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Category: Banking

  • MIL-OSI Europe: EIB Global strengthens partnership with Albania

    Source: European Investment Bank

    EIB

    • The EU bank has provided advisory support to facilitate the introduction of a green taxonomy in the country.
    • EIB Vice-President Robert de Groot and Albanian Minister for Europe and Foreign Affairs Hasani have signed a host country agreement to enhance mutual collaboration.
    • Since 2010, EIB Global has provided €420 million for key transportation, water supply, energy and private sector projects in Albania under the Team Europe initiative.

    European Investment Bank (EIB) Vice-President Robert de Groot has visited Albania, meeting with Prime Minister Edi Rama and high-level government and EU representatives to discuss and strengthen cooperation on priority areas such as energy, transport, regional connectivity and private sector development.

    To this end, he signed a cooperation agreement with the Governor of the National Bank of Albania Gent Sejko for the implementation of the EIB’s Greening Financial Systems programme, in the presence of EU Delegation’s Head of Cooperation Hubert Perr. The technical assistance provided through this programme will enable the Bank of Albania to incorporate climate risks into the regulatory framework, while developing the green taxonomy for the financial sector in the country in line with the Paris Agreement. It will help Albanian banks embrace climate finance best practices, catalyse new funding for green projects, and better assess, monitor and report on climate-related risks.

    These efforts will encourage green investments among Albanian companies, while helping them adopt the necessary transition strategies to mitigate climate risks. In turn, this will enable sustainable and climate-resilient growth in the Albanian economy. Funded by the International Climate Initiative Fund, the programme is being implemented in partnership with the Nationally Determined Contributions Partnership, a global coalition of countries and institutions committed to advancing climate action through sustainable development.

    On the same occasion, EIB Vice-President de Groot signed a host country agreement with the Republic of Albania, represented by the country’s Minister for Europe and Foreign Affairs Igli Hasani, in the presence of EU Ambassador to Albania Silvio Gonzato. This agreement will enable the EIB to strengthen cooperation with local partners under Team Europe initiative to maximise financial and technical support for key projects such as the modernisation of the railway line from Vorë to the border with Montenegro, the improvement of water distribution system in the Municipality of Tirana, and the deployment of favourable financing for small businesses.

    EIB Vice-President Robert de Groot, who is responsible for operations in the Western Balkans, said: “The signing of these agreements mark yet another milestone for the European Investment Bank in Albania. Going forward on Albania’s path to EU accession, we are committed to delivering new high-impact projects that promote improved connectivity and green transition in Albania”.

    Minister for Europe and Foreign Affairs of Albania Igli Hasani said: “The Host Country Agreement with the EIB, signed today, strengthens its role in boosting Albania’s rapid economic development and EU integration. EIB has supported Albania’s transition from the start. Increased funding and expertise will aid in implementing the EU’s Economic and Investment Plan & Growth Plan for the Western Balkans. Tirana is set to grow as a regional economic hub.”

    Governor of the Bank of Albania Gent Sejko said: “The Bank of Albania has taken substantial steps to enhance the financial sector’s capacity to address climate risks. Through collaboration with the European Investment Bank, an institution with extensive expertise in sustainable finance, we are empowered to advance green finance, align our policies with European best practices, and build a financial system equipped to meet the challenges of sustainable development. This agreement underscores our shared commitment to fostering green finance and supporting a financial system that drives the transition towards a sustainable and resilient economy. The green taxonomy, to be developed through this partnership, will play a crucial role in channelling funds toward environmentally impactful investments, fostering greater transparency and financial sustainability.”

    Head of the EU Delegation to Albania Ambassador Silvio Gonzato remarked: ““The EU in Albania is glad to support the strengthening of the partnership between the European Investment Bank and Albania, at a time when Albania has announced its ambitious schedule for the accession negotiations. The EIB is a key partner of the EU when it comes to supporting Albania’s EU integration process. Our joint focus now is on actively supporting Albania’s implementation of the EU Growth Plan and the related Reform and Growth Agenda, fostering modernisation, reforms, and sustainable economic growth. We call upon Albania to maximise the benefits of its partnership with the EU and the EIB to build the foundations for a stronger, more connected and more prosperous Albania within the EU.”

    Since 2010, EIB Global has provided €420 million for key transportation, water supply, energy and private sector projects in Albania.

    Background information:

    About the EIB and EIB Global:

    The EIB is the long-term financing institution of the European Union, owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals. The EIB supports projects in four priority areas: infrastructure, innovation, climate and environment, and small and medium-sized enterprises (SMEs). EIB Global is the EIB Group’s specialised arm devoted to increasing the impact of international partnerships and development finance, and a key partner of the Global Gateway. We aim to support €100 billion of investment by the end of 2027 – around one-third of the overall target of this EU initiative. Within Team Europe, EIB Global fosters strong, focused partnerships alongside fellow development finance institutions and civil society. EIB Global brings the EIB Group closer to local people, companies and institutions through our offices around the world.

    About EIB Global in the Western Balkans:

    The EIB is a leading international financier in the Western Balkans. Since 2009, the Bank has financed projects worth close to €11 billion in the region. On top of its continued support for the reconstruction and upgrade of public infrastructure, since 2010 the EIB has expanded into many new areas, such as healthcare, research and development, education and small and medium enterprises. 

    About the EIB in Albania:

    The EIB has been active in Albania since 1995. To date, 27 projects have been financed and over €700 million invested, mostly in key transport, energy, water and wastewater infrastructure.

    EIB Global strengthens partnership with Albania
    EIB Global strengthens partnership with Albania
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    EIB Global strengthens partnership with Albania
    EIB Global strengthens partnership with Albania
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    EIB Global strengthens partnership with Albania
    EIB Global strengthens partnership with Albania
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    EIB Global strengthens partnership with Albania
    EIB Global strengthens partnership with Albania
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    MIL OSI Europe News –

    January 25, 2025
  • MIL-OSI Europe: ESM and EIB sign Memorandum of Understanding

    Source: European Investment Bank

    The European Stability Mechanism (ESM) and the European Investment Bank (EIB) signed today a Memorandum of Understanding (MoU). Its overall aim is to further strengthen and enhance the bilateral partnership and collaboration between both institutions, and to develop, consolidate, and define their mutual cooperation. 

    “The Memorandum of Understanding signed today opens a new chapter in our collaborative framework. It builds upon the ongoing partnership since the early days of the EFSF in 2010, when the EIB provided valuable support in setting up our operations. The EIB is a close peer in many respects, and we look forward to deepening our successful cooperation. As fellow Luxembourg-based institutions, we should capitalise on our proximity to work closely together in supporting economic resilience and growth in Europe,” said ESM Managing Director Pierre Gramegna. 

    “The EIB and the ESM are formidable instruments supporting Europe’s economic security and future prosperity. They enjoy unparalleled status in global capital markets, highlighting the strength of joining forces, and complement the combined firepower of the members of our Union. We are delighted to formalise our longstanding partnership with this Memorandum of Understanding,” said EIB Group President Nadia Calviño.

    The MoU lists three areas of potential collaboration between the ESM and the EIB: i) strategic and operational dialogue and cooperation – including exchange of information and sharing of knowledge; ii) the organisation of joint events; and iii) staff exchanges.

    The Memorandum of Understanding enhances the existing collaboration between the ESM (and previously the EFSF) and the EIB, which was initially formalised through a Service Level Agreement in 2010 and further strengthened by a Cooperation Agreement in 2013. The MoU is signed for the initial period of five years, with a possibility for a further extension.

    MIL OSI Europe News –

    January 25, 2025
  • MIL-OSI Asia-Pac: Chief Minister Yogi Adityanath has given Uttar Pradesh the identity of good governance-Vice President

    Source: Government of India

    Chief Minister Yogi Adityanath has given Uttar Pradesh the identity of good governance-Vice President

    Today, Uttar Pradesh is a laboratory for the fundamental and people-centric principles of Raj Dharma-Vice President

    From the land where Lord Buddha delivered his first message, today the saga of development under Chief Minister Yogi is spreading joyfully-Vice President

    Uttar Pradesh is at the forefront in building world-class institutional infrastructure-Vice President

    Posted On: 24 JAN 2025 5:37PM by PIB Delhi

    Hon’ble Vice President Jagdeep Dhankhar today said that under the leadership of Chief Minister Yogi Adityanath, Uttar Pradesh is gaining recognition as a state of good governance, and its institutional framework is meeting global standards.

    माननीय उपराष्ट्रपति श्री जगदीप धनखड़ ने आज लखनऊ में संविधान निर्माता डॉ भीमराव आंबेडकर की प्रतिमा पर पुष्पांजलि अर्पित कर उन्हें श्रद्धांजलि दी।@myogiadityanath @anandibenpatel #UttarPradeshDay #BRAmbedkar pic.twitter.com/pQ8MDXLv0z

    — Vice-President of India (@VPIndia) January 24, 2025

    While addressing the inaugural event of Uttar Pradesh Day as the Chief Guest, Shri Dhankhar said, “In the land where Lord Buddha gave his first sermon, today the saga of development under Chief Minister Yogi is spreading joyfully. This state, enriched with the tales of the freedom struggle, has seen a young leader winning five consecutive Lok Sabha elections since 1998 at the age of 26. Since March 2017, Chief Minister Yogi has been in office, dedicating 26 years of his life to public service.”

    Appreciating the people-centric policies of governance, the Vice President said, “This region has become a laboratory for the fundamental and people-centric principles of Raj Dharma. There was a time, not long ago, when India was considered one of the five weakest economic powers in the world. Prime Minister Narendra Modi, with his passion, commitment, mission, and execution, turned that around, and today we are the world’s fifth superpower. Similarly, before your assumption of office, this state was identified as a ‘Bimaru’ (backward) state. Today, no one mentions it because the transformation has been 180 degrees.”

    “The state deserves mention because it is blessed by Lord Shri Ram in Ayodhya, protected by Lord Vishwanath in Kashi, graced by Lord Krishna’s blessing in Mathura, loved by Lord Banke Bihari in Vrindavan, empowered by Lord Hanuman, and all this is being orchestrated by the Mahant of Gorakhnath Temple, Yogi Adityanath. When the charioteer is strong, the development becomes qualitative,” he emphasized.

    Appreciating the improved law and order situation under Chief Minister Yogi Adityanath’s leadership, the Vice President said, “There was a time when Uttar Pradesh’s identity was associated with concerns about law and order. It was a matter of concern for everyone. There seemed to be no way out, and it appeared the state was stuck in a vicious cycle, with its potential being stifled. You have miraculously transformed Uttar Pradesh into a state recognized for good governance. This progress is being discussed across the country, abroad, and certainly within the state… Uttar Pradesh is leading in building world-class institutional infrastructure. It serves as an example to the world. The infrastructure here meets the highest global standards.”

    Highlighting the ongoing development in the state, Shri Dhankhar said, “This event, happening across all 75 districts of the state, is an expression of Uttar Pradesh’s identity and pride. What did not exist before is now true—Uttar Pradesh is a symbol of development. The identity of Uttar Pradesh today is its pace of development. The state is continuously moving forward at an unprecedented pace of progress.”

    On this occasion, Hon’ble Governor of Uttar Pradesh, Smt. Anandiben Patel, Hon’ble Chief Minister of Uttar Pradesh, Shri Yogi Adityanath, and other dignitaries were also present

    ****

    JK/RC/SM

    (Release ID: 2095873) Visitor Counter : 68

    Read this release in: Hindi

    MIL OSI Asia Pacific News –

    January 25, 2025
  • MIL-OSI Europe: Debates – Thursday, 23 January 2025 – Strasbourg – Revised edition

    Source: European Parliament

    Verbatim report of proceedings
     344k  764k
    Thursday, 23 January 2025 – Strasbourg
    1. Opening of the sitting
      2. Combating Desertification: 16th session of the Conference of the Parties (COP16) of the United Nations Convention (debate)
      3. Resumption of the sitting
      4. Cryptocurrencies – need for global standards (debate)
      5. Resumption of the sitting
      6. Composition of new committees
      7. Composition of committees and delegations
      8. Voting time
        8.1. Case of Jean-Jacques Wondo in the Democratic Republic of the Congo (RC-B10-0069/2025, B10-0065/2025, B10-0069/2025, B10-0070/2025, B10-0072/2025, B10-0078/2025, B10-0081/2025, B10-0084/2025) (vote)
        8.2. Systematic repression of human rights in Iran, notably the cases of Pakhshan Azizi and Wrisha Moradi, and the taking of EU citizens as hostages (RC-B10-0066/2025, B10-0063/2025, B10-0066/2025, B10-0067/2025, B10-0073/2025, B10-0082/2025, B10-0085/2025, B10-0086/2025) (vote)
        8.3. Case of Boualem Sansal in Algeria (RC-B10-0087/2025, B10-0087/2025, B10-0088/2025, B10-0089/2025, B10-0090/2025, B10-0091/2025, B10-0092/2025, B10-0093/2025) (vote)
        8.4. Russia’s disinformation and historical falsification to justify its war of aggression against Ukraine (RC-B10-0074/2025, B10-0074/2025, B10-0075/2025, B10-0076/2025, B10-0077/2025, B10-0079/2025) (vote)
        8.5. Situation in Venezuela following the usurpation of the presidency on 10 January 2025 (RC-B10-0064/2025, B10-0064/2025, B10-0068/2025, B10-0071/2025, B10-0080/2025, B10-0083/2025) (vote)
      9. Resumption of the sitting
      10. Approval of the minutes of the previous sitting
      11. Major interpellations (debate)
      12. Explanations of votes
      13. Approval of the minutes of the sitting and forwarding of texts adopted
      14. Dates of forthcoming sittings
      15. Closure of the sitting
      16. Adjournment of the session

       

    PRÉSIDENCE: YOUNOUS OMARJEE
    Vice-Président

     
    1. Opening of the sitting

       

    (La séance est ouverte à 09h01)

     

    2. Combating Desertification: 16th session of the Conference of the Parties (COP16) of the United Nations Convention (debate)


     

      Jessika Roswall, Member of the Commission. – Mr President, honourable Members, healthy soils are fundamental for our collective future. Without rich and fertile soils, we have no food and many farmers have their livelihoods affected. We must pay more attention to combating land degradation and enhancing drought resilience for our economy and for our security.

    Europe is not immune to these issues. One of our key political priorities for the coming mandate, the new water resilience strategy, comes from the realisation that our European and global waters are under unsustainable pressure. At the same time, our Joint Research Centre Soil Observatory notes that at least 62 % of EU soils are affected by degradation.

    Droughts have substantial impacts on nearly all regions of the EU. This is why I travelled to Riyadh for the opening of the desertification COP16 on my first day as European Commissioner. I wanted to send a strong signal of the EU’s clear commitment to multilateralism and to cooperation with international partners on our key environmental challenges.

    The desertification COP followed the two meetings of the climate and biodiversity COPs. The day before it started, countries failed to agree on a global treaty on plastic pollution. On desertification, despite the EU’s strong engagement, we reached a mixed result in Riyadh. Parties were not able to reach a compromise on the main topic on the agenda – an instrument to address droughts. It is disappointing that we cannot bridge our differences and reach consensus on such critical issues.

    We were also disappointed in the outcome on gender and civil society organisations. The participation of these organisations increases transparency and democratic accountability. Their contribution is essential. However, some countries increasingly challenge the role and contributions of civil society organisations.

    Finally, we were disappointed that the parties were reluctant to embrace synergies across the three Rio Conventions on desertification, climate and biodiversity.

    However, we did also make progress on several fronts, and every bit of multilateral success is worth celebrating. We reached an agreement on establishing the Science-Policy Interface as a permanent body. We also adopted decisions on land tenure, on migration related to desertification, land degradation and droughts, and on avoiding, reducing and reversing degradation on agricultural land. It was the first time in the history of the Convention that agricultural land degradation was addressed. We must look at sustainable agricultural practices and healthy land together.

    Finally, after a 10‑year freeze, the parties agreed to increase the core budget of the Convention. This is an important step to ensure that global challenges like desertification, drought and water scarcity are properly addressed in the multilateral agenda.

    The EU is contributing to the concrete implementation of the Convention, particularly through our continued support for the Great Green Wall, an inspiring UNCCD flagship initiative that the EU is proud to champion. Building on this commitment, the EU has launched the second phase of the UN World Restoration Flagship, Regreening Africa, which is a key contribution to the Green Wall Initiative.

    Honourable Members, the EU and its Member States will need to step up efforts to protect our values and implement international commitments in the UNCCD and within the EU. In this regard, I am happy to report that the Commission is responding to the commitments of the European Court of Auditors by developing a methodology to assess land degradation and certification for the EU. This will require careful preparation and strategic alliances. We need to address land use, climate change, biodiversity loss, water scarcity and pollution in a coherent manner.

    Honourable Members, these are reflections from my first ever COP, and I am convinced that this COP on desertification needs to be more central. We also cannot look at the outcome of Riyadh without acknowledging that international negotiations have become more difficult, more complex and interconnected when the world is facing several ecological crises. Biodiversity, climate, food, water and energy challenges are all interconnected with land use.

    I’m now looking forward to hearing your views.

     
       

     

      Carmen Crespo Díaz, en nombre del Grupo PPE. – Señor presidente, señora comisaria, gracias por el empuje al tema del agua desde la nueva Comisión. Creemos que es fundamental. Yo soy de una tierra desértica, al lado del desierto de Europa de Tabernas, y allí se demuestra con la huerta de Europa —porque el 80 % del producto de frutas y hortalizas se exporta desde allí —que es posible abordar esta cuestión. ¿Por qué? Porque hay veinte veces menor huella hídrica en todos los productos agroalimentarios.

    Ese es el gran milagro: que para las infraestructuras hidráulicas se utilicen los fondos Next Generation, el Banco Europeo de Inversiones y se creen infraestructuras donde la ciencia, con todo lo que se está investigando, permita. Creo en estos momentos que es fundamental prestar atención a todas las fuentes hídricas: todas son necesarias, algunas en prevención y otras adecuadas a las cuestiones agrarias. Creo que es importantísima la economía circular, y las aguas residuales nos dan una oportunidad en Europa de tener agua regenerada, que incluso podemos inyectar a nuestra hucha del futuro, que son, en este caso, todas las aguas subterráneas.

    Por ello, creo que se puede hacer, que tenemos la obligación de hacerlo y que, además, en este momento, los países como España, como el mío, deberían trabajar en estas infraestructuras hidráulicas de prevención —también adaptadas a lo que es el tema agrario— y, por supuesto, bajar los impuestos, el IVA de los alimentos, que la rebaja no se ha prorrogado en este momento en ese decreto trampa que ayer llevaron al Congreso de los Diputados. Creo que es fundamental la seguridad alimentaria y, para conseguirla, tenemos que trabajar en las infraestructuras hidráulicas, como la nueva Comisión y la nueva comisaria están haciendo en este momento en Europa.

     
       

     

      Marta Temido, em nome do Grupo S&D. – Senhor Presidente, Senhora Comissária, Caros Colegas, a desertificação e a degradação dos solos, tal como as alterações climáticas, são uma realidade que põe em causa os direitos humanos mais básicos, como o direito à alimentação ou o direito ao acesso à água limpa e segura. Atingem, em especial, as comunidades mais vulneráveis, as mulheres, as crianças, os povos indígenas, mas, potencialmente, vão atingir-nos a todos.

    E a COP 16, que decorreu em Riade no passado mês de dezembro, reforçou a urgência do combate a estes fenómenos, através da intensificação da colaboração internacional e de uma abordagem integrada. A União Europeia reafirmou o seu compromisso com a meta global de neutralidade da degradação da terra e o empenho em atingir este objetivo até 2030, através de incentivos aos Estados-Membros para que adotem políticas que favoreçam a restauração das terras e a implementação de práticas agrícolas sustentáveis.

    Por isso, a União Europeia tem de continuar a incentivar a adoção destas práticas agrícolas regenerativas, que respeitem os ecossistemas naturais e contribuam para a restauração de solos degradados, e deve bater-se pela implementação da Lei do Restauro da Natureza. Mas a inclusão da sociedade civil e do setor privado neste combate são essenciais, e isso exige iniciativas de apoio.

    Quero referir, aqui, uma iniciativa da sociedade civil do meu país, Portugal, que exemplifica bem esta luta que precisamos de levar a cabo com ela. E é a iniciativa Pró-Montado Alentejo, um projeto que visa promover a construção de uma barreira florestal ativa na região sul de Portugal, baseada no montado de sobreiro e azinheira, com o objetivo de mitigar os efeitos das alterações climáticas, combater a desertificação, proteger a diversidade e, enfim, combater o despovoamento.

     
       

     

      Julien Leonardelli, au nom du groupe PfE. – Monsieur le Président, la COP16 a été, sans aucun doute, la plus grande réunion d’États à ce jour sur le sujet de la désertification. Elle se tenait à Riyad, ce qui a permis aux participants de constater à quel point ce problème bouleverse des puissances régionales qui reposaient autrefois sur l’agriculture, comme l’Éthiopie ou l’Égypte. Ce véritable fléau est aujourd’hui à nos portes. On l’observe déjà en Grèce, en Italie, mais aussi dans ma région au sud de la France, en Occitanie, où l’eau courante des habitants est désormais rationnée en été, lors des canicules, où les agriculteurs ne peuvent pas toujours arroser leurs cultures et où les feux de forêt se font de plus en plus fréquents.

    Aujourd’hui, le temps n’est plus aux belles intentions et aux fausses promesses, mais au changement. Les Européens touchés par l’artificialisation des sols et la sécheresse méritent mieux que les ânonnements suffisants de ceux qui se tiennent dans des tours de verre et de béton. Pour répondre à ce défi, il faut privilégier les circuits courts, réduire le libre-échange débridé qui pollue notre air et nos océans et se tourner vers l’innovation et la recherche, à l’image des pays du Golfe. Ne restons pas spectateurs, soyons les acteurs de notre salut avant qu’il ne soit trop tard.

     
       

     

      Francesco Ventola, a nome del gruppo ECR. – Signor Presidente, onorevoli colleghi, dal rapporto COP16 la desertificazione e la siccità rappresentano non solo emergenze ambientali, ma anche minacce sociali ed economiche per intere regioni.

    I dati forniti sottolineano che oltre il 40 % delle terre globali è degradato e che la siccità provoca perdite economiche annuali che superano i 300 miliardi. In Italia, questo si traduce in una crisi che colpisce soprattutto il comparto agricolo.

    Si rende sempre più necessaria e indispensabile la realizzazione di infrastrutture che ottimizzino il sistema di raccolta, conservazione e distribuzione della risorsa acqua. È necessario investire in impianti di riuso delle acque reflue. Nessuna goccia deve essere dispersa: non ce lo possiamo permettere.

    Non possiamo più accettare false politiche ambientali ideologizzate, che bloccano sui territori la realizzazione di progetti innovativi e realmente sostenibili. Bisogna intraprendere tutte le strade che la scienza e la tecnologia ci offrono per fronteggiare il rischio desertificazione.

    Cari colleghi, non limitiamoci solo a parlare dei problemi: agiamo per risolverli e facciamolo con determinazione, per il bene dei nostri territori, dell’Europa e delle generazioni future.

     
       

     

      Martin Hojsík, za skupinu Renew. – Vážený pán predsedajúci, vážená pani komisárka, vážené kolegyne, vážení kolegovia, aj keď sa takpovediac symbolicky konferencia dohody OSN o dezertifikácii konala v Saudskej Arábii uprostred púšte, nie je to téma, ktorá sa týka len Arabského polostrova a Afriky. Je to téma, ktorá sa veľmi bytostne týka aj nás v Európe. Dezertifikácia je každodenným problémom na Cypre, v Španielsku, v Taliansku, ale aj uprostred Európy. U nás doma na Slovensku každým rokom vidíme väčší a väčší podiel pôdy, ktorú už farmári nedokážu obhospodarovať, ktorá sa nám stráca takpovediac priamo pred očami, pretože sa vysušuje. O tom je dezertifikácia. Sucho a nedostatok vody sa stali fenoménom našej doby a keď prídu, tak prídu ako záplavy. Klimatická kríza sa mení na klimatickú katastrofu. Ničíme biodiverzitu a meníme krajinu v púšť. V niektorých častiach Slovenska farmári prišli až o 40 % svojich výnosov kvôli dezertifikácii. Taký obrovský to je problém. Preto ako spravodajca Európskeho parlamentu pre zákon o pôde, naozaj vás chcem vyzvať, aby ste ho podporili. Dúfam, že sa nám spolu s Komisiou a Radou podarí dosiahnuť čoskoro v trialógu dohodu. Základom je mať kvalitné informácie. V Rijáde sa dohodla medzinárodná platforma. V Európe takú nemáme, zákon o pôde ju vie poskytnúť.

     
       

     

      Pär Holmgren, för Verts/ALE gruppen. – Herr talman! Kommissionär Roswall! Klimatförändringarna handlar verkligen inte bara om att det blir varmare på planeten, utan ett mycket större hot i stora delar av världen är förändringarna i nederbördsklimatet. Det blir mer nederbörd, kraftigare nederbörd på de platser där vi redan har mycket vatten. Men framför allt, i det här sammanhang som vi diskuterar nu, på många platser, inte minst där vi har en stor del av mänskligheten, där vi har en stor del av jordbruk och matproduktion, blir det nu sakta men säkert torrare.

    Det är ett enormt stort akut hot mot oss och vår matproduktion. Det här gäller inte bara andra delar av världen, det gäller här hemma i Europa också. Vi ser delar av framför allt Sydeuropa, hur skördar av till exempel majs och vete redan har sjunkit med storleksordningen 60 %.

    Vi vet också att det torrare klimatet, det torrare, lokala och regionala klimatet, medför en massa riskkonsekvenser. Till exempel de förskräckliga översvämningar som vi såg i Valencia senast förvärrades så mycket av att marken där först hade blivit så torr och hård att den inte kunde ta emot vatten.

    Som kommissionär Roswall konstaterade: På COP16, visst i vissa steg, i vissa sammanhang tog vi steg framåt, men som ofta i sådana här sammanhang var det lite blandade resultat. Det största problemet är att vi återigen misslyckades med att få ett bindande globalt ramverk när det gäller att bekämpa torka.

    Hade ansvariga politiker redan i slutet på 1900‑talet tagit hänsyn till den forskning som fanns då hade vi förhoppningsvis inte varit där vi är nu. Men nu är vi där vi är, och det innebär att vi, inte minst här i EU, måste höja ambitionerna, både när det gäller att minska utsläppen och arbeta ännu mer aktivt med klimatanpassning.

     
       

     

      Catarina Martins, em nome do Grupo The Left. – Senhor Presidente, nos próximos 25 anos, três em cada quatro pessoas será afetada pela seca a nível mundial. É uma catástrofe e está aqui. A Europa está a aquecer mais rápido do que o resto do mundo e a seca prolongada chegou décadas antes do que estava previsto.

    Por isso mesmo, e apesar do veto dos Estados Unidos e do Japão a um acordo para um regime global de resiliência à seca, a União Europeia não pode desistir desse objetivo e deve agir a todos os níveis.

    Venho de um país, Portugal, onde a agricultura superintensiva condena boa parte da população alentejana e algarvia, incluindo os pequenos agricultores, a uma vida sem água. O que produzem não alimenta essas populações nem deixa riqueza no país. Tudo é exportado, incluindo os lucros. Por lá, ficam só os solos degradados.

    Por isso, bem sei que esta não é a luta da ecologia contra a agricultura, é a das nossas vidas, incluindo a produção alimentar, contra a voragem das multinacionais do agronegócio. E por isso, Senhora Comissária, vai ser mesmo preciso coragem para enfrentar alguns dos mais poderosos interesses económicos.

     
       

     

      Zsuzsanna Borvendég, a ESN képviselőcsoport nevében. – Tisztelt Elnök Úr! Magyarország termőföldjei az emberi tevékenység miatt száradnak ki. A Kárpát-medence természetes vízháztartása elegendő vizet biztosítana, ha a tájnak megfelelő módon gazdálkodnánk.

    De ma mindent a profitéhség határoz meg, amely kizsákmányolja a környezetet. Ártereink helyén zöldhasút termő szántóföldek vannak. Hagyjuk, hogy a folyók átvágtassanak az országon, ahelyett, hogy átitatnák a talajt az éltető vízzel.

    Az uniós döntéshozatal a klímaválság kapcsán a levegő összetételére fókuszál, és erre hivatkozva betarthatatlan emissziós szabályokat alkot, de az ennek érdekében használt új technológiák a talaj és a talajvizek elszennyeződését fokozzák.

    Magyarországon az aszállyal párhuzamosan az akkumulátorgyárak vízszennyező hatásával is számolni kell, vagyis nálunk is a gazdasági lobbik írják felül a környezetvédelmet.

    A Föld egy komplex rendszer, amely komplex válaszokat igényel, nem lehet kiragadni egyes problémákat. Ha valós megoldásokat akarunk, akkor a lokalitás felé kell mozdulnunk, és uniós forrásokból is a helyi sajátosságoknak megfelelő természetközeli megoldásokat kell támogatnunk.

     
       

     

      Christine Schneider (PPE). – Herr Präsident, Frau Kommissarin, meine sehr geehrten Damen und Herren! Wüstenbildung ist eine globale Herausforderung, und Europa ist immer stärker betroffen. Unsere Ernährungssicherheit, die wir lange für selbstverständlich hielten, ist bedroht. Eine Lösung kann nur mit und nicht gegen unsere Landwirtinnen und Landwirte gefunden werden. Was passiert, wenn wir über ihre Köpfe hinweg entscheiden, das haben die letzten Jahre gezeigt. Bauernproteste sind zwischenzeitlich vor diesem Haus zum Alltag geworden. Daher mein dringender Appell: Beziehen Sie von Anfang an den Berufsstand mit ein, insbesondere bei der angekündigten Water Resilience Strategy.

    Drei Aspekte möchte ich hervorheben: Wir brauchen erstens ein intelligentes Wassermanagement. Nutzen wir die künstliche Intelligenz, um Wasserressourcen effizient zu verteilen. Setzen wir auf Wiederverwendung von Grauwasser und Abwasser, und bauen wir wassersparende Infrastruktur aus. So können wir Wasser nachhaltig zwischen den Regionen und Sektoren nutzen. Zweitens: dürreresistentes Saatgut. Es ist unverzichtbar, um Erträge selbst unter extremen Klimabedingungen zu sichern. Dazu brauchen wir neue Züchtungstechnologien, und die Blockade im Rat muss beendet werden. Drittens: Innovative Bewässerungslösungen, Tröpfchen- und Präzisionsbewässerung nutzen Sensorendaten, setzen Wasser ganz gezielt ein und vermeiden dadurch Verluste. Diese Technologien müssen wir stärker fördern, um unsere Landwirtschaft noch effizienter und nachhaltiger zu machen.

    Kurz zusammengefasst: Wenn wir Ernährungssicherheit wollen, brauchen wir neue Technologien und innovative Lösungen in enger Zusammenarbeit mit unseren internationalen Partnern, mit unseren Landwirten, aber auch mit uns Verbraucherinnen und Verbrauchern.

     
       

     

      Σάκης Αρναούτογλου (S&D). – Κύριε Πρόεδρε, η Γη μας, πηγή ζωής για αιώνες, αντιμετωπίζει τον κίνδυνο να μετατραπεί σε πηγή αφανισμού. Οφείλουμε να αποτρέψουμε τη μετατροπή εύφορων περιοχών σε ερημωμένα τοπία. Όταν το έδαφος καταστρέφεται, διακυβεύεται το μέλλον της ανθρωπότητας. Η ζωή δεν μπορεί να ευδοκιμήσει σε καμένη γη. Η Ευρωπαϊκή Ένωση καλείται να αναλάβει ηγετικό ρόλο, διακηρύσσοντας την ανάγκη για ορθολογική διαχείριση των φυσικών πόρων και τερματισμό επιτέλους της αδράνειας. Η συνέχιση της παρούσας πορείας θα οδηγήσει στη συγκομιδή των συνεπειών της αδιαφορίας μας και όχι των καρπών της γης. Προτείνω τη σύναψη ενός Συμφώνου για Ζωντανή Γη, μια συμφωνία που θα προβλέπει την αντιστάθμιση κάθε χαμένης έκτασης με την αναγέννηση διπλάσιας έκτασης μέσω βιώσιμων επενδύσεων. Μια τέτοια πρωτοβουλία θα μπορούσε να αποτελέσει ένα νέο παγκόσμιο πρότυπο για τη βιώσιμη διαχείριση των εδαφών. Δεν πρόκειται για μια ουτοπική ιδέα, αλλά για μια επιτακτική ανάγκη. Παρά τις προσπάθειες για την προστασία του πλανήτη, παρατηρούμε την εστίαση ορισμένων στην εξερεύνηση διαστημικών προορισμών, παραβλέποντας την ανάγκη για άμεση δράση στη Γη. Φαίνεται να προκρίνεται η κατάκτηση ενός απομακρυσμένου κόκκινου πλανήτη εις βάρος της διαφύλαξης του πράσινου πλανήτη μας. Επιπλέον, διαπιστώνεται η ενίσχυση ρητορικών που αμφισβητούν την κρισιμότητα της κατάστασης, υποβαθμίζοντας τις περιβαλλοντικές προκλήσεις σε πολιτικά παιχνίδια. Η φύση μάς απευθύνει επείγουσα έκκληση. Ας την αφουγκραστούμε, πριν η σιωπή της γίνει πιο εκκωφαντική από οποιαδήποτε φωνή. Ο χρόνος για δράση είναι τώρα. Και σε όσους αναζητούν καταφύγιο σε άλλους πλανήτες, ας τους υπενθυμίσουμε ότι εκεί οι συνθήκες είναι ήδη ερημικές και θα έρθει η ερημοποίηση και στον πλανήτη μας, αν αυτό επιζητούν.

     
       

     

      Mireia Borrás Pabón (PfE). – Señor presidente, señora comisaria, señorías, voy a ser muy clara: la CP16 ha sido otro espectáculo bochornoso de hipocresía, con líderes mundiales que vuelan en sus jets privados a Arabia Saudí; un país, por cierto, que incumple el 75 % de las restricciones medioambientales que ustedes desde aquí, desde Bruselas, imponen sin piedad a nuestros agricultores. Sí, aquellos mismos que evitan la desertificación del territorio. ¿Y qué resultados hemos obtenido? Ninguno, ningún compromiso vinculante.

    Nos enfrentamos a un gran problema, señora comisaria: casi el 70 % de las tierras agrícolas mediterráneas están en riesgo de desertificación y solo en España —en mi país— dos millones de hectáreas ya están clasificadas como desérticas. ¿Y qué hace la Comisión al respecto? Lo de siempre: culpabilizar al cambio climático. Pero ¿se han planteado, por un momento, que el principal problema fuera, por ejemplo, la falta de inversión en infraestructuras hídricas? En Europa se pierden millones de toneladas de agua de riego debido a infraestructuras hídricas que están tremendamente anticuadas.

    Miremos a Israel —un país que tiene recursos hídricos muy escasos y condiciones casi desérticas—, que ha revolucionado su agricultura con tecnología muy avanzada; mientras ellos aumentan su productividad un 30 %, aquí en Europa nuestros agricultores se ven obligados a abandonar sus tierras. Desde Vox ya seguimos en esta línea y propusimos un plan: un gran Plan Hidrológico Nacional para garantizar el agua y cohesionar el territorio. ¿Y qué es lo que votó toda la izquierda en bloque? Un no rotundo. ¿Y qué es lo que votó el Partido Popular? Pues se abstuvo, como siempre, cuando le gustan nuestras iniciativas, pero tienen complejo en admitirlo.

    Miremos ahora a Jaén: Marmolejo, Arjona, Lopera. ¿Les suenan, señores del PP? Son lugares de España donde el Partido Popular está expropiando tierras cultivadas con olivos para construir masivamente plantas fotovoltaicas. ¿Les preocupa de verdad la desertificación, señores del PP? 100 000 olivos a la basura, en nombre de la sostenibilidad. Empezamos a pensar que ustedes prefieren el aceite de Marruecos al aceite de Jaén, pero lo cierto es que no me extrañaría ver dentro de muy poco tanto al Partido Popular como a la izquierda manifestándose juntos en contra de sus propias políticas, esta vez no en apoyo de las nucleares, sino en su falsa solidaridad con los agricultores de Jaén, tan falsa como la sostenibilidad que defienden.

     
       

     

      Laurence Trochu (ECR). – Monsieur le Président, Madame la Commissaire, mes chers collègues, face aux enjeux climatiques, il est triste de voir que les solutions idéologiques prennent trop souvent le pas sur le bon sens. La question de la désertification n’y fait pas exception et les réponses apportées à ce problème, que personne ne nie d’ailleurs, sont souvent illusoires. À ce titre, l’opposition féroce et même, parfois, violente des écologistes français à des solutions de bon sens telles que les mégabassines, qui stockent le surplus d’eau de l’hiver pour le réutiliser l’été, est un exemple éloquent.

    Alors, plutôt que de voir en l’homme uniquement un prédateur-pollueur, l’homme doit être la solution, par l’innovation, le progrès technique et la recherche. La désertification ne peut être combattue par une écologie punitive et normative à outrance, ruineuse pour notre compétitivité, comme l’a d’ailleurs souligné le rapport Draghi.

    Nos agriculteurs, qui ont façonné nos paysages, sont las d’être désignés comme les principaux responsables et d’être écrasés de normes. Dernier artefact idéologique, le changement climatique est aussi utilisé comme prétexte pour justifier une immigration de masse venue du Sud dont plus personne ne veut. Alors, chers collègues, pour relever le défi du climat, sortons enfin de l’idéologie.

     
       

     

      Billy Kelleher (Renew). – Mr President, as I stand here, my home country of Ireland is preparing to be battered by one of the strongest storms in decades. And if you look at the weather forecasts across Europe, there’s rain in many areas. So it’s a concept that is very hard to understand when we sometimes speak about desertification.

    But, in reality, the scale of this problem – the desertification – should be everyone’s concern. It affects the land of homes to 1.5 billion people. The UN estimates that 135 million people have already been displaced due to desertification, and this could rise to 700 million by 2050. This land is also important agricultural land, and the UN estimates that 40 % of agricultural land has already been degraded.

    The consequences are far-reaching: humanitarian, migration, environmental problems, food and water security, political stability or political instability, for global security, for trade and supply chains there are significant challenges. And each of these consequences will have an impact also on Europe and the daily lives of our citizens.

    We cannot reverse the problems in the very short term, but we have to plan and we must make real collective efforts to halt its spread and to address its long-term implications. So while I welcome the commitments at the COP16 of the United Nations Convention to Combat Desertification, especially regarding the financial commitments from both the public and private sector, we do need to ensure that we make a common effort to bring forward the challenges regarding drought and the protocols with regard to tackling the same.

    If we are going to halt this runaway train, we need to have a common, coherent plan for tackling drought and that involves governments, businesses, local people, scientists and engineers.

     
       

     

      Kai Tegethoff (Verts/ALE). – Mr President, the summer of 2024 is the hottest on record in the EU and globally. Thirteen Member States, meaning almost 50 % of the Member States of the EU, are affected by desertification and almost 25 % of the territory is sensitive to desertification. Still, while the EU promotes the leadership role globally, we are not prepared ourselves.

    The desertification COP16 failed to agree on a global drought framework, and the Commission promised to present a water resilience strategy already a year ago. I hope this will come very soon.

    And Commissioner Roswall, in your introduction, in your first sentence you said that we need to focus on helping farmers, and in the second sentence it was ‘focus on economy’. I think what we really need in that water resilience strategy is water saving targets. We need to improve efficiency and reuse of water. We need to protect and restore our water supplies and the whole catchment area.

    And then at the same time, considering the wildfires and the flooding that we deal with here every single plenary session, we have to make sure that this water resilience strategy is accompanied and embedded into a real European climate adaptation law.

     
       

     

      João Oliveira (The Left). – Senhor Presidente, o problema da desertificação é um problema ambiental ou climático, mas é essencialmente um problema da relação do ser humano com a natureza, é um problema humano, social e económico.

    As conclusões da COP16 contêm muitos dos elementos relevantes para o debate sobre o combate à desertificação, mas revelam também as muitas dificuldades que é preciso ainda superar.

    Há muito por fazer para que haja verdadeiramente soluções, relativamente ao uso e à gestão eficientes da água e dos recursos hídricos, relativamente à ocupação e ordenamento equilibrado do território, relativamente à promoção de práticas produtivas sustentáveis, equilibradas, seja na agricultura, na pecuária, na silvicultura. Há muito por fazer no investimento público que é preciso nos territórios rurais, para travar o abandono da população e a consequente desertificação do território.

    Permitam-me trazer, aqui, um aspeto que é relevante em Portugal, que é o montado de sobreiros e azinheiras, que é característico do meu país. O montado não é apenas um conjunto de árvores que retêm carbono e resistem melhor aos incêndios. O montado é um sistema agrosilvopastoril que tem de ser encarado como tal em todas as suas dimensões, não apenas pelo valor ambiental, mas pelo enorme valor social que tem, porque cria emprego, fixa as populações, permite práticas produtivas sustentáveis e equilibradas, garante um adequado ordenamento do território na compatibilização da sua utilização para fins produtivos, mas também tem preocupações ambientais.

    Este é um exemplo do investimento que precisamos de fazer em áreas e em recursos que, sendo naturais de cada país, naturalmente permitem uma resposta mais eficaz ao combate à desertificação.

     
       

     

      Daniel Buda (PPE). – Domnule președinte, doamnă comisară, doamnelor și domnilor colegi, deșertificarea este o realitate care nu poate fi contestată, iar la COP 16 s-a subliniat acest lucru. Potrivit datelor oficiale, deșertificarea generează costuri globale de peste 300 de miliarde de euro și afectează mai mult de 1,5 miliarde de oameni, crescând presiunile migraționiste și alimentând războaiele pentru resurse.

    Uniunea pierde anual 74 de miliarde de euro din cauza degradării terenurilor, iar lipsa acțiunii va reduce randamentele culturilor cu cel puțin 10 % până în 2050, generând o penurie, atât pentru apă, cât și pentru alimente. România, țara mea, se confruntă din plin cu aceste fenomene. Avem nevoie urgent de acțiuni curajoase, care nu doar să prevină acest fenomen, ci chiar să-l inverseze pe termen lung.

    Pentru a ne proteja securitatea alimentară, trebuie să investim în tehnologii și soluții inovatoare, precum noile tehnici genomice în gestionarea durabilă a apei și dezvoltarea unor sisteme inteligente de irigații la prețuri accesibile pentru toți fermierii, și subliniez acest lucru: la prețuri accesibile pentru toți fermierii.

    În același timp, se impune utilizarea eficientă a apelor uzate, mai ales în jurul marilor centre urbane, și investiții serioase în ceea ce înseamnă desalinizarea apei marine, toate acestea trebuind să devină o prioritate strategică și o obligație față de cetățenii noștri.

    Investițiile din sectorul privat trebuie încurajate, iar Comisia trebuie să se asigure că statele membre utilizează eficient și rapid banii pentru împăduriri și perdele forestiere. Europa are la dispoziție soluții, însă fără investiții direcționate și finanțare adecvată, nu va putea face față acestor provocări.

    Stimați colegi, alegerea este a noastră: să acționăm acum sau generațiile viitoare vor suporta consecințele imobilismului nostru destructibil.

     
       

     

      Maria Grapini (S&D). – Domnule președinte, doamnă comisară, stimați colegi, sigur, dezbatem o problemă foarte importantă, păcat că sunt așa de puțini membri ai Parlamentului European în sală. Așa cum s-a declarat și aici, cum a fost și în declarația Convenției, se degradează anual terenul. S-a ajuns la 70 % din terenuri care au fost transformate din starea lor naturală.

    Secetele cauzează pagube și costuri și daune, peste 300 de miliarde pe an. Unde merg aceste daune și pagube? Evident, la fermieri și, până la urmă, la cetățeni. Doar în perioada 2015-2019, circa 100 de milioane de hectare de terenuri sănătoase și productive au fost degradate anual, amenințând evident, securitatea alimentară a globului, precum și disponibilitatea apei.

    Ce trebuie făcut, doamnă comisară? Ne-ați relatat ce a fost la Convenție și că nu s-a ajuns la compromisuri importante. Eu cred că Uniunea Europeană trebuie să fie preocupată mai ales de ce se întâmplă în Uniunea Europeană, sigur, și global. Eu cred că trebuie să îmbunătățim instrumentele politice naționale și europene pentru abordarea productivă de gestionare a secetei. Aici avem foarte mult de făcut. Este nevoie de alocarea de bugete pentru finanțarea restaurării terenurilor, creșterea rezistenței la secetă, prin cercetare și inovare.

    Comisia Europeană trebuie să aibă un plan de acțiuni la nivelul Uniunii Europene care să combată degradarea terenurilor în colaborare cu statele membre. Și mai trebuie făcut ceva, doamnă comisară: politicile Uniunii Europene, ale Comisiei, nu trebuie să se anuleze ca la algebră – plus și minus – sunt mii de hectare acum, cu parcuri fotovoltaice, terenuri care nu mai sunt recuperate zeci de ani.

    Trebuie să vedem cum corelăm politica energetică cu această politică de protejare a terenurilor și cred foarte mult că este nevoie să vă gândiți, în principal, la cum să nu creăm presiune asupra fermierilor din Uniunea Europeană, asupra cetățenilor din Uniunea Europeană, atât timp cât în restul globului, Statele Unite, Japonia și celelalte state, nu au votat la această Convenție.

     
       

     

      Mathilde Androuët (PfE). – Monsieur le Président, à l’issue de la COP16 consacrée à la désertification qui a eu lieu à Riyad, 12 milliards ont été sécurisés d’ici 2030 pour améliorer les terres, dont dix proviennent de la Banque islamique de développement. Dans un rassemblement international, les pétromonarchies sont donc venues au secours des déserts de sable, déserts où parfois on construit, en dépit de tout souci environnemental et économique, des pistes de ski.

