Finance – Page 884 – NewzIntel.com

MIL-OSI: Vine Hill Capital Investment Corp. Announces the Separate Trading of Its Class A Ordinary Shares and Warrants, Commencing on October 28, 2024

Source: GlobeNewswire (MIL-OSI)

Fort Lauderdale, Florida, Oct. 25, 2024 (GLOBE NEWSWIRE) — Vine Hill Capital Investment Corp. (Nasdaq: VCICU) (the “Company”), a special purpose acquisition company, today announced that, commencing on October 28, 2024, holders of the units (the “Units”) sold in the Company’s initial public offering may elect to separately trade the Company’s Class A ordinary shares (the “Ordinary Shares”) and warrants (the “Warrants”) included in the Units.

The Ordinary Shares and Warrants received from the separated Units will trade on the Nasdaq Global Market (“Nasdaq”) under the symbols “VCIC” and “VCICW”, respectively. Units that are not separated will continue to trade on Nasdaq under the symbol “VCICU”. No fractional Warrants will be issued upon separation of the Units and only whole Warrants will trade. Holders of Units will need to have their brokers contact Continental Stock Transfer & Trust Company, the Company’s transfer agent, in order to separate the Units into Ordinary Shares and Warrants.

The Company was formed for the purpose of effecting a merger, amalgamation, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses. The Company may pursue an initial business combination in any business, industry, sector or geographical location, but the Company intends to focus its search on a target business in the industrial and services industries, where it believes the expertise of its management team will provide it with a competitive advantage in completing a successful initial business combination.

The Units were initially offered by the Company in an underwritten offering. Stifel, Nicolaus & Company, Incorporated acted as sole book-running manager for the offering. Copies of the prospectus relating to the offering may be obtained from Stifel, Nicolaus & Company, Incorporated, Attention: Syndicate Department, One South Street, 15th Floor, Baltimore, Maryland 21202, or by email: SyndProspectus@Stifel.com or by telephone: (855) 300-7136.

The registration statement relating to the securities of the Company was declared effective by the U.S. Securities and Exchange Commission (the “SEC”) on September 5, 2024. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

Forward Looking Statements

This press release contains statements that constitute “forward-looking statements” that involve risks and uncertainties. Forward-looking statements are statements that are not historical facts. Forward-looking statements are subject to numerous risks and uncertainties, many of which are beyond the control of the Company, including those set forth in the Risk Factors section of the Company’s registration statement and final prospectus for the Company’s initial public offering filed with the SEC, which could cause actual results to differ from forward-looking statements. Copies of these documents are available on the SEC’s website, at www.sec.gov. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law. No assurance can be given that the Company will ultimately complete a business combination transaction.

Contact

Nicholas Petruska
Vine Hill Capital Investment Corp.
Phone: (954) 848-2859
Email: info@vinehillcapital.com
Website: https://vinehillcapital.com/

The MIL Network –

January 25, 2025

MIL-OSI: Awilco Drilling PLC: Minutes from Extraordinary General Meeting

Source: GlobeNewswire (MIL-OSI)

An Extraordinary General Meeting of Awilco Drilling PLC was held Friday 25 October 2024 at 11:00am (UK time), at the Company’s registered office, Suite 1, 7th Floor, 50 Broadway, London, SW1H 0BL, United Kingdom.

The resolution set out in the Meeting Notice was duly passed. The signed minutes of meeting are attached hereto.

The Meeting Notice is available on our website www.awilcodrilling.com, under ‘Investor Relations/General Meetings’.

Aberdeen, 25 October 2024

For further information please contact:

Eric Jacobs, Interim CEO
Phone: +47 9529 2271

Cathrine Haavind, Investor Relations
Phone: +47 9342 8464
Email: ch@awilcodrilling.com

This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

Attachment

AWDR EGM Meeting Minutes 25 October 2024

The MIL Network –

January 25, 2025

MIL-OSI: Silvaco Inc. Achieves ISO 9001 Certification for Comprehensive Suite of TCAD, EDA, and IP Products

Source: GlobeNewswire (MIL-OSI)

SANTA CLARA, Calif., Oct. 25, 2024 (GLOBE NEWSWIRE) — Silvaco Group, Inc. (Nasdaq: SVCO), a provider of TCAD, EDA software, and SIP solutions that enable semiconductor design and digital twin modeling through AI software and innovation, is proud to announce that its wholly-owned subsidiary Silvaco, Inc. (“Silvaco” or the “Company”) has obtained ISO 9001 certification of its quality management system to support its TCAD, EDA software, and SIP solutions. The certification underscores Silvaco’s ongoing commitment to quality, customer satisfaction, and continuous improvement across its entire portfolio products.

The certification was performed by Schellman Compliance, LLC, an ANAB accredited Certification Body based in the United States. The details of Silvaco’s certification is publicly available at https://www.schellman.com/certificate-directory.

Description of the ISO 9001 Standard

ISO 9001 is a globally recognized standard for the establishment and certification of a quality management system (QMS). The standard specifies the requirements to plan, establish, implement, operate, monitor, review, maintain and continually improve a documented management system to protect against, reduce the likelihood of occurrence, prepare for, respond to, and recover from disruptive incidents when they arise. It is intended to be applicable to all organizations, or parts thereof, regardless of type, size and nature of the organization.

The ISO 9001 certification signifies that Silvaco has implemented effective processes and controls to ensure the consistent quality of its products and services, from design and development to delivery and support. By achieving ISO 9001 certification, Silvaco is committed to developing and delivering high-quality solutions that enable semiconductor design and digital twin modeling through AI software and innovation.

“We are thrilled to achieve ISO 9001 certification, which reflects our dedication to maintaining the highest standards of quality in every aspect of our business,” said Dr. Babak Taheri, CEO and Director of Silvaco. “This milestone reinforces our commitment to delivering innovative technology that meets international standards, and the evolving needs of our customers in the semiconductor and electronics industries.”

“Silvaco’s achievement of ISO 9001 certification demonstrates the Company’s commitment in implementing a robust and effective quality management system,” said Danny Manimbo, Principal and ISO Practice Director, Schellman. “By meeting the requirements of ISO 9001, Silvaco has shown its dedication to operational excellence and delivering high-quality services to its customers. We commend Silvaco for reaching this important milestone and look forward to its continued success.”

Silvaco’s suite of TCAD, EDA, and IP products supports the design, simulation and verification of advanced semiconductor devices and systems. The company’s solutions enable semiconductor and photonics companies to increase productivity, accelerate their products’ time-to-market and reduce their development and manufacturing costs.

“This certification reflects the rigorous standards we uphold in developing and delivering our TCAD, EDA, and IP products and is an important step towards Silvaco’s broader strategy of maintaining leadership in those markets,” said Brian Bradburn, Sr. Vice President of Operations of Silvaco. “Not only does this highlight Silvaco’s commitment to continuous quality improvement and technological innovation, but this also ensures that our customers and partners can trust the superior support and consistency of the products we bring to the semiconductor industry.”

About Schellman
Schellman is a leading provider of attestation and compliance services. We are the only company in the world that is a CPA firm, a globally licensed PCI Qualified Security Assessor, an ISO Certification Body, HITRUST CSF Assessor, a FedRAMP 3PAO, and most recently, an APEC Accountability Agent. Renowned for expertise tempered by practical experience, Schellman’s professionals provide superior client service balanced by steadfast independence. Our approach builds successful, long-term relationships and allows our clients to achieve multiple compliance objectives through a single third-party assessor.

About Silvaco
Silvaco is a provider of TCAD, EDA software, and SIP solutions that enable semiconductor design and digital twin modeling through AI software and innovation. Silvaco’s solutions are used for semiconductor and photonics processes, devices, and systems development across display, power devices, automotive, memory, high performance compute, foundries, photonics, internet of things, and 5G/6G mobile markets for complex SoC design. Silvaco is headquartered in Santa Clara, California, and has a global presence with offices located in North America, Europe, Brazil, China, Japan, Korea, Singapore, and Taiwan.

Safe Harbor Statement
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, each as amended, that are intended to be covered by the “safe harbor” provisions of those sections. Forward-looking statements give our current expectations and projections relating to our financial condition, results of operations, plans, objectives, future performance and business, and can be identified by the fact that they do not relate strictly to historical or current facts. Forward-looking statements are typically identified by the use of words such as “anticipate,” “expect,” “intend,” “plan,” “believe,” “estimate,” “potential,” “continue,” and similar expressions, although not all forward-looking statements contain these words. These statements are based on the Company’s current expectations and assumptions and are subject to risks, uncertainties, and other factors, including those described in the Company’s most recent Quarterly Report on Form 10-Q and other filings with the Securities and Exchange Commission. These factors may cause actual results to differ materially from those expressed or implied by forward-looking statements. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.

Media Contact
Tyler Weiland
press@silvaco.com

Investor Relations:
Greg McNiff
investors@silvaco.com

The MIL Network –

January 25, 2025

MIL-OSI: OTC Markets Group Announces Quarterly Index Performance and Rebalancing

Source: GlobeNewswire (MIL-OSI)

NEW YORK, Oct. 25, 2024 (GLOBE NEWSWIRE) — OTC Markets Group Inc. (OTCQX: OTCM), operator of regulated financial markets for 12,000 U.S. and global securities, today announced the third quarter 2024 performance and quarterly rebalancing of the OTCQX^® and OTCQB^® indexes, including the OTCQX Canada Index and the OTCQX Dividend Index.

The OTCQX Composite Index (.OTCQX), a benchmark for the overall OTCQX Best Market, was up 7.5% in Q3 2024. 32 new companies joined the Index while 47 companies were removed. Talen Energy Corp (TLN) went to NASDAQ on 7/10/2024. FirstSun Capital Bancorp (FSUN) went to NASDAQ on 7/12/2024. Collective Mining Ltd (CNL) went to NYSE MKT on 7/22/2024. Grayscale Ethereum Trust (ETHE) went to NYSE ARCA on 7/23/2024.

The OTCQX Billion+ Index (.OTCQXBIL), which tracks the performance of $1 billion-plus market cap OTCQX companies was up 7.7% in Q3 2024. 2 new companies joined the Index and 3 companies were removed.

The OTCQX Dividend Index (.OTCQXDIV), which tracks dividend-paying U.S. and international OTCQX companies, was up 7.6% in Q3 2024. 15 new companies joined the Index, while 13 companies were removed.

The OTCQX Banks Index (.OTCQXBK), comprised of OTCQX community and regional banks, was up 11.3% in Q3 2024. 9 companies joined the Index while 15 companies were removed.

The OTCQX International Index (.OTCQXINT), a benchmark for international OTCQX companies, was up 7.5% in Q3 2024. 13 new companies joined the Index while 29 companies were removed.

The OTCQX Canada Index (.OTCQXCAN), which tracks Canadian OTCQX companies index was up 9.5% in Q3 2024. 6 new companies joined the Index while 18 companies were removed.

The OTCQX U.S. Index (.OTCQXUS), a benchmark for U.S. OTCQX companies, was up 4.4% in Q3 2024. 19 new companies joined the Index while 19 companies were removed.

The OTCQX Cannabis Index (.OTCQXMJ), a benchmark for cannabis companies, was up slightly 0.8% in Q3 2024. 1 new company joined the Index while 3 companies were removed.

The OTCQB Venture Index (.OTCQB), which tracks the overall OTCQB Venture Market, was up 4.0% in Q3 2024. 74 companies were added to the index while 107 companies were removed. RDE Inc (RSTN) went to NASDAQ on 8/7/2024.

For a list of all index additions and deletions, visit
https://www.otcmarkets.com/files/Quarterly_Index_Constituent_Changes.pdf

All indexes are market capitalization-weighted and adjusted on a quarterly basis for additions and share changes over 5% during the months of March, June, September and December. In the case of ADRs, the DR ratio is considered. Dividends are re-invested as of the close of business the day before the ex-dividend date.

The OTCQX Composite Index, OTCQX Billion+ Index, OTCQX Dividend Index, OTCQX International Index, OTCQX U.S. Index, OTCQX Banks Index, OTCQX Cannabis Index, and OTCQB Venture Index have minimum liquidity screens to ensure tradability.

All index data is priced in real-time and is available on the OTC Markets Group website, www.otcmarkets.com, and via major financial data distributors and websites, including Bloomberg, Reuters and FT.com.

Past performance does not guarantee future results. Investors cannot invest directly in any of these indexes.

OTC Markets Group Inc. provides no advice, recommendation or endorsement with respect to any company or securities. Nothing herein shall be deemed to constitute an offer to sell or a solicitation of an offer to buy securities.

About OTC Markets Group Inc.
OTC Markets Group Inc. (OTCQX: OTCM) operates regulated markets for trading 12,000 U.S. and international securities. Our data-driven disclosure standards form the foundation of our three public markets: OTCQX^® Best Market, OTCQB^® Venture Market and Pink^® Open Market.

Our OTC Link^® Alternative Trading Systems (ATSs) provide critical market infrastructure that broker-dealers rely on to facilitate trading. Our innovative model offers companies more efficient access to the U.S. financial markets.

OTC Link ATS, OTC Link ECN and OTC Link NQB are each an SEC regulated ATS, operated by OTC Link LLC, a FINRA and SEC registered broker-dealer, member SIPC.

To learn more about how we create better informed and more efficient markets, visit www.otcmarkets.com.

Subscribe to the OTC Markets RSS Feed

Media Contact:
OTC Markets Group Inc., +1 (212) 896-4428, media@otcmarkets.com

The MIL Network –

January 25, 2025

MIL-OSI: Lakeland Financial Reports Third Quarter Net Income of $23.3 Million, Organic Loan Growth of 5% and Organic Deposit Growth of 4%

Source: GlobeNewswire (MIL-OSI)

WARSAW, Ind., Oct. 25, 2024 (GLOBE NEWSWIRE) — Lakeland Financial Corporation (Nasdaq Global Select/LKFN), parent company of Lake City Bank, today reported net income of $23.3 million for the three months ended September 30, 2024, which represents a decrease of $1.9 million, or 8%, compared with net income of $25.3 million for the three months ended September 30, 2023. Diluted earnings per share were $0.91 for the third quarter of 2024 and decreased $0.07, or 7%, compared to $0.98 for the third quarter of 2023. On a linked quarter basis, net income increased $789,000, or 3%, from second quarter 2024 net income of $22.5 million. Diluted earnings per share increased $0.04, or 5%, from $0.87 on a linked quarter basis.

Pretax pre-provision earnings, which is a non-GAAP measure, were $30.8 million for the three months ended September 30, 2024, an increase of $666,000, or 2%, compared to $30.1 million for the three months ended September 30, 2023. On a linked quarter basis, pretax pre-provision earnings decreased $4.6 million, or 13%, compared to $35.4 million for the second quarter of 2024.

The company further reported net income of $69.3 million for the nine months ended September 30, 2024, versus $64.1 million for the comparable period of 2023, an increase of $5.1 million, or 8%. Diluted earnings per share also increased 8% to $2.69 for the nine months ended September 30, 2024, versus $2.49 for the comparable period of 2023. Pretax pre-provision earnings were $95.5 million for the nine months ended September 30, 2024, an increase of $15.7 million, or 20%, compared to $79.8 million for the nine months ended September 30, 2023.

“Our long-term track record of serving our clients and communities through organic loan and deposit growth continued during the third quarter of 2024 and we are pleased with our performance for the quarter,” commented David M. Findlay, Chairman and Chief Executive Officer. “We continue to be encouraged by the strength of economic activity in our Indiana markets and are really well positioned to take advantage of the ongoing growth and investment we are seeing throughout our footprint.”

Quarterly Financial Performance

Third Quarter 2024 versus Third Quarter 2023 highlights:

Tangible book value per share grew by $5.47, or 25%, to $27.07
Total risk-based capital ratio of 15.75%, compared to 15.13%
Tangible capital ratio improved to 10.47%, compared to 8.62%
Average loans grew by $214.6 million, or 4%, to $5.06 billion
Core deposit growth of $261.2 million, or 5%
Return on average equity of 13.85%, compared to 16.91%
Return on average assets of 1.39%, compared to 1.54%
Net interest margin of 3.16% versus 3.21%
Noninterest income growth of $1.1 million, or 10%
Revenue improved by 3% to $61.2 million
Noninterest expense increased by $1.3 million, or 4%
Provision expense of $3.1 million, compared to $400,000
Net charge offs of $143,000 versus $353,000
Watch list loans as a percentage of total loans increased to 5.27% from 3.83%

Third Quarter 2024 versus Second Quarter 2024 highlights:

Tangible book value per share grew by $1.73, or 7%
Total risk-based capital ratio improved to 15.75% from 15.53%
Tangible capital ratio of 10.47%, compared to 9.91%
Core deposits increased by $138.3 million, or 2%
Average loans grew by $29.5 million, or 1%, to $5.06 billion
Net interest margin of 3.16% versus 3.17%
Return on average equity of 13.85%, compared to 14.19%
Return on average assets of 1.39%, compared to 1.37%
Noninterest income decreased by $8.5 million, or 42%
Noninterest expense decreased by $2.9 million, or 9%
Provision expense of $3.1 million compared to $8.5 million
Watch list loans as a percentage of total loans improved to 5.27% from 5.31%

Capital Strength

The company’s total capital as a percentage of risk-weighted assets improved to 15.75% at September 30, 2024, compared to 15.13% at September 30, 2023 and 15.53% at June 30, 2024. These capital levels significantly exceeded the 10.00% regulatory threshold required to be characterized as “well capitalized” and reflect a strengthening of the company’s strong capital base.

The company’s tangible common equity to tangible assets ratio, which is a non-GAAP financial measure, improved to 10.47% at September 30, 2024, compared to 8.62% at September 30, 2023 and 9.91% at June 30, 2024. Unrealized losses from available-for-sale investment securities improved to $154.5 million at September 30, 2024, compared to $266.4 million at September 30, 2023 and $194.9 million at June 30, 2024. When 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 12.29% at September 30, 2024, compared to 11.74% at September 30, 2023 and 12.18% at June 30, 2024.

Kristin L. Pruitt, President, commented, “Our capital structure is a critical strength of our balance sheet, as it has been for a very long time. This exceptionally strong capital retention supports our plans for continued organic growth as well as total return to shareholders through our common stock dividend.”

As announced on October 8, 2024, the board of directors approved a cash dividend for the third quarter of $0.48 per share, payable on November 5, 2024, to shareholders of record as of October 25, 2024. The third quarter dividend per share represents a 4% increase from the $0.46 dividend per share paid for the third quarter of 2023.

Loan Portfolio

Average total loans of $5.06 billion in the third quarter of 2024, increased $214.6 million, or 4%, from $4.85 billion for the third quarter of 2023, and increased $29.5 million, or 1%, from $5.03 billion for the second quarter of 2024.

Average total loans for the nine months ended September 30, 2024 were $5.02 billion, an increase of $232.1 million, or 5%, from $4.79 billion for the nine months ended September 30, 2023.

“Loan growth has been steady in 2024 and has been funded through healthy deposit growth. We are seeing increased activity with our manufacturing clients as we experienced $91 million, or 6%, of commercial and industrial loan growth as compared to September 30, 2023. In addition, commercial real estate loan balances increased as our relationships with in-market long-term clients expanded with projects moving forward supported by good demand and high-quality developments. As a result, commercial real estate and multi-family loans grew $128 million, or 5% year over year,” noted Findlay. “Our retail and consumer lending teams have also experienced healthy growth of $54 million or 9% in the last year. Our highly diverse loan portfolio growth continues, and it is gratifying to see both commercial and consumer lending positively impacting our balance sheet growth.”

Total loans, net of deferred loan fees, increased by $211.0 million, or 4%, from $4.87 billion as of September 30, 2023 to $5.08 billion as of September 30, 2024. The increase in loans occurred across much of the portfolio with our commercial real estate and multi-family residential loan portfolio growing by $127.4 million, or 5%, our commercial and industrial loan portfolio growing by $90.7 million, or 6%, and our consumer 1-4 family mortgage loans portfolio growing by $36.3 million, or 8%. These increases were offset by a decrease to total agribusiness and agricultural loans of $22.1 million, or 6%, and a decrease to other commercial loans of $31.6 million, or 25%. On a linked quarter basis, total loans net of deferred loan fees increased by $29.6 million, or 1%, from $5.05 billion at June 30, 2024. The linked quarter increase was primarily a result of growth in construction and land development loans of $70.9 million, or 11%, and growth in total consumer loans of $21.7 million, or 4%. Offsetting this growth were declines in total commercial and industrial loans of $33.4 million, or 2%, and in owner occupied loans of $19.6 million, or 2%.

Commercial loan originations for the third quarter included approximately $316.0 million in loan originations, offset by approximately $308.0 million in commercial loan pay downs. Line of credit usage increased to 41% as of September 30, 2024, compared to 39% at September 30, 2023 and was unchanged from 41% as of June 30, 2024. Total available lines of credit contracted by $69.0 million, or 1%, as compared to a year ago, and line usage increased by $96.0 million, or 5%, 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 $102.6 million for this sector represented 2% of total loans at September 30, 2024, an increase of $1.4 million, or 1%, from June 30, 2024. Commercial real estate loans secured by multi-family residential properties and secured by non-farm non-residential properties were approximately 210% of total risk-based capital at September 30, 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)

	September 30, 2024				June 30, 2024				September 30, 2023
Retail	$	1,709,899	29.3	%	$	1,724,777	29.9	%	$	1,761,235	31.1	%
Commercial		2,304,041	39.5			2,150,127	37.3			2,154,853	38.1
Public funds		1,726,869	29.6			1,727,593	30.0			1,563,557	27.7
Core deposits		5,740,809	98.4			5,602,497	97.2			5,479,645	96.9
Brokered deposits		96,504	1.6			161,040	2.8			177,430	3.1
Total	$	5,837,313	100.0	%	$	5,763,537	100.0	%	$	5,657,075	100.0	%

Total deposits increased $180.2 million, or 3%, from $5.66 billion as of September 30, 2023 to $5.84 billion as of September 30, 2024. The increase in total deposits was driven by an increase in core deposits (which excludes brokered deposits) of $261.2 million, or 5%. Total core deposits at September 30, 2024 were $5.74 billion and represented 98% of total deposits, as compared to $5.48 billion and 97% of total deposits at September 30, 2023. Brokered deposits were $96.5 million, or 2% of total deposits, at September 30, 2024, compared to $177.4 million, or 3% of total deposits, at September 30, 2023.

The change in composition of core deposits since September 30, 2023 reflects growth in commercial deposits and public funds deposits. As of September 30, 2024, commercial deposits as a percentage of total deposits increased to 39%, from 38%, public fund deposits as a percentage of total deposits increased to 30%, from 28%, and retail deposits as a percentage of total deposits contracted to 29%, from 31%, compared to balances a year ago. Commercial deposits grew annually by $149.2 million, or 7%, to $2.30 billion. Public funds deposits grew annually by $163.3 million, or 10%, to $1.73 billion. Retail deposits contracted annually by $51.3 million, or 3%, to $1.71 billion. Growth in public funds was positively impacted by the addition of a new public funds customer in the Lake City Bank footprint which included the addition of its operating accounts. Net retail outflows since September 30, 2023, reflect the continued utilization of deposits from peak savings levels during 2021.

Findlay noted, “We are pleased with annual core deposit growth of 5% or $261 million in 2024. The deposit mix shift that began in early 2023 has stabilized with growth in noninterest bearing deposits during the third quarter of 2024. Our retail banking team has done a terrific job continuing to drive market share growth in our core Indiana markets and we are pleased with our market share performance in all of our Indiana markets. Core deposit gathering is a strategic focus, continues to improve and today represents 98% of total deposits, up from 97% a year ago.”

On a linked quarter basis, total deposits increased $73.8 million, or 1%, from $5.76 billion at June 30, 2024 to $5.84 billion at September 30, 2024. Core deposits increased by $138.3 million, or 2%, while brokered deposits decreased by $64.5 million, or 40%. Linked quarter growth in core deposits resulted from growth in commercial deposits of $153.9 million, or 7%. Offsetting the increase in commercial deposits was contraction in retail deposits of $14.9 million, or 1%, and contraction in public funds deposits of $724,000, or less than 1%.

Average total deposits were $5.88 billion for the third quarter of 2024, an increase of $307.7 million, or 6%, from $5.57 billion for the third quarter of 2023. Average interest-bearing deposits drove the increase to average total deposits and increased by $481.2 million, or 12%. Contributing to the overall growth of interest-bearing deposits was an increase to average interest-bearing checking accounts of $422.1 million, or 15%, and growth in average time deposits of $108.4 million, or 11%. Offsetting these increases was a decrease to average savings deposits of $49.4 million, or 15%. Average noninterest-bearing demand deposits decreased by $173.5 million, or 12%.

On a linked quarter basis, average total deposits increased by $60.2 million, or 1%, from $5.82 billion for the second quarter of 2024 to $5.88 billion for the third quarter of 2024. Average interest-bearing deposits drove the increase to total average deposits, which increased by $46.9 million, or 1%. Contributing to the overall growth of interest-bearing deposits was an increase to total average time deposits of $35.5 million, or 3%, and an increase to interest bearing checking accounts of $20.4 million, or 1%. Offsetting these increases was a decrease to average savings deposits of $8.9 million, or 3%. Average noninterest-bearing demand deposits increased by $13.3 million, or 1%.

Checking account trends compared to September 30, 2023, include growth of $181.7 million, or 14%, in aggregate public fund checking account balances and growth of $144.7 million, or 7%, in aggregate commercial checking account balances, and a contraction of $2.5 million, or less than 1%, in aggregate retail checking account balances. The number of accounts has also grown for all three segments, with growth of 14% for public funds accounts, 3% for commercial accounts and 2% for retail accounts.

Deposits not covered by FDIC deposit insurance as a percentage of total deposits were 61% as of September 30, 2024, compared to 54% at both June 30, 2024 and September 30, 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 September 30, 2024, compared to 29% at June 30, 2024, and 28% as of September 30, 2023. As of September 30, 2024, 98% of deposit accounts had deposit balances less than $250,000.

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 September 30, 2024, the company had access to an aggregate of $3.7 billion in liquidity from these sources, compared to $3.3 billion at both September 30, 2023 and June 30, 2024. Utilization from these sources totaled $96.5 million at September 30, 2024, compared to $267.4 million at September 30, 2023 and $161.0 million at June 30, 2024. Core deposits have historically represented, and currently represent, the primary funding resource of the bank at 98% of total deposits and purchased funds.

Investment Portfolio Overview

Total investment securities were $1.15 billion at September 30, 2024, reflecting an increase of $42.8 million, or 4%, as compared to $1.11 billion at September 30, 2023. On a linked quarter basis, investment securities increased $24.0 million, or 2%, due primarily to improvement in the fair market value of available-for-sale securities of $40.4 million and partially offset by portfolio cash flows of $15.1 million. Investment securities represented 17% of total assets on September 30, 2024, September 30, 2023 and June 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 portfolio growth and for general liquidity purposes. Tax equivalent adjusted effective duration for the investment portfolio was 6.3 years at September 30, 2024, compared to 6.7 years and 6.5 years at September 30, 2023 and June 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 increased rate environment. The company anticipates receiving principal and interest cash flows of approximately $26.4 million throughout the remainder of 2024 and $104.7 million during 2025 from its investment securities portfolio.

Net Interest Margin

Net interest margin was 3.16% for the third quarter of 2024, representing a 5 basis point decrease from 3.21% for the third quarter of 2023. Earning assets yields increased by 23 basis points to 6.04% for the third quarter of 2024 from 5.81% for the third quarter of 2023. The increase in earning asset yields was offset by an increase in the company’s funding costs of 28 basis points as interest expense as a percentage of average earning assets increased to 2.88% for the third quarter of 2024 from 2.60% for the third quarter of 2023. Increased industry competition for deposits has driven funding costs as a percentage of average earning assets to rise more aggressively than earning asset yields since the third quarter of 2023. Notably, the deposit mix shift from noninterest bearing deposits to interest bearing deposits encountered by the company during the recent monetary tightening cycle has stabilized with noninterest bearing deposits representing 22% of total deposits at September 30, 2024, compared to 24% at September 30, 2023 and 21% at June 30, 2024. In 2019, prior to the pandemic and the related stimulus plans, the ratio of noninterest bearing deposits to total deposits stood at 24% as of December 31, 2019.

Linked quarter net interest margin contracted by 1 basis point to 3.16% for the third quarter of 2024, compared to 3.17% for the second quarter of 2024. Average earning asset yields decreased by 3 basis points from 6.07% during the second quarter of 2024 to 6.04% during the third quarter of 2024 and were partially offset by a 2 basis point decrease in interest expense as a percentage of average earning assets from 2.90% to 2.88%.

“Net interest margin has stabilized and has responded well to the first federal fund rate decrease of 50 basis points late in the third quarter. The bank’s net interest margin expanded by 4 basis points on a linked quarter basis, excluding the impact of increased nonperforming loans. In addition, noninterest bearing deposits grew modestly during the quarter as compared to June 30, 2024. While our balance sheet continues to be assets sensitive, we are encouraged by the impact of the Federal Reserve Bank rate action,” commented Lisa M. O’Neill, Executive Vice President and Chief Financial Officer.

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, compared to 61% during the prior tightening cycle from 2016 through 2019. 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, compared to 45% during the prior tightening cycle.

Net interest income was $49.3 million for the third quarter of 2024, representing an increase of $880,000, or 2%, as compared to $48.4 million for the third quarter of 2023. On a linked quarter basis, net interest income increased $977,000, or 2%, from $48.3 million for the second quarter of 2024. Net interest income decreased by $3.5 million, or 2%, from $148.4 million for the nine months ended September 30, 2023, to $145.0 million for the nine months ended September 30, 2024.

Asset Quality

The company recorded a provision for credit losses of $3.1 million in the third quarter of 2024, an increase of $2.7 million, as compared to $400,000 in the third quarter of 2023. On a linked quarter basis, the provision expense decreased by $5.4 million, from $8.5 million for the second quarter of 2024. The elevated provision expense during the second quarter of 2024 was primarily attributable to an increase in the specific reserve allocation from the downgrade of a $43.3 million credit to an industrial company in Northern Indiana in conjunction with the relationship’s placement on nonperforming status. Additional specific reserves of $4.7 million were allocated to this credit during the third quarter of 2024.

The ratio of allowance for credit losses to total loans was 1.65% at September 30, 2024, up from 1.48% at September 30, 2023, and 1.60% at June 30, 2024. Net charge offs in the third quarter of 2024 were $143,000, compared to $353,000 in the third quarter of 2023 and $949,000 during the linked second quarter of 2024. Annualized net charge offs to average loans were 0.01% for the third quarter of 2024, compared to 0.03% for the third quarter of 2023 and 0.08% for the linked second quarter of 2024.

Nonperforming assets increased $41.3 million, or 247%, to $58.1 million as of September 30, 2024, versus $16.7 million as of September 30, 2023. On a linked quarter basis, nonperforming assets increased $427,000, or 1%, compared to $57.6 million as of June 30, 2024. The ratio of nonperforming assets to total assets at September 30, 2024 increased to 0.87% from 0.26% at September 30, 2023 and declined from 0.88% at June 30, 2024. The increase in nonperforming assets was primarily driven by the industrial borrower relationship referenced above.

Total individually analyzed and watch list loans increased by $81.2 million, or 44%, to $267.6 million as of September 30, 2024, versus $186.4 million as of September 30, 2023. On a linked quarter basis, total individually analyzed and watch list loans decreased by $687,000, or less than 1%, from $268.3 million at June 30, 2024. Watch list loans as a percentage of total loans increased by 144 basis points to 5.27% at September 30, 2024, compared to 3.83% at September 30, 2023, and decreased by 4 basis points from 5.31% at June 30, 2024. The increase in individually analyzed and watch list loans between September 30, 2024 and September 30, 2023 was primarily driven by downgrades to four commercial relationships individually greater than $10.0 million, net of paydowns, payoffs and upgrades to other relationships.

“Overall, we continue to observe stable economic conditions in our Lake City Bank footprint. The commencement of the Federal Reserve Bank easing cycle will provide some interest relief to variable rate borrowers, in particular for commercial real estate clients. We believe that loan demand could accelerate for our commercial and industrial sector if the Federal Reserve Bank takes additional easing actions,” stated Findlay.

Noninterest Income

The company’s noninterest income increased $1.1 million, or 10%, to $11.9 million for the third quarter of 2024, compared to $10.8 million for the third quarter of 2023. Wealth advisory fees increased $420,000, or 18%, driven by growth in customers and favorable market performance. Other income increased $429,000, or 72%, primarily from an improvement to income from the company’s limited partnership investments. Adjusted core noninterest income, a non-GAAP financial measure that excludes the effects of certain non-routine operating events, was $11.9 million for the third quarter of 2024, an increase of $1.1 million, or 10%, compared to $10.8 million for the third quarter of 2023.

Noninterest income for the third quarter of 2024 decreased by $8.5 million, or 42%, on a linked quarter basis from $20.4 million during the second quarter of 2024. Second quarter noninterest income benefited from the net gain recognized on the exchange and partial redemption of the company’s Visa shares of $9.0 million. The company’s remaining Visa Class C shares were redeemed during the third quarter of 2024 for a net loss of $15,000. Offsetting this linked quarter decrease was an increase to other income of $333,000, or 48%, and an increase to bank owned life insurance income of $178,000, or 20%. Adjusted core noninterest income increased by $504,000, or 4%, compared to $11.4 million for the linked second quarter of 2024.

Noninterest income increased by $12.3 million, or 38%, to $45.0 million for the nine months ended September 30, 2024, compared to $32.7 million for the prior year nine-month period. The increase in noninterest income was driven primarily by the net gain on Visa shares of $9.0 million. Additionally, other income increased $2.0 million, or 105%, wealth advisory fees increased $1.0 million, or 15%, bank owned life insurance income increased $601,000, or 25%, and mortgage banking income increased $252,000. Other income increased primarily due to improved performance from limited partnership investment income and the receipt of a $1.0 million insurance recovery related to the 2023 wire fraud loss. Improved market performance of the company’s variable bank owned life insurance policies, which are tied to the performance of the equity markets, drove the increase to bank owned life insurance income. Mortgage banking income increased from pipeline expansion and a related positive impact to mortgage rate lock income. Offsetting these increases was a decrease to interest rate swap fee income of $794,000, or 100%, due to no new swap fee activity during the period. Adjusted core noninterest income for the nine months ended September 30, 2024 was $35.0 million, an increase of $2.3 million, or 7%, compared to $32.7 million for the nine months ended September 30, 2023.

“While not robust, we are pleased to report that revenue growth for the nine months ended September 30, 2024, was $8.9 million, or 5% as compared to the same period in 2023. Noninterest income, and in particular, wealth advisory fees are positively impacting the improvement in revenue,” stated Findlay. “It is rewarding to see this important part of the business growing and positively impacting revenue growth at the bank.”

Noninterest Expense

Noninterest expense increased $1.3 million, or 4%, to $30.4 million for the third quarter of 2024, compared to $29.1 million during the third quarter of 2023. Driving the third quarter 2024 increase to noninterest expense were increases to salaries and benefits expense of $499,000, or 3%, data processing fees and supplies expense of $389,000, or 12%, and corporate and business development expense of $168,000, or 14%, as compared to the third quarter of 2023. Adjusted core noninterest expense, a non-GAAP financial measure that excludes the effects of certain non-routine operating events, was $30.4 million for the third quarter of 2024, an increase of $1.3 million, or 4%, compared to $29.1 million for the third quarter of 2023.

On a linked quarter basis, noninterest expense decreased by $2.9 million, or 9%, from $33.3 million during the second quarter of 2024. Other expense decreased by $3.6 million, or 58%, primarily due to the recognition of a $4.5 million legal accrual in the second quarter 2024. Offsetting the decrease to noninterest expense was an increase in salaries and employee benefits of $318,000, or 2%. Adjusted core noninterest expense increased by $1.6 million, or 6%, compared to $28.8 million for the linked second quarter of 2024.

Noninterest expense decreased by $6.8 million, or 7%, for the nine months ended September 30, 2024 to $94.4 million compared to $101.3 million for the nine months ended September 30, 2023. The $18.1 million wire fraud loss recorded during the second quarter of 2023 was the primary driver of the decrease between these periods. Offsetting this decrease were increases to salaries and employee benefits expense of $6.1 million, or 14%, other expense of $3.2 million, or 41%, data processing fees of $1.1 million, or 11%, and professional fees of $391,000, or 6%. The increase to salaries and benefits expense resulted primarily from increases to salaries and wages of $2.3 million, performance-based incentive compensation of $2.2 million, health insurance expense of $695,000 and variable deferred compensation related to the company’s variable bank owned life insurance of $536,000. The increase for data processing fees resulted from continued investment in customer-facing and operational technology solutions. Professional fees increased due to higher costs to implement technology solutions. Adjusted core noninterest expense was $89.9 million for the nine months ended September 30, 2024, an increase of $4.8 million, or 6%, from $85.1 million recorded during the comparable period of 2023.

The company’s efficiency ratio was 49.7% for the third quarter of 2024, compared to 49.1% for the third quarter of 2023 and 48.5% for the linked second quarter of 2024. The company’s adjusted core efficiency ratio, a non-GAAP measure that excludes the impact of certain non-routine operating events, was 49.7% for the third quarter of 2024, compared to 48.2% for the linked second quarter of 2024 and 49.1% for the third quarter of 2023.

The company’s efficiency ratio was 49.7% for the nine months ended September 30, 2024, compared to 55.9% for the comparable period in 2023. The company’s adjusted core efficiency ratio was 50.0% for the nine months ended September 30, 2024, compared to 47.0% for the comparable period in 2023.

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 $6.6 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 THIRD QUARTER 2024 FINANCIAL HIGHLIGHTS

	Three Months Ended									Nine Months Ended
(Unaudited – Dollars in thousands, except per share data)	September 30,			June 30,			September 30,			September 30,			September 30,
END OF PERIOD BALANCES	2024			2024			2023			2024			2023
Assets	$	6,645,371		$	6,568,807		$	6,426,844		$	6,645,371		$	6,426,844
Investments		1,147,806			1,123,803			1,105,026			1,147,806			1,105,026
Loans		5,081,990			5,052,341			4,870,965			5,081,990			4,870,965
Allowance for Credit Losses		83,627			80,711			72,105			83,627			72,105
Deposits		5,837,313			5,763,537			5,657,075			5,837,313			5,657,075
Brokered Deposits		96,504			161,040			177,430			96,504			177,430
Core Deposits (1)		5,740,809			5,602,497			5,479,645			5,740,809			5,479,645
Total Equity		699,181			654,590			557,184			699,181			557,184
Goodwill Net of Deferred Tax Assets		3,803			3,803			3,803			3,803			3,803
Tangible Common Equity (2)		695,378			650,787			553,381			695,378			553,381
Adjusted Tangible Common Equity (2)		832,813			820,534			780,756			832,813			780,756
AVERAGE BALANCES
Total Assets	$	6,656,464		$	6,642,954		$	6,498,984		$	6,618,102		$	6,448,316
Earning Assets		6,329,287			6,295,281			6,145,894			6,280,677			6,103,538
Investments		1,128,705			1,118,776			1,171,426			1,135,304			1,210,540
Loans		5,064,348			5,034,851			4,849,758			5,023,556			4,791,431
Total Deposits		5,880,177			5,819,962			5,572,466			5,777,234			5,537,379
Interest Bearing Deposits		4,635,993			4,589,059			4,154,825			4,527,524			4,028,087
Interest Bearing Liabilities		4,649,745			4,666,136			4,382,380			4,616,129			4,246,648
Total Equity		670,160			638,999			592,510			651,457			594,063
INCOME STATEMENT DATA
Net Interest Income	$	49,273		$	48,296		$	48,393		$	144,985		$	148,436
Net Interest Income-Fully Tax Equivalent		50,383			49,493			49,712			148,558			152,436
Provision for Credit Losses		3,059			8,480			400			13,059			5,550
Noninterest Income		11,917			20,439			10,835			44,968			32,650
Noninterest Expense		30,393			33,333			29,097			94,431			101,265
Net Income		23,338			22,549			25,252			69,288			64,141
Pretax Pre-Provision Earnings (2)		30,797			35,402			30,131			95,522			79,821
PER SHARE DATA
Basic Net Income Per Common Share	$	0.91		$	0.88		$	0.99		$	2.70		$	2.51
Diluted Net Income Per Common Share		0.91			0.87			0.98			2.69			2.49
Cash Dividends Declared Per Common Share		0.48			0.48			0.46			1.44			1.38
Dividend Payout		52.75	%		55.17	%		46.94	%		53.53	%		36.95	%
Book Value Per Common Share (equity per share issued)	$	27.22		$	25.49		$	21.75		$	27.22		$	21.75
Tangible Book Value Per Common Share (2)		27.07			25.34			21.60			27.07			21.60
Market Value – High	$	72.25		$	66.62		$	57.00		$	73.22		$	77.07
Market Value – Low		57.45			57.59			44.46			57.45			43.05


	Three Months Ended									Nine Months Ended
(Unaudited – Dollars in thousands, except per share data)	September 30,			June 30,			September 30,			September 30,			September 30,
PER SHARE DATA (continued)	2024			2024			2023			2024			2023
Basic Weighted Average Common Shares Outstanding		25,684,407			25,678,231			25,613,456			25,673,275			25,601,493
Diluted Weighted Average Common Shares Outstanding		25,767,739			25,742,871			25,693,535			25,754,357			25,709,841
KEY RATIOS
Return on Average Assets		1.39	%		1.37	%		1.54	%		1.40	%		1.33	%
Return on Average Total Equity		13.85			14.19			16.91			14.21			14.44
Average Equity to Average Assets		10.07			9.62			9.12			9.84			9.21
Net Interest Margin		3.16			3.17			3.21			3.16			3.33
Efficiency (Noninterest Expense/Net Interest Income plus Noninterest Income)		49.67			48.49			49.13			49.71			55.92
Loans to Deposits		87.06			87.66			86.10			87.06			86.10
Investment Securities to Total Assets		17.27			17.11			17.19			17.27			17.19
Tier 1 Leverage (3)		12.18			11.98			11.64			12.18			11.64
Tier 1 Risk-Based Capital (3)		14.50			14.28			13.88			14.50			13.88
Common Equity Tier 1 (CET1) (3)		14.50			14.28			13.88			14.50			13.88
Total Capital (3)		15.75			15.53			15.13			15.75			15.13
Tangible Capital (2)		10.47			9.91			8.62			10.47			8.62
Adjusted Tangible Capital (2)		12.29			12.18			11.74			12.29			11.74
ASSET QUALITY
Loans Past Due 30 – 89 Days	$	829		$	1,615		$	1,782		$	829		$	1,782
Loans Past Due 90 Days or More		95			26			19			95			19
Nonaccrual Loans		57,551			57,124			16,290			57,551			16,290
Nonperforming Loans		57,646			57,150			16,309			57,646			16,309
Other Real Estate Owned		384			384			384			384			384
Other Nonperforming Assets		21			90			45			21			45
Total Nonperforming Assets		58,051			57,624			16,738			58,051			16,738
Individually Analyzed Loans		77,654			78,533			16,739			77,654			16,739
Non-Individually Analyzed Watch List Loans		189,918			189,726			169,621			189,918			169,621
Total Individually Analyzed and Watch List Loans		267,572			268,259			186,360			267,572			186,360
Gross Charge Offs		231			1,076			480			1,811			6,766
Recoveries		88			127			127			407			715
Net Charge Offs/(Recoveries)		143			949			353			1,404			6,051
Net Charge Offs/(Recoveries) to Average Loans		0.01	%		0.08	%		0.03	%		0.04	%		0.17	%
Credit Loss Reserve to Loans		1.65			1.60			1.48			1.65			1.48
Credit Loss Reserve to Nonperforming Loans		145.07			141.23			442.11			145.07			442.11
Nonperforming Loans to Loans		1.13			1.13			0.33			1.13			0.33
Nonperforming Assets to Assets		0.87			0.88			0.26			0.87			0.26
Total Individually Analyzed and Watch List Loans to Total Loans		5.27	%		5.31	%		3.83	%		5.27	%		3.83	%


	Three Months Ended									Nine Months Ended
(Unaudited – Dollars in thousands, except per share data)	September 30,			June 30,			September 30,			September 30,			September 30,
PER SHARE DATA (continued)	2024			2024			2023			2024			2023
OTHER DATA
Full Time Equivalent Employees		639			653			614			639			614
Offices		54			53			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 September 30, 2024 are preliminary until the Call Report is filed.


CONSOLIDATED BALANCE SHEETS (in thousands, except share data)
	September 30, 2024			December 31, 2023
	(Unaudited)
ASSETS
Cash and due from banks	$	86,785		$	70,451
Short-term investments		73,405			81,373
Total cash and cash equivalents		160,190			151,824

Securities available-for-sale, at fair value		1,016,649			1,051,728
Securities held-to-maturity, at amortized cost (fair value of $118,861 and $119,215, respectively)		131,157			129,918
Real estate mortgage loans held-for-sale		3,148			1,158

Loans, net of allowance for credit losses of $83,627 and $71,972		4,998,363			4,844,562

Land, premises and equipment, net		59,987			57,899
Bank owned life insurance		112,075			109,114
Federal Reserve and Federal Home Loan Bank stock		21,420			21,420
Accrued interest receivable		28,471			30,011
Goodwill		4,970			4,970
Other assets		108,941			121,425
Total assets	$	6,645,371		$	6,524,029


LIABILITIES
Noninterest bearing deposits	$	1,284,527		$	1,353,477
Interest bearing deposits		4,552,786			4,367,048
Total deposits		5,837,313			5,720,525

Federal Funds purchased		30,000			0
Federal Home Loan Bank advances		0			50,000
Total borrowings		30,000			50,000

Accrued interest payable		14,784			20,893
Other liabilities		64,093			82,818
Total liabilities		5,946,190			5,874,236

STOCKHOLDERS’ EQUITY
Common stock: 90,000,000 shares authorized, no par value
25,974,017 shares issued and 25,506,084 outstanding as of September 30, 2024
25,903,686 shares issued and 25,430,566 outstanding as of December 31, 2023		128,346			127,692
Retained earnings		724,550			692,760
Accumulated other comprehensive income (loss)		(138,136	)		(155,195	)
Treasury stock, at cost (467,933 shares and 473,120 shares as of September 30, 2024 and December 31, 2023, respectively)		(15,668	)		(15,553	)
Total stockholders’ equity		699,092			649,704
Noncontrolling interest		89			89
Total equity		699,181			649,793
Total liabilities and equity	$	6,645,371		$	6,524,029


CONSOLIDATED STATEMENTS OF INCOME (unaudited – in thousands, except share and per share data)

	Three Months Ended September 30,						Nine Months Ended September 30,
		2024			2023			2024			2023
NET INTEREST INCOME
Interest and fees on loans
Taxable	$	86,118		$	78,910		$	252,386		$	223,499
Tax exempt		298			1,008			1,830			2,869
Interest and dividends on securities
Taxable		2,908			3,077			9,051			9,966
Tax exempt		3,921			4,023			11,800			12,387
Other interest income		1,773			1,605			4,721			3,604
Total interest income		95,018			88,623			279,788			252,325

Interest on deposits		45,556			37,108			131,083			95,637
Interest on short-term borrowings		189			3,122			3,720			8,252
Total interest expense		45,745			40,230			134,803			103,889

NET INTEREST INCOME		49,273			48,393			144,985			148,436

Provision for credit losses		3,059			400			13,059			5,550

NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES		46,214			47,993			131,926			142,886

NONINTEREST INCOME
Wealth advisory fees		2,718			2,298			7,770			6,769
Investment brokerage fees		438			408			1,438			1,370
Service charges on deposit accounts		2,835			2,735			8,332			8,091
Loan and service fees		2,955			2,934			8,855			8,782
Merchant and interchange fee income		898			938			2,653			2,744
Bank owned life insurance income		1,068			1,009			2,994			2,393
Interest rate swap fee income		0			0			0			794
Mortgage banking income (loss)		(7	)		(50	)		68			(184	)
Net securities gains (losses)		0			(35	)		(46	)		(16	)
Net gain (loss) on Visa shares		(15	)		0			8,996			0
Other income		1,027			598			3,908			1,907
Total noninterest income		11,917			10,835			44,968			32,650

NONINTEREST EXPENSE
Salaries and employee benefits		16,476			15,977			49,467			43,414
Net occupancy expense		1,721			1,621			5,159			4,874
Equipment costs		1,452			1,325			4,207			4,189
Data processing fees and supplies		3,768			3,379			11,419			10,305
Corporate and business development		1,369			1,201			4,015			3,930
FDIC insurance and other regulatory fees		966			871			2,571			2,469
Professional fees		2,089			2,114			6,675			6,284
Wire fraud loss		0			0			0			18,058
Other expense		2,552			2,609			10,918			7,742
Total noninterest expense		30,393			29,097			94,431			101,265

INCOME BEFORE INCOME TAX EXPENSE		27,738			29,731			82,463			74,271
Income tax expense		4,400			4,479			13,175			10,130
NET INCOME	$	23,338		$	25,252		$	69,288		$	64,141

BASIC WEIGHTED AVERAGE COMMON SHARES		25,684,407			25,613,456			25,673,275			25,601,493

BASIC EARNINGS PER COMMON SHARE	$	0.91		$	0.99		$	2.70		$	2.51

DILUTED WEIGHTED AVERAGE COMMON SHARES		25,767,739			25,693,535			25,754,357			25,709,841

DILUTED EARNINGS PER COMMON SHARE	$	0.91		$	0.98		$	2.69		$	2.49


LAKELAND FINANCIAL CORPORATION LOAN DETAIL (unaudited, in thousands)

	September 30, 2024					June 30, 2024					September 30, 2023
Commercial and industrial loans:
Working capital lines of credit loans	$	678,079		13.3	%	$	697,754		13.8	%	$	589,345		12.1	%
Non-working capital loans		814,804		16.0			828,523		16.4			812,875		16.7
Total commercial and industrial loans		1,492,883		29.3			1,526,277		30.2			1,402,220		28.8

Commercial real estate and multi-family residential loans:
Construction and land development loans		729,293		14.3			658,345		13.0			633,920		13.0
Owner occupied loans		810,453		15.9			830,018		16.4			811,175		16.6
Nonowner occupied loans		766,821		15.1			762,365		15.1			740,783		15.2
Multifamily loans		243,283		4.8			252,652		5.0			236,581		4.8
Total commercial real estate and multi-family residential loans		2,549,850		50.1			2,503,380		49.5			2,422,459		49.6

Agri-business and agricultural loans:
Loans secured by farmland		157,413		3.1			161,410		3.2			183,241		3.8
Loans for agricultural production		200,971		4.0			199,654		4.0			197,287		4.0
Total agri-business and agricultural loans		358,384		7.1			361,064		7.2			380,528		7.8

Other commercial loans		94,309		1.9			96,703		1.9			125,939		2.6
Total commercial loans		4,495,426		88.4			4,487,424		88.8			4,331,146		88.8

Consumer 1-4 family mortgage loans:
Closed end first mortgage loans		261,462		5.1			259,094		5.1			247,114		5.1
Open end and junior lien loans		210,275		4.1			197,861		3.9			189,611		3.9
Residential construction and land development loans		14,200		0.3			12,952		0.3			12,888		0.3
Total consumer 1-4 family mortgage loans		485,937		9.5			469,907		9.3			449,613		9.3

Other consumer loans		103,547		2.1			97,895		1.9			93,737		1.9
Total consumer loans		589,484		11.6			567,802		11.2			543,350		11.2
Subtotal		5,084,910		100.0	%		5,055,226		100.0	%		4,874,496		100.0	%
Less: Allowance for credit losses		(83,627	)				(80,711	)				(72,105	)
Net deferred loan fees		(2,920	)				(2,885	)				(3,531	)
Loans, net	$	4,998,363				$	4,971,630				$	4,798,860


LAKELAND FINANCIAL CORPORATION DEPOSITS AND BORROWINGS (unaudited, in thousands)

	September 30, 2024		June 30, 2024		September 30, 2023
Noninterest bearing demand deposits	$	1,284,527	$	1,212,989	$	1,377,650
Savings and transaction accounts:
Savings deposits		276,468		283,809		315,651
Interest bearing demand deposits		3,273,405		3,274,179		2,891,683
Time deposits:
Deposits of $100,000 or more		787,095		776,314		756,107
Other time deposits		215,818		216,246		315,984
Total deposits	$	5,837,313	$	5,763,537	$	5,657,075
FHLB advances and other borrowings		30,000		55,000		90,000
Total funding sources	$	5,867,313	$	5,818,537	$	5,747,075


LAKELAND FINANCIAL CORPORATION AVERAGE BALANCE SHEET AND NET INTEREST ANALYSIS (UNAUDITED)

	Three Months Ended September 30, 2024							Three Months Ended June 30, 2024							Three Months Ended September 30, 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)	$	5,037,855		$	86,118	6.80	%	$	4,993,270		$	84,226	6.78	%	$	4,791,156		$	78,910	6.53	%
Tax exempt (1)		26,493			366	5.50			41,581			783	7.57			58,602			1,258	8.52
Investments: (1)
Securities		1,128,705			7,871	2.77			1,118,776			8,082	2.91			1,171,426			8,169	2.77
Short-term investments		2,841			35	4.90			2,836			35	4.96			2,533			29	4.54
Interest bearing deposits		133,393			1,738	5.18			138,818			1,807	5.24			122,177			1,576	5.12
Total earning assets	$	6,329,287		$	96,128	6.04	%	$	6,295,281		$	94,933	6.07	%	$	6,145,894		$	89,942	5.81	%
Less: Allowance for credit losses		(81,353	)						(74,166	)						(71,997	)
Nonearning Assets
Cash and due from banks		63,744							64,518							68,669
Premises and equipment		59,493							58,702							58,782
Other nonearning assets		285,293							298,619							297,636
Total assets	$	6,656,464						$	6,642,954						$	6,498,984

Interest Bearing Liabilities
Savings deposits	$	280,180		$	45	0.06	%	$	289,107		$	48	0.07	%	$	329,557		$	57	0.07	%
Interest bearing checking accounts		3,295,911			33,822	4.08			3,275,502			33,323	4.09			2,873,795			27,891	3.85
Time deposits:
In denominations under $100,000		215,020			1,914	3.54			217,146			1,871	3.47			211,039			1,507	2.83
In denominations over $100,000		844,882			9,775	4.60			807,304			9,121	4.54			740,434			7,654	4.10
Miscellaneous short-term borrowings		13,752			189	5.48			77,077			1,077	5.62			227,555			3,121	5.44
Total interest bearing liabilities	$	4,649,745		$	45,745	3.91	%	$	4,666,136		$	45,440	3.92	%	$	4,382,380		$	40,230	3.64	%
Noninterest Bearing Liabilities
Demand deposits		1,244,184							1,230,903							1,417,641
Other liabilities		92,375							106,916							106,453
Stockholders’ Equity		670,160							638,999							592,510
Total liabilities and stockholders’ equity	$	6,656,464						$	6,642,954						$	6,498,984
Interest Margin Recap
Interest income/average earning assets					96,128	6.04	%					94,933	6.07	%					89,942	5.81	%
Interest expense/average earning assets					45,745	2.88						45,440	2.90						40,230	2.60
Net interest income and margin				$	50,383	3.16	%				$	49,493	3.17	%				$	49,712	3.21	%

(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, $1.20 million and $1.32 million in the three-month periods ended September 30, 2024, June 30, 2024, and September 30, 2023, respectively.
(2)  Loan fees, which are immaterial in relation to total taxable loan interest income for the three months ended September 30, 2024, June 30, 2024, and September 30, 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									Nine Months Ended
	Sep. 30, 2024			Jun. 30, 2024			Sep. 30, 2023			Sep. 30, 2024			Sep. 30, 2023
Total Equity	$	699,181		$	654,590		$	557,184		$	699,181		$	557,184
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		695,378			650,787			553,381			695,378			553,381
Market Value Adjustment in AOCI		137,435			169,747			227,375			137,435			227,375
Adjusted Tangible Common Equity		832,813			820,534			780,756			832,813			780,756

Assets	$	6,645,371		$	6,568,807		$	6,426,844		$	6,645,371		$	6,426,844
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		6,641,568			6,565,004			6,423,041			6,641,568			6,423,041
Market Value Adjustment in AOCI		137,435			169,747			227,375			137,435			227,375
Adjusted Tangible Assets		6,779,003			6,734,751			6,650,416			6,779,003			6,650,416

Ending Common Shares Issued		25,684,916			25,679,066			25,614,163			25,684,916			25,614,163

Tangible Book Value Per Common Share	$	27.07		$	25.34		$	21.60		$	27.07		$	21.60

Tangible Common Equity/Tangible Assets		10.47	%		9.91	%		8.62	%		10.47	%		8.62	%
Adjusted Tangible Common Equity/Adjusted Tangible Assets		12.29	%		12.18	%		11.74	%		12.29	%		11.74	%

Net Interest Income	$	49,273		$	48,296		$	48,393		$	144,985		$	148,436
Plus: Noninterest Income		11,917			20,439			10,835			44,968			32,650
Minus: Noninterest Expense		(30,393	)		(33,333	)		(29,097	)		(94,431	)		(101,265	)

Pretax Pre-Provision Earnings	$	30,797		$	35,402		$	30,131		$	95,522		$	79,821

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									Nine Months Ended
	Sep. 30, 2024			Jun. 30, 2024			Sep. 30, 2023			Sep. 30, 2024			Sep. 30, 2023
Noninterest Income	$	11,917		$	20,439		$	10,835		$	44,968		$	32,650
Less: Net (Gain) Loss on Visa Shares		15			(9,011	)		0			(8,996	)		0
Less: Insurance Recoveries		0			0			0			(1,000	)		0
Adjusted Core Noninterest Income	$	11,932		$	11,428		$	10,835		$	34,972		$	32,650

Noninterest Expense	$	30,393		$	33,333		$	29,097		$	94,431		$	101,265
Less: Legal Accrual		0			(4,537	)		0			(4,537	)		0
Less: Wire Fraud Loss		0			0			0			0			(18,058	)
Plus: Salaries and Employee Benefits (1)		0			0			0			0			1,850
Adjusted Core Noninterest Expense	$	30,393		$	28,796		$	29,097		$	89,894		$	85,057

Earnings Before Income Taxes	$	27,738		$	26,922		$	29,731		$	82,463		$	74,271
Adjusted Core Impact:
Noninterest Income		15			(9,011	)		0			(9,996	)		0
Noninterest Expense		0			4,537			0			4,537			16,208
Total Adjusted Core Impact		15			(4,474	)		0			(5,459	)		16,208
Adjusted Earnings Before Income Taxes		27,753			22,448			29,731			77,004			90,479
Tax Effect		(4,404	)		(3,261	)		(4,479	)		(11,817	)		(14,123	)
Core Operational Profitability (2)	$	23,349		$	19,187		$	25,252		$	65,187		$	76,356

Diluted Earnings Per Common Share	$	0.91		$	0.87		$	0.98		$	2.69		$	2.49
Impact of Adjusted Core Items		0.00			(0.13	)		0.00			(0.16	)		0.48
Core Operational Diluted Earnings Per Common Share	$	0.91		$	0.74		$	0.98		$	2.53		$	2.97

Adjusted Core Efficiency Ratio		49.66	%		48.22	%		49.13	%		49.95	%		46.97	%

(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 $3.4 million lower than reported net income for the three months ended September 30, 2024 and June 30, 2024, respectively. Core operational profitability was $4.1 million lower and $12.2 million higher than reported net income for the nine months ended September 30, 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 Economics: AGNICO EAGLE ANNOUNCES INVESTMENT IN ATEX RESOURCES INC.

