud’s journey,” said Hadi Chaudhry, Co-CEO of CareCloud. “The AI Center of Excellence reflects our long-term vision to lead in healthcare transformation. By leveraging 25 years of clinical and financial data, CareCloud is building proprietary, purpose-driven AI solutions that empower providers to deliver better care—faster, smarter, and more efficiently.”

    The AI CoE operates under a dual-shore model, seamlessly combining global engineering talent with localized healthcare expertise. CareCloud plans to scale the team to 500 AI professionals between now and the fourth quarter of 2025 — a milestone that CareCloud believes will establish it as the largest dedicated healthcare AI initiative in the world. The AI CoE is fully self-funded, reflecting CareCloud’s strong operating cash flows, disciplined execution, and the scalability of its global delivery model. By leveraging a highly efficient cost structure that outperforms U.S.-based competitors, CareCloud is uniquely positioned to accelerate innovation at scale while delivering enterprise-grade solutions with exceptional cost-effectiveness.

    “The launch of CareCloud’s AI Center of Excellence marks a major step forward in our growth strategy,” said Stephen Snyder, Co-CEO of CareCloud. “RCM companies and other industry competitors without advanced AI capabilities are being left behind — survival and growth now depend on innovation at scale. With the launch of our AI Center of Excellence, CareCloud is not just adapting to this shift — we are driving it. By embedding AI across every level of our organization, we are building a more powerful, efficient, and future-ready company positioned to lead the next era of healthcare.”

    Some core focus areas of CareCloud’s AI CoE include:

    • Proprietary Healthcare AI Models: Developing intelligent, domain-specific models for clinical workflows, revenue cycle processes, and decision support.
    • Automation and Efficiency Gains: Streamlining clinical documentation, coding, claims management, prior authorizations, and compliance workflows.
    • Predictive and Preventive Analytics: Enabling earlier identification of reimbursement risks, denial causes, patient propensity-to-pay and operational bottlenecks.
    • Smarter Patient and Provider Engagement: Enhancing communication, scheduling, patient education, and satisfaction through AI-driven personalization.
    • Accelerated Innovation Across Platforms: Embedding AI natively across EHR, RCM, and digital health products to deliver real-time, scalable value.

    CareCloud’s deep domain expertise and rich historical datasets provide a significant advantage in training and refining accurate, compliant AI models. By tightly integrating AI across its technology stack, the company is poised to deliver enterprise-grade, HIPAA-compliant solutions with immediate real-world impact.

    As the healthcare industry rapidly embraces artificial intelligence, CareCloud’s AI CoE strengthens its role as an innovation leader — driving operational transformation, enhancing clinical outcomes, and reducing the administrative burden on providers.

    About CareCloud

    CareCloud (Nasdaq: CCLD, CCLDO) brings disciplined innovation to the business of healthcare. Our suite of AI and technology-enabled solutions helps clients increase financial and operational performance, streamline clinical workflows and improve the patient experience. More than 40,000 providers count on CareCloud to help them improve patient care, while reducing administrative burdens and operating costs. Learn more about our products and services, including revenue cycle management (RCM), practice management (PM), electronic health records (EHR), business intelligence, patient experience management (PXM) and digital health, at carecloud.com.

    Follow CareCloud on LinkedIn, X and Facebook.

    For additional information, please visit our website at carecloud.com. To listen to video presentations by CareCloud’s management team, read recent press releases and view the latest investor presentation, please visit ir.carecloud.com.

    Disclaimer

    This press release is for information purposes only, and does not constitute an offer to sell or solicitation of an offer to buy, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of such state or jurisdiction.

    Forward-Looking Statements

    This press release contains various forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements relate to anticipated future events, future results of operations or future financial performance. In some cases, you can identify forward-looking statements by terminology such as “may,” “might,” “will,” “shall,” “should,” “could”, “intends,” “expects,” “plans,” “goals,” “projects,” “anticipates,” “believes,” “seeks,” “estimates,” “predicts,” “possible,” “potential,” “target,” or “continue” or the negative of these terms or other comparable terminology.

