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Category: Politics

  • MIL-OSI United Kingdom: The UK welcomes the unanimous mandate renewal of the Multinational Security Support mission to Haiti: UK statement at the UN Security Council

    Source: United Kingdom – Executive Government & Departments

    Statement by Ambassador James Kariuki, UK Deputy Permanent Representative to the UN, at the UN Security Council meeting on Haiti.

    Location:
    United Nations, New York
    Delivered on:
    23 October 2024 (Transcript of the speech, exactly as it was delivered)

    Thank you President. I thank SRSG Salvador and Executive Director Russell for their briefings. I welcome the participation of the Permanent Representatives of Haiti and Kenya as well as Foreign Minister Álvarez Hill from the Dominican Republic in our meeting today.

    And I would also like to thank Ms. Auguste Ducéna for joining us today. As you and the other briefers made clear, the crisis in Haiti continues to bring unimaginable daily suffering and misery to the Haitian people. This Council remains shocked and appalled by the barbarity and human rights abuses committed by gangs.

    The UK welcomes the unanimous mandate renewal of the Multinational Security Support (MSS) mission to Haiti and pays tribute to Kenya’s leadership. We welcome the deployment of personnel from Kenya, Jamaica and Belize to the MSS as well as the pledged contributions from other nations. The MSS remains vital to supporting Haitian efforts to resolve instability and we commend the initial progress it has made alongside the Haitian National Police. It is important to ensure international security efforts are sustainable and support the Haitian government in addressing the root causes of the crisis. 

    We are also grateful to BINUH for their work to establish coordination between Haitian stakeholders, the MSS, and the international community. The UK has pledged over $6 million to support the deployment of the MSS through strengthening the mission’s human rights compliance framework. We expect the first tranche of funding to be released imminently.

    The Transitional Presidential Council must work together for the benefit of the Haitian people. We urge Haitian political and civil society, with the active participation of women and youth, to seize this opportunity to create the conditions necessary for lasting change.

    President, in a welcome step this Council decided to expand the UN Haiti sanctions designation list and for the first time targeted an individual responsible for financing destabilising gang activity.

    In conclusion, we call on all political actors to work together to address Haiti’s serious challenges and to refrain from acting based on personal or partisan interests. There is a chance to bring the peace and security that the Haitian people need and deserve.

    Updates to this page

    Published 23 October 2024

    MIL OSI United Kingdom –

    January 24, 2025
  • MIL-OSI Canada: Recognizing Alberta’s sport community

    Source: Government of Canada regional news

    Alberta is a global leader in sport, and it’s thanks to all those in the sport community who dedicate themselves to excellence. The Alberta Sport Recognition Awards program was established in 1987 to acknowledge the outstanding achievements and commitment of the sport community in the province.

    “This year, we have witnessed our fellow Albertans achieve excellence in sport, and Alberta’s government is proud to celebrate this excellence through the Alberta Sport Recognition Awards. Their remarkable dedication to sport makes our province a better place to live, visit and play.”

    Joseph Schow, Minister of Tourism and Sport

    Alberta’s government understands the critical role sport and recreation play in Albertans’ lives and is proud to honour the outstanding accomplishments of Alberta athletes and the people who help them succeed. Sport teaches healthy habits and fundamental life skills, such as teamwork, leadership, confidence and commitment.

    The 2024 Alberta Sport Recognition Awards will be provided in the following categories:

    • Junior Female and Male Athlete of the Year
    • Junior Team of the Year
    • Open Female and Male Athlete of the Year
    • Open Team of the Year
    • Coach and Technical Officials Recognition Award
    • Sport Volunteer Award

    Nominations will close on Jan. 15, 2025. Visit the Alberta Sport Recognition Awards web page for more information on how to nominate individuals or teams.

    Related information

    • Alberta Sport Recognition Awards

    MIL OSI Canada News –

    January 24, 2025
  • MIL-OSI: Waterstone Financial, Inc. Announces Results of Operations for the Quarter and Nine Months Ended September 30, 2024

    Source: GlobeNewswire (MIL-OSI)

    WAUWATOSA, Wis., Oct. 22, 2024 (GLOBE NEWSWIRE) — Waterstone Financial, Inc. (NASDAQ: WSBF), holding company for WaterStone Bank, reported net income of $4.7 million, or $0.26 per diluted share, for the quarter ended September 30, 2024, compared to net income of $3.3 million, or $0.16 per diluted share for the quarter ended September 30, 2023. Net income per diluted share was $0.72 for the nine months ended September 30, 2024, compared to net income per diluted share of $0.46 for the nine months ended September 30, 2023.

    “The Community Banking segment achieved growth in its loan and core deposit (excluding brokered deposits) balances,” said William Bruss, Chief Executive Officer of Waterstone Financial, Inc. “We continue to maintain strong asset quality metrics and remain in a net recovery position, resulting in a negative provision during the quarter. While the decrease in our wholesale borrowing rate during the quarter captures a portion of the benefit from the 50 bps cut in the Federal Funds rate during September, the competitive retail funding environment remains a headwind. The Mortgage Banking segment experienced a decrease in fundings; however, it remained profitable due in large part to our continued focus on cost control. Waterstone Financial, Inc. remained active in share repurchases and once again declared a dividend, as we are committed to shareholder returns.” 

    Highlights of the Quarter Ended September 30, 2024

    Waterstone Financial, Inc. (Consolidated)

     ● Consolidated net income of Waterstone Financial, Inc. totaled $4.7 million for the quarter ended September 30, 2024, compared to net income of $3.3 million for the quarter ended September 30, 2023.
    ● Consolidated return on average assets was 0.83% for the quarter ended September 30, 2024, compared to 0.58% for the quarter ended September 30, 2023.
    ● Consolidated return on average equity was 5.55% for the quarter ended September 30, 2024, and 3.63% for the quarter ended September 30, 2023.
    ● Dividends declared during the quarter ended September 30, 2024, totaled $0.15 per common share.
    ● During the quarter ended September 30, 2024, we repurchased approximately 71,000 shares at a cost (including the federal excise tax) of $979,000, or $13.75 per share.
    ● Nonperforming assets as a percentage of total assets was 0.25% at September 30, 2024, 0.25% at June 30, 2024, and 0.20% at September 30, 2023.  
    ● Past due loans as a percentage of total loans was 0.63% at September 30, 2024, 0.76% at June 30, 2024, and 0.53% at September 30, 2023. 
    ● Book value per share was $17.58 at September 30, 2024 and $16.94 at December 31, 2023. 

    Community Banking Segment

    ● Pre-tax income totaled $5.6 million for the quarter ended September 30, 2024, which represents a $14,000, or 0.2%, decrease compared to $5.7 million for the quarter ended September 30, 2023.
    ● Net interest income totaled $12.3 million for the quarter ended September 30, 2024, which represents a $181,000, or 1.5%, decrease compared to $12.4 million for the quarter ended September 30, 2023.
    ● Average loans held for investment totaled $1.69 billion during the quarter ended September 30, 2024, which represents an increase of $60.9 million, or 3.7%, compared to $1.63 billion for the quarter ended September 30, 2023. The increase was primarily due to increases in the construction, commercial real estate, and over four family mortgages. Average loans held for investment increased $19.7 million compared to $1.67 billion for the quarter ended June 30, 2024. The increase was primarily due to increases in construction and over four family mortgages.
    ● Net interest margin decreased 13 basis points to 2.13% for the quarter ended September 30, 2024, compared to 2.26% for the quarter ended September 30, 2023, which was a result of an increase in weighted average cost of deposits and borrowings as the federal funds rate increases resulted in increased funding rates. Net interest margin increased 12 basis points compared to 2.01% for the quarter ended June 30, 2024, primarily driven by an increase in weighted average yield on loans receivable and held for sale.     
    ● Past due loans at the community banking segment totaled $8.0 million at September 30, 2024, $9.3 million at June 30, 2024, and $6.7 million at September 30, 2023.
    ● The segment had a negative provision for credit losses related to funded loans of $218,000 for the quarter ended September 30, 2024, compared to a provision for credit losses related to funded loans of $206,000 for the quarter ended September 30, 2023. The current quarter decrease was primarily due to a decrease in historical loss rates, net recoveries for the period, and improvements in certain internal asset quality metrics offset by an adjustment in the qualitative factors primarily related to increases in economic risks related to commercial real estate loans during the quarter. The negative provision for credit losses related to unfunded loan commitments was $84,000 for the quarter ended September 30, 2024, compared to a provision for credit losses related to unfunded loan commitments of $239,000 for the quarter ended September 30, 2023. The negative provision for credit losses related to unfunded loan commitments for the quarter ended September 30, 2024, was due primarily to a decrease of loans that are currently waiting to be funded compared to the prior quarter end.  
    ● The efficiency ratio, a non-GAAP ratio, was 60.35% for the quarter ended September 30, 2024, compared to 54.43% for the quarter ended September 30, 2023.
    ● Average deposits (excluding escrow accounts) totaled $1.25 billion during the quarter ended September 30, 2024, an increase of $47.9 million, or 4.0%, compared to $1.20 billion during the quarter ended September 30, 2023. Average deposits increased $27.6 million, or 9.1% annualized, compared to $1.22 billion for the quarter ended June 30, 2024.  The increases were primarily due to an increase in certificates of deposit balances.  The segment had $2.0 million in brokered certificate of deposits at September 30, 2024.

    Mortgage Banking Segment

     ● Pre-tax income totaled $144,000 for the quarter ended September 30, 2024, compared to $2.1 million of pre-tax loss for the quarter ended September 30, 2023.
    ● Loan originations decreased $38.8 million, or 6.5%, to $558.7 million during the quarter ended September 30, 2024, compared to $597.6 million during the quarter ended September 30, 2023. Origination volume relative to purchase activity accounted for 88.9% of originations for the quarter ended September 30, 2024, compared to 95.4% of total originations for the quarter ended September 30, 2023.
    ● Mortgage banking non-interest income decreased $66,000, or 0.3%, to $21.4 million for the quarter ended September 30, 2024, compared to $21.5 million for the quarter ended September 30, 2023.
    ● Gross margin on loans sold totaled 3.83% for the quarter ended September 30, 2024, compared to 3.62% for the quarter ended September 30, 2023.  
    ● Total compensation, payroll taxes and other employee benefits decreased $1.3 million, or 7.3%, to $15.9 million during the quarter ended September 30, 2024, compared to $17.2 million during the quarter ended September 30, 2023. The decrease primarily related to decreased salary expense and incentives expense driven by reduced employee headcount and a decrease in new branches added over the past year.


    About Waterstone Financial, Inc.

    Waterstone Financial, Inc. is the savings and loan holding company for WaterStone Bank. WaterStone Bank was established in 1921 and offers a full suite of personal and business banking products. The Bank has branches in Wauwatosa/State St, Brookfield, Fox Point/North Shore, Franklin/Hales Corners, Germantown/Menomonee Falls, Greenfield/Loomis Rd, Milwaukee/Oklahoma Ave, Oak Creek/27th St, Oak Creek/Howell Ave, Oconomowoc/Lake Country, Pewaukee, Waukesha, West Allis/Greenfield Ave, and West Allis/National Ave, Wisconsin. WaterStone Bank is the parent company to Waterstone Mortgage, which has the ability to lend in 48 states. For more information about WaterStone Bank, go to http://www.wsbonline.com.

    Forward-Looking Statements

    This press release contains statements or information that may constitute forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, without limitation, statements regarding expected financial and operating activities and results that are preceded by, followed by, or that include words such as “may,” “expects,” “anticipates,” “estimates” or “believes.” Any such statements are based upon current expectations that involve a number of risks and uncertainties and are subject to important factors that could cause actual results to differ materially from those anticipated by the forward-looking statements. Factors that might cause such a difference include changes in interest rates; demand for products and services; the degree of competition by traditional and nontraditional competitors; changes in banking regulation or actions by bank regulators; changes in tax laws; the impact of technological advances; governmental and regulatory policy changes; the outcomes of contingencies; trends in customer behavior as well as their ability to repay loans; changes in local real estate values; changes in the national and local economies; and other factors, including risk factors referenced in Item 1A. Risk Factors in Waterstone’s most recent Annual Report on Form 10-K and as may be described from time to time in Waterstone’s subsequent SEC filings, which factors are incorporated herein by reference. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect only Waterstone’s belief as of the date of this press release.

    Non-GAAP Financial Measures 

    Management uses non-GAAP financial information in its analysis of the Company’s performance. Management believes that this non-GAAP measure provides a greater understanding of ongoing operations and enhance comparability of results of operations with prior periods. The Company’s management believes that investors may use this non-GAAP measure to analyze the Company’s financial performance without the impact of unusual items or events that may obscure trends in the Company’s underlying performance. This non-GAAP data should be considered in addition to results prepared in accordance with GAAP, and is not a substitute for, or superior to, GAAP results. Limitations associated with non-GAAP financial measures include the risks that persons might disagree as to the appropriateness of items included in this measure and that different companies might calculate this measure differently. 

    Contact: Mark R. Gerke
    Chief Financial Officer
    414-459-4012
    markgerke@wsbonline.com

     WATERSTONE FINANCIAL, INC. AND SUBSIDIARIES

    CONSOLIDATED STATEMENTS OF INCOME

    (Unaudited)  

       For The Three Months Ended September 30,   For The Nine Months Ended September 30,
      2024     2023   2024     2023
      (In Thousands, except per share amounts)
    Interest income:                          
    Loans $ 26,590     $ 23,825   $ 76,675     $ 65,860
    Mortgage-related securities   1,137       1,060     3,360       2,972
    Debt securities, federal funds sold and short-term investments   1,464       1,492     4,081       3,682
    Total interest income   29,191       26,377     84,116       72,514
    Interest expense:                          
    Deposits   10,477       7,442     29,163       17,485
    Borrowings   7,197       6,946     21,620       16,570
    Total interest expense   17,674       14,388     50,783       34,055
    Net interest income   11,517       11,989     33,333       38,459
    Provision (credit) for credit losses   (377 )     445     (535 )     1,091
    Net interest income after provision (credit) for loan losses   11,894       11,544     33,868       37,368
    Noninterest income:                          
    Service charges on loans and deposits   545       450     1,434       1,491
    Increase in cash surrender value of life insurance   410       334     1,562       1,373
    Mortgage banking income   21,294       21,172     66,200       59,856
    Other   303       274     1,101       1,589
    Total noninterest income   22,552       22,230     70,297       64,309
    Noninterest expenses:                          
    Compensation, payroll taxes, and other employee benefits   21,017       21,588     62,655       64,035
    Occupancy, office furniture, and equipment   1,857       1,993     5,994       6,302
    Advertising   926       916     2,827       2,749
    Data processing   1,297       1,229     3,745       3,441
    Communications   232       243     698       719
    Professional fees   569       745     2,070       1,779
    Real estate owned   –       1     14       3
    Loan processing expense   697       722     2,604       2,672
    Other   1,965       2,584     5,762       8,350
    Total noninterest expenses   28,560       30,021     86,369       90,050
    Income before income taxes   5,886       3,753     17,796       11,627
    Income tax expense   1,158       500     4,318       2,212
    Net income $ 4,728     $ 3,253   $ 13,478     $ 9,415
    Income per share:                          
    Basic $ 0.26     $ 0.16   $ 0.72     $ 0.46
    Diluted $ 0.26     $ 0.16   $ 0.72     $ 0.46
    Weighted average shares outstanding:                          
    Basic   18,350       19,998     18,631       20,420
    Diluted   18,445       20,022     18,677       20,473
    WATERSTONE FINANCIAL, INC. AND SUBSIDIARIES

    CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

       September 30,     December 31,  
      2024     2023  
      (Unaudited)          
    Assets (In Thousands, except per share amounts)  
    Cash $ 35,770     $ 30,667  
    Federal funds sold   5,359       5,493  
    Interest-earning deposits in other financial institutions and other short-term investments   278       261  
    Cash and cash equivalents   41,407       36,421  
    Securities available for sale (at fair value)   213,164       204,907  
    Loans held for sale (at fair value)   155,846       164,993  
    Loans receivable   1,695,403       1,664,215  
    Less: Allowance for credit losses (“ACL”) – loans   18,198       18,549  
    Loans receivable, net   1,677,205       1,645,666  
                   
    Office properties and equipment, net   19,450       19,995  
    Federal Home Loan Bank stock (at cost)   21,681       20,880  
    Cash surrender value of life insurance   69,601       67,859  
    Real estate owned, net   145       254  
    Prepaid expenses and other assets   45,837       52,414  
    Total assets $ 2,244,336     $ 2,213,389  
                   
    Liabilities and Shareholders’ Equity              
    Liabilities:              
    Demand deposits $ 180,449     $ 187,107  
    Money market and savings deposits   279,188       273,233  
    Time deposits   804,204       730,284  
    Total deposits   1,263,841       1,190,624  
                   
    Borrowings   560,127       611,054  
    Advance payments by borrowers for taxes   27,847       6,607  
    Other liabilities   50,519       61,048  
    Total liabilities   1,902,334       1,869,333  
                   
    Shareholders’ equity:              
    Preferred stock   –       –  
    Common stock   194       203  
    Additional paid-in capital   92,789       103,908  
    Retained earnings   274,748       269,606  
    Unearned ESOP shares   (10,979 )     (11,869 )
    Accumulated other comprehensive loss, net of taxes   (14,750 )     (17,792 )
    Total shareholders’ equity   342,002       344,056  
    Total liabilities and shareholders’ equity $ 2,244,336     $ 2,213,389  
                   
    Share Information              
    Shares outstanding   19,457       20,315  
    Book value per share $ 17.58     $ 16.94  
     WATERSTONE FINANCIAL, INC. AND SUBSIDIARIES

    SUMMARY OF KEY QUARTERLY FINANCIAL DATA

    (Unaudited)

       At or For the Three Months Ended  
      September 30,     June 30,     March 31,     December 31,     September 30,  
      2024     2024     2024     2023     2023  
      (Dollars in Thousands, except per share amounts)  
    Condensed Results of Operations:                                      
    Net interest income $ 11,517     $ 10,679     $ 11,137     $ 11,756     $ 11,989  
    Provision (credit) for credit losses   (377 )     (225 )     67       (435 )     445  
    Total noninterest income   22,552       26,497       21,248       16,876       22,230  
    Total noninterest expense   28,560       30,259       27,550       29,662       30,021  
    Income (loss) before income taxes (benefit)   5,886       7,142       4,768       (595 )     3,753  
    Income tax expense (benefit)   1,158       1,430       1,730       (555 )     500  
    Net income (loss) $ 4,728     $ 5,712     $ 3,038     $ (40 )   $ 3,253  
    Income (loss) per share – basic $ 0.26     $ 0.31     $ 0.16     $ (0.00 )   $ 0.16  
    Income (loss) per share – diluted $ 0.26     $ 0.31     $ 0.16     $ (0.00 )   $ 0.16  
    Dividends declared per common share $ 0.15     $ 0.15     $ 0.15     $ 0.15     $ 0.15  
                                           
    Performance Ratios (annualized):                                      
    Return on average assets – QTD   0.83 %     1.02 %     0.56 %     -0.01 %     0.58 %
    Return on average equity – QTD   5.55 %     6.84 %     3.56 %     -0.05 %     3.63 %
    Net interest margin – QTD   2.13 %     2.01 %     2.15 %     2.25 %     2.26 %
                                           
    Return on average assets – YTD   0.81 %     0.79 %     0.56 %     0.44 %     0.59 %
    Return on average equity – YTD   5.30 %     5.17 %     3.56 %     2.62 %     3.46 %
    Net interest margin – YTD   2.09 %     2.08 %     2.15 %     2.46 %     2.53 %
                                           
    Asset Quality Ratios:                                      
    Past due loans to total loans   0.63 %     0.76 %     0.64 %     0.68 %     0.53 %
    Nonaccrual loans to total loans   0.32 %     0.33 %     0.29 %     0.29 %     0.25 %
    Nonperforming assets to total assets   0.25 %     0.25 %     0.23 %     0.23 %     0.20 %
    Allowance for credit losses – loans to loans receivable   1.07 %     1.10 %     1.11 %     1.11 %     1.12 %
     WATERSTONE FINANCIAL, INC. AND SUBSIDIARIES

    SUMMARY OF QUARTERLY AVERAGE BALANCES AND YIELD/COSTS

    (Unaudited)

       At or For the Three Months Ended  
      September 30,     June 30,     March 31,     December 31,     September 30,  
      2024     2024     2024     2023     2023  
    Average balances (Dollars in Thousands)  
    Interest-earning assets                                      
    Loans receivable and held for sale $ 1,870,627     $ 1,859,608     $ 1,805,102     $ 1,797,988     $ 1,797,233  
    Mortgage related securities   170,221       171,895       172,077       172,863       174,202  
    Debt securities, federal funds sold and short-term investments   115,270       107,992       110,431       106,504       132,935  
    Total interest-earning assets   2,156,118       2,139,495       2,087,610       2,077,355       2,104,370  
    Noninterest-earning assets   104,600       104,019       103,815       105,073       105,714  
    Total assets $ 2,260,718     $ 2,243,514     $ 2,191,425     $ 2,182,428     $ 2,210,084  
                                           
    Interest-bearing liabilities                                      
    Demand accounts $ 89,334     $ 91,300     $ 87,393     $ 91,868     $ 90,623  
    Money market, savings, and escrow accounts   304,116       293,483       281,171       302,121       306,806  
    Certificates of deposit   786,228       758,252       739,543       735,418       719,708  
    Total interest-bearing deposits   1,179,678       1,143,035       1,108,107       1,129,407       1,117,137  
    Borrowings   600,570       622,771       602,724       549,210       584,764  
    Total interest-bearing liabilities   1,780,248       1,765,806       1,710,831       1,678,617       1,701,901  
    Noninterest-bearing demand deposits   91,532       93,637       92,129       102,261       106,042  
    Noninterest-bearing liabilities   49,787       48,315       45,484       56,859       46,805  
    Total liabilities   1,921,567       1,907,758       1,848,444       1,837,737       1,854,748  
    Equity   339,151       335,756       342,981       344,691       355,336  
    Total liabilities and equity $ 2,260,718     $ 2,243,514     $ 2,191,425     $ 2,182,428     $ 2,210,084  
                                           
    Average Yield/Costs (annualized)                                      
    Loans receivable and held for sale   5.65 %     5.54 %     5.46 %     5.36 %     5.26 %
    Mortgage related securities   2.66 %     2.63 %     2.57 %     2.48 %     2.41 %
    Debt securities, federal funds sold and short-term investments   5.05 %     4.82 %     4.82 %     4.94 %     4.45 %
    Total interest-earning assets   5.39 %     5.27 %     5.18 %     5.10 %     4.97 %
                                           
    Demand accounts   0.11 %     0.11 %     0.11 %     0.11 %     0.11 %
    Money market and savings accounts   1.94 %     1.89 %     1.79 %     1.64 %     1.54 %
    Certificates of deposit   4.54 %     4.41 %     4.19 %     3.76 %     3.43 %
    Total interest-bearing deposits   3.53 %     3.42 %     3.26 %     2.90 %     2.64 %
    Borrowings   4.77 %     4.92 %     4.54 %     4.83 %     4.71 %
    Total interest-bearing liabilities   3.95 %     3.95 %     3.71 %     3.53 %     3.35 %
    COMMUNITY BANKING SEGMENT

    SUMMARY OF KEY QUARTERLY FINANCIAL DATA

    (Unaudited)

       At or For the Three Months Ended  
      September 30,     June 30,     March 31,     December 31,     September 30,  
      2024     2024     2024     2023     2023  
      (Dollars in Thousands)  
    Condensed Results of Operations:                                      
    Net interest income $ 12,250     $ 11,234     $ 11,598     $ 12,056     $ 12,431  
    Provision (credit) for credit losses   (302 )     (279 )     105       (550 )     445  
    Total noninterest income   1,227       1,491       990       894       966  
    Noninterest expenses:                                      
    Compensation, payroll taxes, and other employee benefits   5,326       5,116       5,360       5,397       4,618  
    Occupancy, office furniture and equipment   904       983       1,000       916       852  
    Advertising   311       229       174       363       200  
    Data processing   720       687       693       626       672  
    Communications   80       72       65       75       70  
    Professional fees   190       177       208       186       176  
    Real estate owned   –       1       13       1       1  
    Loan processing expense   –       –       –       –       –  
    Other   602       672       691       628       703  
    Total noninterest expense   8,133       7,937       8,204       8,192       7,292  
    Income before income taxes   5,646       5,067       4,279       5,308       5,660  
    Income tax expense   941       718       1,639       1,234       1,121  
    Net income $ 4,705     $ 4,349     $ 2,640     $ 4,074     $ 4,539  
                                           
    Efficiency ratio – QTD (non-GAAP)   60.35 %     62.37 %     65.17 %     63.26 %     54.43 %
    Efficiency ratio – YTD (non-GAAP)   62.58 %     63.77 %     65.17 %     56.86 %     54.94 %
     MORTGAGE BANKING SEGMENT

    SUMMARY OF KEY QUARTERLY FINANCIAL DATA

    (Unaudited)

      At or For the Three Months Ended  
      September 30,     June 30,     March 31,     December 31,     September 30,  
      2024     2024     2024     2023     2023  
      (Dollars in Thousands)  
    Condensed Results of Operations:                                      
    Net interest loss $ (760 )   $ (552 )   $ (541 )   $ (367 )   $ (550 )
    Provision (credit) for credit losses   (75 )     54       (38 )     115       –  
    Total noninterest income   21,386       25,081       20,328       16,028       21,452  
    Noninterest expenses:                                      
    Compensation, payroll taxes, and other employee benefits   15,930       16,886       14,756       14,881       17,186  
    Occupancy, office furniture and equipment   953       1,046       1,108       1,105       1,141  
    Advertising   615       758       740       667       716  
    Data processing   570       549       508       583       551  
    Communications   152       168       161       194       173  
    Professional fees   379       569       520       704       564  
    Real estate owned   –       –       –       –       –  
    Loan processing expense   697       861       1,046       756       722  
    Other   1,261       1,641       617       2,701       1,935  
    Total noninterest expense   20,557       22,478       19,456       21,591       22,988  
    Income (loss) before income taxes (benefit)   144       1,997       369       (6,045 )     (2,086 )
    Income tax expense (benefit)   194       684       71       (1,827 )     (657 )
    Net (loss) income $ (50 )   $ 1,313     $ 298     $ (4,218 )   $ (1,429 )
                                           
    Efficiency ratio – QTD (non-GAAP)   99.67 %     91.64 %     98.33 %     137.86 %     109.98 %
    Efficiency ratio – YTD (non-GAAP)   96.23 %     94.62 %     98.33 %     116.99 %     111.63 %
                                           
    Loan originations $ 558,729     $ 634,109     $ 485,109     $ 458,363     $ 597,562  
    Purchase   88.9 %     92.7 %     93.0 %     95.7 %     95.4 %
    Refinance   11.1 %     7.3 %     7.0 %     4.3 %     4.6 %
    Gross margin on loans sold(1)   3.83 %     3.93 %     4.10 %     3.51 %     3.62 %

    (1) Gross margin on loans sold equals mortgage banking income (excluding the change in interest rate lock value) divided by total loan originations.

    The MIL Network –

    January 24, 2025
  • MIL-OSI Europe: Debates – Monday, 21 October 2024 – Strasbourg – Provisional edition

    Source: European Parliament

    Verbatim report of proceedings
     413k  815k
    Monday, 21 October 2024 – Strasbourg Provisional edition

       

    IN THE CHAIR: ROBERTA METSOLA
    President

     
    1. Resumption of the session

     

      President. – I declare resumed the session of the European Parliament adjourned on Thursday, 10 October 2024.

     

    2. Opening of the sitting

       

    (The sitting opened at 17:03)

     

    3. Statements by the President

     

      President. – Dear colleagues, on the results of the presidential election and referendum in Moldova, the people in Moldova have chosen their future: they chose hope, stability, opportunity. They chose Europe.

    (Applause)

    The European Parliament strongly condemns any activities and interferences in Moldova’s presidential election and constitutional referendum on EU integration.

    We are proud to be one of Moldova’s strongest allies and supporters. We understand that Moldova’s future lies within the European Union and we fully support its EU accession path.

    President Maia Sandu and her government have already made remarkable progress in implementing reforms. And while the road ahead may not always be easy, I want to assure our European Moldovan friends that the European Parliament will continue to be with them every step of the way.

    Also, dear colleagues, on 16 October we marked 7 years since the brutal assassination of Daphne Caruana Galizia, a Maltese investigative journalist who exposed corruption and organised crime. Those who thought they could silence her were wrong. In fact, her work sparked a movement that echoes in every corner where we pursue a Europe that protects journalists, that respects the rule of law.

    I am grateful to have known Daphne beyond her writing: as a woman battling the odds; as a mother who was so proud of the men her boys grew into; as a daughter, wife and sister who wanted more from her country. And she raised the bar for all of us in politics. But most of all, today I think about how we must keep Daphne’s memory alive; how the European Parliament will keep pushing for the truth, for justice and for accountability.

    It is for this reason that the European Parliament is proud to be hosting the fourth edition of the Daphne Caruana Galizia Prize for outstanding journalism. And I take this moment to encourage you to attend the award ceremony this Wednesday in the Daphne Caruana Galizia Press Room, to honour the bravery of all those who continue to carry her legacy forward.

    This House remembers her and we honour her legacy.

    (Applause)

     

    4. Approval of the minutes of the previous sitting

     

      President. – The minutes and the texts adopted of the sitting of 10 October 2024 are available. Are there any comments? No? The minutes are therefore approved.

     

    5. Composition of Parliament

     

      President. – The competent authorities of Poland have notified me of the election of Hanna Gronkiewicz-Waltz to the European Parliament, replacing Marcin Kierwiński with effect from 10 October 2024.

    I wish to welcome our new colleague and recall that she takes her seat in Parliament and its bodies in full enjoyment of her rights, pending the verification of her credentials.

     

    6. Composition of committees and delegations

     

      President. – The PfE Group has notified me of decisions relating to changes to appointments within the committees and delegations. These decisions will be set out in the minutes of today’s sitting and take effect on the date of this announcement.

     

    7. Negotiations ahead of Council’s first reading (Rule 73)

     

      President. – The TRAN Committee has decided to enter into interinstitutional negotiations ahead of Council’s first reading, pursuant to Rule 73 of the Rules of Procedure.

    The positions adopted by Parliament at first reading, which constitute the mandates for those negotiations, are available on the plenary webpage, and their titles will be published in the minutes of this sitting.

     

    8. Corrigenda (Rule 251)

     

      President. – The competent committees have transmitted nine corrigenda to texts adopted by Parliament.

    Pursuant to Rule 251, these corrigenda will be deemed approved unless, no later than 24 hours after their announcement, a request is made by a political group or Members reaching at least the low threshold that they be put to the vote.

    The corrigenda are available on the plenary webpage. Their titles will be published in the minutes of this sitting.

     

    9. Signing of acts adopted in accordance with the ordinary legislative procedure (Rule 81)




     

      Marc Botenga (The Left). – Madame la Présidente, vous savez que, sur la base de l’article 188, les députés européens gagnent facilement 14 000 euros par mois. Pourtant, chaque année, notre groupe demande de baisser ces salaires pour que les députés soient un tout petit peu plus en phase avec la réalité des travailleurs, qui, eux, peinent à boucler les fins de mois. Chaque année, ce vote permet de démasquer les députés qui, d’une part, prêchent l’austérité et la misère pour les travailleurs, mais, d’autre part, s’octroient, eux, un salaire généreux de 14 000 euros par mois.

    Mais aujourd’hui, en coulisses, vous nous dites que ce n’est plus acceptable et vous voulez empêcher ce vote – je sais bien, chers collègues, que vous ne voulez pas que l’on touche à vos privilèges. Vous nous dites que ces revenus sont garantis par d’autres textes. Mais justement, en refusant aujourd’hui de voter le budget nécessaire, nous pouvons ouvrir cette porte pour faire le premier pas et revoir tout cela.

    L’année dernière, vous aviez permis ces amendements. Qu’est-ce qui a changé, qui ne serait plus vrai aujourd’hui? Serait-ce parce que la campagne électorale est terminée? Madame la Présidente, je vous prie, revoyez cette décision. La politique sert à servir et non à se servir.

     
       

     

      President. – Thank you very much, Mr Botenga. I will give you the explanation.

    You file a point of order under Rule 188, which is actually a point of order, but I will answer you. The amendments tabled by your group on the lines and figures of the general budget 2025 concerning salaries and allowances, etc., have been examined and declared inadmissible, simply because we want to apply the rules.

    And I will tell you why: it is because they are in contradiction with the existing regulations, in other words, the Statute for Members of the European Parliament and the Council Regulation determining the emoluments of EU high-level public office holders, based on Articles 243 TFEU and 223 TFEU. So the right procedure would be to call on the responsible institutions to amend the mentioned regulations.

    However, you will have seen as well, in this spirit, that the corresponding amendment that you tabled to the resolution on the general budget calling for this change has been declared admissible, because that can be declared admissible.

     
       

     

      João Oliveira (The Left). – Senhora Presidente, quero expressar o meu total desacordo com a sua decisão discricionária e sem fundamento de recusar, sem justificação, a proposta de debate sobre o agravamento da situação humanitária em Gaza, na sequência das declarações do coordenador especial da ONU para o processo de paz no Médio Oriente. Na quinta-feira, a ONU declarou que mais de um milhão e oitocentos mil palestinianos enfrentam fome extrema. Ontem mesmo, aquele coordenador especial da ONU emitiu um comunicado falando de pesadelo, cenas horripilantes na zona norte, ataques israelitas implacáveis e uma crise humanitária cada vez pior e, cito, que «nenhum lugar é seguro em Gaza», condenando os contínuos ataques contra civis. Aquele responsável disse: «A guerra tem de parar agora».

    Apesar de tudo isto ter acontecido em condições que permitiam que o debate aqui fosse feito, a senhora presidente recusou aceitar sequer a proposta. Desafio-a a colocar à votação este pedido de debate. Enquanto continuarem a chover bombas em Gaza, a morrer crianças, mulheres e civis, este debate será sempre urgente e imprescindível.

     
       


     

      Virginie Joron (PfE). – Madame la Présidente, chers collègues, chers démocrates, chers légalistes, je souhaite faire un rappel au règlement. Son article 219 prévoit le respect de l’égalité des genres dans la composition des bureaux des commissions. Cette égalité n’est pourtant pas respectée, pas plus que le résultat des urnes, c’est-à-dire de la démocratie.

    En effet, Madame la Présidente, vous avez accepté de ne pas respecter la démocratie en accordant une dérogation au principe de l’égalité des genres pour M. Weber dans plusieurs bureaux de commissions, ignorant par là même plus de 20 millions de nos électeurs.

    Comment pouvez-vous accepter que la commission CONT, qui contrôle le budget de l’Union européenne – et qui doit donner l’exemple –, continue de ne pas respecter nos règles? Vous souhaitez exporter l’égalité des genres jusqu’au Kazakhstan ou encore lui consacrer une semaine en décembre, mais ce principe n’est déjà pas respecté au sein de la commission CONT, au cœur même de notre institution. En ne disposant pas d’une quatrième vice-présidence, la composition du bureau de la commission CONT viole notre règlement.

    Madame la Présidente, je vous remercie de faire le nécessaire pour mettre un terme à cette hypocrisie et respecter notre devise, «Unie dans la diversité».

     
       


     

      Manon Aubry (The Left). – Madame la Présidente, chers collègues, ça tombe bien, j’avais envie de vous parler de démocratie et de faire un rappel au règlement sur la base de l’article 154, qui traite des accords interinstitutionnels, pour évoquer l’état des négociations entre l’Union européenne et le Mercosur. Je vais commencer, chers collègues, par une question assez simple: qui trouve normal que le plus important accord de libre-échange jamais conclu par l’Union européenne soit en train d’être signé en catimini, sans que notre Parlement ait la moindre information, quelle qu’elle soit? Allez-y, dites-moi qui est d’accord avec cela et levez la main.

    Vous le voyez bien – et j’ai fait le compte –, cela fait exactement cinq ans que la Commission européenne n’a pas donné ni publié le moindre compte-rendu officiel sur l’état des négociations. Bien entendu, cet accord de libre-échange aura un impact désastreux sur nos agriculteurs, qui souffrent déjà, sur la santé et sur la planète.

    Mes chers collègues, c’est aussi un scandale démocratique. Comment accepter d’être ainsi tenus à l’écart? C’est pourquoi, Madame la Présidente, je vous prierais de demander des comptes à la Commission européenne afin qu’elle nous tienne enfin informés, parce qu’on ne peut pas se laisser ainsi «bananer». Il est temps!

     
       


     

      President. – As you can see, your colleagues agree with you. This is something that has been an outstanding issue and we can put pressure on the incoming Commission to respect the deadlines that we have set.

     

    10. Order of business


     

      Terry Reintke, on behalf of the Verts/ALE Group. – Madam President, dear colleagues, last Friday, an Italian court invalidated the detention of 16 asylum applicants sent to Albania by the Italian Government. Italy is a democracy, with an independent judiciary and courts that can freely rule on existing cases, also to stop illegal actions by the government. Still, members of the ruling far-right coalition, including members of the government, attacked this independent judiciary and the judges that ruled in this case.

    Colleagues, we cannot stay silent on this: rule of law, including separation of powers, is a key fundament of the European Union. We have waited for far too long regarding Hungary to speak up. We cannot make the same mistake again. That is why my group requests a debate with the following title: ‘Commission statement regarding the ruling of the Italian court related to the agreement between Italy and Albania on migration’.

     
       



     

      Tomas Tobé (PPE). – Madam President, I think it is clear and already stated that this request should not be supported. It’s very clear. It’s not about a protocol about Italy and Albania, as you say in what you’re asking for. Also, it’s not even a final decision in the court, and it’s also a decision based on an EU directive that actually will be replaced once the new migration pact is fully adopted.

    I think it’s also about the general question, because we had a request in plenary before, from the Patriots, about another decision. We could, of course, make this Chamber nothing else than debating different court decisions. I think when it comes to migration policy, we should be serious, we should be balanced, and we should use our time to actually debate real things and not only try to make court decisions that you may like or not like to be in favour of them.

    So that is why the EPP will reject this request.

     
       


     

      Fabienne Keller, au nom du groupe Renew. – Madame la Présidente, nous savons que le nouveau pacte sur la migration et l’asile et la politique migratoire ont occupé l’essentiel du Conseil européen de la fin de la semaine dernière. C’est un sujet de préoccupation pour nos concitoyens.

    Nous sommes fiers, tous ici dans cette Chambre, d’avoir adopté un pacte, d’avoir trouvé un équilibre pour traiter la question de la migration illégale, tout en respectant nos valeurs. Nous savons aussi, chers collègues, qu’il nous faudra encore deux années pour le mettre en œuvre. Nous ne pouvons dès lors pas accepter qu’un État membre utilise une voie détournée pour contourner ce que prévoit le pacte et les règles précises que nous avons définies ensemble.

    C’est pourquoi nous proposons de rebondir sur la proposition des Verts et d’ajouter la dimension «mise en œuvre du pacte» dans son ensemble, c’est-à-dire vis-à-vis de ses devoirs, de l’application de ses règles, mais aussi des garanties des droits de l’homme et du respect des droits fondamentaux que nous y avons intégrés. C’est dans cet esprit que nous proposons ce débat amendé.

     
       

     

      President. – Ms Reintke, do you agree with the alternative proposal? So the Green Group does not. Therefore, I will put the original request by the Green Group to a vote by roll call.

    (Parliament rejected the request)

    I now ask Ms Keller: do you want to keep your request? Yes, Ms Keller wants to keep the request, so the proposal from the Renew Group is now put to a vote by roll call.

    (Parliament rejected the request)

    So the agenda remains unchanged.

    The agenda is now adopted and the order of business is thus established.

     

    11. International Day for the Eradication of Poverty (debate)

     

      President. – The first item is the debate on Parliament’s statement on the International Day for the Eradication of Poverty (2024/2881(RSP)).

    Dear colleagues, last week, on 17 October, we marked the International Day of the Eradication of Poverty. Poverty is not inevitable. It is a challenge that we can – and we must – overcome. Across the world, far too many people still struggle. Far too many people do not have access to clean water, to clothing, shelter, health care or education. And far too many people are excluded from society, denied the possibility of a dignified job, not given the opportunities to achieve their potential. Given that 1 in 5 Europeans and 1 in 4 children under the age of 18 in the European Union is at risk of poverty or social exclusion, the reality is as serious as it is alarming.

    Here in the European Parliament, we refuse to be bystanders. We are proud of all the work we have done already in making our Europe a front-liner in the fight against poverty, and yet more work remains. Poverty is a symptom of inequality, and we understand the responsibility that we bear to ensure that every person – no matter who they are or where they come from – has a chance to live with dignity, with purpose.

    This is why the European Parliament is looking forward to seeing the European Union’s first anti-poverty strategy that was announced in the 2024-2029 Political Guidelines of the European Commission. This is a positive step forward. By investing in education, affordable housing and job creation, by ensuring our social safety net works, we can lift millions out of poverty.

    This House will continue turning our policies into concrete action, and we will continue to fight for fairness, for dignity and for opportunity for all.

     
       


     

      Gabriele Bischoff, im Namen der S&D-Fraktion. – Frau Präsidentin, werte Kolleginnen und Kollegen! In der Tat: Wir sprechen inzwischen von 100 Millionen Menschen, die in Europa, einem der reichsten Kontinente, von Armut und sozialer Ausgrenzung bedroht sind; Frau Präsidentin hat es gesagt: mehr als jeder fünfte Mensch hier in Europa. Und dieser Internationale Tag zur Abschaffung der Armut, der muss wirklich ein Weckruf hier sein, weil wir mehr brauchen.

    Ja, wir brauchen eine Armutsstrategie, aber wir brauchen auch konkrete Politiken, und eine davon ist in der Tat, dass wir ein festes Budget von 20 Milliarden in einem eigenen ESF+ für die Kindergarantie brauchen, um die 19 Millionen Kinder – 19 Millionen, denen die Zukunft gestohlen wurde – besser vor Armut zu schützen, und wir brauchen Maßnahmen.

    Aber wir dürfen nicht nur national bleiben, sondern nach den Verträgen ist Armutsbekämpfung auch das Hauptziel der europäischen Entwicklungspolitik. Das muss so bleiben und muss unser Kompass sein zur Bekämpfung der Armut auf der ganzen Welt.

     
       

     

      Malika Sorel, au nom du groupe PfE. – Madame la Présidente, chers collègues, 34 % des Européens renoncent à des soins médicaux, et nombre de jeunes, de nos jeunes, sont en grande souffrance. C’est la tiers-mondisation de nos nations. L’Europe d’Hippocrate, de Pasteur et de Marie Curie n’est même plus capable de soigner les siens, tandis qu’elle érige en dogme la préférence extra-européenne.

    Alors que la pauvreté touche chacune de nos nations, la Commission va verser 1,8 milliard d’euros à la Moldavie. De plus, l’immigration issue des couches sociales les plus pauvres bat des records. Pour Enrico Letta, aucune réforme, aucun progrès ne sera possible sans la participation des citoyens. Cette participation, je vous le dis, est impossible, car ces conditions ne sont pas réunies.

    Relisons Jean-Jacques Rousseau: «Voulons-nous que les peuples soient vertueux? Commençons donc par leur faire aimer la patrie: mais comment l’aimeront-ils si la patrie ne leur accorde que ce qu’elle ne peut refuser à personne?». Nous sommes là au cœur du mal qui détruit l’Europe. Chers collègues, j’aimerais comprendre: est-ce l’indifférence – ou pire: le cynisme – qui conduit à nous lamenter sur une pauvreté que nous organisons?

     
       

     

      Chiara Gemma, a nome del gruppo ECR. – Signora Presidente, onorevoli colleghi, la povertà non è soltanto una questione economica: è una piaga sociale che mina la dignità e la speranza delle persone. Combatterla è un dovere morale e una responsabilità politica che deve impegnarci tutti, senza eccezioni.

    C’è un aspetto che merita una particolare attenzione e che troppo spesso viene trascurato: la condizione delle persone con disabilità, che sono tra le più esposte al rischio di povertà. I dati parlano chiaro: il 28,8% delle persone con disabilità in Europa vive in condizioni di povertà e di esclusione sociale.

    Questo dato è inaccettabile, soprattutto se pensiamo che stiamo parlando di una categoria già vulnerabile, che deve affrontare non solo le difficoltà economiche, ma anche le barriere strutturali, culturali e sociali che la società impone.

    Non possiamo tollerare che in un’Europa che si proclama “paladina dei diritti umani e dell’inclusione”, quasi un terzo delle persone con disabilità viva in condizioni di disagio economico. La nostra forza si misura dalla capacità di includere chi è già più debole.

     
       

     

      Charles Goerens, au nom du groupe Renew. – Madame la Présidente, Monsieur le Commissaire, la lutte contre la pauvreté doit se manifester tant à l’intérieur qu’à l’extérieur de l’Union européenne. Cela étant, la pratique semble confirmer ce propos.

    L’Union européenne n’a certes pas réussi à éliminer la pauvreté, comme chacun de nous le souhaiterait. À sa décharge, rappelons que ses compétences sont insuffisantes pour régler ce problème. Les États membres, par contre, disposent de moyens ô combien supérieurs à ceux dont dispose la Commission. À ce propos, l’on constate que les États membres qui ont de meilleurs résultats en matière de lutte contre la misère chez eux sont souvent les mêmes que ceux qui s’impliquent le plus dans la coopération au développement en faveur des pays du Sud.

    Cette corrélation n’est pas anodine. Elle nous fait penser que la solidarité est indivisible. C’est donc une question de cohérence, une question d’équité, qui s’applique dans le même esprit tant à l’intérieur qu’à l’extérieur de l’Union européenne. Pour appuyer mon propos, il suffit de lire les rapports annuels du Programme des Nations unies pour le développement et d’en comparer les résultats à ceux obtenus en matière de lutte contre la misère au sein des États membres.

     
       


     

      Leila Chaibi, au nom du groupe The Left. – Madame la Présidente, Monsieur le Commissaire, chers collègues, en France, 1 jeune sur 4 vit sous le seuil de pauvreté, et 1 étudiant sur 2 est obligé de sauter un repas par jour. Vous vous souvenez de ces files d’attente interminables devant l’aide alimentaire pendant la pandémie de COVID-19? Ces images, elles avaient fait le tour du monde. C’était il y a quatre ans. Et que s’est il passé depuis? Rien.

    Pourquoi l’Union européenne ne demande-t-elle pas aux gouvernements de proposer le repas à 1 euro pour les étudiants? Pourquoi continuons-nous à agir comme si la pauvreté était un phénomène météorologique, une espèce de catastrophe naturelle? Non, la pauvreté ne tombe pas du ciel. Sans inégalités, il n’y a pas de pauvreté. Bernard Arnault, l’homme le plus riche du monde, a vu sa fortune dépasser les 200 milliards d’euros, soit plus que le PIB de la Slovaquie. Imaginez ce qu’on pourrait faire avec cette somme. On pourrait faire 200 000 hôpitaux, 40 000 écoles.

    Vous voulez agir contre la pauvreté? Taxez les plus riches, taxez les multinationales, allez chercher l’argent là où il est.

     
       

     

      Petar Volgin, от името на групата ESN. – Скъпи колеги, дълго време силните на деня обясняваха, че когато глобализацията окончателно победи, когато бъдат премахнати всички държавни граници и всички държавни пречки пред бизнеса, ние ще станем богати и щастливи. Разказваха ни, че когато милионерът стане милиардер, това ще направи и нас, обикновените хора богати. Защото нали според постулатите на така наречената „трикъл даун” икономика („trickle down economy“) или икономика на просмукването, приливът повдигал всички лодки. Само че действителността се оказа много по-различна.

    Да, богатите ставаха още по-богати, милионерите ставаха милиардери, но лодките на обикновенните хора не се повдигаха, даже много от тях потънаха. Колкото повече държавата минаваше на заден план, толкова повече се увеличаваха неравенствата и бедността. Има само един начин, по който може да бъде преодоляно това. Държавата отново трябва да стане активна. Тя трябва да създаде такива правила, които да помагат на работещите хора да живеят по-добре. Наднационалните институции няма да направят това. Те се грижат за интересите на мега корпорациите. Нужна ни е повече държава и по-малко транснационални институции.

     
       


     

     

      Georgiana Teodorescu (ECR), în scris. – Prin acțiunile sale, Uniunea Europeană s-a declarat responsabilă pentru înverzirea Globului, pentru eliminarea surplusului de carbon, pentru tot ce e „eco” și „bio” la nivel mondial, pentru salvarea migranților, precum și pentru încetarea unor războaie din afara granițelor UE.

    Totuși, când vine vorba de sărăcia în care trăiesc unii dintre europeni, mai ales despre construirea unor programe concrete și asigurarea unui buget corespunzător pentru acest lucru, rămânem la stadiul de discuții frumoase. Iată că marcăm o zi oficială pentru eradicarea sărăciei, în loc să o eradicăm efectiv. În România, unul din cinci cetățeni trăiește sub pragul sărăciei, cifrele fiind mult mai ridicate în rândul tinerilor. Pe acești oameni, ziua internațională a eradicării sărăciei nu îi ajută. Este nevoie de bani și de măsuri concrete.

    Sigur, e onorabil să avem o astfel de zi, nu ne opunem, dar haideți să ne concentrăm mai mult pe fapte și mai puțin pe discursuri pompoase, care au zero efect în asigurarea hranei copiilor săraci ai Europei sau în oferirea unor programe care să-i încurajeze să-și continue studiile.

     

    12. Address by Enrico Letta – Presentation of the report ‘Much More Than a Market’

     

      President. – The next item is the debate on the address by Enrico Letta – presentation of the report ‘Much more than a market’.

    We have today with us former Prime Minister of Italy Enrico Letta to present his report ‘Much more than a market’. Caro Enrico, welcome back to the European Parliament. Your report came at an extremely timely moment.

    As we embark on a new legislative term, this House recognises that the future of Europe will be defined by our ability to make ourselves more competitive; how we are able to grow our economies and pay back our debts, to fuel our innovation and turn seemingly impossible challenges into opportunities, to create jobs and futures with dignity. That is what our people are asking from us. It is why Europeans went to the polls last June, and what our voters are expecting us to deliver on.

    To do all this, we do not need to reinvent the wheel. We already have many tools in place. For over 30 years, the single market has been our Union’s unique growth model, a powerful engine of convergence and our most valuable asset. But we are again at a moment where the single market is in need of a boost.

    The time is now for us to renew our engagement to it, to deepen it, especially when it comes to energy, to finance, telecoms, banking, capital markets and services – to bring it back on par with the needs of the current context.

    Boosting it also means doing more to level the playing field, to reduce excessive bureaucracy and to cut red tape. This is how our single market works best. So, Mr Letta, dear Enrico, the European Parliament is eager to hear your findings and recommendations on how we can bolster our single market and make Europe more competitive.

     
       

     

      Enrico Letta, author of the report ‘Much more than a market’. – Madam President, esteemed Members, I would like to express my deepest gratitude to President Roberta Metsola, the Members of the European Parliament and the groups. It is a particularly emotional moment for me to do so in this Chamber once chaired by David Sassoli. The last time I spoke from this very place was to commemorate him some days after his death. His legacy and his commitment to European values continues to guide and inspire all of us.

    I must also express my deep gratitude to those who commissioned this report and entrusted me with the responsibility to undertake it: the Belgian and Spanish presidencies of the Council of the European Union, along with the President of the Commission and the President of the European Council. It is a great honour for me to be here today, especially after a year of engaging with the European Parliament: more than 20 meetings, groups, committees – the IMCO Committee in particular, subcommittees fostering meaningful dialogue and collaboration.

    This is a decisive moment for the life of the report. The pragmatic proposals it contains can only make a real impact if this very Chamber embraces and advances them.

    This report is not mine. I bear full responsibility for it, of course, but above all, it is the result of a collective exercise developed during a journey that spanned almost the entire European Union, reaching out also to candidate countries for accession and non-EU countries that share with us the single market. Throughout this journey across Europe, I visited 65 cities and took part in over 4 400 meetings, I engaged open social dialogue with all stakeholders. This was not an ideological pursuit, but a pragmatic endeavour. I traveled across Europe and engaged with all stakeholders to find common ground for tangible solutions. And there is one thing I want to stress out here: all the proposals contained in the report do not require Treaty changes. They are very concrete and can be implemented immediately.

    Madame la Présidente, par cette méthode j’ai cherché à honorer l’esprit même du projet d’intégration européenne. Un projet qui s’épanouit dans le dialogue entre les grands et les petits pays, entre les grandes villes et les petites communes, entre des modèles divers de relations industrielles, ainsi qu’entre différentes cultures et histoires. C’était la vision de Jacques Delors, à la mémoire duquel ce rapport est dédié.

    Jacques Delors visait à poser une base solide sur laquelle les grands idéaux européens pourraient prospérer. Il reconnaissait que la passion seule ne pouvait bâtir l’Europe. Il fallait des projets pragmatiques, qui améliorent concrètement la vie des citoyens. Jacques Delors croyait fermement que le succès de l’intégration européenne ne se mesurait pas à l’aune des bénéfices pour les États, mais à l’amélioration de la vie des citoyens. C’est cette approche que j’ai poursuivie et qui m’a inspiré en rédigeant ce rapport.

    The single market has been our greatest achievement. It has fuelled prosperity and it embodies our values. But it was born in a very different era, an era in which both the European Union and the world were smaller, simpler and far less interconnected. More than 20 years ago, we succeeded in integrating our currencies. We created the euro. We integrated this critical dimension which carries important emotional and practical significance for our citizens.

    However, we have not achieved the same level of integration in other key strategic sectors that, paradoxically, would have been far less difficult to integrate: sectors that are now vital for the future of the European economy, in particular. At the inception, three sectors were deliberately kept outside the single market, considered too strategic to extend beyond national borders: finance, electronic communications and energy. In reality, when it comes to these issues, Europe is merely a geographical expression. We are 27, not 1, on telecommunication. We have 27 financial markets, not 1 financial market. The exclusion of these sectors from the completion of the single market was motivated by the belief at that time that domestic control would better serve strategic interests.

    In an increasingly interconnected world and a vastly larger global market, the national dimension is no longer sufficient. It is becoming a ceiling in these sectors. We need to address this paradox, which is one of the main drivers of the current gap with other global powers, and we must act now. Inertia or inaction on this front risks reducing our choices to a single question: whether we want to become a colony of the United States or of China in ten years’ time. Telecommunications, energy and financial markets must be integrated, as we did for the euro. The integration of these sectors is a precondition for our competitiveness and security. There can be no security without independence in connectivity, energy and finance.

    In the report, I propose a roadmap for telecommunications to move from 27 separate markets to 1, from the approximately 80 operators of today to 10, 20 operators. I am not suggesting that we mimic the American or Chinese models here in Europe. These models do not adequately protect consumers as we aim to do in the European Union, but with a single telecoms market, 10, 20 operators can compete while ensuring consumer protection. At the same time, they will be larger and stronger on the global stage. That is what is not happening today with the fragmentation in 27 different markets.

    For energy, the key mission is to invest in interconnections. We must reduce the energy prices in Europe, and the only way is to maximise the diversification of energy sources through a highly interconnected European system. We win through cooperation, not through fragmentation. However, the most important sector to integrate is the financial one, which is in reality today the sum of 27 separate financial markets. This fragmentation is a major factor in Europe’s loss of competitiveness, creating the paradox of having a single currency, the euro, without a fully integrated financial market. We are falling behind the US, which has surged ahead in this sector over the last 15 years, and we are paying a steep price for it. Without a unified financial system, we will be unable to create a new paradigm for economic development, unable to innovate and unable to ensure our security.

    Having unified and significantly larger financial markets would allow Europe to invest in innovation and support its real economy. It would also enable Europe to effectively finance the Green Deal.

    During my journey, one topic has emerged as a priority everywhere: how to support and finance the just, green and digital transition. Let’s be very clear: the Green Deal remains the top priority for the coming years. It is no longer a question of whether Europe will pursue it, but rather how it will be achieved. The legislative term began with a debate on how to approach the Green Deal. In the report, I propose solutions for implementing it that reduce the potential social and economic consequences for Europe. We cannot allow the Green Deal to become a luxury that only the wealthy can afford in our societies. The social and economic dimensions of the Green Deal are essential.

    If we are committed to this, we must also clearly outline how we intend to finance it. Otherwise, we risk engaging in an unrealistic declaration of intent. Without a concrete plan on how to finance it, political backlash and delays are inevitable – outcomes that neither the EU nor the planet can afford. That is why all our energy must be focused on financially supporting the transition. We need an innovative set of tools that can leverage both public and private financing, as both are crucial to meet our massive investment needs.

    There are differing views within the European Union on how to address this funding challenge. We have to be honest: there are often opposing views on this matter. It makes no sense to ignore or hide these differences. But I firmly believe that the single market is not only a fundamental tool, but also the common ground where these diverse positions can converge.

    The initial priority should be to mobilise private capital, where the EU lags behind and has enormous untapped potential. Let me offer two clear as significant examples. Each year, EUR 300 billion of European savings cross the Atlantic to fuel the American financial markets and their real economy. This happens because our financial markets, fragmented as they are, are unable to absorb these resources. But the effect is a paradox. This money ultimately strengthens American companies, which then return to Europe to buy our European companies with our European savers’ money.

    We need a change in mindset. The current lack of integration of Europe’s financial markets is unacceptable. Take also the case of international payment systems: every day, each of us makes several credit or debit card transactions, billions of transactions in total. Yet Italians aren’t happy using a French system. The French aren’t happy using a German system. The Germans aren’t happy to use a Spanish one. As a result, we are all end up being happy to rely on an American system. This example alone highlights the inefficiency of our fragmented approach.

    We have to be pragmatic, not ideological. The fragmentation of Europe’s financial markets plays directly into the hands of other global players, keeping Wall Street and China satisfied and very happy. And this is why, in the report, I proposed the creation of the savings and investments union, building on the incomplete capital markets union. By fully integrating financial markets, the savings and investments union aims to close the gap in a sector where we have enormous potential and provide a concrete tool to finance our ambitions.

    What I want to emphasise is the importance of forging a strong link between the fair, green and digital transition and the financial integration of the single market. One of the main reasons the capital markets union failed to succeed is that it was seen as an end in itself. True financial market integration in Europe will only be achieved when both citizens and policymakers recognise that this integration is not just beneficial for the financial sector, but it is essential for achieving broader, more critical goals such as the fair, green and digital transition.

    Ultimately, progress in the area of private investments will enable us to tackle the role, structures and regulations governing public investments. As I have noted, this is a divisive issue, but it is essential that we confront it openly. Closing the current gap in private investments is a critical first step in moving this debate forward. The massive investment needs of the European Union require both private and public sources of funding. We must strike a balance between different sensibilities and pave the way for a more constructive, integrated and efficient funding strategy.

    This also extends to the debate on state aid. In the report, I have presented some ideas to overcome the current impasse. We need new solutions that can swiftly mobilise targeted national public support for industry, while also preventing fragmentation of the single market and ensuring a level playing field.

    Combining private resources and public investments, considering various instruments, is the only way to achieve a compromise in this chamber and within the European Council. Finance, energy and telecommunications are interconnected and serve as critical boost within a broader concept of security. However, the current geopolitical situation compels us to accelerate the strengthening of our common defence capabilities.

    Greater integration within our common market can serve as a pivotal tool to overcome existing duplications and inefficiencies, yet substantial investments are required. We need to act on this front, and we must do swiftly in order to preserve a crucial level of autonomy in our foreign security and defence policy.

    The EU must continue its unwavering support for Ukraine in its fight for freedom, while also striving to play a pivotal role in ending the conflict in the Middle East. Both are essential steps towards securing long-term peace and stability. To address this significant challenge, we must consider innovative financing mechanisms here as well. In the report, I propose several options, but I believe, and I want to underline here, the most pragmatic and impactful approach involves the use of the ESM, the European Stability Mechanism.

    One of the consequences of fragmentation and the lack of unity in key sectors is the difficulty we are facing in terms of innovation. The EU has not yet developed a robust industry capable of harnessing the benefits of the new wave of technological advancements. As a result, we have become increasingly reliant on external technologies that are now critical to European companies. It is essential that we unlock the full potential of the single market, and to do so, we need to leverage our unexploited common strength in research and development.

    The single market, as we know, was built on four fundamental freedoms: the free movement of goods, services, capital and people. However, this structure is outdated and too closely aligned with the 20th century vision. I believe something is missing in today’s complex and dynamic environment, something intangible yet vital. The economy of the future will be driven by innovation, knowledge and tangible assets, a dimension that is vital to our progress.

    In the report, I argue for the addition of a fifth freedom, one that encompasses a range of essential fields: research, data, skills, knowledge, education. This is possible within the framework of the existing Treaties, as demonstrated in the report. This new fifth freedom will not just be about facilitating the movement of research and innovation outputs; it will embed the drivers of research and innovation at the heart of the single market. With this framework, the EU will not only better position itself as a global leader in setting ethical standards for innovation, but also as a creator and pioneer of new technologies.

    The EU’s ability to innovate depends also on creating an ecosystem where businesses can thrive. This is why the simplification of the single market rules is a central theme. It is a topic that I have heard repeatedly during my travels. However, when we speak of simplification, too frequently, these words are not followed by concrete, actionable proposals. In the report, I present two pragmatic proposals to significantly ease businesses’ access to the benefits of the single market. The first proposal is that EU institutions should unequivocally prioritise the use of regulations over directives when setting single market rules. This would reduce uncertainty and eliminate barriers. The second proposal is the idea of the ’28th regime’ to operate within the single market, a virtual 28th state that companies could choose for smoother, more practical operation at the European level. Both these proposals cover regulatory aspects that help to reduce bureaucracy without in an in any way undermining social standards, on which we do not want to see any race to the bottom. I’m very happy to speak on behalf and in front of the Commission on these topics.

    I conclude, Madam President: Jacques Delors always insisted on the crucial point of the importance of a single market with convergence, and the success of the single market is fundamental. If we add to the freedom to move the freedom to stay, the freedom to stay is fundamental for the people who want to stay in their own regions, with the idea to be allowed to grow up there and to have services of general interest across all the EU regions and also in the periphery regions.