Source: Agnico Eagle Mines

Stock Symbol: AEM (NYSE and TSX)

TORONTO, Oct. 25, 2024 /CNW/ – Agnico Eagle Mines Limited (NYSE: AEM) (TSX: AEM) (“Agnico Eagle”) announced today that it has agreed to subscribe for 33,869,939 units (“Units”) of ATEX Resources Inc. (TSXV: ATX) (“ATEX”) in a non-brokered private placement at a price of C$1.63 per Unit for total consideration of US$40,000,000 (approximately C$55,208,000). Each Unit is comprised of one common share of ATEX (a “Common Share”) and one-half of one common share purchase warrant of ATEX (each whole common share purchase warrant, a “Warrant”). Each Warrant entitles the holder to acquire one Common Share at a price of C$2.50 for a period of five years following the closing date of the private placement, subject to acceleration in certain circumstances. Closing is expected to occur on or about October 30, 2024 and is subject to certain conditions.

The investment in ATEX is consistent with Agnico Eagle’s historical practice of strategic equity investments in projects with high geological potential. It provides Agnico Eagle with exposure to an early stage, copper-gold exploration project in Chile, an established mining jurisdiction. The Company continues to focus on its portfolio of high-quality internal growth projects, and complements its pipeline of projects with a strategy of acquiring strategic toehold positions in prospective opportunities.

Agnico Eagle does not currently own any Common Shares or Warrants. On closing of the private placement, and after giving effect to two other share issuance transactions to be completed by ATEX concurrently with the private placement, Agnico Eagle will own 33,869,939 Common Shares and 16,934,969 Warrants, representing approximately 13.21% of the issued and outstanding Common Shares on a non-diluted basis and approximately 18.59% of the Common Shares on a partially-diluted basis, assuming exercise of the Warrants held by Agnico Eagle.

On the closing of the private placement, Agnico Eagle and ATEX will enter into an investor rights agreement, pursuant to which Agnico Eagle will be granted certain rights, provided Agnico Eagle maintains certain ownership thresholds in ATEX, including: (a) the right to participate in equity financings and top-up its holdings in relation to dilutive issuances in order to maintain its pro rata ownership in ATEX at the time of such financing or acquire up to a 19.99% ownership interest, on a partially-diluted basis, in ATEX; and (b) the right (which Agnico Eagle has no present intention of exercising) to nominate one person (and in the case of an increase in the size of the board of directors of ATEX to ten or more directors, two persons) to the board of directors of ATEX.

Agnico Eagle is acquiring the Common Shares and Warrants for investment purposes. Depending on market conditions and other factors, Agnico Eagle may, from time to time, acquire additional Common Shares, common share purchase warrants or other securities of ATEX or dispose of some or all of the Common Shares, Warrants or other securities of ATEX that it owns at such time.

An early warning report will be filed by Agnico Eagle in accordance with applicable securities laws. To obtain a copy of the early warning report, please contact:

Agnico Eagle Mines Limited
c/o Investor Relations
145 King Street East, Suite 400
Toronto, Ontario M5C 2Y7
Telephone: 416-947-1212
Email: investor.relations@agnicoeagle.com

Agnico Eagle’s head office is located at 145 King Street East, Suite 400, Toronto, Ontario M5C 2Y7. ATEX’s head office is located at 50 Richmond Street East, Toronto, Ontario M5C 1N7.

About Agnico Eagle

Agnico Eagle is a Canadian based and led senior gold mining company and the third largest gold producer in the world, producing precious metals from operations in Canada, Australia, Finland and Mexico. It has a pipeline of high-quality exploration and development projects in these countries as well as in the United States. Agnico Eagle is a partner of choice within the mining industry, recognized globally for its leading environmental, social and governance practices. Agnico Eagle was founded in 1957 and has consistently created value for its shareholders, declaring a cash dividend every year since 1983.

Forward-Looking Statements

The information in this news release has been prepared as at October 25, 2024. Certain statements in this news release, referred to herein as “forward-looking statements”, constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward-looking information” under the provisions of Canadian provincial securities laws. These statements can be identified by the use of words such as “may”, “will” or similar terms.

Forward-looking statements in this news release include, without limitation, statements relating to the expected closing date of the Transaction, Agnico Eagle’s ownership interest in ATEX upon closing of the private placement, Agnico Eagle’s acquisition or disposition of securities of ATEX in the future and the terms of the investor rights agreement.

Forward-looking statements are necessarily based upon a number of factors and assumptions that, while considered reasonable by Agnico Eagle as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Many factors, known and unknown, could cause actual results to be materially different from those expressed or implied by such forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made. Other than as required by law, Agnico Eagle does not intend, and does not assume any obligation, to update these forward-looking statements.

View original content to download multimedia:https://www.prnewswire.com/news-releases/agnico-eagle-announces-investment-in-atex-resources-inc-302286914.html

SOURCE Agnico Eagle Mines Limited

MIL OSI Economics –

January 25, 2025

MIL-OSI Economics: African Development Bank to co-host Chemicals and Fertilizers Investment and Trade Roundtable and Clinics

Source: African Development Bank Group

What: Chemicals and Fertilizers Sectors Roundtable and Clinics

Who: The African Development Bank, in collaboration with the Chemicals and Fertilizers Export Council and the Chamber of Chemical Industries

When: 10 am GMT+3; 28 October 2024

Where: Fairmont Nile City Hotel

The African Development Bank, in collaboration with Egypt’s Chemicals and Fertilizers Export Council and the Chamber of Chemical Industries will host an investment and trade roundtable and clinic for top Egyptian Chemicals and Fertilizer companies on 28 October 2024 at Cairo’s Fairmont Nile City Hotel.

The Roundtable will bring together African Development Bank private sector experts with top 30 manufacturers and other stakeholders to discuss collaboration opportunities in support of boosting the chemicals and fertilizers industry sectors. Participants will learn about the Bank’s financial and non-financial support for Industrial and Trade Development.

The event will also feature presentations from the private sector unit at the Ministry of International Cooperation to highlight its new partnerships and donor coordination platform (Hafez). The roundtable will benefit from contributions by African Development Bank and African Continental Free Trade Area trade experts, and the Egyptian Commercial Services representative in Africa, on practical guidelines and trade solutions to enhance Egypt’s two-way trade with other African countries.

AGENDA

10:00 – 10:30	REGISTRATION
10:30 – 10:40	Opening by Dr Ghada Abuzaid, Principal Industrial Programs Coordinator, AfDB AfDB Video
10:40 – 11:00	WELCOME	Welcome Remarks African Development Bank Export Council and Chamber of Chemicals & Fertilizers	Mr. Abdourahmane Diaw, Country Manager, AfDB Dr. Sherif El Gabaly, Chairman, Chamber of Chemicals and Fertilizers
11:00 – 11:15	WELCOME	Egyptian Chemicals & Fertilizers Sector State of Affairs, Market Trends and Exports Potential	Mr. Khaled Abo El Makarem, Chairman of the Export Council and Deputy Chairman of the Chamber
11:15 – 11:40	LEARN	1st Panel: Partnerships and Financial Support to the Egyptian Chemical Industries & Takeaways	Context setting by Dr Ghada Abuzaid and Top expertise panel. Dr. Tamer Taha, Head of Private sector, Innovation and Entrepreneurship, Ministry of International Cooperation and Planning Mr. Fernando Rodriques, Regional Lead Non-Sovereign Operations, AfDB Opening
11:40 – 12:20		2nd Panel: Egyptian private sector contributions to developing the chemicals and fertilizers sector in Egypt and Africa & Takeaways	Context setting by Mr. Yehia El Minshawy international Cooperation Manager and leading CEO Panelists Makarem Tex TCL MOPCO UNOX APG Eagle Chemicals
12:20 – 13:00		3rd Panel: Potential of intra-Africa trade in promoting Egyptian Chemicals & fertilizers sectors & Takeaways	Context setting by Dr. Khaled Melad, Head of the African Department, Egyptian Commercial Services and continental intra-Africa trade experts. Representatives of ECS in Africa – Ghana, Senegal, Kenya and Tanzania Mr. Abou Fall, Principal Trade Facilitation Expert, AfDB Mr. Mohamed Ali, Director of Trade in goods and competition, Africa Continental Free Trade Area (AfCFTA)
13:00 – 13:15		AfDB’s Recent Support to Chemicals and Fertilizers Regional Champions	Case Study – OCP, Morocco Case Study – SPIH, Cote d’Ivoire and Ghana Ms. Christelle N’Guessan, Senior Investment Officer, AfDB
ROUNDTABLE’S OFFICIAL PHOTOS
13:30 – 14:30	CONNECT	Lunch and Networking to All. Participation in clinics is by invitation only.

MIL OSI Economics –

January 25, 2025

MIL-OSI Europe: Debates – Thursday, 24 October 2024 – Strasbourg – Provisional edition

Source: European Parliament 2

Verbatim report of proceedings

352k

770k

Thursday, 24 October 2024 – Strasbourg

Provisional edition

1.	Opening of the sitting
2.	Composition of committees and delegations
3.	Closing the EU skills gap: supporting people in the digital and green transitions to ensure inclusive growth and competitiveness in line with the Draghi report (debate)
4.	Abuse of new technologies to manipulate and radicalise young people through hate speech and antidemocratic discourse (debate)
5.	Resumption of the sitting
6.	Sakharov Prize 2024 (announcement of the winner)
7.	Request for waiver of immunity
8.	Resumption of the sitting
9.	Voting time
	9.1.	Situation in Azerbaijan, violation of human rights and international law and relations with Armenia (RC-B10-0133/2024, B10-0129/2024, B10-0131/2024, B10-0133/2024, B10-0136/2024, B10-0139/2024, B10-0141/2024, B10-0142/2024) (vote)
	9.2.	People’s Republic of China’s misinterpretation of the UN resolution 2758 and its continuous military provocations around Taiwan (RC-B10-0134/2024, B10-0130/2024, B10-0132/2024, B10-0134/2024, B10-0135/2024, B10-0137/2024, B10-0138/2024, B10-0140/2024) (vote)
10.	Resumption of the sitting
11.	Approval of the minutes of the previous sitting
12.	Protecting our oceans: persistent threats to marine protected areas in the EU and benefits for coastal communities (debate)
13.	Explications de vote
	13.1.	Situation in Azerbaijan, violation of human rights and international law and relations with Armenia (RC-B10-0133/2024)
	13.2.	People’s Republic of China’s misinterpretation of the UN resolution 2758 and its continuous military provocations around Taiwan (RC-B10-0134/2024)
14.	Approval of the minutes of the sitting and forwarding of texts adopted
15.	Dates of forthcoming sittings
16.	Closure of the sitting
17.	Adjournment of the session

IN THE CHAIR: ESTEBAN GONZÁLEZ PONS
Vice-President

1. Opening of the sitting

(The sitting opened at 9:00)

2. Composition of committees and delegations

President. – The EPP Group has notified the President of decisions relating to changes to appointments within committees and delegations.

These decisions will be set out in the minutes of today’s sitting and take effect on the date of this announcement.

3. Closing the EU skills gap: supporting people in the digital and green transitions to ensure inclusive growth and competitiveness in line with the Draghi report (debate)

Janusz Wojciechowski, Member of the Commission. – Mr President, skills cut across all policies and this House has played an important role in putting skills high on the agenda, notably with the European Year of Skills, which was a huge success.

Mario Draghi’s report shows that we must close the skills gap if we want to make Europe simultaneously competitive, fair and secure. This means stepping up investments in skills and education and training at different places and moments, from school to adult learning. These investments need to be public and private. At the European Union level, we are investing already, as of today, around EUR 44 billion in the EU Cohesion Policy, mostly from the European Social Fund Plus, and helping upskill and reskill 38 million people.

Member States’ national recovery and resilience plans include reforms and investments in education, training and adult learning amounting to more than EUR 85 billion. The Just Transition Mechanism supports the most affected people, workers, companies and regions heavily dependent on carbon-intensive industries, notably by helping them with training to access new jobs in their region. Other programmes such as Erasmus+ and Digital Europe also contribute to skills development in their respective areas.

But indeed, we have a skills gap in our labour markets. In many sectors, we don’t have enough people with the skills needed and this is the key ingredient missing if we want Europe to be competitive in the face of countries like the US and China. We face significant labour shortages. The European Union labour markets are losing one million people every year between now and 2050 because of ageing. Two thirds of European companies say that the lack of skills holds back their business activities and four out of five say they cannot invest and grow as much as they could. For SMEs, it is even more difficult: only one in five can find workers with the right skills.

To address this, we adopted the action plan on labour and skills shortages. It is based on a broad consensus between Member States and social partners. The action plan builds notably on the European Skills Agenda, which is specifically aimed at harnessing the green and digital technology transitions. The European Year of Skills, with its 2000 events, showed that we were on the right track and we should use its momentum.

There have been good results. The Pact for Skills has brought together businesses, unions, education and training providers and other stakeholders in a large partnership, joining forces to upskill workers. In the first years, about 3.5 million workers have been upskilled through action by the 3000 pact members. Individual learning accounts, a powerful tool that offers adults incentives and guidance to train over time, are being prepared in about half of all Member States. We expect them to be very helpful, in particular for workers in SMEs, which may not be able to have their own upskilling programmes.

We launched the EU digital decade strategy to make sure Europe’s workforce is ready for a world where digital skills are increasingly essential in many areas of life. The digital education action plan supported the adaptation of the education and training systems of Member States, aiming to boost the provision of digital skills. The European Union has introduced specific measures for learning, for sustainability, integrating green skills and competencies into education and training systems across the Member States.

But there is a lot of work still to do. Too many people don’t have good basic skills. We are far from our 80 % target of digital skills and 60 % target of adults in training.

Last but not least, as is also stressed in the Draghi report, we need to significantly step up the anticipation of skills needs, which is also key for addressing labour shortages in future. We can build on the good analytical work by Cedefop and Eurostat on job vacancies and on the European network graduate tracking to bring analysis closer to the local needs. Another initiative under development on skills intelligence is the common European data space for skills, which will facilitate secure data pooling and sharing to foster the development of data-driven application for skills, demand and supply analysis.

Liesbet Sommen, namens de PPE-Fractie. – Voorzitter, commissaris, de groene transitie en artificiële intelligentie: dat maakt onze mensen en bedrijven soms bezorgd. Dat is ook begrijpelijk. Het is aan ons, het beleid, om duidelijkheid en zekerheid te bieden. Want wij staan als Europese Unie op een kruispunt. Wij hebben terecht de meest ambitieuze klimaatwetgeving ter wereld, maar onze economie hinkt achterop omdat wij te weinig ruimte bieden aan technologische vooruitgang. Werknemers en landbouwers zijn daardoor soms bang om hun baan en toekomst te verliezen.

Maar het goede nieuws is: wij zijn in staat om deze transities om te buigen naar kansen. Dat gaan we doen door in te zetten op grotere vaardigheden van onze mensen, via onderwijs en opleiding. Want menselijk kapitaal is wat onze Europese bedrijven sterk maakt. Laat ons trots zijn op ons Europese sociale model. De VS en China hebben slechts een volgende rol. We hebben echt behoefte aan een allesomvattende Europese financieringsstrategie voor onderwijs en opleiding. De focus moet liggen op STEM‑sectoren, wiskunde en wetenschap. Want het zijn die opleidingen die de beroepen naar de arbeidsmarkt brengen die onze bedrijven en onze landbouw in staat zullen stellen om te verduurzamen en te digitaliseren.

Met sterker onderwijs en opleiding voor ons Europeanen gaan we er niet alleen in slagen om het klimaat en onze Europese economie te redden, maar ook om onze mensen te versterken. En inderdaad, dat zal ervoor gaan zorgen dat Europa haar leiderschapspositie van weleer opnieuw kan innemen. Europa staat op een kruispunt. Het is aan ons om de juiste weg in te slaan.

Gabriele Bischoff, im Namen der S&D-Fraktion. – Herr Präsident, sehr geehrter Herr Kommissar, Kolleginnen und Kollegen! In der Tat, diese Transformation wird gelingen, wenn wir die Beschäftigten hier mitnehmen. Und der Draghi-Bericht stellt tatsächlich die Notwendigkeit von Fort- und Weiterbildung mit ins Zentrum, nicht nur für Wettbewerbsfähigkeit, sondern auch für Innovationsfähigkeit. Und es ist gut, dass das auf der Säule sozialer Rechte aufbaut, denn die garantiert zum ersten Mal ein Recht auf Weiterbildung – das müssen wir verankern, das ist ein Job für die nächste Kommission.

Ich bin froh, dass der Kommissar die Rolle der Sozialpartner hervorgehoben hat, weil die essenziell ist: dass beide Seiten, dass Arbeitgeber wie Gewerkschaften, wie Betriebsräte zusammen in den Betrieben Konzepte entwickeln. Und ich bin froh auch – ich komme gerade von einer Debatte, wo es um ESF-Plus-Projekte ging, wo beide Sozialpartner in Deutschland, Arbeitgeber und Gewerkschaften, ein Programm zur Beratung und Qualifizierung hingekriegt haben.

Deshalb bitte keine verkürzte skills-Debatte, sondern sehen, wir brauchen eine gute Grundqualifizierung und Akteure in den Betrieben, die das vorantreiben.

Paolo Borchia, a nome del gruppo PfE. – Signor Presidente, onorevoli colleghi, signor Commissario, io non amo particolarmente essere pessimista. Però credo che, effettivamente, per colmare il ritardo con la Cina e con gli Stati Uniti ci servirà un mezzo miracolo, perché non possiamo pensare che l’unica parola d’ordine sia decarbonizzazione.

Infatti, senza la competitività non andiamo da nessuna parte. Sul tema della mancanza dei lavoratori, Commissario, lei giustamente ha menzionato la mancanza di competenza e io credo che la mancanza di lavoratori qualificati sia purtroppo la chiave di volta. Anche perché, purtroppo, anche in quest’Aula c’è chi pensa che il problema si possa risolvere attraverso l’importazione di un esercito di manodopera di lavoratori a basso costo, che magari arrivano da Paesi lontani.

E poi, in conclusione, c’è un grosso tema di autocritica, perché gli stessi che ci hanno portati ad essere fanalini di coda nell’economia globale, adesso sono quelli che pretendono di continuare a comandare, senza ascoltare quello che è il volere degli elettori.

Mariateresa Vivaldini, a nome del gruppo ECR. – Signor Presidente, onorevoli colleghi, signor Commissario, formare, attrarre e trattenere i talenti sono propositi che in quest’Aula condividiamo tutti. Ma la sfida sui talenti non può essere scollegata dalle sfide sulla natalità. Dobbiamo incentivare le nascite con interventi strutturali, accompagnando i figli dalla nascita al mercato del lavoro.

Diversi studi hanno previsto che all’Europa, nel suo insieme, mancheranno 35 milioni di persone in età lavorativa entro il 2050, soprattutto nelle zone rurali, accrescendo un divario che di per sé è già allarmante con le zone urbane. Significa che scienziati, medici, ingegneri, lavoratori specializzati che avrebbero potuto contribuire a cambiare il nostro futuro, non avranno mai questa opportunità.

È ovvio – e lo rivendico con forza – che garantire una maggiore fruibilità delle competenze e degli spazi digitali è fondamentale. Però, mentre noi portiamo avanti questa riflessione, da un lato, c’è il Consiglio che ha proposto un taglio di quasi 300 milioni ad Erasmus, dall’altro, si continua a non portare avanti nessuna iniziativa sulla tutela delle donne lavoratrici con stipendi adeguati.

I talenti vanno coltivati, ma innanzitutto vanno messi al mondo. Altrimenti ci troveremo ad avanzare ottime proposte politiche senza avere nessuno su cui applicarle.

Nela Riehl, on behalf of the Verts/ALE Group. – Mr President, as the Draghi report outlines, the question of skills is not just one of preparing the labour force for changing demands, but also about giving people the tools to adapt and engage with a changing world and benefit from new technologies. This is what competitiveness should mean.

As a teacher, I have great respect for traditional classrooms, but classrooms are only just the beginning. At the moment, only 40 % of European adults train every year. This is very far from the 60 % target that the EU set itself to reach by 2030. Training must be a lifelong commitment.

Lifelong learning, development, developing digital skills, must be a fundamental right and not just a privilege reserved for a few. This isn’t just about preparing for tomorrow’s jobs. It’s about empowering everyone to thrive in a world that is always evolving.

So what does this actually mean? First, we need to address the lack of investment in skills. Every euro spent on training is a euro invested in our economy and society. This needs to be reflected in public budget decisions.

Second, we need to establish an individual right to training for every European worker. But beyond this, we must break down the barriers that prevent skills and qualifications being recognised across borders. Let us make lifelong learning the new norm!

Li Andersson, The Left-ryhmän puolesta. – Arvoisa puhemies, kaikki puhuvat nykyään taidoista. Yritykset ovat nostaneet osaavien työntekijöiden puutteen esille keskeisimpänä kasvun esteenä Euroopassa. Työvoimapula vaivaa monia aloja, ja myös Draghin raportin viesti oli, että kaikille eurooppalaisille työntekijöille pitää turvata oikeus kouluttautua.

On tärkeää, että Eurooppa nostaa yksiselitteisesti osaamisen ja oppimisen kilpailukyvyn keskiöön. Meidän ei tule kilpailla palkkoja polkemalla, työehtoja heikentämällä, luonnonvaroja riistämällä tai antamalla eriarvoisuuden kasvaa räjähdysmäisesti. Meidän tulee tehdä asioita uudella ja paremmalla tavalla – niin talouden vahvistamiseksi kuin ihmisten elämän parantamiseksi.

Mutta olemmeko todellakin valmiita koulutuspolitiikkaan, joka vastaa näihin suuriin haasteisiin? Silloin niin työnantajilla kuin yhteiskunnilla pitää olla valmius rahoittaa työikäisten opiskelua nykyistä enemmän. Silloin työnantajien pitää olla valmiita antamaan työntekijöiden käyttää siihen työaikaa. Silloin työttömille pitää antaa vapaus ja mahdollisuus opiskeluun. Silloin myös koulutusjärjestelmämme tulee vastata paremmin erilaisten oppijoiden tarpeisiin. Tämä kaikki edellyttää aivan eri mittaluokan panostuksia kuin mitä me tähän asti olemme nähneet.

Meidän tulee myös ymmärtää, että työvoimapulassa ei ole kyse vain taidoista tai niiden puutteista. Siinä on myös kyse työoloista – palkasta, työoloista, työehdoista ja mahdollisuuksista vaikuttaa. Mikään määrä taitoja tai koulutusta maailmassa ei korvaa sitä, että ihmiset saavat mahdollisuuden tehdä työnsä hyvin, kunnollista korvausta vastaan.

Рада Лайкова, от името на групата ESN. – Уважаеми граждани на ЕС, единственото нещо, което е по-безидейно от доклада на Марио Драги, е стратегията, заложена в този доклад. Както и очаквахме, този уж външен доклад се цитира вече за всеки план на ЕС, като задължително се добавят думи, събудени думи или „woke“ думи като зелен, устойчив, дигитално приобщаващ, климатично, неутрален и т. н.

Със стремежа си за уеднаквяване Европейският съюз сам създаде кризата в образованието, защото университетите станаха фабрики за хора с дипломи без истински знания. Учат се да повтарят, а не да мислят. А това не е целта на критичното мислене и образованието. Трудно ми е да повярвам, че ЕС иска да подобри образованието, защото тук няма интерес от информирани граждани, иначе не биха се въвеждали закони под предлог за защита от дезинформация.

Информираните граждани не се третират като деца. Спомнете си клиповете за миене на ръце на Урсула фон дер Лайен. Европейският съюз има нужда от покорни, дигитално маркирани данъкоплатци, които не задават въпроси, затова и преследва подобна политика в сферата на образованието. Но в последните 15 години вече беше нанесена достатъчно вреда в тази сфера и този период скоро трябва да приключи.

Jagna Marczułajtis-Walczak (PPE). – Panie Przewodniczący! Panie komisarzu! Problem luki w umiejętnościach w Unii Europejskiej jest kwestią bardzo złożoną. Umiejętności pracowników i systemy kształcenia, a z drugiej strony oczekiwania rynku pracy nie zbiegają się w jednym punkcie. To problem wieloaspektowy.

Po pierwsze, szybkie zmiany technologiczne generują nowe, wymagające umiejętności, za którymi wiele osób nie nadąża. Po drugie, w wielu krajach Unii Europejskiej systemy edukacyjne i programy nauczania wymagają uelastycznienia. Po trzecie, luki w umiejętnościach wynikają także z nierówności regionalnych. Lokalni pracodawcy często nie są w stanie znaleźć odpowiednio wykwalifikowanej kadry w swojej okolicy. Po czwarte, kolejną ważną sprawą jest kwestia starzejącego się społeczeństwa. To wyzwanie, ale i okazja do budowania lepszych i dostępnych systemów opieki i rehabilitacji.

Wspierajmy uczenie się zawodów opiekuńczych, które są nieocenione dla członków naszych rodzin, a które kiedyś będą nieocenione i dla nas. Potrzebujemy działań na wielu frontach, ale najważniejsze jest prawidłowe zrozumienie problemu, który niewątpliwie istnieje.

Pascale Piera (PfE). – Monsieur le Président, après avoir été président de la Banque centrale et si étroitement impliqué dans les orientations de l’Union européenne, Mario Draghi pose le constat de l’inefficacité totale des politiques européennes, menées à bâtons rompus au détriment des peuples. Nous le savons, notre continent n’est plus que l’ombre de lui-même sur le plan industriel, sur le plan commercial, sur le plan migratoire.

Mario Draghi fait-il un mea culpa? Jamais. Pour expliquer ce désastre, auquel il a activement participé, il exhibe la pénurie de compétences comme s’il s’agissait d’une pénurie de marchandises. Pour tenter d’y remédier, il nous projette dans la fantasmagorie de la transition numérique et verte en nous promettant, dans une novlangue insupportable, toujours plus d’Europe, toujours plus d’argent pour d’hypothétiques programmes éducatifs, et en réalité toujours plus d’intrusion pour ce qu’il reste de souveraineté aux États souverains.

Mario Draghi fait l’économie de toute réflexion de fond et préfère l’asservissement de notre jeunesse aux écrans et aux propagandes wokistes. Pourtant, redonner un niveau de compétence à notre jeunesse, c’est encourager la connaissance de ses racines, la richesse de la littérature, le travail et l’esprit critique. Autant de conditions qui ne sont pas aujourd’hui assurées par l’Union européenne.

Georgiana Teodorescu (ECR). – Domnule președinte, România are nevoie urgentă de redeschiderea școlilor vocaționale de arte și meserii. Am ajuns o țară de absolvenți de studii superioare care nu știu să facă nimic și care nu își găsesc locuri de muncă pe măsura diplomelor, așa că fie pleacă la munci necalificate peste granițe, fie se angajează în astfel de servicii chiar în țară. Astăzi, în România, un electrician câștigă mai bine decât un avocat sau un inginer, spre exemplu, și chiar și așa nu îl găsești spre a-l angaja.

Această imagine critică asupra țării mele riscă să se reflecte și asupra Europei în curând. Dacă nu alocăm bani mulți pentru învățământul vocațional, vom ajunge să importăm astfel de forță de muncă doar din afara granițelor Uniunii Europene, în timp ce propriii noștri cetățeni vor fi asistați social. Colaborarea între Uniunea Europeană, sectorul privat și instituțiile de învățământ este esențială. Trebuie să creăm parteneriate care să adune resurse și expertiză ca să ne asigurăm că programele de formare răspund nevoilor de mâine.

Grégory Allione (Renew). – Monsieur le Président, Monsieur le Commissaire, chers collègues, le rapport Draghi nous l’a montré: l’Europe doit devenir plus compétitive. C’est un défi existentiel, un défi pour voir l’Union devenir une actrice forte et indépendante sur la scène mondiale, cheffe de file dans les domaines de l’éducation, des nouvelles technologies et de la lutte contre le changement climatique.

Nous le savons, l’investissement dans l’éducation et la formation, dans la protection sociale et la santé contribue à créer une société souveraine, plus résiliente, plus inclusive et, de fait, plus compétitive. Oui, nous devons d’urgence combler notre déficit en matière de compétences. Actuellement, près de 80 % des employeurs peinent à recruter des travailleurs possédant les compétences requises, quand ceux que nous avons formés font valoir, bien cher et outre-Atlantique, leurs compétences acquises ici en Europe. Par ailleurs, 60 % des travailleurs déclarent avoir besoin d’être formés aux outils de l’intelligence artificielle, quand 14 % le sont réellement. Enfin, nous le savons, il y a des pénuries de main-d’œuvre dans les domaines essentiels de la transition tels que la construction, la santé ou les énergies bas carbone.

Le chantier est énorme. Le rapport Draghi nous donne la trajectoire comme les solutions. Sans renforcer les compétences de nos travailleurs, de notre richesse humaine, l’Union restera spectatrice de sa double transition – verte et numérique.

Marina Mesure (The Left). – Monsieur le Président, pour les besoins de la bifurcation écologique, 25 millions d’emplois sont nécessaires. Mais combien de ces postes resteront non pourvus, faute de travailleurs correctement formés et de conditions de travail décentes?

Prenons un secteur clé: celui de la construction. Nous savons tous ici qu’il y a urgence à rénover les bâtiments, car il s’agit d’un enjeu social majeur pour nos concitoyens, qui peinent à se loger et à payer leur facture énergétique, et d’un enjeu écologique, puisque les bâtiments représentent 40 % des émissions de gaz à effet de serre. Et bien, dans ce secteur, le manque de main-d’œuvre est une préoccupation pour 96 % des entreprises.

Alors pourquoi si peu de candidats? Le rapport Draghi apporte une explication parmi d’autres: les salaires peu attrayants, qui contribuent à ce déficit dans un secteur qui compte encore un mort par jour. Donc, si vous voulez parler compétitivité, très bien! Mais vous ne pouvez pas le faire sans parler démocratie sociale, valorisation de ces métiers essentiels, formation continue, conditions de travail dignes, reconnaissance de la pénibilité au travail et garantie d’un environnement de travail sain et sûr pour toutes et pour tous.

C’est ainsi que nous rendrons les métiers essentiels à la bifurcation écologique attrayants et que nous comblerons le déficit de main-d’œuvre.

Diego Solier (NI). – Señor presidente, señor comisario, señorías, si queremos una Europa competitiva, realista y sostenible, necesitamos cambios de impacto rápido en nuestros ciudadanos.

Tenemos tres importantes áreas en las que hay que dar un giro de 180 grados.

Primero, una pirámide poblacional suicida y totalmente invertida. Sin políticas de familia, natalidad y conciliación laboral, esto no se resolverá ni importando a millones de inmigrantes, como pretenden ustedes.

Segundo, despolitización de la educación de Europa. Solo priorizando la excelencia y el esfuerzo de los estudiantes, superaremos la mediocridad: agilicemos la homologación de títulos universitarios europeos, desarrollemos una conexión empresarial con esos mismos entornos educativos de éxito.

Y, tercero, la formación a los empleados en tecnologías para que exploten sus productividades. El 99 % de nuestro tejido empresarial es pequeña y mediana empresa y carece de los recursos necesarios para cumplir con toda la burocracia que les imponemos desde Europa.

El tiempo de actuar es ahora. Mañana ya será tarde.

Andreas Schwab (PPE). – Herr Präsident, Herr Kommissar, liebe Kolleginnen und Kollegen! Mario Draghi hat uns auf fast 400 Seiten hier mit seinem Bericht die Schwachstellen der EU-Gesetzgebung ins Stammbuch geschrieben. Aber er kommt anders, als die Kollegin behauptet, nicht zu dem Ergebnis, dass das, was wir gemacht haben, alles falsch ist, sondern wir haben, was die Qualifikationslücke angeht, im Binnenmarkt falsche Anreize gesetzt. Und dafür haben wir eigentlich seinen Bericht nicht gebraucht, denn es war schon bei vielen Unternehmensbesuchen offensichtlich, dass wir es mit den Berichtspflichten schlicht übertrieben haben. Nicht jedes wünschenswerte Ziel braucht auch eine Berichtspflicht.

Das Beispiel ist bekannt aus meinem Wahlkreis: Ein kleines mittelständisches Unternehmen muss, weil es Zulieferer für ein Großunternehmen ist, 1 600 Berichtspflichten erfüllen im Rahmen der Corporate Social Responsibility-Richtlinie. Da geht es natürlich darum, dass die drei neuen Mitarbeiter, die dieses Unternehmen lange suchen muss, bevor sie eingestellt werden können, dann nicht in der Produktion sind, sondern beim Ausfüllen der Berichtspflichten. Gleichzeitig muss die große Wirtschaftsprüfungsgesellschaft auch zwei neue Mitarbeiter einstellen, um diese Berichtspflichten zu überprüfen, um den Jahresabschluss zu erstellen – das ist schlicht und ergreifend eine Fehlallokation.

Wir müssen dazu kommen – und am besten in den ersten 100 Tagen der neuen Kommission –, dass der Unternehmer ein leeres Blatt Papier nimmt und drauf schreibt: Ich habe die Regeln verstanden und gelesen und hafte mit meinem Namen. Die Franzosen sagen dazu lu et approuvé. Das würde Bürokratie abbauen, die Sache vereinfachen und das Leben für viele Unternehmer wieder angenehmer machen mit dem Ziel, den Wohlstand der Bürgerinnen und Bürger in Europa zu steigern; und das können wir schaffen.

Niels Fuglsang (S&D). – Hr. formand! Kære kolleger! I løbet af det sidste år har vi vedtaget meget vigtig lovgivning her i huset. Lovgivning om hvordan vi fremmer den grønne omstilling. Mål for vedvarende energi, hvor meget skal vi have? Mål for energieffektivitet. Lovgivning, der skal omstille industrien til at blive grøn. Men alt det her kan jo kun lade sig gøre, hvis vi har den nødvendige kvalificerede arbejdskraft. Hvis vi har tilstrækkeligt med faglærte, der kan sætte vindmøllerne op. Elektrikere, der kan sætte strøm til vores elbiler. Mekanikere, der kan reparere vores biler, og smede, der kan svejse vores pumper. Derfor har vi brug for kvalificeret arbejdskraft. Vi har brug for al den arbejdskraft, vi overhovedet kan tænke på, til at udvikle nye innovative teknologier. Og jeg er glad for at se, at Mario Draghi fokuserer på netop det her i sin rapport. Det er det, vi skal investere i sammen. Det er nu, det gælder.

Annamária Vicsek (PfE). – Tisztelt Elnök Úr! A Draghi-jelentésben említett készséghiányokat és az európai versenyképesség súlyos hanyatlását nem pusztán tüneti kezelésekkel, hanem valódi versenyképesség-növelő intézkedésekkel lehet csak megoldani.

Ilyen megoldás lehet például a magyar modell, amit a magyar elnökség programjának elemeként ismerhettünk meg. A felsőoktatásban, a szakképzésben és a felnőttképzésben kialakított stratégiai partnerség a felsőoktatási és szakképzési intézmények, valamint a gazdasági és társadalmi szereplők között öt év alatt már mérhető eredményeket hozott. Míg öt éve még csak 7 magyar egyetem, mára már 12 tartozik a világ legjobb 5 százalékába, sőt a világ legjobb 1%-ában is található magyar egyetem. 20%-kal nőttek a vállalati bevételek, nőtt a hallgatói létszám és nagy arányban csökkent a lemorzsolódás.

A Bizottság meg kell, hogy kezdje Európa versenyképességének fokozását, ugyanakkor meg kell, hogy szüntesse a magyar felsőoktatási intézmények versenyképességét csökkentő diszkriminatív intézkedéseit, amely végső soron a teljes Európai Unió versenyképességét is csökkenti.

Marlena Maląg (ECR). – Panie Przewodniczący! Panie komisarzu! Niedobór kwalifikacji to poważny problem, który dotyka całą Unię Europejską. Jak wynika z raportu Draghiego, około trzech czwartych europejskich firm zgłasza trudności ze znalezieniem pracowników z odpowiednimi umiejętnościami. Jednocześnie około 42% Europejczyków nie posiada podstawowych umiejętności cyfrowych. Nakładają się na to jeszcze problemy demograficzne starzejącego się społeczeństwa i daje to obraz rynku pracy.

Choć polityka kształcenia i szkolenia leży w gestii państw członkowskich, Unia wspiera te wysiłki, popierając konkretnymi strategiami, programami oraz udzielając konkretnego wsparcia. Szczególne znaczenie mają tu umiejętności cyfrowe, szkolnictwo zawodowe, w tym inwestowanie w kształcenie ustawiczne. Bardzo ważne jest promowanie takich inicjatyw jak Junior Skills promujących młodych mistrzów zawodowych. Zamiast promować migrację, musimy zadbać o to, aby wykształcić własnych specjalistów po to, aby Unia Europejska była odporna na kryzysy i znacznie bardziej konkurencyjna.

Христо Петров (Renew). – Г-н Комисар, инженери, IT специалисти, готвачи, Европейският съюз е изправен пред недостиг на работна ръка за много професии. В моята страна бизнесът има огромни проблеми при намирането на подходящи кадри. Докладът на Марио Драги призовава за принципно нов подход към уменията и аз съм съгласен. Но когато говорим за конкурентоспособност, трябва да говорим и за европейския социален модел, защото той прави Европа най-доброто място в света за живеене и работа.

За да решим проблема, ние трябва да укрепим нашата стратегия за повишаване на уменията и преквалификация на работниците, както и да активираме цялото население в трудоспособна възраст с персонализирана подкрепа. Все още има нереализиран потенциал в нашите региони. Трябва и да привлечем таланти от цял свят, за това „EU Talent Pool“ ще бъде от огромно значение. Той трябва да насърчи законното наемане на работа, като гарантира безопасност, ефективност и адекватност.

Време е да създадем правилния инструмент, който да е от полза както за работодателите, така и за търсещите работа.

Benedetta Scuderi (Verts/ALE). – Signor Presidente, onorevoli colleghi, la transizione ecologica e quella digitale ci offrono un’opportunità incredibile, non solo per creare milioni di posti di lavoro ma anche per rivoluzionare il nostro paradigma produttivo e socioeconomico verso un mondo del lavoro più giusto e inclusivo.

La carenza di manodopera qualificata è evidente ed è quindi essenziale colmare il divario di competenze con percorsi di formazione e aggiornamento professionale. Questo impegno, però, non deve essere preso solo dall’industria ma anche da noi istituzioni, dal pubblico. Solo così, infatti, possiamo includere nel mondo del lavoro tutte le persone che ne rimangono sistematicamente escluse.

Penso alle donne, alle persone razializzate, alle persone trans, a quelle con disabilità e a tutte quelle che subiscono discriminazioni. Penso ai giovani e a tutte le difficoltà a entrare nel mondo del lavoro a suon di tirocini non pagati e salari bassissimi.

Quindi, ben venga riportare l’industria europea al centro dell’agenda politica: ma per farlo non possiamo commettere gli stessi errori del passato. Torniamo a parlare con le parti sociali in modo serio, rafforziamo la contrattazione collettiva, garantiamo standard elevati di sicurezza sul luogo di lavoro, lotta a pratiche antisindacali, a frodi, a sfruttamento sociale e, soprattutto, salari dignitosi.

Un mercato del lavoro frutto di una società ineguale e un tessuto sociale impoverito non può essere competitivo.

Dario Tamburrano (The Left). – Signor Presidente, onorevoli colleghi, Stati Uniti e Cina concorrono per la supremazia nelle nuove tecnologie, come mobilità elettrica e intelligenza artificiale, mentre noi, con la nostra politica economica e industriale fallimentare, abbiamo perso decenni e posizioni e stiamo retrocedendo anche nelle politiche dell’istruzione e dell’educazione al digitale per le nuove generazioni.

La nostra industria non cresce abbastanza, anche perché non coltiva abbastanza e protegge le intelligenze naturali. In questo scenario fosco, le nostre società subiscono, invece di governarli, gli effetti della digitalizzazione.

È un’emergenza sociale e medica: il fenomeno dell’addicction digitale e di impoverimento delle capacità psico-relazionali, causati dall’esposizione permanente e inconsapevole alle nuove tecnologie digitali. È pertanto un imperativo morale rendere genitori e ragazzi più edotti degli effetti collaterali del digitale pervasivo e dell’intelligenza artificiale.

E lancio un appello a Parlamento e Commissione, affinché si avviino programmi specifici di monitoraggio e prevenzione, soprattutto per i soggetti in età evolutiva. Per una volta, di fronte a una nuova tecnologia, preveniamo invece di curare.

Pilar del Castillo Vera (PPE). – Señor presidente, señor comisario, cada persona debe tener su oportunidad en la transición digital. Solo con una formación adecuada cada uno podrá aprovechar todo el potencial que brinda la digitalización.

Esta brecha, como señala el señor Draghi, que hay con países que tienen más desarrolladas tanto la innovación tecnológica como la formación tecnológica es, en buena medida, la que explica el déficit que tenemos nosotros respecto de la competitividad que tienen países como los Estados Unidos. Es imperativo que competitividad y formación digital vayan de la mano. La formación digital debe estar presente a lo largo de todo el período educativo; por ejemplo, la programación debe incorporarse siempre en los inicios de la educación escolar, para que los alumnos vayan comprendiendo la naturaleza digital del sistema en el que viven.

Por otra parte, la Unión Europea debe incrementar el número de graduados CTIM, que, pese a los avances, todavía está lejos de cubrir la demanda que existe en estos perfiles. También es esencial reforzar la formación digital en los sistemas de formación profesional.

Por último, la actualización y la adquisición de nuevas habilidades digitales deben ser constantes a lo largo de la vida; es más, hay que garantizarlo.

En definitiva, la formación digital no solo es clave para lograr una Europa innovadora y competitiva, también lo es para que cada persona tenga su oportunidad en este proceso de transformación digital. Y, añado, no solo es esencial, también es urgente: el momento es ahora, mañana será tarde.

Marcos Ros Sempere (S&D). – Señor presidente, señor comisario, hablar de juventud es hablar de futuro, y para que el futuro sea brillante necesitamos reforzar sus competencias.

Las intenciones son buenas: la prueba es una futura vicepresidenta ejecutiva dedicada a estas competencias en la nueva Comisión Europea. Pero, sin embargo, los datos son más oscuros: los resultados de los jóvenes indican un déficit de competencias, y las proyecciones para 2035 apuntan a que este déficit aumentará.

Debemos actuar. Necesitamos una estrategia europea para reducir el déficit en competencias en todas las fases de la educación. Tenemos que ofrecer a nuestros jóvenes herramientas para desarrollar competencias, mejorarlas y actualizarlas durante la vida adulta, y el reconocimiento automático de títulos académicos y de competencias para mejorar el entendimiento y la movilidad entre Estados miembros.

2025 ya está aquí, y es la fecha que marcamos para pedir la implementación del Espacio Europeo de Educación. Hagámoslo realidad, hagamos brillar el futuro de nuestros jóvenes.

Antonella Sberna (ECR). – Signor Presidente, onorevoli colleghi, signor Commissario, il divario delle competenze rischia di frenare il nostro sviluppo e penalizzare la competitività dell’Europa e quello di genere, in particolare, continua a penalizzare il potenziale delle donne, specialmente nei settori strategici come la tecnologia.

Secondo l’Istituto europeo per l’uguaglianza di genere, l’eliminazione di questo divario nei settori STEM potrebbe favorire la creazione di ulteriori 1.200.000 posti di lavoro. In occasione dell’Anno europeo delle competenze, in Italia il governo Meloni ha introdotto, con la legge 187 del 2023, la Settimana nazionale delle discipline STEM, con l’obiettivo di sensibilizzare e stimolare l’interesse dei ragazzi, e soprattutto delle ragazze, verso queste discipline. È una buona prassi e quindi può ispirare il lavoro di altri Paesi membri.

In Europa, invece, la Commissione europea ha promosso il patto per le competenze, un’iniziativa che riteniamo importante, che invita le organizzazioni pubbliche e private a unire le forze e adottare azioni concrete per migliorare – soprattutto anche riqualificare – le persone in Europa. Ma non basta: sono necessarie una vera unione delle competenze, in cui l’accesso alle discipline chiave sia equo e accessibile per tutti, e la formazione per la riqualificazione professionale dei settori meno attrattivi.

Dobbiamo garantire che le competenze acquisite in un Paese siano facilmente riconosciute in tutti gli Stati membri, favorendo la mobilità e l’inclusione lavorativa. Solo così possiamo affrontare il futuro con fiducia e rafforzare la competitività in Europa.

Ľudovít Ódor (Renew). – Vážený pán predsedajúci, pán komisár, milí kolegovia, Európska únia musí v najbližších desaťročiach zvládnuť dve veľké transformácie – zelenú a digitálnu, a to so starnúcou populáciou. Táto misia je od začiatku odsúdená na zánik, ak sa nezbavíme zlozvykov z dvadsiateho storočia. Ktoré sú to? Po prvé, nemali by sme mladých pripravovať na konkrétnu profesiu, ale potrebujeme ich naučiť zručnosti na zvládnutie týchto výziev. Po druhé, prestaňme deliť život na vzdelávanie a následnú prácu. Nebuďme naivní, že dnešné poznatky nám postačia aj o 30 rokov. Práve digitalizácia a umelá inteligencia nám môžu pomôcť, aby sme sa kontinuálne učili tempom a spôsobom, ktorý nám vyhovuje. Po tretie, netvárme sa, že výborná priemerná kvalita univerzít stačí. Európska únia má na viac. Pre globálny úspech potrebujeme excelentnosť a musíme sa stať magnetom pre zahraničný talent. V dvadsiatom storočí sme si veľmi zvykli, že investície sú len o strojoch, betóne a asfalte. V dvadsiatom prvom storočí by mali byť najmä o ľudskom kapitáli.

Rasmus Andresen (Verts/ALE). – Herr Präsident! Eine Million! Eine Million Fachkräfte fehlen bis 2030 allein dem deutschen Arbeitsmarkt, und in vielen anderen europäischen Staaten sieht das nicht anders aus.

Über 60 % der kleinen und mittelständischen Unternehmen geben an, dass sie jetzt bereits Probleme haben, Fachkräfte zu finden. Der Fachkräftemangel ist eines der größten Probleme, das wir in der Europäischen Union in den nächsten Jahren haben, und ganz ehrlich: Es passiert viel zu wenig, um ihn anzugehen.

Deshalb ist es gut, dass wir hier darüber reden, denn wenn wir wettbewerbsfähig sein wollen, dann brauchen wir qualifizierte Arbeitskraft. Die Antwort darauf ist: mehr Migration, mehr Investitionen in Bildung, eine bessere Vereinbarkeit von Familie und Beruf und auch bessere Arbeitsbedingungen, denn nur mit attraktiven Jobs werden wir es schaffen, Menschen zu uns zu bekommen.

Denn wir brauchen mehr Menschen, die in der EU arbeiten, und nicht weniger. Deshalb ist es ein Problem, wenn Nationalismus, Hass und Hetze die Debatte bei uns dominieren. Niemand möchte in einer Europäischen Union leben, wo Alice Weidel oder Marine Le Pen den Takt angeben. Wir brauchen eine Willkommenskultur, die Menschen begrüßt und sie dabei unterstützt, hier bei uns ihren Arbeitsweg zu bestreiten.

Sérgio Humberto (PPE). – Caro Presidente, Caro Comissário, Caros Colegas, em Portugal temos um provérbio que nos ensina que não devemos chorar sobre o leite derramado, e é por isso que devemos falar de soluções para o desafio que enfrentamos. Permitam‑me que partilhe convosco três prioridades para agirmos, porque ninguém cresce na estagnação. Repito: ninguém cresce na estagnação.

Primeira: precisamos de investir na aprendizagem ao longo da vida. Aprender é a base para sermos mais produtivos e competitivos nos nossos territórios. Aprender em qualquer momento, em qualquer lugar vai‑nos preparar para as profissões do futuro e garantir um crescimento inclusivo.

Segunda: precisamos de apostar na transição digital e tirar mais partido dos dados e da inteligência artificial, principalmente nas áreas da saúde, da energia e da biotecnologia.

Terceira: precisamos de transitar para uma economia mais verde, de desenvolver uma verdadeira união energética numa verdadeira União Europeia.

Precisamos de estar mais próximos. É tentador achar que estamos todos muito longe uns dos outros. No meu país, Portugal, também já estive longe, mas o longe faz‑se perto. Todos juntos somos muito mais do que 27. Se trabalharmos todos juntos, ninguém fica para trás.

(O orador aceita responder a uma pergunta «cartão azul»)

João Oliveira (The Left), Pergunta segundo o procedimento «cartão azul». – Senhor Deputado Sérgio Humberto, falou, na sua intervenção, da importância da educação e da formação para a qualificação dos trabalhadores. E eu quero que nos diga: como é que isso se faz, aceitando as restrições orçamentais que a União Europeia nos impõe? Como é que isso se faz – como neste momento acontece em Portugal – com o Governo que o senhor apoia a apresentar uma proposta de Orçamento do Estado que, aceitando as restrições orçamentais que a União Europeia nos impõe, não investe na escola pública, não investe na contratação e na requalificação das carreiras dos professores, não investe na contratação e na valorização dos auxiliares de ação educativa, dos técnicos especializados?

Como é que isso tudo se faz? Porque, senão, o seu discurso é uma contradição com a prática.

Sérgio Humberto (PPE), Resposta segundo o procedimento «cartão azul». – Caro Colega João Oliveira, durante os últimos nove anos, o meu país foi governado pela esquerda. Uma geringonça entre o Partido Socialista, o seu partido – o Partido Comunista – e o Bloco de Esquerda. Durante nove anos, desinvestiu‑se no sistema público educativo, desinvestiu‑se na saúde, desinvestiu‑se naquilo que eram os serviços públicos e este Governo, nos últimos – apenas – seis meses, já demonstrou que está a apostar na educação, que é fundamental para as pessoas crescerem.

Nós só conseguimos redistribuir se nós formos um país mais rico e mais próspero.

Elisabetta Gualmini (S&D). – Mr President, Commissioner, the spread of digital technologies is having a huge impact on the labour market, and innovations such as AI, robotics, quantum technology and 6G are triggering a wave of new demands for a new generation of advanced digital skills.

The Draghi report strongly highlights how digitalisation and AI are essential, for example for the public sector due to its ability to provide quality public goods in the fields of health, education, justice and welfare. We need to work hard on the European digital decade programme and its ambitious goals, pushing professional training and life-long learning.

We are still lagging behind: in Italy, only 22 % of the population have advanced digital skills. Only 30 % of SMEs have implemented a solid digital strategy, which is not a luxury, it’s a strategic asset. So we shouldn’t be afraid of change and Europe’s strength has always relied upon its people. By empowering them, we ensure that our communities grow and that the EU remains a global leader in innovation.

Kris Van Dijck (ECR). – Voorzitter, commissaris, ik kom uit een land dat geen grondstoffen heeft, maar wel hersenen. Dat is het beste menselijk kapitaal. Wat voor Vlaanderen geldt, geldt in hoge mate voor heel Europa. Echter, PISA-resultaten tonen ons keer op keer dat de studieresultaten van onze jongeren er niet op vooruit gaan. Integendeel. We moeten dus onze lidstaten oproepen – niet in hun plaats treden, maar oproepen en ondersteunen – om de kwaliteit van ons onderwijs fundamenteel te verbeteren en op topniveau te brengen.

Daarvoor moeten we streven naar uitmuntende prestaties, met aandacht voor kennisoverdracht bij kinderen en scholieren. We moeten leerkrachten en docenten de ruimte geven om hun werk te doen: lesgeven. We moeten gebruikmaken van moderne digitale technieken in alle opleidingen. We moeten universiteiten laten samenwerken en uitwisselen, bijvoorbeeld met het Erasmus+‑programma, over de grenzen heen. We moeten technische opleidingen en kunstopleidingen elkaar laten bevruchten. We moeten onderzoekers en wetenschappers in de EU de nodige omkadering en infrastructuur bieden, zodat ze niet vertrekken. We moeten projecten waarin we veel geld hebben gestoken niet laten doodbloeden zolang er resultaten zijn, zoals nu met de fusiereactor JET dreigt te gebeuren. Goed onderwijs is de basis voor een sterk Europa.

Billy Kelleher (Renew). – Mr President, the Draghi report makes very sober reading for us in the European Union with regard to the challenges that we face in the digital economy and in the green economy in particular. Also, when you couple that with the demographic changes that are happening and the fact that we are an ageing population, our skills and labour force planning leaves a lot to be desired.

What has happened now is that we’ve been found out with regard to skills shortages in key areas right across the entire economy. For example, 54 % of EU businesses, big and small, report skills shortages as the most pressing issue facing them.

So we need to incentivise and reward upskilling and reskilling. We also need to promote lifelong learning, something that is more important as life expectancy increases over the years, and back‑to‑education and back‑to‑work as well. There are many cohorts of people, particularly women, who are not able to get back into the workplace because of a lack of support when finished with child rearing.

That is a key area where we have consistently failed across many economies in the European Union in terms of incentivising and supporting labour activation and back‑to‑work and back‑to‑education for cohorts that were locked out for various reasons.

So I hope that we invest in skills and lifelong learning and back‑to‑education, and support labour mobility as well.

João Oliveira (The Left). – Senhor Presidente, a produtividade do trabalho tem vindo a aumentar sempre acima da evolução dos salários reais. A consequência disto é a transferência de riqueza criada pelos trabalhadores para o capital, e esse problema só pode ser resolvido aumentando os salários e garantindo uma distribuição mais justa da riqueza criada. Essa é a questão de fundo.

Mas, este debate sobre a competitividade centra‑se, apenas, na comparação concorrencial com os Estados Unidos e a China. O relatório de Draghi é uma espécie de Bíblia não confessada da Comissão Europeia. Nesse relatório, os trabalhadores são vistos apenas como peças de uma engrenagem de produção, os seus direitos e necessidades não são considerados e a competitividade é abordada, dando prioridade à criação de empresas monopolistas pan‑europeias, à concentração e centralização do capital, ao agravamento da exploração de quem trabalha.

O caminho do desenvolvimento e da justiça social é outro e tem de ter no centro das preocupações e prioridades políticas os trabalhadores, os seus direitos, os seus salários, as suas condições de vida e uma distribuição mais justa da riqueza criada pelo trabalho.

Giusi Princi (PPE). – Signor Presidente, onorevoli colleghi, signor Commissario, la nostra capacità di rimanere competitivi e resilienti dipende dalla qualità delle competenze. La relazione Draghi evidenzia chiaramente come l’investimento in questo contesto sia essenziale per formare una forza lavoro altamente qualificata.

È questa l’unica via per garantire all’Europa un ruolo leadership nelle industrie chiave come il digitale, l’energia verde e la finanza sostenibile. Nei primi vent’anni del XXI secolo abbiamo assistito a forme di conoscenza e di produzioni innovative che, in ultimo, con l’avvento dell’intelligenza artificiale, hanno generato profondi cambiamenti professionali. Il 56% dei lavori sta scomparendo e subirà imponenti trasformazioni entro pochi decenni.

Occorre affrontare le nuove sfide ripensando a nuovi modelli educativi e formativi. L’Europa è ancora indietro negli investimenti, nella ricerca e nell’educazione rispetto a Stati Uniti e Cina. Ma anche all’interno dello stesso continente vediamo i Paesi del Nord investire maggiormente risorse umane rispetto alle aree marginali del Sud Europa.

Il gruppo PPE e Forza Italia, con il suo recente documento economico, sono fermamente convinti che l’Anno europeo delle competenze debba quindi rappresentare un’opportunità per investire in modo uniforme in ricerca, educazione e innovazione per arginare la mancanza di specializzazioni e la profonda carenza tra domanda e offerta di competenze.

Il nostro impegno, però, non può essere esclusivamente tecnico. Dobbiamo garantire che l’accesso alle competenze sia equo e inclusivo: tutti devono poter partecipare attivamente alla crescita europea per evitare che il progresso tecnologico crei nuove disuguaglianze.