    Our operations involve risks and uncertainties, many of which are outside our control, and any one of which, or a combination of which, could materially affect our results of operations and whether the forward-looking statements ultimately prove to be correct. Forward-looking statements in this press release include, without limitation, statements reflecting management’s expectations for future financial performance and operating expenditures, expected growth, profitability and business outlook, the impact of pandemics on our financial performance and business activities, and the expected results from the integration of our acquisitions.

    These forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are only predictions, are uncertain and involve substantial known and unknown risks, uncertainties and other factors which may cause our (or our industry’s) actual results, levels of activity or performance to be materially different from any future results, levels of activity or performance expressed or implied by these forward-looking statements. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all of the risks and uncertainties that could have an impact on the forward-looking statements, including without limitation, risks and uncertainties relating to the Company’s ability to manage growth, migrate newly acquired customers and retain new and existing customers, maintain cost-effective global operations, increase operational efficiency and reduce operating costs, predict and properly adjust to changes in reimbursement and other industry regulations and trends, retain the services of key personnel, develop new technologies, upgrade and adapt legacy and acquired technologies to work with evolving industry standards, compete with other companies’ products and services competitive with ours, and other important risks and uncertainties referenced and discussed under the heading titled “Risk Factors” in the Company’s filings with the Securities and Exchange Commission.

    The statements in this press release are made as of the date of this press release, even if subsequently made available by the Company on its website or otherwise. The Company does not assume any obligations to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.

    SOURCE CareCloud

    Company Contact: 
    Norman Roth 
    Interim Chief Financial Officer and Corporate Controller 
    CareCloud, Inc.
    nroth@carecloud.com 

    Investor Contact:
    Stephen Snyder 
    Co-Chief Executive Officer 
    CareCloud, Inc. 
    ir@carecloud.com 

    The MIL Network –

  • MIL-OSI: Franklin Electric Declares Quarterly Dividend of $0.265 Per Share

    Source: GlobeNewswire (MIL-OSI)

    FORT WAYNE, Ind., April 28, 2025 (GLOBE NEWSWIRE) — Franklin Electric Co., Inc. (NASDAQ: FELE) announced today that its Board of Directors declared a quarterly cash dividend of $0.265 per share payable May 22, 2025, to shareholders of record on May 8, 2025.

    About Franklin Electric
    Franklin Electric is a global leader in the production and marketing of systems and components for the movement of water and energy. Recognized as a technical leader in its products and services, Franklin Electric serves customers around the world in residential, commercial, agricultural, industrial, municipal, and fueling applications. Franklin Electric is proud to be named in Newsweek’s lists of America’s Most Responsible Companies and Most Trustworthy Companies for 2024 and America’s Climate Leaders 2024 by USA Today.

    “Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995. Any forward-looking statements contained herein, including those relating to market conditions or the Company’s financial results, costs, expenses or expense reductions, profit margins, inventory levels, foreign currency translation rates, liquidity expectations, business goals and sales growth, involve risks and uncertainties, including but not limited to, risks and uncertainties with respect to general economic and currency conditions, various conditions specific to the Company’s business and industry, weather conditions, new housing starts, market demand, competitive factors, changes in distribution channels, supply constraints, effect of price increases, raw material costs, technology factors, integration of acquisitions, litigation, government and regulatory actions, the Company’s accounting policies, future trends, epidemics and pandemics, and other risks which are detailed in the Company’s Securities and Exchange Commission filings, included in Item 1A of Part I of the Company’s Annual Report on Form 10-K for the fiscal year ending December 31, 2024, Exhibit 99.1 attached thereto and in Item 1A of Part II of the Company’s Quarterly Reports on Form 10-Q. These risks and uncertainties may cause actual results to differ materially from those indicated by the forward-looking statements. All forward-looking statements made herein are based on information currently available, and the Company assumes no obligation to update any forward-looking statements. 

    The MIL Network –

  • MIL-OSI USA: Neag School Alums Take Their Teaching Skills Abroad, Changing Students’ Lives Around the World

    Source: US State of Connecticut

    UConn Neag School of Education alumni Jessica Stargardter ’16 (ED), ’17 MA; Gabriel Castro ’14 (ED), ’15 MA; Nicole Holland Kew ’09 (ED), ’10 MA; and Yurah Robidas Emmenegger ’09 (ED), ’09 (CLAS), ’10 MA; have each embarked on remarkable journeys as educators, spanning continents and cultures. From their foundations at UConn to classrooms across the world, their careers highlight the transformative power of teaching beyond borders.

