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  • MIL-OSI: Gouverneur Bancorp, Inc. Announces Fiscal 2025 First Quarter Results

    Source: GlobeNewswire (MIL-OSI)

    GOUVERNEUR, N.Y., Jan. 24, 2025 (GLOBE NEWSWIRE) — Gouverneur Bancorp, Inc. (OTCQB: GOVB) (the “Company”), the holding company for Gouverneur Savings and Loan Association (the “Bank”), today announced the Company’s results for the first quarter of fiscal year 2025 ended December 31, 2024.

    The Company reported net income of $160,000, or $0.15 per basic and diluted share, for the quarter ended December 31, 2024, compared to net income of $118,000, or $0.11 per basic and diluted share, for the quarter ended December 31, 2023.

    Summary of Financial Results

    Our results of operations depend primarily on our net interest income. Net interest income is the difference between the interest income we earn on our interest-earning assets, consisting primarily of loans and securities, and the interest we pay on our interest-bearing liabilities, consisting of savings and club accounts, NOW and money market accounts and time certificates. Our results of operations also are affected by our provisions for credit losses, non-interest income and non-interest expense. Non-interest income currently consists primarily of service charges, earnings on bank owned life insurance and loan servicing fees. Non-interest expense currently consists primarily of salaries and employee benefits, directors’ fees, occupancy and data processing expense and professional fees. Our results of operations also may be affected significantly by general and local economic and competitive conditions, changes in market interest rates, governmental policies and actions of regulatory authorities.

    Total assets decreased by $0.5 million or 0.25%, from $197.3 million at September 30, 2024 to $196.8 million at December 31, 2024. Securities available for sale decreased $1.8 million, or 4.00%, from $45.3 million as of September 30, 2024 to $43.5 million as of December 31, 2024 as the Bank received principal paydowns and maturities along with a decrease in the market value as market rates fluctuate. Net loans increased by $0.7 million or 0.54%, from September 30, 2024 to December 31, 2024. The Bank made a $15,000 provision for credit loss during the first quarter of fiscal 2025, a decrease from the $70,000 provision made in the same period of fiscal 2024.

    Deposits decreased $0.2 million or 0.14%, to $159.7 million at December 31, 2024 from $159.9 million at September 30, 2024 due to seasonal fluctuations. The Bank currently holds no Federal Home Loan Bank (FHLB) advances or brokered deposits.

    Shareholders’ equity was $31.7 million at December 31, 2024, representing a decrease of 3.12% from the September 30, 2024 balance of $32.8 million. The decrease in shareholders’ equity was primarily a result of a $1.1 million decrease to the market value of the securities portfolio included in accumulated other comprehensive loss. The Company declared dividends of $0.08 per share totaling $89,000 during the three months ended December 31, 2024. The Company’s book value was $28.68 per common share based on 1,107,134 shares issued and 1,106,790 shares outstanding at December 31, 2024. The Company’s book value was $29.59 per common share based on 1,107,134 shares issued and outstanding at September 30, 2024.

    Total interest income increased $38,000, or 1.79%, from $2.1 million for the quarter ended December 31, 2023 to $2.2 million for the quarter ended December 31, 2024. Interest income on loans increased $91,000, or 5.68%, from $1.6 million for the quarter ended December 31, 2023 to $1.7 million for the quarter ended December 31, 2024 due to an increase in market rates resulting in higher interest rates on loan originations and repricing.

    Total interest expense increased $77,000, or 23.77%, from $324,000 for the quarter ended December 31, 2023 to $401,000 for the quarter ended December 31, 2024. Interest expense on deposits increased $158,000, from $243,000 for the quarter ended December 31, 2023 to $401,000 for the quarter ended December 31, 2024. Interest expense on FHLB borrowings decreased $131,000 as the Bank currently holds no FHLB advances.

    Net interest spread, the difference between the rate earned on interest-earning assets and the rate paid on interest-bearing liabilities, was 3.78% for the quarter ended December 31, 2024 and 3.84% for the quarter ended December 31, 2023 as interest rates on interest bearing deposits increased faster than the interest rates on loans during fiscal 2024.

    Non-interest income increased $97,000, from $147,000 for the quarter ended December 31, 2023 to $244,000 for the quarter ended December 31, 2024. This includes the unrealized market value loss on swap agreements held with FHLBNY of $9,000 and $143,000 for the quarters ended December 31, 2024 and 2023, respectively. Other non-interest income increased $52,000 compared to the same period last year, primarily due to the recognition of additional income from a tax-related refund.

    Financial and Operational Metrics (GAAP)

      12/31/2024   09/30/2024
      (In Thousands)
      (unaudited)    
    Statement of Condition      
    Assets      
    Cash and Cash Equivalents $ 7,013   $ 6,370
    Securities Available-for-Sale   43,534     45,348
    Loans Receivable, Net of Allowance for Credit Losses and Deferred Loan Fees   124,927     124,257
    Premises and Equipment, Net   2,933     2,924
    Goodwill and Intangible Assets   5,808     5,901
    Accrued Interest Receivable and Other Assets   12,561     12,460
    Total Assets $ 196,776   $ 197,260
           
    Liabilities and Shareholders’ Equity      
    Deposits $ 159,672   $ 159,902
    Accrued Interest Payable and Other Liabilities   5,361     4,593
    Total Liabilities   165,033     164,495
           
    Common Stock (and related surplus)   6,501     6,498
    Retained Earnings   28,484     28,413
    Accumulated Other Comprehensive Loss   (2,737)     (1,606)
    Other Equity Capital Components   (505)     (540)
    Total Shareholders’ Equity   31,743     32,765
    Total Liabilities and Shareholders’ Equity $ 196,776   $ 197,260
           
           
      For the Quarter Ended
      12/31/2024   12/31/2023
      (In Thousands except per share data)
      (unaudited)
    Statement of Earnings      
    Interest Income $ 2,166   $ 2,128
    Interest Expense   401     324
    Net Interest Income   1,765     1,804
           
    Provision for Credit Loss   15     70
    Net Interest Income After Provision for Credit Loss   1,750     1,734
           
    Non-interest Income   244     147
    Non-interest Expenses   1,835     1,780
           
    Income Before Income Tax Benefit   159     101
    Income Tax Benefit   (1)     (17)
    Net Income $ 160   $ 118
           
    Performance Ratios      
    Basic and Diluted Earnings per Share $ 0.15   $ 0.11
    Annualized Return on Average Assets   0.32%     0.23%
    Annualized Return on Average Equity   1.97%     1.61%
    Net Interest Spread   3.78%     3.84%
               

    About Gouverneur Bancorp, Inc.

    Gouverneur Bancorp, Inc. is the holding company for Gouverneur Savings and Loan Association, which is a New York chartered savings and loan association founded in 1892 that offers deposit and loan services for businesses, families and individuals. At December 31, 2024, Gouverneur Bancorp, Inc. had total assets of $196.8 million, total deposits of $159.7 million and total stockholders’ equity of $31.7 million.

    Forward-Looking Statements

    This press release may contain forward-looking statements, which can be identified by the use of words such as “believes,” “expects,” “anticipates,” “estimates” or similar expressions. Such forward-looking statements and all other statements that are not historic facts are subject to risks and uncertainties which could cause actual results to differ materially from those currently anticipated due to a number of factors. These factors include, among others, the following: the ability to successfully integrate acquired entities, such as Citizens Bank of Cape Vincent, which we acquired on September 16, 2022, and realize expected cost savings associated with completed mergers and acquisitions; changes in interest rates; national and regional economic conditions; legislative and regulatory changes; monetary and fiscal policies of the U.S. government, including policies of the U.S. Treasury and the Federal Reserve Board; the size, quality and composition of the loan or investment portfolios; demand for loan products; deposit flows and our ability to effectively manage liquidity; competition; demand for financial services in our market area; changes in real estate market values in our market area; changes in relevant accounting principles and guidelines; our ability to attract and retain key employees; our ability to maintain the security of our data processing and information technology systems; and that the Company may not be successful in the implementation of its business strategy. Additionally, other risks and uncertainties are described in the Company’s Annual Report on Form 10-K for the year ended September 30, 2024, which is available through the SEC’s EDGAR website located at http://www.sec.gov. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. Should one or more of these risks materialize, actual results may vary from those anticipated, estimated or projected.

    Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Except as may be required by applicable law or regulation, the Company and the Bank assume no obligation to update any forward-looking statements.

    For more information, contact Robert W. Barlow, President and Chief Executive Officer at (315) 287-2600.

    The MIL Network –

  • MIL-OSI Global: Can Trump just order new names for Denali and the Gulf of Mexico? A geographer explains who decides what goes on the map

    Source: The Conversation – USA – By Innisfree McKinnon, Associate Professor of Geography, University of Wisconsin-Stout

    Known as Mount McKinley until 2015, Denali’s current name reflects what Native Alaskans call the mountain. Arterra/Universal Images Group via Getty Images

    President Donald Trump’s executive order to rename the Gulf of Mexico and Alaska’s Denali, the tallest peak in the country, has resulted in lots of discussion. While for some, such renaming might seem less important than the big problems the country faces, there is a formal process in the United States for renaming places, and that process is taken seriously.

    Usually, so people don’t get confused, official, agreed-upon names are used by the government. In the U.S., place names are standardized by the U.S. Board on Geographic Names, which is part of the U.S. Geological Survey, the agency in charge of making maps.

    In his executive order, Trump asks the Board on Geographic Names “to honor the contributions of visionary and patriotic Americans” and change its policies and procedures to reflect that.

    Usually, renaming a place starts locally. The people in the state or county propose a name change and gather support. The process in each state is different.

    Lake Bde Maka Ska, formerly Lake Calhoun, is the largest lake in Minneapolis.
    YinYang/E+ via Getty

    How to change a place name

    Minnesota recently changed the name of a large lake in Minneapolis to Bde Maka Ska, which the Minneapolis Park Board described as “a Dakota name for the lake that has been passed down in oral history for many years.”

    The board voted to change the name and took its request to the county commissioners. When the county agreed, the request was then sent to the Minnesota Department of Natural Resources, which made it official for Minnesota. Then, the state of Minnesota sent the request to the Board on Geographic Names, which made it official for the entire U.S.

    It’s a lot of paperwork for something so seemingly minor, but people get passionate about place names. It took 40 years to rename Denali from the name established in the late 19th century, Mount McKinley.

    The state of Alaska requested the name change in 1975, but the Board on Geographic Names didn’t take action. Members of the Ohio congressional delegation – President William McKinley was from Ohio – objected over many years to requests to rename the mountain, and the board did not act on those requests.

    The president appoints the secretary of the Interior Department. The secretary works with the heads of related agencies to appoint the Board on Geographic Names. Current committee policy states, “Input from State geographic names authorities, land
    management agencies, local governments, and Tribal Governments     are actively pursued.”

    In 2015, President Barack Obama named a new leader for the Department of the Interior, Sally Jewell. Just as Obama made a trip to Alaska in late August 2015, Jewell declared the name change official under a law that allows the secretary of the Interior to change a name if the board doesn’t act on the proposal in a “reasonable” amount of time.

    “This name change recognizes the sacred status of Denali to many Alaska Natives,” Jewell said. “The name Denali has been official for use by the State of Alaska since 1975, but even more importantly, the mountain has been known as Denali for generations. With our own sense of reverence for this place, we are officially renaming the mountain Denali in recognition of the traditions of Alaska Natives and the strong support of the people of Alaska.”

    If someone objects to a name change, they could ask the courts to rule on whether the name change was made legally. Going back to Bde Maka Ska, some people objected to changing the name from Lake Calhoun, so they took the state natural resources agency to court. Eventually, the Minnesota Supreme Court ruled that the name change was done correctly.

    Alaska’s two U.S. senators and prominent state figures have strongly objected to Trump’s renaming attempt.

    How not to change a place name

    Renaming the Gulf of Mexico is a different kind of case, however, from renaming a geographic place within U.S. borders.

    The gulf is not within the territorial U.S. On the coast, the first 12 miles from shore are considered part of that country, but outside of that is international waters.

    The Board on Geographic Names could change the name to Gulf of America on official U.S. maps, but there is no international board in charge of place names. Each country decides what to call places. And there is no official way for the U.S. to make other countries change the name.

    It’s possible that the U.S. could formally ask other countries to change the name, or even impose sanctions against countries that don’t comply.

    If the names were officially changed in the U.S., the government would use the new names in official documents, signage and maps. As for all the people and companies in the world that make maps, they usually use the official names. But there is nothing that would force them to, if they believed that a certain name is more widely recognized.

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

    – ref. Can Trump just order new names for Denali and the Gulf of Mexico? A geographer explains who decides what goes on the map – https://theconversation.com/can-trump-just-order-new-names-for-denali-and-the-gulf-of-mexico-a-geographer-explains-who-decides-what-goes-on-the-map-248112

    MIL OSI – Global Reports –

  • MIL-OSI: Northrim BanCorp Earns $10.9 Million, or $1.95 Per Diluted Share, in Fourth Quarter 2024, and $37.0 Million, or $6.62 Per Diluted Share, for the Year Ended December 31, 2024

    Source: GlobeNewswire (MIL-OSI)

    ANCHORAGE, Alaska, Jan. 24, 2025 (GLOBE NEWSWIRE) — Northrim BanCorp, Inc. (NASDAQ:NRIM) (“Northrim” or the “Company”) today reported net income of $10.9 million, or $1.95 per diluted share, in the fourth quarter of 2024, compared to $8.8 million, or $1.57 per diluted share, in the third quarter of 2024, and $6.6 million, or $1.19 per diluted share, in the fourth quarter a year ago. The increase in the fourth quarter of 2024 compared to the third quarter of 2024 is primarily due to an increase in purchased receivable income due to the Company’s acquisition of Sallyport Commercial Finance, LLC (“Sallyport”), which was completed on October 31, 2024. Sallyport and its direct and indirect subsidiaries provide services and products related to factoring and asset-based lending in the United States, Canada, and the United Kingdom. Additionally, in the fourth quarter of 2024 the Company had an increase in mortgage banking income, primarily as a result of an increase in the fair value of a mortgage servicing portfolio that the Company purchased from another financial institution in the fourth quarter. The increase profitability in the fourth quarter of 2024 as compared to the same quarter of the prior year was largely driven by an increase in mortgage banking income and higher net interest income, as well as an increase in purchased receivable income as noted above, which was only partially offset by higher other operating expenses and an increase in the provision for credit losses.

    Net income for the full year of 2024 increased 46% to $37.0 million, or $6.62 per diluted share, compared to $25.4 million, or $4.49 per diluted share, for the full year of 2023. Increased net interest income resulting from loan and deposit growth supported 2024 earnings in the Community Banking segment but were offset by increases in other operating expenses, primarily in salaries and other personnel expense as the Company continued to expand its branch network into new markets in Alaska. An increase in mortgage originations and an increase in the fair value of mortgage servicing rights resulted in net income of $4.4 million in the Home Mortgage Lending segment in 2024 compared to a $2.5 million loss in 2023.

    Dividends per share in the fourth quarter of 2024 remained consistent with the third quarter of 2024 at $0.62 per share and increased from $0.60 per share in the fourth quarter of 2023.

    “Northrim reported record core earnings in 2024 and record earnings per share in the fourth quarter,” said Mike Huston, Northrim’s President and Chief Executive Officer. “We are pleased with our results as we continue to focus on profitable growth. In the last five years Northrim’s deposit market share in Alaska has increased from 11% to 16%, loans and deposits have increased by almost 100%, and net interest income has increased by 60%.”

    “2024 results were also supported by an improvement in mortgage banking income,” continued Mr. Huston. “We believe the acquisition of Sallyport in the fourth quarter will further diversify fee income and provide attractive risk-adjusted returns to Northrim shareholders.”

    Fourth Quarter 2024 Highlights:

    • Net interest income in the fourth quarter of 2024 increased 7% to $30.8 million compared to $28.8 million in the third quarter of 2024 and increased 15% compared to $26.7 million in the fourth quarter of 2023.
    • Net interest margin on a tax equivalent basis (“NIMTE”)* was 4.47% for the fourth quarter of 2024, a 12-basis point increase from the third quarter of 2024 and a 35-basis point increase compared to the fourth quarter of 2023.
    • Return on average assets (“ROAA”) was 1.43% and return on average equity (“ROAE”) was 16.32% for the fourth quarter of 2024.
    • Portfolio loans were $2.13 billion at December 31, 2024, up 6% from the preceding quarter and up 19% from a year ago, primarily due to new customer relationships, expanding market share, and to retaining certain mortgage loans originated by Residential Mortgage, a subsidiary of Northrim Bank (the “Bank”), in the loan portfolio.
    • Total deposits were $2.68 billion at December 31, 2024, up 2% from the preceding quarter, and up 8% from $2.49 billion a year ago. Noninterest bearing demand deposits represented 27% of total deposits at December 31, 2024, down from 29% at September 30, 2024 and 31% at December 31, 2023.
    • Total assets at December 31, 2024 exceeded $3 billion for the first time.
    • The average cost of interest-bearing deposits was 2.15% in the fourth quarter of 2024, down from 2.24% in the third quarter of 2024 and up from 2.00% in the fourth quarter a year ago.
    • Acquired Sallyport for approximately $53.9 million (approximately $47.9 million in cash and $6 million in an earn-out payable over 3 years) on October 31, 2024.
       
    Financial Highlights Three Months Ended
    (Dollars in thousands, except per share data) December 31,
    2024    		 September 30,
    2024    		 June 30, 2024 March 31, 2024 December 31,
    2023
    Total assets $3,041,869   $2,963,392   $2,821,668   $2,759,560   $2,807,497  
    Total portfolio loans $2,129,263   $2,007,565   $1,875,907   $1,811,135   $1,789,497  
    Total deposits $2,680,189   $2,625,567   $2,463,806   $2,434,083   $2,485,055  
    Total shareholders’ equity $267,116   $260,050   $247,200   $239,327   $234,718  
    Net income $10,927   $8,825   $9,020   $8,199   $6,613  
    Diluted earnings per share $1.95   $1.57   $1.62   $1.48   $1.19  
    Return on average assets 1.43 % 1.22 % 1.31 % 1.19 % 0.93 %
    Return on average shareholders’ equity 16.32 % 13.69 % 14.84 % 13.84 % 11.36 %
    NIM 4.41 % 4.29 % 4.24 % 4.16 % 4.06 %
    NIMTE* 4.47 % 4.35 % 4.30 % 4.22 % 4.12 %
    Efficiency ratio 66.96 % 66.11 % 68.78 % 68.93 % 72.21 %
    Total shareholders’ equity/total assets 8.78 % 8.78 % 8.76 % 8.67 % 8.36 %
    Tangible common equity/tangible assets* 7.23 % 8.28 % 8.24 % 8.14 % 7.84 %
    Book value per share $48.41   $47.27   $44.93   $43.52   $42.57  
    Tangible book value per share* $39.17   $44.36   $42.03   $40.61   $39.68  
    Dividends per share $0.62   $0.62   $0.61   $0.61   $0.60  
    Common shares outstanding 5,518,210   5,501,943   5,501,562   5,499,578   5,513,459  
                         

    * References to NIMTE, tangible book value per share, and tangible common equity to tangible common assets, (all of which exclude intangible assets) represent non-GAAP financial measures. Management has presented these non-GAAP measurements in this earnings release, because it believes these measures are useful to investors. Please refer to the end of this release for reconciliations of these non-GAAP financial measures to GAAP financial measures.

    Alaska Economic Update
    (Note: sources for information in this section are listed on page 13.)

    The Alaska Department of Labor (“DOL”) has reported Alaska’s seasonally adjusted unemployment rate in November 2024 was 4.6% compared to the U.S. rate of 4.2%. The total number of payroll jobs in Alaska, not including uniformed military, increased 2.4% or 7,700 jobs between November 2023 and November 2024.

    According to the DOL, Construction had the largest growth in new jobs in Alaska through November compared to the prior year. The Construction sector added 2,100 positions for a year over year growth rate of 12.7% in November 2024. The larger Health Care sector grew by 1,500 jobs for an annual growth rate of 3.7%. The Oil & Gas sector increased by 9.2% or 700 new direct jobs. Transportation, Warehousing and Utilities added 1,000 jobs for a 4.5% growth rate. Professional and Business Services increased 700 jobs year over year through November 2024, up 2.5%.

    The Government sector grew by 1,200 jobs for 1.5% growth, adding 100 Federal jobs, 800 State and 300 Local government positions in Alaska over the same period. Declining sectors between November 2023 and November 2024 were Manufacturing (primarily seafood processing) shrinking 500 jobs (-6.6%), Information, down 100 jobs (-2.2%), and Retail lost 100 jobs (-0.3%).

    Alaska’s Gross State Product (“GSP”) in the third quarter of 2024, exceeded $70 billion for the first time, and is estimated to be $70.1 billion in current dollars, according to the Federal Bureau of Economic Analysis (“BEA”). Alaska’s inflation adjusted “real” GSP increased 6.5% in 2023, placing Alaska fifth best of all 50 states. In the third quarter of 2024 Alaska GSP increased at an annualized rate of 2.2%, compared to the average U.S. growth rate of 3.1%. Alaska’s real GSP improvement in the third quarter of 2024 was primarily caused by growth in the Health Care, Trade, Transportation and Warehousing sectors.

    The BEA also calculated Alaska’s seasonally adjusted personal income at $55.7 billion in the third quarter of 2024. This was an annualized improvement in the third quarter of 3.3% for Alaska, compared to the national average of 3.2%. Alaska enjoyed an annual personal income improvement of 3.8% in 2023. The $445 million increase in personal income in the third quarter in Alaska came from a $310 million increase in net earnings from wages, $145 million growth in government transfer receipts (which grew in all 50 states), and a $10 million decrease in investment income.

    The monthly average price of Alaska North Slope (“ANS”) crude oil was at an annual high of $89.05 in April 2024 and most recently averaged $72.50 in November 2024. The Alaska Department of Revenue (“DOR”) calculated ANS crude oil production was 461 thousand barrels per day (“bpd”) in Alaska’s fiscal year ending June 30, 2024 and is projected to increase to 467 thousand bpd in Alaska’s fiscal year 2025. The DOR expects production to continue to grow rapidly to 657 thousand bpd by fiscal year 2034. This is primarily a result of new production coming on-line in and around the NPR-A region west of Prudhoe Bay. A partnership between Santos and Repsol is constructing the new Pikka field and ConocoPhillips is reportedly developing the large new Willow field. There are also a number of smaller new fields in Alaska’s North Slope that are contributing to the State of Alaska’s production growth estimates.

    According to the Alaska Multiple Listing Services, the average sales price of a single family home in Anchorage rose 6.2% in 2024 to $509,994, following a 5.2% increase in 2023. This was the seventh consecutive year of price increases.