    My conclusion: President von der Leyen’s decision to outline an ambitious plan for reform and relaunch of the European project, drawing on some of these ideas from both my report and that of Mario Draghi opens a window of opportunity we cannot afford to miss. In a time when divisions among us – between countries, political parties and populations are growing – I stand before you to affirm that the single market is what keeps us united. We must rally around it and remain firm in our commitment to the relaunch and completion of the single market. The question before us is clear: if not now, when? Now more than ever, we must defend, strengthen and relaunch the single market.

    I hope that with all these arguments, I have convinced you that, as I wrote in the title of my report, the single market is really much more than a market.

     
       

       

    PRZEWODNICTWO: EWA KOPACZ
    Wiceprzewodnicząca

     
       

     

      President. – Thank you very much, Mr Letta.

     

    13. Empowering the Single Market to deliver a sustainable future and prosperity for all EU citizens (debate)


     

      Andreas Schwab, im Namen der PPE-Fraktion. – Frau Präsidentin, lieber Enrico Letta, Herr Kommissar! Zunächst einmal im Namen der EVP-Fraktion einen großen Glückwunsch für diese intensive Arbeit und auch für die Präsentation der Ergebnisse hier.

    Es ist deutlich geworden, dass der Bericht und auch Sie ganz persönlich, Herr Letta, nochmals in Erinnerung rufen, dass der Binnenmarkt der Motor unseres europäischen Wohlstandes ist. Das finde ich beachtlich, weil natürlich ein Stück weit in den vergangenen Jahren in Vergessenheit geraten ist, dass der wirtschaftliche Austausch – egal ob es um Waren oder Dienstleistungen, egal ob es um Autos oder um Tourismus geht – im Zentrum dessen steht, was uns als Europäerinnen und Europäer reich und viele auch zufrieden macht.

    Deswegen, glaube ich, muss man an dieser Stelle noch einmal sagen: Der Binnenmarkt kann eben am besten entscheiden, was die richtige Leistung ist. Deswegen sollten wir den Bürgerinnen und Bürgern auch die Möglichkeit geben, dass sie entscheiden können in einem offenen Markt in Europa, welche Leistung, welchen Tourismusort, welches Auto sie kaufen können. Dafür ist der Titel vielleicht ein bisschen gefährlich, denn mehr als ein Markt bedeutet ja im Umkehrschluss, dass wir einen echten Binnenmarkt vollständig schon haben. Da, glaube ich, müssen wir sagen, gibt es noch einiges zu tun.

    Es gibt noch einiges zu tun, damit Arbeitnehmerinnen und Arbeitnehmer problemlos von einem Land in ein anderes fahren können. Auch wenn sie das Recht, dort zu bleiben, wo sie sein wollen, behalten sollen, müssen sie die Freiheit genießen können – in der Überarbeitung der Verordnung (EG) Nr. 883/2004 –, die Grenze zu überschreiten. Deswegen, liebe Freundinnen und Freunde, meine Damen und Herren, glaube ich, die Anpassung an eine neue geopolitische Bedingung, die rasche Entbürokratisierung und die Kapitalmarktunion sind sicher Kernforderungen des Berichts, die wir alle unterstützen.

    Ich bin froh, dass Enrico Letta in die gleiche Richtung wie Mario Draghi gegangen ist. Deswegen, glaube ich, gilt es jetzt, dass die Europäische Kommission liefert: ein 28. Regime dort, wo es notwendig ist, eine neue Grundfreiheit und einen einheitlichen Telekommunikationsbinnenmarkt. Es gibt viel zu tun.

     
       

     

      Gabriele Bischoff, on behalf of the S&D Group. – Madam President and dear Enrico Letta, I think it is very important that we still keep a vision of what we could do and what is possible, but where we lack the courage so far to do so. Jacques Delors always said that no one falls in love with the common market. That was true in the past, it’s also true today, but you show that it’s not only a single market, but it is what it does for people, how it enables people. And therefore we really have to boost the common market indeed, but also – in the spirit of Jacques Delors – to always have in mind that this always needs a strong social dimension going for it, if we want to also convince the citizens that it’s in their interest to do so.

    But I also have to say I could comment on many things, because your report is very rich. I want to highlight the fifth freedom, a fair mobility, a new push here for innovation, and to deliver for our citizens.

     
       



     

      Svenja Hahn, im Namen der Renew-Fraktion. – Frau Präsidentin! Liebe Kollegen, wenn wir in der Welt über Werte wie Demokratie reden, hat man uns zugehört, weil wir ein attraktiver Markt waren. Der Binnenmarkt ist das Herzstück der EU – er hat uns wirtschaftlich stark werden und zusammenwachsen lassen. Doch der Binnenmarkt kränkelt vor sich hin, auch weil die Kommission zu wenig für seine Zukunft getan hat.

    Herr Letta gibt uns eine lange To-do-Liste mit: allem voran sind es massive Überregulierung, hohe Energiekosten, Steuern und Abgaben und on top noch ein mindset, das Innovation und unternehmerischem Erfolg misstraut. Das ist Gift für unseren Binnenmarkt, das ist Gift für Wirtschaftswachstum.

    Und wer jetzt die Lösung in neuen Steuern, Umverteilung und Subventionen sieht, ist doch aus der Zeit gefallen. Wir machen die EU nicht fit für die Zukunft mit Ideen von gestern, sondern mit strukturellen Reformen. Für mehr Wirtschaftswachstum brauchen wir jetzt einen radikalen Bürokratieabbau und eine Fastenkur für neue EU-Gesetze. Und es muss Schluss sein mit Protektionismus in unserem Binnenmarkt.

    Wachstum muss das Ziel sein, denn eine starke Wirtschaft schafft Arbeitsplätze, finanziert Bildung und unseren Sozialstaat und sorgt auch dafür, dass wir uns verteidigen können. Ein starker Binnenmarkt ist die Grundlage für unsere Gesellschaft, unseren Zusammenhalt und unsere Sicherheit.

     
       

     

      Anna Cavazzini, im Namen der Verts/ALE-Fraktion. – Frau Präsidentin, liebe Kolleginnen und Kollegen! Lieber Enrico Letta, erst einmal vielen Dank für deinen Bericht und die gute Zusammenarbeit mit diesem Haus, insbesondere mit dem Ausschuss für Binnenmarkt und Verbraucherschutz. Einige Leute sind ja fest davon überzeugt – und Gabriele hat es schon gesagt –, dass man sich nicht in einen EU-Binnenmarkt verlieben kann; einer davon hieß Jacques Delors.

    Aber ich muss schon sagen, dass die aktuelle Binnenmarktgesetzgebung ziemlich attraktiv ist, ein Schlüssel gegen die multiplen Krisen unserer Zeit. Mit dem Gesetz über digitale Dienste und dem Gesetz über digitale Märkte legen wir demokratische Regeln für die Onlinewelt fest. Mit der Gesetzgebung für die Kreislaufwirtschaft und dem Recht auf Reparatur machen wir Nachhaltigkeit zur Norm auf dem Binnenmarkt. Und – das ist wirklich ein Projekt zum Verlieben – das gemeinsame Ladekabel macht endlich Schluss mit unserem Kabelsalat in den Schubladen. Diese Beispiele zeigen, dass sich die Aufgabe, einen gemeinsamen europäischen Markt zu schaffen, in den letzten 30 Jahren weiterentwickelt hat.

    Von der Veränderung des Marktes mit seinen vier Freiheiten – Waren, Dienstleistungen, Kapital und Menschen – nutzen wir ihn heute immer mehr, um unsere gemeinsamen politischen Ziele zu erreichen: Souveränität, die Regulierung von großen Tech-Unternehmen, die Stärkung von Rechten von Verbrauchern und vor allem auch der Schutz unseres Planeten und des Klimas.

    Und das ist auch die Geschichte – finde ich –, die wir den Bürgern heute erzählen müssen. Tatsächlich wird sich niemand in die abstrakte Idee der wirtschaftlichen Integration verlieben. Aber die Bürgerinnen und Bürger in der EU wollen hohe Verbraucherschutzstandards, eine gesunde Wirtschaft, Umweltschutz; und der Binnenmarkt und unsere Binnenmarktregeln können all das liefern, wenn wir es richtig machen.

    Ich finde, wenn wir die Unterstützung unserer Bürger erhalten wollen, muss der Binnenmarkt sie schützen. Riesige Proteste in ganz Europa und zwei gescheiterte EU-Verfassungsreferenden waren damals die Folge, als die Kommission bei der Marktintegration mit der Dienstleistungsrichtlinie zu weit gegangen ist. Dieses Parlament hat damals, 2006, den Vorschlag geändert und ausgewogener gestaltet. Wir haben in den vergangenen Jahren erfolgreich für eine stärkere soziale Dimension des Binnenmarktes gekämpft und müssen dies auch weiterhin tun.

    Ja, viele unsinnige Hürden im Binnenmarkt müssen schnellstens abgebaut werden. Aber Marktintegration darf niemals, aber auch niemals zum Abbau von Schutzstandards führen.

     
       

     

      Νικόλας Φαραντούρης, εξ ονόματος της ομάδας The Left. – Κυρία Πρόεδρε, αγαπητέ κύριε Letta, σας καλωσορίζω στο Ευρωπαϊκό Κοινοβούλιο. Καλωσορίζουμε κάποιες από τις προτάσεις σας, όπως αυτές για μια κοινή φορολογική πολιτική ή για μια κοινή ευρωπαϊκή βιομηχανική πολιτική. Δεν με βρίσκει όμως σύμφωνο η περαιτέρω απορρύθμιση των εργασιακών σχέσεων και η αποκλειστική έμφαση μονάχα στην κινητικότητα των επενδύσεων.

    Επίσης, σας καλώ, εσάς και την Ευρωπαϊκή Επιτροπή, να λάβετε υπόψη σας το γεγονός ότι ένας βασικός πυλώνας της εσωτερικής αγοράς από δημιουργίας της Ευρωπαϊκής Ένωσης, η πολιτική ανταγωνισμού, οι κανόνες ανταγωνισμού και η αντιμονοπωλιακή νομοθεσία, σε πολλές χώρες της Ευρωπαϊκής Ένωσης και στην ίδια την Ευρωπαϊκή Ένωση δεν λειτουργεί. Υπάρχουν χώρες, όπως για παράδειγμα η δική μου χώρα, η Ελλάδα, όπου είναι απολύτως καρτελοποιημένοι κάποιοι κρίσιμοι κλάδοι της οικονομίας, όπως επίσης και κλάδοι βασικών κοινωνικών αγαθών. Γι’ αυτό, θα πρέπει να ενταθούν οι προσπάθειες, ξανά από την αρχή, ώστε οι βασικοί πυλώνες της εσωτερικής αγοράς, όπως είναι οι κανόνες ανταγωνισμού, να γίνονται σεβαστοί και εφαρμόζονται αυστηρά.

    Καλώ, λοιπόν, την Ευρωπαϊκή Επιτροπή, στο πλαίσιο του ευρωπαϊκού δικτύου ανταγωνισμού, να δείξει μεγαλύτερη προσοχή σε καρτελοποιημένες αγορές και να δώσει μεγαλύτερη έμφαση στην κοινωνική διάσταση της εσωτερικής αγοράς.

     
       

     

      René Aust, im Namen der ESN-Fraktion. – Frau Präsidentin! Der Binnenmarkt ist eine der größten Errungenschaften der europäischen Zusammenarbeit. Er ist ein lebendiges Beispiel dafür, wie souveräne Nationen gemeinsam ihre Ziele erreichen können, wenn sie ihre Kräfte in einem wichtigen Bereich bündeln. Der Binnenmarkt hat Innovationen angeregt und für zusätzlichen Wohlstand in Europa gesorgt.

    Doch heute sehen wir leider, dass sich die Europäische Union immer weiter von diesen zentralen Aufgaben entfernt. Statt sich auf ihre wenigen, aber entscheidenden Aufgaben zu konzentrieren, wie eben den Binnenmarkt, den Schutz unserer gemeinsamen europäischen Außengrenzen oder auch die Koordination einer gesamteuropäischen Verteidigungsgemeinschaft, mischt sie sich in immer mehr Lebensbereiche ein, in denen sie eigentlich nichts zu suchen hat.

    Anstatt den Schwerpunkt auf grenzüberschreitende Herausforderungen wie Handel, Wettbewerb, Innovation oder gemeinsame Sicherheitsstandards zu legen, wird die EU zunehmend zu einem Gemischtwarenladen, der sich um alles Mögliche kümmert, vom Weltklima bis zur Genderideologie, aber das Wesentliche vernachlässigt. Diese Überdehnung der EU-Aufgaben schreckt private Investoren und Entrepreneure ab und schadet damit ganz Europa. Doch jede Kritik an dieser Entwicklung wird sofort als antieuropäisch verunglimpft und sehr schnell in die Ecke der Europafeinde gesteckt.

    Dabei braucht Europa eine Rückbesinnung auf das, was wirklich wichtig ist, und nationale Souveränität ist eine Voraussetzung für eine funktionierende europäische Zusammenarbeit. Darum kann man uns Patrioten auch die Zukunft Europas anvertrauen, weil wir eben verstanden haben, dass mehr nicht immer besser ist. Wir wollen eine handlungsfähige Gemeinschaft europäischer Nationalstaaten, die den Binnenmarkt fortentwickelt, die Außengrenzen sichert und unseren Kontinent schützt.

     
       

     

      Lídia Pereira (PPE). – Senhora Presidente, a participação da União Europeia na economia global está a cair. As economias asiáticas ultrapassam‑nos a uma velocidade vertiginosa, tal como o relatório de Enrico Letta e o relatório de Mário Draghi o confirmam. As condições de vida dos europeus estão a degradar‑se. O PIB per capita nos Estados Unidos cresceu o dobro do europeu desde que foi criado o Mercado Único, em 1993. Portanto, não podemos continuar a ficar para trás.

    E o mais chocante é a nossa produção de bens essenciais, incluindo em áreas como a saúde, que desceu de 53 % para menos de 25 % em pouco mais de duas décadas. Estamos dependentes de outros, quando nunca precisámos tanto de garantir a nossa autonomia estratégica.

    Enrico Letta disse‑o ainda há pouco, mas continuamos, infelizmente, a ver mais de 300 mil milhões de EUR das poupanças dos europeus serem desviadas para fora da Europa. É trágico, porque estamos a financiar a economia dos outros, em vez de fortalecermos a nossa.

    Queremos ter um mercado mais competitivo, então precisamos de uma união bancária completa. Queremos proteger as poupanças dos nossos cidadãos e relançar a inovação, precisamos de uma união de mercado de capitais. E, acima de tudo, precisamos mesmo de reformar o mercado único europeu, acrescentando‑lhe a livre circulação do conhecimento, porque só com investigação e inovação seremos capazes de ter mais empresas competitivas a nível global.

    Creio que já temos relatórios o quanto basta. Precisamos mesmo é de decisões, e está na hora de as tomarmos.

    (A oradora aceita responder a uma pergunta «cartão azul»)

     
       

     

      João Oliveira (The Left), Pergunta segundo o procedimento «cartão azul». – Senhora Presidente, fazer a defesa do mercado único a partir da apologia da política de concorrência, ignorando a concentração e a centralização a que essa política e esse mercado têm conduzido, não nos serve de muito. Basta olhar para o setor bancário português e perceber que, sem o aprofundamento do mercado único, ficaram os bancos todos nas mãos de capital estrangeiro, com exceção da Caixa Geral de Depósitos, que, por ser pública, continua a ser nacional.

    Trazer aqui a defesa do mercado único a partir da ideia de que é isso que permite reduzir os preços – quando o setor energético mostra exatamente o contrário, com o aumento dos custos da energia – ou agora a partir do setor financeiro, achando que é isso que resolve os problemas, pode servir às multinacionais, mas não serve um país como Portugal, Senhora Deputada.

     
       


     

      Camilla Laureti (S&D). – Signora Presidente, onorevoli colleghi, grazie a Enrico Letta per il rapporto. Alexander Langer diceva che la conversione ecologica potrà affermarsi solo se apparirà socialmente desiderabile: per questo in Europa servono investimenti comuni, perché il Green Deal è una rivoluzione necessaria che impatta sul modello di sviluppo e sulla vita delle persone, e nelle persone può generare paura.

    Se sapremo realizzarlo, avremo i cittadini al nostro fianco, le aziende più competitive e un’Europa più forte. Gli Stati Uniti, la Cina e l’India stanno andando veloci e in questa direzione – l’Europa non può permettersi di restare indietro. La risposta è un sistema comunitario di aiuti di Stato: dobbiamo integrare i principi dell’economia circolare per spingere sostenibilità e competitività.

    La libertà di muoversi, dice anche Letta nel rapporto, deve essere una scelta – oggi non lo è. Un terzo della popolazione europea vive in regioni che da anni sono immobili: le aree interne d’Europa. Qui si vince la sfida della crescita sostenibile, fatta di investimenti comuni, capaci di garantire i servizi di interesse generale per non lasciare indietro nessuno.

     
       

     

      Enikő Győri (PfE). – Tisztelt Elnök Asszony! Az egységes piac az Unió legközérthetőbb értéke. Az olcsóbb repülés, vagy annak előnye, hogy otthoni szeretteinkkel ingyen telefonálhatunk, nem szorul magyarázatra. Persze szereztünk keserű tapasztalatokat is. Szolgáltatási irányelv, kiküldött munkavállalók, mobilitási csomag. Ezek elfogadásakor a Bizottság mindig a nyugat-európaiak érdekét tartotta előbbre valónak.

    Ahol az EU keleti fele versenyképesebb, ott nem akarta lebontani az akadályokat. A feladat tehát csak, hogy olyan területeken mélyítsük az egységes piacot, mely fokozza a versenyképességet, és földrajzi helytől függetlenül megkönnyíti a polgárok és cégek életét. Ne központosítsunk ott, ahol a kisebbek vagy fejletlenebbek rosszul állnak. Több összeköttetés tehát, de például az energia- vagy telekommunikációs szektor centralizáltásával bánjunk csínján, ne tűnjenek el a helyi szereplők, ne dráguljon a szolgáltatás. A pénzügyi piacok közötti átjárhatóság jó irány, de legyünk óvatosak a nemzeti felügyeletek egységesítésével, ne fojtsuk meg a kisebb nemzeti tőkepiacokat, amelyek nélkül nincs helyi ökoszisztéma.

    Elnök úr említette az ötödik szabadságot, a tudás mozgását. Ez nagyon klassz. Csak kérdezem, hogy az Európai Bizottság miért blokkolja a magyar kutatók részvételét a Horizont programban, vagy a magyar diákok mozgását az Erasmus program keretein belül? Regionális különbségek kiegyenlítése nélkül nincs versenyképesség. Az agyelszívás ellen tenni kell. Ösztönözni kell a helyben boldogulást. Tartsuk meg a kohéziós politikát, hiszen ezt az egységes piac ellensúlyozására találták ki, hol nehézségeket okozott. Ezt fenn kell tartani kondicionalitás nélkül, mert az durva politikai eszközzé vált a Bizottság kezében.

     
       

     

      Denis Nesci (ECR). – Signora Presidente, onorevoli colleghi, Presidente Letta, la relazione che discutiamo oggi mette in luce una delle sfide cruciali: il rafforzamento del mercato unico è senza dubbio un obiettivo fondamentale per il futuro dell’Unione europea.

    Tuttavia, non possiamo ignorare le criticità evidenti. Le eccessive regolamentazioni burocratiche rappresentano un ostacolo reale che rischia di soffocare l’innovazione e la crescita delle PMI. Se poi ci troviamo di fronte a perfidie come quella della direttiva ETS, giusto per citarne una, che mette a rischio la competitività delle infrastrutture portuali del Mediterraneo – come il porto di Gioia Tauro – con forti ricadute anche sul livello occupazionale, non parliamo di mercato unico, bensì di un distorto mercato unico.

    Per rilanciare la nostra competitività nell’ambito del mercato unico abbiamo bisogno di una politica economica adeguata e solidale, accompagnata da regole che vadano incontro alle esigenze di tutti gli Stati membri. Per questo è essenziale che il mercato unico non diventi un vantaggio riservato solo ad alcune aree: serve un mercato unico realmente inclusivo, che possa offrire opportunità anche alle regioni meno sviluppate, mettendo al centro l’uomo e non le “eco-follie”, e che sia a favore di famiglie, consumatori e imprese.

     
       

     

      Sandro Gozi (Renew). – Madame la Présidente, chers collègues, caro Enrico, le plus grand succès de l’Union, le marché unique, doit être renouvelé et complété. «Rico» Letta l’affirme avec force, et il a raison.

    Renouvelé, car il est impossible de réussir la transition écologique et numérique sans rendre le marché unique plus durable et plus simplifié pour les producteurs et pour les consommateurs. Complété, car il faut éliminer tous les obstacles qui empêchent les PME d’en profiter pleinement et qui nous empêchent d’avoir une union de l’énergie, des télécoms, des capitaux et des investissements. Le coût de la «non-Europe» est trop grand pour ne pas agir. L’approfondissement du marché européen pourrait générer jusqu’à 1,1 trillion d’euros de production économique supplémentaire par an.

    Il est aussi urgent – le rapport le dit très bien – de dégager les ressources sociales et économiques nécessaires à l’accompagnement du pacte vert et de la transition numérique.

    Enfin, nous devons développer une dimension extérieure du marché unique en lien avec notre politique commerciale. Dans ce cadre, nous devons également réformer les marchés publics, qui doivent aussi nous aider à réduire notre dépendance vis-à-vis des pays tiers. Cela doit être notre grande mission pour l’innovation et la compétitivité.

     
       


     

      Marcin Sypniewski (ESN). – Pani Przewodnicząca, Szanowni Państwo, jestem posłem od kilku miesięcy i jestem szczerze zdumiony, że w tym krótkim czasie po raz kolejny debatujemy nad nowym sprawozdaniem, które ma nam wskazać, jak mamy stać się bardziej konkurencyjni, bogatsi, silniejsi czy piękniejsi. Najwyraźniej oprócz biegunki legislacyjnej mamy również do czynienia z biegunką ekspertyz, analiz i sprawozdań. Zamiast tego polecam poczytać Rothbarda, Misesa czy Hayeka, których dzieła przetrwały próbę czasu we wskazywaniu, co jest dobre dla rozwoju gospodarczego i wolności jednostki.

    Noblista Fryderyk von Hayek wskazuje, że wiedza w swojej naturze jest rozproszona. To rynek za pośrednictwem cen przesyła informacje do przedsiębiorców i konsumentów. Dzięki temu rynek samodzielnie się stabilizuje i dostosowuje się do zmieniających się warunków i potrzeb. Politycy i urzędnicy nie są do tego w ogóle potrzebni. Alternatywą dla takiego spontanicznego i rozproszonego działania jest centralne planowanie, które wielokrotnie wprowadzane zawsze zawodziło, ponieważ politycy nigdy nie posiądą całości rozproszonej wiedzy.

    Rynek nie jest tabelką w Excelu, ale żywym, dynamicznie zmieniającym się organizmem, a prawdziwymi przywódcami na rynku są konsumenci. To ich wymagania starają się spełnić przedsiębiorcy. Rozwiązaniem, które ewentualnie pobudziłoby rynek, jest porzucenie praw własności intelektualnej w postaci chociażby patentów. Informacja może przecież znajdować się w kilku miejscach jednocześnie, bez wzajemnej szkody. Nie jest to dobro rzadkie, dlatego nie powinno być chronione jak własność prywatna. Własność intelektualna to sztuczny twór, a jej ochrona jest fikcją prawną. Chcecie bogactwa i dobrej przyszłości? Postawcie na rynek, a nie na biurokrację i na sprawozdania.

     
       


     

      Mohammed Chahim (S&D). – Voorzitter, de heer Letta is vrij helder in zijn analyse, net zoals de heer Draghi kort daarna. Het gaat echt ergens over, namelijk hoe kunnen we onze interne markt versterken? Hoe kunnen we de eenheid van Europa versterken? Hoe zorgen we ervoor dat we een sterke concurrentie krijgen binnen Europa, maar vooral ook met de rest van de wereld? En dit gebaseerd op een gelijk speelveld, op innovatie en op vergroening?

    Simpel gezegd zijn er twee stromingen in Europa: enerzijds conservatief rechts, dat de ontwikkelingen buiten de EU negeert, blind is voor de massale groene investeringen in de VS en wegkijkt van de modernisering van de Chinese economie; anderzijds een stroming die deze ontwikkelingen wil inhalen door meer – en niet minder – op Europese schaal samen te werken, te investeren in groene technologieën en ons niet te blijven blindstaren, zoals Draghi zei, op onze deels verouderde industrie.

    De keuze is simpel. Kiezen we voor modernisering en vergroening en dus voor vooruitgang? Of kiezen we voor nostalgie en stilstand?

    (De spreker stemt ermee in om te antwoorden op een “blauwe kaart”-vraag)

     
       



     

      Roman Haider (PfE). – Frau Präsidentin! Der Letta-Bericht benennt viele Probleme des Binnenmarkts richtig: steigende Energiepreise, mangelhafte Infrastruktur, vor allem bei den Hochleistungsbahnstrecken, Rückstand bei den Zukunftstechnologien, Überbürokratisierung vor allem. Das ist alles richtig; es ist nicht neu, aber es stimmt. So richtig aber die Analyse und die Diagnose im Letta-Bericht ist, so falsch sind leider die Vorschläge zur Verbesserung. Das war beim Draghi-Bericht so, und das ist auch beim Letta-Bericht so.

    Den beiden fällt zur Lösung der Probleme der EU nur eines ein: noch mehr EU, noch mehr Kompetenzen für Brüssel, noch mehr EU-Institutionen, eine neue Fiskalkapazität, die Kapitalunion, und dabei ist aber genau das das Problem. Noch mehr Kompetenzen für Brüssel bedeuten noch mehr Bürokratie, noch mehr unnütze Vorschriften, noch weniger Flexibilität für die Mitgliedstaaten.

    Es ist höchst an der Zeit für neue Wege, für weniger Zentralismus, für weniger EU, für mehr Flexibilität für die Mitgliedstaaten, mehr Subsidiarität und mehr Freiheit.

     
       

     

      Kosma Złotowski (ECR). – Pani Przewodnicząca! Panie Premierze! Od sukcesu jednolitego rynku zależy przyszłość Unii Europejskiej. Ten bardzo dobry projekt gospodarczy wciąż jest jednak daleki od ideału, gdyż ogranicza potencjał rozwojowy wszystkich państw członkowskich. Wreszcie możemy o tym głośno mówić.

    Istnieje wiele barier dla firm, zwłaszcza małych i średnich, które chcą prowadzić działalność ponad granicami w sektorze usług, transporcie, budownictwie czy handlu internetowym. Już zidentyfikowane problemy, takie jak geoblocking, gold-plating czy nadmierne i uciążliwe kontrole, skutecznie należy zwalczać. Europejski Zielony Ład jest wyłącznie kolejną taką barierą dla wzrostu gospodarczego.

    Nierealistyczne cele klimatyczne w takich obszarach jak rolnictwo, motoryzacja, transport czy budownictwo muszą zostać w tej kadencji Parlamentu zmienione. Zacznijmy w końcu deregulować, umożliwiać małym i średnim przedsiębiorstwom dostęp do rynków zagranicznych, wspierać innowacje i cyfryzację. To przełoży się na wzrost zatrudnienia oraz niższe ceny towarów i usług dla Europejczyków.

     
       

     

      Billy Kelleher (Renew). – Madam President, the Letta report and the Draghi report are a wake-up call for the European Union in terms of digitisation, the Green Deal, our knowledge economy, investing in innovation, research and development, ensuring that we have growth and competitiveness. The single market, the internal market, is a cornerstone on which all of this is built, and we have to protect it and ensure that it prospers and flourishes.

    The fact of the matter is, at the moment we are very short on capital in the European Union to invest in all of the above. So we have to advance the Capital Markets Union and the Banking Union to ensure that we have the capital to invest in the knowledge economy, in the Green Deal and other areas of research and development.

    The free movement of people, goods and services and capital is the cornerstone. Of course, we do have some in this Chamber who are even trying to undermine the basic principle of free movement of people. We have to be very conscious that we can’t cherry‑pick the Single Market – free movement of capital, goods, services and people is the cornerstone and we must all defend it to the last.

    More broadly, over the next number of months, we have to ensure that we respond to the Letta report and the Draghi report in what they observe are the challenges ahead for our competitiveness.

     
       


     

      Fulvio Martusciello (PPE). – Signora Presidente, onorevoli colleghi, come sottolineato nella sua relazione e in quella di Mario Draghi, un solido mercato unico europeo è essenziale per la competitività delle imprese, perché può stimolare la crescita economica e l’innovazione, garantendo accesso al mercato ed eliminando la burocrazia inutile.

    L’Europa però ha bisogno di una forte strategia industriale per le tecnologie e le catene del valore, che promuova competitività, sostenibilità e innovazione. Questa strategia deve sviluppare una visione coerente, che dia priorità ad un quadro normativo, con politiche basate su dati scientifici e valutazioni di impatto approfondite, fornendo alle imprese la stabilità di cui hanno bisogno. Da questo punto di vista riteniamo molto positive le lettere di missione sulla creazione di una vera e propria economia circolare competitiva.

    Negli ultimi decenni le aziende europee hanno infatti investito miliardi di euro in tecnologie all’avanguardia, hanno generato enormi progressi nell’eco-design di prodotti, nella sicurezza dei consumatori e nell’industria del riciclo, dove l’Italia e l’Europa detengono posizioni di leadership mondiale, sia in termini di innovazione industriale che di sostenibilità ambientale.

    Purtroppo, l’eccesso di regolamentazione degli ultimi anni ha generato un’enorme incertezza, spingendo interi settori industriali a posticipare i propri investimenti, compromettendo gli obiettivi di crescita complessivi, con spreco di tempo e di risorse.

    In questo mandato sarà dunque necessario evitare a tutti i costi di produrre ulteriori iniziative legislative motivate da logiche falsamente ambientaliste e non basate su evidenze scientifiche, che rischiano di penalizzare le imprese europee. Sarà imperativo garantire la conformità con le norme europee da parte dei Paesi terzi, garantendo standard che riducano la dipendenza dai fornitori esteri e rafforzino la competitività dell’industria e delle economie europee per affrontare le sfide delle concorrenze globali di Cina e Stati Uniti.

     
       

     

      Laura Ballarín Cereza (S&D). – Señora presidenta, señor Letta, señorías, treinta años después de su creación, el informe Letta nos brinda una oportunidad única para avanzar hacia el futuro del mercado único en tres aspectos clave:

    En primer lugar, inspirados por Jacques Delors, apoyamos su idea de añadir una nueva libertad a la libertad de movimiento, que es la libertad de permanecer en el rincón de la Unión Europea que queramos. No queremos solo una Unión donde podamos movernos libremente en busca de una vida mejor: también queremos cohesión, oportunidades y desarrollo en todas las regiones de la Unión Europea, y acceso a la vivienda para proteger las zonas rurales y las más pobladas.

    En segundo lugar, necesitamos profundizar en la integración del mercado de capitales y el de las telecomunicaciones porque, como bien dice el señor Letta, no es coherente que compartamos una moneda única, pero tengamos aún fronteras digitales y prefijos nacionales.

    Y, en tercer lugar, la quinta libertad, la del conocimiento y la innovación. Nos quedan cinco años para profundizar en el mercado único y hacer que más europeos se enamoren de esta idea, tal como quería Jacques Delors, en contra de la extrema derecha que está aquí en esta Cámara sentada.

     
       

     

      Roberts Zīle (ECR). – Priekšsēdētājas kundze! Godātais Lettes kungs, es pilnīgi piekrītu jūsu ziņojumam, ka vienotais tirgus ir kaut kas vairāk kā tirgus, un arī jūsu norādītām nepilnībām gan sektoru ziņā: finanses, enerģētika, telekomunikācijas un it īpaši privātā kapitāla izvietošana.

    Ja kopumā Eiropā ir 33 triljonu eiro uzkrātā kapitāla un katru gadu 300 miljardi eiro tiek investēti ārpus Eiropas Savienības, Amerikā un citās vietās, tad kaut kas nav kārtībā ar šo. Un ar publisko naudu vien mēs nespēsim izdarīt tos uzdevumus, kas ir nepieciešami Eiropas Savienībai gan militārās industrijas jomā, gan zaļā kursa, gan paplašināšanās, gan citās jomās.

    Jūsu ieteiktās zāles arī ļoti vērā ņemamas par piekto pamatbrīvību, par Uzkrājumu un investīciju savienību. Bet dažas zāles, kā, teiksim, radīt siltumnīcas apstākļos Eiropas čempionus, kas var kļūt par globāliem čempioniem, es ļoti baidos, ka tas to nesasniegs. Vēl jo vairāk tas var noplicināt no perifērijas gan naudas resursus, gan arī cilvēku – gudrāko cilvēku – resursus uz dažiem centriem Eiropā, kas varbūt nebūs Eiropas Savienības veiksmes stāsts.

     
       


     

      Regina Doherty (PPE). – Madam President, Mr Letta, you’re absolutely right when you say that the single market is the best tool that we have to increase opportunities, improve our well-being and the living standards for all of the citizens across the European Union. And we absolutely can’t take it for granted, because if we do, it’s going to fail. Your report, which is really welcome, helps to illuminate many of the current problems that we are seeing and that the single market is facing.

    Europe’s economy is not growing strongly enough. Our small businesses are not given the opportunity to grow and to scale up. Approximately 30 % of the high-value companies founded in the EU between 2008 and 2021 relocated their headquarters out of the EU, and mostly to the US. Some 60 % of the issues that we identified by businesses in 2002 still exist in the European market today, because progress on removing the barriers has been so slow, and it’s particularly true in the case of our service industry.

    We see the distorting effects of current rules around the EU state aid rules, which allow larger countries to subsidise businesses at the expense of smaller ones, like my own, Ireland. In 2023, almost 80 % of EU state aid came from just two Member States, and 85 % from three Member States.

    Europe will not be able to spend its way out to growth. Instead, we must reduce the unnecessary red tape and bureaucracy that everybody has been speaking about daily since I arrived here in June. But it’s also vital to avoid EU protectionism in the form of high external tariffs, a hostility towards investment from third countries and an over-reliance on those subsidies.

     
       

     

      Estelle Ceulemans (S&D). – Madame la Présidente, Monsieur Letta, Mesdames et Messieurs les Commissaires, chers collègues, il est aussi bon de rappeler que le rapport de M. Letta sera – Mme von der Leyen l’a elle-même dit – l’un des fils rouges de la prochaine Commission. Il était donc vraiment important que vous veniez nous le présenter et que nous puissions en débattre aujourd’hui.

    Merci, Monsieur Letta, de reprendre les mots de Jacques Delors, artisan du marché unique, qui nous dit que le marché n’est pas une fin en soi: il est là pour améliorer la vie des citoyens, qui ne sont pas que des consommateurs. Le marché unique a en effet permis de développer la prospérité et la compétitivité, mais il a aussi creusé les disparités et la pauvreté – comme cela a été dit dans le débat précédent, qui nous rappelle que, malheureusement, 1 Européen sur 5 fait face à un risque de pauvreté.

    Merci, donc, Monsieur Letta, de rappeler que le marché ne peut fonctionner que sur la base de politiques sociales fortes, et de rappeler aussi qu’il faut, sous cette législature, investir dans les deux transitions, pour qu’elles soient justes. Je voudrais rappeler aussi que nous attendons de la prochaine Commission qu’elle s’engage, tout comme l’a fait M. Nicolas Schmit, sur des matières sociales importantes.

     
       

     

      Adrian-George Axinia (ECR). – Doamnă președintă, piața unică europeană este o idee foarte bună, care, din păcate, în anumite domenii de activitate nu funcționează așa cum trebuie. Vă dau trei exemple: piața de energie, acolo unde România, care produce mai multă electricitate decât consumă, plătește cele mai mari facturi din Uniunea Europeană. A doua disfuncționalitate, care este încă nerezolvată, ține de agricultură. În continuare, cerealele și anumite produse alimentare exportate din Ucraina ajung pe piața românească, bulgărească sau poloneză și creează o concurență neloială producătorilor agricoli autohtoni.

    Merită subliniat și refuzul implementării procesului de convergență externă, care ar trebui să ducă la egalizarea subvențiilor pentru fermieri în toate țările Uniunii Europene. Nu în ultimul rând, recent, Curtea de Justiție a Uniunii Europene a declarat nelegale mai multe prevederi din pachetul de mobilitate orientate împotriva transportatorilor din România, ceea ce confirmă raportul Draghi. Există în continuare o suprareglementare a pieței unice și aceasta afectează competiția liberă. Aș mai puncta și faptul că uciderea spațiului Schengen de către țările care introduc controale generale la frontieră și statele care țin încă România și Bulgaria pe margine afectează în continuare buna funcționare a pieței unice.

     
       

     

      Ľudovít Ódor (Renew). – Vážená pani predsedajúca, tak ako vidíme aj z tejto diskusie, skutočný jednotný trh je niečo, na čom vieme stavať aj v tomto Parlamente, a musíme v najbližších rokoch urobiť maximum pre to, aby sme tento koncept rozšírili aj na ďalšie sektory. Rád by som upozornil na tri veci, ktoré sú pre mňa prioritné. Po prvé, svet sa zmenšil a trhy sa trošku zmenili. V digitálnom svete dominujú tí najlepší. Víťaz berie takmer všetko, dosť dobre už nestačí. Potrebujeme naozaj silných európskych globálnych hráčov, a nie desiatky trpaslíkov. Po druhé, svet inovácií je aj o riziku. Bohužiaľ, náš bankami dominovaný finančný systém, a ako aj občania preferujú menej rizika, a preto bez Únie, úspor a investícií, ako aj lepšej finančnej gramotnosti to tak aj zostane. Peniaze máme, no nevieme ich dostať k inovatívnym firmám. A po tretie, pri dobrých nápadoch a podnikaní nemôžeme tolerovať bariéry pri prechode každej vnútornej hranice.

     
       


     

      Marc Angel (S&D). – Madam President, the single market is the crown jewel of the European construction, and in my eyes gives the EU a competitive advantage. A stronger single market means a more competitive Europe.

    Mr Letta, as your excellent report shows, we can improve a lot and we must perfect it. We need better implementation of the existing rules. We need to ensure that it contributes to a more sustainable and a more social Europe, and we need to consider strengthening integration in crucial sectors, as a stronger single energy market, for example, driven notably by better interconnectivity, can lead to more secure and affordable energy and cheaper electricity bills for companies and our citizens.

    Furthermore, for the S&D Group, more integration means more competitiveness for our companies, better consumer protection and more prosperity for Europeans – while adopting national solutions will lead to more fragmentation and ultimately a weaker Europe.

    Further harmonisation of rules also means less bureaucracy and a reduced administrative burden for our companies, especially for SMEs, which will no longer have to navigate through a jungle of 27 different sets of national rules.

    So let us leverage the power of integration to tap into the full potential of the single market.

     
       

     

      Ivars Ijabs (Renew). – Madam President, thank you, Mr Letta, for your excellent report. Well, of course, the single market is a strength of the EU: it’s the main instrument. This is how we achieve our goals. But what are actually our goals today? Let me remind you that the Russian aggression in Ukraine is still going on. And the Russian attack on an EU country is possibly, still, a question of the nearest future.

    And that’s why I really like the part in your report which deals with a common market for security and defence industries. This is a real necessity for the EU right now. Some 80 % of the military help to Ukraine is right now spent on non-European materials.

    But how to achieve that common market? European investment in defence is lagging. It is very seriously hindered by red tape, by excessive regulatory requirements, by fragmentation. There is an immense potential of a single market in defence industry, but one must have a political will to implement it – and quickly. Time is running out.

     
       

     

      Salvatore De Meo (PPE). – Signora Presidente, onorevoli colleghi, la relazione Letta, unitamente a quella del Presidente Draghi, arrivano all’inizio di questa legislatura, che io vorrei diventasse riformatrice, ambiziosa, coraggiosa ma responsabile, perché l’Unione europea non sia più spettatrice in una scena globale ma diventi protagonista.

    E abbiamo gli strumenti per farlo: un mercato unico che in questi anni non solo è stato strumento di integrazione ma ha consentito la nostra crescita economica e la prosperità, uno strumento che va semplificato da un punto di vista burocratico, ma soprattutto rafforzato, per esprimere ulteriormente le sue potenzialità e affrontare le nuove opportunità.

    Così come è necessario arrivare a un mercato unico dell’energia, un mercato finanziario che permetta ovviamente di garantire condizioni di competitività. E allora noi abbiamo davanti a noi sfide importanti, per le quali solo un mercato unico forte potrà garantirci un futuro all’altezza delle nostre ambizioni climatiche, sociali e produttive.

     
       

     

      Jonás Fernández (S&D). – Señora presidenta, señor comisario, señor Letta, es un placer tenerle aquí en un momento en el que estamos empezando a definir las prioridades de este mandato y, sin duda, acelerar la integración del mercado único —especialmente en el ámbito de los servicios, donde aún tenemos relevantes problemas, como ha expuesto en su informe— es absolutamente necesario.

    Pero me va a permitir decirle que lo que más me ha llamado la atención del informe es la exigencia de evitar la huida de ahorro europeo a otras jurisdicciones. Porque algunos llevamos años en esta Cámara pidiendo reducir los superávits por cuenta corriente de algunos países —superávits por cuenta corriente que, en algunos casos, llegan a dos dígitos en relación con el PIB de esos países— y, ciertamente, en los debates que teníamos aquí en estos años, nadie o muy pocos me seguían.

    Y yo creo que es importante que, ahora que pedimos que el ahorro se invierta en Europa, seamos capaces de explicar a la Cámara que lo que estamos pidiendo es más demanda interna y reducir los superávits por cuenta corriente que ahogan el crecimiento de la Unión Europea.

     
       

     

      Biljana Borzan (S&D). – Poštovana predsjedavajuća, zajedničko tržište jedno je od najvećih europskih postignuća.

    Svaka kriza produbljuje nejednakosti na tržištu, bogati se još više bogate, siromašni postaju još siromašniji. Troškovi života najveći su problem u cijeloj Europskoj uniji, a nejednakosti između i unutar država članica u cijenama, plaćama, mirovinama i stopi siromaštva se samo povećavaju.

    Izvješće ističe zaštitu potrošača kao jedan od uvjeta za pošteno tržište, ali geoblocking, teritorijalne barijere, viši rast cijena hrane u istočnoj Europi samo su neki od gorućih problema. Izvješće hvali Zakon o osnaživanju potrošača u zelenoj tranziciji na koju sam i sama ponosna, ali rješenje je provedba naših pravila u svakom dijelu Europske unije. Više od 80 posto građana moje zemlje smatra da su potrošači nezaštićeni protiv tržišnih igrača.

    Moramo ojačati europske alate, potrošačke udruge, inspekcijski nadzor i svijest građana o vlastitim pravima. Ne smijemo biti oni tamo negdje u Bruxellesu. Mi moramo raditi za ljude.

     
       


       

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      Davor Ivo Stier (PPE). – Poštovana predsjedavajuća, gospodin Letta ispravno govori o tome što ubrzanje integracije unutarnjeg tržišta ima jednu geopolitičku važnost u današnjim uvjetima.

    Ja bih to nadopunio time što unutarnje tržište moramo isto tako i povezati s procesom proširenja. Pogledajmo, na primjer, situaciju na zapadnom Balkanu, ima puno političkih problema. Ne smijemo čekati da se oni riješe, da te zemlje postanu punopravne članice, nego bismo ih već prije mogli, doduše možda na jedan postupni način, ali već prije mogli integrirati u naše jedinstveno tržište. Kao što, na primjer, činimo kada je u pitanju roaming. Mislim da je to jedan dobar primjer, ali moramo to proširiti i na druge slobode.

    Na taj način će i ljudi u toj regiji imati svoje pravo na ostanak, a Europska unija će imati veći utjecaj i više će pridonijeti stabilnosti tog dijela europskog kontinenta.

     
       

     

      Maria Grapini (S&D). – Doamnă președintă, domnule comisar, domnule Letta, vă salut și în această săptămână. Aș spune multe. În primul rând vă felicit: este o radiografie corectă, dar nu numai o radiografie, sunt și măsuri concrete. V-aș întreba, estimați dumneavoastră oare cât din acest raport se va aplica? Pentru că, iată, noua comisie nu are un comisar, nu există un portofoliu pentru piața internă. Cine se ocupă atunci de piața internă? Cum să ne ducem la măsurile concrete pe care le-ați spus dumneavoastră? Ați spus că piața unică ne unește; este oare o piață unică acum?

    Sunt de acord să avem cea de a cincea libertate de mișcare, dar cel puțin o libertate de mișcare ne lipsește acum, domnule Letta. Știți oare cât a pierdut o țară care de 17 ani nu este în spațiul Schengen și are costuri la transport? Cât a pierdut economia țării mele? Apoi, avem acum, când vorbim, îngrădirea în interiorul spațiului Schengen a granițelor. Deci trebuie – toată piața unică, e adevărat, ați spus că ne unește – dar trebuie să luăm cu pragmatism măsuri care să ducă la rezultate și la o viață mai bună a oamenilor.

     
       

     

      Silvia Sardone (PfE). – Signora Presidente, onorevoli colleghi, le istituzioni europee hanno deciso di affidare ad Enrico Letta l’incarico di scrivere una relazione sul futuro dell’Europa. Eh, niente, fa già ridere così.

    Letta è l’ex leader del Partito democratico, ex premier della sinistra in Italia, volto di punta dei socialisti europei: rappresenta praticamente tutti i responsabili del disastro dell’Unione europea degli ultimi anni, tra l’altro sonoramente sconfitti in Italia.

    Per Letta la transizione verde è indispensabile e bisogna accompagnare agricoltori, imprese, industria dell’auto: esattamente ciò che però la sua maggioranza non ha fatto. Anzi, grazie a voi questi settori sono in crisi. Letta ci ricorda che l’Europa non deve cedere sul ruolo di leader nel settore manifatturiero: ma è proprio grazie ai vincoli, tasse e burocrazia volute dall’Europa che ci troviamo in questa condizione.

    Enrico Letta: uno che ha uno strano concetto di democrazia e ci ha tenuto a dire che i cordoni sanitari sono fondamentali per fermare le destre. Lui, proprio lui, che ha ribadito che servono più migranti regolari per lo sviluppo, andando contro diversi Paesi, anche socialisti, che finalmente dicono che bisogna fermare l’immigrazione.

    Insomma, veramente vogliamo farci dare lezioni da Letta, colui che dice che l’ex ministro Fornero è stato un ministro ottimo quando invece ha solo distrutto il nostro Paese?

     
       


     

      João Oliveira (The Left). – Senhora Presidente, visto a partir do conselho de administração de uma multinacional, o aprofundamento do mercado único pode parecer um filão; visto a partir da realidade dos trabalhadores e dos povos, das micro, pequenas e médias empresas, das possibilidades de desenvolvimento de um país como Portugal, o aprofundamento do mercado único é um pesado fardo que nos arrasta para o fundo.

    Há algumas décadas atrás, o militante do PCP e ex‑deputado deste Parlamento, Sérgio Ribeiro, antecipava que a transferência de instrumentos de política para a esfera supranacional, nomeadamente através da transferência da política monetária e financeira para o BCE, conduziria a uma política tendencialmente única. Por meio do mercado único e das políticas que lhe estão associadas, que o senhor Letta hoje adjetiva de motor de mudança da União Europeia, retirou‑se capacidade de decisão aos governos nacionais, abriu‑se mais espaço à concentração e centralização do capital, colocaram‑se sob ataque os direitos sociais e laborais.

    O aprofundamento do mercado único serve às multinacionais, mas não serve ao desenvolvimento económico nem à justiça social.

     
       

     

      Lukas Sieper (NI). – Madam President, dear honourable House, dear people of Europe, Mr Letta, before I came here to this Parliament, I finished my law studies at the University of Cologne. During this time, I put a lot of effort into learning the four European freedoms: the freedom to move people, services, goods and capital. And I can tell you, learning all the law-related details – especially the court rulings – that was a pain in the ass, indeed. Names like Dassonville or Cassis de Dijon, who will tell you here nothing, send a shiver down the spine of every law student.

    But at the same time, whenever I opened my books, I felt love for Europe. Because what is Europe if not the idea of freedom? And that’s why, Mr Letta, I would like to take the time to give you my deepest support for one of the main ideas of your report: the implementation of a fifth freedom – the freedom of research, innovation, knowledge and education. Because as Europe is an idea, ideas should roam free on this continent.

     
       

       

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      Giuseppe Lupo (S&D), per iscritto. – Penso che il Parlamento europeo debba condividere e sostenere la strategia della relazione Letta per modernizzare il mercato unico dell’UE.

    Condivido in particolare che, se vogliamo che il mercato unico migliori davvero la vita della gente, deve avere un’anima che è il dialogo sociale, che deve fare partecipare e coinvolgere le persone, la società, i corpi sociali intermedi, i sindacati dei lavoratori e delle imprese, rilanciando il dialogo sociale come lo ha voluto e praticato con successo Jacques Delors, anche grazie alla collaborazione dell’allora segretario della CES, Emilio Gabaglio.

    La grande sfida da affrontare, credo, sia adesso la promozione di una politica fiscale comune, per sostenere con condizioni fiscali di vantaggio le aree territoriali più deboli, superando le differenze dei sistemi fiscali nazionali che ostacolano la leale concorrenza.

     

    14. Implementation of the Single European Sky (debate)


     

      Jens Gieseke, Berichterstatter. – Sehr geehrte Frau Präsidentin, sehr geehrter Herr Kommissar Hoekstra, liebe Kolleginnen und Kollegen! 30 000 Flüge täglich, 600 Mio. Passagiere jährlich, über 500 000 Arbeitsplätze bei Fluggesellschaften, weniger als 17 000 Arbeitsplätze in der nationalen Verkehrskontrolle, überlastete Flughäfen, ein Flickenteppich an Strecken aufgrund der Flugsicherung entlang nationaler Grenzen – das ist das Bild des letzten europäischen Monopols: die Flugsicherungsdienste.

    Ich bin heute hier, um Sie zu bitten: Sagen Sie Ja zu kürzeren Strecken, zu mehr Effizienz, zu mehr Leistungen, zu mehr Zusammenarbeit, und Ja zu einem wirklich europäischen einheitlichen Luftraum. Warum gibt es kein Leistungsüberprüfungsgremium? Warum gibt es nicht ein gemeinsames Leistungssystem? Warum gibt es nicht einen europäischen Netzwerkmanager? Das sind alles wichtige Elemente, um die Leistungen der Flugsicherung zu verbessern und den Schaden für die Passagiere zu begrenzen. Fluglotsen behalten ihren Arbeitsplatz, sie werden weniger gestresst arbeiten, sie werden besser arbeiten, weil sie mit ihren Nachbarn zusammenarbeiten. Ich bin hier, um Ihnen zu sagen: Ja, wir können Flüge sicherer, kürzer, umweltfreundlicher und erschwinglicher für den Durchschnittsbürger der Europäischen Union machen.

    Wir haben hier ein riesiges Potenzial. Milliarden Euro wurden sowohl von der Europäischen Union als auch von privaten Interessenträgern im Rahmen des SESAR-Projektes investiert. SESAR liefert den digitalen europäischen Luftraum. Es liegt nun in unserer Hand, aber wir können uns nicht nur auf Investitionen in Technologien verlassen. Während der technologische Fortschritt durch das SESAR-Programm fortgeschritten ist, sind die Strukturreformen, die hier erforderlich sind, um sowohl die Kapazitäts- als auch die Umweltperformance zu erreichen, seit mehr als einem Jahrzehnt ins Stocken geraten und halten uns in der Vergangenheit fest. Hier haben die Mitgliedstaaten auch nicht mitgemacht, die standen auf der Bremse.

    Sehen Sie sich nun allein diesen Sommer an: Von Juni bis August haben die Flugsicherungen in Europa 16,9 Millionen – ich wiederhole: 16,9 Millionen – Minuten an Verspätungen im europäischen Netzwerk angehäuft. Das waren 41 % mehr als im gesamten Sommer 2023. Zum Vergleich: Im Jahr 2017 – im ganzen Jahr – gab es 15,9 Millionen Minuten. Wenn man die wetterbedingten Verspätungen herausnimmt, dann haben sich die Verspätungen im Vergleich zum Sommer 2023 um 82 % erhöht, und nur sieben nationale Flugsicherungen haben 85 % dieser Verspätungen verursacht.

    Das zeigt, dass die Situation von Jahr zu Jahr schlechter wird – leider –, insbesondere jetzt, da der Flugverkehr wieder das Niveau von vor der Pandemie erreicht hat. Diese Reform, die wir nun hier haben, die wird gebraucht, sie wird dringend gebraucht! Die Schaffung eines wirklich einheitlichen europäischen Luftraums wurde viel zu lange von den Mitgliedstaaten blockiert, die nicht bereit waren, sich auf eine Restrukturierung der Flugsicherung zum Wohle der Allgemeinheit, zum Wohle der Passagiere einzulassen.

    Dank der unermüdlichen Arbeit von Herrn Marian-Jean Marinescu, unserem Berichterstatter der EVP, für den einheitlichen europäischen Luftraum und für EASA in den letzten 16 Jahren werden wir nun in der Lage sein, diese neue Luftraumverordnung umzusetzen. Hier möchte ich aber auch an die großartige Arbeit von Herrn David Maria Sassoli, unserem verstorbenen Parlamentspräsidenten, erinnern, mit dem Herr Marinescu zusammen an der EASA-Grundverordnung gearbeitet hat. Ich möchte aber auch meinen sozialistischen Kollegen Bogusław Liberadzki nicht vergessen, der mit Herrn Marinescu stark zusammengearbeitet hat, so wie es jetzt Johan Danielsson mit mir tut.

    Gestatten Sie mir, Frau Präsidentin, die Mitgliedstaaten nun aufzufordern, die Fehler, die wir noch haben, nun zügig bei der Umsetzung umzuarbeiten. Es besteht ein riesiges Potenzial zum Wohle der Bürgerinnen und Bürger und um am Ende auch die Klimaziele einzuhalten. Also, wir müssen weiterarbeiten.

     
       

     

      Johan Danielsson, Föredragande. – Fru talman! Varje år genomförs omkring en miljard resor med flyg inom EU. Över tid har flyget blivit en allt viktigare del av vår vardag och vår ekonomi. För ett land som Sverige är en välfungerande flygtrafik avgörande. Vi har stora avstånd och är glest befolkade. Flyget knyter samman vårt land, vår kontinent och kopplar oss till omvärlden.

    Men sektorn står inför stora utmaningar. Under 2023 var nästan tre av tio flyg mer än 15 minuter försenade. Den genomsnittliga förseningen per flygning i Europa är cirka 18 minuter. Samtidigt står flyget globalt för omkring 2 till 3 % av våra totala koldioxidutsläpp.

    I dag liknar Europas luftrum ett stort pussel där varje land har sin egen bit, och tyvärr passar inte alla bitar ihop. Det leder till omvägar, till väntetider och till onödiga kostnader. Singel European Sky ska lösa delar av detta pussel. Efter mer än ett decennium av förhandlingar har vi äntligen nått fram till en överenskommelse.

    Lagstiftningen handlar om att göra flyget säkrare, punktligare och klimatvänligare. Det gynnar resenärer, det kommer att gynna industrin och det kommer att gynna klimatet. Och det är ett viktigt steg för att modernisera Europas luftrum.

    Jag vill tacka alla som arbetat med det här förslaget. Ett särskilt tack till tidigare föredragande Bogusław Liberadzki och Marian-Jean Marinescu, som jobbade med detta oförtröttligt under den föregående mandatperioden. Och så ett tack till Jens Gieseke, min medföredragande den här gången. Det visar vad vi kan åstadkomma om vi arbetar tillsammans över partigränserna i det här huset.

    Men låt mig vara tydlig: Singel European Sky är ingen revolution – det är en evolution. Det är en kompromiss som tar oss i rätt riktning. Vi kommer att se förbättringar och effektivitet och samordning. Men även om förändringarna kanske inte blev så stora som vi hade tänkt oss, innehåller det viktiga steg framåt.

    Vi stärker till exempel övervakningen på EU-nivå, vilket kommer att vara avgörande för att säkerställa att våra europeiska regler efterföljs. Förändringarna ger oss en god plattform att bygga vidare på mot ett enhetligt, effektivt och hållbart europeiskt luftrum.

    Enligt beräkningarna kan Singel European Sky bidra till att minska koldioxidutsläppen med upp till 10 % per flygning. Det här är ett viktigt steg och en del av lösningen för att också göra flyget mer hållbart.

    Men vi måste fortsätta arbetet på flera fronter. Vi kommer att behöva säkerställa en marknad för hållbara flygbränslen. Vi kommer att behöva fortsätta arbeta med ökad effektivitet i bränsleförbrukningen i flyget. Vi kommer också att se till att de fantastiska innovationer som är på väg fram, inte minst för att elektrifiera regionalflyget, kan få en praktisk omsättning på vår europeiska flygmarknad. Jag ser fram emot en bra debatt i dag och ett bra beslut senare i veckan. Och jag är hoppfull om att resultatet kommer att bli ett bättre europeiskt luftrum.

     
       

     

      Wopke Hoekstra, Member of the Commission. – Madam President, honourable Members, let me start by wholeheartedly thanking Mr Gieseke, Mr Danielsson and the TRAN Committee for all the great work that they have been doing. But let me also thank the former rapporteurs, Mr Marinescu and Mr Liberadzki, who might be with us virtually, for successfully concluding the interinstitutional negotiations with the Council on the regulation on the implementation of the Single European Sky.

    Ladies and gentlemen, our skies – and the two rapporteurs have said that – need fixing for the good of passengers, airlines and the environment. And to illustrate what is really at stake here, let me just recall this summer, when every second flight was delayed. Every second flight was delayed. And we all know how that feels and what it is like.

    Now some of those delays were unavoidable, for example because of bad weather conditions. But if you then go into the details, you will find that many of those delayed and cancelled flights could actually simply have been reduced by improving the way we manage air traffic today. And that is, of course, the ultimate aim. That is the ultimate aim of this new regulation.

    This agreement will update rules which are 15 years old. Let me be clear – and it was said here before – it is not as ambitious as the Commission, and I feel many in this room, would have wanted. And some would consider it far away from our original plan. But what is also true is that it does represent a clear step forward, and it improves the performance of the European airspace and the provision of air navigation services in the years to come.

    The new rules will strengthen the European network, tackling the fragmentation of European airspace, and they will reduce congestion and suboptimal flight routes, which today create delays for our passengers, extra fuel consumption and unnecessary CO2 emissions.

    Ladies and gentlemen, the agreement will also stimulate innovation and facilitate new services for air traffic management. It will create incentives to reduce the environmental footprint of aviation. For example, air navigation service providers will now have to introduce environment and climate performance targets on a wider range of services. The charges that airlines will need to pay for flying over our skies will be more favourable for those carriers emitting fewer CO2 emissions and with less impact on the environment.

    Finally, more know-how will be introduced when we regulate the performance of monopoly air navigation service providers. A new performance review board will be created to support the Commission, bringing independent expertise and improving the temporary solutions that we have today.

    Madam President, honourable Members, please allow me to conclude. More than 10 years have passed since the Commission presented what was then its original proposal. Believe me, it was not an easy task. In order to reap the benefits that the agreement brings, in my view it is now urgent that the Parliament finalises the adoption of the regulation by supporting the Council’s first reading position this week. Implementation work can then start as soon as possible.

    Thank you very much, once again, in particular to the TRAN Committee and the rapporteurs, and I’m very much looking forward to the continuation of our interaction today.

     
       

     

      Sophia Kircher, im Namen der PPE-Fraktion. – Sehr geehrte Frau Präsidentin, Herr Kommissar, liebe Kolleginnen und Kollegen! Wir reisen heute fast grenzenlos durch Europa. Doch über den Wolken, wo die Freiheit wohl grenzenlos scheint, stoßen wir im EU-Luftraum immer noch auf viele unsichtbare Grenzbalken – dadurch wird der europäische Luftverkehr stark eingeschränkt. Flugzeuge fliegen oft unnötige Umwege, weil veraltete nationale Vorschriften das erzwingen. Das führt zu Verspätungen, zu Kosten und 10 % mehr CO2-Ausstoß pro Jahr.

    Der Grund dafür: Der europäische Luftraum gleicht aktuell einem komplizierten Fleckerlteppich aus vielen nationalen Vorschriften. Statt eines gemeinsamen europäischen Systems mit einheitlichen Bestimmungen überwacht derzeit jeder Mitgliedstaat seinen Luftraum eigenständig, ohne eine ausreichende Zusammenarbeit mit anderen EU-Staaten.

    Mit diesem Gesetzespaket schaffen wir nun die Grundlage für mehr Zusammenarbeit mit anderen EU-Staaten, die wir so dringend brauchen, und somit werden wir in Zukunft günstiger, schneller und nachhaltiger fliegen können. Das ist eine Win-win-Situation für uns alle. Trotz dessen bleibt noch viel zu tun. Mit diesem Gesetzespaket gelingt uns ein wichtiger Schritt, aber es liegen noch viele Meilen vor uns.

     
       

     

      Matteo Ricci, a nome del gruppo S&D. – Signora Presidente, onorevoli colleghi, dopo oltre dieci anni di trattative, siamo finalmente giunti a un accordo sul cielo unico europeo, un tema che incide direttamente sulla vita quotidiana di milioni di cittadini.

    Tuttavia, dobbiamo essere chiari: il testo che adotteremo domani non è all’altezza delle aspettative. L’Europa ha bisogno di uno spazio aereo unificato con una gestione integrata e rotte dirette per ridurre ritardi, costi e soprattutto l’impatto ambientale.

    Oggi la frammentazione del nostro spazio aereo genera inefficienze gravi, costando ai passeggeri tempo e denaro. Ogni ritardo si traduce in maggiori emissioni e questo è un prezzo che il nostro pianeta non può più permettersi di pagare.

