Category: Intelligence Agencies

MIL-OSI Security: Louisiana man to spend nearly two decades in prison for sex trafficking runaway child

Source: Office of United States Attorneys

HOUSTON – A 39-year-old resident of Shreveport, Louisiana, has been sentenced for transportation of a child to engage in criminal sexual activity and being a felon in possession of a firearm, announced Acting U.S. Attorney Jennifer B. Lowery.

Isiah Lee Campbell Jr. pleaded guilty July 26, 2024.

Senior U.S. District Judge Sim Lake has now ordered Campbell to serve 235 months in federal prison to be immediately followed by 10 years of supervised release.

During a three-week span in 2019 over the course of several different trips, Campbell drove the then 16-year-old victim from Louisiana to Houston to engage in commercial sex with adult men. Campbell also posted the victim on a website advertising prostitution.

Law enforcement stopped Campbell in Harris County driving a reported stolen vehicle during the early morning hours of June 6, 2019. They found a handgun under Campbell’s seat. The victim was a passenger in the car whom authorities identified as a runaway child from Lousiana.

She described how Campbell threatened to kill her so that she would continue to engage in commercial sex at his direction. Campbell took all the money that the victim earned and also sexually assaulted her several times.

Campbell will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

FBI and Precinct 4 Harris County Constable’s Office conducted the investigation with the assistance of the Harris County District Attorney’s Office. Assistant U.S. Attorney Stephanie Bauman prosecuted the case.

MIL Security OSI –

January 25, 2025
MIL-OSI Security: Man Sentenced to Over 17 Years in Prison for Shooting at Louisville Mayor

Source: Office of United States Attorneys

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

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

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

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

There is no parole in the federal system.

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

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

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MIL Security OSI –

January 25, 2025
MIL-OSI Security: James C. Thompson Sentenced To Twenty Years For Transportation Of A Minor In Interstate Commerce With The Intent To Engage In Sexual Activity

Source: Office of United States Attorneys

CHATTANOOGA, Tenn. – On January 24, 2025, James C. Thompson, 72, formerly of Lookout Mountain, Tennessee, was sentenced to 240 months by the Honorable Travis R. McDonough, District Court Judge, in the United States District Court for the Eastern District of Tennessee at Chattanooga, Tennessee. Thompson was also ordered to pay a $250,000 fine and to serve three years on supervised release. In addition, Thompson will be required to register with state sex offender registries and comply with special sex offender conditions during his supervised release.

As part of the plea agreement filed with the court, Thompson agreed to plead guilty to an information charging him with four counts of transportation of a minor in interstate commerce with the intent to engage in sexual activity in violation of 18 U.S.C. § 2423(a).

According to court filed documents, in 2000, Thompson traveled on separate occasions with three different boys and sexually molested them. Thompson was 48 years old at the time and the young boys were less than 18 years old. Thompson drove them from the community where they lived, Lookout Mountain, Tennessee, to different out-of-state locations. When Thompson’s conduct was discovered, an agent with the Federal Bureau of Investigation confronted Thompson and he confessed.

U.S. Attorney Francis M. Hamilton III, of the Eastern District of Tennessee and Federal Bureau of Investigation (FBI) Special Agent in Charge Joseph E. Carrico, made the announcement.

The criminal indictment was the result of an investigation by the Jackson County Alabama Sheriff’s Office and the FBI. This investigation was led by FBI Special Agent Samuel Moore.

Assistant United States Attorney James T. Brooks and Special Assistant United States Attorney Charlie Minor represented the United States.

This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006, by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC 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 PSC, please visit http://www.justice.gov/psc.

For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab “resources.”

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MIL Security OSI –

January 25, 2025

MIL-OSI Europe: Minutes – Thursday, 23 January 2025 – Strasbourg – Final edition

Source: European Parliament

PV-10-2025-01-23

iPlPv_Sit

Minutes

Thursday, 23 January 2025 – Strasbourg

Abbreviations and symbols

+	adopted
–	rejected
↓	lapsed
W	withdrawn
RCV	roll-call votes
EV	electronic vote
SEC	secret ballot
split	split vote
sep	separate vote
am	amendment
CA	compromise amendment
CP	corresponding part
D	deleting amendment
=	identical amendments
§	paragraph

IN THE CHAIR: Younous OMARJEE
Vice-President

1. Opening of the sitting

The sitting opened at 09:01.

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

Commission statement: Combating Desertification: 16th session of the Conference of the Parties (COP16) of the United Nations Convention (2025/3018(RSP))

Jessika Roswall (Member of the Commission) made the statement.

The following spoke: Carmen Crespo Díaz, on behalf of the PPE Group, Marta Temido, on behalf of the S&D Group, Julien Leonardelli, on behalf of the PfE Group, Francesco Ventola, on behalf of the ECR Group, Martin Hojsík, on behalf of the Renew Group, Pär Holmgren, on behalf of the Verts/ALE Group, Catarina Martins, on behalf of The Left Group, Zsuzsanna Borvendég, on behalf of the ESN Group, Christine Schneider, Sakis Arnaoutoglou, Mireia Borrás Pabón, Laurence Trochu, Billy Kelleher, Kai Tegethoff, João Oliveira, Daniel Buda, Maria Grapini, Mathilde Androuët, Marie Toussaint, Valentina Palmisano, Salvatore De Meo, Thomas Bajada, France Jamet, Vicent Marzà Ibáñez, who also answered a blue-card question from João Oliveira, Sebastian Everding, who also answered a blue-card question from Sander Smit, Gabriella Gerzsenyi, César Luena, who also answered a blue-card question from Carmen Crespo Díaz, Jutta Paulus, who also answered a blue-card question from Maria Grapini, Nikolas Farantouris, Borja Giménez Larraz, Camilla Laureti, Marco Falcone, who also answered a blue-card question from Kai Tegethoff, Leire Pajín, Manuela Ripa, Jean-Marc Germain, Dan-Ştefan Motreanu, Stefano Bonaccini and Ştefan Muşoiu.

The following spoke under the catch-the-eye procedure: Grzegorz Braun, Hélder Sousa Silva and Seán Kelly.

The following spoke: Jessika Roswall.

The debate closed.

(The sitting was suspended for a few moments.)

IN THE CHAIR: Christel SCHALDEMOSE
Vice-President

3. Resumption of the sitting

The sitting resumed at 10:29.

4. Cryptocurrencies – need for global standards (debate)

Commission statement: Cryptocurrencies – need for global standards (2025/2514(RSP))

Magnus Brunner (Member of the Commission) made the statement.

The following spoke: Markus Ferber, on behalf of the PPE Group, Jonás Fernández, on behalf of the S&D Group, Pierre Pimpie, on behalf of the PfE Group, Marlena Maląg, on behalf of the ECR Group, Stéphanie Yon-Courtin, on behalf of the Renew Group, Rasmus Andresen, on behalf of the Verts/ALE Group (the President reminded the speaker of the rules on conduct), Pasquale Tridico, on behalf of The Left Group, René Aust, on behalf of the ESN Group, Regina Doherty, Eero Heinäluoma, Aleksandar Nikolic, Guillaume Peltier, Gilles Boyer, Damian Boeselager, Catarina Martins, Stanislav Stoyanov, Kateřina Konečná, Kinga Kollár, Aurore Lalucq, Mathilde Androuët, Adrian-George Axinia, Cynthia Ní Mhurchú, Giuseppe Antoci, Marcin Sypniewski, Luis-Vicențiu Lazarus, Lídia Pereira (the President provided some clarifications on the blue-card procedure), Nikos Papandreou, who also answered a blue-card question from Diana Iovanovici Şoşoacă, Angéline Furet, Ondřej Krutílek, Michalis Hadjipantela, Adnan Dibrani, Diego Solier, Andrey Kovatchev, Waldemar Buda, Caterina Chinnici and Seán Kelly.

The following spoke under the catch-the-eye procedure: Niels Geuking, Maria Grapini, Alexander Jungbluth, Grzegorz Braun, Vytenis Povilas Andriukaitis and Diana Iovanovici Şoşoacă.

The following spoke: Magnus Brunner.

The debate closed.

(The sitting was suspended at 11:48.)

IN THE CHAIR: Sabine VERHEYEN
Vice-President

5. Resumption of the sitting

The sitting resumed at 11:59.

6. Composition of new committees

Following the creation of the standing committees on security and defence and on public health, and the creation of the special committees on the European Democracy Shield and on the housing crisis in the European Union, the President had received nominations for membership of these new standing and special committees from the political groups and the non-attached Members, in accordance with Rules 212 and 213.

The decisions took effect as of that day.

The lists of Members nominated to form these committees are annexed to these minutes (minutes of 23.1.2025 Annex 1).

7. Composition of committees and delegations

The Renew Group and non-attached Members had notified the President of the following decisions changing the composition of committees:

– ITRE Committee: Oihane Agirregoitia Martínez to replace Barry Andrews, Elena Yoncheva

– REGI Committee: Elsi Katainen

– LIBE Committee: Raquel García Hermida-Van Der Walle

– PETI Committee: Cynthia Ní Mhurchú and Eugen Tomac were no longer members, Taner Kabilov

The decisions took effect as of that day.

⁂

The following spoke: Jordan Bardella, Carlo Fidanza and Patryk Jaki on points of order (the President cut off the speakers as their remarks did not constitute points of order).

8. Voting time

For detailed results of the votes, see also ‘Results of votes’ and ‘Results of roll-call votes’.

8.2. Systematic repression of human rights in Iran, notably the cases of Pakhshan Azizi and Wrisha Moradi, and the taking of EU citizens as hostages (vote)

Motions for resolutions RC-B10-0066/2025 (minutes of 23.1.2025, item I), B10-0063/2025, B10-0066/2025, B10-0067/2025, B10-0073/2025, B10-0082/2025, B10-0085/2025 and B10-0086/2025 (minutes of 22.1.2025, item 1) (2025/2511(RSP))

The debate had taken place on 22 January 2025 (minutes of 22.1.2025, item 16.2).

(Majority of the votes cast)

JOINT MOTION FOR A RESOLUTION

Adopted (P10_TA(2025)0004)

(Motions for resolutions B10-0063/2025 and B10-0067/2025 fell.)

Detailed voting results

9. Resumption of the sitting

The sitting resumed at 15:00.

10. Approval of the minutes of the previous sitting

The minutes of the previous sitting were approved.

11. Major interpellations (debate)

Major interpellation for written answer with debate (G-001002/2024) submitted by Charlie Weimers, Sebastian Tynkkynen, Kristoffer Storm, Jaak Madison, Carlo Fidanza, Adam Bielan, Alexandr Vondra, Patryk Jaki, Johan Van Overtveldt, Roberts Zīle, Emmanouil Fragkos, Georgiana Teodorescu, Geadis Geadi, Marion Maréchal, Ivaylo Valchev, Kosma Złotowski, Mariusz Kamiński, Maciej Wąsik, Dick Erixon, Joachim Stanisław Brudziński, Beatrice Timgren, Nicolas Bay, Jadwiga Wiśniewska, Ondřej Krutílek, Guillaume Peltier, Michał Dworczyk, Laurence Trochu, Şerban-Dimitrie Sturdza, Tobiasz Bocheński, Gheorghe Piperea, on behalf of the ECR Group, to the Commission: EU funding of physical border protection structures such as walls, fences or other barriers at the external border (B10-0001/2025)

Jaak Madison moved the major interpellation.

Magnus Brunner (Member of the Commission) answered the major interpellation.

The following spoke: Lena Düpont, on behalf of the PPE Group, Ana Catarina Mendes, on behalf of the S&D Group, András László, on behalf of the PfE Group, Joachim Stanisław Brudziński, on behalf of the ECR Group, Fabienne Keller, on behalf of the Renew Group, Mélissa Camara, on behalf of the Verts/ALE Group, Christine Anderson, on behalf of the ESN Group, Fredis Beleris, Murielle Laurent, France Jamet and Riho Terras.

The following spoke under the catch-the-eye procedure: Kinga Kollár, Bogdan Rzońca and Siegbert Frank Droese.

The following spoke: Magnus Brunner.

The debate closed.

12. Explanations of vote

Written explanations of vote

Explanations of vote submitted in writing under Rule 201 appear on the Members’ pages on Parliament’s website.

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

In accordance with Rule 208(3), the minutes of the sitting would be put to the House for approval at the beginning of the afternoon of the sitting on Monday, 10 February 2025.

With Parliament’s agreement, the texts adopted during the part-session would be forwarded to their respective addressees without delay.

14. Dates of forthcoming sittings

The next sitting would be held on 29 January 2025.

15. Closure of the sitting

The sitting closed at 15:41.

16. Adjournment of the session

The session of the European Parliament was adjourned.

Alessandro Chiocchetti	Roberta Metsola
Secretary-General	President

LIST OF DOCUMENTS SERVING AS A BASIS FOR THE DEBATES AND DECISIONS OF PARLIAMENT

I. Motions for resolutions tabled

Case of Jean-Jacques Wondo in the Democratic Republic of the Congo

Joint motion for a resolution tabled under Rule 150(5) and Rule 136(4):

on the case of Jean-Jacques Wondo in the Democratic Republic of the Congo (2025/2510(RSP)) (RC-B10-0069/2025)
(replacing motions for resolutions B10-0069/2025, B10-0072/2025, B10-0078/2025, B10-0081/2025 and B10-0084/2025)
Sebastião Bugalho, Wouter Beke, Isabel Wiseler-Lima, Michael Gahler, Luděk Niedermayer, Christophe Gomart, Antonio López-Istúriz White, Danuše Nerudová, Davor Ivo Stier, Michał Wawrykiewicz, Jessica Polfjärd, Tomáš Zdechovský, Andrey Kovatchev, Inese Vaidere
on behalf of the PPE Group
Yannis Maniatis, Francisco Assis, Elio Di Rupo
on behalf of the S&D Group
Waldemar Tomaszewski, Joachim Stanisław Brudziński, Sebastian Tynkkynen
on behalf of the ECR Group
Bernard Guetta, Petras Auštrevičius, Oihane Agirregoitia Martínez, Malik Azmani, Dan Barna, Benoit Cassart, Olivier Chastel, Svenja Hahn, Karin Karlsbro, Ľubica Karvašová, Ilhan Kyuchyuk, Jan-Christoph Oetjen, Urmas Paet, Marie-Agnes Strack-Zimmermann, Hilde Vautmans, Lucia Yar
on behalf of the Renew Group
Catarina Vieira
on behalf of the Verts/ALE Group

Systematic repression of human rights in Iran, notably the cases of Pakhshan Azizi and Wrisha Moradi, and the taking of EU citizens as hostages

Joint motion for a resolution tabled under Rule 150(5) and Rule 136(4):

on the systematic repression of human rights in Iran, notably the cases of Pakhshan Azizi and Wrisha Moradi, and the taking of EU citizens as hostages (2025/2511(RSP)) (RC-B10-0066/2025)
(replacing motions for resolutions B10-0066/2025, B10-0073/2025, B10-0082/2025, B10-0085/2025 and B10-0086/2025)
Sebastião Bugalho, Tomáš Zdechovský, Loucas Fourlas, Isabel Wiseler-Lima, David McAllister, Michael Gahler, Željana Zovko, Christophe Gomart, Isabel Benjumea Benjumea, Javier Zarzalejos, Luděk Niedermayer, Wouter Beke, Davor Ivo Stier, Michał Wawrykiewicz, Jessica Polfjärd, Danuše Nerudová, Andrey Kovatchev, Inese Vaidere
on behalf of the PPE Group
Yannis Maniatis, Francisco Assis, Evin Incir, Chloé Ridel, Daniel Attard, Alessandra Moretti
on behalf of the S&D Group
Rihards Kols, Mariusz Kamiński, Sebastian Tynkkynen, Carlo Fidanza, Reinis Pozņaks, Aurelijus Veryga, Ondřej Krutílek, Veronika Vrecionová, Alberico Gambino, Joachim Stanisław Brudziński, Dick Erixon, Beatrice Timgren, Waldemar Tomaszewski, Alexandr Vondra, Marion Maréchal, Małgorzata Gosiewska, Carlo Ciccioli, Charlie Weimers
on behalf of the ECR Group
Petras Auštrevičius, Oihane Agirregoitia Martínez, Malik Azmani, Dan Barna, Benoit Cassart, Olivier Chastel, Veronika Cifrová Ostrihoňová, Bart Groothuis, Bernard Guetta, Svenja Hahn, Karin Karlsbro, Ľubica Karvašová, Ilhan Kyuchyuk, Nathalie Loiseau, Jan-Christoph Oetjen, Urmas Paet, Marie-Agnes Strack-Zimmermann, Hilde Vautmans, Sophie Wilmès, Lucia Yar
on behalf of the Renew Group
Hannah Neumann
on behalf of the Verts/ALE Group
Per Clausen, Hanna Gedin, Jonas Sjöstedt

Case of Boualem Sansal in Algeria

Joint motion for a resolution tabled under Rule 150(5) and Rule 136(4):

on the case of Boualem Sansal in Algeria (2025/2512(RSP)) (RC-B10-0087/2025)
(replacing motions for resolutions B10-0087/2025, B10-0089/2025, B10-0091/2025, B10-0092/2025 and B10-0093/2025)
Sebastião Bugalho, Christophe Gomart, Isabel Wiseler-Lima, Michael Gahler, Luděk Niedermayer, Wouter Beke, Davor Ivo Stier, Michał Wawrykiewicz, Jessica Polfjärd, Tomáš Zdechovský, Andrey Kovatchev, Inese Vaidere
on behalf of the PPE Group
Yannis Maniatis, Francisco Assis, Marta Temido
on behalf of the S&D Group
Adam Bielan, Ondřej Krutílek, Veronika Vrecionová, Joachim Stanisław Brudziński, Waldemar Tomaszewski, Alexandr Vondra, Marion Maréchal, Sebastian Tynkkynen, Małgorzata Gosiewska
on behalf of the ECR Group
Helmut Brandstätter, Petras Auštrevičius, Malik Azmani, Dan Barna, Benoit Cassart, Olivier Chastel, Bernard Guetta, Ilhan Kyuchyuk, Nathalie Loiseau, Urmas Paet, Lucia Yar
on behalf of the Renew Group
Leoluca Orlando
on behalf of the Verts/ALE Group

Russia’s disinformation and historical falsification to justify its war of aggression against Ukraine

Motions for resolutions tabled under Rule 136(2) to wind up the debate:

on Russia’s disinformation and historical falsification to justify its war of aggression against Ukraine (2024/2988(RSP)) (B10-0074/2025)
Yannis Maniatis, Nacho Sánchez Amor, Thijs Reuten, Raphaël Glucksmann
on behalf of the S&D Group

on Russia’s disinformation and historical falsification to justify its war of aggression against Ukraine (2024/2988(RSP)) (B10-0075/2025)
Rasa Juknevičienė, Michael Gahler, Andrzej Halicki, Sebastião Bugalho, David McAllister, Siegfried Mureşan, Željana Zovko, Isabel Wiseler-Lima, Nicolás Pascual de la Parte, Mika Aaltola, Krzysztof Brejza, Daniel Caspary, Sandra Kalniete, Seán Kelly, Ondřej Kolář, Łukasz Kohut, Andrey Kovatchev, Miriam Lexmann, Antonio López-Istúriz White, Danuše Nerudová, Mirosława Nykiel, Ana Miguel Pedro, Paulius Saudargas, Davor Ivo Stier, Michał Szczerba, Alice Teodorescu Måwe, Ingeborg Ter Laak, Matej Tonin, Pekka Toveri, Inese Vaidere, Milan Zver
on behalf of the PPE Group

on Russia’s disinformation and historical falsification to justify its war of aggression against Ukraine (2024/2988(RSP)) (B10-0076/2025)
Sergey Lagodinsky, Hannah Neumann, Markéta Gregorová, Mārtiņš Staķis, Maria Ohisalo, Virginijus Sinkevičius, Villy Søvndal, Nicolae Ştefănuță, Reinier Van Lanschot
on behalf of the Verts/ALE Group

on Russia’s disinformation and historical falsification to justify its war of aggression against Ukraine (2024/2988(RSP)) (B10-0077/2025)
Bernard Guetta, Petras Auštrevičius, Malik Azmani, Dan Barna, Olivier Chastel, Karin Karlsbro, Ľubica Karvašová, Ilhan Kyuchyuk, Michał Kobosko, Jan-Christoph Oetjen, Urmas Paet, Marie-Agnes Strack-Zimmermann, Eugen Tomac, Hilde Vautmans, Sophie Wilmès, Lucia Yar, Dainius Žalimas
on behalf of the Renew Group

on Russia’s disinformation and historical falsification to justify its war of aggression against Ukraine (2024/2988(RSP)) (B10-0079/2025)
Adam Bielan, Mariusz Kamiński, Małgorzata Gosiewska, Joachim Stanisław Brudziński, Rihards Kols, Ondřej Krutílek, Jaak Madison, Ivaylo Valchev, Sebastian Tynkkynen, Veronika Vrecionová, Roberts Zīle, Aurelijus Veryga, Maciej Wąsik, Michał Dworczyk, Cristian Terheş, Reinis Pozņaks, Alexandr Vondra
on behalf of the ECR Group

Joint motion for a resolution tabled under Rule 136(2) and (4):

on Russia’s disinformation and historical falsification to justify its war of aggression against Ukraine (2024/2988(RSP)) (RC-B10-0074/2025)
(replacing motions for resolutions B10-0074/2025, B10-0075/2025, B10-0076/2025, B10-0077/2025 and B10-0079/2025)
Rasa Juknevičienė, Michael Gahler, Andrzej Halicki, Sebastião Bugalho, David McAllister, Siegfried Mureşan, Željana Zovko, Isabel Wiseler-Lima, Nicolás Pascual de la Parte, Mika Aaltola, Krzysztof Brejza, Daniel Caspary, Sandra Kalniete, Seán Kelly, Ondřej Kolář, Łukasz Kohut, Andrey Kovatchev, Miriam Lexmann, Antonio López-Istúriz White, Danuše Nerudová, Mirosława Nykiel, Ana Miguel Pedro, Paulius Saudargas, Davor Ivo Stier, Michał Szczerba, Alice Teodorescu Måwe, Ingeborg Ter Laak, Matej Tonin, Pekka Toveri, Inese Vaidere, Milan Zver
on behalf of the PPE Group
Yannis Maniatis, Nacho Sánchez Amor, Thijs Reuten, Raphaël Glucksmann
on behalf of the S&D Group
Adam Bielan, Rihards Kols, Reinis Pozņaks, Jadwiga Wiśniewska, Roberts Zīle, Ondřej Krutílek, Veronika Vrecionová, Jaak Madison, Małgorzata Gosiewska, Cristian Terheş, Maciej Wąsik, Ivaylo Valchev, Aurelijus Veryga, Joachim Stanisław Brudziński
on behalf of the ECR Group
Bernard Guetta, Petras Auštrevičius, Malik Azmani, Dan Barna, Benoit Cassart, Olivier Chastel, Karin Karlsbro, Veronika Cifrová Ostrihoňová, Ľubica Karvašová, Ilhan Kyuchyuk, Michał Kobosko, Nathalie Loiseau, Jan-Christoph Oetjen, Urmas Paet, Marie-Agnes Strack-Zimmermann, Eugen Tomac, Hilde Vautmans, Sophie Wilmès, Lucia Yar, Dainius Žalimas
on behalf of the Renew Group
Sergey Lagodinsky
on behalf of the Verts/ALE Group

Situation in Venezuela following the usurpation of the presidency on 10 January 2025

Motions for resolutions tabled under Rule 136(2) to wind up the debate:

on the situation in Venezuela following the usurpation of the presidency on 10 January 2025 (2025/2519(RSP)) (B10-0064/2025)
Gabriel Mato, Sebastião Bugalho, Davor Ivo Stier
on behalf of the PPE Group

on the situation in Venezuela following the usurpation of the presidency on 10 January 2025 (2025/2519(RSP)) (B10-0068/2025)
Jorge Buxadé Villalba, Hermann Tertsch, Jorge Martín Frías, Silvia Sardone, Nikola Bartůšek, Susanna Ceccardi, Roberto Vannacci, António Tânger Corrêa, Enikő Győri
on behalf of the PfE Group

on the situation in Venezuela following the usurpation of the presidency on 10 January 2025 (2025/2519(RSP)) (B10-0071/2025)
Leire Pajín
on behalf of the S&D Group
Catarina Vieira, Ville Niinistö, Nicolae Ştefănuță
on behalf of the Verts/ALE Group

on the situation in Venezuela following the usurpation of the presidency on 10 January 2025 (2025/2519(RSP)) (B10-0080/2025)
Oihane Agirregoitia Martínez, Petras Auštrevičius, Malik Azmani, Dan Barna, Helmut Brandstätter, Benoit Cassart, Olivier Chastel, João Cotrim De Figueiredo, Valérie Devaux, Karin Karlsbro, Ľubica Karvašová, Ilhan Kyuchyuk, Urmas Paet, Marie-Agnes Strack-Zimmermann, Ana Vasconcelos, Hilde Vautmans, Lucia Yar
on behalf of the Renew Group

on the situation in Venezuela following the usurpation of the presidency on 10 January 2025 (2025/2519(RSP)) (B10-0083/2025)
Carlo Fidanza, Adam Bielan, Mariusz Kamiński, Alberico Gambino, Waldemar Tomaszewski, Joachim Stanisław Brudziński, Diego Solier, Rihards Kols, Ondřej Krutílek, Jaak Madison, Nora Junco García, Şerban-Dimitrie Sturdza, Sebastian Tynkkynen, Veronika Vrecionová, Małgorzata Gosiewska, Jadwiga Wiśniewska, Alexandr Vondra
on behalf of the ECR Group

Joint motion for a resolution tabled under Rule 150(5) and Rule 136(4):

on the situation in Venezuela following the usurpation of the presidency on 10 January 2025 (2025/2519(RSP)) (RC-B10-0064/2025)
(replacing motions for resolutions B10-0064/2025, B10-0080/2025 and B10-0083/2025)
Gabriel Mato, Sebastião Bugalho, Davor Ivo Stier, Francisco José Millán Mon
on behalf of the PPE Group
Carlo Fidanza, Adam Bielan, Mariusz Kamiński, Ivaylo Valchev, Sebastian Tynkkynen, Ondřej Krutílek, Veronika Vrecionová, Rihards Kols, Alexandr Vondra, Małgorzata Gosiewska, Alberico Gambino, Joachim Stanisław Brudziński
on behalf of the ECR Group
Oihane Agirregoitia Martínez, Petras Auštrevičius, Dan Barna, Helmut Brandstätter, Benoit Cassart, Olivier Chastel, Veronika Cifrová Ostrihoňová, João Cotrim De Figueiredo, Karin Karlsbro, Ľubica Karvašová, Ilhan Kyuchyuk, Urmas Paet, Marie-Agnes Strack-Zimmermann, Ana Vasconcelos, Hilde Vautmans, Lucia Yar
on behalf of the Renew Group

II. Decisions to draw up own-initiative reports

Decisions to draw up own-initiative reports (Rule 55)

(Following the Conference of Presidents’ decision of 15 January 2025)

AFCO Committee

– Reform of the European Electoral Act – hurdles to ratification and implementation in the Member States (2025/2028(INI))

– Institutional aspects of the Report on the future of European Competitiveness (Draghi Report) (2025/2013(INI))

– Stock-taking of the European elections 2024 (2025/2012(INI))

AFET Committee

– 2023 and 2024 Commission reports on Ukraine (2025/2026(INI))

– 2023 and 2024 Commission reports on Moldova (2025/2025(INI))

– 2023 and 2024 Commission reports on Georgia (2025/2024(INI))

– 2023 and 2024 Commission reports on Türkiye (2025/2023(INI))

– 2023 and 2024 Commission reports on Serbia (2025/2022(INI))

– 2023 and 2024 Commission reports on North Macedonia (2025/2021(INI))

– 2023 and 2024 Commission reports on Montenegro (2025/2020(INI))

– 2023 and 2024 Commission reports on Kosovo (2025/2019(INI))

– 2023 and 2024 Commission reports on Bosnia and Herzegovina (2025/2018(INI))

– 2023 and 2024 Commission reports on Albania (2025/2017(INI))

DEVE Committee

– Financing for development – ahead of the Fourth International Conference on Financing for Development in Seville (2025/2004(INI))

– Implementation and delivery of the Sustainable Development Goals in view of the 2025 High-Level Political Forum (2025/2014(INI))
(opinion: FEMM)

IMCO Committee

– Implementation and streamlining of EU internal market rules to strengthen the single market (2025/2009(INI))

ITRE Committee

– Future of the EU biotechnology and biomanufacturing sector: leveraging research, boosting innovation and enhancing competitiveness (2025/2008(INI))

– European technological sovereignty and digital infrastructure (2025/2007(INI))

– Electricity grids: the backbone of the EU energy system (2025/2006(INI))

JURI Committee

– Monitoring the application of European Union law in 2023 and 2024 (2025/2016(INI))
(opinion: PETI)

– European Union regulatory fitness and subsidiarity and proportionality – report on Better Law-Making covering 2023 and 2024 (2025/2015(INI))

PECH Committee

– Fisheries management approaches for safeguarding sensitive species, tackling invasive species and benefiting local economies (2025/2011(INI))

– The role of social, economic and environmental standards in safeguarding fair competition for all aquatic food products and improving food security (2025/2010(INI))

PETI Committee

– Deliberations of the Committee on Petitions in 2023 (2025/2027(INI))

(Following the Conference of Presidents’ decision of 19 December 2024)

– The multiannual plan for the Baltic Sea and ways forward (2024/2127(INI))

– The impact of the implementation of the Maritime Spatial Planning Directive 2014/89/EU on fisheries in selected fishing areas and sea basins (2024/2126(INI))

– Decarbonisation and modernisation of EU fisheries, and the development and deployment of fishing gear (2024/2123(INI))

AGRI Committee

– The position of farmers in the agri-food value chain (2024/2122(INI))

ECON Committee

– The role of simple tax rules and tax fragmentation in European competitiveness (2024/2118(INI))

– A coherent tax framework for the EU’s financial sector (2024/2117(INI))

– Facilitating the financing of investments and reforms to boost European competitiveness and creating a Capital Markets Union (Draghi Report) (2024/2116(INI))
(opinion: BUDG)

FEMM Committee

– Gender Equality Strategy 2025 (2024/2125(INI))
(opinion: LIBE)

– Women’s entrepreneurship in rural and island areas and outermost regions (2024/2124(INI))
(opinion: AGRI)

IMCO Committee

– A new legislative framework for products that is fit for the digital and sustainable transition (2024/2119(INI))

REGI Committee

– The role of cohesion policy in supporting the just transition (2024/2121(INI))
(opinion: EMPL)

– The role of cohesion policy investment in resolving the current housing crisis (2024/2120(INI))
(opinion: EMPL)

III. Consent procedure

Reports with a motion for a non-legislative resolution (consent procedure) (Rule 107(5))

(Following notification by the Conference of Committee Chairs on 15 January 2025)

AFET Committee

– Interim report in view of the consent procedure on the Agreement establishing an association between the EU and the Principality of Andorra and the Republic of San Marino (2024/0101R(NLE) – 2024/0101(NLE))
(opinion: ECON, IMCO)

IV. Petitions

Petitions Nos 1427-24 to 1518-24 had been entered in the register on 17 January 2025 and had been forwarded to the committee responsible, in accordance with Rule 232(9) and (10).