Tiemo Wölken (S&D). – Sehr geehrter Herr Präsident, liebe Kolleginnen und Kollegen! Die Liste der Herausforderungen, die Draghi uns ins Pflichtenheft geschrieben hat, ist lang. Da ist der unvollendete Binnenmarkt, da ist eine unkoordinierte Industriepolitik und immer größer werdende Abhängigkeit bei kritischen Technologien, die letztlich unsere politische Handlungsfähigkeit, aber auch unsere Gesellschaft als Ganzes bedrohen. Wir diskutieren jetzt aktiv die Bewältigung dieser Mammutaufgabe. Aber zu oft bleiben wir dabei bei plakativen, einfachen Forderungen. Die einen sagen „mehr Subventionen“, die anderen sagen „weg mit jeglicher Bürokratie“ – und das Problem sei gelöst.

Diese vermeintlich einfachen Lösungen sind aber nicht die Antwort, denn Sie vergessen am Ende, worauf es ankommt – auf die Bürgerinnen und Bürger Europas. Wir brauchen für sie und mit ihnen eine digitale, eine grüne Transformation, die ganzheitlich ansetzt und den Menschen in den Mittelpunkt stellt. Und wir müssen fragen: Liebe Bürgerinnen und Bürger, was braucht ihr, um anzupacken, damit diese Transformation gelingt?

Und ja, dazu gehören auch Subventionen und bürokratische Entlastungen. Aber es geht um gute Arbeitsplätze, um Arbeitnehmerinnen- und Arbeitnehmerrechte, um unsere Lebensbedingungen in Europa und das richtige Handwerkszeug für uns Europäerinnen und Europäer, und deswegen müssen wir gemeinsam anpacken.

Beatrice Timgren (ECR). – Herr talman! EU vill överbrygga kompetensklyftan och öka konkurrenskraften enligt Draghi-rapporten. Men vad innebär det? Fler lånefinansierade bidrag som svenska sjuksköterskor och byggarbetare kommer att behöva betala och även framtida generationer.

Draghi vill införa EU-skatter och avskaffa vetorätten. Det här är ett direkt hot mot Sveriges självständighet.

EU föreslås också öka stödet till den digitala och den gröna omställningen. Det låter gulligt, men det blir en dyr affär för Sverige som redan är världsledande. Vi har redan plöjt ner miljarder i gröna prestigeprojekt som inte levererar. Räcker inte det?

Det är vanliga medborgares intressen som vi ska värna, inte EU-kläggets utopiska visioner, som gör det svårt att driva företag, betala elräkningen eller få vardagen att gå ihop.

Enligt tidningen Näringsliv borde Draghi-rapporten skrämma slag på EU. Jag undrar, lyssnar ni borgerliga EPP? Är ni beredda att hjälpa oss att skrota dessa galna planer?

Andrea Wechsler (PPE). – Sehr geehrter Herr Präsident, sehr geehrte Damen und Herren! Am gestrigen Abend saß ich mit vielen jungen Menschen aus der Textilindustrie zusammen, die die Hoffnungsträger dieser Branche sind. Ich saß aber auch mit vielen Unternehmerinnen und Unternehmern zusammen, die diese Branche vertrauensvoll in die Hände der nächsten Generation geben wollen. Die Diskussion drehte sich immer wieder um die Frage: „Wie können wir, Alt und Jung gemeinsam, in Europa zusammenstehen, um den Wandel und die Transformation in Europa hin zu einer nachhaltigen, zu einer digitalen Zukunft zu gestalten?“

Es zeigten sich immer wieder die zwei gleichen Herausforderungen: Es fehlt in der Textilindustrie, genauso wie in vielen anderen Branchen, der Nachwuchs; und zweitens stellen wir über die gesamte Arbeitnehmerschaft fest, dass essenzielle Kompetenzen, insbesondere im handwerklichen und digitalen Bereich, fehlen.

Diese Herausforderungen können wir sogar in konkrete Zahlen fassen. Fast drei Millionen junge Menschen in Deutschland zwischen 20 und 34 Jahren haben keinen Berufsabschluss. Ihnen fehlen die essenziellen Kompetenzen, die Qualifikationen, die unser Arbeitsmarkt auch braucht. Das ist kein deutsches Phänomen; wenn wir den Bericht von Herrn Draghi ansehen, sehen wir, dass 42 % der Europäer die digitalen Fähigkeiten nicht haben, die sie für die Zukunft in Europa benötigen.

Das ist nicht nur ein Alarmsignal, sondern das ist Auftrag für uns. Wir müssen mit aller Dringlichkeit den Fokus auf digitale und technische Kompetenzen legen und das in das Zentrum unserer Bildungslandschaft setzen. Wir müssen den Fokus auf lebenslanges Lernen legen und auch der älteren Generation eine Chance auf Weiterbildung geben.

Für uns Christdemokraten steht der Mensch im Mittelpunkt unserer Politik. Wenn wir in unsere Bürgerinnen und Bürger, unsere jungen Talente, unsere erfahrenen Kräfte investieren, investieren wir in die Zukunft Europas.

Tobiasz Bocheński (ECR). – Panie Przewodniczący! Dzisiejsza debata jest niesłychana, ponieważ kolejny raz, już niezliczoną liczbę razy dyskutujemy tutaj o tym samym. Unia Europejska znajduje się naprawdę w bardzo poważnym kryzysie gospodarczym i w kryzysie konkurencyjności, co wykazał raport Draghiego.

Ale przychodzicie tutaj, deliberujecie i posługujecie się ciągle tymi samymi okrągłymi określeniami, z których nic nie wynika. Konkurencyjność nie bierze się z biurokracji, konkurencyjność nie bierze się z nadregulacji, nie bierze się z inflacji prawa. Konkurencyjność budowana jest przez przedsiębiorców. Konkurencyjność budowana jest przez wolność gospodarczą, która jest gnieciona od czasu przyjęcia traktatu z Lizbony przez dyrektywy i rozporządzenia Unii Europejskiej. Nie gwarantujecie i nie dajecie żadnej rękojmi, że jesteście w stanie przeprowadzić jakikolwiek skomplikowany, ambitny program, który doprowadzi do zwiększenia konkurencyjności w Unii Europejskiej.

Powinniście zejść z tej drogi i dokonać głębokiej reformy ustawodawstwa europejskiego. Inaczej biegniemy ku ścianie i będziemy skansenem w porównaniu z Chinami i Stanami Zjednoczonymi.

(Mówca zgodził się na pytanie zasygnalizowane przez podniesienie niebieskiej kartki)

Tobiasz Bocheński (ECR), odpowiedź na pytanie zadane przez podniesienie niebieskiej kartki. – Ma pan częściowo rację, o tyle, o ile każde przedsiębiorstwo składa się zarówno z pracowników, jak i z pracodawcy. Ale nie jest prawdą, że powinniśmy akcentować jedynie rolę pracowników, ponieważ jeżeli tak będziemy robili, to doprowadzimy do sytuacji, w której nie będzie żadnych przedsiębiorstw i skończymy jak Związek Radziecki. Bogactwo narodów bierze się z pracy, jak pisał Adam Smith. Bogactwo narodów bierze się z przedsiębiorczości, a pracownicy mają dostawać godne wynagrodzenie za pracę, którą wykonują.

Paulius Saudargas (PPE). – Mr President, Commissioner, dear colleagues, Europe is in a vicious circle. We all knew it, but Mario Draghi clearly stated it: the king is naked.

We are not competitive anymore. We lack innovation. But who creates innovation? The people. But we are in a big shortage of those people. First of all, the demography. We are dying out. Secondly, the immigration does not solve the problem of shrinking labour force and does not reduce the skills gap because the migrants do not necessarily meet the right skills portfolio.

This debate should be a clear message to our educational sector as well. The universities and schools should provide more up-to-date programmes in accordance with the market demand. But, of course, I do not question the need for EU to invest more. Investment in our brightest people and their haute couture skills is a most worthy investment.

The skills shortage is a growing barrier to innovation. We have talent, but not enough. Europe produces only 850 science, technology, engineering and math graduates per million inhabitants per year, compared to more than 1 100 in the United States. So, having this type of dynamics, the problems will eventually grow. Additionally to the direct solutions in the educational system, we should also have in mind the demography and targeted immigration policy.

Dear colleagues, the developing artificial intelligence and its adaptation in various sectors will open problems in the labour market that we never faced. Let’s be aware.

Andrzej Buła (PPE). – Panie Przewodniczący! Panie komisarzu! Raport Draghiego i wiele innych badań oraz dokumentów pokazują, że mieszkańcy Europy dla własnego bezpieczeństwa zawodowego i poczucia osobistej wartości muszą mieć możliwość podnoszenia kompetencji i kwalifikacji. Chcemy, aby mieli warunki do kształcenia się przez całe życie. Trudno zmierzyć te wartości przez pryzmat potrzeb przedsiębiorców, ale wskazują oni, że konkurencja gospodarcza wymaga wysoko wykwalifikowanych kadr. Natomiast żaden mieszkaniec Europy nie powinien obawiać się, że czegoś nie umie, i bać się podejmować nowych wyzwań.

Europejski Fundusz Społeczny ma ogromny, lecz wciąż niewykorzystany potencjał w zapewnieniu ukierunkowanych szkoleń i możliwości podnoszenia kwalifikacji. Dlatego też program ten powinien być kontynuowany także po 2027 roku, z odpowiednim, wysokim budżetem, tak aby mógł pełnić kluczową rolę w wyposażaniu naszego społeczeństwa w umiejętności przyszłości.

Estelle Ceulemans (S&D). – Monsieur le Président, il est clair que des engagements forts doivent être pris pour améliorer les compétences et la formation, qui sont des composantes clés pour relever les défis des transitions climatique et numérique, mais aussi pour répondre à l’enjeu des pénuries d’emplois dans certains secteurs, comme ceux de l’aide aux personnes, des soins de santé et de l’enseignement.

Mais il est important de souligner que cette question est surtout liée à celle de la qualité de l’emploi dans ces secteurs dits en pénurie. Tout d’abord, les salaires sont souvent trop faibles. Il faut donc faire en sorte de les hausser. Mais les conditions de travail posent aussi problème. Il faut donc œuvrer ensemble pour mieux aborder des sujets tels que les risques psychosociaux, le surmenage, le télétravail et le droit à la déconnexion.

Enfin, reste la question de la conciliation entre vie privée et vie professionnelle. Ce point est déterminant pour mieux intégrer les femmes sur le marché du travail, il est aussi crucial pour les jeunes. Et puis, il faut reconnaître, et c’est essentiel, le rôle des interlocuteurs sociaux, qui sont les seuls à véritablement connaître les besoins des travailleurs et les réalités du monde du travail, et par conséquent à pouvoir répondre à ces enjeux de formation.

Axel Voss (PPE). – Herr Präsident, Herr Kommissar, liebe Kolleginnen und Kollegen! Wir können nicht wirklich geschockt sein über die Erkenntnisse aus dem Draghi-Bericht. Seit Jahren hören wir eigentlich das Klagen, und wir nehmen es irgendwie nicht wirklich ernst. Wann müssen wir eigentlich mal aufwachen, glaube ich?

Die digitale Agenda gehört an die Spitze unserer ganzen Agenda, und das muss wirklich ganz oben stehen, um die Menschen hier auch mitzunehmen. Bei dem digitalen Wettbewerb brauchen wir: erstens eine Garantie für die Hochgeschwindigkeitsverbindungen, für eine robuste digitale Infrastruktur; zweitens eine klare Strategie für digital skills, die die Ressourcen auch entsprechend bündelt; drittens ein EU-Visa-Programm auch für die digitalen Talente in der Welt; viertens eine offene und einheitliche Datenbank für Einzelpersonen und Unternehmen, um Umschulungsmöglichkeiten und Trainingsprogramme zu finden; und fünftens sollten wir auch umsonst Onlinekurse anbieten, um Kompetenzen im digitalen Bereich auch auszubauen.

Jedenfalls sollten wir diese Entwicklungen wirklich ernst nehmen, und wir können uns heute nicht ernsthaft darüber beschweren, dass jemand außerhalb der Europäischen Kommission oder außerhalb des Parlaments uns erzählt, was wir machen müssen; das sollte schon von uns selber kommen. Deshalb hoffe ich, dass wir diesen Weg jetzt auch endlich beschreiten.

Esther Herranz García (PPE). – Señor presidente, señor comisario, cuando hablamos del déficit de capacidades de competitividad, solemos siempre centrarnos en sectores relacionados con el desarrollo informático o la economía 4.0. Sin embargo, hay un sector económico clave para nuestra autonomía estratégica y nuestra competitividad al que no se le suele prestar atención, como es el de la agricultura y la ganadería.

En las últimas décadas ha habido una enorme evolución en el uso de las nuevas tecnologías y técnicas de precisión en el sector primario, que requieren formación específica y avanzada para que pueda exprimirse todo su potencial. En esta línea, quiero felicitar a la Comisión Europea por impulsar el Pacto por las Capacidades en el sector agroalimentario: sé que hay voluntad de seguir apoyándolo durante este mandato y así espero que sea. Es vital para el desarrollo del tejido económico de las áreas rurales y para incentivar el relevo generacional.

Y en esa misma línea, quiero aprovechar, antes de terminar, para pedir que se impulse una visión de la agricultura como sector económico atractivo también en las etapas formativas obligatorias. La agricultura y la ganadería deben ser un elemento fundamental en nuestras estrategias de competitividad y, sin atraer a futuros profesionales, será extremadamente difícil conseguirlo.

Marc Angel (S&D). – Mr President, dear all, closing the EU’s skills gap is a must for all transitions that our society, our workforce and our economy are facing now and in the future. When it comes to the climate and to digital transitions, we need to come back to a positive narrative – highlighting the opportunities, but of course also addressing fears and doubts.

To close our skills gap, we also need a true single market of skills by facilitating the recognition of the competencies of our workforces between our Member States.

I want to thank Commissioner Nicolas Schmit for the work already delivered with the European Years of Skills, individual learning accounts and the extension of the Erasmus+ mission. All this has improved access to vocational education and training for all, and we must continue on that path.

If the new Commission wants to use ‘skills, skills, skills’ as a mantra, we must not forget that our citizens, our workforce, young and old, will only embrace this if lifelong learning and upskilling lead to better jobs, to quality jobs.

Indeed, when we discuss skills, we have to address the social dimension of competitiveness and jobs, and cherish social dialogue.

Annalisa Corrado (S&D). – Signor Presidente, onorevoli colleghi, stiamo navigando in acque in tempesta, con profondi cambiamenti in atto che dobbiamo governare. Quando soffia il vento del cambiamento, gli stolti costruiscono muri, i saggi mulini a vento.

L’Europa, alla prova di questa sfida, deve saper costruire un sistema di formazione e ricerca inclusivo e integrato, che consenta di sviluppare competenze con uno sguardo sistemico e multidisciplinare a servizio del bene comune, a servizio della trasformazione ecologica e digitale delle nostre economie e società.

Serve una particolare attenzione alle competenze tecnico scientifiche. Impossibile governare questo cambiamento senza politiche di inclusione e sostegno per i giovani; impossibile, senza liberare l’enorme potenziale delle donne che sono tenute lontane dalle discipline tecnico-scientifiche da una spaventosa e antistorica arretratezza culturale, che non ha alcuna ragione di esistere: parola di ingegnera meccanica.

Colleghe, colleghi, a partire dal bilancio 2025 e per il quadro finanziario del prossimo settennato, servono risorse all’altezza di questa sfida.

Bruno Gonçalves (S&D). – Senhor Presidente, Mario Draghi avisou‑nos de que a Europa está a ficar para trás – uma economia menos competitiva, pouco inovadora e dependente de importações. A resposta da direita é sempre a mesma: cortes indiscriminados de impostos em benefício sobretudo das grandes empresas multinacionais. Mas não é assim que nós conseguimos mudar o nosso rumo.

Reduzir o diferencial para os Estados Unidos e para a China, mas também para as assimetrias internas da nossa União, desenvolvendo as economias periféricas, exige uma indústria a sério, que contribua para uma redução das emissões com mais energias renováveis, uma indústria limpa, sustentável, que ofereça bons empregos para todos, sejam mais ou menos qualificados.

Uma revolução digital tem também de ser social. Para isso, não há melhor solução do que investir nas pessoas. Só assim podemos garantir que a Europa de hoje tenha mão de obra especializada que nos faz falta; e, mais importante do que isso, que no futuro ninguém fica para trás. Ou esta é uma socialmente justa transição ou corre o risco de nunca ver a luz do dia.

Catch-the-eye procedure

Hélder Sousa Silva (PPE). – Senhor Presidente, Caro Comissário, Caros Colegas, o relatório de Draghi é bem claro: sem trabalhadores qualificados, o nosso futuro está claramente em risco. Hoje, as competências vão muito além da matemática e da gramática, é preciso dominar o digital e dominar também áreas transversais, como a sustentabilidade e a criatividade.

Aqui, o Erasmus+ é verdadeiramente um aliado e este programa é muito mais do que mobilidade, é uma ponte entre a educação e o mercado de trabalho. Por isso, os cortes propostos pelo Conselho para o programa Erasmus+ são um erro estratégico e são verdadeiramente inaceitáveis. Daí que o Parlamento – e bem – proponha um reforço, para o ano de 2025, de cerca de 70 milhões de EUR.

Agora, é tempo de agir, fortalecendo a competitividade, através do reforço da formação na nossa União.

PRESIDENZA: PINA PICIERNO
Vicepresidente

Nina Carberry (PPE). – Madam President, Commissioner, the greatest asset that Europe has is its people. Since its inception, the European Union has funded and driven the development of its people through education, skills and apprenticeships.

But if we are to compete on a global scale, we need to break down the barriers that are causing the skills gap in Europe. Housing, infrastructure, red tape, the cost of living – things that are not just unique to Ireland – are the main barriers. And while our urban areas are very attractive for our young skilled workforce, we need a more comprehensive plan for our rural areas. In my constituency, in the Midlands–North-West in Ireland, young people often see Dublin and other urban areas as their only option for work and education.

The EU needs to be at the forefront of solving these problems with a comprehensive plan for the development of rural areas. We need to show young people that their future can be at home, that they can innovate and thrive, not tens of thousands of miles away, but right here in the European Union.

Tomislav Sokol (PPE). – Poštovana predsjedavajuća, države članice, sve se više susreću s problemom nedostatka radne snage, a 54 % poduzetnika ističe da je žurno potrebno riješiti ovaj problem.

U Draghijevom izvješću ispravno je primijećeno da su uzroci manjka radne snage neusklađenost obrazovnih sustava s potrebama tržišta rada, sve manji broj radno aktivnog stanovništva, ali i loši radni uvjeti gdje svakako spadaju i nekonkurentne plaće. Nedostatak kvalificirane radne snage i dalje je najvažniji ograničavajući čimbenik proizvodnje i sprečava jačanje europske konkurentnosti, a posebno ovim problemom pogođen je sektor turizma. Pored toga, nedostatak medicinskog osoblja, među kojima liječnika, medicinskih sestara i primalja, odavno je poznat i bitno utječe na kvalitetu pružanja zdravstvene skrbi pacijentima. Međutim, uvoz nisko kvalificirane radne snage iz trećih država nije dugoročno rješenje za ovaj problem. Zato odobravanju radnih dozvola ne smijemo olako pristupati. Stoga je važno kontinuirano raditi na poboljšanju radnih uvjeta, prilagođavanju obrazovnih programa potrebama tržišta rada, posebno u STEM području, te oblikovanju programa prekvalifikacija.

Kolegice i kolege, neograničen uvoz radne snage dugoročno je neodrživ. Zato EU mora hitno djelovati na više razina. Očekujem stoga da nova Komisija u prvih 100 dana predstavi Akcijski plan za rješavanje pitanja nedostatka radne snage.

Maria Grapini (S&D). – Doamnă președintă, domnule comisar, nu discutăm un subiect nou. De foarte mult timp constatăm că avem decalaje de competențe în Uniunea Europeană. Problema este, domnule comisar, dacă găsiți metodele bune, dacă se aplică. Avem multe programe: de reconversie, programe pentru competențe, mecanisme de ajustare, dar care este rezultatul? Vedem că nu reușim să eliminăm acest decalaj de competență. De ce?

Educația trebuie suprapusă peste cerințele economiei. Avem o strategie acum de reindustrializare. De ce competențe avem nevoie? N-avem nevoie numai de diplome, avem nevoie de personal calificat. IMM-urile – 4 din 5 – nu-și găsesc oameni calificați. Nici celelalte companii n-au curajul să investească pentru că nu au personal calificat. De aceea, domnule comisar, sper ca noua Comisie să gândească când investește dacă are și un rezultat al investiției, și anume să eliminăm acest decalaj de competențe din Uniunea Europeană și între statele membre, dar și în raport cu piața globală.

Branislav Ondruš (NI). – Vážená pani predsedajúca, dámy a páni, pri investíciách, aby znalosti a zručnosti pracujúcich zodpovedali technológiám či novým pracovným postupom, musíme dávať dôraz na to, aby z toho nemali prospech len firmy. U nás posilňujeme minimálnu mzdu, aby rástli aj tie ostatné, lebo zamestnávatelia si stále málo uvedomujú, že lepší zárobok a lepšie pracovné podmienky sú kľúčovou motiváciou pre celoživotné vzdelávanie. Ak nemajú ľudia zarábať viac, prečo by mali získavať nové znalosti a zručnosti len preto, lebo firmy, pre ktoré pracujú, budú konkurencieschopné? Lenže konkurencieschopnosť firiem, dámy a páni, má význam, iba ak sa prejaví aj na lepších pracovných podmienkach a vyšších platoch zamestnancov, nielen na ziskoch korporácií. Na Slovensku vytvárame systém individuálnych účtov, ktoré budú ľuďom poskytovať financie na vzdelávacie kurzy. Chcem presadiť, aby zamestnanci absolvovali vzdelávanie výlučne v pracovnom čase, a teda aby za čas strávený v kurze im firmy dali mzdu. Keďže kurzy zaplatíme z daní ľudí, považujem za férové, aby firmy prispeli aspoň takto.

Grzegorz Braun (NI). – Madam President, ladies and gentlemen, this is no crisis. This is the result of your socialist policies. Just like famous and notorious socialist leaders Hitler, Stalin, Roosevelt had their plans – five-year plans, four-year plans, New Deal – so you have your Green Deal, Blue Deal, your migration pacts and so on and so on.

You just can’t stop designing people’s future, stop messing around with our lives and our property. You don’t understand that you’re the main obstacle. While the other nations are conquering space, you’re changing bottle caps.

This is the dimension of your ability. So please stop. The European Union has to be overthrown because the only dimension in which you could and you should be active is stability and security. The majority of you here are warmongers. So, the European Union, the Euro cohorts, should be overthrown.

Milan Mazurek (NI). – Vážená pani predsedajúca, pomaly každý deň tu hovoríme stále o tom istom. Európska únia zaostáva, naše štáty sa prepadajú do chudoby. mladí ľudia si nie sú schopní zadovážiť normálne dostupné bývanie, pretože ceny nehnuteľností sú extrémne vysoké. Ale s čím máte, kolegovia, najväčší problém, je pomenovať vinníka tohto stavu. Ten vinník ste práve vy, ktorí hlasujete za väčšinu týchto nezmyselných európskych politík. Vinníkom sú ľudia, ktorí podporili v tomto pléne greend deal, ktorý obmedzuje životy ľudí na tej najzákladnejšej bazálnej úrovni. Vy zavádzate emisné povolenky pre domácnosti, vy predražuje palivá, vy spôsobujete vašimi ekonomickými sankciami, že život v Európe sa jednoducho prepadáva k stále horším a horším atribútom. Potom sa divíte, že Čína, Amerika, Rusko Európskej únii unikajú? Vy jednoducho potrebujete prestať s týmito nezmyselnými plánmi a nechať ľudí žiť normálne slobodne prosperovať a vyvíjať sa tak, ako to bolo v Európe odveky, keď Európa bola práve nositeľom inovácií vo svete. Toto plénum, Európska komisia a Európska rada sú kľúčovým dôvodom, prečo sa dnes takýmto spôsobom prepadáme.

(Fine della procedura “catch the eye”)

Janusz Wojciechowski, Member of the Commission. – Madam President, honourable Members, thank you very much for all contributions in this very interesting, inspiring debate. Particularly, as Commissioner for Agriculture, I’d like to thank those speakers who mentioned the importance of skills and education in agriculture. The modern agriculture requires high skills. Education and multidisciplinary knowledge is needed in this difficult job.

There was in many speeches the question to compare development between the European Union and the United States. Maybe this is a good opportunity to mention that, in agriculture, despite having two times less agricultural land and having 12 times smaller farms in the European Union, the value of agricultural production is higher in the EU than in the US.

We have also a very positive trade balance with United States, because the value of exports is about EUR 28 billion and imports about EUR 11 billion.

Thank you again for the discussion. Adapting skills policy to the changing society and the changing labour market is, by definition, a continuous process. The European Year of Skills has left an important legacy. This legacy is reflected in the political guidelines of President von der Leyen, committing to the establishment of a Union of Skills in her next mandate. Europe needs this overarching political strategy to close the skills gap, to strengthen our competitiveness and social well-being.

Presidente. – La discussione è chiusa.

4. Abuse of new technologies to manipulate and radicalise young people through hate speech and antidemocratic discourse (debate)

Janusz Wojciechowski, Member of the Commission. – Madam President, honourable Members, respect for human dignity and fundamental rights, including equality, are founding values of the Union.

Hate speech, inciting violence and hatred on the grounds of race, colour, religion or ethnic origin is illegal in the EU also when it happens online. Hate waves starting online lead to polarisation and radicalisation and many turn into violent attacks.

We have seen that new technologies are abused to foster anti-democratic views. Young people are particularly targeted and exposed. We must help young people become more resilient to extreme views. For them and for our democracies, as youngsters are the citizens of tomorrow.

The EU horizontal framework to create a safer online space is the Digital Services Act (DSA). Under the DSA, online platforms have to set up new and user-friendly mechanisms to flag illegal content, and they must better explain their content moderation decisions. They are also obliged to promptly inform law enforcement or judicial authorities of any suspicion of a criminal offence involving a threat to the life or safety of a person.

The major platforms like TikTok, Instagram, Facebook, Snapchat or YouTube need to identify and assess any systemic risk their services may pose. They need to ensure that illegal contact content does not go viral easily, and adapt their algorithms to protect minors.

During the last six months, the Commission has opened investigations against TikTok, Meta and Instagram related to the protection of minors. The industry has committed to a voluntary code of conduct on countering illegal hate speech. Signatories must swiftly review hate speech noticed within 24 hours and swiftly remove illegal content. An updated version of this code is in the process of being integrated in the Digital Services Act, thus becoming part of its risk mitigation approach.

The response of hate speech needs to involve citizens at large. We made this clear in the Commission communication of December last year on combating hate. In June, the Commission organised a European Citizens’ Panel on tackling hatred in society and focusing on digital threats. It showed that dialogue can overcome polarisation. The Commission is committed to following up on the citizens’ recommendations.

In the fight against disinformation, the EU supports the European Digital Media Observatory. Independent fact-checkers, researchers and media literacy experts detect, analyse and expose potential disinformation threats. A wide network of trusted vloggers are already active in identifying illegal hate speech. They will soon benefit from the trusted flagger mechanism in the DSA.

In the fight against hate and disinformation, it is also crucial to promote transparency, democratic accountability, pluralism and free and vibrant democratic debates. Last year, to support young citizens in the exercise of their electoral rights, the Commission adopted recommendations to Member States. This led to the signature of a joint code of conduct by European political parties ahead of the recent European Parliament elections. Your parties agreed to encourage inclusive political discourse and committed to refrain from disseminating content that incites violence or hate speech.

Young people constitute a vulnerable group which can be exploited through the misuse of political advertising. With the new Political Advertising Regulation, it will not be possible to target political ads to young people at least one year under the voting age. Education plays a vital role in equipping all young people with the competencies to think critically about the content and discourse they encounter online and to actively combat efforts to radicalise and divide.

Democratic citizenship education should equip all citizens with specific competencies to build their resilience against disinformation. Digital literacy is a key prerequisite for informed, confident and empowered digital citizens. The digital education action plan frames the commitment to implementing high-quality and inclusive digital education.

Honourable Members, radicalisation is a complex process. It starts when somebody embraces an ideology or belief that accepts violence to reach a political or ideological goal. Artificial intelligence is increasingly being used for the dissemination of violent and terrorist content online that can lead to radicalisation.

To counter that, the Commission has taken a number of important actions. This year we launched the EU Knowledge Hub for Prevention of Radicalisation to support Member States in preventing violent extremism at national level. Terrorists and violent extremists misuse the internet to spread their message to intimidate, radicalise, recruit and facilitate their actions.

The European Union Internet Forum brings together tech companies, Member States, law enforcement agencies, civil society organisations and academia. Together, they develop concrete actions to address violent extremism and terrorist content online.

In 2021, we adopted a regulation allowing Member States to issue removal orders of terrorist content to online service providers to be acted upon within 24 hours. So far, more than 1 100 removal orders were already issued.

Looking after the well-being of younger people and children is a duty that we all have. We need to support them and give them the means they need to stand strong in the face of polarisation and not to fall prey to radicalisation. We need to understand the broader impacts of social media on them, and it is with this in mind that President von der Leyen announced an EU-wide inquiry on this topic in her political guidelines.

I look forward to listening to your views in this multidimensional challenge.

Lídia Pereira, em nome do Grupo PPE. – Senhora Presidente, o discurso do ódio online pode ser virtual, mas as consequências são bem reais. Há estudos que mostram que, em países como Portugal, um em cada dez jovens é vítima deste tipo de violência – um círculo vicioso que se perpetua, com vítimas a tornarem‑se agressores, e que vai afetando gerações. Embora as ofensas sejam virtuais, elas, de facto, têm impacto nas vidas reais; e a história de Nicole Fox, Coco, é um exemplo duro, como o PPE bem demonstrou numa campanha recente.

No entanto, homens e mulheres sofrem de forma diferente com este fenómeno. Em Portugal, um grupo de Telegram onde 70 000 participantes, pessoas, devassam a intimidade das mulheres e, em alguns casos, de familiares. Este caso merece a nossa condenação e consternação. Seja a participação, a presença ou a própria existência desse grupo merecem o nosso repúdio. Este é um exemplo de um caso, e permitam‑me utilizar a palavra, de um caso nojento e inaceitável, cuja resposta só pode ser uma: meios para investigação e mão pesada nas penas.

Mas, este combate não pode transformar‑se numa censura digital. Não podemos, sequer, cair na tentação de privatizar a responsabilidade pela gestão do discurso público digital, ao responsabilizar apenas as plataformas digitais. Isso representaria uma censura privada. Precisamos de maior capacitação judicial, maior colaboração com as plataformas digitais, maior consciencialização dos utilizadores – especialmente dos mais jovens – na utilização e nos riscos das redes sociais.

O buraco negro do mundo digital cresce. O respeito entre homens e mulheres alicerça a convivência, a concórdia e a harmonia em sociedade, e esse, sim, tem de ser real.

Alex Agius Saliba, on behalf of the S&D Group. – Madam President, what is illegal offline should be illegal online. Tech firms often use every dirty trick that they can think of to maximise their profits and keep their audience hooked through sensationalist and harmful content. Unfortunately, violent extremists are using the same tricks, and with predatory algorithms, troll farms and bots spewing misinformation and disinformation, catchy memes and short clips are finding ways to recruit, socialise and target young people that are particularly vulnerable to online propaganda, hate speech and violent content.

The problem is not a new one, yet for many years we have treated the web as the digital Wild West, where everything was allowed. To change this, we must ensure that companies running social media platforms are not exploitative and do not cause harm, and that they keep their services safe and free from hate speech, misinformation and malicious algorithmic activities. To this end, we need to properly enforce the legislation already in place, demand results and impose larger sanctions on tech giants that fall short.

Second, we need media and digital competences enshrined to all educational levels and for all generations. This will help young people, in particular, to develop critical‑thinking skills and build resilience to violent, extremist and terrorist content online. Young people need to know their rights, distinguish facts from opinions, understand how societies work and should work, the value of privacy and the protection of their personal data, and how technologies and social media can be manipulated, and how to safeguard themselves against it.

Last but not least, we need to address the root causes of radicalisation, since there is no single cause or pathway into radicalisation and violent extremism. The digital technologies might be a facilitator, but they are rarely the cause. Radicalisation doesn’t happen overnight and, as a community, we all have a crucial role to play in ensuring our young people remain safe.

Jorge Buxadé Villalba, en nombre del Grupo PfE. – Señora presidente, jamás en la historia de Occidente el ser humano ha sido sometido a este nivel de censura y tortura intelectual, convirtiendo al criminal en víctima y a la víctima en criminal.

Publicar un tuit preguntando cuál es la nacionalidad del último asesino o violador en Barcelona no es un crimen; no es un crimen denunciar que las mujeres han perdido 900 medallas en competiciones deportivas porque hombres que dicen ser mujeres les han arrebatado los triunfos injustamente; no es un crimen publicar que tu novia se siente insegura desde que el presidente de turno de tu región decidió abrir un centro de inmigrantes ilegales en tu barrio; no es un crimen denunciar los asesinatos masivos de inocentes por parte de comunistas en Paracuellos o en Katyn; no es un crimen publicar la foto de un feto triturado en una clínica abortista; no es un crimen contar que España civilizó a América, acabó con el canibalismo y construyó hospitales, templos y universidades.

Pero sí es un crimen introducir algoritmos para dirigir al usuario hacia los mensajes que los millonarios quieren que veas en Telegram o en Facebook; bloquear y suspender la cuenta de Donald Trump; ofrecer a Elon Musk —como hizo la Comisión Europea— un acuerdo secreto e ilegal para censurar el discurso político a cambio de no ser multado; detener a decenas de británicos por convocar en redes sociales manifestaciones contra la inseguridad y la inmigración ilegal; utilizar el Centro para Contrarrestar el Odio Digital del Reino Unido para matar la red social de Elon Musk; o, como está haciendo Kamala Harris, pagar a falsos verificadores de noticias para desinformar y cancelar.

Así que, jóvenes, seguid haciéndolo: contad lo que vivís, denunciad a los responsables y sentíos libres para expresar lo que os dé la puñetera gana. La libertad de expresión es la libertad de los patriotas.

Piotr Müller, w imieniu grupy ECR. – Pani Przewodnicząca! Nie ma wątpliwości co do tego, że powinniśmy zajmować się ochroną przed treściami, które mogą być szkodliwe, przed treściami, które mogą wpływać źle na społeczeństwo, a w szczególności na wychowanie dzieci.

Natomiast w tej Izbie i również w Komisji Europejskiej ten temat jest wykorzystywany bardzo często do tego, aby podjąć kroki idące o wiele dalej. Kroki, które powodują, że ogranicza się możliwość swobody wypowiedzi. Kroki, które powodują, że wprowadza się prewencyjną cenzurę. Wreszcie kroki, które powodują, że pada propozycja wycofania się z możliwości szyfrowania danych, szyfrowania komunikacji w takich komunikatorach jak Signal, WhatsApp, Messenger i tak dalej.

Komisja Europejska ostatnio przedstawiła jeden z projektów, który zakłada między innymi właśnie likwidację szyfrowanej komunikacji i prewencyjne skanowanie treści obywateli. Szanowni państwo, to jest chyba wersja chińskiego internetu, a nie europejskiego!

Ja od Komisji Europejskiej domagam się jasnej deklaracji, że projekt Chat Control pod kątem likwidacji szyfrowania zostanie wycofany. To jest pierwsza rzecz. I domagam się wreszcie odpowiedzi na pytanie, czy proponowaliście nielegalne porozumienia pod adresem X, pod adresem Elona Muska?

Laurence Farreng, au nom du groupe Renew. – Madame la Présidente, Monsieur le Commissaire, depuis peu la propagande néonazie est devenue cool. Ça s’appelle le «pop fascisme», ça fait florès sur les réseaux sociaux, c’est du prêt-à-penser pour les jeunes. Il y a quelques semaines, j’ai été profondément choquée en découvrant un clip et un jeu vidéo sur le thème de la remigration créé par la branche jeunesse de l’AfD, parti allemand d’extrême droite dont quatorze députés siègent ici, dans ce Parlement. C’est pourquoi j’ai demandé ce débat. Les images, créées par intelligence artificielle, utilisent tous les codes de la propagande nazie. On y voit des personnes blanches, blondes, aryennes, qui dansent sur de la musique techno en refoulant dans des avions des personnes racisées. Le refrain? «Nous les renvoyons tous!» C’est intolérable.

Si les œuvres racistes envahissent l’internet, je note ici une escalade, parce que ce clip et ce jeu vidéo ont été créés par un parti politique – l’AfD. On peut certes s’abriter derrière les législations. Oui, nous avons le règlement sur les services numériques pour rendre les plateformes responsables des contenus qu’elles hébergent – et notamment TikTok, quand on s’adresse aux jeunes. Oui, il faut rendre ces plateformes responsables, mais, à ma connaissance, cette vidéo circule toujours sur X.

Alors qu’en France, par exemple, un jeune sur cinq ne sait pas ce qu’est la Shoah, il faut aller plus loin et condamner effectivement tous les contenus racistes, en commençant par sanctionner les ennemis de la démocratie qui sont déjà parmi nous.

Pernando Barrena Arza, en nombre del Grupo The Left. – Señora presidenta, como todo cambio disruptivo, las enormes ventajas derivadas de la utilización de las nuevas tecnologías también tienen otra cara, en este caso proporcionada por la deshumanización que permite el anonimato. El crecimiento de las posiciones de ultraderecha tiene mucho que ver con la manipulación online para difundir mensajes de odio y antidemocráticos, desde los deepfakes a la mera difusión masiva de información falsa y difamante: todo vale. Y hasta las nuevas mayorías en este Parlamento tienen mucho que ver con la utilización de esos recursos oscuros. Creo que ustedes ya me entienden.

Es especialmente grave que las plataformas que permiten este comportamiento estén en manos de magnates que las explotan en clave pura y dura de negocio. Son cuentas empresariales que no tienen ningún interés ni responsabilidad social y a quienes no interesan ni la veracidad ni el interés público.

Existe una necesidad de nuevas plataformas, nuevas herramientas moderadas en contenidos veraces y legítimos, por encima de la rentabilidad y de la cuenta de resultados, que prioricen el interés público. No hay iniciativa privada que asegure el interés público; esto solo puede ser garantizado desde el ámbito público y, por lo tanto, emplazamos a la próxima Comisión a que nos haga llegar una reflexión sobre cómo desde ese ámbito público europeo se pueden crear nuevas plataformas que superen el modelo de negocio actual y garanticen la utilidad pública.

Petras Gražulis, ESN frakcijos vardu. – Sveiki, esu paskutinis Sovietų Sąjungos politinis kalinys. Dėl to, kad kovojau prieš komunizmą, prieš šią ideologiją, buvau sovietiniuose lageriuose kalinamas. Šiandien, atgavus nepriklausomybę Lietuvai, ir vėl matosi kuriama nauja ideologija – genderistinė ideologija, baisesnė už komunistinę ideologiją. Ir tie, kurie gina krikščioniškas vertybes, pasisako prieš genderizmą, jie yra persekiojami Europos Sąjungos, jie yra teisiami. Neduok Dieve, „Facebook’e“ ar socialiniame tinkle išsakysi savo krikščionišką poziciją, kad tai yra nusikaltimas, homoseksualizmas. Tu būsi teisiamas. Ir man Lietuvoje iškelta byla, kad skaičiau apaštalo Pauliaus laišką romiečiams. Kur mes einame? Ta pati diktatūra, sukurta Europoje, tik ne komunizmo, o kažkokio genderizmo ir prisidengiant žmogaus teisių pagrindu. Mes einame, Europa, į susinaikinimą. Kadangi atsisakome savo vertybių, priimame kažkokią tai iškrypusią ideologiją. Kai atėjo galas Sovietų Sąjungai, ateis galas ir Europos Sąjungai, jeigu ji nekeis savo ideologijos ir nedraus žodžio laisvo, o krikščionims išpažinti ir reikšti savo tikėjimą.

Ελεονώρα Μελέτη (PPE). – Κυρία Πρόεδρε, αγαπητοί συνάδελφοι, στη χώρα μου, την Ελλάδα, πρόσφατα, μια ομάδα ανήλικων κοριτσιών οργάνωσαν μέσω διαδικτυακής πλατφόρμας τον ξυλοδαρμό μιας συμμαθήτριάς τους. Τα ηχητικά μηνύματα και το οπτικό υλικό που είδαν το φως της δημοσιότητας ήταν σοκαριστικά. Το βίντεο του ξυλοδαρμού έγινε viral. Το κορίτσι κατέληξε στο νοσοκομείο και οι φίλοι της παρακίνησαν τον κόσμο σε εκδίκηση μέσω ρητορικής μίσους, δημοσιοποιώντας στα μέσα κοινωνικής δικτύωσης τα στοιχεία των δραστών. Στο Βέλγιο ένας άνδρας αυτοκτόνησε γιατί εικονικός συνομιλητής, προϊόν τεχνητής νοημοσύνης, τον έπεισε να θυσιάσει τη ζωή του για να σταματήσει η κλιματική αλλαγή. Σε πολλά κράτη μέλη οι ίδιες οι πλατφόρμες χρησιμοποιούνται για να πολώσουν και να στρατολογήσουν νέους για τρομοκρατικές επιθέσεις.

Είναι ξεκάθαρο πως οι νέες τεχνολογίες αποτελούν πλέον ένα νέο κανάλι διάδοσης εξτρεμιστικών απόψεων και στρατολόγησης ατόμων σε εγκληματικές πράξεις. Η Ευρώπη πρέπει να αντιδράσει και να δράσει. Έχει γίνει μια καλή αρχή με τους κανόνες που περιγράφονται στην πράξη για τις ψηφιακές υπηρεσίες. Χρειάζεται όμως και άλλη πίεση. Οφείλουμε να ποινικοποιήσουμε τη ρητορική μίσους. Χρειάζεται η ανωνυμία του διαδικτύου να αίρεται όταν αυτό είναι απαραίτητο. Πρέπει να βρεθεί ένας τρόπος να δαμάσουμε τη σκοτεινή πλευρά της τεχνητής νοημοσύνης. Είναι ανάγκη να ελέγχεται η πρόσβαση των παιδιών στο διαδίκτυο και να απαγορεύεται ρητά σε συγκεκριμένες παιδικές ηλικίες για το καλό όλων μας. Στη χώρα μου, η κυβέρνησή μας έχει ήδη ενσωματώσει την πράξη για τις ψηφιακές υπηρεσίες. Η Επιτροπή όμως οφείλει να ελέγχει την ενσωμάτωση του κανόνα σε όλα τα κράτη μέλη.

Οι νέες τεχνολογίες έχουν να προσφέρουν πολλά καλά στην ανθρωπότητα, αλλά αυταπόδεικτα μπορούν να μετατραπούν σε σκληρά όπλα, ικανά να προάγουν τον τρόμο, το ψέμα, το φόβο, το μίσος, τη βία. Είναι στο χέρι μας αυτό να αλλάξει.

Sabrina Repp (S&D). – Frau Präsidentin! Neue Technologien bieten große Chancen: Sie eröffnen den Zugang zu einer Welt des Wissens und der Vernetzung. Doch es gibt auch eine Kehrseite: Die Macht der großen digitalen Plattformen ist mittlerweile überdimensional gewachsen. Es beunruhigt mich, dass wir uns auf die moralischen Vorstellungen der wenigen Milliardäre verlassen, die diese Plattformen kontrollieren. Wir sollten uns nicht von der Tageslaune eines Elon Musk, eines Mark Zuckerbergs oder gar eines Wladimir Putins abhängig machen.

Der Einfluss dieser Plattformen auf unsere Demokratie ist unübersehbar. Der Brexit war nur ein Vorgeschmack dessen, was passieren kann, wenn Algorithmen entscheiden, welche Inhalte wir sehen. Je radikaler der Inhalt, desto mehr Klicks bekommt er. Und das Ergebnis: eine verzerrte Realität, in der Angst, Hass und Misstrauen gegenüber unseren demokratischen Institutionen genährt wird. Das machen sich auch Abgeordnete der AfD hier aus dem Europäischen Parlament zu eigen: Wenn sie beispielsweise auf TikTok eine klare Abneigung gegenüber Immigration, Islam oder queeren Rechten zeigen, werden häufig Fake News und Hassreden verbreitet.

Besonders betroffen von diesen Entwicklungen sind junge Menschen. Oft fehlt das Bewusstsein, um zwischen wahrer Information und gezielter Desinformation zu unterscheiden. Die psychologischen und emotionalen Auswirkungen von Hassrede und Hetze auf Jugendliche sind enorm; sie gefährden ihr Vertrauen in die Gesellschaft, in die Demokratie und in ihre Zukunft. Auch das sehen wir beim Wahlverhalten junger Menschen bei den Ost-Landtagswahlen in Deutschland: In Thüringen setzten laut der Forschungsgruppe Wahlen 35 % der Menschen zwischen 18 und 29 Jahren ihr Kreuz bei der AfD.

Wir müssen digitale Plattformen daher stärker in die Pflicht nehmen. Es braucht klare Regeln und effektive Mechanismen, um hasserfüllte und antidemokratische Inhalte schnell zu erkennen und zu entfernen. Zudem müssen wir zivilgesellschaftliche Organisationen, die gegen eine solche Radikalisierung kämpfen, stärker unterstützen und gemeinsam Hassrede und Fake News entgegentreten.

Das Internet soll ein Ort des Wissens und des Miteinanders bleiben und kein Raum, der unsere Demokratie untergräbt.

Ивайло Вълчев (ECR). – Уважаеми колеги, безспорно трябва да се борим срещу радикализацията в интернет, но аз бих казал, че трябва да осъждаме всяка една дискриминация и радикализация.

Да, расизмът и ксенофобията са недопустими, но нека със същия плам да осъждаме и радикалните действия на зелени активисти, които застрашават обществения ред и сигурността. Заливането на културно наследство с боя, блокирането на пътища и летища не могат да бъдат приемливи форми на протест. А твърде често виждаме как те биват нормализирани.

От друга страна, скъпи колеги, технологиите сами по себе си не могат да бъдат винени за процеса на радикализация на младите там, където това се случва. Общественият дебат в последните десетилетия прие твърде рязък идеологически завой наляво. Това означава, че днес политически позиции, например срещу еднополовите бракове или срещу нелегалната миграция, oт допустими в обществения дебат преди години сега се обявяват за радикални. И ако това имате предвид под антидемократични изказвания, то аз ви поздравявам. Джордж Оруел би се гордял с вашия новговор.

Христо Петров (Renew). – Уважаеми колеги, ние тук си говорим за нови технологии и за социални мрежи и казваме, че те са част от живота на младите хора, но за много млади хора социалните мрежи не са част, те са целият им живот и това е проблем. Проблем е, защото освен загубата на време, човек става много по-лесно жертва на пропаганда, на радикализация или проводник на реч на омразата.

Замислете се колко от вас в тази зала, ако имаха шанса да се върнат в своето детство или в своята младост, биха прекарвали времето си в социалните мрежи. Аз вярвам, че решението на проблема, който обсъждаме, е в образованието, в образование, което да подготвя младите хора за съвременната реалност и да им обясни една проста истина, че няма нито един успешен човек на тоя свят, който да прекарва основното си време в социалните мрежи.

Alexandra Geese (Verts/ALE). – Frau Präsidentin, Herr Kommissar, sehr verehrte Kolleginnen und Kollegen! Nazipropaganda, rechtsextreme Hetze, Hass auf Frauen oder extremistischer Salafismus: auf TikTok findet man das alles. Aber welcher junge Mensch sucht denn aktiv nach solchen Inhalten? Fast niemand. TikTok sorgt dafür, dass sie sie trotzdem sehen, denn die Plattform spült grenzwertige Videos in die Timeline. Und wer aus Neugier oder sogar Entsetzen den Fehler macht, sie bis zu Ende zu schauen oder gar zu kommentieren, vielleicht auch kritisch, der bekommt immer wieder den gleichen Content vorgesetzt und landet in einem rabbit hole.

Und wenn man überlegt, dass im Durchschnitt Nutzer 1,5 Stunden am Tag auf TikTok verbringen, dann kann man sich vorstellen, was passiert, wenn jedes zweite oder dritte Video extremistisch ist: Dann entsteht ein Weltbild, das mit der realen Welt praktisch nichts mehr zu tun hat. Und so werden Menschen radikalisiert – islamistisch, rechtsradikal, antisemitisch oder frauenfeindlich.

Mit Technologie hat das nichts zu tun, aber ganz viel mit Geschäftsmodell. Aber glücklicherweise können wir handeln. Mit dem Digital Services Act können wir diese Radikalisierungsalgorithmen so ändern, dass Nutzerinnen und Nutzer ihre Inhalte selbst auswählen können und dass sie ihnen nicht vorgesetzt werden. Und das ist jetzt unsere dringlichste Aufgabe, um die Demokratie, aber auch die Sicherheit unserer Bürgerinnen und Bürger in Europa zu schützen.

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

Sebastian Tynkkynen (ECR), sinisen kortin kysymys. – Arvoisa puhemies, olen puhujan kanssa aivan samaa mieltä siitä, että natsipropagandaan pitää puuttua. Se on väärin, ja olitte huolissanne siitä, kuinka se lisää antisemitismiä. Minä ihmettelen sitä, että te kuitenkin jätätte sen puolen mainitsematta, mikä on tällä hetkellä suurin syy antisemitismiin niin TikTokissa kuin muissa kanavissa. Nämä videot, joissa huudetaan, että “From the river to the sea”, eli Hamas-symppaaminen, se leviää tällä hetkellä. Miksi jätitte tämän asian mainitsematta?

Alexandra Geese (Verts/ALE), blue-card answer. – You might have noticed from my speech, I am German and I know that the biggest source of antisemitism has not come from Palestine, but from Europe. I have studied my history.

As far as current antisemitism is concerned, I don’t care what the source is. I don’t care if it’s far right, you know, or whether it is Muslim. It’s not important. The important thing is that we combat it and that we protect Jews. This is what we need to do on the internet and that means going against terrorist or clearly illegal content.

But as far as legal content is concerned – and a lot of content is legal – having opinions about the way Israel is defending itself, that is legal if it’s not antisemitic. And this is where we need to change the algorithms to make sure that people access content they actually want to see and not the content that TikTok, that the platform, wants them to see, pushing them into a rabbit hole, because this is what drives radicalisation.

Ivan David (ESN). – Paní předsedající, dámy a pánové, od doby, kdy se po celém dříve demokratickém světě zmocnili všech nejvýznamnějších médií miliardáři, aby manipulovali veřejností, jsou jedinou šancí demokracie, tedy vlády lidu, sociální sítě a internet. Do konce minulého století byli světovládní darebáci v klidu, protože nebylo možné veřejně se bránit pomluvám a jiným lžím. Chápu, že hluboký stát nese nelibě omezení svého monopolu na ovládání veřejného mínění.

Ale důrazně připomínám článek 17 Listiny základních práv a svobod, který zní: „Každý má právo vyjadřovat své názory, jakož i svobodně vyhledávat, přijímat a rozšiřovat ideje a informace bez ohledu na hranice státu. Cenzura je nepřípustná.“ Je marné zakazovat nenávist, kterou vyvolávají zločiny.

Milan Mazurek (NI). – Vážený pán predsedajúci, pán komisár, aj Mao Ce-tung a súdruh Stalin by boli hrdí na to, čo ste tu vo svojom prejave povedali. Veď to je príšerné, do akej totality sa Európska únia pod vaším vedením aktuálne uberá! Viete, kto sú skutoční extrémisti? Tí, ktorí tu nariadili ľuďom žiť pod nezmyselným green dealom, ktorý im ničí ich životnú úroveň, vďaka ktorej si normálni mladí ľudia nemôžu kúpiť ani len nový dom, v ktorom by zakladali svoje rodiny. Extrémisti sú tí blázni, ktorí sa lepia o chodníky a asfalty, aby bránili ľuďom, aby mohli autami prísť normálne domov. Extrémisti sú tí, ktorí do Európy vozia milióny nelegálnych imigrantov a pomáhajú im v rozpore so zákonom prekračovať hranice našich štátov. To sú skutoční extrémisti, nie vlastenci, nie patrioti, nie tí, ktorí milujú svoje štáty. Tí, ktorí milujú svoje krajiny, ktorí chcú chrániť svoje deti a svoje rodiny pred nebezpečenstvom, ktoré im aktuálne hrozí. My chceme zachovať svet a Európu slobodnú, a preto sa potrebujeme zbaviť ľudí, ako ste Vy, vo vedení Európskej komisie. Potrebujeme návrat k zdravému rozumu, a keď to pre Vás bude znamenať radikalizmus, tak sa k tomu hrdo hlásim, pretože sloboda je to, čo Európska únia aktuálne potrebuje.

Zoltán Tarr (PPE). – Tisztelt Elnök Asszony! Kedves kollégák és kedves fiatalok, akik nagyon sokan ültök fönt a lelátókon. Örülünk, hogy itt vagytok. Én azt gondolom, hogy sokan egyetérthetünk abban, hogy nagyon sok jó lehetőséget kínálnak nekünk az új digitális technológiák, az új technológiák. Nem is szeretném démonizálni őket. Ugyanakkor azt is tudjuk, hogy ezek az eszközök sokszor a politikai manipulációra és radikalizálódásra használódnak a fiatalok között, tovább súlyosbítva az álhírek terjedésével és az összeesküvés-elméletek terjedésével ezeken az eszközökön keresztül.

A tartalomgyártók és a platformok üzemeltetői hatalmas felelősséggel tartoznak ebben a helyzetben. Alapvető kötelességük az, hogy a platformjaikon megjelenő tartalmakat jobban monitorozzák, és felelősségteljesebben szűrjék azért, hogy a fiatalok, akik most is itt vannak, és esetleg néznek bennünket, minél kevesebb káros tartalommal találkozzanak.

Az a megoldás – azt gondolom –, hogy a tudatos médiahasználatot erősítsük az oktatásban, nem pedig a modern média kizárása az iskolákból. A meglévő szabályok, törvények alkalmazása a tagállamokban, valamint a nagy online platformok magatartási kódexeinek folyamatos fejlesztése és monitorozása.

Meg kell akadályoznunk, hogy a gyűlöletbeszéd és az antidemokratikus propaganda és a politikai manipuláció terjedjen a gyermekek között, és ebben nekünk is, képviselőknek is nagy felelősségünk van. Az, hogy mi hogy szerepelünk, mit mondunk, óriási jelentőséggel bír.

Francisco Assis (S&D). – Senhora Presidente, Senhor Comissário, a tolerância ilimitada leva ao desaparecimento da tolerância. Se estendermos a tolerância ilimitada mesmo aos intolerantes e se não estivermos preparados para defender a sociedade tolerante do assalto da intolerância, então os tolerantes serão destruídos e a tolerância com eles. Estas palavras são da autoria de um dos maiores filósofos democrato‑liberais do século XX, Karl Popper, e constam da sua obra conhecida A Sociedade Aberta e os seus Inimigos.

E é precisamente disto que estamos a falar. Popper tanto contestou os totalitarismos de direita como os totalitarismos de esquerda. Defendeu claramente o primado da democracia liberal e tinha consciência de uma coisa: que o único limite que se pode estabelecer é o limite em relação àqueles que, sendo intolerantes, põem em causa os pressupostos básicos e fundamentais da convivência cívica democrático‑liberal. Isso, infelizmente, hoje, está a suceder em grande escala nas redes digitais, afeta vários segmentos da população e tem um efeito particularmente nocivo junto dos mais jovens.

A resposta para isso passa por duas coisas: por um lado, por uma melhor regulação das redes sociais, em nome da defesa da liberdade – não é em nome da atrofia da liberdade, como alguns aqui pretendem afirmar, é em nome da defesa dos valores da liberdade –, e, em segundo lugar, pela promoção de um pensamento crítico, autónomo, livre e consciente em cada jovem europeu. É esse o caminho que nós temos de seguir.

Susanna Ceccardi (PfE). – Signora Presidente, onorevoli colleghi, l’Unione europea sta trasformando il contrasto d’odio online in un cavallo di Troia per soffocare la libertà di espressione sul web.

È vero, le nuove tecnologie possono essere usate per diffondere offese, minacce e odio. Ne so qualcosa: ogni giorno ricevo minacce dai fondamentalisti islamici o dai “leoni da tastiera”. Ma la soluzione non è imbavagliare chi esprime idee scomode e soffocare il dissenso.

Il Commissario Breton ha tentato di oscurare il dibattito tra Elon Musk e Trump. È questa la vostra democrazia? La democrazia vive di dialettica. Il pensiero occidentale vive sulla libertà, è fondato sulla libertà di pensiero. Se noi soffochiamo la libertà di pensiero, soffochiamo l’Occidente, soffochiamo ciò che siamo, soffochiamo l’Europa e quindi l’Unione europea sta tradendo se stessa, sta tradendo tutta la filosofia del pensiero occidentale.

Con questo regolamento sui servizi digitali noi mettiamo il bavaglio alle persone, soprattutto a quelle idee scomode che non piacciono alla sinistra woke, che non piacciono alla sinistra perbenista che in queste aule fa tanta teoria, è brava ad insegnare a tutti ma non sa bene ancora su che pilastri si regge l’Europa.

Paolo Inselvini (ECR). – Signora Presidente, onorevoli colleghi, è vero che le nuove tecnologie, come i social media, hanno un’enorme influenza sulle menti dei giovani. Tuttavia, la radicalizzazione che subiscono è anche quella promossa dalla sinistra, che parla di libertà ma spesso non la pratica nei fatti.

Ogni giorno assistiamo a bombardamenti mediatici che esaltano teorie LGBT, il fanatismo green e una società liquida, ideologie contro l’identità e la comunità, che promuovono l’individualismo e discriminano chi difende con fermezza i principi della nostra civiltà. Guardate il caso di Päivi Räsänen, accusata di incitamento all’odio solo per aver citato la Bibbia, o alla censura nei confronti di coloro che osano contrastare l’immigrazione incontrollata, difendere la vita e la famiglia o criticare il pensiero unico.