    Il regolamento che ci apprestiamo a votare promuove una maggiore cooperazione tra le autorità nazionali ma non impone regole vincolanti per una vera integrazione dello spazio aereo europeo. È un compromesso necessario, ma non sufficiente.

    Personalmente lo considero solo un primo passo. Non dobbiamo fermarci: l’Europa ha bisogno di un cielo unico europeo per essere più competitiva.

     
       

     

      Julien Leonardelli, au nom du groupe PfE. – Madame la Présidente, nous nous défions de tout projet qui penche vers le fédéralisme, à plus forte raison lorsqu’il est placé sous l’égide de la Commission européenne. Cela ne nous empêche pas d’être pragmatiques et responsables. Le projet de ciel unique européen vise, nous dit-on, à faciliter les trajets aériens à l’intérieur de l’Union européenne et à faire économiser 5 milliards d’euros par an de kérosène pour les compagnies aériennes.

    La Commission européenne ne pouvait que briller sur ce sujet technique, qui bénéficie d’un véritable consensus européen. Cette initiative, soutenue par une large majorité, ne devait être qu’une formalité. Mais la Commission, trop occupée à outrepasser ses compétences, en oublie ses objectifs premiers. Ce texte ne verra pas l’instauration d’un ciel unique européen, malgré des années de tractations. La montagne a accouché d’une souris. C’est en tout cas ce qui ressort des positions des professionnels du transport aérien, qui ne cachent pas leur déception à l’égard de ce texte.

    Le maintien d’un millefeuille à la fois administratif et technocratique ne plaît à personne. Pendant que l’Europe brasse du vent et se penche sur un texte ridicule, qui ne change rien tant ces changements sont insignifiants, les Etats-Unis, eux, produisent déjà en très grande partie la nouvelle génération de carburants par des subventions massives dans la recherche et l’industrie. En matière d’industrie comme d’énergie, les pays européens restent à la traîne, et la Commission européenne n’y est pas pour rien. Madame von der Leyen, sur la souveraineté faites preuve de plus de retenue, et sur le ciel unique montrez plus d’ambition.

     
       


       

    PREȘEDINȚIA: VICTOR NEGRESCU
    Vicepreședinte

     
       

     

      Jan-Christoph Oetjen, im Namen der Renew-Fraktion. – Herr Präsident, Herr Kommissar, verehrte Kolleginnen und Kollegen! Zehn Jahre hat es gedauert, dass wir dieses Gesetz, diesen einheitlichen europäischen Luftraum, auf den Weg gebracht haben. Nicht etwa, weil wir hier im Parlament lange gebraucht hätten, sondern es hat an den Mitgliedstaaten gelegen, die sich sehr lange hinter nationalen Kompetenzen versteckt haben. Diese nationalen Kompetenzen haben dazu gedient, zu kaschieren, dass es in den Mitgliedstaaten staatliche Monopole in der Flugsicherung gibt, die sie nicht angetastet sehen wollen. Und zur Wahrheit gehört: So richtig antasten tun wir sie jetzt auch nicht. Das, was wir machen, ist keine Reform, sondern ein Reförmchen, aber sie adressiert wichtige Themen.

    Wir kriegen endlich dieses performance review, das heißt endlich ein Benchmark für die Flugsicherung – ob sie gut funktionieren, ob sie genügend Leute haben, wie es klappt mit den Verspätungen, an denen – nicht immer, aber sehr häufig – eben auch die Flugsicherung mit Schuld ist.

    Wir haben eine Kapazitätsfrage, die sich dadurch adressieren lässt, und von daher können wir am Ende dieser Reform zustimmen. Aber sie ist weit von dem entfernt, was wir uns eigentlich erhoffen und was wir bräuchten, damit wir die Verspätungen in Europa endlich in den Griff bekommen.

     
       

     

      Merja Kyllönen, The Left-ryhmän puolesta. – Arvoisa puhemies, yhtenäisellä eurooppalaisella ilmatilalla on pitkä historia. Tavoitteena on vähentää viivytyksiä, lisätä turvallisuutta, lieventää ympäristövaikutuksia ja alentaa palvelujen tarjoamiseen liittyviä kustannuksia ilmailualalla. Euroopan ilmatilan pirstoutumisen vähentäminen tehokkaammalla ilmaliikenteen hallintajärjestelmällä on enemmän kuin tarpeellista. Vaikka politiikka on edennyt, niin SES ei ole onnistunut saavuttamaan täysin siltä odotettua edistystä. Tämän seurauksena Euroopan ilmatila on edelleen valitettavan pirstoutunut, kallis, tehoton ja kapasiteettiongelmat jatkuvat nopeasti kasvavan lentoliikenteen vuoksi. Työn on siis jatkuttava, paikoilleen emme voi jämähtää.

    Nykyinen sääntelykehys on pitkän aikavälin työ. Siinä on ollut mukana monenlaisia toimijoita. Siinä on ollut mukana monenlaista vääntöä sellaisia historian paloja, taisteluita, joita muun muassa Yhdistynyt kuningaskunta ja Espanja kävivät aikanaan, esimerkiksi Gibraltarin osalta. Kun Brexit poisti tämän esteen, komissio on muuttanut alkuperäistä ehdotustaan, ja hyvä niin.

    Jäsenvaltiot tarvitsevat laajaa yhteistyötä ja koordinointia toiminnallisissa ilmatilan lohkoissa, myös yhtenäisen eurooppalaisen ilmatilan sääntelykehyksen luomisen jälkeen. Tässä säädöksessä tunnustetaan olemassa olevien yhteistyöjärjestelyjen arvo ilmatilan hallinnan tehostamisessa ja lentoliikennevirtojen optimoinnissa tietyillä maantieteellisillä alueilla.

    Liikenteessä yleisesti, mutta lentoliikenteessä erityisesti, turvallisuusnäkökulma korostuu ja siksi kaikissa muutoksissa on mentävä ehdottomasti turvallisuusnäkökulma edellä. Safety first! Ja ihan pakko on sanoa rakkaat terveiset aina upealle taisteluparilleni Marinesculle. Ja rakkaat terveiset myös britti Jodie Fosterille, jota ei voi kyllä tämä talo unohtaa. Olisinpa videoinut parhaat palat uusille päättäjille. Piccolino, magnifico, amato David Sassoli.

     
       

     

      Siegbert Frank Droese, im Namen der ESN-Fraktion. – Herr Präsident! Seit 20 Jahren plant die EU einen einheitlichen Luftraum, aber wenig ist passiert. Wir teilen die Kritik der Airlines an dem Vorschlag der Kommission zum einheitlichen europäischen Luftraum. Es wird zu höheren Steuern führen, mehr Bürokratie, mehr Berichtspflichten – all das wollen wir nicht. Europa ist bisher schon ein sehr sicherer Luftraum. Warum also auf Biegen und Brechen die Kompetenzen der nationalen Flugsicherungsdienste beschneiden und alles in den EU-Topf werfen?

    Es muss nicht alles harmonisiert oder einheitlich zertifiziert werden. Wichtig dagegen wäre für uns die Abschaffung von Sanktionen, z. B. gegenüber Russland. Dann könnten Flugzeuge schneller und vor allem umweltschonender nach Asien fliegen und so CO2 reduzieren. Aber immer neue Steuern und Vorschriften vertreiben Fluggesellschaften aus Europa und verteuern das Fliegen unnötig. Wir wollen, dass auch in Zukunft sich der Arbeiter noch seinen wohlverdienten Urlaubsflug leisten kann und nicht nur die Eurokraten.

    Die Kommission könnte sich unserer Meinung nach mal mit wichtigen Dingen beschäftigen, beispielsweise mit der Migration, oder vielleicht gibt es in Zukunft auch Tausende von Abschiebeflügen zu organisieren – da würden wir gern mal einen schönen Vorschlag hören. Diesem Vorschlag, der hier vorliegt, können wir nicht zustimmen.

     
       

     

      Lukas Sieper (NI). – Herr Präsident, verehrte Damen und Herren! Der berühmte deutsche Lyriker Reinhard Mey sang einst „Über den Wolken, da muss die Freiheit wohl grenzenlos sein“, und in diesen Worten steckt aus europapolitischer Sicht endlos viel Wahrheit. Denn über den Wolken gibt es keine Grenzen, da ist man einfach irgendwo über Europa. Deswegen unterstütze ich die Aktualisierung des Einheitlichen Europäischen Luftraums, auch wenn sie halb so lange gedauert hat, wie ich auf dieser Welt bin.

    Gleichzeitig sollten wir aber nicht aufhören, wo wir jetzt angefangen haben, und über weitere Dinge nachdenken. Ich möchte Ihnen da zwei Sachen vorschlagen.

    Zum einen braucht es eine Gebührenanpassung für klimafreundliche Flüge. Wir haben in der Vergangenheit gemerkt, dass wir vor allen Dingen über so etwas die Entwicklung in der Gesellschaft steuern können, und der Klimawandel kennt nun mal keine Grenzen.

    Zum anderen benötigen wir einen einheitlichen europäischen Luft-Datenraum. Wir müssen also den Datenaustausch zwischen den Mitgliedstaaten im Luftverkehr optimieren und damit effizienter machen, denn auch Daten kennen keine Grenzen. Die Arbeit am Einheitlichen Europäischen Luftraum ist wertvoll – sie ist noch nicht vorbei.

     
       

     

      Alvise Pérez (NI). – Señor presidente, ¿de verdad este Parlamento no entiende lo que se pretende hoy aquí, imponiendo el Cielo Único Europeo?

    No se trata de fomentar la competencia, no se trata de mejorar ninguna descentralización ni de ahorrarnos un 10 % más de CO2. Esa es la gran farsa: ¿qué poder en Europa está más centralizado que la propia Comisión Europea? ¿Qué entidad ha centralizado más poder que la Comisión? Ninguna. ¿Y siguen de verdad creyéndose estas iniciativas en pro del supuesto medio ambiente?

    Lo que busca con esto la Comisión es que hasta nuestros cielos dependan de una nueva entidad europea bajo el control férreo de Von der Leyen con la excusa del CO2. El Cielo Único Europeo no es más que un instrumento para expandir la supervisión y la regulación comunitaria imponiendo aún más objetivos ambientales, aún más cargas y aún más tarifas contra los usuarios de este continente. La señora Von der Leyen demuestra un desprecio absoluto por la soberanía de los países, y esta Cámara, también.

    Y aquí, un orgulloso español les responde que el desprecio, evidentemente, es mutuo. Solo que hay una diferencia esencial: quien parasita y esclaviza a nuestro país es ella, mientras que nosotros solo anhelamos libertad.

    Si queremos preocuparnos por el cielo europeo, defendámonos de las intrusiones y las amenazas militares por cielo, mar y aire con las que Marruecos y todas las falsas ONG del sur de Europa están atentando contra nuestro país.

    Esta no era la Europa que nos prometieron. Esta es una Europa mesiánica en la que no nos reconocemos.

     
       

       

    Intervenții la cerere

     
       

     

      Maria Grapini (S&D). – Domnule președinte, domnule comisar, stimați colegi, zece ani am fost în Comisia pentru transport și am tot dezbătut nevoia de îmbunătățire a Cerului unic european. Transportul prin aviație este extrem de important. Vorbeam mai devreme la raportul domnului Letta despre conectivitate, despre libera circulație. Domnule comisar, am patru zboruri pe săptămână – nu numai datorită condițiilor meteorologice sunt întârzieri. Întârzierile, așa cum ați spus și dumneavoastră, sunt frecvente și din alte cauze: lipsa de organizare, să stai pe pistă să aștepți că nu ai culoar de zbor.

    Asta înseamnă că este nevoie să aplicăm acest regulament și îl susțin, pentru că s-a lucrat la el, îmbunătățește Cerul unic european și cred că avem nevoie de un transport reformat și pe aviație pentru, sigur, eficiență economică în piața internă și, de ce nu, pentru protejarea drepturilor pasagerilor. Prețurile nu se schimbă când ai întârziere, dar ajungi foarte târziu la destinație și câteodată îți pierzi practic întâlnirile pe care ți le-ai programat.

     
       

     

      Γεάδης Γεάδη (ECR). – Κύριε Πρόεδρε, η εισήγηση για δημιουργία ενιαίου ευρωπαϊκού ουρανού αποτελεί μια προσπάθεια για βελτίωση της ασφάλειας, της αποδοτικότητας και της περιβαλλοντικής βιωσιμότητας των αεροπορικών υπηρεσιών, όπως έχει αναφερθεί.

    Όμως, πώς μπορούμε να μιλάμε για ασφάλεια όταν κλείνουμε τα μάτια στις παρανομίες; Θα γίνω πιο συγκεκριμένος. Η λειτουργία του παράνομου αεροδρομίου της κατεχόμενης Τύμπου στην Κύπρο θέτει σε κίνδυνο τις πτήσεις και χιλιάδες πολίτες καθημερινώς, αφού ελλοχεύει τεράστιος κίνδυνος για αεροπορικά ατυχήματα.

    Διερωτώμαι: δεν θα αντιδρούσατε αν λίγα μέτρα από το αεροδρόμιο της Φρανκφούρτης, δίπλα από το αεροδρόμιο στο Παρίσι, πλησίον του αεροδρομίου της Ρώμης, των Βρυξελλών, της Μαδρίτης, του Βερολίνου, λειτουργούσε ένα παράνομο αεροδρόμιο με δικούς του κανόνες; Φυσικά.

    Επομένως, ας αφήσουμε τα λόγια και ας περάσουμε στις πράξεις, που δεν είναι ο συντονισμός και η επικοινωνία με κατοχικές αρχές —κάτι που θα οδηγούσε στην κανονικοποίηση της παρανομίας— αλλά η απαγόρευση της λειτουργίας του, που θα συνοδεύεται με αυστηρότατες κυρώσεις σε αεροπορικές εταιρείες που χρησιμοποιούν το παράνομο αεροδρόμιο.

     
       

     

      João Oliveira (The Left). – Senhor Presidente, é certo que esta nova versão do Regulamento Céu Único Europeu não vai tão longe como a posição que o Parlamento Europeu havia aprovado, com tudo o que ela representava de ataque sem equívocos à soberania nacional, numa abordagem abertamente mercantilista e de liberalização ainda maior do setor aéreo, visando a sua concentração e centralização. Mas, esses não deixam de ser traços que persistem no documento final, mesmo que de forma matizada, traços que rejeitamos.

    Em nome do que esta proposta não é, não faltará certamente quem procure ir além dela, nomeadamente em Portugal, dando continuidade e consequência às ameaças que têm recaído sobre a NAV, com vista ao desmembramento da sua atividade, com prejuízo para a soberania nacional e para a economia.

    Pela nossa parte, daqui reafirmamos que continuaremos a intervir, rejeitando o caminho de liberalização do controlo aéreo e em defesa da NAV, empresa pública estratégica para o desenvolvimento nacional.

     
       

       

    (Încheierea intervențiilor la cerere)

     
       


     

      Wopke Hoekstra, Member of the Commission. – Mr President, ladies and gentlemen, dear Members, let me mention two quick points in response. The first one is on sovereignty. For those who are concerned about the impacts on the sovereignty of Member States over their airspace, let me be clear, and let me underline that all the provisions aim to foster better coordination within Europe. Member States will continue to decide whether and which parts of their airspace they open or they close. Full stop. It’s that simple. So I feel sovereignty will continue to be fully in place.

    Secondly, in response to the Members who have been speaking, let me reiterate what I said in the first term, and that is that more is needed. More needs to be done, and more today would have been better. But politics is also quite often the art of the possible. We are where we are today. Let’s seal this now and then let’s move forward from there.

     
       

     

      Jens Gieseke, Berichterstatter. – Herr Präsident, Herr Kommissar Hoekstra, liebe Kolleginnen und Kollegen! Ich danke für diesen konstruktiven Austausch. Obwohl das natürlich ganz rechts und ganz links schwerfällt, bei so einem sachlichen Thema konstruktiv mitzuarbeiten, glaube ich, dass wir insgesamt eine gute Debatte hatten.

    Der einheitliche europäische Luftraum zeigt einmal mehr unser europäisches und auch unser EVP-Engagement für die kontinuierliche Unterstützung der Fluggäste, der Luftfahrtindustrie, der Forschung und Entwicklung, auch im Luftfahrt- und im Raumfahrtsektor, sowie auch die Einhaltung der Umweltversprechen. Wir streben ganz sicher nach effizienteren Flugsicherungsdiensten, weniger Verspätungen, einem geringeren ökologischen Fußabdruck und auch geringeren Kosten für Passagiere und Fluggesellschaften.

    Der einheitliche europäische Luftraum ist ein erster Schritt vorwärts, um die Engpässe im Luftraum zu beseitigen, um endlich einen wirklich einheitlichen EU-Raum zu schaffen, ohne die nationale Souveränität zu beeinträchtigen. Das wird dann auch zu weniger Kosten und zu einer besseren Umweltleistung führen.

    Ich glaube, morgen kann wirklich ein guter Tag werden für Europa. Von daher mein klarer Appell an alle Kolleginnen und Kollegen, morgen pünktlich zur Abstimmung zu kommen und für diese Neufassung zu stimmen. Ich stimme mit dem Kommissarsanwärter, aktuellen Kommissar und demnächst hoffentlich wiedergewählten Kommissar Hoekstra überein: Das ist ein erster Schritt heute, es werden weitere in den nächsten fünf Jahren folgen müssen. Aber für die EVP kann ich sagen: Wir sind bereit, diese Arbeit fortzusetzen. Unsere Bürger werden es sicherlich danken.

     
       

     

      Johan Danielsson, Föredragande. – Herr talman! Jag blir glad över det engagemang som visats under debatten. Avslutningsvis vill jag betona att vårt arbete inom flygsektorn inte slutar här. Vi har, som många konstaterat, fortfarande mycket att göra för att säkerställa en rättvis och hållbar flygsektor i Europa.

    Smidiga gränsöverskridande transporter är viktiga men får aldrig ske på bekostnad av arbetstagares rättigheter. Under denna mandatperiod hoppas jag därför att vi kan ta itu också med andra viktiga frågor som berör sektorn.

    En revidering av EU:s förordning om luftfartstjänster står högt på agendan. För det första måste vi stärka reglerna kring så kallad wet leasing, där flygbolag hyr in plan med besättning. Wet leasing ska naturligtvis kunna användas för att möta oförutsedda händelser, men inte för att konkurrera med löner och arbetsvillkor.

    Utvecklingen – där på ytan seriösa flygbolag skapar dotterbolag med enda syftet att pressa tillbaka personalens arbetsvillkor – är inte värdig och måste få ett slut. För det andra behöver vi tydligare definitioner kring personalens hemmabas. Vi har sett hur bolag i dag utnyttjar skillnader i nationell lagstiftning för att pressa ner lönekostnaderna. Också detta måste få ett slut.

    Med det sagt återstår nu att genomföra Single European Sky. Det kommer att kräva fortsatt hårt arbete från EU-kommissionen i övervakningen av de regler som vi nu ändå får på plats, för att säkerställa att det verkligen blir ett steg framåt och inte ett slag i luften. Jag hoppas att alla är här och röstar för förslaget i morgon.

     
       

     

      President. – The debate is closed.

    The vote will take place tomorrow.

     

    15. A stronger Europe for safer products to better protect consumers and tackle unfair competition: boosting EU oversight in e-commerce and imports (debate)


     

      Didier Reynders, membre de la Commission. – Monsieur le Président, Mesdames et Messieurs les députés, je suis ravi d’être parmi vous aujourd’hui pour débattre des défis que pose le commerce électronique, tant en matière de protection des consommateurs que de concurrence loyale ou de durabilité. Ces dernières années, des milliards de colis individuels ont été expédiés directement aux consommateurs de l’Union, notamment par voie aérienne, et de nouveaux acteurs du commerce électronique, principalement installés en dehors de l’Union, dominent désormais le marché. Quatre milliards de colis devraient être livrés en 2024.

    La Commission est consciente que cet afflux de marchandises achetées en ligne pose des défis en matière de conformité au cadre juridique applicable et de sécurité, de concurrence déloyale et de durabilité. En effet, bon nombre de ces produits s’avèrent dangereux, non conformes ou contrefaits.

    En raison de l’urgence de la situation, nous devons identifier une réponse européenne collective pour garantir la sécurité et la conformité des produits vendus sur ces plateformes de commerce électronique situées dans des pays tiers, pour préserver les consommateurs de pratiques commerciales déloyales et pour assurer des conditions de concurrence justes et équitables aux entreprises européennes.

    The Commission is ready to act in cooperation with the market surveillance authorities, the consumer protection and customs authorities, as well as with the digital services coordinators under the DSA to effectively enforce Union legislation and increase the controls on those platforms and products. We have instruments at our disposal that we are already using.

    First, the Digital Services Act is a powerful tool and it is a priority to enforce this regulation. The Commission is fully committed to ensuring strong and effective enforcement against very large online platforms, notably marketplaces not complying with all rules, which risk fines up to 6% of their global turnover. The DSA gives the Commission unprecedented enforcement powers that are already available. The recent enforcement action by the Commission, which resulted in TikTok’s commitment to withdraw its ‘lite rewards’ system from the EU market, as it raised concerns of addictiveness, is a good example of what the DSA can deliver for the whole European Union.

    More specifically, regarding e-commerce, the Commission has already launched an investigation in relation to AliExpress’ practices, including on suspicions related to the risk of dissemination of illegal products and the possible negative impact to consumer protection. We have also recently designated Temu and Shein as very large online platforms under the DSA, and already launched investigative actions in relation to these two online marketplaces. Consumer protection and compliance by online marketplaces is and will remain one of our enforcement priorities. We take this responsibility seriously and will not refrain to act decisively. The Commission will also coordinate closely with the digital services coordinators, which are responsible for the smaller online marketplaces, to ensure that smaller online marketplaces also follow the rules, and that these rules are consistently applied in the European Union. The European Board for Digital Services is crucial in this respect.

    Second, customs authorities are the first line of defence when it comes to products imported from third countries. They are also key actors in the supply chain to identify and suspend the release of non-compliant and dangerous goods. The customs reform, proposed by the Commission in 2023, is currently being discussed by the European Parliament and the Council. Under this proposed reform, the implementation of an EU customs data hub would enable risk management at EU level, making the enforcement of compliance with product requirements more targeted and effective. Additionally, the proposal includes an abolition of the current threshold that exempts goods valued at less than EUR 150 from customs duties. These measures would be important tools for combating fraud and abuse. However, customs authorities cannot act alone. It is crucial for them to collaborate with market surveillance authorities and digital services coordinators to combine their tools, capacity and expertise.

    Third, the Consumer Protection Cooperation Network, under the coordination of the Commission, has carried out several enforcement actions in recent years against key market players, such as Amazon and AliExpress, to bring them into line with EU consumer protection legislation. In May, the consumer organisation BEUC informed the Commission about practices of the e-commerce platform Temu and its alleged non-compliance with, among others, EU consumer laws. The Commission has immediately informed the CPC Network about this complaint, and discussions under that format are ongoing. Compliance by major e-commerce players, including those targeting European consumers from third countries, is a top priority for the Commission and national authorities. The Commission will continue to fully support and coordinate the enforcement work of the network.

    Looking ahead, it will be essential to further tackle challenges with e-commerce platforms and strengthen measures to prevent non-EU compliant products from entering the EU market. This would include ensuring an optimal articulation between the General Product Safety Regulation, the Market Surveillance Regulation and the Digital Services Act. To further improve online product safety and compliance with relevant rules, it will be our priority to fully use the enforcement toolbox provided for under these regulations, for example, by organising product safety control to check and improve compliance of the e-commerce sector with EU product safety requirements, organising joint product sampling and testing activities involving online mystery shopping, and facilitating further the cooperation between market surveillance and customs authorities to give an unified response to the challenges of e-commerce.

    To ensure that manufacturers outside the EU comply with all rules, the new GPSR also introduces a new obligation to appoint a responsible person for their products. This will guarantee traceability and responsibility for any goods sold on the open market. To address the issue at its source, it is also paramount to continue cooperating with manufacturing third countries. We are, for example, committed to continue the awareness-raising and training activities on EU product safety rules with Chinese companies. Apart from legal obligations, it is also important to explore voluntary cooperation mechanisms, such as the product safety pledge, which has enabled the removal of close to 60 000 unsafe products listings in the past six months.

    It will also be crucial to further improve the current enforcement framework for cross-border infringement of EU consumer law, in order to preserve the level playing field in the Union and the competitiveness of EU businesses. To achieve this aim, we will continue to explore possible approaches to strengthen the Commission’s role in specific circumstances that affect consumers throughout the Union and to further improve the enforcement cooperation among national authorities. Moreover, the Commission encouraged the swift adoption of some proposed legislative initiatives, namely the ‘VAT in the digital age’ package and the customs reform, that aim to structurally improve the transparency and control on the flow of goods entering and leaving the union, starting by e-commerce goods.

    I thank you for your attention. Of course, I am now looking forward to our debate and to try to collect your proposals, remarks, or maybe some criticism.

     
       

     

      Andreas Schwab, im Namen der PPE-Fraktion. – Herr Präsident, Herr Kommissar, liebe Kolleginnen und Kollegen! Onlineplattformen haben die Art und Weise, wie Verbraucher einkaufen, grundlegend geändert. Verbraucherinnen und Verbraucher sind nicht mehr auf lokale Anbieter beschränkt, sondern können Waren bei internationalen Händlern einkaufen, wodurch ihre Auswahl erweitert wird und sie oft bessere Preise finden. Sie haben ja gerade angesprochen, Herr Kommissar: 4 Milliarden Pakete allein in diesem Jahr zeigen, dass die europäischen Verbraucherinnen und Verbraucher an internationalen Produkten interessiert sind und auf den besten Preis achten. Aber viele Drittstaatenplattformen stehen in der Kritik wegen mangelhafter Produktqualität, unzureichender Kontrollen und damit unfairer Wettbewerbsbedingungen.

    Deswegen ist es gut, Herr Kommissar, dass Sie den Dreiklang aus Maßnahmen, die greifen können, dargestellt haben. Zoll: Wir haben nach wie vor 27 unterschiedliche Zollsysteme, obwohl das einheitliche europäische Zollrecht angewendet werden muss, und es wird leider unterschiedlich angewendet. Wir haben zum Zweiten die Marktaufsichtsbehörden, die alle in nationaler Hand sind und unterschiedlich stark ausgestattet sind, und wir haben das Gesetz über digitale Dienste. Und hier, Herr Kommissar, hätte ich mir etwas mehr erwartet, denn das Gesetz über digitale Dienste wird jetzt schon zum zweiten Mal gegenüber Temu in Anwendung gebracht – aber immer mit der Bitte um Auskunftserteilung und nicht mit Entscheidungen.

    Hier müssen wir schneller vorankommen, denn mit dem Gesetz über digitale Dienste und dem Gesetz über digitale Märkte hat das Europäische Parlament hier – dieses Haus – in den vergangenen Jahren wichtige Schritte unternommen, um das Vertrauen der Bürger in die Sicherheit des Internets zu stärken und um europäischen Unternehmen fairen Wettbewerb anzubieten. Daran wollen wir festhalten, und deshalb ist die Europäische Kommission gefordert, hier Schritte folgen zu lassen.

     
       

     

      Laura Ballarín Cereza, en nombre del Grupo S&D. – Señor presidente, señor comisario, un 71 % de la población europea compra bienes y servicios en línea. El comercio en línea es cómodo, es barato, pero tiene muchos riesgos. Por ello, regularlo bien es ya inaplazable.

    Sabemos que plataformas de comercio electrónico, como Amazon, Aliexpress, Temu o Shein, están afectando a nuestro comercio en tres aspectos clave.

    En primer lugar, en la seguridad de productos que consumimos: juguetes, ropa, etc. Todos conocemos esos productos que nos llegan a casa y que no cumplen las condiciones mínimas.

    En segundo lugar, en el enorme impacto que tienen sobre el comercio local de nuestros municipios, que está siendo asfixiado por la competencia desleal de estas plataformas a nuestras pymes europeas.

    Y, en tercer lugar, en el medio ambiente, porque sabemos que estas empresas abandonan a su suerte toneladas de paquetes devueltos por clientes en Europa y en otros continentes, lo que pone en riesgo la salud de todo el planeta.

    Para eso tenemos leyes, apliquémoslas: más controles en las aduanas, y comercio y consumo responsable para proteger nuestro medio ambiente, a nuestros consumidores y nuestro comercio local.

     
       

     

      Virginie Joron, au nom du groupe PfE. – Monsieur le Président, chers collègues, Monsieur le Commissaire, nous voici en marche vers cinq ans de teutonneries supplémentaires. On avait espéré en 2019 que le premier mandat von der Leyen ferait état d’une gestion saine et honnête. Mais on a eu le matraquage des automobilistes, un dérapage budgétaire et les fourberies de Pfizer.

    Ce soir, nous parlons donc de la surveillance européenne des marchés du commerce en ligne, pendant que nos commerces de proximité ferment les uns après les autres. La vente de produits dangereux, illicites, contrefaits ou volés est encore légion sur les grandes plateformes. Cette lutte, c’était pourtant ce que vous aviez promis lors de l’adoption de toutes les législations précédentes sur la question. Votre slogan? «Le règlement sur les services numériques protégera vos enfants.» Aujourd’hui, ce n’est plus un règlement sur les services numériques, mais un règlement sur la surveillance numérique qui a été mis en place, sous l’impulsion du démissionnaire Thierry Breton. Les associations de consommateurs ont signalé en avril dernier le géant chinois Temu, parce qu’il n’assurait pas l’identification des vendeurs. C’est l’article 30 du règlement sur les services numériques. Ces mêmes associations ont fait état de cas où le consommateur est manipulé par des prix qui changent ou qui ne correspondent pas au produit choisi. C’est l’article 25 du règlement sur les services numériques. On a eu la directive de 1998 sur les indications de prix, la directive de 2005 sur les pratiques commerciales prohibées, les nouvelles règles de sécurité des jouets ou encore la réforme du code des douanes.

    Mais la réalité, c’est une jungle de normes qui empêchent nos entreprises françaises ou européennes de se développer, et des pays tiers, comme la Chine, leader mondial du commerce électronique, qui contournent sans problème nos règles – dixit un inspecteur de l’OLAF – ou, pis, qui bénéficient d’exemptions des frais de douane pour les achats dont la valeur ne dépasse pas 150 euros. Une jungle où, finalement, c’est Bruxelles qui tire une balle dans le pied du commerce électronique européen.

     
       

     

      Piotr Müller, w imieniu grupy ECR. – Panie Przewodniczący! Panie Komisarzu! Szanowni Państwo! Regulacje dotyczące bezpieczeństwa produktów w Europie są niezwykle ważne. One powodują, że z jednej strony konsumenci są bezpieczni, a z drugiej strony, że standaryzujemy pewnego rodzaju rozwiązania produkcyjne w Europie, co oczywiście też przynosi wymierne korzyści i bezpieczeństwo dla konsumentów. Jednak widzimy tę rosnącą konkurencję ze strony w szczególności rynków azjatyckich i moją obawą jest to, że te przepisy w praktyce nie będą obowiązywały właśnie wobec tych krajów, które dostają się na rynek europejski w sposób inny niż produkcja na naszym rodzimym rynku.

    W związku z tym mam pytanie do Pana Komisarza, jakie działania tutaj można byłoby podjąć (chociażby być może zapisując w nowej perspektywie budżetowej, nad którą będziemy pracować, dodatkowe środki dla urzędów, dla instytucji krajowych i unijnych, ale przede wszystkim krajowych, bo one najczęściej kontrolują jakość produktów), aby właśnie rzeczywista kontrola tych produktów, które pochodzą w szczególności z Azji, miała miejsce.

     
       

     

      Svenja Hahn, im Namen der Renew-Fraktion. – Herr Präsident! Wenn Spielzeuge für Babys so leicht auseinanderfallen, dass sie daran ersticken können, dann haben Eltern zu Recht Angst. Vor allem, wenn Untersuchungen zeigen, dass mehr als die Hälfte von Spielzeugen aus Drittländern wie China gefährlich ist.

    Wenn Designs von kleinen europäischen Designern kopiert werden und die Klamotten aus fragwürdiger Produktion mit giftigen Chemikalien belastet sind und dann auch noch über Plattformen wie Temu und Shein zu Billigpreisen verschleudert werden, dann leiden wir Verbraucher, unsere Umwelt und unsere Unternehmen, die sich an Recht und Gesetz halten.

    Illegale und unsichere Produkte dürfen nicht in unseren Binnenmarkt kommen, am besten, weil sie bereits vor Verkauf gestoppt werden. Die Kommission und die Mitgliedstaaten müssen geltendes Recht rigoros durchsetzen: das Gesetz über digitale Dienste und die neuen Regeln zu Produktsicherheit. Wir müssen gemeinsam unsere Marktüberwachung und unseren Zoll stärken. Vor allem die Digitalisierung des Zolls muss schneller vorangehen, damit wir die digitale Voranmeldung und auch den Wegfall der Freigrenze für illegale Produkte haben können, damit wir illegale Produkte aus unserem Markt fernhalten können.

    Ich baue darauf, dass die Kommission zügig einen Aktionsplan mit den Mitgliedstaaten umsetzen wird, damit unsere Kleinsten sicher sind, damit Shopping weder zur Ausbeutung von Umwelt noch von Menschen führt und Wettbewerb fair ist.

     
       

     

      Saskia Bricmont, au nom du groupe Verts/ALE. – Monsieur le Président, Monsieur le Commissaire, vous l’avez dit: Temu, Shein, AliExpress, Amazon et de plus petites plateformes inondent le marché européen de produits à faible coût. Mais, derrière ces bas prix, il y a des coûts énormes, notamment des techniques de manipulation en ligne incitant à l’hyperconsommation ou des produits de mauvaise qualité pouvant s’avérer dangereux pour la santé et la sécurité.

    Une enquête a même révélé que 80 % des jouets testés ayant été importés par le biais de ces plateformes ne respectaient pas les normes de sécurité européennes. Cela induit aussi une concurrence déloyale pour les entreprises européennes qui respectent les normes sociales, environnementales, de produits, de sécurité. Ces normes existent au niveau européen pour de bonnes raisons: la protection des consommateurs, des travailleurs, de l’environnement. Elles doivent donc être respectées par tout le monde, y compris par les entreprises importatrices et par les plateformes de pays tiers.

    Des centaines de milliers de colis arrivent chez nous tous les jours, en un clic et sans avoir fait l’objet de contrôles. Autant de produits potentiellement dangereux, qui ne respectent pas les normes européennes. Cette concurrence déloyale touche tous les secteurs et constitue souvent un frein au développement de filières locales durables et sociétalement responsables. C’est le cas notamment du secteur textile, où la concurrence déloyale de l’«ultrafast fashion» venant des plateformes chinoises menace l’émergence d’un secteur textile durable en Europe.

    L’Union européenne est bien là pour protéger les consommateurs et nos entrepreneurs: il faut donc assurer effectivement le respect des règles, la transparence et l’information des consommateurs, mais aussi des contrôles douaniers renforcés et les moyens nécessaires à de tels contrôles, des droits de douane même pour les achats de moins de 150 euros, et un renforcement des sanctions à l’égard des plateformes qui ne respectent pas les règles.

     
       

     

      Hanna Gedin, för The Left gruppen. – Herr talman! Jag ska börja med att säga att jag är glad att vi har den här diskussionen, för situationen är ohållbar.

    Från Vänstern har vi länge krävt ett stramare regelverk för e-handelsplattformar. Ett test som nyligen gjordes av leksaksbranschen visar att åtta av tio leksaker som importeras till EU och kan köpas på olika internetsajter riskerar att kväva eller förgifta barn – kväva och förgifta våra barn.

    De uppfyller inte EU:s säkerhetskrav. Vår uppgift som lagstiftare är att se till att minska risken för olyckor, att se till att medborgarna är trygga och säkra. Det gör vi genom att premiera miljövänliga och säkra produkter, samtidigt som vi ser till att arbetsvillkoren för dem som producerar de här sakerna är bra.

    Det är inte bara barn och andra konsumenter i Europa som riskerar att skadas. Det finns återkommande indikationer på att många av de här produkterna, förutom att de är skadliga, dessutom är tillverkade genom tvångsarbete.

    Kommissionen måste agera – inte bara för att den här slapphäntheten mot utländska internetsajter konkurrerar med lägre standarder och sämre arbetsvillkor än varor som produceras i enlighet med EU-lagstiftning. Dagens regelverk leder faktiskt till stora risker för alla medborgare – inte minst för våra barn. Lösningen måste vara att även utländska sajter får samma skyldigheter som inhemska aktörer, att tullen får större resurser och att varor som importeras, till exempel från Kina, inte längre ska subventioneras när det kommer till exempelvis fraktkostnader.

     
       

     

      Zsuzsanna Borvendég, a ESN képviselőcsoport nevében. – Tisztelt Elnök Úr! A helyi termelők által helyben előállított termékek védik a környezetet és a nemzetgazdaságot is erősítik, vagyis minden szempontból a társadalom jólétét szolgálják. Emiatt kezdett pártom, a Mi Hazánk Mozgalom hazai termelői vásárokat szervezni Magyarországon, ezzel is népszerűsítve a jó minőségű helyi termékek fogyasztását. Az élelmiszeripar különösen veszélyeztetett ezen a területen. Vissza kell szorítani a globális élelmiszerláncok sokszor gyenge minőségű, földrészeken át utaztatott, agyonvegyszerezett termékeinek dömpingjét.

    A multik gazdasági érdekei nem írhatják felül az emberek egészséges élethez való jogát, de meg kell akadályozni azt is, hogy politikai elfogultság alapján olyan mezőgazdasági termékeknek nyissunk szabad utat, amelyek nem felelnek meg az EU-s előírásoknak, ahogy az számos ukrán termék esetében megtörténik. Azonnali hatállyal meg kell tiltani a harmadik országokból érkező hamisított méz importját is. Ennek érdekében egy előterjesztést is készítettem, amelyet az ESN frakció benyújtott, de az AGRI bizottság napirendre sem volt hajlandó ezt tűzni. Kérem, gondolják ezt át újra!

     
       


     

      Christel Schaldemose (S&D). – Hr. Formand, kommissær. Flere og flere handler på nettet. Legetøj, tøj, gaver. Det er nemt, det er bekvemt, og det er praktisk. Men hvis man handler på platforme som Temu, så kan det altså skade både din sundhed, vores miljø og den europæiske konkurrenceevne, og alt for mange af f.eks. Temu’s produkter de lever simpelthen ikke op til de europæiske regler. De er sundhedsskadelige, miljøskadelige, og så er de også ødelæggende for vores konkurrencesituation for vores europæiske virksomheder. Derfor er der brug for, at der sker noget. Vi har fået mange nye regler, men vi har brug for, at de bliver håndhævet. Derfor vil jeg gerne opfordre EU-Kommissionen til at komme i gang med at håndhæve reglerne og gøre det lidt hurtigere, end det, der sker i dag. Vi har fået nogle gode regler i det, jeg sagde. Spørgsmålet er, om de er gode nok, spørgsmålet er, om der skal mere til. Noget af det, som jeg tror, vi skal kigge på, er, om vi egentlig ikke burde give disse handelsplatforme et importøransvar, så de fik et meget konkret og direkte ansvar for at sikre, at de produkter, de sælger, overholder de europæiske regler. Så hurtigere og bedre, og hvis ikke det er nok, så tror jeg, at vi skal se på, om der skal endnu flere strammere regler til.

     
       

     

      Ernő Schaller-Baross (PfE). – Tisztelt Elnök Úr! A termékbiztonság egyre sürgetőbb kérdés Európában, különösen az e-kereskedelem gyors ütemű terjedése révén. Mondjuk ki őszintén, a piacfelügyelet rendszere ma nem elég hatékony, hogy lépést tartson a digitális világ kihívásaival. A fellépés hiánya komoly kockázatot jelent polgáraink biztonságára nézve, és hosszú távon veszélyezteti Európa versenyképességét is. Az e-kereskedelem gyors üteme és a határokon átnyúló eladások miatt a tagállami hatóságoknak nehéz feladatuk van, hogy minden egyes terméket ellenőrizzenek.

    Így a fogyasztók biztonsága gyakran veszélybe kerül, és a szabályozás átláthatóságának fenntartására s kihívásokkal szembesül. Az Európai Parlament nem blokkolhatja tovább a háromoldalú tárgyalásokat, kezdje el a munkát. Kezdje el a termékbiztonságot érintő javaslatok, többek között a játékbiztonságról szóló szabályok tárgyalását is. Ne hagyjuk, hogy a késlekedés ára az európai polgárok vagy gyermekeink biztonsága legyen! Tegyük meg a szükséges lépéseket közösen, hogy Európa továbbra is az innováció és a biztonságos termékek kontinense lehessen. A jelenlévő vagy nem jelenlévő TISZA párti képviselőknek pedig azt üzenem, hogy ne féljenek, ha kérdést tesznek föl ebben a Házban, ebben a teremben válaszolni is lehet.

     
       

     

      Denis Nesci (ECR). – Signor Presidente, onorevoli colleghi, la protezione dei consumatori e la lotta alla concorrenza sleale, soprattutto nel commercio online, sono una questione prioritaria per l’Europa.

    Troppi prodotti non conformi agli standard europei continuano a entrare nel nostro mercato attraverso l’e-commerce, mettendo a rischio la sicurezza dei consumatori e penalizzando le nostre aziende, in particolare le piccole e medie imprese italiane ed europee.

    Non possiamo più accettare che le nostre imprese siano costrette a competere ad armi impari con prodotti di bassa qualità provenienti da paesi che non rispettano le nostre regole. Le aziende che rispettano rigorosamente la normativa europea su sicurezza e qualità sono penalizzate da una concorrenza sleale.

    Dobbiamo rafforzare i controlli alle frontiere, garantire che i prodotti importati rispettino gli stessi standard che le nostre imprese sono tenute a seguire. Chiediamo che l’Unione europea intervenga con decisione: è fondamentale che le piattaforme di e-commerce non diventino un canale privilegiato per la vendita di prodotti non conformi. Questo è un punto essenziale per difendere la sovranità economica italiana e quella europea, proteggendo il nostro tessuto produttivo.

    Come abbiamo spesso sottolineato, la nostra economia non può continuare a subire le conseguenze di politiche commerciali che favoriscono attori esterni a scapito delle nostre eccellenze.

     
       


     

      Majdouline Sbai (Verts/ALE). – Monsieur le Président, chers collègues, en dix ans, le chiffre d’affaires du commerce électronique a été multiplié par trois. Rien qu’en France, le chiffre d’affaires du site Shein se monte à 1,63 milliard d’euros. C’est un tsunami économique.

    Alors oui, oui à la protection des consommateurs, oui à la fin de l’exonération des droits de douane en dessous de 150 euros d’achats, oui à une enquête précise sur les soupçons de subventions chinoises et de concurrence déloyale, oui à la fin de la publicité mensongère, oui, encore oui au contrôle sur la toxicité, la propriété intellectuelle et la sécurité des données personnelles.

    Oui, mais quand? Combien d’enseignes et de marques européennes auront fermé entre-temps? Combien de chaussures pour enfants intoxiquées au plomb aurons-nous achetées? Combien de jeunes auront adopté des comportements de consommation détestables pour notre avenir?

    Alors, oui à tout cela, mais quand? Je vous le dis: agissons maintenant!

     
       

     

      Leila Chaibi (The Left). – Monsieur le Président, chers collègues, des ballons de baudruche à gonfler soi-même bourrés de substances cancérigènes, des jouets comprenant des pièces qui peuvent être avalées, des casques de moto pour enfants qui, en fait ne protègent pas du tout, des détecteurs de fumée qui ne détectent pas la fumée… Ces produits dangereux ne sont pas des exceptions: ils pullulent sur des plateformes de vente en ligne comme Amazon, Temu ou Wish. Les associations de consommateurs les ont testées, et le constat est alarmant.

    Comment est-il possible que ces objets puissent envahir le marché européen? La réponse est simple. Pour les géants du commerce électronique, la priorité c’est: les profits, et le marché européen, c’est le jackpot.

    C’est un triple jackpot, en réalité. D’abord, un jackpot sur les normes de sécurité, car ces plateformes ignorent les normes de sécurité en vigueur chez nous. Elles inondent l’Union européenne de produits qui ne respectent pas les réglementations en matière de sécurité, et mettent donc les Européens en danger.

    C’est un jackpot sur les conditions de travail, car ces produits sont fabriqués dans des conditions inacceptables, en exploitant les travailleurs et en détruisant la planète.

    C’est un jackpot sur les obligations fiscales, car, pour couronner le tout, ces plateformes trouvent le moyen d’échapper à leurs obligations fiscales. Et tout cela permet à ces plateformes de commerce électronique de casser les prix et d’écraser nos entreprises européennes, qui ne peuvent pas rivaliser face à cette concurrence déloyale.

    Chers collègues, il est temps de sonner la fin de la récré pour Amazon, pour Temu, pour Alibaba et compagnie. L’Union européenne passe beaucoup de temps à discuter, à légiférer sur le poids des pommes ou sur la pulpe des poires. Je ne dis pas que ce n’est pas intéressant, que ce n’est pas important, mais je crois qu’il y a plus important et plus urgent en matière de normalisation au sein du marché unique.

    Les plateformes de commerce électronique doivent assumer leurs responsabilités et se soumettre à nos règles communes. Elles doivent être tenues pour responsables des produits qu’elles vendent, comme n’importe quel commerçant en réalité. Si elles veulent jouer dans notre cour, alors elles doivent se conformer à nos règles. Pas de passe-droit. La santé et la sécurité des Européennes et des Européens passent avant leurs profits.

     
       

     

      Kateřina Konečná (NI). – Pane předsedající, kolegyně a kolegové, hračky pro batolata, které se snadno rozbijí na malé kousky, u nichž hrozí vdechnutí, nefungující plynové alarmy či hračky a kosmetika obsahující nebezpečné chemikálie – zkrátka produkty, které ohrožují spotřebitele a které jsou v Evropské unii zakázány vyrábět i prodávat.

    Jenže e-shopy až do této chvíle dokáží naše pravidla zdatně obcházet a společně s nimi je obchází i výrobci ze zemí mimo Evropskou unii. Tyto zdraví i život ohrožující výrobky, jež často cílí na děti, nadále zaplavují evropský trh díky e-shopům a nízkým nákladům na jejich výrobu. Budu ráda, pokud konečně tuto skulinu, jednou provždy, odstraníme. On-line platformy musí také nést odpovědnost za produkty, které na svých stránkách nabízejí. Jejich stahování musí mít jasná pravidla. Informační systémy musí být lépe připraveny a pokuty za jejich prodávání musí být značně vyšší, než byly dosud. Jsem ráda, že alespoň zde se věci mají s novými pravidly ubírat správným směrem.

     
       

     

      Kamila Gasiuk-Pihowicz (PPE). – Panie Komisarzu! Koledzy, koleżanki! Unia Europejska jest liderem we wprowadzaniu regulacji chroniących konsumentów na rynku cyfrowym, a jednocześnie miliony Europejczyków korzystają z niespełniających standardów Unii Europejskiej produktów. Dlaczego? Po pierwsze dlatego, że europejski rynek jest zalewany przez chińskie subsydiowane towary sprzedawane po bezkonkurencyjnie niskich cenach. 2023 rok 2 miliardy paczek, 2024 rok dwa razy tyle paczek – 4 miliardy.

    Po drugie wjeżdżają niebezpieczne produkty. W liście, który otrzymałam od 100 producentów zabawek z Polski, wskazano na sprawozdanie Toy Industries of Europe, z którego dowiadujemy się, że 18 z 19 zabawek kupionych na platformie Temu stanowi rzeczywiste zagrożenie dla bezpieczeństwa dzieci. Po trzecie chińskie platformy sprzedażowe stosują agresywny marketing i manipulują klientami. Często informacje o tym, kto sprzedaje i za ile sprzedaje wymagają dziesiątki kliknięć, a i tak na koniec są podawane po chińsku.

    Co możemy zrobić, żeby przywrócić uczciwą konkurencję? Po pierwsze wprowadzić poza nielicznymi wyjątkami cła na paczki o wartości do 150 euro. Po drugie Komisja musi skutecznie i szybko egzekwować istniejące prawo. Po trzecie działania organów nadzoru krajowych i unijnych muszą być skoordynowane. Musimy to zatrzymać, zanim będzie za późno, zanim miliony produktów niespełniających standardów bezpieczeństwa trafią do naszych domów, do rąk naszych dzieci, zanim setki tysięcy miejsc w Europie znikną. Musimy to zrobić teraz.

     
       

     

      Maria Grapini (S&D). – Domnule președinte, stimați colegi, discutăm de protecția consumatorului și concurența loială în piață, domnule comisar. Sigur, am dezbătut astăzi și dezbatem comerțul online. Avem foarte multe reglementări, le-ați enumerat și dumneavoastră. Întreb: poate un cetățean, un consumator care a achiziționat online un produs să se apere dacă produsul e defect, dacă se îmbolnăvește, dacă produsul nu este conform? Avem reglementare de la etichetare până la dreptul la repararea produselor.

    Totuși, în piața internă sunt extrem de multe produse neconforme din țări terțe și – sigur nu vă dau, cred, o noutate – și în comerțul online avem produse din țări terțe pentru că acordurile nu sunt bine comercial făcute. Nu este subliniată respectarea standardelor de produs, cele europene, și atunci întrebarea este: cum le aplicăm? Reformarea vămilor – pentru prima dată vom avea o autoritate europeană pentru vămi. Problema este de aplicare, nu de reglementare. Am rămas în urmă cu implementarea și cred că aici trebuie să punem accent împreună cu statele membre, evident, ca să protejăm cu adevărat consumatorii.

     
       

     

      Gilles Pennelle (PfE). – Monsieur le Président, nous ne pouvons bien évidemment, au groupe des Patriotes pour l’Europe, que saluer l’intention de protéger les consommateurs européens. Cependant, le rapport Letta nous démontre que nous assistons à une augmentation des fraudes, à une augmentation de la concurrence déloyale et à ces fameuses importations de produits dangereux.

    Alors certes, on a beaucoup parlé des jouets. Je voudrais aussi parler des médicaments, par exemple, qui sont extrêmement dangereux pour la santé lorsqu’ils sont achetés sur des sites que personne ne contrôle. Dans la réalité, vous récoltez, à la Commission et dans cette Union européenne, les fruits de votre politique. C’est le résultat du dogme suprême du libre-échange qui nous amène là où nous en sommes.

    En effet, comment contrôler cette jungle qu’est devenu aujourd’hui le commerce électronique, où les géants du numérique règnent en maîtres. Je pense que les solutions ne sont, comme d’habitude, pas celles que vous proposez. Les solutions sont nationales. Il faut renforcer les douanes nationales pour contrôler ces importations de produits dangereux.

    Je voudrais, puisqu’il me reste quelques secondes, rappeler que, dans la plus grande opacité, dans le plus grand secret, la Commission européenne négocie actuellement le traité de libre-échange avec le Mercosur. Mais, là aussi, nous allons probablement importer des produits dangereux, des viandes de très mauvaise qualité, nourries par des produits interdits dans l’Union européenne.

    Finalement, vous êtes face à vos contradictions. Il est temps de changer de politique.

     
       

     

      Francesco Torselli (ECR). – Signor Presidente, onorevoli colleghi, oggi l’Unione europea sta subendo un vero e proprio attacco da parte di certe nazioni straniere a colpi di prodotti non conformi, di bassissima qualità, spesso anche pericolosi per il consumatore finale.

    Un attacco che sfrutta due falle esistenti nel nostro sistema di difesa: la prima, la possibilità di aggirare facilmente le regole da parte di certe piattaforme online; e la seconda, il fatto che l’Europa negli ultimi anni ha promulgato una serie di regolamenti autolesionisti, che spesso sembravano più favorire chi stava fuori dall’Europa piuttosto che le nostre imprese.

    È essenziale che oggi l’Unione europea intensifichi i controlli alle frontiere, protegga i consumatori, contrasti la concorrenza sleale. Dobbiamo migliorare la cooperazione, responsabilizzare le piattaforme online. Cooperazione e responsabilità: queste sono le ricette per un’Europa più forte che contrasti il commercio illegale.

     
       

     

      Nikola Minchev (Renew). – Mr President, the European Union is a global leader in setting high standards with the aim of ensuring quality and protecting our consumers. ‘Made in the EU’ is not just a label; it’s an unmatched guarantee of quality and safety. Yet we allow unreasonably cheap, low-quality, sometimes even dangerous, products to flood our markets, undercutting our industries. This must change.

    We need stronger enforcement of anti-dumping measures to defend the integrity of our single market. The European Commission has made recent strides, improving trade defence instruments by over 40 % to allow faster investigations and duties on unfair imports. But more action and especially enforcement of the existing rules is needed.

    Take my own country, Bulgaria. As the EU’s sixth largest exporter of electric bikes, our manufacturers face competition from cheap, lower quality imports from non-EU countries. These imports threaten to destabilise the growing sector. Robust enforcement, like recent EU actions against Chinese e-bikes, is essential to protect jobs, innovation and fair competition across Europe.

     
       

     

      Anna Cavazzini (Verts/ALE). – Herr Präsident, liebe Kolleginnen und Kollegen! Der Teddybär auf der Onlineplattform Temu, der sieht süß und flauschig aus und kostet auch nur zwölf Euro. Aber wenn die Verbraucherinnen und Verbraucher diesen Teddy bestellen, besteht die 95-prozentige Wahrscheinlichkeit, dass er den europäischen Vorgaben für Produktsicherheit nicht entspricht. In anderen Worten: Das Kuscheltier ist gefährlich: Seine Augen können verschluckt werden, oder das Fell ist vielleicht giftig.

    Dem immer schneller wachsenden Anteil des Onlinehandels, besonders mit Billigprodukten aus China, stehen Zoll und Marktüberwachung hier in Europa hilflos gegenüber. Dieses Jahr gehen Schätzungen zufolge vier Milliarden Pakete in die Europäische Union ein, die unter der Zollgrenze von 150 Euro liegen, und sie landen direkt bei den Verbraucherinnen und Verbrauchern.

    Es ist allerhöchste Zeit, unseren hohen europäischen Verbraucherschutz auch im Onlinehandel durchzusetzen. Die Kommission muss das Gesetz über digitale Dienste konsequent umsetzen und Online-Marktplätze mehr in die Verantwortung nehmen. Die EU-Zollreform ist der Schlüssel, um Kontrollen an unseren Grenzen zu verbessern. Das Parlament hat seine Hausaufgaben gemacht; der Rat schleicht und blockiert, und wir verlieren kostbare Zeit.

    Wir brauchen endlich mehr rechtliche und finanzielle Verantwortung für die Onlineplattformen. Den großen Wurf hat leider die konservative Seite dieses Parlaments in der letzten Legislatur blockiert; jetzt erkennen alle, glaube ich, dass es ein Fehler war.

     
       

     

      Christian Doleschal (PPE). – Herr Präsident, Herr Kommissar, liebe Kolleginnen und Kollegen! Ein T-Shirt für drei Euro, eine Jacke für sieben oder ein Kinder-Plüschtier für wenige Cents: E-Commerce-Händler wie Temu oder Shein überfluten mit aggressiven Vermarktungsstrategien und Dumpingpreisen unsere Märkte. Allein 2023 exportierten Shein und Temu zusammen täglich 9000 Tonnen Fracht nach Europa. Mit ihren unlauteren Praktiken setzen sie unsere Onlinehändler, aber auch unsere Geschäfte in unseren schönen Innenstädten unter enormen Druck. Während diese sich an strenge europäische Vorschriften halten, verstoßen Temu und Shein gegen Vorgaben zur Produktsicherheit, Arbeitsbedingungen, Nachhaltigkeit, Urheberrecht und Datenschutz – ohne spürbare Konsequenzen.

    Doch eigentlich mangelt es nicht an Regeln, sondern an deren konsequenter Durchsetzung. E-Commerce-Plattformen wie Temu oder Shein nutzen geschickt Lücken in der Marktüberwachung und bei der Wareneinfuhr zu ihrem Vorteil. Fehlende innereuropäische Vernetzung beim Datenaustausch, unzureichende Zollkontrollen und die aktuell noch gültigen Zollbestimmungen begünstigen die oftmals ungeprüfte Einfuhr von Waren aus dem Ausland in massenhaften Paketen mit geringem Warenwert.

    Ja, es ist wichtig, die Aufhebung der Zollbefreiung von Waren unter 150 Euro im Rahmen der EU-Zollreform anzuregen, und dafür danke ich der Kommission. Wir müssen sehen, dass diese neuen Regeln so schnell wie möglich in Kraft treten und durchgesetzt werden. Es geht nicht darum, Protektionismus zu fördern, vielmehr geht es um fairen Wettbewerb – wenn unsere Innenstädte leer gefegt und unsere europäischen Onlinehändler zerstört sind, ist es zu spät.

     
       

     

      Bernd Lange (S&D). – Herr Präsident, Herr Kommissar, liebe Kolleginnen und Kollegen! Die Temu-Schlagzeile „Shoppen wie ein Millionär“ müsste man wahrscheinlich umdichten in „Verkaufen wie ein Milliardär“. Wir haben gehört, vier Milliarden Päckchen kommen dieses Jahr von den Onlineplattformen Temu, Shein und AliExpress, und da frage ich mich schon, Herr Kommissar: Warum haben wir da nicht eine Gleichbehandlung mit Verkäufen innerhalb der Europäischen Union?

    Ich möchte ja nicht den Markt zumachen, überhaupt nicht. Aber es kann doch nicht sein, wenn wir innerhalb der Europäischen Union RAPEX haben, andere Möglichkeiten haben und wenn da ein Laden Produkte verkauft, die nicht akzeptabel sind, wird der Laden zugemacht, und hier fragen wir immer nur nach Informationen und machen im Grunde nicht klar, wenn ein Produkt auf der Plattform ist, und das ist mehrmals passiert, dass diese Plattform eben nicht mehr liefern kann.

    Oder auch – Sie sagen, die 150 Euro müssen fallen. Fallen die 2028, wie die Kommission vorschlägt, oder eben früher? Und was ist mit dem Rat und der Zollreform? Auch hier passiert zu wenig. Nicht nur klagen, sondern auch handeln für einen fairen Wettbewerb.

     
       

     

      Valérie Deloge (PfE). – Monsieur le Président, quand on entend parler de contrefaçons, on ne pense pas tout de suite à la nourriture. Pourtant, rien qu’en 2023, ce sont 1 150 000 produits alimentaires contrefaits qui ont été saisis en France. Yaourts, pâtes, fromages, mais aussi vin, cognac, huîtres et petits pots pour bébé: tout y passe. Ces produits sont faits pour ressembler à s’y méprendre aux originaux, mais ils ne répondent pas à nos normes et peuvent causer des risques pour notre santé. Pis: ces contrefaçons sont souvent 20 % à 70 % moins chères que les originaux. Nombreux sont les consommateurs qui les achètent, pensant profiter d’offres attrayantes sur des lots de déstockage.

    Cette situation est aussi dangereuse qu’intolérable. Elle signifie que nos agriculteurs et nos transformateurs ne sont pas seulement en concurrence avec les pays étrangers qui inondent notre marché à cause d’accords de libre-échange irresponsables, ils sont aussi en concurrence avec ces fraudes, qui ternissent l’image des filières et véhiculent une image négative des produits.

    Après les manifestations de l’an dernier, vous avez dit entendre la colère du monde agricole. Vous prétendez vouloir rétablir la réputation des agriculteurs et défendre les filières européennes: voici une bonne occasion de le faire. Traquez ces produits, contrôlez l’entrée des marchandises de mauvaise qualité ou qui ne répondent pas à nos normes et rendez au consommateur l’assurance qu’en achetant des produits européens ils achèteront de la qualité. La colère des agriculteurs, elle, est toujours là. À vous maintenant de prouver que vous pouvez vraiment agir.

     
       

     

      Nicolas Bay (ECR). – Monsieur le Président, à quoi bon avoir les normes les plus strictes et les plus exigeantes du monde si c’est pour laisser notre marché être inondé par des importations qui ne les respectent pas? À quoi bon étouffer nos producteurs par la paperasse, les taxes, les règles, si c’est pour laisser leurs concurrents tricher?

    Face à la concurrence déloyale, l’Union doit autant protéger ses consommateurs que défendre ses entreprises et ses producteurs. La réciprocité et des conditions équitables de concurrence sont nécessaires pour que le commerce soit bénéfique à tous. Il est impératif de multiplier les contrôles sur les importations et il est surtout impératif de ne pas nouer des accords commerciaux déséquilibrés. Le traité avec le Mercosur, en particulier, que la Commission cherche à conclure dans la précipitation, sacrifiera comme toujours nos agriculteurs. C’est une telle certitude, d’ailleurs, qu’un fonds est déjà prévu pour les indemniser.

    Nos producteurs sont les plus respectueux à la fois des consommateurs, de leurs animaux et de l’environnement. Leurs produits sont les meilleurs au monde. Ils ne veulent pas vivre de la charité. Ils veulent vivre du plus vieux et du plus noble des métiers: le travail de la terre, le travail de nos pères. Libérons-les et laissons-les se battre à armes égales en cessant d’organiser la concurrence déloyale, qui les condamne à la disparition.

     
       

     

      Anna Stürgkh (Renew). – Herr Präsident! Ja, bei fast jeder Diskussion zur EU fällt ein Wort wie das Amen im Gebet: Regulierung. Die EU als Regulierungsweltmeister und die Regulierung als quasi Endgegner der Innovation, ganz nach dem Motto „Du, glückliches Europa, reguliere“. Dabei steckt ja hinter den Regulierungen eigentlich ein wichtiges Ziel: nämlich Menschen und Unternehmen zu schützen und sie zu unterstützen, sicherzugehen, dass sie nicht Produzentinnen und Produzenten ausgeliefert werden, die Gesetze mit Füßen treten und Profit am Ende sogar noch mit dem Leben ihrer Konsumentinnen und Konsumenten machen.