The President had, on 17 January 2025, forwarded to the committee responsible, in accordance with Rule 232(15), petitions addressed to the European Parliament by natural or legal persons who were not citizens of the European Union and who did not reside, or have their registered office, in a Member State.

V. Documents received

The following documents had been received from Members:

– Mathilde Androuët, Gerolf Annemans, Jordan Bardella, Nikola Bartůšek, Rachel Blom, Barbara Bonte, Paolo Borchia, Mireia Borrás Pabón, Irmhild Boßdorf, Jaroslav Bžoch, Klara Dostalova, Marieke Ehlers, Dick Erixon, Tomasz Froelich, Petras Gražulis, Branko Grims, Catherine Griset, Enikő Győri, Roman Haider, Fernand Kartheiser, Ondřej Knotek, Vilis Krištopans, Julien Leonardelli, Jorge Martín Frías, Milan Mazurek, Tiago Moreira de Sá, Jana Nagyová, Hans Neuhoff, Julie Rechagneux, Dominik Tarczyński, Hermann Tertsch, Isabella Tovaglieri, António Tânger Corrêa, Milan Uhrík, Tom Vandendriessche, Harald Vilimsky, Ewa Zajączkowska-Hernik and Auke Zijlstra. Motion for a resolution on Dismantling Overregulation and Government Encroachment: reclaiming competitiveness and innovation in the European Union (B10-0214/2024)
referred to committee responsible: JURI
opinion: ITRE

– Pekka Toveri and Sebastian Tynkkynen. Motion for a resolution on restricting the ability of passenger and cargo traffic to enter European Union airspace from Russia (B10-0220/2024)
referred to committee responsible: TRAN
opinion: AFET

– Matthieu Valet. Motion for a resolution on EU policy on Syrian refugees following the overthrow of the Bashar al-Assad regime (B10-0237/2024)
referred to committee responsible: LIBE

– Christine Anderson, Anja Arndt, René Aust, Arno Bausemer, Zsuzsanna Borvendég, Markus Buchheit, Petr Bystron, Elisabeth Dieringer, Siegbert Frank Droese, Marc Jongen, Mary Khan, Sarah Knafo, Maximilian Krah and Jaroslava Pokorná Jermanová. Motion for a resolution on financial and organisational support for Member States to repatriate Syrian nationals (B10-0238/2024)
referred to committee responsible: LIBE

ATTENDANCE REGISTER

Present:

Aaltola Mika, Abadía Jover Maravillas, Adamowicz Magdalena, Aftias Georgios, Agirregoitia Martínez Oihane, Agius Peter, Agius Saliba Alex, Allione Grégory, Al-Sahlani Abir, Anadiotis Nikolaos, Anderson Christine, Andersson Li, Andresen Rasmus, Andrews Barry, Andriukaitis Vytenis Povilas, Androuët Mathilde, Angel Marc, Annemans Gerolf, Antoci Giuseppe, Arias Echeverría Pablo, Arimont Pascal, Arłukowicz Bartosz, Arnaoutoglou Sakis, Arndt Anja, Arvanitis Konstantinos, Asens Llodrà Jaume, Assis Francisco, Attard Daniel, Aubry Manon, Auštrevičius Petras, Axinia Adrian-George, Azmani Malik, Bajada Thomas, Baljeu Jeannette, Ballarín Cereza Laura, Bardella Jordan, Barley Katarina, Barna Dan, Barrena Arza Pernando, Bartulica Stephen Nikola, Bartůšek Nikola, Bausemer Arno, Bay Nicolas, Bay Christophe, Beke Wouter, Beleris Fredis, Bellamy François-Xavier, Benea Adrian-Dragoş, Benifei Brando, Benjumea Benjumea Isabel, Beňová Monika, Berendsen Tom, Berger Stefan, Berg Sibylle, Berlato Sergio, Bernhuber Alexander, Biedroń Robert, Bielan Adam, Bischoff Gabriele, Blaha Ľuboš, Blinkevičiūtė Vilija, Blom Rachel, Bloss Michael, Bocheński Tobiasz, Boeselager Damian, Bogdan Ioan-Rareş, Bonaccini Stefano, Bonte Barbara, Borchia Paolo, Borrás Pabón Mireia, Borvendég Zsuzsanna, Borzan Biljana, Bosanac Gordan, Bosse Stine, Botenga Marc, Boyer Gilles, Boylan Lynn, Brandstätter Helmut, Brasier-Clain Marie-Luce, Braun Grzegorz, Brejza Krzysztof, Bricmont Saskia, Brnjac Nikolina, Brudziński Joachim Stanisław, Bryłka Anna, Buczek Tomasz, Buda Daniel, Buda Waldemar, Budka Borys, Bugalho Sebastião, Buła Andrzej, Burkhardt Delara, Buxadé Villalba Jorge, Bžoch Jaroslav, Camara Mélissa, Canfin Pascal, Carberry Nina, Casa David, Caspary Daniel, Cassart Benoit, Castillo Laurent, del Castillo Vera Pilar, Cavazzini Anna, Cavedagna Stefano, Ceccardi Susanna, Cepeda José, Ceulemans Estelle, Chahim Mohammed, Chaibi Leila, Chastel Olivier, Chinnici Caterina, Christensen Asger, Ciccioli Carlo, Cifrová Ostrihoňová Veronika, Ciriani Alessandro, Cisint Anna Maria, Clausen Per, Clergeau Christophe, Cormand David, Corrado Annalisa, Costanzo Vivien, Cotrim De Figueiredo João, Cowen Barry, Cremer Tobias, Crespo Díaz Carmen, Cristea Andi, Cunha Paulo, Danielsson Johan, Dauchy Marie, Dávid Dóra, David Ivan, Decaro Antonio, de la Hoz Quintano Raúl, Della Valle Danilo, Deloge Valérie, De Masi Fabio, De Meo Salvatore, Demirel Özlem, Deutsch Tamás, Devaux Valérie, Dibrani Adnan, Diepeveen Ton, Dieringer Elisabeth, Dîncu Vasile, Di Rupo Elio, Doherty Regina, Doleschal Christian, Dömötör Csaba, Do Nascimento Cabral Paulo, Donazzan Elena, Dorfmann Herbert, Dostál Ondřej, Droese Siegbert Frank, Düpont Lena, Ecke Matthias, Ehler Christian, Ehlers Marieke, Eriksson Sofie, Erixon Dick, Eroglu Engin, Everding Sebastian, Ezcurra Almansa Alma, Falcone Marco, Farantouris Nikolas, Farreng Laurence, Farský Jan, Ferber Markus, Fernández Jonás, Fidanza Carlo, Fiocchi Pietro, Firmenich Ruth, Fita Claire, Fourlas Loucas, Fourreau Emma, Fragkos Emmanouil, Freund Daniel, Frigout Anne-Sophie, Fritzon Heléne, Froelich Tomasz, Fuglsang Niels, Furet Angéline, Furore Mario, Gahler Michael, Galán Estrella, Gálvez Lina, Gambino Alberico, García Hermida-Van Der Walle Raquel, Garraud Jean-Paul, Gasiuk-Pihowicz Kamila, Geadi Geadis, Gedin Hanna, Geese Alexandra, Geier Jens, Geisel Thomas, Gemma Chiara, Georgiou Giorgos, Gerbrandy Gerben-Jan, Germain Jean-Marc, Gerzsenyi Gabriella, Geuking Niels, Gieseke Jens, Giménez Larraz Borja, Girauta Vidal Juan Carlos, Glavak Sunčana, Glück Andreas, Glucksmann Raphaël, Goerens Charles, Gomart Christophe, Gomes Isilda, Gómez López Sandra, Gonçalves Bruno, Gonçalves Sérgio, González Pons Esteban, Gori Giorgio, Gosiewska Małgorzata, Gotink Dirk, Gozi Sandro, Grapini Maria, Gražulis Petras, Grims Branko, Griset Catherine, Gronkiewicz-Waltz Hanna, Groothuis Bart, Grossmann Elisabeth, Grudler Christophe, Gualmini Elisabetta, Guarda Cristina, Guetta Bernard, Guzenina Maria, Hadjipantela Michalis, Hahn Svenja, Haider Roman, Halicki Andrzej, Hassan Rima, Häusling Martin, Hava Mircea-Gheorghe, Hazekamp Anja, Heide Hannes, Heinäluoma Eero, Henriksson Anna-Maja, Herbst Niclas, Herranz García Esther, Hetman Krzysztof, Hohlmeier Monika, Hojsík Martin, Holmgren Pär, Hölvényi György, Homs Ginel Alicia, Humberto Sérgio, Ijabs Ivars, Imart Céline, Incir Evin, Inselvini Paolo, Iovanovici Şoşoacă Diana, Jalloul Muro Hana, Jamet France, Jerković Romana, Jongen Marc, Joński Dariusz, Joron Virginie, Jouvet Pierre, Joveva Irena, Juknevičienė Rasa, Junco García Nora, Jungbluth Alexander, Kabilov Taner, Kalfon François, Kaljurand Marina, Kalniete Sandra, Kamiński Mariusz, Kanev Radan, Karlsbro Karin, Kartheiser Fernand, Karvašová Ľubica, Katainen Elsi, Kefalogiannis Emmanouil, Kelleher Billy, Keller Fabienne, Kelly Seán, Kemp Martine, Kennes Rudi, Khan Mary, Kobosko Michał, Köhler Stefan, Kohut Łukasz, Kokalari Arba, Kolář Ondřej, Kollár Kinga, Kols Rihards, Konečná Kateřina, Kopacz Ewa, Körner Moritz, Kountoura Elena, Kovatchev Andrey, Krah Maximilian, Krištopans Vilis, Kruis Sebastian, Krutílek Ondřej, Kubín Tomáš, Kuhnke Alice, Kulja András Tivadar, Kulmuni Katri, Kyllönen Merja, Kyuchyuk Ilhan, Lagodinsky Sergey, Lakos Eszter, Lalucq Aurore, Lange Bernd, Langensiepen Katrin, Laššáková Judita, László András, Laurent Murielle, Laureti Camilla, Laykova Rada, Lazarov Ilia, Lazarus Luis-Vicențiu, Le Callennec Isabelle, Leggeri Fabrice, Lenaers Jeroen, Leonardelli Julien, Lewandowski Janusz, Lexmann Miriam, Liese Peter, Lins Norbert, Loiseau Nathalie, Løkkegaard Morten, Lopatka Reinhold, López Javi, López Aguilar Juan Fernando, López-Istúriz White Antonio, Lövin Isabella, Luena César, Łukacijewska Elżbieta Katarzyna, Lupo Giuseppe, McAllister David, Madison Jaak, Magoni Lara, Maij Marit, Maląg Marlena, Manda Claudiu, Mandl Lukas, Maniatis Yannis, Mantovani Mario, Maran Pierfrancesco, Marczułajtis-Walczak Jagna, Mariani Thierry, Marino Ignazio Roberto, Martín Frías Jorge, Martins Catarina, Martusciello Fulvio, Marzà Ibáñez Vicent, Matthieu Sara, Mavrides Costas, Mayer Georg, Mazurek Milan, Mažylis Liudas, McNamara Michael, Mebarek Nora, Mehnert Alexandra, Meleti Eleonora, Mendes Ana Catarina, Mendia Idoia, Mertens Verena, Mesure Marina, Metsola Roberta, Metz Tilly, Mikser Sven, Millán Mon Francisco José, Miranda Paz Ana, Molnár Csaba, Montero Irene, Montserrat Dolors, Morace Carolina, Moreira de Sá Tiago, Moreno Sánchez Javier, Moretti Alessandra, Motreanu Dan-Ştefan, Mularczyk Arkadiusz, Müller Piotr, Mullooly Ciaran, Mureşan Siegfried, Muşoiu Ştefan, Nagyová Jana, Navarrete Rojas Fernando, Negrescu Victor, Nemec Matjaž, Nerudová Danuše, Nesci Denis, Neuhoff Hans, Neumann Hannah, Nevado del Campo Elena, Niebler Angelika, Niedermayer Luděk, Niinistö Ville, Nikolic Aleksandar, Ní Mhurchú Cynthia, Noichl Maria, Nordqvist Rasmus, Novakov Andrey, Nykiel Mirosława, Obajtek Daniel, Ódor Ľudovít, Oetjen Jan-Christoph, Ohisalo Maria, Oliveira João, Olivier Philippe, Omarjee Younous, Ondruš Branislav, Ó Ríordáin Aodhán, Ozdoba Jacek, Paet Urmas, Pajín Leire, Palmisano Valentina, Papadakis Kostas, Papandreou Nikos, Pappas Nikos, Pascual de la Parte Nicolás, Pedro Ana Miguel, Pedulla’ Gaetano, Pellerin-Carlin Thomas, Peltier Guillaume, Penkova Tsvetelina, Pennelle Gilles, Pereira Lídia, Peter-Hansen Kira Marie, Petrov Hristo, Picaro Michele, Picula Tonino, Piera Pascale, Pimpie Pierre, Piperea Gheorghe, de la Pisa Carrión Margarita, Pokorná Jermanová Jaroslava, Polato Daniele, Polfjärd Jessica, Popescu Virgil-Daniel, Pozņaks Reinis, Princi Giusi, Protas Jacek, Pürner Friedrich, Rackete Carola, Radev Emil, Radtke Dennis, Rafowicz Emma, Ratas Jüri, Rechagneux Julie, Regner Evelyn, Repasi René, Repp Sabrina, Ressler Karlo, Reuten Thijs, Riba i Giner Diana, Ricci Matteo, Riehl Nela, Ripa Manuela, Rodrigues André, Ros Sempere Marcos, Roth Neveďalová Katarína, Rougé André, Ruissen Bert-Jan, Ruotolo Sandro, Rzońca Bogdan, Saeidi Arash, Salini Massimiliano, Salis Ilaria, Salla Aura, Sánchez Amor Nacho, Sanchez Julien, Sancho Murillo Elena, Saramo Jussi, Sardone Silvia, Šarec Marjan, Sargiacomo Eric, Satouri Mounir, Saudargas Paulius, Sbai Majdouline, Sberna Antonella, Schaldemose Christel, Schaller-Baross Ernő, Schenk Oliver, Scheuring-Wielgus Joanna, Schieder Andreas, Schilling Lena, Schneider Christine, Schwab Andreas, Scuderi Benedetta, Seekatz Ralf, Sell Alexander, Serrano Sierra Rosa, Serra Sánchez Isabel, Sienkiewicz Bartłomiej, Simon Sven, Singer Christine, Sinkevičius Virginijus, Sippel Birgit, Sjöstedt Jonas, Śmiszek Krzysztof, Smith Anthony, Smit Sander, Sokol Tomislav, Solier Diego, Sommen Liesbet, Sonneborn Martin, Sorel Malika, Sousa Silva Hélder, Søvndal Villy, Squarta Marco, Staķis Mārtiņš, Stancanelli Raffaele, Stier Davor Ivo, Stöteler Sebastiaan, Stoyanov Stanislav, Strack-Zimmermann Marie-Agnes, Strada Cecilia, Streit Joachim, Strik Tineke, Strolenberg Anna, Stürgkh Anna, Sypniewski Marcin, Szczerba Michał, Szekeres Pál, Szydło Beata, Tamburrano Dario, Tânger Corrêa António, Tarquinio Marco, Târziu Claudiu-Richard, Tavares Carla, Tegethoff Kai, Temido Marta, Teodorescu Georgiana, Teodorescu Måwe Alice, Ter Laak Ingeborg, Terras Riho, Thionnet Pierre-Romain, Timgren Beatrice, Tinagli Irene, Tobback Bruno, Tobé Tomas, Tolassy Rody, Tomašič Zala, Tomc Romana, Tonin Matej, Toom Jana, Topo Raffaele, Torselli Francesco, Tosi Flavio, Toussaint Marie, Toveri Pekka, Tridico Pasquale, Trochu Laurence, Tsiodras Dimitris, Tudose Mihai, Tynkkynen Sebastian, Uhrík Milan, Ušakovs Nils, Vaidere Inese, Valchev Ivaylo, Vălean Adina, Valet Matthieu, Van Brempt Kathleen, Van Brug Anouk, van den Berg Brigitte, Vandendriessche Tom, Van Dijck Kris, Van Lanschot Reinier, Van Leeuwen Jessika, Vannacci Roberto, Van Overtveldt Johan, Van Sparrentak Kim, Varaut Alexandre, Vasconcelos Ana, Vasile-Voiculescu Vlad, Vautmans Hilde, Vedrenne Marie-Pierre, Ventola Francesco, Verheyen Sabine, Verougstraete Yvan, Veryga Aurelijus, Vieira Catarina, Vigenin Kristian, Vilimsky Harald, Vincze Loránt, Vind Marianne, Vistisen Anders, Vivaldini Mariateresa, Volgin Petar, von der Schulenburg Michael, Vondra Alexandr, Voss Axel, Vozemberg-Vrionidi Elissavet, Vrecionová Veronika, Vázquez Lázara Adrián, Waitz Thomas, Walsmann Marion, Warborn Jörgen, Warnke Jan-Peter, Wąsik Maciej, Wawrykiewicz Michał, Wcisło Marta, Wechsler Andrea, Werbrouck Séverine, Wiesner Emma, Wiezik Michal, Wilmès Sophie, Winkler Iuliu, Winzig Angelika, Wiseler-Lima Isabel, Wiśniewska Jadwiga, Wölken Tiemo, Wolters Lara, Yar Lucia, Yon-Courtin Stéphanie, Zacharia Maria, Zajączkowska-Hernik Ewa, Zalewska Anna, Žalimas Dainius, Zan Alessandro, Zarzalejos Javier, Zdechovský Tomáš, Zdrojewski Bogdan Andrzej, Zijlstra Auke, Zīle Roberts, Zingaretti Nicola, Złotowski Kosma, Zoido Álvarez Juan Ignacio, Zovko Željana, Zver Milan

Excused:

Sidl Günther

ANNEX 1 – Composition of new committees

C01A SEDE

[ 20/01/2025 – ]

Комисия по сигурност и отбрана

Comisión de Seguridad y Defensa

Výbor pro bezpečnost a obranu

Udvalget om Sikkerhed og Forsvar

Ausschuss für Sicherheit und Verteidigung

Julgeoleku- ja kaitsekomisjon

Επιτροπή Ασφάλειας και Άμυνας

Committee on Security and Defence

Commission de la sécurité et de la défense

An Coiste um Shlándáil agus Cosaint

Odbor za sigurnost i obranu

Commissione per la sicurezza e la difesa

Drošības un aizsardzības komiteja

Saugumo ir gynybos komitetas

ssBiztonság- és Védelempolitikai Bizottság

Kumitat għas-Sigurtà u d-Difiża

Commissie veiligheid en defensie

Komisja Bezpieczeństwa i Obrony

Comissão da Segurança e da Defesa

Comisia pentru securitate și apărare

Výbor pre bezpečnosť a obranu

Odbor za varnost in obrambo

Turvallisuus- ja puolustuspolitiikan valiokunta

Utskottet för säkerhet och försvar

(43 members)

PPE (11)

BEKE Wouter

DE MEO Salvatore

GOMART Christophe

HERBST Niclas

MEIMARAKIS Vangelis

NOVAKOV Andrey

PASCUAL DE LA PARTE Nicolás

SZCZERBA Michał

TEODORESCU MÅWE Alice

TERRAS Riho

TOVERI Pekka

S&D (8)

CREMER Tobias

DI RUPO Elio

GLUCKSMANN Raphaël

LÓPEZ Javi

MAVRIDES Costas

MENDES Ana Catarina

MIKSER Sven

TUDOSE Mihai

PfE (5)

HÖLVÉNYI György

POKORNÁ JERMANOVÁ Jaroslava

STÖTELER Sebastiaan

THIONNET Pierre-Romain

VANNACCI Roberto

ECR (5)

DONAZZAN Elena

DWORCZYK Michał

GAMBINO Alberico

POZŅAKS Reinis

VONDRA Alexandr

Renew (5)

AUŠTREVIČIUS Petras

LOISEAU Nathalie

ŠAREC Marjan

STRACK-ZIMMERMANN Marie-Agnes

YAR Lucia

Verts/ALE (3)

NEUMANN Hannah

STAĶIS Mārtiņš

VAN LANSCHOT Reinier

The Left (3)

BOTENGA Marc

DEMIREL Özlem

KYLLÖNEN Merja

ESN (1)

NEUHOFF Hans

NI (2)

PAPADAKIS Kostas

VON DER SCHULENBURG Michael

C08A SANT

[ 20/01/2025 – ]

Комисия по обществено здраве

Comisión de Salud Pública

Výbor pro veřejné zdraví

Udvalget om Folkesundhed

Ausschuss für öffentliche Gesundheit

Rahvatervishoiu komisjon

Επιτροπή Δημόσιας Υγείας

Committee on Public Health

Commission de la santé publique

An Coiste um Shláinte Phoiblí

Odbor za javno zdravlje

Commissione per la sanità pubblica

Sabiedrības veselības komiteja

Visuomenės sveikatos komitetas

Közegészségügyi Bizottság

Kumitat għas-Saħħa Pubblika

Commissie volksgezondheid

Komisja Zdrowia Publicznego

Comissão da Saúde Pública

Comisia pentru sănătate publică

Výbor pre verejné zdravie

Odbor za javno zdravje

Kansanterveyden valiokunta

Utskottet för folkhälsa

(43 members)

PPE (11)

ARŁUKOWICZ Bartosz

CASTILLO Laurent

HADJIPANTELA Michalis

JARUBAS Adam

KULJA András Tivadar

LIESE Peter

MORATTI Letizia

NEVADO DEL CAMPO Elena

POLFJÄRD Jessica

SCHENK Oliver

SOKOL Tomislav

S&D (8)

ANDRIUKAITIS Vytenis Povilas

CLERGEAU Christophe

GONZÁLEZ CASARES Nicolás

JERKOVIĆ Romana

MORETTI Alessandra

NEGRESCU Victor

PAPANDREOU Nikos

WÖLKEN Tiemo

PfE (5)

BRASIER-CLAIN Marie-Luce

DE LA PISA CARRIÓN Margarita

FERENC Viktória

HAUSER Gerald

KNOTEK Ondřej

ECR (5)

BUDA Waldemar

FRAGKOS Emmanouil

PICARO Michele

RAZZA Ruggero

TROCHU Laurence

Renew (5)

BOSSE Stine

CANFIN Pascal

CHASTEL Olivier

CIFROVÁ OSTRIHOŇOVÁ Veronika

VASILE-VOICULESCU Vlad

Verts/ALE (3)

HÄUSLING Martin

MARINO Ignazio Roberto

METZ Tilly

The Left (3)

MARTINS Catarina

PALMISANO Valentina

TAMBURRANO Dario

ESN (1)

ANDERSON Christine

NI (2)

BEŇOVÁ Monika

DOSTÁL Ondřej

CS01 EUDS

[ 20/01/2025 – ]

Специална комисия относно европейския щит за демокрацията

Comisión Especial sobre el Escudo Europeo de la Democracia

Zvláštní výbor pro Evropský štít pro demokracii

Det Særlige Udvalg om Det Europæiske Demokratiskjold

Sonderausschuss für den Europäischen Schutzschild für die Demokratie

Euroopa demokraatia kaitse erikomisjon

Ειδική Επιτροπή για την Ευρωπαϊκή Ασπίδα Δημοκρατίας

Special committee on the European Democracy Shield

Commission spéciale sur le bouclier européen de la démocratie

An Coiste Speisialta um an Sciath Eorpach don Daonlathas

Posebni odbor za europski štit za zaštitu demokracije

Commissione speciale sullo scudo europeo per la democrazia

Īpašā komiteja attiecībā uz Eiropas demokrātijas vairogu

Specialusis komitetas Europos demokratijos skydo klausimais

Az európai demokráciapajzzsal foglalkozó különbizottság

Kumitat Speċjali dwar it-Tarka Ewropea għad-Demokrazija

Bijzondere Commissie inzake een schild voor de Europese democratie

Komisja Specjalna ds. Europejskiej Tarczy Demokracji

Comissão Especial sobre o Escudo Europeu da Democracia

Comisia specială pentru Scutul democrației europene

Osobitný výbor pre európsky štít na obranu demokracie

Posebni odbor za evropski ščit za demokracijo

Eurooppalaista demokratian kilpeä käsittelevä erityisvaliokunta

Särskilda utskottet för det europeiska demokratiförsvaret

(33 members)

PPE (9)

AALTOLA Mika

BOGDAN Ioan-Rareş

DÜPONT Lena

KALNIETE Sandra

MARTUSCIELLO Fulvio

SIENKIEWICZ Bartłomiej

TOBÉ Tomas

ZDECHOVSKÝ Tomáš

ZOIDO ÁLVAREZ Juan Ignacio

S&D (6)