    The average sales price for single family homes in the Matanuska Susitna Borough rose 3.9% in 2024 to $412,907, after increasing 4% in 2023. This continues a trend of average price increases for more than a decade in the region. These two markets represent where the vast majority of the Bank’s residential lending activity occurs.

    The Alaska Multiple Listing Services reported a 3.4% increase in the number of units sold in Anchorage when comparing 2024 to 2023. There was virtually no change in the number of homes sold in the Matanuska Susitna Borough, with only four fewer homes sold in 2024 than in 2023 or 0.2%.

    Northrim Bank sponsors the Alaskanomics blog to provide news, analysis, and commentary on Alaska’s economy. Join the conversation at Alaskanomics.com, or for more information on the Alaska economy, visit: http://www.northrim.com and click on the “Business Banking” link and then click “Learn.” Information from our website is not incorporated into, and does not form, a part of this earnings release.

    Review of Income Statement

    Consolidated Income Statement

    In the fourth quarter of 2024, Northrim generated a ROAA of 1.43% and a ROAE of 16.32%, compared to 1.22% and 13.69%, respectively, in the third quarter of 2024 and 0.93% and 11.36%, respectively, in the fourth quarter a year ago. For the year 2024, Northrim generated a ROAA of 1.29% and a ROAE of 14.70%, compared to 0.94% and 11.17% for 2023.

    Net Interest Income/Net Interest Margin

    Net interest income increased 7% to $30.8 million in the fourth quarter of 2024 compared to $28.8 million in the third quarter of 2024 and increased 15% compared to $26.7 million in the fourth quarter of 2023. Interest expense on deposits increased to $10.6 million in the fourth quarter compared to $10.1 million in the third quarter of 2024 and $8.7 million in the fourth quarter of 2023.

    NIMTE* was 4.47% in the fourth quarter of 2024 compared to 4.35% in the preceding quarter and 4.12% in the fourth quarter a year ago. NIMTE* increased 12 basis points in the fourth quarter of 2024 compared to the prior quarter and 35 basis points compared to the fourth quarter of 2023 primarily due to a favorable change in the mix of earning-assets towards higher loan balances as a percentage of total earning-assets, higher earning-assets, and higher yields on those assets which were only partially offset by an increase in costs on interest-bearing deposits. The weighted average interest rate for new loans booked in the fourth quarter of 2024 was 7.23% compared to 7.24% in the third quarter of 2024 and 7.74% in the fourth quarter a year ago. The yield on the investment portfolio increased to 2.84% from 2.80% in the third quarter of 2024 and increased from 2.48% in the fourth quarter of 2023. “We are beginning to see improvements in our net interest margin as a result of lower deposit costs from the recent Fed interest rate cuts, in addition to the benefit of new loan volume and loan repricing driving our net interest margin to 4.47% for the fourth quarter,” said Jed Ballard, Chief Financial Officer. Northrim’s NIMTE* continues to remain above the peer average of 3.16% posted by the S&P U.S. Small Cap Bank Index with total market capitalization between $250 million and $1 billion as of September 30, 2024.

    Provision for Credit Losses

    Northrim recorded a provision for credit losses of $1.2 million in the fourth quarter of 2024, which includes a $125,000 provision for credit losses on purchased receivables, $107,000 benefit to the provision for credit losses on unfunded commitments, and a provision for credit losses on loans of $1.2 million. This compares to a provision for credit losses of $2.1 million in the third quarter of 2024, and a provision for credit losses of $885,000 in the fourth quarter a year ago. The $1.2 million provision for credit losses in the fourth quarter of 2024 is largely attributable to increases in loan and purchased receivable balances.

    Nonperforming loans, net of government guarantees, increased during the quarter to $7.5 million at December 31, 2024, compared to $5.0 million at both September 30, 2024 and December 31, 2023.

    The allowance for credit losses was 292% of nonperforming loans, net of government guarantees, at the end of the fourth quarter of 2024, compared to 394% three months earlier and 345% a year ago.

    Other Operating Income

    In addition to home mortgage lending, Northrim has interests in other businesses that complement its core community banking activities, including purchased receivables financing and wealth management. Other operating income contributed $13.0 million, or 30% of total fourth quarter 2024 revenues, as compared to $11.6 million, or 29% of revenues in the third quarter of 2024, and $6.5 million, or 20% of revenues in the fourth quarter of 2023. The increase in other operating income in the fourth quarter of 2024 as compared to the preceding quarter and the fourth quarter of 2023 is largely the result of higher purchased receivable income due to the acquisition of Sallyport. Additionally, other operating income in the fourth quarter of 2024 as compared to the fourth quarter a year ago increased due to an increase in mortgage banking income arising from higher volume of mortgage activity and an increase in the value of mortgage servicing rights. The changes in mortgage banking are discussed further in the Home Mortgage Lending section below.

    Other Operating Expenses

    Operating expenses were $29.4 million in the fourth quarter of 2024, compared to $26.7 million in the third quarter of 2024, and $24.0 million in the fourth quarter of 2023. The increase in other operating expenses in the fourth quarter of 2024 compared to the third quarter of 2024 and the fourth quarter a year ago is primarily due to an increase in salaries and other personnel expense, as well as increases in professional fees from one-time deal costs associated with the acquisition of Sallyport and insurance expense due to higher FDIC insurance costs due to the Company’s asset and net income growth.

    Income Tax Provision

    In the fourth quarter of 2024, Northrim recorded $2.4 million in state and federal income tax expense for an effective tax rate of 17.8%, compared to $2.8 million, or 24.2% in the third quarter of 2024 and $1.7 million, or 20.7% in the fourth quarter a year ago. For the year, Northrim recorded $10.0 million in state and federal income tax expense in 2024 for an effective tax rate of 21.3%, compared to $6.2 million, or 19.7% in 2023. The decrease in the tax rate in the fourth quarter of 2024 as compared to the third quarter of 2024 and the fourth quarter a year ago is primarily the result of increased tax benefits related to the Company’s investment in low income housing tax credits and the purchase of renewable energy tax credits.

    Community Banking

    In the most recent deposit market share data from the FDIC, Northrim’s deposit market share in Alaska increased to 15.66% of Alaska’s total deposits as of June 30, 2024 compared to 15.04% of Alaska’s total deposits as of June 30, 2023. This represents 62 basis points of growth in market share percentage for Northrim during that period while, according to the FDIC, the total deposits in Alaska were up 2.3% during the same period. Northrim opened a branch in Kodiak in the first quarter of 2023, a loan production office in Homer in the second quarter of 2023, a permanent branch in Nome in the third quarter of 2023, and a branch in Homer in the first quarter of 2024. See below for further discussion regarding the Company’s deposit movement for the quarter.

    Northrim is committed to meeting the needs of the diverse communities in which it operates. As a testament to that support, the Bank has branches in four regions of Alaska identified by the Federal Reserve as “distressed or underserved non-metropolitan middle-income geographies”.

    Net interest income in the Community Banking segment totaled $27.6 million in the fourth quarter of 2024, compared to $25.9 million in the third quarter of 2024 and $24.2 million in the fourth quarter of 2023. Net interest income increased in the fourth quarter of 2024 as compared to the third quarter of 2024 and the fourth quarter a year ago mostly due to increased interest income on loans that was only partially offset by higher interest expense on deposits.

    The following table provides highlights of the Community Banking segment of Northrim:

       
      Three Months Ended
    (Dollars in thousands, except per share data) December
    31, 2024    		 September 30,
    2024    		 June 30, 2024 March 31,
    2024    		 December
    31, 2023
    Net interest income $27,643   $25,928   $24,318   $24,215   $24,221  
    Provision (benefit) for credit losses 771   1,492   (184 ) 197   885  
    Other operating income 2,535   3,507   2,450   2,468   2,741  
    Other operating expense 19,116   18,723   18,068   17,177   18,158  
    Income before provision for income taxes 10,291   9,220   8,884   9,309   7,919  
    Provision for income taxes 1,474   2,133   1,786   1,966   1,604  
    Net income Community Banking segment $8,817   $7,087   $7,098   $7,343   $6,315  
    Weighted average shares outstanding, diluted 5,597,889   5,583,055   5,558,580   5,554,930   5,578,491  
    Diluted earnings per share $1.58   $1.26   $1.27   $1.32   $1.14  
                         
      Year Ended
    (Dollars in thousands, except per share data) December
    31, 2024    		 December
    31, 2023
    Net interest income $102,104   $95,555  
    Provision for credit losses 2,276   3,842  
    Other operating income 10,960   9,130  
    Other operating expense 73,085   69,253  
    Income before provision for income taxes 37,703   31,590  
    Provision for income taxes 7,359   6,175  
    Net income Community Banking segment $30,344   $25,415  
    Weighted average shares outstanding, diluted 5,583,983   5,661,460  
    Diluted earnings per share $5.43   $4.49  
             

    Home Mortgage Lending

    During the fourth quarter of 2024, mortgage loans funded for sale decreased to $162.5 million, of which 89% was for home purchases, compared to $210.0 million and 94% of loans funded for home purchases in the third quarter of 2024, and increased as compared to $79.7 million, of which 96% was for home purchases in the fourth quarter of 2023.

    During the fourth quarter of 2024, the Bank purchased Residential Mortgage-originated mortgage loans to hold on the Bank’s balance sheet of $23.4 million of which roughly two-thirds were jumbos and one-third were mortgages for second homes, with a weighted average interest rate of 6.30%, down from $38.1 million and 6.59% in the third quarter of 2024, and down from $27.1 million and 7.05% in the fourth quarter of 2023. Mortgage loans funded for investment has increased net interest income in the Home Mortgage Lending segment. Net interest income contributed $3.3 million to total revenue in the fourth quarter of 2024, up from $2.9 million in the prior quarter, and up from $2.3 million in the fourth quarter a year ago.

    The Arizona, Colorado, and the Pacific Northwest mortgage expansion markets were responsible for 19% of Residential Mortgage’s $186 million total production in the fourth quarter of 2024, 20% of the $248 million total production in the third quarter of 2024, and 11% of the $107 million in total production in the fourth quarter of 2023.

    The net change in fair value of mortgage servicing rights increased mortgage banking income by $873,000 during the fourth quarter of 2024 compared to a decrease of $968,000 for the third quarter of 2024 and a decrease of $1.0 million for the fourth quarter of 2023. In the fourth quarter of 2024, the Bank purchased an Alaska Housing Finance Corporation (AHFC) servicing portfolio from another financial institution for $2.3 million. At December 31, 2024, this servicing portfolio was valued at $3.1 million resulting in a $750,000 increase in fair value. Mortgage servicing revenue increased to $2.8 million in the fourth quarter of 2024 from $2.6 million in the prior quarter and increased from $2.2 million in the fourth quarter of 2023 due to an increase in production of AHFC mortgages, which contribute to servicing revenues at origination. In the fourth quarter of 2024, the Company’s mortgage servicing portfolio increased to $294.1 million, which includes the purchase of the AHFC servicing portfolio of $235.6 million, $86.3 million in new mortgage loans, net of amortization and payoffs of $27.8 million as compared to a net increase of $64.8 million in the third quarter of 2024 and $62.4 million in the fourth quarter of 2023.

    As of December 31, 2024, Northrim serviced 6,378 loans in its $1.46 billion home mortgage servicing portfolio, a 25% increase compared to the $1.17 billion serviced as of the end of the third quarter of 2024, and a 40% increase from the $1.04 billion serviced a year ago.

    The following table provides highlights of the Home Mortgage Lending segment of Northrim:

       
      Three Months Ended
    (Dollars in thousands, except per share data) December
    31, 2024    		 September 30,
    2024    		 June 30, 2024 March 31,
    2024    		 December
    31, 2023
    Mortgage loan commitments $32,299   $77,591   $88,006   $56,208   $22,926  
               
    Mortgage loans funded for sale $162,530   $209,960   $152,339   $84,324   $79,742  
    Mortgage loans funded for investment 23,380   38,087   29,175   17,403   27,114  
    Total mortgage loans funded $185,910   $248,047   $181,514   $101,727   $106,856  
    Mortgage loan refinances to total fundings 11 % 6 % 6 % 4 % 4 %
    Mortgage loans serviced for others $1,460,720   $1,166,585   $1,101,800   $1,060,007   $1,044,516  
               
    Net realized gains on mortgage loans sold $3,747   $5,079   $3,188   $1,980   $1,462  
    Change in fair value of mortgage loan commitments, net (665 ) 60   391   386   (296 )
    Total production revenue 3,082   5,139   3,579   2,366   1,166  
    Mortgage servicing revenue 2,847   2,583   2,164   1,561   2,180  
    Change in fair value of mortgage servicing rights:          
    Due to changes in model inputs of assumptions1 1,372   (566 ) 239   289   (707 )
    Other2 (499 ) (402 ) (320 ) (314 ) (301 )
    Total mortgage servicing revenue, net 3,720   1,615   2,083   1,536   1,172  
    Other mortgage banking revenue 238   293   222   129   99  
    Total mortgage banking income $7,040   $7,047   $5,884   $4,031   $2,437  
               
    Net interest income $3,280   $2,941   $2,775   $2,232   $2,276  
    Provision (benefit) for credit losses 305   571   64   (48 ) —  
    Mortgage banking income 7,040   7,047   5,884   4,031   2,437  
    Other operating expense 7,198   7,643   6,697   6,086   5,477  
    Income before provision for income taxes 2,817   1,774   1,898   225   (764 )
    Provision for income taxes 842   497   532   63   (215 )
    Net (loss) income Home Mortgage Lending segment $1,975   $1,277   $1,366   $162   ($549 )
               
    Weighted average shares outstanding, diluted 5,597,889   5,583,055   5,558,580   5,554,930   5,769,415  
    Diluted (loss) earnings per share $0.35   $0.23   $0.25   $0.03   ($0.10 )
    1Principally reflects changes in discount rates and prepayment speed assumptions, which are primarily affected by changes in interest rates.
    2Represents changes due to collection/realization of expected cash flows over time.
                         
       
      Year Ended
    (Dollars in thousands, except per share data) December
    31, 2024    		 December
    31, 2023
    Mortgage loans funded for sale $609,153   $376,154  
    Mortgage loans funded for investment 108,045   146,258  
    Total mortgage loans funded $717,198   $522,412  
    Mortgage loan refinances to total fundings 7 % 4 %
         
    Net realized gains on mortgage loans sold $13,994   $7,828  
    Change in fair value of mortgage loan commitments, net 172   (102 )
    Total production revenue 14,166   7,726  
    Mortgage servicing revenue 9,155   7,368  
    Change in fair value of mortgage servicing rights:    
    Due to changes in model inputs of assumptions1 1,334   (922 )
    Other2 (1,535 ) (1,765 )
    Total mortgage servicing revenue, net 8,954   4,681  
    Other mortgage banking revenue 882   356  
    Total mortgage banking income $24,002   $12,763  
         
    Net interest income $11,228   $7,298  
    Provision for credit losses 892   —  
    Mortgage banking income 24,002   12,763  
    Other operating expense 27,624   23,497  
    Income before provision for income taxes 6,714   (3,436 )
    Provision for income taxes 1,934   (943 )
    Net (loss) income Home Mortgage Lending segment $4,780   ($2,493 )
         
    Weighted average shares outstanding, diluted 5,583,983   5,661,460  
    Diluted (loss) earnings per share $0.86   ($0.44 )
    1Principally reflects changes in discount rates and prepayment speed assumptions, which are primarily affected by changes in interest rates. 
    2Represents changes due to collection/realization of expected cash flows over time.
     

    Specialty Finance

    On October 31, 2024, the Company completed the acquisition of Sallyport Commercial Finance, LLC in an all cash transaction valued at approximately $53.9 million. Sallyport Commercial Finance, LLC is a leading provider of factoring, asset based lending and alternative working capital solutions to small and medium sized enterprises in the United States, Canada, and the United Kingdom. The Company determined that a new Specialty Finance segment was appropriate for the Company upon the completion of the acquisition. The Specialty Finance segment also includes Northrim Funding Services, a division of Northrim Bank that has offered factoring solutions to small businesses since 2004. The composition of revenues for the Specialty Finance segment are primarily purchased receivable income, but also include interest income and other fee income.

    The acquisition of Sallyport included $1.13 million in one-time deal related costs which are reflected in other operating expenses for the fourth quarter and full year of 2024 in the tables below. Total pre-tax income for Sallyport for two months of operations, excluding transaction costs was $945,000.

    The following table provides highlights of the Specialty Finance segment of Northrim:

       
      Three Months Ended
    (Dollars in thousands, except per share data) December
    31, 2024    		 September 30,
    2024    		 June 30, 2024 March 31,
    2024    		 December
    31, 2023
    Purchased receivable income $3,526   $1,033   $1,243   $1,345   $1,307  
    Other operating income (68 ) —   —   —   —  
    Interest income 407   158   170   212   235  
    Total revenue 3,865   1,191   1,413   1,557   1,542  
    Provision for credit losses 125   —   —   —   —  
    Other operating expense 3,063   362   429   374   358  
    Interest expense 489   185   210   212   —  
    Total expense 3,677   547   639   586   358  
    Income before provision for income taxes 188   644   774   971   1,184  
    Provision for income taxes 53   183   218   276   337  
    Net income Specialty Finance segment $135   $461   $556   $695   $847  
    Weighted average shares outstanding, diluted 5,597,889   5,583,055   5,558,580   5,554,930   5,578,491  
    Diluted earnings per share $0.02   $0.08   $0.10   $0.13   $0.15  
                         
      Year Ended
    (Dollars in thousands, except per share data) December
    31, 2024    		 December
    31, 2023
    Purchased receivable income $7,147   $4,482  
    Other operating income (68 ) —  
    Interest income 947   403  
    Total revenue 8,026   4,885  
    Provision for credit losses 125   —  
    Other operating expense 4,228   1,431  
    Interest expense 1,096   —  
    Total expense 5,449   1,431  
    Income before provision for income taxes 2,577   3,454  
    Provision for income taxes 730   982  
    Net income Specialty Finance segment $1,847   $2,472  
    Weighted average shares outstanding, diluted 5,583,983   5,661,460  
    Diluted earnings per share $0.33   $0.44  
             

    Balance Sheet Review

    Northrim’s total assets were $3.04 billion at December 31, 2024, up 3% from the preceding quarter and up 8% from a year ago. Northrim’s loan-to-deposit ratio was 79% at December 31, 2024, up from 76% at September 30, 2024, and 72% at December 31, 2023.

    At December 31, 2024, our liquid assets and investments and loans maturing within one year were $1.01 billion and our funds available for borrowing under our existing lines of credit were $566.8 million. Given these sources of liquidity and our expectations for customer demands for cash and for our operating cash needs, we believe our sources of liquidity to be sufficient for the foreseeable future.

    Average interest-earning assets were $2.79 billion in the fourth quarter of 2024, up 4% from $2.67 billion in the third quarter of 2024 and up 7% from $2.61 billion in the fourth quarter a year ago. The average yield on interest-earning assets was 6.02% in the fourth quarter of 2024, up from 5.92% in the preceding quarter and 5.51% in the fourth quarter a year ago.

    Average investment securities decreased to $565.8 million in the fourth quarter of 2024, compared to $619.0 million in the third quarter of 2024 and $690.7 million in the fourth quarter a year ago. The average net tax equivalent yield on the securities portfolio was 2.84% for the fourth quarter of 2024, up from 2.80% in the preceding quarter and up from 2.48% in the year ago quarter. The average estimated duration of the investment portfolio at December 31, 2024, was approximately 2.4 years down from approximately 2.8 years a year ago. As of December 31, 2024, $79.0 million of available for sale securities are scheduled to mature in the next six months, $55.8 million are scheduled to mature in six months to one year, and $189.3 million are scheduled to mature in the following year, representing a total of $324.0 million or 12% of earning assets that are scheduled to mature in the next 24 months.

    Total unrealized losses, net of tax, on available for sale securities increased by $678,000 in the fourth quarter of 2024 as compared to the prior quarter, and decreased by $9.1 million compared to the fourth quarter of 2023, resulting in a total unrealized loss of $8.3 million at December 31, 2024 compared to $7.6 million at September 30, 2024 and $17.4 million a year ago. The average maturity of the available for sale securities with the majority of the unrealized loss is 1.5 years at the end of 2024. Total unrealized losses on held to maturity securities were $1.0 million at December 31, 2024, compared to $2.1 million at September 30, 2024, and $3.3 million a year ago.

    Average interest bearing deposits in other banks increased to $72.2 million in the fourth quarter from $28.4 million in the third quarter of 2024 due to higher deposit balances and maturing portfolio investments. Average interest bearing deposits in other banks decreased in the fourth quarter of this year compared to $126.2 million in the fourth quarter of 2023 as cash was used to fund the growing loan portfolio.

    Portfolio loans were $2.13 billion at December 31, 2024, up 6% from the preceding quarter and up 19% from a year ago. Portfolio loans, excluding consumer mortgage loans, were $1.86 million at December 31, 2024, up 6% or $99.9 million from $1.76 billion in the preceding quarter and up 14% from a year ago. This increase was diversified throughout the loan portfolio including commercial real estate nonowner-occupied and multi-family loans increasing by $35.1 million, construction loans increasing by $28.7 million, commercial loans increasing $24.9 million, and commercial real estate owner-occupied loans increasing $7.2 million from the preceding quarter. Average portfolio loans in the fourth quarter of 2024 were $2.07 billion, which was up 7% from the preceding quarter and up 18% from a year ago. Yields on average portfolio loans in the fourth quarter of 2024 increased slightly to 6.93% from 6.91% in the third quarter of 2024 and increased from 6.55% in the fourth quarter of 2023. The increase in the yield on portfolio loans in the fourth quarter of 2024 compared to the third quarter of 2024 and the fourth quarter a year ago is primarily due to loan repricing due to the increases in interest rates and new loans booked at higher rates due to changes in the interest rate environment. The yield on new portfolio loans, excluding consumer mortgage loans, was 7.40% in the fourth quarter of 2024 as compared to 7.43% in the third quarter of 2024 and 8.07% in the fourth quarter of 2023.

    Alaskans continue to account for substantially all of Northrim’s deposit base. Total deposits were $2.68 billion at December 31, 2024, up 2% from $2.63 billion at September 30, 2024, and up 8% from $2.49 billion a year ago. “Our bankers are working hard to continue to bring over new relationships to the Bank, which is helping to magnify normal increases in deposit balances from our customers’ business cycles,” said Ballard. At December 31, 2024, 73% of total deposits were held in business accounts and 27% of deposit balances were held in consumer accounts. Northrim had approximately 34,000 deposit customers with an average balance of $61,000 as of December 31, 2024. Northrim had 26 customers with balances over $10 million as of December 31, 2024, which accounted for $612.9 million, or 24%, of total deposits. Demand deposits decreased by 8% from the prior quarter and decreased 6% year-over-year to $706.2 million at December 31, 2024. Demand deposits decreased to 27% of total deposits at December 31, 2024 compared to 29% at September 30, 2024 and 31% of total deposits at December 31, 2023. Average interest-bearing deposits were up 9% to $1.95 billion with an average cost of 2.15% in the fourth quarter of 2024, compared to $1.80 billion and an average cost of 2.24% in the third quarter of 2024, and up 13% compared to $1.72 billion and an average cost of 2.00% in the fourth quarter of 2023. Uninsured deposits totaled $1.08 billion or 40% of total deposits as of December 31, 2024 compared to $1.1 billion or 46% of total deposits as of December 31, 2022. As interest rates continued to increase in 2022, Northrim has taken a proactive, targeted approach to increase deposit rates.