    Voilà, une fois de plus, la démonstration qu’aux problèmes environnementaux, qui sont des problèmes localisés, on ne peut avoir de réponse globalisée. Les COP sont des rassemblements de déblocage ou de création de fonds financiers, aucunement des lieux de réflexion et d’apport de solutions environnementales. Aussi, sur le problème majeur de la désertification et de l’assèchement des sols, ayons une vision et des solutions locales. La gestion de l’eau est une question sensible et différente d’un pays à l’autre et, parfois, d’une région à l’autre dans un seul et même pays. L’an passé, dans le nord de la France, les cultures ont souffert de trop de pluies, soit l’inverse exact des Pyrénées orientales, en manque d’eau permanent.

    Si vous vous refusez au traitement local pour n’opérer qu’à l’échelle européenne, prenons des problèmes communs. En Bulgarie comme en Guadeloupe, 60 % de l’eau est perdue tant les infrastructures sont vétustes et fuyardes. De même, encouragez le reboisement, le replantage des haies pour favoriser la captation de l’eau par les sols. Bref, appuyez-vous sur ceux qui connaissent le mieux leur environnement, à savoir les paysans, plutôt que sur les financiers des pétromonarchies pour régler nos problèmes d’eau et de désertification en Europe. À problème local, solution nationale.

     
       

     

      Marie Toussaint (Verts/ALE). – Monsieur le Président, la désertification, c’est l’autre nom de l’injustice climatique et de la vulnérabilité. C’est d’ailleurs peut-être parce qu’elle a d’abord touché les pays les plus pauvres que les pays les plus riches n’y ont, pendant si longtemps, prêté que si peu d’attention. La désertification est aujourd’hui sur nous. La Corse et les parties les plus pauvres de la Méditerranée, Perpignan et ses quartiers parmi les plus précaires de France, ou encore la dévastée Mayotte, n’ont plus d’eau. En Guadeloupe, l’érosion côtière frappe, puisant dans l’assèchement des terres. Quand dans le Massif central, ce sont évidemment les petits paysans qui souffrent le plus et qui n’ont pas les moyens d’acheter du foin pour leurs élevages lorsque celui-ci vient à manquer.

    Au fond, la désertification continue dans l’indifférence, parce qu’elle frappe d’abord et de manière évidente les plus vulnérables. Mais ne soyons pas naïfs: nous réaliserons bientôt que la désertification est notre affaire à tous. Espérons qu’alors il ne sera pas trop tard. En Afrique, c’est déjà 16 % du PIB qui s’est évaporé du fait de la désertification.

    Madame la Commissaire, nous ne sommes pas impuissants, ici, sur le territoire européen, pour un enjeu qui est bien un enjeu planétaire. La désertification est liée au dérèglement climatique et aux énergies fossiles. Alors sortons-en, et plus vite qu’aujourd’hui. Elle est aussi liée à l’agriculture intensive et à la déforestation que nous pouvons, que nous devons combattre. Alors agissons! Il n’y a plus de temps à perdre.

     
       

     

      Valentina Palmisano (The Left). – Signor Presidente, onorevoli colleghi, non è necessario guardare al Sahara per comprendere la desertificazione: i deserti si trovano ormai dietro casa. Sempre più spesso, immagini surreali, e allo stesso tempo drammatiche, mostrano paesaggi trasformati, fiumi ridotti a sentieri e laghi completamente prosciugati.

    Il 40 % del suolo del Sud Italia è già a rischio, come tanti paesi del Mediterraneo. In questo modo, stiamo trasformando paesaggi millenari.

    E questo non è soltanto il risultato del cambiamento climatico, ma anche di pratiche agricole non sostenibili, che hanno impoverito il nostro suolo. Ecco, il nostro approccio deve cambiare, privilegiando la qualità delle produzioni e la rigenerazione del suolo.

    Il degrado non è inevitabile, per fortuna: possiamo invertire la rotta. Servono però incentivi per modelli agricoli basati sulla qualità e sulla rigenerazione del suolo. La politica deve smettere di finanziare pratiche obsolete e supportare invece l’innovazione.

    Colleghi, la desertificazione, infatti, non è soltanto una sfida tecnica, ma è anche una questione di giustizia verso i nostri territori e soprattutto verso le generazioni future.

    Il mio monito è che non sia la COP17 a salvare il suolo europeo, ma il nostro impegno concreto, oggi.

     
       

     

      Salvatore De Meo (PPE). – Signor Presidente, signora Commissaria, onorevoli colleghi, la desertificazione è una delle sfide più urgenti del nostro tempo, aggravata dal cambiamento climatico e dalle attività dell’uomo.

    Non è solo una crisi ambientale, ma un problema sociale ed economico che minaccia la biodiversità, la sicurezza alimentare e la stabilità delle nostre comunità, alimentando tensioni e migrazioni forzate.

    Pensate che, ogni anno, 12 milioni di ettari vengono degradati, mettendo a rischio la sopravvivenza di oltre un miliardo di persone. Questo dato ci allarma e ci ricorda che la desertificazione, insieme alla crescente scarsità dell’acqua, richiede risposte immediate, coordinate e ambiziose.

    La COP16 è stata un’occasione per riflettere sulle nostre responsabilità, perché l’Unione europea manca di un’azione comune adeguata e le risorse dedicate sono ancora troppo limitate rispetto alla portata degli interventi.

    Dobbiamo impegnarci e sostenere lo sviluppo di politiche sostenibili, promuovendo pratiche agricole rigenerative e resilienti, un uso responsabile delle risorse idriche e l’innovazione tecnologica per ripristinare gli ambienti degradati.

    La cooperazione internazionale, inoltre, è importante perché nessun paese può affrontare da solo questa battaglia. La desertificazione non conosce confini e le sue conseguenze si ripercuotono su scala globale. Solo lavorando insieme possiamo affrontare la complessità di questa sfida. Ciò significa condividere conoscenze, tecnologie e risorse, oltre a costruire – come si sta facendo – partenariati solidi tra governi, organizzazioni internazionali, società civile e settore privato.

    Combattere la desertificazione significa investire nel futuro, nella nostra diversità, nella sicurezza alimentare e nella stabilità delle generazioni future.

     
       

     

      Thomas Bajada (S&D). – Mr President, desertification is not a story from far, far away. Its serious implications have long been affecting the Mediterranean region due to its unique ecosystems, economic dependencies and limited natural resources.

    In southern Spain, over-irrigation has led to soil erosion. In Crete, aquifers have been overexploited, leading to salinisation. In the neighbouring Sahel region, desertification has displaced millions of people, increasing migratory pressures towards Europe. And in Malta, increased pressure on desalinisation plants raised energy consumption and costs, which are passed on to households and businesses.

    Today this is not a story only for southern Europeans. It is also a story shared with other Europeans from temperate and humid climates like Bulgaria. In fact, last year 45 % of the EU’s territory faced drought, threatening food production and water security.

    Desertification is about humanity, our dependence on water for survival, and our need for water security and food security. Therefore, our response must be people-centred. The fight against desertification demands global cooperation, but it also starts at home in this very House. We need to dramatically increase our political commitment to water – we need to preserve our lands, help our nature to recover and conserve our water. And, dear Commissioner, we need to act now, with an ambitious European water resilience strategy before it is too late.

    As rapporteur of the Parliament’s initiative, I call for decisive action to protect our people and resources and build a sustainable future of a liveable world for future generations to come.

     
       

     

      France Jamet (PfE). – Monsieur le Président, la désertification est une menace importante, mais il en est une dont on ne parle pas assez, c’est la désertification de nos fonds marins. Déplorer l’acidification de nos océans, le réchauffement des eaux ou la hausse du niveau de la mer ne suffit pas. Il faut aussi dénoncer les causes de ce désastre. En France, par exemple, dans le Morbihan, on les trouve dans la construction stérilisante de parcs éoliens offshores ou dans les ravages de bateaux-usines sans-frontiéristes. Deux activités nocives, deux activités pourtant encouragées par l’Union européenne, qui témoignent de l’hypocrisie générale, voire de l’imposture pseudo-écologiste sur la préservation et la pérennité de nos écosystèmes.

    Depuis quinze ans, on constate la dégradation alarmante de nos océans, qui menace nos richesses maritimes, les métiers qui en dépendent, au premier rang desquels nos pêcheurs, et nos ressources alimentaires. Cet équilibre si fragile, aggravé par la pollution terrestre qui se déverse dans nos mers, a aussi un impact sur nos climats et sur la désertification terrestre. La pluie salvatrice qu’attendent nos agriculteurs et les populations touchées par la sécheresse, cette pluie salvatrice ne tombe pas du ciel, elle vient de nos océans.

    Alors tous ces vœux pieux et autres déclarations d’intention ne résoudront rien si nous ne remettons pas en cause l’écosystème mondialiste que vous avez mis en place, basé sur un libre-échangisme dérégulé au détriment d’un localisme raisonné et national.

     
       

     

      Vicent Marzà Ibáñez (Verts/ALE). – Señor presidente, en los últimos diez años, la superficie desertificada en la península ibérica se ha multiplicado por veintitrés. Es especialmente preocupante en el sur de Alicante, en la Vega Baja, un territorio de transición, precisamente donde la presión urbanística es salvaje, donde la presión del sobreturismo es salvaje, y donde ahora ya no ocurre de forma aislada que se corte el agua, sino que ya es de forma recurrente. Y no solo se corta en verano, también en otros periodos del año. Ni pasa solo con el agua destinada a la gente y, por lo tanto, con el agua de boca, sino también con la que usan los agricultores.

    En el mismo territorio también ya hay una lucha que se va viviendo en toda Europa, que es por la privatización del agua. Tenemos cada vez menos agua y cada vez está gestionada por menos manos y mirando siempre hacia el negocio. Por eso, hacen falta de una vez por todas políticas valientes que custodien el territorio, que nos adapten al cambio climático y que protejan a la ciudadanía, por ejemplo, ante situaciones como la dana que hemos vivido en Valencia. Y hace falta que el agua sea gestionada de forma pública para que sea un derecho garantizado para el conjunto de la ciudadanía.

    (El orador acepta responder a una pregunta formulada con arreglo al procedimiento de la «tarjeta azul»)

     
       

     

      João Oliveira (The Left), Pergunta segundo o procedimento «cartão azul». – Senhor Deputado, o Governo de Portugal avançou recentemente com uma lei chamada Lei dos Solos, que tem como objetivo permitir a construção em solos onde até hoje essa construção não era permitida. Esta decisão, naturalmente, favorece a especulação imobiliária, mas cria também problemas de desordenamento do território.

    O senhor deputado vem da região de Valência — onde ainda recentemente houve uma tragédia, na sequência de umas cheias —, por isso, queria colocar-lhe uma questão precisamente a partir da sua experiência.

    Considerando a experiência na região de Valência, decisões como esta do Governo português, de desordenamento do território e de favorecimento da especulação imobiliária, permitem a solução de algum problema, por exemplo, o problema da habitação — que é o pretexto que o Governo português utiliza —, ou o combate à desertificação dos territórios? Ou, pelo contrário, opções destas de desordenamento do território agravam ainda mais as consequências de catástrofes naturais, como aquelas que atingiram a região de Valência?

     
       

     

      Vicent Marzà Ibáñez (Verts/ALE), respuesta de «tarjeta azul». – Sí, señor diputado Oliveira, la presión urbanística y la urbanización salvaje de hoy son las víctimas del mañana. Lo hemos visto en nuestra tierra con la dana: se ha construido donde no se podía construir, porque se ha visto que el territorio solo era un espacio de especulación y no para que la gente tuviera garantizado su espacio vital y se protegieran sus vidas.

    La gente ha muerto por estar, entre otras cosas, urbanizando territorios que no se pueden urbanizar. Ha habido una dana que ha llegado con esa cantidad de agua brutal porque estaba absolutamente todo cimentado, porque la tierra no ha podido acoger toda el agua también. Por eso es tan importante que se combatan esas iniciativas como la del Gobierno portugués que usted dice, porque urbanizar, insisto, de forma salvaje es crear víctimas en el futuro.

     
       

     

      Sebastian Everding (The Left). – Herr Präsident, liebe Kolleginnen und Kollegen! „Wälder gehen den Völkern voran, die Wüsten folgen ihnen“. Das sagte schon im 17. Jahrhundert der französische Schriftsteller Chateaubriand. Der Klimawandel und der massive Einsatz von Düngemitteln verstärken die Bodenerosion und auch das Artensterben. Grundwasserentnahmen für Bergbautätigkeiten, die industrielle Massentierhaltung und die Bewässerung in der Landwirtschaft entziehen Wäldern das Grundwasser, das dringend für die Regeneration in Dürrezeiten benötigt wird. Sie tragen zur Bodenversandung bei, schädigen das Ökosystem und trocknen CO2-Senken wie Moore aus. Hier muss dringend durch mehr Schutzzonen und mehr Entnahmeeinschränkungen gehandelt werden.

    Ein weiteres Mittel gegen Wüstenbildung könnte ein stärkerer Fokus auf die Agroforstwirtschaft sein. Dürren bedrohen bereits jetzt die Lebensgrundlage von rund 1,8 Milliarden Menschen weltweit und bringen gefährdete Gemeinschaften immer weiter an den Rand des Abgrundes. Darüber hinaus kosten sie 300 Milliarden US‑Dollar pro Jahr und bedrohen wichtige Wirtschaftssektoren wie die Landwirtschaft, Energie und Wasser. Liebe Frau Kommissarin, liebe Kolleginnen und Kollegen, wie bei allen anderen Aspekten des Klimawandels gilt auch hier: Es ist weitaus günstiger, jetzt zu handeln, als später zu versuchen, die Folgen zu kompensieren.

    (Der Redner ist damit einverstanden, auf eine Frage nach dem Verfahren der „blauen Karte“ zu antworten.)

     
       



     

      Gabriella Gerzsenyi (PPE). – Tisztelt Elnök Úr! A teve helyes állat, de nem szeretnénk közlekedési eszközként használni. Az éghajlatváltozás miatt az elsivatagosodás Magyarországon is egyre nagyobb probléma. Duna-Tisza közi homokhátság hazánk területének mintegy 10%-a, most már az ENSZ szerint hivatalosan is félsivatag.

    Ez a kormányzati tétlenségnek a szimbóluma. Csökkennek a terméshozamok, megnehezül a megélhetés, homokviharok előfordulnak, tavak száradnak ki és élőhelyek szűnnek meg. S nem csak környezeti, hanem társadalmi és gazdasági válság is, hiszen veszélyben az élelmiszer-ellátás és elnéptelenedik a vidék.

    Már két évtizede tudományos tanulmány és program készült a problémára. Az akkori kormány elfogadta, a Fidesz-kormány azonban tudatosan figyelmen kívül hagyja a szakértők figyelmeztetéseit, elhanyagolja a vízgazdálkodást, a talajvédelmet, ellenben százmilliárdokat költ presztízsberuházásokra, például stadionokra.

    A megoldás kulcsa az uniós, nemzeti és a helyi összefogás. Úgy véljük, hogy európai szinten átfogó stratégiára van szükség a fenntartható földhasználat és a vízvisszatartó technológiák támogatására.

    A Tisza Magyarország legnépszerűbb pártja. Kormányra kerülésünk után vissza fogjuk állítani az önálló környezetvédelmi minisztériumot. Kiemelten foglalkozni fogunk a talajvédelemmel, vízgazdálkodással, európai forrásokat irányítunk az érintett közösségekhez, és támogatni fogjuk a gazdákat ebben a küzdelemben is.

     
       

     

      César Luena (S&D). – Señor presidente, señorías, es un debate en un contexto bastante difícil, porque tenemos al nuevo inquilino de la Casa Blanca y su negacionismo, y un Grupo PPE retardista, ya lo siento. El discurso de ayer del señor Tusk nos lleva por esos senderos peligrosos.

    Presento dos ideas que son como dos evidencias. El suelo es un recurso no renovable, es importante no olvidarlo. ¿Saben cuánto han aumentado las sequías en los últimos 25 años? Un 30 %. Y, en este contexto, señora comisaria, ¿qué puede hacer la Unión? Le digo que defender las políticas verdes —al paso que vamos— va a ser algo casi contracultural. Pues mire, en primer lugar, una evaluación de riesgo de desertificación y degradación de las tierras, como sugirió el Tribunal de Cuentas Europeo en el año 2018. No sabemos nada de ese informe. La Ley de vigilancia del suelo, por favor, se lo pido a sus colegas del Grupo PPE, porque la están rebajando y rebajando, como todas las normativas medioambientales. Podemos declararnos como región en riesgo de desertificación en el marco de la Convención de las Naciones Unidas. Para eso no tenemos que esperar a ninguna cumbre internacional, eso podemos hacerlo ya nosotros. Y, sobre todo, presente una estrategia específica de desertificación, como le ha dicho este Parlamento.

    Fíjese: hasta cuatro grandes medidas podemos hacer nosotros solos —la Unión Europea— y dar ejemplo en el mundo. Pero claro, hay demasiado retardismo en la derecha. No caiga en eso, señora comisaria, hay muchos Grupos que la vamos a apoyar.

    (El orador acepta responder a una pregunta formulada con arreglo al procedimiento de la «tarjeta azul»)

     
       


     

      César Luena (S&D), respuesta de «tarjeta azul». – Estaba mirando, señor presidente, por si era alguien de la extrema derecha, porque no hubiera aceptado nunca nada, ni tarjeta azul ni verde.

    Mire, todo lo relacionado con los fondos europeos, a pesar de su Grupo y de su política en España, lo estamos sacando adelante bien. Y no quiero recordar aquí lo que han intentado ustedes hacer con la vicepresidenta primera, Teresa Ribera. Es decir, que a pesar de que ustedes aquí estén en contra de todo y siempre estén poniendo obstáculos y problemas, nosotros estamos aplicando muy bien los fondos NextGenerationEU en España y lo seguiremos haciendo. Solo le pido una cosa: está bien que me haga esa pregunta, pero después, en España, ayuden, que siempre están en contra de todo.

     
       

     

      Jutta Paulus (Verts/ALE). – Herr Präsident, Frau Kommissarin, liebe Kolleginnen und Kollegen! Als ich ein Kind war, war Wüste die Sahara oder die Gobi. Ferne, beeindruckende Orte, beschrieben in den Romanen von Karl May oder den Schilderungen von Sven Hedin. Und heute, nur wenige Jahrzehnte später, sehen wir Wüstenbildung in Spanien, in Portugal, in Italien, in Griechenland, in Ungarn, in Bulgarien. Wer sich da wundert, hat die Wissenschaft ignoriert oder den Einflüsterern der fossilen Industrie geglaubt. Die haben Milliarden investiert, um Zweifel zu säen – Zweifel an den Erkenntnissen, die Exxon selbst schon in den 70ern ermittelt hatte, um sie dann in den Giftschrank zu legen und öffentlich die Wissenschaft zu diskreditieren.

    Die Leugner sitzen auch in diesem Haus bei den Rechten, den noch Rechteren und den noch noch Rechteren, und bei der Welt‑Wüsten‑Konferenz haben wir leider auch keine großen Fortschritte gemacht, denn auch hier sitzen ja die Petrostaaten mit am Tisch. Deshalb: Europa muss handeln. Wir brauchen ein Klimaanpassungsgesetz, das naturbasierte Lösungen in den Mittelpunkt stellt, und eine glaubwürdige Unterstützung für die Länder, die am stärksten betroffen sind.

    (Die Rednerin ist damit einverstanden, auf eine Frage nach dem Verfahren der „blauen Karte“ zu antworten.)

     
       


     

      Jutta Paulus (Verts/ALE), Antwort auf eine Frage nach dem Verfahren der „blauen Karte“. – Vielen Dank, Frau Kollegin, für die Frage. Es ist mir ein Rätsel, wo Sie Ihre Anschuldigungen und Informationen hernehmen, denn wir sind ja durchaus die Partei, die für eine bäuerliche, kleinbäuerliche, familienzentrierte Landwirtschaft eintritt, die für eine nachhaltige Landwirtschaft eintritt, die im Einklang mit dem steht, was uns die Wissenschaft empfiehlt.

    Da brauchen Sie bloß mal in die Berichte unserer eigenen Agentur zu schauen – die Europäische Umweltagentur ist eine Agentur dieser Europäischen Union. Da sitzen hochmögende Wissenschaftlerinnen und Wissenschaftler, die sich seit Jahren und Jahrzehnten mit diesen Fragen beschäftigen. Und das, was wir in unseren Programmen, in unseren Vorschlägen aufgreifen, entspricht dem, was diese Wissenschaft uns vorschlägt, denn wir stehen auf dem Boden der Wissenschaft und nicht auf dem Boden der Lobbyinteressen, die hier leider ihre Papiere verbreiten.

     
       


     

      Borja Giménez Larraz (PPE). – Señor presidente, el agua es vida y el agua es desarrollo. Hoy vemos como la desertificación avanza. La falta de agua se ha convertido en una amenaza, especialmente para los países y las regiones del sur de Europa. Aunque algunos somos más vulnerables, este desafío nos afecta a todos. Hablamos del acceso a un bien básico. Hablamos de un recurso fundamental para la agricultura y para la ganadería, para la industria, para crear empleo y fijar la población.

    La Unión Europea debe implicarse de lleno en el impulso de un pacto europeo del agua que establezca medidas integrales para garantizar una gestión sostenible y eficiente de los recursos hídricos. Y ese pacto hay que dotarlo de fondos: necesitamos fondos para construir y modernizar infraestructuras hidráulicas, como embalses y presas que permitan regular cauces y gestionar periodos de sequía de forma más eficaz. Necesitamos fondos para mejorar y modernizar los sistemas de regadío. Todo ello acompañado de políticas de gestión eficiente del agua. Y hay que actuar con urgencia.

    En España, en mi región, Aragón, que tiene zonas profundamente áridas y desérticas, el Parlamento autonómico aprobó por unanimidad en 1992 el llamado Pacto del Agua, un acuerdo que reivindica las obras hidráulicas necesarias para garantizar las necesidades presentes y futuras de la comunidad. Pues bien, en estos treinta años hemos avanzado muy poco: tenemos más de treinta obras pendientes. Sabemos desde hace décadas qué es lo que queremos, lo que necesitamos, pero la falta de voluntad y fondos lo ha dejado en el olvido. Ante la inacción del Gobierno de España, la Unión Europea debe adoptar un papel activo. Debe contribuir a financiar estas obras. Hoy ya no es una opción: es una obligación.

     
       

     

      Camilla Laureti (S&D). – Signor Presidente, onorevoli colleghi, la desertificazione va affrontata a livello globale, perché mette a rischio biodiversità, risorse idriche e sicurezza alimentare e fa tremare la giustizia sociale.

    Spaventa pensare che, anche a causa degli effetti della desertificazione e della siccità, entro il 2050 oltre 200 milioni di persone potrebbero essere costrette a migrare.

    Lo vediamo anche in Europa: il Sud soffre sempre di più per siccità e carenza di acqua. In Italia abbiamo intere regioni che restano per lunghi periodi senz’acqua, anche a causa di una scorretta gestione della risorsa idrica. L’acqua – il nostro bene più prezioso – non è una merce, ma è un diritto, e dobbiamo incentivarne conservazione e riuso e lavorare sulle reti idriche.

    Dobbiamo proteggere e ripristinare i nostri suoli, favorire con finanziamenti ad hoc e risorse il passaggio da metodi di coltivazione intensivi a pratiche agricole sostenibili. Se perdiamo i nostri suoli, perdiamo il pianeta.

    La desertificazione l’abbiamo vista arrivare e porta anche, e soprattutto, la nostra impronta: per questo, dobbiamo smettere di far finta che non esista e dobbiamo agire sin da ora.

     
       

     

      Marco Falcone (PPE). – Signor Presidente, signora Commissaria, onorevoli colleghi, in un momento in cui larga parte del continente fronteggia l’inverno, potrebbe apparire fuori contesto parlare di desertificazione e carenza idrica. Eppure, questo dovrebbe essere l’atteggiamento che qui in Europa dovremmo tutti avere: occuparci per tempo di questa enorme sfida, di questa enorme emergenza, prima che sia troppo tardi.

    E ve lo dice chi arriva qua a Strasburgo da una delle due più importanti isole del Mediterraneo, la Sicilia, e rappresenta due delle più importanti isole – assieme alla Sicilia, anche la Sardegna – entrambe fortemente a rischio. Si immagina che più del 50 % del territorio delle due regioni, addirittura entro i prossimi trent’anni, potrebbe essere a rischio desertificazione.

    Certo, il cambiamento climatico è un fattore decisivo. Purtroppo, però, la lotta alla desertificazione non può essere affidata solo alle misure collegate in qualche modo al Green Deal. Anzi, questo grande contenitore potrebbe diventare un luogo in cui tutto si perde, e già la Corte dei conti europea, nel 2018, aveva invitato l’Unione europea ad avere una visione completa e a porre in essere dei programmi di pianificazione.

    Ecco perché noi del Partito Popolare Europeo siamo per la difesa del territorio, certamente, e riteniamo che le isole debbano essere guardate con grande attenzione. Come? Tramite un serio programma di investimenti e, se vogliamo, di infrastrutture, non solo di transizione energetica.

    L’Europa deve avere il coraggio di varare un grande piano di stanziamenti strutturali per la lotta all’avanzare del deserto.

    (L’oratore accetta di rispondere a una domanda “cartellino blu”)

     
       


     

      Marco Falcone (PPE), risposta a una domanda “cartellino blu”. – Noi del Partito Popolare Europeo guardiamo a un approccio molto pragmatico. Certamente, la transizione ecologica diventa per noi il faro, ma al contempo riteniamo che un serio programma di investimenti debba essere calibrato alle esigenze del territorio. Non dobbiamo eccedere in un senso, ma nemmeno in un altro.

    Certamente, gli interventi in agricoltura, gli interventi tecnologici e, se vogliamo, anche un serio piano di investimenti, soprattutto in condutture idriche di adduzione e, se vogliamo, di approvvigionamento, possono rappresentare certamente una soluzione.

    Lo dico per la Sicilia – io provengo dalla Sicilia – dove l’acqua non manca, ma mancano le infrastrutture. Per cui, grazie per il suo input.

     
       

     

      Leire Pajín (S&D). – Señor presidente, señorías, se ha dicho aquí reiteradamente, nos enfrentamos a una crisis aparentemente silenciosa, pero profundamente devastadora: la desertificación, la pérdida de suelos fértiles y de recursos hídricos. De nuevo, es una crisis global que nos afecta a todos, también en Europa, especialmente en el Mediterráneo, en países como España, en regiones como Alicante.

    Hasta el 40 % de las tierras del mundo —casi la mitad— están degradadas. Esto supone una amenaza a la biodiversidad, pero también a la seguridad alimentaria. Las cifras lo dejan bien claro: el 90 % de la población mundial pasa hambre; es decir, más de 700 millones de personas, por no hablar de los cientos de miles de desplazados y de refugiados por la desertificación y por el cambio climático.

    El derecho a la alimentación es fundamental. Señorías, no podemos estar hablando aquí de las sequías y de la desertificación, pero luego intentar retrasar y retardar las normas que protegen contra la degradación de los suelos o que protegen la biodiversidad. No podemos hablar aquí de las cifras, pero después querer ser más laxos con las leyes que luchan contra eso.

    Por eso, señorías, como dijo el Tribunal de Cuentas, como dijo Naciones Unidas y como ha dicho el Consejo, necesitamos un plan ambicioso, transversal, que se coordine con otras Convenciones de las Naciones Unidas, con presupuesto y con objetivos, sin más demora.

     
       

     

      Manuela Ripa (PPE). – Herr Präsident! Die Wüstenbildung ist eines der drängendsten Probleme unserer Zeit – nicht nur etwa in Afrika oder in Asien, auch in Europa. 13 EU‑Länder in Süd‑, Mittel‑ und Osteuropa sind nach eigenen Angaben bereits betroffen. Auch in anderen Teilen Europas schreitet die Austrocknung von Böden voran. Zukünftig könnten auch hier Wüsten entstehen. Dass es dringenden Handlungsbedarf gibt, dieses Bewusstsein war nicht ausreichend vorhanden bei der COP16 in Riad. Auch in der EU wird definitiv nicht genügend getan. Probleme sind voranschreitende Bodenversiegelung, Entwaldung, zu intensive Landnutzung, falsche Bewirtschaftung. Der Klimawandel mit Dürren und Starkregenereignissen beschleunigt zudem noch den Verlust fruchtbarer Böden.

    Daher ist es von entscheidender Bedeutung, dass wir in Europa neben einer effektiven Wasserstrategie das EU‑Bodengesetz verabschieden – als erster wichtiger Schritt hin zu mehr Bodenschutz und gegen Wüstenbildung. Bei der Wüstenbildung ist es wie beim Klimawandel. Es ist viel kostengünstiger und einfacher, jetzt Gegenmaßnahmen zu ergreifen, als die Dinge umzukehren, wenn der Schaden schon eingetreten ist. Denn dann ist es zu spät.

     
       

     

      Jean-Marc Germain (S&D). – Monsieur le Président, mes chers collègues, Bakou, Cali, Riyad, les différentes COP se suivent et se ressemblent. Elles sont toujours utiles par leur existence même, mais jamais à la hauteur: 40 % des sols seraient dégradés dans le monde et 75 % de la population mondiale en sera affectée d’ici à 2050, 75 %. On le sait, les plus vulnérables en sont les premières victimes.

    Appelons un chat un chat: cette COP fut une déception. Et si l’Europe a fait preuve de volontarisme sur la promotion de la résilience à la sécheresse, son rôle a été plus ambigu: en s’opposant à un protocole juridiquement contraignant sur la sécheresse, en portant insuffisamment les pratiques agricoles durables et par une contribution financière insuffisante. Le Partenariat mondial de résilience à la sécheresse et ses 12 milliards de promesses a le mérite d’exister. Mais c’est une goutte d’eau, si je puis dire, par rapport aux 2 500 milliards nécessaires pour restaurer le milliard d’hectares de terres dégradées.

    Alors que Donald Trump vient de sortir de l’accord sur le climat, faisons preuve de leadership. Allons en Mongolie pour la COP17 avec des propositions et des aides concrètes, faute de quoi la planète et les générations futures ne nous le pardonneront pas.

     
       

     

      Dan-Ştefan Motreanu (PPE). – Doamnă comisară, domnule președinte, stimați colegi, deșertificarea afectează deja 13 state membre, iar seceta cauzează pierderi de 9 miliarde de euro anual. Doar în România, 400 de mii de hectare sunt afectate de deșertificare. Adoptarea Regulamentului privind restaurarea naturii impune statelor membre să refacă 20 % din terenurile degradate până în 2030.

    Din păcate, regulamentul nu a fost însoțit de alocări bugetare suplimentare. Drept urmare, solicit Comisiei Europene ca în următorul exercițiu financiar să abordeze această insuficiență și să pună fonduri concrete la dispoziția țărilor din Uniune.

    Totodată, pentru menținerea securității alimentare, este esențial să sporim investițiile în dezvoltarea sistemelor de irigații inteligente, utilizarea apelor urbane reziduale tratate, captarea apei pluviale și construirea de rezervoare.

    În plus, rezultatele cercetării privind desalinizarea apei marine din programul Orizont Europa trebuie să fie accesibile statelor membre pentru implementarea acestor tehnologii moderne la costuri reduse.

     
       

     

      Stefano Bonaccini (S&D). – Signor Presidente, onorevoli colleghi, siccità, incendi e pratiche produttive che minano la fertilità dei suoli stanno innalzando il rischio di desertificazione anche qui in Europa, dove 13 paesi, tra cui il mio e altri sei nel bacino del Mediterraneo in particolare, sono colpiti da questo fenomeno.

    A rimetterci sono produzione e sicurezza alimentare, tessuto sociale ed economico delle aree colpite, e i nostri agricoltori, prime vittime dei cambiamenti climatici che qualcuno, addirittura ancora oggi, nega.

    L’Unione europea deve essere protagonista in questa sfida a livello globale, diffondendo nei paesi più a rischio buone pratiche – ad esempio, irrigazione di precisione o depurazione e riuso agricolo delle acque reflue – e con un piano europeo per le acque, e per l’acqua, che con più risorse per le politiche di sviluppo regionale e rurale – confido per delega nel Commissario Fitto – sostenga e semplifichi investimenti per una maggiore capacità di accumulo – dighe invasi, bacini e reti di distribuzione più efficienti – e autorizzi nuove colture che necessitano di meno acqua.

    Il prossimo bilancio pluriennale, allora, deve diventare l’occasione per migliorare alcune politiche dell’Unione e sostenere con i fatti, e non le parole, cittadini e imprese nel contrasto al cambiamento climatico.

     
       

     

      Ştefan Muşoiu (S&D). – Domnule președinte, doamnă comisară, dragi colegi, la nivelul Uniunii, deșertificarea afectează 8 % din teritoriu, așa cum au precizat și colegii mei antevorbitori. Zonele cele mai prejudiciate însă sunt cele din Europa Centrală, de Sud și de Est. Și țara mea, România, suferă din cauza acestui proces nesănătos al naturii. 40 % din suprafața sa agricolă este în pericol să se transforme în dune de nisip.

    De aceea, nu trebuie să permitem ca acest neajuns major să devină o amenințare la adresa siguranței alimentare a generațiilor viitoare de europeni. Acest fenomen grav trebuie decelerat prin strategii comunitare concrete și ferme.

    Trebuie să avem în vedere că micii fermieri din toate aceste zone de pe continent, afectate de deșertificare, sunt și ei în pericol. Nu au cum să se lupte singuri împotriva naturii și trebuie să le venim în ajutor. Au nevoie de susținere financiară europeană care să dubleze eforturile mai mari sau mai mici ale guvernelor naționale. Mizez pe înțelepciunea noastră comună și pe o reacție mai bine conturată a Comisiei pentru frânarea acestui fenomen natural periculos.

     
       

       

    Interventions à la demande

     
       


     

      Hélder Sousa Silva (PPE). – Senhor Presidente, Senhora Comissária, a desertificação é um desafio crescente que se coloca à União Europeia, especialmente nos Estados-Membros do Sul e, particularmente, próximos do Mediterrâneo.

    A falta de água, a exaustão dos solos e as alterações climáticas são, hoje, uma dura realidade nalgumas zonas da União e, além disso, assistimos também ao despovoamento de algumas regiões do interior por falta de atratividade e de competitividade.

    Portugal enfrenta cumulativamente estes dois problemas. As regiões do Alentejo e do Algarve evidenciam uma brutal falta de água, quer para agricultura, quer para consumo humano. E as regiões próximas da fronteira com Espanha sofrem de despovoamento.

    Em resultado destas duas situações, assistimos a fluxos migratórios do interior para o litoral, das zonas rurais para as zonas urbanas, que são verdadeiros problemas. Por isso, considero que o próximo quadro financeiro plurianual deve responder à desertificação e ao despovoamento e, assim, resolver o problema de coesão territorial que enfrentamos na nossa União.

     
       

     

      Seán Kelly (PPE). – (Níor phioc an micreafón suas tús na hóráide) … labhairt ar an ábhar tábhachtach seo, gaineamhlú an domhain.

    And depending on who you’re listening to, between 20 % and 40 % of land is threatened with desertification, particularly in places like the Sahel, Gobi Desert, South America. I think it’s good that the European Union are now emphasising that deforestation, in particular, has to end in any free trade deals we’ll be doing.

    Within Europe, we will be shortly discussing the next CAP and, obviously, protection of the soil, nature restoration are going to be key in that. And I would make one suggestion: give every farmer in Europe a minimum of 50 trees native to their own area to set on their farm. This would help to restore nature, protect the soils and be a small step to end desertification.

    Bímis ag dul ar aghaidh de réir a chéile, mar de réir a chéile a dhéantar na caisleáin.

     
       

       

    (Fin des interventions à la demande)

     
       

     

      Jessika Roswall, Member of the Commission. – Mr President, honourable Members, your interventions show how important it is for the EU to continue tackling the interconnected challenges of droughts, land use, climate change, biodiversity loss and water scarcity together for our economy, our security and our livelihoods. They show that we are not ignoring the difficulties we face in the current geopolitical climate. And as many of you have also mentioned, we are all affected.

    I just also want to say – and this is to César Luena – that the Commission is not ignoring this. And I just want to repeat one thing that I said in my first remark: the Commission is responding to the recommendation of the European Court of Auditors by developing a methodology to assess land degradation and desertification for the EU.

    Although we didn’t leave Riyadh with all our desired outcomes, we should still acknowledge and build on the important progress that was made. So now we need to keep up the momentum. We need to accelerate implementation at national and international levels, and continue our work to agree on the outstanding COP16 decisions, especially on droughts.

    Many of you have underlined the importance of water and the need to make progress on strengthening our water resilience, so I also want to say – as I said earlier, and I know you know – that the Commission has made it a priority to present a new strategy on this.

    I know Parliament is already making progress on its reports on this. I thank you today for your input, and I look forward to close dialogue with you, with your rapporteur, Thomas Bajada, and all of you on this important topic, and of course, on continuing fighting desertification.

     
       


       

    (La séance est suspendue quelques instants)

     
       

       

    IN THE CHAIR: CHRISTEL SCHALDEMOSE
    Vice-President

     

    3. Resumption of the sitting

       

    (The sitting resumed at 10:29)

     

    4. Cryptocurrencies – need for global standards (debate)


     

      Magnus Brunner, Member of the Commission. – Madam President, honourable Members, first of all, sorry I’m a couple of minutes late – I was in the office, actually, but I didn’t make it here on time, I’m sorry about that. Also, thank you for the opportunity to contribute to this debate on the need to agree on global policy standards for crypto. As you may well know, these standards, of course, do exist and have been agreed in international fora. Let me give you a brief overview of how they came about and where the EU stands in their implementation.

    International regulatory and policy organisations have been working on international crypto standards for a number of years now. Early on, there was an international understanding that crypto markets are global markets and are largely unregulated and pose, of course, also risks that need to be addressed. And then in 2023 the G20 unveiled the crypto-asset policy implementation roadmap, which reflected the policy and regulatory responses developed primarily by the International Monetary Fund, the Financial Stability Board and standard-setting bodies covering specific areas of finance such as the International Organization of Securities Commissions on investor protection, or also the Financial Action Task Force on anti-money laundering.

    The core of these international standards on crypto are the FSB recommendations on crypto-asset markets and activities, and recommendations for global stablecoin arrangements. The European Union is the first major jurisdiction to have reflected those standards in law. We have done this by adopting the regulation on markets in crypto-assets (MiCA), which has now started to apply, and we have also amended other legislation such as the Anti-Money Laundering Directive and also the Transfer of Funds Regulation.

    We are strongly committed to ensuring the global implementation of international standards. We regularly advocate this in the relevant international fora in which we as a European Union participate.

    Implementation of international standards of course is necessary, not only to ensure a minimum level of policy and regulatory convergence internationally, but also to ensure that jurisdictions follow a sensible common denominator in addressing the risks also posed by the crypto markets. This is particularly important in crypto markets, which are global in nature, of course – yes, everyone knows that, with crypto exchanges and platforms operating across borders and assets also moving on open networks that are widely accessible.

    The adoption of international crypto standards has so far been incremental. Indeed, jurisdictions have made progress also in implementing the policy and also the regulatory responses developed by, as I said, the IMF, the FSB and the standard‑setting bodies. Almost all FSB jurisdictions have plans to develop new – or at least revise existing – regulatory frameworks for crypto.

    Information gathered at the international level suggests that the majority of FSB member jurisdictions expect to achieve alignment with the FSB framework by this year, by 2025. And this is of course very good news. We will continue to support relevant international organisations to ensure that the momentum we have now in implementing international standards on crypto is maintained. And we stand, of course, ready to work with jurisdictions that wish to benefit from our experience with MiCA. This includes the US. The US has been heavily involved in defining, together with other partners, the international standards on crypto, and I’m convinced that the new administration is fully aware of the fact that a robust policy response to crypto requires also an international effort.

    We therefore look forward, of course, to continuing working with the US authorities as they consider their policy approach to crypto assets and related service providers, and we would view it as a positive development if the US were to make progress on crypto‑specific legislation that would provide greater legal clarity on the treatment of crypto assets and related service providers, while at the same time also addressing the risks we are facing. And we believe existing international standards should form the basis of any crypto framework, including, of course, the one in the US, not least because they ensure international convergence in this area and contribute to a level playing field.

    Our experience in the European Union has shown that ensuring legal clarity is the right way to support innovation in these markets, while mitigating, on the other hand, of course, also the risks we are facing. Developments in the crypto market since the adoption of MiCA have only strengthened the case for legal clarity. Whatever approach the US ultimately takes, we do hope it will ensure that innovation flourishes while allowing, of course, on the other hand, also bad actors to be weeded out.

     
       

     

      Markus Ferber, im Namen der PPE-Fraktion. – Frau Präsidentin, Herr Kommissar, liebe Kolleginnen, liebe Kollegen! Diverse Kryptowährungen, allen voran Bitcoin, haben in den vergangenen Tagen Rekordkurse erklommen. Der Grund ist klar: Die neue Administration in den Vereinigten Staaten ist diese Woche ins Amt gekommen, und sie wird sehr viel kryptofreundlicher sein als die Vorgängerverwaltung. Der neue US-Präsident spricht gar davon, eine strategische Bitcoin-Reserve aufzubauen und die USA zum Krypto-Mekka der Welt machen zu wollen. Dass Donald Trump es wohl ernst meint, sieht man auch daran, dass er selbst einen eigenen Meme Coin aufgelegt hat, der wohl nur ein Ziel hat: seinen Reichtum noch etwas zu vergrößern. Ich glaube, die Anleger werden nichts davon haben.

    Unabhängig davon, wie man zu Kryptowährungen steht, unterstreicht diese Entwicklung ein grundsätzliches Problem: Obwohl Kryptowährungen ein globales Phänomen sind, haben wir keinen internationalen Ordnungsrahmen. Ein Regierungswechsel in den USA führt deshalb sehr schnell dazu, dass sich die Marktlage rapide verändert und da auch der Verbraucherschutz, auch für europäische Anleger, massiv unter die Räder kommt. In anderen Teilen des Finanzmarkts, vom Bankensektor bis zum Clearing, haben wir uns aus guten Gründen auf internationale Standards verständigt. Die haben wir im Kryptosektor bisher nicht, und das rächt sich jetzt auch.

    In der Europäischen Union sind wir mit der Verordnung über Märkte für Krypto-Assets, der MiCAR, weltweit Vorreiter. Wir haben in der EU ein glaubwürdiges Regelwerk geschaffen, das den Wildwest-Auswüchsen wie in den USA einen Riegel vorschiebt und gleichzeitig Vorhersehbarkeit und Planbarkeit für alle Marktteilnehmer schafft. Es gäbe also bereits eine Blaupause für internationale Mindeststandards. Deswegen, lieber Herr Kommissar, sollten wir von dieser Blaupause Gebrauch machen und auf internationale Lösungen hinwirken. Dass das nicht einfach ist, ist klar. Aber wenn wir nicht anfangen, werden wir es nie schaffen.

     
       

     

      Jonás Fernández, en nombre del Grupo S&D. – Señora presidenta, señor comisario, sin duda, yo creo que todos podríamos convenir en la necesidad de esas normas internacionales para el mercado de las cripto. Así he entendido las palabras de la Comisión apelando a la necesidad de fijar esos estándares mínimos.

    Pero, ciertamente, viendo lo que estamos viendo al otro lado del Atlántico, yo creo que deberíamos empezar a reconsiderar los buenos propósitos y empezar a trabajar más para proteger Europa, en un tiempo en que Donald Trump e incluso su mujer emiten su propia moneda —como decía mi colega Markus Ferber— en los días previos a tomar posesión, mostrando poco respeto, en mi opinión, por la propia institucionalidad. Deberíamos recibir el mensaje en Europa, y yo creo que el mensaje que tenemos que recibir es que no podemos contar con la Administración estadounidense en los próximos años para llegar a ningún tipo de acuerdo mínimo sobre criptomonedas.

    Por lo tanto, en vez de apelar a los buenos propósitos en los que llevamos empeñados años, deberíamos tener una posición mucho más asertiva y ser conscientes de que ese escenario va a ser casi imposible y que, por lo tanto, tenemos que aplicar el Reglamento MiCA —claro que hay que aplicar el Reglamento MiCA—, pero tenemos que también proteger a nuestro sector financiero, a nuestros bancos y a nuestros seguros de posibles impactos de inestabilidad financiera derivada de las cripto más allá de Europa. Y debemos también acelerar la negociación para tener un euro digital en Europa que permita ofrecer una respuesta propia a las necesidades, al parecer, de algunos inversores.

     
       


     

      Marlena Maląg, w imieniu grupy ECR. – Szanowni Państwo. Unia Europejska dzięki wprowadzeniu przepisów MICA stała się globalnym pionierem w regulacji rynku kryptoaktywów, wyzwalając je tak naprawdę z szarej strefy. Należy docenić fakt, że regulacja MICA wprowadza obowiązek raportowania, zapewnia mechanizmy kontroli wewnętrznej oraz wymaga separacji aktywów klienta od aktywów dostawców usług kryptowalutowych. To podstawy, które zapewniają większą przejrzystość, bezpieczeństwo inwestorów. Co ważne, zabezpieczone są także interesy państw członkowskich spoza strefy euro.

    Kryptowaluty, jak wiemy, nie mają granic. Musimy sobie jednak jasno powiedzieć, że różnice między krajami znacząco obniżają atrakcyjność tego rynku i spowalniają jego rozwój. Dlatego konieczne jest wypracowanie globalnych standardów regulacyjnych. Unia Europejska, choć jest liderem w tej dziedzinie, musi uważać, by nie przyjąć jak zwykle zbyt restrykcyjnego podejścia, które mogłoby wepchnąć innowacje, inwestycje w bardziej elastyczne rynki spoza Unii Europejskiej.