DÎNCU Vasile

MENDES Ana Catarina

MOLNÁR Csaba

PICIERNO Pina

SCHALDEMOSE Christel

VAN BREMPT Kathleen

PfE (4)

BŽOCH Jaroslav

LEGGERI Fabrice

SCHALLER-BAROSS Ernő

TÂNGER CORRÊA António

ECR (4)

CAVEDAGNA Stefano

KANKO Assita

SZYDŁO Beata

TERHEŞ Cristian

Renew (4)

BRANDSTÄTTER Helmut

GROOTHUIS Bart

LOISEAU Nathalie

WILMÈS Sophie

Verts/ALE (2)

GEESE Alexandra

VAN SPARRENTAK Kim

The Left (2)

ARVANITIS Konstantinos

DELLA VALLE Danilo

ESN (1)

ANDERSON Christine

NI (1)

PANAYIOTOU Fidias

CS02 HOUS

[ 20/01/2025 – ]

Специална комисия относно жилищната криза в Европейския съюз

Comisión Especial sobre la Crisis de la Vivienda en la Unión Europea

Zvláštní výbor pro krizi v oblasti bydlení v Evropské unii

Det Særlige Udvalg om Boligkrisen i Den Europæiske Union

Sonderausschuss zur Wohnraumkrise in der Europäischen Union

Euroopa Liidu eluasemekriisi erikomisjon

Ειδική Επιτροπή για τη στεγαστική κρίση στην Ευρωπαϊκή Ένωση

Special committee on the Housing Crisis in the European Union

Commission spéciale sur la crise du logement dans l’Union européenne

An Coiste Speisialta um an nGéarchéim Tithíochta san Aontas Eorpach

Posebni odbor za stambenu krizu u Europskoj uniji

Commissione speciale sulla crisi degli alloggi nell’Unione europea

Īpašā komiteja mājokļu krīzes risināšanai Eiropas Savienībā

Specialusis komitetas būsto krizės Europos Sąjungoje klausimais

Az Európai Unióban tapasztalható lakhatási válsággal foglalkozó különbizottság

Kumitat Speċjali dwar il-Kriżi tal-Akkomodazzjoni fl-Unjoni Ewropea

Bijzondere Commissie inzake de huisvestingscrisis in de Europese Unie

Komisja Specjalna ds. Kryzysu Mieszkaniowego w Unii Europejskiej

Comissão Especial sobre a Crise de Habitação na União Europeia

Comisia specială pentru criza locuințelor în Uniunea Europeană

Osobitný výbor pre krízu bývania v Európskej únii

Posebni odbor za stanovanjsko krizo v Evropski uniji

Asuntokriisiä Euroopan unionissa käsittelevä erityisvaliokunta

Särskilda utskottet för bostadskrisen i Europeiska unionen

(33 members)

PPE (9)

BUGALHO Sebastião

CASA David

DOHERTY Regina

EZCURRA ALMANSA Alma

FALCONE Marco

FERBER Markus

GOTINK Dirk

LE CALLENNEC Isabelle

MARCZUŁAJTIS-WALCZAK Jagna

S&D (6)

BISCHOFF Gabriele

GOMES Isilda

HOMS GINEL Alicia

MEBAREK Nora

SCHIEDER Andreas

TINAGLI Irene

PfE (4)

BLOM Rachel

DOSTALOVA Klara

HÖLVÉNYI György

RECHAGNEUX Julie

ECR (4)

JUNCO GARCÍA Nora

MAGONI Lara

SBERNA Antonella

TEODORESCU Georgiana

Renew (4)

HOJSÍK Martin

MULLOOLY Ciaran

TOOM Jana

VAN DEN BERG Brigitte

Verts/ALE (2)

MARZÀ IBÁÑEZ Vicent

OHISALO Maria

The Left (2)

CHAIBI Leila

MONTERO Irene

ESN (1)

BOSSDORF Irmhild

NI (1)

ZACHARIA Maria

MIL OSI Europe News –

January 25, 2025

MIL-OSI NGOs: Afghanistan: ICC Prosecutor’s application for arrest warrants against Taliban leaders is an important step towards justice for Afghan women, girls and LGBTQI persons

Source: Amnesty International –

Responding to the application filed yesterday by the Office of the Prosecutor of the International Criminal Court (ICC) for arrest warrants against the Taliban Supreme Leader, Haibatullah Akhundzada, and the Taliban Chief Justice, Abdul Hakim Haqqani, for their suspected responsibility for the crime against humanity of gender persecution in Afghanistan, Agnès Callamard, Secretary General at Amnesty International, said:

“The announcement by the ICC Prosecutor is an important development that gives hope, inside and outside the country to Afghan women, girls, as well as those persecuted on the basis of gender identity or expression, such as members of the LGBTQI community. This is a crucial step to hold accountable all those allegedly responsible for the gender-based deprivation of fundamental rights to education, to free movement and free expression, to private and family life, to free assembly, and to physical integrity and autonomy. Amnesty International also calls on the international community to recognize gender apartheid as a crime under international law in order to strengthen efforts to combat institutionalized regimes of systematic oppression and domination imposed on the grounds of gender.

The announcement by the ICC Prosecutor is an important development that gives hope, inside and outside the country to Afghan women, girls, as well as those persecuted on the basis of gender identity or expression, such as members of the LGBTQI community.

Agnès Callamard, Secretary General at Amnesty International

“The Prosecutor has acknowledged that the charges represent only a fraction of the victimization that has occurred all over Afghanistan for more than two years and affected much of the population. It is incumbent on the ICC and the whole international community to urgently and significantly scale-up efforts to address gender persecution and other crimes under international law committed in Afghanistan as access to justice in the country remains significantly overdue.

“We strongly urge the ICC Prosecutor to also expand his investigations in Afghanistan to include all serious violations from May 2003 onwards that amount to crimes under international law, including extrajudicial killings, torture and other ill-treatment, arbitrary arrest and detention, enforced disappearance, the massacre of civilians, and the ongoing systematic and widespread attacks against the Hazara ethnic group and religious minorities by the Islamic State of Khorasan Province.

“Amnesty International also calls on the ICC Prosecutor to reconsider his 2021 decision to deprioritize investigations into war crimes allegedly committed by the US military, CIA personnel, and other international forces who had a presence in the country, and the former government security apparatus. This decision risks contributing to perceptions of a selective approach to international justice which prioritizes the interests of powerful states and their allies over the right to justice of victims of crimes under international law.

Background

On 23 January, the Office of the Prosecutor of the ICC issued a statement announcing the applications for arrest warrants in the situation in Afghanistan. The Prosecutor’s applications for arrest warrants will be considered by ICC Pre-Trial Chamber judges, to determine whether they establish reasonable grounds to believe that the named individuals committed the alleged crimes. The Office of the Prosecutor also stated that investigations are ongoing. This means that further applications, both for other persons and alleged crimes, could still follow.

In 2023, Amnesty International published its report, The Taliban’s war on women, on the crime against humanity of gender persecution against women and girls in Afghanistan. The 2022 report, Death in Slow Motion: Women and Girls Under Taliban Rule,alsodocumented the Taliban’s widespread, systematic, and intentional attacks on the rights of women, together with the use of torture and other ill-treatment and enforced disappearance. The discriminatory restrictions on the rights of women and girls affect all spheres of their lives, and they are institutionalized through the Taliban’s policies, decisions, and laws.

Afghanistan had been under preliminary examination by the ICC Prosecutor from 2007 to 2017. In 2022, the Prosecutor resumed its investigation into the situation of Afghanistan after the Court concluded that there was no genuine investigation at the domestic level. In fact, since the Taliban returned to power, they have destroyed avenues for access to fair trial and abolished the constitution and laws that were in force prior to their return.

MIL OSI NGO –

January 25, 2025

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

Source: GlobeNewswire (MIL-OSI)

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

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

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

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

Quarterly Financial Performance

Fourth Quarter 2024 versus Fourth Quarter 2023 highlights:

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

Fourth Quarter 2024 versus Third Quarter 2024 highlights:

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

Capital Strength

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

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

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

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

Loan Portfolio

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

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

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

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

Diversified Deposit Base

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


DEPOSIT DETAIL (unaudited, in thousands)

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

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

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

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

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

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

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

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

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

Net Interest Margin

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

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

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

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

Liquidity Overview

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

Investment Portfolio Overview

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

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

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

Asset Quality

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

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

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

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

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

Noninterest Income

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

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

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

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

Noninterest Expense

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

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

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

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

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

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

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


LAKELAND FINANCIAL CORPORATION FOURTH QUARTER 2024 FINANCIAL HIGHLIGHTS

	Three Months Ended									Twelve Months Ended
(Unaudited – Dollars in thousands, except per share data)	December 31,			September 30,			December 31,			December 31,			December 31,
END OF PERIOD BALANCES	2024			2024			2023			2024			2023
Assets	$	6,678,374		$	6,645,371		$	6,524,029		$	6,678,374		$	6,524,029
Investments		1,122,994			1,147,806			1,181,646			1,122,994			1,181,646
Loans		5,117,948			5,081,990			4,916,534			5,117,948			4,916,534
Allowance for Credit Losses		85,960			83,627			71,972			85,960			71,972
Deposits		5,900,966			5,837,313			5,720,525			5,900,966			5,720,525
Brokered Deposits		41,560			96,504			135,405			41,560			135,405
Core Deposits (1)		5,859,406			5,740,809			5,585,120			5,859,406			5,585,120
Total Equity		683,911			699,181			649,793			683,911			649,793
Goodwill Net of Deferred Tax Assets		3,803			3,803			3,803			3,803			3,803
Tangible Common Equity (2)		680,108			695,378			645,990			680,108			645,990
Adjusted Tangible Common Equity (2)		846,040			832,813			800,450			846,040			800,450
AVERAGE BALANCES
Total Assets	$	6,795,596		$	6,656,464		$	6,514,430		$	6,662,718		$	6,464,980
Earning Assets		6,470,920			6,329,287			6,145,937			6,328,498			6,114,225
Investments		1,134,011			1,128,705			1,107,862			1,134,979			1,184,659
Loans		5,086,614			5,064,348			4,879,695			5,039,406			4,813,678
Total Deposits		6,011,122			5,880,177			5,802,592			5,836,025			5,604,228
Interest Bearing Deposits		4,729,201			4,635,993			4,428,140			4,578,219			4,128,922
Interest Bearing Liabilities		4,729,206			4,649,745			4,441,425			4,644,553			4,295,743
Total Equity		693,744			670,160			572,653			662,087			588,667
INCOME STATEMENT DATA
Net Interest Income	$	51,694		$	49,273		$	48,599		$	196,679		$	197,035
Net Interest Income-Fully Tax Equivalent		52,804			50,383			49,914			201,363			202,347
Provision for Credit Losses		3,691			3,059			300			16,750			5,850
Noninterest Income		11,876			11,917			17,208			56,844			49,858
Noninterest Expense		30,653			30,393			29,445			125,084			130,710
Net Income		24,190			23,338			29,626			93,478			93,767
Pretax Pre-Provision Earnings (2)		32,917			30,797			36,362			128,439			116,183
PER SHARE DATA
Basic Net Income Per Common Share	$	0.94		$	0.91		$	1.16		$	3.64		$	3.67
Diluted Net Income Per Common Share		0.94			0.91			1.16			3.63			3.65
Cash Dividends Declared Per Common Share		0.48			0.48			0.46			1.92			1.84
Dividend Payout		51.06	%		52.75	%		39.66	%		52.89	%		50.41	%
Book Value Per Common Share (equity per share issued)	$	26.62		$	27.22		$	25.37		$	26.62		$	25.37
Tangible Book Value Per Common Share (2)		26.47			27.07			25.22			26.47			25.22
Market Value – High	$	78.61		$	72.25		$	67.88		$	78.61		$	77.07
Market Value – Low		61.10			57.45			45.59			57.45			43.05


	Three Months Ended									Twelve Months Ended
(Unaudited – Dollars in thousands, except per share data)	December 31,			September 30,			December 31,			December 31,			December 31,
PER SHARE DATA (continued)	2024			2024			2023			2024			2023
Basic Weighted Average Common Shares Outstanding		25,686,276			25,684,407			25,614,420			25,676,543			25,604,751
Diluted Weighted Average Common Shares Outstanding		25,792,460			25,767,739			25,732,870			25,769,018			25,723,165
KEY RATIOS
Return on Average Assets		1.42	%		1.39	%		1.80	%		1.40	%		1.45	%
Return on Average Total Equity		13.87			13.85			20.52			14.12			15.93
Average Equity to Average Assets		10.21			10.07			8.79			9.94			9.11
Net Interest Margin		3.25			3.16			3.23			3.18			3.31
Efficiency (Noninterest Expense/Net Interest Income plus Noninterest Income)		48.22			49.67			44.74			49.34			52.94
Loans to Deposits		86.73			87.06			85.95			86.73			85.95
Investment Securities to Total Assets		16.82			17.27			18.11			16.82			18.11
Tier 1 Leverage (3)		12.15			12.18			11.82			12.15			11.82
Tier 1 Risk-Based Capital (3)		14.64			14.50			14.21			14.64			14.21
Common Equity Tier 1 (CET1) (3)		14.64			14.50			14.21			14.64			14.21
Total Capital (3)		15.90			15.75			15.47			15.90			15.47
Tangible Capital (2)		10.19			10.47			9.91			10.19			9.91
Adjusted Tangible Capital (2)		12.37			12.29			11.99			12.37			11.99
ASSET QUALITY
Loans Past Due 30 – 89 Days	$	4,273		$	829		$	3,360		$	4,273		$	3,360
Loans Past Due 90 Days or More		28			95			27			28			27
Nonaccrual Loans		56,431			57,551			15,687			56,431			15,687
Nonperforming Loans		56,459			57,646			15,714			56,459			15,714
Other Real Estate Owned		284			384			384			284			384
Other Nonperforming Assets		143			21			8			143			8
Total Nonperforming Assets		56,886			58,051			16,106			56,886			16,106
Individually Analyzed Loans		78,647			77,654			16,124			78,647			16,124
Non-Individually Analyzed Watch List Loans		132,499			189,918			166,961			132,499			166,961
Total Individually Analyzed and Watch List Loans		211,146			267,572			183,085			211,146			183,085
Gross Charge Offs		1,657			231			566			3,468			7,332
Recoveries		299			88			133			706			848
Net Charge Offs/(Recoveries)		1,358			143			433			2,762			6,484
Net Charge Offs/(Recoveries) to Average Loans		0.11	%		0.01	%		0.04	%		0.05	%		0.13	%
Credit Loss Reserve to Loans		1.68			1.65			1.46			1.68			1.46
Credit Loss Reserve to Nonperforming Loans		152.25			145.07			458.01			152.25			458.01
Nonperforming Loans to Loans		1.10			1.13			0.32			1.10			0.32
Nonperforming Assets to Assets		0.85			0.87			0.25			0.85			0.25
Total Individually Analyzed and Watch List Loans to Total Loans		4.13	%		5.27	%		3.72	%		4.13	%		3.72	%


	Three Months Ended									Twelve Months Ended
(Unaudited – Dollars in thousands, except per share data)	December 31,			September 30,			December 31,			December 31,			December 31,
PER SHARE DATA (continued)	2024			2024			2023			2024			2023
OTHER DATA
Full Time Equivalent Employees		643			639			619			643			619
Offices		54			54			53			54			53

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


CONSOLIDATED BALANCE SHEETS (in thousands, except share data)

	December 31, 2024			December 31, 2023
	(Unaudited)
ASSETS
Cash and due from banks	$	71,733		$	70,451
Short-term investments		96,472			81,373
Total cash and cash equivalents		168,205			151,824

Securities available-for-sale, at fair value		991,426			1,051,728
Securities held-to-maturity, at amortized cost (fair value of $113,107 and $119,215, respectively)		131,568			129,918
Real estate mortgage loans held-for-sale		1,700			1,158

Loans, net of allowance for credit losses of $85,960 and $71,972		5,031,988			4,844,562

Land, premises and equipment, net		60,489			57,899
Bank owned life insurance		113,320			109,114
Federal Reserve and Federal Home Loan Bank stock		21,420			21,420
Accrued interest receivable		28,446			30,011
Goodwill		4,970			4,970
Other assets		124,842			121,425
Total assets	$	6,678,374		$	6,524,029


LIABILITIES
Noninterest bearing deposits	$	1,297,456		$	1,353,477
Interest bearing deposits		4,603,510			4,367,048
Total deposits		5,900,966			5,720,525

Borrowings – Federal Home Loan Bank advances		0			50,000
Accrued interest payable		15,117			20,893
Other liabilities		78,380			82,818
Total liabilities		5,994,463			5,874,236

STOCKHOLDERS’ EQUITY
Common stock: 90,000,000 shares authorized, no par value
25,978,831 shares issued and 25,509,592 outstanding as of December 31, 2024
25,903,686 shares issued and 25,430,566 outstanding as of December 31, 2023		129,664			127,692
Retained earnings		736,412			692,760
Accumulated other comprehensive income (loss)		(166,500	)		(155,195	)
Treasury stock, at cost (469,239 shares and 473,120 shares as of December 31, 2024 and December 31, 2023, respectively)		(15,754	)		(15,553	)
Total stockholders’ equity		683,822			649,704
Noncontrolling interest		89			89
Total equity		683,911			649,793
Total liabilities and equity	$	6,678,374		$	6,524,029


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

	Three Months Ended December 31,					Twelve Months Ended December 31,
	2024		2023			2024			2023
NET INTEREST INCOME
Interest and fees on loans
Taxable	$	83,253	$	80,631		$	335,639		$	304,130
Tax exempt		296		1,016			2,126			3,885
Interest and dividends on securities
Taxable		2,997		3,187			12,048			13,153
Tax exempt		3,914		4,009			15,714			16,396
Other interest income		2,910		2,099			7,631			5,703
Total interest income		93,370		90,942			373,158			343,267

Interest on deposits		41,676		42,154			172,759			137,791
Interest on short-term borrowings		0		189			3,720			8,441
Total interest expense		41,676		42,343			176,479			146,232

NET INTEREST INCOME		51,694		48,599			196,679			197,035

Provision for credit losses		3,691		300			16,750			5,850

NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES		48,003		48,299			179,929			191,185

NONINTEREST INCOME
Wealth advisory fees		2,699		2,311			10,469			9,080
Investment brokerage fees		456		445			1,894			1,815
Service charges on deposit accounts		2,825		2,682			11,157			10,773
Loan and service fees		2,977		2,968			11,832			11,750
Merchant and interchange fee income		889		907			3,542			3,651
Bank owned life insurance income		1,216		740			4,210			3,133
Interest rate swap fee income		0		0			0			794
Mortgage banking income (loss)		48		(70	)		116			(254	)
Net securities gains (losses)		0		(9	)		(46	)		(25	)
Net gain on Visa shares		0		0			8,996			0
Other income		766		7,234			4,674			9,141
Total noninterest income		11,876		17,208			56,844			49,858

NONINTEREST EXPENSE
Salaries and employee benefits		17,261		15,733			66,728			59,147
Net occupancy expense		1,706		1,486			6,865			6,360
Equipment costs		1,405		1,443			5,612			5,632
Data processing fees and supplies		3,742		3,698			15,161			14,003
Corporate and business development		950		877			4,965			4,807
FDIC insurance and other regulatory fees		894		894			3,465			3,363
Professional fees		2,275		2,299			8,950			8,583
Wire fraud loss		0		0			0			18,058
Other expense		2,420		3,015			13,338			10,757
Total noninterest expense		30,653		29,445			125,084			130,710

INCOME BEFORE INCOME TAX EXPENSE		29,226		36,062			111,689			110,333
Income tax expense		5,036		6,436			18,211			16,566
NET INCOME	$	24,190	$	29,626		$	93,478		$	93,767

BASIC WEIGHTED AVERAGE COMMON SHARES		25,686,276		25,614,420			25,676,543			25,604,751

BASIC EARNINGS PER COMMON SHARE	$	0.94	$	1.16		$	3.64		$	3.67

DILUTED WEIGHTED AVERAGE COMMON SHARES		25,792,460		25,732,870			25,769,018			25,723,165

DILUTED EARNINGS PER COMMON SHARE	$	0.94	$	1.16		$	3.63		$	3.65


LAKELAND FINANCIAL CORPORATION LOAN DETAIL (unaudited, in thousands)

	December 31, 2024					September 30, 2024					December 31, 2023
Commercial and industrial loans:
Working capital lines of credit loans	$	649,609		12.7	%	$	678,079		13.3	%	$	604,893		12.3	%
Non-working capital loans		801,256		15.6			814,804		16.0			815,871		16.6
Total commercial and industrial loans		1,450,865		28.3			1,492,883		29.3			1,420,764		28.9

Commercial real estate and multi-family residential loans:
Construction and land development loans		567,781		11.1			729,293		14.3			634,435		12.9
Owner occupied loans		807,090		15.8			810,453		15.9			825,464		16.8
Nonowner occupied loans		872,671		17.0			766,821		15.1			724,101		14.7
Multifamily loans		344,978		6.7			243,283		4.8			253,534		5.1
Total commercial real estate and multi-family residential loans		2,592,520		50.6			2,549,850		50.1			2,437,534		49.5

Agri-business and agricultural loans:
Loans secured by farmland		156,609		3.1			157,413		3.1			162,890		3.3
Loans for agricultural production		230,787		4.5			200,971		4.0			225,874		4.6
Total agri-business and agricultural loans		387,396		7.6			358,384		7.1			388,764		7.9

Other commercial loans		95,584		1.9			94,309		1.9			120,726		2.5
Total commercial loans		4,526,365		88.4			4,495,426		88.4			4,367,788		88.8

Consumer 1-4 family mortgage loans:
Closed end first mortgage loans		259,286		5.1			261,462		5.1			258,103		5.2
Open end and junior lien loans		214,125		4.2			210,275		4.1			189,663		3.9
Residential construction and land development loans		16,818		0.3			14,200		0.3			8,421		0.2
Total consumer 1-4 family mortgage loans		490,229		9.6			485,937		9.5			456,187		9.3

Other consumer loans		104,041		2.0			103,547		2.1			96,022		1.9
Total consumer loans		594,270		11.6			589,484		11.6			552,209		11.2
Subtotal		5,120,635		100.0	%		5,084,910		100.0	%		4,919,997		100.0	%
Less: Allowance for credit losses		(85,960	)				(83,627	)				(71,972	)
Net deferred loan fees		(2,687	)				(2,920	)				(3,463	)
Loans, net	$	5,031,988				$	4,998,363				$	4,844,562


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

	December 31, 2024		September 30, 2024		December 31, 2023
Noninterest bearing demand deposits	$	1,297,456	$	1,284,527	$	1,353,477
Savings and transaction accounts:
Savings deposits		276,179		276,468		301,168
Interest bearing demand deposits		3,471,455		3,273,405		3,049,059
Time deposits:
Deposits of $100,000 or more		642,776		787,095		792,738
Other time deposits		213,100		215,818		224,083
Total deposits	$	5,900,966	$	5,837,313	$	5,720,525
FHLB advances and other borrowings		0		30,000		50,000
Total funding sources	$	5,900,966	$	5,867,313	$	5,770,525


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

	Three Months Ended December 31, 2024							Three Months Ended September 30, 2024							Three Months Ended December 31, 2023
(fully tax equivalent basis, dollars in thousands)	Average Balance			Interest Income		Yield (1)/ Rate		Average Balance			Interest Income		Yield (1)/ Rate		Average Balance			Interest Income		Yield (1)/ Rate
Earning Assets
Loans:
Taxable (2)(3)	$	5,060,397		$	83,253	6.54	%	$	5,037,855		$	86,118	6.80	%	$	4,820,389		$	80,631	6.64	%
Tax exempt (1)		26,217			364	5.52			26,493			366	5.50			59,306			1,265	8.46
Investments: (1)
Securities		1,134,011			7,953	2.79			1,128,705			7,871	2.77			1,107,862			8,262	2.96
Short-term investments		2,765			29	4.17			2,841			35	4.90			2,610			32	4.86
Interest bearing deposits		247,530			2,881	4.63			133,393			1,738	5.18			155,770			2,067	5.26
Total earning assets	$	6,470,920		$	94,480	5.81	%	$	6,329,287		$	96,128	6.04	%	$	6,145,937		$	92,257	5.96	%
Less: Allowance for credit losses		(84,687	)						(81,353	)						(72,165	)
Nonearning Assets
Cash and due from banks		67,994							63,744							69,563
Premises and equipment		60,325							59,493							58,436
Other nonearning assets		281,044							285,293							312,659
Total assets	$	6,795,596						$	6,656,464						$	6,514,430

Interest Bearing Liabilities
Savings deposits	$	274,960		$	43	0.06	%	$	280,180		$	45	0.06	%	$	306,875		$	52	0.07	%
Interest bearing checking accounts		3,505,470			31,562	3.58			3,295,911			33,822	4.08			3,073,570			30,953	4.00
Time deposits:
In denominations under $100,000		214,429			1,921	3.56			215,020			1,914	3.54			220,678			1,810	3.25
In denominations over $100,000		734,342			8,150	4.42			844,882			9,775	4.60			827,017			9,339	4.48
Miscellaneous short-term borrowings		5			0	5.30			13,752			189	5.48			13,285			189	5.64
Total interest bearing liabilities	$	4,729,206		$	41,676	3.51	%	$	4,649,745		$	45,745	3.91	%	$	4,441,425		$	42,343	3.78	%
Noninterest Bearing Liabilities
Demand deposits		1,281,921							1,244,184							1,374,452
Other liabilities		90,725							92,375							125,900
Stockholders’ Equity		693,744							670,160							572,653
Total liabilities and stockholders’ equity	$	6,795,596						$	6,656,464						$	6,514,430
Interest Margin Recap
Interest income/average earning assets					94,480	5.81	%					96,128	6.04	%					92,257	5.96	%
Interest expense/average earning assets					41,676	2.56						45,745	2.88						42,343	2.73
Net interest income and margin				$	52,804	3.25	%				$	50,383	3.16	%				$	49,914	3.23	%

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

Reconciliation of Non-GAAP Financial Measures

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

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

	Three Months Ended									Twelve Months Ended
	Dec. 31, 2024			Sep. 30, 2024			Dec. 31, 2023			Dec. 31, 2024			Dec. 31, 2023
Total Equity	$	683,911		$	699,181		$	649,793		$	683,911		$	649,793
Less: Goodwill		(4,970	)		(4,970	)		(4,970	)		(4,970	)		(4,970	)
Plus: DTA Related to Goodwill		1,167			1,167			1,167			1,167			1,167
Tangible Common Equity		680,108			695,378			645,990			680,108			645,990
Market Value Adjustment in AOCI		165,932			137,435			154,460			165,932			154,460
Adjusted Tangible Common Equity		846,040			832,813			800,450			846,040			800,450

Assets	$	6,678,374		$	6,645,371		$	6,524,029		$	6,678,374		$	6,524,029
Less: Goodwill		(4,970	)		(4,970	)		(4,970	)		(4,970	)		(4,970	)
Plus: DTA Related to Goodwill		1,167			1,167			1,167			1,167			1,167
Tangible Assets		6,674,571			6,641,568			6,520,226			6,674,571			6,520,226
Market Value Adjustment in AOCI		165,932			137,435			154,460			165,932			154,460
Adjusted Tangible Assets		6,840,503			6,779,003			6,674,686			6,840,503			6,674,686

Ending Common Shares Issued		25,689,730			25,684,916			25,614,585			25,689,730			25,614,585

Tangible Book Value Per Common Share	$	26.47		$	27.07		$	25.22		$	26.47		$	25.22

Tangible Common Equity/Tangible Assets		10.19	%		10.47	%		9.91	%		10.19	%		9.91	%
Adjusted Tangible Common Equity/Adjusted Tangible Assets		12.37	%		12.29	%		11.99	%		12.37	%		11.99	%

Net Interest Income	$	51,694		$	49,273		$	48,599		$	196,679		$	197,035
Plus: Noninterest Income		11,876			11,917			17,208			56,844			49,858
Minus: Noninterest Expense		(30,653	)		(30,393	)		(29,445	)		(125,084	)		(130,710	)