    Shareholders’ equity was $267.1 million, or $48.41 book value per share, at December 31, 2024, compared to $260.1 million, or $47.27 book value per share, at September 30, 2024 and $234.7 million, or $42.57 book value per share, a year ago. Tangible book value per share* was $39.17 at December 31, 2024, compared to $44.36 at September 30, 2024, and $39.68 per share a year ago. The increase in shareholders’ equity in the fourth quarter of 2024 as compared to the third quarter of 2024 was largely the result of earnings of $10.9 million which was partially offset by dividends paid of $3.4 million and a decrease in the fair value of the available for sale securities portfolio, which decreased $678,000, net of tax. The Company did not purchase any shares of common stock in the fourth quarter of 2024 and had 110,000 shares remaining under the current share repurchase program as of December 31, 2024. Tangible common equity to tangible assets* was 7.23% as of December 31, 2024, compared to 8.28% as of September 30, 2024 and 7.84% as of December 31, 2023. The decrease in tangible common equity to tangible assets* was primarily due to $35.0 million of Goodwill booked as part of the acquisition of Sallyport. Northrim continues to maintain capital levels in excess of the requirements to be categorized as “well-capitalized” with Tier 1 Capital to Risk Adjusted Assets of 9.76% at December 31, 2024, compared to 11.53% at September 30, 2024, and 11.43% at December 31, 2023.

    Asset Quality

    Northrim believes it has a consistent lending approach throughout the economic cycles, which emphasizes appropriate loan-to-value ratios, adequate debt coverage ratios, and competent management.

    Nonperforming assets (“NPAs”) net of government guarantees were $11.6 million at December 31, 2024, up from $5.3 million at September 30, 2024 and from $5.8 million a year ago. Of the NPAs at December 31, 2024, $3.0 million, or 26% are nonaccrual loans related to three commercial relationships, $2.8 million, or 24% is related to a Sallyport nonaccrual loan, and $3.3 million, or 28% is related to one purchased receivable relationship.

    Net adversely classified loans were $9.6 million at December 31, 2024, as compared to $6.5 million at September 30, 2024, and $7.1 million a year ago. Adversely classified loans are loans that Northrim has classified as substandard, doubtful, and loss, net of government guarantees. Net loan recoveries were $51,000 in the fourth quarter of 2024, compared to net loan recoveries of $96,000 in the third quarter of 2024, and net loan charge-offs of $96,000 in the fourth quarter of 2023.

    Northrim had $138.0 million, or 6% of total portfolio loans, in the Healthcare sector; $117.0 million, or 5% of portfolio loans, in the Tourism sector; $104.3 million, or 5% in the Accommodations sector; $87.4 million, or 4% in Retail loans; $84.6 million, or 4% of portfolio loans, in the Aviation (non-tourism) sector; $76.5 million, or 4% in the Fishing sector; and $55.1 million, or 3% in the Restaurants and Breweries sector as of December 31, 2024.

    Northrim estimates that $99.7 million, or approximately 5% of portfolio loans, had direct exposure to the oil and gas industry in Alaska, as of December 31, 2024, and $1.6 million of these loans are adversely classified. As of December 31, 2024, Northrim has an additional $45.8 million in unfunded commitments to companies with direct exposure to the oil and gas industry in Alaska, and none of these unfunded commitments are considered to be adversely classified loans. Northrim defines direct exposure to the oil and gas sector as loans to borrowers that provide oilfield services and other companies that have been identified as significantly reliant upon activity in Alaska related to the oil and gas industry, such as lodging, equipment rental, transportation and other logistics services specific to this industry.

    About Northrim BanCorp

    Northrim BanCorp, Inc. is the parent company of Northrim Bank, an Alaska-based community bank with 20 branches throughout the state and differentiates itself with its detailed knowledge of Alaska’s economy and its “Customer First Service” philosophy. The Bank has two wholly-owned subsidiaries, Sallyport Commercial Finance, LLC, a specialty finance company and Residential Mortgage Holding Company, LLC, a regional home mortgage company. Pacific Wealth Advisors, LLC is an affiliated company.

    http://www.northrim.com

    Forward-Looking Statement
    This release may contain “forward-looking statements” as that term is defined for purposes of Section 21E of the Securities Exchange Act of 1934, as amended. These statements are, in effect, management’s attempt to predict future events, and thus are subject to various risks and uncertainties. Readers should not place undue reliance on forward-looking statements, which reflect management’s views only as of the date hereof. All statements, other than statements of historical fact, regarding our financial position, business strategy, management’s plans and objectives for future operations are forward-looking statements. When used in this report, the words “anticipate,” “believe,” “estimate,” “expect,” and “intend” and words or phrases of similar meaning, as they relate to Northrim and its management are intended to help identify forward-looking statements. Although we believe that management’s expectations as reflected in forward-looking statements are reasonable, we cannot assure readers that those expectations will prove to be correct. Forward-looking statements, are subject to various risks and uncertainties that may cause our actual results to differ materially and adversely from our expectations as indicated in the forward-looking statements. These risks and uncertainties include: descriptions of Northrim’s and Sallyport’s financial condition, results of operations, asset based lending volumes, asset and credit quality trends and profitability and statements about the expected financial benefits and other effects of the acquisition of Sallyport by Northrim Bank; expected cost savings, synergies and other financial benefits from the acquisition of Sallyport by Northrim Bank might not be realized within the expected time frames and costs or difficulties relating to integration matters might be greater than expected; the ability of Northrim and Sallyport to execute their respective business plans; potential further increases in interest rates; the value of securities held in our investment portfolio; the impact of the results of government initiatives on the regulatory landscape, natural resource extraction industries, and capital markets; the impact of declines in the value of commercial and residential real estate markets, high unemployment rates, inflationary pressures and slowdowns in economic growth; changes in banking regulation or actions by bank regulators; inflation, supply-chain constraints, and potential geopolitical instability, including the wars in Ukraine and the Middle East; financial stress on borrowers (consumers and businesses) as a result of higher rates or an uncertain economic environment; the general condition of, and changes in, the Alaska economy; our ability to maintain or expand our market share or net interest margin; the sufficiency of our provision for credit losses and the accuracy of the assumptions or estimates used in preparing our financial statements, including those related to current expected credit losses accounting guidance; our ability to maintain asset quality; our ability to implement our marketing and growth strategies; our ability to identify and address cyber-security risks, including security breaches, “denial of service attacks,” “hacking,” and identity theft; disease outbreaks; and our ability to execute our business plan. Further, actual results may be affected by competition on price and other factors with other financial institutions; customer acceptance of new products and services; the regulatory environment in which we operate; and general trends in the local, regional and national banking industry and economy. In addition, there are risks inherent in the banking industry relating to collectability of loans and changes in interest rates. Many of these risks, as well as other risks that may have a material adverse impact on our operations and business, are identified in the “Risk Factors” section of our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, and from time to time are disclosed in our other filings with the Securities and Exchange Commission. However, you should be aware that these factors are not an exhaustive list, and you should not assume these are the only factors that may cause our actual results to differ from our expectations. These forward-looking statements are made only as of the date of this release, and Northrim does not undertake any obligation to release revisions to these forward-looking statements to reflect events or conditions after the date of this release.

    References:

    https://www.bea.gov/

    http://almis.labor.state.ak.us/

    http://www.tax.alaska.gov/programs/oil/prevailing/ans.aspx

    http://www.tax.state.ak.us/

    http://www.mba.org

    https://www.alaskarealestate.com/MLSMember/RealEstateStatistics.aspx

    https://www.capitaliq.spglobal.com/web/client?auth=inherit&overridecdc=1&#markets/indexFinancials

                 
    Income Statement            
    (Dollars in thousands, except per share data) Three Months Ended   Year-to-date
    (Unaudited) December 31, September 30, December 31,   December 31, December 31,
      2024 2024 2023   2024 2023
    Interest Income:            
    Interest and fees on loans $37,059   $34,863   $29,508     $134,739   $108,612  
    Interest on investments 3,844   4,164   4,677     16,838   18,695  
    Interest on deposits in banks 883   389   1,743     2,342   4,644  
    Total interest income 41,786   39,416   35,928     153,919   131,951  
    Interest Expense:            
    Interest expense on deposits 10,568   10,123   8,676     39,347   26,511  
    Interest expense on borrowings 377   451   520     1,389   2,184  
    Total interest expense 10,945   10,574   9,196     40,736   28,695  
    Net interest income 30,841   28,842   26,732     113,183   103,256  
                 
    Provision for credit losses 1,201   2,063   885     3,293   3,842  
    Net interest income after provision for            
    loan losses 29,640   26,779   25,847     109,890   99,414  
                 
    Other Operating Income:            
    Mortgage banking income 7,040   7,047   2,437     24,002   12,763  
    Purchased receivable income 3,526   1,033   1,307     7,146   4,482  
    Bankcard fees 1,148   1,196   946     4,366   3,862  
    Service charges on deposit accounts 622   605   532     2,348   2,044  
    Gain on sale of securities 112   —   —     112   —  
    Unrealized gain (loss) on marketable equity securities (364 ) 576   565     465   120  
    Other income 949   1,130   698     3,602   3,104  
    Total other operating income 13,033   11,587   6,485     42,041   26,375  
                 
    Other Operating Expense:            
    Salaries and other personnel expense 18,254   17,549   15,417     67,847   61,741  
    Data processing expense 3,108   2,618   2,500     10,986   9,821  
    Occupancy expense 1,893   1,911   1,783     7,609   7,394  
    Professional and outside services 1,967   903   802     4,351   3,128  
    Marketing expense 965   860   933     3,028   2,929  
    Insurance expense 894   596   675     2,961   2,519  
    OREO expense, net rental income and gains on sale 2   2   (28 )   (385 ) (794 )
    Intangible asset amortization expense —   —   6     —   17  
    Other operating expense 2,294   2,289   1,905     8,540   7,426  
    Total other operating expense 29,377   26,728   23,993     104,937   94,181  
                 
    Income before provision for income taxes 13,296   11,638   8,339     46,994   31,608  
    Provision for income taxes 2,369   2,813   1,726     10,023   6,214  
    Net income $10,927   $8,825   $6,613     $36,971   $25,394  
                 
    Basic EPS $1.99   $1.60   $1.19     $6.72   $4.53  
    Diluted EPS $1.95   $1.57   $1.19     $6.62   $4.49  
    Weighted average common shares outstanding, basic 5,509,078   5,501,943   5,513,041     5,502,797   5,601,471  
    Weighted average shares outstanding, diluted 5,597,889   5,583,055   5,578,491     5,583,983   5,661,460  
                           
    Balance Sheet      
    (Dollars in thousands)      
    (Unaudited) December 31, September 30, December 31,
      2024 2024 2023
           
    Assets:      
    Cash and due from banks $42,101   $42,805   $27,457  
    Interest bearing deposits in other banks 20,635   60,071   91,073  
    Investment securities available for sale, at fair value 478,617   545,210   637,936  
    Investment securities held to maturity 36,750   36,750   36,750  
    Marketable equity securities, at fair value 8,719   12,957   13,153  
    Investment in Federal Home Loan Bank stock 5,331   4,318   2,980  
    Loans held for sale 59,957   97,937   31,974  
    Portfolio loans 2,129,263   2,007,565   1,789,497  
    Allowance for credit losses, loans (22,020 ) (19,528 ) (17,270 )
    Net portfolio loans 2,107,243   1,988,037   1,772,227  
    Purchased receivables, net 74,078   23,564   36,842  
    Mortgage servicing rights, at fair value 26,439   21,570   19,564  
    Premises and equipment, net 37,757   39,625   40,693  
    Operating lease right-of-use assets 7,455   7,616   9,092  
    Goodwill and intangible assets 50,968   15,967   15,967  
    Other assets 85,819   66,965   71,789  
    Total assets $3,041,869   $2,963,392   $2,807,497  
           
    Liabilities:      
    Demand deposits $706,225   $763,595   $749,683  
    Interest-bearing demand 1,108,404   979,238   927,291  
    Savings deposits 250,900   245,043   255,338  
    Money market deposits 196,290   201,821   221,492  
    Time deposits 418,370   435,870   331,251  
    Total deposits 2,680,189   2,625,567   2,485,055  
    Other borrowings 23,045   13,354   13,675  
    Junior subordinated debentures 10,310   10,310   10,310  
    Operating lease liabilities 7,487   7,635   9,092  
    Other liabilities 53,722   46,476   54,647  
    Total liabilities 2,774,753   2,703,342   2,572,779  
           
    Shareholders’ Equity:      
    Total shareholders’ equity 267,116   260,050   234,718  
    Total liabilities and shareholders’ equity $3,041,869   $2,963,392   $2,807,497  
           

    Additional Financial Information
    (Dollars in thousands)
    (Unaudited)

    Composition of Portfolio Loans                        
      December 31,
    2024    		   September 30,
    2024    		   June 30, 2024   March 31, 2024   December 31,
    2023
      Balance % of
    total    		   Balance % of
    total    		   Balance % of
    total    		   Balance % of
    total    		   Balance % of
    total
    Commercial loans $518,148   24 %   $492,414   24 %   $495,781   26 %   $475,220   26 %   $486,057   27 %
    Commercial real estate:                            
    Owner occupied properties 420,060   20 %   412,827   20 %   383,832   20 %   372,507   20 %   368,357   20 %
    Nonowner occupied and multifamily properties 619,431   29 %   584,302   31 %   551,130   30 %   529,904   30 %   519,115   30 %
    Residential real estate:                            
    1-4 family properties secured by first liens 270,535   13 %   248,514   12 %   222,026   12 %   218,552   12 %   203,534   11 %
    1-4 family properties secured by junior liens & revolving secured by first liens 48,857   2 %   45,262   2 %   41,258   2 %   35,460   2 %   33,783   2 %
    1-4 family construction 39,789   2 %   39,794   2 %   29,510   2 %   27,751   2 %   31,239   2 %
    Construction loans 214,068   10 %   185,362   9 %   154,009   8 %   153,537   8 %   149,788   8 %
    Consumer loans 7,562   — %   7,836   — %   6,679   — %   6,444   — %   6,180   — %
    Subtotal 2,138,450       2,016,311       1,884,225       1,819,375       1,798,053    
    Unearned loan fees, net (9,187 )     (8,746 )     (8,318 )     (8,240 )     (8,556 )  
    Total portfolio loans $2,129,263       $2,007,565       $1,875,907       $1,811,135       $1,789,497    
                                 
    Composition of Deposits                        
      December 31, 2024   September 30, 2024   June 30, 2024   March 31, 2024   December 31, 2023
      Balance % of
    total    		   Balance % of
    total    		   Balance % of
    total    		   Balance % of
    total    		   Balance % of
    total
    Demand deposits $706,225   27 %   $763,595   29 %   $704,471   29 %   $714,244   29 %   $749,683   31 %
    Interest-bearing demand 1,108,404   41 %   979,238   37 %   906,010   36 %   889,581   37 %   927,291   37 %
    Savings deposits 250,900   9 %   245,043   9 %   238,156   10 %   246,902   10 %   255,338   10 %
    Money market deposits 196,290   7 %   204,821   8 %   195,159   8 %   209,785   9 %   221,492   9 %
    Time deposits 418,370   16 %   435,870   17 %   420,010   17 %   373,571   15 %   331,251   13 %
    Total deposits $2,680,189       $2,628,567       $2,463,806       $2,434,083       $2,485,055    
                                           

    Additional Financial Information
    (Dollars in thousands)
    (Unaudited)

    Asset Quality
    		 December 31, September 30, December 31,
        2024 2024 2023
      Nonaccrual loans $7,516   $4,944   $6,069  
      Loans 90 days past due and accruing 17   17   —  
      Total nonperforming loans 7,533   4,961   6,069  
      Nonperforming loans guaranteed by government —   —   (1,067 )
      Net nonperforming loans 7,533   4,961   5,002  
      Repossessed assets 297   297   —  
      Nonperforming purchased receivables 3,768   —   808  
      Net nonperforming assets $11,598   $5,258   $5,810  
      Nonperforming loans, net of government guarantees / portfolio loans 0.35 % 0.25 % 0.28 %
      Nonperforming loans, net of government guarantees / portfolio loans, net of government guarantees 0.38 % 0.26 % 0.30 %
      Nonperforming assets, net of government guarantees / total assets 0.38 % 0.18 % 0.21 %
      Nonperforming assets, net of government guarantees / total assets net of government guarantees 0.40 % 0.19 % 0.21 %
                   
      Adversely classified loans, net of government guarantees $9,636   $6,503   $7,057  
      Special mention loans, net of government guarantees $19,769   $9,641   $6,580  
      Loans 30-89 days past due and accruing, net of government guarantees / portfolio loans 0.03 % 0.08 % 0.03 %
      Loans 30-89 days past due and accruing, net of government guarantees / portfolio loans, net of government guarantees 0.03 % 0.09 % 0.03 %
                   
      Allowance for credit losses – loans / portfolio loans 1.03 % 0.97 % 0.97 %
      Allowance for credit losses – loans / portfolio loans, net of government guarantees 1.10 % 1.04 % 1.02 %
      Allowance for credit losses – loans / nonperforming loans, net of government guarantees 292 % 394 % 345 %
                   
      Allowance for credit losses – purchased receivables / purchased receivables 4.69 % — % — %
      Allowance for credit losses – purchased receivables / nonperforming purchased receivables 97 % — % — %
                   
      Gross loan charge-offs for the quarter $149   $15   $281  
      Gross loan recoveries for the quarter ($200 ) ($111 ) ($185 )
      Net loan (recoveries) charge-offs for the quarter ($51 ) ($96 ) $96  
      Net loan (recoveries) charge-offs year-to-date ($215 ) ($164 ) ($38 )
      Net loan (recoveries) charge-offs for the quarter / average loans, for the quarter 0.00 % 0.00 % 0.01 %
      Net loan (recoveries) charge-offs year-to-date / average loans, year-to-date annualized (0.01 )% (0.01 )% 0.00 %
                   

    Additional Financial Information
    (Dollars in thousands)
    (Unaudited)

    Average Balances, Yields, and Rates                            
      Three Months Ended
      December 31, 2024   September 30, 2024   December 31, 2023
        Average     Average     Average
      Average Tax
    Equivalent    		   Average Tax
    Equivalent    		   Average Tax
    Equivalent
      Balance Yield/Rate   Balance Yield/Rate   Balance Yield/Rate
    Assets              
    Interest bearing deposits in other banks $72,212   4.72 %   $28,409   5.28 %   $126,174   5.40 %
    Portfolio investments 565,785   2.84 %   619,012   2.80 %   690,659   2.48 %
    Loans held for sale 83,304   5.97 %   93,689   6.20 %   45,732   6.55 %
    Portfolio loans 2,066,216   6.93 %   1,933,181   6.91 %   1,749,732   6.55 %
    Total interest-earning assets 2,787,517   6.02 %   2,674,291   5.92 %   2,612,297   5.51 %
    Nonearning assets 251,364       196,266       214,934    
    Total assets $3,038,881       $2,870,557       $2,827,231    
                   
    Liabilities and Shareholders’ Equity              
    Interest-bearing deposits $1,954,495   2.15 %   $1,796,107   2.24 %   $1,724,409   2.00 %
    Borrowings 29,251   3.95 %   43,555   4.07 %   47,964   4.25 %
    Total interest-bearing liabilities 1,983,746   2.18 %   1,839,662   2.29 %   1,772,373   2.06 %
                   
    Noninterest-bearing demand deposits 738,911       722,000       760,566    
    Other liabilities 49,815       52,387       63,321    
    Shareholders’ equity 266,409       256,508       230,971    
    Total liabilities and shareholders’ equity $3,038,881       $2,870,557       $2,827,231    
    Net spread   3.84 %   3.63 %     3.45 %
    NIM   4.41 %   4.29 %     4.06 %
    NIMTE*   4.47 %   4.35 %     4.12 %
    Cost of funds   1.59 %   1.64 %     1.44 %
    Average portfolio loans to average interest-earning assets 74.12 %     72.29 %     66.98 %  
    Average portfolio loans to average total deposits 76.71 %     76.77 %     70.41 %  
    Average non-interest deposits to average total deposits 27.43 %     28.67 %     30.61 %  
    Average interest-earning assets to average interest-bearing liabilities 140.52 %     145.37 %     147.39 %  
                           

    Additional Financial Information
    (Dollars in thousands)
    (Unaudited)

    Average Balances, Yields, and Rates          
      Year-to-date
      December 31, 2024   December 31, 2023
        Average     Average
      Average Tax Equivalent   Average Tax Equivalent
      Balance Yield/Rate   Balance Yield/Rate
    Assets          
    Interest bearing deposits in other banks $44,913   5.09 %   $91,161   5.02 %
    Portfolio investments 623,756   2.82 %   715,367   2.43 %
    Loans held for sale 68,790   6.08 %   41,769   6.19 %
    Portfolio loans 1,910,156   6.87 %   1,643,943   6.49 %
    Total interest-earning assets 2,647,615   5.86 %   2,492,240   5.36 %
    Nonearning assets 213,397       198,107    
    Total assets $2,861,012       $2,690,347    
               
    Liabilities and Shareholders’ Equity          
    Interest-bearing deposits $1,802,286   2.18 %   $1,614,386   1.64 %
    Borrowings 33,799   3.81 %   51,038   4.24 %
    Total interest-bearing liabilities 1,836,085   2.21 %   1,665,424   1.72 %
               
    Noninterest-bearing demand deposits 718,163       749,859    
    Other liabilities 55,265       47,820    
    Shareholders’ equity 251,499       227,244    
    Total liabilities and shareholders’ equity $2,861,012       $2,690,347    
    Net spread   3.65 %     3.64 %
    NIM   4.28 %     4.14 %
    NIMTE*   4.33 %     4.21 %
    Cost of funds   1.59 %     1.19 %
    Average portfolio loans to average interest-earning assets 72.15 %     65.96 %  
    Average portfolio loans to average total deposits 75.79 %     69.53 %  
    Average non-interest deposits to average total deposits 28.49 %     31.72 %  
    Average interest-earning assets to average interest-bearing liabilities 144.20 %     149.65 %  
                   

    Additional Financial Information
    (Dollars in thousands, except per share data)
    (Unaudited)

    Capital Data (At quarter end)          
      December 31,
    2024    		   September 30, 2024   December 31,
    2023
    Book value per share $48.41     $47.27     $42.57  
    Tangible book value per share* $39.17     $44.36     $39.68  
    Total shareholders’ equity/Total assets 8.78 %   8.78 %   8.36 %
    Tangible common equity/Tangible assets* 7.23 %   8.28 %   7.84 %
    Tier 1 capital / Risk adjusted assets 9.76 %   11.53 %   11.43 %
    Total capital / Risk adjusted assets 10.94 %   12.50 %   12.35 %
    Tier 1 capital / Average assets 7.68 %   9.08 %   8.72 %
    Common shares outstanding 5,518,210     5,501,943     5,513,459  
    Unrealized gain on AFS debt securities, net of income taxes ($8,295 )   ($7,617 )   ($17,415 )
    Unrealized (loss) on derivatives and hedging activities, net of income taxes $1,272     $863     $978  
                     
    Profitability Ratios                            
      December 31,
    2024    		   September
    30, 2024    		   June 30, 2024   March 31,
    2024    		   December 31,
    2023
    For the quarter:                            
    NIM 4.41 %   4.29 %   4.24 %   4.16 %   4.06 %
    NIMTE* 4.47 %   4.35 %   4.30 %   4.22 %   4.12 %
    Efficiency ratio 66.96 %   66.11 %   68.78 %   68.93 %   72.21 %
    Return on average assets 1.43 %   1.22 %   1.31 %   1.19 %   0.93 %
    Return on average equity 16.32 %   13.69 %   14.84 %   13.84 %   11.36 %
                                 
      December 31,
    2024    		   December 31,
    2023
    Year-to-date:          
    NIM 4.28 %   4.14 %
    NIMTE* 4.33 %   4.21 %
    Efficiency ratio 67.60 %   72.64 %
    Return on average assets 1.29 %   0.94 %
    Return on average equity 14.70 %   11.17 %
               

    *Non-GAAP Financial Measures
    (Dollars and shares in thousands, except per share data)
    (Unaudited)

    Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. Although we believe these non-GAAP financial measures are frequently used by stakeholders in the evaluation of the Company, they have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of results as reported under GAAP.