    “Time after time, our UConn participants have told me that studying and teaching abroad has been one of the most profound experiences of their lives,” says Doug Kaufman, the Neag School’s director of global education and an associate professor of curriculum and instruction. “I see it, too. Moving away from familiar and comfortable contexts has taught them how to recognize the diverse and powerful gifts that their students at home bring into the classroom.

    “Working abroad develops cultural awareness, empathy, humility, and an expanded sense of possibility when working with students. Our teachers learn how to learn from their students and advocate for them all.”

    Stargardter’s passion for gifted education led her from Connecticut to Panama, Singapore, and Finland, shaping her global perspective. She says her experiences reinforce her belief in education as a universal force for change, transcending cultural and linguistic differences.

    Working abroad develops cultural awareness, empathy, humility, and an expanded sense of possibility when working with students. Our teachers learn how to learn from their students and advocate for them all. &#8212 Doug Kaufman, Neag School’s director of global education

    Castro’s path to teaching went from Puerto Rico to Colombia, Costa Rica, and Taiwan, and he has embraced each opportunity with curiosity and openness. His teaching philosophy is rooted in adaptation and connection, ensuring meaningful relationships with students regardless of geography. As he prepares for fatherhood, he looks forward to the next chapter of his journey.

    For Kew, London became home. A study abroad trip led to a life-changing move across the Atlantic, where she has spent over a decade teaching and raising a family. Balancing work and her personal life, she cherishes her role as an educator in a diverse, evolving community.

    Emmenegger’s love for language and culture brought her from Connecticut to France, Portugal, and Switzerland. Teaching French and German in international schools, she exemplifies resilience and adaptability, proving that a commitment to education can create opportunities in unexpected places.

    Together, their stories illustrate the boundless impact of teaching, and the unique paths educators take to inspire students worldwide.

    Reconnecting with Family Roots

    From Connecticut to Puerto Rico, Colombia, Costa Rica, and now Taiwan, every step of Gabriel Castro’s ’14 (ED), ’15 MA journey has been driven by curiosity, a love for teaching, and an openness to change. (Photo courtesy of Gabriel Castro)

    Education wasn’t Castro’s first choice — he entered UConn as a psychology major, uncertain of his career path. However, a mentorship role in a First-Year Experience course changed everything. Standing before a classroom, guiding new college students, he realized teaching was what he was meant to do.

    After graduating from the Neag School, he took his first teaching position in Puerto Rico, reconnecting with his roots. His mother had spent much of her childhood moving between Puerto Rico and Connecticut, and teaching at a K-12 school immersed him in a close-knit community.

    Three years in Puerto Rico deepened his love for international teaching and inspired him to explore the other half of his heritage. His father had emigrated from Colombia, and Castro wanted to experience the country firsthand. Moving to Colombia, he found a vibrant culture, rich with music festivals, soccer, and breathtaking landscapes. It was there he met his wife, Kismeth, a fellow international teacher from New York. He says their shared passion for education and adventure brought them together.

    They had intended to take a sabbatical year traveling through South America, but the COVID-19 pandemic reshaped their plans. With borders closing, they found temporary teaching positions in Costa Rica. Castro stepped in as a last-minute math teacher, navigating virtual classes, hybrid schedules, and masked interactions. Despite the challenges, Costa Rica was a paradise.

    My years of adapting to different educational environments had prepared me well. &#8212 Gabriel Castro ’14 (ED), ’15 MA

    “With tourism at a standstill, nature thrived,” he says. “Sloths and monkeys roamed undisturbed, and sunsets painted the sky in hues of gold and crimson.”

    As the world reopened, they faced their next big decision. Asia had always intrigued them, and Taiwan offered everything they wanted — an excellent school, a safe environment, and a strong culture of hiking, cycling, and running.

    Moving to Taiwan was a leap of faith but quickly felt like home. While the language barrier existed outside the classroom, Castro found his ability to connect with students transcended words.

    “My years of adapting to different educational environments had prepared me well,” he says.

    From Connecticut to Puerto Rico, Colombia, Costa Rica, and now Taiwan, every step of his journey has been driven by curiosity, a love for teaching, and an openness to change. His classroom now extends beyond four walls, spanning countries, cultures, and languages, and he is preparing for an exciting new personal chapter: fatherhood.