Pretax Pre-Provision Earnings	$	32,917		$	30,797		$	36,362		$	128,439		$	116,183

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

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

	Three Months Ended									Twelve Months Ended
	Dec. 31, 2024			Sep. 30, 2024			Dec. 31, 2023			Dec. 31, 2024			Dec. 31, 2023
Noninterest Income	$	11,876		$	11,917		$	17,208		$	56,844		$	49,858
Less: Net (Gain) Loss on Visa Shares		0			15			0			(8,996	)		0
Less: Insurance and Loss Recoveries		0			0			(6,300	)		(1,000	)		(6,300	)
Adjusted Core Noninterest Income	$	11,876		$	11,932		$	10,908		$	46,848		$	43,558

Noninterest Expense	$	30,653		$	30,393		$	29,445		$	125,084		$	130,710
Less: Legal Accrual		0			0			0			(4,537	)		0
Less: Wire Fraud Loss		0			0			0			0			(18,058	)
Plus: Salaries and Employee Benefits (1)		0			0			(453	)		0			1,397
Adjusted Core Noninterest Expense	$	30,653		$	30,393		$	28,992		$	120,547		$	114,049

Earnings Before Income Taxes	$	29,226		$	27,738		$	36,062		$	111,689		$	110,333
Adjusted Core Impact:
Noninterest Income		0			15			(6,300	)		(9,996	)		(6,300	)
Noninterest Expense		0			0			453			4,537			16,661
Total Adjusted Core Impact		0			15			(5,847	)		(5,459	)		10,361
Adjusted Earnings Before Income Taxes		29,226			27,753			30,215			106,230			120,694
Tax Effect		(5,036	)		(4,404	)		(4,996	)		(16,853	)		(19,119	)
Core Operational Profitability (2)	$	24,190		$	23,349		$	25,219		$	89,377		$	101,575

Diluted Earnings Per Common Share	$	0.94		$	0.91		$	1.16		$	3.63		$	3.65
Impact of Adjusted Core Items		0.00			0.00			(0.18	)		(0.16	)		0.30
Core Operational Diluted Earnings Per Common Share	$	0.94		$	0.91		$	0.98		$	3.47		$	3.95

Adjusted Core Efficiency Ratio		48.22	%		49.66	%		48.72	%		49.49	%		47.40	%

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

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

The MIL Network –

January 25, 2025

MIL-OSI: RYVYL Executes Repurchase and Repayment Agreement with Securityholder to Retire All Outstanding Series B Convertible Preferred Stock and Outstanding Balance of 8% Senior Convertible Note
Source: GlobeNewswire (MIL-OSI)

SAN DIEGO, CA, Jan. 24, 2025 (GLOBE NEWSWIRE) — RYVYL Inc. (NASDAQ: RVYL) (“RYVYL” or the “Company”), a leading innovator of payment transaction solutions leveraging electronic payment technology for diverse international markets, has executed a Preferred Stock Repurchase and Note Repayment Agreement for the full repayment and termination of an 8% Senior Convertible Note (the “Note) and the redemption of all shares of the Company’s Series B Convertible Preferred Stock (the “Preferred Stock”). The Definitive Agreement provides for:
- A first tranche payment of $13.0 million for the redemption of all of the shares of Preferred Stock held by the Securityholder, and payment of a portion of the outstanding balance of the Note so that the remaining outstanding principal balance will be $4.0 million.
- Advancing the maturity date for the remaining balance of $4.0 million due under the Note, following payment of the first tranche, to April 30, 2025.
The Company is required to pay the first tranche payment of $13.0 million on or before January 27, 2025. The first tranche due date may be extended to February 3, 2025, at the sole option of the Company, in consideration for RYVYL’s payment of an additional $50,000.
- Upon payment of the first tranche payment and execution of the Preferred Stock Repurchase and Note Repayment Agreement, certain restrictive covenants contained in the transaction documents pursuant to which the Note and the shares of Preferred Stock were issued will be waived and no additional interest will accrue and be payable, as long as the Company pays the remaining $4.0 million principal balance of the Note ($4,050,000, if the date of the first tranche payment date is extended) on or before April 30, 2025. If the Company fails to pay the remaining balance by such date, the Note will be restored to its terms prior to the first tranche payment, and interest will again accrue and be payable.
- Prior to payment of the first tranche payment, the Securityholder shall retain the ability, subject to certain market limitations, to convert the Note and the Preferred Stock into common stock.
This communication is for informational purposes only and does not constitute an offer to sell, or a solicitation of an offer to buy, any security and does not constitute an offer, solicitation or sale of any security in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About RYVYL

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

Cautionary Note Regarding Forward-Looking Statements

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

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

The MIL Network –
January 25, 2025
MIL-OSI Security: Columbia Man Indicted on Sex Trafficking and Child Sexual Abuse Material Charges Involving 11 Victims

Source: Office of United States Attorneys

COLUMBIA, S.C. — A federal grand jury in Columbia returned a 22-count indictment against defendant Leon-Bobby Jones-Hubbard, 31, of Columbia, charging him with sex trafficking by force, fraud, or coercion; two counts of sex trafficking of a minor; nine counts of production and attempted production of child sexual abuse materials; nine counts of coercion and enticement of a minor into illegal sexual conduct; and one count of distribution of child sexual abuse material.

The indictment alleges that from at least June 2023 to present, Jones-Hubbard used social media platforms including Facebook to target, recruit, and exploit 10 minor victims who ranged from 5 to 16 years old and were located in Arkansas, Michigan, Alabama, Wisconsin, and Texas. The indictment further alleges the defendant paid money through Cash App, PayPal, and Meta Pay to induce and entice minors into illegal sexual conduct, including sex trafficking and the production of child sexual abuse material.

An adult with a severe developmental disorder was also targeted and exploited, according to the indictment, by Jones-Hubbard using an intermediary to coerce the victim into sex acts through physical restraint, physical force, and violence in exchange for money.

Jones-Hubbard faces a penalty of up to life in prison. He also faces mandatory minimum penalties of 15 years, 10 years, and five years in prison on various counts charged. He faces fines of up to $250,0o0 per count, a special assessment of $5,000 per count, mandatory restitution payable to any victims who suffered loss in connection with criminal conduct, court-ordered supervision of life to follow any term of imprisonment, and federal and state sex offender registration requirements.

Jones-Hubbard was arraigned in federal court on Jan. 23 and was ordered detained pending a detention hearing before United States Magistrate Judge Paige J. Gossett on Jan. 28 at 2:30 p.m.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the U.S. Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.

This case was investigated by the FBI Columbia Field Office. Assistant U.S. Attorneys Elliott B. Daniels and E. Elizabeth Major are prosecuting the case.

U.S. Attorney Adair F. Boroughs stated that all charges in the indictment are merely accusations and that defendants are presumed innocent unless and until proven guilty.

###

MIL Security OSI –

January 25, 2025

MIL-OSI: Meridian Corporation Reports Fourth Quarter 2024 Results and Announces a Quarterly Dividend of $0.125 per Common Share

Source: GlobeNewswire (MIL-OSI)

MALVERN, Pa., Jan. 24, 2025 (GLOBE NEWSWIRE) — Meridian Corporation (Nasdaq: MRBK) today reported:

	Three Months Ended				Year Ended
(Dollars in thousands, except per share data)(Unaudited)	December 31, 2024		September 30, 2024		December 31, 2024		December 31, 2023
Income:
Net income	$	5,601	$	4,743	$	16,346	$	13,243
Diluted earnings per common share	$	0.49	$	0.42	$	1.45	$	1.16
Pre-tax, pre-provision income⁽¹⁾	$	11,168	$	8,527	$	33,186	$	23,782
(1) See Non-GAAP reconciliation in the Appendix

Net income for the quarter ended December 31, 2024 was $5.6 million, or $0.49 per diluted share and $16.3 million, or $1.45 per diluted share, for the year.
Pre-tax, pre-provision income¹ for the quarter and the year were $11.2 million and $33.2 million, respectively.
Net interest margin was 3.29% for the fourth quarter of 2024, with a loan yield of 7.17%. Net interest margin was 3.16% with a loan yield of 7.28% for the year.
Return on average assets and return on average equity for the fourth quarter of 2024 were 0.92% and 13.01%, respectively, and 0.70% and 9.93% for the year.
During the quarter a net gain of $4.0 million was recognized on the sale of $6.6 million in residential mortgage loan servicing rights held at amortized cost and, a $317 thousand gain was recognized on the sale of a $1.7 million OREO property.
Fees and other disposal costs of $1.0 million, net, were recognized during the quarter for the early termination of the Blue Bell lease.
Total assets at December 31, 2024 were $2.4 billion, compared to $2.4 billion at September 30, 2024 and $2.2 billion at December 31, 2023.
Commercial loans, excluding leases, increased $34.8 million, or 2% for the quarter and $177.1 million, or 12% year over year.
Fourth quarter deposit growth was $26.4 million, or 1%, and $181.9 million, or 10% year over year.
Non-interest-bearing deposits were up $3.7 million or 2%, quarter over quarter, and $1.6 million or 1%, year over year.
On January 23, 2025, the Board of Directors declared a quarterly cash dividend of $0.125 per common share, payable February 18, 2025 to shareholders of record as of February 10, 2025.

Christopher J. Annas, Chairman and CEO commented:

Our fourth quarter earnings showed significant improvement from the third quarter, increasing by 18.1% to $5.6 million, or $0.49 per share. For the year, net income increased 23.4% to $16.3 million, and $1.45 per share. While we are pleased with the improvement, we are still working through the drastic rate shock brought on by the Fed, particularly in our net interest margin which is down 50 basis points from 2019 levels. The team is working diligently each day to return to historical spreads.

Loan growth of 12% (minus planned lease paydowns) for 2024 was exceptional, and our three main lending groups all contributed. Commercial real estate is benefiting from a continued lack of homes for sale, and our C&I and SBA teams are winning client relationships with persistence and creative advisory. Legacy low fixed-rate loans often made it unprofitable for us to solicit business from prospects. Deposits were up nearly 10%, mostly from money market accounts that can be rate-adjusted anytime.

The mortgage group had significant improvement, with a $4.1 million pre-tax income versus a large loss in 2023. The hard cuts we made in the cyclical slowdown have given us much operational leverage and allows us to pivot quickly based on market conditions. Part of the cuts included prepaying a major lease at a discount and allowing many operations personnel to work from home. The Philadelphia metro region is still very low in housing inventory, which stymied an even bigger improvement in our business.

Our wealth segment had a banner year with pre-tax income nearly doubling to $2.4 million. Strong growth in assets under management along with better stock market returns were the big contributors. We will devote more resources to wealth in 2025 to leverage our brand and deepen relationships with our commercial customers for referrals.

We are encouraged by the new administration and communications about reduced regulatory burdens and prospects for economic growth. Our regulatory costs are substantial and, quite frankly, make little sense for a bank our size that is not systemically significant. We are hopeful that new and broader thinking can help banks like Meridian to better serve their markets and produce better returns for shareholders.

Select Condensed Financial Information

	As of or for the three months ended (Unaudited)
	December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023
	(Dollars in thousands, except per share data)
Income:
Net income	$	5,601		$	4,743		$	3,326		$	2,676		$	571
Basic earnings per common share		0.50			0.43			0.30			0.24			0.05
Diluted earnings per common share		0.49			0.42			0.30			0.24			0.05
Net interest income		19,299			18,242			16,846			16,609			16,942

Balance Sheet:
Total assets	$	2,385,867		$	2,387,721		$	2,351,584		$	2,292,923		$	2,246,193
Loans, net of fees and costs		2,030,437			2,008,396			1,988,535			1,956,315			1,895,806
Total deposits		2,005,368			1,978,927			1,915,436			1,900,696			1,823,462
Non-interest bearing deposits		240,858			237,207			224,040			220,581			239,289
Stockholders’ equity		171,522			167,450			162,382			159,936			158,022

Balance Sheet Average Balances:
Total assets	$	2,434,270		$	2,373,261		$	2,319,295		$	2,269,047		$	2,219,340
Total interest earning assets		2,342,651			2,277,523			2,222,177			2,173,212			2,121,068
Loans, net of fees and costs		2,029,739			1,997,574			1,972,740			1,944,187			1,891,170
Total deposits		2,043,505			1,960,145			1,919,954			1,823,523			1,820,532
Non-interest bearing deposits		259,118			246,310			229,040			233,255			254,025
Stockholders’ equity		171,214			165,309			162,119			159,822			157,210

Performance Ratios (Annualized):
Return on average assets		0.92	%		0.80	%		0.58	%		0.47	%		0.10	%
Return on average equity		13.01	%		11.41	%		8.25	%		6.73	%		1.44	%

Income Statement – Fourth Quarter 2024 Compared to Third Quarter 2024

Fourth quarter net income increased $858 thousand, or 18.1%, to $5.6 million due to increased net interest income, combined with increased non-interest income which included a gain of $4.0 million on the sale of mortgage servicing rights, along with a $317 thousand gain on sale of a residential property included in other real estate owned. These increases were largely offset by a quarterly provision for credit losses that was higher by $1.3 million and an increase in non-interest expense of $865 thousand, or 4.2%, which was impacted by the early termination of the Blue Bell lease. Detailed explanations of the major categories of income and expense follow below.

Net Interest income

The rate/volume analysis table below analyzes dollar changes in the components of interest income and interest expense as they relate to the change in balances (volume) and the change in interest rates (rate) of tax-equivalent net interest income for the periods indicated and allocated by rate and volume. Changes in interest income and/or expense related to changes attributable to both volume and rate have been allocated proportionately based on the relationship of the absolute dollar amount of the change in each category.

	Three Months Ended
(dollars in thousands)	December 31, 2024		September 30, 2024		$ Change			% Change		Change due to rate			Change due to volume
Interest income:
Cash and cash equivalents	$	801	$	416	$	385		92.5	%	$	(52	)	$	437
Investment securities – taxable		1,684		1,480		204		13.8	%		124			80
Investment securities – tax exempt⁽¹⁾		397		397		—		—	%		5			(5	)
Loans held for sale		565		766		(201	)	(26.2	)%		(49	)		(152	)
Loans held for investment⁽¹⁾		36,666		37,339		(673	)	(1.8	)%		(1,268	)		595
Total loans		37,231		38,105		(874	)	(2.3	)%		(1,317	)		443
Total interest income	$	40,113	$	40,398	$	(285	)	(0.7	)%	$	(1,240	)	$	955
Interest expense:
Interest-bearing demand deposits	$	1,244	$	1,390	$	(146	)	(10.5	)%	$	(234	)	$	88
Money market and savings deposits		8,266		8,391		(125	)	(1.5	)%		(934	)		809
Time deposits		8,831		9,532		(701	)	(7.4	)%		(465	)		(236	)
Total interest – bearing deposits		18,341		19,313		(972	)	(5.0	)%		(1,633	)		661
Borrowings		1,608		1,985		(377	)	(19.0	)%		(10	)		(367	)
Subordinated debentures		780		779		1		0.1	%		—			1
Total interest expense		20,729		22,077		(1,348	)	(6.1	)%		(1,643	)		295
Net interest income differential	$	19,384	$	18,321	$	1,063		5.80	%	$	403		$	660
(1) Reflected on a tax-equivalent basis.

Interest income decreased $285 thousand quarter-over-quarter on a tax equivalent basis, driven by rate changes, particularly in the loan portfolio. The overall yield on earnings assets decreased 25 basis points during the period, impacting interest income by $1.2 million. This decrease was significantly offset by favorable volume changes as the level of average earning assets increased by $65.1 million contributing $955 thousand to lessen the interest income decrease.

Average total loans, excluding residential loans for sale, increased $32.5 million resulting in an increase due to volume in interest income of $595 thousand. The largest drivers of this increase were commercial, commercial real estate, and small business loans which on a combined basis increased $40.4 million on average, partially offset by a decrease in average leases of $11.4 million. Home equity, residential real estate, consumer and other loans held in portfolio increased on a combined basis $3.2 million on average. The yield on total loans decreased 24 basis points, and the yield on cash and investments increased 6 basis points on a combined basis.

Total interest expense decreased $1.3 million, quarter-over-quarter, due to a lower volume of time deposits and borrowings, combined with a decrease in the cost of all deposit types, despite a higher level of interest-bearing and money market deposits. Interest expense on total deposits decreased $972 thousand and interest expense on borrowings decreased $377 thousand. During the period, interest-bearing deposits and money market accounts increased $8.8 million and $81.4 million on average, respectively, while time deposits decreased $19.7 million on average. Borrowings decreased $29.7 million on average. Overall increase in interest expense on deposits due to volume changes was $661 thousand.

The cost of interest-bearing deposits decreased 35 basis points driven by certain money market funds and wholesale time deposits which repriced at lower costs. The total decrease in interest expense on deposits attributable to rate changes was $1.6 million. Overall the net interest margin increased 9 basis points to 3.29% as the cost of funds decline outpaced the decline in yield on earning assets, and non-interest bearing balances increased $14.2 million on average.

Provision for Credit Losses

The overall provision for credit losses for the fourth quarter increased $1.3 million to $3.6 million, from $2.3 million in the third quarter. The provision for funded loans increased $1.6 million and the provision on unfunded loan commitments decreased $331 thousand during the current quarter. The fourth quarter provision for funded loans of $3.6 million increased from the prior quarter due largely to an increase of $5.0 million in net charge-offs and was positively impacted by favorable changes in certain portfolio baseline loss rates.

Non-interest income

The following table presents the components of non-interest income for the periods indicated:

	Three Months Ended
(Dollars in thousands)	December 31, 2024			September 30, 2024			$ Change			% Change
Mortgage banking income	$	5,516		$	6,474		$	(958	)	(14.8	)%
Wealth management income		1,527			1,447			80		5.5	%
SBA loan income		1,143			544			599		110.1	%
Earnings on investment in life insurance		224			222			2		0.9	%
Gain on sale of MSRs		3,992			—			3,992		100.0	%
Net change in the fair value of derivative instruments		(146	)		(102	)		(44	)	43.1	%
Net change in the fair value of loans held-for-sale		(163	)		169			(332	)	(196.4	)%
Net change in the fair value of loans held-for-investment		(552	)		965			(1,517	)	(157.2	)%
Net (loss) gain on hedging activity		192			(197	)		389		(197.5	)%
Net loss on sale of investment securities available-for-sale		2			(57	)		59		(103.5	)%
Other		1,545			1,366			179		13.1	%
Total non-interest income	$	13,280		$	10,831		$	2,449		22.6	%

Total non-interest income increased $2.4 million, or 22.6%, quarter-over-quarter after recognizing a gain of $4.0 million on the sale of $6.6 million in residential mortgage loan servicing rights; change in gains of $389 thousand in hedging activity; and a $317 thousand gain on the sale of a $1.7 million residential OREO property, which is recorded in other non-interest income. In addition, SBA income increased $599 thousand due largely to a higher level of SBA loan sales. SBA loans sold for the quarter-ended December 31, 2024 totaled $19.9 million, up $8.0 million, or 67.4%, compared to the quarter-ended September 30, 2024. The gross margin on SBA sales was 7.5% for the quarter, down from 7.9% for the previous quarter. These gains were partially offset by unfavorable portfolio fair value changes of $1.9 million combined, and lower levels of mortgage banking income, which decreased $1.0 million, or 14.8%. Mortgage loan sales decreased $29.8 million or 12.1% quarter over quarter driving lower gain on sale income at a slightly lower margin.

Non-interest expense

The following table presents the components of non-interest expense for the periods indicated:

	Three Months Ended
(Dollars in thousands)	December 31, 2024		September 30, 2024		$ Change			% Change
Salaries and employee benefits	$	12,429	$	12,829	$	(400	)	(3.1	)%
Occupancy and equipment		2,270		1,243		1,027		82.6	%
Professional fees		1,134		1,106		28		2.5	%
Data processing and software		1,553		1,553		—		—	%
Advertising and promotion		839		717		122		17.0	%
Pennsylvania bank shares tax		243		181		62		34.3	%
Other		2,943		2,917		26		0.9	%
Total non-interest expense	$	21,411	$	20,546	$	865		4.2	%

Occupancy and equipment expense increased $1.0 million, net, due to fees, credits and other disposal costs for the early termination of the Blue Bell lease. The lease termination is expected to improve occupancy expense by $359 thousand per year. Advertising and promotion, which includes business development with other expenses, were up $148 thousand due to seasonal events. These increases were partially offset by a decrease in salaries and benefits of $400 thousand. Bank and wealth segments combined increased $5 thousand, while the mortgage segment decreased $405 thousand. Mortgage segment salaries, commissions, and employee benefits expense are impacted by volume and decreased commensurate with the lower levels of originations, which were down $36.1 million over the prior quarter.

Balance Sheet – December 31, 2024 Compared to September 30, 2024

Total assets decreased $1.9 million, or 0.1%, to $2.4 billion as of December 31, 2024 from $2.4 billion at September 30, 2024. Despite continued strong loan growth during the quarter, total assets decreased due to the decline in mortgage loans held for sale and the sale of mortgage servicing rights. Interest-bearing cash increased $2.1 million, or 10.4%, to $21.9 million as of December 31, 2024, from September 30, 2024.

Portfolio loan growth was $22.8 million, or 1.1% quarter-over-quarter. The portfolio growth was generated from commercial mortgage loans which increased $23.0 million, or 2.9%, construction loans which increased $9.0 million, or 3.6%, commercial & industrial loans which increased $3.5 million, or 1.0%. Lease financings decreased $10.7 million, or 12.4% from September 30, 2024, partially offsetting the above noted loan growth, but this decline was expected as we continue to refocus away from lease originations.

Total deposits increased $26.4 million, or 1.3% quarter-over-quarter, due largely to higher levels of money market accounts and interest bearing demand deposits to a lesser degree. Money market accounts and savings accounts increased a combined $90.7 million, while interest bearing demand deposits increased $8.0 million. Time deposits decreased $75.9 million from largely wholesale efforts. Non-interest bearing deposits increased $3.7 million. Overall borrowings decreased $20.4 million, or 14.1% quarter-over-quarter.

Total stockholders’ equity increased by $4.1 million from September 30, 2024, to $171.5 million as of December 31, 2024. Changes to equity for the current quarter included net income of $5.6 million, less dividends paid of $1.4 million, offset by a decrease of $876 thousand in other comprehensive income. The Community Bank Leverage Ratio for the Bank was 9.21% at December 31, 2024.

Asset Quality Summary

Non-performing loans decreased $18 thousand to $45.1 million at December 31, 2024 compared to $45.1 million at September 30, 2024. As a result of the decrease, the ratio of non-performing loans to total loans decreased 1 bps to 2.19% as of December 31, 2024, from 2.20% as of September 30, 2024. During the quarter a $1.7 million residential property in OREO was sold, reducing non-performing assets by $1.7 million. As a result, the ratio of non-performing assets to total assets decreased 7 bps to 1.90% as of December 31, 2024, compared to 1.97% as of September 30, 2024. The decrease in non-performing loans was primarily due to the partial charge-off of a commercial loan relationship discussed below, largely offset by an increase in non-performing construction loans.

Meridian realized net charge-offs of 0.34% of total average loans for the quarter ended December 31, 2024, up from 0.11% for the quarter ended September 30, 2024. Net charge-offs increased to $7.1 million for the quarter ended December 31, 2024, compared to net charge-offs of $2.3 million for the quarter ended September 30, 2024. Fourth quarter charge-offs consisted of $3.5 million in charge-offs on a protracted commercial advertising loan relationship, $1.3 million of small ticket equipment leases which are charged-off after becoming more than 120 days past due, and $1.7 million in SBA loans. Overall there were recoveries of $315 thousand, largely related to leases and small business loans.

The ratio of allowance for credit losses to total loans held for investment, excluding loans at fair value (a non-GAAP measure, see reconciliation in the Appendix), was 0.91% as of December 31, 2024, a decrease from the coverage ratio of 1.10% as of September 30, 2024 due largely to the level of charge-offs in the quarter discussed above. As of December 31, 2024 there were specific reserves of $2.7 million against individually evaluated loans, a decrease of $4.1 million from $6.8 million in specific reserves as of September 30, 2024. The specific reserve decline over the prior quarter was the result of the commercial loan relationship specific reserve charge-off, combined with specific reserve charge-offs on SBA loans, while new specific reserves were established on additional SBA loans in the current quarter.

About Meridian Corporation

Meridian Bank, the wholly owned subsidiary of Meridian Corporation, is an innovative community bank serving Pennsylvania, New Jersey, Delaware and Maryland. Through its 18 offices, including banking branches and mortgage locations, Meridian offers a full suite of financial products and services. Meridian specializes in business and industrial lending, retail and commercial real estate lending, electronic payments, and wealth management solutions through Meridian Wealth Partners. Meridian also offers a broad menu of high-yield depository products supported by robust online and mobile access. For additional information, visit our website at http://www.meridianbanker.com. Member FDIC.

“Safe Harbor” Statement

In addition to historical information, this press release may contain “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements with respect to Meridian Corporation’s strategies, goals, beliefs, expectations, estimates, intentions, capital raising efforts, financial condition and results of operations, future performance and business. Statements preceded by, followed by, or that include the words “may,” “could,” “should,” “pro forma,” “looking forward,” “would,” “believe,” “expect,” “anticipate,” “estimate,” “intend,” “plan,” or similar expressions generally indicate a forward-looking statement. These forward-looking statements involve risks and uncertainties that are subject to change based on various important factors (some of which, in whole or in part, are beyond Meridian Corporation’s control). Numerous competitive, economic, regulatory, legal and technological factors, risks and uncertainties that could cause actual results to differ materially include, without limitation, credit losses and the credit risk of our commercial and consumer loan products; changes in the level of charge-offs and changes in estimates of the adequacy of the allowance for credit losses, or ACL; cyber-security concerns; rapid technological developments and changes; increased competitive pressures; changes in spreads on interest-earning assets and interest-bearing liabilities; changes in general economic conditions and conditions within the securities markets; unanticipated changes in our liquidity position; unanticipated changes in regulatory and governmental policies impacting interest rates and financial markets; legislation affecting the financial services industry as a whole, and Meridian Corporation, in particular; changes in accounting policies, practices or guidance; developments affecting the industry and the soundness of financial institutions and further disruption to the economy and U.S. banking system; among others, could cause Meridian Corporation’s financial performance to differ materially from the goals, plans, objectives, intentions and expectations expressed in such forward-looking statements. Meridian Corporation cautions that the foregoing factors are not exclusive, and neither such factors nor any such forward-looking statement takes into account the impact of any future events. All forward-looking statements and information set forth herein are based on management’s current beliefs and assumptions as of the date hereof and speak only as of the date they are made. For a more complete discussion of the assumptions, risks and uncertainties related to our business, you are encouraged to review Meridian Corporation’s filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2023 and subsequently filed quarterly reports on Form 10-Q and current reports on Form 8-K that update or provide information in addition to the information included in the Form 10-K and Form 10-Q filings, if any. Meridian Corporation does not undertake to update any forward-looking statement whether written or oral, that may be made from time to time by Meridian Corporation or by or on behalf of Meridian Bank.