Ecco, questo è davvero antidemocratico. Il pensiero unico che la sinistra vuole imporre al mondo, impedendo a chi è fuori dal coro di affermare le proprie idee, tacciandolo di fomentare odio solo per estrometterlo dal dibattito.

Avete ragione, dobbiamo proteggere i giovani da questo mondo falso e artificiale che qualcuno ha costruito intorno a loro per controllarli meglio. Facciamoli uscire da questa gabbia: riportiamoli a rivivere la bellezza vera della vita.

Irena Joveva (Renew). – Gospa predsednica! Zgodovina se ponavlja. To je vselej moja prva misel ob spremljanju razvoja uničujoče propagandne retorike, ki jo vedno bolj aktivno uporabljajo skrajneži.

Namen je jasen: razdvajanje, destabilizacija demokratične družbe. To isto sovražno ideologijo z istimi idejami in istim načinom komuniciranja smo nekoč, po bolečih lekcijah, potisnili skrajno na rob. Toda zdaj so se z roba uspešno prikradli nazaj v središče, kjer poleg uporabe umetne inteligence za širitev svoje ideologije sočasno z dezinformacijami diskreditirajo vse, ki ne mislijo tako kot oni.

Gre za usklajeno, dobro financirano, nadnacionalno propagandno kampanjo za širitev in uveljavitev avtoritarnosti, če ne še česa hujšega, v Evropi. V času porasta nacizma so to počeli s prevzemom radiev, danes to počnejo prek družbenih omrežij.

In prav imajo. Izbira je res naša. Ali torej res želite, da to spet postane prevladujoča retorika in normalna? Jaz ne.

Lena Schilling (Verts/ALE). – Frau Präsidentin, liebe Kolleginnen und Kollegen! Eigentlich wollte ich anders anfangen, aber wir haben gerade ein Lehrbeispiel gesehen vom Kollegen Mazurek, der erklärt hat, wie man eine Rede hält, die man dann auf Social Media stellt, wo man rechtsextremes Gedankengut verbreitet, manipuliert und unsere Gesellschaft radikalisieren kann. Ja, es sind Autokraten und Rechtsextreme, die weltweit Social Media dafür einsetzen, Wahlen zu beeinflussen, dazu einsetzen, Gesellschaften weiter zu spalten, und dazu einsetzen, Fake News zu verbreiten. Und er ist damit nicht alleine, aber danke für dieses perfekte example.

Donald Trump wirft Migranten vor, Haustiere zu essen, Moskauer Propagandafirmen wiederholen millionenfach Lügen – 33,9 Millionen Kommentare, 39 899 Inhalte, darunter tausende Videos, Memes und Grafiken innerhalb der letzten vier Monate: Das ist mittlerweile Teil unserer politischen Praxis. Und ich sage Ihnen etwas: Wir junge Menschen, die Social Media nutzen, die damit aufwachsen, wir werden uns das auch irgendwann nicht mehr gefallen lassen, dass unsere Plattformen als geopolitischer Spielball instrumentalisiert werden. Sie sollten dazu dienen, dass wir uns ausdrücken können, dass wir miteinander kommunizieren können, und nicht von politischen, verschiedenen, Mächten hier instrumentalisiert werden.

Zu diesem Punkt: Wir werden daran arbeiten, dass es klare Regeln gibt, und Menschen darüber informieren, welcher Blödsinn ihnen hier vorgesetzt wird.

Christine Anderson (ESN). – Frau Präsidentin! Heute beklagen Sie nun also den Missbrauch neuer Technologien, der angeblich unsere Jugend radikalisiert. Dabei ist es doch Ihre radikale Politik, die die Menschen spaltet und aufhetzt. Während Corona haben Sie Teile des Volkes zu Feinden erklärt, Ungeimpfte zu Sündenböcken gemacht. Stimmen zur Schädlichkeit der mRNA-Injektion wurden wegzensiert, damit Ihre Impfpropaganda unwidersprochen blieb.

Regierungskritische Stimmen unterdrücken Sie, während Sie geflissentlich wegschauen, wenn auf YouTube, TikTok und Co. übelster islamischer Antisemitismus gefeiert wird und sich diese frauenfeindliche, menschenverachtende und totalitäre Ideologie des Islams durch unsere Gesellschaft frisst. Die vermeintliche Radikalisierung, die Sie bekämpfen wollen, ist die längst überfällige Antwort auf die Radikalität Ihrer Politik, dieser unsäglichen, illegalen Masseninvasion.

Hören Sie doch endlich auf, sich lächerlich zu machen! Anstatt Kritiker zu zensieren, nehmen Sie die Kritik ernst und machen Sie endlich wieder Politik für das eigene Volk, dann gibt es auch keine Radikalisierung unterm Volk!

Ondřej Dostál (NI). – Paní předsedající, děkuji za otevření tohoto tématu. My žijeme v zemi, kde provládní aktivisté na sítích přáli smrt či covidový koncentrák každému, kdo odmítal nosit roušky v lese nebo kdo chtěl večer běhat v parku. Žijeme v zemi, kde se netrestá tvrzení, že staří lidé volící konzervativní levici musí vymřít, aby zvítězily ty správné progresivní síly, že staří jsou hloupí a nevzdělaní a měli by volit pod dohledem, kde se natočil klip „Přesvědč bábu, přesvědč dědka“. Žijeme v zemi, kde vláda na strategickou komunikaci najala plukovníka armády, hrubého a sprostého, který nazývá oponenty sviněmi a šmejdy, a kde i usměvavé poslankyně tohoto parlamentu mluví o opozičních poslancích jako o košťatech, paní Nerudová, nebo o špínách, paní Gregorová.

Žijeme v zemi, kde britská či americká ambasáda včetně National Endowment for Democracy financují neziskové organizace, které cíleně dehonestují oponenty provládního narativu. To všechno se promítá do extrémního prostředí na sociálních sítích, kde je demokratická diskuse takřka nemožná. Starší Češi jsou díky historii odolní vůči propagandě, ale mladí se bohužel radikalizují. Rád bych proto z tohoto místa vyzval českou vládu, ambasády cizích velmocí a kolegy poslance EP, aby se šířením hate speech skončili.

Manuela Ripa (PPE). – Frau Präsidentin! Wir sprechen über eine neue Sucht: Empfehlungsalgorithmen haben die meisten Jugendlichen auf Social Media fest im Griff. Das heißt: Schauen sie sich ein Video an, bekommen sie unaufgefordert immer weitere, teils immer extremere Inhalte vorgesetzt. Den Jugendlichen bleibt oftmals keine Wahl, sie kommen davon nicht mehr los. Nicht nur, dass die Suchtgefahr steigt, Hassbotschaften und Hetze können sie auch radikalisieren – vor Wahlen ist dies sogar demokratiegefährdend.

Gut, dass die Kommission hier gegen abhängig machende Algorithmen den Digital Services Act anwendet, aber das reicht nicht. Die Berichtspflicht der Plattformen muss qualitativ verbessert werden, am besten, indem sie ihre Berichte durch externe Prüfer prüfen lassen. Weiterführende Videos sollten nur angezeigt werden, wenn man tatsächlich auch draufgeht. In Schulen muss digitale Kompetenz vermittelt werden, sodass sie lernen, Informationen und Quellen kritisch zu hinterfragen. Sie sollten einen KI-Führerschein machen. Dass Schüler mittels KI ihre Hausaufgaben machen dürfen, ist sicherlich keine Lösung.

Achten wir auf unsere Kinder und Jugendlichen, sie sind unsere Zukunft!

Veronika Cifrová Ostrihoňová (Renew). – Vážená pani predsedajúca, ďakujem veľmi pekne, dobrý deň – a začnem osobným presvedčením: mladí ľudia nie sú ani horší, ani lepší, ani radikálnejší ako iní, ale dnes sa stretávajú so silou, ktorej v takejto miere nemusela čeliť žiadna iná generácia predtým, a tou je online svet. Ak si niekto myslí, že sa tam veci dejú náhodou, tak sa mýli. Algoritmy sociálnych sietí nielen pre mladých vytvárajú pasce, do ktorých môžu ľahko spadnúť, a internet už dávno nie je iba slobodný priestor, ale je to miesto, kde sa šíri radikalizmus, kde je priestor pre trestné činy a pre násilie a našou úlohou tu je urobiť všetko pre to, aby sme tieto pasce odstránili. Nie ste dobrá firma, ak obsah, ktorým kŕmite mladých, je toxický. A toto je presne dôvod, prečo tak veľmi potrebujeme poctivo dodržiavať zákon o digitálnych službách. Nástroje na bezpečnejší internet naozaj máme, tak ich využime. Máme na to teraz šancu. Mladým ľuďom totiž ako spoločnosť vieme dať oveľa viac, ako dnes od nás dostávajú.

Jaume Asens Llodrà (Verts/ALE). – Señora presidenta, el señor Buxadé ha hablado de la libertad de los patriotas y de las manifestaciones legítimas en el Reino Unido contra la inmigración, pero seguro que ustedes se acuerdan: eso no fueron manifestaciones pacíficas, fueron disturbios racistas donde se apaleó y apuñaló a personas vulnerables y se quemaron casas. ¿Y por qué? Porque difundieron un bulo —con la ayuda de Elon Musk— atribuyendo falsamente unos asesinatos a una persona inmigrante cuando, en verdad, el autor era inglés. Y en España intentaron hacer lo mismo.

Señor Buxadé, ustedes están en guerra con la verdad. Y el problema es que mucha gente —sobre todo jóvenes— se instala en un mundo paralelo, y crecen el miedo, el odio, las agresiones; porque ustedes, cuando señalan a los que vienen con patera, huyendo de la guerra o del hambre, es para que no veamos a los de arriba, a las élites, a los que los explotan, a los responsables de las crisis.

Por eso, señor comisario, necesitamos una legislación europea que nos proteja de la extrema derecha, de sus bulos, como el que hoy el señor Buxadé ha dicho.

La mentira destruye la democracia, el derecho a tener información veraz y, por tanto, a formarnos una opinión y poderla expresar. Eso no es censura, como ha dicho la extrema derecha; si no hay verdad, no hay libertad: hay opresión. Y como dijo Camus: «La peor epidemia no es biológica, sino moral». La epidemia de la mentira.

Łukasz Kohut (PPE). – Pani Przewodnicząca! Media społecznościowe bardzo szybko stały się piątą władzą i jak każda władza także i ta w niewłaściwych rękach staje się bronią. Internet, a później media społecznościowe miały łączyć ludzi na całym świecie i dać dostęp do wiedzy. Miały. A już dziś musimy mierzyć się z konsekwencjami wykorzystywania sieci niezgodnie z przeznaczeniem. Cud techniki, który miał łączyć, stwarza coraz większe podziały za pomocą manipulacji, fałszywych informacji i mowy nienawiści. Tak jak lekarstwo od trucizny różni dawka, tak kreacyjny i destrukcyjny wpływ mediów cyfrowych zależy od tego, w czyich rękach się znajdą.

Brexit i to, że nie ma tutaj z nami Wielkiej Brytanii, jest efektem manipulacji. Rosyjska dezinformacja walczy o rozpad demokratycznego świata od wielu lat. Pierwsza kampania Trumpa przy wsparciu fake newsów i Cambridge Analytica pokazała siłę sieci. Dzisiaj milionem dolarów dziennie ma wspierać Trumpa właściciel portalu X. To jest obłęd. Nie może być tak, że algorytmy uprawiają inżynierię wyborczą, a my biernie stoimy i patrzymy, jak giganci cyfrowi czy służby obcych mocarstw urządzają nam świat. Internet w ich rękach stał się groźnym narzędziem. Dokładnie tak jak bomba atomowa Oppenheimera, która miała służyć pokojowi. Czas przestać się łudzić. Musimy zapanować nad siecią albo ona zapanuje nad naszą rzeczywistością. Trzy postulaty: lepsze prawo, kontrola IP i konsekwencje działań w sieci.

Alexandre Varaut (PfE). – Madame la Présidente, la haine en ligne, que nous devons combattre, c’est d’abord le harcèlement, les injures, la diffusion de montages qui poussent des enfants, parfois très jeunes, à tomber en dépression ou même à se suicider. Il faut cependant nous garder d’abuser de ce terme pour tenter de criminaliser des opinions. Et certains, au sein de l’Union européenne, ont très souvent cette tentation.

La haine est un sentiment. Il est bien difficile de légiférer sur des sentiments. Nous ne pouvons légiférer que sur des actes concrets, qui causent des préjudices concrets à des victimes concrètes. Nous n’avons pas le droit d’en profiter pour traquer des opinions et pour sacraliser des notions wokes qui, matériellement, n’existent pas – telles que l’imaginaire collectif, la conscience humaine ou les valeurs universelles.

Le risque serait le règne d’un arbitraire idéologique, qui pourrait parfaitement se retourner contre chacun d’entre nous, d’entre vous, même si à cet instant, ce sont sans nul doute les patriotes qui sont visés par la police de la pensée.

Танер Кабилов (Renew). – Г-жо Председател, свободата на словото е едно от най-важните постижения на демокрацията и модерното гражданско общество. Достиженията на дигиталната ера, в която живеем, предоставя безпрецедентни възможности за комуникация и обмен на информация, но и нови предизвикателства, пред които се изправяме.

Социалните мрежи се превръщат в арена за разпространение на омраза, особено в нейните най-опасни измерения – етническа и религиозна. Нараства злоупотребата с фалшиви профили и ботове, а хибридните атаки и дезинформационни кампании, манипулиращи общественото мнение, стават все по-често, особено по време на избори. Младите, с техните отворени сетива за знания, са чувствително уязвими за радикални идеи, които им се предоставят от алгоритмите, търсещи все повече гледания и интеракции. Това е сериозна заплаха за бъдещето на демокрацията.

Категорично осъждам езика на омразата във всяка негова форма. Трябва да сме чувствителни като гражданско общество и да сме проактивни като политици. Трябва да намерим правилния баланс между свободата на словото и злоупотребата с него.

Tiago Moreira de Sá (PfE). – Senhora Presidente, vivemos tempos em que o discurso de ódio e a retórica anti‑democrática se tornaram desculpas perfeitas para justificar um novo despotismo – a censura camuflada de virtude. Sempre que o poder se sente ameaçado, a liberdade é o seu primeiro alvo, e o caso de Elon Musk, do Prémio Sakharov, é disso exemplo – excluído num processo opaco, uma voz silenciada, a pretexto da própria liberdade de expressão.

A Comissão Europeia entrou em confronto aberto com Musk, acusando‑o de falhar na monitorização do discurso de ódio na sua plataforma X. A polémica já fez cair o ex‑comissário europeu Thierry Breton, mas os processos judiciais que a Comissão move contra as empresas de Musk, incluindo a aplicação de possíveis multas severas, caso não cumpra com a lei dos serviços digitais, continuam bem vivos.

Este fim de semana, o Der Spiegel chamou a Elon Musk o inimigo público número dois, atrás de Donald Trump, imaginem. A União Europeia e o Der Spiegel estão a fazer a Musk o mesmo que o Brasil de Lula e a Venezuela de Maduro. Como em O Nome da Rosa, de Umberto Eco, onde os livros eram envenenados para proteger os monges da dúvida e do riso, hoje envenena‑se o debate público para proteger a sociedade da liberdade. E, como sabemos, do veneno só pode resultar sempre a morte.

(O orador aceita responder a uma pergunta «cartão azul»)

Bruno Gonçalves (S&D), Pergunta segundo o procedimento «cartão azul». – Senhor Deputado, é incrível ouvi‑lo falar de liberdade, quando o problema é mesmo com a verdade. Enquanto, neste Parlamento, debate o ódio, debate o discurso do ódio, debate a proliferação do ódio no digital, em Portugal, sabemos bem o que está a acontecer e com o qual o seu partido e os seus representantes não têm o mínimo de empatia.

Deixe‑me citar, o líder parlamentar do seu partido diz: «se a polícia atirar mais a matar, o país fica em ordem»; o assessor do seu partido diz: « menos um criminoso, menos um eleitor do Bloco» sobre a morte de um cidadão português. O que eu lhe pergunto, com empatia, Senhor Deputado: pode ou não condenar este ódio? Pode ou não condenar estas declarações?

Tiago Moreira de Sá (PfE). – Senhor Deputado, eu confesso que pensei fazer a minha intervenção justamente sobre o que está a acontecer em Portugal. Depois, achei que não o devia fazer aqui, neste local, devia fazer em Portugal e para os portugueses. O que eu acho que contribui muito para o discurso de ódio – realmente o que está a acontecer em Portugal, sim – é quando nós confundimos polícias com ladrões, quando nos pomos do lado de quem prevarica e não cumpre a lei e incita à violência, em vez de protegermos a autoridade do Estado e as forças da autoridade.

Eu acho que nós devemos pensar muito bem, porque a sua própria pergunta, ela própria, tem por detrás – eu sei que não foi com intenção – extremar, por detrás, polarizar, por detrás, criar esta visão de bons e maus. Eu, o que devo dizer, terei todo o gosto em ter esse debate consigo, mas não o vou fazer aqui. Farei no meu país.

Hermann Tertsch (PfE). – Señora presidente, ayer estuve en una cena de la Asociación Parlamentaria Europea, en la que la mayoría son todos de los que gobiernan, de estos que gobiernan en la Comisión, es decir, del Partido Popular Europeo y de la izquierda, los perdedores abrazados al Partido Popular Europeo para seguir gobernando.

Allí se iba a hablar de las elecciones norteamericanas y se habló de Trump. Y, de repente, Trump era Hitler. Trump era Hitler. Allí, en una asamblea de una serie de eurodiputados, se hablaba de Trump con mentiras sobre su pasado y con especulaciones insidiosas sobre su futuro.

La señora Applebaum, supuestamente una gran intelectual a quien le han dado un premio en Fráncfort, habla de Trump como Hitler. Hemos visto también a la señora Harris —la candidata— hablando de Trump como Hitler.

Ese insulto a la inteligencia por parte de la izquierda al tachar de Hitler, de fascistas, de nazis, a todos aquellos que no le interesan, eso sí que es una censura y un atentado contra todo el pensamiento europeo.

Quieren ustedes un Ministerio de la Verdad para imponer una mentira, y no lo vamos a permitir.

Mathilde Androuët (PfE). – Madame la Présidente, les jeunes âgés de 13 à 19 ans passent en moyenne plus de cinq heures par jour devant un écran. Il s’agit, pour certains, du seul moyen de se sociabiliser, et cela peut générer des violences – contre soi-même ou contre d’autres. Mais au lieu de lutter contre l’abandon de nos jeunes au virtuel, la Commission européenne préfère s’attaquer aux outils que sont Telegram ou X pour entraver la liberté d’expression.

Alors oui, Daech a recruté des terroristes et des soldats sur les réseaux sociaux. Oui, des jeunes adoptent des mœurs archaïques pour intégrer une soi-disant nouvelle famille. Mais s’en prendre aux outils, plutôt que de chercher à répondre à ce besoin légitime d’appartenir à un groupe fort et exaltant, est idiot. C’est aussi idiot que d’interdire les voitures ou l’usage des couteaux de cuisine au prétexte que certains s’en servent pour tuer.

C’est pourtant ce que fait la Commission en censurant – prioritairement d’ailleurs – ceux qui essaient de lutter contre le wokisme ou l’islamisme et en laissant pulluler antifas et prêcheurs de haine. Il ne faut pas changer d’outil, mais de modèle. Il faut offrir un vrai modèle de société à la jeunesse européenne, qui magnifie les richesses du passé dans l’objectif d’exalter l’avenir. Le problème, ce n’est pas l’internet, c’est une société occidentale qui, refusant toute pulsion de vie, pousse sa jeunesse vers des sectes où la pulsion de mort est devenue leur vie.

Procedura “catch-the-eye”

Matej Tonin (PPE). – Gospa predsednica! Drage kolegice in kolegi! Pred petnajstimi leti se je zdelo, da so socialna omrežja prihodnost, da bodo ključno orodje za spodbujanje demokracije. In petnajst let po tem se zdi, da so socialna omrežja predvsem orodja za širitev sovraštva in nestrpnosti.

Kaj se je v teh petnajstih letih zgodilo tako dramatičnega, da je iz enega dobrega orodja nastalo slabo? Algoritmi. Algoritmi so tisti, ki spodbujajo sovraštvo, ki spodbujajo nestrpnost, ker v današnjem svetu enostavno dobra novica ni več novica. In zato algoritmi spodbujajo negativne stvari, spodbujajo predvsem nestrpnost.

Sem pa prepričan, da prepoved ni rešitev, ampak da je ključna stvar za prihodnost ozaveščanje mladih, kakšne posledice ima lahko nekritična uporaba socialnih omrežij.

Juan Fernando López Aguilar (S&D). – Señora presidenta, señor comisario, el modelo de negocio de las plataformas —normalmente regidas por magnates de ultraderecha— no reside solamente en explotar las debilidades, las vulnerabilidades y las características personales que los usuarios ponen a su disposición, sino, sobre todo, en generar algoritmos adictivos que se ensañan, especialmente, con la gente joven, que son los usuarios preferentes que pasan media vida ante las pantallas, consumiendo discursos de odio que radicalizan, que estigmatizan, a categorías enteras de personas, además de contenidos violentos.

El problema no reside solamente en los contenidos, sino en la explotación de la vulnerabilidad de la gente joven: un desafío enorme para la próxima Comisión. Hemos adoptado el Reglamento de Servicios Digitales, hemos puesto en pie una estrategia contra el discurso de odio que incluye también no solamente un código de conducta para las plataformas —escasamente vinculante— sino, sobre todo, la orden de que la Comisión traiga a este Parlamento una iniciativa legislativa para hacer del delito de odio que incita la violencia de odio un delito europeo.

Pero no es suficiente: alfabetización digital, educación, todo lo que la Comisión pueda hacer para proteger a la gente joven, que es el futuro de la Unión Europea, frente a la propagación del discurso de odio en las redes.

Sebastian Tynkkynen (ECR). – Arvoisa puhemies, vihapuhe, radikalisoituminen ja demokratiavastaisuus. Tämä hetki on varattu sille, että tämä koko sali keskustelee näistä aiheista. Itse asiassa tämä on hyvin ajankohtainen aihe, joten siitä onkin hyvä keskustella. Me olemme nimittäin todistaneet viime aikoina tapahtumia, jotka täyttävät nämä kaikki tunnusmerkit: vihaa, radikalisoitumista ja demokratiavastaisuutta. Lukuisissa Palestiina-mielenosoituksissa aina huippuyliopistoihin saakka ovat raikuneet antisemitistiset huudot. Lähi-idän ainoalle demokratialle Israelille on toivottu tuhoa, ja radikaali terroristijärjestö Hamas on nauttinut monen mielenosoittajan tukea.

Miksi en ole kuullut, että vasemmisto olisi tästä puhunut tänään? Haluan muistuttaa teitä tästä, kun te etsitte vihapuhetta ja radikaalia puhetta kaikkialta, niin käykääpä joskus vasemmiston Palestiina-mielenosoituksissa. Saatatte löytää sieltä sitä, mitä olette kaikkialta muualta etsimässä.

Lukas Sieper (NI). – Madam President, dear colleagues, honourable House, as we talk of young people here with my, in other cases, little life experience of 27 years, I am happy to take the floor today.

I may present you with three truths. Number one: TikTok is owned and controlled by the Chinese Communist Party, responsible for atrocities like putting Uyghurs in concentration camps.

Number two: because of that, the algorithm is, of course, also controlled and manipulated by the Chinese Communist Party.

Number three: if you, my dear colleagues, do not join TikTok, and if you are not active there, you will leave this platform and the young people on this platform to the enemies of democracy inside this House and outside this House.

So please be active there no matter what. I am not much, but I am young, so I hope you trust me on that.

(Fine della procedura “catch the eye”)

Janusz Wojciechowski, Member of the Commission. – Madam President, honourable Members, thank you for your contributions. It is clear that new technologies have transformed our economies, our societies, our lives. They have multiple benefits, but we cannot ignore the risks. Hate speech, often fuelled by disinformation, is one of them.

We need to keep our values of equality, tolerance, non-discrimination. We also need to keep our focus on delivering policies which improve citizens’ lives. We want to support active citizenship and social inclusion with the aim of fostering more equitable and tolerant societies. There is a pivotal role here as concerns the smart and safe use of digital technologies. The scope of prevention activities is broad, and we can extend it to education, employment, justice, social inclusion or sports.

Within the framework of the Digital Services Act, the industry’s thorough commitment is necessary to succeed. We have a good basis, but we need to intensify our efforts and adopt the fast development of new technologies.

IN THE CHAIR: ROBERTA METSOLA
President

5. Resumption of the sitting

(The sitting resumed at 12:05)

6. Sakharov Prize 2024 (announcement of the winner)

President. – Dear colleagues, it is my privilege to announce that the 2024 Sakharov Prize for Freedom of Thought has been awarded to María Corina Machado, leader of the democratic forces in Venezuela, and President-elect Edmundo González Urrutia, representing all Venezuelans inside and outside the country, fighting to restore freedom and democracy in the face of injustice.

(Loud and sustained applause)

Edmundo and María have continued to fight for the free, fair and peaceful transition of power and have fearlessly upheld those values that millions of Venezuelans and this Parliament hold so dear: justice, democracy and the rule of law. This Parliament stands with the people of Venezuela and with María and Edmundo in their struggle for the democratic future of their country. This award is for them, and we are confident that Venezuela and democracy will ultimately prevail.

I also want to extend this House’s wholehearted support to the other Sakharov Prize finalists: the Israeli and Palestinian movements ‘Women Wage Peace’ and ‘Women of the Sun’.

(Loud and sustained applause)

We also have the finalist Azerbaijani academic and anti-corruption activist Dr Gubad Ibadoghlu.

(Loud and sustained applause)

All three are bravely standing up for human rights and for freedom of thought in the face of unimaginable challenges.

I also share the tragic news that Dr Ibadoghlu’s health condition is currently deteriorating significantly. He is being kept under house arrest following his arbitrary detainment, and I take this opportunity to call on the Azerbaijani authorities to drop all charges against Dr Ibadoghlu and lift his travel ban.

(Applause)

7. Request for waiver of immunity

(The sitting was briefly suspended)

PRESIDE: JAVI LÓPEZ
Vicepresidente

8. Resumption of the sitting

Lukas Sieper (NI). – Mr President, honourable House, Rule 202 deals with the point of order. Last plenary week, I had the honour to shed some light on the blatant misuse of this rule inside this House. We were talking about Rule 202(1) that states that you shall use a point of order to address a failure to comply with the parliamentary Rules of Procedure.

Today, I want to talk about Rule 202(4) that states that in all regular cases like this, the President shall take an immediate decision about the point of order raised. That is not what happened to my point of order. Instead, right after I finished, we kept on seeing the same thing. For example, since then we heard about the suffering of the Palestinian people or the necessity to honour a Polish priest. Understandable topics, but nothing to state inside a point of order.

In my legal opinion, immediate means on the spot. So, Mr President, with all due respect and being thankful to also having the possibility to forewarn President Metsola on this directly yesterday, I request an immediate decision about stopping the point of order being misused.

President. – Thank you very much. You have the answer: we take note of your comment.

9. Voting time

President. – The next item is the vote.

9.1. Situation in Azerbaijan, violation of human rights and international law and relations with Armenia (RC-B10-0133/2024, B10-0129/2024, B10-0131/2024, B10-0133/2024, B10-0136/2024, B10-0139/2024, B10-0141/2024, B10-0142/2024) (vote)

President. – The first vote is on the situation in Azerbaijan, violation of human rights and international law and relations with Armenia (see minutes, item 9.1.).

10. Resumption of the sitting

(La seduta è ripresa alle 15.00)

11. Approval of the minutes of the previous sitting

Presidente. – La seduta è ripresa.

Il processo verbale della seduta di ieri e i testi approvati sono stati distribuiti.

Se non ci sono osservazioni, il processo verbale si considera approvato.

12. Protecting our oceans: persistent threats to marine protected areas in the EU and benefits for coastal communities (debate)

Janusz Wojciechowski, Member of the Commission. – Madam President, honourable Members, thank you for the opportunity to address this important topic today. The ocean is a magnificent ecosystem. A healthy ocean has an essential role as a climate regulator and food provider. It is at the heart of the blue economy and cultural identity of our coastal communities.

However, our ocean faces multiple threats from climate change, unsustainable activities that lead to biodiversity loss and pollution, or illegal fishing globally. This is clearly evidenced by the EU-driven Copernicus satellite data reported in the annual Ocean State Report by the Copernicus Marine Service.

Therefore, we need to continue the efforts to protect and restore marine ecosystems, including through the establishment of marine protected areas. I cannot stress enough the importance and positive effects of marine protected areas. They not only protect and restore biodiversity, they also ensure that the ocean is able to deliver the multiple environmental services our coastal communities have relied on for ages.

There are many examples of effective marine protected areas which bring long-term economic and social benefits for fishers and entire coastal communities. I’m thinking about the Columbretes marine reserve in Spain or Torre Guaceto protected area in Italy, where protection is implemented in cooperation with fishers, who benefit from better catches and receive recognition for their engagement in ocean conservation.

However, most of our marine protected areas are not effectively managed today, which is putting at risk our goals for restoration of marine ecosystems. We cannot afford to have ‘paper parks’ in the EU. We need urgent and greater efforts from all those responsible, from local to national and EU level.

The European Union is a worldwide leader when it comes to the protection of the oceans and seas. It played a key role in reaching the United Nations agreement on biodiversity beyond national jurisdiction and strongly encourages all countries to promptly ratify the treaty to protect at least 30 % of the planet by 2030.

At European Union level, our environmental laws, the Birds and Habitats Directives and the Marine Strategy Framework Directive provide for creation and management of marine protected areas. In our biodiversity strategy for 2030, we committed to expand our network of protected areas to cover 30 % of our seas, of which one third should be strictly protected. All MPAs should be effectively managed and should have the necessary fisheries management measures in place.

The common fisheries policy contributes to the implementation of these policy goals and legislation. Whilst we made progress on the recovery of many fish populations, more efforts are needed to effectively protect and restore other species and marine habitats. In particular, in our marine Natura 2000 network.

The Commission also adopted the marine action plan, setting out a non-binding path to achieving a protection of 30 % of our seas by 2030. The recently adopted Nature Restoration Regulation set the goal of covering 20 % of our seas, with restoration measures by 2030 and achieving specific nature restoration objectives in the marine environment.

Member States need to implement and enforce existing legislation, and all stakeholders need to take further ownership. Therefore, a dialogue is required, as well as a strong science-based approach.

Another challenge for marine protected areas is the increasing competition for maritime space. We are working with Member States and experts to deliver ecosystem-based maritime spatial planning. The aim is to foster the blue economy while ensuring the achievement of good environmental status.

In conclusion, the Commission will continue the close cooperation with Member States and all stakeholders to ensure that marine protected areas effectively deliver to the benefit of our coastal communities.

Francisco José Millán Mon, en nombre del Grupo PPE. – Señora presidenta, señor comisario, los océanos se enfrentan a numerosas amenazas, es cierto: el cambio climático, la contaminación por desechos y vertidos, los plásticos, el transporte marítimo, la explotación de hidrocarburos, la pesca ilegal… Debemos proteger los océanos, pero sin caer en extremismos maximalistas: la protección no es incompatible con toda actividad humana. El llamado «pacto europeo de los océanos» debería tener una visión holística, global, que trate de integrar las actividades humanas de una manera sostenible y en diálogo con los afectados. Hay que preparar debidamente la próxima conferencia de Niza.

Me centro ahora en la pesca: proteger los océanos es vital, también para el sustento de nuestros pescadores. El sector pesquero europeo es un sector muy regulado, lleva a cabo una pesca sostenible, lucha contra la pesca ilegal y contribuye a nuestra seguridad alimentaria: debemos velar por su prosperidad y su competitividad.

Quiero destacar la importancia de las OROP, las organizaciones regionales de ordenación pesquera. Precisamente, el acuerdo sobre la diversidad biológica marina en alta mar, conocido como BBNJ, reconoce el papel de las OROP y de las reglamentaciones que estas adoptan. En las OROP y en el resto de organismos internacionales necesitamos, comisario, liderazgo de la Unión Europea para conseguir que se globalicen nuestros altos estándares: así lograremos no solo una verdadera protección de los océanos, sino también la igualdad de condiciones que tanto desean nuestros pescadores.

Las áreas marinas protegidas, como usted señala, requieren un trato especial, pero este debe basarse en criterios científicos y atender a los objetivos específicos del área en cuestión, no a meros porcentajes. Por ejemplo, si de lo que se trata es de proteger a las aves marinas, no tiene sentido ahora insistir en la prohibición del arrastre de fondo. No podemos caer en la demonización de ciertas artes pesqueras como hace, por ejemplo, el plan de acción marino presentado el año pasado por la Comisión Europea.

Christophe Clergeau, au nom du groupe S&D. – Madame la Présidente, Monsieur le Commissaire, il y a quinze jours, avec mes collègues de l’intergroupe du Parlement européen «Mers, rivières, îles et zones côtières», nous avons accueilli à Bruxelles la Semaine des océans, organisée par les ONG. Voici ce qu’elles nous ont dit:

En premier lieu, il y a urgence à se mobiliser pour restaurer la bonne santé des océans.

En deuxième lieu, il faut faire appliquer les lois qui existent – qui aujourd’hui ne sont pas appliquées – et surveiller de près comment les États travaillent sur le règlement relatif à la restauration de la nature. Parce que 2030 va arriver très, très rapidement.

En troisième lieu, il faut certes, Monsieur le Commissaire, aborder l’océan et son aménagement comme un écosystème, mais cette approche écosystémique n’est pas possible dans le cadre de la directive actuelle relative à la planification de l’espace maritime: il est donc urgent d’engager sa révision.

Dernièrement, nous avons besoin d’une ambition globale – ce fameux pacte européen pour les océans promis par Ursula von der Leyen, qui permettra de concilier la santé des océans et les activités de l’économie bleue –, menée avec ce Parlement, avec les collectivités locales et avec toutes les parties prenantes, tous les acteurs associatifs et économiques.

France Jamet, au nom du groupe PfE. – Madame la Présidente, monsieur le Commissaire, mes chers collègues, la protection de nos océans est un enjeu crucial sur le plan économique, environnemental et géopolitique, notamment pour la France, qui possède le deuxième plus grand domaine maritime du monde.

Mais la multiplication des aires marines protégées n’en garantit pas l’intégrité. La pêche financière est mondialisée et prospère, sans respect de la ressource, de Mayotte à nos côtes, en toute légalité. Quant à la pêche illégale, elle ravage nos territoires maritimes, de la Nouvelle-Calédonie jusqu’en Guyane, en toute impunité.

Au-delà de ces déclarations de bonnes intentions et autres interdictions unilatérales, c’est d’une vraie stratégie de protection des océans que nous avons besoin pour appuyer les moyens de défense de notre souveraineté alimentaire nationale et pour revaloriser notre domaine maritime ainsi que l’économie bleue.

Billy Kelleher, on behalf of the Renew Group. – Madam President, this is a very important topic for a number of reasons, and for a large number of communities in our Union.

As an MEP for an island nation, I’m acutely aware of the importance of our oceans, seas and coasts to sustain an abundance of life and communities, both socially and economically.

As such, today’s debate on protecting our oceans, persistent threats to marine protected areas in the EU and benefits to our coastal communities is an important milestone. At present, 10% of Irish waters are now classified as marine protected areas, up from 2.4 % in 2020. The Irish Government is committed to achieving a 30 % coverage rate by 2030 and will, in the early 2025, pass legislation putting in place a legal commitment to do so. This is something I and the Fianna Fáil party supports.

However, as an island nation, we have competing objectives and goals. In the first instance, we want to protect our marine ecosystems, but equally we want to support our fishing communities, many of whom have fished in areas set to be designated as marine protected areas for generations. Thirdly, we want to become an offshore wind energy superpower.

Our challenge is to ensure that all these objectives can be met. It is therefore a necessity that all the stakeholders involved enter into this process with an open mind and without narrow ideological opinions.

Fishers have a right to fish and not have their livelihoods destroyed by losing access to waters that they have historically fished in. Countries have a right to diversify their electricity generation, their waters. And yes, we have a moral obligation to protect our oceans, rivers and coastal areas.

However, Commissioner, we have a significant challenge in Ireland, as Norway is being granted access to Irish waters for mackerel fishing. Mackerel stocks are being overfished. Irish mackerel quota will be cut by 22 % in 2025, and it will cost the Irish fishing industry EUR 18 million. Yet at the same time, we grant access to Norwegian supertrawlers to fish in Irish waters and to overfish and exploit mackerel stocks. The Irish fishing industry is very dependent on the mackerel stocks.

So, Commissioner, I cannot understand how in one way we are talking about sustainability and ensuring we protect marine life and at the same time grant unlimited access to supertrawlers to fish in Irish waters, to exploit fish stocks and undermine the Irish fishing industry and the coastal communities that depend on it.

When we are talking about sustainability, we must have fairness for the Irish fishing industry and the coastal communities that depend on it.

Isabella Lövin, för Verts/ALE gruppen. – Fru talman! Allt liv på jorden startade i haven. Haven ger oss mat. De ger oss glädje. De producerar hälften av allt syre som vi andas. Ändå misshandlar vi haven, använder dem som soptipp och tömmer dem på fisk.

Nu har vi också gett dem hög feber, och det är väldigt allvarligt. Som en forskare sa till mig: Klimatkrisen, den drabbar precis som covid de svagaste värst. Och havet är redan försvagat.

I Östersjön, där jag bor, har medeltemperaturen redan ökat med två grader sedan 1990, och nere på 30 meters djup var det förra sommaren 20 grader varmt, något som aldrig har noterats förut.

Ett område stort som Danmark är död botten. Vi måste göra någonting snabbt för denna döende patient, och vi måste göra någonting nytt.

Vi behöver en ny havspolitik som samlat kan hjälpa våra hav att tillfriskna, så att de åter kan binda kol i bottnarna, som nu rivs upp av bottentrålning, och åter har stabila, livskraftiga ekosystem som gör vattnet klart och rent igen och som kan förse Europa med hållbart fiskad fisk.

För det behöver vi inte bara 30 % skyddade områden, utan vi behöver en helhetssyn. Därför välkomnar jag den europeiska havspakten. Den måste ha som högsta prioritet att låta haven tillfriskna igen. Alla politikområden behöver samspela för att nå dit.

Haven är grunden för allt liv. Skyddar vi havet så skyddar vi också oss själva.

Emma Fourreau, au nom du groupe The Left. – Madame la Présidente, monsieur le Commissaire, j’imagine que votre jardin est une zone protégée. Alors, que diriez‑vous si je venais demain dans votre jardin pour y déterrer vos carottes et ramasser vos tomates, avant de repartir en piétinant tout le potager pour être sûre que vos légumes ne repoussent pas l’année prochaine? Nul doute que cela vous déplairait fortement. Et je vous répondrais que j’étais dans votre jardin comme un chalutier de fond dans les aires marines protégées, qui n’ont de protégées que le nom.

Car, si 12 % des eaux de l’Union européenne entrent dans la définition des aires marines protégées, seules 0,2 % le sont de façon stricte. Alors qu’est-ce qui est protégé dans les autres? Rien ou presque: 86 % des aires dites protégées d’Europe sont intensément exploitées, au moyen de méthodes de pêche destructrices, comme le chalutage de fond, ou d’autres activités industrielles extractivistes.

La pêche industrielle a des conséquences délétères: pour la biodiversité, mais aussi pour les petits pêcheurs. Au-delà du chalutage de fond, ces derniers subissent également de plein fouet la concurrence des méga-chalutiers pélagiques, qui n’hésitent pas à traverser les aires marines protégées. Exclure la pêche industrielle des aires marines protégées, comme le recommande l’Union internationale pour la conservation de la nature, c’est donner de l’oxygène à la pêche artisanale, dont les incidences environnementales sont moindres, et qui favorise le renouvellement des espèces.

La Commission s’est engagée à sortir du chalutage de fond dans les aires marines protégées d’ici 2030. Soyez à la hauteur de l’engagement en adoptant un plan de transition juste, qui accompagne les pêcheurs, leur donne de la visibilité, des incitations et des solutions de rechange, et qui prévoie un véritable plan de déchalutisation de la flotte européenne.

Sans action concrète de la Commission comme des États, vos promesses resteront vaines.

Siegbert Frank Droese, im Namen der ESN-Fraktion. – Frau Präsidentin, Herr Kommissar, sehr geehrte Kollegen! Niemand Vernünftiges ist gegen den Schutz der Ozeane vor Zerstörung, aber Umweltschutz funktioniert nicht mit starren Daten, utopischen Zielvorgaben und ideologischer Verblendung.

Sinnvoll sind praktische Dinge, etwa harte Bestrafung von Kapitänen, die ihre Abfälle ins Meer werfen, oder Firmen, die Tankerunfälle fahrlässig verursachen, aber wir brauchen keine Blue Economy als neue sozialistische Planwirtschaft. Ein Beispiel dafür: Bis 2030 sollen 30 % der Ozeane als Schutzzone fungieren – das ist ein utopisches Ziel.

Die Natur ist stärker als die Europäische Kommission, sie regeneriert sich selbst. Biodiversität gibt es seit Millionen von Jahren. Deshalb brauchen wir weder in der Landwirtschaft noch im Fischfang oder sonstwo EU-Naturalisierungsgesetze. Aber ich frage mich: Wo war und ist eigentlich der Schutz der Ozeane bei der Sprengung von Nord Stream 2 geblieben? Wo ist der akribische Wille der Kommission, diese Sprengung von Nord Stream 2 aufzuklären? Es ist schon sehr sonderbar, dass Brüssel hier nichts tut, obwohl doch sonst die Kommission den lieben langen Tag vom Grünen Deal träumt oder das böse CO2 jagt.

Wenn wir über den Schutz der Ozeane sprechen, muss ich auch auf die Sanktionen gegen Russland zu sprechen kommen. Die Sanktionen sollten Russland treffen, gefährden aber mittlerweile unsere Ozeane, unsere Umwelt, weil Russland eben nicht untergeht, sondern seine Rohstoffe mit alten, rostigen Schiffen um den Globus schickt; ein schönes Beispiel dafür, wie sich die Kommission selbst ins Knie schießt, unter großem Applaus vieler Mitglieder dieses Hauses.

Ja, wir müssen die Ozeane schützen, aber vor Sozialistischen, Grünen, Eurokraten. Deshalb sagen wir von der ESN: Wir stimmen guten Ideen zu, die praktikabel sind und vor allem wirtschaftlich; wir stimmen dem Statement in der großen Zielsetzung des Schutzes der Meere zu, aber wir lehnen die Blue-Economy-Basis ab: Sie sind nichts anderes als grüne Experimente und Utopien.

Hélder Sousa Silva (PPE). – Senhora Presidente, Caro Comissário, Caros Colegas, o oceano é claramente um aliado indispensável para a União Europeia reforçar a sua competitividade em áreas estratégicas como a inovação, a segurança alimentar, a autonomia energética e a sustentabilidade ambiental. Por isso, digo que o Pacto Europeu para os Oceanos é uma grande oportunidade. A proteção das zonas costeiras e das comunidades piscatórias é um claro objetivo, mas também temos de assegurar uma justa remuneração para os profissionais.

Elogio a delimitação, na passada semana, por parte dos Açores, da maior área marinha protegida da Europa, protegendo 30 % do seu mar. E, enquanto autarca, participei ativamente na delimitação da área marinha protegida da Ericeira, de Sintra e de Cascais, a primeira em Portugal, que envolveu ativamente a comunidade local na sua delimitação.

Dada a relação intrínseca entre as nossas comunidades e os mares que nos circundam, direi que a preservação do eixo atlântico europeu é um desígnio de todos nós.

André Rodrigues (S&D). – Senhora Presidente, Senhor Comissário, a União Europeia estabeleceu metas ambiciosas para a proteção de pelo menos 30 % das águas marinhas até 2030. Mas não tenhamos ilusões, isto só pode ser assegurado se garantirmos, de facto, o envolvimento de pescadores, comunidades pesqueiras, profissionais da aquicultura, ONG ambientais e demais agentes relevantes e se também assegurarmos as devidas compensações para que os profissionais das pescas não sejam vítimas deste processo.

Saúdo, por isso, o exemplo da minha região, os Açores, que há dias aprovou o plano de reestruturação do setor da pesca, proposto pelo Partido Socialista, que prevê compensações a todos os profissionais afetados pela criação de áreas marinhas protegidas. Com um orçamento superior a 10 milhões de EUR para o período de 2025 a 2030, este plano acompanhará a implementação da proteção de 30 % do mar de uma das maiores zonas económicas exclusivas da Europa.

Este é o exemplo que a União deve seguir, com a definição de um ambicioso fundo que acompanhe e financie um verdadeiro pacto para os oceanos.

André Rougé (PfE). – Madame la Présidente, monsieur le Commissaire, chers collègues, l’outre-mer permet à la France, deuxième zone économique exclusive au monde, d’être au premier rang de la protection des océans: une priorité environnementale mondiale, dont les zones marines protégées sont l’élément le plus marquant.

Aussi sommes-nous inquiets des menaces qui pèsent sur les îles Éparses, désormais revendiquées par Madagascar. Ces îles sont qualifiées de sanctuaires océaniques de la nature primitive. Elles sont les laboratoires de référence au niveau mondial pour étudier l’influence des changements climatiques, car elles sont vierges de toute présence humaine, ce qui en fait des modèles de naturalité.

Il est indispensable que l’Union européenne soutienne fermement la souveraineté française sur les îles Éparses. Face à l’appétit dévorant d’une grande puissance mondiale et hégémonique qui instrumentalise la République de Madagascar dans l’océan Indien, comment l’Union européenne pourrait-elle se désintéresser de ce sanctuaire naturel? Comment l’Union européenne pourrait-elle se désintéresser, parmi ses îles, de celle qui, symboliquement, porte jusqu’à son nom – Europa?

Dans cette partie du monde, personne n’est dupe de ce qui se cache derrière la prétention malgache à annexer les îles Éparses. Pour garantir l’avenir de ces territoires et leur biodiversité, l’Union européenne doit intégrer cette réalité géopolitique dans sa stratégie de protection des océans, mais aussi dans sa diplomatie.

Ana Miranda Paz (Verts/ALE). – Senhora Presidente, venho de um país marítimo, a Galiza, um país do eixo atlântico europeu. Ali, temos duas reservas marinhas, duas áreas marinhas protegidas de interesse pesqueiro ou piscatório, também dito na nossa língua. A reserva marinha de Cedeira, que é uma verdadeira oportunidade, na qual o setor das pescas trabalha também na defesa do meio ambiente e na defesa de um recurso económico vital para o meu país.

No meu país, que é rico em biodiversidade marinha, os governos estão contra as áreas marinhas protegidas. Preferem apoiar a macroeólica marinha, as empresas elétricas que não deixam benefícios, preferem que os marinheiros fiquem sem trabalho, para apoiar os macroparques eólicos.

Senhor Comissário, como é possível que a Comissão Europeia proíba a pesca de fundo e, depois, permita, em áreas marinhas protegidas de especial interesse, que se metam estas macroelétricas a tirar os recursos e o peixe e a vida das nossas comunidades piscatórias, como é o caso de Cedeira?

Per Clausen (The Left). – Fru formand! En af de største og mest vedvarende trusler mod vores havområder – beskyttede eller ej – er vandkvaliteten. Alt for mange steder ser vi, at den økologiske tilstand i havområderne ikke alene er dårlig, den forværres også hele tiden. Det behøver ikke at være sådan. For det er en udvikling, vi ved, hvordan vi kan gøre noget ved. Men det kræver, at vi tør tage fat i årsagerne. Det er den forurening, der kommer fra en industrialiseret landbrugsproduktion, kemikalieindustrien. Det er anvendelse af fiskeredskaber, som ødelægger havbunden. Og her mangler modet til at handle desværre ofte. Det gælder, selv når det er klart, at biodiversiteten i havene forværres år efter år. Et af de steder, hvor modet mangler, er i mit eget hjemland, Danmark. Her taler regeringen varmt om vandmiljøet, men nægter samtidig at implementere vandrammedirektivet på den rigtige måde, eller for den sags skyld at skride ind mod landbrugets udledning af pesticider og kvælstof eller den forurening, som stammer fra kemiske kemikalievirksomheder i Danmark, hvoraf en af dem ovenikøbet producerer pesticider, som er ulovlige at bruge i EU-landene. Vores have gisper bogstaveligt talt efter vejret. Fisk, havdyr og planter forsvinder, hvis EU og medlemsstaterne ikke forstår, at vores have har brug for alvorlig førstehjælp.

Thomas Bajada (S&D). – Madam President, this is embarrassing. We are discussing the future of our ocean when the plenary has practically already ended, when most MEPs have already gone. Is this the attention our future deserves? This is a clear statement that our ocean, our future, is not a priority for the leadership of this Parliament.

Dear colleagues – whoever is left – the ocean is in peril, with climate change, unruly destruction of our biodiversity and our fishers desperately trying to survive. It is vital to have a properly‑managed international network of marine protected areas, not just for biodiversity, but for the survival of our coastal communities that rely on a healthy ocean for their livelihood.

We can’t let this failure continue. The time to act is now. Let us deliver an Ocean Pact that truly protects our ocean and safeguards our livelihood. Empty promises won’t cut it. We need binding targets like real funding, and the international political will to deliver, through marine protected areas, for our ocean, our communities and our future.

Procedura “catch-the-eye”

Niels Geuking (PPE). – Frau Präsidentin! Die Meere sind der größte Lebensraum auf Erden und bedrohter denn je: Klimawandel, Überfischung, auch die eigenen Fangflotten, Verschmutzung, Nährstoff- und Plastikeintrag – und wir schaden uns dadurch auch selbst. Wer Fisch in seinen ganz normalen Speiseplan integriert hat, nimmt am Ende von zwei Wochen knapp diese Plastikkarte Mikroplastik zu sich, also eine Kreditkarte Mikroplastik, weil die Meere dementsprechend verschmutzt sind.

Wir sollten uns unter anderem auch kritischer mit den Fangquoten auseinandersetzen, um den Fischarten überhaupt eine echte Erholungschance zu ermöglichen und am Ende auch die Arbeitsplätze längerfristig zu sichern. Jedes zu späte Handeln wird seine Folgen mit sich bringen; siehe die Störe, den Aal, Dorsch, Kabeljau, Hering, Schellfisch, Heringshai, Dornhai, die Seezunge, Lachs, Meerforelle – und das waren nur Nord- und Ostsee.

Aktuell bieten Offshore-Windparks einen der besten Schutzräume für viele Meerestiere, wie z. B. die Nordseegarnele – an sich ein trauriger Fakt. Effektiv wäre es auch, wenn wir einmal darüber sprechen würden, dass Haifischflossen ein großes Problem darstellen. Würde der Hai als Ganzes in einen europäischen Hafen einlaufen müssen, wäre das Problem wahrscheinlich gar nicht so groß. Insofern, einfache Regelung mit enormer Wirkung.

Jean-Marc Germain (S&D). – Madame la Présidente, mes chers collègues, comment parler de la protection des océans sans évoquer la nécessaire protection des lanceurs d’alerte? Paul Watson croupit en prison depuis près de cent jours pour avoir voulu faire respecter le moratoire sur la pêche à la baleine. Nous devons nous battre pour sa liberté. Je me réjouis cette initiative de la Ville de Paris qui en a fait un citoyen d’honneur de la capitale de mon pays. J’appelle par ailleurs le président de la République à lui accorder la nationalité française, qu’il demande, et j’appelle de nouveau l’Union européenne à lui offrir la protection de la directive de 2019 sur la protection des personnes qui signalent des violations du droit de l’Union européenne.

La liste des destructions à l’œuvre dans nos océans est aussi longue que le temps est court pour agir. Agir, c’est sortir de la pêche industrielle, c’est établir de vraies aires maritimes protégées, c’est adopter un moratoire sur les exploitations minières en eaux profondes, c’est bannir les polluants qui détruisent la vie marine, c’est garantir de puissants moyens financiers et de contrôle.

Les océans sont vitaux pour la préservation du vivant. Mes chers collègues, protégeons-les!

Pernando Barrena Arza (The Left). – Señora presidenta, en este punto sobre las amenazas persistentes a zonas marinas protegidas y comunidades costeras quiero llamar la atención de sus señorías sobre un proyecto para la construcción en Gernika (País Vasco) de un nuevo museo Guggenheim en plena reserva de la biosfera de Urdaibai, que es un estuario en la desembocadura del río Oca al mar Cantábrico, en el océano Atlántico.

Estamos hablando de un proyecto que vulnera la legislación europea al plantearse en la marisma de Urdaibai, una Zona de Especial Protección para las Aves o ZEPA y, por lo tanto, parte de la Red Natura 2000. Por esta zona, declarada de especial protección, se estima que circularían alrededor de 140 000 visitantes anuales, según los promotores del museo, lo cual es absolutamente un sinsentido.

Esta situación hace que el proyecto cuente con una enorme oposición de los habitantes del lugar, que exigen detener este proyecto porque creen que pone en riesgo una zona que debiera estar especialmente protegida y que necesita un plan de desarrollo acorde con el valor del entorno ambiental de Urdaibai.

Queremos interpelar a la Comisión para que actúe en consecuencia, proteja los intereses medioambientales de los ciudadanos de la zona y no permita el deterioro absoluto de este espacio costero, protegido por una figura diseñada por la propia Comisión Europea como es la Red Natura 2000.

Lukas Sieper (NI). – Frau Präsidentin, Hohes Haus! Zum Abschluss dieser Plenarwoche möchte ich noch einmal auf die Grundsätze hinweisen, die zu befolgen in diesem Haus wichtig ist. Ich weiß, ich selbst bin auch manchmal disruptiv, wenn es um die Gepflogenheiten des Parlaments geht, aber manche Dinge sollten wir doch auf jeden Fall hier befolgen.

Eines davon ist es, die Wahrheit zu sprechen, und zwar die ganze Wahrheit, nicht nur einen Teil davon. Deswegen möchte ich auf eine Wahrheit eingehen, die der Kollege Droese vorhin angesprochen hat. Herr Kollege Droese von der rechtsextremen Partei AfD sagte, dass es schon immer klimatische Veränderungen auf der Welt gegeben hat, schon immer Veränderungen der Biodiversität gegeben hat.

Ja, das stimmt, das bezweifelt auch keiner. Tatsache ist aber, dass diese Veränderungen in den letzten Jahren und Jahrzehnten in einem Ausmaß stattfinden, wie es das noch nie auf der Welt gegeben hat. Auch wenn der Kollege mir offensichtlich leider nicht zuhört – was schade ist an der Stelle –, möchte ich ihm trotzdem bewusst machen: Sie müssen immer die ganze Wahrheit betrachten, vor allen Dingen, wenn es um Themen des Klimawandels geht, wie den Schutz der Ozeane.

(Fine della procedura “catch the eye”)

Janusz Wojciechowski, Member of the Commission. – Madam President, honourable Members, thank you very much for all the inspiring contributions.

The Commission has engaged with citizens, businesses, scientists, NGOs, cities, coastal communities and our international partners. They all expect us to act. Achieving a coherent and effectively‑managed EU network of marine protected areas will remain a high priority for the Commission. We need more marine protected areas and we need them to be truly protected through effective conservation measures.

We have the awareness of our citizens, we have the knowledge and we have solutions. Now we need the political will, across Member States, to engage the dialogue, to strengthen the knowledge base, to support the innovations, to achieve full compliance with European law.

Honourable Members, let’s secure together a better future for our ocean to the benefit of all of us.

Pani Przewodnicząca! Jeszcze pozwolę sobie na zakończenie kilka słów powiedzieć w moim ojczystym języku polskim, bo padła tutaj wypowiedź jednego z Państwa, z panów posłów, że sankcje, którymi Unia Europejska obejmuje Rosję, są po to, żeby Rosja cierpiała. Otóż nie, one nie są po to, żeby Rosja cierpiała. One są po to, żeby nie cierpiała Ukraina, a w dalszej przyszłości, aby podobne cierpienie nie spotkało żadnego innego kraju, w tym mojego ojczystego kraju Polski.

Presidente. – La discussione è chiusa.

13. Explications de vote

Presidente. – L’ordine del giorno reca le dichiarazioni di voto.

13.1. Situation in Azerbaijan, violation of human rights and international law and relations with Armenia (RC-B10-0133/2024)

Seán Kelly (PPE). – A Uachtaráin, ní ráiteas polaitiúil amháin é an tairiscint i gcomhair rúin ar an staid san Asarbaiseáin, ach ráiteas morálta. Ní mór dúinn freagairt ar ghlanadh eitneach na nAirméineach, ar ionsaí míleata leanúnach agus ar neamhaird gan náire na hAsarbaiseáine ar chearta an duine. Ní mór don Aontas Eorpach an daonlathas a chosaint, agus ní mór an smacht reachta agus na luachanna sin a urramú go leanúnach. Ní hamháin nach mór dúinn na gníomhaíochtaí sin a cháineadh, ach ní mór dúinn gníomhú ina leith freisin. Caithfimid an Asarbaiseáin a thabhairt chun cuntais. Úsáidimis an rún seo chun ár dtiomantas do chearta an duine a athdhearbhú, ní hamháin le briathar ach le gníomh. Agus anois freagróidh mé an fón.

13.2. People’s Republic of China’s misinterpretation of the UN resolution 2758 and its continuous military provocations around Taiwan (RC-B10-0134/2024)

Seán Kelly (PPE). – A Uachtaráin, thacaigh mé leis an rún seo toisc go bhfuil rannpháirtíocht fhiúntach tuillte ag an Téaváin i bhfóraim idirnáisiúnta. Cé go dtugtar aitheantas i rún 2758 na Náisiún Aontaithe i 1971 do Dhaon-Phoblacht na Síne, ní réitíonn sé stádas na Téaváine ná ní thugann sé ceannasacht don tSín ar an Téaváin. Tá ról ríthábhachtach ag an Téaváin, ar thír dhaonlathach bhríomhar í ar fud an domhain, ón gcúram sláinte go dtí an teicneolaíocht. Ba cheart a toghcháin shíochánta agus a dearcadh comhoibrithe domhanda a léiriú ina rannpháirtíocht le heagraíochtaí idirnáisiúnta amhail EDS agus ICAO. Ní hamháin go bhfuil sé cóir, ach tá sé riachtanach freisin go dtacaímid le rannpháirtíocht na Téaváine chun an dlí idirnáisiúnta agus an daonlathas a urramú.