    Jeszcze niedawno kryptowaluty ożywiały marzenia części inwestorów o infrastrukturze finansowej niezależnej od banków centralnych. Dziś te marzenia nieco osłabły. Ale kryptowaluty są i będą trwałym elementem globalnej gospodarki. Naszym zadaniem jest traktowanie kryptowalut jako narzędzi finansowych, które wymagają odpowiedniej regulacji, ale bliskich rynkom tradycyjnym, takich regulacji, które zapewnią bezpieczeństwo inwestorom, nie tłumiąc jednocześnie innowacji. Nie możemy przespać tej rewolucji. Przyszłość rynku kryptowalut wymaga równowagi między ochroną interesów klienta a umożliwieniem przede wszystkim dalszego rozwoju.

     
       

     

      Stéphanie Yon-Courtin, au nom du groupe Renew. – Madame la Présidente, Monsieur le Commissaire, aux États-Unis, Donald Trump se rêve en président de la crypto. Résultat, la cryptosphère s’enflamme, une cryptomonnaie créée à son effigie et une autre dédiée à Melania, le bitcoin qui s’envole et la démission du président de l’Autorité des marchés financiers américains. Pendant ce chaos, en Europe, nous avons fait un choix différent: réguler pour protéger.

    Avec le règlement MiCA, nous avons posé les bases d’un marché des cryptomonnaies sécurisé, imposant des mesures solides contre le blanchiment d’argent et contre le financement du terrorisme, comme par exemple la vérification des identités et le signalement des activités suspectes. Car oui, les cryptomonnaies ont des avantages. Elles offrent de nouvelles opportunités d’investissement, encouragent les plus jeunes à venir investir, et permettent un soutien vital face à des systèmes corrompus ou en zone de guerre, comme pour la diaspora ukrainienne.

    Mais elles ne doivent pas devenir une jungle mondiale au service des fraudeurs et des criminels. À ceux qui, en Europe, flirtent avec les leaders américains du bitcoin: savez-vous que leur véritable objectif est de contourner nos devises officielles, à commencer par l’euro, et de saboter notre système monétaire en Europe? Drôles de souverainistes. Comme pour l’intelligence artificielle ou la taxation minimale, l’Europe doit pousser pour un cadre mondial. Les cryptomonnaies ne doivent pas devenir un eldorado pour les tricheurs, mais un outil au service de tous les investisseurs 2.0.

    Monsieur le Commissaire, agissez maintenant pour adopter au plus vite des normes mondiales minimales. Il y va de la souveraineté de l’Europe, de celle de l’euro et de la protection de nos concitoyens européens.

     
       

     

      Rasmus Andresen, im Namen der Verts/ALE-Fraktion. – Frau Präsidentin! Seit knapp einer Woche gibt es den Trump Meme Coin – ökonomisch wertlos und für Trump‑Fans vor allem eine emotionale Bindung zu ihrem großen Idol. Der TrumpCoin ist eine Betrugsmaschine, das zum Teil auch ausländische Geld geht in die Kassen der Trump‑Familie. Während Ex‑US‑Präsident Jimmy Carter Ende der 70er-Jahre noch seine Erdnussfarm verkaufen musste, als er gewählt wurde, betrügt Trump auf der ganzen Linie. Aber der TrumpCoin ist vor allem auch eine Symbolik für eine andere US‑Politik im Bereich der Kryptowährungsregulierung, und das sollte uns Sorgen machen. Wir sollten hier ganz klar feststellen, dass Anlagen in Kryptos mit hohen Risiken verbunden sind und dass wir auch wissen, dass das Geldwäscherisiko bei Kryptowährungen deutlich höher ist als in anderen Bereichen.

    Der Mehrwert, der durch Kryptowährungen geschaffen wird, ist fraglich. US‑Präsident Trump öffnet mit blinder Deregulierung und auch, indem er Krypto‑Ultras in wichtige Finanzämter in seiner Administration befördert, der Privatisierung des Währungssystems Tür und Tor. Lassen Sie mich ganz klar sagen: Das darf nicht der europäische Weg sein. Ich bin froh, dass eigentlich aus den großen Fraktionen fast alle Redner auch Skepsis zum Ausdruck gebracht haben und deutlich gemacht haben, dass wir auf der einen Seite internationale Standards brauchen – ja –, aber dass wir nicht den Kurs einschlagen sollten, den die Trump‑Administration hier auf den Weg bringt.

     
       


     

      Pasquale Tridico, a nome del gruppo The Left. – Signora Presidente, signor Commissario, onorevoli colleghi, mentre negli Stati Uniti, con l’insediamento di Trump, il Bitcoin raggiunge valori storici e persino una moneta meme di Trump guadagna miliardi di capitalizzazione, in Europa il dibattito sulle valute digitali resta fermo, specialmente per quanto riguarda l’euro digitale.

    L’euro digitale emesso dalla Banca centrale europea rappresenterebbe una risposta pubblica, sicura e indipendente, a sostegno della nostra autonomia strategica ed economica rispetto alle criptovalute, che, a causa della loro volatilità e della mancanza di regolamentazione, non possono offrire un metodo di pagamento stabile.

    Questo progetto, però, rimane bloccato per alcuni paesi che mettono il veto e gruppi politici. Noi, invece, sosteniamo con forza l’introduzione di questo strumento, perché garantirebbe l’indipendenza strategica dell’Europa dai colossi stranieri, principalmente americani, che monopolizzano i pagamenti elettronici, permetterebbe la costruzione di un’infrastruttura europea per i pagamenti digitali, ridurrebbe i costi di transazione per consumatori e venditori e, inoltre, aumenterebbe la stabilità finanziaria.

    L’euro digitale rappresenterebbe anche una risposta cruciale nella lotta all’evasione, che ogni anno priva il welfare europeo di 824 miliardi di euro di gettito fiscale.

    Commissario, Le chiediamo un passo in avanti rispetto all’euro digitale.

     
       

     

      René Aust, im Namen der ESN-Fraktion. – Frau Präsidentin! In den vergangenen Jahren sind weltweit die staatlichen Möglichkeiten gewachsen, uns Bürger zu überwachen. Der Wunsch, sich gegen diese Überwachung zu schützen, wächst jedoch ebenso. Darum erleben Kryptowährungen wie Bitcoin einen solchen Aufschwung. Während der Coronazeit haben wir beispielsweise in Kanada erleben müssen, wie unliebsamen Regierungskritikern die Konten gesperrt wurden. Manche Betroffene hatten nach diesen Kontoschließungen nicht einmal mehr die Möglichkeit, ihre Mieten zu bezahlen. Kryptowährungen schützen durch Verschlüsselungstechnologien unsere Bürger vor übergriffigen Staaten. Gut so!

    Darüber hinaus wollen wir, dass unser Geld sicher ist vor staatlicher Manipulation. Immer mehr Gelddruckerei durch Zentralbanken entwertet das Geld weltweit. Der Euro hat seit dem Jahr 2001 um mehr als ein Drittel seiner Kaufkraft verloren. Darum wollen viele Bürger eine manipulationssichere Währung. Auch das versprechen Kryptowährungen. Im Übrigen: Wenn hier gerade davon gesprochen wird, dass Terrorfinanzierung und Drogenfinanzierung durch Bitcoin begangen wird: 90 Prozent aller Terrorfinanzierungen finden nach wie vor durch Dollar oder Euro statt. Wir setzen uns für die Souveränität unserer Nationen ein, aber genauso setzen wir uns ein für die Souveränität unserer Bürger. Wir trauen ihnen zu, für sich selber zu entscheiden. Darum wollen wir Neuerungen wie Bitcoin und Co. auch weiterhin zulassen, und zwar so, dass nicht Politiker, die keine Ahnung von diesen Dingen haben, darin rummanipulieren. Die neue Trump‑Regierung macht es vor: keine Angst vor Innovation, sondern die Chancen ergreifen. Technologieoffenheit also auch im Finanzbereich.

     
       

     

      Regina Doherty (PPE). – Madam President, colleagues, we have spent the last few months since I’ve been here intensively talking about the importance of innovation, and it is clear that, despite all of the risks it entails, crypto stems from a desire to innovate and operate outside traditional norms and structures.

    In general, legislators and regulators should focus on creating the conditions for innovation and sectors to thrive. But in this case, there’s vital issues of trust, consumer protection and there is obviously the serious potential for financial crime that still exists.

    And yet, on the other side of the Atlantic, we hear the promises of the new administration of the sector, even as the President’s own meme coins were launched and then crashed and lost half their value in the space of one weekend.

    I think there are serious questions that have to be asked about a situation where the most powerful politician and one of the richest men in the world can self‑enrich himself through a scheme while purporting to be in charge of the regulators of that particular innovation? And while these questions go unaddressed, the cryptocurrency industry will continue to face serious pushback by some of us in this Chamber and outside.

    The EU’s legal framework for the sector seeks to promote innovation while tackling market abuse and the very large elements of criminality, and its full implementation has literally only just begun, it’s in its infancy. So, I hope that when we eventually come to review and have an international standard, that our efforts will be used for that global standard.

     
       

     

      Eero Heinäluoma (S&D). – Madam President, despite the hurray mood in parts of the crypto world since the election of Trump, it’s important to look at the facts. I see at least three reasons to remain concerned about this bubble.

    Firstly, despite all the measures adopted, crypto seems to remain the favourite tool for sanctions evaders and gangsters, including cocaine cartels, North Korean hackers, Iranian and Russian spies and fentanyl smugglers. If we want to tackle these problems seriously, let’s hit them where it hurts. Secondly, as well outlined by the ECB, the recent rise in Bitcoin value benefits mainly a happy few at the expense of the many. From an investor protection perspective, this is far from optimal. Finally, in times of high energy prices and energy scarcity, investing in infrastructure to mine bitcoins is wasting energy.

    Therefore, it is good to have this debate. We indeed need global standards for crypto to tackle these challenges, and the EU should take the lead as MiCA and the AML package can give some inspiration. But we should go further and we need a MiCA 2 to close remaining regulatory loopholes, for example, around NFTs and decentralised finance applications. We count, therefore, on this new commission to pick up this role and push this agenda forward.

     
       

     

      Aleksandar Nikolic (PfE). – Madame la Présidente, comme avec Internet, le cloud et l’IA, nous sommes une fois encore à la charrette des grandes puissances sur la cryptomonnaie. 10 % des Européens détiendraient des cryptomonnaies. En France, ils seraient déjà 12 %, soit plus de 8 millions de Français. Et cela continue d’augmenter.

    Et vous? Votre premier réflexe, c’est d’avoir peur. Ce n’est pas de savoir comment investir dans cette nouvelle technologie, la fameuse chaîne de blocs, mais comment la réguler, comment taxer les profits de monsieur Tout-le-Monde et comment la contrôler. Car au fond, c’est ça qui vous terrifie dans le monde de la crypto: il échappe aux technocrates. Quand il y a une nouvelle technologie, immédiatement vous en avez peur et vous voulez la réguler.

    Nous, on se demande comment s’y adapter et comment en tirer profit. Nos préoccupations sont: pourquoi l’Europe n’innove plus et comment utiliser ces technologies pour booster notre compétitivité. Plutôt que de taxer, favorisons l’investissement dans l’industrie européenne et l’économie réelle, incitons les détenteurs de crypto à transformer les plus-values en actions dans des entreprises innovantes, faisant en sorte que les futurs Nakamoto ou Musk soient européens et créent des technologies de rupture sur notre sol. Soyons enfin un continent d’avenir. Oui, il faut rendre la crypto utile et pour cela, il faut se débarrasser des technos inutiles.

     
       

     

      Guillaume Peltier (ECR). – Madame la Présidente, partout, le socialisme mène à la ruine. Il y eut, certes, l’URSS, Cuba, l’Angola ou le Brésil qui se réveillèrent pauvres comme jamais. Mais aujourd’hui, c’est l’Europe que les gauches tentent d’asservir. Pas un jour qui ne passe sans que les politiciens de gauche n’inventent, en France ou ailleurs, une nouvelle norme, une nouvelle taxe, une nouvelle contrainte. Pas un jour qui ne passe sans que les vieilles gauches sur ces bancs ne hurlent contre le mérite, l’effort, le succès, le travail. Alors, je le dis à tous ces politiciens: laissez-nous tranquilles. Quand laisserez-vous respirer les entrepreneurs et les originaux de tout poil dont vous sabordez le talent?

    Le pénible babil technocratique de ce débat sur les cryptomonnaies est le symptôme d’une Europe en dormition, épuisée par la fièvre socialiste. Dépassée et déclassée, voilà l’Europe que vous proposez au monde, transformant la terre de Jacques Cœur en mouroir de l’esprit d’entreprise. Pire: à l’heure où le monde entier fait le choix de la liberté avec Donald Trump, Elon Musk ou Javier Milei, vous voulez nous contraindre à la relégation. Pourtant, l’histoire est têtue. En connaissez-vous beaucoup des gens de gauche qui, à la chute du mur de Berlin, se sont enfuis à l’Est? Le monde entier s’éveille et vous, la gauche, vous voulez continuer à dormir de vos vieilles lunes ou, pire, vous ronflez de vos impôts fatigués. Alors écoutez bien: nous ne voulons plus de vous, nous ne voulons plus être ni taxés ni spoliés, nous voulons être libres!

     
       

     

      Gilles Boyer (Renew). – Madame la Présidente, Monsieur le Commissaire, les cryptomonnaies gagnent d’évidence en popularité. Elles fonctionnent en dehors de toute législation financière et dans l’anonymat le plus total. Comme tout instrument de spéculation, elles feront la fortune des uns et l’infortune des autres, sans jamais contribuer à l’économie réelle. Mais n’oublions pas, et c’est notre rôle, que c’est avant tout à la puissance publique d’organiser la circulation des monnaies en s’adaptant aux nouveaux usages et de garantir la stabilité et l’utilisation de l’euro.

    C’est le sens du projet d’euro numérique, un équivalent à l’argent liquide dans un portefeuille numérique, émis et garanti par la Banque centrale européenne, à l’inverse des cryptomonnaies. Ce sera un moyen de paiement gratuit, sécurisé, accepté partout en Europe, même dans les zones sans connexion Internet et avec, dans certains cas, un niveau d’anonymat similaire à l’argent liquide. L’euro numérique permettra à l’Union européenne de préserver et de renforcer sa souveraineté monétaire dans un secteur des paiements de plus en plus numérisé. Les colégislateurs doivent s’y atteler sans tarder, au premier rang desquels notre Parlement.

     
       


     

      Catarina Martins (The Left). – Senhora Presidente, todas as épocas tiveram as suas bolhas e fraudes financeiras. Hoje, são as criptomoedas, uma burla disfarçada de investimento, que gera uma montanha de poluição sem produzir um alfinete.

    Sem surpresa e sem escrúpulos, Trump acaba de anunciar a criação da sua própria criptomoeda, que será regida pelas regras que o próprio criará como presidente dos Estados Unidos. Como em qualquer esquema de pirâmide, só os criadores, como Trump, sairão sempre cheios de dinheiro, mas, neste caso, dinheiro real, euros, dólares. Os incautos e deslumbrados vão perder tudo.

    Senhor Comissário, ao permitir as criptomoedas a pretexto da regulação, as instituições europeias estão a normalizar a burla, contribuindo para enganar cidadãos e, ao permitir aos bancos a constituição de carteiras de criptoativos, estão a criar um mecanismo crescente de contágio aos mercados, ignorando até os avisos do FMI. Na crise do Silicon Valley Bank, já tivemos um cheiro deste mecanismo.

    Sejamos claros: regular as criptomoedas tem de ser proibir as criptomoedas, impedir os bancos de as comprar, proteger as pessoas da burla, evitar a próxima crise financeira.

     
       


     

      Kateřina Konečná (NI). – Paní předsedající, vážený pane komisaři, vážené kolegyně, vážení kolegové, kryptoměny s sebou nesou příslib inovací, ale také celou řadu rizik. Miliony lidí v nich vidí příležitost, ale bohužel je zde i mnoho těch, kteří kvůli podvodům a nejasným pravidlům již přišli o své celoživotní úspory. A to vyžaduje od států a jejich institucí velkou opatrnost. Kryptoměny nelze apriori odmítat. Přináší nové možnosti v oblasti financí, nezávislosti i v investicích. Nicméně je nezbytné, aby jejich rozvoj byl ukotven v jasných principech. Jedním z těch klíčových je i právo občanů platit hotově, což považuji za základní svobodu, kterou musíme chránit. Nové metody oběhu finančních prostředků nemohou vést k zániku těch stávajících, které slouží právě jako pojistka celého systému. Kryptoměny a blockchain mohou ohrozit například prudký vývoj kvantových počítačů. Na toto všechno musíme být připraveni. Proto vyzývám k vytvoření globálních standardů, které zajistí ochranu uživatelů, jejich případné odškodnění v případě podvodů, transparentnost trhu, pravidla zdanění a zároveň respekt k finančním právům občanů.

     
       

     

      Kinga Kollár (PPE). – Tisztelt Elnök Asszony! Világszinten növekedik a kriptoeszközökbe való befektetések volumene. Ugyanakkor az nem kérdés, hogy ez a befektetési forma különösen kockázatos. Ezért az ilyen termékekkel való kereskedéshez nagyfokú pénzügyi jártasság és tudatosság szükséges.

    Legyünk reálisak! Egy OECD-jelentés szerint a befektetők kevesebb, mint fele érti a kamatos kamat számítását, így azt gondolom, jól tettük, hogy Európa megfelelő időben a szabályozás mellett tette le voksát, és globális standardokért harcol.

    Hiszen jól tudjuk a kétezres évekből, hogy a pénzügyi válságok nem állnak meg a határokon. Az áttekintő szabályozást az is indokolja, hogy a kriptoeszközök a feketegazdaság valutájaként is funkcionálnak.

    Ugyanakkor a túlszabályozást is el kell kerülnünk, mert az sem elfogadható, hogy a szabályozás akadályozza az európai innovációt, és ezáltal az európai vállalkozások lemaradnak a globális piacokon.

    Versenyképesség, prudencia, fogyasztóvédelem és a magas standardok globális kiterjesztése. Ez az irány, amit követnünk kell, de még inkább a pénzügyi ismeretek és tudatosság növelésére van szükség, mert ez a kulcs ahhoz, hogy az európai állampolgárok jó befektetési döntéseket hozzanak, és ezáltal növeljék vagyonukat, Európa vagyonát.

     
       

     

      Aurore Lalucq (S&D). – Madame la Présidente, Monsieur le Commissaire, chers collègues, parce que sans régulation, le marché des crypto-actifs, ce ne sont pas des monnaies, ce ne sont pas des technologies, ce sont des actifs financiers. Ce serait fait d’arnaques, de financements, de pratiques illicites en tout genre, dont celle du financement de groupes terroristes tels que Daesh. Nous avons choisi de les réglementer dans un climat hostile, violent, toxique, fait de menaces et de cyber-harcèlement.

    Il est donc cocasse de voir aujourd’hui que ceux-là mêmes qui nous harcelaient à l’époque et hurlaient qu’ils allaient partir aux États-Unis à cause de nous, se plaignent des pratiques actuelles de l’administration de Donald Trump, lequel a déstabilisé le marché avec le lancement de son «coin». Ils sont en train d’expérimenter ce qu’est la loi du plus fort quand elle ne leur est pas favorable. Donc oui, évidemment, comme nous l’avons toujours dit, il nous faut des réglementations au niveau international. Il faut aussi protéger la nôtre, se renforcer sur la question de la stabilité financière, mais surtout, par pitié, ne perdons pas trop de temps avec ce débat. On sait ce qu’il faut faire dans le domaine des cryptomonnaies. En revanche, on doit avancer en ce qui concerne l’euro numérique et la création de nos propres «big tech».

     
       

     

      Mathilde Androuët (PfE). – Madame la Présidente, l’essor des cryptomonnaies est un défi majeur pour nos États et pour l’Union européenne. Ces systèmes alternatifs, échappant souvent au contrôle des banques centrales, ne doivent pas compromettre un principe fondamental: la souveraineté monétaire des nations. La monnaie est un attribut régalien indispensable pour garantir la stabilité économique et protéger nos concitoyens.

    Pourtant, pendant que l’Europe s’interroge, d’autres pays avancent à grands pas. Les États-Unis, par exemple, ne se contentent pas d’encadrer ces nouvelles technologies; ils les soutiennent, les développent et les utilisent comme un levier d’influence stratégique à l’échelle mondiale. De leur côté, la Chine et d’autres puissances investissent massivement pour asseoir leur domination numérique.

    Face à cela, l’Europe ne peut rester figée dans une culture de la surréglementation. Certes, il est essentiel de garantir un cadre sûr, transparent et respectueux de nos valeurs. Mais réglementer sans agir, c’est accepter de subir. Nous devons changer de paradigme. Investissons dans les technologies numériques comme la chaîne de blocs, soutenons les entreprises innovantes et encourageons l’émergence de solutions européennes compétitives. Il en va de notre souveraineté économique et monétaire.

    Nous ne pouvons pas laisser des acteurs extérieurs imposer leurs règles, dicter leurs normes et nous asservir à des technologies qu’ils contrôlent seuls. Soyons ambitieux, bâtissons une Europe qui ose, qui innove et qui s’affirme comme un leader mondial. Oui, l’avenir de notre souveraineté ne s’écrira pas dans l’attentisme; l’Europe doit être forte, visionnaire et audacieuse.

     
       

     

      Adrian-George Axinia (ECR). – Doamnă președintă, un aforism care a devenit celebru în ultimii ani este că regulile fizicii se aplică indiferent dacă noi credem sau nu în ele. Parafrazând și luând în considerare propunerea de reglementare Markets in Crypto Assets (MiCA) putem spune că aceste monede virtuale vor exista, indiferent dacă Uniunea Europeană sau orice alt stat membru crede că sunt bune sau încearcă să le controleze total. Ceea ce nu înțelege Comisia Europeană, ține de rațiunea de a exista a acestor criptomonede.

    Li se aplică logica unei monede bazate pe încredere, a cetățenilor sau a piețelor. Or, apariția acestor monede virtuale este mai degrabă rezultatul neîncrederii în modul de funcționare a economiei și al sistemelor politico-administrative complexe. Mulți se refugiază în cripto pentru a-și proteja valoarea proprietății în fața inflației, a turbulențelor financiare și economice, dar și ca tentativă de ocolire a unui sistem Big Brother care vrea să știe la secundă ce face fiecare cetățean cu banii.

    În forma actuală, Markets in Crypto Assets va eșua tocmai din dorința prea mare de a intra în intimitatea oamenilor și de a verifica și controla fluxurile financiare. Exact cum s-a întâmplat și cu tentativa de interzicere sau limitare a plăților cash.

    Abordarea propusă de Comisie este deci mai aproape de China, unde tranzacțiile cripto sunt interzise, decât de un sistem financiar deschis spre inovație. Inclusiv în această privință, Bruxelles-ul ar avea de învățat de la noua administrație de la Washington.

     
       

     

      Cynthia Ní Mhurchú (Renew). – A Uachtaráin, criptea-airgeadraí. Forbairt mhór teicneolaíochta, gan dabht, le deiseanna dearfacha ar nós córas airgeadais níos ionchuimsithí, idirbhearta trasteorann níos tapúla agus féidearthachtaí réabhlóideacha trí theicneolaíocht bhlocshlabhra. Níor chóir dúinn san Eoraip neamhaird a dhéanamh de chriptea. Ach, ná ligimis orainn go mbeidh sé seo brea éasca.

    Tá fíordhúshlán ag baint leis na deiseanna seo. Guagacht praghsanna, gníomhaíochtaí mídhleathacha agus easpa cosaintí láidre do thomhaltóirí. Ábhair imní dhlisteanacha iad seo a éilíonn freagairt láidir shoiléir, ach, ag an am céanna, níor cheart dúinn rialú iomarcach a dhéanamh ar bhonn eagla na heagla. Má dhéanaimid nuálaíocht a thachtadh, tá an baol ann go gcaillfimid an borradh díreach céanna a d’fhéadfadh ceannaire domhanda a dhéanamh den Eoraip sa gheilleagar digiteach.

    Seachas sin, caithfidh ár gcur chuige a bheith cliste, ag féachaint chun tosaigh agus réidh le lúbadh mar a oireann. Tá rialacha ag teastáil a chuireann trédhearcacht chun cinn, mar shampla cosaintí láidre i gcoinne sciúradh airgid agus cosaintí do thomhaltóirí. Ar an gcaoi chéanna, ní mór dúinn an nuálaíocht a chothú trí oibriú le nuálaithe príobháideacha, trí chreataí solúbtha a chruthú. I ndeireadh na dála, tá deis ar leith ag an Eoraip anseo le criptea. Ba chóir dúinn an deis a thapú.

     
       

     

      Giuseppe Antoci (The Left). – Signora Presidente, signor Commissario Brunner, onorevoli colleghi, Europol ci segnala un incremento nell’uso criminale delle criptovalute nel riciclaggio di denaro e per la richiesta dei riscatti dopo gli attacchi informatici. La blockchain facilita trasferimenti rapidi di capitali a livello globale, offrendo ai criminali un vantaggio significativo.

    Nel campo della cibercriminalità emergono tecniche avanzatissime, che richiedono competenze elevate degli investigatori. Tali competenze necessitano di personale adeguatamente formato.

    Inoltre, cresce l’uso di criptovalute ancorate al valore delle materie prime, apprezzate dai capi criminali per la loro stabilità e facile comprensione.

    La mancanza di strumenti adeguati per il tracciamento delle criptovalute in alcuni Stati membri sta facendo aumentare le richieste di supporto investigativo a Europol.

    Di fronte a queste sfide – e conoscendo la Sua grande sensibilità – è essenziale un impegno coordinato per sviluppare standard globali e condivisi, al fine di combattere efficacemente l’uso illegale di questa tecnologia.

     
       

     

      Marcin Sypniewski (ESN). – Pani Przewodnicząca! Noblista Fryderyk von Hayek powiedział, że nie ma odpowiedzi, dlaczego monopol na emisję pieniądza jest taki niezbędny w dzisiejszym świecie. I gdy po kryzysie w 2008 roku chroniliście banki przed upadkiem, do którego pośrednio doprowadziliście, to programista czy grupa programistów, znani jako Satoshi Nakamoto, powiedzieli „dość”. Powiedzieli dość pokusie nadużycia, z której korzystają rządy i banki, dość psucia pieniądza przez jego emisję, dość fałszywemu pieniądzowi. I w ten sposób powstał bitcoin. Jest to najlepszy kandydat do stania się pieniądzem. Jest rzadki, podzielny, trudny do podrobienia, a przede wszystkim nie uznaje nad sobą dyktatów rządów i banków. Jest też antykruchy. I wszystkie te zakusy, żeby go ograniczyć, tylko go wzmacniają. I patrząc na te wszystkie proponowane ograniczenia, wiem chyba, jaka jest odpowiedź na pytanie Hayeka. Powiedział on, że najgorszym monopolem w rękach rządów jest monopol na pieniądz. I te dążenia do ograniczenia kryptowalut wynikają z tego, że są to niepaństwowe środki wymiany, które wygrywają z inwigilowanym, przeregulowanym pieniądzem dekretowym. Pamiętajmy o tym, że pieniądz powinien służyć ludziom, a nie – elitom.

     
       

     

      Luis-Vicențiu Lazarus (NI). – Doamnă președintă, stimați colegi, România a fost teatrul unor operațiuni financiare absolut tragice pentru poporul român în anii 90. Scheme Ponzi implementate de tipi care erau manipulați de servicii secrete și politicieni au reușit să devalizeze buzunarele poporului român.

    Ulterior, sigur, societatea a evoluat. În 2001 au apărut avioanele care au dărâmat blocurile gemene și, sigur, a început războiul împotriva terorismului. În 2008 a apărut Bitcoin pe fondul crizei din America, criză ce s-a transferat și în Europa, desigur, și ulterior criptomonedele au luat avânt.

    V-ați gândit, poate, că acest imbold al statelor împotriva cetățeanului de a bloca deținerea cash-ului a favorizat acest avânt al criptomonedelor? Și acum, noi vrem să reglementăm. A apărut acest regulament MiCA ce reglementează anumite lucruri, dar nu reușește să facă o diferență între oamenii care au rea-voință de la început și oamenii care într-adevăr vor să facă proiecte serioase în criptomonede.

     
       


     

      Lídia Pereira (PPE). – Senhora Presidente, mais do que exportar legislação, a Europa tem de exportar inovação. Mas vamos ser claros: não fomos pioneiros na tecnologia que suporta os criptoativos e devíamos ter sido, mas para criar o regulamento, obrigações e burocracias, aí não perdemos tempo.

    É evidente que os criptoativos precisam de um quadro legal. São um ativo financeiro, por isso, há mínimos de transparência e, muito importante, de proteção do investidor. Mas é também evidente que essas leis têm de garantir segurança e previsibilidade para quem quer inovar e investir.

    Se aqui na Europa não estamos a garantir nem uma coisa nem outra, como vamos defender uma regulação global? Primeiro, temos de garantir que o regulamento de mercado de criptoativos é bem implementado. Segundo, temos de apoiar a inovação em blockchain com a consciência de que é uma tecnologia que não se esgota em criptomoedas, mas que pode e deve ser aplicada noutras áreas. Terceiro, temos de perceber que criptomoedas são hoje ativos financeiros como qualquer outro.

    Tentar uma regulação global tem impacto na concorrência livre, na dinâmica do mercado e na liberdade financeira das pessoas. Não podemos viver num faroeste financeiro, quando falamos de criptomoedas, mas também não podemos aprisionar novos projetos, novas ideias e novos investimentos que criam emprego e oportunidades.

    Este já não é o tempo de desconfiar de tudo quanto é novo, é o tempo de confiar naqueles que inovam, que investem, que fazem futuro no presente.

     
       


     

      Nikos Papandreou (S&D). – Madam President, Commissioner, from this discussion I think the answer is staring us in the face.

    We have two distinct philosophies, one on one side of the Atlantic and one on the other side. The US is a free market, let it bloom, let’s have the $TRUMP coin and then we regulate. Ours is let’s regulate and see what happens.

    What’s happening now is, besides the criminal activities with crypto, it’s also used by poor people in countries with inflation. So they put it into crypto, a very unsafe coin, and then turn it back into their currency.

    What we need to do is to create the Spinelli coin, which is the digital euro, and to have our own digital crypto competing so that we can impose international standards with safe asset from Europe.

    We will not be able to regulate the huge space from the rest of the world, unless we have our own digital coin that people will trust in, not only in Europe but internationally. MiCA helps on that. The way we will impose international standards and MiCA is by having our own innovation and our own Europe.

    (The speaker agreed to take a blue-card question)

     
       

     

      Diana Iovanovici Şoşoacă (NI), întrebare adresată conform procedurii „cartonașului albastru”. – Ați vorbit de regulamentul MiCA. Aici avem o regulă în care se menționează că ofertanții sau persoanele care solicită admiterea la tranzacționare cu criptoactive, altele decât jetoanele de referință la active și jetoanele de bani electronici, trebuie să fie persoane juridice, să publice o carte albă, iar următoarea regulă este: să acționați cinstit, corect și profesional. Puteți să-mi spuneți, vă rog frumos – și în calitate de avocat, vă întreb – cum veți ajunge la concluzia că persoana respectivă acționează cinstit, corect și profesional, înainte de a fi în calitatea lor de ofertanți sau persoanele care solicită admiterea la tranzacționare?

     
       


     

      Angéline Furet (PfE). – Madame la Présidente, la chaîne de blocs et les cryptomonnaies sont nées d’une idée simple: redonner le contrôle aux individus, renforcer la transparence et garantir un accès équitable à des systèmes ouverts. Décentralisation, transparence et sécurité sont donc les valeurs fondamentales de cette révolution. Mais aujourd’hui, la chaîne de blocs va bien au-delà des transactions financières. Elle révolutionne la gestion des données, la traçabilité et la confiance numérique en transcendant les frontières et en appelant à une coopération mondiale. Cependant, avec cet immense potentiel viennent aussi des défis: fraudes, inégalités d’accès et manque de réglementations claires.

    C’est donc ici que réside notre responsabilité collective. Il faut bâtir des normes mondiales, non pas pour étouffer l’innovation, mais pour l’encadrer et l’amplifier. Ces normes doivent donc 1) sécuriser les utilisateurs; 2) préserver la décentralisation; 3) favoriser un cadre propice à l’innovation.

    L’Europe, avec des initiatives comme le règlement MiCA, a démontré qu’une réglementation, bien que partielle, est envisageable. Elle doit donc maintenant agir comme un pont pour initier un dialogue mondial. La chaîne de blocs est une chance unique de construire des systèmes plus justes et équitables. Ensemble, nous pouvons orienter cette révolution vers un avenir plus ouvert et prospère.

     
       

     

      Ondřej Krutílek (ECR). – Vážená paní předsedající, vážený pane komisaři, ke kryptoměnám musíme přistupovat konstruktivně. Od loňského roku platí nařízení MiCA a já věřím, že jeho zavádění do praxe probíhá bez větších problémů.

    V Česku se díky našemu poslanci Jiřímu Havránkové podařilo prosadit jak automatické právo na zřízení bankovního účtu pro kryptopodnikatele, tak osvobození od daně při prodeji kryptoměn po třech letech. Myslím si, že tímto přístupem by se mohly inspirovat i další evropské státy. Naopak nápady typu zdanění nerealizovaných zisků z kryptoměn, které slyšíme z některých zemí, bych opravdu nedoporučoval.

    Američané mají k regulaci kryptoměn odlišný přístup, a tak se domnívám, že dosažení globálních standardů minimálně v tuhle chvíli nepřichází v úvahu. I proto bychom měli být opatrní s jakoukoli další možnou regulací od nás z Evropské unie. Důležité je, aby přehnaná regulace a nepředvídatelné právní prostředí nemotivovaly startupy a další firmy k úprku z Evropy.

    Pokud se bavíme o blockchainu, je to technologie budoucnosti, která nabízí řadu praktických aplikací. Příští týden v úterý pořádám v Bruselu akci, na kterou bych vás chtěl všechny pozvat. Bude na ní mimo jiné představen i projekt Českého vysokého učení technického a půjde o inovativní blockchainovou platformu pro decentralizované vydávání dluhopisů pro malé a střední podniky. Tak se stavte.

     
       


     

      Adnan Dibrani (S&D). – Fru talman! Kommissionär! Kryptovaluta, som en gång varit väldigt nischat, har snabbt fått genomslag i hela världen. Det är också en digital revolution som öppnat upp nya möjligheter inom andra sektorer.

    Det finns en stor potential i blockchain‑tekniken som kan innebära vinster för till exempel offentlig sektor, för mer robusta och effektiva system. Just nu undersöks därhemma till exempel hur vi ska använda den här tekniken inom vården, för att kunna säkrare hantera och dela personlig hälsodata.

    Det är viktigt att vi främjar ny teknik när den kommer, men samtidigt är det viktigt att den nya tekniken har en viss kontroll. Teknik får inte användas för att skada konsumenter, för terrorismfinansiering, för penningtvätt och så vidare. Här har EU gått före och reglerat krypto. Men krypto existerar på global nivå och därav behöver vi standarder på global nivå, så att vi kan dra nytta av potentialen, inte hämma den, och se till så att tekniken används på rätt sätt och inte används av suspekta nationer för att skada konsumenter och våra system som vi håller så kärt.

     
       

     

      Diego Solier (NI). – Señora presidente, señor comisario, el Reglamento MiCA, aunque presentado como un avance hacia la regulación de los criptoactivos, representa una amenaza directa a los derechos de los ciudadanos.

    Bajo el pretexto de proteger al consumidor y garantizar la estabilidad financiera, este marco podría socavar la privacidad, la libertad financiera y la innovación. Imponer estándares globales en un sistema creado para ser descentralizado es, literalmente, ponerle puertas al campo.

    Medidas como la recopilación masiva de datos personales, requisitos de capital inalcanzables para start-ups y la prohibición de ciertos criptoactivos no solo ahogan la innovación, sino que limitan la libertad de elección de los ciudadanos. Además, la vigilancia y la supervisión excesiva abren la puerta a un control digital sin precedentes.

    Mi pregunta es clara: ¿estamos regulando para proteger al ciudadano o para reforzar el control de los grandes poderes económicos y políticos sobre sus vidas? No podemos permitir que este Reglamento traicione la esencia de las criptomonedas: descentralización, autonomía y libertad.

     
       

     

      Andrey Kovatchev (PPE). – Madam President, Commissioner, dear colleagues, the European tech sector faces challenges that create a perception of stagnation compared to dynamic regions like South‑East Asia and the US. The EU is a global pioneer in the introduction of regulations such as the MiCA, with the aim to protect customers, but without hamper the growth. Yes, we need global standards, and the EU must be in the lead of this introduction. But also, we need to wake up.

    Talent migration is a big concern, with 90 % of the EU tech workers willing to relocate to the US for better salaries and funding opportunities. To reclaim the position of Europe, we need innovation‑friendly policies, including clear regulatory frameworks and sandbox environments for start-ups that will promote prosperity and growth.

    The rapid development of cryptocurrency markets highlights the urgent need to educate people on how to navigate the evolving landscape responsibly. Without proper knowledge, individuals and businesses risk falling victim to scams, fraud, financial crimes or malign global players. Europe needs to act now and act fast, if we are serious about our fostering competitiveness, and to act together with the responsible crypto community and not in a war with them.

    Are we ready to take bold decisions to ensure our success or will we risk again being left behind as others seize opportunities which we hesitate to explore? Commission and Council and colleagues, we need to act now.

     
       

     

      Waldemar Buda (ECR). – Doregulować, przeregulować i zabić. Taka jest regulacja i takie są działania Unii Europejskiej w wielu sprawach. Tak było z przedsiębiorcami, tak było z rolnikami. I teraz dokładnie tak samo podchodzimy do blockchain i kryptowalut. Za chwilę się okaże, że cały świat na tym zarabia, cały świat się rozwija, a my nie traktujemy tego jako szansy, tylko traktujemy to jako zagrożenie. Dzisiaj największe aktywa w kryptowalutach mają Chiny i Stany Zjednoczone, a Europa zastanawia się, jak to ograniczyć? Jak to zwalczyć? Za chwilę miliard osób na świecie będzie miało kryptowaluty.

    W Polsce 12% osób w wieku produkcyjnym ma już kryptowaluty. Ja się więc bardziej boję tego, że wy będziecie doregulowywać niż że nie będziecie robić nic, bo to pewnie zabije ten rynek i inni będą na tym zarabiać. Oczywiście nieprawidłowości trzeba ścigać, ale rozsądnie. Dzisiaj jak w Polsce się próbuje to uregulować, to lobbyści obsiedli urzędy i instytucje i ciężko cokolwiek zrobić. I ci, co mają na tym zarobić, i tak zarobią. A zwykli ludzie niestety nie mogą inwestować i się w tej sprawie rozwijać.

     
       

     

      Caterina Chinnici (PPE). – Signor Presidente, signor Commissario Brunner, onorevoli colleghi, “follow the money”: è questo il metodo per contrastare davvero la criminalità organizzata, come l’esperienza investigativa e giudiziaria italiana ci insegna da oltre quarant’anni. E “focus on the money” è oggi il motto della Procura europea nel solco di quell’insegnamento.

    Quando il denaro si fa virtuale, le sfide per le autorità di regolamentazione e di contrasto si complicano, mentre invece si moltiplicano le opportunità per le organizzazioni criminali: decentralizzazione, anonimato, bassa tracciabilità, scarsità di controlli, possibilità di effettuare rapidi trasferimenti di denaro transfrontalieri e di creare catene complesse di transazioni sono solo alcune delle ragioni che rendono criptovalute e blockchain strumenti sempre più utili per la criminalità organizzata transnazionale e per le organizzazioni terroristiche globali.

    In criptovalute si pagano i traffici di droga, armi ed esseri umani e, attraverso le operazioni che le criptovalute consentono, i capitali illeciti vengono riciclati e reinvestiti agevolmente nell’economia legale.

    Per questo, è necessario regolamentare il fenomeno. Certo, con il regolamento sui mercati delle cripto‑attività, le norme sui trasferimenti di cripto‑attività e le nuove norme su antiriciclaggio e confisca abbiamo iniziato a farlo, però l’Unione deve continuare a sostenere l’adozione di regole uniformi e standard globali, per impedire alle organizzazioni criminali di sfruttare a proprio vantaggio lacune e differenze normative, arginare il jurisdiction shopping e, così, contrastare davvero il crimine economico e finanziario.

     
       

     

      Seán Kelly (PPE). – Madam President, digital and cryptocurrencies present an important opportunity for Europe, provided we establish the necessary safeguards. We must strike the right balance between regulating to enhance consumer protection and promote financial stability, while ensuring we do not hinder innovation or impede the financial inclusion that cryptocurrencies can offer.

    The MiCA Regulation demonstrates Europe’s willingness to lead in establishing best-in-class regulatory frameworks. Recent events, such as the collapse of the FTX in November 2022, have shown why proper standards are essential to protect our citizens from irresponsible, and even fraudulent, market behaviour.

    However, the new Trump administration’s pro-crypto stance provides an opportunity for us to reflect. We hear from the crypto industry that the US is now becoming a more attractive jurisdiction than the EU, with its regulatory approach expected to be looser than ours. On this I make two points.

    One: here in Europe we must approach this industry with the same competitiveness lens we apply to all sectors. It is vital to monitor the impact of our regulations and remain adaptable enough to amend them if needed, ensuring we maintain the right balance.

    Two: those in the crypto industry eyeing Trump’s America with enthusiasm might reflect on the Trump coin debacle before this week’s inauguration. Be careful what you wish for!

    Ultimately, the cross-border and decentralised nature of cryptocurrencies demands international cooperation to address clear regulatory gaps, as was stated by the Commissioner and my colleague Markus Ferber. So let us collaborate closely with our global partners to establish clear and enforceable global standards.

     
       

       

    Catch-the-eye procedure

     
       

     

      Niels Geuking (PPE). – Frau Präsidentin, Herr Kommissar! Die ursprüngliche Idee von Kryptowährungen, ein globales und dezentrales Finanzsystem aufzubauen, hatte schon ihren Reiz und war leicht faszinierend, aber selbst der Bitcoin ist heute eine Riesenmogelpackung: 60 Prozent aller Bitcoins werden gerade mal von weniger als 18 000 Adressen verwahrt. Wo ist da der dezentrale Gedanke geblieben?

    Auf dem Kryptomarkt insgesamt herrscht dann auch eine Wildwest-Mentalität. Die Meme Coins sind Betrug mit Ansage. Vom Hawk Tuah Girl bis zum TrumpCoin – es mangelt schlicht und ergreifend überall an Substanz. Am Ende versucht dann jeder, jemand Dümmeren zu finden, der bereit ist, mehr zu bezahlen, als man selbst investiert hat. Es ist ein Spiel mit Verlierern und ein modernes Beispiel der Tulpenmanie, getrieben von Profitgier und Dummheit. 2021 sagte Trump selbst noch, Kryptowährungen seien eine potenzielle Katastrophe, gar Betrug – zumindest, bis er selbst einen Deal machen konnte. Weltweit durchsetzbare Regeln ohne die USA? Schwierig. Dabei braucht es sie, und zwar vor allem für die Technologie und den Fortschritt brauchen wir die globalen Standards. Zur Not …

    (Die Präsidentin entzieht dem Redner das Wort.)

     
       

     

      Maria Grapini (S&D). – Doamnă președintă, domnule comisar, de teama evaziunii nu trebuie să ne opunem inovației. Sigur, criptomonedele sunt rezultatul unei inovații. Ați spus foarte bine, avem regulament, avem directivă, ne gândim la standarde internaționale, pentru că da, nu suntem singuri pe lume, avem o piață globală.

    Problema este că, din punctul meu de vedere, nu trebuie să obstrucționăm cetățenii în a-și folosi veniturile, nu trebuie să obstrucționăm întreprinderile să investească așa cum doresc, ci trebuie să avem reguli pe care să le respecte.

    Ați spus, domnule comisar, între altele, că doriți să scoateți actorii dăunători. Trebuie să vedeți și cum, trebuie să spuneți ce măsuri, trebuie foarte multă transparență. Nu știu dacă aveți o statistică în Uniunea Europeană, în statele membre: Câte cazuri avem de evaziune, de înșelătorii prin criptomonede?

    Dar trebuie făcute aceste lucruri și cred că trebuie să rămânem cu această inovație – criptomonede – și în Uniunea Europeană, însă cu o reglementare și o supraveghere corectă.

    (Președinta a retras cuvântul vorbitoarei)

     
       

     

      Alexander Jungbluth (ESN). – Frau Präsidentin! Ich glaube, diese heutige Debatte hat wieder gezeigt, dass es unterschiedliche Menschenbilder gibt, die in diesem Parlament hier vertreten werden. Und eigentlich werden hier in diesem Haus immer Debatten darüber geführt, dass man Dinge regulieren muss, Dinge steuern muss. Freie Meinungen werden über den DSA eingeschränkt, und bei den Kryptowährungen ist es auch das Ziel, das möglichst an die kurze Leine zu legen.

    Ich glaube, wir sollten hier an dieser Stelle mal feststellen, dass unser Menschenbild ist, dass wir freie, mündige Bürger haben. Und freie, mündige Bürger sind auch in der Lage, sich eine freie Währung zu suchen. Und aus dem Grund, glaube ich, sind Kryptowährungen genau das Mittel, sich gegen staatliche Repressionen zu wehren, sich abzukoppeln von Staaten und einer Europäischen Union, die immer übergriffiger werden.

     
       


     

      Vytenis Povilas Andriukaitis (S&D). – Gerbiama pirmininke, komisare G. Braunai, labai malonu pasveikinti ir labai tikrai geras sumanymas ir teisinga linkme. Čia vienas kolega kalbėjo apie Dievo laiminimą, tai jam priminsiu, kad Dievas ne tik laimino, bet davė Dekalogą ir davė virš trijų šimtų įsakų ir įsakymų. Taigi, reguliavimas prasidėjo nuo Dievo. Tai visiems linkiu to nepamiršti. Toliau, antras dalykas, noriu atkreipti dėmesį – taip, godumas, spekuliacijos, pinigų plovimas, visos šitos bėdos yra didžiulės. Prisiminkite, kas atsitiko su finansų krize, kai griuvo didieji bankai. Tuomet su privačiais lėktuvais važiavo gelbėtis pas ką? Pas vyriausybes. Kai įvyko didžiulės krizės jau su kripto bankais vėl gi buvo tas pats. Todėl išties tie, kurie per daug kalbate apie laisvę, atminkit vieną, kai būna skaudžios pasekmės, tuomet ir tenka ieškoti pagalbos ne kitur, o valstybėse ir reguliuojamuose bankuose.