MERIDIAN CORPORATION AND SUBSIDIARIES FINANCIAL RATIOS (Unaudited) (Dollar amounts and shares in thousands, except per share amounts)
	Three Months Ended
	December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023
Earnings and Per Share Data:
Net income	$	5,601		$	4,743		$	3,326		$	2,676		$	571
Basic earnings per common share	$	0.50		$	0.43		$	0.30		$	0.24		$	0.05
Diluted earnings per common share	$	0.49		$	0.42		$	0.30		$	0.24		$	0.05
Common shares outstanding		11,240			11,229			11,191			11,186			11,183

Performance Ratios:
Return on average assets⁽²⁾		0.92	%		0.80	%		0.58	%		0.47	%		0.10	%
Return on average equity⁽²⁾		13.01			11.41			8.25			6.73			1.44
Net interest margin (tax-equivalent)⁽²⁾		3.29			3.20			3.06			3.09			3.18
Yield on earning assets (tax-equivalent)⁽²⁾		6.81			7.06			6.98			6.90			6.81
Cost of funds⁽²⁾		3.71			4.05			4.10			4.00			3.81
Efficiency ratio		65.72	%		70.67	%		72.89	%		73.90	%		78.63	%

Asset Quality Ratios:
Net charge-offs (recoveries) to average loans		0.34	%		0.11	%		0.20	%		0.12	%		0.11	%
Non-performing loans to total loans		2.19			2.20			1.84			1.93			1.76
Non-performing assets to total assets		1.90			1.97			1.68			1.74			1.58
Allowance for credit losses to:
Total loans and other finance receivables		0.91			1.09			1.09			1.18			1.17
Total loans and other finance receivables (excluding loans at fair value)⁽¹⁾		0.91			1.10			1.10			1.19			1.17
Non-performing loans		40.86	%		48.66	%		57.66	%		60.59	%		65.48	%

Capital Ratios:
Book value per common share	$	15.26		$	14.91		$	14.51		$	14.30		$	14.13
Tangible book value per common share	$	14.93		$	14.58		$	14.17		$	13.96		$	13.78
Total equity/Total assets		7.19	%		7.01	%		6.91	%		6.98	%		7.04	%
Tangible common equity/Tangible assets – Corporation⁽¹⁾		7.05			6.87			6.76			6.82			6.87
Tangible common equity/Tangible assets – Bank⁽¹⁾		9.06			8.95			8.85			8.93			8.94
Tier 1 leverage ratio – Bank		9.21			9.32			9.33			9.42			9.46
Common tier 1 risk-based capital ratio – Bank		10.33			10.17			9.84			9.87			10.10
Tier 1 risk-based capital ratio – Bank		10.33			10.17			9.84			9.87			10.10
Total risk-based capital ratio – Bank		11.20	%		11.22	%		10.84	%		10.95	%		11.17	%
(1) See Non-GAAP reconciliation in the Appendix
(2) Annualized

MERIDIAN CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (Dollar amounts and shares in thousands, except per share amounts)
	Three Months Ended									Year Ended
	December 31, 2024			September 30, 2024			December 31, 2023			December 31, 2024			December 31, 2023
Interest income:
Loans and other finance receivables, including fees	$	37,229		$	38,103		$	34,469		$	147,157		$	130,081
Securities – taxable		1,684			1,480			1,020			5,739			3,873
Securities – tax-exempt		314			320			331			1,283			1,369
Cash and cash equivalents		801			416			526			1,848			1,266
Total interest income		40,028			40,319			36,346			156,027			136,589
Interest expense:
Deposits		18,341			19,313			16,806			74,037			57,819
Borrowings and subordinated debentures		2,388			2,764			2,598			10,994			9,828
Total interest expense		20,729			22,077			19,404			85,031			67,647
Net interest income		19,299			18,242			16,942			70,996			68,942
Provision for credit losses		3,572			2,282			4,628			11,400			6,815
Net interest income after provision for credit losses		15,727			15,960			12,314			59,596			62,127
Non-interest income:
Mortgage banking income		5,516			6,474			3,394			21,044			16,537
Wealth management income		1,527			1,447			1,239			5,735			4,928
SBA loan income		1,143			544			1,022			3,458			4,485
Earnings on investment in life insurance		224			222			204			868			789
Gain on sale of MSRs		3,992			—			—			3,992			—
Net change in the fair value of derivative instruments		(146	)		(102	)		(126	)		30			91
Net change in the fair value of loans held-for-sale		(163	)		169			120			(25	)		32
Net change in the fair value of loans held-for-investment		(552	)		965			805			214			132
Net (loss) gain on hedging activity		192			(197	)		(53	)		(87	)		28
Net loss on sale of investment securities available-for-sale		2			(57	)		—			(55	)		(58	)
Other		1,545			1,366			1,512			6,166			5,001
Total non-interest income		13,280			10,831			8,117			41,339			31,965
Non-interest expense:
Salaries and employee benefits		12,429			12,829			11,744			47,268			47,377
Occupancy and equipment		2,270			1,243			1,232			5,976			4,842
Professional fees		1,134			1,106			1,382			4,767			4,312
Data processing and software		1,553			1,553			1,651			6,144			6,415
Advertising and promotion		839			717			931			3,293			3,730
Pennsylvania bank shares tax		243			181			233			972			968
Other		2,943			2,917			2,530			10,729			9,481
Total non-interest expense		21,411			20,546			19,703			79,149			77,125
Income before income taxes		7,596			6,245			728			21,786			16,967
Income tax expense		1,995			1,502			157			5,440			3,724
Net income	$	5,601		$	4,743		$	571		$	16,346		$	13,243

Basic earnings per common share	$	0.50		$	0.43		$	0.05		$	1.47		$	1.19
Diluted earnings per common share	$	0.49		$	0.42		$	0.05		$	1.45		$	1.16

Basic weighted average shares outstanding		11,158			11,110			11,070			11,113			11,115
Diluted weighted average shares outstanding		11,375			11,234			11,206			11,243			11,387

MERIDIAN CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CONDITION (Unaudited) (Dollar amounts and shares in thousands, except per share amounts)
	December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023
Assets:
Cash and due from banks	$	5,598		$	12,542		$	8,457		$	8,935		$	10,067
Interest-bearing deposits at other banks		21,864			19,805			15,601			14,092			46,630
Cash and cash equivalents		27,462			32,347			24,058			23,027			56,697
Securities available-for-sale, at fair value		174,304			171,568			159,141			150,996			146,019
Securities held-to-maturity, at amortized cost		33,771			33,833			35,089			35,157			35,781
Equity investments		2,086			2,166			2,088			2,092			2,121
Mortgage loans held for sale, at fair value		32,413			46,602			54,278			29,124			24,816
Loans and other finance receivables, net of fees and costs		2,030,437			2,008,396			1,988,535			1,956,315			1,895,806
Allowance for credit losses		(18,438	)		(21,965	)		(21,703	)		(23,171	)		(22,107	)
Loans and other finance receivables, net of the allowance for credit losses		2,011,999			1,986,431			1,966,832			1,933,144			1,873,699
Restricted investment in bank stock		7,753			8,542			10,044			8,560			8,072
Bank premises and equipment, net		12,151			12,807			13,114			13,451			13,557
Bank owned life insurance		29,712			29,489			29,267			29,051			28,844
Accrued interest receivable		9,958			10,012			9,973			9,864			9,325
Other real estate owned		159			1,862			1,862			1,703			1,703
Deferred income taxes		4,669			3,537			3,950			4,339			4,201
Servicing assets		4,382			4,364			11,341			11,573			11,748
Servicing assets held for sale		—			6,609			—			—			—
Goodwill		899			899			899			899			899
Intangible assets		2,767			2,818			2,869			2,920			2,971
Other assets		31,382			33,835			26,779			37,023			25,740
Total assets	$	2,385,867		$	2,387,721		$	2,351,584		$	2,292,923		$	2,246,193

Liabilities:
Deposits:
Non-interest bearing	$	240,858		$	237,207		$	224,040		$	220,581		$	239,289
Interest bearing
Interest checking		141,439			133,429			130,062			121,204			150,898
Money market and savings deposits		913,536			822,837			787,479			797,525			747,803
Time deposits		709,535			785,454			773,855			761,386			685,472
Total interest-bearing deposits		1,764,510			1,741,720			1,691,396			1,680,115			1,584,173
Total deposits		2,005,368			1,978,927			1,915,436			1,900,696			1,823,462
Borrowings		124,471			144,880			187,260			145,803			174,896
Subordinated debentures		49,743			49,928			49,897			49,867			49,836
Accrued interest payable		6,860			7,017			7,709			8,350			10,324
Other liabilities		27,903			39,519			28,900			28,271			29,653
Total liabilities		2,214,345			2,220,271			2,189,202			2,132,987			2,088,171

Stockholders’ equity:
Common stock		13,243			13,232			13,194			13,189			13,186
Surplus		81,545			81,002			80,639			80,487			80,325
Treasury stock		(26,079	)		(26,079	)		(26,079	)		(26,079	)		(26,079	)
Unearned common stock held by employee stock ownership plan		(1,006	)		(1,204	)		(1,204	)		(1,204	)		(1,204	)
Retained earnings		111,961			107,765			104,420			102,492			101,216
Accumulated other comprehensive loss		(8,142	)		(7,266	)		(8,588	)		(8,949	)		(9,422	)
Total stockholders’ equity		171,522			167,450			162,382			159,936			158,022
Total liabilities and stockholders’ equity	$	2,385,867		$	2,387,721		$	2,351,584		$	2,292,923		$	2,246,193

MERIDIAN CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SEGMENT INFORMATION (Unaudited) (Dollar amounts and shares in thousands, except per share amounts)
	Three Months Ended
	December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023
Interest income	$	40,028	$	40,319	$	38,465	$	37,215	$	36,346
Interest expense		20,729		22,077		21,619		20,606		19,404
Net interest income		19,299		18,242		16,846		16,609		16,942
Provision for credit losses		3,572		2,282		2,680		2,866		4,628
Non-interest income		13,280		10,831		9,244		7,984		8,117
Non-interest expense		21,411		20,546		19,018		18,174		19,703
Income before income tax expense		7,596		6,245		4,392		3,553		728
Income tax expense		1,995		1,502		1,066		877		157
Net Income	$	5,601	$	4,743	$	3,326	$	2,676	$	571

Basic weighted average shares outstanding		11,158		11,110		11,096		11,088		11,070
Basic earnings per common share	$	0.50	$	0.43	$	0.30	$	0.24	$	0.05

Diluted weighted average shares outstanding		11,375		11,234		11,150		11,201		11,206
Diluted earnings per common share	$	0.49	$	0.42	$	0.30	$	0.24	$	0.05

	Segment Information
	Three Months Ended December 31, 2024												Three Months Ended December 31, 2023
(dollars in thousands)	Bank			Wealth			Mortgage			Total			Bank			Wealth			Mortgage			Total
Net interest income	$	19,178		$	70		$	51		$	19,299		$	16,908		$	(15	)	$	49		$	16,942
Provision for credit losses		3,572			—			—			3,572			4,628			—			—			4,628
Net interest income after provision		15,606			70			51			15,727			12,280			(15	)		49			12,314
Non-interest income		2,669			1,527			9,084			13,280			2,051			1,239			4,827			8,117
Non-interest expense		13,641			1,026			6,744			21,411			13,202			957			5,544			19,703
Income (loss) before income taxes	$	4,634		$	571		$	2,391		$	7,596		$	1,129		$	267		$	(668	)	$	728
Efficiency ratio		62	%		64	%		74	%		66	%		70	%		78	%		114	%		79	%

	Year Ended December 31, 2024												Year Ended December 31, 2023
(dollars in thousands)	Bank			Wealth			Mortgage			Total			Bank			Wealth			Mortgage			Total
Net interest income	$	70,706		$	146		$	144		$	70,996		$	68,835		$	(27	)	$	134		$	68,942
Provision for credit losses		11,400			—			—			11,400			6,815			—			—			6,815
Net interest income after provision		59,306			146			144			59,596			62,020			(27	)		134			62,127
Non-interest income		7,576			5,735			28,028			41,339			7,743			4,928			19,294			31,965
Non-interest expense		51,584			3,506			24,059			79,149			48,827			3,661			24,637			77,125
Income (loss) before income taxes	$	15,298		$	2,375		$	4,113		$	21,786		$	20,936		$	1,240		$	(5,209	)	$	16,967
Efficiency ratio		66	%		60	%		85	%		70	%		64	%		75	%		127	%		76	%

MERIDIAN CORPORATION AND SUBSIDIARIES
APPENDIX: NON-GAAP MEASURES (Unaudited)
(Dollar amounts and shares in thousands, except per share amounts)

Meridian believes that non-GAAP measures are meaningful because they reflect adjustments commonly made by management, investors, regulators and analysts. The non-GAAP disclosure have limitations as an analytical tool, should not be viewed as a substitute for performance and financial condition measures determined in accordance with GAAP, and should not be considered in isolation or as a substitute for analysis of Meridian’s results as reported under GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies.

	Pre-tax, Pre-provision Reconciliation
	Three Months Ended						Year Ended
(Dollars in thousands, except per share data, Unaudited)	December 31, 2024		September 30, 2024		December 31, 2023		December 31, 2024		December 31, 2023
Income before income tax expense	$	7,596	$	6,245	$	728	$	21,786	$	16,967
Provision for credit losses		3,572		2,282		4,628		11,400		6,815
Pre-tax, pre-provision income	$	11,168	$	8,527	$	5,356	$	33,186	$	23,782

	Pre-tax, Pre-provision Reconciliation
	Three Months Ended							Year Ended
(Dollars in thousands, except per share data, Unaudited)	December 31, 2024		September 30, 2024		December 31, 2023			December 31, 2024		December 31, 2023
Bank	$	8,206	$	6,222	$	5,757		$	26,698	$	27,751
Wealth		571		653		267			2,375		1,240
Mortgage		2,391		1,652		(668	)		4,113		(5,209	)
Pre-tax, pre-provision income	$	11,168	$	8,527	$	5,356		$	33,186	$	23,782

	Allowance For Credit Losses (ACL) to Loans and Other Finance Receivables, Excluding and Loans at Fair Value
	December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023
Allowance for credit losses (GAAP)	$	18,438		$	21,965		$	21,703		$	23,171		$	22,107

Loans and other finance receivables (GAAP)		2,030,437			2,008,396			1,988,535			1,956,315			1,895,806
Less: Loans at fair value		(14,501	)		(13,965	)		(12,900	)		(13,139	)		(13,726	)
Loans and other finance receivables, excluding loans at fair value (non-GAAP)	$	2,015,936		$	1,994,431		$	1,975,635		$	1,943,176		$	1,882,080

ACL to loans and other finance receivables (GAAP)		0.91	%		1.09	%		1.09	%		1.18	%		1.17	%
ACL to loans and other finance receivables, excluding loans at fair value (non-GAAP)		0.91	%		1.10	%		1.10	%		1.19	%		1.17	%

	Tangible Common Equity Ratio Reconciliation – Corporation
	December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023
Total stockholders’ equity (GAAP)	$	171,522		$	167,450		$	162,382		$	159,936		$	158,022
Less: Goodwill and intangible assets		(3,666	)		(3,717	)		(3,768	)		(3,819	)		(3,870	)
Tangible common equity (non-GAAP)		167,856			163,733			158,614			156,117			154,152

Total assets (GAAP)		2,385,867			2,387,721			2,351,584			2,292,923			2,246,193
Less: Goodwill and intangible assets		(3,666	)		(3,717	)		(3,768	)		(3,819	)		(3,870	)
Tangible assets (non-GAAP)	$	2,382,201		$	2,384,004		$	2,347,816		$	2,289,104		$	2,242,323
Tangible common equity to tangible assets ratio – Corporation (non-GAAP)		7.05	%		6.87	%		6.76	%		6.82	%		6.87	%

	Tangible Common Equity Ratio Reconciliation – Bank
	December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023
Total stockholders’ equity (GAAP)	$	219,119		$	217,028		$	211,308		$	208,319		$	204,132
Less: Goodwill and intangible assets		(3,666	)		(3,717	)		(3,768	)		(3,819	)		(3,870	)
Tangible common equity (non-GAAP)		215,453			213,311			207,540			204,500			200,262

Total assets (GAAP)		2,382,014			2,385,994			2,349,600			2,292,894			2,244,893
Less: Goodwill and intangible assets		(3,666	)		(3,717	)		(3,768	)		(3,819	)		(3,870	)
Tangible assets (non-GAAP)	$	2,378,348		$	2,382,277		$	2,345,832		$	2,289,075		$	2,241,023
Tangible common equity to tangible assets ratio – Bank (non-GAAP)		9.06	%		8.95	%		8.85	%		8.93	%		8.94	%


	Tangible Book Value Reconciliation
	December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023
Book value per common share	$	15.26		$	14.91		$	14.51		$	14.30		$	14.13
Less: Impact of goodwill /intangible assets		0.33			0.33			0.34			0.34			0.35
Tangible book value per common share	$	14.93		$	14.58		$	14.17		$	13.96		$	13.78

Contact:
Christopher J. Annas
484.568.5001
CAnnas@meridianbanker.com

The MIL Network –

January 25, 2025

MIL-OSI Global: President Trump promises to make government efficient − and he’ll run into the same roadblocks as Presidents Taft, Roosevelt, Roosevelt, Truman, Eisenhower, Carter, Reagan, Clinton and Bush, among others

Source: The Conversation – USA – By Jennifer Selin, Associate Professor of Law, Arizona State University

President Donald Trump signs executive orders in the Oval Office of the White House on Jan. 20, 2025. Anna Moneymaker/Getty Images

As President Donald Trump issued a slew of executive orders and directives on his first day of his second administration, he explained his actions by saying, “It’s all about common sense.”

For over a century, presidents have pursued initiatives to improve the efficiency and effectiveness of government, couching those efforts in language similar to Trump’s.

Many of these, like Trump’s Department of Government Efficiency, which he appointed billionaire Elon Musk to run, have been designed to capitalize on the expertise of people outside of government. The idea often cited as inspiration for these efforts: The private sector knows how to be efficient and nimble and strives for excellence; government doesn’t.

But government, and government service, is about providing something that the private sector can’t. And outsiders often don’t think about the accountability requirements that the laws and Constitution of the United States impose on government workers and agencies.

Congress, though, can help address these problems and check inappropriate proposals. It can also stand in the way of reform.

Charles E. Merriam, left, and Louis Brownlow, members of the President’s Reorganization Committee, leave the White House after discussing government reorganization with President Franklin D. Roosevelt on Sept. 23, 1938.
Harris & Ewing, photographer, Library of Congress

Proposing reform is nothing new

Perhaps the most famous group to work with a president on improving government was President Franklin D. Roosevelt’s Committee on Administrative Management, established in 1936.

That group, commonly referred to as the Brownlow Committee, noted that while critics predicted Roosevelt would bring “decay, destruction, and death of democracy,” the executive branch – and the president who sat atop it – was one of the “very greatest” contributions to modern democracy.

The committee argued that the president was unable to do his job because the executive branch was badly organized, federal employees lacked skills and character, and the budget process needed reform. So it proposed a series of changes designed to increase presidential power over government to enhance performance. Congress went along with some of these proposals, giving the president more staff and authority to reorganize the executive branch.

Since then, almost every president has put together similar recommendations. For example, Presidents Harry S. Truman and Dwight D. Eisenhower appointed former President Herbert Hoover to lead advisory commissions designed to recommend changes to the federal government. President Jimmy Carter launched a series of government improvement projects, and President George W. Bush even created scorecards to rank agencies according to their performance.

In his first term, Trump issued a mandate for reform to reorganize government for the 21st century.

This time around, Trump has taken executive actions to freeze government hiring, create a new entity to promote government efficiency, and give him the ability to fire high-ranking administrators who influence policy.

Most presidential proposals generally fail to come to fruition. But they often spark conversations in Congress and the media about executive power, the effectiveness of federal programs, and what government can do better.

Most presidents have tried the same thing

Historically, most presidents and their advisers – and indeed most scholars – have agreed that government bureaucracy is not designed in ways that promote efficiency. But that is intentional: Stanford political scientist Terry Moe has written that “American public bureaucracy is not designed to be effective. The bureaucracy arises out of politics, and its design reflects the interests, strategies, and compromises of those who exercise political power.”

A common presidential response to this practical reality is to propose government changes that make it look more like the private sector. In 1982, President Ronald Reagan brought together 161 corporate executives overseen by industrialist J. Peter Grace to make recommendations to eliminate government waste and inefficiency, based on their experiences leading successful corporations.

In 1993, President Bill Clinton authorized Vice President Al Gore to launch an effort to reinvent the federal government into one that worked better and cost less.

The Clinton administration created teams in every major federal agency, modeled after the private sector’s efficiency standards, to move government “From Red Tape to Results,” as the title of the administration’s plan said.

An introductory page from the 1993 National Performance Review executive summary, commissioned by the Clinton administration.
CIA.gov

Presidential attempts to make government look and work more like people think the private sector works often include adjustments to the terms of federal employment to reward employees who excel at their jobs.

In 1905, for example, President Theodore Roosevelt established a Committee on Department Methods to examine how the federal government could recruit and retain highly qualified employees. One hundred years later, federal agencies still experienced challenges](https://www.gao.gov/assets/gao-03-2.pdf) related to hiring and retaining people who could effectively achieve agency missions.

President Bill Clinton applauds as Vice President Al Gore speaks at a press conference on March 3, 1994, at which Gore gave Clinton a report of the National Performance Review.
Paul J. Richards/AFP via Getty Images

So why haven’t these plans worked?

At least the past five presidents have faced problems in making long-term changes to government.

In part, this is because government reorganizations and operational reforms like those contemplated by Trump require Congress to make adjustments to the laws of the United States, or at least give the president and federal agencies the money required to invest in changes.

Consider, for example, presidential proposals to invest in new technologies, which are a large part of Trump and Musk’s plans to improve government efficiency. Since at least 1910, when President William Howard Taft established a Commission on Economy and Efficiency to address the “unnecessarily complicated and expensive” way the federal government handled and distributed government documents, presidents have recommended centralizing authority to mandate federal agencies’ use of new technologies to make government more efficient.

But transforming government through technology requires money, people and time. Presidential plans for government-wide change are contingent upon the degree to which federal agencies can successfully implement them.

To sidestep these problems, some presidents have proposed that the government work with the private sector. For example, Trump announced a joint venture with technology companies to invest in the government’s artificial intelligence infrastructure.

Yet as I have found in my previous research, government investment in new technology first requires an assessment of agencies’ current technological skills and the impact technology will have on agency functions, including those related to governmental transparency, accountability and constitutional due process. It’s not enough to go out and buy software that tech giants recommend agencies acquire.

The things that government agencies do, such as regulating the economy, promoting national security and protecting the environment, are incredibly complicated. It’s often hard to see their impact right away.

Recognizing this, Congress has designed a complex set of laws to prevent political interference with federal employees, who tend to look at problems long term. For example, as I have found in my work with Paul Verkuil, former chairman of the Administrative Conference of the United States, Congress intentionally writes laws that require certain government positions to be held by experts who can work in their jobs without worrying about politics.

Congress also writes the laws the federal employees administer, oversees federal programs and decides how much money to appropriate to those programs each year.

So by design, anything labeled a “presidential commission on modernizing/fixing/refocusing government” tells only part of the story and sets out an impossible task. The president can’t make it happen alone. Nor can Elon Musk.

Jennifer L. Selin has received funding and/or support for her research on the executive branch from the Administrative Conference of the United States. The views in this piece are those of the author and do not represent the position of the Administrative Conference or the federal government.

– ref. President Trump promises to make government efficient − and he’ll run into the same roadblocks as Presidents Taft, Roosevelt, Roosevelt, Truman, Eisenhower, Carter, Reagan, Clinton and Bush, among others – https://theconversation.com/president-trump-promises-to-make-government-efficient-and-hell-run-into-the-same-roadblocks-as-presidents-taft-roosevelt-roosevelt-truman-eisenhower-carter-reagan-clinton-and-bush-among-others-247957

MIL OSI – Global Reports –

January 25, 2025
MIL-OSI Security: Defense News: NPS’ Latest CubeSat Launch Furthers International Collaboration in Space

Source: United States Navy

At 11:09 a.m. PST, Jan. 14, the National Reconnaissance Office (NRO) – in partnership with NPS and the New Zealand military’s Defence Science & Technology unit (DST) – launched Otter, an NPS CubeSat suite aboard the commercial SpaceX Falcon 9 Transporter 12 rocket from Space Launch Complex-4E Vandenberg Space Force Base in California.

Its mission: to explore new technological developments and experimental concepts to operate in an increasingly complex space environment.

The Otter launch occurs at a time of an upswing in space technology investment, particularly in the commercial sector. As NPS leans in on partnering with commercial entities in all Naval Science and Technology Focus Areas, the Otter spacecraft is a prime example of the benefits to its students from these relationships, noted Dr. Wenschel Lan, interim chair of NPS’ Space Systems Academic Group (SSAG), an interdisciplinary academic association serving as the focal point for space-related research at the university.

“In working with our commercial vendors, we have lessons learned that we continue to share with our students – from acquisitions, to spacecraft integration and testing, and spacecraft operations – that are relevant and representative of both the successes and challenges for the aerospace industry,” she said. “In gaining first-hand knowledge and experience with a space mission life cycle through these types of opportunities at NPS, our students are better prepared to serve as Space professionals in the Navy, throughout the DOD, and beyond.”

Two hours after the rocket’s successful launch and Otter’s separation, Dr. Lan and her team were huddled in NPS’ Space Operations Center (SOC), the university’s heart for interacting with space assets.

As the satellite arced across Canada into the Northern Pacific 515 km above the earth, the team prepared to make first contact.

“We’re tracking!” exclaimed Alex Savattone, SSAG faculty associate for research involved with the daily management of the CubeSat missions, as the satellite’s beacon came into focus.

Word reached the office of then 78th Secretary of the Navy, Carlos Del Toro, himself an ’89 NPS alumnus with a master’s in Space Systems Engineering, who offered his congratulations.

“Well done to the NPS student-faculty team and all the partners involved,” Secretary Del Toro said. “The strength of NPS’ innovative space education program is a force multiplier, impacting critical talent development needs and shaping future technology concepts.”

Several days later, the Otter team tracked down the orbit plane, transmitted several commands, and the data began streaming to the NPS SOC: good status confirmed.

While NPS is known for having the most alumni of any graduate school become astronauts, NPS also has a strong history in developing standardized and modular nanosatellites such as CubeSats, which have many benefits over costly traditional satellites. Beginning with the NPS Petite Amateur Navy Satellite (PANSAT) launched into low Earth orbit (LEO) in 1998 aboard the shuttle Discovery, the NPS program evolved into CubeSat designs and launchers, now commonly used by commercial providers. Made up of 10 cm x 10 cm x 10 cm cubes called units (U), CubeSats are relatively inexpensive to design, develop and deploy payloads into orbit and are ideal for applied education and research.

Otter is a 6U CubeSat built and operated by NPS on behalf of NRO. Its primary payload, Tui, is a DST-built risk reduction platform for space-based maritime domain awareness capabilities. Two secondary payloads built by NPS, an X-band transmitter and an LED on-orbit payload (LOOP), will help develop and evaluate communication technologies and concepts of operations on future CubeSat missions.

“The NRO is always looking for innovative ways to advance our capabilities in space,” said Dr. Aaron Weiner, director of the NRO’s Advanced Systems & Technology Directorate. “This demonstrator, developed in coordination with academia and an international ally, showcases the value in rapidly qualifying low-cost, commercial off-the-shelf hardware.”

Otter is the second collaborative CubeSat mission run together with NRO and DST. The first, named Mola, launched in March 2024 with Tui’s predecessor, Korimako. Two NPS-built payloads are also manifested on Otter – an X-band transmitter and the next iteration of LOOP to continue experimenting with line-of-sight communications by using two banks of LEDs, transmitting in green and near-infrared wavelengths, that are capable of modulating light for basic messaging. More than 20 NPS students will have directly contributed to the Mola and Otter CubeSats as part of their master’s and Ph.D. research.

Both CubeSat missions are directly supported by the NPS maintained and operated Mobile CubeSat Command and Control (MC3) network, a Department of Defense-sponsored effort that began in 2011 at NPS. Since then, SSAG has cultivated partnerships with nine other tracking facilities nationwide, including three other DOD service universities, civilian institutions, industry partners, and governmental agencies. These all work together within a distributed operations network that shares tracking responsibilities via parallel ground stations.

Tui very much fits into this, according to Dr. Lan. The highly collaborative mission will provide space-based maritime awareness as well as serve as a pathfinder for policy development.

“The capability that we’re developing is to add sensors in the space layer to be able to see what’s going on in the water,” she said. “It’s not just a camera, but a lot of different phenomenologies that you can sense from space to then help paint the picture of what’s going on.”

The project also represents a risk reduction effort in the sense that it utilizes low-cost, off-the-shelf current technologies to explore the art of the possible.

“We’re spending a small amount of money to buy down the risks so that when they actually do a full program of record, they’re not going into it blind,” Dr. Lan stated.