    Dafür müssen wir aber die richtige Regulierung machen, und dafür müssen wir uns auch trauen, manchmal hinderliche Regulierungen wegzulassen. Wir müssen Menschen die Sicherheit geben, dass die Produkte, die sie in Europa auch online kaufen, nicht ihre Gesundheit oder ihr Leben gefährden. Wir müssen dafür sorgen, dass die Regeln, die für europäische Produzentinnen und Produzenten gelten, auch für Produkte gelten, die in unserem Land aus Drittstaaten in unsere Haushalte kommen. Wir müssen sichergehen, dass europäische Regeln auch europäisch gelten und nicht 27-mal unterschiedlich ausgelegt werden.

    Die Ziele sind richtig, der Weg noch holprig. Aber ja, „Du glückliches Europa – reguliere“.

     
       


     

      Δημήτρης Τσιόδρας (PPE). – Κύριε Πρόεδρε, αγαπητοί συνάδελφοι, οι Ευρωπαίοι πολίτες σε πολλές περιπτώσεις νιώθουν απροστάτευτοι από αθέμιτες πρακτικές, αλλά και από τον τρόπο με τον οποίο γίνονται πολλές συναλλαγές, ιδιαίτερα στο νέο ψηφιακό περιβάλλον.

    Στο ηλεκτρονικό εμπόριο πολλές φορές οι καταναλωτές δεν αισθάνονται ότι έχουν τον πλήρη έλεγχο των συναλλαγών τους λόγω των πολύπλοκων κανόνων και των ρητρών που περιλαμβάνονται στα περιβόητα ψιλά γράμματα. Σε πολλές περιπτώσεις υπάρχουν συγκαλυμμένες χρεώσεις, ενώ ο σχεδιασμός πολλών ψηφιακών υπηρεσιών δημιουργεί εθισμό στα παιδιά και οδηγεί σε πρόσθετες χρεώσεις μέσω βιντεοπαιχνιδιών. Παράλληλα, κάθε χρόνο, καταναλωτές στην Ευρωπαϊκή Ένωση αγοράζουν, χωρίς να το γνωρίζουν, προϊόντα τα οποία δεν πληρούν τα ευρωπαϊκά πρότυπα ποιότητας και ασφάλειας.

    Ένα άλλο σημαντικό θέμα είναι ότι μεγάλες πολυεθνικές εταιρείες εκμεταλλεύονται τη δεσπόζουσα θέση τους στην αγορά για να επιβάλουν γεωγραφικούς εφοδιαστικούς περιορισμούς, επιβάλλοντας αδικαιολόγητα υψηλές τιμές. Ο πρωθυπουργός Κυριάκος Μητσοτάκης έχει στείλει στην Επιτροπή μια σχετική επιστολή και πιστεύω ότι θα πρέπει να επιληφθεί του θέματος. Είναι αναγκαία η αυστηρή τήρηση των κανόνων και, όπου χρειάζεται, περαιτέρω αυστηροποίηση της νομοθεσίας και συνεργασία των αρχών, προκειμένου οι Ευρωπαίοι καταναλωτές να αισθάνονται ότι προστατεύονται.

     
       

     

      Biljana Borzan (S&D). – Gospodine predsjedavajući, potrošačke organizacije čak 17 država prijavile se Europskoj komisiji najnoviji kineski div Temu. Propituje se sigurnost proizvoda, štetnost za zdravlje, pa čak i prodajni lanac u smislu prodaje ilegalnih proizvoda. Temu i dalje prodaje, ljudi i dalje kupuju.

    Prije nekoliko godina 18 potrošačkih organizacija prijavilo je Tik Tok europskim tijelima radi štetnog utjecaja na maloljetnike, koji čine 30 posto njihovih korisnika. Narušavanje mentalnog zdravlja, izazivanje ovisnosti, poticanje nezdravih navika i ponašanja kod djece gorući su problemi koji traže hitnu reakciju. Unatoč tome, promjene na platformi su minimalne.

    Kako prisiliti internetske divove da poštuju europska pravila? Treba dati veće ovlasti Europskoj komisiji u slučaju povrede potrošačkih prava. Pokažimo građanima da nisu sami, da je udar na naše ljude, udar i na naše institucije i da će one brzo i efikasno odgovoriti ondje gdje ih najviše boli. One koji rade greške – udarimo ih po džepu.

     
       

     

      Philippe Olivier (PfE). – Monsieur le Président, la question de la sécurité des produits n’est pas toujours affaire de développement juridique ou de normes, mais de contrôles. Elle pose la question des portes d’entrée de l’Europe, et les portes d’entrée de l’Europe, ce sont les ports. Sur Le Havre, sur 6 000 conteneurs, seuls 5 sont contrôlés. D’une manière générale, tous les ports européens tendent à être pris en main par les mafias, soit par la peur et par la menace, soit par la corruption. Personne ne s’en préoccupe.

    Comment croire que le libre-échange puisse être vertueux quand même les règles les plus élémentaires de surveillance sont en pratique bafouées aux endroits où les contrôles devraient être implacables? Que dire des matières premières qui sont vendues en Europe par des pays qui ne les possèdent pas, mais qui les volent? La République démocratique du Congo est ainsi pillée par son voisin, le Rwanda, et l’Europe commet des actes de recel en achetant à Kigali de telles matières premières.

    Si vous souhaitez ramener un peu d’éthique dans le commerce sans limites et sans règles, rétablissez les contrôles nécessaires.

     
       


     

      Henrik Dahl (PPE). – Hr. Formand. Tak for ordet. Kinesiske online platforme som Temu og Sheen presser det europæiske marked med produkter, der for det første er lodret ulovlige og for det andet er farlige. Disse produkter er for det første en risiko for forbrugerne, men de er også en direkte trussel imod det indre marked. Temu undergraver systematisk de regler, vi har bygget op for at beskytte de europæiske borgere. De regler overholder de europæiske virksomheder i modsætning til Temu. Når Temu udnytter huller i lovgivningen, så får de en unfair konkurrencefordel, som de bruger til at udkonkurrere europæiske virksomheder. EU har skabt et robust regelsæt for forbrugersikkerhed, men uden en effektiv håndhævelse er de regler ikke noget værd. Vi skal ikke tolerere, at kinesiske platforme systematisk bryder reglerne og underminerer europæiske virksomheder. Derfor er det på tide at tage kampen op mod de aktører, der misbruger systemet, skader forbrugerne og fører en form for økonomisk krig imod Europa. Europa skal være stærkt, og derfor skal Europa sanktionere de kinesiske virksomheder, som bevidst bryder reglerne.

     
       

     

      Pierre Jouvet (S&D). – Monsieur le Président, chers collègues, pour éviter un anniversaire ou un Noël sans cadeaux, des parents achètent à bas prix des jouets sur des sites chinois. Comment leur en vouloir, quand les fins de mois sont devenues si difficiles? C’est pourtant un cadeau empoisonné, parce que ces jouets sont certes peu chers, mais très probablement toxiques. D’après des tests menés en laboratoire, près de 80 % d’entre eux sont dangereux.

    En plus de ces jouets toxiques, combien de parfums irritants, de lunettes de soleil inefficaces, de jeans de contrefaçon seront vendus par ces plateformes chinoises qui inondent le marché? Temu, Shein, AliExpress importeront près de 4 milliards d’articles en Europe cette année. Ce chiffre a triplé en trois ans. Ces plateformes profitent du seuil douanier de 150 euros sur les colis internationaux pour échapper à tout contrôle. Ces entreprises violent les droits des consommateurs et nuisent aux fabricants européens, qui, eux, respectent les normes sociales et environnementales.

    L’Europe doit se réveiller et faire respecter un principe simple: «Notre marché, nos règles.»

     
       

     

      Zala Tomašič (PPE). – Gospod predsednik. V skladu s Temujevo politiko zasebnosti se osebni podatki, kot so ime, priimek, naslov, zgodovina nakupov in lokacija, lahko delijo s tretjimi oglaševalci, ponudniki storitev in poslovnimi partnerji. Temu včasih ponuja storitve, Temu včasih ponuja izdelke celo brezplačno. Ampak potrebno se je zavedati, da nič ni brezplačno.

    V zameno platforma pridobiva osebne podatke in spremlja obnašanje potrošnikov na spletu. Obstajajo pa tudi skrbi, da se ti podatki potem prodajajo tudi naprej. Le malokateri potrošnik pa se tega tudi zaveda.

    Poleg tega je kvaliteta teh izdelkov vprašljiva. Slišali smo že, kako otroške igrače takoj razpadejo na majhne dele, kako detektorji dima dima ne zaznajo. Ampak problem so tudi kozmetični izdelki, ki lahko pustijo nepopravljive poškodbe sluznice in kože.

    Močno podpiram prosti trg in konkurenčnost na trgu, vendar pa moramo zaščititi tako potrošnike pred zlorabo osebnih podatkov in škodljivimi izdelki kot tudi naše podjetnike pred nelojalno konkurenco.

     
       

     

      Maria Guzenina (S&D). – Arvoisa puhemies, komission edustajat, EU:n pitäisi olla maailman turvallisin alue ostaa tavaraa. Meillä on tiukat standardit sille, millaisia tuotteita täällä saa myydä, joten miten ihmeessä on mahdollista, että tuoreissa testeissä jopa 80 prosenttia leluista, joita myydään muun muassa kiinalaisissa verkkokaupoissa, eivät täyttäneet lelujen turvallisuusvaatimuksia. Kyse on kuluttajien, erityisesti lasten terveydestä. Kyse on ympäristömme suojelemisesta. Kyse on turvallisuudesta ja kyse on eurooppalaisten yritysten mahdollisuudesta pärjätä.

    Kiinalaiset säännöistä piittaamattomat jättimäiset verkkokaupat toimittavat kiihtyvällä vauhdilla tavaroita Eurooppaan. Suomen tullin mukaan kiinalaisten pakettien valtava määrä vaarantaa jo tullinkin toimintakyvyn.

    Tuoteturvallisuusdirektiivi, se on hyvä alku, mutta on tärkeää, että me emme lisää vastuullisten eurooppalaisten yritysten sääntelyä, vaan meidän pitää varmistaa, että kiinalaiset kaupat noudattavat eurooppalaisia sääntöjä.

    Tämän asian ratkaisemisella on kiire. Komission on tehtävä tässä tehtävänsä. Euroopan on oltava yhtenäinen tässä asiassa. Kyse on eurooppalaisten terveydestä.

     
       

     

      Niels Flemming Hansen (PPE). – Mr President, dear Commissioner, honourable colleagues, e-commerce has rapidly expanded, offering consumers access to products from around the globe. A recent study found that 30 out of 38 products from the Temu platform failed to meet European safety standards, posing a serious risk to consumers. Some 30 out of 38, my dear friends: that’s 78 %.

    This is not about protectionism. It’s about ensuring fairness and safety. Non-compliance puts the consumers at risk and creates an uneven playing field, especially for European SMEs that follow EU rules. SMEs, which are the backbone of our economy, will suffer the most.

    The scale of e-commerce makes it impossible for national customs to manage alone. In Germany, it’s estimated that there are around 400 000 packages a day from China; 78 % of that is 320 000 packages.

    Finally, this is a test of the EU’s ability to address the challenges of a globalised marketplace. We must be decisive, not only to protect our consumers, but to prove that Europe can enforce its own rules and uphold fairness in the single market.

     
       

     

      Pierfrancesco Maran (S&D). – Signor Presidente, onorevoli colleghi, caro Commissario, come ha ben sottolineato, è necessario sistemare alcuni aspetti del mercato online e questo va fatto rapidamente.

    Oggi il 70% dei cittadini europei compra beni e servizi online. Eppure esistono due mercati: uno per chi rispetta le regole e uno per chi non le rispetta e le aggira. In molti abbiamo sottolineato come alcuni soggetti sono certamente protagonisti delle violazioni.

    Operatori come Temu, Shein, AliExpress – che insieme contano 300 milioni di utenti in Europa – immettono sul mercato migliaia di prodotti non sicuri a prezzi stracciati. Loro lo sanno bene e sanno che possono farlo, perché non mettiamo ancora in campo azioni strutturali che li rendano corresponsabili.

    Questo è il punto di lavoro principale, perché non possiamo pensare di andare ad inseguire ogni consegna alle dogane. È necessario agire alla fonte nei loro confronti, perché si adoperino per una svolta nei loro comportamenti commerciali.

    Lo dobbiamo ai cittadini europei, che devono sapere che i prodotti che comprano sono sempre sicuri e non essere tentati dalla convenienza del low cost senza regole. E lo dobbiamo alle aziende che invece rispettano le regole e che meritano di non avere questa concorrenza.

     
       


     

      Elisabeth Grossmann (S&D). – Herr Präsident, Herr Kommissar, meine sehr geehrten Damen und Herren! Die Digitalisierung und der wachsende E-Commerce haben unsere Märkte grundlegend verändert, und es ist unerlässlich, dass wir als EU entschlossen handeln, um Sicherheit und Fairness zu gewährleisten. Der europäische Handel gerät durch das Onlineangebot aus dem EU-Ausland zunehmend unter Druck, und große Plattformen, vorwiegend aus China, überschwemmen gerade den europäischen Markt mit Billigangeboten und nutzen die bestehenden Schlupflöcher aus, was den Wettbewerb verzerrt und europäische Unternehmen stark benachteiligt und auch europäische Arbeitsplätze kostet und natürlich auch europäische Wertschöpfung.

    Und ich sage Ihnen: Es ist nicht fünf vor zwölf, es ist fünf nach zwölf, weil es hat sich bereits das Kaufverhalten der Menschen erheblich verändert, und es sind bereits zahlreiche Unternehmen im Produktionsbereich und auch im Handelsbereich insolvent. Und hier haben wir in Zukunft mitunter auch ein Problem mit der Versorgungssicherheit.

    Deshalb ist dringendes Handeln, rasches Handeln geboten. Es ist mit dem Gesetz über digitale Dienste und dem Gesetz über digitale Märkte einiges gelungen – aber diese Gesetze gehören auch konsequent umgesetzt, und zwar sofort.

     
       

       

    IN THE CHAIR: ESTEBAN GONZÁLEZ PONS
    Vice-President

     
       

     

      Regina Doherty (PPE). – Mr President, Commissioner, EU consumer rights are worth absolutely nothing unless they are effectively enforced. We have made some progress with the General Product Safety Regulation, which is going to come into effect later on this year, and we are working on ambitious reforms, but it’s not just about laws.

    The EU’s many market surveillance authorities have to work together in order to take risk-based market surveillance seriously, because when it comes to illegal products coming into EU countries, we should be really, really vigilant. According to the Commission, last year, 2.3 billion items worth less than EUR 150 entered the EU last year. And we’re facing what could only be described as a flood of cheap products. Member State authorities are frequently overwhelmed and sometimes just to verify whether something meets a product safety standard is next to impossible. So we need to support these authorities and make sure that they have the resources they need to do their work online markets such as China’s Temu must meet the standards that we uphold every single European company to in order to have the right to operate in the EU market.

    We don’t want protectionism, we don’t want to reduce global trade. We just want to make sure that the level playing field is level and that the people who are consuming the goods are safe from them.

     
       

     

      Salvatore De Meo (PPE). – Signor Presidente, onorevoli colleghi, in questi mesi ricorre insistentemente il tema della competitività, soprattutto in quest’Aula. Però leggiamo dalla recente relazione Letta che il 75% dei prodotti pericolosi in circolazione in Europa deriva da Paesi terzi ed è un dato in crescita preoccupante.

    Potete ben capire che questo non solo mette a rischio la competitività delle nostre imprese ma anche la salute dei nostri consumatori, ai quali invece dobbiamo garantire prodotti sicuri con controlli rigorosi, in particolare quelli acquistati sull’e-commerce, piattaforme esplose durante il periodo del COVID.

    Dobbiamo intervenire con urgenza per contrastare l’eccessiva presenza di prodotti dei Paesi terzi, che attraverso le piattaforme riescono a raggiungere con comodità milioni di utenti in tempi rapidissimi. Questa situazione crea una concorrenza sleale che penalizza le nostre imprese, che invece sono obbligate a rispettare norme sempre più stringenti, mentre molti prodotti sono importati senza i dovuti controlli.

    E allora particolare attenzione va rivolta soprattutto ai giocattoli, oppure ai farmaci, perché rivolti ai bambini e alle persone che hanno bisogno di cure. Dobbiamo garantire standard di sicurezza.

    In questo contesto, l’unione doganale può fare ovviamente molto di più e auspichiamo che, ovviamente, la riforma che è stata avviata possa essere portata a termine per garantire una vigilanza più stringente sulle importazioni, proteggendo il nostro mercato e soprattutto i nostri cittadini.

    Solo così potremo assicurare una concorrenza equa e un futuro di crescita e sicurezza per tutti.

     
       

       

    Catch-the-eye procedure

     
       



     

      Lukas Sieper (NI). – Herr Präsident, sehr geehrte Menschen Europas, Hohes Haus! Wir haben heute bereits über die Wichtigkeit des europäischen Binnenmarkts gesprochen. Umso glücklicher bin ich über diese Debatte, denn wir müssen unseren Binnenmarkt auch schützen. Wir können es nicht akzeptieren, wenn Produkte den Markt fluten, die unter Missachtung der Menschenrechte, teilweise sogar von uigurischen Zwangsarbeitern in Konzentrationslagern hergestellt werden. Wir können es nicht hinnehmen, wenn Produkte den Markt fluten, die unseren Sicherheitsstandards nicht gerecht werden. Wir können es nicht tatenlos geschehen lassen, wenn diese Produkte von autoritären Staaten gezielt subventioniert werden.

    Wir können es uns nicht leisten, wenn diese Produkte von internationalen Großkonzernen unter bewusstem Ausnutzen verschiedener Steuersysteme innerhalb der EU vertrieben werden. Schließlich: Wir können es uns nicht leisten, wenn der Binnenmarkt zerstört wird, indem er von ausländischer Konkurrenz ausgespielt wird.

    Die Menschen wollen einen starken Binnenmarkt, nicht einen auf Wish bestellt; und das fängt, wie viele meiner Kollegen zu Recht betont haben, beim Zollsystem an.

     
       


       

    (End of catch-the-eye procedure)

     
       

     

      Didier Reynders, membre de la Commission. – Monsieur le Président, Mesdames et Messieurs les députés, je voudrais d’abord vous remercier pour ce débat sur le marché intérieur et la manière dont des produits arrivent sur ce marché intérieur. Les plateformes jouent un rôle de plus en plus important en la matière. J’entends bien l’ensemble des remarques sur les règles – qui, pour une grande part, existent, même s’il y a encore du travail à faire – et sur le besoin d’un contrôle renforcé.

    Je dirais tout d’abord que nous devons mieux utiliser les outils qui arrivent et qui sont parfois déjà à notre disposition. Je voudrais féliciter les autorités chargées de la protection des consommateurs dans les États membres, que nous avons organisées en réseau. Ce réseau d’acteurs, le réseau CPC, fait déjà aujourd’hui, en relation avec les associations de consommateurs, un travail sur le terrain remarquable pour détecter et retirer des produits régulièrement, non seulement des magasins, mais aussi des plateformes en ligne. Nous avons d’ailleurs développé au sein de la Commission un outil numérique qui permet de vérifier que ces produits ne reviennent pas sur les plateformes.

    Je ne dis pas que nous détectons l’ensemble des produits ou que nous retirons l’ensemble des produits dangereux, que ce soit pour la sécurité proprement dite ou pour la santé des consommateurs, mais je voudrais saluer ce travail, sur lequel il faudra d’ailleurs à nouveau se pencher. Beaucoup ont évoqué le rôle particulier des douanes. Je voudrais confirmer que la Commission souhaite avancer en la matière. Le dossier est entre les mains des colégislateurs pour l’instant. Plusieurs ont évoqué la limite des 150 euros: nous souhaitons l’abolir. J’espère que nous pourrons aboutir prochainement à un accord entre les colégislateurs sur ce sujet. Le travail des douanes est un travail important dans le cadre de la protection des consommateurs.

    Le règlement sur les services numériques est en vigueur. Des pouvoirs ont été octroyés à la Commission, des pouvoirs que nous avons commencé à utiliser, y compris dans les domaines que vous avez évoqués et en particulier dans le cadre de plateformes qui inondent l’Union européenne de produits à bas prix. Le règlement général sur la sécurité des produits, que j’ai évoqué tout à l’heure, entrera en vigueur le 13 décembre. À travers ce règlement, comme plusieurs d’entre vous l’ont évoqué, la responsabilité personnelle des plateformes pourra être mise en cause, non seulement celle des grandes plateformes, mais aussi celle des plus petites, puisque nous avons prévu qu’une personne responsable devait être désignée dans l’Union européenne lorsque des produits sont effectivement importés sur le marché. Mais, je le répète, ce règlement général, que nous avons souhaité mettre en place pour remplacer une directive, entre en vigueur le 13 décembre prochain. Je vous invite donc à utiliser, pour le moment, les outils à disposition ou dont disposeront bientôt les différents acteurs chargés de la protection des consommateurs.

    Pour ce qui est de la poursuite du dialogue avec nos partenaires, j’ai mis en place au cours de la législature écoulée un dialogue avec les autorités américaines, notamment en matière de protection des produits. En ce qui concerne la politique des consommateurs, il y a aux États-Unis trois agences différentes, et la commission américaine chargée de la sécurité des produits est en dialogue constant avec la Commission européenne. Nous développons un dialogue similaire avec le Royaume-Uni, le Canada, le Japon, ou la Corée du Sud.

    Pour la première fois, nous avons tenu, à Paris, au sein de l’OCDE, une réunion ministérielle concernant la politique des consommateurs. Et l’OCDE, pour une fois, s’est penchée non plus seulement sur la production, mais aussi sur la consommation, et donc, réellement, sur la sécurité des produits pour les consommateurs. On voit que ce thème progresse. Nous avons d’ailleurs tenu à Bruxelles, très récemment, une semaine consacrée à la sécurité des produits, avec l’ensemble des acteurs internationaux.

    Il est vrai que nous devons aussi poursuivre le travail entamé avec la Chine. Nous le faisons par un dialogue direct, nous le faisons aussi, parfois, en collaboration avec des partenaires internationaux – nous avons mené une action trilatérale avec nos collègues américains. Je ne suis pas naïf, mais on doit continuer à tenter de convaincre nos partenaires chinois qu’il s’agit aussi d’un enjeu de réputation pour leurs produits et pour leurs entreprises, et probablement pour un nombre croissant de consommateurs chinois, qui souhaitent eux-mêmes une plus grande sécurité de leurs produits. C’est un travail qui a aussi été entamé au cours de ces dernières années.

    Enfin, vous avez évoqué des cas concrets de sécurité des produits sur des plateformes, mais aussi de produits à bas prix – je pense à Temu ou à Shein. Je l’ai dit, des actions sont en cours. Nous avons saisi le réseau des agences chargées de la protection des consommateurs sur ce sujet. Le réseau CPC y travaille. Le règlement sur les services numériques est lui aussi à l’œuvre dans le cadre de procédures visant ces plateformes, lesquelles ne posent pas seulement un problème de sécurité de produits ou de santé des consommateurs, mais aussi, vous l’avez rappelé, de concurrence déloyale, en raison de prix très faibles, de prix particulièrement bas. Elles ne sont pas seulement en concurrence avec la production de nouveaux produits en Europe, elles le sont aussi avec le marché de seconde main.

    Nous avons, avec certains d’entre vous, beaucoup travaillé au développement du droit à la réparation, qui concerne chaque consommateur et qui permet par ailleurs de renforcer le marché de seconde main. Il est clair que nous devons la protéger contre l’évolution de la concurrence déloyale, tout en demandant bien entendu au secteur de la seconde main de garantir la sécurité de ses produits au même titre que le respect d’un certain nombre de règles européennes.

    Alors, bien entendu, je ne voudrais pas conclure sans évoquer un ou deux aspects, notamment une remarque plus personnelle. La Commission a vu ses compétences directes renforcées: aussi bien celles qu’elle détient, depuis longtemps, dans le domaine de la concurrence que celles acquises plus récemment dans celui des plateformes – à travers le règlement sur les services numériques.

    Pour ce qui est des consommateurs, il est peut-être temps aussi de se poser la question, au-delà du réseau des acteurs nationaux, d’une action possible et plus directe de la Commission pour des cas qui le méritent – des cas manifestement transfrontaliers et qui concernent l’ensemble des consommateurs européens. Cela nécessite des moyens, bien entendu. C’est donc un débat qui reviendra, je l’espère, dans les prochaines années: le travail en la matière ne doit plus se limiter aux agences nationales, il doit aussi advenir à l’échelon de la Commission.

    Je terminerai en vous disant que plusieurs ont évoqué la nécessité d’agir vite. J’ai notamment entendu des remarques sur la manière dont on produit un certain nombre de biens vendus sur le marché européen, parfois en violation des règles environnementales ou des droits de l’homme. Nous avons mis cinq ans à faire adopter une directive sur le devoir de vigilance. Maintenant, il faut en entamer la mise en œuvre.

    J’espère donc que la détermination de l’ensemble des acteurs – des colégislateurs comme des États membres – sera très grande pour agir: pas uniquement quand un produit arrive sur le marché européen, mais aussi sur les chaînes d’approvisionnement, en réfléchissant à la manière de faire respecter les règles environnementales aussi bien que celles en matière de droits de l’homme, tant par les entreprises européennes que par les entreprises de pays tiers qui viennent sur le marché intérieur – y compris à travers des plateformes.

    Beaucoup reste à faire, mais je crois que des règles sont en place. Il faut maintenant les rendre effectives et, surtout, renforcer le contrôle, pour une part à l’échelon européen – lorsque c’est nécessaire.

     
       

     

      President. – The debate is closed.

     

    16. One-minute speeches on matters of political importance


     

      Φρέντης Μπελέρης (PPE). – Κύριε Πρόεδρε, αγαπητοί συνάδελφοι, θα ήθελα να μοιραστώ μαζί σας μια όμορφη πρωτοβουλία στην Ελλάδα και συγκεκριμένα στη Φουρνά Ευρυτανίας, ένα ελληνικό χωριό όπου Δήμος, Περιφέρεια και Εκκλησία συνεργάζονται αρμονικά, προσφέροντας μια καλύτερη ζωή σε μέλη νέων οικογενειών με στόχο να τους πείσουν να εγκατασταθούν στον τόπο τους. Θέλω να σας πω ότι αυτές ακριβώς τις μικρές νίκες πρέπει να αναζητούμε απέναντι στη δημογραφική κρίση· τις μάχες, δηλαδή, που δίνονται μεμονωμένα, ώστε η ευρωπαϊκή ύπαιθρος να μη «σβήσει».

    Ας δούμε όμως και τη μεγάλη εικόνα. Είναι αναγκαία η άμεση επανεκκίνηση της ευρωπαϊκής περιφέρειας. Αυτό θα το πετύχουμε με την αξιοποίηση επιτυχημένων πολιτικών και σωστή αναδιάρθρωση του ευρωπαϊκού προϋπολογισμού. Η Ευρώπη δεν πρέπει να επανέλθει στις διαφορετικές ταχύτητες με τις οποίες εξαπλώνεται το δημογραφικό πρόβλημα στα 27 κράτη μέλη, αλλά να χρηματοδοτήσει δράσεις με την ίδια ένταση και να δώσει ουσιαστικά κίνητρα.

    Κλείνοντας, κύριοι συνάδελφοι, οφείλουμε να φροντίσουμε ώστε να μη νιώθουν οι περιφέρειες και τα νησιά μας απομονωμένα. Κάθε κουκκίδα στον ευρωπαϊκό χάρτη που διασυνδέουμε με μια άλλη, είναι αυτομάτως μια μεγάλη κατάκτηση προς τον κοινό μας στόχο: να δώσουμε ξανά πνοή στην ήπειρό μας.

     
       

     

      Gabriela Firea (S&D). – Domnule președinte, vinerea trecută, tocmai a trecut, a marcat Ziua Europeană de Luptă împotriva Traficului de Persoane, o zi care ne amintește cât de fragilă este siguranța pentru multe femei și mulți copii din Europa. Din păcate, traficul de persoane, care este strâns legat de violența domestică, continuă să fie o problemă gravă. Observăm la nivelul Uniunii Europene că se fac pași importanți. A fost adoptată o versiune revizuită a directivei antitrafic, cu măsuri mai stricte pentru combaterea noilor forme de exploatare, inclusiv a celor din mediul online. Programe precum Fondul pentru azil, migrație și integrare și Programul „Cetățeni, egalitate, drepturi și valori” sprijină victimele și încearcă să prevină traficul de persoane.

    Totuși, nu este suficient și este clar că avem nevoie de o mai bună coordonare între statele membre și de o utilizare mai eficientă a fondurilor, inclusiv prin Mecanismul de redresare și reziliență. Este vital să investim mai mult în educație, în prevenție și mai ales în protecția reală a victimelor, iar cei care comit aceste crime să fie aduși în fața justiției, pentru că asta înseamnă să facem dreptate: să-i protejăm pe cei vulnerabili și să nu lăsăm nicio victimă fără voce.

     
       

     

      Julien Sanchez (PfE). – Monsieur le Président, mes chers collègues, le récent rapport de la Cour des comptes européenne sur le fonds fiduciaire d’urgence en faveur de la stabilité et de la lutte contre les causes profondes de la migration irrégulière et du phénomène des personnes déplacées en Afrique, fonds doté rappelons-le de 5 milliards d’euros d’argent public de nos concitoyens, est édifiant et accablant.

    Si les besoins sont réels et la situation préoccupante, les exemples de gaspillage sans aucun contrôle sont hélas innombrables et choquants. Oui, la Commission européenne gère notre argent avec amateurisme et légèreté. Ainsi, en Gambie, des bénéficiaires ont reçu deux fois la même aide pour des projets agricoles qui, en plus, sont des projets fictifs. En Afrique subsaharienne, des mixeurs ont été distribués dans des écoles qui n’ont même pas accès à l’électricité. Il y a des dizaines d’exemples dans ce rapport, que j’invite chacun à lire.

    J’ai trois questions. Ce programme existe-t-il juste pour se donner bonne conscience? Comment peut-on balancer des milliards et se désintéresser à ce point de l’utilisation réelle et concrète de ces fonds? Enfin: n’avez-vous pas honte de voir l’argent des contribuables ainsi dilapidé? Comment tout cela est-il possible, et pourquoi les gens qui laissent faire cela ne sont-ils pas limogés?

     
       






     

      Barry Andrews (Renew). – Mr President, Commissioner and colleagues, we are broadly agreed across this House that nothing we do or say would reward Russia for its aggression and its contempt for human rights. Equally, we are broadly agreed that we would not do or say anything that would reward Iran for its aggression. Yet we are now slowly embarking on a policy to do just that, under the banner of so-called normalisation of relations with Assad’s Syria. This will send a clear message to Russia and Iran.

    Having stood by those who sought freedom, having passed countless resolutions condemning Assad’s prisons and gulags and executions, and his use of chemical warfare, and looking for an end to impunity, now we quietly return to restore normal relations at a time that can only send one clear message: the EU will stand by those who seek freedom, but if autocrats have the patience and seek the protection of Iran and Russia, they might just succeed.

     
       

     

      Vicent Marzà Ibáñez (Verts/ALE). – Señor presidente, mientras en este Parlamento, hace unos años, y en el Consejo, justo este mes, se ha aprobado una normativa, la nueva Directiva de calidad del aire ambiente, mucho más restrictiva de acuerdo con los criterios científicos, en la ciudad de Elx, en nuestra tercera ciudad valenciana, el Gobierno da rienda suelta a la contaminación y lo que hace es destruir carriles bici, pervertir la zona de bajas emisiones promoviendo el uso del coche y, además, poner en peligro doce millones de euros de fondos europeos que no va a ejecutar con el fin para el que fueron asignados.

    Por eso, desde aquí queremos lanzar esta denuncia, en relación con todas las denuncias ciudadanas que están luchando contra esta situación en Elx, en la tercera ciudad valenciana, y pedimos a la Comisión Europea que tome cartas en el asunto. Le queremos preguntar si va a seguir permitiendo que se destinen fondos europeos contra la salud de los ilicitanos y las ilicitanas.

     
       



     

      Katarína Roth Neveďalová (NI). – Vážený pán predsedajúci, v týchto dňoch si pripomíname osemdesiate výročie Slovenského národného povstania, ktoré vypuklo 29. augusta 1944, a osemdesiate výročie karpatsko-duklianskej operácie, ktorá bola najväčšou horskou bitkou druhej svetovej vojny a najväčšou bitkou v Československu. Bohužiaľ, dnes nás opustil jeden z posledných žijúcich partizánov na Slovensku, pán Karol Kuna, ktorý sa dožil 96 rokov, a tých pamätníkov Slovenského národného povstania máme stále menej a menej. Rada by som citovala pána Kunu, ktorý povedal: Keby nebolo toľkých, ktorí pretrhli putá zotročenia, dnes by sme nežili v slobodnej krajine. Slovenskí partizáni bojovali za hodnoty odboja proti fašizmu, ako bola sloboda, spravodlivosť a rovnosť, a len vďaka nim bolo nakoniec Československo a Slovenská republika slobodnou krajinou, ktorá stála na strane víťazov. Rada by som dnes vzdala česť týmto ľuďom, ktorí padli za našu slobodu. V Slovenskom národnom povstaní padlo približne desaťtisíc ľudí, ktorí boli nielen vojaci, nielen partizáni, ale takisto civilisti, ktorí pomáhali týmto ľuďom prežiť v horách. A takisto pri duklianskej operácii padlo asi 150 tisíc ľudí. Buď stratili svoj život, svoje zdravie, alebo boli zajatí. Česť ich pamiatke.

     
       



     

      Michele Picaro (ECR). – Signor Presidente, onorevoli colleghi, il turismo dentale nei paesi extra-UE è un fenomeno in crescita che solleva importanti preoccupazioni per la salute pubblica.

    Negli ultimi anni molti pazienti europei, in particolare italiani, si sono rivolti a destinazioni come Albania e Turchia per trattamenti odontoiatrici a prezzi competitivi. Tuttavia, un’indagine della British Dental Association ha evidenziato che il 70% dei pazienti che hanno cercato cure all’estero ha sperimentato eventi avversi gravi, come infezioni e ascessi o difficoltà masticatoria, condizioni che hanno compromesso non solo la loro salute, ma anche la durata di protesi e impianti, vanificando così il vantaggio economico iniziale.

    Le norme sanitarie in questi Paesi spesso mancano di una regolamentazione rigorosa. Per questo è necessario promuovere campagne informative che forniscano ai cittadini dati chiari e affidabili sui rischi e i benefici delle cure odontoiatriche all’estero. Informare i pazienti riguardo alle normative sanitarie dei Paesi di destinazione, alla formazione del personale medico, agli standard di qualità delle strutture è cruciale per consentire scelte consapevoli.

    Per tale ragione è imperativo che il Parlamento europeo consideri queste problematiche e promuova iniziative per garantire la sicurezza e la qualità delle cure odontoiatriche. Al contrario, si tratta di garantire ad ogni paziente scelte informate, sicure e supportate da normative adeguate. Solo così potremo garantire e proteggere la salute dei cittadini e mantenere la fiducia nel sistema sanitario.

     
       

     

      Ciaran Mullooly (Renew). – Mr President, reports along the corridors of this building say a trade deal with the Mercosur countries has all but been agreed by our Commission, and talk of compensation for Irish farmers and others is widespread. But I come here this evening to give you one message, and a message back to those who send those briefs. No way! No way will we accept this.

    A study by the Irish Government Department of Enterprise in 2021 indicated that Ireland’s beef sector would lose between EUR 44 million and EUR 55 million if the EU-Mercosur deal goes ahead.

    We are the fifth largest beef exporter in the world and the biggest EU exporter, with more than 90 % traded internationally on an annual basis.

    It is not acceptable that Ireland and key other European Member States incur high environmental food-safety traceability charges, while third countries just sail in here and are simply allowed to avoid such costs and undercut our beef in prime EU markets.

    This Parliament has and must insist on one rule for everyone equally applied to the Mercosur countries, and until this equality rule applies, Ireland says no deal and no sell-out!

     
       




     

      Christophe Clergeau (S&D). – Monsieur le Président, chers collègues, jeudi matin, j’étais dans ma ville de Nantes, aux côtés des salariés de General Electric, qui s’apprête à supprimer près de 400 emplois dans son usine et son centre de recherche-développement consacrés à la production d’éoliennes maritimes.

    Il y a plus de dix ans, alors que j’étais vice-président de ma région, j’avais œuvré à la naissance de cette filière et montré aux citoyens que l’écologie pouvait créer des centaines d’emplois: d’ouvriers, de techniciens et d’ingénieurs. Aujourd’hui, je vois ces emplois disparaître parce que l’Europe et la France sont incapables de développer des projets éoliens en mer à un tarif qui permettrait de rémunérer une chaîne de valeur et des emplois européens, incapables d’imposer un contenu européen là où il y a pourtant un soutien public important.

    Nos usines risquent de fermer alors que nous en aurons besoin pour équiper les nouveaux parcs éoliens en mer. Pendant ce temps, les Chinois construisent des usines en Écosse et en Italie pour assembler des éoliennes essentiellement fabriquées en Chine. Nous parlons de politique industrielle et de compétitivité, mais, dans la vie réelle, nous laissons s’effondrer les filières des industries vertes et nous sacrifions les emplois.

    L’Europe va-t-elle enfin se réveiller, ou va-t-elle s’enferrer dans ce lent suicide collectif? Il est temps de réagir et de lutter.

     
       

     

      Mélanie Disdier (PfE). – Monsieur le Président, mes chers collègues, si je m’adresse à vous aujourd’hui, c’est pour vous parler d’une filière en danger: celle du bois.

    En 2020, toutes les grandes centrales syndicales et patronales du secteur de l’industrie de transformation du bois ont pris l’initiative d’une déclaration commune pour dire stop à l’exportation massive de grumes en Asie, et particulièrement en Chine. L’exportation du bois non transformé prend des proportions inquiétantes, et pas uniquement pour le chêne – comme c’est le cas dans la forêt de Mormal, qui m’est chère. Toutes les essences sont concernées ou le seront à court terme. Les menuisiers, artisans, constructeurs, fabricants de parquets sont très nombreux à s’alarmer, car ils sont inquiets pour leur avenir. Si les scieries sont privées d’approvisionnement, c’est toute la filière qui va être touchée à court terme.

    Dans un contexte de pénurie de matériaux, il est donc suicidaire de laisser perdurer la situation sans réagir. Le bois est devenu une ressource stratégique, qui fait partie intégrante de notre souveraineté, et une clé de la neutralité carbone. Il est grand temps que l’Union européenne s’empare de ce dossier. Des milliers d’emplois sont en jeu en France et en Europe.

     
       

     

      Dick Erixon (ECR). – Herr talman! Efter polisrazzior i Öst- och Sydeuropa tidigare i år beslagtogs Rolexklockor, guld, diamanter, smycken, lägenheter, villor, kryptovaluta, Lamborghini, Porsche och en Audi Q8.

    Ett enda kriminellt gäng misstänks ha stulit över sex miljarder kronor från coronafonden Next Generation, med hjälp av experter på bidragsansökningar, AI-verktyg och bluffbolag. När socialdemokrater och moderater släppte igenom coronafonden lovades rigorösa kontroller. Så blev det inte. Den överdimensionerade EU-budgeten göder korruption och slöseri, men hjälper även kriminella som hittat en ny kassako att mjölka genom ekobrottslighet.

    Bidragen är så stora och mottagarna så många att rigorösa kontroller inte är möjliga. Detta måste få ett slut.

     
       

     

      João Oliveira (The Left). – Senhor Presidente, o inquérito pós‑eleitoral feito pelo Parlamento Europeu mostrou que a principal preocupação dos povos é o custo de vida. Este Parlamento deveria estar a discutir as soluções para esse problema, mas nenhum outro grupo político aceitou fazer esse debate. Nenhum outro grupo político quis discutir as opções para combater o aumento do custo de vida, as medidas de controlo e fixação dos preços dos bens essenciais, medidas de combate aos preços especulativos que garantem lucros milionários dos grupos da distribuição da energia e dos combustíveis, das telecomunicações ou da banca.

    Deveríamos também estar a discutir as consequências das novas regras da governação económica. Em Portugal, o Governo acabou de apresentar uma proposta de Orçamento do Estado que mostra bem os impactos dessas novas regras, que mostra os condicionamentos e restrições orçamentais, as limitações nos serviços públicos e nas funções sociais do Estado, as restrições ao investimento; tudo isso em contraste com as políticas de privilégio aos grupos económicos e às multinacionais. Também este debate foi travado, porque, para grande parte deste Parlamento, verdadeiramente as condições de vida dos povos pouco interessam.

     
       

     

      Juan Fernando López Aguilar (S&D). – Señor presidente, señor comisario, la solidaridad y la cohesión son el modelo social europeo y si hay una amenaza que pende sobre ese modelo es la dificultad de acceso a la vivienda que recorre toda Europa.

    Este último fin de semana en Canarias, de nuevo, miles de personas han vuelto a salir a la calle para protestar contra lo que consideran que es un exceso de presión turística, porque en Canarias se ha producido un incremento de población de un 30 % en los últimos veinte años y porque, además, se han declarado en los últimos años 60 000 ofertas alojativas extrahoteleras, lo que equivale a doce hoteles con 250 camas cada uno. Pero no se han realizado las inversiones correspondientes ni en hospitales, ni en residencias, ni en redes eléctricas, ni en aeropuertos, ni en conexiones marítimas, ni tampoco en el ciclo del agua y en relación con los vertidos al mar.

    Y tenemos puestas nuestras esperanzas en la próxima Comisión Von der Leyen, en la que va a haber por fin un comisario encargado de vivienda, el danés Dan Jørgensen, que podrá movilizar fondos europeos contra los fondos de inversión, contra los fondos buitre, para generar, por fin, oferta de vivienda en alquiler o en venta que permita la emancipación de la gente joven y el acceso a la vivienda de la clase trabajadora. Eso significará una oportunidad de restaurar el modelo social europeo con una política de vivienda europea.

     
       

     

      Csaba Dömötör (PfE). – Tisztelt Elnök Úr! A legutóbbi uniós csúcson a felek arra jutottak, hogy fokozni kell az erőfeszítéseket az uniós versenyképesség növelésére. Ezzel egyet is értünk, de azt is szomorúan állapíthatjuk meg, hogy hiányzik a szókimondó párbeszéd arról, hogy mi is okozza Európa egyre nagyobb leszakadását a versenyképességi versenyben. Sok okot azonosíthatunk, de a legfontosabb mégiscsak az, hogy elszálltak az energiaárak.

    Azért szálltak el, mert Európa a brüsszeli intézmények nyomására ideológiai okokból hátat fordított a vezetékes gáznak. A helyette beszerzett cseppfolyós gáz jóval drágább. A zöld energia a legtöbb esetben sajnos szintén drágább, és ez drasztikus terhet ró az európai vállalatokra, kicsikre és nagyokra is. Nem véletlen, hogy egyre több vállalat helyezi át a termelését máshová. A Draghi-jelentés szerint Európában ma kétszer-háromszor magasabbak az áramárak az Egyesült Államokhoz képest, a gázárak pedig négyszer-ötször. Ha ez tartósan így marad, akkor Európa maradék versenyképessége is megy a levesbe. Nem kell beletörődnünk, hogy ez így legyen, újratervezésre van szükség.

     
       

     

      Thierry Mariani (PfE). – Monsieur le Président, le Liban est en danger de mort. Ni l’Union européenne ni la France ne sont à la hauteur du drame humain qui s’y joue. Face à cette guerre impitoyable, l’Union européenne s’entête dans ses certitudes et refuse de venir en aide à Damas, qui est pourtant en première ligne pour gérer l’accueil des réfugiés dans cette crise.

    Chaque jour, des milliers de personnes traversent la frontière pour chercher refuge et protection en Syrie. Aujourd’hui, ce sont déjà près de 240 000 personnes qui ont fait le choix de passer en Syrie, considérant que ce pays est un territoire sûr. Mais l’Europe et la France restent immobiles, tandis que l’Italie, elle, plaide pour renouer le dialogue avec la République arabe syrienne. La situation au Liban ne fait qu’empirer, et avec elle, si rien n’est fait, plane la menace d’une nouvelle vague migratoire de réfugiés vers l’Europe.

    Les Syriens, derrière Bachar el-Assad, ont résisté vaillamment aux islamistes qu’une partie d’entre vous, dans cet hémicycle, avait soutenus. Il est urgent de renouer les liens avec la Syrie. C’est l’intérêt des réfugiés qu’elle accueille, mais également des pays de la région, et c’est aussi l’intérêt de l’Europe.

     
       



     

      Marko Vešligaj (S&D). – Poštovani predsjedavajući, uvažene kolege, ruralna područja čine 83 posto teritorija Europske unije, a u njima živi 137 milijuna ljudi.

    Ova područja su ključna za proizvodnju temeljnih resursa poput hrane i energije. Ipak, unatoč njihovoj važnosti, ruralne zajednice sustavno se marginaliziraju konkretnim politikama i programima financiranja. Da, postoje dokumenti poput Ruralnog pakta i dugoročne vizije za ruralna područja, koje su dobre smjernice, ali njihova implementacija je spora, a problemi se gomilaju.

    Iseljavanje, manjak javnih usluga, neadekvatna infrastruktura svakodnevica su lokalnih zajednica u ruralnim prostorima, a nedostatak podrške viših razina vlasti stvara neodrživu situaciju. Danas je dodatno ruralna Europa uslijed klimatskih promjena suočena i s prirodnim katastrofama, od klizanja tla, suša, poplava do potresa i požara.

    I za takve situacije trebamo brže i jednostavnije financijske mehanizme. Zato je nužno osigurati izravna i lako dostupna europska sredstva kao garanciju razvoja i održivosti ruralnih područja i ostanka ljudi u njima.

     
       



     

      Angéline Furet (PfE). – Monsieur le Président, sous couvert d’un humanisme totalement dévoyé et de faux bons sentiments, des politiciens traîtres aux peuples européens promeuvent une idéologie fanatique qu’ils ont érigée en dogme: l’immigrationnisme.

    Malheureusement, cette volonté de suicide altruiste imposée aux Européens a des conséquences concrètes au quotidien. La ville du Mans, en France, en est un triste exemple. L’immigration y a plus que doublé en quinze ans et, avec elle, les délits et les crimes. Augmentation des vols de plus de 300 %, augmentation des viols de plus de 500 % et augmentation des attaques au couteau, elle, de 1 000 %, carrément. Oui, dix fois plus qu’avant l’arrivée sur notre sol de ces étrangers délinquants, de ces criminels importés aux frais des Européens que vous appelez les «migrants».

    Le sang des victimes de cette abomination est sur les mains des membres de la Commission européenne qui ont ordonné cette submersion et sur les mains des députés qui l’ont votée.

     
       


     

      President. – That concludes this item.

     

    17. Agenda of the next sitting

     

      President. – The next sitting is tomorrow, Tuesday, 22 October 2024 at 09:00. The agenda has been published and is available on the European Parliament website.

     

    18. Approval of the minutes of the sitting

     

      President. – The minutes of the sitting will be submitted to Parliament for its approval tomorrow, at the beginning of the afternoon.

     

    19. Closure of the sitting

       

    (The sitting closed at 22:02)

     

    MIL OSI Europe News –

    January 24, 2025
  • MIL-OSI: First Community Bankshares, Inc. Announces Third Quarter 2024 Results and Quarterly Cash Dividend

    Source: GlobeNewswire (MIL-OSI)

    BLUEFIELD, Va., Oct. 22, 2024 (GLOBE NEWSWIRE) — First Community Bankshares, Inc. (NASDAQ: FCBC) (http://www.firstcommunitybank.com) (the “Company”) today reported its unaudited results of operations and other financial information for the quarter ended September 30, 2024. The Company reported net income of $13.03 million, or $0.71 per diluted common share, for the quarter ended September 30, 2024.  Net income for the nine months ended September 30, 2024, was $38.56 million or $2.09 per diluted common share.   

    The Company also declared a quarterly cash dividend to common shareholders of thirty-one cents, $0.31 per common share. The quarterly dividend is payable to common shareholders of record on November 8, 2024, and is expected to be paid on or about November 22, 2024. This marks the 39th consecutive year of regular dividends to common shareholders.

    The Company is working with borrowers and customers in North Carolina, Tennessee, Virginia, and southern West Virginia affected by the devastating floods, power outages, and water shortages from Hurricane Helene.  This includes payment relief for affected borrowers.  We will continue to monitor the situation over the coming weeks as it relates to asset quality.

    Third Quarter 2024 Highlights

    Income Statement

    • Net income of $13.03 million for the third quarter of 2024, was a decrease of $1.61 million, or 10.98%, from the same quarter of 2023.  Net income of $38.56 million for the first nine months of 2024, was an increase of $2.33 million, or 6.42%, from the same period of 2023.  
    • Net interest income decreased $1.75 million compared to the same quarter in 2023, primarily due to increases in rates paid on interest-bearing deposits.    
    • Net interest margin of 4.41% was a decrease of 10 basis points over the same quarter of 2023.  The yield on earning assets increased 26 basis points from the same period of 2023 and is attributable to an increase in interest income resulting from an increase in yield.  While there was an increase in yield for both loans and securities available for sale; the average balances decreased.  The average balance for interest-bearing deposits with banks increased $219.59 million over the same period of 2023; however, there was no change in the yield from the same period of 2023.  The yield on interest-bearing liabilities increased 58 basis points when compared with the same period of 2023 and is primarily attributable to increased rates on interest-bearing deposit liabilities.  
    • Noninterest income increased approximately $830 thousand, or 8.63%, when compared to the same quarter of 2023.  Noninterest income for the third quarter of 2024 included a gain of $825 thousand from the sale of  two closed branch properties; noninterest income for the same period of 2023 included a gain of $204 thousand for the sale of a closed branch property.  Noninterest expense increased $1.26 million, or 5.52%.    
    • Annualized return on average assets (“ROA”) was 1.60% for the third quarter and 1.60% for the first nine months of 2024 compared to 1.74% and 1.49% for the same periods, respectively, of 2023. Annualized return on average common equity (“ROE”) was 10.04% for the third quarter and 10.08% for the first nine months of 2024 compared to 11.63% and 10.25% for the same periods, respectively, of 2023.  Annualized return on average tangible common equity (“ROTCE”) was 14.46% for the third quarter and 14.61% for the first nine months of 2024 compared to 17.11% and 14.94% for the same periods, respectively, of 2023.

    Balance Sheet and Asset Quality

    • Consolidated assets totaled $3.22 billion at September 30, 2024.  
    • Loans decreased $128.19 million, or 4.98%, from December 31, 2023.  Securities available for sale decreased $114.29 million, or 40.68%, from December 31, 2023.  Deposits decreased $63.07 million, or 2.32%.  The net effect of these balance sheet changes resulted in an increase in cash and cash equivalents of $198.92 million, or 170.86%.    
    • The Company repurchased 12,854 common shares during the third quarter of 2024 at a total cost of $469 thousand.  The Company repurchased 257,294 common shares during the first nine months of 2024 at a total cost of $8.72 million.  
    • Non-performing loans to total loans increased to 0.82% when compared with the same quarter of 2023.  The Company experienced net charge-offs for the third quarter of 2024 of $1.13 million, or 0.18% of annualized average loans, compared to net charge-offs of $1.46 million, or 0.22%, of annualized average loans for the same period in 2023.
    • The allowance for credit losses to total loans was 1.44% at September 30, 2024, compared to 1.41% at December 31, 2023, and 1.39% for September 30, 2023.
    • Book value per share at September 30, 2024, was $ 28.47, an increase of $1.27 from year-end 2023.

    Non-GAAP Financial Measures

    In addition to financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company uses certain non-GAAP financial measures that provide useful information for financial and operational decision making, evaluating trends, and comparing financial results to other financial institutions. The non-GAAP financial measures presented in this news release include “tangible book value per common share,” “return on average tangible common equity,” “adjusted earnings,” “adjusted diluted earnings per share,” “adjusted return on average assets,” “adjusted return on average common equity,” “adjusted return on average tangible common equity,” and certain financial measures presented on a fully taxable equivalent (“FTE”) basis. FTE basis is calculated using the federal statutory income tax rate of 21%.  Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as a reconciliation to that comparable GAAP financial measure can be found in the attached tables to this press release.  While the Company believes certain non-GAAP financial measures enhance the understanding of its business and performance, they are supplemental and not a substitute for, or more important than, financial measures prepared in accordance with GAAP and may not be comparable to those reported by other financial institutions.

    About First Community Bankshares, Inc.

    First Community Bankshares, Inc., a financial holding company headquartered in Bluefield, Virginia, provides banking products and services through its wholly owned subsidiary First Community Bank. First Community Bank operated 53 branch banking locations in Virginia, West Virginia, North Carolina, and Tennessee as of September 30, 2024. First Community Bank offers wealth management and investment advice and services through its Trust Division and through its wholly owned subsidiary, First Community Wealth Management, which collectively managed and administered $1.64 billion in combined assets as of September 30, 2024. The Company reported consolidated assets of $3.22 billion as of September 30, 2024. The Company’s common stock is listed on the NASDAQ Global Select Market under the trading symbol, “FCBC”. Additional investor information is available on the Company’s website at http://www.firstcommunitybank.com.

    This news release may include forward-looking statements. These forward-looking statements are based on current expectations that involve risks, uncertainties, and assumptions. Should one or more of these risks or uncertainties materialize or should underlying assumptions prove incorrect, actual results may differ materially. These risks include: changes in business or other market conditions; the timely development, production and acceptance of new products and services; the challenge of managing asset/liability levels; the management of credit risk and interest rate risk; the difficulty of keeping expense growth at modest levels while increasing revenues; changes in banking laws and regulations; the degree of competition by traditional and non-traditional competitors; the impact of natural disasters, extreme weather events, military conflict , terrorism or other geopolitical events; and other risks detailed from time to time in the Company’s Securities and Exchange Commission reports including, but not limited to, the Annual Report on Form 10-K for the most recent fiscal year end. Pursuant to the Private Securities Litigation Reform Act of 1995, the Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.

     
    CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
    (Amounts in thousands, except share and per share data)                                                        
      Three Months Ended     Nine Months Ended  
      September 30,     June 30,     March 31,     December 31,     September 30,     September 30,  
      2024     2024     2024     2023     2023     2024     2023  
    Interest income                                                        
    Interest and fees on loans   $ 32,120     $ 32,696     $ 33,418     $ 33,676     $ 33,496     $ 98,234     $ 93,051  
    Interest on securities     1,070       1,211       1,698       1,888       1,912       3,979       6,068  
    Interest on deposits in banks     3,702       2,882       913       438       697       7,497       2,044  
    Total interest income     36,892       36,789       36,029       36,002       36,105       109,710       101,163  
    Interest expense                                                        
    Interest on deposits     5,298       4,877       4,365       3,935       2,758       14,540       5,406  
    Interest on borrowings     –       –       35       4       –       35       136  
    Total interest expense     5,298       4,877       4,400       3,939       2,758       14,575       5,542  
    Net interest income     31,594       31,912       31,629       32,063       33,347       95,135       95,621  
    Provision for credit losses     1,360       144       1,011       1,029       1,109       2,515       6,956  
    Net interest income after provision     30,234       31,768       30,618       31,034       32,238       92,620       88,665  
    Noninterest income     10,452       9,342       9,259       10,462       9,622       29,053       26,990  
    Noninterest expense     24,177       24,897       23,386       26,780       22,913       72,460       68,397  
    Income before income taxes     16,509       16,213       16,491       14,716       18,947       49,213       47,258  
    Income tax expense     3,476       3,527       3,646       2,932       4,307       10,649       11,022  
    Net income   $ 13,033     $ 12,686     $ 12,845     $ 11,784     $ 14,640     $ 38,564     $ 36,236  
                                                             
                                                             
    Earnings per common share                                                        
    Basic   $ 0.71     $ 0.69     $ 0.70     $ 0.64     $ 0.78     $ 2.10     $ 2.03  
    Diluted   $ 0.71     $ 0.71     $ 0.71     $ 0.66     $ 0.79     $ 2.09     $ 2.06  
    Cash dividends per common share                                                        
    Regular     0.31       0.29       0.29       0.29       0.29       0.89       0.87  
    Weighted average shares outstanding                                                        
    Basic     18,279,612       18,343,958       18,476,128       18,530,114       18,786,032       18,366,249       17,816,505  
    Diluted     18,371,907       18,409,876       18,545,910       18,575,226       18,831,836       18,432,023       17,857,494  
    Performance ratios                                                        
    Return on average assets     1.60 %     1.58 %     1.60 %     1.43 %     1.74 %     1.60 %     1.49 %
    Return on average common equity     10.04 %     10.02 %     10.18 %     9.39 %     11.63 %     10.08 %     10.25 %
    Return on average tangible common equity(1)     14.46 %     14.54 %     14.82 %     13.82 %     17.11 %     14.61 %     14.94 %
    ____________
    (1) A non-GAAP financial measure defined as net income divided by average stockholders’ equity less average goodwill and other intangible assets.
     
    CONDENSED CONSOLIDATED QUARTERLY NONINTEREST INCOME AND EXPENSE  (Unaudited)
     
    (Amounts in thousands)   Three Months Ended     Nine Months Ended  
      September 30,     June 30,     March 31,     December 31,     September 30,     September 30,  
      2024     2024     2024     2023     2023     2024     2023  
    Noninterest income                                                        
    Wealth management   $ 1,071     $ 1,064     $ 1,099     $ 1,052     $ 1,145     $ 3,234     $ 3,127  
    Service charges on deposits     3,661       3,428       3,310       3,637       3,729       10,399       10,359  
    Other service charges and fees     3,697       3,670       3,450       3,541       3,564       10,817       10,106  
    (Loss) gain on sale of securities     –       –       –       –       –       –       (21 )
    Other operating income     2,023       1,180       1,400       2,232       1,184       4,603       3,419  
    Total noninterest income   $ 10,452     $ 9,342     $ 9,259     $ 10,462     $ 9,622     $ 29,053     $ 26,990  
    Noninterest expense                                                        
    Salaries and employee benefits   $ 13,129     $ 12,491     $ 12,581     $ 12,933     $ 12,673     $ 38,201     $ 36,954  
    Occupancy expense     1,270       1,309       1,378       1,252       1,271       3,957       3,715  
    Furniture and equipment expense     1,574       1,687       1,545       1,489       1,480       4,806       4,389  
    Service fees     2,461       2,427       2,449       2,255       2,350       7,337       6,653  
    Advertising and public relations     967       933       796       843       968       2,696       2,457  
    Professional fees     221       330       372       787       172       923       780  
    Amortization of intangibles     536       530       530       536       536       1,596       1,195  
    FDIC premiums and assessments     365       364       369       376       392       1,098       1,135  
    Merger expense     –       –       –       –       –       –       2,393  
    Litigation expense     –       1,800       –       3,000       –       1,800       –  
    Other operating expense     3,654       3,026       3,366       3,309       3,071       10,046       8,726  
    Total noninterest expense   $ 24,177     $ 24,897     $ 23,386     $ 26,780     $ 22,913     $ 72,460     $ 68,397  
     
    RECONCILIATION OF GAAP NET INCOME TO NON-GAAP ADJUSTED EARNINGS (Unaudited)
     
    (Amounts in thousands, except per share data)   Three Months Ended     Nine Months Ended  
      September 30,     June 30,     March 31,     December 31,     September 30,     September 30,  
      2024     2024     2024     2023     2023     2024     2023  
    Adjusted Net Income for diluted earnings per share   $ 13,033     $ 12,686     $ 12,845     $ 12,314     $ 14,855     $ 38,564     $ 36,828  
    Non-GAAP adjustments:                                                        
    Loss (gain) on sale of securities     –       –       –       –       –       –       21  
    Merger expense     –       –       –       –       –       –       2,393  
    Day 2 provision for allowance for credit losses – Surrey     –       –       –       –       –       –       1,614  
    Litigation expense     –       1,800       –       3,000       –       1,800       –  
    Other items(1)     (825 )     –       –       –       (204 )     (825 )     –  
    Total adjustments     (825 )     1,800       –       3,000       (204 )     975       4,028  
    Tax effect     (198 )     432       –       720       (49 )     234       532  
    Adjusted earnings, non-GAAP   $ 12,406     $ 14,054     $ 12,845     $ 14,594     $ 14,700     $ 39,305     $ 40,324  
                                                             
    Adjusted diluted earnings per common share, non-GAAP   $ 0.68     $ 0.76     $ 0.69     $ 0.79     $ 0.78     $ 2.13     $ 2.26  
    Performance ratios, non-GAAP                                                        
    Adjusted return on average assets     1.53 %     1.75 %     1.60 %     1.77 %     1.75 %     1.63 %     1.66 %
    Adjusted return on average common equity     9.56 %     11.10 %     10.18 %     11.63 %     11.68 %     10.27 %     11.40 %
    Adjusted return on average tangible common equity (2)     13.77 %     16.11 %     14.82 %     17.11 %     17.18 %     14.89 %     16.62 %
    ____________
    (1) Includes other non-recurring income and expense items.
    (2) A non-GAAP financial measure defined as adjusted earnings divided by average stockholders’ equity less average goodwill and other intangible assets.
     