    “I have an 11-month-old puppy, so I feel like I’ve been practicing in a way,” he says. “It’s a steep learning curve! But I’m excited to see how we can continue traveling with a baby and incorporating her into our adventures.”

    Finding Love While Abroad

    “It’s the children, really. Seeing them progress, mature, but still retain that spark of who they are — it’s special,” says Nicole Holland Kew ’09 (ED), ’10 MA. (Photo courtesy of Nicole Holland Kew)

    Fourteen years into her teaching career — first in Connecticut and then in London — Kew still finds joy in watching her students grow.

    “It’s the children, really,” she says. “Seeing them progress, mature, but still retain that spark of who they are — it’s special.”

    Having spent 10 years at the same London school, she has become deeply embedded in the community. She gets to know families, watches siblings pass through her classroom, and shares their triumphs and struggles.

    “Teaching wasn’t just a job; it was a life woven into the fabric of so many others,” she says.

    Her path to teaching began in high school when she worked at an after-school program at her former elementary school in Connecticut. Later, as a camp director at a nature center, she solidified her love for mentoring. Her mother had always dreamed of being a teacher but never pursued it.

    Teaching wasn’t just a job; it was a life woven into the fabric of so many others. &#8212 Nicole Holland Kew ’09 (ED), ’10 MA

    “Maybe in a way, I was fulfilling that dream for both of us,” Kew says.

    A single decision changed her trajectory. Studying abroad in London while at the Neag School was supposed to be an adventure — an opportunity to explore a city she had loved since a family trip at 13. She hadn’t expected to meet her future husband just weeks into the program.

    They met in a pub, a chance encounter that turned into a long-distance relationship. After navigating time zones and transatlantic flights, they decided to marry. With her husband’s career established in London and the UK actively recruiting teachers, it made sense for Kew to move.

    Adjusting to teaching in England came with challenges. In Connecticut, Kew had more autonomy in her teaching, while curriculum and behavior management were standardized in London. Leadership opportunities came more readily, and she briefly considered administration but loved being in the classroom too much.

    Balancing work and family was another challenge. With four children — two daughters, 6 and 4, and toddler twins — her hands are full.

    “Honestly,” she says, “going to work feels like a break compared to being home!”

    London has become home in ways she never expected. During the uncertainty of the COVID-19 pandemic, she and her husband considered moving to the U.S. to be closer to her family, but something always held them back. London has given her a life she cherishes, a career she loves, a community she belongs to, and — most importantly — a family she has built from the ground up.

    Focused on All Things French

    Yurah Robidas Emmenegger ’09 (ED), ’09 (CLAS), ’10 MA says her Neag School education instilled adaptability, an open-minded approach to curricula, and a hands-on teaching philosophy. These lessons help her navigate unfamiliar school systems and cultural differences with confidence. (Photo courtesy of Yurah Robidas Emmenegger)

    Emmenegger, who taught for 15 years in Connecticut and now teaches in France, first became interested in education while teaching piano and tutoring in high school. With a mother who was also a teacher, it felt natural.

    “It just made sense that I would become a teacher,” she says.

    Growing up in Bristol and Plainville, Emmenegger developed a love for French through her mother, who had lived in Switzerland and Portugal.

    “She sang to us in French as kids,” Emmenegger says. “In high school, I jumped at the chance to study it.”

    A summer program in France in 2007 and the Neag School’s study abroad program in London during her master’s year of the Integrated Bachelor’s/Master’s teacher education program deepened her passion for language and curriculum planning.

    My marriage, career, and worldview have all been shaped by this journey. While I still hope for a French teaching position, I know I am exactly where I am meant to be. &#8212 Yurah Robidas Emmenegger ’09 (ED), ’09 (CLAS), ’10 MA

    After graduating, she taught French in Ellington, for three years but longed to live in France. She joined the French government’s teaching assistant program and was placed in Monté, where she lived with international assistants and did a weekly language exchange with another teacher. She spoke in English for half an hour for the language exchange to help the other teacher improve his English communication skills. Then, the other half specifically worked on improving her grammar.