The NPS-built payloads, the X-band transmitter and LOOP projects, also employ the latest in rapidly developing commercial technology. The X-band transmitter, operating in the microwave radio region of the electromagnetic spectrum, is ideal for space communications optimized for data-intensive payloads.

The LOOP project utilizes a ground-based optical telescope to observe the LEDs on the CubeSat to evaluate how to track objects in low Earth orbit. Otter is a significant step forward toward the future goal of high-rate optical communications using the MC3 network.

Now that Otter is launched, its operations will be undertaken by NPS faculty and students.

“Our operations have changed since the launch of Mola,” observed Savattone. “During initial commissioning, our team manually ran each pass opportunity to check the satellite’s health and troubleshoot as needed. Currently, operations are predominantly automated. Mola is provided with a schedule for executing specific sequences, such as a telemetry downlink to one of the ground stations. Today’s daily operations primarily involve monitoring the health of the entire system, including ground stations, cloud resources, and satellites.”

Otter also builds on lessons learned from the Mola mission, he said. “One significant lesson learned is the critical importance of having comprehensive knowledge of all subsystems. Since we procured the satellite buses from a commercial vendor instead of constructing the entire satellite ourselves, it took our team some time to understand the complexities of each system. Mola facilitated our learning process regarding the efficient operation of Otter and served as a pathfinder for streamlining our flight operations.”

“The Otter mission was a success not only in its launch, but also in the opportunities it afforded the NPS students who worked on it,” said Dr. Giovanni Minelli, SSAG research associate professor and co-principal investigator for its CubeSat program along with Dr. Lan.

“Most importantly, it serves as a means of providing hands-on experience with the design, test, launch and operation of a real spacecraft to complement the theoretical coursework offered to our students,” he said. “We believe practically applying lessons learned in the classroom helps cement understanding of difficult concepts and better prepares our warrior scholars for leveraging space to advance our military’s priorities after graduation.”

“Furthermore,” Dr. Minelli noted, “the CubeSat program grants students the chance to advance technologies jointly developed by international government research institutions.”

“The students get to be involved in a mission with real stakeholders, requiring the successful operation of the spacecraft, its payloads, and the supporting ground infrastructure to collect and disseminate experimental test results to our strategic partners,” he said. “An ideal training opportunity, this ‘rubber meets the road’ process is also used for the high-value operational missions our students will work on throughout their careers.”

The LOOP project is a prime exemplar of this, with both iterations spanning the Mola and Otter missions.

LOOP was originally developed for Mola by Marine Corps Maj. Dillon Pierce to address a gap in the payload manifest as part of his doctoral research at NPS. Using his education from NPS as a Space Operations Masters student, he quickly designed, built, and tested a flight-ready payload.

The Marine Corps infantry officer is on track to earn his doctorate this June. His work, sponsored by the Marine Corps Warfighting Laboratory, aims to fill critical operational capability and capacity gaps, with significant anticipated impacts on future military operations.

“What I truly fell in love with was the hands-on aspect of the applied research within the SSAG,” Maj. Pierce said. “Coming into the lab and being able to apply theory to real-world capabilities, such as building rockets and CubeSat payloads, is fascinating. It provided me with a deep understanding of the technical concepts learned in the classroom and demonstrated how to apply those concepts to address the operational challenges facing the military today.”

Maj. Pierce is elated to see the LOOP project evolve with its second iteration for the Otter mission, which he passed on to Dr. James Newman, NPS acting provost, SSAG professor and former Space Shuttle astronaut, who was able to upgrade its capabilities to include InfraRed LEDs and higher data rates.

Work on LOOP was also carried out by Navy Lt. Charles “Chuck” Bibbs for his master’s degree in Space Systems Operations. Lt. Bibbs, currently attached to Naval Special Warfare Basic Training Command (NSWBTC), is a SEAL phase officer at Basic Underwater Demolition/SEAL (BUD/S) training in Coronado, California.

Lt. Bibbs was specifically involved with the planning, preparation and execution of environmental testing for LOOP, including thermal vacuum and vibration testing, as well as the integration of the total Otter payload.

“This experience gave me an appreciation for the entire lifecycle of a payload,” he said. “Upon joining the team, I was introduced to the remarkable collaborative effort that brought this particular payload to life, and I gained a clear understanding of where my contributions fit within that timeline. It was fascinating to see how NPS works with other countries and commercial entities to drive innovation for defense purposes!”

Lt. Bibbs also commended the SSAG faculty’s excellent alignment of the department’s research efforts with course objectives. His work on Otter was conducted as course projects for the AE4831 Spacecraft Systems II curriculum in the M.S. Space Systems Operations program.

“This experience was formative because, like the military as a whole, I have a significant interest in space and would like to involve myself in those efforts in the near future,” he continued. “Additionally, by working on this project I better understand the nuances of requirements, procurements, and fielding large-scale projects. This experience provided skills that will assist me in a wide-range of military duties that do not necessarily have to be space-related.”

Maj. Pierce and Lt. Bibbs’ observations cut to the heart of NPS’ mission: to provide defense-focused graduate education, including classified studies and interdisciplinary research, to advance the operational effectiveness, technological leadership and warfighting advantage of the Naval service.

As a naval command with a graduate university mission, NPS uniquely synchronizes mid-career student operational experience and education with applied research and faculty expertise to deliver innovative warfighting solutions and leaders educated to understand and employ them.

MIL Security OSI –

January 25, 2025
MIL-OSI Security: Wisconsin Man Pleads Guilty to ‘Swatting’ Scheme That Took Over Ring Doorbell Cameras to Livestream Police Response

Source: Federal Bureau of Investigation (FBI) State Crime Alerts (b)

LOS ANGELES – A Wisconsin man pleaded guilty today to participating in a one-week nationwide “swatting” spree that gained access to Ring home security door cameras, placed bogus emergency phone calls designed to elicit an armed police response, then livestreamed the events on social media, sometimes while taunting responding police officers in communities such as West Covina and Oxnard.

Kya Christian Nelson, 23, of Racine, Wisconsin, pleaded guilty to one count of conspiracy and two counts of unauthorized access to a protected computer to obtain information.

Nelson, who is doing time in a Kentucky state prison after being convicted in an unrelated case, has been in federal custody since August 2024.

“Swatting puts innocent lives in danger,” said Acting United States Attorney Joseph T. McNally. “Today’s guilty plea demonstrates that individuals who engage in this dangerous conduct will be held accountable through federal prosecutions.”

“The defendant’s malicious actions traumatized his victims and put their lives – and the lives of responding officers – at risk,” said Akil Davis, Assistant Director in Charge of the FBI Los Angeles Field Office. “Swatting hoaxes drain crucial law enforcement resources at the expense of taxpayers and diverts police officers from responding to actual crisis situations. This case is a good reminder for security doorbell users that it’s important to practice strict cyber hygiene by using difficult passwords and by employing two-factor authentication.”

According to his plea agreement, from November 7, 2020, to November 13, 2020, Nelson and co-conspirators gained access to home security door cameras sold by Ring LLC, a Santa Monica-based home security technology company. Nelson acquired without authorization the username and password information for Yahoo! email accounts belonging to victims throughout the United States.

The conspirators then determined whether the owner of each compromised Yahoo! account also had a Ring account using the same email address and password that could control associated internet-connected Ring doorbell camera devices. Using that information, they identified and gathered additional information about their victims.

Then, the conspirators placed false emergency reports or telephone calls to local law enforcement in the areas where the victims lived. These reports or calls were intended to elicit an emergency police response to the victim’s residence. The conspirators then accessed without authorization the victims’ Ring devices and transmitted the audio and video from those devices on social media during the police response. They also taunted responding police officers and victims through the Ring devices during several of the incidents.

For example, on November 8, 2020, Nelson and a co-conspirator accessed without authorization Yahoo! and Ring accounts belonging to a victim in West Covina. A hoax telephone call was placed to the West Covina Police Department purporting to originate from the victim’s residence and posing as a minor child reporting her parents drinking and shooting guns inside the residence. The caller claimed that her parents had multiple firearms and had fired approximately seven gunshots inside the house. Based on this hoax call, West Covina Police Department officers made an emergency response to the house and cleared the residents from the home at gunpoint.

During the police response, Nelson accessed the Ring doorbell camera located at the West Covina residence and used it to verbally threaten and taunt the police officers who responded to the reported incident.

In another incident, on November 11, 2020, Nelson illegally possessed the Yahoo! and Ring login credentials of a victim living in Oxnard. Nelson then used those credentials to access the victim’s Ring account. Nelson or a co-conspirator made a hoax call to the Oxnard Police Department purporting to be coming from inside the victim’s home.

The caller told the police that they were a child whose father was wielding a handgun inside the residence. Nelson made a second hoax call to Oxnard Police to report hearing shots fired at the victim’s residence. Based on these hoax calls, Oxnard Police officers made an emergency response to the house and cleared the residents from the home at gunpoint.

Nelson accessed the Ring doorbell camera located at the Oxnard residence and used it to threaten and taunt the police officers who had responded to the reported incident.

United States District Judge John A. Kronstadt scheduled a May 1 sentencing hearing, at which time Nelson will face a statutory maximum sentence of five years in federal prison for each count.

One of Nelson’s indicted co-conspirators, James Thomas Andrew McCarty, 22, of Kayenta, Arizona, was sentenced in June 2024 to seven years in federal prison both for his role in this case, and on additional charges in the District of Arizona. In connection with the Ring swatting incidents, McCarty pleaded guilty to the same conspiracy as Nelson.

McCarty further admitted to illegally accessing a victim’s Ring camera in Florida and making a call to the North Port Florida Police Department, in which he purported to be the victim’s husband who had just killed her, was holding a hostage, and had rigged explosives at the residence. McCarty then livestreamed the law enforcement response and posted a message on social media taking credit for the swatting incident and stating that he thought it was amusing.

The FBI investigated this matter.

Assistant United States Attorney Khaldoun Shobaki of the Cyber and Intellectual Property Crimes Section is prosecuting this case.

MIL Security OSI –

January 25, 2025
MIL-OSI Security: Four SoCal Residents Found Guilty of Participating in an Armed Robbery and Carjacking at Car Repair Shop in San Bernardino County
Source: Federal Bureau of Investigation (FBI) State Crime Alerts (b)

RIVERSIDE, California – Three San Gabriel Valley residents and one San Bernardino County man have been found guilty by a jury of participating in an armed robbery and carjacking of a car repair business last year in Bloomington in which one victim was pistol-whipped into near unconsciousness, the Justice Department announced today.

At the conclusion of a 13-day trial, a federal jury on late Wednesday returned a guilty verdict on all counts against the following defendants:
- Marcos Guerrero, 49, of Glendora;
- Elijah Gafare, 35, of West Covina;
- Cinthia Leal, 39, of Glendora; and
- Vincent Solarez, 58, of Upland.
All four defendants were found guilty of one count of conspiracy to interfere with commerce by robbery (Hobbs Act), one count of Hobbs Act robbery, and one count of carjacking.

Guerrero, Gafare, and Leal also were found guilty of witness tampering and using, carrying, and brandishing a firearm in furtherance of and in relation to a crime of violence. Guerrero further was found guilty of being a felon in possession of a firearm and ammunition.

“Violent crime tears at the fabric of our communities,” said Acting United States Attorney Joseph T. McNally. “The verdict reached in this case highlights our office’s ongoing efforts to root out and punish criminals who use guns to harm innocent people.”

According to evidence presented at trial, Guerrero, Gafare, Leal, and Solarez participated in an armed robbery of a car repair shop in Bloomington in the early morning hours of March 12, 2024. During the robbery, two of the defendants brandished firearms and one of the defendants pistol-whipped one of the victims into near unconsciousness.

The defendants kept the victims hostage and threatened to kill them if the victims did not hand over cash, their car, and if they ever called law enforcement. In total, defendants stole several thousand dollars in cash and the business surveillance system, in addition to the victim’s car and other property.

Law enforcement tracked the defendants down and arrested them in May and June of 2024.

On May 30, 2024, Guerrero illegally possessed a .45-caliber firearm and dozens of rounds of ammunition. He is not permitted to possess firearms and ammunition because his criminal history includes convictions in San Bernardino County Superior Court for home invasion robbery, first-degree residential burglary, false imprisonment by violence, possession of a firearm by a felon, and evading a police officer.

United States District Judge Jesus G. Bernal scheduled an April 21 sentencing hearing, at which Guerrero, Gafare, and Leal will face a mandatory minimum sentence of seven years in federal prison and a statutory maximum sentence of life imprisonment.

Solarez will face a statutory maximum sentence of 65 years in federal prison.

The FBI Inland Violent Crimes Suppression Task Force and the San Bernardino County Sheriff’s Department investigated this matter.

Assistant United States Attorneys Joshua J. Lee and Neil P. Thakor of the General Crimes Section, and Tritia L. Yuen of the Riverside Branch Office, are prosecuting this case.

MIL Security OSI –
January 25, 2025
MIL-OSI Security: Bartlesville Man Sentenced to 35 Years for Killing Dewey Couple

Source: Office of United States Attorneys

TULSA, Okla. – U.S. District Judge John D. Russell sentenced Lucas Anthony Walker, 22, for two counts of Second Degree Murder in Indian County. Judge Russell ordered Walked to serve 420 months for each count, followed by five years of supervised release.

In January 2023, Washington County Sheriff’s deputies began investigating the disappearance of Deborah and Larry Dutton. After searching the Dutton’s home, deputies found Deborah and Larry deceased in a shallow grave in the backyard. Walker confessed to shooting and stabbing Deborah and stabbing Larry to death.

Walker is a citizen of the Cherokee Nation and will remain in custody pending transfer to the U.S. Bureau of Prisons.

The FBI, Washington County Sheriff’s Office, the Oklahoma State Bureau of Investigation, and the Oklahoma Highway Patrol investigated the case. Assistant U.S. Attorney Eric O. Johnston prosecuted the case.

MIL Security OSI –

January 25, 2025
MIL-OSI Global: Donald Trump is firing out presidential pardons and warnings of retribution. What happens next?

Source: The Conversation – UK – By Adam Quinn, Associate Professor in American and International Politics, University of Birmingham

Donald Trump has now pardoned or commuted the sentences of around 1,500 January 6 protesters, including those who were convicted of crimes against police officers relating to the riot at the US Capitol.

But use of the presidential pardon in the last few days was not restricted to the incoming president. On his last day in office, outgoing president Joe Biden signed a number of pre-emptive pardons in an effort, he suggested, to shield people from possible “retribution” at Trump’s hands.

This included not just members of the House committee that investigated the Capitol riot, but also Anthony Fauci, former chief medical advisor to the president during the COVID pandemic, and Gen. Mark Milley, who retired in 2023 after four years as the nation’s most senior military officer, and whom Trump has previously suggested would have been executed for treason in a previous era.

In December, Biden granted his son Hunter a sweeping pardon, and he extended the same to several other relatives in the final minutes of his presidency. In an accompanying statement he said: “Even when individuals have done nothing wrong — and in fact have done the right thing — and will ultimately be exonerated, the mere fact of being investigated or prosecuted can irreparably damage reputations and finances.”

Such pardons may be greeted with ambivalence by some recipients. One person who received a pardon was Adam Schiff, now a US Senator and previously a House member who both served on the Jan 6 committee and was lead prosecutor in Trump’s first impeachment. He had previously declared he did not want such a pardon because, first, it was unnecessary since he had done nothing wrong, and, second, it set a bad precedent. We may find out in the months and years ahead whether he was right on either count.

So how did we get here?

A year ago, Trump faced a daunting obstacle course of criminal cases. Among them, he faced trial in New York for falsifying business records. Federal prosecutors had indicted him for trying to steal the 2020 election, and for illegally holding onto classified documents after his presidency ended. He also faced state-level election subversion charges in Georgia.

By the time of his inauguration, however, his legal problems had been almost entirely resolved. He was convicted on the New York charges, but his punishment, an unconditional discharge, is a slap on the wrist. The greatest symbol of Trump’s victory over legal threats, however, is the shelving of the two federal cases against him. Both cases have now been dismissed at the request of the Justice Department because its policy prevents a criminal case against a sitting president. Even if this were not the case, as head of the executive branch Trump would have authority to order them dropped.

Read more:
Nixon’s official acts against his enemies list led to a bipartisan impeachment effort

Trump enters a second term freer of personal legal jeopardy than he has been in years. He is convinced that the cases against him represented a weaponisation of the criminal justice system by his political opponents. Now restored to the highest office, there are widespread fears that he may wield federal power to retaliate against those he believes have wronged him.

In the run-up to the election he spoke often about “retribution” against “the enemy within”. An NPR investigation of Trump’s rallies and social media posts since 2022 found more than 100 instances of his explicitly or implicitly threatening to “investigate, prosecute, jail or otherwise punish his perceived opponents”.

He has repeated that he “would have every right” to go after those he believes have waged “lawfare” against him over the last several years.

If he does decide to try, it is less likely than during his first term that top officials will block or dissuade him. Trump’s current nominee for attorney general, former Florida attorney general Pam Bondi, was part of his defence team during his 2020 impeachment, then an active supporter of his campaign to overturn the 2020 election. During her Senate confirmation hearing she refused to say that she would defy pressure from Trump, but she did say that “politics will not play a part” in deciding who to investigate. Few will have felt completely reassured.

Even more concerningly, Christopher Wray, director of the FBI, the leading national criminal investigative agency, has resigned before the usual duration of his tenure, after Trump declared he intended to replace him with Kash Patel. Patel, more than any other senior Trump nominee, has spent his career at the heart of the post-2016 Maga movement. He held junior roles late in the first Trump administration, but in the years since he has advocated using criminal and civil prosecution to root out “conspirators” among journalists and government officials.

Patel even published a book containing a list of “Members of the Executive Branch Deep State” (including both Democrats and Republican appointees), seen by some as an “enemies list”. This is an appointment that some believe suggests restraint is unlikely.

Read more:
Trump’s election interference case may be closed, but it still matters for America’s future

The January 6 rioters and plotters were among the first beneficiaries of the transfer of power. While campaigning Trump had portrayed them as martyrs to his cause and pledged pardons. He made good on that promise on day one by pardoning or commuting sentences. He also ordered the Justice Department to dismiss all pending indictments.

It remains to be seen what approach the new president will take toward those who have worked prominently against him. He had previously said that some who served on the Congressional committee investigating the attack on the Capitol ““should go to jail”, often singling out former Republican Congresswoman Liz Cheney, who also received a pre-emptive pardon from Biden. Trump has also suggested that Biden should have issued a pardon for himself.

It is doubtful that targeted investigations could ultimately produce criminal convictions without some plausible case. For the time being at least, US courts and the jury system retain sufficient independence that blatantly groundless and malicious prosecutions would struggle to get that far against targets with the resources to defend themselves.

But as previous federal probes have illustrated – such as those into the Clintons – even an investigation that ultimately stops short of bringing charges against its top targets can last years, impose significant legal expenses on those embroiled in it, and inflict stress and distraction.

The aim of this kind of action may be to instil a climate of anticipatory fear in which outspoken criticism in the future seems, to most, more trouble than it is worth. The US is not there yet. But it is closer to such a state than it has been in any of our lifetimes.

Adam Quinn has previously received research funding from the Economic and Social Research Council (ESRC) and the Charles Koch Foundation (CKF)

– ref. Donald Trump is firing out presidential pardons and warnings of retribution. What happens next? – https://theconversation.com/donald-trump-is-firing-out-presidential-pardons-and-warnings-of-retribution-what-happens-next-247646

MIL OSI – Global Reports –

January 25, 2025
MIL-OSI Security: Plymouth Man Agrees to Plead Guilty to a Decade Long Cyberstalking Campaign Against Multiple Victims and Possession of Child Pornography

Source: Federal Bureau of Investigation (FBI) State Crime News

Defendant allegedly posted digitally altered images of victim to social media accounts and programmed artificial intelligence-driven chatbots to mimic human conversation with other unknown users of social media platforms

BOSTON – A Plymouth, Mass. man has agreed to plead guilty to charges relating to cyberstalking numerous Massachusetts victims through social media, email and various online platforms. The defendant allegedly programmed multiple artificial intelligence-driven chatbots to mimic human conversation through text or voice interactions with unknown users of social media platforms and used generative artificial-intelligence tools to create pornographic images of the victims in order to post them online to websites that focus on shaming and degrading women.

James Florence Jr., 36, has agreed to plead guilty to seven counts of cyberstalking and one count of possession of child pornography. Florence was arrested and charged by criminal complaint in September 2024. According to the charging documents, on or about January of 2014 through September of 2024, Florence engaged in an extensive cyberstalking campaign targeting victims and those associated with them. Florence used a variety of techniques and methods to allegedly harass and intimidate his victims and others in the community, including making fake nude images of the victims, doxing or exposing victims’ personal information, creating vulgar fake accounts in the victims’ names and accessing online accounts without authorization (i.e. “hacking”) the victims’ accounts.

Florence’s cyberstalking campaigns allegedly included obtaining, -and then widely distributing, private information about the victims, such as private photographs or photographs shared amongst friends on social media. These photographs were frequently doctored to appear sexual or pornographic in nature. According to court documents Florence also allegedly accessed online accounts without authorization; created accounts in the name of his victims; and solicitated fantasy sexual encounters on their behalf. In the case of one victim, those fabricated sexual encounters allegedly included building a profile of the victim on an interactive platform with information about the victim’s apparent underwear preference, information that the victim was sexually adventurous, used sex toys and had a sex swing in her home. Florence allegedly listed the victims home address; posed as his victims by creating impersonation accounts in their names and then posted or sent various harmful content from those accounts; encouraged others to extort, shame, defame and intimidate victims for pornographic material; and stole victims’ underwear and used photos of the underwear to both harass those victims or engage with others on the internet to further mutual sexual fantasies.

In addition to having received threatening messages from social media and email accounts believed to be controlled by Florence, the victims also allegedly received harassing and extorting communications that are believed to be from users who messaged the victims as a result of Florence’s posts encouraging them to do so. Florence allegedly created and posted photo collages of one of the victims to a website, including images edited to make her appear nude or semi-nude along with all her personal identifying information and captions that encouraged viewers to “Post & Share Her Everywhere. Make The Whore Famous.”

The charge of stalking by electronic means provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charge of possession of child pornography provides for a sentence of 20 years in prison, a mandatory minimum of five years and up to life of supervised release and a $250,000 fine. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Leah B. Foley and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. The Plymouth Police Department and Plymouth Fire Department provided valuable assistance in the investigation. Assistant U.S. Attorney Luke A. Goldworm of the Major Crimes Unit is prosecuting the case.

MIL Security OSI –

January 25, 2025
MIL-OSI Security: Anderson Felon Sentenced to Five Years in Federal Prison for Illegally Possessing a Firearm Following Drunk Driving Crash

Source: Office of United States Attorneys

INDIANAPOLIS— Jonathon Jerald Ashley Jr., 30, of Anderson, Indiana, has been sentenced to five years in federal prison, followed by three years of supervised release after pleading guilty to possession of a firearm by a convicted felon.

According to court documents, on October 22, 2023, an Anderson Police Department officer was called to a vehicle crash in the vicinity of 20th and Noble Streets. The officer arrived to find a heavily intoxicated Jonathon Ashley walking away from the accident.

During a search of Ashley’s person, officers located a loaded Glock handgun in his front right pocket. At the time of arrest, Ashley had been previously convicted of domestic battery, resisting law enforcement, invasion of privacy, dealing in a narcotic drug, and pointing a firearm. His felony convictions prohibit him from ever legally possessing a firearm again.

“This defendant has repeatedly demonstrated his utter disregard for the law or the safety of others, including those closest to him,” said John E. Childress, Acting United States Attorney for the Southern District of Indiana. “Many illegally armed perpetrators of gun violence in the home and in the community have a prior history of domestic violence. That’s why our office is working together with the FBI, through the LEATH initiative, to protect the public from these offenders and save lives.”

“This dangerous combination of impaired driving and illegal possession of a firearm had the potential to lead to devastating consequences and this sentence underscores the seriousness of the defendant’s actions,” said FBI Indianapolis Special Agent in Charge Herbert J. Stapleton. “The FBI remains committed to working with our law enforcement partners to ensure those who show such reckless disregard for the law and the safety of others will be held accountable.”

The Federal Bureau of Investigation and Anderson Police Department and investigated this case. The sentence was imposed by U.S. District Judge James P. Hanlon.

Acting U.S. Attorney Childress thanked Assistant U.S. Attorney Jayson W. McGrath, who prosecuted this case.

This case was brought as part of the LEATH Initiative (Law Enforcement Action to Halt Domestic Violence), named in honor of Indianapolis Metropolitan Police Department (IMPD) Officer Breann Leath, who was killed in the line of duty while responding to a domestic disturbance call. A partnership among the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the IMPD, and the U.S. Attorney’s Office for the Southern District of Indiana, the LEATH Initiative focuses federal, state, and local law enforcement resources on domestic violence offenders who illegally possess firearms.

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MIL Security OSI –

January 25, 2025
MIL-OSI Security: Hudson County Man Charged With Defrauding Elderly Victim Out Of More Than $880,000

Source: Office of United States Attorneys

NEWARK, NJ. – A New Jersey man was arrested today and charged with engaging in a scheme to defraud an elderly victim investor out of out of more than $880,000, after entrusting him to invest her money on her behalf, Acting U.S. Attorney Vikas Khanna announced today.

Antonio Petrosino, a/k/a Anthony Petrosino, 59, of Union City, New Jersey, is charged by complaint with one count of wire fraud and one count of money laundering. He is scheduled to have his initial appearance this afternoon before U.S. Magistrate Judge Michael A. Hammer in Newark federal court.

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

Between March 2018 and March 2024, Petrosino fraudulently induced the victim investor to transfer approximately $916,000 to Petrosino based on his misrepresentations that he would invest those funds in brokerage accounts and other investment products for the benefit of the victim investor. To perpetuate his fraud, Petrosino provided the victim investor with falsified investment statements that purported to show that she had hundreds of thousands of dollars deposited in various investment accounts in her name. Petrosino also provided the victim investor with payments in the approximate range of $4000-$8000 that he claimed was the interest that the victim investor had earned on her investments.

In reality, Petrosino failed to invest the victim investor’s funds for her benefit as promised. Instead, he misappropriated the money to pay for his personal expenses, including gambling, credit card payments, and rent on his luxury apartment unit. Petrosino also caused the transfer of the victim investor’s funds without her knowledge or consent, including transfers directly from the victim investor’s bank account to Petrosino’s landlord. Additionally, Petrosino told the victim investor he would assist her with preparing her tax returns and told her to send him approximately $40,000 that he claimed she owed in taxes, which he misappropriated for his personal benefit. In total, Petrosino stole more than approximately $888,000 from the victim investor.

The wire fraud charge carries a maximum penalty of 20 years in prison. The money laundering charge carries a maximum penalty of 10 years in prison. Both counts carry a $250,000 fine, or twice the gross amount of gain or loss from the offense, whichever is greatest.

Acting U.S. Attorney Vikas Khanna credited special agents of the FBI, under the direction of Acting Special Agent in Charge Terence G. Reilly in Newark, with the investigation leading to today’s arrest.

The government is represented by Assistant U.S. Attorney Jennifer Kozar of the U.S. Attorney’s Office Economic Crimes Unit in Newark.

The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

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MIL Security OSI –

January 25, 2025
MIL-OSI Security: Corporation and Former Chief Executive Officer Plead Guilty to Health Care Fraud and Tax Conspiracy

Source: United States Attorneys General 9

The Justice Department announced today that KBWB Operations LLC, which did business as Atrium Health and Senior Living (KBWB-Atrium), and former Chief Executive Officer and Managing Member Kevin Breslin of KBWB-Atrium, both pleaded guilty to one count of health care fraud and one count of tax conspiracy related to the operation of numerous skilled nursing facilities.

“Americans rely on skilled nursing facilities to care for themselves, family members and other loved ones, and the operators of these institutions must live up to their obligations and the law,” said Acting Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “The Department of Justice will continue to work closely with its law enforcement partners to help ensure the safety and dignity of our must vulnerable citizens.”