    AVERAGE BALANCE SHEETS AND NET INTEREST INCOME ANALYSIS (Unaudited)
     
        Three Months Ended September 30,  
        2024     2023  
        Average             Average
    Yield/
        Average             Average
    Yield/
     
    (Amounts in thousands)   Balance     Interest(1)     Rate(1)     Balance     Interest(1)     Rate(1)  
    Assets                                                
    Earning assets                                                
    Loans(2)(3)   $ 2,455,807     $ 32,201       5.22 %   $ 2,604,885     $ 33,566       5.11 %
    Securities available for sale     133,654       1,099       3.27 %     284,659       1,952       2.72 %
    Interest-bearing deposits     270,440       3,701       5.44 %     50,855       697       5.44 %
    Total earning assets     2,859,901       37,001       5.15 %     2,940,399       36,215       4.89 %
    Other assets     371,358                       393,001                  
    Total assets   $ 3,231,259                     $ 3,333,400                  
                                                     
    Liabilities and stockholders’ equity                                                
    Interest-bearing deposits                                                
    Demand deposits   $ 656,780     $ 234       0.14 %   $ 699,066     $ 165       0.09 %
    Savings deposits     886,766       3,735       1.68 %     862,121       1,941       0.89 %
    Time deposits     245,020       1,329       2.16 %     263,940       652       0.98 %
    Total interest-bearing deposits     1,788,566       5,298       1.18 %     1,825,127       2,758       0.60 %
    Borrowings                                                
    Retail repurchase agreements     1,054       –       0.05 %     1,254       –       N/M  
    Total borrowings     1,054       –       0.05 %     1,254       –       N/M  
    Total interest-bearing liabilities     1,789,620       5,298       1.18 %     1,826,381       2,758       0.60 %
    Noninterest-bearing demand deposits     877,472                       964,093                  
    Other liabilities     47,892                       43,574                  
    Total liabilities     2,714,984                       2,834,048                  
    Stockholders’ equity     516,275                       499,352                  
    Total liabilities and stockholders’ equity   $ 3,231,259                     $ 3,333,400                  
    Net interest income, FTE(1)           $ 31,703                     $ 33,457          
    Net interest rate spread                     3.97 %                     4.29 %
    Net interest margin, FTE(1)                     4.41 %                     4.51 %
    ____________
    (1) Interest income and average yield/rate are presented on a FTE, non-GAAP, basis using the federal statutory income tax rate of 21%.
    (2) Nonaccrual loans are included in the average balance; however, no related interest income is recorded during the period of nonaccrual.
    (3) Interest on loans includes non-cash and accelerated purchase accounting accretion of $592 thousand and $874 thousand for the three months ended September 30, 2024 and 2023, respectively.
     
    AVERAGE BALANCE SHEETS AND NET INTEREST INCOME ANALYSIS (Unaudited)
     
        Nine Months Ended September 30,  
        2024     2023  
        Average             Average
    Yield/
        Average             Average
    Yield/
     
    (Amounts in thousands)   Balance     Interest(1)     Rate(1)     Balance     Interest(1)     Rate(1)  
    Assets                                                
    Earning assets                                                
    Loans(2)(3)   $ 2,501,209     $ 98,479       5.26 %   $ 2,523,814     $ 93,261       4.94 %
    Securities available for sale     172,331       4,073       3.16 %     306,435       6,191       2.70 %
    Interest-bearing deposits     182,773       7,499       5.48 %     51,759       2,047       5.29 %
    Total earning assets     2,856,313       110,051       5.15 %     2,882,008       101,499       4.71 %
    Other assets     372,663                       366,243                  
    Total assets   $ 3,228,976                     $ 3,248,251                  
                                                     
    Liabilities and stockholders’ equity                                                
    Interest-bearing deposits                                                
    Demand deposits   $ 662,433     $ 570       0.11 %   $ 682,820     $ 225       0.04 %
    Savings deposits     875,797       10,730       1.64 %     850,411       3,731       0.59 %
    Time deposits     247,088       3,240       1.75 %     272,435       1,450       0.71 %
    Total interest-bearing deposits     1,785,318       14,540       1.09 %     1,805,666       5,406       0.40 %
    Borrowings                                                
    Federal funds purchased     839       35       5.52 %     3,532       135       5.11 %
    Retail repurchase agreements     1,061       –       0.05 %     1,674       1       0.06 %
    Total borrowings     1,900       35       2.46 %     5,206       136       3.49 %
    Total interest-bearing liabilities     1,787,218       14,575       1.09 %     1,810,872       5,542       0.41 %
    Noninterest-bearing demand deposits     883,013                       924,591                  
    Other liabilities     47,772                       40,014                  
    Total liabilities     2,718,003                       2,775,477                  
    Stockholders’ equity     510,973                       472,774                  
    Total liabilities and stockholders’ equity   $ 3,228,976                     $ 3,248,251                  
    Net interest income, FTE(1)           $ 95,476                     $ 95,957          
    Net interest rate spread                     4.06 %                     4.30 %
    Net interest margin, FTE(1)                     4.46 %                     4.45 %
    ____________
    (1) Interest income and average yield/rate are presented on a FTE, non-GAAP, basis using the federal statutory income tax rate of 21%.
    (2) Nonaccrual loans are included in the average balance; however, no related interest income is recorded during the period of nonaccrual.
    (3) Interest on loans includes non-cash and accelerated purchase accounting accretion of $2.04 million and $1.95 million for the nine months ended September 30, 2024 and 2023, respectively.
     
    CONDENSED CONSOLIDATED QUARTERLY BALANCE SHEETS (Unaudited)
     
        September 30,     June 30,     March 31,     December 31,     September 30,  
    (Amounts in thousands, except per share data)   2024     2024     2024     2023     2023  
    Assets                                        
    Cash and cash equivalents   $ 315,338     $ 329,877     $ 248,905     $ 116,420     $ 113,397  
    Debt securities available for sale, at fair value     166,669       129,686       166,247       280,961       275,332  
    Loans held for investment, net of unearned income     2,444,113       2,473,268       2,519,833       2,572,298       2,593,472  
    Allowance for credit losses     (35,118 )     (34,885 )     (35,461 )     (36,189 )     (36,031 )
    Loans held for investment, net     2,408,995       2,438,383       2,484,372       2,536,109       2,557,441  
    Premises and equipment, net     49,654       50,528       51,333       50,680       51,205  
    Other real estate owned     346       100       374       192       243  
    Interest receivable     9,883       9,984       10,719       10,881       10,428  
    Goodwill     143,946       143,946       143,946       143,946       143,946  
    Other intangible assets     13,550       14,085       14,615       15,145       15,681  
    Other assets     115,980       116,230       115,470       114,211       116,552  
    Total assets   $ 3,224,361     $ 3,232,819     $ 3,235,981     $ 3,268,545     $ 3,284,225  
                                             
    Liabilities                                        
    Deposits                                        
    Noninterest-bearing   $ 869,723     $ 889,462     $ 902,396     $ 931,920     $ 944,301  
    Interest-bearing     1,789,530       1,787,810       1,779,819       1,790,405       1,801,835  
    Total deposits     2,659,253       2,677,272       2,682,215       2,722,325       2,746,136  
    Securities sold under agreements to repurchase     954       894       1,006       1,119       1,029  
    Interest, taxes, and other liabilities     43,460       45,769       45,816       41,807       41,393  
    Total liabilities     2,703,667       2,723,935       2,729,037       2,765,251       2,788,558  
                                             
    Stockholders’ equity                                        
    Common stock     18,291       18,270       18,413       18,502       18,671  
    Additional paid-in capital     168,691       168,272       173,041       175,841       180,951  
    Retained earnings     342,121       334,756       327,389       319,902       313,489  
    Accumulated other comprehensive loss     (8,409 )     (12,414 )     (11,899 )     (10,951 )     (17,444 )
    Total stockholders’ equity     520,694       508,884       506,944       503,294       495,667  
    Total liabilities and stockholders’ equity   $ 3,224,361     $ 3,232,819     $ 3,235,981     $ 3,268,545     $ 3,284,225  
                                             
    Shares outstanding at period-end     18,290,938       18,270,273       18,413,088       18,502,396       18,671,470  
    Book value per common share   $ 28.47     $ 27.85     $ 27.53     $ 27.20     $ 26.55  
    Tangible book value per common share(1)     19.86       19.20       18.92       18.60       18.00  
    ____________
    (1) A non-GAAP financial measure defined as stockholders’ equity less goodwill and other intangible assets, divided by shares outstanding.
     
    SELECTED CREDIT QUALITY INFORMATION (Unaudited)
     
        September 30,     June 30,     March 31,     December 31,     September 30,  
    (Amounts in thousands)   2024     2024     2024     2023     2023  
    Allowance for Credit Losses                                        
    Balance at beginning of period:                                        
    Allowance for credit losses – loans   $ 34,885     $ 35,461     $ 36,189     $ 36,031     $ 36,177  
    Allowance for credit losses – loan commitments     441       746       746       758       964  
    Total allowance for credit losses beginning of period     35,326       36,207       36,935       36,789       37,141  
    Adjustments to beginning balance:                                        
    Allowance for credit losses – loans – Surrey acquisition for purchased credit deteriorated loans     –       –       –       –       –  
    Allowance for credit losses – loan commitments     –       –       –       –       –  
    Net Adjustments     –       –       –       –       –  
    Provision for credit losses:                                        
    Provision for credit losses – loans     1,360       449       1,011       1,041       1,315  
    (Recovery of) provision for credit losses – loan commitments     –       (305 )     –       (12 )     (206 )
    Total provision for credit losses – loans and loan commitments     1,360       144       1,011       1,029       1,109  
    Charge-offs     (1,799 )     (1,599 )     (2,448 )     (2,105 )     (2,157 )
    Recoveries     672       574       709       1,222       696  
    Net (charge-offs) recoveries     (1,127 )     (1,025 )     (1,739 )     (883 )     (1,461 )
    Balance at end of period:                                        
    Allowance for credit losses – loans     35,118       34,885       35,461       36,189       36,031  
    Allowance for credit losses – loan commitments     441       441       746       746       758  
    Ending balance   $ 35,559     $ 35,326     $ 36,207     $ 36,935     $ 36,789  
                                             
    Nonperforming Assets                                        
    Nonaccrual loans   $ 19,754     $ 19,815     $ 19,617     $ 19,356     $ 18,366  
    Accruing loans past due 90 days or more     176       19       30       104       59  
    Modified loans past due 90 days or more     –       –       –       –       –  
    Total nonperforming loans     19,930       19,834       19,647       19,460       18,425  
    OREO     346       100       374       192       243  
    Total nonperforming assets   $ 20,276     $ 19,934     $ 20,021     $ 19,652     $ 18,668  
                                             
                                             
    Additional Information                                        
    Total modified loans   $ 2,320     $ 2,290     $ 2,177     $ 1,873     $ 1,674  
                                             
    Asset Quality Ratios                                        
    Nonperforming loans to total loans     0.82 %     0.80 %     0.78 %     0.76 %     0.71 %
    Nonperforming assets to total assets     0.63 %     0.62 %     0.62 %     0.60 %     0.57 %
    Allowance for credit losses to nonperforming loans     176.21 %     175.88 %     180.49 %     185.97 %     195.55 %
    Allowance for credit losses to total loans     1.44 %     1.41 %     1.41 %     1.41 %     1.39 %
    Annualized net charge-offs (recoveries) to average loans     0.18 %     0.16 %     0.27 %     0.14 %     0.22 %
    FOR MORE INFORMATION, CONTACT:
    David D. Brown
    (276) 326-9000

    The MIL Network –

    January 24, 2025
  • MIL-OSI: Enphase Energy Reports Financial Results for the Third Quarter of 2024

    Source: GlobeNewswire (MIL-OSI)

    FREMONT, Calif., Oct. 22, 2024 (GLOBE NEWSWIRE) — Enphase Energy, Inc. (NASDAQ: ENPH), a global energy technology company and the world’s leading supplier of microinverter-based solar and battery systems, announced today financial results for the third quarter of 2024, which included the summary below from its President and CEO, Badri Kothandaraman.

    We reported quarterly revenue of $380.9 million in the third quarter of 2024, along with 48.1% for non-GAAP gross margin. We shipped 1,731,768 microinverters, or approximately 730.0 megawatts DC, and 172.9 megawatt hours of IQ® Batteries.

    Financial highlights for the third quarter of 2024 are listed below:

    • Quarterly revenue of $380.9 million
    • GAAP gross margin of 46.8%; non-GAAP gross margin of 48.1% with net IRA benefit
    • Non-GAAP gross margin of 38.9%, excluding net IRA benefit of 9.2%
    • GAAP operating income of $49.8 million; non-GAAP operating income of $101.4 million
    • GAAP net income of $45.8 million; non-GAAP net income of $88.4 million
    • GAAP diluted earnings per share of $0.33, non-GAAP diluted earnings per share of $0.65
    • Free cash flow of $161.6 million; ending cash, cash equivalents, and marketable securities of $1.77 billion

    Our revenue and earnings for the third quarter of 2024 are provided below, compared with the prior quarter:

    (In thousands, except per share and percentage data)

      GAAP   Non-GAAP
      Q3 2024   Q2 2024   Q3 2023   Q3 2024   Q2 2024   Q3 2023
    Revenue $ 380,873     $ 303,458     $ 551,082     $ 380,873     $ 303,458     $ 551,082  
    Gross margin   46.8 %     45.2 %     47.5 %     48.1 %     47.1 %     48.4 %
    Operating expenses $ 128,383     $ 135,367     $ 144,024     $ 81,612     $ 81,706     $ 99,027  
    Operating income $ 49,788     $ 1,799     $ 117,989     $ 101,411     $ 61,080     $ 167,593  
    Net income $ 45,762     $ 10,833     $ 113,953     $ 88,402     $ 58,824     $ 141,849  
    Basic EPS $ 0.34     $ 0.08     $ 0.84     $ 0.65     $ 0.43     $ 1.04  
    Diluted EPS $ 0.33     $ 0.08     $ 0.80     $ 0.65     $ 0.43     $ 1.02  
                                                   

    Total revenue for the third quarter of 2024 was $380.9 million, compared to $303.5 million in the second quarter of 2024. Our revenue in the United States for the third quarter of 2024 increased approximately 43%, compared to the second quarter of 2024. The increase was due to higher shipments to distributors as inventory returned to normal levels. Our revenue in Europe decreased approximately 15% for the third quarter of 2024, compared to the second quarter of 2024. The decline in revenue was the result of a further softening in European demand.

    Our non-GAAP gross margin was 48.1% in the third quarter of 2024, compared to 47.1% in the second quarter of 2024. Our non-GAAP gross margin, excluding net IRA benefit, was 38.9% in the third quarter of 2024, compared to 41.0% in the second quarter of 2024.

    Our non-GAAP operating expenses were $81.6 million in the third quarter of 2024, compared to $81.7 million in the second quarter of 2024. Our non-GAAP operating income was $101.4 million in the third quarter of 2024, compared to $61.1 million in the second quarter of 2024.

    We exited the third quarter of 2024 with $1.77 billion in cash, cash equivalents, and marketable securities and generated $170.1 million in cash flow from operations in the third quarter of 2024. Our capital expenditures were $8.5 million in the third quarter of 2024, compared to $9.6 million in the second quarter of 2024.

    In the third quarter of 2024, we repurchased 434,947 shares of our common stock at an average price of $114.48 per share for a total of approximately $49.8 million. We also spent approximately $6.3 million dollars by withholding shares to cover taxes for employee stock vesting that reduced the diluted shares by 59,607 shares.

    We shipped 172.9 megawatt hours of IQ Batteries in the third quarter of 2024, compared to 120.2 megawatt hours in the second quarter of 2024. We are now shipping our third generation of IQ Batteries, the IQ® Battery 5P™, to the United States, Puerto Rico, Mexico, Canada, Australia, the United Kingdom, Italy, France, the Netherlands, Luxembourg, and Belgium. More than 9,000 installers worldwide are certified to install our IQ Batteries, compared to more than 7,400 installers worldwide in the second quarter of 2024.

    During the third quarter of 2024, we shipped approximately 1,176,000 microinverters from our contract manufacturing facilities in the United States that we booked for 45X production tax credits. We began shipping IQ8HC™ Microinverters with higher domestic content, produced at our contract manufacturing facilities in the United States. We expect to begin shipping our commercial microinverters, and batteries with higher domestic content, produced at our United States contract manufacturing facilities in the fourth quarter of 2024.

    During the third quarter of 2024, we launched AI-based software that is designed to optimize energy use by integrating solar and consumption forecasting with electricity tariff. This is intended to help consumers maximize savings as energy markets become increasingly complex, such as with dynamic electricity rates in parts of Europe and NEM 3.0 in California. We are gearing up to launch our second-generation IQ® EV charger, the 3-Phase IQ Battery with backup, and the IQ® Balcony Solar Kit all for the European market – pushing the boundaries of innovation. Finally, our fourth-generation energy system, featuring the IQ® Meter Collar, 10 kWh IQ Battery, and enhanced IQ® Combiner, is expected to debut in the United States in early 2025, targeting a substantial reduction in installation costs.

    BUSINESS HIGHLIGHTS

    On Oct. 16, 2024, Enphase Energy announced that it started shipping IQ8™ Microinverters to support newer, high-powered solar panels in select countries and territories, including the Netherlands, Austria, New Caledonia, and Malta.

    On Oct. 9, 2024, Enphase Energy announced that it is expanding its support for grid services programs – or virtual power plants (VPPs) – in New Hampshire, North Carolina, and California, powered by the new IQ Battery 5P.

    On Oct. 3, 2024, Enphase Energy announced the launch of its IQ8X™ Microinverters in Australia, and that all IQ8 Microinverters activated starting Oct. 1, 2024 in Australia come with an industry-leading 25-year limited warranty, currently the longest standard residential warranty in the Australian market.

    On Sept. 24, 2024, Enphase Energy announced the launch of its most powerful Enphase® Energy System™ to-date, featuring the new IQ Battery 5P and IQ8 Microinverters, for customers in India.

    On Sept. 16, 2024, Enphase Energy announced that it started shipping the IQ Battery 5P in Belgium. Enphase also introduced IQ® Energy Management, its new AI-based energy management software to enable support for dynamic electricity rates and the integration of third-party EV chargers and heat pumps in Belgium.

    On Sept. 10, 2024, Enphase Energy announced initial shipments of IQ8HC Microinverters supplied from contract manufacturing facilities in the United States with higher domestic content than previous models. The microinverters have SKUs with a “DOM” suffix, indicating the increased amount of domestic content.

    On Sept. 4, 2024, Enphase Energy announced a solution for expanding legacy net energy metering (NEM) solar energy systems in California without penalty using new Enphase Energy Systems configurations with IQ® Microinverters, IQ Batteries, and Enphase Power Control.

    On Aug. 27, 2024, Enphase Energy announced the availability of pre-orders for IQ Battery 5Ps produced in the United States. Pre-orders are also available for IQ8HC Microinverters, IQ8P-3P™ Microinverters, and IQ8X Microinverters produced in the United States with higher domestic content.

    On Aug. 19, 2024, Enphase Energy announced that it started shipping the IQ Battery 5P in the Netherlands. Enphase also introduced IQ Energy Management, its new energy management software to enable support for dynamic electricity rates and the integration of third-party EV chargers and heat pumps in the Netherlands.

    On Aug. 8, 2024, Enphase Energy announced the launch of its new North American Charging Standard (NACS) connectors for its entire line of IQ EV Chargers. NACS connectors and charger ports have recently become the industry standard embraced by several major automakers for electric vehicles (EVs).

    On Aug. 5, 2024, Enphase Energy announced that it started shipping IQ8P™ and IQ8HC Microinverters to support newer, high-powered solar panels in select countries throughout the Caribbean.

    On Aug. 1, 2024, Enphase Energy announced that it started shipping IQ8 Microinverters to support newer, high-powered solar modules in select countries throughout Europe, including France, Germany, Spain, Bulgaria, Estonia, Slovakia, and Croatia.

    FOURTH QUARTER 2024 FINANCIAL OUTLOOK

    For the fourth quarter of 2024, Enphase Energy estimates both GAAP and non-GAAP financial results as follows:

    • Revenue to be within a range of $360.0 million to $400.0 million, which includes shipments of 140 to 160 megawatt hours of IQ Batteries
    • GAAP gross margin to be within a range of 47.0% to 50.0% with net IRA benefit
    • Non-GAAP gross margin to be within a range of 49.0% to 52.0% with net IRA benefit and 39.0% to 42.0% excluding net IRA benefit. Non-GAAP gross margin excludes stock-based compensation expense and acquisition related amortization
    • Net IRA benefit to be within a range of $38.0 million to $41.0 million based on estimated shipments of 1,300,000 units of U.S. manufactured microinverters
    • GAAP operating expenses to be within a range of $135.0 million to $139.0 million
    • Non-GAAP operating expenses to be within a range of $81.0 million to $85.0 million, excluding $54.0 million estimated for stock-based compensation expense, acquisition related expenses and amortization

    For 2024, GAAP and non-GAAP annualized effective tax rate with IRA benefit, excluding discrete items, is expected to be within a range of 17.0% to 19.0%.

    Follow Enphase Online

    Use of non-GAAP Financial Measures

    Enphase Energy has presented certain non-GAAP financial measures in this press release. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position, or cash flows that either exclude or include amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States (GAAP). Reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure can be found in the accompanying tables to this press release. Non-GAAP financial measures presented by Enphase Energy include non-GAAP gross profit, gross margin, operating expenses, income from operations, net income, net income per share (basic and diluted), net IRA benefit, and free cash flow.

    These non-GAAP financial measures do not reflect a comprehensive system of accounting, differ from GAAP measures with the same captions and may differ from non-GAAP financial measures with the same or similar captions that are used by other companies. In addition, these non-GAAP measures have limitations in that they do not reflect all of the amounts associated with Enphase Energy’s results of operations as determined in accordance with GAAP. As such, these non-GAAP measures should be considered as a supplement to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. Enphase Energy uses these non-GAAP financial measures to analyze its operating performance and future prospects, develop internal budgets and financial goals, and to facilitate period-to-period comparisons. Enphase Energy believes that these non-GAAP financial measures reflect an additional way of viewing aspects of its operations that, when viewed with its GAAP results, provide a more complete understanding of factors and trends affecting its business.

    As presented in the “Reconciliation of Non-GAAP Financial Measures” tables below, each of the non-GAAP financial measures excludes one or more of the following items for purposes of calculating non-GAAP financial measures to facilitate an evaluation of Enphase Energy’s current operating performance and a comparison to its past operating performance:

    Stock-based compensation expense. Enphase Energy excludes stock-based compensation expense from its non-GAAP measures primarily because they are non-cash in nature. Moreover, the impact of this expense is significantly affected by Enphase Energy’s stock price at the time of an award over which management has limited to no control.

    Acquisition related expenses and amortization. This item represents expenses incurred related to Enphase Energy’s business acquisitions, which are non-recurring in nature, and amortization of acquired intangible assets, which is a non-cash expense. Acquisition related expenses and amortization of acquired intangible assets are not reflective of Enphase Energy’s ongoing financial performance.

    Restructuring and asset impairment charges. Enphase Energy excludes restructuring and asset impairment charges due to the nature of the expenses being unusual and arising outside the ordinary course of continuing operations. These costs primarily consist of fees paid for cash-based severance costs and asset write-downs of property and equipment and acquired intangible assets, and other contract termination costs resulting from restructuring initiatives.

    Non-cash interest expense. This item consists primarily of amortization of debt issuance costs and accretion of debt discount because these expenses do not represent a cash outflow for Enphase Energy except in the period the financing was secured and such amortization expense is not reflective of Enphase Energy’s ongoing financial performance.

    Non-GAAP income tax adjustment. This item represents the amount adjusted to Enphase Energy’s GAAP tax provision or benefit to exclude the income tax effects of GAAP adjustments such as stock-based compensation, amortization of purchased intangibles, and other non-recurring items that are not reflective of Enphase Energy ongoing financial performance.

    Non-GAAP net income per share, diluted. Enphase Energy excludes the dilutive effect of in-the-money portion of convertible senior notes as they are covered by convertible note hedge transactions that reduce potential dilution to our common stock upon conversion of the Notes due 2025, Notes due 2026, and Notes due 2028, and includes the dilutive effect of employee’s stock-based awards and the dilutive effect of warrants. Enphase Energy believes these adjustments provide useful supplemental information to the ongoing financial performance.

    Net IRA benefit. This item represents the advanced manufacturing production tax credit (AMPTC) from the IRA for manufacturing microinverters in the United States, partially offset by the incremental manufacturing cost incurred in the United States relative to manufacturing in Mexico, India, and China. The AMPTC is accounted for by Enphase Energy as an income-based government grants that reduces cost of revenues in the condensed consolidated statements of operations.

    Free cash flow. This item represents net cash flows from operating activities less purchases of property and equipment.

    Conference Call Information

    Enphase Energy will host a conference call for analysts and investors to discuss its third quarter 2024 results and fourth quarter 2024 business outlook today at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time). The call is open to the public by dialing (833) 634-5018. A live webcast of the conference call will also be accessible from the “Investor Relations” section of Enphase Energy’s website at https://investor.enphase.com. Following the webcast, an archived version will be available on the website for approximately one year. In addition, an audio replay of the conference call will be available by calling (877) 344-7529; replay access code 2677879, beginning approximately one hour after the call.

    Forward-Looking Statements

    This press release contains forward-looking statements, including statements related to Enphase Energy’s expectations as to its fourth quarter of 2024 financial outlook, including revenue, shipments of IQ Batteries by megawatt hours, gross margin with net IRA benefit and excluding net IRA benefit, estimated shipments of U.S. manufactured microinverters, operating expenses, and annualized effective tax rate with IRA benefit; its expectations regarding the expected net IRA benefit; its expectations on the timing and introduction of new products and updates to existing products; its expectations for global capacity of microinverters; its ability to support grid services in new locations; the ability of its AI-based software to help consumers maximize savings as energy markets become increasingly complex; and the capabilities, advantages, features, and performance of its technology and products. These forward-looking statements are based on Enphase Energy’s current expectations and inherently involve significant risks and uncertainties. Enphase Energy’s actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of certain risks and uncertainties including those risks described in more detail in its most recently filed Annual Report on Form 10-K, Quarterly Report on Form 10-Q, and other documents on file with the SEC from time to time and available on the SEC’s website at http://www.sec.gov. Enphase Energy undertakes no duty or obligation to update any forward-looking statements contained in this release as a result of new information, future events or changes in its expectations, except as required by law.

    A copy of this press release can be found on the investor relations page of Enphase Energy’s website at https://investor.enphase.com.

    About Enphase Energy, Inc.

    Enphase Energy, a global energy technology company based in Fremont, CA, is the world’s leading supplier of microinverter-based solar and battery systems that enable people to harness the sun to make, use, save, and sell their own power—and control it all with a smart mobile app. The company revolutionized the solar industry with its microinverter-based technology and builds all-in-one solar, battery, and software solutions. Enphase has shipped approximately 78.0 million microinverters, and over 4.5 million Enphase-based systems have been deployed in more than 160 countries. For more information, visit https://enphase.com/.

    © 2024 Enphase Energy, Inc. All rights reserved. Enphase Energy, Enphase, the “e” logo, IQ, IQ8, and certain other marks listed at https://enphase.com/trademark-usage-guidelines are trademarks or service marks of Enphase Energy, Inc. Other names are for informational purposes and may be trademarks of their respective owners.

    Contact:

    Zach Freedman
    Enphase Energy, Inc.
    Investor Relations
    ir@enphaseenergy.com

    ENPHASE ENERGY, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (In thousands, except per share data)
    (Unaudited)
     
      Three Months Ended Nine Months Ended
      September 30,
    2024
      June 30,
    2024
      September 30,
    2023
      September 30,
    2024
      September 30,
    2023
    Net revenues $ 380,873     $ 303,458     $ 551,082     $ 947,670     $ 1,988,216  
    Cost of revenues   202,702       166,292       289,069       516,825       1,076,490  
    Gross profit   178,171       137,166       262,013       430,845       911,726  
    Operating expenses:                  
    Research and development   47,843       48,871       54,873       150,925       172,045  
    Sales and marketing   49,671       51,775       55,357       154,753       178,383  
    General and administrative   30,192       33,550       33,794       98,924       104,456  
    Restructuring and asset impairment charges   677       1,171       —       3,755       870  
    Total operating expenses   128,383       135,367       144,024       408,357       455,754  
    Income from operations   49,788       1,799       117,989       22,488       455,972  
    Other income, net                  
    Interest income   19,977       19,203       19,669       58,889       49,235  
    Interest expense   (2,237 )     (2,220 )     (2,196 )     (6,653 )     (6,571 )
    Other income (expense), net   (16,785 )     (7,566 )     1,883       (24,264 )     2,276  
    Total other income, net   955       9,417       19,356       27,972       44,940  
    Income before income taxes   50,743       11,216       137,345       50,460       500,912  
    Income tax provision   (4,981 )     (383 )     (23,392 )     (9,962 )     (82,895 )
    Net income $ 45,762     $ 10,833     $ 113,953     $ 40,498     $ 418,017  
    Net income per share:                  
    Basic $ 0.34     $ 0.08     $ 0.84     $ 0.30     $ 3.06  
    Diluted $ 0.33     $ 0.08     $ 0.80     $ 0.30     $ 2.92  
    Shares used in per share calculation:                  
    Basic   135,329       135,646       136,165       135,621       136,491  
    Diluted   139,914       136,123       143,863       136,236       145,081  
                                           
    ENPHASE ENERGY, INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (In thousands)
    (Unaudited)
     
      September 30, 
    2024
      December 31, 
    2023
    ASSETS      
    Current assets:      
    Cash and cash equivalents $ 256,325   $ 288,748
    Marketable securities   1,510,299     1,406,286
    Accounts receivable, net   232,225     445,959
    Inventory   158,837     213,595
    Prepaid expenses and other assets   203,195     88,930
    Total current assets   2,360,881     2,443,518
    Property and equipment, net   148,444     168,244
    Operating lease, right of use asset, net   28,120     19,887
    Intangible assets, net   51,152     68,536
    Goodwill   214,292     214,562
    Other assets   185,448     215,895
    Deferred tax assets, net   275,854     252,370
    Total assets $ 3,264,191   $ 3,383,012
    LIABILITIES AND STOCKHOLDERS’ EQUITY      
    Current liabilities:      
    Accounts payable $ 112,417   $ 116,164
    Accrued liabilities   189,819     261,919
    Deferred revenues, current   129,556     118,300
    Warranty obligations, current   35,755     36,066
    Debt, current   99,931     —
    Total current liabilities   567,478     532,449
    Long-term liabilities:      
    Deferred revenues, non-current   354,210     369,172
    Warranty obligations, non-current   148,477     153,021
    Other liabilities   62,392     51,008
    Debt, non-current   1,200,261     1,293,738
    Total liabilities   2,332,818     2,399,388
    Total stockholders’ equity   931,373     983,624
    Total liabilities and stockholders’ equity $ 3,264,191   $ 3,383,012
               
    ENPHASE ENERGY, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (In thousands)
    (Unaudited)
     
      Three Months Ended   Nine Months Ended
      September 30, 
    2024
      June 30, 
    2024
      September 30, 
    2023
      September 30, 
    2024
      September 30, 
    2023
    Cash flows from operating activities:                  
    Net income $ 45,762     $ 10,833     $ 113,953     $ 40,498     $ 418,017  
    Adjustments to reconcile net income to net cash provided by operating activities:                  
    Depreciation and amortization   20,103       20,484       19,448       60,724       53,867  
    Net amortization (accretion) of premium (discount) on marketable securities   (2,904 )     (1,030 )     5,094       (1,109 )     (12,611 )
    Provision for doubtful accounts   2,704       1,897       653       4,471       1,282  
    Asset impairment   17,568       6,241       903       24,141       903  
    Non-cash interest expense   2,173       2,157       2,114       6,462       6,254  
    Net loss (gain) from change in fair value of debt securities   741       1,931       (1,910 )     1,730       (5,408 )
    Stock-based compensation   45,940       52,757       43,814       159,530       157,635  
    Deferred income taxes   (5,276 )     (14,076 )     (11,499 )     (27,644 )     (38,295 )
    Changes in operating assets and liabilities:                  
    Accounts receivable   49,414       82,183       (34,752 )     208,956       (118,249 )
    Inventory   17,231       31,825       (8,003 )     54,758       (24,406 )
    Prepaid expenses and other assets   (64,149 )     (42,810 )     (15,383 )     (117,856 )     (57,376 )
    Accounts payable, accrued and other liabilities   32,088       (23,944 )     9,903       (58,140 )     117,128  
    Warranty obligations   7,053       15       8,151       (4,855 )     57,420  
    Deferred revenues   1,690       (1,401 )     13,369       (5,265 )     105,169  
    Net cash provided by operating activities   170,138       127,062       145,855       346,401       661,330  
    Cash flows from investing activities:                  
    Purchases of property and equipment   (8,533 )     (9,636 )     (23,848 )     (25,540 )     (90,326 )
    Purchases of marketable securities   (319,190 )     (300,053 )     (470,766 )     (1,091,511 )     (1,743,674 )
    Maturities and sale of marketable securities   215,241       282,063       494,804       994,677       1,406,608  
    Investments in private companies   —       —       (15,000 )     —       (15,000 )
    Net cash used in investing activities   (112,482 )     (27,626 )     (14,810 )     (122,374 )     (442,392 )
    Cash flows from financing activities:                  
    Partial settlement of convertible notes   (5 )     —       —       (7 )     —  
    Repurchase of common stock   (49,794 )     (99,908 )     (110,000 )     (191,698 )     (310,000 )
    Proceeds from issuance of common stock under employee equity plans   14       6,769       719       7,969       1,315  
    Payment of withholding taxes related to net share settlement of equity awards   (6,286 )     (7,473 )     (8,465 )     (73,801 )     (93,100 )
    Net cash used in financing activities   (56,071 )     (100,612 )     (117,746 )     (257,537 )     (401,785 )
    Effect of exchange rate changes on cash and cash equivalents   2,638       (374 )     (1,900 )     1,087       (322 )
    Net increase (decrease) in cash and cash equivalents   4,223       (1,550 )     11,399       (32,423 )     (183,169 )
    Cash and cash equivalents—Beginning of period   252,102       253,652       278,676       288,748       473,244  
    Cash and cash equivalents —End of period $ 256,325     $ 252,102     $ 290,075     $ 256,325     $ 290,075  
                                           
    ENPHASE ENERGY, INC.
    RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
    (In thousands, except per share data and percentages)
    (Unaudited)
     
      Three Months Ended   Nine Months Ended
      September 30, 
    2024
      June 30, 
    2024
      September 30, 
    2023
      September 30, 
    2024
      September 30, 
    2023
    Gross profit (GAAP) $ 178,171     $ 137,166     $ 262,013     $ 430,845     $ 911,726  
    Stock-based compensation   2,948       3,730       2,708       10,860       9,775  
    Acquisition related amortization   1,904       1,890       1,899       5,685       5,686  
    Gross profit (Non-GAAP) $ 183,023     $ 142,786     $ 266,620     $ 447,390     $ 927,187  
                       
    Gross margin (GAAP)   46.8 %     45.2 %     47.5 %     45.5 %     45.9 %
    Stock-based compensation   0.8       1.3       0.6       1.1       0.5  
    Acquisition related amortization   0.5       0.6       0.3       0.6       0.2  
    Gross margin (Non-GAAP)   48.1 %     47.1 %     48.4 %     47.2 %     46.6 %
                       
    Operating expenses (GAAP) $ 128,383     $ 135,367     $ 144,024     $ 408,357     $ 455,754  
    Stock-based compensation(1)   (42,992 )     (49,027 )     (41,106 )     (148,670 )     (147,860 )
    Acquisition related expenses and amortization   (3,102 )     (3,463 )     (3,891 )     (10,027 )     (11,429 )
    Restructuring and asset impairment charges   (677 )     (1,171 )     —       (3,755 )     (901 )
    Operating expenses (Non-GAAP) $ 81,612     $ 81,706     $ 99,027     $ 245,905     $ 295,564  
                       
    (1)Includes stock-based compensation as follows:                  
    Research and development $ 19,790     $ 20,210     $ 19,285     $ 64,550     $ 64,528  
    Sales and marketing   14,237       16,784       13,297       49,199       49,231  
    General and administrative   8,965       12,033       8,524       34,921       34,101  
    Total $ 42,992     $ 49,027     $ 41,106     $ 148,670     $ 147,860  
                       
    Income from operations (GAAP) $ 49,788     $ 1,799     $ 117,989     $ 22,488     $ 455,972  
    Stock-based compensation   45,940       52,757       43,814       159,530       157,635  
    Acquisition related expenses and amortization   5,006       5,353       5,790       15,712       17,115  
    Restructuring and asset impairment charges   677       1,171       —       3,755       901  
    Income from operations (Non-GAAP) $ 101,411     $ 61,080     $ 167,593     $ 201,485     $ 631,623  
                       
    Net income (GAAP) $ 45,762     $ 10,833     $ 113,953     $ 40,498     $ 418,017  
    Stock-based compensation   45,940       52,757       43,814       159,530       157,635  
    Acquisition related expenses and amortization   5,006       5,353       5,790       15,712       17,115  
    Restructuring and asset impairment charges   677       1,171       —       3,755       901  
    Non-cash interest expense   2,173       2,157       2,114       6,462       6,254  
    Non-GAAP income tax adjustment   (11,156 )     (13,447 )     (23,822 )     (30,775 )     (61,413 )
    Net income (Non-GAAP) $ 88,402     $ 58,824     $ 141,849     $ 195,182     $ 538,509  
                       
    Net income per share, basic (GAAP) $ 0.34     $ 0.08     $ 0.84     $ 0.30     $ 3.06  
    Stock-based compensation   0.34       0.39       0.32       1.17       1.15  
    Acquisition related expenses and amortization   0.04       0.04       0.04       0.12       0.13  
    Restructuring and asset impairment charges   0.01       0.01       —       0.03       0.01  
    Non-cash interest expense   0.02       0.02       0.02       0.05       0.04  
    Non-GAAP income tax adjustment   (0.10 )     (0.11 )     (0.18 )     (0.23 )     (0.44 )
    Net income per share, basic (Non-GAAP) $ 0.65     $ 0.43     $ 1.04     $ 1.44     $ 3.95  
                       
    Shares used in basic per share calculation GAAP and Non-GAAP   135,329       135,646       136,165       135,621       136,491  
                       
    Net income per share, diluted (GAAP) $ 0.33     $ 0.08     $ 0.80     $ 0.30     $ 2.92  
    Stock-based compensation   0.33       0.38       0.32       1.17       1.17  
    Acquisition related expenses and amortization   0.04       0.04       0.04       0.12       0.12  
    Restructuring and asset impairment charges   0.01       0.01       —       0.03       0.01  
    Non-cash interest expense   0.02       0.02       0.02       0.05       0.04  
    Non-GAAP income tax adjustment   (0.08 )     (0.10 )     (0.16 )     (0.24 )     (0.40 )
    Net income per share, diluted (Non-GAAP)(2) $ 0.65     $ 0.43     $ 1.02     $ 1.43     $ 3.86  
                       
    Shares used in diluted per share calculation GAAP   139,914       136,123       143,863       136,236       145,081  
    Shares used in diluted per share calculation Non-GAAP   135,839       136,123       138,535       136,236       139,753  
                       
    Income-based government grants (GAAP) $ 46,552     $ 24,329     $ 18,532     $ 89,498     $ 20,583  
    Incremental cost for manufacturing in U.S.   (11,396 )     (5,950 )     (4,085 )     (22,228 )     (4,491 )
    Net IRA benefit (Non-GAAP) $ 35,156     $ 18,379     $ 14,447     $ 67,270     $ 16,092  
                       
    Net cash provided by operating activities (GAAP) $ 170,138     $ 127,062     $ 145,855     $ 346,401     $ 661,330  
    Purchases of property and equipment   (8,533 )     (9,636 )     (23,848 )     (25,540 )     (90,326 )
    Free cash flow (Non-GAAP) $ 161,605     $ 117,426     $ 122,007     $ 320,861     $ 571,004  
                                           

    (2) Calculation of non-GAAP diluted net income per share for the three and nine months ended September 30, 2023 excludes convertible Notes due 2023 interest expense, net of tax of less than $0.1 million from non-GAAP net income.

    This press release was published by a CLEAR® Verified individual.

    The MIL Network –

    January 24, 2025
  • MIL-OSI: Hanmi Reports 2024 Third Quarter Results

    Source: GlobeNewswire (MIL-OSI)

    LOS ANGELES, Oct. 22, 2024 (GLOBE NEWSWIRE) — Hanmi Financial Corporation (NASDAQ: HAFC, or “Hanmi”), the parent company of Hanmi Bank (the “Bank”), today reported financial results for the third quarter of 2024.

    Net income for the third quarter of 2024 was $14.9 million, or $0.49 per diluted share, compared with $14.5 million, or $0.48 per diluted share, for the second quarter of 2024. The return on average assets for the third quarter of 2024 was 0.79% and the return on average equity was 7.55%, compared with a return on average assets of 0.77% and the return on average equity of 7.50% for the second quarter of 2024.

    CEO Commentary
    “Our third quarter results were strong, with solid performance across all key operating metrics in the third quarter,” said Bonnie Lee, President and Chief Executive Officer of Hanmi.  “Net interest margin increased five basis points to 2.74% driven by higher yields on interest-earning assets and lower funding costs. Loans grew by 2% driven by a 27% increase in loan production and total deposits were up led by 5% growth in noninterest-bearing demand deposits. These results reflect the continued success of our relationship banking model and our portfolio diversification strategy.”

    “During the quarter, we remained focused on our disciplined credit administration practices and are pleased to report that we resolved several criticized and nonaccrual loans and recognized a recovery on a previously charged-off loan. We also proactively moved three loans to the special mention category to monitor them more closely. These loans are current, and we are confident they are well protected.”

    “Hanmi is well-positioned for a strong close to 2024 with a robust balance sheet, ample liquidity, healthy capital ratios, and a solid loan pipeline. Our team remains committed to delivering the solutions our customers need and results our shareholders expect,” concluded Lee.

    Third Quarter 2024 Highlights: 

    • Third quarter net income was $14.9 million, or $0.49 per diluted share, compared with $14.5 million, or $0.48 per diluted share for the second quarter of 2024. The increase reflects a $2.0 million, or 9.4%, increase in pretax, preprovision income, propelled by a 2.9% increase in net interest income.
    • Loans receivable were $6.26 billion at September 30, 2024, up 1.3% from the end of the second quarter of 2024, driven by a 27% increase in loan production to $347.8 million with a weighted average interest rate of 7.92%.
    • Deposits were $6.40 billion at September 30, 2024, up 1.2% from the end of the second quarter of 2024; noninterest-bearing demand deposits were 32.0% of total deposits. During the quarter, noninterest bearing demand deposits grew 4.7%, while time deposits declined 3.2% from the prior quarter.
    • Net interest income for the third quarter was $50.1 million, up 2.9% from the second quarter of 2024, driven by strong operational performance. Net interest margin (taxable equivalent) expanded five basis points to 2.74%, as the average yield on loans increased to 6.00%, while the cost of interest-bearing deposits remained unchanged at 4.27%.
    • Noninterest expense was $35.1 million for the third quarter, down 0.6% from the second quarter of 2024, primarily reflecting the absence of the second quarter $0.3 million branch consolidation charge.
    • Credit loss expense for the third quarter was $2.3 million, compared with $1.0 million for the prior quarter. The allowance for credit losses increased $1.4 million to $69.2 million at September 30, 2024, or 1.11% of loans. For the third quarter, net loan charge-offs of $0.9 million included a $1.1 million charge-off on a nonaccrual loan transferred to held-for-sale and a $1.7 million recovery of a nonaccrual loan.
    • Asset quality included several notable actions: nonaccrual loans fell 18.8% to $15.2 million and included pay-offs of $6.8 million while criticized assets increased, with downgrades to special mention of three loans totaling $129.8 million, offset by the move to the held-for-sale nonaccrual loan category of the previously identified $28.3 million completed construction loan, upgrades of $6.1 million, and additional loan pay-offs of $1.3 million. Subsequent to the end of the third quarter, the Bank completed the sale of the nonaccrual loan.

    For more information about Hanmi, please see the Q3 2024 Investor Update (and Supplemental Financial Information), which is available on the Bank’s website at http://www.hanmi.com and via a current report on Form 8-K on the website of the Securities and Exchange Commission at http://www.sec.gov. Also, please refer to “Non-GAAP Financial Measures” herein for further details of the presentation of certain non-GAAP financial measures.

    Quarterly Highlights
    (Dollars in thousands, except per share data)

      As of or for the Three Months Ended     Amount Change  
      September 30,     June 30,     March 31,     December 31,     September 30,     Q3-24     Q3-24  
      2024     2024     2024     2023     2023     vs. Q2-24     vs. Q3-23  
                                             
    Net income $ 14,892     $ 14,451     $ 15,164     $ 18,633     $ 18,796     $ 441     $ (3,904 )
    Net income per diluted common share $ 0.49     $ 0.48     $ 0.50     $ 0.61     $ 0.62     $ 0.01     $ (0.13 )
                                             
    Assets $ 7,712,299     $ 7,586,347     $ 7,512,046     $ 7,570,341     $ 7,350,140     $ 125,952     $ 362,159  
    Loans receivable $ 6,257,744     $ 6,176,359     $ 6,177,840     $ 6,182,434     $ 6,020,785     $ 81,385     $ 236,959  
    Deposits $ 6,403,221     $ 6,329,340     $ 6,376,060     $ 6,280,574     $ 6,260,072     $ 73,881     $ 143,149  
                                             
    Return on average assets   0.79 %     0.77 %     0.81 %     0.99 %     1.00 %     0.02       -0.21  
    Return on average stockholders’ equity   7.55 %     7.50 %     7.90 %     9.70 %     9.88 %     0.06       -2.33  
                                             
    Net interest margin   2.74 %     2.69 %     2.78 %     2.92 %     3.03 %     0.05       -0.29  
    Efficiency ratio (1)   59.98 %     62.24 %     62.42 %     58.86 %     51.82 %     -2.26       8.16  
                                             
    Tangible common equity to tangible assets (2)   9.42 %     9.19 %     9.23 %     9.14 %     8.89 %     0.23       0.53  
    Tangible common equity per common share (2) $ 24.03     $ 22.99     $ 22.86     $ 22.75     $ 21.45       1.04       2.58  
                                             
    (1)       Noninterest expense divided by net interest income plus noninterest income.  
    (2)       Refer to “Non-GAAP Financial Measures” for further details.  


    Results of Operations

    Net interest income for the third quarter was $50.1 million, up 2.9% from $48.6 million for the second quarter of 2024. The increase was primarily due to an increase in loan interest income. The increase in loan interest income was a result of increases in loan yields and average balances. The yield on average loans for the third quarter increased slightly to 6.00% from 5.99% for the second quarter of 2024. Average loans were $6.11 billion for the third quarter of 2024, up 0.4% from $6.09 billion for the second quarter. The cost of interest-bearing deposits was 4.27% for the third quarter of 2024, unchanged from the prior quarter. Average interest-bearing deposits were $4.40 billion for the third quarter, up 0.3%, from $4.38 billion for the prior quarter. Net interest margin (taxable equivalent) for the third quarter was 2.74%, compared with 2.69% for the second quarter of 2024.

      For the Three Months Ended (in thousands)     Percentage Change  
      Sep 30,     Jun 30,     Mar 31,     Dec 31,     Sep 30,     Q3-24     Q3-24  
    Net Interest Income 2024     2024     2024     2023     2023     vs. Q2-24     vs. Q3-23  
                                             
    Interest and fees on loans receivable(1) $ 92,182     $ 90,752     $ 91,674     $ 89,922     $ 85,398       1.6 %     7.9 %
    Interest on securities   5,523       5,238       4,955       4,583       4,204       5.4 %     31.4 %
    Dividends on FHLB stock   356       357       361       341       317       -0.3 %     12.3 %
    Interest on deposits in other banks   2,356       2,313       2,604       2,337       4,153       1.9 %     -43.3 %
    Total interest and dividend income $ 100,417     $ 98,660     $ 99,594     $ 97,183     $ 94,072       1.8 %     6.7 %
                                             
    Interest on deposits   47,153       46,495       45,638       40,277       36,818       1.4 %     28.1 %
    Interest on borrowings   1,561       1,896       1,655       2,112       753       -17.7 %     107.3 %
    Interest on subordinated debentures   1,652       1,649       1,646       1,654       1,646       0.2 %     0.4 %
    Total interest expense   50,366       50,040       48,939       44,043       39,217       0.7 %     28.4 %
    Net interest income $ 50,051     $ 48,620     $ 50,655     $ 53,140     $ 54,855       2.9 %     -8.8 %
                                             
    (1)      Includes loans held for sale.  
      For the Three Months Ended (in thousands)     Percentage Change  
    Average Earning Assets and   Sep 30,     Jun 30,     Mar 31,     Dec 31,     Sep 30,     Q3-24     Q3-24  
    Interest-bearing Liabilities 2024     2024     2024     2023     2023     vs. Q2-24     vs. Q3-23  
    Loans receivable (1) $ 6,112,324     $ 6,089,440     $ 6,137,888     $ 6,071,644     $ 5,915,423       0.4 %     3.3 %
    Securities   986,041       979,671       969,520       961,551       955,473       0.7 %     3.2 %
    FHLB stock   16,385       16,385       16,385       16,385       16,385       0.0 %     0.0 %
    Interest-bearing deposits in other banks   183,027       180,177       201,724       181,140       317,498       1.6 %     -42.4 %
    Average interest-earning assets $ 7,297,777     $ 7,265,673     $ 7,325,517     $ 7,230,720     $ 7,204,779       0.4 %     1.3 %
                                             
    Demand: interest-bearing $ 83,647     $ 85,443     $ 86,401     $ 86,679     $ 94,703       -2.1 %     -11.7 %
    Money market and savings   1,885,799       1,845,870       1,815,085       1,669,973       1,601,826       2.2 %     17.7 %
    Time deposits   2,427,737       2,453,154       2,507,830       2,417,803       2,438,112       -1.0 %     -0.4 %
    Average interest-bearing deposits   4,397,183       4,384,467       4,409,316       4,174,455       4,134,641       0.3 %     6.3 %
    Borrowings   143,479       169,525       162,418       205,951       120,381       -15.4 %     19.2 %
    Subordinated debentures   130,403       130,239       130,088       129,933       129,780       0.1 %     0.5 %
    Average interest-bearing liabilities $ 4,671,065     $ 4,684,231     $ 4,701,822     $ 4,510,339     $ 4,384,802       -0.3 %     6.5 %
                                             
    Average Noninterest Bearing Deposits                                        
    Demand deposits – noninterest bearing $ 1,908,833     $ 1,883,765     $ 1,921,189     $ 2,025,212     $ 2,136,156       1.3 %     -10.6 %
                                             
    (1)      Includes loans held for sale.                     
      For the Three Months Ended     Yield/Rate Change  
      Sep 30,     Jun 30,     Mar 31,     Dec 31,     Sep 30,     Q3-24     Q3-24  
    Average Yields and Rates 2024     2024     2024     2023     2023     vs. Q2-24     vs. Q3-23  
    Loans receivable(1)   6.00 %     5.99 %     6.00 %     5.88 %     5.73 %     0.01       0.27  
    Securities (2)   2.27 %     2.17 %     2.07 %     1.93 %     1.79 %     0.10       0.48  
    FHLB stock   8.65 %     8.77 %     8.87 %     8.25 %     7.67 %     -0.12       0.98  
    Interest-bearing deposits in other banks   5.12 %     5.16 %     5.19 %     5.12 %     5.19 %     -0.04       -0.07  
    Interest-earning assets   5.48 %     5.46 %     5.47 %     5.34 %     5.19 %     0.02       0.29  
                                             
    Interest-bearing deposits   4.27 %     4.27 %     4.16 %     3.83 %     3.53 %     0.00       0.74  
    Borrowings   4.33 %     4.50 %     4.10 %     4.07 %     2.48 %     -0.17       1.85  
    Subordinated debentures   5.07 %     5.07 %     5.06 %     5.09 %     5.07 %     0.00       0.00  
    Interest-bearing liabilities   4.29 %     4.30 %     4.19 %     3.88 %     3.55 %     -0.01       0.74  
                                             
    Net interest margin (taxable equivalent basis)   2.74 %     2.69 %     2.78 %     2.92 %     3.03 %     0.05       -0.29  
                                             
    Cost of deposits   2.97 %     2.98 %     2.90 %     2.58 %     2.33 %     -0.01       0.64  
                                             
    (1)      Includes loans held for sale.  
    (2)      Amounts calculated on a fully taxable equivalent basis using the federal tax rate in effect for the periods presented.  

    Credit loss expense for the third quarter was $2.3 million, compared with $1.0 million for the second quarter of 2024. Third quarter credit loss expense included a $2.3 million credit loss expense for loan losses. Third quarter net loan charge-offs were $0.9 million, compared with second quarter net loan charge-offs of $1.8 million. Third quarter net loan charge-offs included a $1.1 million charge-off on a nonaccrual loan transferred to held-for-sale and a $1.7 million recovery on a nonaccrual loan.

    Noninterest income for the third quarter increased $0.3 million to $8.4 million, or 4.7%, from $8.1 million for the second quarter of 2024. Third quarter noninterest income included a $0.9 million gain from the sale and leaseback of a branch property, while second quarter noninterest income included a $0.3 million death benefit on bank-owned life insurance. Gains on sales of SBA loans were $1.5 million for the third quarter of 2024, compared with $1.6 million for the second quarter of 2024. The volume of SBA loans sold in the third quarter decreased to $23.0 million, from $23.5 million for the second quarter of 2024, while trade premiums were 8.54% for the third quarter of 2024, unchanged from the second quarter. Mortgage loans sold in the third quarter were $20.9 million, with a premium of 2.32%, compared with $19.5 million and 2.00% for the second quarter, resulting in income of $0.3 million for the third quarter, compared with $0.4 million for the prior quarter.

      For the Three Months Ended (in thousands)     Percentage Change  
      Sep 30,     Jun 30,     Mar 31,     Dec 31,     Sep 30,     Q3-24     Q3-24  
    Noninterest Income 2024     2024     2024     2023     2023     vs. Q2-24     vs. Q3-23  
    Service charges on deposit accounts $ 2,311     $ 2,429     $ 2,450     $ 2,391     $ 2,605       -4.9 %     -11.3 %
    Trade finance and other service charges and fees   1,254       1,277       1,414       1,245       1,155       -1.8 %     8.6 %
    Servicing income   817       796       712       772       838       2.6 %     -2.5 %
    Bank-owned life insurance income (expense)   320       638       304       (29 )     280       -49.8 %     14.3 %
    All other operating income   1,008       908       928       853       1,178       11.0 %     -14.4 %
    Service charges, fees & other   5,710       6,048       5,808       5,232       6,056       -5.6 %     -5.7 %
                                             
    Gain on sale of SBA loans   1,544       1,644       1,482       1,448       1,172       -6.1 %     31.7 %
    Gain on sale of mortgage loans   324       365       443       –       –       -11.2 %     100.0 %
    Gain on sale of bank premises   860       –       –       –       4,000       100.0 %     -78.5 %
    Total noninterest income $ 8,438     $ 8,057     $ 7,733     $ 6,680     $ 11,228       4.7 %     -24.8 %

    Noninterest expense for the third quarter decreased by $0.2 million to $35.1 million from $35.3 million for the second quarter of 2024. The decrease reflects primarily the absence of the $0.3 million branch consolidation expense recognized in the second quarter of 2024. The efficiency ratio for the third quarter was 60.0%, compared with 62.2% for the second quarter of 2024.

      For the Three Months Ended (in thousands)     Percentage Change  
      Sep 30,     Jun 30,     Mar 31,     Dec 31,     Sep 30,     Q3-24     Q3-24  
      2024     2024     2024     2023     2023     vs. Q2-24     vs. Q3-23  
    Noninterest Expense                                        
    Salaries and employee benefits $ 20,851     $ 20,434     $ 21,585     $ 20,062     $ 20,361       2.0 %     2.4 %
    Occupancy and equipment   4,499       4,348       4,537       4,604       4,825       3.5 %     -6.8 %
    Data processing   3,839       3,686       3,551       3,487       3,490       4.2 %     10.0 %
    Professional fees   1,492       1,749       1,893       1,977       1,568       -14.7 %     -4.8 %
    Supplies and communication   538       570       601       613       552       -5.6 %     -2.5 %
    Advertising and promotion   631       669       907       990       534       -5.7 %     18.2 %
    All other operating expenses   2,875       3,251       3,160       3,252       2,852       -11.6 %     0.8 %
    Subtotal   34,725       34,707       36,234       34,985       34,182       0.1 %     1.6 %
                                             
    Branch consolidation expense   –       301       –       –       –       -100.0 %     0.0 %
    Other real estate owned expense   77       6       22       15       16       1183.3 %     381.3 %
    Repossessed personal property expense   278       262       189       211       47       6.1 %     491.5 %
    Total noninterest expense $ 35,080     $ 35,276     $ 36,445     $ 35,211     $ 34,245       -0.6 %     2.4 %

    Hanmi recorded a provision for income taxes of $6.2 million for the third quarter of 2024, compared with $6.0 million for the second quarter of 2024, representing an effective tax rate of 29.5% and 29.3%, respectively.

    Financial Position
    Total assets at September 30, 2024 increased 1.7%, or $126.0 million, to $7.71 billion from $7.59 billion at June 30, 2024. The sequential quarter increase was due to a $125.3 million increase in loans and loans held-for-sale, and a $31.3 million increase in securities, offset partially by a $25.3 million decrease in cash and due from banks.

    Loans receivable, before allowance for credit losses, were $6.26 billion at September 30, 2024, up from $6.18 billion at June 30, 2024.

    Loans held-for-sale were $54.3 million at September 30, 2024, up from $10.5 million at June 30, 2024. At the end of the third quarter, loans held-for-sale consisted of $8.8 million of the guaranteed portion of SBA 7(a) loans, $18.3 million of residential mortgage loans and the $27.2 million nonaccrual loan. Subsequent to the end of the third quarter, the Bank completed the sale of this nonaccrual loan.

      As of (in thousands)     Percentage Change  
      Sep 30,     Jun 30,     Mar 31,     Dec 31,     Sep 30,     Q3-24     Q3-24  
      2024     2024     2024     2023     2023     vs. Q2-24     vs. Q3-23  
    Loan Portfolio                                        
    Commercial real estate loans $ 3,932,088     $ 3,888,505     $ 3,878,677     $ 3,889,739     $ 3,773,015       1.1 %     4.2 %
    Residential/consumer loans   939,285       954,209       970,362       962,661       926,326       -1.6 %     1.4 %
    Commercial and industrial loans   879,092       802,372       774,851       747,819       728,792       9.6 %     20.6 %
    Equipment finance   507,279       531,273       553,950       582,215       592,652       -4.5 %     -14.4 %
    Loans receivable   6,257,744       6,176,359       6,177,840       6,182,434       6,020,785       1.3 %     3.9 %
    Loans held for sale   54,336       10,467       3,999       12,013       11,767       419.1 %     361.8 %
    Total $ 6,312,080     $ 6,186,826     $ 6,181,839     $ 6,194,447     $ 6,032,552       2.0 %     4.6 %
      As of  
      Sep 30,     Jun 30,     Mar 31,     Dec 31,     Sep 30,  
      2024     2024     2024     2023     2023  
    Composition of Loan Portfolio                            
    Commercial real estate loans   62.3 %     62.9 %     62.7 %     62.8 %     62.5 %
    Residential/consumer loans   14.9 %     15.4 %     15.7 %     15.5 %     15.4 %
    Commercial and industrial loans   13.9 %     13.0 %     12.5 %     12.1 %     12.1 %
    Equipment finance   8.0 %     8.5 %     9.0 %     9.4 %     9.8 %
    Loans receivable   99.1 %     99.8 %     99.9 %     99.8 %     99.8 %
    Loans held for sale   0.9 %     0.2 %     0.1 %     0.2 %     0.2 %
    Total   100.0 %     100.0 %     100.0 %     100.0 %     100.0 %

    New loan production was $347.8 million for the third quarter of 2024 at an average rate of 7.92%, while payoffs were $77.6 million during the quarter at an average rate of 6.63%.

    Commercial real estate loan production for the third quarter of 2024 was $110.2 million. Commercial and industrial loan production was $105.1 million, SBA loan production was $51.6 million, equipment finance production was $40.1 million, and residential mortgage loan production was $40.8 million.

      For the Three Months Ended (in thousands)  
      Sep 30,     Jun 30,     Mar 31,     Dec 31,     Sep 30,  
      2024     2024     2024     2023     2023  
    New Loan Production                            
    Commercial real estate loans $ 110,246     $ 87,632     $ 60,085     $ 178,157     $ 106,151  
    Commercial and industrial loans   105,086       59,007       50,789       52,079       67,907  
    SBA loans   51,616       54,486       30,817       48,432       36,109  
    Equipment finance   40,066       42,594       39,155       57,334       71,075  
    Residential/consumer loans   40,758       30,194       53,115       53,465       55,026  
    Subtotal   347,772       273,913       233,961       389,467       336,268  
                                 
                                 
    Payoffs   (77,603 )     (148,400 )     (86,250 )     (77,961 )     (62,140 )
    Amortization   (151,674 )     (83,640 )     (90,711 )     (106,610 )     (116,411 )
    Loan sales   (43,868 )     (42,945 )     (55,321 )     (29,861 )     (22,496 )
    Net line utilization   9,426       1,929       (4,150 )     (11,609 )     (70,238 )
    Charge-offs & OREO   (2,668 )     (2,338 )     (2,123 )     (1,777 )     (9,369 )
                                 
    Loans receivable-beginning balance   6,176,359       6,177,840       6,182,434       6,020,785       5,965,171  
    Loans receivable-ending balance $ 6,257,744     $ 6,176,359     $ 6,177,840     $ 6,182,434     $ 6,020,785  

    Deposits were $6.40 billion at the end of the third quarter of 2024, up $73.9 million, or 1.2%, from $6.33 billion at the end of the prior quarter. Driving the change was a $91.8 million increase in noninterest-bearing demand deposits and a $64.0 million increase in money market and savings deposits, partially offset by a $78.3 million decrease in time deposits. Noninterest-bearing demand deposits represented 32.0% of total deposits at September 30, 2024 and the loan-to-deposit ratio was 97.7%.