    Net interest margin on a tax equivalent basis

    Net interest margin on a tax equivalent basis (“NIMTE”) is a non-GAAP performance measurement in which interest income on non-taxable investments and loans is presented on a tax equivalent basis using a combined federal and state statutory rate of 28.43% in both 2023 and 2022. The most comparable GAAP measure is net interest margin and the following table sets forth the reconciliation of NIMTE to net interest margin.

       
      Three Months Ended
      December 31,
    2024    		   September 30,
    2024    		   June 30, 2024   March 31,
    2024    		   December 31,
    2023
    Net interest income $30,841     $28,842     $27,053     $26,447     $26,732  
    Divided by average interest-bearing assets 2,787,517     2,674,291     2,568,266     2,558,558     2,612,297  
    Net interest margin (“NIM”)2 4.41 %   4.29 %   4.24 %   4.16 %   4.06 %
                       
    Net interest income $30,841     $28,842     $27,053     $26,447     $26,732  
    Plus: reduction in tax expense related to tax-exempt interest income 379     385     378     379     374  
      $31,220     $29,227     $27,431     $26,826     $27,106  
    Divided by average interest-bearing assets 2,787,517     2,674,291     2,568,266     2,558,558     2,612,297  
    NIMTE2 4.47 %   4.35 %   4.30 %   4.22 %   4.12 %
                                 
      Year-to-date
      December 31,
    2024    		   December 31,
    2023
    Net interest income $113,183     $103,256  
    Divided by average interest-bearing assets 2,647,615     2,492,240  
    Net interest margin (“NIM”)3 4.28 %   4.14 %
           
    Net interest income $113,183     $103,256  
    Plus: reduction in tax expense related to tax-exempt interest income 1,521     1,576  
      $114,704     $104,832  
    Divided by average interest-bearing assets 2,647,615     2,492,240  
    NIMTE3 4.33 %   4.21 %
               
    2Calculated using actual days in the quarter divided by 366 for the quarters ended in 2024 and 365 for the quarters ended in 2023, respectively.
               
    3Calculated using actual days in the year divided by 366 for year-to-date period in 2024 and 365 for year-to-date period in 2023, respectively.
               

    *Non-GAAP Financial Measures

    (Dollars and shares in thousands, except per share data)
    (Unaudited)

    Tangible Book Value

    Tangible book value is a non-GAAP measure defined as shareholders’ equity, less intangible assets, divided by common shares outstanding. The most comparable GAAP measure is book value per share and the following table sets forth the reconciliation of tangible book value per share and book value per share.

                       
      December 31,
    2024    		   September 30,
    2024    		   June 30, 2024   March 31,
    2024    		   December 31,
    2023
                       
    Total shareholders’ equity $267,116     $260,050     $247,200     $239,327     $234,718  
    Divided by common shares outstanding 5,518     5,502     5,502     5,500     5,513  
    Book value per share $48.41     $47.26     $44.93     $43.52     $42.57  
                                 
      December 31,
    2024    		   September 30,
    2024    		   June 30, 2024   March 31,
    2024    		   December 31,
    2023
                       
    Total shareholders’ equity $267,116     $260,050     $247,200     $239,327     $234,718  
    Less: goodwill and intangible assets 50,968     15,967     15,967     15,967     15,967  
      $216,148     $244,083     $231,233     $223,360     $218,751  
    Divided by common shares outstanding 5,518     5,502     5,502     5,500     5,513  
    Tangible book value per share $39.17     $44.36     $43.52     $40.61     $39.68  
                                 

    Tangible Common Equity to Tangible Assets

    Tangible common equity to tangible assets is a non-GAAP ratio that represents total equity less goodwill and intangible assets divided by total assets less goodwill and intangible assets. The most comparable GAAP measure of shareholders’ equity to total assets is calculated by dividing total shareholders’ equity by total assets and the following table sets forth the reconciliation of tangible common equity to tangible assets and shareholders’ equity to total assets.

                       
    Northrim BanCorp, Inc. December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023
                       
    Total shareholders’ equity $267,116     $260,050     $247,200     $239,327     $234,718  
    Total assets 3,041,869     2,963,392     2,821,668     2,759,560     2,807,497  
    Total shareholders’ equity to total assets 8.78 %   8.78 %   8.76 %   8.67 %   8.36 %
                                 
    Northrim BanCorp, Inc. December 31,
    2024    		   September 30,
    2024    		   June 30, 2024   March 31,
    2024    		   December 31,
    2023
    Total shareholders’ equity $267,116     $260,050     $247,200     $239,327     $234,718  
    Less: goodwill and other intangible assets, net 50,968     15,967     15,967     15,967     15,967  
    Tangible common shareholders’ equity $216,148     $244,083     $231,233     $223,360     $218,751  
                       
    Total assets $3,041,869     $2,963,392     $2,821,668     $2,759,560     $2,807,497  
    Less: goodwill and other intangible assets, net 50,968     15,967     15,967     15,967     15,967  
    Tangible assets $2,990,901     $2,947,425     $2,805,701     $2,743,593     $2,791,530  
    Tangible common equity ratio 7.23 %   8.28 %   8.24 %   8.14 %   7.84 %
                                 

    Note Transmitted on GlobeNewswire on January 24, 2025, at 12:15 pm Alaska Standard Time.

       
    Contact: Mike Huston, President, CEO, and COO
      (907) 261-8750
      Jed Ballard, Chief Financial Officer
      (907) 261-3539
       

    The MIL Network –

  • MIL-OSI Russia: January 25 is the day of the legal end of the war between the USSR and Germany

    Translation. Region: Russian Federation –

    Source: State University of Management – Official website of the State –

    On June 22, 1941, Nazi German troops treacherously invaded the territory of the Soviet Union, marking the beginning of the bloodiest war in history.

    The Second World War in Europe ended on May 9, 1945, when Germany signed the act of surrender. But legally, the Soviet Union stopped considering Germany an enemy only on January 25, 1955. On that day, the Decree of the Presidium of the Supreme Soviet of the USSR “On the termination of the state of war between the Soviet Union and Germany” was issued.

    Why did it take 10 years between the end of the fighting and this decree? The document itself explains that at the Potsdam Conference in 1945, the victorious countries decided that Germany should become a united, peaceful and democratic country. It was also decided that a peace treaty should be signed with Germany.

    But 10 years passed and Germany was still divided and there was no peace treaty. The Soviet government believed that this was wrong and that the German people should not be in an unequal position compared to other nations.

    The decree stated that the USA, England and France were doing everything to ensure that West Germany rearmed and joined military alliances. This prevented an agreement to unite Germany on peaceful terms and sign a peace treaty.

    Despite this, the Soviet leadership decided to put an end to these difficult relations and declare peace with Germany.

    “Having in mind the strengthening and development of friendly relations between the Soviet Union and the German Democratic Republic, based on the recognition of the principles of sovereignty and equality, taking into account the opinion of the Government of the German Democratic Republic and taking into account the interests of the population of both East and West Germany.

    The Presidium of the Supreme Soviet of the USSR by this Decree declares:

    The state of war between the Soviet Union and Germany is terminated and peaceful relations are established between them. All legal restrictions arising in connection with the war with respect to German citizens who were considered citizens of an enemy state are no longer in force. The declaration of the termination of the state of war with Germany does not change its international obligations and does not affect the rights and obligations of the Soviet Union arising from existing international agreements of the four powers concerning Germany as a whole.”

    The document was signed by the Chairman and Secretary of the Presidium of the Supreme Soviet of the USSR K. Voroshilov and N. Pegov.

    Did you know about this fact? Share in the comments on our official pages.

    Subscribe to the TG channel “Our GUU” Date of publication: 01/25/2025

    Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

    MIL OSI Russia News –

  • MIL-OSI United Nations: Security Council Decides to Hold Election for Filling New Vacancy in International Court of Justice on 27 May, Unanimously Adopting Resolution 2770 (2025)

    Source: United Nations General Assembly and Security Council

    Meetings Coverage

    9847th Meeting (PM)

    Following the resignation of Judge Nawaf Salam of the International Court of Justice on 14 January 2025, the Security Council today set the date for an election to fill this vacancy.

    Unanimously adopting resolution 2770 (2025) (to be issued as document S/RES/2770(2025)), the 15-member organ — in accordance with article 14 of the Statute of the International Court of Justice — decided that the election to fill the vacancy will take place on 27 May 2025 at a meeting of the Security Council and at a meeting of the General Assembly at its seventy-ninth session. 

    The newly elected judge’s term will begin the date that the successful candidate is elected by both bodies, and in accordance with article 15, serve for the remainder of his or her predecessor’s term, expiring on 5 February 2027. 

    Mr. Nawaf resigned from his Court position on 13 January 2025 after being designated as the Prime Minister of Lebanon and tasked with forming a new government by Joseph Aoun, who was elected President of Lebanon on 9 January 2025.

    For information media. Not an official record.

    MIL OSI United Nations News –

  • MIL-OSI USA: Pfizer Agrees to Pay Nearly 60M to Resolve False Claims Allegations Relating to Improper Physician Payments by Subsidiary

    Source: US State of Vermont

    Note: View the settlement here.

    Pharmaceutical company Pfizer Inc. (Pfizer), on behalf of its wholly-owned subsidiary Biohaven Pharmaceutical Holding Company Ltd. (Biohaven), has agreed to pay $59,746,277 to resolve allegations that, prior to Pfizer’s acquisition of the company, Biohaven knowingly caused the submission of false claims to Medicare and other federal health care programs by paying kickbacks to health care providers to induce prescriptions of Biohaven’s drug Nurtec ODT.

    “Through this settlement and others, the government has demonstrated its commitment to ensuring that drug companies do not use kickbacks to influence physician prescribing,” said Acting Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “The department will use every tool at its disposal to prevent pharmaceutical manufacturers from undermining the objectivity of treatment decisions by health care providers.”

    The anti‑kickback statute prohibits offering or paying anything of value to induce the referral of items or services covered by Medicare, Medicaid, TRICARE, and other federal health care programs. The statute is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives.

    The settlement announced today resolves allegations that from March 1, 2020, through Sept. 30, 2022, Biohaven paid improper remuneration, including in the form of speaker honoraria and meals at high end restaurants, to health care professionals to induce them to prescribe the migraine medication Nurtec ODT in violation of the anti-kickback statute. The United States alleged that Biohaven selected certain health care providers to be part of the Nurtec speaker bureau and provided them paid speaking opportunities with the intent that the speaker honoraria and meals would induce them to prescribe Nurtec ODT. The government further alleged that certain prescribers who attended multiple programs on the same topic received no educational benefit from attending repeat programs and that certain Biohaven speaker programs were attended by individuals with no educational need to attend, such as the speakers’ spouses, family members, or friends, or colleagues from the speakers’ own medical practice. The United States contends that this conduct persisted until October 2022, when Pfizer acquired Biohaven and terminated the Nurtec speaker programs.    

    “Patients deserve to know that their doctor is prescribing medications based on their doctor’s medical judgment, and not as a result of financial incentives from pharmaceutical companies,” said U.S. Attorney Trini E. Ross for the Western District of New York. “This settlement reflects our commitment to hold those who violate the laws accountable, regardless of their status or prestige.”

    “Violations of the anti-kickback statute, such as those alleged in this settlement, can unduly influence prescribers and negatively impact taxpayer-funded health care,” said Deputy Inspector General Christian J. Schrank of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG will continue to collaborate with law enforcement partners to ensure that providers and corporations are held accountable if they attempt to bypass laws meant to protect the integrity of federal health care programs.”

    “Investigating schemes that undermine the integrity of TRICARE, the health care system for military members and their families, is a top priority for the Department of Defense Office of Inspector General’s Defense Criminal Investigative Service (DCIS),” said Special Agent in Charge Patrick J. Hegarty of the DCIS Northeast Field Office. “Today’s announcement demonstrates our commitment to work with our partner agencies and the Department of Justice to pursue corporations that attempt to corrupt the TRICARE system.”

    The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Patrica Frattasio, a former sales representative at Biohaven. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned U.S. ex rel. Patricia Frattasio v. Biohaven Pharmaceutical Holding Company Ltd., No. 6:21-CV-06539 (W.D.N.Y.). Approximately $50.2 million of the settlement constitutes the federal portion of the recovery and approximately $9.5 million constitutes a recovery for State Medicaid programs. Ms. Frattasio will receive approximately $8.4 million as her share of the federal recovery in this case.   

    The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch Fraud Section, and the U.S. Attorney’s Office for the Western District of New York.

    Trial Attorney Jessica Sarkis of the Justice Department’s Civil Division and Assistant U.S. Attorney David M. Coriell for the Western District of New York handled the matter.

    The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).

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

    MIL OSI USA News –

  • MIL-OSI Security: Pfizer Agrees to Pay Nearly 60M to Resolve False Claims Allegations Relating to Improper Physician Payments by Subsidiary

    Source: United States Attorneys General

    Note: View the settlement here.

    Pharmaceutical company Pfizer Inc. (Pfizer), on behalf of its wholly-owned subsidiary Biohaven Pharmaceutical Holding Company Ltd. (Biohaven), has agreed to pay $59,746,277 to resolve allegations that, prior to Pfizer’s acquisition of the company, Biohaven knowingly caused the submission of false claims to Medicare and other federal health care programs by paying kickbacks to health care providers to induce prescriptions of Biohaven’s drug Nurtec ODT.

    “Through this settlement and others, the government has demonstrated its commitment to ensuring that drug companies do not use kickbacks to influence physician prescribing,” said Acting Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “The department will use every tool at its disposal to prevent pharmaceutical manufacturers from undermining the objectivity of treatment decisions by health care providers.”

    The anti‑kickback statute prohibits offering or paying anything of value to induce the referral of items or services covered by Medicare, Medicaid, TRICARE, and other federal health care programs. The statute is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives.

    The settlement announced today resolves allegations that from March 1, 2020, through Sept. 30, 2022, Biohaven paid improper remuneration, including in the form of speaker honoraria and meals at high end restaurants, to health care professionals to induce them to prescribe the migraine medication Nurtec ODT in violation of the anti-kickback statute. The United States alleged that Biohaven selected certain health care providers to be part of the Nurtec speaker bureau and provided them paid speaking opportunities with the intent that the speaker honoraria and meals would induce them to prescribe Nurtec ODT. The government further alleged that certain prescribers who attended multiple programs on the same topic received no educational benefit from attending repeat programs and that certain Biohaven speaker programs were attended by individuals with no educational need to attend, such as the speakers’ spouses, family members, or friends, or colleagues from the speakers’ own medical practice. The United States contends that this conduct persisted until October 2022, when Pfizer acquired Biohaven and terminated the Nurtec speaker programs.    

    “Patients deserve to know that their doctor is prescribing medications based on their doctor’s medical judgment, and not as a result of financial incentives from pharmaceutical companies,” said U.S. Attorney Trini E. Ross for the Western District of New York. “This settlement reflects our commitment to hold those who violate the laws accountable, regardless of their status or prestige.”

    “Violations of the anti-kickback statute, such as those alleged in this settlement, can unduly influence prescribers and negatively impact taxpayer-funded health care,” said Deputy Inspector General Christian J. Schrank of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG will continue to collaborate with law enforcement partners to ensure that providers and corporations are held accountable if they attempt to bypass laws meant to protect the integrity of federal health care programs.”

    “Investigating schemes that undermine the integrity of TRICARE, the health care system for military members and their families, is a top priority for the Department of Defense Office of Inspector General’s Defense Criminal Investigative Service (DCIS),” said Special Agent in Charge Patrick J. Hegarty of the DCIS Northeast Field Office. “Today’s announcement demonstrates our commitment to work with our partner agencies and the Department of Justice to pursue corporations that attempt to corrupt the TRICARE system.”

    The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Patrica Frattasio, a former sales representative at Biohaven. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned U.S. ex rel. Patricia Frattasio v. Biohaven Pharmaceutical Holding Company Ltd., No. 6:21-CV-06539 (W.D.N.Y.). Approximately $50.2 million of the settlement constitutes the federal portion of the recovery and approximately $9.5 million constitutes a recovery for State Medicaid programs. Ms. Frattasio will receive approximately $8.4 million as her share of the federal recovery in this case.   

    The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch Fraud Section, and the U.S. Attorney’s Office for the Western District of New York.

    Trial Attorney Jessica Sarkis of the Justice Department’s Civil Division and Assistant U.S. Attorney David M. Coriell for the Western District of New York handled the matter.

    The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).

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

    MIL Security OSI –

  • MIL-OSI: First Capital, Inc. Reports Annual and Quarterly Earnings

    Source: GlobeNewswire (MIL-OSI)

    CORYDON, Ind., Jan. 24, 2025 (GLOBE NEWSWIRE) — First Capital, Inc. (the “Company”) (NASDAQ: FCAP), the holding company for First Harrison Bank (the “Bank”), today reported net income of $11.9 million, or $3.57 per diluted share, for the year ended December 31, 2024, compared to net income of $12.8 million, or $3.82 per diluted share, for the year ended December 31, 2023.

    Results of Operations for the Years Ended December 31, 2024 and 2023

    Net interest income after provision for credit losses increased $894,000 for the year ended December 31, 2024 compared to the same period in 2023. Interest income increased $6.9 million when comparing the two periods due to an increase in the average tax-equivalent yield(1) on interest-earning assets from 3.96% for the year ended December 31, 2023 to 4.49% for the same period in 2024. Interest expense increased $5.7 million as the average cost of interest-bearing liabilities increased from 1.11% for the year ended December 31, 2023 to 1.73% for the same period in 2024, in addition to an increase in the average balance of interest-bearing liabilities from $809.2 million for the year ended December 31, 2023 to $850.0 million for the year ended December 31, 2024. As a result of the changes in interest-earning assets and interest-bearing liabilities, the tax-equivalent net interest margin(1) increased from 3.16% for the year ended December 31, 2023 to 3.20% for the same period in 2024. Refer to the accompanying average balance sheet for more information regarding changes in the composition of the Company’s balance sheet and resulting yields and costs from the year ended December 31, 2023 to the year ended December 31, 2024.

    Based on management’s analysis of the Allowance for Credit Losses (“ACL”) on loans and unfunded loan commitments, the provision for credit losses increased from $1.1 million for the year ended December 31, 2023 to $1.4 million for the year ended December 31, 2024. The increase was due to loan growth during the period, the increase in nonperforming assets during the year described later in this release, as well as management’s consideration of macroeconomic uncertainty. The Bank recognized net charge-offs of $173,000 for the year ended December 31, 2024 compared to $469,000 for the same period in 2023.  

    Noninterest income increased $24,000 for the year ended December 31, 2024 as compared to the year ended December 31, 2023 primarily due to increases in gains on the sale of loans and service charges on deposit accounts of $133,000 and $59,000, respectively. These were partially offset by the Company recognizing a $374,000 loss on equity securities during the year ended December 31, 2024 compared to a $207,000 loss during the same period in 2023.

    Noninterest expenses increased $1.8 million for the year ended December 31, 2024 as compared to the same period in 2023. This was primarily due to increases in professional fees, compensation and benefits, and other expenses of $663,000, $536,000 and $260,000, respectively, when comparing the two periods.   The increase in professional fees is primarily due to increased costs associated with the Company’s annual audit and fees being accrued for the Company’s ongoing core contract negotiations. The increase in compensation and benefits is due to standard increases in salary and wages as well as increases in the cost of Company-provided health insurance benefits. The increase in other expenses included a $90,000 increase in the Company’s support of local communities through sponsorships and donations, a $64,000 increase in check and debit card fraud losses, $30,000 in increased dues and subscriptions, and $25,000 in increased expenses related to employee training and education.

    Income tax expense decreased $32,000 for the year ended December 31, 2024 as compared to the same period in 2023 resulting in an effective tax rate of 15.6% for the year ended December 31, 2024, compared to 14.9% for the same period in 2023.

    Results of Operations for the Three Months Ended December 31, 2024 and 2023

    The Company’s net income was $3.3 million, or $0.97 per diluted share, for the quarter ended December 31, 2024, compared to $3.1 million, or $0.93 per diluted share, for the quarter ended December 31, 2023.

    Net interest income after provision for credit losses increased $822,000 for the quarter ended December 31, 2024 as compared to the same period in 2023. Interest income increased $1.6 million when comparing the periods due to an increase in the average tax-equivalent yield(1) on interest-earning assets from 4.20% for the fourth quarter of 2023 to 4.64% for the fourth quarter of 2024. Interest expense increased $693,000 when comparing the periods due to an increase in the average cost of interest-bearing liabilities from 1.51% for the fourth quarter of 2023 to 1.76% for the fourth quarter of 2024, in addition to an increase in the average balance of interest-bearing liabilities from $821.1 million for the fourth quarter of 2023 to $859.6 million for the fourth quarter of 2024. As a result of the changes in interest-earning assets and interest-bearing liabilities, the tax-equivalent net interest margin(1) increased from 3.11% for the quarter ended December 31, 2023 to 3.33% for the same period in 2024. Refer to the accompanying average balance sheet for more information regarding changes in the composition of the Company’s balance sheet and resulting yields and costs from the quarter ended December 31, 2023 to the quarter ended December 31, 2024.