Breslin, 58, of Hoboken, New Jersey, pleaded guilty in the U.S. District Court for the Western District of Wisconsin on Dec. 17, 2024. KBWB-Atrium pleaded guilty in the same court on Jan. 21. Breslin is one of six owners of KBWB-Atrium. KBWB-Atrium’s corporate headquarters was located in Little Falls, New Jersey, and its Midwest corporate office was located in Appleton, Wisconsin. KBWB-Atrium operated and owned nursing facilities in New Jersey, Wisconsin, and Michigan.

On Feb. 1, 2023, a Wisconsin grand jury returned a 12-count indictment against defendants Breslin and KBWB-Atrium (collectively the defendants) charging health care fraud and tax conspiracy, among other charges. According to court documents, from approximately Jan. 1, 2015, to in or about September 2018, KBWB-Atrium operated and owned 23 skilled nursing facilities in Wisconsin, and Breslin was responsible for overseeing all of KBWB-Atrium’s operations. The primary source of income for the KBWB-Atrium Wisconsin skilled nursing facilities was federal Medicare and Medicaid funds from the Centers for Medicare and Medicaid Services (CMS).

According to court documents, the defendants’ alleged health care fraud scheme involved unlawfully diverting CMS funds intended for the operation, management, maintenance, and care of the residents of the KBWB-Atrium Wisconsin skilled nursing facilities for other purposes and personal expenses. The defendants allegedly prioritized distributions and guaranteed payments to KBWB-Atrium’s owners regardless of KBWB-Atrium’s financial situation. The defendants’ alleged actions resulted in failing to meet the required federal regulations governing skilled nursing facilities, including not operating the KBWB-Atrium Wisconsin skilled nursing facilities in a manner that would enhance residents’ quality of life. According to court documents, the defendants also knew that vendors were not being paid for extended periods of time or some were not paid at all for their services. Additionally, defendants allegedly failed to pay third-party administrators monies deducted from KBWB-Atrium employees’ paychecks for insurance premiums and 401(k) plan contributions.

As a part of the tax conspiracy alleged in court documents, Breslin, acting on behalf of KBWB-Atrium, directed that income taxes and employment taxes withheld from KBWB-Atrium Wisconsin employees’ paychecks not be paid over to the IRS. This caused employees to prepare tax returns listing those withholdings as having been paid to the IRS, which was false.

The defendants are scheduled to be sentenced on May 7 before U.S. District Judge William M. Conleyfor the Western District of Wisconsin. Breslin faces a maximum penalty of up to 10 years in prison for the health care fraud count and five years in prison for the conspiracy to commit an offense against the United States count, along with a period of supervised release. Both defendants face restitution and other monetary penalties. A federal district court judge will determine the sentence of each defendant after considering the U.S. Sentencing Guidelines and other statutory factors.

“Healthcare fraud affects every American,” said U.S. Attorney Timothy M. O’Shea for the Western District of Wisconsin. “My office was proud to partner with the Justice Department’s Civil Division to help prosecute these individuals who harmed seniors and exploited our health care benefits programs for personal gain.”

“This guilty plea demonstrates our unwavering commitment to holding individuals accountable who exploit vulnerable populations and defraud the healthcare system for personal gain,” said Assistant Director Chad Yarbrough of the FBI Criminal Investigative Division. “Breslin’s actions not only eroded public trust but endangered the well-being of patients who rely on our health care system. The FBI will continue to work tirelessly with our partners to investigate and bring to justice those who abuse positions of trust.”

“The guilty pleas of Kevin Breslin and KBWB Operations LLC serve as a reminder that healthcare fraud is not only a direct violation of patient care, but also an attack on the financial systems that underpin public and private trust,” said Acting Special Agent in Charge Ramsey E. Covington of the IRS Criminal Investigation (IRS-CI) Chicago Field Office. “IRS-CI and its law enforcement partners remain dedicated to investigating and prosecuting individuals and businesses who seek to exploit public and private institutions for personal gain.”

“HHS-OIG is dedicated to protecting Medicare and Medicaid funds and ensuring that health care providers uphold their responsibility to serve vulnerable populations with integrity,” said Special Agent in Charge Mario M. Pinto of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “The actions of those involved in this scheme erode the trust placed in our nation’s health care system, and we will continue working with our law enforcement partners to hold accountable those who misuse public funds for personal gain.”

“Employers placing profit over upholding their legal fiduciary responsibilities when managing health benefit plans will not be tolerated,” said Regional Director Ruben R. Chapa of the Employee Benefits Security Administration in Chicago. “The Employee Benefits Security Administration remains committed to ensuring that those who knowingly break the law are held fully accountable.”

The IRS-CI Chicago Field Office; HHS-OIG – Office of Investigations, Milwaukee Field Office; U.S. Department of Labor, Employee Benefits Security Administration, New York and Chicago Regional Offices; FBI Milwaukee Field Office; and the State of Wisconsin Department of Justice, Division of Criminal Investigation, Medicaid Fraud Control and Elder Abuse Unit investigated the case.

Trial Attorneys with the Civil Division’s Consumer Protection Branch are prosecuting the case with assistance from the U.S. Attorney’s Office for the Western District of Wisconsin.

Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Western District of Wisconsin, visit its website at http://www.justice.gov/usao-wdwi.

MIL Security OSI –

January 25, 2025
MIL-OSI USA: Corporation and Former Chief Executive Officer Plead Guilty to Health Care Fraud and Tax Conspiracy

Source: US State of California

The Justice Department announced today that KBWB Operations LLC, which did business as Atrium Health and Senior Living (KBWB-Atrium), and former Chief Executive Officer and Managing Member Kevin Breslin of KBWB-Atrium, both pleaded guilty to one count of health care fraud and one count of tax conspiracy related to the operation of numerous skilled nursing facilities.

“Americans rely on skilled nursing facilities to care for themselves, family members and other loved ones, and the operators of these institutions must live up to their obligations and the law,” said Acting Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “The Department of Justice will continue to work closely with its law enforcement partners to help ensure the safety and dignity of our must vulnerable citizens.”

Breslin, 58, of Hoboken, New Jersey, pleaded guilty in the U.S. District Court for the Western District of Wisconsin on Dec. 17, 2024. KBWB-Atrium pleaded guilty in the same court on Jan. 21. Breslin is one of six owners of KBWB-Atrium. KBWB-Atrium’s corporate headquarters was located in Little Falls, New Jersey, and its Midwest corporate office was located in Appleton, Wisconsin. KBWB-Atrium operated and owned nursing facilities in New Jersey, Wisconsin, and Michigan.

On Feb. 1, 2023, a Wisconsin grand jury returned a 12-count indictment against defendants Breslin and KBWB-Atrium (collectively the defendants) charging health care fraud and tax conspiracy, among other charges. According to court documents, from approximately Jan. 1, 2015, to in or about September 2018, KBWB-Atrium operated and owned 23 skilled nursing facilities in Wisconsin, and Breslin was responsible for overseeing all of KBWB-Atrium’s operations. The primary source of income for the KBWB-Atrium Wisconsin skilled nursing facilities was federal Medicare and Medicaid funds from the Centers for Medicare and Medicaid Services (CMS).

According to court documents, the defendants’ alleged health care fraud scheme involved unlawfully diverting CMS funds intended for the operation, management, maintenance, and care of the residents of the KBWB-Atrium Wisconsin skilled nursing facilities for other purposes and personal expenses. The defendants allegedly prioritized distributions and guaranteed payments to KBWB-Atrium’s owners regardless of KBWB-Atrium’s financial situation. The defendants’ alleged actions resulted in failing to meet the required federal regulations governing skilled nursing facilities, including not operating the KBWB-Atrium Wisconsin skilled nursing facilities in a manner that would enhance residents’ quality of life. According to court documents, the defendants also knew that vendors were not being paid for extended periods of time or some were not paid at all for their services. Additionally, defendants allegedly failed to pay third-party administrators monies deducted from KBWB-Atrium employees’ paychecks for insurance premiums and 401(k) plan contributions.

As a part of the tax conspiracy alleged in court documents, Breslin, acting on behalf of KBWB-Atrium, directed that income taxes and employment taxes withheld from KBWB-Atrium Wisconsin employees’ paychecks not be paid over to the IRS. This caused employees to prepare tax returns listing those withholdings as having been paid to the IRS, which was false.

The defendants are scheduled to be sentenced on May 7 before U.S. District Judge William M. Conleyfor the Western District of Wisconsin. Breslin faces a maximum penalty of up to 10 years in prison for the health care fraud count and five years in prison for the conspiracy to commit an offense against the United States count, along with a period of supervised release. Both defendants face restitution and other monetary penalties. A federal district court judge will determine the sentence of each defendant after considering the U.S. Sentencing Guidelines and other statutory factors.

“Healthcare fraud affects every American,” said U.S. Attorney Timothy M. O’Shea for the Western District of Wisconsin. “My office was proud to partner with the Justice Department’s Civil Division to help prosecute these individuals who harmed seniors and exploited our health care benefits programs for personal gain.”

“This guilty plea demonstrates our unwavering commitment to holding individuals accountable who exploit vulnerable populations and defraud the healthcare system for personal gain,” said Assistant Director Chad Yarbrough of the FBI Criminal Investigative Division. “Breslin’s actions not only eroded public trust but endangered the well-being of patients who rely on our health care system. The FBI will continue to work tirelessly with our partners to investigate and bring to justice those who abuse positions of trust.”

“The guilty pleas of Kevin Breslin and KBWB Operations LLC serve as a reminder that healthcare fraud is not only a direct violation of patient care, but also an attack on the financial systems that underpin public and private trust,” said Acting Special Agent in Charge Ramsey E. Covington of the IRS Criminal Investigation (IRS-CI) Chicago Field Office. “IRS-CI and its law enforcement partners remain dedicated to investigating and prosecuting individuals and businesses who seek to exploit public and private institutions for personal gain.”

“HHS-OIG is dedicated to protecting Medicare and Medicaid funds and ensuring that health care providers uphold their responsibility to serve vulnerable populations with integrity,” said Special Agent in Charge Mario M. Pinto of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “The actions of those involved in this scheme erode the trust placed in our nation’s health care system, and we will continue working with our law enforcement partners to hold accountable those who misuse public funds for personal gain.”

“Employers placing profit over upholding their legal fiduciary responsibilities when managing health benefit plans will not be tolerated,” said Regional Director Ruben R. Chapa of the Employee Benefits Security Administration in Chicago. “The Employee Benefits Security Administration remains committed to ensuring that those who knowingly break the law are held fully accountable.”

The IRS-CI Chicago Field Office; HHS-OIG – Office of Investigations, Milwaukee Field Office; U.S. Department of Labor, Employee Benefits Security Administration, New York and Chicago Regional Offices; FBI Milwaukee Field Office; and the State of Wisconsin Department of Justice, Division of Criminal Investigation, Medicaid Fraud Control and Elder Abuse Unit investigated the case.

Trial Attorneys with the Civil Division’s Consumer Protection Branch are prosecuting the case with assistance from the U.S. Attorney’s Office for the Western District of Wisconsin.

Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Western District of Wisconsin, visit its website at www.justice.gov/usao-wdwi.

MIL OSI USA News –

January 25, 2025
MIL-OSI Security: U.S. Attorney’s Office Secures Guilty Pleas from Two Zuni Men in Armed Assault Case

Source: Office of United States Attorneys

ALBUQUERQUE – Two men from Zuni, New Mexico, pleaded guilty to assault with a dangerous weapon after admitting to committing an armed assault involving four victims.

According to court documents, on April 8, 2023, Kamron Kallestewa, 24, and Kaden Panteah, 20, both enrolled members of the Pueblo of Zuni, armed themselves with pistols and went to a residence within the exterior boundaries of the Zuni Pueblo, where they assaulted four individuals.

There, Kallestewa struck John Doe 1 in the face and head with a pistol, causing bruising, and then pointed the weapon at John Doe 2, placing the muzzle on the back of his head. He further escalated the violence by pointing the pistol at Jane Doe 1’s head and striking Jane Doe 2 in the face, resulting in a cut under her eye.

Panteah participated in the assault by putting the muzzle of his pistol to the back of John Doe 2’s head. Additionally, Panteah discharged a weapon in the direction of all four victims with the intent to cause bodily harm.

Kallestewa and Panteah will remain in custody pending sentencing, which has not yet been scheduled. At sentencing, they each face up to 10 years in prison. Upon their release from prison, Kallestewa and Panteah will be subject to three years of supervised release.

U.S. Attorney Alexander M.M. Uballez and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, made the announcement today.

The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Zuni Police Department. Assistant United States Attorneys Mia Ulibarri-Rubin and Jesse Pecoraro are prosecuting the case.

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MIL Security OSI –

January 25, 2025
MIL-OSI Global: Trump inherits the Guantánamo prison, complete with 4 ‘forever prisoners’

Source: The Conversation – USA – By Lisa Hajjar, Professor of Sociology, University of California, Santa Barbara

A control tower overlooks the Camp VI detention facility, at Guantánamo Bay Naval Base, Cuba. AP Photo/Alex Brandon

President Joe Biden’s record of handling the U.S. military prison at Guantánamo Bay, Cuba, is decidedly mixed. He succeeded in reducing the detainee population he inherited by more than half, but he compounded problems in the military commissions that the Bush administration had invented in the wake of the 9/11 attacks to try people captured in the “war on terror.” Now all the problems at Guantánamo are again President Donald Trump’s.

When Biden took office in 2021, there were 40 prisoners. Today there are 15, the lowest number since the first 20 Muslim men and boys captured in Afghanistan were airlifted to the base on Jan. 11, 2002.

Biden left Trump four people the U.S. will not release but also cannot put on trial – the so-called “forever prisoners.” He also left intact the troubled military commissions system, with three pending criminal cases against a total of six detainees.

In December 2021, former chief military defense attorney Brig. Gen. John Baker testified before the Senate Judiciary Committee: “It is too late in the process for the current military commissions to do justice for anyone. The best that can be hoped for at this point … is to bring this sordid chapter of American history to an end.” Baker made clear that the only viable option is to resolve the cases with plea bargains for the defendants.

Marine Brig. Gen. John Baker tells U.S. senators that there is no opportunity for justice to be done at Guantánamo.

A chance to make progress

There are three cases that have not yet gone to trial – the 9/11 case with four defendants facing charges for their connections with the attacks, the USS Cole bombing in October 2000 with one defendant and the Bali bombing in October 2002 with one defendant.

The 9/11 and USS Cole cases have been stuck in the pretrial phase since Biden was Barack Obama’s vice president. In the summer of 2024, a breakthrough in the 9/11 case appeared imminent: Prosecutors and defense lawyers for three of the four defendants reportedly reached plea-bargain agreements. Khalid Sheikh Mohammad – the alleged “mastermind” of the attacks – Walid bin Attash and Mustafa Hawsawi agreed to plead guilty and accept life sentences in exchange for the government taking the death penalty off the table. There was no deal for the fourth 9/11 defendant, Ammar al-Baluchi.

The deals were approved on July 31 by the top military officer overseeing the Guantánamo commissions, retired Brig. Gen. Susan Escallier. But two days later, Biden’s defense secretary, Lloyd Austin, stepped into the process and overrode Escallier – whom he had appointed. Austin announced that the plea deals were revoked.

The judge, Air Force Col. Matthew McCall, decided to schedule plea hearings for early January. But after some legal back-and-forth that forced a stay, he had to cancel them. Biden left the case against three 9/11 defendants in limbo.

The basement of this government building in Bucharest, Romania, held a secret CIA prison, one of many across the world.
AP Photo

Witness to the transition

In mid-January 2025, I made my sixteenth reporting trip to Guantánamo. I came for closing arguments on a motion in the 9/11 case that seeks to suppress statements that Ammar al-Baluchi made to the FBI in January 2007. That was four months after he and 13 others were transferred to Guantánamo from CIA black sites where they were held for years. The litigation to suppress those statements started in 2019.

In Chapter 10 of my book, “The War in Court: Inside the Long Fight against Torture,” I detail how the litigation on this suppression motion made public previously unknown details and under-acknowledged horrors of the CIA’s rendition, detention and interrogation program.

These closing arguments were the culmination of six years of litigation on the key question in the 9/11 case: Does torture matter in the pursuit of justice in the military commissions?

A drawing by Guantánamo detainee Abu Zubaydah depicts a person being waterboarded.
Copyright Abu Zubaydah 2019. Licensed by Professor Mark Denbeaux, Seton Hall Law School

Can Guantánamo be closed?

Of the 780 people ever detained at Guantánamo, 540 were released during the presidency of George W. Bush, who established the detention facility. Obama, who signed an executive order on his second day in office pledging to close Guantánamo within a year, released 200.

In his first term, Trump pledged to keep the facility open. The only man to leave Guantánamo during Trump’s first term was Ahmed al-Darbi, who was repatriated to Saudi Arabia in 2018 to serve out the remainder of his sentence from a 2014 plea bargain agreement.

When Biden took office, he said that he supported shutting down the military prison at Guantánamo. In the early years of his presidency, there was a slow stream of transfers, mostly people who had been cleared for release long ago and were freed.

In Biden’s last months, the pace of transfers quickened. In December 2024, a Kenyan detainee, two Malaysian members of al-Qaida who had pled guilty the previous January, and a Tunisian man who had been in Guantánamo since the day the facility was opened were all repatriated to their countries of origin and freed. In January 2024, 11 Yemenis were transported from the prison to Oman to be resettled.

15 men left behind

The Biden administration had also planned to repatriate a severely disabled Iraqi detainee, Abd al-Hadi al-Iraqi, to serve out his plea-bargained sentence in a Baghdad prison. But a federal judge blocked that transfer, ruling that al-Iraqi would not get necessary medical treatment in Iraq and might be subject to abuse there.

Al-Iraqi is one of the 15 that Biden left behind. Three of them – a Libyan, a Somali and a stateless Rohingya – have long been cleared for release. Their continuing detention without charges highlights a key element of the Guantánamo problem: No one can be released unless the U.S. government finds another country willing to accept them.

One of the remaining detainees, Ali Bahlul, is serving a life sentence for conspiracy to commit war crimes. Six others, including the four 9/11 defendants, are awaiting their trials.

There are also four detainees whom the government refuses to transfer but cannot put on trial for lack of evidence.

The U.S. goverment says it cannot release Abu Zubaydah from Guantánamo because he would disclose classified interrogation techniques critics have labeled torture.
U.S. Central Command via AP

These so-called “forever prisoners” include Abu Zubaydah, a Saudi-born man of Palestinian descent who was taken into CIA custody in 2002 and was used as the guinea pig for the CIA torture program. The government long ago conceded that Abu Zubaydah was not a top leader of al-Qaida – in fact he was not even a member. But he will not be released because he knows how he was treated by the CIA, and that treatment remains highly classified.

The newest forever prisoner is one of the original 9/11 defendants, Ramzi bin al-Shibh; in September 2023, he was declared mentally incompetent to stand trial. Now he is uncharged, unreleased and untreated for his psychological maladies that were caused by the torture he endured in CIA black sites.

The ‘War on Terror’ is not over

When Biden pulled U.S. troops out of Afghanistan in August 2021, he claimed to have ended America’s longest war – and repeated this claim in a January 2025 speech. But the Guantánamo prison remains open, and as long as it is, the “war on terror,” which first put U.S. troops in Afghanistan in 2001, is not over.

How Trump will deal with Guantánamo is an open question. If he focuses on the death penalty, he will press ahead with military commission trials like his predecessors, hoping for unanimous guilty verdicts and death sentences. If he prioritizes cutting wasteful government spending, he will release additional detainees and allow the three plea bargain agreements to go into effect.

No one I spoke to during my last trip was willing to predict what a second Trump term might bode for Guantánamo – except that it won’t be closed.

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

– ref. Trump inherits the Guantánamo prison, complete with 4 ‘forever prisoners’ – https://theconversation.com/trump-inherits-the-guantanamo-prison-complete-with-4-forever-prisoners-247058

MIL OSI – Global Reports –

January 25, 2025
MIL-OSI Security: Bridgeport Man Charged with Narcotics Distribution Offenses

Source: Office of United States Attorneys

Marc H. Silverman, Acting United States Attorney for the District of Connecticut, and Robert Fuller, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that DARREN EBRON, also known as “D,” 32, of Bridgeport, was arrested yesterday on a criminal complaint charging him with narcotics distribution offenses.

Ebron appeared before U.S. Magistrate Judge S. Dave Vatti in Bridgeport and was ordered detained.

As alleged in court documents and statements made in court, law enforcement identified Ebron as a distributor of various controlled substances in and around Bridgeport. Between August 2024 and January 2025, investigators made multiple controlled purchases of distribution quantities of fentanyl from Ebron, intercepted numerous calls and text messages through a court-authorized wiretap during which Ebron coordinated the sale of fentanyl and crack cocaine to others, and observed Ebron conducting narcotics transactions.

The complaint charges Ebron with possession with intent to distribute, and distribution of 40 grams or more of fentanyl, and offense that carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years; conspiracy to distribute and to possess with intent to distribute controlled substances, an offense that carries a maximum term of imprisonment of 20 years; and use of a communications facility in furtherance of a drug trafficking crime, an offense that carries a maximum term of imprisonment of four years.

Acting U.S. Attorney Silverman stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.

This investigation is being conducted by the FBI Bridgeport Safe Streets Task Force, the Bridgeport Police Department, and the Stratford Police Department. The Task Force is composed of personnel from the FBI, Connecticut State Police, and the Bridgeport, Norwalk, and Trumbull Police Departments. The case is being prosecuted by Assistant U.S. Attorney Lauren C. Clark.

MIL Security OSI –

January 25, 2025
MIL-OSI Security: KC Man Pleads Guilty to Conspiracy to Traffic Machine Guns

Source: Office of United States Attorneys

KANSAS CITY, Mo. – A Kansas City, Mo., man has pleaded guilty in federal court to his role in a conspiracy to traffic machine guns.

Sheron Lamont Manning, 21, pleaded guilty before U.S. Chief District Judge Beth Phillips on Thursday, Jan. 23, to conspiracy to traffic firearms and to illegally trafficking a firearm that had been converted into a machine gun.

By pleading guilty today, Manning admitted that he participated in a conspiracy that illegally distributed at least 22 firearms to other persons from May 24, 2022, to April 20, 2023. Manning also admitted that he sold a Glock .45-caliber pistol that had been converted into a machine gun to a confidential informant of the Bureau of Alcohol, Tobacco, Firearms and Explosives for $1,200 on Nov. 18, 2022. During the transaction, Manning stated he could get the informant more fully automatic firearms.

Manning also admitted to additional criminal conduct, including four instances in which he illegally sold firearms to a confidential informant who was a felon and prohibited from possessing a firearm. Those sales included an AR-15 style, multi-caliber pistol with an obliterated serial number that had been altered into a machine gun, two Glock .40-caliber pistols that had been altered into machine guns, and an AR-15 style, multi-caliber pistol.

Under federal statutes, Manning is subject to a sentence of up to 30 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.

This case is being prosecuted by Assistant U.S. Attorney Trey Alford. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.

Project Safe Neighborhoods

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

MIL Security OSI –

January 25, 2025
MIL-OSI Security: Glen Burnie Man Sentenced to Federal Prison in Connection With Multi-State Dogfighting Conspiracy

Source: Office of United States Attorneys

Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Mario Damon Flythe, 50, of Glen Burnie, Maryland, to six months in federal prison and six months of home detention – followed by three years of supervised release; a $10,000 fine, and an additional $2,800 in a forfeiture money judgment, for his involvement in a multi-state dogfighting conspiracy.

Erek L. Barron, U.S. Attorney for the District of Maryland, announced the sentence with Acting Special Agent in Charge Sean Ryan, Federal Bureau of Investigation, Washington Field Office- Criminal and Cyber Division; Special Agent in Charge Charmeka Parker, U.S. Department of Agriculture Office of Inspector General; Special Agent in Charge Christopher Dillard, Department of Defense Office of Inspector General; Defense Criminal Investigative Service – Mid-Atlantic Field Office; Clinton Fuchs, U.S. Marshal for Maryland; and Amal E. Awad, Anne Arundel County Police Chief.

Flythe is affiliated with the same dogfighting enterprise as co-defendant Frederick Douglass Moorfield, Jr. The defendant also operated a kennel under the name “Razor Sharp Kennels,” and used his home to keep, train, and breed dogs for dogfighting for several years.

A review of Flythe’s cellphone records uncovered numerous message exchanges connected to dogfighting — primarily over the instant-messaging applications WhatsApp and Telegram — with members of a group known as the “DMV Board.” In addition to arranging dog fights and wagers, Flythe and the DMV Board discussed the breeding and training of fighting dogs, procuring supplies for the maintenance and feeding of fighting dogs, and law enforcement criminally prosecuting dogfighters. Additionally, Flythe and others discussed indictments of other members of the DMV Board and speculated about the identity of a potential “snitch.”

Flythe’s instant messages also revealed several exchanges arranging or “hooking” dogfights. During these conversations, Flythe identified the weight and sex of the dog he wanted to sponsor in a fight. Other dogfighters then proposed a fight against their own dog or matched Flythe with another contact who had a dog in the same weight class. The dogfighters then agreed on wagers and set a date for the fight, usually six to eight weeks after arranging the match. In addition to stating the winner’s fee for each fight, dogfighters agreed on forfeit or “fit” payments if a dogfighter backed out prior to the fight.

After hooking a fight, Flythe trained his dogs in a process known as a “keep.” Flythe’s typical keep schedule for a dog involved physical training — using treadmills, weighted collars, and other accessories — a diet plan, and steroids. Flythe obtained steroids and other veterinary drugs through various contacts in his dogfighting network instead of obtaining legitimate veterinary prescriptions.

When Flythe sponsored a dog, the fight only ended after a dog died or if the owner forfeited the match by the dog quitting the fight or the owner picking up the dog. Several times between 2019 and 2023, Flythe received monetary payments through CashApp in connection with dogfighting activities. Flythe also sent money to dogfighting contacts related to the dogfighting enterprise.

On September 6, 2023, during a search of Flythe’s home, investigators recovered a total of seven pit-bull type dogs from the premises. Authorities found four dogs chained to posts or poles in fenced-in cages in the property’s backyard, and three dogs in large metal cages in the basement. Flythe acknowledged that he bred and/or trained dogs for the purposes of sponsoring them for dogfights.

U.S. Attorney Barron commended the FBI; U.S. Department of Agriculture Office of Inspector General; Defense Criminal Investigative Service; U.S. Marshals Service; Anne Arundel County Police Department; Anne Arundel County Animal Control; and the U.S. Attorney’s Office for the Eastern District of Virginia for their valuable assistance in the investigation. Mr. Barron also thanked Assistant U.S. Attorney Alexander Levin who prosecuted the federal case.

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

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MIL Security OSI –

January 25, 2025
MIL-OSI Security: Former Government Contractor Convicted of Defrauding FEMA and Georgia-Based Litigation Funding Company

Source: Office of United States Attorneys

ATLANTA – Following an eight-day trial, Tiffany Brown was found guilty by a jury of defrauding the Federal Emergency Management Agency (“FEMA”) in connection with a nearly $156 million contract she was awarded to provide self-heating meals to the residents of Puerto Rico in the aftermath of Hurricane Maria, and for fraudulently obtaining $700,000 in litigation advances from the Litigation Funding Group of Georgia (“LFG”) by falsely claiming that she had settled with a logistics company who failed to deliver the meals to FEMA.

“Brown resorted to extraordinary lengths to defraud FEMA during a critical period when individuals were in desperate need of food resources during the devastating aftermath of Hurricane Maria,” said Acting U.S. Attorney Richard S. Moultrie, Jr. “Our Office, along with our law enforcement partners, will remain vigilant in pursuing and prosecuting individuals who exploit the devastation caused by natural disasters as an opportunity to commit fraud.”

“We will continue to investigate and support the prosecution of fraudsters who target vulnerable populations for their own gains,” said DHS Inspector General Joseph V. Cuffari, Ph.D.

“Brown greedily deceived the federal government during a natural disaster to enrich herself,” said Sean Burke, Acting Special Agent in Charge of FBI Atlanta. “The FBI and our partners will aggressively pursue any person who seeks to defraud the government, especially during times of tragedy.”