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

Presidente. – Il processo verbale della seduta odierna verrà sottoposto all’approvazione del Parlamento all’inizio della prossima seduta.

Se non vi sono obiezioni, procedo alla trasmissione immediata delle risoluzioni approvate nella seduta odierna ai loro destinatari.

15. Dates of forthcoming sittings

Presidente. – La prossima tornata si svolgerà dal 13 al 14 novembre 2024 a Bruxelles.

16. Closure of the sitting

(La seduta è tolta alle 15.41)

17. Adjournment of the session

Presidente. – Dichiaro interrotta la sessione del Parlamento europeo.

La seduta è tolta.

MIL OSI Europe News –

January 25, 2025

MIL-OSI: Leading Independent Proxy Advisory Firm Glass Lewis Joins ISS in Recommending that Territorial Shareholders Vote “FOR” Merger with Hope Bancorp

Source: GlobeNewswire (MIL-OSI)

Glass Lewis Recognizes the Value Creation and Additional Upside that the Hope Bancorp Merger Provides to Territorial Shareholders

Glass Lewis Acknowledges the Substantial Concerns and Risks Posed by Blue Hill’s Secrecy, Lack of Transparency and the Absence of Crucial, Material Information

Glass Lewis Agrees with Board’s Decision Not to Consider the Blue Hill Preliminary Indication of Interest a Superior Proposal

Territorial Board Urges Shareholders to Follow the Recommendations from Glass Lewis and ISS and Vote “FOR” the Hope Bancorp Merger TODAY

HONOLULU, Oct. 25, 2024 (GLOBE NEWSWIRE) — Territorial Bancorp Inc. (NASDAQ: TBNK) (“Territorial” or the “Company”) today announced that leading independent proxy advisory firm Glass, Lewis & Co., LLC (“Glass Lewis”) has joined Institutional Shareholder Services (“ISS”) in recommending that Territorial shareholders vote “FOR” the Company’s pending merger with Hope Bancorp, Inc. (NASDAQ: HOPE) (“Hope Bancorp”).

The Company’s Special Meeting of Stockholders to vote on the transaction is scheduled to be held on November 6, 2024 at 8:30am, Hawai‘i Time. Time is short. The Special Meeting is fast approaching. Territorial shareholders are urged to vote TODAY. Voting is simple. For more information, visit the Company’s website at https://www.territorialandhopecombination.com.

Commenting on the Glass Lewis and ISS reports, Territorial issued the following statement:

The Territorial Board of Directors and management team collectively own 9.2% of Territorial’s outstanding shares. We are confident that the Hope Bancorp transaction is the best path forward for Territorial, our shareholders, customers, employees and the local communities we serve. We have already voted all of our shares FOR the transaction, and we urge our fellow Territorial shareholders to join us and also follow the recommendations from the Territorial Board, Glass Lewis and ISS by voting FOR the Hope Bancorp transaction today.

Glass Lewis stated in its October 24, 2024 reportⁱ:

On the favorable financial aspects associated with the Hope Bancorp merger:

“Since the merger consideration in the proposed Hope transaction solely comprises Hope shares, current Territorial shareholders will have the opportunity to benefit from ongoing participation in a profitable, enlarged bank that is expected to be better equipped, compared to Territorial on a standalone basis, to work through various challenges and headwinds amid an uncertain economic environment.”
“From a quantitative perspective, the results of the dividend discount model analysis performed by KBW suggest that the implied value of the proposed Exchange Ratio is relatively favorable.”

On the uncertainty, risks and concerns associated with Blue Hill’s preliminary indication of interest, including its lack of financing, the secrecy of its investors and doubts about its ability to close a transaction at all:

“We also believe that, to date, Blue Hill has provided insufficient disclosures to the Board and to shareholders regarding key details of its proposal.”
“In our view, the lack of such crucial information, which Blue Hill insists on keeping confidential, coupled with the uncertainties connected with Blue Hill’s need to conduct due diligence to confirm its offer price, casts serious doubts as to the risks and closing certainty of Blue Hill’s proposed deal.”
“Blue Hill has not provided any form of supporting evidence as to why the Blue Hill Investors would not be considered as ‘acting in concert’ by the relevant regulatory authorities, which may validate the Board’s concerns regarding the complexity and uncertainties connected to the Blue Hill Proposal.”

In affirming that the Territorial Board reached the right conclusion with respect to the Blue Hill preliminary indication of interest and the determination that it is not a superior proposal or likely to lead to a proposal that is superior to the Hope Bancorp transaction:

“any direct engagement between the Board and Blue Hill could be seen as a breach of the covenants in the Merger Agreement.”
“we ultimately believe the Board’s decision not to deem the Blue Hill Proposal a superior proposal to be the most prudent approach, particularly given Blue Hill’s lack of serious attempts to address the Board’s concerns regarding the uncertainties of the Blue Hill Proposal.”
“We acknowledge that the Blue Hill Proposal offers a meaningfully higher headline price to Territorial shareholders…However, we believe the Board has raised valid concerns regarding the uncertainty and significant conditionality of the Blue Hill Proposal.”

Your Vote is Important

Territorial Shareholders are Urged to Vote FOR the Hope Bancorp Merger TODAY.

Voting is quick and easy.
Vote well in advance of the Special Meeting on November 6, 2024 at 8:30 a.m. HST.

Call toll-free:
(888) 742-1305
Banks and brokers should call:
(516) 933-3100
Email: info@laurelhill.com
Electronically: www.proxyvote.com

About Us

Territorial Bancorp Inc., headquartered in Honolulu, Hawaiʻi, is the stock holding company for Territorial Savings Bank. Territorial Savings Bank is a state-chartered savings bank which was originally chartered in 1921 by the Territory of Hawaiʻi. Territorial Savings Bank conducts business from its headquarters in Honolulu, Hawaiʻi, and has 28 branch offices in the state of Hawaiʻi. For additional information, please visit https://www.tsbhawaii.bank/.

Additional Information about the Hope Merger and Where to Find It

In connection with the proposed Hope Merger, Hope has filed with the U.S. Securities and Exchange Commission (the “SEC”) a Registration Statement on Form S-4, containing the Proxy Prospectus, which has been mailed or otherwise delivered to Territorial’s stockholders on or about August 29, 2024, as supplemented September 12, 2024. Hope and Territorial may file additional relevant materials with the SEC. INVESTORS AND STOCKHOLDERS ARE URGED TO READ THE PROXY PROSPECTUS, AND ANY OTHER RELEVANT DOCUMENTS THAT ARE FILED OR FURNISHED OR WILL BE FILED OR FURNISHED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION AND RELATED MATTERS. You may obtain any of the documents filed with or furnished to the SEC by Hope or Territorial at no cost from the SEC’s website at www.sec.gov.

Forward-Looking Statements

Some statements in this news release may constitute 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 relate to, among other things, expectations regarding the low-cost core deposit base, diversification of the loan portfolio, expansion of market share, capital to support growth, strengthened opportunities, enhanced value, geographic expansion, and statements about the proposed transaction being immediately accretive. Forward-looking statements include, but are not limited to, statements preceded by, followed by or that include the words “will,” “believes,” “expects,” “anticipates,” “intends,” “plans,” “estimates” or similar expressions. With respect to any such forward-looking statements, Territorial Bancorp claims the protection provided for in the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties. Hope Bancorp’s actual results, performance or achievements may differ significantly from the results, performance or achievements expressed or implied in any forward-looking statements. The closing of the proposed transaction is subject to regulatory approvals, the approval of Territorial Bancorp stockholders, and other customary closing conditions. There is no assurance that such conditions will be met or that the proposed merger will be consummated within the expected time frame, or at all. If the transaction is consummated, factors that may cause actual outcomes to differ from what is expressed or forecasted in these forward-looking statements include, among things: difficulties and delays in integrating Hope Bancorp and Territorial Bancorp and achieving anticipated synergies, cost savings and other benefits from the transaction; higher than anticipated transaction costs; deposit attrition, operating costs, customer loss and business disruption following the merger, including difficulties in maintaining relationships with employees and customers, may be greater than expected; and required governmental approvals of the merger may not be obtained on its proposed terms and schedule, or without regulatory constraints that may limit growth. Other risks and uncertainties include, but are not limited to: possible further deterioration in economic conditions in Hope Bancorp’s or Territorial Bancorp’s areas of operation or elsewhere; interest rate risk associated with volatile interest rates and related asset-liability matching risk; liquidity risks; risk of significant non-earning assets, and net credit losses that could occur, particularly in times of weak economic conditions or times of rising interest rates; the failure of or changes to assumptions and estimates underlying Hope Bancorp’s or Territorial Bancorp’s allowances for credit losses; potential increases in deposit insurance assessments and regulatory risks associated with current and future regulations; the outcome of any legal proceedings that may be instituted against Hope Bancorp or Territorial Bancorp; the risk that any announcements relating to the proposed transaction could have adverse effects on the market price of the common stock of either or both parties to the proposed transaction; and diversion of management’s attention from ongoing business operations and opportunities. For additional information concerning these and other risk factors, see Hope Bancorp’s and Territorial Bancorp’s most recent Annual Reports on Form 10-K. Hope Bancorp and Territorial Bancorp do not undertake, and specifically disclaim any obligation, to update any forward-looking statements to reflect the occurrence of events or circumstances after the date of such statements except as required by law.

Investor / Media Contacts:
Walter Ida
SVP, Director of Investor Relations
808-946-1400
walter.ida@territorialsavings.net

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The MIL Network –

January 25, 2025

MIL-OSI: First Hawaiian, Inc. Reports Third Quarter 2024 Financial Results and Declares Dividend

Source: GlobeNewswire (MIL-OSI)

HONOLULU, Oct. 25, 2024 (GLOBE NEWSWIRE) — First Hawaiian, Inc. (NASDAQ:FHB), (“First Hawaiian” or the “Company”) today reported financial results for its quarter ended September 30, 2024.

“I’m happy to report that we had a very good third quarter,” said Bob Harrison, Chairman, President, and CEO. “Net interest income and noninterest income increased over the prior quarter, expenses were well controlled and credit quality remained excellent. I’m also pleased to report that during the third quarter, Moody’s reviewed and reaffirmed all of First Hawaiian Bank’s long-term credit and deposit ratings.”

On October 23, 2024, the Company’s Board of Directors declared a quarterly cash dividend of $0.26 per share. The dividend will be payable on November 29, 2024, to stockholders of record at the close of business on November 18, 2024.

Third Quarter 2024 Highlights:

Net income of $61.5 million, or $0.48 per diluted share
Total loans and leases decreased $118.5 million versus the prior quarter
Total deposits decreased $91.1 million versus the prior quarter
Net interest margin increased 3 basis points to 2.95%
Recorded a $7.4 million provision for credit losses
Board of Directors declared a quarterly dividend of $0.26 per share

Balance Sheet

Total assets were $23.8 billion as of September 30, 2024, a decrease of $211.5 million, or 0.9%, from $24.0 billion as of June 30, 2024.

Gross loans and leases were $14.2 billion as of September 30, 2024, a decrease of $118.5 million, or 0.8%, from $14.4 billion as of June 30, 2024.

Total deposits were $20.2 billion as of September 30, 2024, a decrease of $91.1 million, or 0.4%, from $20.3 billion as of June 30, 2024.

Net Interest Income

Net interest income for the third quarter of 2024 was $156.7 million, an increase of $3.9 million, or 2.5%, compared to $152.9 million for the prior quarter.

The net interest margin was 2.95% in the third quarter of 2024, an increase of 3 basis points compared to 2.92% in the prior quarter.

Provision Expense

During the quarter ended September 30, 2024, we recorded a $7.4 million provision for credit losses. In the quarter ended June 30, 2024, we recorded a $1.8 million provision for credit losses.

Noninterest Income

Noninterest income was $53.3 million in the third quarter of 2024, an increase of $1.5 million compared to noninterest income of $51.8 million in the prior quarter.

Noninterest Expense

Noninterest expense was $126.1 million in the third quarter of 2024, an increase of $4.1 million compared to noninterest expense of $122.1 million in the prior quarter.

The efficiency ratio was 59.8% and 59.2% for the quarters ended September 30, 2024 and June 30, 2024, respectively.

Taxes

The effective tax rate was 19.6% and 23.3% for the quarters ended September 30, 2024 and June 30, 2024, respectively.

Asset Quality

The allowance for credit losses was $163.7 million, or 1.15% of total loans and leases, as of September 30, 2024, compared to $160.5 million, or 1.12% of total loans and leases, as of June 30, 2024. The reserve for unfunded commitments was $33.7 million as of September 30, 2024 compared to $33.4 million as of June 30, 2024. Net charge-offs were $3.9 million, or 0.11% of average loans and leases on an annualized basis, for the quarter ended September 30, 2024, compared to net charge-offs of $2.5 million, or 0.07% of average loans and leases on an annualized basis, for the quarter ended June 30, 2024. Total non-performing assets were $17.8 million, or 0.13% of total loans and leases and other real estate owned, as of September 30, 2024, compared to $18.0 million, or 0.13% of total loans and leases and other real estate owned, as of June 30, 2024.

Capital

Total stockholders’ equity increased $97.7 million in the third quarter, and stood at $2.6 billion on September 30, 2024 and June 30, 2024.

The tier 1 leverage, common equity tier 1 and total capital ratios were 9.14%, 13.03% and 14.25%, respectively, on September 30, 2024, compared with 9.03%, 12.73% and 13.92%, respectively, on June 30, 2024.

The Company did not repurchase any shares in the third quarter.

First Hawaiian, Inc.

First Hawaiian, Inc. (NASDAQ:FHB) is a bank holding company headquartered in Honolulu, Hawaii. Its principal subsidiary, First Hawaiian Bank, founded in 1858 under the name Bishop & Company, is Hawaii’s oldest and largest financial institution with branch locations throughout Hawaii, Guam and Saipan. The company offers a comprehensive suite of banking services to consumer and commercial customers including deposit products, loans, wealth management, insurance, trust, retirement planning, credit card and merchant processing services. Customers may also access their accounts through ATMs, online and mobile banking channels. For more information about First Hawaiian, Inc., visit the Company’s website, www.fhb.com.

Conference Call Information

First Hawaiian will host a conference call to discuss the Company’s results today at 1:00 p.m. Eastern Time, 7:00 a.m. Hawaii Time.

To access the call by phone, participants will need to click on the following registration link: https://register.vevent.com/register/BIec8273f35cc340bcb13d27eae17d127b, register for the conference call, and then you will receive the dial-in number and a personalized PIN code. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time.

A live webcast of the conference call, including a slide presentation, will be available at the following link: www.fhb.com/earnings. The archive of the webcast will be available at the same location.

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 our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as “may”, “might”, “should”, “could”, “predict”, “potential”, “believe”, “expect”, “continue”, “will”, “anticipate”, “seek”, “estimate”, “intend”, “plan”, “projection”, “would”, “annualized” and “outlook”, or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, estimates and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, there can be no assurance that actual results will not prove to be materially different from the results expressed or implied by the forward-looking statements. A number of important factors could cause actual results or performance to differ materially from the forward-looking statements, including (without limitation) the risks and uncertainties associated with the domestic and global economic environment and capital market conditions and other risk factors. For a discussion of some of these risks and important factors that could affect our future results and financial condition, see our U.S. Securities and Exchange Commission (“SEC”) filings, including, but not limited to, our Annual Report on Form 10-K for the year ended December 31, 2023 and our Quarterly Report on Form 10-Q for the quarters ended March 31, 2024 and June 30, 2024.

Use of Non-GAAP Financial Measures
Return on average tangible assets, return on average tangible stockholders’ equity, tangible book value per share and tangible stockholders’ equity to tangible assets are non-GAAP financial measures. We believe that these measurements are useful for investors, regulators, management and others to evaluate financial performance and capital adequacy relative to other financial institutions. Although these non-GAAP financial measures are frequently used by stakeholders in the evaluation of a company, they have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our results or financial condition as reported under GAAP. Investors should consider our performance and capital adequacy as reported under GAAP and all other relevant information when assessing our performance and capital adequacy.

Table 14 at the end of this document provides a reconciliation of these non-GAAP financial measures with their most directly comparable GAAP measures.


Financial Highlights	Table 1
	For the Three Months Ended									For the Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
(dollars in thousands, except per share data)	2024			2024			2023			2024			2023
Operating Results:
Net interest income	$	156,707		$	152,851		$	157,148		$	463,985		$	484,334
Provision for credit losses		7,400			1,800			7,500			15,500			21,300
Noninterest income		53,288			51,768			46,097			156,427			142,468
Noninterest expense		126,147			122,086			119,383			377,046			358,831
Net income		61,492			61,921			58,221			177,633			187,481
Basic earnings per share		0.48			0.48			0.46			1.39			1.47
Diluted earnings per share		0.48			0.48			0.46			1.38			1.47
Dividends declared per share		0.26			0.26			0.26			0.78			0.78
Dividend payout ratio		54.17	%		54.17	%		56.52	%		56.52	%		53.06	%
Performance Ratios⁽¹⁾:
Net interest margin		2.95	%		2.92	%		2.86	%		2.93	%		2.96	%
Efficiency ratio		59.77	%		59.22	%		58.31	%		60.38	%		56.86	%
Return on average total assets		1.02	%		1.04	%		0.93	%		0.99	%		1.01	%
Return on average tangible assets (non-GAAP)⁽²⁾		1.06	%		1.08	%		0.97	%		1.03	%		1.06	%
Return on average total stockholders’ equity		9.45	%		9.91	%		9.76	%		9.37	%		10.72	%
Return on average tangible stockholders’ equity (non-GAAP)⁽²⁾		15.35	%		16.42	%		16.84	%		15.43	%		18.68	%
Average Balances:
Average loans and leases	$	14,304,806		$	14,358,049		$	14,349,402		$	14,325,065		$	14,238,309
Average earning assets		21,328,882			21,247,707			22,060,480			21,352,739			22,040,704
Average assets		24,046,696			23,958,913			24,727,893			24,064,208			24,699,826
Average deposits		20,367,805			20,308,028			21,212,102			20,415,746			21,245,055
Average stockholders’ equity		2,588,806			2,512,471			2,367,422			2,532,911			2,337,292
Market Value Per Share:
Closing		23.15			20.76			18.05			23.15			18.05
High		26.18			22.68			22.59			26.18			28.28
Low		20.28			19.48			17.41			19.48			15.08


	As of			As of			As of			As of
	September 30,			June 30,			December 31,			September 30,
(dollars in thousands, except per share data)	2024			2024			2023			2023
Balance Sheet Data:
Loans and leases	$	14,241,370		$	14,359,899		$	14,353,497		$	14,332,335
Total assets		23,780,285			23,991,791			24,926,474			24,912,524
Total deposits		20,227,702			20,318,832			21,332,657			21,511,489
Short-term borrowings		250,000			500,000			500,000			500,000
Total stockholders’ equity		2,648,034			2,550,312			2,486,066			2,351,009

Per Share of Common Stock:
Book value	$	20.71		$	19.94		$	19.48		$	18.42
Tangible book value (non-GAAP)⁽²⁾		12.92			12.16			11.68			10.62

Asset Quality Ratios:
Non-accrual loans and leases / total loans and leases		0.13	%		0.13	%		0.13	%		0.10	%
Allowance for credit losses for loans and leases / total loans and leases		1.15	%		1.12	%		1.09	%		1.08	%

Capital Ratios:
Common Equity Tier 1 Capital Ratio		13.03	%		12.73	%		12.39	%		12.21	%
Tier 1 Capital Ratio		13.03	%		12.73	%		12.39	%		12.21	%
Total Capital Ratio		14.25	%		13.92	%		13.57	%		13.38	%
Tier 1 Leverage Ratio		9.14	%		9.03	%		8.64	%		8.45	%
Total stockholders’ equity to total assets		11.14	%		10.63	%		9.97	%		9.44	%
Tangible stockholders’ equity to tangible assets (non-GAAP)⁽²⁾		7.25	%		6.76	%		6.23	%		5.67	%

Non-Financial Data:
Number of branches		48			48			50			50
Number of ATMs		273			272			275			294
Number of Full-Time Equivalent Employees		2,022			2,032			2,089			2,087

⁽¹⁾Except for the efficiency ratio, amounts are annualized for the three and nine months ended September 30, 2024 and 2023 and three months ended June 30, 2024.

⁽²⁾Return on average tangible assets, return on average tangible stockholders’ equity, tangible book value per share and tangible stockholders’ equity to tangible assets are non-GAAP financial measures. We compute our return on average tangible assets as the ratio of net income to average tangible assets, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total assets. We compute our return on average tangible stockholders’ equity as the ratio of net income to average tangible stockholders’ equity, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total stockholders’ equity. We compute our tangible book value per share as the ratio of tangible stockholders’ equity to outstanding shares. Tangible stockholders’ equity is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our total stockholders’ equity. We compute our tangible stockholders’ equity to tangible assets as the ratio of tangible stockholders’ equity to tangible assets, each of which we calculate by subtracting (and thereby effectively excluding) the value of our goodwill. For a reconciliation to the most directly comparable GAAP financial measure, see Table 14, GAAP to Non-GAAP Reconciliation.


Consolidated Statements of Income	Table 2
	For the Three Months Ended						For the Nine Months Ended
	September 30,		June 30,		September 30,		September 30,
(dollars in thousands, except per share amounts)	2024		2024		2023		2024		2023
Interest income
Loans and lease financing	$	205,682	$	202,068	$	194,098	$	607,594	$	551,777
Available-for-sale investment securities		12,850		14,143		18,426		41,539		55,208
Held-to-maturity investment securities		16,937		17,575		18,271		52,305		55,510
Other		14,527		11,148		9,004		38,444		20,054
Total interest income		249,996		244,934		239,799		739,882		682,549
Interest expense
Deposits		87,500		85,609		74,651		257,252		176,006
Short-term and long-term borrowings		5,397		5,953		6,838		17,303		20,057
Other		392		521		1,162		1,342		2,152
Total interest expense		93,289		92,083		82,651		275,897		198,215
Net interest income		156,707		152,851		157,148		463,985		484,334
Provision for credit losses		7,400		1,800		7,500		15,500		21,300
Net interest income after provision for credit losses		149,307		151,051		149,648		448,485		463,034
Noninterest income
Service charges on deposit accounts		7,783		7,793		7,524		23,122		22,001
Credit and debit card fees		17,533		15,861		15,748		49,567		47,507
Other service charges and fees		11,790		11,036		9,546		32,730		27,764
Trust and investment services income		9,077		9,426		9,742		28,857		28,804
Bank-owned life insurance		4,502		3,360		1,872		12,148		10,263
Other		2,603		4,292		1,665		10,003		6,129
Total noninterest income		53,288		51,768		46,097		156,427		142,468
Noninterest expense
Salaries and employee benefits		59,563		57,737		55,937		176,562		169,873
Contracted services and professional fees		14,634		16,067		16,393		46,440		50,204
Occupancy		6,945		7,377		6,711		21,263		22,047
Equipment		13,078		13,196		11,826		39,687		32,562
Regulatory assessment and fees		3,412		3,814		4,149		15,346		11,661
Advertising and marketing		1,813		1,765		2,289		6,190		6,174
Card rewards program		8,678		8,719		8,358		25,905		24,124
Other		18,024		13,411		13,720		45,653		42,186
Total noninterest expense		126,147		122,086		119,383		377,046		358,831
Income before provision for income taxes		76,448		80,733		76,362		227,866		246,671
Provision for income taxes		14,956		18,812		18,141		50,233		59,190
Net income	$	61,492	$	61,921	$	58,221	$	177,633	$	187,481
Basic earnings per share	$	0.48	$	0.48	$	0.46	$	1.39	$	1.47
Diluted earnings per share	$	0.48	$	0.48	$	0.46	$	1.38	$	1.47
Basic weighted-average outstanding shares		127,886,167		127,867,853		127,609,860		127,820,737		127,552,255
Diluted weighted-average outstanding shares		128,504,035		128,262,594		127,936,440		128,362,433		127,897,829


Consolidated Balance Sheets	Table 3
	September 30,			June 30,			December 31,			September 30,
(dollars in thousands, except share amount)	2024			2024			2023			2023
Assets
Cash and due from banks	$	252,209		$	290,501		$	185,015		$	246,028
Interest-bearing deposits in other banks		820,603			824,258			1,554,882			967,400
Investment securities:
Available-for-sale, at fair value (amortized cost: $2,290,781 as of September 30, 2024, $2,379,004 as of June 30, 2024, $2,558,675 as of December 31, 2023 and $3,172,031 as of September 30, 2023)		2,055,959			2,067,956			2,255,336			2,722,704
Held-to-maturity, at amortized cost (fair value: $3,475,143 as of September 30, 2024, $3,401,006 as of June 30, 2024, $3,574,856 as of December 31, 2023 and $3,433,029 as of September 30, 2023)		3,853,697			3,917,175			4,041,449			4,104,114
Loans held for sale		—			2,820			190			—
Loans and leases		14,241,370			14,359,899			14,353,497			14,332,335
Less: allowance for credit losses		163,700			160,517			156,533			154,795
Net loans and leases		14,077,670			14,199,382			14,196,964			14,177,540

Premises and equipment, net		287,036			283,762			281,461			277,805
Accrued interest receivable		81,875			82,512			84,417			84,327
Bank-owned life insurance		490,135			486,261			479,907			477,698
Goodwill		995,492			995,492			995,492			995,492
Mortgage servicing rights		5,236			5,395			5,699			5,855
Other assets		860,373			836,277			845,662			853,561
Total assets	$	23,780,285		$	23,991,791		$	24,926,474		$	24,912,524
Liabilities and Stockholders’ Equity
Deposits:
Interest-bearing	$	13,427,674		$	13,461,365		$	13,749,095		$	13,612,493
Noninterest-bearing		6,800,028			6,857,467			7,583,562			7,898,996
Total deposits		20,227,702			20,318,832			21,332,657			21,511,489
Short-term borrowings		250,000			500,000			500,000			500,000
Retirement benefits payable		100,448			101,304			103,285			99,685
Other liabilities		554,101			521,343			504,466			450,341
Total liabilities		21,132,251			21,441,479			22,440,408			22,561,515

Stockholders’ equity
Common stock ($0.01 par value; authorized 300,000,000 shares; issued/outstanding: 141,735,601 / 127,886,167 shares as of September 30, 2024, issued/outstanding: 141,728,446 / 127,879,012 shares as of June 30, 2024, issued/outstanding: 141,340,539 / 127,618,761 shares as of December 31, 2023 and issued/outstanding: 141,330,663 / 127,609,934 shares as of September 30, 2023)		1,417			1,417			1,413			1,413
Additional paid-in capital		2,558,158			2,554,795			2,548,250			2,545,659
Retained earnings		915,062			887,176			837,859			823,895
Accumulated other comprehensive loss, net		(452,658	)		(519,132	)		(530,210	)		(648,731	)
Treasury stock (13,849,434 shares as of September 30, 2024, 13,849,434 shares as of June 30, 2024, 13,721,778 shares as of December 31, 2023 and 13,720,729 shares as of September 30, 2023)		(373,945	)		(373,944	)		(371,246	)		(371,227	)
Total stockholders’ equity		2,648,034			2,550,312			2,486,066			2,351,009
Total liabilities and stockholders’ equity	$	23,780,285		$	23,991,791		$	24,926,474		$	24,912,524


Average Balances and Interest Rates																	Table 4
	Three Months Ended						Three Months Ended						Three Months Ended
	September 30, 2024						June 30, 2024						September 30, 2023
	Average		Income/		Yield/		Average		Income/		Yield/		Average		Income/		Yield/
(dollars in millions)	Balance		Expense		Rate		Balance		Expense		Rate		Balance		Expense		Rate
Earning Assets
Interest-Bearing Deposits in Other Banks	$	1,020.4	$	13.9	5.40	%	$	773.4	$	10.5	5.45	%	$	608.6	$	8.2	5.36	%
Available-for-Sale Investment Securities
Taxable		2,062.6		12.8	2.48			2,100.7		14.1	2.69			2,834.6		18.4	2.59
Non-Taxable		1.5		—	5.06			1.5		—	5.76			2.3		—	5.48
Held-to-Maturity Investment Securities
Taxable		3,288.2		13.8	1.67			3,358.2		14.4	1.71			3,544.1		15.0	1.70
Non-Taxable		602.3		3.7	2.46			602.9		4.0	2.64			604.3		4.1	2.66
Total Investment Securities		5,954.6		30.3	2.03			6,063.3		32.5	2.15			6,985.3		37.5	2.14
Loans Held for Sale		2.2		—	5.64			1.0		—	6.58			0.4		—	6.63
Loans and Leases⁽¹⁾
Commercial and industrial		2,165.3		38.0	6.98			2,201.6		38.1	6.96			2,123.5		35.7	6.66
Commercial real estate		4,278.3		71.6	6.67			4,305.6		71.5	6.68			4,381.8		71.4	6.47
Construction		1,040.7		20.3	7.74			984.8		18.5	7.57			873.7		15.5	7.05
Residential:
Residential mortgage		4,204.5		40.4	3.84			4,229.4		40.1	3.80			4,316.3		40.1	3.72
Home equity line		1,158.5		13.2	4.52			1,164.2		12.6	4.35			1,154.0		10.1	3.45
Consumer		1,035.3		18.7	7.19			1,054.1		17.7	6.74			1,172.8		18.3	6.19
Lease financing		422.2		4.0	3.72			418.3		4.3	4.09			327.3		3.7	4.48
Total Loans and Leases		14,304.8		206.2	5.74			14,358.0		202.8	5.67			14,349.4		194.8	5.39
Other Earning Assets		46.9		0.7	5.83			52.0		0.7	5.25			116.8		0.8	2.64
Total Earning Assets⁽²⁾		21,328.9		251.1	4.69			21,247.7		246.5	4.66			22,060.5		241.3	4.35
Cash and Due from Banks		242.3						240.4						276.0
Other Assets		2,475.5						2,470.8						2,391.4
Total Assets	$	24,046.7					$	23,958.9					$	24,727.9

Interest-Bearing Liabilities
Interest-Bearing Deposits
Savings	$	5,963.1	$	23.6	1.57	%	$	6,000.4	$	23.4	1.57	%	$	5,982.5	$	19.2	1.27	%
Money Market		4,179.5		31.9	3.04			4,076.7		30.6	3.02			3,907.2		24.7	2.51
Time		3,327.3		32.0	3.83			3,284.3		31.6	3.87			3,362.7		30.8	3.63
Total Interest-Bearing Deposits		13,469.9		87.5	2.58			13,361.4		85.6	2.58			13,252.4		74.7	2.23
Other Short-Term Borrowings		451.1		5.4	4.76			500.0		6.0	4.79			113.1		1.5	5.17
Long-Term Borrowings		—		—	—			—		—	—			440.2		5.3	4.83
Other Interest-Bearing Liabilities		22.4		0.4	6.97			38.2		0.5	5.48			89.1		1.2	5.17
Total Interest-Bearing Liabilities		13,943.4		93.3	2.66			13,899.6		92.1	2.66			13,894.8		82.7	2.36
Net Interest Income			$	157.8					$	154.4					$	158.6
Interest Rate Spread⁽³⁾					2.03	%					2.00	%					1.99	%
Net Interest Margin⁽⁴⁾					2.95	%					2.92	%					2.86	%
Noninterest-Bearing Demand Deposits		6,897.9						6,946.6						7,959.7
Other Liabilities		616.6						600.2						506.0
Stockholders’ Equity		2,588.8						2,512.5						2,367.4
Total Liabilities and Stockholders’ Equity	$	24,046.7					$	23,958.9					$	24,727.9

⁽¹⁾Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.

⁽²⁾Interest income includes taxable-equivalent basis adjustments of $1.1 million, $1.5 million and $1.5 million for the three months ended September 30, 2024, June 30, 2024 and September 30, 2023, respectively.

⁽³⁾Interest rate spread is the difference between the average yield on earning assets and the average rate paid on interest-bearing liabilities, on a fully taxable-equivalent basis.

⁽⁴⁾Net interest margin is net interest income annualized for the three months ended September 30, 2024, June 30, 2024 and September 30, 2023, on a fully taxable-equivalent basis, divided by average total earning assets.


Average Balances and Interest Rates											Table 5
	Nine Months Ended						Nine Months Ended
	September 30, 2024						September 30, 2023
	Average		Income/		Yield/		Average		Income/		Yield/
(dollars in millions)	Balance		Expense		Rate		Balance		Expense		Rate
Earning Assets
Interest-Bearing Deposits in Other Banks	$	884.6	$	35.9	5.43	%	$	493.6	$	18.8	5.10	%
Available-for-Sale Investment Securities
Taxable		2,124.4		41.5	2.61			2,964.0		54.8	2.47
Non-Taxable		1.6		0.1	5.49			13.0		0.5	5.57
Held-to-Maturity Investment Securities
Taxable		3,354.0		42.7	1.70			3,615.0		46.0	1.70
Non-Taxable		602.9		11.7	2.58			608.9		11.9	2.62
Total Investment Securities		6,082.9		96.0	2.10			7,200.9		113.2	2.10
Loans Held for Sale		1.3		0.1	6.11			0.3		—	6.11
Loans and Leases⁽¹⁾
Commercial and industrial		2,177.2		113.3	6.95			2,193.8		104.3	6.35
Commercial real estate		4,302.4		213.4	6.62			4,224.7		194.6	6.16
Construction		983.6		56.2	7.63			874.0		45.4	6.95
Residential:
Residential mortgage		4,232.6		122.5	3.86			4,312.4		117.6	3.64
Home equity line		1,164.9		37.8	4.34			1,116.4		27.9	3.35
Consumer		1,057.6		54.4	6.87			1,194.1		53.2	5.95
Lease financing		406.8		11.9	3.90			322.9		10.5	4.34
Total Loans and Leases		14,325.1		609.5	5.68			14,238.3		553.5	5.19
Other Earning Assets		58.8		2.5	5.69			107.6		1.3	1.53
Total Earning Assets⁽²⁾		21,352.7		744.0	4.65			22,040.7		686.8	4.16
Cash and Due from Banks		242.4						273.3
Other Assets		2,469.1						2,385.8
Total Assets	$	24,064.2					$	24,699.8

Interest-Bearing Liabilities
Interest-Bearing Deposits
Savings	$	6,007.6	$	70.5	1.57	%	$	6,144.1	$	49.1	1.07	%
Money Market		4,067.5		91.3	3.00			3,857.0		58.6	2.03
Time		3,312.3		95.5	3.85			2,921.8		68.3	3.12
Total Interest-Bearing Deposits		13,387.4		257.3	2.57			12,922.9		176.0	1.82
Federal Funds Purchased		—		—	—			23.0		0.8	4.45
Other Short-Term Borrowings		483.6		17.3	4.78			176.5		6.8	5.15
Long-Term Borrowings		—		—	—			349.8		12.5	4.78
Other Interest-Bearing Liabilities		31.1		1.3	5.75			62.1		2.1	4.63
Total Interest-Bearing Liabilities		13,902.1		275.9	2.65			13,534.3		198.2	1.96
Net Interest Income			$	468.1					$	488.6
Interest Rate Spread⁽³⁾					2.00	%					2.20	%
Net Interest Margin⁽⁴⁾					2.93	%					2.96	%
Noninterest-Bearing Demand Deposits		7,028.4						8,322.2
Other Liabilities		600.8						506.0
Stockholders’ Equity		2,532.9						2,337.3
Total Liabilities and Stockholders’ Equity	$	24,064.2					$	24,699.8

⁽¹⁾Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.

⁽²⁾Interest income includes taxable-equivalent basis adjustments of $4.1 million and $4.2 million for the nine months ended September 30, 2024 and 2023, respectively.

⁽³⁾Interest rate spread is the difference between the average yield on earning assets and the average rate paid on interest-bearing liabilities, on a fully taxable-equivalent basis.

⁽⁴⁾Net interest margin is net interest income annualized for the nine months ended September 30, 2024 and 2023, on a fully taxable-equivalent basis, divided by average total earning assets.

Analysis of Change in Net Interest Income

Table 6

Three Months Ended September 30, 2024

Compared to June 30, 2024

(dollars in millions)

Volume

Rate

Total ⁽¹⁾

Change in Interest Income:

Interest-Bearing Deposits in Other Banks

$

3.5

$

(0.1

)

$

3.4

Available-for-Sale Investment Securities

Taxable

(0.2

)

(1.1

)

(1.3

)

Held-to-Maturity Investment Securities

Taxable

(0.3

)

(0.3

)

(0.6

)

Non-Taxable

—

(0.3

)

(0.3

)

Total Investment Securities

(0.5

)

(1.7

)

(2.2

)

Loans and Leases

Commercial and industrial

(0.3

)

0.2

(0.1

)

Commercial real estate

—

0.1

Construction

1.3

0.5

1.8

Residential:

Residential mortgage

(0.2

)

0.5

0.3

Home equity line

—

0.6

Consumer

(0.3

)

1.3

1.0

Lease financing

—

(0.3

)

(0.3

)

Total Loans and Leases

0.5

2.9

3.4

Other Earning Assets

(0.1

)

0.1

—

Total Change in Interest Income

3.4

1.2

4.6

Change in Interest Expense:

Interest-Bearing Deposits

Savings

—

0.2

Money Market

1.0

0.3

1.3

Time

0.6

(0.2

)

0.4

Total Interest-Bearing Deposits

1.6

0.3

1.9

Other Short-Term Borrowings

(0.5

)

(0.1

)

(0.6

)

Other Interest-Bearing Liabilities

(0.2

)

0.1

(0.1

)

Total Change in Interest Expense

0.9

0.3

1.2

Change in Net Interest Income

$

2.5

$

0.9

$

3.4

⁽¹⁾The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.

Analysis of Change in Net Interest Income

Table 7

Three Months Ended September 30, 2024

Compared to September 30, 2023

(dollars in millions)

Volume

Rate

Total ⁽¹⁾

Change in Interest Income:

Interest-Bearing Deposits in Other Banks

$

5.6

$

0.1

$

5.7

Available-for-Sale Investment Securities

Taxable

(4.8

)

(0.8

)

(5.6

)

Held-to-Maturity Investment Securities

Taxable

(1.0

)

(0.2

)

(1.2

)

Non-Taxable

—

(0.4

)

(0.4

)

Total Investment Securities

(5.8

)

(1.4

)

(7.2

)

Loans and Leases

Commercial and industrial

0.7

1.6

2.3

Commercial real estate

(1.8

)

2.0

0.2

Construction

3.2

1.6

4.8

Residential:

Residential mortgage

(1.0

)

1.3

0.3

Home equity line

—

3.1

Consumer

(2.3

)

2.7

0.4

Lease financing

0.9

(0.6

)

0.3

Total Loans and Leases

(0.3

)

11.7

11.4

Other Earning Assets

(0.7

)

0.6

(0.1

)

Total Change in Interest Income

(1.2

)

11.0

9.8

Change in Interest Expense:

Interest-Bearing Deposits

Savings

(0.1

)

4.5

4.4

Money Market

1.8

5.4

7.2

Time

(0.3

)

1.5

1.2

Total Interest-Bearing Deposits

1.4

11.4

12.8

Other Short-Term Borrowings

4.0

(0.1

)

3.9

Long-Term Borrowings

(2.6

)

(2.7

)

(5.3

)

Other Interest-Bearing Liabilities

(1.1

)

0.3

(0.8

)

Total Change in Interest Expense

1.7

8.9

10.6

Change in Net Interest Income

$

(2.9

)

$

2.1

$

(0.8

)

⁽¹⁾The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.

Analysis of Change in Net Interest Income

Table 8

Nine Months Ended September 30, 2024

Compared to September 30, 2023

(dollars in millions)

Volume

Rate

Total ⁽¹⁾

Change in Interest Income:

Interest-Bearing Deposits in Other Banks

$

15.8

$

1.3

$

17.1

Available-for-Sale Investment Securities

Taxable

(16.3

)

3.0

(13.3

)

Non-Taxable

(0.4

)

—

(0.4

)

Held-to-Maturity Investment Securities

Taxable

(3.3

)

—

(3.3

)

Non-Taxable

(0.1

)

(0.1

)

(0.2

)

Total Investment Securities

(20.1

)

2.9

(17.2

)

Loans Held for Sale

0.1

—

0.1

Loans and Leases

Commercial and industrial

(0.8

)

9.8

9.0

Commercial real estate

3.7

15.1

18.8

Construction

6.1

4.7

10.8

Residential:

Residential mortgage

(2.2

)

7.1

4.9

Home equity line

1.3

8.6

9.9

Consumer

(6.5

)

7.7

1.2

Lease financing

2.5

(1.1

)

1.4

Total Loans and Leases

4.1

51.9

56.0

Other Earning Assets

(0.8

)

2.0

1.2

Total Change in Interest Income

(0.9

)

58.1

57.2

Change in Interest Expense:

Interest-Bearing Deposits

Savings

(1.1

)

22.5

21.4

Money Market

3.4

29.3

32.7

Time

9.9

17.3

27.2

Total Interest-Bearing Deposits

12.2

69.1

81.3

Federal Funds Purchased

(0.4

)

(0.4

)

(0.8

)

Other Short-Term Borrowings

11.0

(0.5

)

10.5

Long-Term Borrowings

(6.3

)

(6.2

)

(12.5

)

Other Interest-Bearing Liabilities

(1.2

)

0.4

(0.8

)

Total Change in Interest Expense

15.3

62.4

77.7

Change in Net Interest Income

$

(16.2

)

$

(4.3

)

$

(20.5

)

⁽¹⁾The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.


Loans and Leases								Table 9
	September 30,		June 30,		December 31,		September 30,
(dollars in thousands)	2024		2024		2023		2023
Commercial and industrial	$	2,110,077	$	2,208,690	$	2,165,349	$	2,101,442
Commercial real estate		4,265,289		4,305,017		4,340,243		4,387,751
Construction		1,056,249		1,017,649		900,292		885,112
Residential:
Residential mortgage		4,187,060		4,216,416		4,283,315		4,303,924
Home equity line		1,159,823		1,159,833		1,174,588		1,167,388
Total residential		5,346,883		5,376,249		5,457,903		5,471,312
Consumer		1,030,044		1,027,104		1,109,901		1,154,203
Lease financing		432,828		425,190		379,809		332,515
Total loans and leases	$	14,241,370	$	14,359,899	$	14,353,497	$	14,332,335


Deposits								Table 10
	September 30,		June 30,		December 31,		September 30,
(dollars in thousands)	2024		2024		2023		2023
Demand	$	6,800,028	$	6,857,467	$	7,583,562	$	7,898,996
Savings		5,896,029		6,055,051		6,445,084		6,028,308
Money Market		4,129,381		4,111,609		3,847,853		3,923,054
Time		3,402,264		3,294,705		3,456,158		3,661,131
Total Deposits	$	20,227,702	$	20,318,832	$	21,332,657	$	21,511,489


Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More								Table 11
	September 30,		June 30,		December 31,		September 30,
(dollars in thousands)	2024		2024		2023		2023
Non-Performing Assets
Non-Accrual Loans and Leases
Commercial Loans:
Commercial and industrial	$	934	$	1,084	$	970	$	988
Commercial real estate		152		3,085		2,953		—
Construction		—		447		—		—
Total Commercial Loans		1,086		4,616		3,923		988
Residential Loans:
Residential mortgage		9,103		7,273		7,620		7,435
Home equity line		7,645		6,124		7,052		6,200
Total Residential Loans		16,748		13,397		14,672		13,635
Total Non-Accrual Loans and Leases		17,834		18,013		18,595		14,623
Total Non-Performing Assets	$	17,834	$	18,013	$	18,595	$	14,623

Accruing Loans and Leases Past Due 90 Days or More
Commercial Loans:
Commercial and industrial	$	529	$	110	$	494	$	289
Commercial real estate		568		—		300		170
Total Commercial Loans		1,097		110		794		459
Residential mortgage		931		1,820		—		1,430
Consumer		2,515		1,835		2,702		1,681
Total Accruing Loans and Leases Past Due 90 Days or More	$	4,543	$	3,765	$	3,496	$	3,570

Total Loans and Leases	$	14,241,370	$	14,359,899	$	14,353,497	$	14,332,335


Allowance for Credit Losses and Reserve for Unfunded Commitments																		Table 12
	For the Three Months Ended												For the Nine Months Ended
	September 30,				June 30,				September 30,				September 30,				September 30,
(dollars in thousands)	2024				2024				2023				2024				2023
Balance at Beginning of Period	$	193,930			$	194,649			$	184,780			$	192,138			$	177,735
Loans and Leases Charged-Off
Commercial Loans:
Commercial and industrial		(1,178	)			(677	)			(784	)			(2,764	)			(2,572	)
Commercial real estate		(400	)			—				—				(400	)			—
Total Commercial Loans		(1,578	)			(677	)			(784	)			(3,164	)			(2,572	)
Residential Loans:
Residential mortgage		—				—				—				—				(122	)
Home equity line		—				—				—				—				(272	)
Total Residential Loans		—				—				—				—				(394	)
Consumer		(4,192	)			(4,182	)			(3,665	)			(13,228	)			(12,963	)
Total Loans and Leases Charged-Off		(5,770	)			(4,859	)			(4,449	)			(16,392	)			(15,929	)
Recoveries on Loans and Leases Previously Charged-Off
Commercial and industrial		160				250				2,637				621				3,175
Residential Loans:
Residential mortgage		31				28				53				89				110
Home equity line		86				112				303				242				539
Total Residential Loans		117				140				356				331				649
Consumer		1,560				1,950				1,746				5,199				5,640
Total Recoveries on Loans and Leases Previously Charged-Off		1,837				2,340				4,739				6,151				9,464
Net Loans and Leases (Charged-Off) Recovered		(3,933	)			(2,519	)			290				(10,241	)			(6,465	)
Provision for Credit Losses		7,400				1,800				7,500				15,500				21,300
Balance at End of Period	$	197,397			$	193,930			$	192,570			$	197,397			$	192,570
Components:
Allowance for Credit Losses	$	163,700			$	160,517			$	154,795			$	163,700			$	154,795
Reserve for Unfunded Commitments		33,697				33,413				37,775				33,697				37,775
Total Allowance for Credit Losses and Reserve for Unfunded Commitments	$	197,397			$	193,930			$	192,570			$	197,397			$	192,570
Average Loans and Leases Outstanding	$	14,304,806			$	14,358,049			$	14,349,402			$	14,325,065			$	14,238,309
Ratio of Net Loans and Leases Charged-Off (Recovered) to Average Loans and Leases Outstanding⁽¹⁾		0.11		%		0.07		%		(0.01	)	%		0.10		%		0.06		%
Ratio of Allowance for Credit Losses for Loans and Leases to Loans and Leases Outstanding		1.15		%		1.12		%		1.08		%		1.15		%		1.08		%
Ratio of Allowance for Credit Losses for Loans and Leases to Non-accrual Loans and Leases		9.18x				8.91x				10.59x				9.18x				10.59x

⁽¹⁾Annualized for the three and nine months ended September 30, 2024 and 2023 and three months ended June 30, 2024.

Loans and Leases by Year of Origination and Credit Quality Indicator

Table 13

Revolving

Loans

Converted

Term Loans

Revolving

to Term

Amortized Cost Basis by Origination Year

Loans

Amortized

(dollars in thousands)

2024

2023

2022

2021

2020

Prior

Cost Basis

Total

Commercial Lending

Commercial and Industrial

Risk rating:

Pass

$

100,174

$

82,175

$

191,861

$

256,997

$

20,866

$

266,720

$

1,026,457

$

13,396

$

1,958,646

Special Mention

303

1

7,327

48

398

1,371

18,239

—

27,687

Substandard

—

8,251

219

358

2,033

32,296

—

43,157

Other ⁽¹⁾

10,797

10,542

7,779

3,074

1,052

1,723

45,620

—

80,587

Total Commercial and Industrial

111,274

92,718

215,218

260,338

22,674

271,847

1,122,612

13,396

2,110,077

Current period gross charge-offs

—

578

333

89

221

1,543

—

2,764

Commercial Real Estate

Risk rating:

Pass

118,884

347,480

810,746

649,133

325,887

1,774,529

87,188

7,760

4,121,607

Special Mention

3,587

2,261

7,537

41,384

3,306

11,973

7,815

—

77,863

Substandard

—

54,984

1,003

—

9,548

149

—

65,684

Other ⁽¹⁾

—

135

—

135

Total Commercial Real Estate

122,471

349,741

873,267

691,520

329,193

1,796,185

95,152

7,760

4,265,289

Current period gross charge-offs

—

400

—

400

Construction

Risk rating:

Pass

61,677

246,176

361,974

241,212

58,820

46,344

4,484

—

1,020,687

Special Mention

—

164

—

164

Other ⁽¹⁾

4,970

9,468

12,022

3,575

1,199

3,463

701

—

35,398

Total Construction

66,647

255,644

373,996

244,787

60,019

49,971

5,185

—

1,056,249

Current period gross charge-offs

—

Lease Financing

Risk rating:

Pass

126,380

105,523

66,764

15,483

23,133

89,254

—

426,537

Special Mention

—

42

100

300

5

—

447

Substandard

4,899

602

343

—

5,844

Total Lease Financing

131,279

106,167

67,207

15,783

23,138

89,254

—

432,828

Current period gross charge-offs

—

Total Commercial Lending

$

431,671

$

804,270

$

1,529,688

$

1,212,428

$

435,024

$

2,207,257

$

1,222,949

$

21,156

$

7,864,443

Current period gross charge-offs

$

—

$

578

$

333

$

89

$

221

$

1,943

$

—

$

—

$

3,164

Revolving

Loans

Converted

Term Loans

Revolving

to Term

Amortized Cost Basis by Origination Year

Loans

(continued)

Amortized

(dollars in thousands)

2024

2023

2022

2021

2020

Prior

Cost Basis

Total

Residential Lending

Residential Mortgage

FICO:

740 and greater

$

113,307

$

206,224

$

504,141

$

956,983

$

503,160

$

1,129,857

$

—

$

—

$

3,413,672

680 – 739

11,614

28,638

65,128

109,018

66,719

157,263

—

438,380

620 – 679

1,519

1,792

22,921

19,854

11,651

37,979

—

95,716

550 – 619

—

896

3,703

6,707

2,269

15,751

—

29,326

Less than 550

—

286

2,380

3,818

2,959

5,569

—

15,012

No Score ⁽³⁾

543

7,117

16,923

10,512

5,553

52,526

—

93,174

Other ⁽²⁾

8,148

12,786

16,721

14,776

11,222

30,022

8,105

—

101,780

Total Residential Mortgage

135,131

257,739

631,917

1,121,668

603,533

1,428,967

8,105

—

4,187,060

Current period gross charge-offs

—

Home Equity Line

FICO:

740 and greater

—

930,909

1,730

932,639

680 – 739

—

167,097

1,137

168,234

620 – 679

—

36,540

985

37,525

550 – 619

—

14,514

581

15,095

Less than 550

—

4,477

571

5,048

No Score ⁽³⁾

—

1,282

—

1,282

Total Home Equity Line

—

1,154,819

5,004

1,159,823

Current period gross charge-offs

—

Total Residential Lending

$

135,131

$

257,739

$

631,917

$

1,121,668

$

603,533

$

1,428,967

$

1,162,924

$

5,004

$

5,346,883

Current period gross charge-offs

$

—

$

—

$

—

$

—

$

—

$

—

$

—

$

—

$

—

Consumer Lending

FICO:

740 and greater

71,777

71,423

94,710

51,952

18,512

10,435

121,278

128

440,215

680 – 739

51,651

51,667

49,864

23,959

9,995

7,497

77,278

525

272,436

620 – 679

21,223

20,604

21,700

12,515

5,155

5,577

35,665

851

123,290

550 – 619

4,116

7,348

9,802

5,983

2,862

3,862

12,674

825

47,472

Less than 550

1,071

3,266

6,247

3,999

1,783

2,492

4,836

525

24,219

No Score ⁽³⁾

2,291

117

47

—

7

8

42,658

205

45,333

Other ⁽²⁾

—

296

911

101

981

74,790

—

77,079

Total Consumer Lending

$

152,129

$

154,425

$

182,666

$

99,319

$

38,415

$

30,852

$

369,179

$

3,059

$

1,030,044

Current period gross charge-offs

$

385

$

1,403

$

2,107

$

1,085

$

518

$

2,234

$

4,952

$

544

$

13,228

Total Loans and Leases

$

718,931

$

1,216,434

$

2,344,271

$

2,433,415

$

1,076,972

$

3,667,076

$

2,755,052

$

29,219

$

14,241,370

Current period gross charge-offs

$

385

$

1,981

$

2,440

$

1,174

$

739

$

4,177

$

4,952

$

544

$

16,392

⁽¹⁾Other credit quality indicators used for monitoring purposes are primarily FICO scores. The majority of the loans in this population were originated to borrowers with a prime FICO score. As of September 30, 2024, the majority of the loans in this population were current.

⁽²⁾Other credit quality indicators used for monitoring purposes are primarily internal risk ratings. The majority of the loans in this population were graded with a “Pass” rating. As of September 30, 2024, the majority of the loans in this population were current.

⁽³⁾No FICO scores are primarily related to loans and leases extended to non-residents. Loans and leases of this nature are primarily secured by collateral and/or are closely monitored for performance.


GAAP to Non-GAAP Reconciliation	Table 14
	For the Three Months Ended									For the Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
(dollars in thousands)	2024			2024			2023			2024			2023
Income Statement Data:
Net income	$	61,492		$	61,921		$	58,221		$	177,633		$	187,481

Average total stockholders’ equity	$	2,588,806		$	2,512,471		$	2,367,422		$	2,532,911		$	2,337,292
Less: average goodwill		995,492			995,492			995,492			995,492			995,492
Average tangible stockholders’ equity	$	1,593,314		$	1,516,979		$	1,371,930		$	1,537,419		$	1,341,800

Average total assets	$	24,046,696		$	23,958,913		$	24,727,893		$	24,064,208		$	24,699,826
Less: average goodwill		995,492			995,492			995,492			995,492			995,492
Average tangible assets	$	23,051,204		$	22,963,421		$	23,732,401		$	23,068,716		$	23,704,334

Return on average total stockholders’ equity⁽¹⁾		9.45	%		9.91	%		9.76	%		9.37	%		10.72	%
Return on average tangible stockholders’ equity (non-GAAP)⁽¹⁾		15.35	%		16.42	%		16.84	%		15.43	%		18.68	%

Return on average total assets⁽¹⁾		1.02	%		1.04	%		0.93	%		0.99	%		1.01	%
Return on average tangible assets (non-GAAP)⁽¹⁾		1.06	%		1.08	%		0.97	%		1.03	%		1.06	%



	As of			As of			As of			As of
	September 30,			June 30,			December 31,			September 30,
(dollars in thousands, except per share amounts)	2024			2024			2023			2023
Balance Sheet Data:
Total stockholders’ equity	$	2,648,034		$	2,550,312		$	2,486,066		$	2,351,009
Less: goodwill		995,492			995,492			995,492			995,492
Tangible stockholders’ equity	$	1,652,542		$	1,554,820		$	1,490,574		$	1,355,517

Total assets	$	23,780,285		$	23,991,791		$	24,926,474		$	24,912,524
Less: goodwill		995,492			995,492			995,492			995,492
Tangible assets	$	22,784,793		$	22,996,299		$	23,930,982		$	23,917,032

Shares outstanding		127,886,167			127,879,012			127,618,761			127,609,934

Total stockholders’ equity to total assets		11.14	%		10.63	%		9.97	%		9.44	%
Tangible stockholders’ equity to tangible assets (non-GAAP)		7.25	%		6.76	%		6.23	%		5.67	%

Book value per share	$	20.71		$	19.94		$	19.48		$	18.42
Tangible book value per share (non-GAAP)	$	12.92		$	12.16		$	11.68		$	10.62

⁽¹⁾Annualized for the three and nine months ended September 30, 2024 and 2023 and three months ended June 30, 2024.

The MIL Network –

January 25, 2025

MIL-OSI Economics: Inaugural ESG Forum Wraps Up in Abidjan with Stakeholders Uniting around Vision for an Africa ESG Hub

Source: African Development Bank Group

(From left) Olumide Lala, Executive Director, Climate Transition Limited with Natenin Coulibaly, General Manager Corporate Services, MTN; Armande Laetitia Ohouo-Lath, Director of Sustainable Development, SIFCA; Rachael Antwi, Group Sustainability and Environmental Risk, ECOBANK and Azeez Alayande, ESG Manager, ENGIE Nigeria during a session on Challenges and Opportunities in ESG Reporting in Africa at the Africa ESG Forum

Two days of intensive discussions on building a sustainable finance ecosystem for Africa ended in Abidjan on Tuesday with stakeholders from government and the private sector expressing strong support for an Africa-focused Environmental, Social, and Governance (ESG) Data Hub.

The inaugural Africa ESG Forum, held at the Sofitel Hotel in Abidjan, Côte d’Ivoire, was organised by the African Development Bank, the Multilateral Cooperation Centre for Development Finance, and Making Finance Work for Africa. It featured discussions on ESG reporting challenges and investor expectations, and concluded with the inaugural meeting of the ESG working group.

Representatives of various participating institutions shared their ESG implementation experiences. Moubarak Moukaila of the West African Development Bank highlighted the Bank’s progress in sustainable project development. “We created, at the beginning of this year, a unit that supports project development. We have developed, within six months, three projects with GEM and two projects with Green Climate Fund.”