    Based on management’s analysis of the ACL on loans and unfunded loan commitments, the provision for credit losses increased from $308,000 for the quarter ended December 31, 2023 to $346,000 for the quarter ended December 31, 2024.   The Bank recognized net charge-offs of $24,000 and $89,000 for the quarters ended December 31, 2024 and 2023, respectively.

    Noninterest income increased $103,000 for the quarter ended December 31, 2024 as compared to the same period in 2023.   The Company recognized increases in gain on sale of loans, service charges on deposit accounts, and an increase in the cash surrender value of bank owned life insurance policies of $56,000, $29,000, and $15,000, respectively, when comparing the two periods. These were partially offset by a $21,000 decrease in ATM and debit card fees. In addition, the Company recognized a $104,000 loss on equity securities during the quarter ended December 31, 2024 compared to a $121,000 loss during the same period in 2023.

    Noninterest expense increased $567,000 for the quarter ended December 31, 2024 as compared to the same period in 2023, due primarily to increases in professional fees, compensation and benefits, and occupancy and equipment expenses of $239,000, $162,000, and $66,000, respectively. The increase in professional fees is primarily due to increased costs associated with the Company’s annual audit and fees being accrued for the Company’s ongoing core contract negotiations. The increase in compensation and benefits is due to standard increases in salary and wages as well as increases in the cost of Company-provided health insurance benefits. The increase in occupancy and equipment expenses is primarily due to increased depreciation expense and facility repairs.

    Income tax expenses increased $206,000 for the fourth quarter of 2024 as compared to the fourth quarter of 2023. This was due primarily to the finalization of estimates associated with the Company’s investment in solar tax credit producing facilities during 2024. As a result, the effective tax rate for the quarter ended December 31, 2024 was 17.3% compared to 13.3% for the same period in 2023.

    Comparison of Financial Condition at December 31, 2024 and 2023

    Total assets were $1.19 billion at December 31, 2024 compared to $1.16 billion at December 31, 2023. Total cash and cash equivalents and net loans receivable increased $67.2 million and $16.8 million, respectively, from December 31, 2023 to December 31, 2024, while securities available for sale decreased $48.0 million during the same period. Deposits increased $41.2 million from $1.03 billion at December 31, 2023 to $1.07 billion at December 31, 2024.   The Bank had no borrowed funds outstanding at December 31, 2024 compared to $21.5 million in borrowings outstanding through the Federal Reserve Bank’s BTFP at December 31, 2023. Nonperforming assets (consisting of nonaccrual loans, accruing loans 90 days or more past due, and foreclosed real estate) increased from $1.8 million at December 31, 2023 to $4.5 million at December 31, 2024. The increase was primarily due to the nonaccrual classification of two commercial loan relationships totaling $2.6 million. Loans in the relationship are secured by a variety of real estate and business assets.

    The Bank currently has 18 offices in the Indiana communities of Corydon, Edwardsville, Greenville, Floyds Knobs, Palmyra, New Albany, New Salisbury, Jeffersonville, Salem, Lanesville and Charlestown and the Kentucky communities of Shepherdsville, Mt. Washington and Lebanon Junction.

    Access to First Harrison Bank accounts, including online banking and electronic bill payments, is available through the Bank’s website at http://www.firstharrison.com. For more information and financial data about the Company, please visit Investor Relations at the Bank’s aforementioned website. The Bank can also be followed on Facebook.

    Cautionary Note Regarding Forward-Looking Statements

    This press release may contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the use of the words “anticipate,” “believe,” “expect,” “intend,” “could” and “should,” and other words of similar meaning. Forward-looking statements are not historical facts nor guarantees of future performance; rather, they are statements based on the Company’s current beliefs, assumptions, and expectations regarding its business strategies and their intended results and its future performance.

    Numerous risks and uncertainties could cause or contribute to the Company’s actual results, performance and achievements to be materially different from those expressed or implied by these forward-looking statements. Factors that may cause or contribute to these differences include, without limitation, general economic conditions, including changes in market interest rates and changes in monetary and fiscal policies of the federal government; competition; the ability of the Company to execute its business plan; legislative and regulatory changes; the quality and composition of the loan and investment portfolios; loan demand; deposit flows; changes in accounting principles and guidelines; and other factors disclosed periodically in the Company’s filings with the Securities and Exchange Commission.

    Because of the risks and uncertainties inherent in forward-looking statements, readers are cautioned not to place undue reliance on them, whether included in this press release, the Company’s reports, or made elsewhere from time to time by the Company or on its behalf. These forward-looking statements are made only as of the date of this press release, and the Company assumes no obligation to update any forward-looking statements after the date of this press release.

    Contact:
    Joshua Stevens
    Chief Financial Officer
    812-738-1570

    (1) Reconciliations of the non–U.S. Generally Accepted Accounting Principles (“GAAP”) measures are set forth at the end of this press release.

     
    FIRST CAPITAL, INC. AND SUBSIDIARIES
    Consolidated Financial Highlights (Unaudited)
                   
      Three Months Ended   Year Ended
      December 31,   December 31,
    OPERATING DATA 2024   2023   2024   2023
    (Dollars in thousands, except per share data)              
                   
    Total interest income $ 13,192     $ 11,639     $ 50,471     $ 43,605  
    Total interest expense   3,784       3,091       14,681       9,017  
    Net interest income   9,408       8,548       35,790       34,588  
    Provision for credit losses   346       308       1,449       1,141  
    Net interest income after provision for credit losses   9,062       8,240       34,341       33,447  
                   
    Total non-interest income   1,934       1,831       7,656       7,632  
    Total non-interest expense   7,047       6,480       27,828       26,028  
    Income before income taxes   3,949       3,591       14,169       15,051  
    Income tax expense   684       478       2,216       2,248  
    Net income   3,265       3,113       11,953       12,803  
    Less net income attributable to the noncontrolling interest   3       3       13       13  
    Net income attributable to First Capital, Inc. $ 3,262     $ 3,110     $ 11,940     $ 12,790  
                   
    Net income per share attributable to              
    First Capital, Inc. common shareholders:              
    Basic $ 0.97     $ 0.93     $ 3.57     $ 3.82  
                   
    Diluted $ 0.97     $ 0.93     $ 3.57     $ 3.82  
                   
    Weighted average common shares outstanding:              
    Basic   3,347,043       3,345,910       3,346,161       3,347,341  
                   
    Diluted   3,347,321       3,345,910       3,346,161       3,347,341  
                   
    OTHER FINANCIAL DATA              
                   
    Cash dividends per share $ 0.29     $ 0.27     $ 1.12     $ 1.08  
    Return on average assets (annualized)   1.10 %     1.09 %     1.02 %     1.12 %
    Return on average equity (annualized)   11.33 %     13.67 %     10.97 %     14.03 %
    Net interest margin   3.26 %     3.03 %     3.14 %     3.08 %
    Net interest margin (tax-equivalent basis) (1)   3.33 %     3.11 %     3.20 %     3.16 %
    Interest rate spread   2.81 %     2.61 %     2.69 %     2.77 %
    Interest rate spread (tax-equivalent basis) (1)   2.88 %     2.69 %     2.76 %     2.85 %
    Net overhead expense as a percentage of average assets (annualized)   2.38 %     2.26 %     2.38 %     2.28 %
                   
      December 31,   December 31,        
    BALANCE SHEET INFORMATION 2024   2023        
                   
    Cash and cash equivalents $ 105,917     $ 38,670          
    Interest-bearing time deposits   2,695       3,920          
    Investment securities   396,243       444,271          
    Gross loans   640,480       622,414          
    Allowance for credit losses   9,281       8,005          
    Earning assets   1,119,944       1,083,898          
    Total assets   1,187,523       1,157,880          
    Deposits   1,066,439       1,025,211          
    Borrowed funds   –       21,500          
    Stockholders’ equity, net of noncontrolling interest   114,599       105,233          
    Allowance for credit losses as a percent of gross loans   1.45 %     1.29 %        
    Non-performing assets:              
    Nonaccrual loans   4,483       1,751          
    Accruing loans past due 90 days   –       –          
    Foreclosed real estate   –       –          
    Regulatory capital ratios (Bank only):              
    Community Bank Leverage Ratio (2)   10.57 %     9.92 %        
                   
    (1) See reconciliation of GAAP and non-GAAP financial measures for additional information relating to the calculation of this item.
    (2) Effective March 31, 2020, the Bank opted in to the Community Bank Leverage Ratio (CBLR) framework. As such, the other regulatory ratios are no longer provided.
                   
     
    FIRST CAPITAL, INC. AND SUBSIDIARIES
    Consolidated Average Balance Sheets (Unaudited)
                     
        For the Year ended December 31,
        2024   2023
            Average
    		       Average
        Average   Yield/   Average   Yield/
        Balance Interest Cost   Balance Interest Cost
    (Dollars in thousands)                
    Interest earning assets:                
    Loans (1) (2):                
    Taxable   $ 624,193   $ 37,974   6.08 %   $ 582,465   $ 33,153   5.69 %
    Tax-exempt (3)     9,805     377   3.84 %     8,144     249   3.06 %
    Total loans     633,998     38,351   6.05 %     590,609     33,402   5.66 %
                     
    Investment securities:                
    Taxable (4)     333,195     6,918   2.08 %     358,860     5,635   1.57 %
    Tax-exempt (3)     121,947     3,329   2.73 %     147,667     4,236   2.87 %
    Total investment securities     455,142     10,247   2.25 %     506,527     9,871   1.95 %
                     
    Federal funds sold     45,563     2,357   5.17 %     19,512     989   5.07 %
    Other interest-earning assets (5)     6,473     294   4.54 %     7,078     285   4.03 %
    Total interest earning assets     1,141,176     51,249   4.49 %     1,123,726     44,547   3.96 %
                     
    Non-interest earning assets     28,479           20,140      
    Total assets   $ 1,169,655         $ 1,143,866      
                     
    Interest bearing liabilities:                
    Interest-bearing demand deposits   $ 433,495   $ 6,086   1.40 %   $ 447,895   $ 4,652   1.04 %
    Savings accounts     230,353     810   0.35 %     255,126     917   0.36 %
    Time deposits     156,534     6,331   4.04 %     91,423     2,672   2.92 %
    Total deposits     820,382     13,227   1.61 %     794,444     8,241   1.04 %
                     
    FHLB Advances     1,736     99   5.70 %     6,084     340   5.59 %
    BTFP Advances     27,918     1,355   4.85 %     8,632     436   5.05 %
    Total interest bearing liabilities     850,036     14,681   1.73 %     809,160     9,017   1.11 %
                     
    Non-interest bearing liabilities                
    Non-interest bearing deposits     203,699           236,471      
    Other liabilities     7,046           7,056      
    Total liabilities     1,060,781           1,052,687      
    Stockholders’ equity (6)     108,874           91,179      
    Total liabilities and stockholders’ equity $ 1,169,655         $ 1,143,866      
                     
    Net interest income (tax equivalent basis)   $ 36,568         $ 35,530    
    Less: tax equivalent adjustment       (778 )         (942 )  
    Net interest income     $ 35,790         $ 34,588    
                     
    Interest rate spread       2.69 %       2.77 %
    Interest rate spread (tax equivalent basis) (7)     2.76 %       2.85 %
    Net interest margin       3.14 %       3.08 %
    Net interest margin (tax equivalent basis) (7)     3.20 %       3.16 %
    Ratio of average interest earning assets to average interest bearing liabilities       134.25 %       138.88 %
                     
    (1) Interest income on loans includes fee income of $727,000 and $961,000 for the years ended December 31, 2024 and 2023, respectively.
    (2) Average loan balances include loans held for sale and nonperforming loans.
    (3) Tax-exempt income has been adjusted to a tax-equivalent basis using the federal marginal tax rate of 21%.
    (4) Includes taxable debt and equity securities and FHLB Stock.
    (5) Includes interest-bearing deposits with banks and interest-bearing time deposits.
    (6) Stockholders’ equity attributable to First Capital, Inc.
    (7) Reconciliations of the non-U.S. GAAP measures are set forth at the end of this press release.
                     
     
    FIRST CAPITAL, INC. AND SUBSIDIARIES
    Consolidated Average Balance Sheets (Unaudited)
                     
        For the Three Months ended December 31,
        2024   2023
            Average
    		       Average
        Average   Yield/   Average   Yield/
        Balance Interest Cost   Balance Interest Cost
    (Dollars in thousands)                
    Interest earning assets:                
    Loans (1) (2):                
    Taxable   $ 627,125   $ 9,748   6.22 %   $ 608,688   $ 9,018   5.93 %
    Tax-exempt (3)     11,339     123   4.34 %     8,079     63   3.12 %
    Total loans     638,464     9,871   6.18 %     616,767     9,081   5.89 %
                     
    Investment securities:                
    Taxable (4)     314,345     1,739   2.21 %     352,377     1,521   1.73 %
    Tax-exempt (3)     121,445     838   2.76 %     139,865     996   2.85 %
    Total investment securities     435,790     2,577   2.37 %     492,242     2,517   2.05 %
                     
    Federal funds sold     72,271     867   4.80 %     13,765     194   5.64 %
    Other interest-earning assets (5)     6,884     78   4.53 %     6,386     69   4.32 %
    Total interest earning assets     1,153,409     13,393   4.64 %     1,129,160     11,861   4.20 %
                     
    Non-interest earning assets     30,640           16,953      
    Total assets   $ 1,184,049         $ 1,146,113      
                     
    Interest bearing liabilities:                
    Interest-bearing demand deposits   $ 437,573   $ 1,535   1.40 %   $ 427,832   $ 1,413   1.32 %
    Savings accounts     224,311     159   0.28 %     239,355     146   0.24 %
    Time deposits     185,112     1,936   4.18 %     122,163     1,104   3.61 %
    Total deposits     846,996     3,630   1.71 %     789,350     2,663   1.35 %
                     
    FHLB Advances     –     –   –       16,321     232   5.69 %
    BTFP Advances     12,621     154   4.88 %     15,402     196   5.09 %
    Total interest bearing liabilities     859,617     3,784   1.76 %     821,073     3,091   1.51 %
                     
    Non-interest bearing liabilities                
    Non-interest bearing deposits     202,008           227,613      
    Other liabilities     7,294           6,415      
    Total liabilities     209,302           234,028      
    Stockholders’ equity (6)     115,130           91,012      
    Total liabilities and stockholders’ equity $ 1,184,049         $ 1,146,113      
                     
    Net interest income (tax equivalent basis)   $ 9,609         $ 8,770    
    Less: tax equivalent adjustment       (201 )         (222 )  
    Net interest income     $ 9,408         $ 8,548    
                     
    Interest rate spread       2.81 %       2.61 %
    Interest rate spread (tax-equivalent basis) (7)     2.88 %       2.69 %
    Net interest margin       3.26 %       3.03 %
    Net interest margin (tax-equivalent basis) (7)     3.33 %       3.11 %
    Ratio of average interest earning assets to average interest bearing liabilities       134.18 %       137.52 %
                     
    (1) Interest income on loans includes fee income of $210,000 and $180,000 for the three months ended December 31, 2024 and 2023, respectively.
    (2) Average loan balances include loans held for sale and nonperforming loans.
    (3) Tax-exempt income has been adjusted to a tax-equivalent basis using the federal marginal tax rate of 21%.
    (4) Includes taxable debt and equity securities and FHLB Stock.
    (5) Includes interest-bearing deposits with banks and interest-bearing time deposits.
    (6) Stockholders’ equity attributable to First Capital, Inc.
    (7) Reconciliations of the non-U.S. GAAP measures are set forth at the end of this press release.
                     
                   
    RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES (UNAUDITED):
                   
    This presentation contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Management uses these “non-GAAP” measures in its analysis of the Company’s performance. Management believes that these non-GAAP financial measures allow for better comparability with prior periods, as well as with peers in the industry who provide a similar presentation, and provide a further understanding of the Company’s ongoing operations. 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 companies. The following table summarizes the non-GAAP financial measures derived from amounts reported in the Company’s consolidated financial statements and reconciles those non-GAAP financial measures with the comparable GAAP financial measures.
                                   
      Three Months Ended   Year Ended
      December 31,   December 31,
      2024   2023   2024   2023
    (Dollars in thousands)              
    Net interest income (A) $ 9,408     $ 8,548     $ 35,790     $ 34,588  
    Add: Tax-equivalent adjustment   201       222       778       942  
    Tax-equivalent net interest income (B)   9,609       8,770       36,568       35,530  
    Average interest earning assets (C)   1,153,409       1,129,160       1,141,176       1,123,726  
    Net interest margin (A)/(C)   3.26 %     3.03 %     3.14 %     3.08 %
    Net interest margin (tax-equivalent basis) (B)/(C)   3.33 %     3.11 %     3.20 %     3.16 %
                   
    Total interest income (D) $ 13,192     $ 11,639     $ 50,471     $ 43,605  
    Add: Tax-equivalent adjustment   201       222       778       942  
    Total interest income tax-equivalent basis (E)   13,393       11,861       51,249       44,547  
    Average interest earning assets (F)   1,153,409       1,129,160       1,141,176       1,123,726  
    Average yield on interest earning assets (D)/(F); (G)   4.57 %     4.12 %     4.42 %     3.88 %
    Average yield on interest earning assets tax-equivalent (E)/(F); (H)   4.64 %     4.20 %     4.49 %     3.96 %
    Average cost of interest bearing liabilities (I)   1.76 %     1.51 %     1.73 %     1.11 %
    Interest rate spread (G)-(I)   2.81 %     2.61 %     2.69 %     2.77 %
    Interest rate spread tax-equivalent (H)-(I)   2.88 %     2.69 %     2.76 %     2.85 %
                                   

    The MIL Network –

  • MIL-OSI USA: Hoeven, Colleagues Reintroduce FARM Act to Add Ag Secretary to CFIUS

    US Senate News:

    Source: United States Senator for North Dakota John Hoeven

    01.24.25

    WASHINGTON – Senator John Hoeven joined Senator Tommy Tuberville (R-AL) and Senator John Fetterman (D-PA) in reintroducing the bipartisan, bicameral Foreign Adversary Risk Management (FARM) Act, to permanently add the U.S. Secretary of Agriculture to the Committee on Foreign Investment in the United States (CFIUS), the governmental body that oversees the vetting process of foreign investment and acquisition of American companies. Currently, CFIUS does not directly consider the needs of the agriculture industry when reviewing foreign investment and ownership in domestic businesses.

    “Our foreign adversaries are buying up American farmland and threatening American food security,” said Senator Hoeven. “We must have stronger supervision of foreign investments that affect the American food supply, and this bill will help achieve that by adding the Agriculture Secretary to CFIUS. This is a logical step to protect our essential food infrastructure and ensure North Dakota and our country remains a leader in agriculture.”

    “Over the last decade, we’ve seen a surge of American farmland purchases from our foreign adversaries,” said Senator Tuberville. “These foreign investments are now reaching every piece of the very large puzzle that makes up our agriculture industry, from farming and processing to packaging and shipping. Food security is national security, and we cannot allow our adversaries to have a foot in the door to our critical supply chains. We must prioritize oversight of foreign investment in our food supply chains, especially from Russia, China, North Korea, and Iran. This starts with giving the agriculture community a permanent seat at the table on CFIUS. As Alabama’s voice on the Senate Ag Committee, I will keep fighting to secure our ag supply chains so that our agriculture community can continue to put food on the table for American families.” 

    “Pennsylvania is home to about 50,000 farms and the farmers who power them already face enough challenges to stay competitive. They shouldn’t also have to compete with foreign adversaries buying up American farmland,” said Senator Fetterman. “America’s farms are critical infrastructure, and CFIUS exists to protect our critical infrastructure from foreign threats. So, adding the Secretary of Agriculture is just plain common sense. I’ve said it before, and I’ll say it again: foreign adversaries have no business owning American farmland. This bill makes that clear and I’m proud to partner with my colleague to get it done.”

      Joining Hoeven, Tuberville and Fetterman in reintroducing this legislation are Senators Roger Marshall (R-KS), Rick Scott (R-FL), Eric Schmitt (R-MO), Kevin Cramer (R-ND), Katie Britt (R-AL), Marsha Blackburn (R-TN), Deb Fischer (R-NE), Steve Daines (R-MT), Cynthia Lummis (R-WY), and Tim Sheehy (R-MT).

    MIL OSI USA News –

  • MIL-OSI United Kingdom: Council Service Update January 24

    Source: Northern Ireland – City of Derry

    Council Service Update January 24

    24 January 2025

    Council continues to work with local agencies in the ongoing emergency response to Storm Éowyn which has resulted in significant damage to roads and property throughout the City and District.

    This is compounded by the potential risk of snow and ice forecast for this evening which will make efforts to assess and repair damages even more challenging tomorrow.

    We hope to resume normal Council services as soon as it is safe to do so, but the health and safety of both staff and the general public is our first priority.

    We will begin the process of assessing any impacts on Council sites early tomorrow, but please note that further delays to services are expected.

     Bin collections

    Refuse crew will be out on the ground from 8am tomorrow to collect as many bins as possible that were scheduled for collection today, but we will only be able to do so if it is safe.  Please leave bins in a sheltered place later this evening or early tomorrow morning if you can. Any missed bins will be collected as soon as possible.

     

    Cemeteries and outdoor sites

    Efforts are being made to reopen Council cemeteries, parks, and recycling centres tomorrow morning following assessment.

    Burials will be prioritized, with a number scheduled to take place tomorrow. The cemeteries will open to the wider public as soon as they have been inspected and are safe. 

    Leisure Centres and other venues

    Leisure Centres, the Guildhall and other cultural and community venues will open tomorrow as usual following inspections.

    Grass and 3G pitches will also open subject to pitch inspections for any storm damage.

    We will continue to provide regular updates on our social media platforms and appreciate your patience and cooperation as we work towards restoring full services. Please follow the guidance of the PSNI and stay home and stay safe while warnings are in place.

     

    Emergency Information

    • Stay up to date with the weather forecast for your area and follow advice from emergency services and local authorities.