    (posėdžio pirmininkė iš kalbėtojo atima žodį)

     
       

     

      Diana Iovanovici Şoşoacă (NI). – Am văzut că vă deranjează foarte mult că Donald Trump și-a făcut propriul Bitcoin. Bravo lui! De ce nu faceți și dumneavoastră? Dumneavoastră sunteți cu băncile, băncile opresive! Ca avocat, am văzut cum băncile și-au bătut joc de clienții lor, i-au lăsat fără case, fără pământuri, fără nimic, oameni care s-au sinucis din cauza băncilor – cămătari legali.

    În acest context, bitcoinul – vreți și pe acesta să îl monopolizați, să îi faceți regulamente, oricum, extrem de proaste, pentru că niciodată nu o să puteți să garantați că o persoană sau o companie acționează cinstit, corect și profesional. În fapt, nicio companie nu poate acționa cinstit, corect și profesional din cauza impozitelor voastre.

    Mi-aduc aminte, statul român, ca să mă oprească, în „plandemie”, să mai lupt împotriva măștii și a vaccinării, mi-au blocat toate conturile și mi-au luat toți banii din bănci și mi-au dat 30 000 de euro amendă. Așa, ca să fiu controlată, să nu mai am cu ce să-mi cresc copiii. Bitcoinul este libertate și …

    (Președinta a retras cuvântul vorbitoarei)

     
       

       

    (End of catch-the-eye procedure)

     
       

     

      Magnus Brunner, Member of the Commission. – Madam President, ladies and gentlemen, what an interesting discussion and God bless Europe, I would say. I would like to conclude maybe this discussion by saying that we, of course, remain strong supporters of international standards for crypto. These represent a common set of principles around which jurisdictions around the world can converge.

    These standards ensure, at the end, an appropriate policy framework for crypto markets allowing innovation – yes, that is very important – to take place while ensuring that risks are appropriately mitigated. And with this EU MiCA Regulation all of you and most of you were talking about, Europe is the first major jurisdiction to achieve compliance also with international crypto standards.

    However, the Commission is well aware that our efforts alone, or even a partial international effort, cannot ensure that the risks posed by these global crypto markets are adequately addressed, and it is therefore crucial that the adoption of international crypto standards continues to grow.

    The US, that was mentioned as well as a key partner, of course, in promoting the adoption of international standards. We therefore do hope that the new administration will act as a catalyst for further progress in bringing regulatory clarity to crypto asset markets in the United States. And we would expect that any new policy and regulatory developments in the US fully, of course, reflect international standards.

    Thanks again for the discussion and for giving the Commission also the opportunity to participate in this very important exchange.

     
       


       

    (The sitting was suspended at 11:48)

     
       

       

    IN THE CHAIR: SABINE VERHEYEN
    Vice-President

     

    5. Resumption of the sitting

       

    (The sitting resumed at 11:59)

     

    6. Composition of new committees

     

      President. – Following the creation of the standing committees on security and defence and public health, and the special committees on the European Democracy Shield and on the housing crisis in the European Union, the political groups and the non-attached Members have notified the President of appointments to these new standing and special committees as of 23 January 2025.

    The list of the committees’ members will be published online and in the minutes.

     

    7. Composition of committees and delegations
























     

      President. – Sorry. We have clear rules on what are points of order. Some colleagues are very generous when there are actual accidents or things that are happening. But sorry, we have to stick to the points of order, because on Monday we have the one-minute speeches so you can make your position on special issues you want to raise.

    But we are here exactly for points of order. And that is what I exercise, clearly to the Rules. And there is no discussion about what has happened yesterday or the week after, or 20 weeks before or later. Sorry, we have clear order to rule it like it is.

    (Applause)

     

    8. Voting time

     

      President. – The next item is the vote.

     

    8.1. Case of Jean-Jacques Wondo in the Democratic Republic of the Congo (RC-B10-0069/2025, B10-0065/2025, B10-0069/2025, B10-0070/2025, B10-0072/2025, B10-0078/2025, B10-0081/2025, B10-0084/2025) (vote)

     

      President. – The first vote is on the joint motion for a resolution tabled by five groups on the case of Jean-Jacques Wondo in the Democratic Republic of the Congo (see minutes, item 8.1).

     

    8.2. Systematic repression of human rights in Iran, notably the cases of Pakhshan Azizi and Wrisha Moradi, and the taking of EU citizens as hostages (RC-B10-0066/2025, B10-0063/2025, B10-0066/2025, B10-0067/2025, B10-0073/2025, B10-0082/2025, B10-0085/2025, B10-0086/2025) (vote)

     

      President. – The next vote is on the joint motion for a resolution tabled by five groups on the systematic repression of human rights in Iran, notably the cases of Pakhshan Azizi and Wrisha Moradi, and the taking of EU citizens as hostages (see minutes, item 8.2).

     

    8.3. Case of Boualem Sansal in Algeria (RC-B10-0087/2025, B10-0087/2025, B10-0088/2025, B10-0089/2025, B10-0090/2025, B10-0091/2025, B10-0092/2025, B10-0093/2025) (vote)

     

      President. – The next vote is on the joint motion for a resolution tabled by five groups on the case of Boualem Sansal in Algeria (see minutes, item 8.3).

     

    8.4. Russia’s disinformation and historical falsification to justify its war of aggression against Ukraine (RC-B10-0074/2025, B10-0074/2025, B10-0075/2025, B10-0076/2025, B10-0077/2025, B10-0079/2025) (vote)

     

      President. – The next vote is on the joint motion for a resolution tabled by five groups on Russia’s disinformation and historical falsification to justify its war of aggression against Ukraine (see minutes, item 8.4).

     

    9. Resumption of the sitting

       

    (Sēde tika atsākta plkst. 15:00.)

     

    10. Approval of the minutes of the previous sitting

     

      Priekšsēdētājs. – Ir pieejams vakardienas sēdes protokols un pieņemtie teksti. Vai ir kādas piezīmes? Protokols ir apstiprināts.

     

    11. Major interpellations (debate)

     

      Priekšsēdētājs. – Nākamais darba kārtības punkts ir debates par plašu interpelāciju, uz kuru jāatbild rakstiski un kurai seko debates, un kuru ECR vārdā iesniedza Charlie Weimers, Sebastian Tynkkynen, Kristoffer Storm, Jaak Madison, Carlo Fidanza, Adam Bielan, Alexandr Vondra, Patryk Jaki, Johan Van Overtveldt, Roberts Zīle, Emmanouil Fragkos, Georgiana Teodorescu, Geadis Geadi, Marion Maréchal, Ivaylo Valchev, Kosma Złotowski, Mariusz Kamiński, Maciej Wąsik, Dick Erixon, Joachim Stanisław Brudziński, Beatrice Timgren, Nicolas Bay, Jadwiga Wiśniewska, Ondřej Krutílek, Guillaume Peltier, Michał Dworczyk, Laurence Trochu, Şerban-Dimitrie Sturdza, Tobiasz Bocheński un Gheorghe Piperea Komisijai par ES finansējumu fiziskiem robežu aizsardzības elementiem, piemēram, sienām, žogiem vai citām barjerām, pie ES ārējām robežām (G-001002/2024).

     
       

     

      Jaak Madison, author. – Mr President, first of all, we are pretty many Members here on the last day of the week.

    First of all, in September, on September 20, 30 Members of the Parliament, so pretty many, have addressed written questions to the Commission. Unfortunately, we haven’t got any answer in six weeks. So, c’est la vie, and the result is that we have to discuss the question here.

    And I’m even more happy that on this very important topic, we can ask directly from the new Commissioner from Austria, who understands probably very well about the consequences of the illegal migration, about security, about the defence questions.

    The question was about the EU funds and is there any kind of consideration in the European Commission to finance also the projects to protect our external borders physically? For example, in February 2023, the European Council implored the Commission to immediately mobilise substantial EU funds and means in order to help countries bolster their border protection capabilities and infrastructure.

    Commission President von der Leyen has said that the EU will act to strengthen our external borders, specifically by providing an integrated package of mobile and stationary infrastructure from cars to cameras, from watchtowers to electronic surveillance.

    Unfortunately, we understand very well that it’s not enough to fight against, for example, the hybrid attacks by Russia, where they are using thousands of people as a weapon against Finland, against Poland, Lithuania, maybe next day to Estonia. And if those people are used by Russia’s hybrid attack, how can we stop to move them to Germany, to Austria, to the inside of the European Union, thanks to the Schengen free movement that we have?.

    That is why we had only two concrete questions: why has the Commission not yet recognised the reality on the ground at the EU’s external borders and moved to lift its anachronistic moratorium on EU funding for physical border barriers?

    And secondly, considering the ongoing hostile activities at the eastern border and the Member States have taken to constructing border barriers to counter the instrumentation of migrants, will the Commission change its approach and support Member States’ external border barrier projects financially via the EU budget?

     
       

     

      Magnus Brunner, Member of the Commission. – Mr President, honourable Members, thank you, first of all, for bringing this very important topic to the agenda this afternoon. Let me start by saying that I fully agree with the imperative of reinforced management of our external borders. It must be, of course, us and not the smugglers who decide who comes to our European Union and under what circumstances. This is all the more imperative given precisely the hybrid threats you mentioned. Our response must be as united as it is resolute.

    Coming from a ministry of finance for the last three years, allow me to start my intervention with some figures. In 2024, we saw a 38 % drop in irregular arrivals compared with the previous year. So it’s 239 000 compared with 386 000. And this includes a sharp 78 % drop on the Western Balkan route and 59 % fall on the central Mediterranean route. And that’s stated, as you mentioned, by President von der Leyen in her latest letter also to the European Council. This is the result of the EU’s active engagement with our partner countries, and it is working. We see that and we must continue to pursue these efforts.

    But, as you rightly mentioned, in parallel, we are very much aware that some regions are still under pressure, of course. In particular, there was a threefold increase in irregular crossings at the eastern border, in part as a result, as you mentioned, of the instrumentalisation of migrants by Russia and Belarus in their attempt to destabilise the European Union and undermine also our security. As a response, last month, the Commission issued a communication on countering hybrid threats from the weaponisation of migration and also strengthening security at the EU’s external borders. The Commission recognised that Member States can take proportionate, on the one hand, and also temporary measures to address the threat posed by both Russia and Belarus.

    Member States have the responsibility, of course, also to maintain law and order and safeguard national security. That’s pretty obvious. But they do so with the support of the European Union and also its budget on a European Union level. Those Member States bordering Russia and Belarus have recently received additional funding of EUR 170 million to enhance border surveillance altogether.

    This is just part of the broader picture of EU budgetary support to border management. All EU funding for border management has more than tripled over the past three multiannual financial frameworks (the famous MFF), with up to 7.7 billion allocated for border management and also visa instrument in the current 2021 to 2027 period. With these funds, the European Union is building one of the most advanced border management systems in the world and the largest share of this amount – that’s EUR 4.3 billion – is allocated directly to Member States under their national programmes.

    Also the EU’s decentralised agencies – Frontex, eu-LISA, the EUAA, of course, the asylum agency – they also play a key role when it comes to border management, and their budget for the current period amounts to EUR 9.8 billion. In the future, the strengthening of Frontex with increased operational capabilities, including a tripling of its standing corps, will also further contribute to supporting the Member States – because that’s what Frontex is here for – in addressing the challenges at the external borders.

    I would therefore argue that not only has the Commission recognised the reality on the ground, but it is actively also supporting enhanced border management with substantial means, actually. I would also underline that this remains a key priority for me and for the Commission in general. And we are committed to continuing to strengthen the EU’s external borders and supporting the Member States, of course, both operationally and financially, to boost border surveillance.

    I am also very keenly aware, however, that budgets are limited, and the EU budget, of course, is no exception here. It is essential to make the most of every single euro, channelling it to where it is most effective at the end of the day and has the biggest impact, of course. Given these considerations, the Commission has so far focused funding, where the needs are the most urgent and where European money can have a real added value. This has included financing for mobile and stationary units, for border surveillance systems and equipment, for refurbishment of border crossing points, new installations for IT systems, plus also, of course, the maintenance of the equipment. All this increases situational awareness on border control capabilities, which are, of course, crucial for effective border protection, combined, as I said before, with continued support and also continued deployment by Frontex.

    That is the picture of today: EU funding is available to Member States to provide well‑equipped and also modern infrastructure for a very high level of security at the European external borders and to help also combat irregular migration. These things must go hand in hand. On top of this, Member States can decide, of course, themselves to finance structures such as fences, for instance, themselves, while always ensuring, of course, respect for fundamental rights.

    Now, the next step – and this is very important what I’m going to say now – going forward, Mr Madison, and following the trend also observed in the last years, it is clear that the overall needs for border management must be reassessed as part of the preparation of the next multiannual financial framework. This process is currently underway and should of course not be pre-empted. We will, of course, take into account the border management needs we have for the next months and years to come, which must be considered in a holistic manner for the different needs, priorities and resources available, whilst always ensuring that measures are, of course, proportionate and also respect fundamental rights.

    The views of the European Parliament in preparation of that process are, of course, incredibly important. At the same time, constant engagement is necessary to achieve results on external border management, and the European Union will continue to deepen these comprehensive and strategic relations that it is building with key countries of origin, but also key countries of transit, including migration in the spectrum of key interests covered by these agreements.

     
       

     

      Lena Düpont, on behalf of the PPE Group. – Mr President, Commissioner, I’d like to address the topic of today on two levels: on a procedural one and on a content one.

    On the procedure, as a representative of this House, of course, I also need to underline the request towards the Commission to respect the timelines and, of course, to adhere to the timelines. There’s a reason why we set timelines for the answering of the questions, and I think that we can do more actually also to work together to come closer again in that sense.

    On content, as it is mainly about instrumentalism – where, by the way, the ECR had the rapporteurship in the previous term – I think the question here at stake does not necessarily reflect the dynamic in the policy field. The Commission, the Commission President, they are in close debate with the Member States concerned. There are proposals on the table, both with financial support and additional money, but also in the adaptation of the policy response.

    As a general remark, Europe is the strongest when we act together and we, as the EPP, will make sure to do so further down the road. And while I say that some here in the House need to accept that there is a thing such instrumentalism – that it is part of hybrid attacks, and it needs to be seen in the geopolitical context – other parts here in the House also need to accept that as well, because the very same reason why we are speaking about this cynical, state-sponsored and state-accepted smuggling business is Moscow and Minsk attacking – trying to pressure – the European Union.

    So at least actors, some here in the House, want to align closer with. I would call that cognitive dissonance, but solve that out on your own. Rest assured that we, as the EPP, will go forward working on a common solution as a European Union that is strong and proud of its roots and values.

     
       

     

      Ana Catarina Mendes, em nome do Grupo S&D. – Senhor Presidente, Senhor Comissário, Caros Colegas, fiquei muito preocupada com o final da sua intervenção, Senhor Comissário, permita-me partilhar isto consigo.

    Em 2021, quando se aumentou a verba para o Fundo de Gestão Integrada das Fronteiras, a Senhora Presidente da Comissão afirmou — e cito — «a União Europeia não financiará nem muros, nem arame, nem cercas». O Senhor Comissário terminou a sua intervenção a dizer: «vamos aumentar o financiamento para as cercas».

    E queria dizer-lhe, em nome dos Socialistas e Democratas, que estamos totalmente de acordo que é preciso gerir as nossas fronteiras, mas gerir as nossas fronteiras não significa violação dos direitos humanos, como temos assistido frequentemente.

    Por isso, as verbas que foram atribuídas — mais verbas —, para as fronteiras, para este fundo, não podem ser para as câmaras de vigilância, para as cercas, para os muros, porque isso é ao arrepio daquilo que tem sido a política de migrações da União Europeia ao longo dos anos.

    E, por isso, Senhor Comissário, aquilo que lhe queria dizer é que tenha em conta os dados que aqui referiu, que eu, ontem, referi na minha outra intervenção, e que são verdade: em 2024, houve um decréscimo da imigração irregular em 38 %.

    Isso significa, Senhor Comissário, que nós temos de continuar a estar atentos à implementação do Pacto das Migrações e ter uma visão humanista daquilo que é a imigração. Nós não vamos parar a imigração com a mão, como não paramos o vento com as mãos, é impossível. Os fluxos migratórios existem desde sempre.

    A Frontex tem sido, muitas vezes, acusada de violar direitos fundamentais e, recentemente, a plataforma para a cooperação sobre cidadãos não documentados alertou para a violação sistemática, nas fronteiras, dos direitos humanos destes cidadãos, por isso, aquilo que lhe peço é que continue a ser o guardião dos tratados e a tratar as pessoas com dignidade.

     
       

     

      András László, on behalf of the PfE Group. – Mr President, EU countries want border walls and other barriers against illegal immigration, and the EU should pay for it. The majority of European leaders demanded that the European Commission immediately mobilise substantial funding for this. This was two years ago and Ursula von der Leyen did nothing.

    What did the Commission do instead? They sued Hungary for defending the EU’s external borders. For not allowing illegal entry into the EU, Hungary received a EUR 200 million fine. In addition, they demand that we pay a fine of EUR 1 million for each and every day that we refuse to give up our efforts to keep illegal migrants out of the EU.

    European citizens don’t want a Christmas like in Magdeburg. They don’t want a New Year’s Eve like in Brussels or Cologne. Europeans want tough border protection on the outer borders of the European Union. The radical ideology of Brussels elites about open borders is a failure. It goes against the will of EU governments, it goes against the will of European citizens and it goes against common sense.

    Ultimately, European citizens pay the highest price for it. In 10 years, Hungary has already spent EUR 2 billion to defend the EU’s borders on the south. In the east, several countries are now spending vast resources to keep illegal immigrants out.

    Pay for the fence in Hungary; pay for the fence in Finland; pay for the fence in Poland and all other countries that defend our external borders. This was the demand of the European governments so that European citizens won’t have to pay with their blood.

     
       

     

      Joachim Stanisław Brudziński, w imieniu grupy ECR. – Panie Przewodniczący! Szanowni Państwo, od czerwca 2021 roku Polska, Łotwa i Litwa doświadczają kryzysu na swojej granicy z Białorusią, gdzie dziesiątki tysięcy migrantów i osób ubiegających się o azyl, głównie z Afryki i Bliskiego Wschodu, próbowały przedostać się i próbują przedostać się do Unii Europejskiej przy wsparciu władz białoruskich. Od 2023 roku dołączyła tutaj również Finlandia. Już bezpośrednio Rosja, bez pomocy swojego pomocnika, jakim jest Łukaszenka, tak samo próbuje wepchnąć na terytorium Unii Europejskiej nielegalnych imigrantów.

    Tymczasem nowe rozporządzenie kryzysowe, które jest częścią Paktu o Azylu i Migracji, odnosi się do problemu instrumentalizacji migracji jedynie z perspektywy prawa azylowego i jedynie poprzez zapewnienie bardzo ograniczonego katalogu odstępstw od obowiązujących przepisów, które mają być stosowane przez państwa członkowskie zaatakowane w ten hybrydowy sposób. Oczekujemy jednak, jako Europejczycy od Unii Europejskiej bardziej asertywnych rozwiązań, skupiających się przede wszystkim na bezpieczeństwie obywateli Unii Europejskiej. Rozwiązania takie powinny obejmować wzmocnienie infrastruktury granicznej, budowę barier fizycznych i modernizację systemu granic, współpracę organów ścigania i odpowiednie wsparcie Europolu i Frontexu z wykorzystaniem również narzędzi współpracy międzynarodowej, w tym skutecznej współpracy z państwami trzecimi w zakresie powrotów i umów o readmisji.

    Szanowni Państwo, chciałbym przypomnieć też o sytuacji, która miała miejsce, kiedy ta hybrydowa wojna Putina się rozpoczęła. Byliśmy świadkami w tej Izbie festiwalu hipokryzji i wystąpień zgoła kabaretowych. Przedstawiciele nie tylko lewicy, ale również PPE atakowali w sposób grubiański i skrajnie niemądry ówczesny rząd polski, rząd Prawa i Sprawiedliwości za budowę muru na granicy polsko- białoruskiej i za ochronę granicy zewnętrznej Unii Europejskiej. Ba, nawet został zdymisjonowany ówczesny szef Frontexu, za to tylko, że wsparł ówczesne działania rządu polskiego. Nie kto inny, jak ówczesny lider PPE, sam Donald Tusk, grzmiał, że migranci zwiezieni przez Łukaszenkę to biedni ludzie, których należy wpuścić, bo przybywają oni tutaj w poszukiwaniu lepszego życia.

    Europosłowie Platformy Obywatelskiej, którzy dzisiaj zasiadają w tej Izbie, pajacowali na granicy, atakując werbalnie funkcjonariuszy polskiej Straży Granicznej, policji czy wojska. A dzisiaj jesteśmy świadkami cudu. Nie kto inny, a ten sam Donald Tusk wczoraj z tego miejsca mówi, że najważniejsze jest bezpieczeństwo i wzywa do ochrony granic zewnętrznych.

    Szanowni Państwo, jego kolega, pan Max Weber z tego miejsca gratuluje Tuskowi odsunięcie Prawa i Sprawiedliwości od władzy i wysyła premiera Jarosława Kaczyńskiego na emeryturę. Panie Weber, gdyby nie premier Jarosław Kaczyński, którego siła i wola polityczna powstrzymała ten nielegalny proceder, to te setki tysięcy migrantów miałby Pan dzisiaj w Berlinie, w Monachium i w innych miastach niemieckich. Jeżeli ktoś ma iść na emeryturę to Pan, Ursula von der Leyen i zabierzcie Tuska, dzięki Wam ma już wysoką emeryturę europejską.

     
       

     

      Fabienne Keller, au nom du groupe Renew. – Monsieur le Président, cher Roberts Zīle, Monsieur le Commissaire Magnus Brunner, nous avons eu ce débat de très nombreuses fois et, en dépit d’arguments logiques, factuels, et de statistiques démontrant que construire des murs aux frontières non seulement ne marche pas, mais que ce n’est pas non plus dans notre ADN européen, nous y voilà encore.

    Contrairement à ce qu’aime prétendre l’extrême droite, il ne suffit pas de construire des murs à nos frontières pour régler la question de l’immigration illégale. Bien sûr que nous devons protéger nos frontières, nous organiser pour les faire respecter, comme vous l’avez expliqué, Monsieur le Commissaire; nous nous y employons. Mais la meilleure gestion de la migration et la meilleure protection de nos frontières, elle passe aussi par l’application de ce pacte, qui n’est pas encore en œuvre. En effet, un volet majeur de la mise en œuvre du pacte est consacré à cette protection des frontières.

    Cela passe par la création de procédures accélérées aux frontières, d’un filtrage rigoureux, d’une base de données sur l’asile et la migration et de moyens budgétaires supplémentaires. Le pacte comprend également un volet de coopération avec les États tiers afin de prévenir les départs irréguliers, de lutter contre le trafic des migrants, de coopérer en matière de réadmission et de promouvoir des voies d’accès légales. Ce sont ces mesures novatrices que nous devons financer avec le budget européen.

    Ce budget doit être utilisé pour rassembler. Il doit être mis au service des citoyens et de la solidarité. Le budget européen, chers collègues, doit construire des ponts, pas des murs.

     
       

     

      Mélissa Camara, au nom du groupe Verts/ALE. – Monsieur le Président, Monsieur le Commissaire, chers collègues, barrières, barbelés, divisions. Là est l’obsession d’une partie de la classe politique européenne. Partout où des États ont dressé des murs, ils n’ont semé que souffrance et désespoir. Aujourd’hui, une soixantaine de murs parsèment le globe de cicatrices de béton. Depuis une vingtaine d’années, les barrières physiques se multiplient aux frontières de l’Union européenne, en Hongrie, en Espagne, en Grèce, en Bulgarie. Ce sont désormais 13 % des frontières terrestres de l’Union européenne qui sont clôturées.

    Les murs, donc, comme seule perspective politique, partout. Regardez ce mur entre les États-Unis et le Mexique érigé sous Bush, toujours plus haut sous Trump, plus de 1 000 kilomètres d’acier et de méfiance. Ce mur que, chaque année, des centaines de milliers de personnes cherchent à franchir, poussées par l’espoir d’une vie meilleure. Et ici, en Europe, c’est la même histoire. Ceuta et Melilla, par exemple. Une porte close, des regards détournés. Ces barrières ne résolvent rien. Elles brisent des vies, elles éteignent les rêves et tuent. Souvenons-nous du 24 juin 2022 à Melilla: le gaz lacrymogène, les balles en caoutchouc, des migrants piégés entre les clôtures, blessés, abandonnés, sans soins… 23 vies fauchées. Et combien d’autres en Europe?

    Les murs n’arrêtent pas les pas. Ils allongent les routes. Ils poussent les exilés vers des chemins plus périlleux où l’ombre de la traite les guette. Les murs ne stoppent pas non plus les catastrophes humanitaires et climatiques, les guerres, les persécutions qui ont lieu partout dans le monde. Je l’ai dit hier dans une autre intervention et je souhaite le rappeler aujourd’hui: personne ne quitte son pays, ses repères, sa famille et ses proches par choix. Les murs ne protègent pas, ils séparent, ils creusent des fossés entre les peuples. Ils nourrissent la peur et la haine.

    Puisque les murs ne suffisent pas, désormais, des caméras, des drones de surveillance et tout un arsenal numérique sont déployés aux frontières de l’Europe. Mais les gens continueront d’essayer. Leur permettre de franchir les frontières n’est ici qu’une question d’humanité et de solidarité.

    Cette Europe forteresse n’est pas la mienne. Mon Europe est celle d’un accueil digne et inconditionnel, celle des droits humains et de l’égalité. Jamais nous n’accepterons la surenchère des moyens sécuritaires contre les personnes exilées, comme la droite et l’extrême droite de ce Parlement le réclament. Des milliards qui partent en fumée chaque année, pour quelle protection? Pour quel résultat, sinon la mort et le désespoir? Cessons enfin l’apathie morale. L’Europe doit choisir l’humanité, la solidarité, les ponts et refuser les murs.

     
       

     

      Christine Anderson, im Namen der ESN-Fraktion. – Herr Präsident! Europa wird angegriffen – nicht durch Panzer oder Raketen, sondern durch den Migrantenansturm auf unsere Grenzen, der als Waffe gegen uns eingesetzt wird. Und das funktioniert, weil wir uns von linken Spinnern haben einreden lassen, Pushbacks seien illegal. Pushbacks – also das konsequente Zurückweisen von Migranten an den Grenzen – sind aber das effektivste Mittel, um illegale Grenzübertritte zu verhindern und diesen Angriff auf unsere Heimatländer abzuwehren.

    Dass wir sie nicht nutzen dürfen, verdanken wir einer massiven Lobbyarbeit von Pro-Migrations-NGOs, finanziert von exzentrischen Milliardären, die sich als moralische Instanz aufspielen. Tatsächlich aber gefährdet deren Agenda nicht nur die Sicherheit Europas, sondern Europa an sich. Jedes souveräne Land hat das Recht, ja, die Pflicht, seine Grenzen zu schützen. Die Behauptung, dass dies rechtswidrig sei, ist eine dreiste Lüge, die Europa jeder Möglichkeit der Selbstverteidigung beraubt.

    Und natürlich brauchen wir physische Barrieren an den Außengrenzen – sie wirken, sie schützen, sind legal und legitim. Diese Zäune und Mauern sind nichts anderes als ein in Stacheldraht und Beton gegossener Pushback. Also bauen wir sie endlich, diese physischen Barrieren, und schützen wir endlich unsere Heimatländer und unsere Bürger.

    Auch Sie, Herr Kommissar Brunner, sollten doch inzwischen zur Kenntnis genommen haben, dass die politische Landschaft im Wandel ist. Ihre christdemokratische Partei wird bald Juniorpartner der FPÖ sein. Sie werden Ihren Kurs ohnehin ändern müssen. Warum nicht jetzt? Und wenn nicht jetzt, wann dann?

    Aber die nächsten Wahlen werden ohnehin zeigen, dass die Bürger keine Parteien mehr wählen werden, die sich weigern, die Grenzen zu schützen. Sie werden keine Parteien mehr wählen, die die Sicherheit der eigenen Bürger auf dem Altar imaginärer Rechte und Ansprüche von Millionen von rückständigen Masseninvasoren opfern und – mehr noch – sie ihnen erbarmungslos zum Fraß vorwerfen.

    Kommen Sie endlich zur Besinnung. Handeln Sie – und zwar entschieden und jetzt!

     
       


     

      Murielle Laurent (S&D). – Monsieur le Président, Monsieur le Commissaire, chers collègues, «structures physiques de protection des frontières», il s’agit là du titre de ce débat. Ce n’est en réalité que du verbiage politiquement correct pour parler de murs, de barrières, de barbelés. Cette sémantique nous renvoie à une période bien sombre de notre histoire.

    La Communauté européenne a été bâtie sur un idéal de paix, d’union et d’ouverture. Notre but n’est pas d’ériger des murs, mais de les faire tomber, comme ce fut le cas le 9 novembre 1989 avec la chute du mur de Berlin. Financer de telles infrastructures serait une insulte à la construction européenne. Plutôt que de construire des murs, nous devrions consacrer notre budget à défendre la démocratie, menacée par les populistes et non par les migrants. Comme je l’ai dit hier, ici même, lors du débat sur les liens entre la criminalité et la migration: il n’y a qu’en assumant une migration positive, en mettant en place des voies légales de migration et en engageant des partenariats sérieux avec les autres pays que nous pourrons y parvenir. Non, ce ne sont pas des idioties, c’est du bon sens. Le respect des droits fondamentaux, c’est du bon sens.

     
       

     

      France Jamet (PfE). – Monsieur le Président, 30 000 personnes. 30 000 personnes sont mortes en tentant de traverser la Méditerranée, à la poursuite d’un eldorado fictif, à la poursuite d’un eldorado que vous leur avez vendu. Ces morts tragiques, elles ne sont pas à mettre sur le compte de la lutte contre l’immigration illégale, mais sur celui de votre idéologie sans-frontiériste, des pompes aspirantes que vous avez mises en place et de votre mansuétude vis-à-vis des réseaux mafieux de passeurs. On voit d’ailleurs à Mayotte, sur notre sol, aujourd’hui, le résultat de cette politique du laissez-faire.

    Alors c’est vrai, construire des infrastructures pour stopper cette pression migratoire, qui pèse sur nos comptes publics, notre économie et la sécurité de nos compatriotes, ne sera pas suffisant sans un arsenal juridique et la volonté politique. Pour cela, il faut d’abord avoir le courage de dire: «Sachez que si vous entrez illégalement sur notre territoire, ce sera l’expulsion et le retour.»

     
       


       

    Brīvais mikrofons

     
       


     

      Bogdan Rzońca (ECR). – Panie Przewodniczący! Chciałem zabrać głos, żeby oddać hołd 21 letniemu Mateuszowi Sitkowi. Polski żołnierz, 21 letni żołnierz, został zabity przez bandytów na granicy polsko-białoruskiej. Zabity, zamordowany. I chcę o tym tu powiedzieć, bo wtedy, kiedy my, Polacy, broniliśmy granicy Unii Europejskiej, kiedy Putin i Łukaszenka wpychał uchodźców do Polski, prowadząc wojnę hybrydową, wy świetnie tu bawiliście się w Parlamencie Europejskim na fałszywym filmie polskiej reżyserki, która ośmieszała polską policję, polskich żołnierzy, tych wszystkich, którzy bronili granicy Unii Europejskiej.

    Musicie się za to wstydzić. Będę wam o tym zawsze przypominał, dlatego że dzisiaj oczywiście ta debata jest ważna, cieszę się, że komisarz przyjął takie, a nie inne stanowisko, ale wołaliśmy o te pieniądze na granicy, o to bezpieczeństwo w poprzednich latach i się nie udawało. A wczoraj oklaskiwaliście Donalda Tuska, który tutaj, w Brukseli, powiedział tak: To, co robi polski rząd Prawa i Sprawiedliwości, to szpetna propaganda. A myśmy po prostu zwyczajnie bronili granicy Unii Europejskiej. (przewodniczący odebrał mówcy głos)

    (Przewodniczący przerwał mówcy)

     
       

     

      Siegbert Frank Droese (ESN). – Herr Präsident! Ich hatte selber die Gelegenheit, als Bundestagsabgeordneter die litauische Außengrenze, die bulgarische Außengrenze zu besuchen, und es gab immer Kritik an den Finanzierungsmöglichkeiten durch die EU, dass eben zu viel humanitäre Maßnahmen gefördert wurden, aber kein robuster Grenzschutz. Insofern sind die Ausführungen von Politkommissar Brunner ein kleiner Fortschritt.

    Alleine mir fehlt der Glaube an den Willen. Wir brauchen den Willen zur Festung Europa. Wir brauchen einen, wenn Sie so wollen, neuen Eisernen Vorhang an den Außengrenzen Europas. Aber wir brauchen auch im Inneren Europas Ordnung. Wir werden daher nicht umhin kommen, Millionen von Straftätern und illegalen Migranten auszuweisen. Also wir brauchen millionenfache Remigration innerhalb Europas.

    Und das ist leider in Ihren Worten, Herr Politkommissar Brunner, überhaupt nicht vorgekommen. Solange dieses Thema nicht zentral als Aufgabe von Ihnen angesehen wird, kann ich leider Ihren schönen Worten keinen Glauben schenken.

     
       

       

    (Brīvā mikrofona uzstāšanos beigas.)

     
       

     

      Magnus Brunner, Member of the Commission. – Mr President, ladies and gentlemen, honourable Members, thank you very much, first of all, for your interventions.

    Border protection, I think we all agree, is a shared responsibility. We know the dimension of the challenge, definitely. And we will continue to dedicate also massive resources to meet it in cooperation, of course, with national authorities, with the EU agencies dealing with the topic, and with partner countries of origin and also of transit, as I said in my former statement.

    EU funds will have a strong role to play in this, and the preparation of the next MFF will be the moment to reassess the needs for border management and how these can be better addressed, whilst always ensuring – and this is also very important – that measures are proportionate and of course respect fundamental rights.

    I stand ready to engage with you on this in the weeks to come. I think that is very important. And I stand, of course, also ready to listen to you all.

     
       

     

      President. – Thank you very much, Commissioner.

    The debate is closed.

     

    12. Explanations of votes

     

      Priekšsēdētājs. – Nākamais darba kārtības punkts bija paredzēts balsojumu skaidrojumi, bet tā kā neviens balsojuma skaidrojums nav saņemts, tad pāreju pie šīs sēdes nobeiguma.

     

    13. Approval of the minutes of the sitting and forwarding of texts adopted

     

      Priekšsēdētājs. – Šīs sēdes protokols tiks iesniegts Parlamentam apstiprināšanai nākamās sēdes sākumā.

    Ja nav iebildumu, šodienas sēdē pieņemtās rezolūcijas nosūtīšu tajās norādītajām personām un struktūrām.

     

    14. Dates of forthcoming sittings

     

      Priekšsēdētājs. – Nākamā sesija notiks 2025. gada 29. janvārī Briselē.

     

    15. Closure of the sitting

       

    (Sēde tika slēgta plkst. 15:41.)

     

    16. Adjournment of the session

     

      Priekšsēdētājs. – Eiropas Parlamenta sesiju pasludinu par pārtrauktu.

     

    MIL OSI Europe News –

    January 25, 2025
  • MIL-OSI USA: Sen. Moran Joins Colleagues in Introducing Bill to Give Small Businesses Permanent Tax Break

    US Senate News:

    Source: United States Senator for Kansas – Jerry Moran
    WASHINGTON – Today, U.S. Senator Jerry Moran (R-Kan.) joined Steve Daines (R-Mont.), Majority Leader John Thune (R-S.D) and 32 Senate Republican colleagues in introducing the Main Street Tax Certainty Act to make the 20 percent pass-through business tax deduction permanent. This legislation will prevent the deduction from expiring at the end of 2025.
    “Kansas small businesses support rural and urban communities across the state,” said Sen. Moran. “By making this small business tax break permanent, businesses across the nation will be able to remain open, retain hard-working employees and help the areas around them thrive.”
    “As the son of a contractor, I’ve seen firsthand the hard work it takes to keep a small business flourishing- especially as Americans are still grappling with the effects of Joe Biden’s inflation,” said Sen. Daines. “It’s absolutely crucial that we pass this legislation to prevent a 20 percent tax increase for hardworking Montanans and I’ll keep fighting for ways to support Montana small businesses, which provide the majority of jobs in our state.”
    “Small businesses are the economic engine that drive growth and jobs in South Dakota and across our country,” said Sen. Thune. “This legislation is critical to permanently extending a key provision from the Tax Cuts and Jobs Act and ensuring our small businesses and farms and ranches are not hit with a crippling tax hike at the end of 2025.”
    Sens. Moran, Daines and Thune were joined by Senators John Barrasso (R-Wyo.), Shelley Moore Capito (R-W.V.), James Lankford (R-Okla.), Joni Ernst (R-Iowa), Tom Cotton (R-Ark.), Tim Scott (R-S.C.), Chuck Grassley (R-Iowa), Kevin Cramer (R-N.D.), Marsha Blackburn (R-Tenn.), Mike Rounds (R-S.D.), Pete Ricketts (R-Neb.), Katie Britt (R-Ala.), Jim Risch (R-Idaho), Eric Schmitt (R-Mo.), Roger Wicker (R-Miss.), Cynthia Lummis (R-Wyo.), Cindy Hyde-Smith (R-Miss.), Tommy Tuberville (R-Ala.), Ted Cruz (R-Texas), John Hoeven (R-N.D.), Thom Tillis (R-N.C.), Roger Marshall (R-Kan.), Jim Justice (R-W.V.), Tim Sheehy (R-Mont.), Deb Fischer (R-Neb.), Bill Cassidy (R-La.), Ted Budd (R-N.C.), Rick Scott (R-Fla.), Bill Hagerty (R-Tenn.), Todd Young (R-Ind.), John Kennedy (R-La.) and Jim Banks (R-Ind.).
    The full bill text can be found here.
    Background:
    The 20 percent small business deduction, section 199A, was created as a part of President Trump’s 2017 tax cuts to level the playing field between small businesses and large corporations.
    Without Congressional action, 9 out of 10 small businesses will be hit with a massive tax hike when this deduction is set to expire

    MIL OSI USA News –

    January 25, 2025
  • MIL-OSI USA: Klobuchar, Cramer Introduce Bipartisan Legislation to Support Firefighters with Service-Related Cancers

    US Senate News:

    Source: United States Senator Amy Klobuchar (D-Minn)

    WASHINGTON – U.S. Senators Amy Klobuchar (D-MN) and Kevin Cramer (R-ND) reintroduced the Honoring Our Fallen Heroes Act. The bipartisan legislation, which passed unanimously (21-0) out of the Senate Judiciary Committee last year, would expand access to federal support for the families of firefighters and other first responders who pass away or become permanently disabled from service-related cancers. Currently, firefighters are only eligible for support under the Public Safety Officer Benefits (PSOB) program for physical injuries sustained in the line-of-duty, or for deaths from duty-related heart attacks, strokes, mental health conditions such as post-traumatic stress disorder, and 9/11 related illnesses.

    The legislation is being introduced in honor of Michael Paidar, a St. Paul fire captain who died of an aggressive form of Acute Myeloid Leukemia on August 26, 2020 while still working for the fire department. In 2021, after strong advocacy from the Paidar family, the Minnesota Department of Public Safety awarded line-of-duty benefits to Captain Paidar’s widow Julie. This was the first time that a firefighter’s family had received benefits for cancer incurred in the line-of-duty through Minnesota’s state Public Safety Officer Benefits program. The Honoring Our Fallen Heroes Act would ensure that firefighters and other first responders across the country are eligible to receive similar benefits under the federal PSOB program. 

    This legislation is co-sponsored by Senators Banks (R-IN), Barrasso (R-WY), Blackburn (R-TN), Blumenthal (D-CT), Coons (D-DE), Cornyn (R-TX), Cruz (R-TX), Duckworth (D-IL), Durbin (D-IL), Fetterman (D-PA), Fischer (R-NE), Graham (R-SC), Hirono (D-HI), Hoeven (R-ND), Justice (R-WV), Kelly (D-AZ), Markey (D-MA), Padilla (D-CA), Rounds (R-SD), Schiff (D-CA), Shaheen (D-NH), Sheehy (R-MT), Smith (D-MN), Warner (D-VA), Warren (D-MA), Welch (D-VT), Whitehouse (D-RI), and Wyden (D-OR). 

    “As we are seeing in California and throughout the country, our firefighters put their lives on the line every day to keep us safe, often exposing themselves to carcinogens that can have lethal long-term effects. It’s unacceptable that firefighters who succumb to cancer from work-related exposure or become permanently and totally disabled don’t receive the same treatment as others who die in the line of duty,” said Klobuchar. “That’s why I’m working with Senator Cramer to ensure that firefighters get the support they deserve. Our bipartisan legislation will honor the memory and sacrifice of St. Paul Fire Department Captain Mike Paidar and so many others who risk their lives in service of their communities.”

    “Our first responders epitomize courage and selfless sacrifice, confronting both the immediate perils of their duty and lingering health risks associated with their service,” said Cramer. “The exposure to dangerous carcinogens happens on our behalf. When these heroes make the ultimate sacrifice, their families should not bear these burdens alone.”

    “Firefighters and first responders put their lives on the line without a second thought to protect California communities from the devastating Southern California wildfires,” said Padilla. “When they sacrifice their lives or face severe disabilities due to service-related cancers, we have a shared duty to help get their families back on their feet.”

    “Our first responders risk everything for us – from the front lines of wildfires to the unseen lines of duty that keep our communities safe. When they lose their lives to service-related cancers, their families deserve the full measure of support they’ve earned. No one who has lost so much should be left to face hardship alone,” said Schiff.

    The Public Safety Officers’ Benefits (PSOB) program provides benefits to the survivors of fire fighters; law enforcement officers; and other first responders who are killed as the result of injuries sustained in the line of duty. The program also provides disability benefits where first responders become permanently or totally disabled. The Public Safety Officers’ Educational Assistance (PSOEA) program, a component of the PSOB program, provides higher-education assistance to the children and spouses of public safety officers killed or permanently disabled in the line of duty. The PSOB and PSOEA programs are administered by the Department of Justice’s Bureau of Justice Assistance (BJA).

    The Honoring our Fallen Heroes Act would expand access to federal support for the families of firefighters and first responders who pass away from cancer caused by carcinogenic exposure during their service. The bill would also extend disability benefits in cases where these first responders become permanently and totally disabled due to cancer.

    The legislation is endorsed by the International Association of Fire Fighters (IAFF), as well as the Association of State Criminal Investigative Agencies (ASCIA); Congressional Fire Services Institute (CFSI); Federal Law Enforcement Officers Association (FLEOA); Fraternal Order of Police (FOP); International Association of Fire Chiefs (IAFC); Major County Sheriffs of America (MCSA); Metropolitan Fire Chiefs Association (Metro Chiefs); National Association of Police Organizations (NAPO); National Fallen Firefighters Foundation (NFFF); National Fire Protection Association (NFPA); National Narcotics Officers’ Associations’ Coalition (NNOAC); National Volunteer Fire Council (NVFC); and Sergeants Benevolent Association of the NYPD. 

    “I’m grateful to Senators Klobuchar and Cramer for introducing the bipartisan Honoring our Fallen Heroes Act. Every day, our nation’s first responders selflessly serve and protect their communities. Unfortunately, through exposures on the job, many are also fighting occupational cancer. As our family knows firsthand, the lives of the first responder and their family are forever changed upon the cancer diagnosis. Mike loved being a career firefighter and paramedic. Losing him to Leukemia in 2020 was devastating not only for our family, but also for his fire family and our communities. This important legislation will recognize the sacrifices of our fallen, allowing first responders and their families to receive the PSOB benefits they rightly deserve,” said Julie Paidar, widow of St. Paul Fire Captain Michael Paidar.

    “There are thousands of firefighters across the United States that are in the fight for their life battling cancers that they should never get and hundreds more receiving a diagnosis daily.  In 2022, 75% of firefighter Line of Duty Deaths (LODD) were due to occupational cancer. Saint Paul Firefighters IAFF Local 21 will always remember Captain Mike Paidar as a fit, healthy man, a loving father, doting husband and a courageous firefighter, who loved his job and went to work each day with a smile on his face to care for people that needed his help. Sadly, Mike died from his job related exposure to known carcinogens. The Honoring Our Fallen Heroes Act makes it possible for us to preserve Mike’s dignity and care for his family, just as he did for so many others during their time of need. This is what we want to be Mike’s legacy, ” said Kyle Thornberg, President of St. Paul International Association of Fire Fighters Local 21.

    “Cancer is ravaging the fire service and is the leading cause of line of duty deaths. Medical studies and commonsense prove this epidemic comes from our exposures to toxins in smoke, vehicle exhaust, and even our own protective gear. In 2022, the International Agency for Research on Cancer found this evidence so clear that they classified the occupation of firefighting itself as a Group 1 carcinogen – their highest and most dangerous level. However, when fire fighters succumb to job-related cancer, their families are left with nothing and denied critically-needed death benefits. It is unconscionable to abandon fallen fire fighters’ families when they need help most. The IAFF applauds Senators Klobuchar and Cramer for standing with fire fighters’ families and ensuring they don’t fall through the cracks. The Honor Act will rightfully recognize our cancer deaths as line of duty deaths and provide families with sorely needed death benefits. We urge Congress to pass the Honor Act immediately and send a lifeline to families who have already sacrificed a loved one for our nation,” said Edward Kelly, General President of the International Association of Fire Fighters.