Ahlem Kefi, Impact & Sustainability Officer at AfricInvest, outlined the firm’s comprehensive approach to sustainability assessments. “We start looking at the ESG risks and the ESG data from the first screening phase,” she said. “We don’t call this ESG due diligence, we call it impact and sustainability due diligence.”

Mostafa Hawas of the Egyptian Stock Exchange offered practical insights into implementing ESG reporting requirements. He outlined how they began with “a very, very simple survey” distributed to listed companies, and emphasized the importance of gradual implementation to build awareness, before introducing more detailed requirements.

Kuhle Sojola, ESG Engagement Specialist at Sanlam Investments, addressed the critical issue of greenwashing – the misleading use of advertising and marketing to falsely portray an organization’s products, goals, or policies as being environmentally friendly – in corporate reporting. “We use engagement as a tool to mitigate or reduce the risk of greenwashing,” she said, adding that, when a company’s reported metrics differ significantly from those of their peer group, “that is usually an indication that there could be a level of greenwashing there.”

Participants at the Forum envisioned the proposed African ESG Hub as a unifying vehicle for sustainability issues in Africa, enhancing awareness among local entities and international investors. In preparation for its establishment, they acknowledged that with 80 percent of African companies being SMEs, engaging the sector would be critical in advancing ESG reporting and sustainable finance across the continent. In addition, they outlined plans for the proposed Hub, including ensuring that it provides a credible platform for training and technical assistance, and for sharing best practices and case studies.

MIL OSI Economics –

January 25, 2025

MIL-OSI: Dave to Report Third Quarter 2024 Results on November 12, 2024 at 5:00 p.m. ET

Source: GlobeNewswire (MIL-OSI)

LOS ANGELES, Oct. 25, 2024 (GLOBE NEWSWIRE) — Dave Inc. (“Dave” or the “Company”) (Nasdaq: DAVE), one of the nation’s leading neobanks, will host a conference call on Tuesday, November 12, 2024, at 5:00 p.m. Eastern time to discuss its financial results for the third quarter ended September 30, 2024. The Company’s results will be reported in a press release prior to the call.

Dave management will host the conference call, followed by a question-and-answer period. The conference call details are as follows:

Date: Tuesday, November 12, 2024
Time: 5:00 p.m. Eastern time
Dial-in registration link: here
Live webcast registration link: here

The conference call will also be available for replay in the Events section of the Company’s website, along with the transcript, at https://investors.dave.com.

If you have any difficulty registering for or connecting to the conference call, please contact Elevate IR at DAVE@elevate-ir.com.

About Dave

Dave (Nasdaq: DAVE) is a leading U.S. neobank and fintech pioneer serving millions of everyday Americans. Dave uses disruptive technologies to provide best-in-class banking services at a fraction of the price of incumbents. Dave partners with Evolve Bank & Trust, a FDIC member. For more information about the company, visit: www.dave.com. For investor information and updates, visit: investors.dave.com and follow @davebanking on X.

Investor Relations Contact

Sean Mansouri, CFA
Elevate IR
DAVE@elevate-ir.com

Media Contact

Dan Ury
press@dave.com

The MIL Network –

January 25, 2025

MIL-OSI: Pacific Financial Corp Earns $2.6 Million, or $0.25 per Diluted Share for Third Quarter 2024; Tangible Book Value Per Share Up 6.6% During Quarter; Board of Directors Declares Quarterly Cash Dividend of $0.14 per Share

Source: GlobeNewswire (MIL-OSI)

ABERDEEN, Wash., Oct. 25, 2024 (GLOBE NEWSWIRE) — Pacific Financial Corporation (OTCQX: PFLC), (“Pacific Financial”) or the (“Company”), the holding company for Bank of the Pacific (the “Bank”), reported net income of $2.6 million, or $0.25 per diluted share for the third quarter of 2024, compared to $2.1 million, or $0.21 per diluted share for the second quarter of 2024, and $3.6 million, or $0.35 per diluted share for the third quarter of 2023. All results are unaudited.

Pacific Financials’ third quarter 2024 operating results reflected the following changes from the second quarter of 2024: (1) higher net interest income as the rise in loan and investment yields outpaced the rise in deposit and borrowing costs; (2) a negative provision for credit losses due to lower provision for unfunded loans; (3) lower non-interest income due to smaller gains on the sale of loans and investment securities; (4) slightly lower non-interest expenses; (5) a small decrease in total gross loans of 0.6% offset by an increase in the purchase of investment securities with the balance of investment securities increasing $18.1 million, or 6.5% during the third quarter; (6) an increase in total deposits of 2.6% to $1.0 billion at September 30, 2024, and (7) a $6.2 million increase in shareholder equity, or 5.4%. Tangible book value per share increased 6.6% during the quarter to $10.47.

The board of directors of Pacific Financial declared a quarterly cash dividend of $0.14 per share on October 23, 2024. The dividend will be payable on November 22, 2024 to shareholders of record on November 8, 2024. Additionally, the Board of Directors has authorized an additional $2.6 million toward future repurchases, or approximately 2.0% of total shares outstanding. The current stock repurchase program expires in November 2024.

“Our core operations continue to remain strong,” said Denise Portmann, President and Chief Executive Officer. “Our focused efforts on deposit retention, combined with the efforts of our new commercial loan and deposit teams, resulted in increased business relationships during the third quarter. Additionally, we added to our investment securities portfolio to increase yields. During the fourth quarter, we will be closing our mortgage banking division which we anticipate will improve the efficiency of our operation and improve earnings. However, the fourth quarter will reflect some one-time charges related to severance, contract and lease terminations.”

Third Quarter 2024 Financial Highlights:

Return on average assets (“ROAA”) was 0.90%, compared to 0.76% for the second quarter 2024, and 1.21% for the third quarter 2023.
Return on average equity (“ROAE”) was 8.77%, compared to 7.47% from the preceding quarter, and 13.16% from the third quarter a year earlier.
Net interest income was $11.2 million, compared to $10.8 million for the second quarter of 2024, and $12.3 million for the third quarter of 2023.
Net interest margin (“NIM”) increased to 4.19%, compared to 4.15% from the preceding quarter, and 4.37% for the third quarter a year ago. The increase in the net interest margin in the most recent quarter was due to increased yields on interest-earning assets outpacing the increased cost of interest-bearing liabilities.
Provision for credit losses was a benefit of $66,000 for the third quarter ended September 30, 2024 compared to a provision of $304,000 for the preceding quarter and $244,000 in the third quarter a year ago. The benefit largely reflected lower provisions for unfunded loans relative to prior periods.
Gross loans balances held in portfolio decreased by $4.4 million, or less than 1% to $699.6 million at September 30, 2024, compared to $704.0 million at June 30, 2024, and increased by $27.6 million, or 4%, from $672.0 million at September 30, 2023.
Total deposits increased $25.8 million to $1.01 billion, compared to $985.6 million at June 30, 2024, and decreased from $1.05 billion at September 30, 2023. Core deposits represented 87% of total deposits, with non-interest bearing deposits representing 38% of total deposits at September 30, 2024.
Coverage of short-term funds available to uninsured and uncollateralized deposits was 229% at September 30, 2024 and June 30, 2024. Uninsured or uncollateralized deposits were 25% of total deposits at September 30, 2024, and 24% at June 30, 2024.
Asset quality remains solid with nonperforming assets to total assets at 0.10%, compared to 0.12% three months earlier, and 0.10% at September 30, 2023. Accruing loans past due 30 or more days represent only 0.03% of total loans at September 30, 2024.
Tangible book value per share increased 6.6% during the quarter to $10.47 per share at September 30, 2024 from $9.82 per share at June 30, 2024. The increase was largely the result of a decline in interest rates and its impact on the fair market value of securities.
Pacific Financial and Bank of the Pacific continued to exceed regulatory well-capitalized requirements. At September 30, 2024 Pacific Financial’s estimated leverage ratio was 11.6% and its estimated total risk-based capital ratio was 17.9%.

Balance Sheet Review

Total assets increased 3% to $1.16 billion at September 30, 2024, compared to $1.12 billion at June 30, and decreased 2% from $1.18 billion at September 30, 2023.

Liquidity metrics continued to remain strong with total liquidity, both on and off balance sheet sources, at $576.8 million as of September 30, 2024. The Bank has established collateralized credit lines with borrowing capacity from the Federal Home Loan Bank of Des Moines (FHLB) and from the Federal Reserve Bank of San Francisco, as well as $60.0 million in unsecured borrowing lines from various correspondent banks. There was no balance outstanding on any of these facilities at quarter-end.

The following table summarizes the Bank’s available liquidity:

LIQUIDITY (unaudited)	Period Ended						Change from									% of Deposits
($ in 000s)	Period Ended						Change from									% of Deposits

		Sep 30,		Jun 30,		Sep 30,		Jun 30, 2024				Sep 30, 2023				Sep 30,		Jun 30,		Sep 30,
		2024		2024		2023		$	%			$		%		2024		2024		2023
Short-term Funding
Cash and cash equivalents	$	85,430	$	63,183	$	147,970	$	22,247	35	%	$	(62,540	)	-42	%	8	%	6	%	14	%
Unencumbered AFS Securities		154,565		139,581		123,842		14,984	11	%		30,723		25	%	15	%	14	%	12	%
Secured lines of Credit (FHLB, FRB)		336,771		332,674		318,557		4,097	1	%		18,214		6	%	33	%	34	%	30	%
Short-term Funding	$	576,766	$	535,438	$	590,369	$	41,328	8	%	$	(13,603	)	-2	%	56	%	54	%	56	%

Investment securities: The investment securities portfolio increased 6% to $296.8 million, compared to $278.7 million at June 30, 2024 and increased 3% compared to the like period a year ago. The increase from the prior quarter was primarily due to the purchase of collateralized mortgage obligations and mortgage backed securities. U.S. Treasury bonds, and securities issued by the U.S. Government sponsored agencies accounted for 85% of the investment portfolio as of September 30, 2024, June 30, 2024, and September 30, 2023. Within that total, collateralized mortgage obligations accounted for 48% of the investment portfolio at September 30, 2024, compared to 45% the previous quarter.

The average adjusted duration to reset of the investment securities portfolio was 4.2 years at September 30, 2024. Net unrealized losses on the investments classified as available for sale declined $7.2 million to $14.8 million ($11.5 million after-tax) at September 30, 2024, or 5% of AFS portfolio.

Gross loans balances excluding loans held for sale decreased $4.4 million, or 1%, to $699.6 million at September 30, 2024, compared to $704.0 million at June 30, 2024. During the third quarter, loan pipelines and originations slowed from prior levels as borrowers continued to adjust to higher interest rates and economic uncertainty. Due primarily to loan amortization the loan portfolio reflected slight declines in most categories except multi-family lending which increased $2.8 million. Year-over-year loan growth was 4%, or $27.6 million, with the largest increases in residential 1-4 family and multi-family loans which increased $14.8 million and $11.7 million, respectively. Loans classified as commercial real estate for regulatory concentration purposes totaled $261.3 million at September 30, 2024, or 185% of total risk based capital.

The Company continues to manage concentration limits that establish maximum exposure levels by certain industry segments, loan product types, geography and single borrower limits. In addition, the loan portfolio continues to be well-diversified and is collateralized with assets predominantly within the Company’s Western Washington and Oregon markets.

Credit quality: Non-performing assets were minimal and remained at $1.1 million, or 0.10% of total assets at September 30, 2024, compared to $1.2 million, or 0.10% at September 30, 2023. The Company has zero other real estate owned as of September 30, 2024 and accruing loans past due more than 30 days represent only 0.04% of total loans.

Allowance for credit losses (“ACL”) for loans was $8.9 million, or 1.27% of gross loans at September 30, 2024, compared to $8.9 million or 1.26% of loans at June 30, 2024 and $8.3 million or 1.24% at September 30, 2023.

A negative provision for credit losses of $66,000 was recorded in the current quarter, reflecting less allowance requirements for unfunded loans. This compares to a provision for credit losses of $304,000 in the second quarter of 2024 and $244,000 for the third quarter of 2023. Net charge-offs for the current quarter remained minimal and reflected a net recovery of $11,000, compared to a net charge-off of $56,000 for the preceding quarter and $125,000 for the third quarter one year ago.

Total deposits increased to $1.01 billion at September 30, 2024, compared to $985.6 million at June 30, 2024 and decreased from $1.05 billion at September 30, 2023. The bank has focused efforts to retain customer relationships resulting in a $22.1 million increase in business deposits.

Non-interest-bearing account balances, composed of commercial banking relationships, are the largest component of the deposit portfolio at 38% at September 30, 2024 and June 30, 2024. Money market deposits currently represent the second largest component of the deposit base and increased $11.5 million from the linked quarter and $12.8 million from the same quarter a year ago and represent 19%, 18%, and 17%, of total deposits, at September 30, 2024, June 30, 2024, and September 30, 2023, respectively. Interest-bearing demand deposits are the third largest component of the deposit base representing 18% of total deposits at September 30, 2024. Pacific Financial continues to benefit from a strong core deposit base, with core deposits representing 87% of total deposits at quarter end.

Shareholder’s equity increased $6.2 million, or 5% to $121.1 million at September 30, 2024, compared to $114.9 million at June 30, 2024, and increased $14.5 million, or 14% compared to $106.6 million at September 30, 2023. The increase in shareholders’ equity during the current quarter was due to quarterly net income, a decrease in unrealized losses on available-for-sale securities and dividends paid to shareholders. Net unrealized losses (after-tax) on available-for-sale securities were $11.5 million at September 30, 2024 compared to $17.1 million at June 30, 2024, and $23.1 million at September 30, 2023. This decrease in net unrealized losses reflects lower longer-term market interest rates at the end of the quarter.

Book value per common share was $11.78 at September 30, 2024, compared to $11.12 at June 20, 2024, and $10.22 at September 30, 2023. The Company’s tangible common equity ratio was 9.4% at September 30, 2024 and 9.1% at June 30, 2024, compared to 8.0% at September 30, 2023. Regulatory capital ratios of both the Company and the Bank continue to exceed the well-capitalized regulatory thresholds, with the Company’s leverage ratio at 11.6% and total risk-based capital ratio at 17.9% as of September 30, 2024. These regulatory capital ratios are estimates, pending completion and filing of regulatory reports.

The current stock repurchase program expires in November 2024. The Board of Directors has authorized an additional $2.6 million toward future repurchases, or approximately 2.0% of total shares outstanding.

Income Statement Review

Net interest income increased $438,000 to $11.2 million for the third quarter of 2024, compared to $10.8 million for the second quarter of 2024, and decreased $1.1 million compared to $12.3 million for the third quarter a year ago. The change in the current quarter compared to the preceding quarter reflects higher yields on a larger investment portfolio and an increase in loan yields due primarily to repricing of loans. Increasing deposit costs offset some of the benefit from higher yielding investments and loans. For the current quarter compared to the like period a year ago, funding costs have outpaced the rising yields on investments and loans.

The Bank’s net interest margin continued to remain strong at 4.19% for the quarter ended September 30, 2024 compared to 4.15% the preceding quarter. For the third quarter ended September 30, 2023, the net interest margin was 4.37% reflecting lower funding costs relative to more recent periods.

Yields on total interest earning assets increased 14 basis points to 5.29% for the third quarter of 2024 compared to 5.15% for the prior quarter and 5.06% in the like quarter a year ago. Average loan yields increased to 5.99% during the current quarter, compared to 5.80% for the preceding quarter and 5.71% for the third quarter 2023.

The Bank’s total cost of funds increased to 1.15% for the current quarter, compared to 1.05% for the preceding quarter, and 0.72% for the third quarter 2023. The increase in the costs of deposits was due to retention efforts and competitive pricing of deposit products. The percentage of non-interest bearing deposits remained high at 38% for the current quarter.

Noninterest income decreased to $1.7 million for the current quarter, compared to $2.0 million for the linked quarter and increased from $1.6 million a year earlier. The decrease compared to the linked quarter was primarily due to decreased mortgage banking loan production and no gains on the sale of investment securities.

The company plans to close its mortgage banking division by the end of 2024 which is expected to reduce non-interest income offset by a reduction of personnel and overhead expenses associated with the operation. The elimination of the mortgage banking division is expected to improve the efficiency of the company after severance and contract termination expenses are realized in the fourth quarter of 2024.

Fee and service charge income remained consistent in the third quarter of 2024 at $1.2 million compared to the previous quarter and the third quarter of 2023.

Noninterest expenses decreased to $9.7 million for the third quarter of 2024 compared to $9.8 million for the prior quarter and increased from $9.1 million for the third quarter of 2023. Within the total of noninterest expenses for the current quarter compared to the prior quarter, the largest category of salaries and employee benefits remained at $6.3 million. Similarly, data processing and occupancy expenses remained consistent to the prior quarter.

The company’s efficiency ratio decreased to 75.48% for the third quarter of 2024, compared to 77.34% in the preceding quarter and increased from 65.78% in the same quarter a year ago. The increase in the efficiency ratio relative to the previous year primarily relates to the decreased net interest margin and higher overhead expenses related to the hiring, building and marketing of new commercial loan and deposit teams.

Income tax expense: Federal and Oregon state income tax expenses totaled $633,000 for the current quarter, and $454,000 for the preceding quarter, resulting in effective tax rates of 19.6% and 17.6%, respectively. These income tax expenses reflect the benefits of tax exempt income and credits on tax-exempt loans and investments, affordable housing tax credit financing, and investments in bank owned life insurance.

FINANCIAL HIGHLIGHTS (unaudited)	Quarter Ended									Change From											Nine Months Ended					Change
FINANCIAL HIGHLIGHTS (unaudited)	Quarter Ended									Change From											Nine Months Ended					Change
(In 000s, except per share data)
		Sep 30,			Jun 30,			Sep 30,			Jun 30, 2024					Sep 30, 2023					Sep 30,			Sep 30,
		2024			2024			2023			$		%			$		%			2024			2023			$		%
Earnings Ratios & Data
Net Income	$	2,594		$	2,126		$	3,645		$	468		22	%	$	(1,051	)	-29	%	$	7,370		$	11,663		$	(4,293	)	-37	%
Return on average assets		0.90	%		0.76	%		1.21	%		0.14	%				-0.31	%				0.87	%		1.28	%		-0.41	%
Return on average equity		8.77	%		7.47	%		13.16	%		1.30	%				-4.39	%				8.52	%		14.34	%		-5.82	%
Efficiency ratio ⁽¹⁾		75.48	%		77.34	%		65.78	%		-1.86	%				9.70	%				75.67	%		64.64	%		11.03	%
Net-interest margin %⁽²⁾		4.19	%		4.15	%		4.37	%		0.04	%				-0.18	%				4.24	%		4.40	%		-0.16	%

Share Ratios & Data
Basic earnings per share	$	0.25		$	0.21		$	0.35		$	0.04		19	%	$	(0.10	)	-29	%	$	0.71		$	1.12		$	(0.41	)
Diluted earning per share	$	0.25		$	0.21		$	0.35		$	0.04		19	%	$	(0.10	)	-29	%	$	0.71		$	1.12		$	(0.41	)
Book value per share⁽³⁾	$	11.78		$	11.12		$	10.22		$	0.66		6	%	$	1.56		15	%
Tangible book value per share⁽⁴⁾	$	10.47		$	9.82		$	8.93		$	0.65		7	%	$	1.54		17	%
Common shares outstanding		10,283			10,336			10,427			(53	)	-1	%		(144	)	-1	%
PFLC stock price	$	11.65		$	9.76		$	10.00		$	1.89		19	%	$	1.65		17	%
Dividends paid per share	$	0.14		$	0.14		$	0.13		$	–		0	%	$	0.01		8	%	$	0.42		$	0.39		$	0.03		8	%

Balance Sheet Data
Assets	$	1,158,410		$	1,124,295		$	1,181,975		$	34,115		3	%	$	(23,565	)	-2	%
Portfolio Loans	$	699,603		$	703,977		$	671,969		$	(4,374	)	-1	%	$	27,634		4	%
Deposits	$	1,011,473		$	985,627		$	1,051,256		$	25,846		3	%	$	(39,783	)	-4	%
Investments	$	296,792		$	278,728		$	289,152		$	18,064		6	%	$	7,640		3	%
Shareholders equity	$	121,087		$	114,923		$	106,601		$	6,164		5	%	$	14,486		14	%

Liquidity Ratios
Short-term funding to uninsured
and uncollateralized deposits		229	%		229	%		254	%		0	%				-25	%
Uninsured and uncollateralized
deposits to total deposits		25	%		24	%		22	%		1	%				3	%
Portfolio loans to deposits ratio		69	%		71	%		63	%		-2	%				6	%

Asset Quality Ratios
Non-performing assets to assets		0.10	%		0.12	%		0.10	%		-0.02	%				0.00	%
Non-accrual loans to portfolio loans		0.16	%		0.19	%		0.18	%		-0.03	%				-0.02	%
Loan losses to avg portfolio loans		-0.01	%		0.03	%		0.07	%		-0.04	%				-0.08	%				0.01	%		0.04	%		-0.03	%
ACL to portfolio loans		1.27	%		1.26	%		1.24	%		0.01	%				0.03	%

Capital Ratios (PFC)
Total risk-based capital ratio		17.9	%		17.6	%		17.6	%		0.3	%				0.3	%
Tier 1 risk-based capital ratio		16.7	%		16.4	%		16.5	%		0.3	%				0.2	%
Common equity tier 1 ratio		15.0	%		14.8	%		14.8	%		0.2	%				0.2	%
Leverage ratio		11.6	%		11.7	%		10.7	%		-0.1	%				0.9	%
Tangible common equity ratio		9.4	%		9.1	%		8.0	%		0.3	%				1.4	%

⁽¹⁾ Non-interest expense divided by net interest income plus noninterest income.
⁽²⁾ Tax-exempt income has been adjusted to a tax equivalent basis at a rate of 21%.
⁽³⁾ Book value per share is calculated as the total common shareholders’ equity divided by the period ending number of common stock shares outstanding.
⁽⁴⁾ Tangible book value per share is calculated as the total common shareholders’ equity less total intangible assets and liabilities, divided by the period ending number of common stock shares outstanding.

INCOME STATEMENT (unaudited)	Quarter Ended									Change From											Nine Months Ended					Change
INCOME STATEMENT (unaudited)	Quarter Ended									Change From											Nine Months Ended					Change
($ in 000s)
		Sep 30,			Jun 30,			Sep 30,			Jun 30, 2024					Sep 30, 2023					Sep 30,			Sep 30,
		2024			2024			2023			$		%			$		%			2024			2023			$		%
Interest Income
Loan interest & fee income	$	10,520		$	10,109		$	9,549		$	411		4	%	$	971		10	%	$	30,853		$	27,166		$	3,687		14	%
Interest bearing cash income		1,108			847			2,322			261		31	%		(1,214	)	-52	%		2,890			7,669			(4,779	)	-62	%
Investment income		2,503			2,410			2,371			93		4	%		132		6	%		7,388			6,832			556		8	%
Interest Income		14,131			13,366			14,242			765		6	%		(111	)	-1	%		41,131			41,667			(536	)	-1	%

Interest Expense
Deposits interest expense		2,684			2,358			1,716			326		14	%		968		56	%		7,033			3,437			3,596		105	%
Other borrowings interest expense		243			242			246			1		0	%		(3	)	-1	%		727			682			45		7	%
Interest Expense		2,927			2,600			1,962			327		13	%		965		49	%		7,760			4,119			3,641		88	%
Net Interest Income		11,204			10,766			12,280			438		4	%		(1,076	)	-9	%		33,371			37,548			(4,177	)	-11	%
Provision (benefit) for credit losses		(66	)		304			244			(370	)	-122	%		(310	)	-127	%		271			409			(138	)	-34	%
Net Interest Income after provision		11,270			10,462			12,036			808		8	%		(766	)	-6	%		33,100			37,139			(4,039	)	-11	%

Non-Interest Income
Fees and service charges		1,225			1,198			1,248			27		2	%		(23	)	-2	%		3,523			3,695			(172	)	-5	%
Gain on sale of investments, net		–			121			–			(121	)	-100	%		–		-100	%		121			(154	)		275		-179	%
Gain on sale of loans, net		267			445			170			(178	)	-40	%		97		57	%		865			540			325		60	%
Income on bank-owned insurance		188			182			174			6		3	%		14		8	%		550			509			41		8	%
Other non-interest income		7			17			18			(10	)	-59	%		(11	)	-61	%		34			53			(19	)	-36	%
Non-Interest Income		1,687			1,963			1,610			(276	)	-14	%		77		5	%		5,093			4,643			450		10	%

Non-Interest Expense
Salaries and employee benefits		6,341			6,321			5,560			20		0	%		781		14	%		18,656			17,006			1,650		10	%
Occupancy		601			564			501			37		7	%		100		20	%		1,806			1,536			270		18	%
Furniture, Fixtures & Equipment		286			267			252			19		7	%		34		13	%		837			808			29		4	%
Marketing & donations		201			176			160			25		14	%		41		26	%		531			380			151		40	%
Professional services		233			327			301			(94	)	-29	%		(68	)	-23	%		897			941			(44	)	-5	%
Data Processing & IT		1,185			1,165			1,161			20		2	%		24		2	%		3,541			3,490			51		1	%
Other		883			1,025			1,207			(142	)	-14	%		(324	)	-27	%		2,839			3,174			(335	)	-11	%
Non-Interest Expense		9,730			9,845			9,142			(115	)	-1	%		588		6	%		29,107			27,335			1,772		6	%
Income before income taxes		3,227			2,580			4,504			647		25	%		(1,277	)	-28	%		9,086			14,447			(5,361	)	-37	%
Provision for income taxes		633			454			859			179		39	%		(226	)	-26	%		1,716			2,784			(1,068	)	-38	%
Net Income	$	2,594		$	2,126		$	3,645		$	468		22	%		(1,051	)	-29	%	$	7,370		$	11,663		$	(4,293	)	-37	%

Effective tax rate		19.6	%		17.6	%		19.1	%		2.0	%				0.5	%				18.9	%		19.3	%		-0.4	%

BALANCE SHEET (unaudited)	Period Ended									Change from										% of Total
($ in 000s)	Period Ended									Change from										% of Total

		Sep 30,			Jun 30,			Sep 30,			Jun 30, 2024					Sep 30, 2023				Sep 30,		Jun 30,		Sep 30,
		2024			2024			2023			$		%			$		%		2024		2024		2023
Assets
Cash on hand and in banks	$	20,621		$	17,362		$	12,052		$	3,259		19	%	$	8,569		71	%	2	%	2	%	2	%
Interest bearing deposits		80,522			58,586			146,886			21,936		37	%		(66,364	)	-45	%	7	%	5	%	12	%
Investment securities		296,792			278,728			289,152			18,064		6	%		7,640		3	%	26	%	25	%	24	%
Loans held-for-sale		140			4,051			637			(3,911	)	-97	%		(497	)	-78	%	0	%	0	%	0	%
Portfolio Loans, net of deferred fees		698,974			703,322			671,134			(4,348	)	-1	%		27,840		4	%	60	%	63	%	57	%
Allowance for credit losses		(8,897	)		(8,859	)		(8,347	)		(38	)	0	%		(550	)	7	%	-1	%	-1	%	-1	%
Net loans		690,077			694,463			662,787			(4,386	)	-1	%		27,290		4	%	60	%	62	%	56	%
Premises & equipment		17,124			15,571			13,756			1,553		10	%		3,368		24	%	2	%	2	%	2	%
Goodwill & Other Intangibles		13,435			13,435			13,435			–		0	%		–		0	%	1	%	1	%	1	%
Bank-owned life Insurance		28,084			27,860			27,321			224		1	%		763		3	%	2	%	2	%	2	%
Other assets		11,615			14,239			15,949			(2,624	)	-18	%		(4,334	)	-27	%	1	%	1	%	1	%
Total Assets	$	1,158,410		$	1,124,295		$	1,181,975		$	34,115		3	%	$	(23,565	)	-2	%	100	%	100	%	100	%

Liabilities & Shareholders’ Equity
Deposits	$	1,011,473		$	985,627		$	1,051,256		$	25,846		3	%	$	(39,783	)	-4	%	87	%	88	%	89	%
Borrowings		13,403		$	13,403		$	13,403			–		0	%		–		0	%	1	%	1	%	1	%
Other liabilities		12,447		$	10,342		$	10,715			2,105		20	%		1,732		16	%	1	%	1	%	1	%
Shareholders’ equity		121,087		$	114,923		$	106,601			6,164		5	%		14,486		14	%	11	%	10	%	9	%
Liabilities & Shareholders’ Equity	$	1,158,410		$	1,124,295		$	1,181,975		$	34,115		3	%	$	(23,565	)	-2	%	100	%	100	%	100	%

INVESTMENT COMPOSITION & CONCENTRATIONS (unaudited)	Period Ended									Change from										% of Total
INVESTMENT COMPOSITION & CONCENTRATIONS (unaudited)	Period Ended									Change from										% of Total
($ in 000s)
		Sep 30,			Jun 30,			Sep 30,			Jun 30, 2024					Sep 30, 2023				Sep 30,		Jun 30,		Sep 30,
		2024			2024			2023			$		%			$		%		2024		2024		2023
Investment Securities
Collateralized mortgage obligations	$	141,842		$	125,937		$	126,376		$	15,905		13	%	$	15,466		12	%	48	%	45	%	45	%
Mortgage backed securities		41,264			37,159			38,322			4,105		11	%		2,942		8	%	14	%	13	%	13	%
U.S. Government and agency securities		68,961			72,504			82,292			(3,543	)	-5	%		(13,331	)	-16	%	23	%	27	%	27	%
Municipal securities		44,725			43,128			42,162			1,597		4	%		2,563		6	%	15	%	15	%	15	%
Investment Securities	$	296,792		$	278,728		$	289,152		$	18,064		6	%	$	7,640		3	%	100	%	100	%	100	%

Held to maturity securities	$	42,301		$	43,244		$	56,469		$	(943	)	-2	%	$	(14,168	)	-25	%	14	%	16	%	20	%
Available for sale securities	$	254,491		$	235,484		$	232,683		$	19,007		8	%	$	21,808		9	%	86	%	84	%	80	%

Government & Agency securities	$	252,039		$	235,570		$	246,956		$	16,469		7	%	$	5,083		2	%	85	%	85	%	85	%
AAA, AA, A rated securities	$	44,084		$	42,471		$	41,025		$	1,613		4	%	$	3,059		7	%	15	%	15	%	14	%
Non-rated securities	$	669		$	687		$	1,171		$	(18	)	-3	%	$	(502	)	-43	%	0	%	0	%	0	%

AFS Unrealized Gain (Loss)	$	(14,804	)	$	(21,978	)	$	(29,783	)	$	7,174		-33	%	$	14,979		-50	%	-5	%	-8	%	-10	%

PORTFOLIO LOAN COMPOSITION & CONCENTRATIONS (unaudited)	Period Ended									Change from										% of Total
PORTFOLIO LOAN COMPOSITION & CONCENTRATIONS (unaudited)	Period Ended									Change from										% of Total
($ in 000s)
		Sep 30,			Jun 30,			Sep 30,			Jun 30, 2024					Sep 30, 2023				Sep 30,		Jun 30,		Sep 30,
		2024			2024			2023			$		%			$		%		2024		2024		2023
Portfolio Loans
Commercial & agriculture	$	73,002		$	74,952		$	73,232		$	(1,950	)	-3	%	$	(230	)	0	%	10	%	11	%	11	%
Real estate:
Construction and development		46,569			47,856			42,584			(1,287	)	-3	%		3,985		9	%	7	%	7	%	6	%
Residential 1-4 family		105,298			105,807			90,449			(509	)	0	%		14,849		16	%	15	%	14	%	14	%
Multi-family		60,773			58,003			49,092			2,770		5	%		11,681		24	%	9	%	8	%	7	%
CRE — owner occupied		167,086			169,491			164,057			(2,405	)	-1	%		3,029		2	%	24	%	24	%	25	%
CRE — non owner occupied		157,347			157,591			154,993			(244	)	0	%		2,354		2	%	22	%	22	%	23	%
Farmland		26,553			27,195			27,641			(642	)	-2	%		(1,088	)	-4	%	4	%	4	%	4	%
Consumer		62,975			63,082			69,921			(107	)	0	%		(6,946	)	-10	%	9	%	10	%	10	%
Portfolio Loans		699,603			703,977			671,969			(4,374	)	-1	%		27,634		4	%	100	%	100	%	100	%
Less: ACL		(8,897	)		(8,859	)		(8,347	)
Less: deferred fees		(629	)		(655	)		(835	)
Net loans	$	690,077		$	694,463		$	662,787

Regulatory Commercial Real Estate	$	261,292		$	260,068		$	244,277		$	1,224		0	%	$	17,015		7	%	37	%	37	%	36	%
Total Risk Based Capital⁽¹⁾	$	140,971		$	140,176		$	137,473		$	795		1	%	$	3,498		3	%
CRE to Risk Based Capital⁽¹⁾		185	%		186	%		178	%				-1	%				7	%

CRE–MULTI-FAMILY & NON OWNER OCCUPIED COMPOSITION (unaudited)	Period Ended						Change from										% of Total
	Period Ended						Change from										% of Total
($ in 000s)
		Sep 30,		Jun 30,		Sep 30,		Jun 30, 2024					Sep 30, 2023				Sep 30,		Jun 30,		Sep 30,
		2024		2024		2023		$		%			$		%		2024		2024		2023
Collateral Composition⁽²⁾
Multifamily	$	63,099	$	63,243	$	54,677	$	(144	)	0	%	$	8,422		15	%	27	%	27	%	26	%
Retail		37,685		36,074		28,657		1,611		4	%		9,028		32	%	16	%	16	%	13	%
Hospitality		30,844		30,248		32,190		596		2	%		(1,346	)	-4	%	13	%	13	%	15	%
Mini Storage		25,758		23,619		20,977		2,139		9	%		4,781		23	%	11	%	11	%	10	%
Office		22,921		23,266		27,075		(345	)	-1	%		(4,154	)	-15	%	10	%	10	%	13	%
Mixed Use		22,708		23,520		22,457		(812	)	-3	%		251		1	%	10	%	10	%	11	%
Industrial		13,912		13,691		10,898		221		2	%		3,014		28	%	6	%	6	%	5	%
Warehouse		7,582		7,631		6,204		(49	)	-1	%		1,378		22	%	3	%	3	%	3	%
Special Purpose		6,968		7,014		7,146		(46	)	-1	%		(178	)	-2	%	3	%	3	%	3	%
Other		3,174		3,213		3,380		(39	)	-1	%		(206	)	-6	%	1	%	1	%	1	%
Total	$	234,651	$	231,519	$	213,661	$	3,132		1	%	$	20,990		10	%	100	%	100	%	100	%

⁽¹⁾ Bank of the Pacific
⁽²⁾ Includes loans in process of construction

CREDIT QUALITY (unaudited)	Period Ended									Change from
CREDIT QUALITY (unaudited)	Period Ended									Change from
($ in 000s)		Sep 30,			Jun 30,			Sep 30,			Jun 30, 2024					Jun 30, 2024
		2024			2024			2023			$		%			$		%
Risk Rating Distribution
Pass	$	691,199		$	694,272		$	664,327		$	(3,073	)	0	%		26,872		4	%
Special Mention		4,789			4,731			1,626			58		1	%		3,163		195	%
Substandard		3,615			4,974			6,016			(1,359	)	-27	%		(2,401	)	-40	%
Portfolio Loans	$	699,603		$	703,977		$	671,969		$	(4,374	)	-1	%	$	27,634		4	%

Nonperforming Assets
Nonaccruing loans		1,138			1,370			1,219		$	(232	)	-17	%		(81	)	-7	%
Other real estate owned		–			–			–			–		0	%		–		0	%
Nonperforming Assets	$	1,138		$	1,370		$	1,219		$	(232	)	-17	%		(81	)	-7	%

Credit Metrics
Classified loans¹ to portfolio loans		0.52	%		0.71	%		0.90	%		-0.19	%				-0.38	%
ACL to classified loans¹		246.11	%		178.11	%		132.68	%		68.00	%				113.43	%
Loans past due 30+ days to portfolio loans²		0.03	%		0.04	%		0.25	%		-0.01	%				-0.22	%
Nonperforming assets to total assets		0.10	%		0.12	%		0.10	%		-0.02	%				0.00	%
Nonaccruing loans to portfolio loans		0.16	%		0.19	%		0.18	%		-0.03	%				-0.02	%

⁽¹⁾ Classified loans include loans rated substandard or worse and are defined as loans having a well-defined weakness or weaknesses related to the borrower’s financial capacity or to pledged collateral that may jeopardize the repayment of the debt. They are characterized by the possibility that the Bank may sustain some loss if the deficiencies giving rise to the substandard classification are not corrected.
⁽²⁾ Excludes non-accrual loans

DEPOSIT COMPOSITION & CONCENTRATIONS (unaudited)	Period Ended						Change from										% of Total
DEPOSIT COMPOSITION & CONCENTRATIONS (unaudited)	Period Ended						Change from										% of Total
($ in 000s)
		Sep 30,		Jun 30,		Sep 30,		Jun 30, 2024					Sep 30, 2023				Sep 30,		Jun 30,		Sep 30,
		2024		2024		2023		$		%			$		%		2024		2024		2023
Deposits
Interest-bearing demand	$	183,337	$	179,278	$	208,091	$	4,059		2	%	$	(24,754	)	-12	%	18	%	19	%	20	%
Money market		192,185		180,727		179,367		11,458		6	%		12,818		7	%	19	%	18	%	17	%
Savings		117,131		121,851		138,981		(4,720	)	-4	%		(21,850	)	-16	%	12	%	12	%	13	%
Time deposits (CDs)		133,995		125,560		92,720		8,435		7	%		41,275		45	%	13	%	13	%	9	%
Total interest-bearing deposits		626,648		607,416		619,159		19,232		3	%		7,489		1	%	62	%	62	%	59	%
Non-interest bearing demand		384,825		378,211		432,097		6,614		2	%		(47,272	)	-11	%	38	%	38	%	41	%
Total deposits	$	1,011,473	$	985,627	$	1,051,256	$	25,846		3	%	$	(39,783	)	-4	%	100	%	100	%	100	%

Insured Deposits	$	636,725	$	632,923	$	666,308	$	3,802		1	%	$	(414,008	)	-62	%	63	%	64	%	63	%
Collateralized Deposits		122,448		118,966		152,960		3,482		3	%		(30,512	)	-20	%	12	%	12	%	15	%
Uninsured Deposits		252,300		233,738		231,988		18,562		8	%		404,737		174	%	25	%	24	%	22	%
Total Deposits	$	1,011,473	$	985,627	$	1,051,256	$	25,846		3	%	$	(39,783	)	-4	%	100	%	100	%	100	%

Consumer Deposits	$	458,097	$	458,249	$	466,877	$	(152	)	0	%	$	(8,780	)	-2	%	45	%	47	%	44	%
Business Deposits		420,845		398,719		429,443		22,126		6	%		(8,598	)	-2	%	42	%	40	%	41	%
Public Deposits		132,531		128,659		154,936		3,872		3	%		(22,405	)	-14	%	13	%	13	%	15	%
Total Deposits	$	1,011,473	$	985,627	$	1,051,256	$	25,846		3	%	$	(39,783	)	-4	%	100	%	100	%	100	%

NET INTEREST MARGIN (unaudited)	Quarter Ended									Change From											Nine Months Ended					Change
NET INTEREST MARGIN (unaudited)	Quarter Ended									Change From											Nine Months Ended					Change
($ in 000s)
		Sep 30,			Jun 30,			Sep 30,			Jun 30, 2024					Sep 30, 2023					Sep 30,			Sep 30,
		2024			2024			2023			$		%			$		%			2024			2023			$		%

Average Interest Bearing Balances
Portfolio loans	$	697,904		$	699,404		$	665,300		$	(1,500	)	0	%	$	32,604		5	%	$	695,418		$	653,619		$	41,799		6	%
Loans held for sale	$	1,276		$	1,593		$	497		$	(317	)	-20	%	$	779		157	%	$	1,155		$	601		$	554		92	%
Investment securities	$	285,947		$	283,637		$	284,041		$	2,310		1	%	$	1,906		1	%	$	287,315		$	285,538		$	1,777		1	%
Interest-bearing cash	$	81,755		$	62,494		$	172,119		$	19,261		31	%	$	(90,364	)	-53	%	$	71,080		$	206,259		$	(135,179	)	-66	%
Total interest-earning assets	$	1,066,882		$	1,047,128		$	1,121,957		$	19,754		2	%	$	(55,075	)	-5	%	$	1,054,968		$	1,146,017		$	(91,049	)	-8	%
Non-interest bearing deposits	$	383,332		$	387,740		$	441,782		$	(4,408	)	-1	%	$	(58,450	)	-13	%	$	388,672		$	457,750		$	(69,078	)	-15	%
Interest-bearing deposits	$	615,388		$	596,121		$	619,183		$	19,267		3	%	$	(3,795	)	-1	%	$	600,694		$	628,978		$	(28,284	)	-4	%
Total Deposits	$	998,720		$	983,861		$	1,060,965		$	14,859		2	%	$	(62,245	)	-6	%	$	989,366		$	1,086,728		$	(97,362	)	-9	%
Borrowings	$	13,403		$	13,404		$	13,403		$	(1	)	0	%	$	–		0	%	$	13,403		$	13,401		$	2		0	%
Total interest-bearing liabilities	$	628,791		$	609,525		$	632,586		$	19,266		3	%	$	(3,795	)	-1	%	$	614,097		$	642,379		$	(28,282	)	-4	%

Yield / Cost $⁽¹⁾
Portfolio loans	$	10,509		$	10,092		$	9,570		$	417		4	%	$	939		10	%	$	30,834		$	27,208		$	3,626		13	%
Loans held for sale	$	22		$	28		$	8		$	(6	)	-21	%	$	14		175	%	$	55		$	28		$	27		96	%
Investment securities	$	2,535		$	2,442		$	2,405		$	93		4	%	$	130		5	%	$	7,485		$	6,954		$	531		8	%
Interest-bearing cash	$	1,108		$	847		$	2,322		$	261		31	%	$	(1,214	)	-52	%	$	2,890		$	7,669		$	(4,779	)	-62	%
Total interest-earning assets	$	14,174		$	13,410		$	14,306		$	764		6	%	$	(132	)	-1	%	$	41,265		$	41,859		$	(594	)	-1	%
Interest-bearing deposits	$	2,684		$	2,358		$	1,716		$	326		14	%	$	968		56	%	$	7,033		$	3,437		$	3,596		105	%
Borrowings	$	243		$	242		$	246		$	1		0	%	$	(3	)	-1	%	$	727		$	682		$	45		7	%
Total interest-bearing liabilities	$	2,927		$	2,600		$	1,962		$	327		13	%	$	965		49	%	$	7,760		$	4,119		$	3,641		88	%
Net interest income	$	11,247		$	10,810		$	12,344		$	437		4	%		(1,097	)	-9	%	$	33,505		$	37,740		$	(4,235	)	-11	%

Yield / Cost %⁽¹⁾
Yield on portfolio loans		5.99	%		5.80	%		5.71	%		0.19	%				0.28	%				5.92	%		5.57	%		0.35	%
Yield on investment securities		3.53	%		3.46	%		3.36	%		0.07	%				0.17	%				3.48	%		3.26	%		0.22	%
Yield on interest-bearing cash		5.39	%		5.46	%		5.35	%		-0.07	%				0.04	%				5.43	%		4.97	%		0.46	%
Cost of interest-bearing deposits		1.74	%		1.59	%		1.10	%		0.15	%				0.64	%				1.56	%		0.73	%		0.83	%
Cost of borrowings		7.21	%		7.26	%		7.28	%		-0.05	%				-0.07	%				7.25	%		6.80	%		0.45	%
Cost of deposits and borrowings		1.15	%		1.05	%		0.72	%		0.10	%				0.43	%				1.03	%		0.50	%		0.53	%

Yield on interest-earning assets		5.29	%		5.15	%		5.06	%		0.14	%				0.23	%				5.22	%		4.88	%		0.34	%
Cost of interest-bearing liabilities		1.85	%		1.72	%		1.23	%		0.13	%				0.62	%				1.69	%		0.86	%		0.83	%
Net interest spread		3.44	%		3.43	%		3.83	%		0.01	%				-0.39	%				3.53	%		4.02	%		-0.49	%
Net interest margin		4.19	%		4.15	%		4.37	%		0.04	%				-0.18	%				4.24	%		4.40	%		-0.16	%

⁽¹⁾ Tax-exempt income has been adjusted to a tax equivalent basis at a rate of 21%.

ALLOWANCE FOR CREDIT LOSSES (ACL) (unaudited)	Quarter Ended									Change From											Nine Months Ended					Change
ALLOWANCE FOR CREDIT LOSSES (ACL) (unaudited)	Quarter Ended									Change From											Nine Months Ended					Change
($ in 000s)
		Sep 30,			Jun 30,			Sep 30,			Jun 30, 2024					Sep 30, 2023					Sep 30,			Sep 30,
		2024			2024			2023			$		%			$		%			2024			2023			$		%
Allowance for Credit Losses
Beginning of period balance	$	8,859		$	8,580		$	8,223		$	279		3	%	$	636		8	%	$	8,530		$	8,236		$	294		4	%
Impact of CECL Adoption (ASC 326)		–			–			–			–		-100	%		–		-100	%		–			(157	)		157		-100	%
Charge-offs		(5	)		(57	)		(126	)		52		-91	%		121		-96	%		(97	)		(259	)		162		-63	%
Recoveries		16			1			1			15		1500	%		15		1500	%		19			55			(36	)	-65	%
Net (charge-off) recovery		11			(56	)		(125	)		67		-120	%		136		-109	%		(78	)		(204	)		126		-62	%
Provision (benefit)		27			335			249			(308	)	-92	%		(222	)	-89	%		445			472			(27	)	-6	%
End of period balance	$	8,897		$	8,859		$	8,347		$	38		0	%	$	550		7	%	$	8,897		$	8,347		$	550		7	%

Net charge-off (recovery) to
average portfolio loans		-0.01	%		0.03	%		0.07	%		-0.04	%				-0.08	%				0.01	%		0.04	%		-0.03	%
ACL to portfolio loans		1.27	%		1.26	%		1.24	%		0.01	%				0.03	%				1.27	%		1.24	%		0.03	%

Allowance for unfunded loans
Beginning of period balance	$	617		$	648		$	754		$	(31	)	-5	%	$	(137	)	-18	%	$	698		$	203		$	495		244	%
Impact of CECL Adoption (ASC 326)		–			–			–			–		-100	%		–		-100	%		–			609			(609	)	-100	%
Provision (benefit)		(93	)		(31	)		(5	)		(62	)	200	%		(88	)	1760	%		(174	)		(63	)		(111	)	176	%
End of period balance	$	524		$	617		$	749		$	(93	)	-15	%	$	(225	)	-30	%	$	524		$	749		$	(225	)	-30	%

ABOUT PACIFIC FINANCIAL CORPORATION

Pacific Financial Corporation of Aberdeen, Washington, is the bank holding company for Bank of the Pacific, a state chartered and federally insured commercial bank. Bank of the Pacific offers banking products and services to small-to-medium sized businesses and professionals in western Washington and Oregon. At September 30, 2024, the Company had total assets of $1.16 billion and operated fifteen branches in the communities of Grays Harbor, Pacific, Thurston, Whatcom, Skagit, Clark and Wahkiakum counties in the State of Washington, and three branches in the communities of Clatsop and Clackamas counties in Oregon. The Company also operated loan production offices in the communities of Burlington, Washington and Salem, Oregon. Visit the Company’s website at www.bankofthepacific.com. Member FDIC.

Cautions Concerning Forward-Looking Statements
This press release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other laws, including all statements in this release that are not historical facts or that relate to future plans or events or projected results of Pacific Financial Corporation and its wholly-owned subsidiary, Bank of the Pacific. Such statements are based on information available at the time of communication and are based on current beliefs and expectations of the Company’s management and are subject to risks and uncertainties, many of which are beyond our control, which could cause actual events or results to differ materially from those projected, anticipated or implied, and could negatively impact the Company’s operating and stock price performance. These risks and uncertainties include various risks associated with growing the Bank and expanding the services it provides, development of new business lines and markets, competition in the marketplace, general economic conditions, changes in interest rates, extensive and evolving regulation of the banking industry, and many other risks. Any forward-looking statements in this communication are based on information at the time the statement is made. We undertake no obligation to update or revise any forward-looking statement. Readers of this release are cautioned not to put undue reliance on forward-looking statements.

CONTACTS:
DENISE PORTMANN, PRESIDENT & CEO
CARLA TUCKER, EVP & CFO
360.533.8873

The MIL Network –

January 25, 2025

MIL-OSI United Kingdom: Budget will invest in foundations of future growth

Source: United Kingdom – Executive Government & Departments

Chancellor Rachel Reeves is in Washington D.C. for her first IMF Annual Meetings, where she will say that the Budget is about investing in future growth.

Chancellor Rachel Reeves at the IMF Annual Meetings in Washington D.C.

Reeves will set out how public investment will drive innovation in science and technology, the transition to clean energy, and upgraded infrastructure.
Chancellor to represent British interests in G7, G20 and IMF discussions on the global economy, international financial system and ongoing support for Ukraine.

Rachel Reeves will tell her global counterparts that the Government’s first Budget will “invest in the foundations of future growth,” as she attends her first annual meetings of the International Monetary Fund (IMF) in Washington D.C as Chancellor.

The Chancellor will pledge that the Budget next week will be “built on the rock of economic stability” to fix the foundations and deliver change. She will set out how public investment will help fuel mission-led government, from boosting investment in science and technology, transitioning to clean energy and upgrading infrastructure.

The Chancellor will attend G7, G20 and IMF meetings to represent Britain’s interests on issues including the global economy, the international financial system and ongoing support for Ukraine. This follows the UK’s announcement of its £2.26bn contribution to the G7’s Extraordinary Revenue Acceleration (ERA) Loans for Ukraine scheme, backed by the profits from sanctioned Russian sovereign assets. She will also hold a series of bilateral meetings with her international counterparts.

Chancellor of the Exchequer Rachel Reeves said:

A Britain built on the rock of economic stability is a Britain that is a strong and credible international partner. I’ll be in Washington to tell the world that our upcoming Budget will be a reset for our economy as we invest in the foundations of future growth.

It’s from this solid base that we will be able to best represent British interests and show leadership on the major issues like the conflicts in the Middle East and Ukraine.

At the Annual Meetings, Chancellor Reeves will support proposals to expand financing for development, needed for countries to meet the United Nations’ Sustainable Development Goals and tackle unsustainable debt. She will also press for all G20 countries to meet G20 best practice on debt transparency and move swiftly to implement support for countries facing pressing liquidity problems. The Chancellor will welcome the agreement of a new G20 roadmap to scale up financing to developing countries through Multilateral Development Banks.

It is the 80th anniversary year of the founding of the IMF and the World Bank, established at a conference in Bretton Woods, New Hampshire in 1944 to promote international cooperation on economic and monetary policies. At this years’ gathering the Chancellor will also call for change to the global financial system to deliver a fairer deal for vulnerable countries.

The IMF released its latest survey of the global economy on Tuesday, in which the UK’s growth forecast was upgraded to 1.1% in 2024. Whilst this is welcome, the Chancellor will make clear to her counterparts that there will be more long-term decisions required to reinforce stability and deliver on the promise of change at her first Budget on 30 October.

The Chancellor’s trip to Washington D.C. follows the International Investment Summit earlier this month, at which it was announced that nearly 38,000 jobs are set to be created across the UK thanks to a total of £63 billion in investment commitments from businesses around the world. The vote of confidence in the UK is a clear sign Britain is open for business and ready to drive sustainable growth across the country.

Published 25 October 2024

MIL OSI United Kingdom –

January 25, 2025

MIL-OSI Global: Florida’s new condo laws recognize the total price of living on the beach

Source: The Conversation – USA – By Bill Hughes, Research Director, Kelley A. Bergstrom Real Estate Center, University of Florida

Repairing high-rise condos like this one in Miami Beach can cost millions. Jeffrey Greenberg/Universal Images Group via Getty Images

Nearly a million Florida condo owners face an important deadline at the end of the year. That’s when a law passed in 2022 requires most Florida condo associations to submit inspection reports for their buildings and to collect money from owners to pay for any needed repairs.

Condo owners are reporting that new condominium rules are driving up fees and inducing outrageous assessments.

The media has picked up on the outrage. News articles about condo owners “facing financial turmoil as a result of new building safety regulations” and how “bills are crippling homeowners” lead readers to believe that Florida lawmakers have imposed an egregious tax on the elderly and those on fixed incomes.

This is misleading at best.

As the research director at the University of Florida’s Bergstrom Real Estate Center, I suggest it is important to set emotions aside and see what these laws attempt to accomplish.

Safety inspections

The 2022 state condo law, known as SB-4D, and its 2023 follow-up, SB-154, establish three primary requirements: licensed inspections, reporting and disclosures, and reserve funds.

Importantly, these laws are not tax legislation that directly increases housing costs on condo owners.

But by requiring more inspections, transparency and funding to cover repairs, many owners will face costs much greater than the amounts paid in the past. These new expenses simply reflect more of the true cost of living in a condo near the ocean.

Under the laws, all buildings occupied before 1992 must complete a milestone inspection by Dec. 31, 2024. This is an examination of the building’s structural integrity by an architect or engineer.

The requirement also applies to buildings at least 25 years old that are within 3 miles of the coast.

If the milestone inspection finds a potential structural problem, testing is required to determine if structural repairs are needed. If they are, owners must fund these repairs without an option to waive by vote.

If no damage is identified, then the association must report and post the results, and that concludes the requirement.

Prior to SB-4D, milestone inspections were not required outside of Miami-Dade and Broward counties. Now, they are required statewide and must be reported to local authorities, all unit owners and the public for buyer information.

Adequate savings for repairs

The new regulations also require building associations to budget and collect sufficient reserves to cover the cost of maintaining and replacing parts of their buildings subject to regular wear and tear, such as roofs, elevators and balconies.

History suggests that most homeowners associations struggle to adequately save for repairs and maintenance to keep their properties safe and in top condition.

“Florida has … more associations that are considered weak [in terms of funded reserves] than any other state,” Will Simons, the head of Florida and Southeast Operations at Association Reserves, which conducts reserve studies for condo and community associations, told a colleague as part of a research article.

The Champlain Towers South condominium that collapsed in the Miami suburb of Surfside in June 2021, killing 98 people, is just one example. Simons’ company completed a reserve study of the condo just months prior to the collapse and found its association was significantly underfunded.

The association held approximately US$706,000 in reserves as of January 2021. Association Reserves recommended the association stockpile nearly $10.3 million to account for necessary repairs. That means the Surfside condo’s homeowners association had just 6.9% of the money it needed on hand.

True costs of living by the ocean

More than 16,000 condominium associations representing over 900,000 of Florida’s 1.5 million condominium units are currently affected by the new laws because these units are already more than 30 years old.

Properties that have been sufficiently maintained and hold adequate reserves for future structural repairs will face nothing but an increased disclosure of inspection reports and continued reserve funding.

Many residents, especially retired seniors, are struggling to adapt to the funding requirement. In response, Gov. Ron DeSantis is indicating some form of relief for owners facing financial hardship over these regulations.

Frustration is understandable, as current residents are asked to simultaneously fund 30 years of past deterioration and also set aside savings for the next 30 years. However, policymakers are simply setting guidelines that condo owners should have established for themselves. Properties that face significant financial shocks from SB-4D are, by definition, undermaintained or underfunded.

It is important to separate the intent of these laws from possible overreaction or fraud from condo associations, which is an existing concern. House Bill 1021, signed into law in June 2024, focuses on association governance to manage oversight of this type.

Oceanside concrete structures, roofs, windows and elevators have limited lifespans. These items need to be repaired or replaced to protect residents’ safety. The new regulations are making the true condo costs transparent to unit owners and buyers.

Bill Hughes is affiliated with National Council of Real Estate Investment Fiduciaries (NCREIF), Pension Real Estate Association (PREA), Counselors of Real Estate (CRE), and CFA Institute.

– ref. Florida’s new condo laws recognize the total price of living on the beach – https://theconversation.com/floridas-new-condo-laws-recognize-the-total-price-of-living-on-the-beach-239163

MIL OSI – Global Reports –

January 25, 2025

MIL-OSI Security: Plant City Woman Pleads Guilty To Embezzling Funds From A University And Charitable Organization

Source: Office of United States Attorneys

Tampa, Florida – United States Attorney Roger B. Handberg announces that Christina Lynn Morris (46, Plant City) has pleaded guilty to wire fraud. She faces a maximum penalty of 20 years in federal prison. Morris has also agreed to forfeit $293,202, which is traceable to proceeds of the offense.

According to court documents, Morris worked as a Fiscal and Business Analyst for a public research university (University) with multiple campuses in the Middle District of Florida. She also served as President for a charitable organization (Association) based in the Middle District of Florida. From July 2021 through July 2023, Morris used her positions with the University and the Association to embezzle more than $290,000. Specifically, Morris used her University credit card as well as credit cards issued to other University employees, and the Association’s business bank accounts to conduct unapproved, non-business transactions at various companies, including for the repeated bulk purchase of gift cards.

Further, Morris used the Association’s tax-exempt status to avoid paying sales tax for items purchased with the gift cards and embezzled funds. To make the unapproved, non-business transactions appear legitimate and to prevent her fraud scheme from being discovered, Morris created and submitted falsified documents and made false attestations to the University, and withheld material information from the Association. During the scheme, Morris conducted hundreds of transactions in the manner described above, causing losses of $261,632.17 to the University and $31,569.87 to the Association.

This investigation was led by the Federal Bureau of Investigation, with valuable assistance from the Pasco Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Carlton C. Gammons.