    • Further updates – Click on – UK weather warnings – Met Office

    Emergency Contact numbers:

    Emergency services 999 or 112

    Flooding Incident Line – 0300 2000 100

    NI Electricity Networks – 03457 643 643

    NI Gas Emergency Service – 0800 002 001

    NI Water – 03457 440 088

    Housing Executive – 03448 920 901

    Report a blocked road – 0300 200 7891

    For further advice see:

    • https://www.nidirect.gov.uk/camp…/be-ready-for-emergencies

    • http://www.metoffice.gov.uk/guide/weather/warnings

    • https://www.metoffice.gov.uk/…/env…/community-resilience

    • https://www.infrastructure-ni.gov.uk/…/dfi-rivers-water…

    • https://twitter.com/nidirect

    • Report a road drainage fault (https://www.nidirect.gov.uk/…/report-road-drainage-fault);

    NB – register on the Met Office website or download the Met Office app to receive weather warnings; http://www.metoffice.gov.uk/…/mobile…/weather-app

    MIL OSI United Kingdom –

  • MIL-OSI: Interfield Global Software Inc. Announces Completion of Funding for Implementation of Proposed Joint Venture With Abhi

    Source: GlobeNewswire (MIL-OSI)

    VANCOUVER, British Columbia, Jan. 24, 2025 (GLOBE NEWSWIRE) — Interfield Global Software Inc. (CBOE CA: IFSS) (the “Company”) announces that its wholly owned subsidiary, Interfield Software Solutions LLC (“Interfield Solutions” or “Borrower”) has secured the financing necessary to implement its previously announced joint venture with Abhi (the “Abhi JV”) and to restructure the business of the Company in preparation for the Abhi JV.

    The financing comprises an unsecured one year term (“Term”) loan of US$500,000 (“Loan”) from an arms-length private investor (“Lender”), with non-compounded interest payable at 5% per year. Repayment of the Loan together with accrued interest is due upon expiry of the Term and may be in cash (“Cash Payment”), or at the option of the Borrower, by the issuance and transfer to the Lender, or its nominee, of a six percent (6%) equity interest in the Borrower (“Equity Payment”).

    At any time during the Term, the Lender has the option to increase the loan amount by a further US$500,000 upon the same terms and conditions. Should the Lender exercise its right to do so, the amount of interest payable will be adjusted accordingly and the Equity Payment will be increased from 6% to 13%.

    In further preparation for the implementation of the Abhi JV, the board of directors of the Company is evaluating further strategic alternatives, which may involve a migration of its current listing to a growth equity market, subject to the Company receiving necessary approvals. No definitive decisions have been reached regarding strategic alternatives and there is no assurance if or when such alternatives may be implemented. The Company will provide further updates, as necessary, at the appropriate time.

    About Abhi

    Abhi is a prominent fintech company, earning recognition as one of the Future 100 companies in the UAE. It was also the first to receive the Technology Pioneer 2023 Award by the World Economic Forum, making fintech history in the MENAP region. Abhi offers a comprehensive suite of products and services, including EWA, payroll solutions, and SME financing.

    About Interfield Global Software Inc.

    The Company is a publicly listed company, with its common shares listed on Cboe Canada. (Cboe CA: IFSS) and operates out of Dubai, U.A.E through its wholly owned subsidiary, Interfield Solutions.

    Interfield Solutions is a software company that services numerous industrial segments worldwide including oil and gas, mining and renewables. Interfield Solutions has two operating divisions, E-commerce and Software as a Service. Equipment Hound, the company’s flagship product of its E-commerce division, is an industrial equipment marketplace that connects buyers and suppliers around the globe. Equipment Hound manages a catalogue of equipment from various suppliers and provides procurement solutions for buyers. It includes features such as requests for quotes, logistics support and third-party verification. ToolSuite, the company’s flagship product of its Software as a Service division, is a cloud based data collection and management platform that digitizes industrial processes and provides real-time auditable data for clients.

    For more information about the Company, please refer to the Company’s profile on SEDAR+ at http://www.sedarplus.ca.

    ON BEHALF OF THE BOARD OF DIRECTORS

    “Harold Hemmerich”

    Harold Hemmerich, Chief Executive Officer & Director
    Phone: +971 50 558 8349

    Bruce Nurse, Investor Relations
    Phone: +1 303 919 2913

    Forward-Looking Statements Disclaimer and Reader Advisory

    This news release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of applicable Canadian securities laws. All statements other than statements of historical fact are forward-looking statements, and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance often using phrases such as “expects”, “anticipates”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends”, or variations of such words and phrases, or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved, are not statements of historical fact and may be forward-looking statements. Forward looking statements in this release include: (i) the anticipated implementation of Abhi JV and restructuring in preparation for the Abhi JV; (ii) the anticipated use of the proceeds from the Loan; and (iii) the anticipated strategic alternatives involving a migration to a growth equity market.

    Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors, which may cause actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include: general business, economic, competitive, political and social uncertainties; delay or failure to receive any necessary board, shareholder or regulatory approvals, including the approval of any applicable regulatory authority; and that factors may occur which impede or prevent the Company’s future business plans. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Except as required by law, the Company does not assume any obligation to update the forward-looking statements, whether they change as a result of new information, future events or otherwise, except as required by law.

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

    The MIL Network –

  • MIL-OSI USA: Lee Introduces Pro Life Legislation for March for Life

    US Senate News:

    Source: United States Senator for Utah Mike Lee
    Bills would ban federal tax dollars from subsidizing abortion at home and abroad, repeal law used to target Pro Life activists
    WASHINGTON – Senator Mike Lee (R-UT) has introduced a trio of bills to prevent federal tax dollars from funding or subsidizing abortions in the United States and across the world, in honor of the 2025 March for Life in Washington, DC and state capitals around the country: the Abortion is not Health Care Act, the Protecting Life in Health Savings Accounts Act, the Protecting Life in Foreign Assistance Act, and a repeal of the FACE Act.
    “In our quest to build a society where every precious human life is protected, we cannot allow the tax dollars of American families to be used against the most vulnerable people in our country and across the word: the unborn.” said Senator Lee. “I am also introducing legislation to repeal the FACE Act, which was used by Joe Biden to imprison Pro Life activists, now officially pardoned by President Trump.”
    The Abortion is not Health Care Act would end the tax deductibility of abortions and clarify that this gruesome practice is not health care. Currently, the IRS categorizes an abortion as “medical care” and allows tax benefits to flow to this practice, subsidizing the killing of hundreds of thousands of unborn children each year. This bill would amend Section 213 of the Internal Revenue Code to prohibit elective abortion expenses from being considered eligible for a medical expense deduction.
    Cosponsors include Sens. Hagerty (R-TN), Daines (R-MT), Cramer (R-ND), Blackburn (R-TN), Hawley (R-MO), and Hyde-Smith (R-MS).
    Supporting groups include Students for Life Action, Concerned Women for America, Eagle Forum, Heritage Action
    For a one-pager, click HERE.For bill text, click HERE.
    The Protecting Life in Health Savings Accounts would end the preferential tax treatment of abortion in health savings accounts. Current law allows individuals to use tax-advantaged funds from health savings accounts (HSAs), flexible savings accounts (FSAs), health reimbursement arrangements (HRAs), Archer medical savings accounts (MSAs), and retiree health accounts for the “medical expense” of abortion. This legislation would amend the Internal Revenue Code to explicitly prevent abortions from getting a special tax advantage through the use of these accounts.
    Cosponsors include Sens. Hagerty (R-TN), Daines (R-MT), Cramer (R-ND), Blackburn (R-TN), Hawley (R-MO), and Hyde-Smith (R-MS).
    Supporting groups include Students for Life Action, Concerned Women for America, Eagle Forum
    For a one-pager, click HERE.For bill text, click HERE.
    The Protecting Life in Foreign Assistance Act would ensure that our foreign aid is not funding or promoting abortions overseas. In 1984, President Ronald Reagan first instituted the Mexico City Policy, prohibiting the availability of family planning foreign assistance funds to organizations that provide or promote abortions or advocate to change abortion laws in a foreign country. Since then, the policy has been alternately rescinded and reinstated with changing administrations.
    The Trump Administration rebranded this policy as the Protecting Life in Global Health Assistance (PLGHA) policy and applied it to all global health assistance, foreign nonprofits, and NGOs. This bill would permanently codify an expanded version of the PLGHA policy into law, capturing all assistance provided to foreign or domestic nonprofits, NGOs, and multilateral organizations. With President Biden having rescinded the Protecting Life in Global Health Assistance policy in 2021, American citizens may be complicit in overseas abortions under the guise of “foreign assistance.” Congress must ensure this cannot be the case now or ever again. Doing so would affirm the dignity of unborn human lives everywhere and save countless lives across the globe.
    Cosponsors include Sens. Blackburn (R-TN), Tim Scott (R-SC), Budd (R-NC), Cramer (R-ND), Kennedy (R-LA), Johnson (R-WI), Young (R-IN), Fischer (R-NE), Ricketts (R-NE), Cornyn (R-TX), Banks (R-IN), and Tuberville (R-AL).
    Supporting groups include CatholicVote and Susan B. Anthony Pro-Life America.
    For a one-pager, click HERE.For bill text, click HERE.
    The FACE ACT is a federal law designed to protect access to abortion facilities. While FACE also includes protections for churches, these are duplicative of other federal and state laws and have never been enforced. President Biden’s weaponized Department of Justice used the FACE Act to legally harass peaceful pro-life activists while simultaneously stonewalling good faith efforts by members of Congress to conduct even elementary oversight of the law. While President Trump has pardoned activists imprisoned by the Biden administration, a full repeal of the FACE Act will prevent future administrations from unjustly using this law for the purpose of political persecution.
    Cosponsors include Sens. Hawley (R-MO) & Wicker (R-MS)
    Supporting organizations include Thomas More Society, Family Research Council, Students for Life Action, Catholic Vote, Susan B. Anthony List, Live Action, and Citizens for Renewing America.
    For one-pager, bill text, click HERE.For bill text, click HERE.

    MIL OSI USA News –

  • MIL-OSI United Nations: Security Council Adopts Presidential Statement Reaffirming that Acts of Terrorism Constitute among Most Serious Threats to International Peace, Security

    Source: United Nations General Assembly and Security Council

    The Security Council today unanimously adopted a presidential statement reaffirming that acts of international terrorism constitute one of the most serious threats to international peace and security in the twenty-first century, calling on all Member States to summon the requisite political will to denounce all acts of terrorism.

    Through the text (to be issued as document S/PRST/2025/2), the Council — recognizing that terrorism will not be defeated by military, security, law-enforcement and intelligence measures alone — underlined the need to address the conditions conducive to the spread of terrorism.  This includes strengthening efforts for the successful prevention and peaceful resolution of prolonged conflicts and promoting the rule of law, human rights, fundamental freedoms, good governance, tolerance and inclusiveness.

    The Council also underlined the importance of supporting socioeconomic development for sustaining peace in Africa, including through transnational and transregional infrastructure development, industrialization, poverty eradication, job creation, agricultural modernization and promotion of entrepreneurship.  The organ also expressed the need for continued support to African countries that accounts for their national priorities and needs.  Further, it recognized civil society’s importance in increasing awareness of — and more effectively tackling — the threat of terrorism.

    Expressing concern over the alarming increase in terrorist attacks, fatalities and geographic spread of terrorism — particularly in the Sahel and West African coastal States — the Council also underscored the need for Member States to strengthen their criminal-justice, law-enforcement and border-control capacities.  Further, such States need to develop their capacity to investigate, prosecute, disrupt and dismantle trafficking networks to address the linkages between terrorism and organized crime.

    By the statement, the Council reiterated Member States’ obligations to prevent and suppress the financing of terrorist acts, suppress terrorist recruitment and eliminate the supply of weapons to terrorists.  Additionally, it urged States to consider the effects of counter-terrorism measures on exclusively humanitarian activities carried out by impartial humanitarian actors in a manner consistent with international humanitarian law.  The organ also reaffirmed that Member States must ensure that any measures taken to counter terrorism comply with the Charter of the United Nations and international law.

    Acknowledging African Union efforts to strengthen institutional counter-terrorism architecture and enhance intelligence-sharing, the Council encouraged Member States and relevant international organizations to contribute to bolstering the capacity of the Union in conflict prevention, crisis management and post-conflict stabilization.  It also commended the progress made in the partnership between the African Union and the United Nations, stressing that this should further develop into a systematic, operational and strategic partnership.

    Further, the Council — recognizing the terrorist threat in Africa — underlined the importance of prompt, effective implementation of its resolutions related to the fight against terrorism, as well as all sanctions measures against designated individuals, groups, undertakings and entities associated with Da’esh, Al-Qaida and their affiliates.  Additionally, it recognized the significant need to build and strengthen Member States’ capacities — on their request and with a view to supporting national ownership — to more effectively counter terrorism and terrorist financing.

    MIL OSI United Nations News –

  • MIL-OSI Security: Feeding our Future Defendant Sentenced to 17 Years in Prison For His Role in $250 Million Fraud Scheme

    Source: Office of United States Attorneys

    MINNEAPOLIS – A Bloomington man has been sentenced to 210 months in prison followed by three years of supervised release for his role in a $250 million fraud scheme that exploited a federally funded child nutrition program during the COVID-19 pandemic, announced Acting U.S. Attorney Lisa D. Kirkpatrick. The defendant was also ordered to pay restitution in the amount of $47,920,514.

    “The defendant committed a brazen fraud that shamelessly stole taxpayer money intended to feed children during a global pandemic. He lined his pockets, here and abroad, with millions,” said Acting U.S. Attorney Kirkpatrick. “As the Court found, he doubled down on his crimes by obstructing justice. This significant sentence should serve as a clear warning to anyone who would seek to exploit and defraud government programs. You will be held accountable.”

    As proven at trial, Mukhtar Mohamed Shariff, 34, and his co-defendants devised and carried out a multi-million fraud scheme to defraud the Federal Child Nutrition Program. As the chief executive officer of Afrique Hospitality Group, Shariff obtained, misappropriated, and laundered millions of dollars in program funds that were intended as reimbursements for the cost of serving meals to children. Their scheme was accomplished by exploiting changes in the nutrition program intended to ensure underserved children received adequate nutrition during the COVID-19 pandemic. Shariff and his co-defendants created and submitted fraudulent meal count sheets purporting to document the number of children and meals served at each site and false invoices purporting to document the purchase of food to be served to children at the sites. The conspirators also submitted fake attendance rosters purporting to list the names and ages of the children receiving meals at the sites each day. These rosters were fabricated and created using fake names. 

    The Federal Child Nutrition Program, administered by the U.S. Department of Agriculture (USDA), is a federally funded program designed to provide free meals to children in need. The USDA’s Food and Nutrition Service administers the program throughout the nation by distributing federal funds to state governments. In Minnesota, the Minnesota Department of Education (MDE) administers and oversees the Federal Child Nutrition Program. Meals funded by the Federal Child Nutrition Program are served by “sites.” Each site participating in the program must be sponsored by an authorized sponsoring organization. Sponsors must submit an application to MDE for each site. Sponsors are also responsible for monitoring each of their sites and preparing reimbursement claims for their sites. The USDA then provides MDE federal reimbursement funds on a per-meal basis. MDE provides those funds to the sponsoring agency who, in turn, pays the reimbursements to the sites under its sponsorship. The sponsoring agency retains 10 to 15 percent of the funds as an administrative fee.

    During the COVID-19 pandemic, the USDA waived some of the standard requirements for participation in the Federal Child Nutrition Program. Among other things, the USDA allowed for-profit restaurants to participate in the program, and it allowed for off-site food distribution to children outside of educational programs.

    Following a seven-week trial in U.S. District Court before Judge Nancy E. Brasel in June 2024, Shariff was convicted of one count of conspiracy to commit wire fraud, one count of wire fraud, one count of conspiracy to commit money laundering, and one count of money laundering. In handing down the sentence today, Judge Brasel commented that Shariff’s conduct showed a “staggering lack of respect for the law,” and that taxpayers were “outraged by the brazenness of the crime.”

    The case is the result of an investigation by the FBI, IRS – Criminal Investigations, and the U.S. Postal Inspection Service. 

    Assistant U.S. Attorneys for the District of Minnesota Joseph H. Thompson, Harry M. Jacobs, Matthew S. Ebert, and Daniel W. Bobier prosecuted the case. Assistant U.S. Attorney Craig Baune is handling the seizure and forfeiture of assets.

    MIL Security OSI –

  • MIL-OSI USA: 01.24.2025 Sen. Cruz Files Amicus Brief in State Sovereignty Energy Case

    US Senate News:

    Source: United States Senator for Texas Ted Cruz
    WASHINGTON, D.C. – U.S. Sen. Ted Cruz (R-Texas) filed an amicus brief supporting the State of Texas in the upcoming U.S. Supreme Court cases of NRC v. Texas and ISP v. Texas. The cases before the Court involve the Nuclear Regulatory Commission’s (NRC) authority to license a consolidated interim storage facility for spent nuclear fuel in Andrews County, Texas, a decision challenged by the state of Texas and Governor Abbott. The nuclear fuel facility will be located directly on top of the Permian Basin, which stretches across Southwest Texas and Southeast New Mexico.
    Upon filing the amicus brief, Sen. Cruz said, “The Permian Basin is our nation’s leading oil and gas-producing region and a critical pillar of America’s energy security.
    “I support Attorney General Ken Paxton in opposing the NRC’s federal overreach and will keep fighting to ensure West Texas remains the energy powerhouse it is today.”
    Sen. Cruz was joined by Sen. John Cornyn, Reps. Jody Arrington (R-Texas-19), Henry Cuellar (D-Texas-28), August Pfluger (R-Texas-11), and Ronny Jackson (R-Texas-13) in filing the amicus brief.
    Read the amicus brief for NRC vs. Texas and ISP v. Texas here.
    BACKGROUND
    The NRC issued a license to ISP to construct and operate an interim storage facility designed to hold up to 5,000 metric tons of spent nuclear fuel and high-level radioactive waste. The facility would temporarily store the waste from various nuclear reactors across the United States. Texas argues that the NRC’s actions exceed its statutory authority under federal law, specifically the Nuclear Waste Policy Act (NWPA) of 1982, which governs the disposal of spent nuclear fuel and prioritizes permanent geologic repositories over temporary facilities.
    The Court’s review of the case will address fundamental questions about the scope of the NRC’s authority and the balance of power between state and federal governments. This decision will have far-reaching implications in balancing power between states and federal agencies in regulating hazardous materials.

    MIL OSI USA News –

  • MIL-OSI USA: Kaine Statement on Passing of Close Friend & Mentor Henry Marsh

    US Senate News:

    Source: United States Senator for Virginia Tim Kaine

    WASHINGTON, D.C. – Today, U.S. Senator Tim Kaine (D-VA) released the following statement regarding the passing of his friend and mentor Henry Marsh:

    “My heart is heavy with grief and full of gratitude that I had the chance to know Henry Marsh—a truly exceptional person. A born-and-raised Richmonder who become active in the civil rights movement before he even graduated from Maggie L. Walker High School, Henry never waited even for a moment to do all he could to serve and improve his community. After he graduated from Virginia Union University, earned a law degree from Howard University, and answered the call to serve in the United States Army, he returned home to work as a civil rights lawyer—tackling crucial cases relating to desegregation and equality in employment. He then made history as Richmond’s first African American mayor. As a former mayor myself, I know how tough that job is and have the deepest appreciation and admiration for how well he did it. And he didn’t stop there—he went on to serve in the Virginia Senate and later as a commissioner of the Virginia Department of Alcoholic Beverage Control Board. Any single one of Henry’s accomplishments would be enough cause to be proud, but he never stopped looking for new opportunities to serve. I’m honored to have called him a friend and mentor and would never have been elected to any office if it weren’t for him. I will be praying for his family and all who knew and loved him.”

    MIL OSI USA News –

  • MIL-OSI USA: Kaine Statement on Passing of Close Friend & Mentor Henry Marsh

    US Senate News:

    Source: United States Senator for Virginia Tim Kaine

    WASHINGTON, D.C. – Today, U.S. Senator Tim Kaine (D-VA) released the following statement regarding the passing of his friend and mentor Henry Marsh:

    “My heart is heavy with grief and full of gratitude that I had the chance to know Henry Marsh—a truly exceptional person. A born-and-raised Richmonder who become active in the civil rights movement before he even graduated from Maggie L. Walker High School, Henry never waited even for a moment to do all he could to serve and improve his community. After he graduated from Virginia Union University, earned a law degree from Howard University, and answered the call to serve in the United States Army, he returned home to work as a civil rights lawyer—tackling crucial cases relating to desegregation and equality in employment. He then made history as Richmond’s first African American mayor. As a former mayor myself, I know how tough that job is and have the deepest appreciation and admiration for how well he did it. And he didn’t stop there—he went on to serve in the Virginia Senate and later as a commissioner of the Virginia Department of Alcoholic Beverage Control Board. Any single one of Henry’s accomplishments would be enough cause to be proud, but he never stopped looking for new opportunities to serve. I’m honored to have called him a friend and mentor and would never have been elected to any office if it weren’t for him. I will be praying for his family and all who knew and loved him.”

    MIL OSI USA News –

  • MIL-OSI USA: TIME: Warren’s Plan for Musk to Cut U.S. Spending

    US Senate News:

    Source: United States Senator for Massachusetts – Elizabeth Warren
    January 23, 2025
    If Elon Musk is serious about cutting government waste, fraud, and abuse, he may find help in an unusual place: Elizabeth Warren.
    While many Democrats in Congress want nothing to do with the billionaire who spent a fortune to help elect Donald Trump, the Massachusetts Senator says she wants to find common ground with Musk in his new role leading the White House’s Department of Government Efficiency (DOGE). In a letter she sent him Thursday morning, Warren proposed 30 recommendations for eliminating $2 trillion in federal spending over the next decade, according to a copy of the letter obtained by TIME. The list includes several of the progressive icon’s long-held policy fixations: renegotiating Department of Defense (DOD) contracts that independent analysts have found waste billions each year; reforming the Medicare Advantage insurance program and allowing Medicare to negotiate lower costs of prescription drugs; and closing tax loopholes for corporations and the wealthiest earners.
    It’s not clear how Musk will respond—but he’s in need of suggestions. Earlier this month, he walked back his pledge of finding $2 trillion in federal savings. That may be due to political constraints. Because Trump vowed on the campaign trail not to touch Medicare and Social Security, and Republicans refuse to cut military spending, DOGE will have to find less conventional ideas to fulfill Musk’s budget-slashing fantasy. 
    For years, Democrats and Republicans alike have wanted to curb wasteful government spending. While much of Washington recoils at Trump’s disruptive, norm-shattering second-term agenda, some see an opportunity for strange bedfellows to emerge. “In the interest of taking aggressive, bipartisan action to ensure sustainable spending, protect taxpayer dollars, curb abusive practices by giant corporations, and improve middle-class Americans’ quality of life,” Warren writes to Musk, “I would be happy to work with you on these matters.”
    …
    Read the full article here.
    By:  Eric CortellessaSource: TIME

    MIL OSI USA News –

  • MIL-OSI United Nations: Statement by the Secretary-General – on detention of United Nations personnel in Yemen [scroll down for Arabic version]

    Source: United Nations

    I strongly condemn the arbitrary detention by the Houthi de facto authorities on 23 January of seven additional United Nations personnel in areas under their control.