    “Firefighters face an increased risk of cancer due to the hazardous nature of their jobs. The Public Safety Officers’ Benefits Program should reflect the scope of the risks faced by our nation’s first responders, including occupational cancer. We look forward to working with Senators Klobuchar and Cramer to ensure that firefighters and their families receive the benefits they need and deserve,” said Bill Webb, Executive Director of the Congressional Fire Services Institute.

    “Modern medicine often struggles to link an officer’s medical condition directly to a specific on-the-job incident; however, federal law enforcement officers face significant carcinogenic exposure in the line of duty, especially as first responders to large-scale chemical, radiological, or biological incidents. Unfortunately, the current Public Safety Officer Benefits (PSOB) system denies many officers earned benefits due to these scientific limitations. We commend Senators Klobuchar and Cramer for introducing legislation to align the PSOB system with the real-world risks faced by law enforcement. This bill is a vital step toward ensuring officers receive the support they deserve,” said Mathew Silverman, National President of the Federal Law Enforcement Officers Association.

    “We are grateful to Senators Klobuchar and Cramer for their leadership on this issue. Our law enforcement officers are in harm’s way each and every day. They are exposed not only to physical threats, but also unseen or unknown threats while operating in potentially hazardous environments. Public safety officers who are exposed to known carcinogens and who contract cancer that ends their lives or disables them should be considered to have sustained a personal injury in the line of duty for the purposes of the Public Safety Officers’ Benefits (PSOB) program. The Klobuchar-Cramer bill, which had 37 cosponsors and cleared the Judiciary Committee unanimously will do just that,” said Patrick Yoes, National President of the Fraternal Order of Police.

    “I thank Senator Klobuchar and the bill’s cosponsors for re-introducing the Honoring Our Fallen Heroes Act. Cancer remains a major cause of death for firefighters across the nation. It is time for the nation to recognize the families that have lost loved ones due to cancer caused by modern-day firefighting. We owe them a debt of gratitude and should take care of them,” said Chief Josh Waldo, President and Board Chair of the International Association of Fire Chiefs.

    “The Major County Sheriffs of America (MCSA) strongly supports the Honoring Our Fallen Heroes Act and applauds Senators Klobuchar and Cramer for their leadership. This bipartisan legislation ensures that families of first responders who lose their lives to service-related cancer receive the benefits they deserve. Our first responders put their lives on the line daily, facing not just immediate dangers but long-term health risks from carcinogen exposure. Supporting their families through these benefits strengthens our public safety community and honors the sacrifices made by those who serve,” said Megan Noland, Executive Director of the Major County Sheriffs of America.

    “Our nation’s public safety officers put their lives at risk every day. Sometimes unnoticed are the officers pulling families from burning cars or saving children from house fires or responding to disasters such as the wildfires in Los Angeles. These acts of heroism often have long-term consequences for the officers, including exposure-related cancers. The Honoring Our Fallen Heroes Act recognizes these as line-of-duty injuries under the Public Safety Officers’ Benefits Program and ensures that officers suffering from these cancers and their families get the benefits they have earned. We stand with Senators Klobuchar and Cramer in support of this bill and thank them for championing this important issue,” said Bill Johnson, Executive Director of the National Association of Police Organizations.

    “The National Fallen Firefighters Foundation expresses our steadfast support of the Honoring Our Fallen Heroes Act. Multiple studies have shown that firefighters have an increased risk of cancer compared to the general public. These men and women put their lives on the line every day to protect their communities, and as a result, are exposed to a variety of carcinogens through the very nature of their work, including exposure to hazardous materials, toxic smoke, and other environmental factors. The federal government must recognize their sacrifice, and the families of public safety officers who die or are permanently disabled as a result of occupational cancer should have access to benefits provided by the Public Safety Officers’ Benefits program. We commend Senators Klobuchar and Cramer for championing this important legislation,” said Victor Stagnaro, Chief Executive Officer of the National Fallen Firefighters Foundation.

    “NFPA urges Congress to approve the HONOR Act which has strong bipartisan support. As a nation, we must honor firefighters lost to occupational cancer and provide support to the families they leave behind,” said Jim Pauley, President and CEO of the National Fire Protection Association.

    “Too often battles with occupational related cancer leave first responders permanently disabled or leave their survivors financially struggling after their passing. I applaud Senators Klobuchar and Cramer for introducing the Honoring Our Fallen Heroes Act of 2025. This important legislation will provide much needed support to first responder and their families as they face the aftermath of occupational cancer by providing coverage for certain exposure-related cancers under the Public Safety Officers Benefit program,”said Steve Hirsch, Chairman of the National Volunteer Fire Council. 

    “For more than twenty years, we have seen firsthand the devasting toll that cancer has taken among the heroes who responded to the 9/11 attacks. The ongoing health crisis among 9/11 responders has also brought to light other serious and long-term health risks that public safety officers across this country face from job-related exposures to known carcinogens. That is why the SBA is proud to join with Sen. Klobuchar and Sen. Cramer again in advocating for swift passage of the ‘Honoring Our Fallen Heroes Act’ to ensure PSOB benefits for the families of those who succumb to job-related cancers,” said Vincent Vallelong, President of the Sergeants Benevolent Association of the NYPD.

    Klobuchar has long led efforts to support firefighters and first responders. Klobuchar co-led bipartisan legislation to create a national cancer registry for firefighters diagnosed with the deadly disease was signed into law in 2018 and reauthorized last year. The Firefighter Cancer Registry Act calls on the Centers for Disease Control and Prevention (CDC) to monitor and study the relationship between career-long exposure to dangerous fumes and toxins and the incidence of cancer in firefighters.

    Klobuchar also worked to pass the bipartisan Fire Grants and Safety Act which was signed into law in 2023, and continues funding for the Assistance for Firefighters Grant and the Staffing for Adequate Fire and Emergency Response (SAFER) Grant programs. The Assistance for Firefighters Grant program helps firefighters and other first responders obtain critically needed equipment, protective gear, emergency vehicles, training and other resources. The SAFER Grants program provides direct funding to fire departments and volunteer firefighter interest organizations to increase or maintain the number of trained, “front line” firefighters and enhance their capacity to comply with staffing, response, and operational standards.

    Klobuchar also worked to pass the Protecting America’s First Responders Act, which was signed into law in 2021. This legislation improves the PSOB program by allowing benefit amounts to be calculated based on the date of the award and account for cost of living increases.

    Klobuchar also co-led legislation to retrofit older high-rise apartment buildings with sprinkler systems and help prevent future tragedies like the Cedar High Apartments fire, which took place in Minneapolis, Minnesota in 2019.

    MIL OSI USA News –

    January 25, 2025
  • MIL-OSI Economics: Iceland donates an additional CHF 200,000 to WTO Fish Fund

    Source: WTO

    Headline: Iceland donates an additional CHF 200,000 to WTO Fish Fund

    Director-General Ngozi Okonjo-Iweala said: “I warmly welcome Iceland’s second contribution to the WTO Fish Fund, which reflects its strong commitment to sustainable fisheries and multilateral cooperation. Building on its previous donation, this latest contribution will be instrumental in supporting developing and LDC members as they work to implement the historic Agreement on Fisheries Subsidies.”
    Ambassador Einar Gunnarsson of Iceland said: “Iceland is proud to support the WTO Fisheries Funding Mechanism as part of our longstanding commitment to sustainable fisheries and ocean health. By contributing to this fund, we aim to assist developing and least-developed countries in implementing the Agreement on Fisheries Subsidies, ensuring that they have the tools and capacity to join global efforts to protect marine ecosystems. Sustainable Development Goal 14.6 reminds us that collective action is essential, and Iceland remains dedicated to playing its part in fostering sustainable and equitable use of our shared ocean resources.”
    The Agreement on Fisheries Subsidies will enter into force upon its acceptance by two-thirds of WTO members. Eighty-nine WTO members have formally accepted the Agreement. Twenty-two more formal acceptances are needed for the Agreement to come into effect. Because the new Agreement will involve adjustments and enhancements to WTO members’ legislative and administrative frameworks, their transparency and notification obligations, and their fisheries management policies and practices, Article 7 of the Agreement provides for the creation of a voluntary funding mechanism to finance targeted technical assistance and capacity building to help developing and least developed country members with implementation.
    The Fund is operated by the WTO, with the support of the Food and Agriculture Organization (FAO), the International Fund for Agricultural Development (IFAD), and the World Bank Group. These core partners bring together relevant expertise to support members seeking assistance to implement the Agreement.
    Iceland contributed CHF 500,000 to the Fish Fund in September 2023; including the most recent donation, Iceland has contributed a total of CHF 700,000 to the Fish Fund. Between 2002 and 2025, Iceland has contributed CHF 1,025,000 to various WTO technical assistance trust funds.
    More information on the fund, which became ready to accept donations on 8 November 2022, is available here.

    MIL OSI Economics –

    January 25, 2025
  • MIL-OSI Banking: Apple Miami Worldcenter opens to excited customers in downtown Miami

    Source: Apple

    Headline: Apple Miami Worldcenter opens to excited customers in downtown Miami

    Apple’s newest store in Miami opened this Friday, January 24, in the city’s dynamic downtown district, where customers and members of the local community celebrated with the over 150-person-strong store team.

    Shoppers can easily and seamlessly upgrade to iPhone 16 by taking advantage of Apple Trade In, various financing offers, carrier activation, and personalized setup — all in a uniquely designed store where everyone is welcome. Customers can shop the all-new lineup of iPhone 16, Mac, MacBook Pro, Mac mini powered by the M4 chip, Apple Watch Series 10, and AirPods models, and receive personalized shopping support from Apple team members.

    To celebrate the opening of the store, Apple Miami Worldcenter will offer customized Today at Apple sessions highlighting the store’s environment-centered design and natural elements, as well as special Made for Business events led by small business owners. Customers can explore upcoming Today at Apple sessions and book at apple.com/retail/miamiworldcenter.

    MIL OSI Global Banks –

    January 25, 2025
  • MIL-OSI Security: Maryland Man Convicted Of Money Laundering Offenses Related To Computer Intrusions

    Source: Office of United States Attorneys

    NEWARK, N.J. – A Maryland man was convicted yesterday for money laundering offenses related to funds that were obtained through unlawful computer intrusions that targeted a victim’s 401(k) retirement plan, Acting U.S. Attorney Vikas Khanna announced.

    Oladapo Sunday Ogunbiyi, 43, of Bowie, Maryland, was convicted of conspiracy to commit money laundering, two counts of money laundering, and two counts of engaging in monetary transactions in property derived from specified unlawful activity.  The jury returned the verdict following a three-day trial before U.S. District Judge Michael A. Shipp in Trenton federal court.

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

    Ogunbiyi conspired with others to launder funds obtained through an unlawful computer fraud scheme in which they obtained unauthorized access to a 401k account belonging to the victim. The co-conspirators then added a bank account belonging to another individual to the victim’s 401k account without the victim’s knowledge or authorization. This account was designated as the account to receive withdrawals from the victim’s 401k account. Thereafter, $246,390 was transferred to the bank account belonging to the account that had been added without the victim’s knowledge or consent.

    Ogunbiyi’s co-conspirator directed that the fraud proceeds be converted into cashier’s checks, which were provided to Ogunbiyi. Ogunbiyi then deposited the cashier’s checks into business bank accounts under his control and withdrew the funds in a series of ATM and counter withdrawals designed to conceal the source of the money, which he used for personal expenditures.

    The counts of money laundering and money laundering conspiracy carry a maximum penalty of 20 years in prison and a fine of $500,000, or twice the value of the property involved in the transaction, whichever is greater. The counts of engaging in monetary transactions in property derived from specified unlawful activity carry a maximum penalty of 10 years in prison and a fine of $250,000, or twice the value of the property involved in the transaction, whichever is greater. Sentencing is scheduled for July 7, 2025.

    Acting U.S. Attorney Khanna credited special agents of the FBI, including the FBI’s Cyber Crimes Task Force, under the direction of Acting Special Agent in Charge Terence G. Reilly in Newark, with the investigation leading to the charges.

    The government is represented by Assistant U.S. Attorneys Lauren Kober of the Organized Crime/Gangs Unit and Peter A. Laserna of the Bank Integrity, Money Laundering, and Recovery Unit in Newark.

    25-019                                                 ###

    Defense counsel: Jason A. Seidman, Esq., Freehold, New Jersey

    MIL Security OSI –

    January 25, 2025
  • MIL-OSI: Lake Shore Bancorp, Inc. Announces Fourth Quarter 2024 and Year End Financial Results

    Source: GlobeNewswire (MIL-OSI)

    DUNKIRK, N.Y., Jan. 24, 2025 (GLOBE NEWSWIRE) — Lake Shore Bancorp, Inc. (the “Company”) (NASDAQ: LSBK), the holding company for Lake Shore Savings Bank (the “Bank”), reported unaudited net income of $1.5 million, or $0.26 per diluted share, for the fourth quarter of 2024 compared to net income of $749,000, or $0.13 per diluted share, for the fourth quarter of 2023. For the year ended December 31, 2024, the Company reported unaudited net income of $4.9 million, or $0.88 per diluted share, as compared to $4.8 million, or $0.82 per diluted share for the year ended December 31, 2023. The Company’s 2024 financial performance was positively impacted by a decrease in non-interest expenses as a result of efforts to optimize operating expenses while reducing its reliance on wholesale funding by $41.0 million.

    “2024 was a momentous year for Lake Shore as we achieved our goal to exit early the OCC’s Consent Order, reinstituted quarterly dividend payments to shareholders and grew earnings per share,” stated Kim C. Liddell, President, CEO, and Director. “We anticipate a challenging earnings environment in 2025 and will continue efforts to steadily increase value for our shareholders.”

    Fourth Quarter 2024 and Full Year Financial Highlights:

    • Net income increased to $1.5 million during the fourth quarter of 2024, an increase of $720,000, or 96.1%, when compared to the fourth quarter of 2023. Net income was positively impacted by an increase in the credit to the provision for credit losses of $581,000, partially offset by a decrease in net interest income of $217,000, or 3.9%;
    • Net income increased to $4.9 million during the year ended December 31, 2024, an increase of $111,000, or 2.3%, when compared to the year ended December 31, 2023. Net income was positively impacted by a decrease in non-interest expense of $1.8 million, or 8.4%, and an increase in non-interest income of $669,000, or 25.4%;
    • Net interest margin increased to 3.31% during the fourth quarter of 2024, an increase of three basis points when compared to net interest margin of 3.28% during the third quarter of 2024;
    • Reduced reliance on wholesale funding by not renewing $16.0 million of brokered CDs and repaying $25.0 million of FHLBNY borrowings during the year ended December 31, 2024;
    • At December 31, 2024 and December 31, 2023, the Company’s percentage of uninsured deposits to total deposits was 13.5% and 12.8%, respectively;
    • Book value per share increased 3.3% to $15.67 per share at December 31, 2024 as compared to $15.17 per share at December 31, 2023; and
    • The Bank’s capital position remains “well capitalized” with a Tier 1 Leverage ratio of 13.83% and a Total Risk-Based Capital ratio of 18.79% at December 31, 2024.

    Net Interest Income

    Net interest income for the fourth quarter of 2024 marginally decreased by $42,000, or 0.8%, to $5.3 million as compared to $5.4 million for the third quarter of 2024 and decreased $217,000, or 3.9%, as compared to $5.6 million for the fourth quarter of 2023. Net interest margin and interest rate spread were 3.31% and 2.72%, respectively, for the fourth quarter of 2024 as compared to 3.28% and 2.67%, respectively, for the third quarter of 2024 and 3.34% and 2.83%, respectively, for the fourth quarter of 2023.

    Net interest income for the year ended December 31, 2024 decreased $3.3 million, or 13.5%, to $21.1 million as compared to $24.4 million for the year ended December 31, 2023. Net interest margin and interest rate spread were 3.21% and 2.62%, respectively, for the year ended December 31, 2024 as compared to 3.62% and 3.23%, respectively, for the year ended December 31, 2023.

    Interest income for the fourth quarter of 2024 was $8.6 million, a decrease of $261,000, or 2.9%, compared to $8.9 million for the third quarter of 2024, and a decrease of $23,000, or 0.3%, compared to $8.6 million for the fourth quarter of 2023.

    The decrease in interest income from the prior quarter was primarily due to a decrease in the average balance of interest-earning assets of $11.8 million, or 1.8%, as well as a six basis points decrease in the average yield on interest-earning assets. Interest earned on interest-earning deposits decreased by $217,000, or 30.3%, due to a 65 basis points decrease in average yield and an $11.2 million decrease in the average balance of interest-earning deposits during the fourth quarter of 2024.

    The decrease in interest income from the prior year quarter was primarily due to a $20.3 million, or 3.0%, decrease in the average balance of interest-earning assets. The decrease was partially offset by a 15 basis points increase in the average yield on interest-earning assets. During the fourth quarter of 2024 as compared to the same period in 2023, there was a $92,000 decrease in interest earned on interest-earning deposits due to a 65 basis points decrease in the average yield earned on interest earning deposits and a $51,000 decrease in interest earned on securities due to a 36 basis points decrease in the average yield on the securities portfolio. These decreases were partially offset by a $120,000 increase in interest income on loans due to a 28 basis points increase in the average yield on loans.

    Interest income for the year ended December 31, 2024 was $34.8 million, an increase of $1.0 million, or 3.1%, compared to $33.8 million for the year ended December 31, 2023. The increase was due to a 28 basis points increase in the average yield on interest-earning assets primarily due to an increase in the average interest rate earned on loans. During the year ended December 31, 2024 as compared to 2023, there was a $704,000 increase in interest income on loans due to a 32 basis points increase in the average yield on loans, partially offset by a decrease in the average balance of loans of $19.8 million, or 3.5%. Interest income on interest-earning deposits increased to $2.5 million in 2024, an increase of $655,000, or 36.3%, from $1.8 million in 2023, due to a 17 basis points increase in average yield and an $11.7 million increase in the average balance of interest-earning deposits.

    Interest expense for the fourth quarter of 2024 was $3.2 million, a decrease of $219,000, or 6.3%, from the third quarter of 2024, and an increase of $194,000, or 6.4%, from $3.1 million for the fourth quarter of 2023.

    The decrease in interest expense when compared to the previous quarter was primarily due to a $11.7 million, or 2.3%, decrease in the average balance of interest-bearing liabilities and an 11 basis points decrease in the average rate paid. During the fourth quarter of 2024 as compared to the previous quarter, interest expense on deposits decreased by $176,000, or 5.3%, due to a $1.8 million decrease in the average balance of deposits and a 13 basis points decrease in the average rate paid on deposit accounts. Average interest-bearing deposit balances were $487.5 million, a 0.4% decrease during the fourth quarter of 2024 when compared to the previous quarter due to a decrease in the average balance of all deposit categories with the exception of money market accounts. Interest expense on borrowed funds and other interest-bearing liabilities decreased by $43,000 due to a $9.8 million, or 48.0%, decrease in the average balance of borrowed funds and other interest-bearing liabilities due to the repayment of our FHLBNY borrowings during the second half of 2024.

    The increase in interest expense when compared to the prior year quarter was primarily due to a 26 basis points increase in average interest paid on interest-bearing liabilities. During the fourth quarter of 2024 as compared to the same period in 2023, there was a $324,000 increase in interest paid on time deposit accounts due to a 60 basis points increase in the average interest rate paid on time deposits. The increase in the average rate paid on time deposit accounts was primarily due to the increase in market interest rates and deposit competition. Average deposit balances increased 0.9% during the fourth quarter of 2024 from the fourth quarter of 2023, due to an increase in average money market accounts when compared to the same period of 2023. During the fourth quarter of 2024, interest expense on borrowed funds and other interest-bearing liabilities decreased by $212,000, or 66.7%, compared to the fourth quarter of 2023, primarily due to a $25.8 million decrease in average borrowed funds and other interest-bearing liabilities outstanding due to the repayment of our FHLBNY borrowings during 2024.

    Interest expense for the year ended December 31, 2024 was $13.7 million, an increase of $4.3 million, or 46.2%, from $9.4 million for the year ended December 31, 2023. The increase in interest expense was primarily due to an 89 basis points increase in average interest paid on interest-bearing liabilities. During the year ended December 31, 2024 as compared to 2023, there was a $3.1 million increase in interest paid on time deposit accounts due to a 122 basis points increase in the average interest rate paid on time deposits along with an increase in average time deposit balances of $14.6 million, or 7.1%. The increase in the average rate paid on time deposit accounts was primarily due to the increase in market interest rates and deposit competition over the course of 2023 and into 2024. Average interest-bearing deposit balances were $491.9 million, a 1.2% increase during the year ended December 31, 2024, resulting from an increase in average time deposits and average money market accounts since December 31, 2023. During the year ended December 31, 2024, interest expense on borrowed funds and other interest-bearing liabilities decreased by $664,000, or 50.0%, compared to the year ended December 31, 2023, primarily due to a $17.2 million decrease in average borrowed funds and other interest-bearing liabilities outstanding due to the repayment of our FHLBNY borrowings during 2024.

    Non-Interest Income

    Non-interest income was $1.1 million for the fourth quarter of 2024, an increase of $277,000, or 35.0%, as compared to $791,000 for the third quarter of 2024, and an increase of $145,000, or 15.7%, as compared to $923,000 for the fourth quarter of 2023. The increase from the prior quarter was primarily due to a $161,000 increase in earnings on annuity assets in connection with the purchase of annuities during the fourth quarter 2024, a $65,000 increase in earnings on bank-owned life insurance during the fourth quarter as the result of the recognition of a death benefit, and an increase of $51,000 in unrealized gains on equity securities held in the Bank’s investment portfolio. The increase from the prior year quarter was primarily due to a $161,000 increase in earnings on annuity assets in connection with the purchase of annuities during the fourth quarter of 2024.

    Non-interest income was $3.3 million for the year ended December 31, 2024, an increase of $669,000, or 25.4%, as compared to the year ended December 31, 2023. The increase was primarily due to a $313,000 increase in earnings on bank-owned life insurance in connection with the restructuring of bank-owned life insurance during the fourth quarter of 2023 and the recognition of death benefits during the second half of 2024, as well as a $161,000 increase in earnings on annuities purchased in the fourth quarter of 2024. The increases were partially offset by a decrease in debit card fees of $30,000, or 3.5% during the year ended December 31, 2024 when compared to the year ended December 31, 2023.

    Non-Interest Expense

    Non-interest expense was $5.3 million for the fourth quarter of 2024, an increase of $72,000, or 1.4%, as compared to $5.2 million for the fourth quarter of 2023. The increase from the prior year quarter was primarily related to an increase in salaries and wages expense of $406,000, or 14.0%, which was partially offset by all other non-interest expense categories, with the exception of postage and supplies expense.

    Non-interest expense was $20.0 million for the year ended December 31, 2024, a decrease of $1.8 million, or 8.4%, as compared to $21.8 million for the year ended December 31, 2023. The decrease primarily related to a decline in professional services expenses of $1.0 million, or 41.8%, as a result of a decrease in the use of external consultants. Advertising costs decreased by $484,000, or 83.7%, due to a decrease in marketing spending, and FDIC insurance expense decreased by $317,000, or 28.5%, during the year ended December 31, 2024 due to a decrease in premium assessments. Additionally, occupancy and equipment costs decreased by $194,000, or 6.7%, as the result of efforts to optimize operating expenses. These decreases were partially offset by an increase in salaries and employee benefits expense of $198,000, or 1.8%, as well as an increase in data processing costs of $41,000, or 2.3%, for the year ended December 31, 2024 when compared to the year ended December 31, 2023.

    Income Tax Expense

    Income tax expense was $278,000 for the fourth quarter of 2024, an increase of $20,000, or 7.8%, as compared to $258,000 for the third quarter of 2024, and a decrease of $283,000, or 50.4%, as compared to $561,000 for the fourth quarter of 2023. The increase in income tax expense from the prior quarter was primarily related to the increase in taxable income earned during the current quarter. The decrease in income tax expense from the prior year quarter was due to a restructuring of bank-owned life insurance in 2023 which resulted in additional taxable income in 2023 and an increase in non-taxable income in 2024 as the result of higher earnings on policies owned.

    Income tax expense was $935,000 for the year ended December 31, 2024, a decrease of $464,000, or 33.2%, as compared to $1.4 million for the year ended December 31, 2023. The decrease in income tax expense for the year ended December 31, 2024 when compared to the year ended December 31, 2023 was due to a restructuring of bank-owned life insurance in 2023 which resulted in additional taxable income in 2023 and an increase in non-taxable income in 2024 as the result of higher earnings on policies owned.

    Credit Quality

    The Company’s allowance for credit losses on loans was $5.1 million as of December 31, 2024 as compared to $6.5 million as of December 31, 2023. The Company’s allowance for credit losses on unfunded commitments was $314,000 as of December 31, 2024 as compared to $485,000 as of December 31, 2023. Non-performing assets as a percent of total assets increased to 0.55% at December 31, 2024 as compared to 0.47% at December 31, 2023, due to a decrease in total assets of $39.6 million, or 5.5%, and an increase in non-performing assets of $423,000, or 12.5%. The Company’s allowance for credit losses on loans as a percent of net loans was 0.93% at December 31, 2024 and 1.16% at December 31, 2023.

    The Company recorded a credit to the provision for credit losses of $613,000 for the fourth quarter of 2024 and $1.5 million for the year ended December 31, 2024. For the year ended December 31, 2024, $1.3 million of the credit to the provision for credit losses related to the loan portfolio and $171,000 related to the reserve for unfunded commitments.

    The decrease in the allowance for credit losses on loans and the corresponding credit to the provision for credit losses recognized during the year ended December 31, 2024 was the result of a decrease in the quantitative loss factors derived from historical loss rates calculated in the vintage model as well as a decrease in the qualitative loss factors derived from both current and forecasted economic trends.

    Balance Sheet Summary

    Total assets at December 31, 2024 were $685.5 million, a $39.6 million decrease, or 5.5%, as compared to $725.1 million at December 31, 2023. Cash and cash equivalents decreased by $20.6 million, or 38.3%, from $53.7 million at December 31, 2023 to $33.1 million at December 31, 2024. The decrease was primarily due to a decrease in long-term debt due to the repayment of FHLBNY borrowings of $25.0 million in 2024 and a decrease in total deposits of $17.9 million due to the non-renewal of $16.0 million of brokered CDs in 2024. The decrease in cash and cash equivalents was partially offset by a decrease in net loans of $11.2 million, or 2.0%. Securities available for sale were $56.5 million at December 31, 2024 as compared to $60.4 million at December 31, 2023 primarily due to repayments during 2024 and a decrease in the market value of the securities. Net loans receivable at December 31, 2024 and December 31, 2023 were $544.6 million and $555.8 million, respectively. Total deposits at December 31, 2024 were $573.0 million, a decrease of $17.9 million, or 3.0%, compared to $590.9 million at December 31, 2023. Total borrowings decreased to $10.3 million at December 31, 2024, a decrease of $25.0 million, or 70.9%, as compared to $35.3 million as of December 31, 2023.

    Stockholders’ equity at December 31, 2024 was $89.9 million, a $3.6 million increase, or 4.2%, as compared to $86.3 million at December 31, 2023. The increase in stockholders’ equity was primarily attributed to $4.9 million in net income earned during 2024. 

    About Lake Shore

    Lake Shore Bancorp, Inc. (NASDAQ Global Market: LSBK) is the mid-tier holding company of Lake Shore Savings Bank, a federally chartered, community-oriented financial institution headquartered in Dunkirk, New York. The Bank has ten full-service branch locations in Western New York, including four in Chautauqua County and six in Erie County. The Bank offers a broad range of retail and commercial lending and deposit services. The Company’s common stock is traded on the NASDAQ Global Market as “LSBK”. Additional information about the Company is available at http://www.lakeshoresavings.com.

    Safe-Harbor

    This release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, that are based on current expectations, estimates and projections about the Company’s and the Bank’s industry, and management’s beliefs and assumptions. Words such as anticipates, expects, intends, plans, believes, estimates and variations of such words and expressions are intended to identify forward-looking statements. Such statements reflect management’s current views of future events and operations. These forward-looking statements are based on information currently available to the Company as of the date of this release. It is important to note that these forward-looking statements are not guarantees of future performance and involve and are subject to significant risks, contingencies, and uncertainties, many of which are difficult to predict and are generally beyond our control including, but not limited to, compliance with the Written Agreement with the Federal Reserve Bank of Philadelphia, data loss or other security breaches, including a breach of our operational or security systems, policies or procedures, including cyber-attacks on us or on our third party vendors or service providers, economic conditions, the effect of changes in monetary and fiscal policy, inflation, unanticipated changes in our liquidity position, climate change, increased unemployment, deterioration in the credit quality of the loan portfolio and/or the value of the collateral securing repayment of loans, reduction in the value of investment securities, the cost and ability to attract and retain key employees, regulatory or legal developments, tax policy changes, and our ability to implement and execute our business plan and strategy and expand our operations. These factors should be considered in evaluating forward looking statements and undue reliance should not be placed on such statements, as our financial performance could differ materially due to various risks or uncertainties. We do not undertake to publicly update or revise our forward-looking statements if future changes make it clear that any projected results expressed or implied therein will not be realized.

    Source: Lake Shore Bancorp, Inc.
    Category: Financial

    Investor Relations/Media Contact
    Taylor M. Gilden
    Chief Financial Officer and Treasurer
    Lake Shore Bancorp, Inc.
    31 East Fourth Street
    Dunkirk, New York 14048
    (716) 366-4070 ext. 1065

       
    Selected Financial Condition Data  
       
      December 31,     December 31,  
       2024
         2023
     
        (Unaudited)  
        (Dollars in thousands)  
                   
    Total assets $   685,504     $   725,118  
    Cash and cash equivalents     33,131         53,730  
    Securities available for sale     56,495         60,442  
    Loans receivable, net     544,620         555,828  
    Deposits     572,978         590,924  
    Long-term debt     10,250         35,250  
    Stockholders’ equity     89,868         86,273  
       
    Statements of Income  
       
        Three Months Ended     Years Ended  
        December 31,     December 31,  
        2024       2023       2024       2023  
      (Unaudited)  
      (Dollars in thousands, except per share amounts)  
    Interest income $   8,590     $   8,613     $   34,804     $   33,755  
    Interest expense     3,249         3,055         13,741         9,397  
    Net interest income     5,341         5,558         21,063         24,358  
    (Credit) provision for credit losses     (613 )       (32 )       (1,479 )       (1,043 )
    Net interest income after (credit) provision for credit losses     5,954         5,590         22,542         25,401  
    Total non-interest income     1,068         923         3,304         2,635  
    Total non-interest expense     5,275         5,203         19,980         21,817  
    Income before income taxes     1,747         1,310         5,866         6,219  
    Income tax expense     278         561         935         1,399  
    Net income $   1,469     $   749     $   4,931     $   4,820  
    Basic and diluted earnings per share $   0.26     $   0.13     $   0.88     $   0.82  
                                   
    Selected Financial Ratios                              
    Return on average assets     0.85 %       0.42 %       0.70 %       0.67 %
    Return on average equity     6.52 %       3.60 %       5.62 %       5.78 %
    Average interest-earning assets to average interest-bearing liabilities     129.46 %       127.96 %       127.88 %       128.06 %
    Interest rate spread     2.72 %       2.83 %       2.62 %       3.23 %
    Net interest margin     3.31 %       3.34 %       3.21 %       3.62 %
       
    Average Balance Sheets, Interest, and Rates (Quarterly Comparison)  
       
        For the Quarter Ended     For the Quarter Ended  
        December 31, 2024     December 31, 2023  
        Average     Interest Income/     Yield/     Average     Interest Income/     Yield/  
        Balance     Expense     Rate(2)     Balance     Expense     Rate(2)  
        (Unaudited)  
        (Dollars in thousands)  
    Interest-earning assets:                                            
    Interest-earning deposits & federal funds sold   $   43,366     $   499       4.60 %   $   45,063     $   591       5.25 %
    Securities(1)       61,137         388       2.54 %       60,635         439       2.90 %
    Loans, including fees       540,376         7,703       5.70 %       559,432         7,583       5.42 %
    Total interest-earning assets       644,879         8,590       5.33 %       665,130         8,613       5.18 %
    Other assets       49,207                       47,143                
    Total assets   $   694,086                   $   712,273                
                                                 
    Interest-bearing liabilities                                            
    Demand & NOW accounts   $   64,465     $   15       0.09 %   $   72,182     $   18       0.10 %
    Money market accounts       153,407         912       2.38 %       130,813         823       2.52 %
    Savings accounts       55,451         9       0.06 %       66,115         13       0.08 %
    Time deposits       214,150         2,207       4.12 %       214,203         1,883       3.52 %
    Borrowed funds & other interest-bearing liabilities       10,641         106       3.98 %       36,476         318       3.49 %
    Total interest-bearing liabilities       498,114         3,249       2.61 %       519,789         3,055       2.35 %
    Other non-interest bearing liabilities       105,881                       109,309                
    Stockholders’ equity       90,091                       83,175                
    Total liabilities & stockholders’ equity   $   694,086                   $   712,273                
    Net interest income           $   5,341                   $   5,558        
    Interest rate spread                     2.72 %                     2.83 %
    Net interest margin                     3.31 %                     3.34 %

    (1) The tax equivalent adjustment for bank qualified tax exempt municipal securities, using a federal statutory rate of 21%, results in rates of 2.91% and 3.80% for the three months ended December 31, 2024 and 2023, respectively.
    (2) Annualized.

       
    Average Balance Sheets, Interest, and Rates (Annual Comparison)  
       
        For the Year Ended     For the Year Ended  
        December 31, 2024     December 31, 2023  
        Average     Interest Income/     Yield/     Average     Interest Income/     Yield/  
        Balance     Expense     Rate     Balance     Expense     Rate  
        (Unaudited)  
        (Dollars in thousands)  
    Interest-earning assets:                                            
    Interest-earning deposits & federal funds sold   $   48,639     $   2,460       5.06 %   $   36,948     $   1,805       4.89 %
    Securities(1)       60,347         1,631       2.70 %       67,840         1,941       2.86 %
    Loans, including fees       547,525         30,713       5.61 %       567,319         30,009       5.29 %
    Total interest-earning assets       656,511         34,804       5.30 %       672,107         33,755       5.02 %
    Other assets       49,629                       46,057                
    Total assets   $   706,140                   $   718,164                
                                                 
    Interest-bearing liabilities                                            
    Demand & NOW accounts   $   67,023     $   64       0.10 %   $   76,495     $   75       0.10 %
    Money market accounts       144,926         3,811       2.63 %       132,816         1,914       1.44 %
    Savings accounts       59,095         40       0.07 %       70,600         47       0.07 %
    Time deposits       220,856         9,162       4.15 %       206,218         6,033       2.93 %
    Borrowed funds & other interest-bearing liabilities       21,465         664       3.09 %       38,701         1,328       3.43 %
    Total interest-bearing liabilities       513,365         13,741       2.68 %       524,830         9,397       1.79 %
    Other non-interest bearing liabilities       105,018                       109,907                
    Stockholders’ equity       87,757                       83,427                
    Total liabilities & stockholders’ equity   $   706,140                   $   718,164                
    Net interest income           $   21,063                   $   24,358        
    Interest rate spread                     2.62 %                     3.23 %
    Net interest margin                     3.21 %                     3.62 %

    (1) The tax equivalent adjustment for bank qualified tax exempt municipal securities, using a federal statutory rate of 21%, results in rates of 3.08% and 3.27% for the year ended December 31, 2024 and 2023, respectively.

     
    Selected Quarterly Financial Data
     
        As of or For the Three Months Ended  
        December 31,
    2024
        September 30,
    2024
        June 30,
    2024
        March 31,
    2024
        December 31,
    2023
     
        (Unaudited)  
        (Dollars in thousands, except per share amounts)  
    Selected Financial Condition Data                              
    Total assets   $ 685,504     $ 697,596     $ 711,042     $ 717,582     $ 725,118  
    Cash and cash equivalents     33,131       49,981       60,987       54,953       53,730  
    Securities available for sale     56,495       58,782       57,309       58,682       60,442  
    Loans receivable, net     544,620       539,005       544,337       555,455       555,828  
    Deposits     572,978       587,563       589,395       594,704       590,924  
    Long-term debt     10,250       10,250       23,250       25,250       35,250  
    Stockholders’ equity     89,868       89,877       86,932       86,510       86,273  
                                   
    Condensed Statements of Income                              
    Interest income   $ 8,590     $ 8,851     $ 8,754     $ 8,609     $ 8,613  
    Interest expense     3,249       3,468       3,548       3,476       3,055  
    Net interest income     5,341       5,383       5,206       5,133       5,558  
    (Credit) provision for credit losses     (613 )     (229 )     (285 )     (352 )     (32 )
    Net interest income after (credit) provision for credit losses     5,954       5,612       5,491       5,485       5,590  
    Total non-interest income     1,068       791       738       707       923  
    Total non-interest expense     5,275       4,813       4,897       4,995       5,203  
    Income before income taxes     1,747       1,590       1,332       1,197       1,310  
    Income tax expense     278       258       216       183       561  
    Net income   $ 1,469     $ 1,332     $ 1,116     $ 1,014     $ 749  
    Basic and diluted earnings per share   $ 0.26     $ 0.24     $ 0.19     $ 0.17     $ 0.13  
                                   
    Selected Financial Ratios                              
    Return on average assets     0.85 %     0.76 %     0.63 %     0.57 %     0.42 %
    Return on average equity     6.52 %     6.03 %     5.19 %     4.69 %     3.60 %
    Average interest-earning assets to average interest-bearing liabilities     129.46 %     128.81 %     127.00 %     126.33 %     127.96 %
    Interest rate spread     2.72 %     2.67 %     2.56 %     2.55 %     2.83 %
    Net interest margin     3.31 %     3.28 %     3.14 %     3.10 %     3.34 %
    Efficiency ratio     82.30 %     77.96 %     82.39 %     85.53 %     80.24 %
                                   
    Asset Quality Ratios:                              
    Non-performing loans as a percent of total net loans     0.80 %     0.74 %     0.73 %     0.71 %     0.60 %
    Non-performing assets as a percent of total assets     0.55 %     0.57 %     0.56 %     0.55 %     0.47 %
    Allowance for credit losses as a percent of net loans     0.93 %     1.01 %     1.08 %     1.12 %     1.16 %
    Allowance for credit losses as a percent of non-performing loans     134.91 %     137.03 %     148.20 %     159.19 %     193.09 %
                                   
    Share Information:                              
    Common stock, number of shares outstanding     5,735,226       5,737,036       5,737,036       5,684,784       5,686,288  
    Treasury stock, number of shares held     1,101,288       1,099,478       1,099,478       1,151,730       1,150,226  
    Book value per share   $ 15.67     $ 15.67     $ 15.15     $ 15.22     $ 15.17  
    Tier 1 leverage ratio     13.83 %     13.37 %     13.02 %     12.87 %     12.68 %
    Total risk-based capital ratio     18.79 %     18.85 %     18.64 %     18.13 %     17.77 %

    The MIL Network –

    January 25, 2025
  • 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 –

    January 25, 2025
  • 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 –

    January 25, 2025
  • MIL-OSI USA: Warner Joins Colleagues in Introducing Bipartisan Legislation to Support First Responders with Service-Related Cancers

    US Senate News:

    Source: United States Senator for Commonwealth of Virginia Mark R Warner

    WASHINGTON – Today, U.S. Sen. Mark R. Warner (D-VA) joined Sens. Amy Klobuchar (D-MN), Kevin Cramer (R-ND), and 26 of their Senate colleagues in introducing legislation to expand access to federal support for the families of firefighters and other first responders who pass away or become permanently disabled from service-related cancers. Currently, firefighters are only eligible for support under the Public Safety Officer Benefits (PSOB) program for physical injuries sustained in the line-of-duty, or for deaths from duty-related heart attacks, strokes, mental health conditions such as post-traumatic stress disorder, and 9/11 related illnesses.

    The Honoring our Fallen Heroes Act would expand access to federal support for the families of firefighters and first responders who pass away from cancer caused by carcinogenic exposure during their service. The bill would also extend disability benefits in cases where these first responders become permanently and totally disabled due to cancer.

    “Our first responders put their lives on the line day in and day out to keep our communities safe, and in the face of this work, are often exposed to harmful carcinogens that have led to long-term and devastating diagnoses,” Sen. Warner said. “It is wholly unacceptable that firefighters who have gotten sick due to the job do not receive the same benefits as all those who die in the line of duty. I’m proud to introduce this legislation to ensure that these heroes receive the benefits they deserve.”

    The PSOB program provides benefits to the survivors of fire fighters, law enforcement officers, and other first responders who are killed as the result of injuries sustained in the line of duty. The program also provides disability benefits where first responders become permanently or totally disabled. The Public Safety Officers’ Educational Assistance (PSOEA) program, a component of the PSOB program, provides higher-education assistance to the children and spouses of public safety officers killed or permanently disabled in the line of duty. The PSOB and PSOEA programs are administered by the Department of Justice’s Bureau of Justice Assistance (BJA). The Honoring Our Fallen Heroes Act would ensure that firefighters and other first responders across the country are eligible to receive similar benefits under the federal PSOB program.

    Joining Sens. Warner, Klobuchar, and Cramer in introducing this legislation are Sens. Jim Banks (R-IN), John Barrasso (R-WY), Marsha Blackburn (R-TN), Richard Blumenthal (D-CT), Chris Coons (D-DE), John Cornyn (R-TX), Ted Cruz (R-TX), Tammy Duckworth (D-IL), Dick Durbin (D-IL), John Fetterman (D-PA), Deb Fischer (R-NE), Lindsey Graham (R-SC), Mazie Hirono (D-HI), Jim Justice (R-WV), Mark Kelly (D-AZ), Ed Markey (D-MA), Alex Padilla (D-CA), Mike Rounds (R-SD), Adam Schiff (D-CA), Jeanne Shaheen (D-NH), Tim Sheehy (R-MT), Tina Smith (D-MN), Elizabeth Warren (D-MA), Peter Welch (D-VT), Sheldon Whitehouse (D-RI), and Ron Wyden (D-OR). 

    The legislation is endorsed by the International Association of Fire Fighters (IAFF), as well as the Congressional Fire Services Institute (CFSI); Federal Law Enforcement Officers Association (FLEOA); Fraternal Order of Police (FOP); International Association of Fire Chiefs (IAFC); Major County Sheriffs of America (MCSA); Metropolitan Fire Chiefs Association (Metro Chiefs); National Association of Police Organizations (NAPO); National Fallen Firefighters Foundation (NFFF); National Fire Protection Association (NFPA); National Narcotics Officers’ Associations’ Coalition (NNOAC); National Volunteer Fire Council (NVFC); and Sergeants Benevolent Association of the NYPD.

    Text of the legislation is available here.

     

    MIL OSI USA News –

    January 25, 2025
  • MIL-OSI USA: Cassidy, Daines, Thune, Colleagues Reintroduce Bill to Give Small Business Permanent Tax Break

    US Senate News:

    Source: United States Senator for Louisiana Bill Cassidy

    WASHINGTON – U.S. Senators Bill Cassidy, M.D. (R-LA), Steve Daines (R-MT), John Thune (R-SD), and 32 Republican colleagues reintroduced the Main Street Tax Certainty Act to make the 20 percent pass-through business tax deduction permanent. Should these tax cuts expire, small businesses will face an immediate and massive tax hike.
    “The small businesses that drive our communities should have certainty about their taxes,” said Dr. Cassidy. “Passing this law makes sure they do.”
    “As the son of a contractor, I’ve seen firsthand the hard work it takes to keep a small business flourishing- especially as Americans are still grappling with the effects of Joe Biden’s inflation. It’s absolutely crucial that we pass this legislation to prevent a 20 percent tax increase for hardworking Montanans and I’ll keep fighting for ways to support Montana small businesses, which provide the majority of jobs in our state,” said Senator Daines.
    “Small businesses are the economic engine that drive growth and jobs in South Dakota and across our country. This legislation is critical to permanently extending a key provision from the Tax Cuts and Jobs Act and ensuring our small businesses and farms and ranches are not hit with a crippling tax hike at the end of 2025,” said Senator Thune.
    The Main Street Tax Certainty Act is supported by the National Association of Manufactures and NFIB.
    Cassidy, Daines, and Thune were joined by U.S. Senators John Barrasso (R-WY), Shelley Moore Capito (R-WV), James Lankford (R-OK), Joni Ernst (R-IA), Tom Cotton (R-AR), Tim Scott (R-SC), Chuck Grassley (R-IA), Kevin Cramer (R-ND), Jerry Moran (R-KS), Marsha Blackburn (R-TN), Mike Rounds (R-SD), Pete Ricketts (R-NE), Katie Britt (R-AL), Jim Risch (R-ID), Eric Schmitt (R-MO), Roger Wicker (R-MS), Cynthia Lummis (R-WY), Cindy Hyde-Smith (R-MS), Tommy Tuberville (R-AL), Ted Cruz (R-TX), John Hoeven (R-ND), Thom Tillis (R-NC), Roger Marshall (R-KS), Jim Justice (R-WV), Tim Sheehy (R-MT), Deb Fischer (R-NE), Ted Budd (R-NC), Rick Scott (R-FL), Bill Hagerty (R-TN), Todd Young (R-IN), John Kennedy (R-LA), and Jim Banks (R-IN) in introducing the legislation.
    Background:
    The 20 percent small business deduction, section 199A, was created as a part of President Trump’s 2017 tax cuts to level the playing field between small businesses and large corporations. Without Congressional action, 9 out of 10 small businesses will be hit with a massive tax hike when this deduction is set to expire at the end of 2025.
    Recently, a new study from Ernst and Young (EY) highlighted the economic activity supported by this small and family-owned business tax deduction, including 2.6 million jobs and $325 billion of the GDP.

    MIL OSI USA News –

    January 25, 2025
  • 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 –

    January 25, 2025
  • 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 –

    January 25, 2025
  • MIL-OSI USA: CBS News: Big banks hiked interest rates on borrowers but not for savers, senators say

    US Senate News:

    Source: United States Senator for Massachusetts – Elizabeth Warren

    January 23, 2025

    As interest rates climbed, major banks charged borrowers more for mortgages and auto loans, yet never increased payouts to savers, despite telling lawmakers they would do so, say two U.S. senators in letters to seven CEOs, shared exclusively with CBS News.