MIL Security OSI –

January 25, 2025

MIL-OSI Security: California Resident Sentenced To 30 Years In Federal Prison For Producing Sexual Abuse Photo Of 3-Year-Old Child In Florida

Source: Office of United States Attorneys

Jacksonville, Florida – Chief United States District Judge Timothy J. Corrigan has sentenced Henry Obdulio Cordon (39, Antioch, California) to 30 years in federal prison for producing a photo of a 3-year-old child being sexually abused by Cordon. He was also ordered to serve a life term of supervised release and to register as a sex offender. Cordon was arrested at his residence on May 16, 2019, and has been in custody since that time. He pleaded guilty to the offense on June 14, 2024.

According to court documents, this investigation began in April 2019 when an internet service provider sent a series of CyberTipline reports to the National Center for Missing and Exploited Children (NCMEC). These reports related to the discovery of child sexual abuse photos detected within an email account that geolocated to Contra Costa County in California. Law enforcement officers obtained search warrants and discovered that this email account and telephone number were associated with Cordon. The email account contained several photos depicting children being sexually abused.

Further investigation reveal that another email account used by Cordon contained a photo that depicted a young child being sexually abused by an adult male. The metadata associated with this photo indicated that it had been produced on July 11, 2011, using a Blackberry device. Search warrants revealed that this email account was used during April and May 2019, at Cordon’s apartment in California.

On May 16, 2019, law enforcement officers executed a search warrant at Cordon’s residence. During an interview, Cordon admitted that he had searched the internet for “nude teen pictures.” When asked if he ever had a Blackberry device, Cordon said he had one years before when he lived in Florida. He was asked about a particular photo depicting the sexual abuse of a child that was recovered from his email account. Cordon eventually admitted that he knew the child in the photo and that the child was “maybe” under four years of age. Cordon claimed that his sexual abuse of this child only happened one time, and that he remembered emailing this photo to himself to save it. Cordon admitted taking this photo with his Blackberry in the child’s residence in Florida.

Further investigation confirmed that Cordon took the photo depicting his sexual abuse of the child in Florida and later emailed the photo to his own email account. This same photo was also recovered from his iPhone device that he possessed in California on May 16, 2019. Law enforcement authorities in Florida were able to confirm the identity and age of this child, as well as the residence in Florida where Cordon had taken the photo depicting him sexually abusing this child.

This case was investigated by the Internet Crimes Against Children (ICAC) Task Force of Contra Costa County (California), the Contra Costa Sheriff’s Department, the Contra Costa District Attorney’s Office, the Clay County Sheriff’s Office, and Homeland Security Investigations. It was prosecuted by Assistant United States Attorney D. Rodney Brown.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.

MIL Security OSI –

January 25, 2025

MIL-OSI Security: Windsor Mill Woman Sentenced To Over Five Years’ Imprisonment In Connection With Conspiracy Involving Fraudulently Obtaining And Attempting To Obtain More Than $3 Million In Covid-19 Cares Act Loans

Source: Office of United States Attorneys

Glenn Used COVID-19 CARES Act Funds to Pay for a Vacation to Jamaica, a Mercedes-Benz, Luxury Jewelry, including a 31 Carat Diamond Necklace and items from Luis Vuitton, Neiman Marcus, Dior, Cartier, Gucci, Chanel and Hermes.

Baltimore, Maryland – On October 23, 2024, Tomeka Glenn, a/k/a “Tomeka Harris” and “Tomeka Davis,” age 47, of Windsor Mill, Maryland, was sentenced by United States District Judge Richard D. Bennett to 65 months’ imprisonment and 3 years of supervised release in connection with her conviction on conspiracy to commit wire fraud relating to the submission of millions of dollars in fraudulent COVID-19 CARES Act Paycheck Protection Program and Economic Injury Disaster Loan applications. Judge Bennett also directed Glenn to pay restitution in the amount of $3,016,275.62.

Glenn’s co-defendant Kevin Davis, age 43, also of Windsor Mill, Maryland, pleaded guilty on January 25, 2024 to being a felon in possession of a firearm and ammunition. Judge Bennett on May 22, 2024 sentenced him to 24 months’ imprisonment.

The sentence was announced by Erek L. Barron, U.S. Attorney for the District of Maryland; Special Agent in Charge William J. Delbagno of the Federal Bureau of Investigation (“FBI”) Baltimore Field Office; and Chief Robert McCullough of the Baltimore County Police Department.

Financial assistance offered through the CARES Act included forgivable loans to small businesses for job retention and certain other expenses through the Paycheck Protection Program, administered through the Small Business Administration (“SBA”). The SBA also offered an Economic Injury Disaster Loan (EIDL) and/or an EIDL advance to help businesses meet their financial obligations. An EIDL advance did not have to be repaid, and small businesses could receive an advance, even if they were not approved for an EIDL loan. The maximum advance amount was $10,000.

According to Glenn’s plea agreement, beginning in June 2020 and continuing through March 2021, Glenn and various co-conspirators prepared numerous false and fraudulent EIDL and PPP loan applications for various businesses (including some that did not exist in any legitimate capacity) that included false information concerning, among other things, number of employees, monthly payroll costs, and revenue. The PPP applications also routinely included false and fraudulent Internal Revenue Service (“IRS”) tax forms and bank statements, which were submitted by Glenn to substantiate the false representations made in the applications.

Glenn admitted that she received kickback payments from the loan borrowers in exchange for her assistance in connection with the submission of fraudulent PPP and EIDL applications, ultimately receiving more than $400,000 in kickbacks in connection with the scheme. These kickbacks typically amounted to 10% to 20% of the loan amount. In total, the kickback scheme resulted in the disbursement of at least $2,715,649.12 in fraudulently obtained PPP and EIDL funds in connection with 23 fraudulent PPP and EIDL loans.

According to Glenn’s plea agreement, Glenn and Davis, received $300,726.50 in PPP/EIDL funds for various entities that they controlled, and Glenn attempted to obtain $601,511.20 in additional fraudulent PPP and EIDL funds too.

Glenn used the fraudulently obtained funds to pay for a luxury vacation at a resort in Jamaica, to purchase a 2021 Mercedes-Benz S580 sedan valued at $148,171.60, to buy thousands of dollars in luxury jewelry, as well as numerous other luxury goods, including items from Luis Vuitton, Neiman Marcus, Dior, Cartier, Gucci, Chanel, and Hermes.

At the time of her scheme, neither Glenn nor Davis had any legitimate source of income, and in May 2020, each applied for unemployment insurance benefits in the State of Maryland. In addition, as detailed in Davis and Glenn’s plea agreements, on January 6, 2023, law enforcement executed a federal search warrant at their residence. Davis and Glenn were present at the residence at the time of the search and were arrested in connection with the fraudulent COVID-19 CARES Act loans. According to Davis’s plea agreement, during the execution of the search warrant, law enforcement found and seized four firearms loaded with ammunition—a 9mm firearm, and three .40 caliber firearms. Later investigation revealed that one of the .40 caliber firearms had earlier been reported stolen by its owner. As further detailed in Davis’s plea, the firearms were hidden by Davis in the air ducts of the residence: two firearms were hidden in the main bedroom air duct where Davis slept and kept his personal effects; the other two firearms were in the air duct of the bathroom closets to the main bedroom. Moreover, two of the firearms were further stuffed in socks in an attempt to hide them. Davis admitted that he possessed and secreted the firearms in the air ducts of his home (and in the socks) in an attempt to conceal them from law enforcement after learning that federal agents had a warrant to search his home. As admitted to at his plea, Davis’s concealment of the firearms constitutes attempted obstruction of the administration of justice with respect to the investigation. Each of the four firearms recovered from Davis’s home on January 6, 2023 were later found to have his DNA on them. A later review of Davis’s iCloud account revealed the existence of, among other things, a series of videos depicting Davis handling firearms, including a shotgun and an assault rifle. Davis knew that his previous felony conviction prohibited him from possessing firearms or ammunition.

As part of their plea agreements, Glenn and Davis will be required to forfeit their interest in any assets derived from or obtained by them as a result of, or used to facilitate the commission of, their illegal activities. Specifically, Glenn is required to forfeit a money judgment in the amount of at least $700,726.50; the 2021 Mercedes-Benz; cash in bank accounts she controlled that were held in the names of business entities; and jewelry, including her 3.03 carat yellow diamond engagement ring, Rolex, Cartier and Breitling watches, and a Diamond Miami Cuban Link Chain with 31.5 carats of VS1 diamonds. Davis must forfeit the firearms and ammunition.

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

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

U.S. Attorney Barron commended the FBI, the SBA-OIG, and the Baltimore County Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Paul A. Riley, who is prosecuting the case. He also recognized the assistance of the Maryland COVID-19 Strike Force Paralegal Specialist Joanna B.N. Huber and Paralegal Specialist Juliette Jarman.

For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao/md.

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MIL Security OSI –

January 25, 2025

MIL-OSI Security: Statement from Special Agent in Charge Jodi Cohen on the One-Year Anniversary of the Mass Shooting in Lewiston, Maine

Source: Federal Bureau of Investigation (FBI) State Crime Alerts (b)

On the heels of tragedy, the people of Lewiston’s strength and resilience are a powerful reminder of the bonds that unite us.

Today, the men and women of FBI Boston pause to honor and remember the 18 innocent lives that were lost, the survivors, and all their families whose lives have been changed forever.

On this day, and every day, we carry the memory of those victims with us as we go to work to make our communities safer for all we serve.

MIL Security OSI –

January 25, 2025

MIL-OSI Canada: Federal investments to boost tourism in rural New Brunswick

Source: Government of Canada News

News release

October 25, 2024 · Salisbury, New Brunswick · Atlantic Canada Opportunities Agency (ACOA)

Tourism plays a vital role in Atlantic Canada, driving local economies, creating jobs and strengthening communities. Tourism also helps preserve, promote and celebrate the region’s diverse cultural heritage – building awareness and understanding of the many people who call this place home. The Government of Canada is investing to help four organizations and two municipalities in rural New Brunswick seize opportunities to boost tourism and ensure the industry is well positioned for long-term, sustainable growth.

Today, the Honourable Gudie Hutchings, Minister of Rural Economic Development and Minister responsible for ACOA, was in Salisbury to announce a total investment of $782,907 for six projects to support the advancement of tourism in the region.

The funding will support the Town of Salisbury, Fundy – St. Martins, the Maritime Motorsport Hall of Fame, Firefly Forest Ltd., Poley Mountain Resorts Ltd., and Stoke Resort with projects to help expand and upgrade tourism infrastructure.

For more information on the projects, please see the backgrounder.

Today’s announcement further demonstrates the Government of Canada’s commitment to strengthen Atlantic Canada’s tourism sector and grow the region’s potential as a world-class destination of choice.

Quotes

“With its stunning natural attractions and authentic tourism experiences, rural New Brunswick offers unique opportunities for you to explore all year long. Today’s investment will help tourism operators in the region around Salisbury reach their full potential and bring in even more visitors to this great part of the province.”

– The Honourable Gudie Hutchings, Minister of Rural Economic Development and Minister responsible for ACOA

“From naturalists and birders visiting our community to residents getting outdoors, this trail investment will be a 365-day amenity for residents and visitors alike. The Town of Salisbury is thrilled to be completing this trail extension and appreciates the essential support of funders such as ACOA to make the project come to fruition.”

– Robert Campbell, Mayor, Town of Salisbury

Quick facts

Over 7,500 businesses are part of the tourism sector in Atlantic Canada, working in food and beverage, accommodations, recreation, transportation, and travel services. Together, these companies employ over 111,000 full and part-time workers.
Tourism is a major employer for Atlantic Canadians living outside major cities, representing 9.5% of all local jobs in rural communities.
The funding announced today is provided through ACOA’s Innovative Communities Fund, the Tourism Growth Program and the Regional Economic Growth through Innovation program.

Related products

Associated links

Contacts

Connor Burton
Press Secretary
Office of the Minister of Rural Economic Development and of the
Atlantic Canada Opportunities Agency
Connor.Burton@acoa-apeca.gc.ca

Ann Kenney
Senior Communications Officer
Atlantic Canada Opportunities Agency
ann.kenney@acoa-apeca.gc.ca

Austin Henderson
Chief Administrative Officer
Town of Salisbury
Austinhenderson@salisburynb.ca

Jim Bedford
Mayor of Fundy – St. Martins
JamesBedford@FundyStMartins.ca

James Hare
General Manager
Poley Mountain Resorts Ltd.
Jamie@poleymountain.com

Marcel Leblanc
Vice President
Stoke Resorts (Ten Thirty-Four Holdings & Investments Ltd.)
Marcel.leblanc.cfp@gmail.com

Angela Nicholson
President
Maritime Motorsports Hall of Fame
maritimemotorsports@gmail.com

Bruce Fowler
Secretary
Firefly Forest Ltd.
fireflyforestrecreation@hotmail.com

Stay connected

Follow ACOA on Facebook, X, LinkedIn and Instagram.

MIL OSI Canada News –

January 25, 2025

MIL-OSI USA: SEC Small Business Advisory Committee to Discuss Approaches to Venture Capital Fundraising and Challenges Facing Emerging Fund Managers

Source: Securities and Exchange Commission

The Securities and Exchange Commission’s Small Business Capital Formation Advisory Committee today released the agenda for its meeting on Wednesday, Nov. 13, 2024. The meeting will include a discussion of how venture capital fund managers are raising capital, including the limits of arm’s length fundraising and challenges facing emerging fund managers. Members of the public can watch the live meeting via webcast on www.sec.gov.

The committee, which provides advice and recommendations to the Commission on rules, regulations, and policy matters relating to small businesses, will continue its exploration of ways to expand early-stage capital raising by focusing on how certain fund managers, including emerging fund managers and diverse fund managers, are accessing capital. Committee members will hear from Professor Sabrina Howell, from the New York University Stern School of Business, who will present her upcoming academic paper that examines venture capital fund manager use of relationship-based versus arm’s length public advertising approaches to fund-raising. Professor Howell will discuss the advantages and challenges of public advertising for traditionally underrepresented managers.

Staff members from the SEC’s Division of Investment Management will provide a brief overview of the registration framework applicable to private fund advisers and their funds, including those exemptions from the registration requirements of the Investment Advisers Act of 1940 and the Investment Company Act of 1940, which may be relied upon by emerging fund managers.

The committee will discuss the challenges that emerging fund managers report facing when seeking to raise investment funds and will hear from Karen Kerr, PhD, Board Member and Charter Class, Kauffman Fellows and Managing Director, Exposition Ventures, about how new fund managers can be supported and promoted through fellowship programs. As part of this discussion, the committee will explore ways to address some of the challenges facing emerging fund managers and consider whether regulatory or other solutions could be undertaken to further support these fund managers and the early-stage companies in which these managers invest.

The full agenda, meeting materials, and information on how to watch the meeting are available on the committee webpage.

MIL OSI USA News –

January 25, 2025

MIL-OSI Security: Georgia Woman Sentenced to 12 Years in Prison for $30M COVID-19 Unemployment Fraud Scheme and Firearms Charge

Source: Office of United States Attorneys

A Georgia woman was sentenced yesterday for her role in a scheme to defraud the Georgia Department of Labor (GaDOL) out of tens of millions of dollars in benefits meant to assist unemployed individuals during the COVID-19 pandemic.

Tyshion Nautese Hicks, 32, of Vienna, was sentenced to 12 years in prison, three years of supervised release, and ordered to pay restitution in an amount to be determined at a later date. Hicks’ total sentence includes a penalty of three consecutive years in prison, imposed yesterday in relation to a separate charge of illegal possession of a machine gun prosecuted by the U.S. Attorney’s Office for the Middle District of Georgia.

According to court documents and evidence presented in court, from March 2020 through November 2022, Hicks and her co-conspirators caused more than 5,000 fraudulent unemployment insurance (UI) claims to be filed with the GaDOL, resulting in at least $30 million in stolen benefits.

“In one of the largest COVID fraud schemes ever prosecuted, the defendant and her coconspirators filed more than 5,000 fraudulent COVID unemployment insurance claims using stolen identities and unlawfully obtained more than $30 million in benefits,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “In doing so, the defendant and her co-conspirators exploited a program designed to alleviate pandemic-related economic hardship to enrich themselves at the expense of federal taxpayers. Yesterday’s sentence underscores the department’s commitment to investigating and prosecuting those who steal from the public fisc.”

To execute the scheme, Hicks and others created fictitious employers and fabricated lists of purported employees using personally identifiable information (PII) from thousands of identity theft victims and filed fraudulent unemployment insurance claims on the GaDOL website. The co-conspirators obtained PII for use in the scheme from a variety of sources, including by paying an employee of an Atlanta-area health care and hospital network to unlawfully obtain patients’ PII from the hospital’s databases, and by purchasing PII from other sources over the internet. Using victims’ PII, Hicks and her co-conspirators caused the stolen UI funds to be disbursed via prepaid debit cards mailed to addresses of their choice, many of which were in and around Cordele and Vienna. Hicks additionally paid a local U.S. Postal Service (USPS) carrier to unlawfully divert mail containing debit cards loaded with over $512,000 in fraud proceeds to her and coached another co-conspirator on how to create her own fictitious employer account via Facebook Messenger.

In February, Hicks pleaded guilty to one count of conspiracy to commit mail fraud and one count of aggravated identity theft. Seven of Hicks’ co-conspirators have previously pleaded guilty or been sentenced in the investigation.

“Tyshion Nautese Hicks and her co-conspirators used the stolen PII of unwitting victims to file numerous fraudulent claims for UI benefits with the Georgia Department of Labor,” said Special Agent in Charge Mathew Broadhurst of the U.S. Department of Labor, Office of Inspector General (DOL-OIG) Southeast Regional Office. “We will continue to work with our federal and state law enforcement partners to safeguard UI benefit programs for those who need them.”

“The sentence received by the defendant is the outcome of IRS Criminal Investigation’s commitment to investigating and prosecuting those who attempt to defraud various agencies by filing fraudulent claims using another person’s identifying information,” said Special Agent in Charge Demetrius Hardeman of the IRS Criminal Investigation (IRS-CI) Atlanta Field Office.

“Postal Inspectors will continue to work with our law enforcement partners to hold individuals accountable for engaging in fraudulent schemes to manipulate the COVID-19 program for their own financial gain,” said Inspector in Charge Tommy D. Coke of the U.S. Postal Inspection Service (USPIS) Atlanta Division. “The sentencing should serve as a deterrence and shows that this type of behavior will not be tolerated.”

“Yesterday’s sentencing underlines our commitment to holding those who exploit federal relief programs for personal gain accountable,” said Special Agent in Charge Jonathan Ulrich of the USPS Office of Inspector General (USPS-OIG). “As proven in this case, our criminal investigators along with our law enforcement partners will work together and diligently pursue anyone who attempts to exploit programs created to help legitimate people and businesses affected by the global pandemic.”

“Hicks chose to commit fraud, further depleting limited funds designated to help individuals struggling to survive during the pandemic,” said Special Agent in Charge Frederick D. Houston of the U.S. Secret Service (USSS) Atlanta Field Office. “She and her co-conspirators also stole the personally identifiable information, caring only about self-enrichment, not the lives adversely affected. This case signifies our commitment to protect citizens and businesses from fraud and identity theft. We will continue to work with our local, state, and federal law enforcement partners to prosecute those who abuse these programs.”

“Homeland Security Investigations will aggressively pursue those who exploit unemployment benefits meant for those in need, ensuring that justice is served, and resources are preserved for legitimate claimants,” said Acting Special Agent in Charge Steven N. Schrank of the Homeland Security Investigations (HSI) Atlanta Office.

“Yesterday’s sentencing sends a clear message that those committing fraud will be held accountable,” said Inspector General Joseph V. Cuffari of the Department of Homeland Security Office of Inspector General (DHS-OIG). “DHS-OIG and our law enforcement partners will continue to prioritize protecting our country from these kinds of schemes.”

DOL-OIG, IRS-CI, USPS-OIG, USPIS, USSS, HSI, and DHS-OIG investigated the case.

Trial Attorneys Lyndie Freeman, Siji Moore, Matthew Kahn, and Andrew Jaco of the Criminal Division’s Fraud Section prosecuted the fraud case.

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

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

MIL Security OSI –

January 25, 2025

MIL-OSI Canada: The Government of Canada invests in a clean economy for Nova Scotia

Source: Government of Canada News (2)

News release

October 25, 2024 Cape Breton, Nova Scotia Transport Canada

In Canada, the transportation sector is the second largest source of greenhouse gas (GHG) emissions. The Government of Canada is working to reduce these emissions through initiatives like the creation of green shipping corridors.

Today, the Parliamentary Secretary to the Minister of Fisheries, Oceans and the Canadian Coast Guard and Member of Parliament of Cape Breton—Canso, Mike Kelloway, on behalf of the President of the Treasury Board and Minister of Transport, the Honourable Anita Anand, announced up to $22.5 million for EverWind Fuels. This funding, provided under the Green Shipping Corridor Program, will allow them to:

purchase a loading arm to fuel and fill ships with green ammonia;
build a pipeline to transport green ammonia from the production facility to the transport terminal; and
buy three tugboats and improve the dock to help move and load ships safely.

Investments through the Green Shipping Corridor Program decarbonize the marine sector and encourage ports to adopt clean energy, while preparing them to support exports of clean fuels like ammonia.

Reducing emissions from all modes of transportation is a key part of the Government of Canada’s plan to fight climate change. Smart climate investments like this are good for Canadian workers, good for the Canadian economy, and good for the planet. A clean transportation sector will create good, well-paying jobs for Canadians and strengthen the middle-class.

Quotes

“As we continue to face the growing challenges of climate change, it’s crucial that we take bold steps to reduce emissions and protect our environment. This investment in EverWind Fuels is a key part of our strategy to build a cleaner, more sustainable future for Canada’s economy.”

The Honourable Anita Anand
President of the Treasury Board and Minister of Transport

“Today’s announcement highlights the Government of Canada’s ongoing commitment to reduce emissions and tackle climate change. By investing in innovative solutions at our ports, we are not only tackling climate change but also ensuring that Canada remains a leader in clean transportation. This is good news for Nova Scotians, and good news for Canadians.”

Mike Kelloway
Parliamentary Secretary to the Minister of Fisheries, Oceans, and the Canadian Coast Guard, and Member of Parliament for Cape Breton—Canso

Quick facts

The Green Shipping Corridor Program provides funding for projects that contribute to the establishment of green shipping corridors and the decarbonization of the marine sector along the Great Lakes, the St. Lawrence Seaway, as well as Canada’s East and West Coasts. The program:
- removes barriers to the adoption of emission reducing equipment and infrastructure;
- incentivizes industry-led partnerships and investments to accelerate the adoption of greenhouse gas emission-reduction technologies and infrastructure;
- decreases the risks of investments made to increase the technology-readiness level of low carbon and zero-emission ship technology and marine fuels for the domestic vessel fleet; and
- builds capacity among Canadian vessel owner/operators with respect to their ability to identify, plan and implement next generation low carbon and zero-emission ship technology and marine fuels into their vessel operations.

Associated links

Contacts

Laurent de Casanove
Press Secretary
Office of the Honourable Anita Anand
Minister of Transport, Ottawa
laurent.decasanove@tc.gc.ca

Media Relations
Transport Canada, Ottawa
media@tc.gc.ca
613-993-0055

MIL OSI Canada News –

January 25, 2025

MIL-OSI Canada: Federal government invests nearly $350,000 in active transportation in the Outaouais region

Source: Government of Canada News (2)

News release

Chelsea, Quebec, October 25, 2024 — Outaouais residents will have access to safer active transportation options thanks to an investment of nearly $350,000 from the federal government to support nine active transportation planning and awareness projects led by MOBI-O, the Centre de gestion des déplacements de l’Outaouais et de l’Abitibi-Témiscamingue.

Announced by MP for Pontiac Sophie Chatel, Mayor of Gatineau Maude Marquis-Bissonnette, Mayor of Chelsea Pierre Guénard and Mayor of Cantley David Gomes, these projects will benefit the Outaouais people by increasing the safety and accessibility of active transportation in the region.

An investment of nearly $250,000 will enable the development of school travel plans for nine schools:

One high school in the City of Gatineau (Polyvalente Nicolas-Gatineau);
Two elementary schools in the Centre de services scolaires au Cœur-des-Vallées;
Five elementary schools and one high school in the Centre de services scolaires des Haut-Bois-de-l’Outaouais.

The development of a local transportation plan for the municipalities of Chelsea and Cantley and the deployment of the “Going to school on foot or by bike, I can do it!” campaign for schools in the Centre de services scolaires des Haut-Bois-de-l’Outaouais and the La Pêche territory are also planned.

Today’s investment will also be used to organize an awareness campaign to promote active transportation by bicycle on the City of Gatineau’s territory and to identify strategic locations in Gatineau for the future installation of bicycle parking facilities and repair stations (bicibornes). These projects will go a step further in meeting the current needs of Gatineau’s cyclists, while increasing the use of bicycles for utilitarian and recreational purposes.

This investment contributes to Canada’s National Active Transportation Strategy by supporting planning and awareness activities. These activities help promote the benefits of active transportation and increase opportunities for Canadians to use it. It’s a big step towards healthier living and building resilient communities, making a better-connected Canada for us all.

Quotes

“Strategic investments in active transportation foster inclusive and sustainable communities. Today’s announcement will help communities in the Outaouais region put in place safe and accessible active transportation options to enable residents to walk or bike to access schools and easily get around important areas of their communities.”

Sophie Chatel, Member of Parliament for Pontiac, on behalf of the Honourable Sean Fraser, Minister of Housing, Infrastructure and Communities

“Thanks to this investment by the federal government and the work of MOBI-O, Gatineau will benefit directly from initiatives that meet the growing need to improve the safety and accessibility of active transportation within its region. These projects are a perfect reflection of our commitment to sustainable mobility while contributing to the quality of life of Gatineau residents.”

Maude Marquis-Bissonnette, Mayor of Gatineau

“We are delighted with the collaboration with MOBI-O and the federal financial support for the development of a local travel plan in Chelsea. This project aims to improve safety and access for residents, especially children, to the elementary school and village. Thanks to this joint commitment, we will be putting in place appropriate, sustainable infrastructures to ensure safe travel, while promoting active mobility. This plan represents an essential investment in the well-being of our community and the safety of future generations.”

Pierre Guénard, Mayor of Chelsea

“Active transportation is essential in Cantley and we are very pleased to be part of this joint initiative that promotes safe travel for all our citizens on our beautiful territory.”

David Gomes, Mayor of Cantley

“MOBI-O is proud to have obtained this funding, which represents a significant step forward for sustainable mobility in the Outaouais region. Thanks to these fundings and our valuable partnerships with municipalities and school service centres, we are able to support communities in implementing concrete solutions to encourage active mobility. These initiatives will help improve the quality of life of all citizens, while strengthening equity, health and sustainable development in our region.”

Émilie Rachiele-Tremblay, Assistant Executive Director of MOBI-O

Quick facts

The federal government is investing $348,938 in these projects through the Active Transportation Fund (ATF). MOBI-O is contributing $10,000 with $212,000 coming from other contributors.
Active transportation refers to the movement of people or goods powered by human activity. It includes walking, cycling and the use of human-powered or hybrid mobility aids such as wheelchairs, scooters, e-bikes, rollerblades, snowshoes, cross-country skis, and more.
In support of Canada’s National Active Transportation Strategy, the Active Transportation Fund is providing $400 million over five years, starting in 2021, to make travel by active transportation easier, safer, more convenient, and more enjoyable.
The National Active Transportation Strategy is the country’s first coast-to-coast-to-coast strategic approach for promoting active transportation and its benefits. The strategy’s aim is to make data-driven and evidence-based investments to build new and expanded active transportation networks, while supporting equitable, healthy, active, and sustainable travel options.
Investing in active transportation infrastructure provides many tangible benefits, such as creating good middle-class jobs, strengthening the economy, promoting healthier lifestyles, ensuring everyone has access to the same services and opportunities, cutting air and noise pollution, and reducing greenhouse gas emissions.
The new Canada Public Transit Fund (CPTF) will provide an average of $3 billion a year of permanent funding to respond to local transit needs by enhancing integrated planning, improving access to public transit and active transportation, and supporting the development of more affordable, sustainable, and inclusive communities.
The CPTF supports transit and active transportation investments in three streams: Metro Region Agreements, Baseline Funding, and Targeted Funding.
We are currently accepting Expression of Interest submissions for Metro-Region Agreements and Baseline Funding. Visit the Housing, Infrastructure and Communities Canada website for more information.

Related products

Associated links

Contacts

For more information (media only), please contact:

Sofia Ouslis
Press Secretary
Office of the Minister of Housing, Infrastructure and Communities
Sofia.ouslis@infc.gc.ca

Media Relations
Housing, Infrastructure and Communities Canada
613-960-9251
Toll free: 1-877-250-7154
Email: media-medias@infc.gc.ca
Follow us on X, Facebook, Instagram and LinkedIn
Web: Housing, Infrastructure and Communities Canada

Émilie Rachiele-Tremblay
Assistant Executive Director
MOBI-O
819-205-2085, ext. 104
emilie.rachiele@mobi-o.ca

Laurent Lavallée
Communications Director
City of Gatineau
613-606-7242
lavalle.laurent@gatineau.ca

Ghislaine Grenier
Interim Communications Officer
Municipality of Chelsea
819-827-1124, ext. 202
g.grenier@chelsea.ca

Johanne Albert-Cardinal
Communications Officer
Municipality of Cantley
819-827-3434, ext. 6838
communications@cantley.ca

MIL OSI Canada News –

January 25, 2025

MIL-OSI Security: United States Attorney Announces Election Officer for the District of Arizona

Source: Federal Bureau of Investigation (FBI) State Crime Alerts (b)

PHOENIX, Ariz. – United States Attorney Gary M. Restaino announced today that Assistant United States Attorney (AUSA) Sean Lokey will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 5, 2024, general election. AUSA Lokey has been appointed to serve as the District Election Officer for the District of Arizona, and in that capacity is responsible for overseeing the District’s handling of election day complaints of voting rights concerns, threats of violence to election officials or staff, and election fraud, in consultation with Justice Department Headquarters in Washington. Lokey has served in this role since the 2020 election cycle.

United States Attorney Restaino stated: “It takes a village to ensure that every eligible voter can cast a ballot easily and efficiently, without interference or discrimination, and with confidence their vote will be counted. This Office and our federal partners have worked collaboratively with Arizona state and local law enforcement, state and local elections officials, and other first responders of democracy like All Voting is Local, the Arizona State Bar and the Arizona Prosecuting Attorney’s Advisory Council, preparing for a smooth and safe election. We thank the many civic leaders who have sat with us in educational panels, tabletop exercises, and security discussions.”

The Department of Justice has an important role in deterring and combatting discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud. The Department will address these violations wherever they occur. The Department’s longstanding Election Day Program furthers these goals and also seeks to ensure public confidence in the electoral process by providing local points of contact within the Department for the public to report possible federal election law violations.

Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice. The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English).

“Democracy demands action to protect voters’ rights, and to disrupt the efforts of those individuals and entities who seek to deny those rights,” said U.S. Attorney Restaino. “In order to respond to complaints of voting rights concerns and election fraud during the upcoming election, and to ensure that such complaints are directed to the appropriate authorities, AUSA/DEO Lokey will be on duty in this District while the polls are open. He can be reached by the public at the following telephone number: 602-514-7516.”

In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public by phone at 623-466-1999 or online at https://tips.fbi.gov/.

Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, D.C. by phone at 800-253-3931 or by complaint form at https://civilrights.justice.gov/.

“Ensuring free and fair elections takes a commitment from all Americans,” noted United States Attorney Restaino. “It is important that those who have knowledge about barriers to voting rights or of specific instances of fraud by individual voters make that information available to the Department of Justice.”

Please note, however, that in the case of a crime of violence or intimidation, you should call 911 immediately before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.

RELEASE NUMBER: 2024-139_Arizona-General-Election

# # #

For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.

MIL Security OSI –

January 25, 2025

MIL-OSI USA: Attorney General James Announces Takedown of Major Gun Trafficking Operation in Queens

Source: US State of New York

NEW YORK – New York Attorney General Letitia James today announced the indictments of three individuals for their roles in a gun trafficking operation that illegally trafficked and sold 184 firearms in Queens County. The 579-count indictment charges Deundre Wright, 22, Abner Sparkes, 31, and Ethan Charles, 22, all of Queens, New York with trafficking and selling numerous assault weapons, semiautomatic pistols, revolvers, high-capacity magazines, and hundreds of rounds of ammunition. An investigation led by the Office of the Attorney General (OAG) recovered 184 firearms from the operation, which transported weapons from Goldsboro, North Carolina to New York City where they were sold. If convicted, the defendants face maximum sentences of 25 years in prison.

“The majority of guns used in crimes in New York City are illegally trafficked from other states with lax gun laws along the Iron Pipeline and are fueling deadly gun violence in our communities,” said Attorney General James. “This investigation shut down a major gun trafficking operation that brought a flood of dangerous weapons, including assault weapons, from North Carolina into New York City in the span of just a few months. I will continue to use every tool at my disposal to keep New Yorkers safe and get illegal guns off our streets. I thank our partners in this investigation for their work to stop gun violence.”

Firearms and ammunition recovered by the investigation

The takedown was the result of a joint investigation between the Attorney General’s Organized Crime Task Force (OCTF), and the U.S. Drug Enforcement Administration (DEA)’s New York Strikeforce, which includes members of the New York City Police Department (NYPD)’s DEA Firearms Task Force. The investigation included the use of controlled firearms purchase operations and physical, covert video, and electronic surveillance.

The investigation revealed that from March to July 2024, Deundre Wright was responsible for sourcing firearms in North Carolina and trafficking them to Queens where they were sold. Wright would travel by bus from Chinatown in Manhattan to North Carolina and back, storing the firearms in luggage during the trips. After transporting the guns to New York, Wright stored them at friends’ homes in Jamaica, Queens, including in cars parked at the homes. Wright would set the prices for the firearms ranging from $1,000 to $2,500 per gun, and provide them to Abner Sparkes, who would meet a customer for sales at 115^th Road and 222^nd Street in Cambria Heights, Queens. Sparkes would meet the customer in a car, conduct the sale, and then bring the cash back to Wright who was parked nearby monitoring the transactions.

On August 8, 2024, investigators detained Deundre Wright and Ethan Charles in Manhattan while they were exiting a bus carrying suitcases and other luggage. Investigators seized 41 firearms, including four shotguns and an inoperable rocket-propelled grenade launcher in their luggage.

The rocket-propelled grenade launcher and one of the assault weapons seized by the investigation

The indictment — unsealed before Queens County Supreme Court Judge Leigh Cheng — charges the three individuals with multiple crimes, including Criminal Sale of a Firearm in the First Degree, Criminal Possession of a Weapon in the First Degree, and Conspiracy in the Fourth Degree, among other charges, for their participation in the illegal gun trafficking operation. Each of the three individuals have been charged with Criminal Sale of a Firearm in the First Degree and Criminal Possession of a Firearm in the First Degree, which are both class B violent felonies. If convicted of one count of either of these crimes, the defendants face a maximum of 25 years in prison.

“Often times we see drug and gun violence go hand in hand. The indictments of these three individuals are thanks to the hard work of our DEA Strikeforce, New York’s Attorney General, and our law enforcement partners, when targeting those who pose a threat to our communities through the sale of illegal firearms,” said DEA New York Division Special Agent in Charge Frank Tarentino. “The removal of over 150 firearms, which includes numerous assault weapons and semiautomatic pistols, just made the streets of New York City and our neighborhoods safer. The DEA remains committed to protecting our communities, reducing gun violence, and enhancing public safety.”

“Today’s charges are a stark reminder that high-powered, illegal firearms continue to proliferate and circulate in our communities, and that NYPD investigators and our law enforcement partners are doing the dangerous work of preventing them from getting into criminals’ hands on the streets,” said NYPD Interim Commissioner Thomas G. Donlon. “Disrupting and dismantling gun trafficking networks is a top priority for our city. I thank everyone at Office of the Attorney General and all of our local, state, and federal partners for their hard work on this important case and for their ongoing commitment to our shared public safety mission.”

The Office of the Attorney General wishes to thank the members of the DEA New York Strikeforce and the NYPD’s DEA Firearms Task Force Officers. The Office of the Attorney General also wishes to thank the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Queens District Attorney’s Office, the Goldsboro Police Department in North Carolina, the Wayne County Sheriff’s Office, and the North Carolina State Bureau of Investigations for their valuable participation and assistance in this investigation.

The investigation was led by DEA New York Strikeforce’s Task Force Officer, NYPD Detective Ryan Foy of the NYPD’s DEA Firearms Task Force, under the supervision of NYPD Sergeant Brian O’Hanlon, Captain Jeffrey Heilig, Deputy Chief Carlos Ortiz, and Assistant Chief Jason Savino, under the overall supervision of Chief of Detectives Joseph Kenny.

For OAG, the investigation was led by OCTF Detectives Andrew Scala and Bradford Farrell, under the supervision of OCTF Supervising Detective Paul Grzegorski, Assistant Chief Ismael Hernandez, and Deputy Chief Andrew Boss, with special assistance from the detective specialists from the OAG Special Operations Unit, led by Deputy Chief Sean Donovan. The Attorney General’s Investigations Division is led by Chief Oliver Pu-Folkes.

The case is being prosecuted by OCTF Assistant Deputy Attorney General Ann Lee, under the supervision of Downstate OCTF Deputy Chief Lauren Abinanti with the assistance of OCTF Legal Support Analyst Madeline Rosen. Nicole Keary is the Deputy Attorney General in Charge of OCTF. The Criminal Justice Division is led by Chief Deputy Attorney General José Maldonado. Both the Investigations Division and the Division for Criminal Justice are overseen by First Deputy Attorney General Jennifer Levy.

MIL OSI USA News –

January 25, 2025

MIL-OSI: Nene Capital Acquires Cold Tech (Services) Ltd., Strengthening Strategic Portfolio

Source: GlobeNewswire (MIL-OSI)

CORBY, United Kingdom, Oct. 25, 2024 (GLOBE NEWSWIRE) — Nene Capital, a long term investor in small and medium-sized enterprises (SMEs), is proud to announce the acquisition of Cold Tech (Services) Ltd., a leader in refrigerated coldroom and cabinet maintenance. This acquisition enhances Nene Capital’s portfolio with a company renowned for its expertise and high-quality, bespoke solutions in food, retail, pharmaceutical, and logistics sectors.

Cold Tech (Services) Ltd. excels in maintenance, installation, and servicing of refrigeration, HVAC, and cold storage systems. Known for reliability and energy-efficient solutions, Cold Tech aligns perfectly with Nene Capital’s values of quality and growth.

Cold Tech (Services) Ltd. will continue under its established brand, ensuring uninterrupted service and trusted relationships. Nene Capital will support Cold Tech by investing in resources to expand its capabilities while maintaining quality and customer satisfaction.

Stephen Bayliss, Managing Director of Nene Capital, said, “We are thrilled to welcome Cold Tech (Services) Ltd. to our growing portfolio. This acquisition represents a significant step in our mission to invest in businesses that offer sustainable value and operational excellence.”

Simon Stringer, Finance Director of Nene Capital commented: “Cold Tech is a well-established business with over ten years of successful trading during which it has achieved a strong position in its market. We are excited to take the business into the next stage of its development.”

The transaction was supported by the corporate deal team at solicitors Howes Percival LLP and the Growth Finance team at Allica Bank.

The MIL Network –

January 25, 2025

MIL-OSI Economics: Southern Africa joins advancing effort to build a united continental front against malnutrition

Source: African Development Bank Group

Representatives of the African Development Bank, the African Leaders for Nutrition (ALN) initiative, the African Union Commission (AUC), and the government of Botswana came together in Gaborone, Botswana to develop a unified approach to addressing malnutrition in Southern Africa.

The event, held on September 10 and 11, 2024, also drew nutrition experts from 15 countries in the region to support the development of Africa’s first-ever Multisectoral Nutrition Policy Framework (MNPF). Participants also discussed high-impact interventions, the establishment of sustainable funding mechanisms for nutrition programs, and financing targets. The consultation outcomes are expected to guide policy formulation and promote increased investments in nutrition across the region.

The call for the development of a multisectoral policy framework and an investment target to ensure adequate funding for nutrition initiatives emerged from the 41^st Ordinary Session of the African Union’s Executive Council, which was held in July 2022 in Lusaka, Zambia.

The economic and social impacts of malnutrition took center stage in the discussions. One-third of African children under five suffer from stunting, even as obesity is an increasing challenge, with rates reaching 55 percent in some countries.

In her remarks, Dr. Mareko Ramotsababa, Secretary for Primary Health Care in Botswana, observed: “The region is still lagging behind in achieving the goals set for the Africa Agenda 2063, particularly in ending hunger, achieving food security, and improving nutrition. Although there’s been some improvement in malnutrition rates in the SADC region recently, child undernutrition remains a significant concern. Most member states have stunting rates surpassing 25 percent and wasting rates exceeding 5 percent. This calls for immediate and concerted action.”

Prof. Julio Rakotonirina, African Union Commission Director for Health and Humanitarian Affairs in the Department of Health, Humanitarian Affairs and Social Development, said: “These statistics must worry us because they stand in the way of achieving our aspiration for Agenda 2063, the Africa We Want. It is clear from these statistics that investing in the nutrition of our people to create a healthy and productive society is an economic imperative and should sit at the very center of Africa’s transformation agenda. Investing in better nutrition also makes financial sense. For a typical African country, every dollar invested in reducing chronic undernutrition in children yields a return of $16.”

Mr. George Ouma, African Development Bank Coordinator of African Leaders for Nutrition, reflected on the event’s significance in the context of the Bank’s 60^th anniversary, which took place on 9-10 September. “This regional consultation exemplifies the African Development Bank’s enduring commitment to advancing multisectoral nutrition strategies. As we celebrate 60 years of the Bank’s impact, we’re reminded that the mandate from the 41st Ordinary Session in Lusaka in 2022 anchors our gathering,” he said. “The urgency of a unified, multisectoral approach to combating malnutrition aligns perfectly with the Bank’s six-decade journey of fostering collaborative, cross-sector development initiatives.”

The regional consultation for Southern Africa follows one for the West Africa region held in Dakar, Senegal, in August 2024. Under the continental MNPF, regional consultations will take place in all five regions of Africa, culminating in the development of a unified policy and investment target for the entire continent.

The consultations will also help mobilize support for African countries ahead of the Nutrition for Growth Summit scheduled to be held in France in 2025. That Summit, a global event held every four years in the Olympic host country, brings governments and other key stakeholders together to accelerate progress toward ending malnutrition by 2030.

About ALN

The African Leaders for Nutrition (ALN) Initiative, spearheaded by the African Development Bank and championed by African leaders, works to galvanise political will and significant investments to end nutrition. Since it was officially endorsed on January 31, 2018, by the AU Assembly of Heads of State and Governments, ALN has secured critical commitments from governments across Africa, leading to impactful policy changes and cross-sector collaborations.

MIL OSI Economics –

January 25, 2025

MIL-OSI United Kingdom: Draft budget hopes to tackle council’s financial challenges head on

Source: City of Canterbury

Home » Latest News » Draft budget hopes to tackle council’s financial challenges head on

Coping with ever-rocketing external costs and increasing demands for council services are at the heart of Canterbury City Council’s budget proposals for 2025/2026.

If nothing else changed, rising prices alone would account for an increase in spending of just over £1m.

To counter this, the draft budget says it has identified £701,000 in efficiency savings and can shave a further £393,000 because of proposed changes to some service levels.

Cllr Mike Sole, Canterbury City Council’s Cabinet Member for Finance, said: “It is no secret that councils across the country of all political persuasions are facing a really difficult financial situation. We are no different.

“And drafting this budget is a touch more challenging than it usually is as we’re waiting to find out how much money the new Chancellor will be able to find for councils which are facing a plethora of challenges.

“Some of our assumptions could well change for the better.

“As an administration that is determined to be prudent and careful with council taxpayers’ money, we know we are not able to significantly expand the services that are important to us right now.

“But we are determined to use advances in technology to help us to work smarter, achieve more and generate extra cash especially when it comes to our property portfolio.

“Finally, the draft budget promises we will put aside the extra money needed to ensure we cement and build on the legacy of the Levelling Up Fund projects.”

The draft budget also proposes:

the introduction of a cultural grant pot of £30,000 per year to support more events and festivals
freezing parking charges for more than 4,000 parking spaces in council-owned car parks including Park and Ride, reducing the cost of parking at the Riverside complex by 37% and reversing last year’s increase in School Lane, Herne
the introduction of an annual Park and Ride permit for £50 per month or £600 per year saving motorists money
the introduction of a Park and Ride corporate account allowing businesses to encourage their staff to park for just £2.50 per day including free parking at the weekend
to convert 20 of Canenco’s larger diesel refuse collection vehicles to run on hydrogenated vegetable oil to help cut emissions and help the environment, at a cost of approximately £20,000 a year
a 3% increase in council tax meaning people living in an average Band D property will pay an extra 14p per week
saving £58,000 by reducing the number of times the grass is cut in amenity sites, such as parks and playing fields, from 18 times a year to 10 times a year

If accepted, the draft budget suggests most of the council’s fees and charges should only go up by 3%. The exceptions are:

a 20% increase for developers seeking what is known as pre-app advice before putting in a press release
a 5% increase for beach hut owners except for those at East Cliff which will be reduced by 14%
a 5% increase for people using the council’s slipways for launching jet skis etc

Leader of the Council, Cllr Alan Baldock, said: “Finding more than £1 million in cost savings after years and years of finding ways to be more efficient is no mean feat and is a real testament to officers and we are incredibly grateful for their hard work.

“We’re determined to do all we can to spot opportunities to invest in improvements to our services so that we can save money in the future and spend it on the key priorities we were elected to deliver.

“This really is a listening exercise and we want to hear the views of everyone that lives, works and studies in the district.

“People have become jaded when it comes to consultations around key but difficult issues.

“I hope our proposed changes to tariffs in School Lane in Herne show we are more than prepared to listen.”

The Cabinet will decide whether to give permission to consult on the draft budget at its meeting on Monday 4 November at 7pm in the Guildhall, St Peter’s Place, Canterbury.

If approved, the consultation will run from Monday 11 November 2024 to Monday 6 January 2025.

Published: 25 October 2024

MIL OSI United Kingdom –

January 25, 2025

MIL-OSI: Fentura Financial, Inc. Announces Third Quarter 2024 Earnings (unaudited)

Source: GlobeNewswire (MIL-OSI)

Dollars in thousands except per share amounts. Certain items in the prior period financial statements have been reclassified to conform with the September 30, 2024 presentation.

FENTON, Mich., Oct. 25, 2024 (GLOBE NEWSWIRE) — Fentura Financial, Inc. (OTCQX: FETM) announces quarterly net income results of $867 and $5,637 for the three and nine months ended September 30, 2024, respectively.

Ronald L. Justice, President and CEO, stated, “We ended the 2024 third quarter with record total assets, deposits, and shareholders’ equity. These results are a testament to the continued hard work of our team members, and the local value we provide our Michigan communities. During the third quarter, we announced a merger with ChoiceOne Financial Services, Inc., pursuant to which ChoiceOne and Fentura will merge in an all-stock transaction. Once completed, the combination will create the third largest publicly traded bank in Michigan with approximately $4.3 billion in consolidated total assets and 56 offices in Western, Central and Southeastern Michigan. We continue to expect to close the transaction in the first quarter of 2025, subject to the satisfaction of customary closing conditions and regulatory approvals.”

Following is a discussion of our financial performance as of, and for the three and nine months ended September 30, 2024. At the end of this document is a list of abbreviations and acronyms.

Results of Operations (unaudited)
The following table outlines our QTD results of operations and provides certain performance measures as of, and for the three months ended:

	9/30/2024			6/30/2024			3/31/2024			12/31/2023			9/30/2023
INCOME STATEMENT DATA
Interest income	$	22,194		$	21,487		$	21,541		$	21,033		$	20,416
Interest expense		10,202			9,650			9,315			8,526			7,757
Net interest income		11,992			11,837			12,226			12,507			12,659
Credit loss expense (reversal)		1,203			796			(43	)		(190	)		(309	)
Noninterest income		2,210			2,314			2,355			2,145			2,338
Noninterest expenses		11,974			10,921			11,166			10,121			10,594
Federal income tax expense		158			454			668			937			937
Net income	$	867		$	1,980		$	2,790		$	3,784		$	3,775
PER SHARE
Earnings	$	0.19		$	0.44		$	0.63		$	0.85		$	0.85
Dividends	$	0.11		$	0.11		$	0.11		$	0.10		$	0.10
Tangible book value⁽¹⁾	$	30.51		$	29.84		$	29.38		$	28.92		$	27.64
Quoted market value
High	$	40.00		$	24.39		$	27.20		$	27.20		$	23.74
Low	$	22.16		$	22.33		$	24.00		$	22.26		$	19.10
Close⁽¹⁾	$	39.07		$	22.50		$	24.40		$	27.20		$	23.74
PERFORMANCE RATIOS
Return on average assets		0.19	%		0.45	%		0.63	%		0.86	%		0.86	%
Return on average shareholders’ equity		2.37	%		5.59	%		7.98	%		11.11	%		11.27	%
Return on average tangible shareholders’ equity		2.54	%		5.98	%		8.55	%		11.94	%		12.14	%
Efficiency ratio		84.31	%		77.17	%		76.58	%		69.08	%		70.64	%
Yield on average earning assets (FTE)		5.17	%		5.18	%		5.15	%		5.06	%		4.92	%
Rate on interest bearing liabilities		3.28	%		3.22	%		3.11	%		2.90	%		2.66	%
Net interest margin to average earning assets (FTE)		2.80	%		2.85	%		2.92	%		3.01	%		3.05	%
BALANCE SHEET DATA⁽¹⁾
Total investment securities	$	99,724		$	100,167		$	103,210		$	107,615		$	109,543
Gross loans	$	1,442,389		$	1,459,929		$	1,461,465		$	1,473,471		$	1,483,720
Allowance for credit losses	$	14,700		$	15,300		$	15,300		$	15,400		$	15,400
Total assets	$	1,807,370		$	1,756,629		$	1,764,629		$	1,738,952		$	1,744,939
Total deposits	$	1,470,586		$	1,427,059		$	1,438,408		$	1,394,182		$	1,401,797
Borrowed funds	$	179,970		$	178,397		$	178,500		$	198,500		$	201,050
Total shareholders’ equity	$	146,398		$	143,301		$	141,074		$	138,702		$	132,902
Net loans to total deposits		97.08	%		101.23	%		100.54	%		104.58	%		104.75	%
Common shares outstanding		4,495,005			4,490,087			4,484,447			4,470,871			4,466,221
QTD BALANCE SHEET AVERAGES
Total assets	$	1,797,307		$	1,762,651		$	1,771,614		$	1,740,526		$	1,739,510
Earning assets	$	1,708,177		$	1,669,862		$	1,683,708		$	1,649,091		$	1,646,848
Interest bearing liabilities	$	1,237,665		$	1,204,370		$	1,205,162		$	1,165,064		$	1,156,835
Total shareholders’ equity	$	145,240		$	142,577		$	140,574		$	135,157		$	132,860
Total tangible shareholders’ equity	$	135,959		$	133,252		$	131,204		$	125,723		$	123,349
Earned common shares outstanding		4,466,951			4,461,580			4,449,376			4,443,463			4,437,415
Unvested stock grants		26,500			26,500			31,821			26,018			26,668
Total common shares outstanding		4,493,451			4,488,080			4,481,197			4,469,481			4,464,083
ASSET QUALITY
Nonperforming loans to gross loans ⁽¹⁾		0.71	%		0.66	%		0.39	%		0.38	%		0.24	%
Nonperforming assets to total assets ⁽¹⁾		0.58	%		0.56	%		0.34	%		0.35	%		0.23	%
Allowance for credit losses to gross loans ⁽¹⁾		1.02	%		1.05	%		1.05	%		1.05	%		1.04	%
Net charge-offs (recoveries) to QTD average gross loans		0.12	%		0.05	%		—	%	(0.01)%			(0.03)%
Credit loss expense (reversal) to QTD average gross loans		0.08	%		0.05	%		—	%	(0.01)%			(0.02)%
CAPITAL RATIOS⁽¹⁾
Total capital to risk weighted assets		12.48	%		12.38	%		12.27	%		11.91	%		11.59	%
Tier 1 capital to risk weighted assets		11.42	%		11.28	%		11.17	%		10.82	%		10.51	%
CET1 capital to risk weighted assets		10.40	%		10.28	%		10.17	%		9.83	%		9.53	%
Tier 1 leverage ratio		8.78	%		8.92	%		8.78	%		8.77	%		8.58	%

⁽¹⁾At end of period

The following table outlines our YTD results of operations and provides certain performance measures as of, and for the nine months ended (unaudited):

	9/30/2024			9/30/2023			9/30/2022			9/30/2021			9/30/2020
INCOME STATEMENT DATA
Interest income	$	65,222		$	58,648		$	41,438		$	35,161		$	34,355
Interest expense		29,167			19,561			3,122			2,091			4,952
Net interest income		36,055			39,087			38,316			33,070			29,403
Credit loss expense (reversal)		1,956			132			2,258			(218	)		4,652
Noninterest income		6,879			7,126			7,997			11,092			15,190
Noninterest expenses		34,061			32,547			30,870			27,815			23,939
Federal income tax expense		1,280			2,689			2,616			3,328			3,271
Net income	$	5,637		$	10,845		$	10,569		$	13,237		$	12,731
PER SHARE
Earnings	$	1.26		$	2.45		$	2.39		$	2.86		$	2.73
Dividends	$	0.33		$	0.3		$	0.27		$	0.24		$	0.225
Tangible book value⁽¹⁾	$	30.51		$	27.64		$	25.22		$	26.53		$	23.50
Quoted market value
High	$	40.00		$	24.10		$	29.25		$	27.40		$	26.00
Low	$	22.16		$	18.70		$	23.00		$	21.90		$	12.55
Close⁽¹⁾	$	39.07		$	23.74		$	23.00		$	25.75		$	16.93
PERFORMANCE RATIOS
Return on average assets		0.42	%		0.85	%		0.95	%		1.36	%		1.45	%
Return on average shareholders’ equity		5.27	%		11.15	%		11.71	%		14.55	%		15.79	%
Return on average tangible shareholders’ equity		5.64	%		12.03	%		12.75	%		15.00	%		16.40	%
Efficiency ratio		79.33	%		70.43	%		66.66	%		62.98	%		53.68	%
Yield on average earning assets (FTE)		5.17	%		4.84	%		3.99	%		3.83	%		4.12	%
Rate on interest bearing liabilities		3.20	%		2.35	%		0.49	%		0.37	%		0.93	%
Net interest margin to average earning assets (FTE)		2.86	%		3.23	%		3.69	%		3.60	%		3.52	%
BALANCE SHEET DATA⁽¹⁾
Total investment securities	$	99,724		$	109,543		$	129,886		$	138,476		$	78,179
Gross loans	$	1,442,389		$	1,483,720		$	1,350,851		$	1,015,177		$	1,060,885
Allowance for credit losses	$	14,700		$	15,400		$	12,200		$	10,500		$	10,100
Total assets	$	1,807,370		$	1,744,939		$	1,588,592		$	1,329,300		$	1,284,845
Total deposits	$	1,470,586		$	1,401,797		$	1,345,209		$	1,144,291		$	1,061,470
Borrowed funds	$	179,970		$	201,050		$	116,600		$	50,000		$	96,217
Total shareholders’ equity	$	146,398		$	132,902		$	121,630		$	124,809		$	114,081
Net loans to total deposits		97.08	%		104.75	%		99.51	%		87.80	%		98.99	%
Common shares outstanding		4,495,005			4,466,221			4,434,937			4,569,935			4,691,142
YTD BALANCE SHEET AVERAGES
Total assets	$	1,777,188		$	1,710,941		$	1,485,489		$	1,297,657		$	1,171,415
Earning assets	$	1,687,249		$	1,620,015		$	1,391,179		$	1,230,553		$	1,116,861
Interest bearing liabilities	$	1,215,731		$	1,111,687		$	858,600		$	748,472		$	711,449
Total shareholders’ equity	$	142,796		$	130,068		$	120,704		$	121,659		$	107,711
Total tangible shareholders’ equity	$	133,470		$	120,482		$	110,792		$	117,991		$	103,712
Earned common shares outstanding		4,459,303			4,428,963			4,425,818			4,630,709			4,665,951
Unvested stock grants		28,274			28,530			25,462			21,088			13,966
Total common shares outstanding		4,487,577			4,457,493			4,451,280			4,651,797			4,679,917
ASSET QUALITY
Nonperforming loans to gross loans ⁽¹⁾		0.71	%		0.24	%		0.12	%		0.82	%		0.07	%
Nonperforming assets to total assets ⁽¹⁾		0.58	%		0.23	%		0.12	%		0.63	%		0.06	%
Allowance for credit losses to gross loans ⁽¹⁾		1.02	%		1.04	%		0.90	%		1.03	%		0.95	%
Net charge-offs (recoveries) to YTD average gross loans		0.18	%	(0.03)%				0.05	%		0.02	%		0.03	%
Credit loss expense (reversal) to YTD average gross loans		0.13	%		0.01	%		0.19	%	(0.02)%				0.44	%
CAPITAL RATIOS⁽¹⁾
Total capital to risk weighted assets		12.48	%		11.59	%		10.96	%		13.63	%		15.57	%
Tier 1 capital to risk weighted assets		11.42	%		10.51	%		10.07	%		12.64	%		14.40	%
CET1 capital to risk weighted assets		10.40	%		9.53	%		9.04	%		11.33	%		12.77	%
Tier 1 leverage ratio		8.78	%		8.58	%		8.91	%		10.21	%		9.86	%

⁽¹⁾At end of period

Income Statement Breakdown and Analysis

	Quarter to Date
	9/30/2024			6/30/2024			3/31/2024			12/31/2023			9/30/2023
Net income	$	867		$	1,980		$	2,790		$	3,784		$	3,775
Acquisition related items (net of tax)
Other acquisition related expenses		753			—			—			—			—
Amortization of core deposit intangibles		35			34			36			60			60
Total acquisition related items (net of tax)		788			34			36			60			60
Other nonrecurring items (net of tax)
Proxy contest related expenses		—			—			—			—			—
Prepayment penalties collected		(24	)		(40	)		(58	)		(85	)		(29	)
Total other nonrecurring items (net of tax)		(24	)		(40	)		(58	)		(85	)		(29	)
Adjusted net income from operations	$	1,631		$	1,974		$	2,768		$	3,759		$	3,806

Net interest income	$	11,992		$	11,837		$	12,226		$	12,507		$	12,659
Prepayment penalties collected		(31	)		(51	)		(73	)		(107	)		(37	)
Adjusted net interest income	$	11,961		$	11,786		$	12,153		$	12,400		$	12,622

PERFORMANCE RATIOS
Based on adjusted net income from operations
Earnings per share	$	0.37		$	0.44		$	0.62		$	0.85		$	0.86
Return on average assets		0.36	%		0.45	%		0.63	%		0.86	%		0.87	%
Return on average shareholders’ equity		4.47	%		5.57	%		7.92	%		11.03	%		11.37	%
Return on average tangible shareholders’ equity		4.77	%		5.96	%		8.49	%		11.86	%		12.24	%
Efficiency ratio		77.45	%		77.15	%		76.65	%		69.06	%		70.31	%

Based on adjusted net interest income
Yield on average earning assets (FTE)		5.16	%		5.17	%		5.13	%		5.03	%		4.91	%
Rate on interest bearing liabilities		3.28	%		3.22	%		3.11	%		2.90	%		2.66	%
Net interest margin to average earning assets (FTE)		2.79	%		2.84	%		2.90	%		2.98	%		3.04	%

	Year to Date September 30						Variance
		2024			2023		Amount			%
Net income	$	5,637		$	10,845		$	(5,208	)	(48.02)%
Acquisition related items (net of tax)
Other acquisition related expenses		753			—			753		N/M
Amortization of core deposit intangibles		105			180			(75	)	(41.67)%
Total acquisition related items (net of tax)		858			180			678		376.67	%
Other nonrecurring items (net of tax)
Proxy contest related expenses		—			413			(413	)	(100.00)%
Prepayment penalties collected		(122	)		(133	)		11		(8.27)%
Total other nonrecurring items (net of tax)		(122	)		280			(402	)	(143.57)%
Adjusted net income from operations	$	6,373		$	11,305		$	(4,932	)	(43.63)%

Net interest income	$	36,055		$	39,087		$	(3,032	)	(7.76)%
Prepayment penalties collected		(155	)		(169	)		14		(8.28)%
Adjusted net interest income	$	35,900		$	38,918		$	(3,018	)	(7.75)%

PERFORMANCE RATIOS
Based on adjusted net income from operations
Earnings per share	$	1.43		$	2.55		$	(1.12	)	(43.92)%
Return on average assets		0.48	%		0.88	%				(0.40)%
Return on average shareholders’ equity		5.96	%		11.62	%				(5.66)%
Return on average tangible shareholders’ equity		6.38	%		12.55	%				(6.17)%
Efficiency ratio		77.08	%		69.06	%				8.02	%

Based on adjusted net interest income
Yield on average earning assets (FTE)		5.16	%		4.83	%				0.33	%
Rate on interest bearing liabilities		3.20	%		2.35	%				0.85	%
Net interest margin to average earning assets (FTE)		2.85	%		3.22	%				(0.37)%

Average Balances, Interest Rate, and Net Interest Income

The following tables present the daily average amount outstanding for each major category of interest earning assets, nonearning assets, interest bearing liabilities, and noninterest bearing liabilities. These tables also present an analysis of interest income and interest expense for the periods indicated. All interest income is reported on a FTE basis using a federal income tax rate of 21%. Loans in nonaccrual status, for the purpose of the following computations, are included in the average loan balances.