    Since she couldn’t teach French in France, Emmenegger explored other opportunities. Her mother’s past in Portugal led her there for Christmas, where she fell in love with the country and found a teaching job. But her journey took an unexpected turn — she met her future husband in Switzerland. When the world shut down in 2020, they spent months apart. Determined to be together, they married in May 2021, and, by July, she had moved to Switzerland.

    Finding a teaching job there was challenging. She took a role at a private school, but it wasn’t the right fit.

    She joined the International School of Basel (ISB), but no French positions were available. Expanding her search, she took a six-month role at a Swiss public school, but left after half a year.

    ISB welcomed her back with an unexpected offer: teaching beginner German. Having learned German just two years earlier through Duolingo and night classes, she thought the interview offer was a joke. But ISB encouraged her. She took the leap and found herself in a supportive, engaging environment. ISB promised her priority for the next French opening, but no one wanted to leave — a testament to the school’s quality.

    Despite career uncertainties, Emmenegger and her husband were building a life together. He was teaching while finishing his studies, and they navigated the challenges of being an international couple.

    “You have to be open to moving,” she says. “Each time I relocated, I rebuilt my support system, making me appreciate my deep connections back home even more.”

    She says her Neag School education instilled adaptability, an open-minded approach to curricula, and a hands-on teaching philosophy. These lessons helped her navigate unfamiliar school systems and cultural differences with confidence.

    For those who love studying abroad, Emmenegger encourages taking the next step and teaching internationally, as she has no regrets.

    “My marriage, career, and worldview have all been shaped by this journey,” she says. “And while I still hope for a French teaching position, I know I am exactly where I am meant to be.”

    From UConn to Global Classrooms

    Jessica Stargardter’s ’16 (ED), ’17 MA teaching journey included a year in Finland as a Fulbright Scholar, during which time she researched teacher evaluations in the country’s globally recognized education system. (Photo courtesy of Jessica Stargardter)

    Stargardter’s journey as an educator has been extraordinary, spanning continents and shaping her perspective on the transformative power of teaching. After graduating from the Neag School, she began her career in Connecticut, teaching in Greenwich Public Schools before moving to Norwalk. There, she discovered her passion for gifted and talented education, an interest sparked during her time at UConn, where she worked at the Renzulli Center for Creativity, Gifted Education, and Talent Development.

    “I started filing papers at first, but then I received a grant to conduct research,” she says, which ignited a lifelong commitment to student potential.

    Stargardter’s dedication led her to teach abroad at the International School of Panama.

    “It was my first experience in a traditional classroom after working across grade levels,” she says. “I felt like a first-year teacher again, but it taught me so much about myself and the world.”

    She later moved to Singapore, where she found a more manageable cultural transition.

    “I was in a classroom with students from all over the world, each bringing something unique,” she says. “It was challenging but incredibly rewarding.”

    Teaching is more than just a profession. It’s a way to change lives, one student at a time, no matter where I teach. &#8212 Jessica Stargardter ’16 (ED), ’17 MA

    Teaching abroad reinforced her belief in education’s universal impact, transcending borders and backgrounds. Reflecting on what initially drew her to teaching, Stargardter credits her third-grade teacher, Mr. Simeone.

    “He gamified everything,” she says. “Learning was fun and engaging. I remember thinking I wanted to do the same for my students.”

    Her teaching journey also included a year in Finland as a Fulbright Scholar, during which time she researched teacher evaluations in the country’s globally recognized education system. Initially considering a career in academia, she realized how much she missed teaching, leading her back to the classroom and eventually to her move to Panama.

    Stargardter’s foundation for success was built at the Neag School, where extensive classroom experiences prepared her for any teaching environment.

    “Neag gave me the tools to step into my first classroom ready to succeed,” she says, crediting the program’s diverse placements for shaping her adaptable teaching philosophy.

    During her master’s year, Stargardter interned in London through one of the Neag School’s study abroad programs, working at a school for adolescents with mental health challenges. She says this experience reshaped her understanding of education, teaching her that learning extends beyond traditional classrooms.

    Her journey abroad has reinforced her belief in cross-cultural education’s power to broaden perspectives.

    “Teaching is more than just a profession,” she says. “It’s a way to change lives, one student at a time, no matter where I teach.”

    To learn more about the Neag School’s teacher education programs, visit teachered.education.uconn.edu.

    MIL OSI USA News –