    I demand the immediate and unconditional release of those detained on Thursday, as well as the personnel from the United Nations, international and national non-governmental organizations, civil society and diplomatic missions arbitrarily detained since June 2024 and those held since 2021 and 2023. Their continued arbitrary detention is unacceptable.

    The personnel of the UN and its partners must not be targeted, arrested or detained while carrying out their duties for the UN for the benefit of the people they serve. The safety and security of UN personnel and property must be guaranteed.

    The continued targeting of UN personnel and its partners negatively impacts our ability to assist millions of people in need in Yemen. The Houthis must deliver on their previous commitments and act in the best interests of the Yemeni people and the overall efforts to achieve peace in Yemen.

    The United Nations will continue to work through all possible channels to secure the safe and immediate release of those arbitrarily detained. I welcome the collective support of international partners, NGOs and all those working to support the people of Yemen in these efforts.

    *****

     بيان صادر عن الأمين العام – حول احتجاز موظفي الأمم المتحدة في اليمن

    إنني أُدين بشدة الاحتجاز التعسفي الذي قامت به سلطات الأمر الواقع الحوثية في 23 كانون الثاني/يناير لسبعة موظفين إضافيين من الأمم المتحدةفي المناطق الخاضعة لسيطرتها.

    أُطالب بالإفراج الفوري وغير المشروط عن الذين تم احتجازهم يوم الخميس، وكذلك عن موظفي الأمم المتحدة والمنظمات غير الحكومية الدوليةوالوطنية والمجتمع المدني والبعثات الدبلوماسية المحتجزين تعسفيًا منذ حزيران/يونيو 2024، بالإضافة إلى موظفي الأمم المتحدة المحتجزين منذعامي 2021 و2023. إن استمرار احتجازهم التعسفي أمر غير مقبول. 

    لا ينبغي استهداف موظفي الأمم المتحدة وشركائها أو اعتقالهم أو احتجازهم أثناء قيامهم بواجباتهم التابعة للأمم المتحدة لصالح الناس الذين يستفيدونمن خدماتهم. يلزم ضمان سلامة وأمن موظفي الأمم المتحدة وممتلكاتها.

    يؤثر الاستهداف المستمر لموظفي الأمم المتحدة وشركائها سلبا على قدرتنا على مساعدة ملايين الأشخاص المحتاجين في اليمن. أدعو الحوثيين إلىوقف عرقلة الجهود الإنسانية التي تبذلها الأمم المتحدة وشركاؤها لمساعدة الملايين من ذوي الاحتياج في اليمن. يجب على الحوثيين الوفاءبالتزاماتهم السابقة والتصرف بما يحقق مصلحة الناس في اليمن ومجمل الجهود المبذولة لتحقيق السلام في اليمن.

    ستواصل الأمم المتحدة العمل عبر جميع القنوات الممكنة لكفالة الإفراج الآمن والفوري عن المحتجزين تعسفا. اُقدّر الدعم الجماعي من الشركاءالدوليين والمنظمات غير الحكومية وجميع من يعملون من أجل دعم الناس في اليمن في هذه الجهود.

    نيويورك، 24 كانون الثاني/يناير 2025

    MIL OSI United Nations News –

  • MIL-OSI Canada: Alberta holds Ottawa accountable for its responsibilities: Ministers McIver and Nixon

    Source: Government of Canada regional news (2)

    MIL OSI Canada News –

  • MIL-OSI Africa: Statement by the Secretary-General – on detention of United Nations personnel in Yemen [scroll down for Arabic version]

    Source: United Nations – English

    strongly condemn the arbitrary detention by the Houthi de facto authorities on 23 January of seven additional United Nations personnel in areas under their control.

    I demand the immediate and unconditional release of those detained on Thursday, as well as the personnel from the United Nations, international and national non-governmental organizations, civil society and diplomatic missions arbitrarily detained since June 2024 and those held since 2021 and 2023. Their continued arbitrary detention is unacceptable.

    The personnel of the UN and its partners must not be targeted, arrested or detained while carrying out their duties for the UN for the benefit of the people they serve. The safety and security of UN personnel and property must be guaranteed.

    The continued targeting of UN personnel and its partners negatively impacts our ability to assist millions of people in need in Yemen. The Houthis must deliver on their previous commitments and act in the best interests of the Yemeni people and the overall efforts to achieve peace in Yemen.

    The United Nations will continue to work through all possible channels to secure the safe and immediate release of those arbitrarily detained. I welcome the collective support of international partners, NGOs and all those working to support the people of Yemen in these efforts.

    *****

     بيان صادر عن الأمين العام – حول احتجاز موظفي الأمم المتحدة في اليمن

    إنني أُدين بشدة الاحتجاز التعسفي الذي قامت به سلطات الأمر الواقع الحوثية في 23 كانون الثاني/يناير لسبعة موظفين إضافيين من الأمم المتحدةفي المناطق الخاضعة لسيطرتها.

    أُطالب بالإفراج الفوري وغير المشروط عن الذين تم احتجازهم يوم الخميس، وكذلك عن موظفي الأمم المتحدة والمنظمات غير الحكومية الدوليةوالوطنية والمجتمع المدني والبعثات الدبلوماسية المحتجزين تعسفيًا منذ حزيران/يونيو 2024، بالإضافة إلى موظفي الأمم المتحدة المحتجزين منذعامي 2021 و2023. إن استمرار احتجازهم التعسفي أمر غير مقبول. 

    لا ينبغي استهداف موظفي الأمم المتحدة وشركائها أو اعتقالهم أو احتجازهم أثناء قيامهم بواجباتهم التابعة للأمم المتحدة لصالح الناس الذين يستفيدونمن خدماتهم. يلزم ضمان سلامة وأمن موظفي الأمم المتحدة وممتلكاتها.

    يؤثر الاستهداف المستمر لموظفي الأمم المتحدة وشركائها سلبا على قدرتنا على مساعدة ملايين الأشخاص المحتاجين في اليمن. أدعو الحوثيين إلىوقف عرقلة الجهود الإنسانية التي تبذلها الأمم المتحدة وشركاؤها لمساعدة الملايين من ذوي الاحتياج في اليمن. يجب على الحوثيين الوفاءبالتزاماتهم السابقة والتصرف بما يحقق مصلحة الناس في اليمن ومجمل الجهود المبذولة لتحقيق السلام في اليمن.

    ستواصل الأمم المتحدة العمل عبر جميع القنوات الممكنة لكفالة الإفراج الآمن والفوري عن المحتجزين تعسفا. اُقدّر الدعم الجماعي من الشركاءالدوليين والمنظمات غير الحكومية وجميع من يعملون من أجل دعم الناس في اليمن في هذه الجهود.

    نيويورك، 24 كانون الثاني/يناير 2025

    MIL OSI Africa –

  • MIL-OSI USA: Senators Marshall, Tuberville, and Colleagues Introduce the FARM Act

    US Senate News:

    Source: United States Senator for Kansas Roger Marshall

    Washington, D.C. – U.S. Senators Roger Marshall, M.D., Tommy Tuberville (R-AL), Rick Scott (R-FL), Eric Schmitt (R-MO), Kevin Cramer (R-ND), John Fetterman (D-PA), Katie Britt (R-AL), Marsha Blackburn (R-TN), Deb Fischer (R-NE), Steve Daines (R-MT), John Hoeven (R-ND), Cynthia Lummis (R-WY), and Tim Sheehy (R-MT) introduced the bipartisan, bicameral Foreign Adversary Risk Management (FARM) Act. 
    The FARM Act will permanently add the U.S. Secretary of Agriculture to the Committee on Foreign Investments in the United States (CFIUS), the governmental body that oversees the vetting process of foreign investment and acquisition of American companies, a move to prevent improper foreign interference and disruption to the U.S. agriculture industry.
    “Food Security is National Security, it’s high time that we start recognizing this before it is too late,” said Senator Marshall. “The Secretary of Agriculture needs a seat at the table to help the Committee on Foreign Investment in the United States vet foreign agricultural investments like land. This committee currently does not directly consider the needs of the agriculture industry, the FARM Act changes that.”
    “Over the last decade, we’ve seen a surge of American farmland purchases from our foreign adversaries,” said Senator Tuberville. “These foreign investments are now reaching every piece of the very large puzzle that makes up our agriculture industry, from farming and processing to packaging and shipping. Food security is national security, and we cannot allow our adversaries to have a foot in the door to our critical supply chains. We must prioritize oversight of foreign investment in our food supply chains, especially from Russia, China, North Korea, and Iran. This starts with giving the agriculture community a permanent seat at the table on CFIUS. As Alabama’s voice on the Senate Ag Committee, I will keep fighting to secure our ag supply chains so that our agriculture community can continue to put food on the table for American families.”
    “Pennsylvania is home to about 50,000 farms and the farmers who power them already face enough challenges to stay competitive. They shouldn’t also have to compete with foreign adversaries buying up American farmland,” said Senator John Fetterman. “America’s farms are critical infrastructure, and CFIUS exists to protect our critical infrastructure from foreign threats. So, adding the Secretary of Agriculture is just plain common sense. I’ve said it before, and I’ll say it again: foreign adversaries have no business owning American farmland. This bill makes that clear and I’m proud to partner with my colleague to get it done.”
    Two previous AG secretaries under Democrat administrations have expressed support for making the Secretary of Agriculture a permanent member of CFIUS. U.S. Representative Ronny Jackson (R-TX-13) reintroduced the bipartisan, companion legislation in the House of Representatives. 
    “America’s agricultural industry is no exception to the increasing national security threats our country faces,” said Rep. Jackson. “Biden’s failed leadership allowed unchecked foreign influence, particularly from the Chinese Communist Party, to interfere with and attempt to control our food supply chain. Representing Texas’s top agricultural-producing district, I am committed to ensuring our nation’s food production remains free from foreign manipulation. This is why I am proud to reintroduce the FARM Act, putting America first and ensuring that our agricultural industry remains robust, secure, and free from foreign interference. Thank you to Senator Tuberville for leading companion legislation in the Senate, and we hope this bipartisan legislation, which is crucial to our food security, will move forward quickly to President Trump’s desk.” 
    Read the bill HERE.
    BACKGROUND:
    Over the past few years, the United States has experienced a rapid increase in foreign investment in the agricultural sector, particularly from China. Growing foreign investment in agriculture and other essential industries, like health care and energy, threaten our country’s national security. As Alabama’s voice on the Senate AG Committee, Senator Tuberville has been sounding the alarm about foreign ownership of American farmland and other elements of our food supply chain.
    According to USDA data from December 2023, foreign investors own approximately 45 million acres of U.S. agricultural land. This represents an increase of over 1.5 million acres in one calendar year. Foreign ownership of U.S. agricultural land increased modestly from 2012 to 2017 at an average increase of 0.6 million acres per year. However, since 2017, this number skyrocketed to an annual average of 2.6 million acres annually. Additionally, between 2010 and 2021, entities or individuals from China increased their ownership of U.S. agricultural land more than twentyfold, from 13,720 acres to 383,935 acres. Alabama has the fourth-highest amount of foreign-owned agricultural land in the United States, with 2.2 million acres, most of which is forestland.
    CFIUS is authorized to oversee and review foreign investment and ownership in domestic businesses as it relates to national security. Currently, the Committee does not directly consider the needs of the agriculture industry when reviewing foreign investment and ownership in domestic businesses. 
    Specifically, the FARM Act would:
    add the Secretary of Agriculture as a member to CFIUS;
    protect the U.S. agriculture industry from foreign control through transactions, mergers, acquisitions, or agreements; designate agricultural supply chains as critical infrastructure and critical technologies,
    and require a report to Congress on current and potential foreign investments in the U.S. agricultural industry from USDA and the Government Accountability Office (GAO)

    MIL OSI USA News –

  • MIL-OSI United Nations: Strongly Condemning Houthi De Facto Authorities’ Arbitrary Detention of United Nations Personnel in Yemen, Secretary-General Demands Their Immediate, Unconditional Release

    Source: United Nations General Assembly and Security Council

    The following statement by UN Secretary-General António Guterres was issued today:

    I strongly condemn the arbitrary detention by the Houthi de facto authorities on 23 January of seven additional United Nations personnel in areas under their control.

    I demand the immediate and unconditional release of those detained on Thursday, as well as the personnel from the United Nations, international and national non-governmental organizations, civil society and diplomatic missions arbitrarily detained since June 2024 and those held since 2021 and 2023.  Their continued arbitrary detention is unacceptable.

    The personnel of the UN and its partners must not be targeted, arrested or detained while carrying out their duties for the UN for the benefit of the people they serve.  The safety and security of UN personnel and property must be guaranteed.

    The continued targeting of UN personnel and its partners negatively impacts our ability to assist millions of people in need in Yemen.  The Houthis must deliver on their previous commitments and act in the best interests of the Yemeni people and the overall efforts to achieve peace in Yemen.

    The United Nations will continue to work through all possible channels to secure the safe and immediate release of those arbitrarily detained.  I welcome the collective support of international partners, non-governmental organizations and all those working to support the people of Yemen in these efforts.

    MIL OSI United Nations News –

  • MIL-OSI USA: Commissioner Kristin Johnson’s Keynote Address at the University of Chicago Law School: Charting the Future of Financial Regulation

    Source: US Commodity Futures Trading Commission

    Good afternoon. Thank you to Dean Miles, Professor Birdthistle and the broader University of Chicago Law School for the kind invitation to join you for today’s event. We can often learn a great deal about the future by looking at the past. About 4,000 years ago (c. 2000 B.C.E.), Phoenician sailors developed charts and observations of the Sun and stars. Early mariners’ compasses were inaccurate or inconsistent because they lacked an understanding of magnetic variation. Later, the astrolabe, sextant, chip log, gyroscopic compass, radar, and GPS replaced earlier, primitive tools.
    In remarks earlier this week at a blockchain event at the World Economic Forum in Davos, I explored rapidly advancing technologies—an area that has long been a central focus of my contributions as a lawyer in private practice, in-house counsel, an academic, and most recently, a financial market regulator at the CFTC.[1] Today, on the eve of the Commodity Futures Trading Commission’s (CFTC) 50th Anniversary, we stand, once again on the frontier—a frontier of technological development in markets—including increasingly advanced computing, predictive analytical models, and algorithmic trading, and digital trading, clearing and settlement.
    During the most recent past administration, the Securities Exchange Commission Divisions of Trading and Markets and of Investment Management announced rule amendments to shorten the standard settlement cycle for most broker-dealer transactions from two business days after the trade date (“T+2”) to one business day after the trade date (“T+1”)[2] marking faster, more efficient, less costly trading ushered in, in part, by digitization of trading market infrastructure. Many of our largest market participants have partnered with technology firms to migrate exceptional volumes of data including orders, quotes, trades, cancellations and settlement data to cloud-based storage.
    Executive Orders this week on AI and digital assets or cryptocurrency indicate the new administration’s intent to focus on these new technologies. As we prepare to hear from the new administration regarding solutions to address the intricacies of balancing responsible innovation with the critical goals of ensuring market integrity, market stability, and protection of vulnerable market participants, let’s keep top-of-mind the lessons of the past and the benefits of well-honed regulatory tools which aid us in navigating the sea of technological innovation set forth before us.
    Today, we will consider the two specific technologies at the center of the new administration’s Executive Orders issued yesterday—AI and crypto.
    Artificial Intelligence in Financial Markets
    Financial markets regulation is often defined by two salient questions—what should we regulate and, if we regulate, what should be the scope of regulation. Knowing that crypto technologies are a focus of my remarks, some of you might demand that we tailor these questions and simply focus on the legal standard for distinguishing among regulated products, namely securities and commodities, citing the debate surrounding the legal standard articulated by the Supreme Court of the United States in SCOTUS’s now (in)famous 1946 decision S.E.C. vs Howey,[3] explaining that investment contracts that involve an investment of money in a common enterprise with an expectation of profits to be derived from the efforts of others.
    Leaving this question aside for a moment and focusing on the macro issue, I would note an underlying premise of these two fundamental questions. It is presumed that regulators understand both the products and the markets that are the subject of regulation—that we are clear on the benefits as well as the risks and limitations posed by products, processes, and market structures introduced in our markets. In other words, we are well-informed and deeply engaged in discussions regarding the attributes of what we regulate. I would also share that, for me, this understanding informs “how” I think about regulation.
    The Ever-Expanding Universe of AI Use Cases
    AI has long served financial services firms. For decades, firms have integrated standard algorithms and earlier forms of machine learning in both external client-facing applications as well as internal operations.[4] Developers tout the potential for more nascent uses of AI to enhance critical risk management tools, “inform[ing] trading strategies by identifying patterns, optimizing execution, managing portfolio workflows, and assessing risk-return tradeoffs.”[5] According to proponents, deep learning through neural networks holds promise to simulate the multi-layered, complex decision-making capabilities of the human brain.
    Several years ago, the CFTC identified a number of AI use cases in our regulated markets:

    Trading (including market intelligence, robo-advisory, sentiment analysis, algorithmic trading, smart routing, and transactions)
    Risk Management (including margin and capital requirements, trade monitoring, fraud detection)
    Risk Assessments and Hedging
    Resource Optimization (including energy and computer power)
    RegTech – Applications that enhance or improve compliance and oversight activities (including surveillance, reporting)
    Compliance (including identity and customer validation, anti-money laundering, regulatory reporting)
    Books and Records (including automated trade histories from voice or text)
    Data Processing and Analytics
    Cybersecurity and Resilience
    Customer Service.[6]

    The ever-expanding universe of AI use cases impacts investment, trading, surveillance and compliance, fraud detection, cyber security and supervision and enforcement across the derivatives and broader financial markets. In discussing AI’s application across financial markets, a Treasury report released last month stated “some financial firms have been experimenting with Generative AI tools—to explore the capabilities of AI in enhancing existing processes.”[7]
    “Robo-advisors offer personalized investment advisory services, while AI-driven insights improve forecasting and trading process automation.”[8] The Treasury Department’s recent report on Artificial Intelligence in Financial Services also notes that “financial firms are increasingly using AI—and particularly experimenting with Generative AI—internal business operations, including but not limited to risk management, regulatory compliance, treasury management, fraud detection, and back-office functions.”[9]
    Risks and Challenges Remain
    Attendant risks associated with the increase in use of AI, however, deserves equal attention, particularly for regulators tasked with safeguarding the integrity and stability of financial markets and the global economy. In testimony before Congress and academic work prior to my service at the Commission, I have encouraged regulators and market participants to also consider the following risks fraud and market manipulation, bias and discrimination, and privacy and data protection risks.[10]
    As the Financial Stability Board recently explained, “many of the potential risks of AI may seem new, but when you look beneath the surface, they are strikingly similar to traditional financial risks. Risks that we are familiar with. We already have frameworks to assess concentration risk, third party dependence and interconnectedness. This is good news. But potential new forms of interconnectedness in the financial system may emerge.”[11]
    To that end, it will be imperative for regulators to understand, track, and be poised to address emerging cybersecurity, third-party, concentration, and human capital risks.

    Cybersecurity

    Few would disagree that cybersecurity attacks and related disruptions pose one of the most pernicious and persistent threats to global financial markets.  In a timely and critical report on cybersecurity and AI, Treasury notes that “complex and persistent cyber threats continue to grow, and some experts from financial institutions believe the availability of advanced AI tools such as Generative AI will, at least initially, give threat actors an upper hand.”[12] Following a recent attack that disrupted clearing and settlement in derivatives markets in January of 2023, the Commission adopted a proposed rule enhancing operational resilience for swap dealers. In parallel to this rule, the Market Risk Advisory Committee that I sponsor, encouraged the Commission to consider comprehensive reform and consider the need for parallel reforms for our derivatives clearing organizations. While our principles-based approach to regulation enables dynamic application of existing rules, we must be ever vigilant to ensure that regulation is keeping pace and fit-for-purpose. I am looking forward to advancing these initiatives.

    Third-Party Risk Management

    Financial market regulators have, for several years, noted the challenges of relying on third parties for critical services. While regulated entities may have robust tools to monitor their own activities, our market participants increasingly partner with and rely upon third parties for critical services. Third party critical service providers may not have the comprehensive compliance processes and procedures the regulated entities have. The cascading impact of disruption may impact the many financial institutions that rely on the same critical third-party service providers, potentially engendering systemic risk concerns.[13]

    Concentration Risk

    The increasing reliance on third party service providers and the limited number of critical third-party service providers creates concentration risk. While the largest financial services firms in the world may have less exposure to these threats, smaller and medium sized firms without the technical expertise to develop high-cost technologies may need to rely on third parties and may also adapt these technologies in ways not anticipated by original developers, creating additional frictions.
    At the CFTC, we have been engaged in a longstanding dialogue with our market participants and our colleagues at other federal regulatory agencies to analyze and work to address these concerns—and we plan to continue the conversation.
    Last year, our staff released a request for comment, soliciting data regarding our market participants’ increasing use of AI.[14] We have not been alone in this work. The U.S. Department of Treasury similarly issued a request for information.[15] I worked with staff at the CFTC and staff at Treasury prior to and following these RFIs. The important results of these forms of engagement have only scratched the surface, given that “[o]ne of the most significant learnings from the comment responses is the reported ubiquity of AI usage—in particular traditional AI such as algorithms or machine learning—in virtually every function of financial firms, ranging from compliance management, internal operations, underwriting, customer service, treasury management, and product development and marketing.”[16]
    A Roadmap for the Future
    I have advanced, and will continue to advance, several policy initiatives over the course of my time at the Commission.
    Collaboration is Key

    Continued Dialogue

    There is still much work to be done. Continuing conversations with interested stakeholders across the board is the only way to ensure that we are learning in real time and incorporating that knowledge into sensible actions, both within the regulatory sphere and in the private sector.
    This dialogue “create[s] a framework that simultaneously serves two goals. The first is protecting the integrity of the trading markets so that they fairly serve the interests of participants and the larger public. The second is welcoming and encouraging the development and application of the newest technologies with responsible guardrails. In this way, we can ensure that these technologies help assure that the United States financial markets remain leaders in financial innovation in the years ahead.”[17]

    Interagency coordination

    In the December Treasury report, a brief discussion of the existing and proposed frameworks related to the use of AI in financial services is more than two pages long.[18] And that is just the first layer before adding state laws on AI, which can differ from each other and from federal frameworks, and finally, international standards.
    Of course, each regulator has its own specific mission and mandate. However, regulators must work together to harmonize regulation.[19]
    The Financial Stability Oversight Council echoes this recommendation in its annual report: “The Council supports interagency development of expertise to analyze and monitor potential systemic risks associated with the use of AI in the financial services sector, as well as further inter-agency discussions on developments in AI and associated financial stability risks.”[20]
    FSOC also recognizes the need for collaboration on a global scale. “The U.S. financial system is part of a global network and could potentially be vulnerable to shocks that originate abroad. The Council supports continued engagement with international counterparts on the risks and benefits of AI in financial services.”[21]
    Enhanced Resources for An Enhanced Mission

    Resources Must Keep Pace with Demand

    The CFTC is small but mighty, and continues to punch above its weight on all matters that come before it. In 2015 amidst the Dodd-Frank regulatory mandates, the CFTC had completed a greater percentage of its Dodd-Frank rules than other domestic financial regulatory agencies despite its smaller staff.[22] The same has been true in the past few years, as the Commission has taken on an increased role in addressing digital assets, while continuing its existing work, without any increase in budget.
    As the CFTC oversees increasingly complex markets, and must identify threats from increasingly sophisticated bad actors, it must have the resources to continue to do so effectively. I feel it important to reiterate that “the Commission would benefit from increased resources dedicated to enabling several of the Divisions within the Commission to prepare for and meet the challenges of regulating innovative trading, clearing, and settlement technologies, among other changes to operational infrastructure that merits consideration.”[23]

    An AI Fraud Task Force to Tackle Fraud Full Force

    I have expressly called for the CFTC Division of Enforcement to create an AI Fraud Task Force. While there may be divergent opinions on the benefits and risks engendered by AI, preventing bad actors from using AI to commit fraud against consumers and potentially market participants should be common ground. “Policing derivatives markets is one of the cornerstones of the CFTC’s mission. We must adapt our surveillance technologies and enforcement penalties to keep pace with the rapidly evolving innovation that characterizes global financial markets.”[24]
    A Future Framework for Digital Asset Markets 
    A second Executive Order released yesterday established a Presidential Working Group on Digital Asset Markets within the National Economic Council and appointed a Special Advisor for AI and Crypto to serve as Chairman of the PWG.
    Meaningful regulation in any market begins with identifying and developing standards to address certain risk management concerns. Many of the risks in the digital asset markets are well known.Learning from the lessons of the past few years, I am hopeful that any action to establish digital asset regulation include needed clarity regarding the application of rules and protections that safeguard the integrity of our markets. These regulations often also serve the organizations that implement them well.
    Digital asset market regulation should incorporate the same governance principles that have long governed our markets. Evidence of recent crises in digital asset markets underscore the benefits of strong corporate governance, rules governing conflicts of interest, and separation of customer property to preserve customer assets as part of a broader default management, recovery, and resilience strategy.