    In March 2022, the Federal Reserve started raising the federal funds rate, with banks following suit by hiking rates for mortgages, auto loans and credit cards. But those increases were not matched with high interest rate payouts on savings accounts at banks including Bank of America, Citibank, JPMorgan Chase, PNC Bank, Truist, U.S. Bank and Wells Fargo, according to the lawmakers.

    “This tactic — charging borrowers more, paying savers a little, and pocketing interest paid by the Federal Reserve — has enabled U.S. banks to rake in record profits of $1 trillion and JPMorgan alone to make record profits of $49.6 billion in 2023,” according to Sens. Elizabeth Warren (D-Massachusetts) and Jack Reed (D-Rhode Island), the authors of the letters. Meanwhile, “savers have struggled to keep up with inflation,” they added.

    JPMorgan CEO Jamie Dimon and his counterparts at half a dozen other financial institutions testified before the Senate Banking Committee in September of 2022 that their respective banks expected to increase rates for savers, albeit at a slower pace. While interest rates on the accounts JPMorgan keeps at the Fed rose from 3.15% to 4.65%, JPMorgan’s customers continue to earn .01% on their savings, the lawmakers stated. 

    …

    Read the full article here.

    By:  Kate Gibson
    Source: CBS News



    MIL OSI USA News –

    January 25, 2025
  • MIL-OSI: $HAREHOLDER ALERT: The M&A Class Action Firm Urges Shareholders of SASR, ROIC, ATSG, CTV to Act Now

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, Jan. 24, 2025 (GLOBE NEWSWIRE) — Monteverde & Associates PC (the “M&A Class Action Firm”), has recovered millions of dollars for shareholders and is recognized as a Top 50 Firm by ISS Securities Class Action Services Report. We are headquartered at the Empire State Building in New York City and are investigating:

    • Sandy Spring Bancorp, Inc. (NASDAQ: SASR), relating to a proposed merger with Atlantic Union Bankshares Corp. Under the terms of the agreement, all Sandy Spring shares will automatically be converted into the right to receive 0.900 Atlantic Union shares, and cash in lieu of fractional shares.

    ACT NOW. The Shareholder Vote is scheduled for February 5, 2025.

    Click here for more information https://monteverdelaw.com/case/sandy-spring-bancorp-inc/. It is free and there is no cost or obligation to you.

    • Retail Opportunity Investments Corp. (Nasdaq: ROIC), relating to its proposed merger with Blackstone. Under the terms of the agreement, Blackstone Real Estate Partners X will acquire all outstanding common shares of ROIC for $17.50 per share in an all-cash transaction.

    ACT NOW. The Shareholder Vote is scheduled for February 7, 2025.

    Click here for more information https://monteverdelaw.com/case/retail-opportunity-investments-roic/. It is free and there is no cost or obligation to you.

    • Air Transport Services Group, Inc. (Nasdaq: ATSG), relating to a proposed merger with Stonepeak Nile Parent LLC. Under the terms of the agreement, Air Transport Services Group shareholders will receive $22.50 per share of Air Transport Services Group Common Stock they own.

    ACT NOW. The Shareholder Vote is scheduled for February 10, 2025.

    Click here for more information https://monteverdelaw.com/case/air-transport-services-group-inc-atsg/. It is free and there is no cost or obligation to you.

    • Innovid Corp. (NYSE: CTV), relating to the proposed merger with Mediaocean LLC. Under the terms of the agreement, Mediaocean will acquire Innovid at a price of $3.15 per share of common stock.

    ACT NOW. The Shareholder Vote is scheduled for February 11, 2025.

    Click here for more https://monteverdelaw.com/case/innovid-corp-ctv/. It is free and there is no cost or obligation to you.

    NOT ALL LAW FIRMS ARE THE SAME. Before you hire a law firm, you should talk to a lawyer and ask:

    1. Do you file class actions and go to Court?
    2. When was the last time you recovered money for shareholders?
    3. What cases did you recover money in and how much?

    About Monteverde & Associates PC

    Our firm litigates and has recovered money for shareholders…and we do it from our offices in the Empire State Building. We are a national class action securities firm with a successful track record in trial and appellate courts, including the U.S. Supreme Court. 

    No company, director or officer is above the law. If you own common stock in any of the above listed companies and have concerns or wish to obtain additional information free of charge, please visit our website or contact Juan Monteverde, Esq. either via e-mail at jmonteverde@monteverdelaw.com or by telephone at (212) 971-1341.

    Contact:
    Juan Monteverde, Esq.
    MONTEVERDE & ASSOCIATES PC
    The Empire State Building
    350 Fifth Ave. Suite 4740
    New York, NY 10118
    United States of America
    jmonteverde@monteverdelaw.com
    Tel: (212) 971-1341

    Attorney Advertising. (C) 2024 Monteverde & Associates PC. The law firm responsible for this advertisement is Monteverde & Associates PC (http://www.monteverdelaw.com). Prior results do not guarantee a similar outcome with respect to any future matter.

    The MIL Network –

    January 25, 2025
  • MIL-OSI: $HAREHOLDER ALERT: The M&A Class Action Firm Urges Shareholders of SASR, ROIC, ATSG, CTV to Act Now

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, Jan. 24, 2025 (GLOBE NEWSWIRE) — Monteverde & Associates PC (the “M&A Class Action Firm”), has recovered millions of dollars for shareholders and is recognized as a Top 50 Firm by ISS Securities Class Action Services Report. We are headquartered at the Empire State Building in New York City and are investigating:

    • Sandy Spring Bancorp, Inc. (NASDAQ: SASR), relating to a proposed merger with Atlantic Union Bankshares Corp. Under the terms of the agreement, all Sandy Spring shares will automatically be converted into the right to receive 0.900 Atlantic Union shares, and cash in lieu of fractional shares.

    ACT NOW. The Shareholder Vote is scheduled for February 5, 2025.

    Click here for more information https://monteverdelaw.com/case/sandy-spring-bancorp-inc/. It is free and there is no cost or obligation to you.

    • Retail Opportunity Investments Corp. (Nasdaq: ROIC), relating to its proposed merger with Blackstone. Under the terms of the agreement, Blackstone Real Estate Partners X will acquire all outstanding common shares of ROIC for $17.50 per share in an all-cash transaction.

    ACT NOW. The Shareholder Vote is scheduled for February 7, 2025.

    Click here for more information https://monteverdelaw.com/case/retail-opportunity-investments-roic/. It is free and there is no cost or obligation to you.

    • Air Transport Services Group, Inc. (Nasdaq: ATSG), relating to a proposed merger with Stonepeak Nile Parent LLC. Under the terms of the agreement, Air Transport Services Group shareholders will receive $22.50 per share of Air Transport Services Group Common Stock they own.

    ACT NOW. The Shareholder Vote is scheduled for February 10, 2025.

    Click here for more information https://monteverdelaw.com/case/air-transport-services-group-inc-atsg/. It is free and there is no cost or obligation to you.

    • Innovid Corp. (NYSE: CTV), relating to the proposed merger with Mediaocean LLC. Under the terms of the agreement, Mediaocean will acquire Innovid at a price of $3.15 per share of common stock.

    ACT NOW. The Shareholder Vote is scheduled for February 11, 2025.

    Click here for more https://monteverdelaw.com/case/innovid-corp-ctv/. It is free and there is no cost or obligation to you.

    NOT ALL LAW FIRMS ARE THE SAME. Before you hire a law firm, you should talk to a lawyer and ask:

    1. Do you file class actions and go to Court?
    2. When was the last time you recovered money for shareholders?
    3. What cases did you recover money in and how much?

    About Monteverde & Associates PC

    Our firm litigates and has recovered money for shareholders…and we do it from our offices in the Empire State Building. We are a national class action securities firm with a successful track record in trial and appellate courts, including the U.S. Supreme Court. 

    No company, director or officer is above the law. If you own common stock in any of the above listed companies and have concerns or wish to obtain additional information free of charge, please visit our website or contact Juan Monteverde, Esq. either via e-mail at jmonteverde@monteverdelaw.com or by telephone at (212) 971-1341.

    Contact:
    Juan Monteverde, Esq.
    MONTEVERDE & ASSOCIATES PC
    The Empire State Building
    350 Fifth Ave. Suite 4740
    New York, NY 10118
    United States of America
    jmonteverde@monteverdelaw.com
    Tel: (212) 971-1341

    Attorney Advertising. (C) 2024 Monteverde & Associates PC. The law firm responsible for this advertisement is Monteverde & Associates PC (http://www.monteverdelaw.com). Prior results do not guarantee a similar outcome with respect to any future matter.

    The MIL Network –

    January 25, 2025
  • MIL-OSI USA: Senators Introduce Legislation to Support First Responders Diagnosed with Occupationally-Connected Cancers

    US Senate News:

    Source: United States Senator Kevin Cramer (R-ND)
    WASHINGTON, D.C. – Congress established the Department of Justice’s Public Safety Officers’ Benefits (PSOB) program in 1976 to provide monetary benefits to law enforcement officers, firefighters, and other first responders who become permanently disabled or pass away due to injuries sustained in the line of duty. While the program recognizes those who made the ultimate sacrifice due to 9/11-related cancers, it does not cover first responders who lose their lives due to other service-related cancers. 
    U.S. Senators Kevin Cramer (R-ND) and Amy Klobuchar (D-MN) introduced legislation to ensure all first responders who die or become disabled due to service-related cancers are covered under the PSOB program. 
    The Honoring Our Fallen Heroes Act is built on data indicating elevated cancer risks faced by first responders. A 2011 study by the State University of Buffalo and the National Institute for Occupational Safety and Health revealed significantly higher rates of brain cancer and Hodgkin’s lymphoma among law enforcement officers as compared to the general population. The bill aims to recognize these occupational risks as inherent to service, thereby categorizing cancer-related fatalities as line-of-duty deaths under the PSOB program.
    “Our first responders epitomize courage and selfless sacrifice, confronting both the immediate perils of their duty and lingering health risks associated with their service,” said Cramer. “The exposure to dangerous carcinogens happens on our behalf. When these heroes make the ultimate sacrifice, their families should not bear these burdens alone.”  
    “As we are seeing in California and throughout the country, our firefighters put their lives on the line every day to keep us safe, often exposing themselves to carcinogens that can have lethal long-term effects. It’s unacceptable that firefighters who succumb to cancer from work-related exposure or become permanently and totally disabled don’t receive the same treatment as others who die in the line of duty,” said Klobuchar. “That’s why I’m working with Senator Cramer to ensure that firefighters get the support they deserve. Our bipartisan legislation will honor the memory and sacrifice of St. Paul Fire Department Captain Mike Paidar and so many others who risk their lives in service of their communities.”
    “As Fire Chief of the Fargo Fire Department, I wholeheartedly support the Honoring Our Fallen Heroes Act, reintroduced by Senators Kevin Cramer and Amy Klobuchar,” said Fargo Fire Chief Steven Dirksen. “This crucial legislation extends benefits for service-related cancers to first responders nationwide, recognizing the risks faced by those who dedicate their lives to protecting others.”
    “Firefighters face danger every time they leave the fire station and face a significantly greater risk of being diagnosed with this devastating illness,” said Bismarck Rural Fire Chief Dustin Theurer. “This key legislation is crucial to support the men and women in the fire service and their families.”  
    The Honoring Our Fallen Heroes Act was reported unanimously out of the Senate Judiciary Committee last Congress.
    This legislation has garnered the endorsement of leading public safety organizations, including the International Association of Fire Fighters, Fraternal Order of Police, National Fallen Firefighters Foundation, Congressional Fire Services Institute, International Association of Fire Chiefs, National Volunteer Fire Council, National Association of Police Organizations, Major County Sheriffs of America, National Narcotics Officers’ Associations’ Coalition, National Fire Protection Association, and Federal Law Enforcement Officers Association.
    Additional cosponsors include U.S. Senators Jim Banks (R-IN), John Barrasso (R-WY), Marsha Blackburn (R-TN), Richard Blumenthal (D-CT), Chris Coons (D-DE), John Cornyn (R-TX), Ted Cruz (R-TX), Tammy Duckworth (D-IL), Dick Durbin (D-IL), John Fetterman (D-PA), Deb Fischer (R-NE), Lindsey Graham (R-SC), Mazie Hirono (D-HI), John Hoeven (R-ND), Jim Justice (R-WV), Mark Kelly (D-AZ), Ed Markey (D-MA), Alex Padilla (D-CA), Mike Rounds (R-SD), Adam Schiff (D-CA), Jeanne Shaheen (D-NH), Tim Sheehy (R-MT), Tina Smith (D-MN), Mark Warner (D-VA), Elizabeth Warren (D-MA), Peter Welch (D-VT), and Sheldon Whitehouse (D-RI).
    Click here for bill text. 

    MIL OSI USA News –

    January 25, 2025
  • MIL-OSI Asia-Pac: IWAI sets up new Regional Office at Varanasi

    Source: Government of India (2)

    IWAI sets up new Regional Office at Varanasi

    Aims to streamline IWT activities in Uttar Pradesh

    Posted On: 24 JAN 2025 1:58PM by PIB Delhi

    For effective implementation of Inland Water Transport (IWT) activities in National Waterway-1 (NW-1), River Ganga, the Inland Waterways Authority of India (IWAI) under the Union Ministry of Ports, Shipping and Waterways has upgraded its existing sub-office at Varanasi to a full-fledged Regional Office on January 23, 2025. The decision is aimed at streamlining IWAI projects and related works in the state of Uttar Pradesh.

    IWAI, presently has five regional offices in Guwahati (Assam), Patna (Bihar), Kochi (Kerala), Bhubaneswar (Odisha) and Kolkata (West Bengal). It will now have its sixth regional office in Varanasi, Uttar Pradesh.

    The Varanasi regional office with its sub-office at Prayagraj will oversee works in 487-kilometre stretch from Majhua to Varanasi MMT (Multi-Modal Terminal) and further up to Prayagraj, apart from other NWs in Uttar Pradesh.

    Implementation of the World-Bank supported Jal Marg Vikas Project (JMVP) will be one of its key priorities. JMVP is aimed at the capacity augmentation of River Ganga, i.e., NW-1 through various river conservancy works like bandalling and maintenance dredging in addition to already constructed MMT at Varanasi to promote cruise tourism and smooth cargo movement along the waterway. Three Multi-Modal Terminals – one each at Varanasi, Sahibganj and Haldia along with an Inter-Modal Terminal at Kalughat and a new navigational lock at Farakka in West Bengal have been built under JMVP to facilitate easy navigation along River Ganga. Besides, 60 community jetties are being built along NW-1 in four states of Uttar Pradesh, Bihar, Jharkhand and West Bengal – to facilitate local commuters, small and marginal farmers, artisans and fishermen communities. With its new Regional Office in place, all these activities will be monitored and executed more efficiently.

    There are about 30 rivers in Uttar Pradesh, of which ten have been declared as National Waterways. The Varanasi Regional Office of IWAI shall look after development works not only on River Ganga but its various tributaries and other national waterways in Uttar Pradesh. These include rivers like Betwa, Chambal, Gomti, Tons, Varuna and parts of Gandak, Ghaghra, Karamnasa and Yamuna rivers.

    IWAI’s Varanasi Regional Office will also be coordinating with the State IWT Authority set up for development of waterways in Uttar Pradesh.  

    Under the dynamic leadership of Prime Minister Shri Narendra Modi and the able guidance of Minister of Ports, Shipping and Waterways Shri Sarbananda Sonowal, IWAI has been making several infrastructural interventions to develop waterways as a robust engine of growth. With its concerted efforts, IWAI is expanding its footprint throughout the country – from Arunachal Pradesh in the East to Gujarat in the West and Jammu and Kashmir in the North to Kerala in the South. Other than NW-1, the Authority is presently working towards capacity augmentation of NW-2, NW-3 and NW-16, in the country – by means of developing IWT terminals, fairways through end-to-end dredging contracts, navigational aids like night navigation facility, navigational locks among others.

    *****

    G.D.Hallikeri/Henry

    (Release ID: 2095758) Visitor Counter : 76

    MIL OSI Asia Pacific News –

    January 25, 2025
  • MIL-OSI Europe: France: EIB supports investment by Trifyl to recover value from household waste

    Source: European Investment Bank

    Ambroise Fayolle, Vice-President of the European Investment Bank (EIB), made a trip to Labessière-Candeil to visit the headquarters of Trifyl, the joint association for waste recycling for the department of Tarn in southern France. He toured Trifyl’s facility for waste sorting and value recovery. Fayolle, the EIB Vice-President responsible for climate and the environment, was received by Trifyl President Daniel Vialelle, Member of the European Parliament Claire Fita, and many other elected representatives in attendance.

    MIL OSI Europe News –

    January 25, 2025
  • MIL-OSI Europe: Text adopted – Need for actions to address the continued oppression and fake elections in Belarus – P10_TA(2025)0002 – Wednesday, 22 January 2025 – Strasbourg

    Source: European Parliament

    The European Parliament,

    –  having regard to its previous resolutions on Belarus,

    –  having regard to the Council conclusions on Belarus of 12 October 2020 and 19 February 2024 and to the European Council conclusions on Belarus of 21 and 22 October 2021,

    –  having regard to the statements by the High Representative of the Union for Foreign Affairs and Security Policy of 1 August 2024 on the release of a number of political prisoners, and of 26 February 2024 on the parliamentary and local elections, and to the statement by the High Representative on behalf of the EU of 8 August 2023 on the third anniversary of the fraudulent presidential elections,

    –  having regard to the Universal Declaration of Human Rights, the UN Charter, the International Covenant on Civil and Political Rights and other international human rights instruments to which Belarus is a party,

    –  having regard to the report of the UN Office of the High Commissioner for Human Rights (OHCHR) of 25 March 2024 on the situation of human rights in Belarus in the run-up to the 2020 presidential election and in its aftermath,

    –  having regard to the resolution of the General Conference of the International Labour Organization (ILO) of 12 June 2023 concerning the measures recommended by the Governing Body under article 33 of the ILO Constitution on the subject of Belarus,

    –  having regard to Rule 136(2) and (4) of its Rules of Procedure,

    A.  whereas the 30-year authoritarian rule of Aliaksandr Lukashenka in Belarus has been characterised by systematic repression of political opponents and dissent, including the enforced disappearance of Lukashenka’s critics; whereas since the fraudulent presidential election of August 2020, the illegitimate Lukashenka regime, with Russian support, has systematically repressed political activists, civil society, human rights defenders, lawyers, journalists, artists, religious leaders, trade unionists and other groups in Belarus and abroad, arbitrarily detaining tens of thousands of people;

    B.  whereas following the fraudulent 2020 presidential election and the subsequent brutal crackdown, the EU and many of its democratic partners did not recognise the results of the elections or Aliaksandr Lukashenka as legitimate leader and President of Belarus;

    C.  whereas according to the Human Rights Centre ‘Viasna’, over 1 250 political prisoners remain detained in Belarus in conditions that put their lives at risk, and many of these prisoners are in fragile health; whereas several political prisoners have died in custody, four of them in 2024 alone; whereas political prisoners face torture, denial of medical care, restricted access to visits from lawyers and family members, and solitary confinement; whereas since the summer of 2020, 3 697 people have been recognised as political prisoners; whereas in 2024 alone, over 8 800 cases of politically motivated persecution were documented, including arrests, detentions, dismissals and other forms of repression targeting political prisoners, their families and lawyers, activists, journalists, priests, doctors, returning Belarusians and others;

    D.  whereas multiple international organisations, including the OHCHR, have documented systematic human rights violations in Belarus, including torture, arbitrary detentions, imprisonment or other forms of severe deprivation of physical liberty, enforced disappearances, persecution on political grounds and suppression of freedoms, which amount to crimes against humanity under international law; whereas in September 2024, Lithuania referred the situation in Belarus to the Office of the Prosecutor of the International Criminal Court (ICC) to investigate certain crimes against humanity committed by the Lukashenka regime;

    E.  whereas the illegitimate Belarusian regime plans to hold sham presidential elections on 26 January 2025, with Lukashenka seeking a seventh term; whereas Belarus’ Central Election Commission has registered Lukashenka and four other pro forma ‘candidates’; whereas the current presidential election campaign is being conducted in an environment of severe repression which fails to meet even the minimum standards for democratic elections; whereas democratic candidates are barred from participating, media freedom is heavily restricted, voters face intimidation, and the absence of independent election observation further undermines the legitimacy of the electoral process;

    F.  whereas both the parliamentary and local elections held on 25 February 2024 and the upcoming sham presidential election scheduled for 26 January 2025 exemplify the regime’s disregard for democratic norms as elections in Belarus are tightly controlled, with all candidates pre-approved by authorities, democratic parties eliminated and voters offered no real choice; whereas the election campaign has been marked by the detention of individuals involved in the 2020 presidential campaigns of other candidates and a clear readiness to harshly suppress dissent;

    G.  whereas according to the Human Rights Centre ‘Viasna’, at least 360 people were detained between July and September 2024, and many democratic leaders, including Nobel Peace Prize Laureate Ales Bialiatski, Maria Kalesnikava, Viktar Babaryka, Pavel Seviarynets, Siarhei Tsikhanouski, Mikalai Statkevich and others remain imprisoned; whereas at least eight political prisoners are currently detained incommunicado;

    H.  whereas the Lukashenka regime has stepped up pressure on the staff of Western diplomatic missions accredited in Belarus as well as other foreigners; whereas Mikalai Khila, a local member of staff of the EU delegation to Belarus, was apprehended by the Belarusian KGB in front of the EU delegation office, held in pre-trial detention from April 2024 and sentenced, in December 2024, to four years of imprisonment; whereas he has been listed as a political prisoner by the Human Rights Centre ‘Viasna’; whereas two Japanese citizens were recently detained on trumped-up charges of ‘agent activities’;

    I.  whereas Lukashenka pardoned over 200 political prisoners in 2024 in an attempt to lift some Western sanctions; whereas political arrests continue despite these pardons, with at least 1 721 individuals convicted on political charges in 2024 alone;

    J.  whereas the Federation of Trade Unions of Belarus has long been embedded in the Lukashenka regime’s government structure and is thought to play a significant role in organising the falsification of election results;

    K.  whereas the Belarusian regime employs anti-extremism laws to obstruct media outlets, whereby most independent media have been labelled as ‘extremist’, with at least 45 media representatives detained, around 400 in exile and others facing harassment and mistreatment; whereas independent media, such as Belsat TV, Charter 97, Nexta, Radio Racyja, Radio Svaboda, Nasha Niva and others, play a crucial role in providing essential information and serving as a platform for democratic voices; whereas the Belarusian authorities employ surveillance, online censorship and disinformation, escalating digital authoritarianism and undermining the prospects for free and fair elections in 2025; whereas Belarusian propagandists regularly spread disinformation about EU Member States and their officials and suppress access to information;

    L.  whereas more than 500 000 Belarusians have been forced to flee the country since 2020, with some continuing to face persecution from the Lukashenka regime, including through trials in absentia, threats from the security forces and pressure on relatives, confiscation of property and other restrictions;

    M.  whereas under Lukashenka, more than 250 people sentenced to death have been executed; whereas Belarus remains the only country in Europe and Central Asia to retain the death penalty, with its scope expanded in 2022 to include vaguely defined acts of terrorism and in 2023 to include ‘treason against the state’;

    N.  whereas repressive measures in Belarus have increasingly targeted religious freedom, with the recent adoption of the law on freedom of conscience and religious organisations posing a serious threat to the rights and existence of religious communities; whereas this crackdown has also targeted religious leaders, as seen in the recent sentencing of Catholic priest Reverend Henrykh Akalatovich to 11 years in prison on fabricated high treason charges, the first such case against Catholic clergy in Belarus;

    O.  whereas the Lukashenka regime has proven to be instrumental to Putin by providing Russian forces with access to Belarusian territory from which to mount the full-scale invasion of Ukraine; whereas the Lukashenka regime commits crimes against Ukrainian children, including hosting re-education camps for political indoctrination and militarisation; whereas it assists attempts by Russia and others to destabilise the EU and undermine European aspirations among the EU’s neighbours, notably by weaponising migration at the EU’s borders and legitimising Bidzina Ivanishvili’s autocratic regime in Georgia;

    P.  whereas the EU has imposed targeted sanctions on Belarus in response to the fraudulent 2020 elections, systematic human rights violations, and Belarus’s complicity in Russia’s war of aggression against Ukraine, including trade restrictions and sanctions on 287 individuals, among them Lukashenka, and 39 entities;

    Q.  whereas the Lukashenka regime, with Russian assistance, circumvents some of these sanctions through preferential market access and the use of Russian infrastructure; whereas reports indicate that BelAZ, a sanctioned Belarusian producer of trucks, circumvents sanctions by disassembling trucks in Belarus and shipping the parts to the EU for reassembly under different brand names;

    1.  Reiterates its non-recognition of the election of Aliaksandr Lukashenka to the post of President of Belarus; considers the current regime in Belarus to be illegitimate, illegal and criminal; reaffirms its unwavering support for the Belarusian people in their pursuit of democracy, freedom and human rights;

    2.  Denounces the lack of freedom, fairness and transparency ahead of the so called presidential elections in Belarus and calls for the EU, its Member States and the international community to categorically reject the upcoming elections in Belarus and the run-up campaign as a sham, as they do not meet minimum international standards for democratic elections; calls for the EU, its Member States and the international community to continue not to recognise the legitimacy of Aliaksandr Lukashenka as president after 26 January 2025, and calls for free and fair elections to be held in Belarus;

    3.  Deplores the ongoing grave violations of human rights and democratic principles in Belarus, which have further intensified in the run-up to the so-called presidential elections; condemns the systematic repression in Belarus, which includes arbitrary arrests, torture, harassment, ill-treatment of detainees, persistent impunity and a structural lack of respect for due process and fair trials; reiterates its demand for the immediate and unconditional release of all individuals detained in Belarus for their political views, alongside compensation and the restoration of their rights; demands an end to the repression of political opponents and the Belarusian public;

    4.  Reiterates its calls on the Belarusian authorities to respect detainees’ rights, provide medical care and grant access to lawyers, families, and international organisations;

    5.  Expresses grave concern about the situation of political prisoners, including Maria Kalesnikava, Siarhei Tsikhanouski, Ales Bialiatski, Mikalai Statkevich, Mikalai Khila, Valiantsin Stefanovich, Maksim Znak, Viktar Babaryka, Ihar Losik, Andrzej Poczobut, Palina Sharenda-Panasiuk, Uladzimir Matskevich, Marfa Rabkova, Uladzimir Labkovich, Aliaksandr Yarashuk, Volha Brytsikava, Aliaksandr Kapshul, Yana Pinchuk, Mikalai Bankou, Andrei Navitski, Henrykh Akalatovich, Uladzimir Kniha Dmitry Kuchuk, Pavel Seviarynets and others, many of whom are facing severe health issues without access to proper medical care, and are enduring isolation, ill treatment and torture;

    6.  Considers the arrest and sentencing on politically motivated charges of Mikalai Khila, a local staff member of the EU Delegation in Minsk, a breach of diplomatic practices towards the EU; calls for the EU and its Member States to swiftly develop a credible response;

    7.  Commends the resilience of Belarusian civil society and democratic forces; reiterates its solidarity with the people of Belarus and its support for their legitimate aspirations for a democratic and European future; expresses solidarity with Belarusian democratic forces and civil society organisations in their efforts to establish a sovereign, democratic and prosperous Belarus; remains committed to working with democratic forces, civil society and independent media to the benefit of the people of Belarus;

    8.  Calls for the EU and its Member States to continue to investigate human rights abuses in Belarus and to support accountability measures, including through universal jurisdiction; calls for the EU and its Member States to investigate, on the basis of universal jurisdiction, the crimes against humanity committed by the Lukashenka regime in Belarus and on EU territory and, following Lithuania’s example, to refer the situation in Belarus to the International Criminal Court for investigation to the extent possible, and to consider the establishment of an international tribunal to prosecute the crimes of the Lukashenka regime; calls on the Member States to allow Belarusian lawyers expelled by the regime to practise on EU territory in order to provide legal assistance to persecuted Belarusians;

    9.  Highlights the invaluable work carried out by human rights defenders and civil society representatives in Belarus in monitoring, documenting and reporting the grave human rights violations and crimes against humanity that are taking place in the country, in order to ensure subsequent accountability and justice for the victims;

    10.  Reiterates its call for the EU and its Member States to support political prisoners and their families, including by demanding proof of political prisoners’ whereabouts, requesting their release, simplifying the procedures for those fleeing Belarus to obtain visas and identity documents, and providing rehabilitation and other types of support; calls on the EU Delegation and the Member State embassies in Belarus to continue observing and monitoring the trials of all political prisoners;

    11.  Stresses the importance of protecting exiled Belarusians from persecution by the Lukashenka regime, and of granting them opportunities to legally stay and work in the EU; calls for the EU and its Member States to raise the issue of abuse of international arrest warrants within Interpol and calls on the countries concerned not to extradite Belarusian citizens who have fled the regime and will face persecution upon their return to Belarus;

    12.  Deplores the fact that repressive measures in Belarus have expanded to include attacks on religious freedom, through the adoption of the law on freedom of conscience and religious organisations, which grossly violates the fundamental right to freedom of religion, conscience and belief; urges the Lukashenka regime to immediately halt the persecution of religious communities and churches;

    13.  Calls for the continuation of EU support for Belarusian democratic forces, led by Sviatlana Tsikhanouskaya; reiterates the need to support Belarusian democratic forces, civil society, students, journalists, leaders of trade unions, exiled professionals and others by providing them with visas, scholarships, grants and networking opportunities; encourages the representatives of the democratic forces of Belarus to maintain and promote unity;

    14.  Denounces the Lukashenka regime’s complicity in Russia’s war of aggression against Ukraine and condemns its deliberate subordination of Belarus to Russia in a so-called union state encompassing political, geopolitical, economic, military and cultural spheres; reiterates the need to contribute to strengthening Belarusian national identity and the Belarusian language, and to combat the distortion and manipulation of Belarusian history by the Lukashenka regime as well as by the Kremlin and its proxies;

    15.  Urges the EU and its international partners to broaden and strengthen sanctions against individuals and entities responsible for the repression in Belarus and for Belarus’s participation in Russia’s war of aggression against Ukraine, while closing sanctions loopholes and addressing the main sources of income financing the regime, such as exports of potash and other fertilisers; calls for the EU to sanction Belarusian entities and individuals responsible for the forced labour of political prisoners, as well as the goods produced using such forced labour;

    16.  Urges the EU and international partners to immediately identify, freeze, and find legal pathways for seizing assets of the Belarusian leadership and related Belarusian entities involved in the Russian war effort, as well as assets of entities and individuals leading Lukashenka’s so-called election campaign, including the Federation of Trade Unions of Belarus, such as Yury Sianko, Hanna Varfalameyeva and Valery Kursevich; calls on EU and Western companies to cease their activities in Belarus;

    17.  Calls for the EU and its Member States to continue raising the situation in Belarus in all relevant international organisations, in particular the Organization for Security and Co-operation in Europe, the UN and its specialised bodies and the ILO, with the aim of enhancing international scrutiny of the human rights violations and international action on the situation in Belarus; calls on the Member States to ensure continued documentation and accountability for international crimes committed by the Lukashenka regime, strengthen the OHCHR’s examination of the human rights situation in Belarus by providing full support to the UN Group of Independent Experts on the Human Rights Situation in Belarus and by preserving the mandate of the UN Special Rapporteur on the situation of human rights in Belarus to monitor ongoing human rights violations;

    18.  Denounces the illegal transfer of several thousand children, including orphans, from Russian-occupied areas of Ukraine to so-called recreational camps in Belarus, where they are subjected to Russification and indoctrination; strongly condemns the involvement of the Belarus Red Cross in the illegal deportation of Ukrainian children;

    19.  Strongly condemns the Lukashenka regime’s weaponisation and instrumentalisation of migration to destabilise neighbouring EU Member States through orchestrated irregular flows, violating human rights, exploiting vulnerable individuals and threatening regional stability; calls for the EU and its Member States to work on a coordinated response to counter this hybrid threat while protecting EU external borders and protecting the rights and safety of vulnerable individuals;

    20.  Urges Belarus to commute all death sentences, impose a moratorium on capital punishment and move towards its permanent abolition;

    21.  Instructs its President to forward this resolution to the Vice-President of the Commission / High Representative of the Union for Foreign Affairs and Security Policy, the relevant EU institutions, the governments and parliaments of the Member States, the Organization for Security and Co-operation in Europe, the Council of Europe, the UN High Commissioner for Human Rights, the Government of Japan, representatives of the Belarusian democratic forces and the Belarusian de facto authorities.

    MIL OSI Europe News –

    January 25, 2025
  • MIL-OSI Video: Occupied Palestinian Territory, Syria, Haiti & other topics – Daily Press Briefing (23 January 2025)

    Source: United Nations (Video News)

    Noon briefing by Farhan Haq, Deputy Spokesperson for the Secretary-General.

    Highlights:
    Occupied Palestinian Territory
    Under-Secretary-General for Peace Operations
    Syria
    Security Council
    Haiti
    Sudan
    Holocaust
    Guest Tomorrow
    Honour Roll

    OCCUPIED PALESTINIAN TERRITORY
    The Office for the Coordination of Humanitarian Affairs reports that large volumes of humanitarian aid continue to enter Gaza through the Erez and Zikim crossings in the north and Kerem Shalom crossing in the south.
    Inside Gaza, OCHA says that aid cargo and humanitarian personnel are moving into areas that were previously hard to reach. Our humanitarian partners on the ground say the operating environment has improved significantly. The surge in supplies entering Gaza each day and the return of law and order has allowed aid organizations to scale up the delivery of life-saving assistance and services.
    In central and southern Gaza, partners have resumed monthly food distributions with full rations. Yesterday, humanitarian organizations on the ground in Gaza transported 118 trucks of food parcels and flour from UNRWA warehouses to more than 60 distribution points in the south.
    Across southern Gaza, UNICEF continues dispatching high-energy biscuits and ready-to-use food – enough for thousands of infants.
    While food items currently account for the bulk of supplies that have entered the Gaza Strip since the ceasefire took effect, more medicines, shelter materials, and water, sanitation and hygiene supplies are expected over the coming days.
    Yesterday, partners in southern Gaza distributed medical disposables and trauma management kits to 14 hospitals, as well as sexual and reproductive health kits to 28 health facilities – enough for 58,000 people.
    Meanwhile, fuel deliveries in central and southern Gaza are keeping functional water wells, desalination plants and sewage pumps running.
    And yesterday, our humanitarian partners delivered seven trucks of fuel to northern Gaza. This is the first such shipment since the ceasefire began.
    The supplies will help power the back-up generators that are sustaining critical humanitarian services provided by UNRWA, the World Food Programme, the World Health Organization and other partners.
    Also, in Gaza City yesterday, two of UNRWA’s primary health service points reopened – the Beach health centre and Daraj medical point.
    Across the Strip, OCHA reports that most Palestinians remain at displacement sites – either because their homes are in ruins or contaminated by explosive ordnance, or because movement back to northern Gaza has not yet been allowed.
    And turning to the situation in the West Bank, OCHA reports that the Jenin Government Hospital remains disconnected from water and electricity, and access is extremely difficult due to road damage. The facility is relying on dwindling water reserves from emergency tanks installed just weeks ago through an allocation by the Occupied Palestinian Territory Humanitarian Fund, which is managed by OCHA.

    UNDER-SECRETARY-GENERAL FOR PEACE OPERATIONS
    Starting this Saturday, the Under-Secretary-General for Peace Operations, Jean-Pierre Lacroix, will travel to the Middle East.
    He will visit two UN peacekeeping missions and travel to Damascus to meet with caretaker authorities and Israeli authorities in Jerusalem.
    Mr. Lacroix will first travel to Syria, where he will spend time at the UN Disengagement Observer Force (UNDOF) before visiting the headquarters of the UN Truce Supervision Organization (UNTSO) in Jerusalem.
    Mr. Lacroix’s priorities are to express his solidarity with and support for UN peacekeepers and to highlight the importance of mine action and removal of explosive remnants of war.

    Full highlights: https://www.un.org/sg/en/content/noon-briefing-highlight?date%5Bvalue%5D%5Bdate%5D=23%20January%202025

    https://www.youtube.com/watch?v=Wt2pGiYdMwg

    MIL OSI Video –

    January 25, 2025
  • MIL-OSI: South Plains Financial, Inc. Reports Fourth Quarter and Year-End 2024 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    LUBBOCK, Texas, Jan. 24, 2025 (GLOBE NEWSWIRE) — South Plains Financial, Inc. (NASDAQ:SPFI) (“South Plains” or the “Company”), the parent company of City Bank (“City Bank” or the “Bank”), today reported its financial results for the quarter and year ended December 31, 2024.

    Fourth Quarter 2024 Highlights

    • Net income for the fourth quarter of 2024 was $16.5 million, compared to $11.2 million for the third quarter of 2024 and $10.3 million for the fourth quarter of 2023.
    • Diluted earnings per share for the fourth quarter of 2024 was $0.96, compared to $0.66 for the third quarter of 2024 and $0.61 for the fourth quarter of 2023.
    • Average cost of deposits for the fourth quarter of 2024 was 229 basis points, compared to 247 basis points for the third quarter of 2024 and 224 basis points for the fourth quarter of 2023.
    • Net interest margin, calculated on a tax-equivalent basis, was 3.75% for the fourth quarter of 2024, compared to 3.65% for the third quarter of 2024 and 3.52% for the fourth quarter of 2023.
    • Return on average assets for the fourth quarter of 2024 was 1.53% annualized, compared to 1.05% annualized for the third quarter of 2024 and 0.99% annualized for the fourth quarter of 2023.
    • Tangible book value (non-GAAP) per share was $25.40 as of December 31, 2024, compared to $25.75 as of September 30, 2024 and $23.47 as of December 31, 2023.
    • The consolidated total risk-based capital ratio, common equity tier 1 risk-based capital ratio, and tier 1 leverage ratio at December 31, 2023 were 16.74%, 12.41%, and 11.33%, respectively. These ratios significantly exceeded the minimum regulatory levels necessary to be deemed “well-capitalized”.

    Full Year 2024 Highlights

    • Full year net income of $49.7 million in 2024, compared to $62.7 million in 2023.
    • Diluted earnings per share of $2.92 in 2024, compared to $3.62 in 2023.
    • The Bank’s wholly-owned subsidiary, Windmark Insurance Agency, Inc. (“Windmark”), was sold in the second quarter of 2023 for $36.1 million, resulting in a gain, net of related charges and taxes, of $22.9 million or $1.32 of diluted earnings per share.
    • Loans held for investment grew $40.9 million, or 1.4%, during 2024.
    • Total assets were $4.23 billion at December 31, 2024, compared to $4.20 billion at December 31, 2023.
    • Return on average assets of 1.17% for the full year 2024, compared to 1.54% for 2023.

    Curtis Griffith, South Plains’ Chairman and Chief Executive Officer, commented, “I am very proud of our performance this past year as we successfully navigated a challenging environment with a focus on delivering strong financial results. We tightly managed our liquidity to optimize our profitability and return metrics while maintaining our conservative approach to underwriting and risk management. We have also managed the anticipated decline in our indirect auto portfolio as well as a heightened level of loan payoffs and paydowns that has obscured the strong, underlying loan production that has built through the year. Importantly, we are seeing a growing level of optimism across our customer base that is translating into the strongest new business production pipeline that we have seen in more than two years. This bodes positively for the year ahead where we expect to deliver low to mid-single digit loan growth for the full year 2025. Additionally, we are seeing deposit pricing fall across our markets which contributed to our strong margin expansion in the fourth quarter.”

    Results of Operations, Quarter Ended December 31, 2024

    Net Interest Income

    Net interest income was $38.5 million for the fourth quarter of 2024, compared to $37.3 million for the third quarter of 2024 and $35.2 million for the fourth quarter of 2023. Net interest margin, calculated on a tax-equivalent basis, was 3.75% for the fourth quarter of 2024, compared to 3.65% for the third quarter of 2024 and 3.52% for the fourth quarter of 2023. The average yield on loans was 6.69% for the fourth quarter of 2024, compared to 6.68% for the third quarter of 2024 and 6.29% for the fourth quarter of 2023. The average cost of deposits was 229 basis points for the fourth quarter of 2024, which is 18 basis points lower than the third quarter of 2024 and 5 basis points higher than the fourth quarter of 2023.

    Interest income was $61.3 million for the fourth quarter of 2024, compared to $61.6 million for the third quarter of 2024 and $57.2 million for the fourth quarter of 2023. Interest income decreased $316 thousand in the fourth quarter of 2024 from the third quarter of 2024, which was primarily comprised of a decrease of $243 thousand in loan interest income. The decline in loan interest income was due primarily to a decrease in average loans of $20.2 million. Interest income increased $4.1 million in the fourth quarter of 2024 compared to the fourth quarter of 2023. This increase was primarily due to an increase of average loans of $30.5 million and higher loan interest rates during the period, resulting in growth of $3.4 million in loan interest income.

    Interest expense was $22.8 million for the fourth quarter of 2024, compared to $24.3 million for the third quarter of 2024 and $22.1 million for the fourth quarter of 2023. Interest expense decreased $1.6 million compared to the third quarter of 2024 and increased $702 thousand compared to the fourth quarter of 2023. The $1.6 million decrease was primarily as a result of a 24 basis point decline in the cost of interest-bearing deposits. The $702 thousand increase was primarily a result of growth in average interest-bearing deposits of $136.0 million.

    Noninterest Income and Noninterest Expense

    Noninterest income was $13.3 million for the fourth quarter of 2024, compared to $10.6 million for the third quarter of 2024 and $9.1 million for the fourth quarter of 2023. The increase from the third quarter of 2024 was primarily due to an increase of $3.1 million in mortgage banking revenues, mainly from an increase of $3.5 million in the fair value adjustment of the mortgage servicing rights assets as interest rates that affect the value increased in the fourth quarter of 2024. This growth was partially offset by approximately $700 thousand in insurance proceeds received for property damage in the third quarter of 2024. The increase in noninterest income for the fourth quarter of 2024 as compared to the fourth quarter of 2023 was primarily due to an increase of $3.3 million in mortgage banking activities revenue mainly from a rise of $3.0 million in the fair value adjustment of the mortgage servicing rights assets as interest rates that affect the value increased in the fourth quarter of 2024.

    Noninterest expense was $29.9 million for the fourth quarter of 2024, compared to $33.1 million for the third quarter of 2024 and $30.6 million for the fourth quarter of 2023. The $3.2 million decrease from the third quarter of 2024 was largely the result of a decline of $1.4 million in personnel expenses, primarily from decreased health insurance costs of $668 thousand, as annual rebates were received in the fourth quarter, and a reduction of $400 thousand in mortgage commissions as mortgage activity slowed in the fourth quarter. There were also decreases in net occupancy expense, professional service expenses, and the ineffectiveness related to fair value hedges on municipal securities. The decrease in noninterest expense for the fourth quarter of 2024 as compared to the fourth quarter of 2023 was largely the result of a decrease of $593 thousand in personnel expenses, related to the decline in health insurance costs previously noted.

    Loan Portfolio and Composition

    Loans held for investment were $3.06 billion as of December 31, 2024, compared to $3.04 billion as of September 30, 2024 and $3.01 billion as of December 31, 2023. The $17.7 million, or 2.3% annualized, increase during the fourth quarter of 2024 as compared to the third quarter of 2024 occurred primarily as a result of organic loan growth experienced in commercial owner-occupied real estate loans. As of December 31, 2024, loans held for investment increased $40.9 million, or 1.4%, from December 31, 2023, primarily attributable to organic loan growth, occurring mainly in multi-family property loans, direct-energy loans, commercial owner-occupied real estate loans, and single-family property loans, partially offset by decreases in consumer auto loans and construction, land, and development loans.

    Deposits and Borrowings

    Deposits totaled $3.62 billion as of December 31, 2024, compared to $3.72 billion as of September 30, 2024 and $3.63 billion as of December 31, 2023. Deposits decreased by $94.8 million, or 2.6%, in the fourth quarter of 2024 from September 30, 2024. As of December 31, 2024, deposits were essentially unchanged, from December 31, 2023. Noninterest-bearing deposits were $935.5 million as of December 31, 2024, compared to $998.5 million as of September 30, 2024 and $974.2 million as of December 31, 2023. Noninterest-bearing deposits represented 25.8% of total deposits as of December 31, 2024. The quarterly change in total deposits was mainly due to the seasonal decline in escrow accounts of approximately $35 million and a planned reduction of approximately $50 million in customer sweep deposits as part of balance sheet management. Deposits were essentially unchanged, year-over-year, with an increase in interest-bearing deposits offset by a decline in noninterest-bearing deposits.

    Asset Quality

    The Company recorded a provision for credit losses in the fourth quarter of 2024 of $1.2 million, compared to $495 thousand in the third quarter of 2024 and $600 thousand in the fourth quarter of 2023. The provision during the fourth quarter of 2024 was largely attributable to net charge-off activity and increased loan balances.

    The ratio of allowance for credit losses to loans held for investment was 1.42% as of December 31, 2024, compared to 1.41% as of September 30, 2024 and 1.41% as of December 31, 2023.

    The ratio of nonperforming assets to total assets was 0.58% as of December 31, 2024, compared to 0.59% as of September 30, 2024 and 0.14% as of December 31, 2023. Annualized net charge-offs were 0.11% for the fourth quarter of 2024, compared to 0.11% for the third quarter of 2024 and 0.08% for the fourth quarter of 2023.

    Capital

    Book value per share decreased to $26.67 at December 31, 2024, compared to $27.04 at September 30, 2024. The change was primarily driven by a decrease in accumulated other comprehensive income (“AOCI”) of $18.2 million, partially offset by $14.0 million of net income after dividends paid. The decrease in AOCI was attributed to the after-tax decrease in fair value of our available for sale securities, net of fair value hedges, as a result of increases in long-term market interest rates during the period. The tangible common equity to tangible assets ratio (non-GAAP) increased 15 basis points to 9.92% in the fourth quarter of 2024.