According to Acting U.S. Attorney Moultrie, the charges and other information presented in court: On September 20, 2017, Hurricane Maria made landfall as a Category 4 hurricane in Puerto Rico. In its wake, FEMA issued a solicitation for 40 million self-heating meals per week to deliver to the island. Meals requiring a microwave or an external heating source, such as for boiling water, were unacceptable. FEMA issued the meal solicitation because it had exhausted its existing supply of self-heating meals from its own warehouses, primary vendors, and federal agency partners in responding to Hurricanes Harvey and Irma— both Category 4 hurricanes that impacted broad swaths of Texas, Louisiana, and the U.S. Virgin Islands.

On September 28, 2017, Brown submitted a proposal to FEMA falsely representing that her Georgia-based company, Tribute Contracting LLC, could provide the necessary self-heating meals. In doing so, Brown misrepresented that Tribute: (a) could deliver 10 million meals per day utilizing 210 trucks; (b) would provide 300,000 meals prepositioned; and (c) had partnered with C.H. Robinson, a major shipping and logistics broker, to meet FEMA’s delivery requirements.

But Tribute was incapable of delivering 10 million meals, never prepositioned any meals, and did not have the claimed partnership. A FEMA contacting officer spoke with Brown after receiving Tribute’s proposal. The contracting officer knew that U.S.-based manufacturers could not produce the number of meals that Brown claimed in her proposal. In response, Brown falsely represented that she was procuring the self-heating meals from Action Meals, a Canadian manufacturer. Brown sent FEMA a doctored image of an Action Meals package with a fraudulent expiration date.

Based on her conversation with the contracting officer, Brown submitted a revised proposal falsely representing that she had firm confirmation from her “core suppliers for 30 million self-heating meals in 30 days” and that she could begin delivering one million meals a day beginning on October 7, 2017.

On October 3, 2017, FEMA awarded Tribute and Brown a $155,982,000 contract requiring the delivery of 30 million self-heating meals between October 7 and October 23, 2017. FEMA had to confirm that Tribute’s proposed meal was “technically acceptable” before approving the delivery. FEMA approved Brown’s proposal in part because it understood that Brown would deliver self-heating meals manufactured by Action Meals. Unbeknownst to FEMA, Brown had not secured a supplier when she was awarded the FEMA contract. After being awarded the contract, Brown repeatedly mispresented to FEMA the status of her suppliers and timing of deliveries.

On October 19, 2017, FEMA terminated its contract with Brown and Tribute. Before doing so, however, FEMA paid Brown $255,000 based on her submission of fraudulent invoices and bills of ladings claiming that she had successfully delivered 50,000 self-heating meals. Brown in fact had delivered 50,000 non-compliant, dehydrated meals. After FEMA terminated the contract, Brown continued making false representations to FEMA. For example, Brown submitted fraudulent invoices in December 2017 and June 2019 claiming to have purchased tens of thousands of dollars of heaters.

In March 2019, Brown falsely represented to LFG that she had a tentative $5 million settlement with a logistics company, Total Quality Logistics (“TQL”). Brown claimed that TQL was willing to settle with her because it failed to timely deliver meals to FEMA, which she claimed was the reason FEMA terminated her contract. In truth, TQL obtained a default judgment against Brown for unpaid deliveries.

To secure the fraudulent litigation financing, Brown provided LFG with a mix of actual and fabricated documents. For instance, she provided the real FEMA contract, but a fraudulent tentative settlement agreement, and fabricated emails between TQL’s general counsel and “Jerry Rosenstein,” Tribute’s purported in-house counsel. Brown further perpetrated the fraud by using her attorney to create the illusion that she was a successful government contractor who was negotiating directly with TQL. Brown later falsely claimed she settled with TQL for $6.5 million, which she evidenced by an agreement that TQL’s CEO supposedly signed. The scheme unraveled when TQL did not pay the $6.5 million, and Brown’s attorney received an email from a “James Wilson,” who was supposedly an in-house attorney at TQL. “James Wilson” wrote that he was willing to release the settlement funds in exchange for $500,000. Investigators later determined that Brown was responsible for creating the fake “Jerry Rosenstein” and “James Wilson” personas.

Tiffany Brown, 45, of Atlanta, Georgia is scheduled to be sentenced on April 22, 2025, at 10:00 a.m. by U.S. District Judge Thomas W. Thrash, Jr. Brown was found guilty by a federal jury on January 17, 2025, of 11 counts of major disaster fraud, 17 counts of wire fraud, one count of theft of government money, and three counts of money laundering.

This case is being investigated by the U.S. Department of Homeland Security, Office of Inspector General, and the Federal Bureau of Investigation, with valuable assistance from the Federal Emergency Management Agency’s Office of Chief Counsel.

Assistant U.S. Attorneys Alex R. Sistla and Jessica C. Morris are prosecuting the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

MIL Security OSI –

January 25, 2025
MIL-OSI Security: Chicago Rapper Lil Durk Arrested on Complaint Alleging He Ordered Murder Attempt that Resulted in Fatal Shooting Near Beverly Center
Source: Office of United States Attorneys

LOS ANGELES – A Grammy Award-winning Chicago rapper has been arrested on a federal criminal complaint alleging he conspired with others to murder a rival rapper, resulting in a shooting and murder that took place at a gas station near the Beverly Center shopping mall in Los Angeles in August 2022 – an attack that resulted in a family member of the rival being shot and killed, the Justice Department announced today.

Durk Banks, 32, a.k.a. “Lil Durk,” was arrested near Miami International Airport late Thursday on a complaint charging him with conspiracy to use interstate facilities to commit murder-for-hire resulting in death.

He made his initial appearance this afternoon in United States District Court for the Southern District of Florida and remains in federal custody. His arraignment is expected to occur in Los Angeles federal court in the coming weeks.

“Mr. Banks is charged with orchestrating a cold-blooded murder that resulted in the death of a rival’s family member,” said United States Attorney Martin Estrada. “Not only that, the shooting occurred in the open, at a gas station at a busy intersection, endangering many others in the area. Violent gun crime of this sort is devastating to our community and we will have zero-tolerance for those who perpetrate such callous acts of violence.”

“The apprehension of Mr. Banks as he attempted to leave the United States is once again proof that the FBI and our extraordinary partners at the Los Angeles Police Department have a long reach” said Akil Davis, Assistant Director in Charge of the FBI Los Angeles Field Office. “No excuse can justify this violent act and let me be clear: While you’re going about your life, thinking you ‘got away with it,’ the FBI is piecing together the facts that will serve as your undoing.”

“Cases like these that span multiple states and jurisdictions are complicated and can oftentimes only be resolved through the collaboration of multiple departments,” said Los Angeles Police Chief Dominic Choi. “This arrest is the culmination of the combined efforts of our partners in the U.S. Attorney’s Office, the FBI, and LAPD’s Operation West Bureau Homicide detectives who discovered that Durk D a.k.a. Lil Durk was involved in this heinous murder. The hundreds of hours spent on the investigation included surveillance, authoring numerous search warrants, using forensic technology, and tireless investigative travel and collaboration alongside our federal partners led to this arrest. I am appreciative of the dedication of those involved.”

According to the complaint filed Thursday night, Banks is the leader of the Chicago-based rap collective known as “Only the Family” or “OTF.” Law enforcement believes OTF also acts as a group of individuals who engage in violence – including murder and assault – at Banks’ direction and to maintain their status in OTF.

Banks feuded with a victim, identified in court documents as “T.B.” The feud stemmed from a November 6, 2020, murder in which an associate of T.B. shot and killed an OTF rapper named Dayvon Bennett, a.k.a. “King Von.” Bennett and Banks were close friends.

In response to Bennett’s murder, Banks allegedly put a bounty on T.B.’s life.

On August 19, 2022, several OTF members and associates used two vehicles and worked in tandem to track, stalk, and attempt to murder T.B. for hours, culminating in a shooting at a gasoline station located near the Beverly Center mall. The co-conspirators fired at least 18 rounds at T.B.’s vehicle, striking and killing a victim identified in court documents as “S.R.,” who was T.B.’s family member who had been traveling with T.B.

Banks allegedly ordered T.B.’s murder and the hitmen used money from Banks and OTF-related finances to carry out the hit. Bank and flight records show that an OTF member and close associate of Banks coordinated and paid for five co-conspirators to travel from Chicago to California on the day before the murder. Around the time the one-way flights were purchased, Banks told the OTF associate booking the flights, “Don’t book no flights under no names involved wit [sic] me.”

The same day the hitmen traveled from Chicago to California, Banks also traveled to California in a private jet with another conspirator, Kavon London Grant, 28, a.k.a. “Cuz” and “Vonnie.” Later that day, Grant allegedly purchased ski masks for the shooters to use to commit the murder and paid – using a credit card in Banks’ name – for the other co-conspirators’ hotel room.

On Thursday morning, federal and local law enforcement in the Chicago area arrested Grant and four other defendants charged in a four-count federal grand jury indictment alleging their roles in the murder-for-hire plot. After law enforcement made the arrests and executed search warrants in Chicago, the FBI learned that Banks had been booked on three international flights scheduled to leave the United States on Thursday. When banks arrived near one of the departing airports – in Miami, specifically – law enforcement personnel arrested him.

In additional to Grant, the defendants charged in the separate indictment, which a grand jury returned on October 17, are:
- Deandre Dontrell Wilson, 33, a.k.a. “DeDe,” of Chicago;
- Keith Jones, 33, a.k.a. “Flacka,” of Gary, Indiana;
- David Brian Lindsey, 33, a.k.a. “Browneyez,” of Addison, Illinois; and
- Asa Houston, 36, a.k.a. “Boogie,” of Chicago.
These four defendants along with Grant are charged with one count of conspiracy, one count of use of interstate facilities to commit murder-for-hire resulting in death, and one count of using, carrying and discharging firearms and a machine gun and possession of such firearms in furtherance of a crime of violence resulting in death. Jones faces and additional count of possession of a machine gun.

These defendants made their initial appearances on Thursday in the Northern District of Illinois and are expected to be arraigned in United States District Court in downtown Los Angeles in the coming weeks.

A complaint and indictment contain allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.

If convicted, Banks and the five defendants charged in the separate indictment each would face a statutory maximum sentence of life in federal prison.

The FBI and the Los Angeles Police Department are investigating this matter.

Assistant United States Attorneys Ian V. Yanniello of the General Crimes Section and Daniel H. Weiner of the International Narcotics, Money Laundering, and Racketeering Section are prosecuting this case.

MIL Security OSI –
January 24, 2025

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

Source: GlobeNewswire (MIL-OSI)

CORYDON, Ind., Oct. 25, 2024 (GLOBE NEWSWIRE) — First Capital, Inc. (the “Company”) (NASDAQ: FCAP), the holding company for First Harrison Bank (the “Bank”), today reported net income of $2.9 million, or $0.87 per diluted share, for the quarter ended September 30, 2024, compared to net income of $3.1 million, or $0.94 per diluted share, for the quarter ended September 30, 2023.

Results of Operations for the Three Months Ended September 30, 2024 and 2023

Net interest income after provision for credit losses increased $415,000 for the quarter ended September 30, 2024 as compared to the same period in 2023. Interest income increased $2.0 million when comparing the periods due to an increase in the average yield on interest-earning assets from 3.96% for the third quarter of 2023 to 4.53% for the third quarter of 2024. The average balance of interest-earning assets increased from $1.13 billion for the quarter ended September 30, 2023 to $1.17 billion at September 30, 2024. The increase in the yield was primarily due to an increase in the yield on loans to 6.09% for the third quarter of 2024 compared to 5.74% for the same period in 2023. In addition, the Company’s lower yielding securities continue to mature with proceeds being reinvested in higher yielding loans or federal funds sold. When compared to the quarter ended September 30, 2023, the average balance of the Company’s securities decreased $59.0 million, while the Company’s average loans and federal funds sold balances increased $40.6 million and $58.0 million, respectively, during the quarter ended September 30, 2024. Interest expense increased $1.5 million when comparing the periods due to an increase in the average cost of interest-bearing liabilities from 1.30% for the third quarter of 2023 to 1.87% for the third quarter of 2024, in addition to an increase in the average balance of interest-bearing liabilities from $813.2 million for the third quarter of 2023 to $875.8 million for the third quarter of 2024. The Company had no outstanding advances from the Federal Home Loan Bank (“FHLB”) during the quarter ended September 30, 2024 compared to $3.3 million with an average rate of 6.03% during the quarter ended September 30, 2023. The Company had average outstanding borrowings under the Federal Reserve Bank’s Bank Term Funding Program (“BTFP”) of $33.6 million and $13.0 million with an average rate of 4.89% and 5.02% during the quarters ended September 30, 2024 and 2023, respectively. As a result of the changes in interest-earning assets and interest-bearing liabilities, the net interest margin increased from 3.02% for the quarter ended September 30, 2023 to 3.12% for the same period in 2024.

Based on management’s analysis of the Allowance for Credit Losses (“ACL”) on loans and unfunded loan commitments, the provision for credit losses increased from $290,000 for the quarter ended September 30, 2023 to $463,000 for the quarter ended September 30, 2024. The increase was due to loan growth during the period, the increase in nonperforming assets during the quarter described later in this release, as well as management’s consideration of macroeconomic uncertainty. The Bank recognized net charge-offs of $64,000 and $19,000 for the quarters ended September 30, 2024 and 2023, respectively.

Noninterest income decreased $147,000 for the quarter ended September 30, 2024 as compared to the same period in 2023. The Company recognized a $196,000 loss on equity securities for the quarter ended September 30, 2024 compared to a loss of $131,000 for the same quarter in 2023. The Company did not sell any securities during the quarter ended September 30, 2024. The Company recognized a net $63,000 gain on sale of securities during the quarter ended September 30, 2023. During the quarter ended September 30, 2023, the Company sold securities available for sale with a market value of $9.4 million and an amortized cost basis of $9.5 million resulting in a net loss of $94,000. The net loss was more than offset by the $157,000 gain on sale of the Company’s VISA Class B stock in September 2023. In addition, other income decreased $54,000 during the quarter. These were partially offset by increases of $17,000 and $13,000 in ATM and debit card fees and service charges on deposit accounts, respectively.

Noninterest expense increased $543,000 for the quarter ended September 30, 2024 as compared to the same period in 2023, due primarily to increases in professional fees and compensation and benefits of $213,000 and $160,000, respectively. The increase in professional fees is primarily due to increased costs associated with the Company’s annual audit and fees being accrued for the Company’s ongoing core contract negotiations. The increase in compensation and benefits is due to standard increases in salary and wages as well as increases in the cost of Company-provided health insurance benefits. In addition, data processing, advertising, and occupancy and equipment expenses increased $51,000, $45,000, and $41,000, respectively.

Income tax expense decreased $35,000 for the third quarter of 2024 as compared to the third quarter of 2023 primarily due to a decrease in the Company’s taxable income. The effective tax rate for the quarter ended September 30, 2024 was 15.6% compared to 15.4% for the same period in 2023.

Results of Operations for the Nine Months Ended September 30, 2024 and 2023

For the nine months ended September 30, 2024, the Company reported net income of $8.7 million, or $2.59 per diluted share, compared to net income of $9.7 million, or $2.89 per diluted share, for the same period in 2023.

Net interest income after provision for credit losses increased $72,000 for the nine months ended September 30, 2024 compared to the same period in 2023. Interest income increased $5.3 million when comparing the two periods due to an increase in the average yield on interest-earning assets from 3.80% for the nine months ended September 30, 2023 to 4.37% for the same period in 2024. The increase in the yield was primarily due to an increase in the yield on loans to 5.99% for the first nine months of 2024 compared to 5.57% for the same period in 2023. In addition, the Company’s lower yielding securities continue to mature with proceeds being reinvested in higher yielding loans or federal funds sold. When compared to the nine months ended September 30, 2023, the average balance of the Company’s securities decreased $49.7 million, while the Company’s average loans and federal funds sold balances increased $50.8 million and $15.5 million, respectively, during the nine months ended September 30, 2024. Interest expense increased $5.0 million as the average cost of interest-bearing liabilities increased from 0.98% for the nine months ended September 30, 2023 to 1.72% for the same period in 2024, in addition to an increase in the average balance of interest-bearing liabilities from $805.1 million for the first nine months of 2023 to $846.8 million for the same period of 2024. The Company had average outstanding advances from the FHLB of $2.3 million and $2.6 million with an average rate of 5.69% and 5.49% during the nine months ended September 30, 2024 and 2023, respectively. The Company had average outstanding borrowings under the Federal Reserve Bank’s BTFP of $33.1 million and $6.4 million with an average rate of 4.84% and 5.03% during the nine months ended September 30, 2024 and 2023, respectively. As a result of the changes in interest-earning assets and interest-bearing liabilities, the net interest margin decreased from 3.10% for the nine months ended September 30, 2023 to 3.09% for the nine months ended September 30, 2024.

Based on management’s analysis of the ACL on loans and unfunded loan commitments, the provision for credit losses increased from $833,000 for the nine months ended September 30, 2023 to $1.1 million for the nine months ended September 30, 2024. The increase was due to loan growth during the period, the increase in nonperforming assets described later in this release, as well as management’s consideration of macroeconomic uncertainty. The Bank recognized net charge-offs of $149,000 for the nine months ended September 30, 2024 compared to $380,000 for the same period in 2023.

Noninterest income decreased $79,000 for the nine months ended September 30, 2024 as compared to the nine months ended September 30, 2023 primarily due to the Company recognizing a $270,000 loss on equity securities during the nine months ended September 30, 2024 compared to an $86,000 loss during the same period in 2023. This was partially offset by increases of $77,000 and $30,000 from gains on sale of loans and service charges on deposit accounts, respectively.

Noninterest expenses increased $1.2 million for the nine months ended September 30, 2024 as compared to the same period in 2023. This was primarily due to increases in professional fees, compensation and benefits, data processing, and other expenses of $424,000, $374,000, $130,000, and $179,000, respectively, when comparing the two periods. The increase in professional fees is primarily due to increased costs associated with the Company’s annual audit and fees being accrued for the Company’s ongoing core contract negotiations. The increase in compensation and benefits is due to standard increases in salary and wages as well as increases in the cost of Company-provided health insurance benefits. The increase in data processing expense is primarily due to increased debit card interchange fees. Increases in other expenses included a $77,000 increase in the Company’s support of local communities through sponsorships and donations, $26,000 in increased dues and subscriptions and $24,000 of additional FDIC insurance assessments for the nine months ended September 30, 2024 compared to the same period of 2023.

Income tax expense decreased $238,000 for the nine months ended September 30, 2024 as compared to the same period in 2023 resulting in an effective tax rate of 15.0% for the nine months ended September 30, 2024, compared to 15.4% for the same period in 2023.

Comparison of Financial Condition at September 30, 2024 and December 31, 2023

Total assets were $1.19 billion and $1.16 billion at September 30, 2024 and December 31, 2023, respectively. Net loans receivable and total cash and cash equivalents increased $16.2 million and $51.3 million from December 31, 2023 to September 30, 2024, respectively, while securities available for sale decreased $28.8 million, during the same period. Deposits were $1.03 billion at December 31, 2023 and September 30, 2024. The Bank had $33.6 million in borrowings outstanding through the Federal Reserve Bank’s BTFP at September 30, 2024 compared to $21.5 million at December 31, 2023. Nonperforming assets (consisting of nonaccrual loans, accruing loans 90 days or more past due, and foreclosed real estate) increased from $1.8 million at December 31, 2023 to $4.5 million at September 30, 2024. The increase was primarily due to the nonaccrual classification of two commercial loan relationships totaling $2.6 million. Loans in the relationship are secured by a variety of real estate and business assets.

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

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

Cautionary Note Regarding Forward-Looking Statements

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

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

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

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


FIRST CAPITAL, INC. AND SUBSIDIARIES
Consolidated Financial Highlights (Unaudited)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
OPERATING DATA	2024			2023			2024			2023
(Dollars in thousands, except per share data)

Total interest income	$	13,224		$	11,179		$	37,279		$	31,966
Total interest expense		4,099			2,642			10,897			5,926
Net interest income		9,125			8,537			26,382			26,040
Provision for credit losses		463			290			1,103			833
Net interest income after provision for credit losses		8,662			8,247			25,279			25,207

Total non-interest income		1,800			1,947			5,722			5,801
Total non-interest expense		7,024			6,481			20,781			19,548
Income before income taxes		3,438			3,713			10,220			11,460
Income tax expense		537			572			1,532			1,770
Net income		2,901			3,141			8,688			9,690
Less net income attributable to the noncontrolling interest		3			3			10			10
Net income attributable to First Capital, Inc.	$	2,898		$	3,138		$	8,678		$	9,680

Net income per share attributable to First Capital, Inc. common shareholders:
Basic	$	0.87		$	0.94		$	2.59		$	2.89

Diluted	$	0.87		$	0.94		$	2.59		$	2.89

Weighted average common shares outstanding:
Basic		3,347,236			3,345,869			3,345,863			3,347,823

Diluted		3,347,236			3,345,869			3,345,863			3,347,823

OTHER FINANCIAL DATA

Cash dividends per share	$	0.29		$	0.27		$	0.83		$	0.81
Return on average assets (annualized) (1)		0.97	%		1.09	%		0.99	%		1.13	%
Return on average equity (annualized) (1)		10.48	%		13.53	%		10.84	%		14.14	%
Net interest margin		3.12	%		3.02	%		3.09	%		3.10	%
Interest rate spread		2.66	%		2.66	%		2.65	%		2.82	%
Net overhead expense as a percentage of average assets (annualized) (1)		2.35	%		2.25	%		2.38	%		2.28	%

	September 30,			December 31,
BALANCE SHEET INFORMATION	2024			2023

Cash and cash equivalents	$	89,939		$	38,670
Interest-bearing time deposits		2,695			3,920
Investment securities		415,469			444,271
Gross loans		639,566			622,414
Allowance for credit losses		8,959			8,005
Earning assets		1,119,791			1,083,898
Total assets		1,189,295			1,157,880
Deposits		1,030,249			1,025,211
Borrowed funds		33,625			21,500
Stockholders’ equity, net of noncontrolling interest		116,775			105,233
Allowance for credit losses as a percent of gross loans		1.40	%		1.29	%
Non-performing assets:
Nonaccrual loans		4,483			1,751
Accruing loans past due 90 days		–			–
Foreclosed real estate		–			–
Regulatory capital ratios (Bank only):
Community Bank Leverage Ratio (2)		10.25	%		9.92	%

(1) See reconciliation of GAAP and non-GAAP financial measures for additional information relating to the calculation of this item.
(2) Effective March 31, 2020, the Bank opted in to the Community Bank Leverage Ratio (CBLR) framework. As such, the other regulatory ratios are no longer provided.

RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES (UNAUDITED):

This presentation contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Management uses these “non-GAAP” measures in its analysis of the Company’s performance. Management believes that these non-GAAP financial measures allow for better comparability with prior periods, as well as with peers in the industry who provide a similar presentation, and provide a further understanding of the Company’s ongoing operations. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. The following table summarizes the non-GAAP financial measures derived from amounts reported in the Company’s consolidated financial statements and reconciles those non-GAAP financial measures with the comparable GAAP financial measures.

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2024			2023			2024			2023

Return on average assets before annualization		0.24	%		0.27	%		0.75	%		0.85	%
Annualization factor		4.00			4.00			1.33			1.33
Annualized return on average assets		0.97	%		1.09	%		0.99	%		1.13	%


Return on average equity before annualization		2.62	%		3.38	%		8.13	%		10.60	%
Annualization factor		4.00			4.00			1.33			1.33
Annualized return on average equity		10.48	%		13.53	%		10.84	%		14.14	%


Net overhead expense as a % of average assets before annualization		0.59	%		0.56	%		1.78	%		1.71	%
Annualization factor		4.00			4.00			1.33			1.33
Annualized net overhead expense as a % of average assets		2.35	%		2.25	%		2.38	%		2.28	%

The MIL Network –

January 24, 2025

MIL-OSI Security: McLaughlin Man Sentenced for Assault

Source: Office of United States Attorneys

ABERDEEN – United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Charles B. Kornmann has sentenced a McLaughlin, South Dakota, man convicted of Assault Resulting in Serious Bodily Injury. The sentencing took place on October 21, 2024.

Ronald Long Feather, 25, was sentenced to 34 months in federal prison, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.

Long Feather was indicted by a federal grand jury in November of 2023. He pleaded guilty on July 23, 2024.

Shortly before 7:00 p.m. on March 9, 2023, in McLaughlin, which lies within the Standing Rock Sioux Indian Reservation, a belligerent and intoxicated man hurled a plastic snow shovel at Long Feather’s front door, damaging the screen. Long Feather, heavily intoxicated himself, stepped outside and confronted him on the stoop. During the ensuing scuffle, Long Feather stabbed the man in the neck. The man fled on foot to his uncle’s home, who turned him away, opining the blood would scare the children. No one called 911. The man wandered the snow-covered streets of McLaughlin until Good Samaritans rendered aid and called for an ambulance. The man’s heart stopped twenty minutes before reaching the Mobridge Hospital. Resuscitation efforts were unsuccessful.

This matter was prosecuted by the U.S. Attorney’s Office because the Major Crimes Act, a federal statute, mandates that certain violent crimes alleged to have occurred in Indian country be prosecuted in Federal court as opposed to State court.

This case was investigated by the FBI and the Bureau of Indian Affairs – Office of Justice Services. Assistant U.S. Attorney Carl Thunem prosecuted the case.

Long Feather was immediately remanded to the custody of the U.S. Marshals Service.

MIL Security OSI –

January 24, 2025
MIL-OSI Security: Calera Resident Sentenced To 25 Years For Child Exploitation Crimes

Source: Office of United States Attorneys

MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Ryan John Capps, age 25, of Calera, Oklahoma, was sentenced to 300 months in prison for one count of Coercion and Enticement, and 300 months in prison for one count of Sexual Exploitation of a Child/Use of a Child to Produce a Visual Depiction. Capps was also sentenced to 180 months in prison for one count of Sexual Abuse of a Minor in Indian Country. The sentences were ordered to be served concurrently.

The charges arose from an investigation by the Durant Police Department and the Federal Bureau of Investigation.

On May 1, 2024, Capps was found guilty of the charges by a federal jury. According to investigators, in the autumn of 2022, while employed as a teacher and coach at Durant Middle School, Capps enticed a minor student to produce child sexual abuse material and engage in sexual activity. The crimes occurred in Bryan County, within the boundaries of the Choctaw Nation Reservation of Oklahoma, in the Eastern District of Oklahoma.

“This defendant abused his position of trust as a teacher and coach by sexually exploiting a student he was supposed to protect,” said FBI Oklahoma City Special Agent in Charge Doug Goodwater. “I’m grateful for the dedicated efforts of the FBI, the Durant Police Department, and the US Attorney’s Office to remove this predator from the lives of innocent children through the justice system.”

“The defendant violated the trust placed in him as a teacher in order to exploit the victim for his own prurient interests,” said United States Attorney Christopher J. Wilson. “The jury’s verdict and the sentences imposed by the Court are a resounding message that those who commit these deplorable acts will be subjected to the justice system and severely punished.”

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 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 http://www.justice.gov/psc.

We encourage anyone who suspects or has information regarding child sexual exploitation, trafficking of minors, sextortion, child pornography, or any other means of child exploitation to immediately contact law enforcement. You can file a report on the National Center for Missing & Exploited Children (NCMEC)’s website at http://www.cybertipline.com, call 1-800-843-5678, contact the FBI at 1-800-CALL-FBI (1-800-225-5324), or call 877-4-HSI TIP.

The Honorable Ronald A. White, Chief District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing in Muskogee. Capps will remain in the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.

Assistant United States Attorneys Jessie K. Pippin and Jessica Bove represented the United States.

MIL Security OSI –

January 24, 2025

Category: Intelligence Agencies

Proposing reform is nothing new

Most presidents have tried the same thing

So why haven’t these plans worked?

So how did we get here?

A chance to make progress

Witness to the transition

Can Guantánamo be closed?

15 men left behind

The ‘War on Terror’ is not over