    Segregation of Customer Assets

    Our markets are built on trust. Any market that we supervise should have measures in place to protect the trust and confidence of customers and counterparties. Such recovery, resilience, and default risk management approaches should be applicable across markets that engender similar risks. 
    At the core these default-focused efforts create protections that preserve customer assets in the event of a liquidity or solvency crisis. The measures also guard against the commingling of customer funds witnessed in the 2022 crypto crises.[25] 
    The Commodity Exchange Act (CEA) expressly requires separation of customer funds in certain contexts. Section 4d(a)(2) of the CEA requires each FCM to segregate from its own assets all money, securities, and other property deposited by futures customers to margin, secure, or guarantee futures contracts and options on futures contracts traded on designated contract markets.[26] As the PGW takes up the mantle, preservation of customer capital must be a central and key issue. 

    Governance

    Basic corporate governance and internal controls should form part of the health and welfare of any market participant subject to the Commission’s supervision. Among other obligations, our regulations uniformly call for registered entities to have boards of directors, including independent directors, risk management committees, and executive officers that include chief compliance and risk officers who possess the requisite skills and expertise.[27]
    We continuously refine and update our governance standards as our markets evolve. In 2023, the Commission unanimously (please confirm) approved a final rule requiring derivatives clearing organizations (DCOs) to establish and consult with one or more risk management committees (RMCs) comprised of clearing members and customers of clearing members on matters that could materially affect the risk profile of the DCO. Section 5b(c)(2) of the CEA establishes core principles with which a DCO must comply in order to be registered and to maintain registration as a DCO (DCO Core Principles),1 and part 39 of the Commission’s regulations implement the DCO Core Principles. DCO Core Principle O requires a DCO to establish governance arrangements that are transparent, fulfill public interest requirements, and permit the consideration of the views of owners and participants.2 Regulation § 39.24 implements this aspect of Core Principle O by providing minimum requirements regarding the substance and form of a DCO’s governance arrangements.
    In the earlier referenced 2023 final risk governance rule, the Commission adopted minimum requirements for RMC composition and rotation, and required DCOs to establish and enforce fitness standards for RMC members. The Commission adopted requirements for DCOs to maintain written policies and procedures governing the RMC consultation process and the role of RMC members. Finally, the Commission adopted requirements for DCOs to establish one or more market participant risk advisory working groups (RWGs) that must convene at least twice per year, and adopt written policies and procedures related to the formation and role of the RWG.

    Compliance with AML/KYC laws and regulations

    Our experience regulating financial markets has demonstrated that strong AML/KYC regulations protects not only market integrity and stability, but also national security interests. These regulations are foundational and define the scope of who is permitted to actively engage our markets and, in many instances, the broader financial services and banking sector of our economy.
    Concluding with A Word Collaboration
    One of the greatest strengths of our government and, more specifically, the federal agencies that supervise many of the largest global financial market participants in the world is the intellectual leadership that our market regulators demonstrate. Our financial market regulations enhance efficiency, reduce the costs of raising capital, attract global investments, and serve as a model for regulation around the world. Our successful regulation is due, in large part, to our engagement with markets and the global regulatory community.
    As I noted in keynote remarks last year at NYU’s AI Convening, it is imperative for government and regulators to demonstrate a deep and abiding commitment to developing well-informed, research-based, data-driven regulatory solutions that are well-tailored, fit-for-purpose interventions. This requires a multi-stakeholder, public-private partnership that may include for advancing technologies developers, market participants, academics, government and industry researchers, diverse regulators across the financial markets, and public interest organizations.[28]
    Last year, in response to a staff advisory on the use of AI in CFTC-regulated markets,[29] I noted that “[w]orking in partnership with market participants, we are able to enhance our ability to accomplish our mission of ensuring market stability and market integrity. .”[30]
    I started this week in Davos, Switzerland, where I shared remarks at a conference about blockchain and AI, and about how the World Economic Forum Annual Meeting theme of “Collaboration for the Intelligent Age” is relevant to my work at the CFTC on these topics. World leaders in government, business, and civil society are still there, discussing the most pressing issues facing our global markets and broader societies, and trying to solve problems on a global scale. Nowhere is that more salient than in the United States, as we are close out the first week of a new executive administration.
    When we reflect on the future of finance, we must think back to the lessons learned as markets navigated sustained periods of extreme distress. Collaboration has served as one of the most important tools in our toolkit.
    The creation of the Financial Stability Oversight Council has proved a valuable source for convening the heads of financial market regulators across our government can carefully identifying and addressing anticipated systemic risk concerns. In addition to collaboration across market and prudential regulators, efforts by the SEC and CFTC to navigate implementation of the Dodd-Frank Act rules offers a second example of successful collaboration among market regulators. The discussions regarding regulation of AI, crypto, and other novel and emerging technologies should benefit from similar collaboration across regulators authority and across the aisle.
    Navigating difficult conditions requires focus, discipline, leadership and a steady hand at the helm. In recent years, our markets have navigated the onset of a global pandemic, geopolitical conflicts, sustained inflation.
    I am committed to working together to achieve this goal. As we enter this new year and new administration, collaboration will be as important as ever to achieve the benefits of scale and take advantage of all that innovation has to offer financial markets.
    Simply stated, and echoing this year’s World Economic Forum theme at Davos, we must find a path to collaboration in an intelligent age.

    [3] 328 U.S. 293 (1946).

    [5] Treasury December Report at 15.

    [7] Treasury December Report at 14.

    [8] Treasury December Report at 15.

    [9] Treasury December Report at 16.

    [13] Treasury December Report at 25.

    [16] See Treasury December Report.

    [18] Treasury December Report at 30.

    [19] “While many financial firms operating in the financial services sector are subject to laws and regulations that are technology-agnostic and can apply to AI technologies, respondents noted different regulatory standards among financial firms for the same activities.” Treasury December Report at 28.

    [25] See 1, 17 C.F.R. Pt. 1 (segregation of futures customer funds); 17 C.F.R. Pt. 22 (segregation of swaps customer funds); 17 C.F.R. Pt. 30 (segregation of foreign futures customer funds).

    [26] 7 U.S.C. § 6d(a)(2).

    MIL OSI USA News –

  • MIL-OSI Security: Former CEO of Startup Software Company Sentenced to 30 Months in Federal Prison for Tax Scheme

    Source: Office of United States Attorneys

              CONCORD – A Bedford man was sentenced yesterday in federal court for his scheme to willfully fail to pay more than $14 million in payroll taxes owed to the IRS and failing to file and pay his personal taxes, Acting U.S. Attorney Jay McCormack and Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division announce.

              Andrew Park, 49, was sentenced by U.S. District Court Judge Landya McCafferty to 30 months in federal prison and three years of supervised release. She also ordered Park to pay $639,821.78 in restitution, the amount of tax and interest not repaid at the time of sentencing, to the United States. She also ordered Park pay a fine of $15,000. In July 2024, Park pleaded guilty to willful failure to pay over payroll taxes and willful failure to file a tax return.

              Park was the co-founder and CEO of a startup technology company. Park was responsible for all financial matters related to the company, including for filing the company’s quarterly payroll tax returns and collecting and paying over Social Security, Medicare and income taxes withheld from the employees’ wages to the IRS, as well as the matching Social Security and Medicare taxes the company owed. Park was also responsible for collecting and paying over state and local taxes to those respective governments.

              From the company’s founding in 2014 through the third quarter of 2021, Park withheld federal, state and local taxes from the wages of the company’s employees but did not pay them over to the IRS and state and local tax authorities as required by law. He also did not pay over the portion of the payroll taxes that the company owed. Park did so even though a payroll service company that he hired to process the employees’ payroll notified him hundreds of times that the taxes were due, and four employees of the company complained that the Social Security Administration reported no withholdings had been paid over by the company on their behalf.

              From 2013 through 2020, Park also did not file individual tax returns as required by law, despite the fact that he paid himself a salary of approximately $250,000 each year.

              In total, Park caused a tax loss to the IRS exceeding $14.7 million.

              “For many years, the defendant took elaborate steps to defraud the IRS by not filing or paying his personal income taxes and by using his employees’ payroll taxes as free capital to grow his business. Then, when matters got out of hand, he falsely told his investors that his company was tax compliant to secure the funds to try to make the problem disappear,” said Acting United States Attorney Jay McCormack. “The substantial sentence imposed by the court reflects the seriousness of the defendant’s conduct and his disregard for our nation’s tax laws and sends a message to deter other would-be tax fraudsters who might seek to enrich themselves at the expense of honest taxpayers.”

              “Yesterday’s sentencing of Andrew Park is a strong reminder that payment of individual and business taxes is an obligation, not a choice,” said Thomas Demeo, Acting Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office. “When Andrew Park made the decision not to pay taxes for himself and his business, he also made the decision to cheat his employees and other honest taxpayers. Investigations of employment tax fraud is a priority for Internal Revenue Service Criminal Investigation as our system of taxation depends on everybody paying their fair share.”

             IRS-Criminal Investigation led the investigation. Assistant U.S. Attorney Matthew T. Hunter and Assistant Chief Eric Powers of the Tax Division are prosecuting the case.  

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    MIL Security OSI –

  • MIL-OSI Security: Kapolei Woman Indicted for Scheme to Defraud Unemployment Insurance and Pandemic Unemployment Assistance Programs

    Source: Office of United States Attorneys

    HONOLULU, Hawaii – Acting United States Attorney Kenneth M. Sorenson announced that on January 23, 2025, a federal grand jury returned a twelve-count indictment against Phoebe Trinh, also known as Phuong Trinh Ngoc Vo, 31, of Kapolei, Hawaii, charging Trinh with nine counts of wire fraud and three counts of aggravated identity theft in connection with fraudulent claims for unemployment insurance and pandemic unemployment assistance.

    The charges in the indictment pertain to both the unemployment insurance and Pandemic Unemployment Assistance (PUA) programs. In 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act created the PUA program to provide emergency unemployment payments to certain workers whose livelihoods were impacted by the COVID-19 pandemic, but who were ineligible for traditional state unemployment insurance benefits.

    The indictment alleges that Trinh submitted a false claim for unemployment insurance benefits to the Hawaii Department of Industrial and Labor Relations (DLIR) using its website, and that she repeatedly falsely certified under penalty of law that she was unemployed and not receiving income, despite knowing that her certifications were false, in order to receive benefit payments that she was not entitled to receive.

    The indictment further alleges that Trinh also submitted a claim to the Hawaii DLIR for PUA benefits on behalf of another individual, using that individual’s personal identifiable information, including name and social security number, without that individual’s knowledge and consent, in order to obtain  additional benefit payments to which she was not entitled. Trinh then allegedly repeatedly certified to Hawaii DLIR that the individual remained eligible for PUA benefit payments in order to receive the payments, without the individual’s knowledge and consent. The indictment alleges that Trinh directed Hawaii DLIR to transmit the benefit payments that were intended for the individual to her own bank account.

    According to the indictment, Trinh fraudulently obtained at least approximately $36,265 in unemployment insurance and PUA unemployment benefits to which she was not entitled.

    Each of the wire fraud counts carries a maximum penalty of 20 years in prison and a fine of up to $250,000. Each of the aggravated identity theft counts carries a sentence of two years in prison. An indictment is merely an accusation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

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

    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) at 866-720-5721 or online at http://www.justice.gov/DisasterComplaintForm.

    This case is being investigated by the U.S. Department of Labor Office of Inspector General. It is being prosecuted by Assistant U.S. Attorney Gregg Paris Yates.

    MIL Security OSI –

  • MIL-OSI Security: Man Sentenced to Over 17 Years in Prison for Shooting at Louisville Mayor

    Source: Office of United States Attorneys

    Louisville, KY — A Louisville man was sentenced today to 17 years and 6 months in federal prison for firing shots at current Louisville Mayor Craig Greenberg during Greenberg’s 2022 mayoral campaign.

    Acting Assistant Attorney General Antoinette T. Bacon of the Justice Department’s Criminal Division, U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge Michael E. Stansbury of the FBI Louisville Field Office, and Special Agent in Charge R. Shawn Morrow of the ATF Louisville Field Division made the announcement.

    According to court documents, on February 14, 2022, Quintez Brown, 24, walked into Greenberg’s campaign office and fired multiple shots at Greenberg while he was meeting with four staffers. The staffers were able to close and barricade the door, and Brown was apprehended several blocks from the shooting, carrying the firearm he used in a backpack. As part of his guilty plea, Brown admitted that he acted because Greenberg was running for mayor.

    In July 2024, Brown pleaded guilty to interfering with a federally protected activity and using and discharging a firearm in relation with a crime of violence. Brown’s term of imprisonment will be followed by five years of supervised release.

    There is no parole in the federal system.

    The FBI, ATF, and Louisville Metro Police Department investigated the case.

    Assistant U.S. Attorney Amanda Gregory for the Western District of Kentucky and Trial Attorney Alexander Gottfried of the Criminal Division’s Public Integrity Section prosecuted the case. Trial Attorney Barry Disney of the Criminal Division’s Mental Health Litigation Unit and Trial Attorney Jolee Porter of the Criminal Division’s Computer Crime and Intellectual Property Section provided substantial assistance to the prosecution.

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    MIL Security OSI –

  • MIL-OSI Security: Husband Pleads Guilty to Gunning Down Wife in D.C. Parking Lot

    Source: Office of United States Attorneys

                WASHINGTON – Wyatt Swan, 48, of Washington, D.C., pleaded guilty today to second-degree murder while armed for the 2024 murder of Teresa Francisco, 52, in Northeast Washington, announced U.S. Attorney Edward R. Martin Jr. and Chief Pamela Smith, of the Metropolitan Police Department (MPD).

                The Honorable Jason Park of the D.C. Superior Court scheduled sentencing for March 21, 2025.

                According to the government’s evidence, at approximately 1:00 p.m., on March 1, 2024, the defendant shot and killed his wife, Teresa Francisco, in and around their apartment complex in the 900 block of Eastern Avenue, Northeast. The defendant first shot his wife with a pistol in their shared apartment. When she ran for her life and hid in a nearby work van, the defendant pursued her and fired numerous shots into the van killing her.  The defendant then fled the scene evading police.

                The defendant was arrested on October 2, 2024, with the assistance of the Prince George’s County Police Department. The defendant has remained in custody since his arrest.

                In announcing the plea, U.S. Attorney Edward Martin Jr. and Chief Smith commended the work of those who investigated the case from the Metropolitan Police Department and expressed appreciation for the assistance provided by the Prince George’s County Police Department.  This case was investigated and prosecuted by Assistant U.S. Attorney Gregory Evans.

    MIL Security OSI –

  • MIL-OSI Asia-Pac: India’s WASH Innovations Lead Global Discourse at World Economic Forum 2025

    Source: Government of India

    India’s WASH Innovations Lead Global Discourse at World Economic Forum 2025

    Union Cabinet minister of Jal Shakti, Shri C.R. Patil delivers keynote address

    Posted On: 24 JAN 2025 3:29PM by PIB Delhi

    The India Pavilion at World Economic Forum 2025 in Davos hosted a global discussion titled “India’s WASH Innovation: Driving Global Impact in Climate and Water Sustainability.” The high-profile session organised at the backdrop of showcasing best practices adopted by the mission, highlighted India’s transformative achievements in water, sanitation, and hygiene (WASH), emphasizing their critical role in global climate resilience and sustainable development.

    Shri C. R. Patil, Hon’ble Union Minister of Jal Shakti, delivered the keynote address, presenting India’s journey in implementing the Swachh Bharat Mission (SBM) and Jal Jeevan Mission (JJM). These initiatives have been pivotal in improving sanitation coverage and providing safe drinking water to millions of rural households.

    Shri C. R. Patil, Hon’ble Union Cabinet Minister of Jal Shakti stated, “This marks a significant milestone, demonstrating to the world that under the visionary leadership of Hon’ble Prime Minister Shri Narendra Modi Ji, India is not only deeply committed to water conservation but is also driving a transformative revolution in this critical sector. Through large-scale efforts, the nation has significantly strengthened its water resources, setting a global benchmark for sustainable water management. Addressing water scarcity as a universal challenge, further aggravated by climate change, overpopulation, and overuse, calls for strengthened international cooperation and collective action.”

    The Hon’ble Minister further added, “Over the years, we have made remarkable progress in ensuring access to safe drinking water for rural India. In 2019, when Prime Minister Narendra Modi Ji launched the Jal Jeevan Mission (JJM) only 17% of rural households had functional tap water connections. However, today, a staggering 79.66% of rural households under the Jal Jeevan Mission have access to safe drinking water. This transformation is not just about providing water but also about changing lives—rural India is now saving 55 million hours per day on fetching water, enabling increased workforce participation and productivity, especially from women.”

    The World Economic Forum provides a platform for the ministry to showcase India’s groundbreaking initiatives in WASH innovation and climate resilience, emphasizing efforts to promote equitable and inclusive access to WASH services.

    The Swachh Bharat Mission and JJM demonstrate the effectiveness of large-scale, government-led initiatives in improving sanitation and water access. During the keynote address the Hon’ble Minister highlighted, “Through the focus on sanitation, the scheme has not only empowered women but also ensured their safety. According to WHO, the efforts made in the last decade towards improving sanitation have averted the deaths of 3 lakh children under the age of five.” Moreover, India’s focus on community engagement, behaviour change, and leveraging technology provides a model for other countries facing similar challenges.

    The keynote address was followed by two insightful panel discussions. The Water Panel, on the topic “Bringing Global Impact in Water Sustainability,” featured distinguished global experts, including from the NMCG, UNICEF and WaterAid, and shared innovative approaches and strategies for advancing global water sustainability.

    The Sanitation Panel, centred on the topic “Innovation in Global Health Through Sanitation,” brought together esteemed panelists from the Gates Foundation, Riseberg Ventures, BCHAR, Capgemini and actor and policy advocate Shri Vivek Oberoi who discussed the theme, highlighting groundbreaking innovations in sanitation and their impact on global health.

    The panel discussion at the India Pavilion spotlighted India’s WASH innovations and their significance in addressing global sustainability challenges, aiming to promote dialogue on public-private partnerships, technology-driven solutions, and strategies for scaling successful models globally.

    Discussions focused on India’s scalable models for sustainable water management, climate-resilient practices, and public-private collaborations. Key achievements, such as the elimination of open defecation, construction of over 95 million toilets under SBM, and widespread household tap water connections under JJM, have established India as a global leader in WASH initiatives.

    These efforts have transformed lives by improving health, education access, and economic opportunities through enhanced hygiene, sanitation, and reduced time spent fetching water. These achievements align with the broader goals of the World Economic Forum to foster collaborative solutions for climate action and water sustainability. The WEF emphasized the critical role of public-private partnerships in advancing the United Nations Sustainable Development Goals (UNSDG), particularly those focused on water and sanitation. Tackling the global water crisis, which threatens health, food security, economic growth, and biodiversity, requires collaborative action. India’s experience provides insightful lessons to inform and strengthen global WASH strategies.

    The session concluded with actionable insights and participant commitments, reaffirming India’s key role in advancing the Sustainable Development Goals (SDGs), specifically Clean Water and Sanitation (SDG 6) and Climate Action (SDG 13).

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    Dhanya Sanal K

    (Release ID: 2095791) Visitor Counter : 45

    MIL OSI Asia Pacific News –

  • MIL-OSI Asia-Pac: DPIIT signs MoU with a private firm to promote startup ecosystem in manufacturing sector

    Source: Government of India

    Posted On: 24 JAN 2025 12:38PM by PIB Delhi

    Department for Promotion of Industry and Internal Trade (DPIIT) has signed a MoU with the Bhaane Group, a subsidiary of Shahi Exports Pvt Ltd, the largest manufacturer of apparel. This collaboration will launch incubation programs for startups specialising in manufacturing, along with other production areas and foster relationships with international startup ecosystems. This is part of government’s thrust on promoting new manufacturing entrepreneurs in the country.

    Through its extensive experience, the private firm will support upcoming startups by providing access to market insights. The firm will facilitate them to create a holistic understanding of the workings of foreign markets, along with guidance on operational knowledge throughout the startup lifecycle.

    Shri Sanjiv, Joint Secretary, DPIIT said, “This collaboration serves a greater good – to nurture a thriving entrepreneurial spirit and strengthen India’s manufacturing landscape. By facilitating connections between startups and established players like Bhaane Group, we foster a mutually beneficial environment where innovation flourishes and Indian businesses achieve global success.”

    Anand Ahuja, CEO and Co-Founder of Bhaane Group said, “Global brands are eyeing investing in Indian startups, as it is one of the leading players in the South Asian market. DPIIT’s mission with Start Up India aligns with our outlook to foster innovation and global competitiveness among Indian startups.”

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    Abhisekh Dayal/Asmitabha Manna

    (Release ID: 2095722) Visitor Counter : 16

    MIL OSI Asia Pacific News –