    Conference Call

    South Plains will host a conference call to discuss its fourth quarter and year-end 2024 financial results today, January 24, 2025, at 10:00 a.m., Eastern Time. Investors and analysts interested in participating in the call are invited to dial 1-877-407-9716 (international callers please dial 1-201-493-6779) approximately 10 minutes prior to the start of the call. A live audio webcast of the conference call and conference materials will be available on the Company’s website at https://www.spfi.bank/news-events/events.

    A replay of the conference call will be available within two hours of the conclusion of the call and can be accessed on the investor section of the Company’s website as well as by dialing 1-844-512-2921 (international callers please dial 1-412-317-6671). The pin to access the telephone replay is 13750452. The replay will be available until February 7, 2025.

    About South Plains Financial, Inc.

    South Plains is the bank holding company for City Bank, a Texas state-chartered bank headquartered in Lubbock, Texas. City Bank is one of the largest independent banks in West Texas and has additional banking operations in the Dallas, El Paso, Greater Houston, the Permian Basin, and College Station, Texas markets, and the Ruidoso, New Mexico market. South Plains provides a wide range of commercial and consumer financial services to small and medium-sized businesses and individuals in its market areas. Its principal business activities include commercial and retail banking, along with investment, trust and mortgage services. Please visit https://www.spfi.bank for more information.

    Non-GAAP Financial Measures

    Some of the financial measures included in this press release are not measures of financial performance recognized in accordance with generally accepted accounting principles in the United States (“GAAP”). These non-GAAP financial measures include Tangible Book Value Per Share, Tangible Common Equity to Tangible Assets, and Pre-Tax, Pre-Provision Income. The Company believes these non-GAAP financial measures provide both management and investors a more complete understanding of the Company’s financial position and performance. These non-GAAP financial measures are supplemental and are not a substitute for any analysis based on GAAP financial measures.

    We classify a financial measure as being a non-GAAP financial measure if that financial measure excludes or includes amounts, or is subject to adjustments that have the effect of excluding or including amounts, that are included or excluded, as the case may be, in the most directly comparable measure calculated and presented in accordance with GAAP as in effect from time to time in the United States in our statements of income, balance sheets or statements of cash flows. Not all companies use the same calculation of these measures; therefore, this presentation may not be comparable to other similarly titled measures as presented by other companies.

    A reconciliation of non-GAAP financial measures to GAAP financial measures is provided at the end of this press release.

    Available Information

    The Company routinely posts important information for investors on its web site (under http://www.spfi.bank and, more specifically, under the News & Events tab at http://www.spfi.bank/news-events/press-releases). The Company intends to use its web site as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD (Fair Disclosure) promulgated by the U.S. Securities and Exchange Commission (the “SEC”). Accordingly, investors should monitor the Company’s web site, in addition to following the Company’s press releases, SEC filings, public conference calls, presentations and webcasts.

    The information contained on, or that may be accessed through, the Company’s web site is not incorporated by reference into, and is not a part of, this document.

    Forward Looking Statements

    This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect South Plains’ current views with respect to future events and South Plains’ financial performance. Any statements about South Plains’ expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as “anticipate,” “believes,” “can,” “could,” “may,” “predicts,” “potential,” “should,” “will,” “estimate,” “plans,” “projects,” “continuing,” “ongoing,” “expects,” “intends” and similar words or phrases. South Plains cautions that the forward-looking statements in this press release are based largely on South Plains’ expectations and are subject to a number of known and unknown risks and uncertainties that are subject to change based on factors which are, in many instances, beyond South Plains’ control. Factors that could cause such changes include, but are not limited to, the impact on us and our customers of a decline in general economic conditions and any regulatory responses thereto; potential recession in the United States and our market areas; the impacts related to or resulting from uncertainty in the banking industry as a whole; increased competition for deposits in our market areas and related changes in deposit customer behavior; the impact of changes in market interest rates, whether due to a continuation of the elevated interest rate environment or further reductions in interest rates and a resulting decline in net interest income; the lingering inflationary pressures, and the risk of the resurgence of elevated levels of inflation, in the United States and our market areas; the uncertain impacts of ongoing quantitative tightening and current and future monetary policies of the Board of Governors of the Federal Reserve System; increases in unemployment rates in the United States and our market areas; declines in commercial real estate values and prices; uncertainty regarding United States fiscal debt, deficit and budget matters; cyber incidents or other failures, disruptions or breaches of our operational or security systems or infrastructure, or those of our third-party vendors or other service providers, including as a result of cyber attacks; severe weather, natural disasters, acts of war or terrorism, geopolitical instability or other external events; the impact of changes in U.S. presidential administrations or Congress, including potential changes in U.S. and international trade policies and the resulting impact on the Company and its customers; competition and market expansion opportunities; changes in non-interest expenditures or in the anticipated benefits of such expenditures; the risks related to the development, implementation, use and management of emerging technologies, including artificial intelligence and machine learnings; potential costs related to the impacts of climate change; current or future litigation, regulatory examinations or other legal and/or regulatory actions; and changes in applicable laws and regulations. Additional information regarding these risks and uncertainties to which South Plains’ business and future financial performance are subject is contained in South Plains’ most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q on file with the SEC, including the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of such documents, and other documents South Plains files or furnishes with the SEC from time to time, which are available on the SEC’s website, http://www.sec.gov. Actual results, performance or achievements could differ materially from those contemplated, expressed, or implied by the forward-looking statements due to additional risks and uncertainties of which South Plains is not currently aware or which it does not currently view as, but in the future may become, material to its business or operating results. Due to these and other possible uncertainties and risks, the Company can give no assurance that the results contemplated in the forward-looking statements will be realized and readers are cautioned not to place undue reliance on the forward-looking statements contained in this press release. Any forward-looking statements presented herein are made only as of the date of this press release, and South Plains does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, new information, the occurrence of unanticipated events, or otherwise, except as required by applicable law. All forward-looking statements, express or implied, included in the press release are qualified in their entirety by this cautionary statement.

    Contact: Mikella Newsom, Chief Risk Officer and Secretary
      (866) 771-3347
      investors@city.bank
       

    Source: South Plains Financial, Inc.

     
    South Plains Financial, Inc.
    Consolidated Financial Highlights – (Unaudited)
    (Dollars in thousands, except share data)
     
      As of and for the quarter ended
      December 31,
    2024
      September 30,
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
    Selected Income Statement Data:                            
    Interest income $ 61,324     $ 61,640     $ 59,208     $ 58,727     $ 57,236  
    Interest expense   22,776       24,346       23,320       23,359       22,074  
    Net interest income   38,548       37,294       35,888       35,368       35,162  
    Provision for credit losses   1,200       495       1,775       830       600  
    Noninterest income   13,319       10,635       12,709       11,409       9,146  
    Noninterest expense   29,948       33,128       32,572       31,930       30,597  
    Income tax expense   4,222       3,094       3,116       3,143       2,787  
    Net income   16,497       11,212       11,134       10,874       10,324  
    Per Share Data (Common Stock):                            
    Net earnings, basic $ 1.01     $ 0.68     $ 0.68     $ 0.66     $ 0.63  
    Net earnings, diluted   0.96       0.66       0.66       0.64       0.61  
    Cash dividends declared and paid   0.15       0.14       0.14       0.13       0.13  
    Book value   26.67       27.04       25.45       24.87       24.80  
    Tangible book value (non-GAAP)   25.40       25.75       24.15       23.56       23.47  
    Weighted average shares outstanding, basic   16,400,361       16,386,079       16,425,360       16,429,919       16,443,908  
    Weighted average shares outstanding, dilutive   17,161,646       17,056,959       16,932,077       16,938,857       17,008,892  
    Shares outstanding at end of period   16,455,826       16,386,627       16,424,021       16,431,755       16,417,099  
    Selected Period End Balance Sheet Data:                            
    Cash and cash equivalents $ 359,082     $ 471,167     $ 298,006     $ 371,939     $ 330,158  
    Investment securities   577,240       606,889       591,031       599,869       622,762  
    Total loans held for investment   3,055,054       3,037,375       3,094,273       3,011,799       3,014,153  
    Allowance for credit losses   43,237       42,886       43,173       42,174       42,356  
    Total assets   4,232,239       4,337,659       4,220,936       4,218,993       4,204,793  
    Interest-bearing deposits   2,685,366       2,720,880       2,672,948       2,664,397       2,651,952  
    Noninterest-bearing deposits   935,510       998,480       951,565       974,174       974,201  
    Total deposits   3,620,876       3,719,360       3,624,513       3,638,571       3,626,153  
    Borrowings   110,354       110,307       110,261       110,214       110,168  
    Total stockholders’ equity   438,949       443,122       417,985       408,712       407,114  
    Summary Performance Ratios:                            
    Return on average assets (annualized)   1.53 %     1.05 %     1.07 %     1.04 %     0.99 %
    Return on average equity (annualized)   14.88 %     10.36 %     10.83 %     10.72 %     10.52 %
    Net interest margin (1)   3.75 %     3.65 %     3.63 %     3.56 %     3.52 %
    Yield on loans   6.69 %     6.68 %     6.60 %     6.53 %     6.29 %
    Cost of interest-bearing deposits   3.12 %     3.36 %     3.33 %     3.27 %     3.14 %
    Efficiency ratio   57.50 %     68.80 %     66.72 %     67.94 %     68.71 %
    Summary Credit Quality Data:                            
    Nonperforming loans $ 24,023     $ 24,693     $ 23,452     $ 3,380     $ 5,178  
    Nonperforming loans to total loans held for investment   0.79 %     0.81 %     0.76 %     0.11 %     0.17 %
    Other real estate owned   530       973       755       862       912  
    Nonperforming assets to total assets   0.58 %     0.59 %     0.57 %     0.10 %     0.14 %
    Allowance for credit losses to total loans held for investment   1.42 %     1.41 %     1.40 %     1.40 %     1.41 %
    Net charge-offs to average loans outstanding (annualized)   0.11 %     0.11 %     0.10 %     0.13 %     0.08 %
                                           
      As of and for the quarter ended
      December 31
    2024
      September 30,
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
    Capital Ratios:                            
    Total stockholders’ equity to total assets   10.37 %     10.22 %     9.90 %     9.69 %     9.68 %
    Tangible common equity to tangible assets (non-GAAP)   9.92 %     9.77 %     9.44 %     9.22 %     9.21 %
    Common equity tier 1 to risk-weighted assets   13.53 %     13.25 %     12.61 %     12.67 %     12.41 %
    Tier 1 capital to average assets   12.04 %     11.76 %     11.81 %     11.51 %     11.33 %
    Total capital to risk-weighted assets   17.86 %     17.61 %     16.86 %     17.00 %     16.74 %
    (1) Net interest margin is calculated as the annual net interest income, on a fully tax-equivalent basis, divided by average interest-earning assets.
     
    South Plains Financial, Inc.
    Average Balances and Yields – (Unaudited)
    (Dollars in thousands)
     
      For the Three Months Ended
      December 31, 2024   December 31, 2023
           
      Average
    Balance
      Interest   Yield/Rate   Average
    Balance
      Interest   Yield/Rate
    Assets                                          
    Loans $ 3,049,718     $ 51,270       6.69 %   $ 3,019,228     $ 47,903       6.29 %
    Debt securities – taxable   518,646       4,994       3.83 %     560,143       5,563       3.94 %
    Debt securities – nontaxable   154,203       1,014       2.62 %     157,341       1,032       2.60 %
    Other interest-bearing assets   390,090       4,267       4.35 %     255,454       2,963       4.60 %
                                               
    Total interest-earning assets   4,112,657       61,545       5.95 %     3,992,166       57,461       5.71 %
    Noninterest-earning assets   189,422                     156,541                
                                               
    Total assets $ 4,302,079                   $ 4,148,707                
                                               
    Liabilities & stockholders’ equity                                          
    NOW, Savings, MMDA’s $ 2,249,062       16,570       2.93 %   $ 2,201,190       16,894       3.04 %
    Time deposits   445,173       4,566       4.08 %     357,067       3,325       3.69 %
    Short-term borrowings   3       –       0.00 %     3       –       0.00 %
    Notes payable & other long-term borrowings   –       –       0.00 %     –       –       0.00 %
    Subordinated debt   63,938       834       5.19 %     73,740       981       5.28 %
    Junior subordinated deferrable interest debentures   46,393       806       6.91 %     46,393       874       7.47 %
                                               
    Total interest-bearing liabilities   2,804,569       22,776       3.23 %     2,678,393       22,074       3.27 %
    Demand deposits   978,742                     1,021,091                
    Other liabilities   77,732                     59,808                
    Stockholders’ equity   441,036                     389,415                
                                               
    Total liabilities & stockholders’ equity $ 4,302,079                   $ 4,148,707                
                                               
    Net interest income         $ 38,769                   $ 35,387        
    Net interest margin (2)                   3.75 %                     3.52 %
    (1) Average loan balances include nonaccrual loans and loans held for sale.
    (2) Net interest margin is calculated as the annualized net interest income, on a fully tax-equivalent basis, divided by average interest-earning assets.
       
    South Plains Financial, Inc.
    Average Balances and Yields – (Unaudited)
    (Dollars in thousands)
     
      For the Twelve Months Ended
      December 31, 2024   December 31, 2023
                           
      Average
    Balance
      Interest   Yield/Rate   Average
    Balance
      Interest   Yield/Rate
    Assets                                          
    Loans $ 3,054,189     $ 202,301       6.62 %   $ 2,924,473     $ 176,627       6.04 %
    Debt securities – taxable   532,730       21,090       3.96 %     570,655       21,590       3.78 %
    Debt securities – nontaxable   155,168       4,076       2.63 %     185,205       4,901       2.65 %
    Other interest-bearing assets   312,917       14,319       4.58 %     223,152       9,973       4.47 %
                                               
    Total interest-earning assets   4,055,004       241,786       5.96 %     3,903,485       213,091       5.46 %
    Noninterest-earning assets   179,527                     176,495                
                                               
    Total assets $ 4,234,531                   $ 4,079,980                
                                               
    Liabilities & stockholders’ equity                                          
    NOW, Savings, MMDA’s $ 2,250,942       70,362       3.13 %   $ 2,117,985       55,423       2.62 %
    Time deposits   411,028       16,719       4.07 %     321,205       9,564       2.98 %
    Short-term borrowings   3       –       0.00 %     84       5       5.95 %
    Notes payable & other long-term borrowings   –       –       0.00 %     –       –       0.00 %
    Subordinated debt   63,868       3,339       5.23 %     75,458       4,018       5.32 %
    Junior subordinated deferrable interest debentures   46,393       3,381       7.29 %     46,393       3,276       7.06 %
                                               
    Total interest-bearing liabilities   2,772,234       93,801       3.38 %     2,561,125       72,286       2.82 %
    Demand deposits   968,307                     1,069,280                
    Other liabilities   70,777                     71,102                
    Stockholders’ equity   423,213                     378,473                
                                               
    Total liabilities & stockholders’ equity $ 4,234,531                   $ 4,079,980                
                                               
    Net interest income         $ 147,985                   $ 140,805        
    Net interest margin (2)                   3.65 %                     3.61 %
    (1) Average loan balances include nonaccrual loans and loans held for sale.
    (2) Net interest margin is calculated as the annualized net interest income, on a fully tax-equivalent basis, divided by average interest-earning assets.
       
    South Plains Financial, Inc.
    Consolidated Balance Sheets
    (Unaudited)
    (Dollars in thousands)
     
      As of
      December 31,
    2024
      December 31,
    2023
               
    Assets          
    Cash and due from banks $ 54,114     $ 62,821  
    Interest-bearing deposits in banks   304,968       267,337  
    Securities available for sale   577,240       622,762  
    Loans held for sale   20,542       14,499  
    Loans held for investment   3,055,054       3,014,153  
    Less:  Allowance for credit losses   (43,237 )     (42,356 )
    Net loans held for investment   3,011,817       2,971,797  
    Premises and equipment, net   52,951       55,070  
    Goodwill   19,315       19,315  
    Intangible assets   1,720       2,429  
    Mortgage servicing rights   26,292       26,569  
    Other assets   163,280       162,194  
    Total assets $ 4,232,239     $ 4,204,793  
               
    Liabilities and Stockholders’ Equity          
    Noninterest-bearing deposits $ 935,510     $ 974,201  
    Interest-bearing deposits   2,685,366       2,651,952  
    Total deposits   3,620,876       3,626,153  
    Subordinated debt   63,961       63,775  
    Junior subordinated deferrable interest debentures   46,393       46,393  
    Other liabilities   62,060       61,358  
    Total liabilities   3,793,290       3,797,679  
    Stockholders’ Equity          
    Common stock   16,456       16,417  
    Additional paid-in capital   97,287       97,107  
    Retained earnings   385,827       345,264  
    Accumulated other comprehensive income (loss)   (60,621 )     (51,674 )
    Total stockholders’ equity   438,949       407,114  
    Total liabilities and stockholders’ equity $ 4,232,239     $ 4,204,793  
                   
    South Plains Financial, Inc.
    Consolidated Statements of Income
    (Unaudited)
    (Dollars in thousands)
     
      Three Months Ended   Twelve Months Ended
      December 31,
    2024
      December 31,
    2023
      December 31,
    2024
      December 31,
    2023
                                   
    Interest income:                              
    Loans, including fees $ 51,262     $ 47,895     $ 202,270     $ 176,598  
    Other   10,062       9,341       38,629       35,435  
    Total interest income   61,324       57,236       240,899       212,033  
    Interest expense:                              
    Deposits   21,136       20,219       87,081       64,987  
    Subordinated debt   834       981       3,339       4,018  
    Junior subordinated deferrable interest debentures   806       874       3,381       3,276  
    Other   –       –       –       5  
    Total interest expense   22,776       22,074       93,801       72,286  
    Net interest income   38,548       35,162       147,098       139,747  
    Provision for credit losses   1,200       600       4,300       4,610  
    Net interest income after provision for credit losses   37,348       34,562       142,798       135,137  
    Noninterest income:                              
    Service charges on deposits   2,241       1,844       8,026       7,130  
    Income from insurance activities   31       37       123       1,515  
    Mortgage banking activities   4,955       1,671       14,187       13,817  
    Bank card services and interchange fees   3,225       3,167       13,640       13,323  
    Gain on sale of subsidiary   —       —       —       33,778  
    Other   2,867       2,427       12,096       9,663  
    Total noninterest income   13,319       9,146       48,072       79,226  
    Noninterest expense:                              
    Salaries and employee benefits   17,384       17,977       74,338       79,377  
    Net occupancy expense   3,901       3,856       16,105       16,102  
    Professional services   1,555       1,509       6,583       6,433  
    Marketing and development   1,153       880       3,782       3,453  
    Other   5,955       6,375       26,770       29,581  
    Total noninterest expense   29,948       30,597       127,578       134,946  
    Income before income taxes   20,719       13,111       63,292       79,417  
    Income tax expense   4,222       2,787       13,575       16,672  
    Net income $ 16,497     $ 10,324     $ 49,717     $ 62,745  
                                   
    South Plains Financial, Inc.
    Loan Composition
    (Unaudited)
    (Dollars in thousands)
     
      As of
      December 31,
    2024
      December 31,
    2023
                   
    Loans:              
    Commercial Real Estate $ 1,119,063     $ 1,081,056  
    Commercial – Specialized   388,955       372,376  
    Commercial – General   557,371       517,361  
    Consumer:              
    1-4 Family Residential   566,400       534,731  
    Auto Loans   254,474       305,271  
    Other Consumer   64,936       74,168  
    Construction   103,855       129,190  
    Total loans held for investment $ 3,055,054     $ 3,014,153  
                   
    South Plains Financial, Inc.
    Deposit Composition
    (Unaudited)
    (Dollars in thousands)
     
      As of
      December 31,
    2024
      December 31,
    2023
                   
    Deposits:              
    Noninterest-bearing deposits $ 935,510     $ 974,201  
    NOW & other transaction accounts   498,718       562,066  
    MMDA & other savings   1,741,988       1,722,170  
    Time deposits   444,660       367,716  
    Total deposits $ 3,620,876     $ 3,626,153  
                   
    South Plains Financial, Inc.
    Reconciliation of Non-GAAP Financial Measures (Unaudited)
    (Dollars in thousands)
       
      For the quarter ended
      December 31,
    2024
      September 30,
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
    Pre-tax, pre-provision income                                      
    Net income $ 16,497     $ 11,212     $ 11,134     $ 10,874     $ 10,324  
    Income tax expense   4,222       3,094       3,116       3,143       2,787  
    Provision for credit losses   1,200       495       1,775       830       600  
    Pre-tax, pre-provision income $ 21,919     $ 14,801     $ 16,025     $ 14,847     $ 13,711  
                                           
      As of
      December 31,
    2024
      September 30,
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
    Tangible common equity                            
    Total common stockholders’ equity $ 438,949     $ 443,122     $ 417,985     $ 408,712     $ 407,114  
    Less:  goodwill and other intangibles   (21,035 )     (21,197 )     (21,379 )     (21,562 )     (21,744 )
                                 
    Tangible common equity $ 417,914     $ 421,925     $ 396,606     $ 387,150     $ 385,370  
                                 
    Tangible assets                            
    Total assets $ 4,232,239     $ 4,337,659     $ 4,220,936     $ 4,218,993     $ 4,204,793  
    Less:  goodwill and other intangibles   (21,035 )     (21,197 )     (21,379 )     (21,562 )     (21,744 )
                                 
    Tangible assets $ 4,211,204     $ 4,316,462     $ 4,199,557     $ 4,197,431     $ 4,183,049  
                                 
    Shares outstanding   16,455,826       16,386,627       16,424,021       16,431,755       16,417,099  
                                 
    Total stockholders’ equity to total assets   10.37 %     10.22 %     9.90 %     9.69 %     9.68 %
    Tangible common equity to tangible assets   9.92 %     9.77 %     9.44 %     9.22 %     9.21 %
    Book value per share $ 26.67     $ 27.04     $ 25.45     $ 24.87     $ 24.80  
    Tangible book value per share $ 25.40     $ 25.75     $ 24.15     $ 23.56     $ 23.47  
                                           

    The MIL Network –

    January 25, 2025
  • MIL-OSI Economics: Identity fraud: BaFin warns consumers about the company Strategic Assets

    Source: Bundesanstalt für Finanzdienstleistungsaufsicht – In English

    The Federal Financial Supervisory Authority (BaFin) warns consumers about the company Strategic Assets and the services it is offering. BaFin suspects the unknown operators of the website strategicassets.pro of offering consumers financial, investment and cryptoasset services without the required authorisation.

    The unknown operators are contacting consumers, claiming that their offer is from Baden-Württembergische Wertpapierbörse GmbH or Börse Stuttgart GmbH. In addition, when advertising its services, the company claims to be supervised by BaFin. However, none of this information is correct. This is a case of identity fraud. Moreover, BaFin does not supervise Strategic Assets.

    BaFin is issuing this information on the basis of section 37 (4) of the German Banking Act (Kreditwesengesetz – KWG) and section 10 (7) of the German Cryptomarkets Supervision Act (Kryptomaerkteaufsichtsgesetz).

    Please be aware:

    BaFin, the German Federal Criminal Police Office (Bundeskriminalamt – BKA) and the German state criminal police offices (Landeskriminalämter) recommend that consumers seeking to invest money online should exercise the utmost caution and do the necessary research beforehand in order to identify fraud attempts at an early stage.

    MIL OSI Economics –

    January 25, 2025
  • MIL-OSI United Kingdom: Tough restrictions for Sheffield hairdresser and baker who falsely claimed £98,000 in Covid loans

    Source: United Kingdom – Executive Government & Departments

    Bankrupt hairdresser claimed two separate loans totalling £98,000 for a new business which only traded for two weeks

    • Hannah Lucy Walker applied for two Covid Bounce Back Loans to claim a total of £98,000 
    • She took the loans for a new business which was not entitled to any money under the scheme and gave false information in her applications 
    • Walker is now subject to 12 years of sanctions which restrict her finance and business activities to protect the public from further harm 

    A bankrupt former hairdresser from Sheffield is subject to 12 years of stringent sanctions after the Official Receiver found she abused the Covid Bounce Back Loan scheme to claim almost £100,000 she was not entitled to. 

    Hannah Lucy Walker, 31, of Pollard Crescent in Sheffield, was originally a hairdresser. 

    But when Covid lockdowns were in operation during May 2020, she also began a baking business, trading as Something Sweet. 

    And on 25 June 2020, Walker applied for a £50,000 Bounce Back Loan for Something Sweet – which only ever traded for two weeks – declaring its turnover was £256,000. 

    The next day she applied to a different bank for another Bounce Back Loan of £48,000 for the baking business. This time she claimed the business had a turnover of £230,000. 

    Walker was made bankrupt in March 2024, with outstanding debts of around £109,000 including the full amount of both loans.  

    The Official Receiver, whose duty includes investigating the cause of a bankruptcy, found that Something Sweet had not been eligible to apply for a loan. 

    Samantha Crook, Deputy Official Receiver at the Insolvency Service, said: 

    Hannah Walker blatantly abused a scheme designed to support existing businesses during one of the toughest times the country faced. 

    She breached the rules of the scheme by taking out not one, but two loans, for a business that was not even eligible for a loan. 

    These restrictions will curtail her business activities for a long time to help protect the public from further financial harm.

    Under the rules of the Bounce Back Loan scheme, businesses must have been trading by 1 March 2020 in order to apply for a loan.  

    The rules allowed applications for a single loan per business of up to 25% of its 2019 turnover – or of an estimated turnover if the business had started during the previous financial year – up to a maximum of £50,000. Any money claimed was to be used for the economic support of the business. 

    Walker’s baking business was not entitled to any money through the scheme. She did not apply for a loan to support her hairdressing business. 

    Walker signed a Bankruptcy Restrictions Undertaking in which she did not dispute that she had provided false information on two Bounce Back Loan applications to receive a total of £98,000 to which she was not entitled. 

    She must abide by the restrictions, which extend the terms of her original bankruptcy – usually a period of 12 months – for a further 12 years.  

    They prevent Walker from acting as a company director without permission from the court and from borrowing more than £500 without declaring that she is subject to the sanctions. She is also restricted from holding certain roles in public organisations while subject to the measures. 

    The Secretary of State for Business and Trade accepted the undertaking on 14 January 2025. The restrictions will run until 13 January 2037. 

    Further information

    • Hannah Lucy Walker is of Pollard Crescent, Sheffield. Her date of birth is 15 April 1993 
    • Further guidance about Bankruptcy Restrictions Orders and Undertakings     
    • Details of BRO and BRU restrictions relating to individuals can be found on the Individual Insolvency Register

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    Updates to this page

    Published 24 January 2025

    MIL OSI United Kingdom –

    January 25, 2025
  • MIL-OSI: Marquette National Corporation Increases Quarterly Dividend 10.7 Percent and Announces a Common Stock Repurchase Program

    Source: GlobeNewswire (MIL-OSI)

    CHICAGO, Jan. 24, 2025 (GLOBE NEWSWIRE) — Marquette National Corporation (OTCQX: MNAT) today announced that its Board of Directors declared a cash dividend of $0.31 per share, an increase of 10.7% from the previous quarter dividend rate. The dividend will be payable on April 1, 2025 to shareholders of record on March 14, 2025. As of December 31, 2024, Marquette had 4,367,477 shares issued and outstanding.

    The Company also announced that its Board of Directors authorized the repurchase of up to $1,000,000 of its outstanding common stock at prevailing market prices through open market or negotiated transactions. The repurchase program is authorized to last through December 31, 2025.

    Marquette National Corporation is a diversified bank holding company with total assets of $2.2 billion. The Company’s banking subsidiary, Marquette Bank, is a full-service, community bank that serves the financial needs of communities in Chicagoland, offering an extensive line of financial solutions, including retail banking, real estate lending, trust, insurance, investments, wealth management and business banking to consumers and commercial customers. Marquette Bank has 20 branches located in: Chicago, Bolingbrook, Bridgeview, Evergreen Park, Hickory Hills, Lemont, New Lenox, Oak Forest, Oak Lawn, Orland Park, Summit and Tinley Park, Illinois. For more information visit: https://emarquettebank.com

    Special Note Concerning Forward-Looking Statements
    This document contains, and future oral and written statements of the Company and its management may contain, forward-looking statements with respect to the financial condition, results of operations, plans, objectives, future performance and business of the Company. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of the Company’s management and on information currently available to management, are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “plan,” “intend,” “estimate,” “may,” “will,” “would,” “could,” “should” or other similar expressions. A number of factors, many of which are beyond the ability of the Company to control or predict, could cause actual results to differ materially from those in its forward-looking statements. These factors include, among others, the following: (i) the strength of the local, state, national and international economies (including the effects of inflationary pressures and supply chain constraints); (ii) the economic impact of any future terrorist threats and attacks, widespread disease or pandemics, acts of war or other threats thereof (including the ongoing Israeli-Palestinian conflict and the Russian invasion of Ukraine), or other adverse external events that could cause economic deterioration or instability in credit markets, and the response of the local, state and national governments to any such adverse external events; (iii) changes in accounting policies and practices, as may be adopted by state and federal regulatory agencies, the Financial Accounting Standards Board or the Public Company Accounting Oversight Board; (iv) changes in local, state and federal laws, regulations and governmental policies concerning the Company’s general business as a result of the upcoming 2024 presidential election or any changes in response to failures of other banks; (v) changes in interest rates and prepayment rates of the Company’s assets (including the impact of the significant rate increases by the Federal Reserve since 2022); (vi) increased competition in the financial services sector (including from non-bank competitors such as credit unions and “fintech” companies) and the inability to attract new customers; (vii) changes in technology and the ability to develop and maintain secure and reliable electronic systems; (viii) the loss of key executives or employees; (ix) changes in consumer spending; (x) unexpected outcomes of existing or new litigation involving the Company; (xi) the economic impact of exceptional weather occurrences such as tornadoes, floods and blizzards; (xii) fluctuations in the value of securities held in our securities portfolio; (xiii) concentrations within our loan portfolio, large loans to certain borrowers, and large deposits from certain clients; (xiv) the concentration of large deposits from certain clients who have balances above current Federal Deposit Insurance Corporation insurance limits and may withdraw deposits to diversity their exposure; (xv) the level of non-performing assets on our balance sheets; (xvi) interruptions involving our information technology and communications systems or third-party servicers; (xvii) breaches or failures of our information security controls or cybersecurity-related incidents, and (xviii) the ability of the Company to manage the risks associated with the foregoing as well as anticipated.. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. Additionally, all statements in this document, including forward-looking statements, speak only as of the date they are made, and the Company undertakes no obligation to update any statement in light of new information or future events.

    The MIL Network –

    January 25, 2025
  • MIL-OSI: Lakeland Financial Reports Annual Net Income of $93.5 million, Organic Average Loan Growth of 5% and Average Deposit Growth of 4%

    Source: GlobeNewswire (MIL-OSI)

    WARSAW, Ind., Jan. 24, 2025 (GLOBE NEWSWIRE) — Lakeland Financial Corporation (Nasdaq Global Select/LKFN), parent company of Lake City Bank, today reported net income of $93.5 million for the year ended December 31, 2024, versus $93.8 million for the year ended December 31, 2023. Diluted earnings per share were $3.63 for the twelve months ended December 31, 2024, versus $3.65 for 2023.

    Net income was $24.2 million for the three months ended December 31, 2024, a decrease of $5.4 million, or 18%, compared with net income of $29.6 million for the three months ended December 31, 2023. Diluted earnings per share of $0.94 for the fourth quarter of 2024 decreased by 19% from $1.16 for the fourth quarter of 2023. On a linked quarter basis, net income increased 4%, or $852,000, from third quarter 2024 net income of $23.3 million. Linked quarter diluted earnings per share improved by 3% from $0.91 for the third quarter of 2024.

    Pretax pre-provision earnings, which is a non-GAAP measure, were $128.4 million for the twelve months ended December 31, 2024, an increase of $12.3 million, or 11%, compared to $116.2 million for the twelve months ended December 31, 2023. Pretax pre-provision earnings were $32.9 million for the three months ended December 31, 2024, a decrease of $3.4 million, or 9%, compared to $36.4 million for the three months ended December 31, 2023. Pretax pre-provision earnings increased by $2.1 million, or 7%, compared to $30.8 million on a linked quarter basis.

    “2024 continued a long and consistent trend of organic growth in our balance sheet. We successfully expanded both our loan and deposit franchises during the year,” stated David M. Findlay, Chairman and CEO. “We are particularly pleased with the 9-basis point expansion of our net interest margin on a linked quarter basis as we effectively managed the balance sheet throughout the year.”

    Quarterly Financial Performance

    Fourth Quarter 2024 versus Fourth Quarter 2023 highlights:

    • Tangible book value per share grew by $1.25, or 5%, to $26.47
    • Total risk-based capital ratio improved to 15.90%, compared to 15.47%
    • Tangible capital ratio improved to 10.19%, compared to 9.91%
    • Average loans grew by $206.9 million, or 4%, to $5.09 billion
    • Core deposit growth of $274.3 million, or 5%, to $5.9 billion
    • Average equity increased by $121.1 million, or 21%
    • Return on average equity of 13.87%, compared to 20.52%
    • Return on average assets of 1.42%, compared to 1.80%
    • Net interest margin improved to 3.25% versus 3.23%
    • Net interest income increased by $3.1 million, or 6%
    • Noninterest expense increased by $1.2 million, or 4%
    • Provision expense of $3.7 million, compared to $300,000
    • Net charge offs of $1.4 million versus $433,000
    • Watch list loans as a percentage of total loans increased to 4.13% from 3.72%

    Fourth Quarter 2024 versus Third Quarter 2024 highlights:

    • Total risk-based capital ratio improved to 15.90% from 15.75%
    • Average equity growth of $23.6 million, or 4%
    • Average loans grew by $22.3 million, or less than 1%, to $5.09 billion
    • Core deposits increased by $118.6 million, or 2%, to $5.8 billion
    • Net interest margin improved 9 basis points to 3.25% versus 3.16%
    • Return on average equity of 13.87%, compared to 13.85%
    • Return on average assets of 1.42%, compared to 1.39%
    • Noninterest income decreased by $41,000, or less than 1%
    • Noninterest expense increased by $260,000, or 1%
    • Provision expense of $3.7 million, compared to $3.1 million
    • Individually analyzed and watch list loans declined by $56.4 million, or 21%
    • Watch list loans as a percentage of total loans improved to 4.13% from 5.27%

    Capital Strength

    The company’s total capital as a percentage of risk-weighted assets improved to 15.90% at December 31, 2024, compared to 15.47% at December 31, 2023 and 15.75% at September 30, 2024. These capital levels significantly exceeded the 10.00% regulatory threshold required to be characterized as “well capitalized” and reflect the company’s robust capital base.

    The company’s tangible common equity to tangible assets ratio, which is a non-GAAP financial measure, improved to 10.19% at December 31, 2024, compared to 9.91% at December 31, 2023. The tangible common equity ratio contracted from 10.47% at September 30, 2024. Unrealized losses from available-for-sale investment securities were $191.1 million at December 31, 2024, compared to $174.6 million at December 31, 2023 and $154.5 million at September 30, 2024. Excluding the impact of accumulated other comprehensive income (loss) on tangible common equity and tangible assets, the company’s ratio of adjusted tangible common equity to adjusted tangible assets, a non-GAAP financial measure, improved to 12.37% at December 31, 2024, compared to 11.99% at December 31, 2023 and 12.29% at September 30, 2024.

    As announced on January 14, 2025, the board of directors approved a cash dividend for the fourth quarter of $0.50 per share, payable on February 5, 2025, to shareholders of record as of January 25, 2025. The fourth quarter dividend per share represents a 4% increase from the $0.48 dividend per share paid for the fourth quarter of 2023.

    “The continued growth in our capital base supports the increase in our dividend rate paid to shareholders and contributes to the growth in total return for shareholders. The compounded annual growth rate for our dividend is 15% since 2012,” stated Kristin L. Pruitt, President.

    Loan Portfolio

    Average total loans for the twelve months ended December 31, 2024 were $5.04 billion, an increase of $225.7 million, or 5%, from $4.81 billion for the twelve months ended December 31, 2023. Average total loans of $5.09 billion in the fourth quarter of 2024, increased $206.9 million, or 4%, from $4.88 billion for the fourth quarter of 2023, and increased $22.3 million, or less than 1%, from $5.06 billion for the third quarter of 2024.

    “Loan growth in 2024 benefited from healthy increases in both our commercial and consumer lending activities,” noted Findlay. “We were pleased to report 8% growth in consumer loans, 6% growth in CRE and multi-family loans, and 2% growth in commercial and industrial loans for 2024. Our Indiana markets continue to benefit from expanding economic activity stimulated by the pro-business operating environment. We continue to be focused on active business development efforts in every market and we are looking forward to continued organic growth in 2025.”

    Total loans, net of deferred loan fees, increased by $200.6 million, or 4%, from $4.92 billion as of December 31, 2023 to $5.12 billion as of December 31, 2024. The increase in loans occurred across much of the portfolio with our commercial real estate and multi-family residential loan portfolio growing by $155.0 million, or 6%, our commercial and industrial loan portfolio growing by $30.1 million, or 2%, and our consumer 1-4 family mortgage loans portfolio growing by $34.0 million, or 7%. These increases were offset by a decrease to other commercial loans of $25.1 million, or 21%. On a linked quarter basis, total loans, net of deferred loan fees, increased by $35.7 million, or 1%, from $5.08 billion at September 30, 2024. The linked quarter increase was primarily a result of growth in total commercial real estate and multi-family residential loans of $42.7 million, or 2%, and growth in total agri-business and agricultural loans of $29.0 million, or 8%. Offsetting these increases was a decrease in total commercial and industrial loans of $42.0 million, or 3%.

    Commercial loan originations for the fourth quarter included approximately $390.0 million in loan originations, offset by approximately $359.0 million in commercial loan pay downs. Line of credit usage increased to 41% as of December 31, 2024, compared to 39% at December 31, 2023 and was unchanged from 41% as of September 30, 2024. Total available lines of credit contracted by $238.0 million, or 5%, as compared to a year ago, and line usage decreased by $2.0 million, or less than 1%, over that period. The company has limited exposure to commercial office space borrowers, all of which are in the bank’s Indiana markets. Loans totaling $101.7 million for this sector represented 2% of total loans at December 31, 2024, a decrease of $899,000, or 1%, from September 30, 2024. Commercial real estate loans secured by multi-family residential properties and secured by non-farm non-residential properties were approximately 213% of total risk-based capital at December 31, 2024.

    Diversified Deposit Base

    The bank’s diversified deposit base has grown on a year over year basis and on a linked quarter basis.

     
    DEPOSIT DETAIL
    (unaudited, in thousands)
               
      December 31, 2024   September 30, 2024   December 31, 2023
    Retail $ 1,780,726     30.2 %   $ 1,709,899     29.3 %   $ 1,794,958     31.4 %
    Commercial   2,269,049     38.4       2,304,041     39.5       2,227,147     38.9  
    Public funds   1,809,631     30.7       1,726,869     29.6       1,563,015     27.3  
    Core deposits   5,859,406     99.3       5,740,809     98.4       5,585,120     97.6  
    Brokered deposits   41,560     0.7       96,504     1.6       135,405     2.4  
    Total $ 5,900,966     100.0 %   $ 5,837,313     100.0 %   $ 5,720,525     100.0 %
                                             

    Total deposits increased $180.4 million, or 3%, from $5.72 billion as of December 31, 2023 to $5.90 billion as of December 31, 2024. The increase in total deposits was driven by an increase in core deposits (which excludes brokered deposits) of $274.3 million, or 5%. Total core deposits at December 31, 2024 were $5.86 billion and represented 99% of total deposits, as compared to $5.59 billion and 98% of total deposits at December 31, 2023. Brokered deposits were $41.6 million, or 1% of total deposits, at December 31, 2024, compared to $135.4 million, or 2% of total deposits, at December 31, 2023.

    The increase in core deposits since December 31, 2023 reflects growth in commercial deposits and public funds deposits. Public funds deposits grew annually by $246.6 million, or 16%, to $1.81 billion. Commercial deposits grew annually by $41.9 million, or 2%, to $2.27 billion. Retail deposits contracted annually by $14.2 million, or 1%, to $1.78 billion. The increase in public funds deposits drove the change in the composition of core deposits as public funds deposits as a percentage of total deposits increased to 31%, from 27%. Commercial and retail deposits as a percentage of total deposits contracted to 38%, from 39%, and to 30%, from 31%, respectively. Growth in public funds was positively impacted by the addition of a new public funds customers in the Lake City Bank footprint which included the addition of their operating accounts.

    On a linked quarter basis, total deposits increased $63.7 million, or 1%, from $5.84 billion at September 30, 2024 to $5.90 billion at December 31, 2024. Core deposits increased by $118.6 million, or 2%, while brokered deposits decreased by $54.9 million, or 57%. Linked quarter growth in core deposits resulted primarily from an increase in public funds deposits of $82.8 million, or 5%, and growth in retail deposits of $70.8 million, or 4%. Offsetting these increases was a decrease in commercial deposits of $35.0 million, or 2%.

    “Core deposit growth was steady throughout 2024 and accounts for 99% of the funding sources for Lake City Bank,” commented Findlay. “We are pleased that our growth in core deposits came from every region of the bank. We continue to successfully fund the loan growth with in-market stable and diversified deposit growth. We continue to gain market share in our more mature Northern Indiana markets and implemented strategies to enhance growth in the Indianapolis market through data-driven marketing and business development efforts.”

    Average total deposits were $6.01 billion for the fourth quarter of 2024, an increase of $208.5 million, or 4%, from $5.80 billion for the fourth quarter of 2023. Average interest-bearing deposits drove the increase in average total deposits and increased by $301.1 million, or 7%. Contributing to the overall growth of interest-bearing deposits was an increase to average interest-bearing checking accounts of $431.9 million, or 14%. Offsetting this increase was a reduction in average time deposits of $98.9 million, or 9%, and a decrease to average savings deposits of $31.9 million, or 10%. Average noninterest-bearing demand deposits decreased by $92.5 million, or 7%.

    On a linked quarter basis, average total deposits increased by $130.9 million, or 2%, from $5.88 billion for the third quarter of 2024 to $6.01 billion for the fourth quarter of 2024. Average interest-bearing deposits drove the increase to total average deposits, which increased by $93.2 million, or 2%. An increase to interest bearing checking accounts of $209.6 million, or 6%, drove the increase to average interest-bearing deposits on a linked quarter basis. Offsetting this increase was a decrease to total average time deposits of $111.1 million, or 10%. Average noninterest-bearing demand deposits increased by $37.7 million, or 3%.

    Checking account trends as of December 31, 2024 compared to December 31, 2023, include growth of $310.5 million, or 24%, in aggregate public fund checking account balances, growth of $24.5 million, or 1%, in aggregate commercial checking account balances, and expansion of $34.4 million, or 4%, in aggregate retail checking account balances. The number of accounts has also grown for all three segments, with growth of 7% for public funds accounts, 2% for commercial accounts and 1% for retail accounts during 2024.

    Deposits not covered by FDIC deposit insurance as a percentage of total deposits were 62% as of December 31, 2024, compared to 61% at September 30, 2024, and 57% at December 31, 2023, reflecting the growth in public fund deposits over the period. Deposits not covered by FDIC deposit insurance or the Indiana Public Deposit Insurance Fund (which insures public funds deposits in Indiana), were 32% of total deposits as of December 31, 2024, compared to 32% at September 30, 2024, and 31% as of December 31, 2023. As of December 31, 2024, 98% of deposit accounts had deposit balances less than $250,000.

    Net Interest Margin

    Net interest margin was 3.25% for the fourth quarter of 2024, representing a 2 basis point increase from 3.23% for the fourth quarter of 2023. Earning assets yields decreased by 15 basis points to 5.81% for the fourth quarter of 2024 from 5.96% for the fourth quarter of 2023. The decrease in earning asset yields was offset by a decrease in the company’s funding costs of 17 basis points as interest expense as a percentage of average earning assets decreased to 2.56% for the fourth quarter of 2024, compared to 2.73% for the fourth quarter of 2023.

    Linked quarter net interest margin expanded by 9 basis point to 3.25% for the fourth quarter of 2024, compared to 3.16% for the third quarter of 2024. Average earning asset yields decreased by 23 basis points from 6.04% during the third quarter of 2024 to 5.81% during the fourth quarter of 2024 and were offset by a 32 basis point decrease in interest expense as a percentage of average earning assets from 2.88% to 2.56%. The cumulative 100 basis point decline in the Federal Funds Rate during 2024, drove the reduction in funding costs that provided for the net interest margin expansion through deposit repricing. Notably, the deposit mix shift from noninterest bearing deposits to interest bearing deposits experienced by the company during the monetary tightening cycle of March 2022 through September 2024 has stabilized with noninterest bearing deposits representing 22% of total deposits at December 31, 2024, compared to 24% at December 31, 2023 and 22% at September 30, 2024.

    “Our thoughtful and strategic balance sheet management strategies led to healthy net interest margin expansion of 9 basis points during the fourth quarter,” noted Lisa M. O’Neill, Executive Vice-President and Chief Financial Officer. “Net interest margin expansion resulted from reduced deposit costs that outpaced loan repricing due to falling short term rates. Our public fund balances are largely tied to the effective federal funds rate, and we also continue to benefit from fixed rate loan repricing to the higher interest rate environment.”

    The loan beta for the current rate-easing cycle is 25% compared to the deposit beta of 31%. The cumulative loan beta, which measures the sensitivity of a bank’s average loan yield to changes in short-term interest rates, was 56% for the recent rate-tightening cycle. The cumulative deposit beta, which measures the sensitivity of a bank’s deposit cost to changes in short-term interest rates, was 54% for the recent rate-tightening cycle.