      As of (in thousands)     Percentage Change  
      Sep 30,     Jun 30,     Mar 31,     Dec 31,     Sep 30,     Q3-24     Q3-24  
      2024     2024     2024     2023     2023     vs. Q2-24     vs. Q3-23  
    Deposit Portfolio                                        
    Demand: noninterest-bearing $ 2,051,790     $ 1,959,963     $ 1,933,060     $ 2,003,596     $ 2,161,238       4.7 %     -5.1 %
    Demand: interest-bearing   79,287       82,981       87,374       87,452       88,133       -4.5 %     -10.0 %
    Money market and savings   1,898,834       1,834,797       1,859,865       1,734,658       1,576,006       3.5 %     20.5 %
    Time deposits   2,373,310       2,451,599       2,495,761       2,454,868       2,434,695       -3.2 %     -2.5 %
    Total deposits $ 6,403,221     $ 6,329,340     $ 6,376,060     $ 6,280,574     $ 6,260,072       1.2 %     2.3 %
      As of  
      Sep 30,     Jun 30,     Mar 31,     Dec 31,     Sep 30,  
      2024     2024     2024     2023     2023  
    Composition of Deposit Portfolio                            
    Demand: noninterest-bearing   32.0 %     31.0 %     30.3 %     31.9 %     34.5 %
    Demand: interest-bearing   1.2 %     1.3 %     1.4 %     1.4 %     1.4 %
    Money market and savings   29.7 %     29.0 %     29.2 %     27.6 %     25.2 %
    Time deposits   37.1 %     38.7 %     39.1 %     39.1 %     38.9 %
    Total deposits   100.0 %     100.0 %     100.0 %     100.0 %     100.0 %

    Stockholders’ equity at September 30, 2024 was $736.7 million, up $29.6 million from $707.1 million at June 30, 2024. The increase was due to third quarter net income, net of dividends paid, adding $7.3 million to stockholders’ equity for the period. Additionally, there was a $20.7 million decrease in unrealized after-tax losses on securities available for sale and a $2.2 million decrease in unrealized after-tax losses on cash flow hedges, all due to changes in interest rates during the third quarter of 2024. Hanmi also repurchased 75,000 shares of common stock, or $1.4 million, during the quarter at an average share price of $19.10. At September 30, 2024, 1,255,000 shares remain under Hanmi’s share repurchase program. Tangible common stockholders’ equity was $725.7 million, or 9.42% of tangible assets, at September 30, 2024, compared with $696.0 million, or 9.19% of tangible assets at the end of the prior quarter. Please refer to the Non-GAAP Financial Measures section below for more information.

    Hanmi and the Bank exceeded minimum regulatory capital requirements, and the Bank continues to exceed the minimum for the “well capitalized” category. At September 30, 2024, Hanmi’s preliminary common equity tier 1 capital ratio was 11.95% and its total risk-based capital ratio was 15.04%, compared with 12.11% and 15.24%, respectively, at the end of the prior quarter.

      As of     Ratio Change  
      Sep 30,     Jun 30,     Mar 31,     Dec 31,     Sep 30,     Q3-24     Q3-24  
      2024     2024     2024     2023     2023     vs. Q2-24     vs. Q3-23  
    Regulatory Capital ratios (1)                                        
    Hanmi Financial                                        
    Total risk-based capital   15.04 %     15.24 %     15.20 %     14.95 %     15.07 %     -0.20       -0.03  
    Tier 1 risk-based capital   12.29 %     12.46 %     12.40 %     12.20 %     12.30 %     -0.17       -0.01  
    Common equity tier 1 capital   11.95 %     12.11 %     12.05 %     11.86 %     11.95 %     -0.16       0.00  
    Tier 1 leverage capital ratio   10.56 %     10.51 %     10.36 %     10.37 %     10.27 %     0.05       0.29  
    Hanmi Bank                                        
    Total risk-based capital   14.28 %     14.51 %     14.50 %     14.27 %     14.42 %     -0.23       -0.14  
    Tier 1 risk-based capital   13.24 %     13.47 %     13.44 %     13.26 %     13.42 %     -0.23       -0.18  
    Common equity tier 1 capital   13.24 %     13.47 %     13.44 %     13.26 %     13.42 %     -0.23       -0.18  
    Tier 1 leverage capital ratio   11.43 %     11.41 %     11.29 %     11.32 %     11.25 %     0.02       0.18  
                                             
    (1)      Preliminary ratios for September 30, 2024  


    Asset Quality

    Loans 30 to 89 days past due and still accruing were 0.24% of loans at the end of the third quarter of 2024, compared with 0.22% at the end of the prior quarter.

    Criticized loans totaled $160.0 million at September 30, 2024, up from $70.9 million at the end of the second quarter of 2024.

    During the third quarter, the Bank moved the previously identified $28.3 million completed construction loan for a memory-care and assisted-living facility from the special mention category to the held-for-sale nonaccrual category. In addition, the Bank recognized a $1.1 million charge-off on this loan. Subsequent to the end of the third quarter, the Bank completed the sale of this nonaccrual loan.

    Also, during the third quarter, the Bank downgraded to special mention two commercial real estate loans in the hospitality industry for $109.7 million and a commercial and industrial loan in the health care industry for $20.1 million.  Pay-offs of $8.1 million decreased criticized loans (and classified loans), while upgrades of $6.1 million also decreased criticized loans (and special mention loans). Offsetting the decrease in classified loans were additions of $2.5 million.

    Nonperforming loans were $15.5 million at September 30, 2024, down from $19.2 million at the end of the prior quarter. The decrease primarily reflects pay-offs of $6.8 million, where the pay-off of a previously identified $3.9 million nonperforming loan resulted in a $1.7 million recovery.  Offsetting the decrease were additions of $3.1 million.

    Nonperforming assets were $16.3 million at the end of the third quarter of 2024, down from $20.0 million at the end of the prior quarter. As a percentage of total assets, nonperforming assets were 0.21% at September 30, 2024, and 0.26% at the end of the prior quarter.

    Gross charge-offs for the third quarter of 2024 were $3.8 million, compared with $2.3 million for the preceding quarter. Charge-offs included $1.1 million on the previously identified $28.3 million completed construction loan. Recoveries of previously charged-off loans were $2.9 million in the third quarter of 2024, and included a $1.7 million recovery on a previously identified $3.9 million commercial loan in the health care industry. As a result, net charge-offs were $0.9 million for the third quarter of 2024, compared with net charge-offs of $1.8 million for the prior quarter.

    The allowance for credit losses was $69.2 million at September 30, 2024, compared with $67.7 million at June 30, 2024. Specific allowances for loans decreased $1.6 million, while the allowance for quantitative and qualitative considerations increased $3.1 million. The ratio of the allowance for credit losses to loans was 1.11% at September 30, 2024 and 1.10% at June 30, 2024.

      As of or for the Three Months Ended (in thousands)     Amount Change  
      Sep 30,     Jun 30,     Mar 31,     Dec 31,     Sep 30,     Q3-24     Q3-24  
      2024     2024     2024     2023     2023     vs. Q2-24     vs. Q3-23  
    Asset Quality Data and Ratios                                        
                                             
    Delinquent loans:                                        
    Loans, 30 to 89 days past due and still accruing $ 15,027     $ 13,844     $ 15,839     $ 10,263     $ 9,545     $ 1,183     $ 5,482  
    Delinquent loans to total loans   0.24 %     0.22 %     0.26 %     0.17 %     0.16 %     0.02       0.08  
                                             
    Criticized loans:                                        
    Special mention $ 131,575     $ 36,921     $ 62,317     $ 65,314     $ 76,473     $ 94,654     $ 55,102  
    Classified   28,377       33,945       23,670       31,367       33,134       (5,568 )     (4,757 )
    Total criticized loans $ 159,952     $ 70,866     $ 85,987     $ 96,681     $ 109,607     $ 89,086     $ 50,345  
                                             
    Nonperforming assets:                                        
    Nonaccrual loans $ 15,248     $ 19,245     $ 14,025     $ 15,474     $ 15,783     $ (3,997 )   $ (535 )
    Loans 90 days or more past due and still accruing   242       –       –       –       –       242       242  
    Nonperforming loans*   15,490       19,245       14,025       15,474       15,783       (3,755 )     (293 )
    Other real estate owned, net   772       772       117       117       117       –       655  
    Nonperforming assets** $ 16,262     $ 20,017     $ 14,142     $ 15,591     $ 15,900     $ (3,755 )   $ 362  
                                             
    Nonperforming assets to assets*   0.21 %     0.26 %     0.19 %     0.21 %     0.22 %     -0.05       -0.01  
    Nonperforming loans to total loans   0.25 %     0.31 %     0.23 %     0.25 %     0.26 %     -0.06       -0.01  
                                             
    * Excludes a $27.2 million nonperforming loan held-for-sale.                     
    ** Excludes repossessed personal property of $1.2 million, $1.2 million, $1.3 million, $1.3 million, and $1.3 million as of Q3-24, Q2-24, Q1-24, Q4-23, and Q3-23, respectively  
      As of or for the Three Months Ended (in thousands)  
      Sep 30,     Jun 30,     Mar 31,     Dec 31,     Sep 30,  
      2024     2024     2024     2023     2023  
    Allowance for credit losses related to loans:                            
    Balance at beginning of period $ 67,729     $ 68,270     $ 69,462     $ 67,313     $ 71,024  
    Credit loss expense (recovery) on loans   2,312       1,248       404       (2,880 )     5,167  
    Net loan (charge-offs) recoveries   (878 )     (1,789 )     (1,596 )     5,029       (8,878 )
    Balance at end of period $ 69,163     $ 67,729     $ 68,270     $ 69,462     $ 67,313  
                                 
    Net loan charge-offs (recoveries) to average loans (1)   0.06 %     0.12 %     0.10 %     -0.33 %     0.60 %
    Allowance for credit losses to loans   1.11 %     1.10 %     1.11 %     1.12 %     1.12 %
                                 
    Allowance for credit losses related to off-balance sheet items:                            
    Balance at beginning of period $ 2,010     $ 2,297     $ 2,474     $ 2,463     $ 2,476  
    Credit loss expense (recovery) on off-balance sheet items   (26 )     (287 )     (177 )     11       (13 )
    Balance at end of period $ 1,984     $ 2,010     $ 2,297     $ 2,474     $ 2,463  
                                 
    Unused commitments to extend credit $ 739,975     $ 795,391     $ 792,769     $ 813,960     $ 848,886  
                                 
    (1)      Annualized               


    Corporate Developments

    On July 25, 2024, Hanmi’s Board of Directors declared a cash dividend on its common stock for the 2024 third quarter of $0.25 per share. Hanmi paid the dividend on August 21, 2024, to stockholders of record as of the close of business on August 5, 2024.

    Earnings Conference Call
    Hanmi Bank will host its third quarter 2024 earnings conference call today, October 22, 2024, at 2:00 p.m. PT (5:00 p.m. ET) to discuss these results. This call will also be webcast. To access the call, please dial 1-877-407-9039 before 2:00 p.m. PT, using access code Hanmi Bank. To listen to the call online, either live or archived, please visit Hanmi’s Investor Relations website at https://investors.hanmi.com/ where it will also be available for replay approximately one hour following the call.

    About Hanmi Financial Corporation
    Headquartered in Los Angeles, California, Hanmi Financial Corporation owns Hanmi Bank, which serves multi-ethnic communities through its network of 32 full-service branches and eight loan production offices in California, Texas, Illinois, Virginia, New Jersey, New York, Colorado, Washington and Georgia. Hanmi Bank specializes in real estate, commercial, SBA and trade finance lending to small and middle market businesses. Additional information is available at http://www.hanmi.com.

    Forward-Looking Statements
    This press release contains forward-looking statements, which are included in accordance with the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including, but not limited to, statements about our anticipated future operating and financial performance, financial position and liquidity, business strategies, regulatory and competitive outlook, investment and expenditure plans, capital and financing needs and availability, plans and objectives of management for future operations, developments regarding our capital and strategic plans, and other similar forecasts and statements of expectation and statements of assumption underlying any of the foregoing. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “expects,” “plans,” “intends,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” or “continue,” or the negative of such terms and other comparable terminology. Although we believe that our forward-looking statements to be reasonable, we cannot guarantee future results, levels of activity, performance or achievements.

    Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ from those expressed or implied by the forward-looking statements. These factors include the following:

    • a failure to maintain adequate levels of capital and liquidity to support our operations;
    • general economic and business conditions internationally, nationally and in those areas in which we operate, including any potential recessionary conditions;
    • volatility and deterioration in the credit and equity markets;
    • changes in consumer spending, borrowing and savings habits;
    • availability of capital from private and government sources;
    • demographic changes;
    • competition for loans and deposits and failure to attract or retain loans and deposits;
    • inflation and fluctuations in interest rates that reduce our margins and yields, the fair value of financial instruments, the level of loan originations or prepayments on loans we have made and make, the level of loan sales and the cost we pay to retain and attract deposits and secure other types of funding;
    • our ability to enter new markets successfully and capitalize on growth opportunities;
    • the current or anticipated impact of military conflict, terrorism or other geopolitical events;
    • the effect of potential future supervisory action against us or Hanmi Bank and our ability to address any issues raised in our regulatory exams;
    • risks of natural disasters;
    • legal proceedings and litigation brought against us;
    • a failure in or breach of our operational or security systems or infrastructure, including cyberattacks;
    • the failure to maintain current technologies;
    • risks associated with Small Business Administration loans;
    • failure to attract or retain key employees;
    • our ability to access cost-effective funding;
    • changes in liquidity, including the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio;
    • fluctuations in real estate values;
    • changes in accounting policies and practices;
    • changes in governmental regulation, including, but not limited to, any increase in FDIC insurance premiums and changes in the monetary policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System;
    • the ability of Hanmi Bank to make distributions to Hanmi Financial Corporation, which is restricted by certain factors, including Hanmi Bank’s retained earnings, net income, prior distributions made, and certain other financial tests;
    • strategic transactions we may enter into;
    • the adequacy of and changes in the methodology for computing our allowance for credit losses;
    • our credit quality and the effect of credit quality on our credit losses expense and allowance for credit losses;
    • changes in the financial performance and/or condition of our borrowers and the ability of our borrowers to perform under the terms of their loans and other terms of credit agreements;
    • our ability to control expenses; and
    • cyber security and fraud risks against our information technology and those of our third-party providers and vendors.

    In addition, we set forth certain risks in our reports filed with the U.S. Securities and Exchange Commission, including, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2023, our Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K that we will file hereafter, which could cause actual results to differ from those projected. We undertake no obligation to update such forward-looking statements except as required by law.

    Investor Contacts:
    Romolo (Ron) Santarosa
    Senior Executive Vice President & Chief Financial Officer
    213-427-5636

    Lisa Fortuna
    Investor Relations
    Financial Profiles, Inc.
    lfortuna@finprofiles.com
    310-622-8251

     

    Hanmi Financial Corporation and Subsidiaries
    Consolidated Balance Sheets (Unaudited)
    (Dollars in thousands)

      September 30,     June 30,     Percentage     September 30,     Percentage  
      2024     2024     Change     2023     Change  
    Assets                            
    Cash and due from banks $ 287,767     $ 313,079       -8.1 %   $ 289,006       -0.4 %
    Securities available for sale, at fair value   908,921       877,638       3.6 %     817,242       11.2 %
    Loans held for sale, at the lower of cost or fair value   54,336       10,467       419.1 %     11,767       361.8 %
    Loans receivable, net of allowance for credit losses   6,188,581       6,108,630       1.3 %     5,953,472       3.9 %
    Accrued interest receivable   21,955       23,958       -8.4 %     20,715       6.0 %
    Premises and equipment, net   21,371       21,955       -2.7 %     20,707       3.2 %
    Customers’ liability on acceptances   67       551       -87.8 %     1,386       -95.2 %
    Servicing assets   6,683       6,836       -2.2 %     7,156       -6.6 %
    Goodwill and other intangible assets, net   11,031       11,048       -0.2 %     11,131       -0.9 %
    Federal Home Loan Bank (“FHLB”) stock, at cost   16,385       16,385       0.0 %     16,385       0.0 %
    Bank-owned life insurance   56,851       56,534       0.6 %     56,364       0.9 %
    Prepaid expenses and other assets   138,351       139,266       -0.7 %     144,809       -4.5 %
    Total assets $ 7,712,299     $ 7,586,347       1.7 %   $ 7,350,140       4.9 %
                                 
    Liabilities and Stockholders’ Equity                            
    Liabilities:                            
    Deposits:                            
    Noninterest-bearing $ 2,051,790     $ 1,959,963       4.7 %   $ 2,161,238       -5.1 %
    Interest-bearing   4,351,431       4,369,377       -0.4 %     4,098,834       6.2 %
    Total deposits   6,403,221       6,329,340       1.2 %     6,260,072       2.3 %
    Accrued interest payable   52,613       47,699       10.3 %     50,286       4.6 %
    Bank’s liability on acceptances   67       551       -87.8 %     1,386       -95.2 %
    Borrowings   300,000       292,500       2.6 %     162,500       84.6 %
    Subordinated debentures   130,478       130,318       0.1 %     129,860       0.5 %
    Accrued expenses and other liabilities   89,211       78,880       13.1 %     82,677       7.9 %
    Total liabilities   6,975,590       6,879,288       1.4 %     6,686,781       4.3 %
                                 
    Stockholders’ equity:                            
    Common stock   34       34       0.0 %     34       0.0 %
    Additional paid-in capital   589,567       588,647       0.2 %     586,169       0.6 %
    Accumulated other comprehensive income   (55,140 )     (78,000 )     29.3 %     (99,422 )     44.5 %
    Retained earnings   340,718       333,392       2.2 %     308,007       10.6 %
    Less treasury stock   (138,470 )     (137,014 )     -1.1 %     (131,429 )     -5.4 %
    Total stockholders’ equity   736,709       707,059       4.2 %     663,359       11.1 %
    Total liabilities and stockholders’ equity $ 7,712,299     $ 7,586,347       1.7 %   $ 7,350,140       4.9 %

     


    Hanmi Financial Corporation and Subsidiaries

    Consolidated Statements of Income (Unaudited)
    (Dollars in thousands, except share and per share data)

      Three Months Ended  
      September 30,     June 30,     Percentage     September 30,     Percentage  
      2024     2024     Change     2023     Change  
    Interest and dividend income:                            
    Interest and fees on loans receivable $ 92,182     $ 90,752       1.6 %   $ 85,398       7.9 %
    Interest on securities   5,523       5,238       5.4 %     4,204       31.4 %
    Dividends on FHLB stock   356       357       -0.3 %     317       12.3 %
    Interest on deposits in other banks   2,356       2,313       1.9 %     4,153       -43.3 %
    Total interest and dividend income   100,417       98,660       1.8 %     94,072       6.7 %
    Interest expense:                            
    Interest on deposits   47,153       46,495       1.4 %     36,818       28.1 %
    Interest on borrowings   1,561       1,896       -17.7 %     753       107.3 %
    Interest on subordinated debentures   1,652       1,649       0.2 %     1,646       0.4 %
    Total interest expense   50,366       50,040       0.7 %     39,217       28.4 %
    Net interest income before credit loss expense   50,051       48,620       2.9 %     54,855       -8.8 %
    Credit loss expense   2,286       961       137.9 %     5,154       -55.6 %
    Net interest income after credit loss expense   47,765       47,659       0.2 %     49,701       -3.9 %
    Noninterest income:                            
    Service charges on deposit accounts   2,311       2,429       -4.9 %     2,605       -11.3 %
    Trade finance and other service charges and fees   1,254       1,277       -1.8 %     1,155       8.6 %
    Gain on sale of Small Business Administration (“SBA”) loans   1,544       1,644       -6.1 %     1,172       31.7 %
    Other operating income   3,329       2,707       23.0 %     6,296       -47.1 %
    Total noninterest income   8,438       8,057       4.7 %     11,228       -24.8 %
    Noninterest expense:                            
    Salaries and employee benefits   20,851       20,434       2.0 %     20,361       2.4 %
    Occupancy and equipment   4,499       4,607       -2.3 %     4,825       -6.8 %
    Data processing   3,839       3,686       4.2 %     3,490       10.0 %
    Professional fees   1,492       1,749       -14.7 %     1,568       -4.8 %
    Supplies and communications   538       570       -5.6 %     552       -2.5 %
    Advertising and promotion   631       669       -5.7 %     534       18.2 %
    Other operating expenses   3,230       3,561       -9.3 %     2,915       10.8 %
    Total noninterest expense   35,080       35,276       -0.6 %     34,245       2.4 %
    Income before tax   21,123       20,440       3.3 %     26,684       -20.8 %
    Income tax expense   6,231       5,989       4.0 %     7,888       -21.0 %
    Net income $ 14,892     $ 14,451       3.1 %   $ 18,796       -20.8 %
                                 
    Basic earnings per share: $ 0.49     $ 0.48           $ 0.62        
    Diluted earnings per share: $ 0.49     $ 0.48           $ 0.62        
                                 
    Weighted-average shares outstanding:                            
    Basic   29,968,004       30,055,913             30,251,961        
    Diluted   30,033,679       30,133,646             30,292,872        
    Common shares outstanding   30,196,755       30,272,110             30,410,582        

     


    Hanmi Financial Corporation and Subsidiaries

    Consolidated Statements of Income (Unaudited)
    (Dollars in thousands, except share and per share data)

      Nine Months Ended  
      September 30,     September 30,     Percentage  
      2024     2023     Change  
    Interest and dividend income:                
    Interest and fees on loans receivable $ 274,608     $ 249,888       9.9 %
    Interest on securities   15,717       12,356       27.2 %
    Dividends on FHLB stock   1,075       888       21.1 %
    Interest on deposits in other banks   7,270       9,012       -19.3 %
    Total interest and dividend income   298,670       272,144       9.7 %
    Interest expense:                
    Interest on deposits   139,286       94,431       47.5 %
    Interest on borrowings   5,112       4,755       7.5 %
    Interest on subordinated debentures   4,948       4,828       2.5 %
    Total interest expense   149,346       104,014       43.6 %
    Net interest income before credit loss expense   149,324       168,130       -11.2 %
    Credit loss expense   3,474       7,210       -51.8 %
    Net interest income after credit loss expense   145,850       160,920       -9.4 %
    Noninterest income:                
    Service charges on deposit accounts   7,189       7,756       -7.3 %
    Trade finance and other service charges and fees   3,945       3,586       10.0 %
    Gain on sale of Small Business Administration (“SBA”) loans   4,669       4,253       9.8 %
    Other operating income   8,425       11,904       -29.2 %
    Total noninterest income   24,228       27,499       -11.9 %
    Noninterest expense:                
    Salaries and employee benefits   62,870       61,336       2.5 %
    Occupancy and equipment   13,643       13,737       -0.7 %
    Data processing   11,076       10,208       8.5 %
    Professional fees   5,134       4,278       20.0 %
    Supplies and communications   1,710       1,866       -8.4 %
    Advertising and promotion   2,207       2,114       4.4 %
    Other operating expenses   10,160       7,777       30.6 %
    Total noninterest expense   106,800       101,316       5.4 %
    Income before tax   63,278       87,103       -27.4 %
    Income tax expense   18,772       25,695       -26.9 %
    Net income $ 44,506     $ 61,408       -27.5 %
                     
    Basic earnings per share: $ 1.47     $ 2.01        
    Diluted earnings per share: $ 1.47     $ 2.01        
                     
    Weighted-average shares outstanding:                
    Basic   30,048,748       30,296,991        
    Diluted   30,117,269       30,338,678        
    Common shares outstanding   30,196,755       30,410,582        

     


    Hanmi Financial Corporation and Subsidiaries

    Average Balance, Average Yield Earned, and Average Rate Paid (Unaudited)
    (Dollars in thousands)

      Three Months Ended  
      September 30, 2024     June 30, 2024     September 30, 2023  
            Interest   Average           Interest   Average           Interest   Average  
      Average     Income /   Yield /     Average     Income /   Yield /     Average     Income /   Yield /  
      Balance     Expense   Rate     Balance     Expense   Rate     Balance     Expense   Rate  
    Assets                                              
    Interest-earning assets:                                              
    Loans receivable (1) $ 6,112,324     $ 92,182     6.00 %   $ 6,089,440     $ 90,752     5.99 %   $ 5,915,423     $ 85,398     5.73 %
    Securities (2)   986,041       5,523     2.27 %     979,671       5,238     2.17 %     955,473       4,204     1.79 %
    FHLB stock   16,385       356     8.65 %     16,385       357     8.77 %     16,385       317     7.67 %
    Interest-bearing deposits in other banks   183,027       2,356     5.12 %     180,177       2,313     5.16 %     317,498       4,153     5.19 %
    Total interest-earning assets   7,297,777       100,417     5.48 %     7,265,673       98,660     5.46 %     7,204,779       94,072     5.19 %
                                                   
    Noninterest-earning assets:                                              
    Cash and due from banks   54,843                 55,442                 59,994            
    Allowance for credit losses   (67,906 )               (67,908 )               (70,173 )          
    Other assets   251,421                 252,410                 240,145            
                                                   
    Total assets $ 7,536,135               $ 7,505,617               $ 7,434,745            
                                                   
    Liabilities and Stockholders’ Equity                                              
    Interest-bearing liabilities:                                              
    Deposits:                                              
    Demand: interest-bearing $ 83,647     $ 31     0.15 %   $ 85,443     $ 32     0.15 %   $ 94,703     $ 32     0.13 %
    Money market and savings   1,885,799       17,863     3.77 %     1,845,870       17,324     3.77 %     1,601,826       12,485     3.09 %
    Time deposits   2,427,737       29,259     4.79 %     2,453,154       29,139     4.78 %     2,438,112       24,301     3.95 %
    Total interest-bearing deposits   4,397,183       47,153     4.27 %     4,384,467       46,495     4.27 %     4,134,641       36,818     3.53 %
    Borrowings   143,479       1,561     4.33 %     169,525       1,896     4.50 %     120,381       753     2.48 %
    Subordinated debentures   130,403       1,652     5.07 %     130,239       1,649     5.07 %     129,780       1,646     5.07 %
    Total interest-bearing liabilities   4,671,065       50,366     4.29 %     4,684,231       50,040     4.30 %     4,384,802       39,217     3.55 %
                                                   
    Noninterest-bearing liabilities and equity:                                              
    Demand deposits: noninterest-bearing   1,908,833                 1,883,765                 2,136,156            
    Other liabilities   171,987                 162,543                 159,127            
    Stockholders’ equity   784,250                 775,078                 754,660            
                                                   
    Total liabilities and stockholders’ equity $ 7,536,135               $ 7,505,617               $ 7,434,745            
                                                   
    Net interest income       $ 50,051               $ 48,620               $ 54,855      
                                                   
    Cost of deposits             2.97 %               2.98 %               2.33 %
    Net interest spread (taxable equivalent basis)             1.19 %               1.16 %               1.64 %
    Net interest margin (taxable equivalent basis)             2.74 %               2.69 %               3.03 %
                                                   
    (1)       Includes average loans held for sale        
    (2)       Income calculated on a fully taxable equivalent basis using the federal tax rate in effect for the periods presented.  

     


    Hanmi Financial Corporation and Subsidiaries

    Average Balance, Average Yield Earned, and Average Rate Paid (Unaudited)
    (Dollars in thousands)

      Nine Months Ended  
      September 30, 2024     September 30, 2023  
            Interest   Average           Interest   Average  
      Average     Income /   Yield /     Average     Income /   Yield /  
      Balance     Expense   Rate     Balance     Expense   Rate  
    Assets                              
    Interest-earning assets:                              
    Loans receivable (1) $ 6,113,214     $ 274,608     6.00 %   $ 5,933,525     $ 249,888     5.63 %
    Securities (2)   978,439       15,717     2.17 %     969,146       12,356     1.73 %
    FHLB stock   16,385       1,076     8.77 %     16,385       888     7.25 %
    Interest-bearing deposits in other banks   188,290       7,269     5.16 %     247,581       9,012     4.87 %
    Total interest-earning assets   7,296,328       298,670     5.47 %     7,166,637       272,144     5.08 %
                                   
    Noninterest-earning assets:                              
    Cash and due from banks   56,217                 62,354            
    Allowance for credit losses   (68,305 )               (71,236 )          
    Other assets   249,517                 237,111            
                                   
    Total assets $ 7,533,757               $ 7,394,866            
                                   
    Liabilities and Stockholders’ Equity                              
    Interest-bearing liabilities:                              
    Deposits:                              
    Demand: interest-bearing $ 85,158     $ 92     0.14 %   $ 100,997     $ 88     0.12 %
    Money market and savings   1,849,053       51,740     3.74 %     1,506,776       29,687     2.63 %
    Time deposits   2,462,779       87,454     4.74 %     2,355,923       64,656     3.67 %
    Total interest-bearing deposits   4,396,990       139,286     4.23 %     3,963,696       94,431     3.19 %
    Borrowings   158,419       5,112     4.31 %     194,530       4,755     3.27 %
    Subordinated debentures   130,244       4,948     5.06 %     129,632       4,828     4.97 %
    Total interest-bearing liabilities   4,685,653       149,346     4.26 %     4,287,858       104,014     3.24 %
                                   
    Noninterest-bearing liabilities and equity:                              
    Demand deposits: noninterest-bearing   1,904,611                 2,223,891            
    Other liabilities   166,372                 140,070            
    Stockholders’ equity   777,121                 743,047            
                                   
    Total liabilities and stockholders’ equity $ 7,533,757               $ 7,394,866            
                                   
    Net interest income       $ 149,324               $ 168,130      
                                   
    Cost of deposits             2.95 %               2.04 %
    Net interest spread (taxable equivalent basis)             1.21 %               1.84 %
    Net interest margin (taxable equivalent basis)             2.74 %               3.14 %
                                   
    (1)       Includes average loans held for sale  
    (2)       Amounts calculated on a fully taxable equivalent basis using the federal tax rate in effect for the periods presented.  


    Non-GAAP Financial Measures

    Tangible Common Equity to Tangible Assets Ratio

    Tangible common equity to tangible assets ratio is supplemental financial information determined by a method other than in accordance with U.S. generally accepted accounting principles (“GAAP”). This non-GAAP measure is used by management in the analysis of Hanmi’s capital strength. Tangible common equity is calculated by subtracting goodwill and other intangible assets from stockholders’ equity. Banking and financial institution regulators also exclude goodwill and other intangible assets from stockholders’ equity when assessing the capital adequacy of a financial institution. Management believes the presentation of this financial measure excluding the impact of these items provides useful supplemental information that is essential to a proper understanding of the capital strength of Hanmi. This disclosure should not be viewed as a substitute for results determined in accordance with GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies.

    The following table reconciles this non-GAAP performance measure to the GAAP performance measure for the periods indicated:

    Tangible Common Equity to Tangible Assets Ratio (Unaudited)
    (In thousands, except share, per share data and ratios)

      September 30,     June 30,     March 31,     December 31,     September 30,  
    Hanmi Financial Corporation 2024     2024     2024     2023     2023  
    Assets $ 7,712,299     $ 7,586,347     $ 7,512,046     $ 7,570,341     $ 7,350,140  
    Less goodwill and other intangible assets   (11,031 )     (11,048 )     (11,074 )     (11,099 )     (11,131 )
    Tangible assets $ 7,701,268     $ 7,575,299     $ 7,500,972     $ 7,559,242     $ 7,339,009  
                                 
    Stockholders’ equity (1) $ 736,709     $ 707,059     $ 703,100     $ 701,891     $ 663,359  
    Less goodwill and other intangible assets   (11,031 )     (11,048 )     (11,074 )     (11,099 )     (11,131 )
    Tangible stockholders’ equity (1) $ 725,678     $ 696,011     $ 692,026     $ 690,792     $ 652,228  
                                 
    Stockholders’ equity to assets   9.55 %     9.32 %     9.36 %     9.27 %     9.03 %
    Tangible common equity to tangible assets (1)   9.42 %     9.19 %     9.23 %     9.14 %     8.89 %
                                 
    Common shares outstanding   30,196,755       30,272,110       30,276,358       30,368,655       30,410,582  
    Tangible common equity per common share $ 24.03     $ 22.99     $ 22.86     $ 22.75     $ 21.45  
                                 
    (1)      There were no preferred shares outstanding at the periods indicated.  

    The MIL Network –

    January 24, 2025
  • MIL-OSI: National Bank Holdings Corporation Announces Third Quarter 2024 Financial Results and Increase to Quarterly Dividend

    Source: GlobeNewswire (MIL-OSI)

    DENVER, Oct. 22, 2024 (GLOBE NEWSWIRE) — National Bank Holdings Corporation (NYSE: NBHC) reported:

                                   
        For the quarter(1)   For the year(1)
        3Q24   2Q24   3Q23   2024   2023
    Net income ($000’s)   $ 33,105     $ 26,135     $ 36,087     $ 90,631     $ 108,927  
    Earnings per share – diluted   $ 0.86     $ 0.68     $ 0.94     $ 2.36     $ 2.85  
    Return on average assets     1.32 %     1.06 %     1.46 %     1.22 %     1.50 %
    Return on average tangible assets(2)     1.43 %     1.17 %     1.58 %     1.33 %     1.61 %
    Return on average equity     10.33 %     8.46 %     12.26 %     9.70 %     12.71 %
    Return on average tangible common equity(2)     14.84 %     12.44 %     18.38 %     14.14 %     18.81 %

                                                          

    (1 )   Ratios are annualized.
    (2 )   See non-GAAP reconciliations below.
           

    In announcing these results, Chief Executive Officer Tim Laney shared, “We delivered quarterly earnings of $0.86 per diluted share and a return on average tangible common equity of 14.84%. On the strength of our balance sheet, capital position and earnings, we are pleased to announce a 3.6% increase in our quarterly dividend to $0.29 per share. During the quarter, our disciplined approach to loan and deposit pricing drove 11 basis points of net interest margin expansion to 3.87%. Our teams delivered solid quarterly growth in our core banking fees, and we continued to leverage our diverse revenue streams across our franchise resulting in meaningful year-to-date fee income growth.”

    Mr. Laney added, “We continue to remain vigilant in monitoring our loan portfolio, delivering the lowest non-performing loan ratio since early 2023. Our teams adhere to prudent, disciplined approaches that limit concentrations in our loan book and our depositor base, and we regularly perform robust stress testing on our loan portfolio. We enter the fourth quarter from a position of strength and stability and expect to finish the year strong. We believe our Common Equity Tier 1 capital ratio of 12.88%, ample liquidity position, and diversified funding sources provide optionality for future growth.”

    Third Quarter 2024 Results
    (All comparisons refer to the second quarter of 2024, except as noted)

    Net income increased $7.0 million or 26.7% to $33.1 million or $0.86 per diluted share, compared to $26.1 million or $0.68 per diluted share. The quarter’s increase was driven by net interest income and fee income growth. Included in the prior quarter was $3.9 million of impairment related to venture capital investments. Fully taxable equivalent pre-provision net revenue increased $7.5 million or 20.6% to $43.7 million. The return on average tangible assets increased 26 basis points to 1.43%, and the return on average tangible common equity increased 240 basis points to 14.84%.

    Net Interest Income
    Fully taxable equivalent net interest income increased $4.2 million to $89.5 million, driven by a $74.7 million increase in average interest earning assets, a 12 basis point increase in average loan yields and one extra day in the quarter. The fully taxable equivalent net interest margin widened 11 basis points to 3.87%, driven by a 13 basis point increase in earning asset yields which was partially offset by a two basis point increase in the cost of funds.

    Loans
    Loans totaled $7.7 billion at September 30, 2024, consistent with the prior quarter. We generated quarterly loan fundings totaling $359.3 million, led by commercial loan fundings of $219.1 million. The average interest rate on the third quarter’s loan originations was 8.5%.

    Asset Quality and Provision for Credit Losses
    The Company recorded $2.0 million of provision expense for credit losses, compared to $2.8 million in the prior quarter. The current quarter’s provision expense was primarily driven by higher reserve requirements from changes in the CECL model’s underlying economic forecast. Annualized net charge-offs decreased four basis points to 0.18% of average total loans and included the resolution of one previously reserved credit during the quarter. Non-performing loans decreased three basis points to 0.31% of total loans at September 30, 2024, and non-performing assets decreased four basis points to 0.32% of total loans and OREO at September 30, 2024. The allowance for credit losses as a percentage of loans totaled 1.23% at September 30, 2024, compared to 1.25% in the prior quarter.

    Deposits
    Average total deposits increased $21.3 million to $8.4 billion during the third quarter 2024. The loan to deposit ratio totaled 90.8% at September 30, 2024. Average transaction deposits (defined as total deposits less time deposits) totaled $7.4 billion, consistent with the prior quarter. The mix of transaction deposits to total deposits was 88% at September 30, 2024, consistent with June 30, 2024.

    Non-Interest Income
    Non-interest income increased $4.4 million to $18.4 million driven by increases in our diversified sources of fee revenue. Service charges increased $0.6 million, swap fee income increased $0.3 million and trust fee income increased $0.1 million. These increases were partially offset by a $0.3 million decrease in mortgage banking income. Included in the prior quarter was $3.9 million of impairment related to venture capital investments.

    Non-Interest Expense
    Non-interest expense totaled $64.2 million during the third quarter, compared to $63.1 million in the prior quarter. Salaries and benefits increased $0.4 million driven by one additional payroll day in the quarter. Professional fees increased $0.4 million and data processing increased $0.3 million driven by our continued investments in technology. These increases were partially offset by a decrease in occupancy and equipment of $0.4 million. The fully taxable equivalent efficiency ratio, excluding other intangible assets amortization, improved 387 basis points to 57.7% for the third quarter.

    Income tax expense increased $1.2 million to $6.8 million, compared to $5.6 million in the prior quarter, due to the third quarter’s higher pre-tax income. The effective tax rate was 17.0%, compared to 17.7% for the second quarter.

    Capital
    Capital ratios continue to be strong and in excess of federal bank regulatory agency “well capitalized” thresholds. The tier 1 leverage ratio totaled 10.44%, and the common equity tier 1 capital ratio totaled 12.88% at September 30, 2024. Shareholders’ equity totaled $1.3 billion at September 30, 2024, increasing $44.4 million. The third quarter’s net income drove $22.2 million of growth in retained earnings, and changes in the interest rate environment led to a $17.9 million improvement in accumulated other comprehensive loss.

    Common book value per share increased $1.09 to $34.01 at September 30, 2024. Tangible common book value per share increased $1.17 to $24.91 as this quarter’s earnings and a decrease in accumulated other comprehensive loss outpaced the quarterly dividend.

    Dividend Announcement
    The quarterly cash dividend will increase 3.6% from $0.28 per share to $0.29 per share. The dividend will be payable on December 13, 2024 to shareholders of record at the close of business on November 29, 2024. This is the eighth consecutive semiannual increase to the quarterly dividend since early 2021.

    Year-Over-Year Review
    (All comparisons refer to the first nine months of 2023, except as noted)

    Net income totaled $90.6 million, or $2.36 per diluted share, compared to net income of $108.9 million, or $2.85 per diluted share, for the first nine months of 2023. The decrease over the same period prior year was largely driven by lower net interest income, due to an increase in cost of funds outpacing the increase in interest income. Partially offsetting this decrease was a 4.7% increase in non-interest income driven by our diversified sources of fee revenue. Fully taxable equivalent pre-provision net revenue totaled $120.5 million, compared to $144.9 million. The return on average tangible assets totaled 1.33%, compared to 1.61%, and the return on average tangible common equity was 14.14%, compared to 18.81%.

    Fully taxable equivalent net interest income totaled $260.5 million, compared to $276.9 million. Average earning assets increased $165.0 million, including average loan growth of $296.4 million, which was partially offset by a decrease in average investment securities of $70.2 million. The fully taxable equivalent net interest margin narrowed 32 basis points to 3.80%, as the increase in earning asset yields was more than offset by an increase in the cost of funds. Average interest bearing liabilities increased $555.3 million due to higher deposit balances, and the cost of funds totaled 2.31%, compared to 1.40% in the same period prior year.

    Loans outstanding totaled $7.7 billion, increasing $236.1 million or 3.2%. New loan fundings over the trailing twelve months totaled $1.5 billion, led by commercial loan fundings of $1.0 billion.  

    The Company recorded $4.8 million of provision expense for credit losses for the first nine months of 2024, compared to provision expense of $3.7 million in the same period prior year. Annualized net charge-offs totaled 0.13% of average total loans during the first nine months of 2024, compared to 0.02% of average total loans during the first nine months of 2023. Non-performing loans decreased 13 basis points to 0.31% of total loans at September 30, 2024, and non-performing assets decreased 17 basis points to 0.32% of total loans and OREO at September 30, 2024. The allowance for credit losses as a percentage of loans totaled 1.23% at September 30, 2024, compared to 1.25% at September 30, 2023.

    Average total deposits increased $418.6 million or 5.3% to $8.3 billion, and average transaction deposits increased $369.2 million or 5.3%. The mix of transaction deposits to total deposits was 88%, consistent with September 30, 2023.

    Non-interest income totaled $50.1 million, an increase of $2.3 million or 4.7%, driven by increases in our diversified sources of fee revenue. Other non-interest income increased $5.2 million, or 63.6%, and included increases in SBA loan income, trust income, Cambr income and swap fee income. Mortgage banking income decreased $2.7 million as the sustained higher-interest rate environment has lowered mortgage volume.

    Non-interest expense totaled $190.1 million, an increase of $10.2 million or 5.7%, largely due to ongoing investments in technology. Salaries and benefits increased $7.6 million, occupancy and equipment increased $2.4 million and data processing increased $2.3 million. Other intangible assets amortization increased $0.6 million due to our Cambr acquisition in April of 2023. These increases were partially offset by a decrease of $2.5 million in professional fees.

    Income tax expense totaled $19.9 million, a decrease of $7.9 million from the same period prior year, driven by lower pre-tax income. The effective tax rate was 18.0% for the first nine months of 2024, compared to 20.3%.

    Conference Call
    Management will host a conference call to review the results at 11:00 a.m. Eastern Time on Wednesday, October 23, 2024. Interested parties may listen to this call by dialing (888) 204-4368 using the participant passcode of 3279876 and asking for the NBHC Q3 2024 Earnings Call. The earnings release and a link to the replay of the call will be available on the Company’s website at http://www.nationalbankholdings.com by visiting the investor relations area.

    About National Bank Holdings Corporation
    National Bank Holdings Corporation is a bank holding company created to build a leading community bank franchise, delivering high quality client service and committed to stakeholder results. Through its bank subsidiaries, NBH Bank and Bank of Jackson Hole Trust, National Bank Holdings Corporation operates a network of over 90 banking centers, serving individual consumers, small, medium and large businesses, and government and non-profit entities. Its banking centers are located in its core footprint of Colorado, the greater Kansas City region, Utah, Wyoming, Texas, New Mexico and Idaho. Its comprehensive residential mortgage banking group primarily serves the bank’s core footprint. Its trust and wealth management business is operated in its core footprint under the Bank of Jackson Hole Trust charter. NBH Bank operates under a single state charter through the following brand names as divisions of NBH Bank: in Colorado, Community Banks of Colorado and Community Banks Mortgage; in Kansas and Missouri, Bank Midwest and Bank Midwest Mortgage; in Texas, Utah, New Mexico and Idaho, Hillcrest Bank and Hillcrest Bank Mortgage; and in Wyoming, Bank of Jackson Hole and Bank of Jackson Hole Mortgage. Additional information about National Bank Holdings Corporation can be found at http://www.nationalbankholdings.com. 

    For more information visit: cobnks.com, bankmw.com, hillcrestbank.com, bankofjacksonhole.com, or nbhbank.com, or connect with any of our brands on LinkedIn.

    About Non-GAAP Financial Measures
    Certain of the financial measures and ratios we present, including “tangible assets,” “return on average tangible assets,” “tangible common equity,” “return on average tangible common equity,” “tangible common book value per share,” “tangible common book value, excluding accumulated other comprehensive loss, net of tax,” “tangible common book value per share, excluding accumulated other comprehensive loss, net of tax,” “tangible common equity to tangible assets,” “non-interest expense excluding other intangible assets amortization,” “efficiency ratio excluding other intangible assets amortization,” “net income excluding the impact of other intangible assets amortization expense, after tax,” “pre-provision net revenue,” and “fully taxable equivalent” metrics, are supplemental measures that are not required by, or are not presented in accordance with, U.S. generally accepted accounting principles (GAAP). We refer to these financial measures and ratios as “non-GAAP financial measures.” We consider the use of select non-GAAP financial measures and ratios to be useful for financial and operational decision making and useful in evaluating period-to-period comparisons. We believe that these non-GAAP financial measures provide meaningful supplemental information regarding our performance by excluding certain expenditures or assets that we believe are not indicative of our primary business operating results or by presenting certain metrics on a fully taxable equivalent basis. We believe that management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting, analyzing and comparing past, present and future periods.

    These non-GAAP financial measures should not be considered a substitute for financial information presented in accordance with GAAP and you should not rely on non-GAAP financial measures alone as measures of our performance. The non-GAAP financial measures we present may differ from non-GAAP financial measures used by our peers or other companies. We compensate for these limitations by providing the equivalent GAAP measures whenever we present the non-GAAP financial measures and by including a reconciliation of the impact of the components adjusted for in the non-GAAP financial measure so that both measures and the individual components may be considered when analyzing our performance. A reconciliation of non-GAAP financial measures to the comparable GAAP financial measures is included at the end of the financial statement tables.

    Forward-Looking Statements
    This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements contain words such as “anticipate,” “believe,” “can,” “would,” “should,” “could,” “may,” “predict,” “seek,” “potential,” “will,” “estimate,” “target,” “plan,” “project,” “continuing,” “ongoing,” “expect,” “intend” or similar expressions that relate to the Company’s strategy, plans or intentions. Forward-looking statements involve certain important risks, uncertainties and other factors, any of which could cause actual results to differ materially from those in such statements. Such factors include, without limitation, the “Risk Factors” referenced in our most recent Form 10-K filed with the Securities and Exchange Commission (SEC), other risks and uncertainties listed from time to time in our reports and documents filed with the SEC, and the following factors: the impact of potential regulatory changes to capital requirements, treatment of investment securities and FDIC deposit insurance levels and costs; our ability to execute our business strategy, including our digital strategy, as well as changes in our business strategy or development plans; business and economic conditions; effects of any potential government shutdowns; economic, market, operational, liquidity, credit and interest rate risks associated with the Company’s business, including increased competition for deposits due to prevailing market interest rates and banking sector volatility; effects of any changes in trade, monetary and fiscal policies and laws, including the interest rate policies of the Federal Reserve Board; changes imposed by regulatory agencies to increase capital standards; effects of inflation, as well as interest rate, securities market and monetary supply fluctuations; changes in the economy or supply-demand imbalances affecting local real estate values; changes in consumer spending, borrowings and savings habits; changes in the fair value of our investment securities due to market conditions outside of our control; financial or reputational impacts associated with the increased prevalence of fraud or other financial crimes; with respect to our mortgage business, the inability to negotiate fees with investors for the purchase of our loans or our obligation to indemnify purchasers or repurchase related loans if the loans fail to meet certain criteria, or higher rate of delinquencies and defaults as a result of the geographic concentration of our servicing portfolio; the Company’s ability to identify potential candidates for, obtain regulatory approval for, and consummate, integrate and realize operating efficiencies from, acquisitions, consolidations and other expansion opportunities; our ability to integrate acquisitions or consolidations and to achieve synergies, operating efficiencies and/or other expected benefits within expected timeframes, or at all, or within expected cost projections, and to preserve the goodwill of acquired financial institutions; the Company’s ability to realize anticipated benefits from enhancements or updates to its core operating systems from time to time without significant change in client service or risk to the Company’s control environment; the Company’s dependence on information technology and telecommunications systems of third-party service providers and the risk of systems failures, interruptions or breaches of security, including those that could result in disclosure or misuse of confidential or proprietary client or other information; the Company’s ability to achieve organic loan and deposit growth and the competition for, and composition of, such growth; changes in sources and uses of funds; increased competition in the financial services industry; regulatory and financial impacts associated with the Company growing to over $10 billion in consolidated assets; increases in claims and litigation related to our fiduciary responsibilities in connection with our trust and wealth management business; the effect of changes in accounting policies and practices as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board (“FASB”) and other accounting standard setters; the share price of the Company’s stock; the Company’s ability to realize deferred tax assets or the need for a valuation allowance, or the effects of changes in tax laws on our deferred tax assets; the effects of tax legislation, including the potential of future increases to prevailing tax rules, or challenges to our positions; continued consolidation in the financial services industry; ability to maintain or increase market share and control expenses; costs and effects of changes in laws and regulations and of other legal and regulatory developments, including, but not limited to, changes in regulation that affect the fees that we charge, the resolution of legal proceedings or regulatory or other government inquiries, and the results of regulatory examinations, reviews or other inquiries, and changes in regulations that apply to us as a Colorado state-chartered bank and a Wyoming state-chartered bank; technological changes, including with respect to the advancement of artificial intelligence; the timely development and acceptance of new products and services, including in the digital technology space our digital solution 2UniFi; changes in our management personnel and the Company’s continued ability to attract, hire and maintain qualified personnel; ability to implement and/or improve operational management and other internal risk controls and processes and reporting system and procedures; regulatory limitations on dividends from our bank subsidiaries; changes in estimates of future credit reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements; financial, reputational, or strategic risks associated with our investments in financial technology companies and initiatives; widespread natural and other disasters, pandemics, dislocations, political instability, acts of war or terrorist activities, cyberattacks or international hostilities through impacts on the economy and financial markets generally or on us or our counterparties specifically; a cybersecurity incident, data breach or a failure of a key information technology system; impact of reputational risk; other risks and uncertainties listed from time to time in the Company’s reports and documents filed with the Securities and Exchange Commission; and success at managing the risks involved in the foregoing items. The Company can give no assurance that any goal or plan or expectation set forth in forward-looking statements can be achieved and readers are cautioned not to place undue reliance on such statements. The forward-looking statements are made as of the date of this press release, and the Company does not intend, and assumes no obligation, to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events or circumstances, except as required by applicable law.

    Contacts:
    Analysts/Institutional Investors:
    Emily Gooden, Chief Accounting Officer and Investor Relations Director, (720) 554-6640, ir@nationalbankholdings.com
    Nicole Van Denabeele, Chief Financial Officer, (720) 529-3370, ir@nationalbankholdings.com

    Media:
    Jody Soper, Chief Marketing Officer, (303) 784-5925, Jody.Soper@nbhbank.com 

    NATIONAL BANK HOLDINGS CORPORATION
    FINANCIAL SUMMARY
    Consolidated Statements of Operations (Unaudited)
    (Dollars in thousands, except share and per share data)

                                 
      For the three months ended   For the nine months ended
      September 30,       June 30,       September 30,       September 30,       September 30, 
      2024   2024   2023   2024   2023
    Total interest and dividend income $ 138,003   $ 132,447   $ 126,110   $ 402,182   $ 360,712
    Total interest expense   50,350     48,873     38,333     146,925     88,262
    Net interest income   87,653     83,574     87,777     255,257     272,450
    Taxable equivalent adjustment   1,816     1,711     1,575     5,220     4,432
    Net interest income FTE(1)   89,469     85,285     89,352     260,477     276,882
    Provision expense for credit losses   2,000     2,776     1,125     4,776     3,725
    Net interest income after provision for credit losses FTE(1)   87,469     82,509     88,227     255,701     273,157
    Non-interest income:                            
    Service charges   4,912     4,295     4,849     13,598     13,394
    Bank card fees   4,832     4,882     4,993     14,292     14,721
    Mortgage banking income   2,981     3,296     4,688     8,932     11,614
    Other non-interest income   5,664     1,556     4,835     13,290     8,124
    Total non-interest income   18,389     14,029     19,365     50,112     47,853
    Non-interest expense:                            
    Salaries and benefits   37,331     36,933     35,027     110,784     103,231
    Occupancy and equipment   9,697     10,120     9,167     29,758     27,366
    Professional fees   2,111     1,706     2,215     5,463     7,951
    Data processing   4,398     4,117     3,546     12,581     10,257
    Other non-interest expense   8,648     8,222     8,640     25,523     25,693
    Other intangible assets amortization   1,977     1,977     2,008     5,962     5,378
    Total non-interest expense   64,162     63,075     60,603     190,071     179,876
                                 
    Income before income taxes FTE(1)   41,696     33,463     46,989     115,742     141,134
    Taxable equivalent adjustment   1,816     1,711     1,575     5,220     4,432
    Income before income taxes   39,880     31,752     45,414     110,522     136,702
    Income tax expense   6,775     5,617     9,327     19,891     27,775
    Net income $ 33,105   $ 26,135   $ 36,087   $ 90,631   $ 108,927
    Earnings per share – basic $ 0.86   $ 0.68   $ 0.95   $ 2.37   $ 2.87
    Earnings per share – diluted   0.86     0.68     0.94     2.36     2.85

                                                          

    (1 )      Net interest income is presented on a GAAP basis and fully taxable equivalent (FTE) basis, as the Company believes this non-GAAP measure is the preferred industry measurement for this item. The FTE adjustment is for the tax benefit on certain tax exempt loans using the federal tax rate of 21% for each period presented.
           

    NATIONAL BANK HOLDINGS CORPORATION
    Consolidated Statements of Financial Condition (Unaudited)
    (Dollars in thousands, except share and per share data)

                           
      September 30, 2024   June 30, 2024      December 31, 2023   September 30, 2023
    ASSETS                      
    Cash and cash equivalents $ 180,796     $ 144,993     $ 190,826     $ 291,291  
    Investment securities available-for-sale   708,987       691,076       628,829       620,445  
    Investment securities held-to-maturity   538,157       554,686       585,052       600,501  
    Non-marketable securities   72,353       72,987       90,477       87,817  
    Loans   7,714,495       7,722,153       7,698,758       7,478,438  
    Allowance for credit losses   (95,047 )     (96,457 )     (97,947 )     (93,446 )
    Loans, net   7,619,448       7,625,696       7,600,811       7,384,992  
    Loans held for sale   16,765       18,787       18,854       19,048  
    Other real estate owned   1,432       1,526       4,088       3,416  
    Premises and equipment, net   191,889       177,456       162,733       153,553  
    Goodwill   306,043       306,043       306,043       306,043  
    Intangible assets, net   60,390       62,356       66,025       68,283  
    Other assets   297,023       315,245       297,326       330,894  
    Total assets $ 9,993,283     $ 9,970,851     $ 9,951,064     $ 9,866,283  
    LIABILITIES AND SHAREHOLDERS’ EQUITY                      
    Liabilities:                      
    Non-interest bearing demand deposits $ 2,268,801     $ 2,229,432     $ 2,361,367     $ 2,483,174  
    Interest bearing demand deposits   1,407,667       1,420,942       1,480,042       1,358,445  
    Savings and money market   3,768,211       3,703,810       3,367,012       3,314,895  
    Total transaction deposits   7,444,679       7,354,184       7,208,421       7,156,514  
    Time deposits   1,052,449       1,022,741       981,970       992,494  
    Total deposits   8,497,128       8,376,925       8,190,391       8,149,008  
    Securities sold under agreements to repurchase   19,517       19,465       19,627       20,273  
    Long-term debt   54,433       54,356       54,200       54,123  
    Federal Home Loan Bank advances   —       35,000       340,000       316,770  
    Other liabilities   130,208       237,461       134,039       162,524  
    Total liabilities   8,701,286       8,723,207       8,738,257       8,702,698  
    Shareholders’ equity:                      
    Common stock   515       515       515       515  
    Additional paid in capital   1,164,395       1,161,804       1,162,269       1,160,706  
    Retained earnings   491,849       469,630       433,126       410,243  
    Treasury stock   (302,277 )     (303,880 )     (306,702 )     (307,026 )
    Accumulated other comprehensive loss, net of tax   (62,485 )     (80,425 )     (76,401 )     (100,853 )
    Total shareholders’ equity   1,291,997       1,247,644       1,212,807       1,163,585  
    Total liabilities and shareholders’ equity $ 9,993,283     $ 9,970,851     $ 9,951,064     $ 9,866,283  
    SHARE DATA                      
    Average basic shares outstanding   38,277,042       38,210,869       38,013,791       37,990,659  
    Average diluted shares outstanding   38,495,091       38,372,777       38,162,538       38,134,338  
    Ending shares outstanding   37,988,364       37,899,453       37,784,851       37,739,776  
    Common book value per share $ 34.01     $ 32.92     $ 32.10     $ 30.83  
    Tangible common book value per share(1) (non-GAAP)   24.91       23.74       22.77       21.43  
    Tangible common book value per share, excluding accumulated other comprehensive loss(1) (non-GAAP)   26.56       25.86       24.79       24.10  
    CAPITAL RATIOS                      
    Average equity to average assets   12.80 %     12.57 %     11.97 %     11.93 %
    Tangible common equity to tangible assets(1)   9.81 %     9.35 %     8.96 %     8.50 %
    Tier 1 leverage ratio   10.44 %     10.20 %     9.74 %     9.56 %
    Common equity tier 1 risk-based capital ratio   12.88 %     12.41 %     11.89 %     11.61 %
    Tier 1 risk-based capital ratio   12.88 %     12.41 %     11.89 %     11.61 %
    Total risk-based capital ratio   14.79 %     14.32 %     13.80 %     13.49 %

                                                          

    (1 )      Represents a non-GAAP financial measure. See non-GAAP reconciliations below.
           

    NATIONAL BANK HOLDINGS CORPORATION
    Loan Portfolio
    (Dollars in thousands)

    Period End Loan Balances by Type

                             
              September 30, 2024       September 30, 2024
              vs. June 30, 2024       vs. September 30, 2023
      September 30, 2024   June 30, 2024   % Change   September 30, 2023   % Change
    Originated:                        
    Commercial:                        
    Commercial and industrial $ 1,894,830   $ 1,906,095   (0.6 )%   $ 1,784,188   6.2 %
    Municipal and non-profit   1,096,843     1,063,706   3.1 %     1,012,967   8.3 %
    Owner-occupied commercial real estate   949,330     921,122   3.1 %     827,679   14.7 %
    Food and agribusiness   257,743     248,401   3.8 %     258,609   (0.3 )%
    Total commercial   4,198,746     4,139,324   1.4 %     3,883,443   8.1 %
    Commercial real estate non-owner occupied   1,113,796     1,116,424   (0.2 )%     1,026,133   8.5 %
    Residential real estate   933,644     923,313   1.1 %     897,804   4.0 %
    Consumer   13,600     14,385   (5.5 )%     16,700   (18.6 )%
    Total originated   6,259,786     6,193,446   1.1 %     5,824,080   7.5 %
                             
    Acquired:                        
    Commercial:                        
    Commercial and industrial   116,683     124,104   (6.0 )%     156,012   (25.2 )%
    Municipal and non-profit   282     288   (2.1 )%     305   (7.5 )%
    Owner-occupied commercial real estate   221,928     232,890   (4.7 )%     247,701   (10.4 )%
    Food and agribusiness   43,733     48,061   (9.0 )%     61,551   (28.9 )%
    Total commercial   382,626     405,343   (5.6 )%     465,569   (17.8 )%
    Commercial real estate non-owner occupied   720,384     752,040   (4.2 )%     787,926   (8.6 )%
    Residential real estate   349,916     369,003   (5.2 )%     398,187   (12.1 )%
    Consumer   1,783     2,321   (23.2 )%     2,676   (33.4 )%
    Total acquired   1,454,709     1,528,707   (4.8 )%     1,654,358   (12.1 )%
    Total loans $ 7,714,495   $ 7,722,153   (0.1 )%   $ 7,478,438   3.2 %
                                 

    Loan Fundings(1)

                                 
      Third quarter   Second quarter   First quarter   Fourth quarter   Third quarter
      2024   2024   2024   2023   2023
    Commercial:                            
    Commercial and industrial $ 93,711   $ 241,910   $ 53,978     $ 135,954   $ 89,297
    Municipal and non-profit   35,677     28,785     14,564       79,650     18,657
    Owner occupied commercial real estate   70,517     102,615     35,128       75,631     67,322
    Food and agribusiness   19,205     11,040     (7,204 )     10,646     16,191
    Total commercial   219,110     384,350     96,466       301,881     191,467
    Commercial real estate non-owner occupied   91,809     83,184     73,789       107,738     88,434
    Residential real estate   47,322     36,124     29,468       48,925     42,514
    Consumer   1,010     1,547     234       1,849     1,689
    Total $ 359,251   $ 505,205   $ 199,957     $ 460,393   $ 324,104

                                                          

    (1 )      Loan fundings are defined as closed end funded loans and net fundings under revolving lines of credit. Net fundings (paydowns) under revolving lines of credit were $16,302, $19,281, ($59,523), $16,954 and ($12,877) for the periods noted in the table above, respectively.
           