Net interest income is the amount by which interest income on earning assets exceeds the interest expenses on interest bearing liabilities. Net interest income, which includes loan fees, is influenced by changes in the balance and mix of assets and liabilities and market interest rates. We exert some control over these factors; however, FRB monetary policy and competition have a significant impact. For analytical purposes, net interest income is adjusted to a FTE basis by adding the income tax savings from interest on tax exempt loans, and nontaxable investment securities, thus making period-to-period comparisons more meaningful.

	Three Months Ended
	September 30, 2024							June 30, 2024							September 30, 2023
	Average Balance			Tax Equivalent Interest		Average Yield / Rate		Average Balance			Tax Equivalent Interest		Average Yield / Rate		Average Balance			Tax Equivalent Interest		Average Yield / Rate
Interest earning assets
Total loans	$	1,450,371		$	19,599	5.38	%	$	1,462,362		$	19,550	5.38	%	$	1,477,343		$	19,170	5.15	%
Taxable investment securities		89,175			335	1.49	%		89,751			350	1.57	%		101,549			397	1.55	%
Nontaxable investment securities		10,580			57	2.14	%		11,059			62	2.25	%		12,670			70	2.19	%
Interest earning cash and cash equivalents		148,872			2,023	5.41	%		97,511			1,331	5.49	%		43,865			594	5.37	%
Federal Home Loan Bank stock		9,179			192	8.32	%		9,179			207	9.07	%		11,421			199	6.91	%
Total earning assets		1,708,177			22,206	5.17	%		1,669,862			21,500	5.18	%		1,646,848			20,430	4.92	%

Nonearning assets
Allowance for credit losses		(15,282	)						(15,300	)						(15,503	)
Premises and equipment, net		13,514							13,964							15,210
Accrued income and other assets		90,898							94,125							92,955
Total assets	$	1,797,307						$	1,762,651						$	1,739,510

Interest bearing liabilities
Interest bearing demand deposits	$	460,256		$	4,054	3.50	%	$	429,141		$	3,745	3.51	%	$	416,500		$	3,230	3.08	%
Savings deposits		261,620			416	0.63	%		266,731			408	0.62	%		290,939			429	0.59	%
Time deposits		336,570			3,865	4.57	%		330,024			3,756	4.58	%		248,389			2,280	3.64	%
Borrowed funds		179,219			1,867	4.14	%		178,474			1,741	3.92	%		201,007			1,818	3.59	%
Total interest bearing liabilities		1,237,665			10,202	3.28	%		1,204,370			9,650	3.22	%		1,156,835			7,757	2.66	%

Noninterest bearing liabilities
Noninterest bearing deposits		402,274							405,985							435,398
Accrued interest and other liabilities		12,128							9,719							14,417
Shareholders’ equity		145,240							142,577							132,860
Total liabilities and shareholders’ equity	$	1,797,307						$	1,762,651						$	1,739,510
Net interest income (FTE)				$	12,004						$	11,850						$	12,673
Net interest margin to earning assets (FTE)						2.80	%						2.85	%						3.05	%

	Nine Months Ended
	September 30, 2024							September 30, 2023
	Average Balance			Tax Equivalent Interest		Average Yield / Rate		Average Balance			Tax Equivalent Interest		Average Yield / Rate
Interest earning assets
Total loans	$	1,461,289		$	58,758	5.37	%	$	1,464,959		$	55,749	5.09	%
Taxable investment securities		91,041			1,044	1.53	%		106,158			1,250	1.57	%
Nontaxable investment securities		11,200			186	2.22	%		13,403			227	2.26	%
Interest earning cash and cash equivalents		114,540			4,673	5.45	%		24,484			955	5.21	%
Federal Home Loan Bank stock		9,179			600	8.73	%		11,011			515	6.25	%
Total earning assets		1,687,249			65,261	5.17	%		1,620,015			58,696	4.84	%

Nonearning assets
Allowance for credit losses		(15,328	)						(15,290	)
Premises and equipment, net		13,957							15,342
Accrued income and other assets		91,310							90,874
Total assets	$	1,777,188						$	1,710,941

Interest bearing liabilities
Interest bearing demand deposits	$	436,997		$	11,358	3.47	%	$	385,316		$	7,927	2.75	%
Savings deposits		266,883			1,237	0.62	%		312,762			1,336	0.57	%
Time deposits		331,113			11,265	4.54	%		196,838			4,595	3.12	%
Borrowed funds		180,738			5,307	3.92	%		216,771			5,703	3.52	%
Total interest bearing liabilities		1,215,731			29,167	3.20	%		1,111,687			19,561	2.35	%

Noninterest bearing liabilities
Noninterest bearing deposits		408,449							455,069
Accrued interest and other liabilities		10,212							14,117
Shareholders’ equity		142,796							130,068
Total liabilities and shareholders’ equity	$	1,777,188						$	1,710,941
Net interest income (FTE)				$	36,094						$	39,135
Net interest margin to earning assets (FTE)						2.86	%						3.23	%

Volume and Rate Variance Analysis

The following table sets forth the effect of volume and rate changes on interest income and expense for the periods indicated. For the purpose of this table, changes in interest due to volume and rate were determined as follows:

Volume – change in volume multiplied by the previous period’s rate.
Rate – change in the FTE rate multiplied by the previous period’s volume.

The change in interest due to both volume and rate has been allocated to volume and rate changes in proportion to the relationship of the absolute dollar amounts of the change in each.

	Three Months Ended									Three Months Ended									Nine Months Ended
	September 30, 2024									September 30, 2024									September 30, 2024
	Compared To									Compared To									Compared To
	June 30, 2024									September 30, 2023									September 30, 2023
	Increase (Decrease) Due to									Increase (Decrease) Due to									Increase (Decrease) Due to
	Volume			Rate			Net			Volume			Rate			Net			Volume			Rate			Net
Changes in interest income
Total loans	$	49		$	—		$	49		$	(1,847	)	$	2,276		$	429		$	(227	)	$	3,236		$	3,009
Taxable investment securities		(2	)		(13	)		(15	)		(47	)		(15	)		(62	)		(175	)		(31	)		(206	)
Nontaxable investment securities		(2	)		(3	)		(5	)		(12	)		(1	)		(13	)		(37	)		(4	)		(41	)
Interest earning cash and cash equivalents		825			(133	)		692			1,424			5			1,429			3,672			46			3,718
Federal Home Loan Bank stock		—			(15	)		(15	)		(161	)		154			(7	)		(137	)		222			85
Total changes in interest income		870			(164	)		706			(643	)		2,419			1,776			3,096			3,469			6,565

Changes in interest expense
Interest bearing demand deposits		380			(71	)		309			359			465			824			1,162			2,269			3,431
Savings deposits		(25	)		33			8			(147	)		134			(13	)		(258	)		159			(99	)
Time deposits		158			(49	)		109			922			663			1,585			4,001			2,669			6,670
Borrowed funds		9			117			126			(896	)		945			49			(1,265	)		869			(396	)
Total changes in interest expense		522			30			552			238			2,207			2,445			3,640			5,966			9,606
Net change in net interest income (FTE)	$	348		$	(194	)	$	154		$	(881	)	$	212		$	(669	)	$	(544	)	$	(2,497	)	$	(3,041	)

	Average Yield/Rate for the Three Months Ended
	9/30/2024		6/30/2024		3/31/2024		12/31/2023		9/30/2023
Total earning assets	5.17	%	5.18	%	5.15	%	5.06	%	4.92	%
Total interest bearing liabilities	3.28	%	3.22	%	3.11	%	2.90	%	2.66	%
Net interest margin to earning assets (FTE)	2.80	%	2.85	%	2.92	%	3.01	%	3.05	%

	Quarter to Date Net Interest Income (FTE)
	9/30/2024		6/30/2024		3/31/2024		12/31/2023		9/30/2023
Interest income	$	22,194	$	21,487	$	21,541	$	21,033	$	20,416
FTE adjustment		12		13		14		14		14
Total interest income (FTE)		22,206		21,500		21,555		21,047		20,430
Total interest expense		10,202		9,650		9,315		8,526		7,757
Net interest income (FTE)	$	12,004	$	11,850	$	12,240	$	12,521	$	12,673

Noninterest Income

	Three Months Ended
	9/30/2024			6/30/2024			3/31/2024			12/31/2023			9/30/2023
Service charges and fees
Trust and investment services		619			607			641			433			572
ATM and debit card		541			545			512			549			568
Service charges on deposit accounts		163			162			140			211			244
Total		1,323			1,314			1,293			1,193			1,384
Net gain on sales of residential mortgage loans		211			177			143			96			164
Net gain on sales of commercial loans		133			98			296			226			—
Change in fair value of equity investments		33			(3	)		(10	)		42			(28	)
Changes in the fair value of MSR		(175	)		(44	)		(96	)		(108	)		119
Other
Mortgage servicing fees		389			386			394			398			398
Change in cash surrender value of corporate owned life insurance		206			207			204			192			181
Other		90			179			131			106			120
Total		685			772			729			696			699
Total noninterest income	$	2,210		$	2,314		$	2,355		$	2,145		$	2,338

Memo items:
Residential mortgage operations	$	425		$	519		$	441		$	386		$	681

	Nine Months Ended September 30						Variance
		2024			2023		Amount			%
Service charges and fees
Trust and investment services	$	1,867		$	1,704		$	163		9.57	%
ATM and debit card		1,598			1,669			(71	)	(4.25)%
Service charges on deposit accounts		465			686			(221	)	(32.22)%
Total		3,930			4,059			(129	)	(3.18)%
Net gain on sales of residential mortgage loans		531			523			8		1.53	%
Net gain on sales of commercial loans		527			95			432		454.74	%
Change in fair value of equity investments		20			(29	)		49		(168.97)%
Changes in the fair value of MSR		(315	)		218			(533	)	(244.50)%
Other
Mortgage servicing fees		1,169			1,210			(41	)	(3.39)%
Change in cash surrender value of corporate owned life insurance		617			531			86		16.20	%
Other		400			519			(119	)	(22.93)%
Total		2,186			2,260			(74	)	(3.27)%
Total noninterest income	$	6,879		$	7,126		$	(247	)	(3.47)%

Memo items:
Residential mortgage operations	$	1,385		$	1,951		$	(566	)	(29.01)%

Residential Mortgage Operations

Residential mortgage operations includes net gains on sales of loans, changes in the fair value of mortgage servicing rights, and mortgage servicing fees.

Net gain on sales of residential mortgage loans represents the income earned on the sale of residential mortgage loans into the secondary market. Although elevated interest rates and limited inventories have significantly driven down the volume of new originations and refinancing activity, we continue to actively sell residential mortgage loans into the secondary market. During the third quarter of 2024, residential mortgage originations sold into the secondary market totaled $10,722.

Changes in the fair value of MSR are highly correlated to changes in interest rates and prepayment speeds. During the third quarter of 2024, the fair value of the servicing portfolio decreased primarily due to a decline in the size of the servicing portfolio, as the portfolio declined by $4,741. Mortgage servicing rights are expected to continue to decline due to likely further reductions in the size of our servicing portfolio as paydowns and maturities are expected to outpace new originations.

Mortgage servicing fees includes the fees earned for servicing loans that have been sold into the secondary market. The annual decrease in mortgage servicing fees is directly related to the size of the serviced portfolio. Due to reduced levels of secondary market originations and prepayments, the serviced loan portfolio declined by $22,584, or 3.58%, since September 30, 2023. We expect mortgage servicing fees to trend modestly downward in future periods due to decreased secondary market originations.

All Other Noninterest Income

Trust and investment services includes income earned from contracts with customers to manage assets for investment and/or to transact on their accounts through the wealth management and trust department. Trust services and wealth management fees are subject to market fluctuations and interest rate changes. We expect trust and investment services fees to modestly increase in future periods.

ATM and debit card income represents fees earned on ATM and debit card transactions. We expect these fees to approximate current levels in 2024.

Service charges on deposit accounts includes fees earned from deposit customers for transaction-based charges, account maintenance and overdraft services. These charges have declined in 2024 due to a reduced level of NSF fees charged to customers based on regulatory guidance and overall industry trends. Service charges on deposit accounts are expected to approximate current levels throughout the remainder of the year.

Net gain on sales of commercial loans represents the income earned from the sale of commercial loans into the secondary market. Throughout 2024, we sold the guaranteed portion of select SBA loans. We anticipate this strategy to continue throughout the remainder of the year.

Change in cash surrender value of corporate owned life insurance is expected to modestly increase throughout 2024.

Other includes miscellaneous other income items, none of which are individually significant.

Noninterest Expenses

	Three Months Ended
	9/30/2024		6/30/2024		3/31/2024		12/31/2023		9/30/2023
Compensation and benefits	$	5,839	$	5,842	$	6,066	$	5,521	$	5,592
Professional services		799		963		894		695		726
Furniture and equipment		668		689		727		696		668
Occupancy		622		605		623		610		591
Data processing		751		490		547		505		576
Loan and collection		349		425		322		301		232
Advertising and promotional		312		337		348		139		506
Other
Acquisition related expenses		953		—		—		—		—
FDIC insurance premiums		275		327		299		270		330
ATM and debit card		214		188		171		158		153
Telephone and communication		95		86		109		103		115
Amortization of core deposit intangibles		44		44		45		76		75
Other general and administrative		1,053		925		1,015		1,047		1,030
Total		2,634		1,570		1,639		1,654		1,703
Total noninterest expenses	$	11,974	$	10,921	$	11,166	$	10,121	$	10,594

	Nine Months Ended September 30				Variance
		2024		2023	Amount			%
Compensation and benefits	$	17,747	$	16,876	$	871		5.16	%
Professional services		2,656		2,729		(73	)	(2.67)%
Furniture and equipment		2,084		2,079		5		0.24	%
Occupancy		1,850		1,815		35		1.93	%
Data processing		1,788		1,654		134		8.10	%
Loan and collection		1,096		929		167		17.98	%
Advertising and promotional		997		1,466		(469	)	(31.99)%
Other
Acquisition related expenses		953		—		953		N/M
FDIC insurance premiums		901		861		40		4.65	%
ATM and debit card		573		493		80		16.23	%
Telephone and communication		290		334		(44	)	(13.17)%
Amortization of core deposit intangibles		133		227		(94	)	(41.41)%
Other general and administrative		2,993		3,084		(91	)	(2.95)%
Total		5,843		4,999		844		16.88	%
Total noninterest expenses	$	34,061	$	32,547	$	1,514		4.65	%

Compensation and benefits includes salaries, commissions and incentives, employee benefits, and payroll taxes. Compensation and benefits has increased in 2024 due to an increase in the size of the organization, merit increases, and market based adjustments. We expect a modest increase in overall compensation and benefits throughout the remainder of 2024.

Professional services include expenses relating to third-party professional services. These services include, but are not limited to, regulatory, auditing, consulting, and legal. Professional services expenses are expected to approximate current levels in future periods.

Furniture and equipment and occupancy expenses primarily consist of depreciation, repairs and maintenance, certain service contracts, and other related items. These expenses are expected to approximate current levels throughout the remainder of 2024.

Data processing primarily includes the expenses relating to our core data processor. The increase in data processing in the third quarter of 2024 is primarily due to the loss of incentive credits from our core data processor following our proposed merger announcement. Data processing expenses are expected to modestly increase throughout 2024 due to annual contractual increases from our core data processor.

Loan and collection includes expenses related to the origination and collection of loans. The increase in such expenses in 2024 is due to increased levels of home ownership grants. Loan and collection expenses are expected to approximate current levels in future periods as loan growth is expected to approximate current levels.

Advertising and promotional expenses includes media costs and any donations or sponsorships. These expenses also include marketing efforts to attract new and expand existing customer loan and deposit account relationships. Total advertising and promotional expenses have declined in 2024 due to the expiration of certain long-term sponsorship commitments. Advertising and promotional expenses are expected to approximate current levels in future periods.

Acquisition related expenses includes expenses related to our proposed merger with ChoiceOne Financial Services, Inc., which was announced during the third quarter of 2024. These expenses include services rendered for investment banking, legal and accounting. We expect to incur additional acquisition related expenses in future periods.

FDIC insurance premiums typically fluctuate each period based on the size of the balance sheet, capital position and overall risk profile. FDIC insurance premiums are expected to approximate current levels in future periods.

ATM and debit card expenses fluctuate based on customer and non-customer utilization of ATMs and customer debit card volumes. We expect these fees to approximate current levels in future periods.

Telephone and communication includes expenses relating to our communication systems. These expenses are expected to approximate current levels in future periods.

Amortization of core deposit intangibles relates to the core deposits acquired from Community Bancorp, Inc. on December 31, 2016 and FSB on December 1, 2021. These core deposit intangibles are being amortized using an accelerated sum-of-years-digits method over their estimated useful lives of seven years. The core deposit intangibles associated with the acquisition of Community Bancorp, Inc. were fully amortized as of December 31, 2023. The core deposit intangibles associated with the acquisition of FSB will be amortized through 2028.

Other general and administrative includes miscellaneous other expense items. Other general and administrative expenses are expected to approximate current levels in future periods.

Balance Sheet Breakdown and Analysis

	9/30/2024		6/30/2024		3/31/2024		12/31/2023		9/30/2023
ASSETS
Cash and due from banks	$	199,717	$	128,590	$	132,349	$	90,661	$	83,365
Total investment securities		99,724		100,167		103,210		107,615		109,543
Residential mortgage loans held-for-sale, at fair value		1,861		2,440		1,067		747		1,037
Gross loans		1,442,389		1,459,929		1,461,465		1,473,471		1,483,720
Less allowance for credit losses		14,700		15,300		15,300		15,400		15,400
Net loans		1,427,689		1,444,629		1,446,165		1,458,071		1,468,320
All other assets		78,379		80,803		81,838		81,858		82,674
Total assets	$	1,807,370	$	1,756,629	$	1,764,629	$	1,738,952	$	1,744,939

LIABILITIES AND SHAREHOLDERS’ EQUITY
Total deposits	$	1,470,586	$	1,427,059	$	1,438,408	$	1,394,182	$	1,401,797
Total borrowed funds		179,970		178,397		178,500		198,500		201,050
Accrued interest payable and other liabilities		10,416		7,872		6,647		7,568		9,190
Total liabilities		1,660,972		1,613,328		1,623,555		1,600,250		1,612,037
Total shareholders’ equity		146,398		143,301		141,074		138,702		132,902
Total liabilities and shareholders’ equity	$	1,807,370	$	1,756,629	$	1,764,629	$	1,738,952	$	1,744,939

	9/30/2024 vs 6/30/2024					9/30/2024 vs 9/30/2023
	Variance					Variance
	Amount			%		Amount			%
ASSETS
Cash and due from banks	$	71,127		55.31	%	$	116,352		139.57	%
Total investment securities		(443	)	(0.44)%			(9,819	)	(8.96)%
Residential mortgage loans held-for-sale, at fair value		(579	)	(23.73)%			824		79.46	%
Gross loans		(17,540	)	(1.20)%			(41,331	)	(2.79)%
Less allowance for credit losses		(600	)	(3.92)%			(700	)	(4.55)%
Net loans		(16,940	)	(1.17)%			(40,631	)	(2.77)%
All other assets		(2,424	)	(3.00)%			(4,295	)	(5.20)%
Total assets	$	50,741		2.89	%	$	62,431		3.58	%

LIABILITIES AND SHAREHOLDERS’ EQUITY
Total deposits	$	43,527		3.05	%	$	68,789		4.91	%
Total borrowed funds		1,573		0.88	%		(21,080	)	(10.48)%
Accrued interest payable and other liabilities		2,544		32.32	%		1,226		13.34	%
Total liabilities		47,644		2.95	%		48,935		3.04	%
Total shareholders’ equity		3,097		2.16	%		13,496		10.15	%
Total liabilities and shareholders’ equity	$	50,741		2.89	%	$	62,431		3.58	%

Cash and due from banks

	9/30/2024		6/30/2024			3/31/2024		12/31/2023		9/30/2023
Cash and due from banks
Noninterest bearing	$	37,871	$	35,437		$	26,128	$	29,997	$	35,121
Interest bearing		161,846		93,153			106,221		60,664		48,244
Total	$	199,717	$	128,590		$	132,349	$	90,661	$	83,365

	9/30/2024 vs 6/30/2024							9/30/2024 vs 9/30/2023
	Variance							Variance
	Amount		%					Amount		%
Cash and due from banks
Noninterest bearing	$	2,434		6.87	%			$	2,750		7.83	%
Interest bearing		68,693		73.74	%				113,602		235.47	%
Total	$	71,127		55.31	%			$	116,352		139.57	%

Cash and due from banks fluctuates from period to period based on loan demand and variances in deposit account balances.

Primary and secondary liquidity sources

The following table outlines our primary and secondary sources of liquidity as of:

	9/30/2024		6/30/2024		3/31/2024		12/31/2023		9/30/2023
Cash and cash equivalents	$	199,717	$	128,590	$	132,349	$	90,661	$	83,365
Fair value of unpledged investment securities		77,019		74,775		73,680		80,247		82,103
FHLB borrowing availability		190,000		190,000		190,000		170,000		170,000
Unsecured lines of credit		23,000		23,000		23,000		20,000		20,000
Funds available through the Fed Discount Window		109		106		107		111		110
Parent company line of credit		5,100		7,000		3,500		3,500		950
Total liquidity sources	$	494,945	$	423,471	$	422,636	$	364,519	$	356,528

The increase in cash and cash equivalents as of September 30, 2024 was due to an increase in total deposits (see “Total deposits” below).

In addition to the above liquidity sources, we also have the option of utilizing wholesale funding sources, such as brokered NOW accounts, brokered time deposits, and internet time deposits. Although wholesale funding sources are typically more expensive than core deposits and other liquidity sources, they are an integral part of our overall asset and liability management strategy.

Investment securities

	9/30/2024			6/30/2024			3/31/2024			12/31/2023			9/30/2023
Available-for-sale
U.S. Government and federal agency	$	19,432		$	20,430		$	20,427		$	22,425		$	23,420
State and municipal		18,997			19,108			20,403			20,460			20,992
Mortgage backed residential		44,086			45,808			47,505			49,076			50,786
Certificates of deposit		2,234			2,481			2,729			2,728			3,956
Collateralized mortgage obligations – agencies		21,640			22,213			22,778			23,320			24,062
Unrealized gain/(loss) on available-for-sale securities		(8,798	)		(12,179	)		(13,027	)		(12,760	)		(15,958	)
Total available-for-sale		97,591			97,861			100,815			105,249			107,258
Held-to-maturity state and municipal		535			791			877			878			879
Equity securities		1,598			1,515			1,518			1,488			1,406
Total investment securities	$	99,724		$	100,167		$	103,210		$	107,615		$	109,543

	9/30/2024 vs 6/30/2024									9/30/2024 vs 9/30/2023
	Variance									Variance
	Amount			%						Amount			%
Available-for-sale
U.S. Government and federal agency		(998	)	(4.88)%						$	(3,988	)	(17.03)%
State and municipal		(111	)	(0.58)%							(1,995	)	(9.50)%
Mortgage backed residential		(1,722	)	(3.76)%							(6,700	)	(13.19)%
Certificates of deposit		(247	)	(9.96)%							(1,722	)	(43.53)%
Collateralized mortgage obligations – agencies		(573	)	(2.58)%							(2,422	)	(10.07)%
Unrealized gain/(loss) on available-for-sale securities		3,381		(27.76)%							7,160		(44.87)%
Total available-for-sale		(270	)	(0.28)%							(9,667	)	(9.01)%
Held-to-maturity state and municipal		(256	)	(32.36)%							(344	)	(39.14)%
Equity securities		83			5.48	%					192			13.66	%
Total investment securities	$	(443	)	(0.44)%						$	(9,819	)	(8.96)%

The amortized cost and fair value of AFS investment securities as of September 30, 2024 were as follows:

	Maturing
	Due in One Year or Less		After One Year But Within Five Years		After Five Years But Within Ten Years		After Ten Years		Securities with Variable Monthly Payments or Noncontractual Maturities		Total
U.S. Government and federal agency	$	6,481	$	12,951	$	—	$	—	$	—	$	19,432
State and municipal		1,624		15,190		1,113		1,070		—		18,997
Mortgage backed residential		—								44,086		44,086
Certificates of deposit		2,234		—		—		—		—		2,234
Collateralized mortgage obligations – agencies		—		—		—		—		21,640		21,640
Total amortized cost	$	10,339	$	28,141	$	1,113	$	1,070	$	65,726	$	106,389
Fair value	$	10,111	$	26,620	$	1,017	$	1,001	$	58,842	$	97,591

The amortized cost and fair value of HTM investment securities as of September 30, 2024 were as follows:

	Maturing
	Due in One Year or Less		After One Year But Within Five Years		After Five Years But Within Ten Years		After Ten Years		Securities with Variable Monthly Payments or Noncontractual Maturities		Total
State and municipal	$	85	$	295	$	155	$	—	$	—	$	535
Fair value	$	84	$	290	$	152	$	—	$	—	$	526

Total investment securities have declined in recent periods primarily due to maturities and prepayments. As a result of overall market conditions, we have not replenished maturing securities with new purchases.

Residential mortgage loans held-for-sale, at fair value

Loans HFS represent the fair value of loans that have been committed to be sold to the secondary market, but have not yet been delivered. The level of loans HFS fluctuates based on loan demand as well as the timing of loan deliveries to the secondary market.

Loans and allowance for credit losses

As outlined in the following tables, our loan portfolio has strategically declined throughout the past 12 months. As a result of current market conditions, we expect minimal loan growth throughout the remainder of 2024. Specifically, our commercial pipeline has declined significantly, and the requests that are being presented are lower dollar balances and often carry an SBA guarantee.

The following tables outline the composition and changes in the loan portfolio as of:

	9/30/2024			6/30/2024			3/31/2024			12/31/2023			9/30/2023
Commercial and industrial	$	109,188		$	120,331		$	114,772		$	118,089		$	125,330
Commercial real estate		855,270			864,200			867,270			870,693			874,870
Total commercial loans		964,458			984,531			982,042			988,782			1,000,200
Residential mortgage		419,140			418,403			426,762			431,836			431,740
Home equity		55,475			53,133			48,568			48,380			47,069
Total residential real estate loans		474,615			471,536			475,330			480,216			478,809
Consumer		3,316			3,862			4,093			4,473			4,711
Gross loans		1,442,389			1,459,929			1,461,465			1,473,471			1,483,720
Allowance for credit losses		(14,700	)		(15,300	)		(15,300	)		(15,400	)		(15,400	)
Loans, net	$	1,427,689		$	1,444,629		$	1,446,165		$	1,458,071		$	1,468,320

Memo items:
Residential mortgage loans serviced for others	$	609,113		$	613,854		$	619,160		$	624,765		$	631,697

	9/30/2024 vs 6/30/2024									9/30/2024 vs 9/30/2023
	Variance									Variance
	Amount			%						Amount			%
Commercial and industrial	$	(11,143	)	(9.26)%						$	(16,142	)	(12.88)%
Commercial real estate		(8,930	)	(1.03)%							(19,600	)	(2.24)%
Total commercial loans		(20,073	)	(2.04)%							(35,742	)	(3.57)%
Residential mortgage		737			0.18	%					(12,600	)	(2.92)%
Home equity		2,342			4.41	%					8,406			17.86	%
Total residential real estate loans		3,079			0.65	%					(4,194	)	(0.88)%
Consumer		(546	)	(14.14)%							(1,395	)	(29.61)%
Gross loans		(17,540	)	(1.20)%							(41,331	)	(2.79)%
Allowance for credit losses		600		(3.92)%							700		(4.55)%
Loans, net	$	(16,940	)	(1.17)%						$	(40,631	)	(2.77)%

Memo items:
Residential mortgage loans serviced for others	$	(4,741	)	(0.77)%						$	(22,584	)	(3.58)%

The following table presents historical loan balances by portfolio segment as of:

	9/30/2024		6/30/2024		3/31/2024		12/31/2023		9/30/2023
Loans collectively evaluated
Commercial and industrial	$	102,523	$	113,254	$	112,542	$	115,665	$	124,860
Commercial real estate		854,038		864,026		867,270		870,524		874,701
Residential mortgage		416,864		416,130		423,881		429,109		428,927
Home equity		55,416		53,056		48,388		48,136		46,898
Consumer		3,325		3,862		4,093		4,473		4,711
Subtotal		1,432,166		1,450,328		1,456,174		1,467,907		1,480,097
Loans individually evaluated
Commercial and industrial		6,665		7,077		2,230		2,424		470
Commercial real estate		1,232		174		—		169		169
Residential mortgage		2,276		2,273		2,881		2,727		2,813
Home equity		48		77		180		244		171
Consumer		2		—		—		—		—
Subtotal		10,223		9,601		5,291		5,564		3,623
Gross Loans	$	1,442,389	$	1,459,929	$	1,461,465	$	1,473,471	$	1,483,720

The following table presents historical allowance for credit losses allocations by portfolio segment as of:

	9/30/2024		6/30/2024		3/31/2024		12/31/2023		9/30/2023
Allowance for credit losses for collectively evaluated loans
Commercial and industrial	$	1,436	$	1,434	$	1,300	$	1,407	$	1,362
Commercial real estate		8,347		8,903		8,359		8,467		8,703
Residential mortgage		4,131		4,133		4,202		4,409		4,439
Home equity		348		327		305		321		315
Consumer		51		80		38		44		36
Unallocated		—		—		670		355		294
Subtotal		14,313		14,877		14,874		15,003		15,149
Allowance for credit losses for individually evaluated loans
Commercial and industrial		385		423		423		363		248
Commercial real estate		—		—		—		—		—
Residential mortgage		—		—		3		34		3
Home equity		—		—		—		—		—
Consumer		2		—		—		—		—
Unallocated		—		—		—		—		—
Subtotal		387		423		426		397		251
Allowance for credit losses	$	14,700	$	15,300	$	15,300	$	15,400	$	15,400

Commercial and industrial	$	1,784	$	1,857	$	1,723	$	1,770	$	1,610
Commercial real estate		8,347		8,903		8,359		8,467		8,703
Residential mortgage		4,131		4,133		4,205		4,443		4,442
Home equity		348		327		305		321		315
Consumer		53		80		38		44		36
Unallocated		—		—		670		355		294
Allowance for credit losses	$	14,700	$	15,300	$	15,300	$	15,400	$	15,400

Loan concentration analysis

As a result of current economic conditions, there continues to be a heightened focus in the financial industry for non-owner occupied commercial real estate loans, most specifically retail and office space industries. While we continue to monitor various industries that have been impacted by the pandemic, we also continue to monitor the effects of inflation, supply chain disruption, elevated interest rates, and office space usage associated with an increased remote workforce. The overall credit quality indicators of non-owner occupied commercial real estate loan portfolio have remained strong. Performance is based on debt service coverage ratio, loan to value ratio and payment trends. As of September 30, 2024, there were no delinquencies in the non-owner occupied commercial real estate loan portfolio. We expect the non-owner occupied commercial real estate loan portfolio to experience insignificant growth, if any, in future periods.

Within the net lease and retail strip center non-owner occupied commercial real estate pools, we have exposure to Rite Aid. During the fourth quarter of 2023, Rite Aid, which operates over 2,000 retail pharmacies across 17 states, filed for Chapter 11 bankruptcy protection. During the third quarter of 2024, Rite Aid announced that it successfully emerged from bankruptcy protection and will now operate as a private company. However, all Rite Aid stores in Michigan were closed as part of the company’s restructuring. As a result, one commercial real estate loan was partially charged off and its remaining balance was moved to nonaccrual status during the third quarter of 2024. We continue to actively monitor five remaining loans previously associated with Rite Aid.

With the ongoing pressures on the office sector due to remote work capabilities and less required office space, we continue to monitor the office pool more closely for potential deterioration. It is not expected that there will be much, if any, impact on portfolio performance in this pool in the near future due to existing lease terms, tenant mix, office size, and strong underwriting at origination. Due to current economic uncertainty and the pressures noted above, it is unlikely that we will seek new loan originations in the non-owner occupied office pool in 2024.

Below is a description of each industry pool within the non-owner occupied commercial real estate loan portfolio:

Net lease: Loans in this pool represent national credit tenants (or franchisees of the same) or large regional tenants with excellent credit. These loans are typically single tenant net lease credits with strong debt service coverage ratios and lease terms that extend beyond the maturity of the loan.

Retail strip centers: Loans in this pool represent loans collateralized by retail strip centers. The tenant base within this pool consists primarily of retail space whose average lease periods run between one and ten years. Larger strip centers are usually anchored by a national or regional tenant. Guarantors in this category typically have large liquid reserves.

Office: Loans in this pool represent loans collateralized by non-owner occupied office buildings. The tenant base includes legal and other professional services whose average lease periods run from three to fifteen years.

Special use: Loans in this pool represent loans collateralized by special use buildings, which include hotels, motels, assisted living and nursing homes that are not classified as construction or SBA loans.

Industrial: Loans in this pool represent investment properties used for manufacturing and production.

Medical office: Loans in this pool represent loans collateralized by non-owner occupied medical office buildings. The tenant base includes medical services whose average lease periods run from three to fifteen years.

Self storage: Loans in this pool represent self storage buildings. Loan terms are generally five years or less and the lease terms of the units are typically on a month-to-month basis.

Mixed use: Loans in this pool represent loans collateralized by mixed use real estate. The tenant base within this pool consists primarily of office-retail, office-residential or retail-residential space. The properties are most often purchased by individuals for investment purposes.

Retail: Loans in this pool represent loans collateralized by single tenant retail buildings whose average lease periods run over five years.

The following tables present the composition of current and historical non-owner occupied commercial real estate loans, based on loan collateral, by industry pool:

	9/30/2024			6/30/2024			3/31/2024		12/31/2023			9/30/2023
Net lease	$	137,406		$	141,064		$	147,103	$	149,056		$	160,077
Retail strip centers		106,948			106,631			107,834		98,588			96,567
Office		61,897			62,237			61,657		61,822			62,959
Special use		71,307			71,006			58,278		58,710			57,612
Industrial		23,338			23,107			22,575		28,380			28,906
Medical office		24,551			24,818			25,380		25,842			28,591
Self storage		32,797			32,502			25,660		23,455			21,993
Mixed use		16,829			16,980			17,174		17,335			19,833
Retail		15,183			17,191			12,533		12,981			14,115

Total non-owner occupied commercial real estate loans	$	490,256		$	495,536		$	478,194	$	476,169		$	490,653

	9/30/2024 vs 6/30/2024								9/30/2024 vs 9/30/2023
	Variance								Variance
	Amount			%					Amount			%
Net lease	$	(3,658	)	(2.59)%					$	(22,671	)	(14.16)%
Retail strip centers		317			0.30	%				10,381			10.75	%
Office		(340	)	(0.55)%						(1,062	)	(1.69)%
Special use		301			0.42	%				13,695			23.77	%
Industrial		231			1.00	%				(5,568	)	(19.26)%
Medical office		(267	)	(1.08)%						(4,040	)	(14.13)%
Self storage		295			0.91	%				10,804			49.12	%
Mixed use		(151	)	(0.89)%						(3,004	)	(15.15)%
Retail		(2,008	)	(11.68)%						1,068			7.57	%

Total non-owner occupied commercial real estate loans	$	(5,280	)	(1.07)%					$	(397	)	(0.08)%

The following table presents the average loan size of current and historical non-owner occupied commercial real estate loans, based on loan collateral, by industry pool:

	9/30/2024		6/30/2024		3/31/2024		12/31/2023		9/30/2023
Net lease	$	1,383	$	1,291	$	1,311	$	1,316	$	1,300
Retail strip centers		2,379		2,197		2,231		2,135		2,115
Office		1,370		1,363		1,296		1,297		1,294
Special use		2,612		2,546		2,064		2,079		2,134
Industrial		933		925		941		1,092		1,072
Medical office		1,116		1,128		1,103		1,078		1,145
Self storage		1,923		1,926		1,509		1,380		1,692
Mixed use		1,324		1,334		1,321		1,333		1,240
Retail		407		513		447		461		429

Total non-owner occupied commercial real estate loans	$	1,489	$	1,448	$	1,392	$	1,379	$	1,362

The following table presents current and historical non-owner occupied commercial real estate loans, based on loan collateral, by industry pool as a percentage of gross loans:

	9/30/2024		6/30/2024		3/31/2024		12/31/2023		9/30/2023
Net lease	9.53	%	9.66	%	10.07	%	10.12	%	10.79	%
Retail strip centers	7.41	%	7.30	%	7.38	%	6.69	%	6.51	%
Office	4.29	%	4.26	%	4.22	%	4.20	%	4.24	%
Special use	4.94	%	4.86	%	3.99	%	3.98	%	3.88	%
Industrial	1.62	%	1.58	%	1.54	%	1.93	%	1.95	%
Medical office	1.70	%	1.70	%	1.74	%	1.75	%	1.93	%
Self storage	2.27	%	2.23	%	1.76	%	1.59	%	1.48	%
Mixed use	1.17	%	1.16	%	1.18	%	1.18	%	1.34	%
Retail	1.05	%	1.18	%	0.86	%	0.88	%	0.95	%

Total non-owner occupied commercial real estate loans to gross loans	33.98	%	33.93	%	32.74	%	32.32	%	33.07	%

Asset quality

The following table summarizes our current, past due, and nonaccrual loans as of:

	9/30/2024		6/30/2024		3/31/2024		12/31/2023		9/30/2023
Accruing interest
Current	$	1,428,014	$	1,445,780	$	1,451,432	$	1,463,668	$	1,477,386
Past due 30-89 days		4,152		4,534		4,344		4,239		2,711
Past due 90 days or more		—		14		398		—		—
Total accruing interest		1,432,166		1,450,328		1,456,174		1,467,907		1,480,097
Nonaccrual		10,223		9,601		5,291		5,564		3,623
Total loans	$	1,442,389	$	1,459,929	$	1,461,465	$	1,473,471	$	1,483,720
Total loans past due and in nonaccrual status	$	14,375	$	14,149	$	10,033	$	9,803	$	6,334

The following table summarizes the our nonperforming assets as of:

	9/30/2024		6/30/2024		3/31/2024		12/31/2023		9/30/2023
Nonaccrual loans	$	10,223	$	9,601	$	5,291	$	5,564	$	3,623
Accruing loans past due 90 days or more		—		14		398		—		—
Total nonperforming loans		10,223		9,615		5,689		5,564		3,623
Other real estate owned		293		293		345		597		345
Total nonperforming assets	$	10,516	$	9,908	$	6,034	$	6,161	$	3,968

The following table summarizes our charge-offs, recoveries and allowance for credit losses as of, and for the three-month periods ended:

	9/30/2024		6/30/2024		3/31/2024			12/31/2023			9/30/2023
Total charge-offs	$	1,814	$	814	$	86		$	110		$	16
Total recoveries		11		18		29			300			455
Net charge-offs (recoveries)	$	1,803	$	796	$	57		$	(190	)	$	(439	)
Allowance for credit losses	$	1,203	$	796	$	(43	)	$	(190	)	$	(309	)

During the third quarter of 2024, we partially charged off one commercial real estate loan for $1,443 related to the Rite Aid bankruptcy filing. We believe that the credit characteristics are unique and are not an indication of softening in the remainder of our commercial loan portfolio.

The following table summarizes the our primary asset quality measures as of:

	9/30/2024		6/30/2024		3/31/2024		12/31/2023		9/30/2023
Nonperforming loans to gross loans	0.71	%	0.66	%	0.39	%	0.38	%	0.24	%
Nonperforming assets to total assets	0.58	%	0.56	%	0.34	%	0.35	%	0.23	%
Allowance for credit losses to gross loans	1.02	%	1.05	%	1.05	%	1.05	%	1.04	%
Net charge-offs (recoveries) to QTD average gross loans	0.12	%	0.05	%	—	%	(0.01)%		(0.03)%
Credit loss expense (reversal) to QTD average gross loans	0.08	%	0.05	%	—	%	(0.01)%		(0.02)%

The following table summarizes the average loan size as of:

	9/30/2024		6/30/2024		3/31/2024		12/31/2023		9/30/2023
Commercial and industrial	$	310	$	343	$	326	$	334	$	353
Commercial real estate		901		906		900		905		896
Total commercial loans		740		754		746		752		751
Residential mortgage		235		234		234		236		234
Home equity		58		56		53		53		52
Total residential real estate loans		173		173		174		175		174
Consumer		12		13		13		13		12
Gross loans	$	335	$	337	$	336	$	337	$	335

All other assets

The following tables outline the composition and changes in other assets as of:

	9/30/2024			6/30/2024			3/31/2024		12/31/2023			9/30/2023
Premises and equipment, net	$	13,203		$	13,661		$	14,111	$	14,561		$	14,928
Federal Home Loan Bank stock		9,179			9,179			9,179		9,179			9,179
Corporate owned life insurance		28,129			27,877			27,670		27,466			27,274
Mortgage servicing rights		8,461			8,636			8,680		8,776			8,884
Accrued interest receivable		4,354			4,747			4,869		4,472			4,485
Goodwill		8,853			8,853			8,853		8,853			8,853
Other assets
Core deposit intangibles		400			444			488		533			609
Right-of-use assets		1,062			1,142			1,237		1,333			1,426
Other real estate owned		293			293			345		597			345
Other		4,445			5,971			6,406		6,088			6,691
Total		6,200			7,850			8,476		8,551			9,071
All other assets	$	78,379		$	80,803		$	81,838	$	81,858		$	82,674

	9/30/2024 vs 6/30/2024								9/30/2024 vs 9/30/2023
	Variance								Variance
	Amount			%					Amount			%
Premises and equipment, net	$	(458	)	(3.35)%					$	(1,725	)	(11.56)%
Federal Home Loan Bank stock		—			—	%				—			—	%
Corporate owned life insurance		252			0.90	%				855			3.13	%
Mortgage servicing rights		(175	)	(2.03)%						(423	)	(4.76)%
Accrued interest receivable		(393	)	(8.28)%						(131	)	(2.92)%
Goodwill		—			—	%				—			—	%
Other assets
Core deposit intangibles		(44	)	(9.91)%						(209	)	(34.32)%
Right-of-use assets		(80	)	(7.01)%						(364	)	(25.53)%
Other real estate owned		—			—	%				(52	)	(15.07)%
Other		(1,526	)	(25.56)%						(2,246	)	(33.57)%
Total		(1,650	)	(21.02)%						(2,871	)	(31.65)%
All other assets	$	(2,424	)	(3.00)%					$	(4,295	)	(5.20)%

The annual decrease in premises and equipment was due to depreciation on our existing premises and equipment.

Total deposits

The following tables outline the composition and changes in the deposit portfolio as of:

	9/30/2024			6/30/2024			3/31/2024		12/31/2023			9/30/2023
Noninterest bearing demand	$	398,338		$	404,521		$	401,518	$	423,019		$	425,820
Interest bearing
Savings		264,337			262,538			274,922		273,302			293,310
Money market demand		250,715			230,304			229,584		223,827			225,138
NOW
Retail NOW		202,030			205,383			203,614		178,892			198,271
Brokered NOW		—			—			—		—			—

Total NOW Accounts		202,030			205,383			203,614		178,892			198,271
Time deposits
Other time deposits		294,862			264,009			268,466		234,838			198,509
Brokered time deposits		60,304			60,304			60,304		60,304			60,251
Internet time deposits		—			—			—		—			498

Total time deposits		355,166			324,313			328,770		295,142			259,258

Total deposits	$	1,470,586		$	1,427,059		$	1,438,408	$	1,394,182		$	1,401,797

	9/30/2024 vs 6/30/2024								9/30/2024 vs 9/30/2023
	Variance								Variance
	Amount			%					Amount			%
Noninterest bearing demand	$	(6,183	)	(1.53)%					$	(27,482	)	(6.45)%
Interest bearing
Savings		1,799			0.69	%				(28,973	)	(9.88)%
Money market demand		20,411			8.86	%				25,577			11.36	%
NOW
Retail NOW		(3,353	)	(1.63)%						3,759			1.90	%
Brokered NOW		—			—	%				—			—	%

Total NOW Accounts		(3,353	)	(1.63)%						3,759			1.90	%
Time deposits
Other time deposits		30,853			11.69	%				96,353			48.54	%
Brokered time deposits		—			—	%				53			0.09	%
Internet time deposits		—			—	%				(498	)	(100.00)%

Total time deposits		30,853			9.51	%				95,908			36.99	%

Total deposits	$	43,527			3.05	%			$	68,789			4.91	%

Between March 2022 and July 2023, the FOMC raised its target federal funds rate 11 times, from a target range of 0.00-0.25% to 5.25-5.50%, or 525 basis points, in order to combat rising inflation. This rapid increase in interest rates led to significant competition amongst financial institutions for deposits. In September 2024, the FOMC lowered the target federal funds rate 50 basis points to a target range of 4.75-5.00%. Due to the overall uncertainty regarding potential rate changes in the future, customers have not sought out long-term funds, leading to a shift in demand to higher-yielding non-maturity deposit accounts as well as short-term time deposits.

Total borrowed funds

The following tables outline the composition and changes in borrowed funds as of:

	9/30/2024		6/30/2024			3/31/2024		12/31/2023			9/30/2023
Federal Home Loan Bank borrowings	$	160,000	$	160,000		$	160,000	$	180,000		$	180,000
Subordinated debentures		14,000		14,000			14,000		14,000			14,000
Other borrowings		5,970		4,397			4,500		4,500			7,050
Total borrowed funds	$	179,970	$	178,397		$	178,500	$	198,500		$	201,050

	9/30/2024 vs 6/30/2024							9/30/2024 vs 9/30/2023
	Variance							Variance
	Amount		%					Amount			%
Federal Home Loan Bank borrowings	$	—		—	%			$	(20,000	)	(11.11)%
Subordinated debentures		—		—	%				—			—	%
Other borrowings		1,573		35.77	%				(1,080	)	(15.32)%
Total borrowed funds	$	1,573		0.88	%			$	(21,080	)	(10.48)%

We utilize a mix of borrowed funds and organic deposit growth to fund loan demand. As loan growth has slowed in recent periods, our reliance on FHLB advances has declined.

Wholesale funding sources

Although we have been successful at growing market deposits, we utilize wholesale funding sources when necessary to fill gaps when asset growth outpaces deposit growth. Our wholesale funding sources include Federal Home Loan Bank borrowings, correspondent Fed Funds lines and brokered deposits. Although wholesale funding sources are typically more expensive than core deposits, they are an integral part of our funding.

The following tables outline the composition and changes in wholesale funding sources as of:

	9/30/2024		6/30/2024			3/31/2024		12/31/2023			9/30/2023
Federal Home Loan Bank borrowings	$	160,000	$	160,000		$	160,000	$	180,000		$	180,000
Subordinated debentures		14,000		14,000			14,000		14,000			14,000
Other borrowings		5,970		4,397			4,500		4,500			7,050
Brokered NOW accounts		—		—			—		—			—
Brokered time deposits		60,304		60,304			60,304		60,304			60,251
Internet time deposits		—		—			—		—			498
Total wholesale funds	$	240,274	$	238,701		$	238,804	$	258,804		$	261,799

	9/30/2024 vs 6/30/2024							9/30/2024 vs 9/30/2023
	Variance							Variance
	Amount		%					Amount			%
Federal Home Loan Bank borrowings	$	—		—	%				(20,000	)	(11.11)%
Subordinated debentures		—		—	%				—			—	%
Other borrowings		1,573		35.77	%				(1,080	)	(15.32)%
Brokered NOW accounts		—	N/A						—		N/A
Brokered time deposits		—		—	%				53			0.09	%
Internet time deposits		—	N/A						(498	)	(100.00)%
Total wholesale funds	$	1,573		0.66	%			$	(21,525	)	(8.22)%

Accrued interest payable and other liabilities

Accrued interest payable and other liabilities includes accrued interest payable, federal income taxes payable, deferred federal income taxes payable, and all other liabilities (none of which are individually significant).

Total shareholders’ equity

We are considered a “well-capitalized” institution, as our capital ratios exceed the minimum designated standards necessary in accordance with Basel III guidelines. As of September 30, 2024, the Bank’s total capital ratio was 12.78%, tier 1 capital ratio was 11.72%, and tier 1 leverage ratio was 9.02%. The minimum requirements to be considered well-capitalized are a total capital ratio of 10.00%, tier 1 capital ratio of 8.00%, and tier 1 leverage ratio of 5.00%. While we continue to be considered well-capitalized, we are focused on enhancing our capital ratios through earnings of the Bank as well as asset growth moderation strategies in 2024.

The following tables outline the composition and changes in shareholders’ equity as of:

	9/30/2024			6/30/2024			3/31/2024			12/31/2023			9/30/2023
Common stock	$	74,826		$	74,690		$	74,555		$	74,230		$	74,118
Retained earnings		78,467			78,094			76,607			74,309			70,972
Accumulated other comprehensive (loss) income		(6,895	)		(9,483	)		(10,088	)		(9,837	)		(12,188	)
Total shareholders’ equity	$	146,398		$	143,301		$	141,074		$	138,702		$	132,902

	9/30/2024 vs 6/30/2024									9/30/2024 vs 9/30/2023
	Variance									Variance
	Amount			%						Amount			%
Common stock	$	136			0.18	%				$	708			0.96	%
Retained earnings		373			0.48	%					7,495			10.56	%
Accumulated other comprehensive (loss) income		2,588		(27.29)%							5,293		(43.43)%
Total shareholders’ equity	$	3,097			2.16	%				$	13,496			10.15	%

The Board of Directors has authorized the repurchase of up to $10,000 of common stock. As of September 30, 2024, we had $1,393 of common stock available to repurchase through the program. We did not execute any repurchases of our common stock during 2024.

Stock Performance

The following table compares the cumulative total shareholder return on our common stock for the year-to-date, 1 year, 3 year, and 5 year periods ended September 30, 2024. The National OTC Peer Group was developed by selecting all OTC traded bank holding companies with total assets between $1 billion and $3 billion as of 03/31/2024 that had a quoted stock price on Bloomberg. The Midwest / Great Lakes OTC Peer Group represents those institutions included in the National OTC Peer Group that are headquartered in Illinois, Indiana, Michigan, Ohio, Pennsylvania, and Wisconsin.

	# in Peer Group	YTD		1 Year		3 Year		5 Year
Fentura Financial, Inc. (OTCQX:FETM)		45.40	%	67.28	%	59.12	%	100.80	%

National OTC Peers	43	(1.01)%		(3.49)%		2.11	%	8.44	%
Fentura Ranking out of 44		1		1		4		4

Midwest / Great Lakes OTC Peers	17	(1.97)%		(5.16)%		(1.63)%		1.35	%
Fentura Ranking out of 18		1		1		1		1

Abbreviations and Acronyms

ABA: American Bankers Association	FTE: Fully taxable equivalent
ACH: Automated Clearing House	GAAP: Generally Accepted Accounting Principles
ACL: Allowance for credit losses	HFS: Held-for-sale
AFS: Available-for-sale	HTM: Held-to-maturity
AIR: Accrued interest receivable	HFS: Held-for-sale
AOCI: Accumulated other comprehensive income	HTM: Held-to-maturity
ARRC: Alternative Reference Rates Committee	IRA: Individual retirement account
ASC: Accounting Standards Codification	ITM: Interactive Teller Machine
ASU: Accounting Standards Update	LIBOR: London Interbank Offered Rate
ATM: Automated teller machine	MSR: Mortgage servicing rights
CDI: Core deposit intangible	N/M: Not meaningful
CET1: Common equity tier 1	NASDAQ: National Association of Securities Dealers Automated Quotations
COLI: Corporate owned life insurance	NOW: Negotiable order of withdrawal
DRIP: Dividend Reinvestment Plan	NSF: Non-sufficient funds
EPS: Earnings Per Common Share	OCI: Other comprehensive income
ESOP: Employee Stock Ownership Plan	OIS: Overnight Index Swap
FASB: Financial Accounting Standards Board	OREO: Other real estate owned
FDIC: Federal Deposit Insurance Corporation	OTTI: Other-than-temporary impairment
FHLB: Federal Home Loan Bank	QTD: Quarter-to-date
FHLLC: Fentura Holdings LLC	SAB: Staff Accounting Bulletin
FHLMC: Federal Home Loan Mortgage Corporation	SBA: U.S. Small Business Administration
FNMA: Federal National Mortgage Association	SEC: Securities and Exchange Commission
FOMC: Federal Open Market Committee	SERP: Supplemental Executive Retirement Plan
FRB: Federal Reserve Bank	SOFR: Secured Overnight Funding Rate
FSB: Farmers State Bank of Munith	TLM: Troubled loan modifications

About Fentura Financial, Inc. and The State Bank

Fentura Financial, Inc. is the holding company for The State Bank. It was formed in 1987 and is traded on the OTCQX exchange under the symbol FETM, and has been recognized as one of the Top 50 performing stocks on that exchange.

The State Bank is a 5-Star Bauer Financial rated commercial, retail and trust bank headquartered in Fenton, Michigan. It currently operates 20 full-service offices and one loan production center serving Bay, Genesee, Ingham, Jackson, Livingston, Oakland, Saginaw, and Shiawassee counties. The State Bank believes in the potential of banking to help create better lives, better businesses, and better communities, and works to achieve this through its full array of consumer, mortgage, SBA, commercial and wealth management banking and advisory services, together with philanthropic and volunteer support to organizations and groups within the communities it serves. More information can be found at www.thestatebank.com or www.fentura.com.

Cautionary Statement: This press release contains certain forward-looking statements that involve risks and uncertainties. Forward-looking statements include, but are not limited to, statements concerning future growth in earning assets and net income. Such statements are subject to certain risks and uncertainties which could cause actual results to differ materially from those expressed or implied by such forward-looking statements, including, but not limited to, economic, competitive, governmental and technological factors affecting the Company’s operations, markets, products, services, interest rates and fees for services. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.

Contacts:	Ronald L. Justice	Aaron D. Wirsing
	President & CEO	Chief Financial Officer
	Fentura Financial, Inc.	Fentura Financial, Inc.
	810.714.3902	810.714.3925
	ron.justice@thestatebank.com	aaron.wirsing@thestatebank.com

The MIL Network –

January 25, 2025

Category: Finance

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