    Liquidity Overview

    The bank has robust liquidity resources. These resources include secured borrowings available from the Federal Home Loan Bank and the Federal Reserve Bank Discount Window. In addition, the bank has unsecured borrowing capacity through long established relationships within the brokered deposits markets, federal funds lines from correspondent bank partners, and Insured Cash Sweep (ICS) one-way buy funds available from the Intrafi network. As of December 31, 2024, the company had access to an aggregate of $3.7 billion in liquidity from these sources, compared to $3.4 billion at December 31, 2023 and $3.7 billion at September 30, 2024. Utilization from these sources totaled $41.6 million at December 31, 2024, compared to $185.4 million at December 31, 2023 and $96.5 million at September 30, 2024. Core deposits have historically represented, and currently represent, the primary funding resource of the bank at 99% of total deposits and purchased funds.

    Investment Portfolio Overview

    Total investment securities were $1.12 billion at December 31, 2024, reflecting a decrease of $58.7 million, or 5%, as compared to $1.18 billion at December 31, 2023. On a linked quarter basis, investment securities decreased $24.8 million, or 2%, due primarily to a decline in the fair market value of available-for-sale securities of $36.6 million, portfolio cash flows of $15.1 million and partially offset by investment security purchases of $30 million. Investment securities represented 17% of total assets on December 31, 2024, compared to 18% at December 31, 2023 and 17% at September 30, 2024. The ratio of investment securities as a percentage of total assets remains elevated over historical levels of approximately 12% to 14%. The company expects the investment securities portfolio as a percentage of assets to continue to decrease over time as the proceeds from pay downs, sales and maturities are used to fund loan growth and for general liquidity purposes. Tax equivalent adjusted effective duration for the investment portfolio was 6.0 years at December 31, 2024, compared to 6.5 years and 6.3 years at December 31, 2023 and September 30, 2024, respectively. Tax equivalent adjusted effective duration of the investment portfolio remains elevated as compared to 4.0 years at December 31, 2019 prior to the deployment of excess liquidity to the investment portfolio and the impact of the higher interest rate environment. The company anticipates receiving principal and interest cash flows of approximately $104.2 million during 2025 from the investment securities portfolio and plans to use that liquidity to fund loan growth and to fund new investment securities purchases.

    Net interest income decreased by $356,000, or less than 1%, for the twelve months ended December 31, 2024, as compared to the twelve months ended December 31, 2023. Deposit interest expense increased by $35.0 million. Offsetting the increase in deposit interest expense was an increase in loan interest income of $29.8 million and a reduction in borrowings interest expense of $4.7 million. Net interest income was $51.7 million for the fourth quarter of 2024, representing an increase of $3.1 million, or 6%, as compared to the fourth quarter of 2023. Net interest income for the fourth quarter of 2024 benefited from an increase in loan interest income of $1.9 million and a reduction in interest expense of $667,000 compared to the prior year quarter. On a linked quarter basis, net interest income increased $2.4 million, or 5%, from $49.3 million for the third quarter of 2024. On a linked quarter basis, the increase to net interest income was driven by a $4.1 million reduction in interest expense and a $1.1 million increase in income from short-term investments. Offsetting the reduction in interest expense was a reduction in loan interest income of $2.9 million.

    On a full year basis, revenue increased by $6.6 million, or 3%, to $253.5 million as compared to $246.9 million for 2023. Revenue was $63.6 million for the fourth quarter 2024 representing a decrease of $ 2.2 million or 3%, as compared to the fourth quarter of 2023. On a linked quarter basis, revenue increased by $2.4 million, or 4% from $61.2 million in the third quarter of 2024.

    Asset Quality

    Provision expense was $16.8 million for the year ended December 31, 2024, an increase of $10.9 million, or 186%, as compared to $5.9 million during 2023. The elevated provision recorded during 2024 as compared to the prior year was primarily driven by an increase in specific allocations from the downgrade of a $43.3 million credit to an industrial company in Northern Indiana. The relationship was placed on nonperforming status in conjunction with the downgrade, which occurred during the second quarter of 2024. Additional specific allocations of $5.5 million were reserved for this credit during the fourth quarter of 2024. The company recorded a provision expense of $3.7 million in the fourth quarter of 2024, compared to provision expense of $300,000 in the fourth quarter of 2023. On a linked quarter basis, provision expense increased by $632,000 from $3.1 million for the third quarter of 2024, or 21%.

    The allowance for credit loss reserve to total loans was 1.68% at December 31, 2024, up from 1.46% at December 31, 2023, and 1.65% at September 30, 2024. Net charge offs were $2.8 million for the full year 2024 compared to $6.5 million for 2023. Net charge offs to total loans were 0.05% for 2024 compared to 0.13% for 2023. Net charge offs in the fourth quarter of 2024 were $1.4 million compared to $433,000 in the fourth quarter of 2023 and $143,000 during the linked third quarter of 2024. Annualized net charge offs to average loans were 0.11% for the fourth quarter of 2024, compared to 0.04% for the fourth quarter of 2023, and 0.01% for the linked third quarter of 2024.

    Nonperforming assets increased $40.8 million, or 253%, to $56.9 million as of December 31, 2024, versus $16.1 million as of December 31, 2023. On a linked quarter basis, nonperforming assets decreased $1.2 million, or 2%, compared to $58.1 million as of September 30, 2024. The ratio of nonperforming assets to total assets at December 31, 2024 increased to 0.85% from 0.25% at December 31, 2023 and decreased from 0.87% at September 30, 2024. The full-year increase in nonperforming assets was primarily driven by the industrial borrower relationship referenced above.

    Total individually analyzed and watch list loans increased by $28.1 million, or 15%, to $211.1 million as of December 31, 2024, versus $183.1 million as of December 31, 2023. On a linked quarter basis, total individually analyzed and watch list loans decreased by $56.4 million, or 21%, from $267.6 million at September 30, 2024. Watch list loans as a percentage of total loans increased by 41 basis points to 4.13% at December 31, 2024, compared to 3.72% at December 31, 2023, and decreased by 114 basis points from 5.27% at September 30, 2024. The linked quarter decrease in total individually analyzed and watch list loans was primarily driven by the removal of six relationships from the watch list with an aggregate balance of $63.7 million, offset by the addition of four downgraded credits with an aggregated balance of $8.4 million. Approximately $45.5 million of the watch list removals were attributable to credit upgrades, with the remaining $18.2 million in removals attributable to payoffs.

    “We are encouraged by the $56 million decrease in watch list credits during the quarter and are cautiously optimistic following our fourth quarter, semi-annual portfolio reviews meetings during which we review every commercial banker’s portfolio,” stated Findlay. “Economic conditions in all of our markets remain stable and we continue to actively manage our loan portfolio challenges.”

    Noninterest Income

    Noninterest income increased by $7.0 million, or 14%, to $56.8 million for the twelve months ended December 31, 2024, compared to $49.9 million for the prior year. The increase in noninterest income for the twelve months ended December 31, 2024 was primarily driven by the net gain on sale of Visa shares of $9.0 million. Contributing further to the increase in noninterest income was an increase to wealth and advisory fees of $1.4 million, or 15%, driven by growth in customers and favorable market performance. Bank owned life insurance income increased $1.1 million, or 34%, due to favorable market performance of the company’s variable bank owned life insurance policies. Offsetting these increases was a $4.5 million, or 49%, decrease to other income. Other income was elevated during the twelve months ended December 31, 2023 from insurance and loss recoveries of $6.3 million that were related to the 2023 wire fraud loss. Offsetting the impact of these recoveries was increased investment income from the company’s limited partnership investments and the receipt of an additional $1.0 million in recoveries from the wire fraud loss. Adjusted core noninterest income, a non-GAAP financial measure that excludes the effects of certain non-routine operating events, was $46.8 million for the twelve months ended December 31, 2024, an increase of $3.3 million, or 8%, compared to $43.6 million for twelve months ended December 31, 2023.

    Findlay added, “It is very gratifying to report strong growth in core noninterest income for 2024. Our fee-based lines of business made significant contributions to revenue growth during the year. Notably, Wealth Advisory fees grew by 15% and treasury management fees grew by 5%. As we move into 2025, our teams continue to be focused on driving continued growth in these business lines.”

    The company’s noninterest income decreased $5.3 million, or 31%, to $11.9 million for the fourth quarter of 2024, compared to $17.2 million for the fourth quarter of 2023. Wealth advisory fees increased $388,000, or 17%, and bank owned life insurance increased $476,000, or 64%. Other income decreased $6.5 million, or 89%. Other income was elevated during the fourth quarter of 2023 primarily due to insurance and loss recoveries of $6.3 million related to the wire fraud loss. Adjusted core noninterest income was $11.9 million for the fourth quarter of 2024, an increase of $968,000, or 9%, compared to $10.9 million for the fourth quarter of 2023.

    On a linked quarter basis, noninterest income for the fourth quarter of 2024 decreased by $41,000, or less than 1%, from $11.9 million during the third quarter of 2024. The linked quarter decrease was driven by a decrease to other income of $261,000, or 25%, and was offset by an increase to bank owned life insurance income $148,000, or 14%.

    Noninterest Expense

    Noninterest expense decreased by $5.6 million, or 4%, from $130.7 million to $125.1 million for the twelve months ended December 31, 2023 and 2024, respectively. Noninterest expense during 2023 was elevated as compared to 2024 due to the wire fraud loss, which added a net $16.7 million to noninterest expense. Offsetting this impact on noninterest expense was a $7.6 million, or 13%, increase in salaries and employees benefits during the full year 2024. The increase to salaries and benefits expense resulted primarily from increases to salaries and wages of $3.2 million, performance-based incentive compensation of $2.3 million, health insurance expense of $918,000, and variable deferred compensation of $950,000, which relates to the company’s variable bank owned life insurance. Other expense increased $2.6 million, or 24%, primarily due to an accrued legal expense of $4.5 million. Data processing fees and supplies increased by $1.2 million, or 8%, from the continued investment in customer-facing and operational technology solutions. Adjusted core noninterest expense, a non-GAAP financial measure that excludes the effects of certain non-routine operating events, was $120.5 million for the twelve months ended December 31, 2024, an increase of $6.5 million, or 6%, compared to $114.0 million for the twelve months ended December 31, 2023.

    Noninterest expense increased $1.2 million, or 4%, to $30.7 million for the fourth quarter of 2024, compared to $29.4 million during the fourth quarter of 2023. Driving the fourth quarter 2024 increase to noninterest expense was an increase to salaries and benefits expense of $1.5 million, or 10%, which was primarily attributable to increased salary expense of $825,000, deferred compensation of $414,000 and increased health insurance of $222,000. Other expense decreased by $595,000, or 20%, from lower legal accruals. Adjusted core noninterest expense increased by $1.7 million, or 6%, from $29.0 million during the fourth quarter of 2023.

    On a linked quarter basis, noninterest expense increased by $260,000, or 1%, from $30.4 million during the third quarter of 2024. Driving the increase in noninterest expense was an increase in salaries and employee benefits of $785,000, or 5% primarily due to performance-based incentive compensation. Corporate and business development expense decreased by $419,000, or 31%, which was driven by a reduction in advertising expense during the quarter. Other expense decreased by $132,000, or 5%.

    The company’s efficiency ratio for the twelve months ended December 31, 2024 was 49.3% compared to 52.9% for the twelve months ended December 31, 2023. The company’s adjusted core efficiency ratio, a non-GAAP financial measure that excludes the impact of certain non-routine operating events, was 49.5% for the twelve months ended December 31, 2024 as compared to 47.4% for the twelve months ended December 31, 2023.

    The company’s efficiency ratio was 48.2% for the fourth quarter of 2024, compared to 44.7% for the fourth quarter of 2023 and 49.7% for the linked third quarter of 2024. The company’s adjusted core efficiency ratio was 48.7% for the fourth quarter of 2023 and unchanged when compared to the company’s efficiency ratio for the third and fourth quarters of 2024.

    Information regarding Lakeland Financial Corporation may be accessed on the home page of its subsidiary, Lake City Bank, at lakecitybank.com. The company’s common stock is traded on the Nasdaq Global Select Market under “LKFN.” Lake City Bank, a $6.7 billion bank headquartered in Warsaw, Indiana, was founded in 1872 and serves Central and Northern Indiana communities with 54 branch offices and a robust digital banking platform. Lake City Bank’s community banking model prioritizes building in-market long-term customer relationships while delivering technology-forward solutions for retail and commercial clients.

    This document contains, and future oral and written statements of the company and its management may contain, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, plans, objectives, future performance and business of the company. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of the company’s management and on information currently available to management, are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “continue,” “plan,” “intend,” “estimate,” “may,” “will,” “would,” “could,” “should” or other similar expressions. The company’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain and, accordingly, the reader is cautioned not to place undue reliance on any forward-looking statements made by the company. Additionally, all statements in this document, including forward-looking statements, speak only as of the date they are made, and the company undertakes no obligation to update any statement in light of new information or future events. Numerous factors could cause the company’s actual results to differ from those reflected in forward-looking statements, including the effects of economic, business and market conditions and changes, particularly in our Indiana market area, including prevailing interest rates and the rate of inflation; governmental monetary and fiscal policies; the risks of changes in interest rates on the levels, composition and costs of deposits, loan demand and the values and liquidity of loan collateral, securities and other interest sensitive assets and liabilities; and changes in borrowers’ credit risks and payment behaviors, as well as those identified in the company’s filings with the Securities and Exchange Commission, including the company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.

     
    LAKELAND FINANCIAL CORPORATION
    FOURTH QUARTER 2024 FINANCIAL HIGHLIGHTS
           
      Three Months Ended   Twelve Months Ended
    (Unaudited – Dollars in thousands, except per share data) December 31,   September 30,   December 31,   December 31,   December 31,
    END OF PERIOD BALANCES 2024   2024   2023   2024   2023
    Assets $ 6,678,374     $ 6,645,371     $ 6,524,029     $ 6,678,374     $ 6,524,029  
    Investments   1,122,994       1,147,806       1,181,646       1,122,994       1,181,646  
    Loans   5,117,948       5,081,990       4,916,534       5,117,948       4,916,534  
    Allowance for Credit Losses   85,960       83,627       71,972       85,960       71,972  
    Deposits   5,900,966       5,837,313       5,720,525       5,900,966       5,720,525  
    Brokered Deposits   41,560       96,504       135,405       41,560       135,405  
    Core Deposits (1)   5,859,406       5,740,809       5,585,120       5,859,406       5,585,120  
    Total Equity   683,911       699,181       649,793       683,911       649,793  
    Goodwill Net of Deferred Tax Assets   3,803       3,803       3,803       3,803       3,803  
    Tangible Common Equity (2)   680,108       695,378       645,990       680,108       645,990  
    Adjusted Tangible Common Equity (2)   846,040       832,813       800,450       846,040       800,450  
    AVERAGE BALANCES                  
    Total Assets $ 6,795,596     $ 6,656,464     $ 6,514,430     $ 6,662,718     $ 6,464,980  
    Earning Assets   6,470,920       6,329,287       6,145,937       6,328,498       6,114,225  
    Investments   1,134,011       1,128,705       1,107,862       1,134,979       1,184,659  
    Loans   5,086,614       5,064,348       4,879,695       5,039,406       4,813,678  
    Total Deposits   6,011,122       5,880,177       5,802,592       5,836,025       5,604,228  
    Interest Bearing Deposits   4,729,201       4,635,993       4,428,140       4,578,219       4,128,922  
    Interest Bearing Liabilities   4,729,206       4,649,745       4,441,425       4,644,553       4,295,743  
    Total Equity   693,744       670,160       572,653       662,087       588,667  
    INCOME STATEMENT DATA                  
    Net Interest Income $ 51,694     $ 49,273     $ 48,599     $ 196,679     $ 197,035  
    Net Interest Income-Fully Tax Equivalent   52,804       50,383       49,914       201,363       202,347  
    Provision for Credit Losses   3,691       3,059       300       16,750       5,850  
    Noninterest Income   11,876       11,917       17,208       56,844       49,858  
    Noninterest Expense   30,653       30,393       29,445       125,084       130,710  
    Net Income   24,190       23,338       29,626       93,478       93,767  
    Pretax Pre-Provision Earnings (2)   32,917       30,797       36,362       128,439       116,183  
    PER SHARE DATA                  
    Basic Net Income Per Common Share $ 0.94     $ 0.91     $ 1.16     $ 3.64     $ 3.67  
    Diluted Net Income Per Common Share   0.94       0.91       1.16       3.63       3.65  
    Cash Dividends Declared Per Common Share   0.48       0.48       0.46       1.92       1.84  
    Dividend Payout   51.06 %     52.75 %     39.66 %     52.89 %     50.41 %
    Book Value Per Common Share (equity per share issued) $ 26.62     $ 27.22     $ 25.37     $ 26.62     $ 25.37  
    Tangible Book Value Per Common Share (2)   26.47       27.07       25.22       26.47       25.22  
    Market Value – High $ 78.61     $ 72.25     $ 67.88     $ 78.61     $ 77.07  
    Market Value – Low   61.10       57.45       45.59       57.45       43.05  
                                           
                                           
      Three Months Ended   Twelve Months Ended
    (Unaudited – Dollars in thousands, except per share data) December 31,   September 30,   December 31,   December 31,   December 31,
    PER SHARE DATA (continued) 2024   2024   2023   2024   2023
    Basic Weighted Average Common Shares Outstanding   25,686,276       25,684,407       25,614,420       25,676,543       25,604,751  
    Diluted Weighted Average Common Shares Outstanding   25,792,460       25,767,739       25,732,870       25,769,018       25,723,165  
    KEY RATIOS                  
    Return on Average Assets   1.42 %     1.39 %     1.80 %     1.40 %     1.45 %
    Return on Average Total Equity   13.87       13.85       20.52       14.12       15.93  
    Average Equity to Average Assets   10.21       10.07       8.79       9.94       9.11  
    Net Interest Margin   3.25       3.16       3.23       3.18       3.31  
    Efficiency  (Noninterest Expense/Net Interest Income plus Noninterest Income)   48.22       49.67       44.74       49.34       52.94  
    Loans to Deposits   86.73       87.06       85.95       86.73       85.95  
    Investment Securities to Total Assets   16.82       17.27       18.11       16.82       18.11  
    Tier 1 Leverage (3)   12.15       12.18       11.82       12.15       11.82  
    Tier 1 Risk-Based Capital (3)   14.64       14.50       14.21       14.64       14.21  
    Common Equity Tier 1 (CET1) (3)   14.64       14.50       14.21       14.64       14.21  
    Total Capital (3)   15.90       15.75       15.47       15.90       15.47  
    Tangible Capital (2)   10.19       10.47       9.91       10.19       9.91  
    Adjusted Tangible Capital (2)   12.37       12.29       11.99       12.37       11.99  
    ASSET QUALITY                  
    Loans Past Due 30 – 89 Days $ 4,273     $ 829     $ 3,360     $ 4,273     $ 3,360  
    Loans Past Due 90 Days or More   28       95       27       28       27  
    Nonaccrual Loans   56,431       57,551       15,687       56,431       15,687  
    Nonperforming Loans   56,459       57,646       15,714       56,459       15,714  
    Other Real Estate Owned   284       384       384       284       384  
    Other Nonperforming Assets   143       21       8       143       8  
    Total Nonperforming Assets   56,886       58,051       16,106       56,886       16,106  
    Individually Analyzed Loans   78,647       77,654       16,124       78,647       16,124  
    Non-Individually Analyzed Watch List Loans   132,499       189,918       166,961       132,499       166,961  
    Total Individually Analyzed and Watch List Loans   211,146       267,572       183,085       211,146       183,085  
    Gross Charge Offs   1,657       231       566       3,468       7,332  
    Recoveries   299       88       133       706       848  
    Net Charge Offs/(Recoveries)   1,358       143       433       2,762       6,484  
    Net Charge Offs/(Recoveries) to Average Loans   0.11 %     0.01 %     0.04 %     0.05 %     0.13 %
    Credit Loss Reserve to Loans   1.68       1.65       1.46       1.68       1.46  
    Credit Loss Reserve to Nonperforming Loans   152.25       145.07       458.01       152.25       458.01  
    Nonperforming Loans to Loans   1.10       1.13       0.32       1.10       0.32  
    Nonperforming Assets to Assets   0.85       0.87       0.25       0.85       0.25  
    Total Individually Analyzed and Watch List Loans to Total Loans   4.13 %     5.27 %     3.72 %     4.13 %     3.72 %
                       
                       
      Three Months Ended   Twelve Months Ended
    (Unaudited – Dollars in thousands, except per share data) December 31,   September 30,   December 31,   December 31,   December 31,
    PER SHARE DATA (continued) 2024   2024   2023   2024   2023
    OTHER DATA                  
    Full Time Equivalent Employees   643       639       619       643       619  
    Offices   54       54       53       54       53  

    ________________________________________________________________
    (1)  Core deposits equals deposits less brokered deposits.
    (2)  Non-GAAP financial measure – see “Reconciliation of Non-GAAP Financial Measures”.
    (3)  Capital ratios for December 31, 2024 are preliminary until the Call Report is filed.

     
    CONSOLIDATED BALANCE SHEETS (in thousands, except share data)
     
    ​ December 31,
    2024
      December 31,
    2023
    ​ (Unaudited)   ​
    ASSETS      
    Cash and due from banks $ 71,733     $ 70,451  
    Short-term investments   96,472       81,373  
    Total cash and cash equivalents   168,205       151,824  
    ​      
    Securities available-for-sale, at fair value   991,426       1,051,728  
    Securities held-to-maturity, at amortized cost (fair value of $113,107 and $119,215, respectively)   131,568       129,918  
    Real estate mortgage loans held-for-sale   1,700       1,158  
    ​      
    Loans, net of allowance for credit losses of $85,960 and $71,972   5,031,988       4,844,562  
    ​      
    Land, premises and equipment, net   60,489       57,899  
    Bank owned life insurance   113,320       109,114  
    Federal Reserve and Federal Home Loan Bank stock   21,420       21,420  
    Accrued interest receivable   28,446       30,011  
    Goodwill   4,970       4,970  
    Other assets   124,842       121,425  
    Total assets $ 6,678,374     $ 6,524,029  
    ​      
    ​      
    LIABILITIES      
    Noninterest bearing deposits $ 1,297,456     $ 1,353,477  
    Interest bearing deposits   4,603,510       4,367,048  
    Total deposits   5,900,966       5,720,525  
           
    Borrowings – Federal Home Loan Bank advances   0       50,000  
    Accrued interest payable   15,117       20,893  
    Other liabilities   78,380       82,818  
    Total liabilities   5,994,463       5,874,236  
    ​      
    STOCKHOLDERS’ EQUITY      
    Common stock: 90,000,000 shares authorized, no par value      
    25,978,831 shares issued and 25,509,592 outstanding as of December 31, 2024      
    25,903,686 shares issued and 25,430,566 outstanding as of December 31, 2023   129,664       127,692  
    Retained earnings   736,412       692,760  
    Accumulated other comprehensive income (loss)   (166,500 )     (155,195 )
    Treasury stock, at cost (469,239 shares and 473,120 shares as of December 31, 2024 and December 31, 2023, respectively)   (15,754 )     (15,553 )
    Total stockholders’ equity   683,822       649,704  
    Noncontrolling interest   89       89  
    Total equity   683,911       649,793  
    Total liabilities and equity $ 6,678,374     $ 6,524,029  
                   
     
    CONSOLIDATED STATEMENTS OF INCOME (unaudited – in thousands, except share and per share data)
     
    ​ Three Months Ended December 31,   Twelve Months Ended December 31,
    ​ 2024
      2023   2024   2023
    NET INTEREST INCOME              
    Interest and fees on loans              
    Taxable $ 83,253     $ 80,631     $ 335,639     $ 304,130  
    Tax exempt   296       1,016       2,126       3,885  
    Interest and dividends on securities              
    Taxable   2,997       3,187       12,048       13,153  
    Tax exempt   3,914       4,009       15,714       16,396  
    Other interest income   2,910       2,099       7,631       5,703  
    Total interest income   93,370       90,942       373,158       343,267  
    ​ ​   ​   ​   ​
    Interest on deposits   41,676       42,154       172,759       137,791  
    Interest on short-term borrowings   0       189       3,720       8,441  
    Total interest expense   41,676       42,343       176,479       146,232  
    ​ ​   ​   ​   ​
    NET INTEREST INCOME   51,694       48,599       196,679       197,035  
    ​ ​   ​   ​   ​
    Provision for credit losses   3,691       300       16,750       5,850  
    ​ ​   ​   ​   ​
    NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES   48,003       48,299       179,929       191,185  
    ​ ​   ​   ​   ​
    NONINTEREST INCOME              
    Wealth advisory fees   2,699       2,311       10,469       9,080  
    Investment brokerage fees   456       445       1,894       1,815  
    Service charges on deposit accounts   2,825       2,682       11,157       10,773  
    Loan and service fees   2,977       2,968       11,832       11,750  
    Merchant and interchange fee income   889       907       3,542       3,651  
    Bank owned life insurance income   1,216       740       4,210       3,133  
    Interest rate swap fee income   0       0       0       794  
    Mortgage banking income (loss)   48       (70 )     116       (254 )
    Net securities gains (losses)   0       (9 )     (46 )     (25 )
    Net gain on Visa shares   0       0       8,996       0  
    Other income   766       7,234       4,674       9,141  
    Total noninterest income   11,876       17,208       56,844       49,858  
    ​ ​   ​   ​   ​
    NONINTEREST EXPENSE              
    Salaries and employee benefits   17,261       15,733       66,728       59,147  
    Net occupancy expense   1,706       1,486       6,865       6,360  
    Equipment costs   1,405       1,443       5,612       5,632  
    Data processing fees and supplies   3,742       3,698       15,161       14,003  
    Corporate and business development   950       877       4,965       4,807  
    FDIC insurance and other regulatory fees   894       894       3,465       3,363  
    Professional fees   2,275       2,299       8,950       8,583  
    Wire fraud loss   0       0       0       18,058  
    Other expense   2,420       3,015       13,338       10,757  
    Total noninterest expense   30,653       29,445       125,084       130,710  
    ​ ​   ​   ​   ​
    INCOME BEFORE INCOME TAX EXPENSE   29,226       36,062       111,689       110,333  
    Income tax expense   5,036       6,436       18,211       16,566  
    NET INCOME $ 24,190     $ 29,626     $ 93,478     $ 93,767  
    ​ ​   ​   ​   ​
    BASIC WEIGHTED AVERAGE COMMON SHARES   25,686,276       25,614,420       25,676,543       25,604,751  
    ​ ​   ​   ​   ​
    BASIC EARNINGS PER COMMON SHARE $ 0.94     $ 1.16     $ 3.64     $ 3.67  
    ​              
    DILUTED WEIGHTED AVERAGE COMMON SHARES   25,792,460       25,732,870       25,769,018       25,723,165  
    ​              
    DILUTED EARNINGS PER COMMON SHARE $ 0.94     $ 1.16     $ 3.63     $ 3.65  
                                   
     
    LAKELAND FINANCIAL CORPORATION
    LOAN DETAIL
    (unaudited, in thousands)
               
      December 31,
    2024
      September 30,
    2024
      December 31,
    2023
    Commercial and industrial loans:                      
    Working capital lines of credit loans $ 649,609     12.7 %   $ 678,079     13.3 %   $ 604,893     12.3 %
    Non-working capital loans   801,256     15.6       814,804     16.0       815,871     16.6  
    Total commercial and industrial loans   1,450,865     28.3       1,492,883     29.3       1,420,764     28.9  
              ​            
    Commercial real estate and multi-family residential loans:                      
    Construction and land development loans   567,781     11.1       729,293     14.3       634,435     12.9  
    Owner occupied loans   807,090     15.8       810,453     15.9       825,464     16.8  
    Nonowner occupied loans   872,671     17.0       766,821     15.1       724,101     14.7  
    Multifamily loans   344,978     6.7       243,283     4.8       253,534     5.1  
    Total commercial real estate and multi-family residential loans   2,592,520     50.6       2,549,850     50.1       2,437,534     49.5  
              ​            
    Agri-business and agricultural loans:                      
    Loans secured by farmland   156,609     3.1       157,413     3.1       162,890     3.3  
    Loans for agricultural production   230,787     4.5       200,971     4.0       225,874     4.6  
    Total agri-business and agricultural loans   387,396     7.6       358,384     7.1       388,764     7.9  
              ​            
    Other commercial loans   95,584     1.9       94,309     1.9       120,726     2.5  
    Total commercial loans   4,526,365     88.4       4,495,426     88.4       4,367,788     88.8  
              ​            
    Consumer 1-4 family mortgage loans:                      
    Closed end first mortgage loans   259,286     5.1       261,462     5.1       258,103     5.2  
    Open end and junior lien loans   214,125     4.2       210,275     4.1       189,663     3.9  
    Residential construction and land development loans   16,818     0.3       14,200     0.3       8,421     0.2  
    Total consumer 1-4 family mortgage loans   490,229     9.6       485,937     9.5       456,187     9.3  
      ​       ​            
    Other consumer loans   104,041     2.0       103,547     2.1       96,022     1.9  
    Total consumer loans   594,270     11.6       589,484     11.6       552,209     11.2  
    Subtotal   5,120,635     100.0 %     5,084,910     100.0 %     4,919,997     100.0 %
    Less:  Allowance for credit losses   (85,960 )         (83,627 )   ​     (71,972 )   ​
    Net deferred loan fees   (2,687 )         (2,920 )   ​     (3,463 )   ​
    Loans, net $ 5,031,988         $ 4,998,363     ​   $ 4,844,562     ​
                                       
     
    LAKELAND FINANCIAL CORPORATION
    DEPOSITS AND BORROWINGS
    (unaudited, in thousands)
               
      December 31,
    2024
      September 30,
    2024
      December 31,
    2023
    Noninterest bearing demand deposits $ 1,297,456     $ 1,284,527     $ 1,353,477  
    Savings and transaction accounts:          
    Savings deposits   276,179       276,468       301,168  
    Interest bearing demand deposits   3,471,455       3,273,405       3,049,059  
    Time deposits:          
    Deposits of $100,000 or more   642,776       787,095       792,738  
    Other time deposits   213,100       215,818       224,083  
    Total deposits $ 5,900,966     $ 5,837,313     $ 5,720,525  
    FHLB advances and other borrowings   0       30,000       50,000  
    Total funding sources $ 5,900,966     $ 5,867,313     $ 5,770,525  
                           
     
    LAKELAND FINANCIAL CORPORATION
    AVERAGE BALANCE SHEET AND NET INTEREST ANALYSIS
    (UNAUDITED)
                 
        Three Months Ended December 31, 2024   Three Months Ended September 30, 2024   Three Months Ended December 31, 2023
    (fully tax equivalent basis, dollars in thousands)   Average Balance   Interest Income   Yield (1)/
    Rate
      Average Balance   Interest Income   Yield (1)/
    Rate
      Average Balance   Interest Income   Yield (1)/
    Rate
    Earning Assets                                    
    Loans:                                    
    Taxable (2)(3)   $ 5,060,397     $ 83,253     6.54 %   $ 5,037,855     $ 86,118     6.80 %   $ 4,820,389     $ 80,631     6.64 %
    Tax exempt (1)     26,217       364     5.52       26,493       366     5.50       59,306       1,265     8.46  
    Investments: (1)                                    
    Securities     1,134,011       7,953     2.79       1,128,705       7,871     2.77       1,107,862       8,262     2.96  
    Short-term investments     2,765       29     4.17       2,841       35     4.90       2,610       32     4.86  
    Interest bearing deposits     247,530       2,881     4.63       133,393       1,738     5.18       155,770       2,067     5.26  
    Total earning assets   $ 6,470,920     $ 94,480     5.81 %   $ 6,329,287     $ 96,128     6.04 %   $ 6,145,937     $ 92,257     5.96 %
    Less:  Allowance for credit losses     (84,687 )             (81,353 )             (72,165 )        
    Nonearning Assets                                    
    Cash and due from banks     67,994               63,744               69,563          
    Premises and equipment     60,325               59,493               58,436          
    Other nonearning assets     281,044               285,293               312,659          
    Total assets   $ 6,795,596             $ 6,656,464             $ 6,514,430          
                                         
    Interest Bearing Liabilities                                    
    Savings deposits   $ 274,960     $ 43     0.06 %   $ 280,180     $ 45     0.06 %   $ 306,875     $ 52     0.07 %
    Interest bearing checking accounts     3,505,470       31,562     3.58       3,295,911       33,822     4.08       3,073,570       30,953     4.00  
    Time deposits:                                    
    In denominations under $100,000     214,429       1,921     3.56       215,020       1,914     3.54       220,678       1,810     3.25  
    In denominations over $100,000     734,342       8,150     4.42       844,882       9,775     4.60       827,017       9,339     4.48  
    Miscellaneous short-term borrowings     5       0     5.30       13,752       189     5.48       13,285       189     5.64  
    Total interest bearing liabilities   $ 4,729,206     $ 41,676     3.51 %   $ 4,649,745     $ 45,745     3.91 %   $ 4,441,425     $ 42,343     3.78 %
    Noninterest Bearing Liabilities                                    
    Demand deposits     1,281,921               1,244,184               1,374,452          
    Other liabilities     90,725               92,375               125,900          
    Stockholders’ Equity     693,744               670,160               572,653          
    Total liabilities and stockholders’ equity   $ 6,795,596             $ 6,656,464             $ 6,514,430          
    Interest Margin Recap                                    
    Interest income/average earning assets         94,480     5.81 %         96,128     6.04 %         92,257     5.96 %
    Interest expense/average earning assets         41,676     2.56           45,745     2.88           42,343     2.73  
    Net interest income and margin       $ 52,804     3.25 %       $ 50,383     3.16 %       $ 49,914     3.23 %
                                                           

    (1)  Tax exempt income was converted to a fully taxable equivalent basis at a 21 percent tax rate. The tax equivalent rate for tax exempt loans and tax exempt securities acquired after January 1, 1983, included the Tax Equity and Fiscal Responsibility Act of 1982 (“TEFRA”) adjustment applicable to nondeductible interest expenses. Taxable equivalent basis adjustments were $1.11 million, $1.11 million and $1.32 million in the three-month periods ended December 31, 2024, September 30, 2024, and December 31, 2023, respectively.
    (2)  Loan fees, which are immaterial in relation to total taxable loan interest income for the three months ended December 31, 2024, September 30, 2024, and December 31, 2023, are included as taxable loan interest income.
    (3)  Nonaccrual loans are included in the average balance of taxable loans.

    Reconciliation of Non-GAAP Financial Measures

    Tangible common equity, adjusted tangible common equity, tangible assets, adjusted tangible assets, tangible book value per common share, tangible common equity to tangible assets, adjusted tangible common equity to adjusted tangible assets, and pretax pre-provision earnings are non-GAAP financial measures calculated based on GAAP amounts. Tangible common equity is calculated by excluding the balance of goodwill and other intangible assets from the calculation of equity, net of deferred tax. Tangible assets are calculated by excluding the balance of goodwill and other intangible assets from the calculation of total assets, net of deferred tax. Adjusted tangible assets and adjusted tangible common equity remove the fair market value adjustment impact of the available-for-sale investment securities portfolio in accumulated other comprehensive income (loss) (“AOCI”). Tangible book value per common share is calculated by dividing tangible common equity by the number of shares outstanding less true treasury stock. Pretax pre-provision earnings is calculated by adding net interest income to noninterest income and subtracting noninterest expense. Because not all companies use the same calculation of tangible common equity and tangible assets, this presentation may not be comparable to other similarly titled measures calculated by other companies. However, management considers these measures of the company’s value meaningful to understanding of the company’s financial information and performance.

    A reconciliation of these non-GAAP financial measures is provided below (dollars in thousands, except per share data).

      Three Months Ended   Twelve Months Ended
      Dec. 31, 2024   Sep. 30, 2024   Dec. 31, 2023   Dec. 31, 2024   Dec. 31, 2023
    Total Equity $ 683,911     $ 699,181     $ 649,793     $ 683,911     $ 649,793  
    Less: Goodwill   (4,970 )     (4,970 )     (4,970 )     (4,970 )     (4,970 )
    Plus: DTA Related to Goodwill   1,167       1,167       1,167       1,167       1,167  
    Tangible Common Equity   680,108       695,378       645,990       680,108       645,990  
    Market Value Adjustment in AOCI   165,932       137,435       154,460       165,932       154,460  
    Adjusted Tangible Common Equity   846,040       832,813       800,450       846,040       800,450  
                       
    Assets $ 6,678,374     $ 6,645,371     $ 6,524,029     $ 6,678,374     $ 6,524,029  
    Less: Goodwill   (4,970 )     (4,970 )     (4,970 )     (4,970 )     (4,970 )
    Plus: DTA Related to Goodwill   1,167       1,167       1,167       1,167       1,167  
    Tangible Assets   6,674,571       6,641,568       6,520,226       6,674,571       6,520,226  
    Market Value Adjustment in AOCI   165,932       137,435       154,460       165,932       154,460  
    Adjusted Tangible Assets   6,840,503       6,779,003       6,674,686       6,840,503       6,674,686  
                       
    Ending Common Shares Issued   25,689,730       25,684,916       25,614,585       25,689,730       25,614,585  
                       
    Tangible Book Value Per Common Share $ 26.47     $ 27.07     $ 25.22     $ 26.47     $ 25.22  
                       
    Tangible Common Equity/Tangible Assets   10.19 %     10.47 %     9.91 %     10.19 %     9.91 %
    Adjusted Tangible Common Equity/Adjusted Tangible Assets   12.37 %     12.29 %     11.99 %     12.37 %     11.99 %
                       
    Net Interest Income $ 51,694     $ 49,273     $ 48,599     $ 196,679     $ 197,035  
    Plus:  Noninterest Income   11,876       11,917       17,208       56,844       49,858  
    Minus:  Noninterest Expense   (30,653 )     (30,393 )     (29,445 )     (125,084 )     (130,710 )
                       
    Pretax Pre-Provision Earnings $ 32,917     $ 30,797     $ 36,362     $ 128,439     $ 116,183  
                                           

    Adjusted core noninterest income, adjusted core noninterest expense, adjusted earnings before income taxes, core operational profitability, core operational diluted earnings per common share and adjusted core efficiency ratio are non-GAAP financial measures calculated based on GAAP amounts. These adjusted amounts are calculated by excluding the impact of the net gain on Visa shares, legal accrual, and wire fraud loss and associated insurance and loss recoveries and adjustments to salaries and employee benefits expense for the periods presented below. Management considers these measures of financial performance to be meaningful to understanding the company’s core business performance for these periods.

    A reconciliation of these non-GAAP financial measures is provided below (dollars in thousands, except per share data).

      Three Months Ended   Twelve Months Ended
      Dec. 31, 2024   Sep. 30, 2024   Dec. 31, 2023   Dec. 31, 2024   Dec. 31, 2023
    Noninterest Income $ 11,876     $ 11,917     $ 17,208     $ 56,844     $ 49,858  
    Less: Net (Gain) Loss on Visa Shares   0       15       0       (8,996 )     0  
    Less: Insurance and Loss Recoveries   0       0       (6,300 )     (1,000 )     (6,300 )
    Adjusted Core Noninterest Income $ 11,876     $ 11,932     $ 10,908     $ 46,848     $ 43,558  
                       
    Noninterest Expense $ 30,653     $ 30,393     $ 29,445     $ 125,084     $ 130,710  
    Less: Legal Accrual   0       0       0       (4,537 )     0  
    Less: Wire Fraud Loss   0       0       0       0       (18,058 )
    Plus: Salaries and Employee Benefits (1)   0       0       (453 )     0       1,397  
    Adjusted Core Noninterest Expense $ 30,653     $ 30,393     $ 28,992     $ 120,547     $ 114,049  
                       
    Earnings Before Income Taxes $ 29,226     $ 27,738     $ 36,062     $ 111,689     $ 110,333  
    Adjusted Core Impact:                  
    Noninterest Income   0       15       (6,300 )     (9,996 )     (6,300 )
    Noninterest Expense   0       0       453       4,537       16,661  
    Total Adjusted Core Impact   0       15       (5,847 )     (5,459 )     10,361  
    Adjusted Earnings Before Income Taxes   29,226       27,753       30,215       106,230       120,694  
    Tax Effect   (5,036 )     (4,404 )     (4,996 )     (16,853 )     (19,119 )
    Core Operational Profitability (2) $ 24,190     $ 23,349     $ 25,219     $ 89,377     $ 101,575  
                       
    Diluted Earnings Per Common Share $ 0.94     $ 0.91     $ 1.16     $ 3.63     $ 3.65  
    Impact of Adjusted Core Items   0.00       0.00       (0.18 )     (0.16 )     0.30  
    Core Operational Diluted Earnings Per Common Share $ 0.94     $ 0.91     $ 0.98     $ 3.47     $ 3.95  
                       
    Adjusted Core Efficiency Ratio   48.22 %     49.66 %     48.72 %     49.49 %     47.40 %
                                           

    (1)  In 2023, long-term, incentive-based compensation accruals were reduced as a result of the wire fraud loss and associated insurance and loss recoveries.
    (2)  Core operational profitability was $11,000 higher and $4.4 million lower than reported net income for the three months ended September 30, 2024 and December 31, 2023, respectively. Core operational profitability was $4.1 million lower and $7.8 million higher than reported net income for the twelve months ended December 31, 2024 and 2023, respectively.

    Contact
    Lisa M. O’Neill
    Executive Vice President and Chief Financial Officer
    (574) 267-9125
    lisa.oneill@lakecitybank.com

    The MIL Network –

    January 25, 2025
  • MIL-OSI: RYVYL Executes Repurchase and Repayment Agreement with Securityholder to Retire All Outstanding Series B Convertible Preferred Stock and Outstanding Balance of 8% Senior Convertible Note

    Source: GlobeNewswire (MIL-OSI)

    SAN DIEGO, CA, Jan. 24, 2025 (GLOBE NEWSWIRE) — RYVYL Inc. (NASDAQ: RVYL) (“RYVYL” or the “Company”), a leading innovator of payment transaction solutions leveraging electronic payment technology for diverse international markets, has executed a Preferred Stock Repurchase and Note Repayment Agreement for the full repayment and termination of an 8% Senior Convertible Note (the “Note) and the redemption of all shares of the Company’s Series B Convertible Preferred Stock (the “Preferred Stock”). The Definitive Agreement provides for:

    • A first tranche payment of $13.0 million for the redemption of all of the shares of Preferred Stock held by the Securityholder, and payment of a portion of the outstanding balance of the Note so that the remaining outstanding principal balance will be $4.0 million.
    • Advancing the maturity date for the remaining balance of $4.0 million due under the Note, following payment of the first tranche, to April 30, 2025.

    The Company is required to pay the first tranche payment of $13.0 million on or before January 27, 2025. The first tranche due date may be extended to February 3, 2025, at the sole option of the Company, in consideration for RYVYL’s payment of an additional $50,000.

    • Upon payment of the first tranche payment and execution of the Preferred Stock Repurchase and Note Repayment Agreement, certain restrictive covenants contained in the transaction documents pursuant to which the Note and the shares of Preferred Stock were issued will be waived and no additional interest will accrue and be payable, as long as the Company pays the remaining $4.0 million principal balance of the Note ($4,050,000, if the date of the first tranche payment date is extended) on or before April 30, 2025. If the Company fails to pay the remaining balance by such date, the Note will be restored to its terms prior to the first tranche payment, and interest will again accrue and be payable.
    • Prior to payment of the first tranche payment, the Securityholder shall retain the ability, subject to certain market limitations, to convert the Note and the Preferred Stock into common stock.

    This communication is for informational purposes only and does not constitute an offer to sell, or a solicitation of an offer to buy, any security and does not constitute an offer, solicitation or sale of any security in any jurisdiction in which such offer, solicitation or sale would be unlawful.

    About RYVYL

    RYVYL Inc. (NASDAQ: RVYL) was born from a passion for empowering a new way to conduct business-to-business, consumer-to-business, and peer-to-peer payment transactions around the globe. By leveraging electronic payment technology for diverse international markets, RYVYL is a leading innovator of payment transaction solutions reinventing the future of financial transactions. Since its founding as GreenBox POS in 2017 in San Diego, RYVYL has developed applications enabling an end-to-end suite of turnkey financial products with enhanced security and data privacy, world-class identity theft protection, and rapid speed to settlement. As a result, the platform can log immense volumes of immutable transactional records at the speed of the internet for first-tier partners, merchants, and consumers around the globe. http://www.ryvyl.com

    Cautionary Note Regarding Forward-Looking Statements

    This press release includes information that constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on the Company’s current beliefs, assumptions, and expectations regarding future events, which in turn are based on information currently available to the Company. Such forward-looking statements include statements regarding timely payment of the first and second tranches, the benefit to stockholders from the repayment of the note and repurchase of the preferred shares, and the timing and expectation of revenues from the license described herein and are charactered by future or conditional words such as “may,” “will,” “expect,” “intend,” “anticipate,” “believe,” “estimate” and “continue” or similar words. You should read statements that contain these words carefully because they discuss future expectations and plans, which contain projections of future results of operations or financial condition or state other forward-looking information. By their nature, forward-looking statements address matters that are subject to risks and uncertainties. A variety of factors could cause actual events and results to differ materially from those expressed in or contemplated by the forward-looking statements, including the risk that the licensee understands and complies with various banking laws and regulations that may impact the licensee’s ability to process transactions. For example, federal money laundering statutes and Bank Secrecy Act regulations discourage financial institutions from working with operators of certain industries – particularly industries with heightened cash reporting obligations and restrictions – as a result of which, banks may refuse to process certain payments and/or require onerous reporting obligations by payment processors to avoid compliance risk. These and other risk factors affecting the Company are discussed in detail in the Company’s periodic filings with the SEC. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether because of the latest information, future events or otherwise, except to the extent required by applicable laws.

    IR Contact:
    David Barnard, Alliance Advisors Investor Relations, 415-433-3777, ryvylinvestor@allianceadvisors.com

    The MIL Network –

    January 25, 2025
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