    NATIONAL BANK HOLDINGS CORPORATION
    Summary of Net Interest Margin
    (Dollars in thousands)

                                                           
        For the three months ended   For the three months ended   For the three months ended
        September 30, 2024   June 30, 2024   September 30, 2023
        Average               Average      Average               Average      Average               Average
        balance   Interest   rate   balance   Interest   rate   balance   Interest   rate
    Interest earning assets:                                                      
    Originated loans FTE(1)(2)   $ 6,251,827     $ 108,403     6.90 %   $ 6,074,199     $ 101,794     6.74 %   $ 5,803,157     $ 92,813     6.35 %
    Acquired loans     1,487,002       22,660     6.06 %     1,541,576       23,464     6.12 %     1,671,595       26,115     6.20 %
    Loans held for sale     18,078       319     7.02 %     16,862       318     7.59 %     22,154       383     6.86 %
    Investment securities available-for-sale     790,268       5,132     2.60 %     802,830       5,101     2.54 %     761,892       3,783     1.99 %
    Investment securities held-to-maturity     548,120       2,344     1.71 %     564,818       2,419     1.71 %     611,712       2,685     1.76 %
    Other securities     26,213       405     6.18 %     25,093       377     6.01 %     39,115       701     7.17 %
    Interest earning deposits     70,946       556     3.12 %     92,388       685     2.98 %     130,239       1,205     3.67 %
    Total interest earning assets FTE(2)   $ 9,192,454     $ 139,819     6.05 %   $ 9,117,766     $ 134,158     5.92 %   $ 9,039,864     $ 127,685     5.60 %
    Cash and due from banks   $ 86,887                 $ 100,165                 $ 104,308              
    Other assets     777,758                   771,475                   737,568              
    Allowance for credit losses     (96,369 )                 (97,741 )                 (92,831 )            
    Total assets   $ 9,960,730                 $ 9,891,665                 $ 9,788,909              
    Interest bearing liabilities:                                                      
    Interest bearing demand, savings and money market deposits   $ 5,134,650     $ 40,146     3.11 %   $ 5,109,924     $ 39,681     3.12 %   $ 4,535,183     $ 27,211     2.38 %
    Time deposits     1,039,563       9,220     3.53 %     1,015,371       8,536     3.38 %     992,755       6,212     2.48 %
    Securities sold under agreements to repurchase     17,146       5     0.12 %     17,449       5     0.12 %     19,288       6     0.12 %
    Long-term debt     54,383       519     3.80 %     54,307       518     3.84 %     54,074       519     3.81 %
    Federal Home Loan Bank advances     32,641       460     5.61 %     9,505       133     5.63 %     316,723       4,385     5.49 %
    Total interest bearing liabilities   $ 6,278,383     $ 50,350     3.19 %   $ 6,206,556     $ 48,873     3.17 %   $ 5,918,023     $ 38,333     2.57 %
    Demand deposits   $ 2,226,807                 $ 2,254,454                 $ 2,553,619              
    Other liabilities     180,667                   187,499                   149,068              
    Total liabilities     8,685,857                   8,648,509                   8,620,710              
    Shareholders’ equity     1,274,873                   1,243,156                   1,168,199              
    Total liabilities and shareholders’ equity   $ 9,960,730                 $ 9,891,665                 $ 9,788,909              
    Net interest income FTE(2)         $ 89,469               $ 85,285               $ 89,352      
    Interest rate spread FTE(2)                 2.86 %                 2.75 %                 3.03 %
    Net interest earning assets   $ 2,914,071                 $ 2,911,210                 $ 3,121,841              
    Net interest margin FTE(2)                 3.87 %                 3.76 %                 3.92 %
    Average transaction deposits   $ 7,361,457                 $ 7,364,378                 $ 7,088,802              
    Average total deposits     8,401,020                   8,379,749                   8,081,557              
    Ratio of average interest earning assets to average interest bearing liabilities     146.41 %                 146.91 %                 152.75 %            

                                                          

    (1 )      Originated loans are net of deferred loan fees, less costs, which are included in interest income over the life of the loan.
    (2 )      Presented on a fully taxable equivalent basis using the statutory tax rate of 21%. The tax equivalent adjustments included above are $1,816, $1,711 and $1,575 for the three months ended September 30, 2024, June 30, 2024 and September 30, 2023, respectively.
           

    NATIONAL BANK HOLDINGS CORPORATION
    Summary of Net Interest Margin
    (Dollars in thousands)

                                   
      For the nine months ended September 30, 2024   For the nine months ended September 30, 2023
      Average              Average   Average              Average
      balance   Interest   rate   balance   Interest   rate
    Interest earning assets:                              
    Originated loans FTE(1)(2) $ 6,124,757     $ 311,112   6.79 %   $ 5,656,309     $ 258,528   6.11 %
    Acquired loans   1,546,482       70,413   6.08 %     1,718,523       79,526   6.19 %
    Loans held for sale   15,661       862   7.35 %     23,494       1,189   6.77 %
    Investment securities available-for-sale   781,454       14,336   2.45 %     786,087       11,655   1.98 %
    Investment securities held-to-maturity   563,975       7,277   1.72 %     629,507       8,364   1.77 %
    Other securities   28,771       1,398   6.48 %     46,480       2,513   7.21 %
    Interest earning deposits   84,920       2,004   3.15 %     120,633       3,369   3.73 %
    Total interest earning assets FTE(2) $ 9,146,020     $ 407,402   5.95 %   $ 8,981,033     $ 365,144   5.44 %
    Cash and due from banks $ 96,510               $ 110,902            
    Other assets   768,521                 724,305            
    Allowance for credit losses   (97,327 )               (91,110 )          
    Total assets $ 9,913,724               $ 9,725,130            
    Interest bearing liabilities:                              
    Interest bearing demand, savings and money market deposits $ 5,064,386     $ 116,240   3.07 %   $ 4,197,603     $ 55,070   1.75 %
    Time deposits   1,015,081       25,340   3.33 %     965,750       14,545   2.01 %
    Securities sold under agreements to repurchase   17,839       16   0.12 %     19,863       17   0.11 %
    Long-term debt   54,307       1,555   3.82 %     53,997       1,555   3.85 %
    Federal Home Loan Bank advances   89,918       3,774   5.61 %     449,060       17,075   5.08 %
    Total interest bearing liabilities $ 6,241,531     $ 146,925   3.14 %   $ 5,686,273     $ 88,262   2.08 %
    Demand deposits $ 2,253,986               $ 2,751,537            
    Other liabilities   170,005                 141,110            
    Total liabilities   8,665,522                 8,578,920            
    Shareholders’ equity   1,248,202                 1,146,210            
    Total liabilities and shareholders’ equity $ 9,913,724               $ 9,725,130            
    Net interest income FTE(2)       $ 260,477             $ 276,882    
    Interest rate spread FTE(2)             2.81 %               3.36 %
    Net interest earning assets $ 2,904,489               $ 3,294,760            
    Net interest margin FTE(2)             3.80 %               4.12 %
    Average transaction deposits $ 7,318,372               $ 6,949,140            
    Average total deposits   8,333,453                 7,914,890            
    Ratio of average interest earning assets to average interest bearing liabilities   146.53 %               157.94 %          

                                                          

    (1 )      Originated loans are net of deferred loan fees, less costs, which are included in interest income over the life of the loan.
    (2 )      Presented on a fully taxable equivalent basis using the statutory tax rate of 21%. The tax equivalent adjustments included above are $5,220 and $4,432 for the nine months ended September 30, 2024 and September 30, 2023, respectively.
           

    NATIONAL BANK HOLDINGS CORPORATION
    Allowance for Credit Losses and Asset Quality
    (Dollars in thousands)

    Allowance for Credit Losses Analysis

                     
      As of and for the three months ended
      September 30, 2024   June 30, 2024   September 30, 2023
    Beginning allowance for credit losses $ 96,457     $ 97,607     $ 92,581  
    Charge-offs   (3,505 )     (4,605 )     (540 )
    Recoveries   95       499       280  
    Provision expense for credit losses   2,000       2,956       1,125  
    Ending allowance for credit losses (“ACL”) $ 95,047     $ 96,457     $ 93,446  
    Ratio of annualized net charge-offs to average total loans during the period   0.18 %     0.22 %     0.01 %
    Ratio of ACL to total loans outstanding at period end   1.23 %     1.25 %     1.25 %
    Ratio of ACL to total non-performing loans at period end   403.68 %     370.18 %     281.36 %
    Total loans $ 7,714,495     $ 7,722,153     $ 7,478,438  
    Average total loans during the period   7,714,765       7,582,506       7,443,869  
    Total non-performing loans   23,545       26,057       33,212  
                           

    Past Due and Non-accrual Loans

                     
      September 30, 2024   June 30, 2024   September 30, 2023
    Loans 30-89 days past due and still accruing interest $ 31,253     $ 27,159     $ 8,144  
    Loans 90 days past due and still accruing interest   9,509       3,498       154  
    Non-accrual loans   23,545       26,057       33,212  
    Total past due and non-accrual loans $ 64,307     $ 56,714     $ 41,510  
    Total 90 days past due and still accruing interest and non-accrual loans to total loans   0.43 %     0.38 %     0.45 %
                           

    Asset Quality Data

                     
      September 30, 2024   June 30, 2024   September 30, 2023
    Non-performing loans $ 23,545     $ 26,057     $ 33,212  
    OREO   1,432       1,526       3,416  
    Total non-performing assets $ 24,977     $ 27,583     $ 36,628  
    Total non-performing loans to total loans   0.31 %     0.34 %     0.44 %
    Total non-performing assets to total loans and OREO   0.32 %     0.36 %     0.49 %
                           

    NATIONAL BANK HOLDINGS CORPORATION
    Key Metrics(1)

                                 
      As of and for the three months ended   As of and for the nine months ended
      September 30,    June 30,    September 30,    September 30,    September 30, 
      2024   2024   2023   2024   2023
    Return on average assets   1.32 %     1.06 %     1.46 %     1.22 %     1.50 %
    Return on average tangible assets(2)   1.43 %     1.17 %     1.58 %     1.33 %     1.61 %
    Return on average equity   10.33 %     8.46 %     12.26 %     9.70 %     12.71 %
    Return on average tangible common equity(2)   14.84 %     12.44 %     18.38 %     14.14 %     18.81 %
    Loan to deposit ratio (end of period)   90.79 %     92.18 %     91.77 %     90.79 %     91.77 %
    Non-interest bearing deposits to total deposits (end of period)   26.70 %     26.61 %     30.47 %     26.70 %     30.47 %
    Net interest margin(3)   3.79 %     3.69 %     3.85 %     3.73 %     4.06 %
    Net interest margin FTE(2)(3)   3.87 %     3.76 %     3.92 %     3.80 %     4.12 %
    Interest rate spread FTE(4)   2.86 %     2.75 %     3.03 %     2.81 %     3.36 %
    Yield on earning assets(5)   5.97 %     5.84 %     5.53 %     5.87 %     5.37 %
    Yield on earning assets FTE(2)(5)   6.05 %     5.92 %     5.60 %     5.95 %     5.44 %
    Cost of interest bearing liabilities   3.19 %     3.17 %     2.57 %     3.14 %     2.08 %
    Cost of deposits   2.34 %     2.31 %     1.64 %     2.27 %     1.18 %
    Non-interest income to total revenue FTE(9)   17.05 %     14.13 %     17.81 %     16.13 %     14.74 %
    Non-interest expense to average assets   2.56 %     2.56 %     2.46 %     2.56 %     2.47 %
    Efficiency ratio   60.51 %     64.62 %     56.56 %     62.24 %     56.16 %
    Efficiency ratio excluding other intangible assets amortization FTE(2)   57.65 %     61.52 %     53.90 %     59.28 %     53.74 %
    Pre-provision net revenue $ 41,880     $ 34,528     $ 46,539     $ 115,298     $ 140,427  
    Pre-provision net revenue FTE(2)   43,696       36,239       48,114       120,518       144,859  
                                 
    Total Loans Asset Quality Data(6)(7)(8)                            
    Non-performing loans to total loans   0.31 %     0.34 %     0.44 %     0.31 %     0.44 %
    Non-performing assets to total loans and OREO   0.32 %     0.36 %     0.49 %     0.32 %     0.49 %
    Allowance for credit losses to total loans   1.23 %     1.25 %     1.25 %     1.23 %     1.33 %
    Allowance for credit losses to non-performing loans   403.68 %     370.18 %     281.36 %     403.68 %     281.36 %
    Net charge-offs to average loans   0.18 %     0.22 %     0.01 %     0.13 %     0.02 %

                                                          

    (1 )      Ratios are annualized.
    (2 )      Ratio represents non-GAAP financial measure. See non-GAAP reconciliations below.
    (3 )   Net interest margin represents net interest income, including accretion income on interest earning assets, as a percentage of average interest earning assets.
    (4 )      Interest rate spread represents the difference between the weighted average yield on interest earning assets, including FTE income, and the weighted average cost of interest bearing liabilities. Ratio represents a non-GAAP financial measure.
    (5 )   Interest earning assets include assets that earn interest/accretion or dividends. Any market value adjustments on investment securities or loans are excluded from interest earning assets.
    (6 )   Non-performing loans consist of non-accruing loans and modified loans on non-accrual.
    (7 )   Non-performing assets include non-performing loans and other real estate owned.
    (8 )   Total loans are net of unearned discounts and fees.
    (9 )   Non-interest income to total revenue represents non-interest income divided by the sum of net interest income FTE and non-interest income. Ratio represents a non-GAAP financial measure.
           

    NATIONAL BANK HOLDINGS CORPORATION
    NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS
    (Dollars in thousands, except share and per share data)

    Tangible Common Book Value Ratios

                             
        September 30, 2024   June 30, 2024      December 31, 2023   September 30, 2023
    Total shareholders’ equity   $ 1,291,997     $ 1,247,644     $ 1,212,807     $ 1,163,585  
    Less: goodwill and other intangible assets, net     (358,754 )     (360,732 )     (364,716 )     (366,724 )
    Add: deferred tax liability related to goodwill     13,203       12,871       12,208       11,876  
    Tangible common equity (non-GAAP)   $ 946,446     $ 899,783     $ 860,299     $ 808,737  
                             
    Total assets   $ 9,993,283     $ 9,970,851     $ 9,951,064     $ 9,866,283  
    Less: goodwill and other intangible assets, net     (358,754 )     (360,732 )     (364,716 )     (366,724 )
    Add: deferred tax liability related to goodwill     13,203       12,871       12,208       11,876  
    Tangible assets (non-GAAP)   $ 9,647,732     $ 9,622,990     $ 9,598,556     $ 9,511,435  
                             
    Tangible common equity to tangible assets calculations:                        
    Total shareholders’ equity to total assets     12.93 %     12.51 %     12.19 %     11.79 %
    Less: impact of goodwill and other intangible assets, net     (3.12 )%     (3.16 )%     (3.23 )%     (3.29 )%
    Tangible common equity to tangible assets (non-GAAP)     9.81 %     9.35 %     8.96 %     8.50 %
                             
    Tangible common book value per share calculations:                        
    Tangible common equity (non-GAAP)   $ 946,446     $ 899,783     $ 860,299     $ 808,737  
    Divided by: ending shares outstanding     37,988,364       37,899,453       37,784,851       37,739,776  
    Tangible common book value per share (non-GAAP)   $ 24.91     $ 23.74     $ 22.77     $ 21.43  
                             
    Tangible common book value per share, excluding accumulated other comprehensive loss calculations:                        
    Tangible common equity (non-GAAP)   $ 946,446     $ 899,783     $ 860,299     $ 808,737  
    Accumulated other comprehensive loss, net of tax     62,485       80,425       76,401       100,853  
    Tangible common book value, excluding accumulated other comprehensive loss, net of tax (non-GAAP)     1,008,931       980,208       936,700       909,590  
    Divided by: ending shares outstanding     37,988,364       37,899,453       37,784,851       37,739,776  
    Tangible common book value per share, excluding accumulated other comprehensive loss, net of tax (non-GAAP)   $ 26.56     $ 25.86     $ 24.79     $ 24.10  
                                     

    NATIONAL BANK HOLDINGS CORPORATION
    (Dollars in thousands, except share and per share data)
    Return on Average Tangible Assets and Return on Average Tangible Equity

                                   
        As of and for the three months ended   As of and for the nine months ended
        September 30,       June 30,       September 30,       September 30,       September 30, 
        2024      2024      2023      2024      2023
    Net income   $ 33,105     $ 26,135     $ 36,087     $ 90,631     $ 108,927  
    Add: impact of other intangible assets amortization expense, after tax     1,517       1,516       1,541       4,575       4,128  
    Net income excluding the impact of other intangible assets amortization expense, after tax (non-GAAP)   $ 34,622     $ 27,651     $ 37,628     $ 95,206     $ 113,055  
                                   
    Average assets   $ 9,960,730     $ 9,891,665     $ 9,788,909     $ 9,913,724     $ 9,725,130  
    Less: average goodwill and other intangible assets, net of deferred tax liability related to goodwill     (346,757 )     (349,030 )     (356,083 )     (348,717 )     (342,826 )
    Average tangible assets (non-GAAP)   $ 9,613,973     $ 9,542,635     $ 9,432,826     $ 9,565,007     $ 9,382,304  
                                   
    Average shareholders’ equity   $ 1,274,873     $ 1,243,156     $ 1,168,199     $ 1,248,202     $ 1,146,210  
    Less: average goodwill and other intangible assets, net of deferred tax liability related to goodwill     (346,757 )     (349,030 )     (356,083 )     (348,717 )     (342,826 )
    Average tangible common equity (non-GAAP)   $ 928,116     $ 894,126     $ 812,116     $ 899,485     $ 803,384  
                                   
    Return on average assets     1.32 %     1.06 %     1.46 %     1.22 %     1.50 %
    Return on average tangible assets (non-GAAP)     1.43 %     1.17 %     1.58 %     1.33 %     1.61 %
    Return on average equity     10.33 %     8.46 %     12.26 %     9.70 %     12.71 %
    Return on average tangible common equity (non-GAAP)     14.84 %     12.44 %     18.38 %     14.14 %     18.81 %
                                             

    Fully Taxable Equivalent Yield on Earning Assets and Net Interest Margin

                                   
        As of and for the three months ended   As of and for the nine months ended
        September 30,    June 30,    September 30,    September 30,    September 30, 
        2024   2024   2023   2024   2023
    Interest income   $ 138,003        $ 132,447        $ 126,110        $ 402,182     $ 360,712  
    Add: impact of taxable equivalent adjustment     1,816       1,711       1,575       5,220       4,432  
    Interest income FTE (non-GAAP)   $ 139,819     $ 134,158     $ 127,685     $ 407,402     $ 365,144  
                                   
    Net interest income   $ 87,653     $ 83,574     $ 87,777     $ 255,257     $ 272,450  
    Add: impact of taxable equivalent adjustment     1,816       1,711       1,575       5,220       4,432  
    Net interest income FTE (non-GAAP)   $ 89,469     $ 85,285     $ 89,352     $ 260,477     $ 276,882  
                                   
    Average earning assets   $ 9,192,454     $ 9,117,766     $ 9,039,864     $ 9,146,020     $ 8,981,033  
    Yield on earning assets     5.97 %     5.84 %     5.53 %     5.87 %     5.37 %
    Yield on earning assets FTE (non-GAAP)     6.05 %     5.92 %     5.60 %     5.95 %     5.44 %
    Net interest margin     3.79 %     3.69 %     3.85 %     3.73 %     4.06 %
    Net interest margin FTE (non-GAAP)     3.87 %     3.76 %     3.92 %     3.80 %     4.12 %
                                             

    Efficiency Ratio and Pre-Provision Net Revenue

                                   
        As of and for the three months ended   As of and for the nine months ended
           September 30,       June 30,       September 30,       September 30,       September 30, 
           2024      2024      2023      2024      2023
    Net interest income   $ 87,653     $ 83,574     $ 87,777     $ 255,257     $ 272,450  
    Add: impact of taxable equivalent adjustment     1,816       1,711       1,575       5,220       4,432  
    Net interest income FTE (non-GAAP)   $ 89,469     $ 85,285     $ 89,352     $ 260,477     $ 276,882  
                                   
    Non-interest income   $ 18,389     $ 14,029     $ 19,365     $ 50,112     $ 47,853  
                                   
    Non-interest expense   $ 64,162     $ 63,075     $ 60,603     $ 190,071     $ 179,876  
    Less: other intangible assets amortization     (1,977 )     (1,977 )     (2,008 )     (5,962 )     (5,378 )
    Non-interest expense excluding other intangible assets amortization (non-GAAP)   $ 62,185     $ 61,098     $ 58,595     $ 184,109     $ 174,498  
                                   
    Efficiency ratio     60.51 %     64.62 %     56.56 %     62.24 %     56.16 %
    Efficiency ratio excluding other intangible assets amortization FTE (non-GAAP)     57.65 %     61.52 %     53.90 %     59.28 %     53.74 %
    Pre-provision net revenue (non-GAAP)   $ 41,880     $ 34,528     $ 46,539     $ 115,298     $ 140,427  
    Pre-provision net revenue, FTE (non-GAAP)     43,696       36,239       48,114       120,518       144,859  

    The MIL Network –

    January 24, 2025
  • MIL-OSI: Orrstown Financial Services, Inc. Reports Third Quarter 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    • Orrstown Financial Services, Inc. (“Orrstown” or the “Company”) closed the merger of equals transaction with Codorus Valley Bancorp, Inc. (“Codorus”) on July 1, 2024, creating a premier Pennsylvania and Maryland community bank; as a result, the Company’s results for the three months ended September 30, 2024 reflect the combined operating results of the combined companies;
    • Codorus contributed, after fair value purchase accounting adjustments, approximately $2.2 billion in total assets, $1.6 billion in loans, and $1.9 billion in deposits at July 1, 2024;
    • Net loss of $7.9 million, or $0.41 per diluted share, for the three months ended September 30, 2024 compared to net income of $7.7 million, or $0.73 per diluted share, for the three months ended June 30, 2024, reflecting the impact of $17.0 million in expenses related to the merger, $15.5 million of provision for credit losses on non-purchase credit deteriorated (“PCD”) loans and $4.8 million for the previously announced executive retirement, net of taxes, collectively the “non-recurring charges”;
    • Excluding the impact of the non-recurring charges, net income and diluted earnings per share, respectively, were $21.4 million(1) and $1.11(1) for the third quarter of 2024 compared to net income and diluted earnings per share of $8.7 million(1) and $0.83(1), respectively, as adjusted for the impact of $1.1 million in merger-related expenses, net of taxes, recorded for the second quarter of 2024;
    • Net interest margin, on a tax equivalent basis, was 4.14% in the third quarter of 2024 compared to 3.54% in the second quarter of 2024; the net accretion impact of purchase accounting marks on loans, deposits and borrowings was $5.8 million of net interest income, which represents 52 basis points of net interest margin;
    • Noninterest income increased by $5.1 million to $12.4 million in the three months ended September 30, 2024 compared to $7.2 million in the three months ended June 30, 2024; continued strength in wealth management and swap fee generation by commercial teams are driving fee income growth;
    • Return on average assets for the three months ended September 30, 2024 was (0.57)% compared to 0.97% for the three months ended June 30, 2024; excluding the non-recurring charges, return on average assets was 1.55%(1) for the three months ended September 30, 2024 compared to 1.09%(1) for the three months ended June 30, 2024, excluding merger-related expenses;
    • Return on average equity for the three months ended September 30, 2024 was (5.85)% compared to 11.41% for the three months ended June 30, 2024; excluding the non-recurring charges, return on average equity was 15.85%(1) for the three months ended September 30, 2024 compared to 12.88%(1) for the three months ended June 30, 2024, excluding merger related expenses;
    • The provision for credit losses was $13.7 million for the three months ended September 30, 2024 compared to $812 thousand for the three months ended June 30, 2024; the provision for credit losses on non-PCD loans for the three months ended September 30, 2024 was $15.5 million; excluding the impact of the merger, the provision for credit losses for the three months ended September 30, 2024 was a reversal of $1.8 million;
    • At September 30, 2024, nonaccrual loans totaled $26.9 million, an increase of $18.5 million from $8.4 million at June 30, 2024; non-accrual loans acquired from Codorus totaled $12.8 million;
    • Tangible book value per common share(1) decreased to $21.12 per share at September 30, 2024 compared to $24.08 per share at June 30, 2024; this decrease was primarily due to the impact of loan marks associated with the merger and the net loss incurred for the third quarter of 2024;
    • The Board of Directors declared a cash dividend of $0.23 per common share, payable November 12, 2024, to shareholders of record as of November 5, 2024.

    (1) Non-GAAP measure. See Appendix A for additional information.

    HARRISBURG, Pa., Oct. 22, 2024 (GLOBE NEWSWIRE) — Orrstown Financial Services, Inc. (NASDAQ: ORRF), the parent company of Orrstown Bank (the “Bank”), announced earnings for the three months ended September 30, 2024. Net loss totaled $7.9 million for the three months ended September 30, 2024, compared to net income of $7.7 million for the three months ended June 30, 2024 and $9.0 million for the three months ended September 30, 2023. Diluted loss per share was $0.41 for the three months ended September 30, 2024, compared to diluted earnings per share of $0.73 for the three months ended June 30, 2024 and $0.87 for the three months ended September 30, 2023. For the third quarter of 2024, excluding the impact from the non-recurring charges, net of taxes, net income and diluted earnings per share were $21.4 million(1) and $1.11(1), respectively. For the second quarter of 2024, excluding the impact of the merger-related expenses, net of taxes, net income and diluted earnings per share were $8.7 million(1) and $0.83(1), respectively.

    “While the results for the quarter reflected the impact of certain non-recurring charges, the core income generated by the business demonstrates the significant opportunities afforded by the additional scale and synergies created by the merger. Our core earnings were strong. We already have taken significant steps to achieve the cost savings announced in December, which we are on target to achieve in full in the defined timeline. Our system conversion in scheduled for completion in November 2024, at which time we expect further expense savings to be realized. We believe we are well on our way to improving our client experience, expanding and deepening our community presence, and enhancing shareholder value,” commented Thomas R. Quinn, Jr., President and Chief Executive Officer.

    DISCUSSION OF RESULTS

    Merger Update

    The Company acquired Codorus and its wholly-owned bank subsidiary PeoplesBank, A Codorus Valley Company on July 1, 2024. The merger and acquisition method of accounting was used to account for the transaction with the Company as the acquirer. The Company recorded the assets and liabilities of Codorus at their respective fair values as of July 1, 2024. The transaction was valued at approximately $234 million and expanded the Bank’s footprint into the York, Pennsylvania market while increasing its market penetration in its existing markets.

    At the time of the merger, Codorus contributed, after fair value purchase accounting adjustments, approximately $2.2 billion in assets, $1.6 billion in loans, $326.7 million in investment securities and $1.9 billion in deposits. The excess of the merger consideration over the fair value of net Codorus assets resulted in goodwill of $51.9 million. The merger led to a 12% dilution in our tangible book value per share which was $21.12 at September 30, 2024 compared to $24.08 at June 30, 2024. The principal cause of the dilution was the impact of the associated purchase accounting marks on loans. The Company’s tangible common equity ratio at September 30, 2024 was 7.5%. The loan fair value adjustments are expected to accrete back through income and capital as the loans mature and should lead to earnings per share and capital accretion moving forward. The fair value of assets and liabilities are subject to refinement for up to one year after the acquisition date as allowable under U.S. Generally Accepted Accounting Principles.

    The Company incurred expenses of $32.5 million and $34.3 million for the three and nine months ended September 30, 2023, respectively, related to merger costs and an increased allowance for credit losses on non-PCD portion of the loans assumed from Codorus.

    The Company’s financial results for any periods ended prior to July 1, 2024 reflect Orrstown’s results only on a standalone basis. As a result of this factor and the below listed adjustments related to the merger, the Company’s financial results for the third quarter of 2024 may not be directly comparable to prior reported periods.

    Balance Sheet

    Loans

    Loans held for investment increased by $1.7 billion from June 30, 2024 to September 30, 2024 as $1.6 billion of loans, net of purchase accounting marks, were assumed in the merger with Codorus.

    Investment Securities

    Investment securities, all of which are classified as available-for-sale, increased by $297.7 million to $826.8 million at September 30, 2024 from $529.1 million at June 30, 2024. Investments with a fair value of $326.7 million were assumed in the merger with Codorus. During the third quarter of 2024, investment securities totaling $162.7 million were sold from the portfolio acquired from Codorus. The portfolio was restructured to align the interest rate risk and credit profile for the combined balance sheet. Most of these proceeds were reinvested in investment securities as purchases of $140.4 million were made in the three months ended September 30, 2024. These purchases were partially offset by paydowns of investment securities of $20.6 million and two calls totaling $5.0 million. The overall duration of the Company’s investment securities portfolio was 4.6 years at September 30, 2024 compared to 4.2 years at June 30, 2024. See Appendix B for a summary of the Bank’s investment securities at September 30, 2024, highlighting their concentrations, credit ratings and credit enhancement levels.

    Deposits

    During the third quarter of 2024, deposits increased by $2.0 billion to approximately $4.7 billion at September 30, 2024 compared to $2.7 billion at June 30, 2024. Deposits of $1.9 billion were assumed in the merger. At September 30, 2024, deposits that are uninsured and not collateralized totaled $692.6 million, or 15% of total deposits compared to $422.3 million, or 16% of total deposits at June 30, 2024. The Bank’s loan-to-deposit ratio decreased slightly to 86% at September 30, 2024 from 87% at June 30, 2024.

    Borrowings

    The Bank actively manages its liquidity position through its various sources of funding to meet the needs of its clients. FHLB advances and other borrowings were $115.4 million at September 30, 2024 and $115.0 million at June 30, 2024. The Bank seeks to maintain sufficient liquidity to ensure client needs can be addressed on a timely basis. The Bank had available alternative funding sources, such as FHLB advances and other wholesale options, of approximately $1.0 billion at September 30, 2024. The Bank’s FHLB borrowing capacity at September 30, 2024 was not inclusive of Codorus, which will be reflected in the fourth quarter.

    The Company assumed $31.0 million aggregate principal amount of subordinated debentures and $10.3 million aggregate amount of trust preferred securities from Codorus in the merger. Fair value adjustments of $5.1 million were recorded on July 1, 2024 which reduced the amounts recorded on the balance sheet.

    Income Statement

    Net Interest Income and Margin

    Net interest income was $51.7 million for the three months ended September 30, 2024 compared to $26.1 million for the three months ended June 30, 2024. The net interest margin, on a tax equivalent basis, increased to 4.14% in the third quarter of 2024 from 3.54% in the second quarter of 2024. The net interest margin was positively impacted by the net accretion impact of purchase accounting marks on loans, deposits and borrowings of $5.8 million, which represents 52 basis points of net interest margin. Funding costs show signs of stabilizing.

    Several components of the net interest margin increased primarily as the result of the assets and liabilities assumed in the merger with Codorus.

    Interest income on loans, on a tax equivalent basis, increased by $35.2 million to $70.8 million for the three months ended September 30, 2024 compared to $35.7 million for the three months ended June 30, 2024.

    Interest income on investment securities, on a tax equivalent basis, was $10.1 million for the third quarter of 2024 compared to $6.1 million in the second quarter of 2024.

    Interest expense, on a tax equivalent basis, increased by $14.1 million to $31.3 million for the three months ended September 30, 2024 compared to $17.2 million for the three months ended June 30, 2024. Average interest-bearing deposits increased by $1.6 billion during the three months ended September 30, 2024 compared to the three months ended June 30, 2024. Average borrowings increased by $35.8 million during the three months ended September 30, 2024 compared to the three months ended June 30, 2024. Interest expense includes $0.4 million and $0 of amortization of purchase accounting marks for the three months ended September 30, 2024 and June 30, 2024, respectively.

    Provision for Credit Losses

    The Company recorded a provision for credit losses of $13.7 million for the three months ended September 30, 2024 compared to $0.8 million for the three months ended June 30, 2024. The allowance for credit losses (“ACL”) on loans increased to $49.6 million at September 30, 2024 from $29.9 million at June 30, 2024. The increase in the ACL was primarily due to the addition of $21.4 million of reserves as a result of the merger. This increase was made up of $15.5 million for non-PCD loans, which was recognized through the provision for credit losses, and $5.9 million for PCD loans which was recognized through retained earnings. The provision for credit losses for the three months ended September 30, 2024 included a provision reversal of $1.8 million due to changes in qualitative factors, a change in the peer group utilized for the calculation and a reduction in the required reserve for unfunded commitments. The ACL to total loans was 1.25% at September 30, 2024 compared to 1.27% at June 30, 2024. Net charge-offs were $0.3 million for the three months ended September 30, 2024 compared to net charge-offs of $0.1 million for the three months ended June 30, 2024.

    As a result of the merger, classified loans increased by $56.8 million to $105.5 million at September 30, 2024 from $48.7 million at June 30, 2024. Non-accrual loans increased by $18.5 million to $26.9 million at September 30, 2024 from $8.4 million at June 30, 2024 due primarily to the assumption of $12.8 million of non-accrual loans from Codorus. Nonaccrual loans to total loans increased to 0.68% at September 30, 2024 compared to 0.36% at June 30, 2024 and decreased from 1.11% at December 31, 2023. Management believes the ACL to be adequate based on current asset quality metrics and economic conditions.

    Noninterest Income

    Noninterest income increased by $5.1 million to $12.4 million in the three months ended September 30, 2024 compared to $7.2 million in the three months ended June 30, 2024 primarily due to the merger.

    Wealth management income increased to $5.0 million in the three months ended September 30, 2024 compared to $3.3 million for the three months ended June 30, 2024. The strong sales efforts, organic growth and stock market performance have collectively driven exceptional wealth results throughout the year. As a result of the merger, assets under management increased to approximately $3.2 billion at September 30, 2024 from $2.1 billion at June 30, 2024.

    During the third quarter of 2024, the Company recorded swap fee income of $0.5 million compared to $0.4 million in the three months ended June 30, 2024. Swap fee generation has been strong, but fluctuates based on market conditions and client demand.

    Noninterest Expenses

    Noninterest expenses increased by $37.7 million to $60.3 million in the three months ended September 30, 2024 from $22.6 million in the three months ended June 30, 2024 primarily due to the merger.

    For the three months ended September 30, 2024, merger-related expenses totaled $17.0 million, an increase of $15.9 million, compared to $1.1 million for the three months ended June 30, 2024. The increase is due to primarily to employee separation costs, vendor contract terminations, and professional fees incurred during the third quarter of 2024. The Company will incur additional merger-related expenses from the operational and technology processes to combine systems and services of both companies, which is expected to be completed in November 2024.

    Salaries and benefits expense increased by $14.0 million to $27.2 million for the three months ended September 30, 2024 compared to $13.2 million for the three months ended June 30, 2024. The three months ended September 30, 2024 includes $4.8 million of expenses associated with the retirement of an executive.

    Intangible asset amortization increased to $2.5 million for the three months ended September 30, 2024 compared to $0.2 million for the three months ended June 30, 2024. This increase is due to the amortization expense recognized on the core deposit intangible of $35.9 million and wealth customer relationship intangible of $10.4 million established on July 1, 2024 from the merger.

    Taxes other than income increased to $0.5 million in the three months ended September 30, 2024 compared to less than $0.1 million in the three months ended June 30, 2024. This increase reflects the tax credits recognized on the contributions during the second quarter of 2024.

    There was $257 thousand of restructuring expenses recognized in the three months ended September 30, 2024 associated with previously announced branch closures.

    Income Taxes

    The Company’s effective tax rate for the third quarter of 2024 was 20.1% compared to 21.2% for the second quarter of 2024. The Company’s effective tax rate for the three months ended September 30, 2024 is less than the 21% federal statutory rate primarily due to tax-exempt income, including interest earned on tax-exempt loans and securities and income from life insurance policies and tax credits partially offset by the disallowed portion of interest expense against earnings in association with the Bank’s tax-exempt investments under the Tax Equity and Fiscal Responsibility Act of 1982 (“TEFRA”) and the impact of nondeductible merger-related costs. The Company regularly analyzes its projected taxable income and makes adjustments to the provision for income taxes accordingly.

    Capital

    Shareholders’ equity totaled $516.2 million at September 30, 2024, an increase of $237.8 million from $278.4 million at June 30, 2024. The increase was primarily attributable to the equity assumed in the merger, net of purchase accounting adjustments, partially offset by a net loss of $7.9 million and dividends paid of $4.4 million.

    Tangible book value per share(1) decreased to $21.12 per share at September 30, 2024 from $24.08 per share at June 30, 2024 due to the purchase accounting adjustments associated with the merger.

    The Company’s tangible common equity ratio decreased to 7.5% at September 30, 2024 from 8.1% at June 30, 2024 due to purchase accounting marks and a net loss recorded during the third quarter of 2024. The Company’s total risk-based capital ratio was 12.5% at September 30, 2024 compared to 13.3% at June 30, 2024. The Company’s Tier 1 leverage ratio was 8.0% at September 30, 2024 compared to 8.9% at June 30, 2024. The loan fair value adjustments are expected to accrete back through income and capital as the loans mature and should lead to earnings per share and capital accretion moving forward.

    At September 30, 2024, all four capital ratios applicable to the Company were above regulatory minimum levels to be deemed “well capitalized” under current bank regulatory guidelines. The Company continues to believe that capital is adequate to support the risks inherent in the balance sheet, as well as growth requirements.

    (1) Non-GAAP measure. See Appendix A for additional information.

    Investor Relations Contact:
    Neelesh Kalani
    Executive Vice President, Chief Financial Officer
    Phone (717) 510-7097
    FINANCIAL HIGHLIGHTS (Unaudited)              
                   
                   
      Three Months Ended   Nine Months Ended
      September 30,   September 30,   September 30,   September 30,
    (In thousands)   2024       2023       2024       2023  
                   
    Profitability for the period:              
    Net interest income $ 51,697     $ 26,219     $ 104,681     $ 78,888  
    Provision for credit losses   13,681       136       14,791       1,264  
    Noninterest income   12,386       5,925       26,188       19,161  
    Noninterest expenses   60,299       20,447       105,407       61,451  
    (Loss) income before income tax (benefit) expense   (9,897 )     11,561       10,671       35,334  
    Income tax (benefit) expense   (1,994 )     2,535       2,305       7,314  
    Net (loss) income available to common shareholders $ (7,903 )   $ 9,026     $ 8,366     $ 28,020  
                   
    Financial ratios:              
    Return on average assets (1) (0.57)%     1.18 %     0.28 %     1.25 %
    Return on average assets, adjusted (1) (2) (3)   1.55 %     1.18 %     1.33 %     1.25 %
    Return on average equity (1) (5.85)%     14.42 %     3.10 %     15.51 %
    Return on average equity, adjusted (1) (2) (3)   15.85 %     14.42 %     14.59 %     15.51 %
    Net interest margin (1)   4.14 %     3.73 %     3.88 %     3.83 %
    Efficiency ratio   94.1 %     63.6 %     80.5 %     62.7 %
    Efficiency ratio, adjusted (2) (3)   60.2 %     63.6 %     62.6 %     62.7 %
    (Loss) income per common share:              
    Basic $ (0.41 )   $ 0.87     $ 0.63     $ 2.71  
    Basic, adjusted (2) (3) $ 1.12     $ 0.87     $ 2.96     $ 2.71  
    Diluted $ (0.41 )   $ 0.87     $ 0.62     $ 2.68  
    Diluted, adjusted (2) (3) $ 1.11     $ 0.87     $ 2.93     $ 2.68  
                   
    Average equity to average assets   9.75 %     8.18 %     9.13 %     8.09 %
                   
    (1) Annualized for the three and nine months ended September 30, 2024 and 2023.
    (2) Ratio for the three and nine months ended September 30, 2024 has been adjusted for the non-recurring charges.
    (3) Non-GAAP based financial measure. Please refer to Appendix A – Supplemental Reporting of Non-GAAP Measures and GAAP to Non-GAAP Reconciliations for a discussion of our use of non-GAAP based financial measures, including tables reconciling GAAP and non-GAAP financial measures appearing herein.
    FINANCIAL HIGHLIGHTS (Unaudited)      
    (continued)      
      September 30,   December 31,
    (Dollars in thousands, except per share amounts)   2024       2023  
    At period-end:      
    Total assets $ 5,470,589     $ 3,064,240  
    Loans, net of allowance for credit losses   3,931,807       2,269,611  
    Loans held-for-sale, at fair value   3,561       5,816  
    Securities available for sale, at fair value   826,828       513,519  
    Total deposits   4,650,853       2,558,814  
    FHLB advances and other borrowings and Securities sold under agreements to repurchase   137,310       147,285  
    Subordinated notes and trust preferred debt   68,510       32,093  
    Shareholders’ equity   516,206       265,056  
           
    Credit quality and capital ratios (1):      
    Allowance for credit losses to total loans   1.25 %     1.25 %
    Total nonaccrual loans to total loans   0.68 %     1.11 %
    Nonperforming assets to total assets   0.49 %     0.83 %
    Allowance for credit losses to nonaccrual loans   184 %     112 %
    Total risk-based capital:      
    Orrstown Financial Services, Inc.   12.5 %     13.0 %
    Orrstown Bank   12.3 %     12.8 %
    Tier 1 risk-based capital:      
    Orrstown Financial Services, Inc.   10.0 %     10.8 %
    Orrstown Bank   11.1 %     11.6 %
    Tier 1 common equity risk-based capital:      
    Orrstown Financial Services, Inc.   9.8 %     10.8 %
    Orrstown Bank   11.1 %     11.6 %
    Tier 1 leverage capital:      
    Orrstown Financial Services, Inc.   8.0 %     8.9 %
    Orrstown Bank   8.8 %     9.5 %
           
    Book value per common share $ 26.65     $ 24.98  
           
    (1) Capital ratios are estimated for the current period, subject to regulatory filings. The Company elected the three-year phase in option for the day-one impact of ASU 2016-13 for current expected credit losses (“CECL”) to regulatory capital. Beginning in 2023, the Company adjusted retained earnings, allowance for credit losses includable in tier 2 capital and the deferred tax assets from temporary differences in risk weighted assets by the permitted percentage of the day-one impact from adopting the CECL standard.
    CONSOLIDATED BALANCE SHEETS (Unaudited)      
           
    (Dollars in thousands, except per share amounts) September 30, 2024   December 31, 2023
    Assets      
    Cash and due from banks $ 65,064     $ 32,586  
    Interest-bearing deposits with banks   171,716       32,575  
    Cash and cash equivalents   236,780       65,161  
    Restricted investments in bank stocks   20,247       11,992  
    Securities available for sale (amortized cost of $845,869 and $549,089 at September 30, 2024 and December 31, 2023, respectively)   826,828       513,519  
    Loans held for sale, at fair value   3,561       5,816  
    Loans   3,981,437       2,298,313  
    Less: Allowance for credit losses   (49,630 )     (28,702 )
    Net loans   3,931,807       2,269,611  
    Premises and equipment, net   49,839       29,393  
    Cash surrender value of life insurance   142,895       73,204  
    Goodwill   70,655       18,724  
    Other intangible assets, net   46,144       2,414  
    Accrued interest receivable   20,562       13,630  
    Deferred tax assets, net   38,517       22,017  
    Other assets   82,754       38,759  
    Total assets $ 5,470,589     $ 3,064,240  
           
    Liabilities      
    Deposits:      
    Noninterest-bearing $ 815,404     $ 430,959  
    Interest-bearing   3,835,449       2,127,855  
    Total deposits   4,650,853       2,558,814  
    Securities sold under agreements to repurchase and federal funds purchased   21,932       9,785  
    FHLB advances and other borrowings   115,378       137,500  
    Subordinated notes and trust preferred debt   68,510       32,093  
    Other liabilities   97,710       60,992  
    Total liabilities   4,954,383       2,799,184  
           
    Shareholders’ Equity      
    Preferred stock, $1.25 par value per share; 500,000 shares authorized; no shares issued or outstanding   —       —  
    Common stock, no par value—$0.05205 stated value per share; 50,000,000 shares authorized; 19,723,217 shares issued and 19,373,354 outstanding at September 30, 2024; 11,204,599 shares issued and 10,612,390 outstanding at December 31, 2023   1,027       583  
    Additional paid—in capital   422,177       189,027  
    Retained earnings   117,311       117,667  
    Accumulated other comprehensive loss   (15,888 )     (28,476 )
    Treasury stock— 349,863 and 592,209 shares, at cost at September 30, 2024 and December 31, 2023, respectively   (8,421 )     (13,745 )
    Total shareholders’ equity   516,206       265,056  
    Total liabilities and shareholders’ equity $ 5,470,589     $ 3,064,240  
    CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
                     
        Three Months Ended   Nine Months Ended
        September 30,   September 30,   September 30,   September 30,
    (Dollars in thousands, except per share amounts)     2024       2023       2024     2023  
    Interest income                
    Loans   $ 70,647     $ 32,738     $ 142,417   $ 92,685  
    Investment securities – taxable     9,005       4,459       18,588     13,244  
    Investment securities – tax-exempt     883       861       2,641     2,591  
    Short-term investments     2,452       633       5,272     1,349  
    Total interest income     82,987       38,691       168,918     109,869  
    Interest expense                
    Deposits     28,603       10,582       57,384     25,392  
    Securities sold under agreements to repurchase and federal funds purchased     96       31       148     84  
    FHLB advances and other borrowings     1,154       1,354       3,780     3,992  
    Subordinated notes and trust preferred debt     1,437       505       2,925     1,513  
    Total interest expense     31,290       12,472       64,237     30,981  
    Net interest income     51,697       26,219       104,681     78,888  
    Provision for credit losses     13,681       136       14,791     1,264  
    Net interest income after provision for credit losses     38,016       26,083       89,890     77,624  
    Noninterest income                
    Service charges     2,360       1,260       4,843     3,668  
    Interchange income     1,779       963       3,651     2,921  
    Swap fee income     505       255       1,079     451  
    Wealth management income     5,037       2,826       11,451     8,395  
    Mortgage banking activities     491       (142 )     1,318     448  
    Investment securities gains (losses)     271       2       254     (8 )
    Other income     1,943       761       3,592     3,286  
    Total noninterest income     12,386       5,925       26,188     19,161  
    Noninterest expenses                
    Salaries and employee benefits     27,190       12,885       54,137     38,135  
    Occupancy, furniture and equipment     4,333       2,460       9,677     7,059  
    Data processing     2,046       1,248       4,548     3,666  
    Advertising and bank promotions     537       332       1,709     1,656  
    FDIC insurance     862       477       1,722     1,500  
    Professional services     1,119       965       2,551     2,203  
    Taxes other than income     503       387       1,046     847  
    Intangible asset amortization     2,464       228       2,904     717  
    Merger-related expenses     16,977       —       18,784     —  
    Restructuring expenses     257       —       257     —  
    Other operating expenses     4,011       1,465       8,072     5,668  
    Total noninterest expenses     60,299       20,447       105,407     61,451  
    (Loss) income before income tax (benefit) expense     (9,897 )     11,561       10,671     35,334  
    Income tax (benefit) expense     (1,994 )     2,535       2,305     7,314  
    Net (loss) income   $ (7,903 )   $ 9,026     $ 8,366   $ 28,020  
    continued
                     
        Three Months Ended   Nine Months Ended
        September 30,   September 30,   September 30,   September 30,
          2024       2023       2024     2023  
    Share information:                
    Basic (loss) earnings per share   $ (0.41 )   $ 0.87     $ 0.63   $ 2.71  
    Diluted (loss) earnings per share   $ (0.41 )   $ 0.87     $ 0.62   $ 2.68  
    Dividends paid per share   $ 0.23     $ 0.20     $ 0.63   $ 0.60  
    Weighted average shares – basic     19,088       10,319       13,298     10,346  
    Weighted average shares – diluted     19,226       10,405       13,441     10,440  
    ANALYSIS OF NET INTEREST INCOME        
    Average Balances and Interest Rates, Taxable-Equivalent Basis (Unaudited)    
      Three Months Ended
      9/30/2024   6/30/2024   3/31/2024   12/31/2023   9/30/2023
          Taxable-   Taxable-       Taxable-   Taxable-       Taxable-   Taxable-       Taxable-   Taxable-       Taxable-   Taxable-
     (In Average   Equivalent   Equivalent   Average   Equivalent   Equivalent   Average   Equivalent   Equivalent   Average   Equivalent   Equivalent   Average   Equivalent   Equivalent
     thousands) Balance   Interest   Rate   Balance   Interest   Rate   Balance   Interest   Rate   Balance   Interest   Rate   Balance   Interest   Rate
    Assets                                                          
    Federal funds sold & interest-bearing bank balances $ 184,465   $ 2,452     5.29 %   $ 142,868   $ 1,864     5.25 %   $ 74,523   $ 956     5.16 %   $ 37,873   $ 460     4.82 %   $ 57,778   $ 633     4.35 %
    Investment securities (1)(2)   849,700     10,123     4.77       538,451     6,114     4.54       519,851     5,694     4.39       508,891     5,890     4.63       521,234     5,548     4.26  
    Loans (1)(3)(4)(5)   3,989,259     70,849     7.07       2,324,942     35,690     6.17       2,308,103     36,382     6.34       2,286,678     34,055     5.91       2,256,727     32,878     5.78  
    Total interest-earning assets   5,023,424     83,424     6.61       3,006,261     43,668     5.84       2,902,477     43,032     5.96       2,833,442     40,405     5.67       2,835,739     39,059     5.47  
    Other assets   491,719             204,863             196,295             204,382             200,447        
    Total assets $ 5,515,143           $ 3,211,124           $ 3,098,772           $ 3,037,824           $ 3,036,186        
    Liabilities and Shareholders’ Equity                                                
    Interest-bearing demand deposits $ 2,554,743     16,165     2.52     $ 1,649,753     10,118     2.47     $ 1,570,622     9,192     2.35     $ 1,543,575     8,333     2.14     $ 1,541,728     7,476     1.92  
    Savings deposits   283,337     148     0.21       165,467     140     0.34       170,005     144     0.34       178,351     153     0.34       190,817     164     0.34  
    Time deposits   1,014,628     12,290     4.82       481,721     5,007     4.18       428,443     4,180     3.92       392,085     3,632     3.67       357,194     2,942     3.27  
    Total interest-bearing deposits   3,852,708     28,603     2.95       2,296,941     15,265     2.67       2,169,070     13,516     2.51       2,114,011     12,118     2.27       2,089,739     10,582     2.01  
    Securities sold under agreements to repurchase and federal funds purchased   23,075     96     1.66       13,412     27     0.81       12,010     25     0.85       13,874     30     0.85       15,006     31     0.83  
    FHLB advances and other borrowings   115,388     1,154     3.98       115,000     1,152     4.03       137,505     1,474     4.31       127,843     1,358     4.21       128,131     1,354     4.19  
    Subordinated notes and trust preferred debt   68,399     1,437     8.36       32,118     734     9.19       32,100     754     9.45       32,083     504     6.29       32,066     505     6.29  
    Total interest-bearing liabilities   4,059,570     31,290     3.07       2,457,471     17,178     2.81       2,350,685     15,769     2.70       2,287,811     14,010     2.43       2,264,942     12,472     2.19  
    Noninterest-bearing demand deposits   807,886             423,037             417,469             441,695             468,628        
    Other liabilities   110,017             57,828             62,329             59,876             54,353        
    Total liabilities   4,977,473             2,938,336             2,830,483             2,789,382             2,787,923        
    Shareholders’ equity   537,670             272,788             268,289             248,442             248,263        
    Total $ 5,515,143           $ 3,211,124           $ 3,098,772           $ 3,037,824           $ 3,036,186        
    Taxable-equivalent net interest income / net interest spread       52,134     3.55 %         26,490     3.02 %         27,263     3.26 %         26,395     3.24 %         26,587     3.29 %
    Taxable-equivalent net interest margin         4.14 %           3.54 %           3.77 %           3.71 %           3.73 %
    Taxable-equivalent adjustment       (437 )             (387 )             (382 )             (377 )             (368 )    
    Net interest income     $ 51,697             $ 26,103             $ 26,881             $ 26,018             $ 26,219      
    Ratio of average interest-earning assets to average interest-bearing liabilities         124 %           122 %           123 %           124 %           125 %
                                                               
    NOTES:                                                          
    (1) Yields and interest income on tax-exempt assets have been computed on a taxable-equivalent basis assuming a 21% tax rate.
    (2) Average balance of investment securities is computed at fair value.
    (3) Average balances include nonaccrual loans.
    (4) Interest income on loans includes prepayment and late fees, where applicable.
    (5) Interest income on loans includes interest recovered of $1.6 million from the payoff of a commercial real estate loan on nonaccrual status in the three months ended March 31, 2024.
    ANALYSIS OF NET INTEREST INCOME        
    Average Balances and Interest Rates, Taxable-Equivalent Basis (Unaudited)    
    (continued)                      
      Nine Months Ended
      September 30, 2024   September 30, 2023
          Taxable-   Taxable-       Taxable-   Taxable-
      Average   Equivalent   Equivalent   Average   Equivalent   Equivalent
    (In thousands) Balance   Interest   Rate   Balance   Interest   Rate
    Assets                      
    Federal funds sold & interest-bearing bank balances $ 134,136   $ 5,272     5.25 %   $ 41,861   $ 1,349     4.31 %
    Investment securities (1)(2)   636,781     21,931     4.60       524,365     16,523     4.21  
    Loans (1)(3)(4)(5)   2,878,171     142,921     6.63       2,223,701     93,051     5.59  
    Total interest-earning assets   3,649,088     170,124     6.23       2,789,927     110,923     5.31  
    Other assets   298,334             196,694        
    Total assets $ 3,947,422           $ 2,986,621        
    Liabilities and Shareholders’ Equity                      
    Interest-bearing demand deposits $ 1,927,337     35,475     2.46     $ 1,519,013     18,611     1.64  
    Savings deposits   206,552     432     0.28       204,832     431     0.28  
    Time deposits   642,959     21,477     4.46       320,000     6,350     2.65  
    Total interest-bearing deposits   2,776,848     57,384     2.76       2,043,845     25,392     1.66  
    Securities sold under agreements to repurchase and federal funds purchased   16,191     148     1.22       14,190     84     0.79  
    FHLB advances and other borrowings   122,604     3,780     4.12       122,300     3,992     4.36  
    Subordinated notes and trust preferred debt   44,294     2,925     8.82       32,049     1,513     6.29  
    Total interest-bearing liabilities   2,959,937     64,237     2.90       2,212,384     30,981     1.87  
    Noninterest-bearing demand deposits   550,407             480,006        
    Other liabilities   76,846             52,618        
    Total liabilities   3,587,190             2,745,008        
    Shareholders’ equity   360,232             241,613        
    Total liabilities and shareholders’ equity $ 3,947,422           $ 2,986,621        
    Taxable-equivalent net interest income / net interest spread       105,887     3.33 %         79,942     3.44 %
    Taxable-equivalent net interest margin         3.88 %           3.83 %
    Taxable-equivalent adjustment       (1,206 )             (1,054 )    
    Net interest income     $ 104,681             $ 78,888      
    Ratio of average interest-earning assets to average interest-bearing liabilities         123 %           126 %
                           
    NOTES TO ANALYSIS OF NET INTEREST INCOME:                
    (1) Yields and interest income on tax-exempt assets have been computed on a taxable-equivalent basis assuming a 21% tax rate.
    (2) Average balance of investment securities is computed at fair value.
    (3) Average balances include nonaccrual loans.
    (4) Interest income on loans includes prepayment and late fees, where applicable.
    (5) Interest income on loans includes interest recovered of $1.6 million from the payoff of a commercial real estate loan on nonaccrual status for the nine months ended September 30, 2024.
     
    HISTORICAL TRENDS IN QUARTERLY FINANCIAL DATA (Unaudited)        
                       
    (In thousands) September 30,
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
      September 30,
    2023
    Profitability for the quarter:                  
    Net interest income $ 51,697     $ 26,103     $ 26,881     $ 26,018     $ 26,219  
    Provision for credit losses   13,681       812       298       418       136  
    Noninterest income   12,386       7,172       6,630       6,491       5,925  
    Noninterest expenses   60,299       22,639       22,469       22,392       20,447  
    (Loss) income before income taxes   (9,897 )     9,824       10,744       9,699       11,561  
    Income tax (benefit) expense   (1,994 )     2,086       2,213       2,056       2,535  
    Net (loss) income $ (7,903 )   $ 7,738     $ 8,531     $ 7,643     $ 9,026  
                       
    Financial ratios:                  
    Return on average assets (1) (0.57)%     0.97 %     1.11 %     1.00 %     1.18 %
    Return on average assets, adjusted (1)(2)(3)   1.55 %     1.09 %     1.19 %     1.13 %     1.18 %
    Return on average equity (1) (5.85)%     11.41 %     12.79 %     12.21 %     14.42 %
    Return on average equity, adjusted (1)(2)(3)   15.85 %     12.88 %     13.79 %     13.77 %     14.42 %
    Net interest margin (1)   4.14 %     3.54 %     3.77 %     3.71 %     3.73 %
    Efficiency ratio   94.1 %     68.0 %     67.0 %     68.9 %     63.6 %
    Efficiency ratio, adjusted (2)(3)   60.2 %     64.6 %     65.0 %     65.6 %     63.6 %
                       
    Per share information:                  
    (Loss) income per common share:                  
    Basic $ (0.41 )   $ 0.74     $ 0.82     $ 0.74     $ 0.87  
    Basic, adjusted (2)(3)   1.12       0.84       0.89       0.84       0.87  
    Diluted   (0.41 )     0.73       0.81       0.73       0.87  
    Diluted, adjusted (2)(3)   1.11       0.83       0.88       0.83       0.87  
    Book value   26.65       25.97       25.38       24.98       22.90  
    Tangible book value(3)   21.12       24.08       23.47       23.03       20.94  
    Cash dividends paid   0.23       0.20       0.20       0.20       0.20  
                       
    Average basic shares   19,088       10,393       10,349       10,321       10,319  
    Average diluted shares   19,226       10,553       10,482       10,419       10,405  
    (1) Annualized.
    (2) Ratio has been adjusted for non-recurring expenses for the three months ended September 30, 2024, June 30, 2024, March 31, 2024 and December 31, 2023.
    (3) Non-GAAP based financial measure. Please refer to Appendix A – Supplemental Reporting of Non-GAAP Measures and GAAP to Non-GAAP Reconciliations for a discussion of our use of non-GAAP based financial measures, including tables reconciling GAAP and non-GAAP financial measures appearing herein.
     
    HISTORICAL TRENDS IN QUARTERLY FINANCIAL DATA (Unaudited)        
    (continued)                  
    (In thousands) September 30,
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
      September 30,
    2023
    Noninterest income:                  
    Service charges $ 2,360   $ 1,283     $ 1,200     $ 1,198     $ 1,260  
    Interchange income   1,779     961       911       952       963  
    Swap fee income   505     375       199       588       255  
    Wealth management income   5,037     3,312       3,102       2,945       2,826  
    Mortgage banking activities   491     369       458       143       (142 )
    Other income   1,943     884       765       704       761  
    Investment securities gains (losses)   271     (12 )     (5 )     (39 )     2  
    Total noninterest income $ 12,386   $ 7,172     $ 6,630     $ 6,491     $ 5,925  
                       
    Noninterest expenses:                  
    Salaries and employee benefits $ 27,190   $ 13,195     $ 13,752     $ 12,848     $ 12,885  
    Occupancy, furniture and equipment   4,333     2,705       2,639       2,534       2,460  
    Data processing   2,046     1,237       1,265       1,247       1,248  
    Advertising and bank promotions   537     774       398       501       332  
    FDIC insurance   862     419       441       460       477  
    Professional services   1,119     801       631       702       965  
    Taxes other than income   503     49       494       203       387  
    Intangible asset amortization   2,464     215       225       236       228  
    Merger-related expenses   16,977     1,135       672       1,059       —  
    Restructuring expenses   257     —       —       —       —  
    Other operating expenses   4,011     2,109       1,952       2,602       1,465  
    Total noninterest expenses $ 60,299   $ 22,639     $ 22,469     $ 22,392     $ 20,447  
                       
     
    HISTORICAL TRENDS IN QUARTERLY FINANCIAL DATA (Unaudited)            
    (continued)                  
    (In thousands) September 30,
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
      September 30,
    2023
    Balance Sheet at quarter end:                  
    Cash and cash equivalents $ 236,780     $ 132,509     $ 182,722     $ 65,161     $ 94,939  
    Restricted investments in bank stocks   20,247       11,147       11,453       11,992       12,987  
    Securities available for sale   826,828       529,082       514,909       513,519       495,162  
    Loans held for sale, at fair value   3,561       1,562       535       5,816       6,448  
    Loans:                  
    Commercial real estate:                  
    Owner occupied   622,726       371,301       364,280       373,757       376,350  
    Non-owner occupied   1,164,501       710,477       707,871       694,638       630,514  
    Multi-family   276,296       151,542       147,773       150,675       143,437  
    Non-owner occupied residential   190,786       89,156       91,858       95,040       100,391  
    Commercial and industrial   601,469       374,976       365,524       367,085       374,190  
    Acquisition and development:                  
    1-4 family residential construction   56,383       32,439       22,277       24,516       25,642  
    Commercial and land development   262,317       129,883       118,010       115,249       153,279  
    Municipal   27,960       10,594       10,925       9,812       10,334  
    Total commercial loans   3,202,438       1,870,368       1,828,518       1,830,772       1,814,137  
    Residential mortgage:                  
    First lien   451,195       271,153       270,748       266,239       248,335  
    Home equity – term   6,508       4,633       4,966       5,078       5,223  
    Home equity – lines of credit   303,165       192,736       189,966       186,450       188,736  
    Installment and other loans   18,131       8,713       8,875       9,774       10,405  
    Total loans   3,981,437       2,347,603       2,303,073       2,298,313       2,266,836  
    Allowance for credit losses   (49,630 )     (29,864 )     (29,165 )     (28,702 )     (28,278 )
    Net loans held for investment   3,931,807       2,317,739       2,273,908       2,269,611       2,238,558  
    Goodwill   70,655       18,724       18,724       18,724       18,724  
    Other intangible assets, net   46,144       1,974       2,189       2,414       2,650  
    Total assets   5,470,589       3,198,782       3,183,331       3,064,240       3,054,435  
    Total deposits   4,650,853       2,702,884       2,695,951       2,558,814       2,546,435  
    FHLB advances and other borrowings and and Securities sold under agreements to repurchase   137,310       129,625       127,099       147,285       175,241  
    Subordinated notes and trust preferred debt   68,510       32,128       32,111       32,093       32,076  
    Total shareholders’ equity   516,206       278,376       271,682       265,056       243,080  
    HISTORICAL TRENDS IN QUARTERLY FINANCIAL DATA (Unaudited)            
    (continued)                  
      September 30,
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
      September 30,
    2023
    Capital and credit quality measures(1):                  
    Total risk-based capital:                  
    Orrstown Financial Services, Inc.   12.5 %     13.3 %     13.4 %     13.0 %     13.0 %
    Orrstown Bank   12.3 %     13.1 %     13.1 %     12.8 %     12.5 %
    Tier 1 risk-based capital:                  
    Orrstown Financial Services, Inc.   10.0 %     11.1 %     11.2 %     10.8 %     10.6 %
    Orrstown Bank   11.1 %     12.0 %     11.9 %     11.6 %     11.4 %
    Tier 1 common equity risk-based capital:                  
    Orrstown Financial Services, Inc.   9.8 %     11.1 %     11.2 %     10.8 %     10.6 %
    Orrstown Bank   11.1 %     12.0 %     11.9 %     11.6 %     11.4 %
    Tier 1 leverage capital:                  
    Orrstown Financial Services, Inc.   8.0 %     8.9 %     9.0 %     8.9 %     8.7 %
    Orrstown Bank   8.8 %     9.5 %     9.6 %     9.5 %     9.3 %
                       
    Average equity to average assets   9.75 %     8.50 %     8.66 %     8.18 %     8.18 %
    Allowance for credit losses to total loans   1.25 %     1.27 %     1.27 %     1.25 %     1.25 %
    Total nonaccrual loans to total loans   0.68 %     0.36 %     0.56 %     1.11 %     0.98 %
    Nonperforming assets to total assets   0.49 %     0.26 %     0.40 %     0.83 %     0.73 %
    Allowance for credit losses to nonaccrual loans   184 %     357 %     226 %     112 %     127 %
                       
    Other information:                  
    Net charge-offs (recoveries) $ 269     $ 113     $ (42 )   $ (6 )   $ 241  
    Classified loans   105,465       48,722       48,997       55,030       33,593  
    Nonperforming and other risk assets:                  
    Nonaccrual loans   26,927       8,363       12,886       25,527       22,324  
    Other real estate owned   138       —       —       —       —  
    Total nonperforming assets   27,065       8,363       12,886       25,527       22,324  
    Financial difficulty modifications still accruing   9,497       —       —       9       —  
    Loans past due 90 days or more and still accruing   337       187       99       66       277  
    Total nonperforming and other risk assets $ 36,899     $ 8,550     $ 12,985     $ 25,602     $ 22,601  
    (1) Capital ratios are estimated for the current period, subject to regulatory filings. The Company elected the three-year phase in option for the day-one impact of ASU 2016-13 for current expected credit losses (“CECL”) to regulatory capital. Beginning in 2023, the Company adjusted retained earnings, allowance for credit losses includable in tier 2 capital and the deferred tax assets from temporary differences in risk weighted assets by the permitted percentage of the day-one impact from adopting the new CECL standard.

    Appendix A- Supplemental Reporting of Non-GAAP Measures and GAAP to Non-GAAP Reconciliations

    Management believes providing certain other “non-GAAP” financial information will assist investors in their understanding of the effect on recent financial results from non-recurring charges.

    As a result of acquisitions, the Company has intangible assets consisting of goodwill, core deposit and other intangible assets, which totaled $116.8 million and $21.1 million at September 30, 2024 and December 31, 2023, respectively. In addition, during the three months ended September 30, 2024, June 30, 2024, March 31, 2024 and December 31, 2023, the Company incurred $17.0 million, $1.1 million, $0.7 million and $1.1 million in merger-related expenses, respectively. During the three months ended September 30, 2024, the Company incurred other non-recurring charges totaling $20.2 million.

    Tangible book value per common share and the impact of the non-recurring expenses on net income and associated ratios, as used by the Company in this earnings release, are determined by methods other than in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). While we believe this information is a useful supplement to GAAP based measures presented in this earnings release, readers are cautioned that this non-GAAP disclosure has limitations as an analytical tool, should not be viewed as a substitute for financial measures determined in accordance with GAAP, and should not be considered in isolation or as a substitute for analysis of our results and financial condition as reported under GAAP, nor are such measures necessarily comparable to non-GAAP performance measures that may be presented by other companies. This supplemental presentation should not be construed as an inference that our future results will be unaffected by similar adjustments to be determined in accordance with GAAP.

    The following tables present the computation of each non-GAAP based measure:

    (In thousands)

    Tangible Book Value per Common Share   September 30,
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
      September 30,
    2023
    Shareholders’ equity (most directly comparable GAAP-based measure)   $ 516,206     $ 278,376     $ 271,682     $ 265,056     $ 243,080  
    Less: Goodwill     70,655       18,724       18,724       18,724       18,724  
    Other intangible assets     46,144       1,974       2,189       2,414       2,650  
    Related tax effect     (9,690 )     (415 )     (460 )     (507 )     (557 )
    Tangible common equity (non-GAAP)   $ 409,097     $ 258,093     $ 251,229     $ 244,425     $ 222,263  
                         
    Common shares outstanding     19,373       10,720       10,705       10,612       10,613  
                         
    Book value per share (most directly comparable GAAP-based measure)   $ 26.65     $ 25.97     $ 25.38     $ 24.98     $ 22.90  
    Intangible assets per share     5.53       1.89       1.91       1.95       1.96  
    Tangible book value per share (non-GAAP)   $ 21.12     $ 24.08     $ 23.47     $ 23.03     $ 20.94  
                         
    (In thousands) Three Months Ended   Nine Months Ended
    Adjusted Ratios for Non-recurring Charges September 30,
    2024
      June 30, 2024   March 31,
    2024
      December 31,
    2023
      September 30,
    2023
      September 30,
    2024
      September 30,
    2023
    Net (loss) income (A) – most directly comparable GAAP-based measure $ (7,903 )   $ 7,738     $ 8,531     $ 8,531     $ 9,026     $ 8,366     $ 28,020  
    Plus: Merger-related expenses (B)   16,977       1,135       672       672       —       18,784       —  
    Plus: Executive retirement expenses (B)   4,758       —       —       —       —       4,758       —  
    Plus: Provision for credit losses on non-PCD loans (B)   15,504       —       —       —       —       15,504       —  
    Less: Related tax effect (C)   (7,915 )     (139 )     (1 )     (1 )     —       (8,056 )     —  
    Adjusted net (loss) income (D=A+B-C) – Non-GAAP $ 21,421     $ 8,734     $ 9,202     $ 9,202     $ 9,026     $ 39,356     $ 28,020  
                               
    Average assets (E) $ 5,515,143     $ 3,211,124     $ 3,098,772     $ 3,098,772     $ 3,036,186     $ 3,947,422     $ 2,986,621  
    Return on average assets (= A / E) – most directly comparable GAAP-based measure (1) (0.57)%     0.97 %     1.11 %     1.11 %     1.18 %     0.28 %     1.25 %
    Return on average assets, adjusted (= D / E) – Non-GAAP (1)   1.55 %     1.09 %     1.19 %     1.19 %     1.18 %     1.33 %     1.25 %
                               
    Average equity (F) $ 537,670     $ 272,788     $ 268,289     $ 268,289     $ 248,263     $ 360,232     $ 241,613  
    Return on average equity (= A / F) – most directly comparable GAAP-based measure (1) (5.85)%     11.41 %     12.79 %     12.79 %     14.42 %     3.10 %     15.51 %
    Return on average equity, adjusted (= D / F) – Non-GAAP (1)   15.85 %     12.88 %     13.79 %     13.79 %     14.42 %     14.59 %     15.51 %
                               
    Weighted average shares – basic (G) – most directly comparable GAAP-based measure   19,088       10,393       10,349       10,349       10,319       13,298       10,346  
    Basic (loss) earnings per share (= A / G) – most directly comparable GAAP-based measure $ (0.41 )   $ 0.74     $ 0.82     $ 0.82     $ 0.87     $ 0.63     $ 2.71  
    Basic earnings per share, adjusted (= D / G) – Non-GAAP $ 1.12     $ 0.84     $ 0.89     $ 0.89     $ 0.87     $ 2.96     $ 2.71  
                               
    Weighted average shares – diluted (H) – most directly comparable GAAP-based measure   19,226       10,553       10,482       10,482       10,405       13,441       10,440  
    Diluted (loss) earnings per share (= A / H) – most directly comparable GAAP-based measure $ (0.41 )   $ 0.73     $ 0.81     $ 0.81     $ 0.87     $ 0.62     $ 2.68  
    Diluted earnings per share, adjusted (= D / H) – Non-GAAP $ 1.11     $ 0.83     $ 0.88     $ 0.88     $ 0.87     $ 2.93     $ 2.68  
                               
    continued
    (1) Annualized                          
      Three Months Ended   Nine Months Ended
      September 30,
    2024
      June 30, 2024   March 31,
    2024
      December 31,
    2023
      September 30,
    2023
      September 30,
    2024
      September 30,
    2023
    Noninterest expense (I) – most directly comparable GAAP-based measure $ 60,299     $ 22,639     $ 22,469     $ 22,469     $ 20,447     $ 105,407     $ 61,451  
    Less: Merger-related expenses (B)   (16,977 )     (1,135 )     (672 )     (672 )     —       (18,784 )     —  
    Less: Executive retirement expenses (B)   (4,758 )     —       —       —       —       (4,758 )     —  
    Adjusted noninterest expense (J = I – B) – Non-GAAP $ 38,564     $ 21,504     $ 21,797     $ 21,797     $ 20,447     $ 81,865     $ 61,451  
                               
    Net interest income (K) $ 51,697     $ 26,103     $ 26,881     $ 26,881     $ 26,219     $ 104,681     $ 78,888  
    Noninterest income (L)   12,386       7,172       6,630       6,630       5,925       26,188       19,161  
    Total operating income (M = K + L) $ 64,083     $ 33,275     $ 33,511     $ 33,511     $ 32,144     $ 130,869     $ 98,049  
                               
    Efficiency ratio (= I / M) – most directly comparable GAAP-based measure   94.1 %     68.0 %     67.0 %     67.0 %     63.6 %     80.5 %     62.7 %
    Efficiency ratio, adjusted (= J / M) – Non-GAAP   60.2 %     64.6 %     65.0 %     65.0 %     63.6 %     62.6 %     62.7 %
                               
                               
                               
    (1) Annualized                          

    Appendix B- Investment Portfolio Concentrations

    The following table summarizes the credit ratings and collateral associated with the Company’s investment security portfolio, excluding equity securities, at September 30, 2024:

    (In thousands)

    Sector Portfolio Mix   Amortized Book   Fair Value   Credit Enhancement   AAA   AA   A   BBB   NR   Collateral / Guarantee Type
    Unsecured ABS — %   $ 3,199   $ 2,975   27 %   — %   — %   — %   — %   100 %   Unsecured Consumer Debt
    Student Loan ABS 1       4,348     4,283   27     —     —     —     —     100     Seasoned Student Loans
    Federal Family Education Loan ABS 10       83,199     82,962   11     7     80     —     13     —     Federal Family Education Loan (1)
    PACE Loan ABS —       2,034     1,813   7     100     —     —     —     —     PACE Loans (2)
    Non-Agency CMBS 2       13,750     14,045   26     —     —     —     —     100      
    Non-Agency RMBS 2       16,749     14,212   16     100     —     —     —     —     Reverse Mortgages (3)
    Municipal – General Obligation 12       99,779     93,395       11     82     7     —     —      
    Municipal – Revenue 14       121,130     112,705       —     82     12     —     6      
    SBA ReRemic (5) —       2,427     2,409       —     100     —     —     —     SBA Guarantee (4)
    Small Business Administration 1       6,632     7,042       —     100     —     —     —     SBA Guarantee (4)
    Agency MBS 18       154,058     154,762       —     100     —     —     —     Residential Mortgages (4)
    Agency CMO 38       316,385     315,677       —     100     —     —     —      
    U.S. Treasury securities 2       20,047     18,373       —     100     —     —     —     U.S. Government Guarantee (4)
    Corporate bonds —       1,932     1,975       —     —     52     48     —      
      100 %   $ 845,669   $ 826,628       4 %   89 %   3 %   1 %   3 %    
                                           
    (1) 97% guaranteed by U.S. government
    (2) PACE acronym represents Property Assessed Clean Energy loans
    (3) Non-agency reverse mortgages with current structural credit enhancements
    (4) Guaranteed by U.S. government or U.S. government agencies
    (5) SBA ReRemic acronym represents Re-Securitization of Real Estate Mortgage Investment Conduits
                                           
    Note: Ratings in table are the lowest of the six rating agencies (Standard & Poor’s, Moody’s, Fitch, Morningstar, DBRS and Kroll Bond Rating Agency). Standard & Poor’s rates U.S. government obligations at AA+.

    About the Company

    With $5.5 billion in assets, Orrstown Financial Services, Inc. and its wholly-owned subsidiary, Orrstown Bank, provide a wide range of consumer and business financial services in Berks, Cumberland, Dauphin, Franklin, Lancaster, Perry, and York Counties, Pennsylvania and Anne Arundel, Baltimore, Harford, Howard, and Washington Counties, Maryland, as well as Baltimore City, Maryland. The Company’s lending area also includes adjacent counties in Pennsylvania and Maryland, as well as Loudon County, Virginia and Berkeley, Jefferson and Morgan Counties, West Virginia. Orrstown Bank is an Equal Housing Lender and its deposits are insured up to the legal maximum by the FDIC. Orrstown Financial Services, Inc.’s common stock is traded on Nasdaq (ORRF). For more information about Orrstown Financial Services, Inc. and Orrstown Bank, visit http://www.orrstown.com.

    Cautionary Note Regarding Forward-Looking Statements

    This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. Forward-looking statements reflect the current views of the Company’s management with respect to, among other things, future events and the Company’s financial performance. These statements are often, but not always, made through the use of words or phrases such as “may,” “should,” “could,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “project,” “forecast,” “goal,” “target,” “would” and “outlook,” or the negative variations of those words or other comparable words of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates, predictions or projections about events or the Company’s industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond the Company’s control. Accordingly, the Company cautions you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements and there can be no assurances that the Company will achieve the desired level of new business development and new loans, growth in the balance sheet and fee-based revenue lines of business, cost savings initiatives and continued reductions in risk assets or mitigation of losses in the future. Factors which could cause the actual results of the Company’s operations to differ materially from expectations include, but are not limited to: general economic conditions (including inflation and concerns about liquidity) on a national basis or in the local markets in which the Company operates; ineffectiveness of the Company’s strategic growth plan due to changes in current or future market conditions; changes in interest rates; the diversion of management’s attention from ongoing business operations and opportunities; the effects of competition and how it may impact our community banking model, including industry consolidation and development of competing financial products and services; changes in consumer behavior due to changing political, business and economic conditions, or legislative or regulatory initiatives; changes in laws and regulations; changes in credit quality; inability to raise capital, if necessary, under favorable conditions; volatility in the securities markets; the demand for our products and services; deteriorating economic conditions; geopolitical tensions; operational risks including, but not limited to, cybersecurity incidents, fraud, natural disasters and future pandemics; expenses associated with litigation and legal proceedings; the possibility that the anticipated benefits of the merger with Codorus (the “Merger”) are not realized when expected or at all; the possibility that the Merger may be more expensive to complete than anticipated; the possibility that revenues following the Merger may be lower than expected; potential adverse reactions or changes to business or employee relationships, including those resulting from the completion of the Merger; the ability to complete the integration of the two companies successfully; the dilution caused by the Company’s issuance of additional shares of its capital stock in connection with the Merger; and other risks and uncertainties, including those detailed in our Annual Report on Form 10-K for the year ended December 31, 2023 under the sections titled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and in subsequent filings made with the Securities and Exchange Commission.

    The foregoing list of factors is not exhaustive. If one or more events related to these or other risks or uncertainties materializes, or if the Company’s underlying assumptions prove to be incorrect, actual results may differ materially from what the Company anticipates. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and the Company disclaims any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. New risks and uncertainties arise from time to time, and it is not possible for the Company to predict those events or how they may affect it. In addition, the Company cannot assess the impact of each factor on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. All forward-looking statements, expressed or implied, included in this press release are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that the Company or persons acting on the Company’s behalf may issue.

    The review period for subsequent events extends up to and includes the filing date of a public company’s financial statements, when filed with the Securities and Exchange Commission. Accordingly, the consolidated financial information presented in this announcement is subject to change. Annualized, pro forma, projected and estimated numbers in this document are used for illustrative purposes only and are not forecasts and may not reflect actual results.

    The MIL Network –

    January 24, 2025
  • MIL-OSI Economics: Verizon updates broadband strategy to bring more choice, flexibility and value to millions

    Source: Verizon

    Headline: Verizon updates broadband strategy to bring more choice, flexibility and value to millions

    Key Takeaways:  

    • Verizon reaches fixed wireless access subscriber target 15 months ahead of schedule
    • Customer demand for broadband solutions accelerates fixed wireless and fiber rollout
    • Fixed wireless subscribers on path to double to 8-9 million by 2028
    • Fiber network expected to expand to 35-40 million passings over time

    NEW YORK, N.Y. – Verizon Communications Inc. (NYSE, Nasdaq: VZ) today announced an update to its broadband strategy, with new fixed wireless subscriber goals, household targets and broadband offerings to accelerate its premium broadband and mobility services to millions more customers nationwide. Verizon has more than 11.9 million total broadband connections as of the end of third-quarter 2024, up nearly 16 percent year over year. The update was given today at a sell side analyst event following the release of the company’s third-quarter 2024 results.

    “This is a game changing moment for Verizon and for connectivity across the country,” said Hans Vestberg, Verizon Chairman and CEO. “Our ambitious targets for fixed wireless access, combined with our fiber expansion including the planned Frontier acquisition, will bring unmatched broadband coverage to millions more homes and businesses nationwide. We are creating an integrated connectivity experience that gives customers freedom in how they connect and use our services. This is about delivering the network of the future, and setting a new bar for the entire industry.”

    Fixed Wireless subscribers on path to double by 2028

    • At the end of third-quarter 2024, the company had nearly 4.2 million fixed wireless subscribers, representing an increase of nearly 57 percent year over year. The company hit its previous goal of 4-5 million subscribers 15 months earlier than expected due to the demand from consumer and business customers as they continue to trust the reliability of the product and speed and ease of deployment.
    • Verizon is expecting 8-9 million fixed wireless subscribers, doubling its current base, by 2028 and accelerating coverage to 90 million households in the same time period. 
    • Verizon will commercially launch its advanced mmWave solution for apartment and office buildings to address high population areas. The technology leverages existing infrastructure making it less expensive to build and faster to deploy. Continued deployment of C-band and mmWave will provide the performance and capacity needed to meet these goals and deliver the best-in-class experience that customers expect from Verizon. 

    Fiber network expected to grow to 35-40 million passings

    • Verizon will continue to look for opportunities to accelerate its ongoing Fios builds within the current footprint in nine states and Washington, D.C., giving more customers access to the industry-leading product. Verizon’s recent agreement to acquire Frontier, the largest pure-play fiber internet provider in the U.S., is expected to expand Verizon’s share of the nationwide broadband market, building upon Verizon’s two decades of leadership at the forefront of fiber.
    • Upon closing, Frontier is expected to bring in approximately 9-10 million fiber passings. 
    • In 2025 Verizon is targeting an expansion of Fios builds to up to 650,000 passings annually. Following the closing of the Frontier acquisition, Verizon expects the combined build to be up to 1 million or more passings annually. 
    • Verizon is expecting more than 30 million fiber passings in the combined Verizon/Frontier footprint by 2028. Over time, Verizon is expecting 35-40 million fiber passings. This will significantly expand Verizon’s fiber footprint, accelerating the company’s delivery of premium mobility and broadband services to current and new customers.
    • Frontier’s consumer fiber network can be immediately and seamlessly integrated upon closing directly into Verizon’s award-winning Fios network, meeting existing Fios standards.

    Outlook and Guidance: Priorities remain unchanged 

    • The company will maintain its capital allocation priorities, characterized by prudent investment in the business, a commitment to maintaining an industry-leading dividend, continued debt reduction, and efficient return of cash to shareholders, with buybacks to be considered when net unsecured debt to adjusted EBITDA ratio* is at 2.25x.  
    • For 2025, the company expects capital expenditures of $17.5-$18.5 billion, consistent with historical levels of capital intensity.
    • Revised net unsecured debt to adjusted EBITDA ratio* target of 2.0 to 2.25x. 

    *Non-GAAP financial measure. See http://www.verizon.com/about/investors for additional information about non-GAAP financial measures.


    Forward-Looking Statements 

    In this communication we have made forward-looking statements. These statements are based on our estimates and assumptions and are subject to risks and uncertainties. Forward-looking statements include the information concerning our possible or assumed future results of operations. Forward-looking statements also include those preceded or followed by the words “anticipates,” “assumes,” “believes,” “estimates,” “expects,” “forecasts,” “hopes,” “intends,” “plans,” “targets” or similar expressions. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements, except as required by law. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. The following important factors, along with those discussed in our filings with the Securities and Exchange Commission (the “SEC”), could affect future results and could cause those results to differ materially from those expressed in the forward-looking statements: the effects of competition in the markets in which we operate, including the inability to successfully respond to competitive factors such as prices, promotional incentives and evolving consumer preferences; failure to take advantage of, or respond to competitors’ use of, developments in technology and address changes in consumer demand; performance issues or delays in the deployment of our 5G network resulting in significant costs or a reduction in the anticipated benefits of the enhancement to our networks; the inability to implement our business strategy; adverse conditions in the U.S. and international economies, including inflation and changing interest rates in the markets in which we operate; cyber attacks impacting our networks or systems and any resulting financial or reputational impact; damage to our infrastructure or disruption of our operations from natural disasters, extreme weather conditions, acts of war, terrorist attacks or other hostile acts and any resulting financial or reputational impact; disruption of our key suppliers’ or vendors’ provisioning of products or services, including as a result of geopolitical factors or the potential impacts of global climate change; material adverse changes in labor matters and any resulting financial or operational impact; damage to our reputation or brands; the impact of public health crises on our operations, our employees and the ways in which our customers use our networks and other products and services; changes in the regulatory environment in which we operate, including any increase in restrictions on our ability to operate our networks or businesses; allegations regarding the release of hazardous materials or pollutants into the environment from our, or our predecessors’, network assets and any related government investigations, regulatory developments, litigation, penalties and other liability, remediation and compliance costs, operational impacts or reputational damage; our high level of indebtedness; significant litigation and any resulting material expenses incurred in defending against lawsuits or paying awards or settlements; an adverse change in the ratings afforded our debt securities by nationally accredited ratings organizations or adverse conditions in the credit markets affecting the cost, including interest rates, and/or availability of further financing; significant increases in benefit plan costs or lower investment returns on plan assets; changes in tax laws or regulations, or in their interpretation, or challenges to our tax positions, resulting in additional tax expense or liabilities; changes in accounting assumptions that regulatory agencies, including the SEC, may require or that result from changes in the accounting rules or their application, which could result in an impact on earnings; and risks associated with mergers, acquisitions and other strategic transactions, including our ability to consummate the proposed acquisition of Frontier Communications Parent, Inc. and obtain cost savings, synergies and other anticipated benefits within the expected time period or at all.

    MIL OSI Economics –

    January 24, 2025
  • MIL-OSI Economics: WTO regional trade policy course underway in Saudi Arabia

    Source: World Trade Organization

    Throughout the course, experts from the WTO Secretariat, regional institutions and King Saud University will share their expertise on tariff schedules, agriculture, trade remedies, services, intellectual property rights, e-commerce and fisheries subsidies, among other topics. The course will provide an opportunity for increased collaboration and knowledge-sharing.

    Commending Saudi Arabia’s active participation in the WTO, WTO Director-General Ngozi Okonjo-Iweala told participants in a video message: “These regional trade policy courses were set up over 20 years ago to address the realities and interests of member economies across various regions. … We hope that it will also serve as a platform for you to discuss ways to strengthen, reform, and modernize the multilateral trading system – a crucial conversation that your respective representatives are actively pursuing in Geneva, as they work to ensure the organization is fit for purpose in the face of emerging challenges.”

    DG Okonjo-Iweala also encouraged all WTO members to ratify the Agreement on Fisheries Subsidies promptly, highlighting its significance for the sustainability of ocean resources.

    In his opening address, the President of King Saud University Dr Abdullah Alsalman emphasized how the WTO – as a forum for international cooperation – aligns with “Saudi Vision 2030“, under which the government is implementing initiatives to diversify the country’s economy: “Our effort to host this WTO initiative is part of our university’s contribution to achieving the goals of “Saudi Vision 2030”. More than ever, this vision seeks to strengthen the nation’s cooperation with the WTO and boost international trade. Saudi Arabia is both a benefactor and a beneficiary of a prosperous and regulated global economy.”

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    MIL OSI Economics –

    January 24, 2025
  • MIL-OSI Economics: Small business group advances work programme, focuses on business support organizations

    Source: World Trade Organization

    Thematic discussions: Business support organizations

    The meeting shed light on the work of business support organizations, such as the Enterprise Europe Network (EEN) and the International Trade Centre, in connecting small businesses with partners to help them export to international markets and utilise opportunities provided by free trade agreements.

    It was noted that business support organizations play an important role in facilitating the information flow between the public and private sectors, particularly small business, in addition to gathering feedback and providing advisory services to MSMEs to help them access financing opportunities.

    The session was in response to a proposal by the United States (INF/MSME/W/51), which suggested exploring how small businesses are linked to the mechanisms that shape trade policy through local chambers of commerce, trade associations, and/or other local business support organizations.

    Success stories

    As part of its efforts to strengthen engagement with the private sector, the Group invited Mr Aziz Ndiaye, Founder and Owner of ANEP Company, a small business headquartered in Switzerland, to present his enterprise. ANEP Company specializes in the import and export of exotic fruits and vegetables from Senegal, Côte d’Ivoire, Burkina Faso, Togo and  Benin and seeks to deliver positive social impact for the communities benefiting from these trade opportunities.  

    The two winners of the Small Business Champions initiative (CLAC – Coordinadora Latino americana de Comercio Justo and O’KANATA) presented their winning projects to the Group. Their projects are aimed at helping indigenous people trade internationally through needs assessment surveys, technical assistance and online platforms.

    Dr Ayman El Tarabishy, President and CEO of the International Council for Small Business (ICSB), spoke to the Group about the ICSB’s efforts to advance small business research and good practice.

    Future work

    The Group’s next meeting on 10 December will focus on good regulatory practices for MSMEs and trade digitalization in response to a proposal put forward by the United Kingdom (INF/MSME/W/52).

    The UK will explain how MSMEs’ interests are considered in regulatory development, referencing Annex 4 of the December 2020 MSME package. The UK will also discuss various processes and tools used in domestic regulatory procedures that may benefit MSMEs. Various speakers will be invited to talk about the importance of trade digitalization for small businesses and how trade digitalization efforts can be accelerated.

    Work is underway to build on the compendium of special provisions on the integration of MSMEs into Authorised Economic Operators programmes published earlier this year. A joint study by the World Customs Organization and the International Chamber of Commerce is being prepared on this issue, using a recent survey as a basis for the report.

    New proposal

    The Russian Federation presented a proposal (INF/MSME/W/58 – INF/TGE/COM/10) to have a compendium of educational programmes aimed at empowering women entrepreneurs in finance and marketing. The compendium’s objective is to help women-owned businesses participate in international trade and assist governments in drafting supporting policies.

    Updates

    Members shared updates on their implementation of the December 2020 MSME package of recommendations aimed at helping small businesses trade globally. China reported on its ninth Trade Policy Review (TPR), where measures taken to integrate small and medium-sized enterprises (SMEs) in its policies were included in its report. Such measures include the provision of policy support documents, tax extensions and the establishment of funds.  

    China also highlighted its efforts to create a business-friendly environment, such as addressing financing challenges and supporting research and development.

    The ITC provided updates on the Global Trade Helpdesk, an online platform intended to bring together trade and business information for companies, especially MSMEs. The ITC noted an increase in the usage of the platform in the United States, India, China and Indonesia, and highlighted recent events including the launch of Bahasa and Chinese versions of the HelpDesk.

    MSME-related discussions in the Technical Barriers to Trade Committee and Government Procurement Committee were also shared with the Group. This included a new good practice guide on how to comment on members’ notifications, focusing on the ability of the private sector to provide feedback and track such notifications and on the adoption of a best practice report on measures facilitating the participation of SMEs in government procurement.

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    MIL OSI Economics –

    January 24, 2025
  • MIL-OSI Economics: Verizon delivers strong third quarter results with customer growth in mobility, extending industry leadership

    Source: Verizon

    Headline: Verizon delivers strong third quarter results with customer growth in mobility, extending industry leadership

    Download News Release PDF

    Download Infographic PDF

    Download 3Q Financials PDF

    Download Non-GAAP Reconciliations PDF

    3Q 2024 Highlights 

    Wireless: More than doubled wireless postpaid phone net additions year over year

    • Total wireless service revenue1 of $19.8 billion, a 2.7 percent increase year over year.
    • Retail postpaid phone net additions of 239,000, and retail postpaid net additions of 349,000. 
    • Retail postpaid phone churn of 0.89 percent, and retail postpaid churn of 1.16 percent.

    Broadband: Achieved fixed wireless subscriber target 15 months ahead of schedule

    • Total broadband net additions of 389,000. This was the ninth consecutive quarter with more than 375,000 broadband net additions.
    • Total fixed wireless net additions of 363,000. At the end of third-quarter 2024, the company had a base of nearly 4.2 million fixed wireless subscribers. The company reached its fixed wireless subscriber target 15 months ahead of schedule, which is a reflection of the product’s popularity and customer demand for high quality broadband services.
    • Total broadband connections grew to more than 11.9 million as of the end of third-quarter 2024, representing a nearly 16 percent increase year over year. 
    • Fixed wireless revenue for third-quarter 2024 was $562 million, up $215 million year over year. 

    Consolidated: Sustained focus on profitable growth

    • Total operating revenue of $33.3 billion, essentially flat compared to third-quarter 2023. 
    • Consolidated net income for the third quarter of $3.4 billion, down from consolidated net income of $4.9 billion in third-quarter 2023. This decrease was primarily driven by severance charges of $1.7 billion related to separations under the company’s voluntary separation program for select U.S.-based management employees as well as other headcount reduction initiatives. Consolidated adjusted EBITDA2 for the third quarter of $12.5 billion, up from $12.2 billion in third-quarter 2023.
    • Earnings per share of $0.78, compared with earnings per share of $1.13 in third-quarter 2023; adjusted EPS2, excluding special items, of $1.19, compared with $1.22 in third-quarter 2023.

    NEW YORK – Verizon Communications Inc. (NYSE, Nasdaq: VZ) reported third-quarter 2024 results today with customer growth in mobility and broadband. The company also continued its momentum in its three financial priorities of wireless service revenue, consolidated adjusted EBITDA and free cash flow.

    “This has been a pivotal quarter for Verizon, with transformative strategic moves and continued operational excellence. We continue to deliver strong results in mobility and broadband, and we are on track to meet our full-year 2024 financial guidance, with wireless service revenue and adjusted EBITDA trending at or above the midpoint of the guided range,” said Verizon Chairman and CEO Hans Vestberg. “Our new products — myPlan, myHome and Verizon Business Complete — and our brand refresh are resonating with customers. Through our pending acquisition of Frontier Communications, and our agreement for Vertical Bridge to lease, operate and manage thousands of wireless communications towers, we have set Verizon up for disciplined growth, now and into the future.”   

    For third-quarter 2024, Verizon reported earnings per share of $0.78, compared with earnings per share of $1.13 in third-quarter 2023. On an adjusted basis2, excluding special items, EPS was $1.19 in third-quarter 2024, compared with adjusted EPS2 of $1.22 in third-quarter 2023. 

    Reported third-quarter 2024 financial results reflected $2.3 billion in charges related to special items. This included a severance charge of $1.7 billion related to separations under the company’s voluntary separation program for select U.S.-based management employees as well as other headcount reduction initiatives; an asset and business rationalization charge of $374 million predominantly related to the decision to cease use of certain real estate assets and exit non-strategic portions of certain businesses; and amortization of intangible assets of $186 million related to Tracfone and other acquisitions. 

    Consolidated results: Financially disciplined, consistent with overall strategy 

    • Total consolidated operating revenue in third-quarter 2024 was $33.3 billion, essentially flat compared to third-quarter 2023, as service and other revenue growth was offset by declines in wireless equipment revenue.
    • Total wireless service revenue1 in third-quarter 2024 was $19.8 billion, a sequential increase of $70 million, and an increase of 2.7 percent year over year. This increase was primarily driven by pricing actions implemented in recent quarters and growth from fixed wireless connections.
    • Cash flow from operations year-to-date3 totaled $26.5 billion, compared with $28.8 billion in 2023. This result reflects higher cash taxes, as well as higher interest expense primarily driven by the decrease in capitalized interest and higher interest rates.
    • Capital expenditures year-to-date3 were $12.0 billion. 
    • Free cash flow2 year-to-date3 was $14.5 billion, compared with $14.6 billion in 2023.
    • Consolidated net income for third-quarter 2024 was $3.4 billion, down from consolidated net income of $4.9 billion in third-quarter 2023, and consolidated adjusted EBITDA2 was $12.5 billion, up from $12.2 billion in third-quarter 2023.
    • Verizon’s total unsecured debt as of the end of third-quarter 2024 was $126.4 billion, a $1.1 billion increase compared to second-quarter 2024, and approximately $70 million lower year over year. The company’s net unsecured debt2 at the end of third-quarter 2024 was $121.4 billion. At the end of third-quarter 2024, Verizon’s ratio of unsecured debt to net income (LTM) was 12.3 times and net unsecured debt to consolidated adjusted EBITDA ratio2 was 2.5 times.

    Verizon Consumer: Seventh consecutive quarter of year over year growth in postpaid phone gross additions

    • Total Verizon Consumer revenue in third-quarter 2024 was $25.4 billion, an increase of 0.4 percent year over year as gains in service revenue were partially offset by declines in wireless equipment revenue.
    • Wireless service revenue in third-quarter 2024 was $16.4 billion, up 2.6 percent year over year, driven by growth in Consumer wireless postpaid average revenue per account (ARPA) from pricing actions and continued fixed wireless adoption. 
    • Consumer wireless retail postpaid churn was 1.07 percent in third-quarter 2024, and wireless retail postpaid phone churn was 0.84 percent. 
    • In third-quarter 2024, Consumer reported 81,000 wireless retail postpaid phone net additions, compared with 51,000 net losses in third-quarter 2023. This improvement was driven by a 5.9 percent year over year increase in postpaid phone gross additions. This marks the seventh consecutive quarter of year over year growth in postpaid phone gross additions. Excluding the contribution from the company’s second number offering, Consumer reported 18,000 wireless retail postpaid phone net additions. Verizon expects to have positive Consumer postpaid phone net additions for full-year 2024, with and without the contribution from the second number offering. 
    • In third-quarter 2024, Consumer reported 80,000 wireless retail prepaid net additions, excluding Safelink, Verizon’s brand offering access to government-sponsored connectivity benefits and programs. 
    • Consumer reported 209,000 fixed wireless net additions and 39,000 Fios Internet net additions in third-quarter 2024. Consumer Fios revenue was $2.9 billion in third-quarter 2024. 
    • In third-quarter 2024, Consumer operating income was $7.6 billion, an increase of 0.8 percent year over year, and segment operating income margin was 30.0 percent, an increase from 29.9 percent in third-quarter 2023. Segment EBITDA2 in third-quarter 2024 was $11.0 billion, an increase of 1.8 percent year over year. This improvement can be attributed to service and other revenue growth partially offset by lower upgrade volumes. Segment EBITDA margin2 in third-quarter 2024 was 43.4 percent, an increase from 42.8 percent in third-quarter 2023.

    Verizon Business: Continued mobility and broadband growth

    • Total Verizon Business revenue was $7.4 billion in third-quarter 2024, a decrease of 2.3 percent year over year, as increases in wireless service revenue were more than offset by decreases in wireline revenue. 
    • Business wireless service revenue in third-quarter 2024 was $3.5 billion, an increase of 2.9 percent year over year. This result was driven by continued strong net additions for both mobility and fixed wireless, as well as benefits from pricing actions implemented in recent quarters. 
    • Business reported 281,000 wireless retail postpaid net additions in third-quarter 2024. This result included 158,000 postpaid phone net additions. The company experienced sustained growth in phone net additions across its small and medium business, enterprise, and public sector customers throughout the quarter.
    • Business wireless retail postpaid churn was 1.45 percent in third-quarter 2024, and wireless retail postpaid phone churn was 1.12 percent.
    • Business reported 154,000 fixed wireless net additions in third-quarter 2024.
    • In third-quarter 2024, Verizon Business operating income was $565 million, an increase of 4.8 percent year over year, and segment operating income margin was 7.7 percent, an increase from 7.2 percent in third-quarter 2023. Segment EBITDA2 in third-quarter 2024 was $1.6 billion, a decrease of 3.7 percent year over year, driven by continued declines in wireline revenues. Segment EBITDA margin2 in third-quarter 2024 was 21.8 percent, a decrease from 22.1 percent in third-quarter 2023. 

    Outlook and guidance: Verizon is on track to meet financial guidance 

    The company does not provide a reconciliation for any of the following adjusted (non-GAAP) forecasts because it cannot, without unreasonable effort, predict the special items that could arise, and the company is unable to address the probable significance of the unavailable information.  

    • For 2024, Verizon continues to expect the following: 
    • Total wireless service revenue growth1 of 2.0 percent to 3.5 percent.
    • Adjusted EBITDA growth2 of 1.0 percent to 3.0 percent.
    • Adjusted EPS2 of $4.50 to $4.70.
    • Capital expenditures between $17.0 billion and $17.5 billion. 
    • Adjusted effective income tax rate2 in the range of 22.5 percent to 24.0 percent.

    1 Total wireless service revenue represents the sum of Consumer and Business segments.
    2 Non-GAAP financial measure. See the accompanying schedules and http://www.verizon.com/about/investors for reconciliations of non-GAAP financial measures cited in this document to most directly comparable financial measures under generally accepted accounting principles (GAAP).
    3 Nine months ended September 30, 2024.


    Forward-looking statements

    In this communication we have made forward-looking statements. These statements are based on our estimates and assumptions and are subject to risks and uncertainties. Forward-looking statements include the information concerning our possible or assumed future results of operations. Forward-looking statements also include those preceded or followed by the words “anticipates,” “assumes,” “believes,” “estimates,” “expects,” “forecasts,” “hopes,” “intends,” “plans,” “targets” or similar expressions. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements, except as required by law. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. The following important factors, along with those discussed in our filings with the Securities and Exchange Commission (the “SEC”), could affect future results and could cause those results to differ materially from those expressed in the forward-looking statements: the effects of competition in the markets in which we operate, including the inability to successfully respond to competitive factors such as prices, promotional incentives and evolving consumer preferences; failure to take advantage of, or respond to competitors’ use of, developments in technology and address changes in consumer demand; performance issues or delays in the deployment of our 5G network resulting in significant costs or a reduction in the anticipated benefits of the enhancement to our networks; the inability to implement our business strategy; adverse conditions in the U.S. and international economies, including inflation and changing interest rates in the markets in which we operate; cyber attacks impacting our networks or systems and any resulting financial or reputational impact; damage to our infrastructure or disruption of our operations from natural disasters, extreme weather conditions, acts of war, terrorist attacks or other hostile acts and any resulting financial or reputational impact; disruption of our key suppliers’ or vendors’ provisioning of products or services, including as a result of geopolitical factors or the potential impacts of global climate change; material adverse changes in labor matters and any resulting financial or operational impact; damage to our reputation or brands; the impact of public health crises on our operations, our employees and the ways in which our customers use our networks and other products and services; changes in the regulatory environment in which we operate, including any increase in restrictions on our ability to operate our networks or businesses; allegations regarding the release of hazardous materials or pollutants into the environment from our, or our predecessors’, network assets and any related government investigations, regulatory developments, litigation, penalties and other liability, remediation and compliance costs, operational impacts or reputational damage; our high level of indebtedness; significant litigation and any resulting material expenses incurred in defending against lawsuits or paying awards or settlements; an adverse change in the ratings afforded our debt securities by nationally accredited ratings organizations or adverse conditions in the credit markets affecting the cost, including interest rates, and/or availability of further financing; significant increases in benefit plan costs or lower investment returns on plan assets; changes in tax laws or regulations, or in their interpretation, or challenges to our tax positions, resulting in additional tax expense or liabilities; changes in accounting assumptions that regulatory agencies, including the SEC, may require or that result from changes in the accounting rules or their application, which could result in an impact on earnings; and risks associated with mergers, acquisitions and other strategic transactions, including our ability to consummate the proposed acquisition of Frontier Communications Parent, Inc. and obtain cost savings, synergies and other anticipated benefits within the expected time period or at all.

    MIL OSI Economics –

    January 24, 2025
  • MIL-OSI Asia-Pac: First regional workshop under the Panchayat Sammelan series on “Ease of Living: Enhancing Service Delivery at the Grassroots” held at NIRD&PR, Hyderabad.

    Source: Government of India (2)

    First regional workshop under the Panchayat Sammelan series on “Ease of Living: Enhancing Service Delivery at the Grassroots” held at NIRD&PR, Hyderabad.

    Government committed to transform every Panchayat into a hub of efficient, transparent, and responsive services: Shri Vivek Bharadwaj, Secretary, Ministry of Panchayati Raj

    Posted On: 22 OCT 2024 4:25PM by PIB Hyderabad

     The Ministry of Panchayati Raj organized the first regional workshop under the Panchayat Sammelan series on “Ease of Living: Enhancing Service Delivery at the Grassroots” today at the National Institute of Rural Development and Panchayati Raj (NIRD&PR), Hyderabad. Shri Vivek Bharadwaj, Secretary, Ministry of Panchayati Raj participated as chief guest and inaugurated this workshop. Addressing the event, he emphasized that government is committed to transform every panchayat into a hub of efficient, transparent, and responsive services. Noting that Sammelan represents a key milestone in this ongoing process , Shri Bharadwaj stressed that effective service delivery with “seva bhaav” (spirit of service) is key to strengthening rural self-reliance and voluntary tax compliance.

     

    He also highlighted the direct correlation between quality service delivery and citizens willingness to pay taxes, enabling Panchayats to achieve self-reliance through self-generated revenue. He added, that successful service delivery models should be documented and shared to inspire other Panchayats. States with exemplary service delivery frameworks should collaborate with others for model replication. Shri Vivek Bharadwaj  also said that the Ministry of Panchayati Raj has approved the provision of 22,164 computers to Gram Panchayats across various states where computers were previously unavailable. This step will significantly enhance access to online services in rural areas. Shri Bharadwaj also mentioned that ministry has also sanctioned the construction of 3,301 Gram Panchayat Bhawans, which will include co-located Common Service Centres (CSCs), further strengthening digital infrastructure at the grassroots level.

     

    Addressing the participants, Dr. G. Narendra Kumar, Director General, NIRD&PR, emphasized that Panchayat representatives and functionaries are tasked with driving positive change at the grassroots level. “By equipping the Panchayat representatives and officials with cutting-edge tools and knowledge, we are setting the stage for a governance revolution that begins from the ground up,” he added.

     

     

    Earlier in his opening remarks, Shri Alok Prem Nagar, Joint Secretary, Ministry of Panchayati Raj, highlighted various digital interventions including ServicePlus of NIC and RapidPro of UNICEF.  He further emphasized that the workshop’s innovative use of technology and focus on collaborative learning has set a new benchmark for future Regional Workshops in the series of Panchayat Sammelan. Informing that that the Hyderabad Panchayat Sammelan is being live streamed in eleven languages through the Bhashini platform, including Bengali, English, Gujarati, Hindi, Kannada, Malayalam, Marathi, Odia, Punjabi, Tamil, and Telugu, he said that this linguistic outreach demonstrates the Ministry’s commitment to inclusive governance and effective knowledge dissemination across diverse linguistic communities.

     

    Shri Lokesh Kumar D. S., Secretary, Panchayat Raj and Rural Development Department, Government of Telangana thanked the Ministry of Panchayati Raj for organising this workshop in Hyderabad. This workshop, was organised as a the first in a series of four regional workshops under Panchayat Sammelan. The primary objective of this programme focused to deliberate on innovative approaches and share experiences for enhancing service delivery at the grassroots level. Representatives from Andhra Pradesh, Telangana, Gujarat, Jharkhand, Madhya Pradesh, Mizoram, and Odisha participated in this workshop and shared their insights on challenges and opportunities in service delivery.

     

    The sessions explored the theme of ease of living through leveraging technology for rural service delivery. The National Informatics Centre (NIC) demonstrated the bespoke Service Plus platform, configurable for online service delivery. Presentations from the Wadhwani Foundation, Bhashini, and UNICEF showcased the potential of Artificial Intelligence and Digital Public Goods (DPGs) in streamlining communication and service delivery at the local level.  NIRD&PR also conducted a session on Benchmarking Rural Service Delivery, providing valuable frameworks for evaluating and enhancing service effectiveness. Panchayat Sammelan provided the participants with enhanced knowledge and actionable strategies to enhance the governance and service delivery mechanism at the Panchayat level.

     

    ***

    (Release ID: 2067045) Visitor Counter : 32

    MIL OSI Asia Pacific News –

    January 24, 2025
  • MIL-OSI Asia-Pac: India to Develop Roadmap Post-20% Ethanol Blending Target, Says Minister Hardeep Singh Puri at G-STIC Conference

    Source: Government of India

    India to Develop Roadmap Post-20% Ethanol Blending Target, Says Minister Hardeep Singh Puri at G-STIC Conference

    Shri Puri Highlights Importance of Addressing Energy Trilemma: Balancing Affordability, Availability, and Sustainability

    Outlines Role of Ujjwala Scheme in Providing Affordable LPG to Economically Weaker Sections of Society

    Posted On: 22 OCT 2024 6:31PM by PIB Delhi

    Addressing the 7th G-STIC Delhi Conference on “Accelerating Technologies Solutions for the SDGs,” Shri Hardeep Singh Puri, Minister of Petroleum and Natural Gas, articulated India’s evolving journey towards sustainable energy solutions. Highlighting the potential for these technological advancements to be replicated across the Global South, Shri Puri provided insights into the complexities of energy transitions within democratic frameworks, emphasizing that there is no clear answer to whether these transitions are inherently easier or more difficult in democracies.

     

    The 7th G-STIC (Global Sustainable Technology and Innovation Community) Conference organized by TERI and VITO along with the support of eight other not-for-profit independent technology research institutes, is being hosted in India for the first time. The Conference will deliberate on challenges under the umbrella theme “Harmonizing Technology, Policy and Business Pathways for Sustainable Future and Coexistence”.

    Speaking at the inaugural session of the Conference, Shri Hardeep Singh Puri discussed the critical trilemma that democratically elected governments face globally: balancing affordability, availability, and sustainability in energy policy. He pointed out that as global energy demand rises, India’s own energy consumption is projected to increase significantly—from 5.4 million barrels per day today to an anticipated 7 million barrels per day by 2030. This growing demand positions India as a major contributor to global energy consumption, with projections indicating that 25% of the increase in global energy demand over the next two decades will originate from India alone.

    Affordability remains a primary concern in addressing this energy transition. The Minister emphasized the government’s commitment to research and development, citing innovative solutions such as hydrogen fuel cell technology being piloted in public transport. Currently, India is operating 15 hydrogen-powered buses, which are still in the demonstration phase. These initiatives reflect a broader vision for sustainable transport solutions that can contribute to reducing the carbon footprint.

    A highlight of the address was the substantial progress made in ethanol blending, which has surged from just 1.53% in 2013-14 to 16% today. This achievement has prompted the government to advance its blending target of 20% from 2030 to 2025, showcasing a proactive approach to energy sustainability. Shri Puri noted that discussions have already begun to establish a roadmap for sustainable energy solutions beyond the 20% blending target, indicating a forward-thinking strategy that anticipates future energy needs.

    The Minister stressed the need for addressing the energy requirements of developing nations, particularly in the Global South, where many countries rely heavily on energy imports. He expressed confidence that the success of India’s ethanol initiatives could serve as a model for these regions, although he acknowledged that unlike Brazil, India lacks the luxury of abundant arable land for biofuel production. Nevertheless, he emphasized the potential for innovative biofuel strategies to alleviate import dependency while addressing local energy needs.

    The Minister also highlighted the transformative impact of the Ujjwala scheme, launched in 2016, which has significantly expanded access to cooking gas. The number of cylinder connections has increased from 140 million to 330 million, providing clean cooking fuels to economically weaker sections of society. This initiative, along with other social schemes of Government, has played a crucial role in lifting approximately 250 million people out of multidimensional poverty under Prime Minister Narendra Modi’s leadership.

    In his concluding remarks, Shri Hardeep Singh Puri focused on the potential of green hydrogen as a game-changer for India’s energy landscape. He outlined the importance of local demand, production, and consumption in making green hydrogen a viable energy source. The key challenge remains in reducing the cost of production, and he called for ongoing innovation and scaling of technology in this sector.

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    MIL OSI Asia Pacific News –

    January 24, 2025
  • MIL-OSI Asia-Pac: Brainstorming Session and First Meeting of Nodal Officers for the Mission on Science & Technology for Sustainable Livelihood System

    Source: Government of India

    Posted On: 22 OCT 2024 6:29PM by PIB Delhi

    The Office of the Principal Scientific Adviser (PSA) convened the Brainstorming Session and First Meeting of Nodal Officers for the Mission on Science & Technology for Sustainable Livelihood System today (October 22nd, 2024) at Vigyan Bhawan Annexe in New Delhi.

    The meeting was chaired by Dr. (Mrs.) Parvinder Maini, Scientific Secretary, O/o PSA and was joined by key government officials, identified as nodal officers from various ministries/departments including Department of Science & Technology, Ministry of Rural Development, Ministry of Social Justice and Empowerment, Indian Council of Agricultural Research, Department of Agriculture & Farmers Welfare, Ministry of Micro, Small and Medium Enterprises, Council of Scientific and Industrial Research, Department of Biotechnology, Ministry of Earth Sciences, Ministry of Electronics and Information Technology, Ministry of Environment, Forest and Climate Change and Ministry of Health and Family Welfare.

    This mission aims to leverage scientific advancements and technological innovations to enhance livelihoods and promote sustainable development across communities. The mission, to be implemented by DST, was recommended during the 22nd Prime Minister’s Science, Technology & Innovation Advisory Council (PM-STIAC) meeting held on January 19, 2023, to strengthen the technology delivery mechanism for improving quality of life.

    In her opening remarks, Dr. Maini highlighted the need for collaboration across sectors, bringing convergence of existing programs to create scalable and inclusive livelihood models for ensuring last mile connectivity of the STI interventions in the mission. The key objective of today’s meeting included defining the roles and responsibilities of each ministry/department in the different components of the program and formulating a strategy for selecting pilot sites for implementation.

    Presentation was made by Dr. Sangeeta Agarwal, Scientist-F, O/o PSA highlighting the objectives of the mission, importance of definite roles of each participating ministry/department for successful implementation of the program and also presented the strategy for the selection of sites for pilot initiation of the mission. This was followed by presentation by Dr. Anita Aggarwal, DST on the SEED Division programs and IIT Delhi on Unnat Bharat Abhiyan.

    After the presentations, the Chair invited interventions from the nodal officers of each ministry/department. Each ministry/department clearly brought out the efforts being made by them in implementing their flagship schemes at the district and village levels. They shared insights on how these schemes may converge and contribute to the national mission.

    The session concluded with all the nodal officers agreeing to provide inputs regarding ongoing schemes/programs and their geographical spread. These inputs shall aid in identification and selection of sites for pilot scale implementation of the mission.

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    MIL OSI Asia Pacific News –

    January 24, 2025
  • MIL-OSI Asia-Pac: Union Minister Jyotiraditya M. Scindia launches ‘International Incoming Spoofed Calls Prevention System’

    Source: Government of India

    Union Minister Jyotiraditya M. Scindia launches ‘International Incoming Spoofed Calls Prevention System’

    Another step by Department of Telecom (DoT) to protect Citizens from cyber frauds

    The system identifies and blocks the incoming international calls posing as Indian phone numbers

    System identified and blocked about 1.35 crore calls as spoofed calls in last 24 hrs, which are 90 % of all the incoming international calls

    Posted On: 22 OCT 2024 6:28PM by PIB Delhi

    Shri Jyotiraditya M. Scindia, Minister of Communications and Development of North Eastern Region today launched ‘International Incoming Spoofed Calls Prevention System’, in the presence of Minister of State for Communications & Rural Development Dr Pemmasani Chandra Sekhar. The launch ceremony was attended by Secretary Telecom and other senior officers. This is another milestone of DoT’s efforts towards building a safe digital space and protecting citizens from cyber-crime.

    Of late, cyber criminals have been committing cyber-crimes by making international spoofed calls displaying Indian mobile numbers (+91-xxxxxxxxx).  These calls appear to be originating within India but are actually being made from abroad by manipulating the calling line identity (CLI) or commonly known as phone number.

    These spoofed calls have been used for financial scams, impersonating government officials, and creating panic.  There have also been cases of cyber-crime threatening disconnection of mobile numbers by DoT/TRAI officials, fake digital arrests, drugs/narcotics in courier, impersonation as police officials, arrest in sex racket etc.

    Department of Communications (DoT) and Telecom Service (TSPs) have collaborated and devised a system to identify and block such incoming international spoofed calls from reaching the Indian telecom subscribers. The system was made operational and it has been observed that within 24 hours of operation of the system, about 1.35 crore or 90% from all the incoming international calls with Indian phone numbers were identified as spoofed calls and blocked by TSPs from reaching Indian telecom subscribers. Indian telecom subscribers should see a significant reduction in such spoofed calls with +91-xxxxxxx numbers with implementation of this system.

    Despite such best efforts, there could be cases where fraudsters succeed through other means. For such calls, you can help by reporting such suspected fraud communications at Chakshu facility on Sanchar Saathi (http://www.sancharsaasthi,gov.in ). The DoT remains committed to proactively combating cybercrime.

    For those who have already lost money or been victims of cybercrime, please report the incident at the cybercrime helpline number 1930 or website  https://www.cybercrime.gov.in

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    MIL OSI Asia Pacific News –

    January 24, 2025
  • MIL-OSI Asia-Pac: Dr. Jitendra Singh Urges Optimal Use of AI in Government Working

    Source: Government of India

    Dr. Jitendra Singh Urges Optimal Use of AI in Government Working

    AI Session at PMO Unites Officials cross Ranks, Promotes Inclusive Learning Under Mission Karmayogi

    Minister Calls for Responsible Use of AI in Governance, Highlights PM’s Mission Karmayogi Vision

    Posted On: 22 OCT 2024 5:28PM by PIB Delhi

    Union Minister of State (Independent Charge) for Science and Technology, Minister of State (Independent Charge) for Earth Sciences, MoS PMO, Department of Atomic Energy, Department of Space, Personnel, Public Grievances and Pensions, Dr. Jitendra Singh emphasised the need for the optimal use of Artificial Intelligence (AI) in government working to enhance efficiency and productivity.

    Speaking at a special session on AI organised for the staff of the Prime Minister’s Office (PMO) at South Block here, Dr. Jitendra Singh highlighted the critical role AI can play in revolutionizing governance, streamlining operations, and improving decision-making processes across various government departments. The session, which saw participation from officers across all levels—from Section Officers to the Principal Secretary to the Prime Minister to the Union Minister—was a unique demonstration of breaking hierarchical barriers within the PMO, with officials learning the same advanced concepts alongside each other.

    Addressing the session, which included senior officials like Principal Secretary to the Prime Minister Mr. P.K. Mishra and Advisors to the PM, Mr. Amit Khare, Mr. Tarun Kapoor and other senior officers, Dr. Jitendra Singh underscored that AI has the power to automate routine tasks, freeing up government officials to focus on more strategic areas of governance. He highlighted how AI could transform key sectors like healthcare, agriculture, and public service delivery, ensuring that government departments become more efficient and public services more responsive to citizen needs.

    The session was part of the ongoing “National Learning Week” under Mission Karmayogi, an ambitious capacity-building initiative spearheaded by Prime Minister Narendra Modi, aimed at empowering government employees with the knowledge and skills required to navigate the complexities of modern governance. The initiative focuses on creating a more agile, transparent, and effective bureaucracy, and today’s session on AI was a step in that direction.

    Dr. Jitendra Singh praised the Prime Minister’s vision for Mission Karmayogi, stating that it not only enhances the skills of individual officers but also promotes a collaborative and inclusive learning environment, where traditional hierarchies are dissolved in favour of collective learning and growth.

    Dr. Jitendra Singh also emphasised the importance of deploying AI responsibly, stressing the need to safeguard data privacy, particularly in sensitive areas of government functioning. “While AI holds immense potential for enhancing productivity, it must be implemented with caution to ensure confidentiality and data security,” the Minister said, adding that strong security measures are necessary to protect AI systems from cyber threats and unauthorised access. He also called attention to the ethical considerations in the use of AI, urging that fairness and transparency be maintained while avoiding biases in decision-making.

    Participants at the session discussed AI’s role in advancing India’s national infrastructure, security, and economic growth. The collective learning atmosphere encouraged open dialogue on how AI can be leveraged to strengthen India’s digital backbone, improve public service delivery, and support the country’s long-term vision for sustainable growth. The session also marked the beginning of India’s first practical AI data bank, designed to accelerate technological growth over the next decade.

    One of the key discussions at the session was on the role of AI in building smart physical and digital infrastructure, essential for India’s long-term growth. Experts at the session highlighted that AI will reshape national security and public infrastructure, calling for more innovation in front-end technologies—a crucial area where India is seeking to enhance its capabilities.

    AI’s potential to drive industrial transformation, improve the quality of education, and generate employment was also explored. Participants underscored the importance of scaling successful AI use cases, particularly in manufacturing and healthcare, to ensure that the benefits of AI reach a broader population.

    A significant highlight of the session was the call for the development of India’s first practical AI data bank. This initiative is expected to unlock AI’s potential for accelerated growth over the next decade, positioning India as a leader in practical AI applications. The roadmap for AI’s growth focused on a balanced model of development that ensures human-centricity, environmental sustainability, and resilience.

    The session also touched upon AI’s role in addressing geopolitical challenges, noting how AI technologies are influencing global power dynamics. The participants emphasised that India must develop an AI framework that responds to these evolving dynamics, ensuring that the country remains competitive on the global stage.

    The event concluded with a vision for India in 2035 and beyond to 2047, emphasising the importance of citizen empowerment through AI. The focus was on creating an inclusive AI ecosystem that supports growth, transforms governance, and ensures equitable development for all sectors of society.

    As per the Prime Minister’s call, the National Learning Week will focus on learning through various forms of engagement by individual participants, as well as Ministries, Departments, and Organizations. During this week, each Karmayogi will commit to completing at least 4 hours of competency-based learning.

    In concluding his address, Dr. Jitendra Singh reiterated the government’s commitment to harnessing AI for nation-building, assuring that all efforts would be made to integrate AI responsibly into various government functions. He encouraged every government official to take full advantage of the opportunities provided by Mission Karmayogi, as the initiative continues to redefine governance by breaking down barriers, fostering inclusivity, and equipping India’s bureaucracy with the tools of tomorrow.

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    MIL OSI Asia Pacific News –

    January 24, 2025
  • MIL-OSI Asia-Pac: BSNL Unveils New Logo and Launches Seven Groundbreaking Services, Strengthening Its Commitment to Secure, Affordable, and Reliable Connectivity

    Source: Government of India

    Posted On: 22 OCT 2024 5:26PM by PIB Delhi

    Bharat Sanchar Nigam Limited (BSNL), has proudly unveiled its new logo, which represents its renewed focus on delivering secure, affordable, and reliable connectivity to every corner of Bharat. The logo was launched by Hon. Union Minister of Communications & Development of NE Region Sri Jyotiraditya M Scindia in presence of Hon. MOS for Communications & Rural Development Dr Pemmasani Chandra Sekhar. The launch ceremony was held at Bharat Sanchar Bhavan and was attended by Secretary Telecom, CMD BSNL& senior Officers from DoT, BSNL, CDoT, ITI & TCIL.

    Alongside the new logo, BSNL has announced seven pioneering initiatives, aimed at revolutionizing how India connects, communicates, and enhances its digital security.

    New Logo – Vibrancy, Trust, and Nationwide Reach

    BSNL’s new logo symbolizes strength, trust, and accessibility. The green and white arrows surrounding India emphasize the company’s expansive nationwide reach, while the vibrant orange backdrop signifies warmth and inclusivity. The bold tagline ‘Connecting Bharat‘ highlights BSNL’s unwavering mission to bridge the digital divide by offering a modern, reliable telecom network that connects both urban and rural India.

    Seven New Initiatives Built on Three Key Pillars

    Security:

    1. Spam! Free Network

    BSNL’s spam-blocking solution automatically filtering out phishing attempts and malicious SMS and creates a safer communication environment for user swithout the need to issue alerts to customers, ensuring seamless and secure communication for all users.

    Affordability:

     

    1. BSNL National Wi-Fi Roaming

    BSNL is launching a first-of-its-kind seamless Wi-Fi roaming service for its FTTH customers, enabling high-speed internet access at BSNL hotspots at no extra charge, thus minimizing data costs for users.

     

    1. BSNL IFTV

    A first for India, BSNL’s fiber-based intranet TV service offers 500+ live channels and Pay TV through its FTTH network. This service will be accessible for all BSNL FTTH subscribers without additional charges. The data used for the TV viewing will not be consuming the FTTH Data pack.

     

    1. Any Time SIM (ATS) Kiosks

    A first of it kind- Automated SIM kiosks allow users to purchase, upgrade, port or replace SIMs on 24/7basis , leveraging UPI/QR-enabled payments with seamless KYC integration and multi-lingual access.

     

    Reliability:

     

    1. Direct-to-Device Service

    India’s first Direct-to-Device (D2D) connectivity solution converges satellite and terrestrial mobile networks to deliver seamless, reliable connectivity. This groundbreaking technology is particularly useful in emergency situations and isolated regions, and can enable UPI payments in such areas.

    1. ‘Public Protection & Disaster Relief’ – as a solution

    BSNL’s scalable, secure network for disaster response is India’s first guaranteed encrypted communication for government and relief agencies during crises, enhancing national disaster management capabilities. The robust network design guarantees uninterrupted connectivity and also uses innovative drone-based and balloon-based systems to extend coverage during disasters.

     

    1. First Private 5G in Mines

    BSNL introduces reliable, low-latency, 5G connectivity for mining operations in partnership with C-DAC, leveraging Made-in-India equipment and BSNL’s technological expertise. This service enables advanced AI and IoT applications, in underground mines and large opencast mine which require high speed low latency connectivity, such as safety analytics, real-time remote control of AGVs, AR enabled remote maintenance, fleet tracking & optimization, etc.

    These launches signal BSNL’s continuing commitment in transforming India’s telecom landscape, ensuring that secure, affordable and reliable connectivity remains accessible to all.

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    MIL OSI Asia Pacific News –

    January 24, 2025
  • MIL-OSI Asia-Pac: Union Home Minister and Minister of Cooperation Shri Amit Shah inaugurates several farmer welfare activities worth ₹300 crore during the Diamond Jubilee celebrations of the National Dairy Development Board (NDDB) and the birth anniversary of Shri Tribhuvan Patel in Anand, Gujarat

    Source: Government of India (2)

    Union Home Minister and Minister of Cooperation Shri Amit Shah inaugurates several farmer welfare activities worth ₹300 crore during the Diamond Jubilee celebrations of the National Dairy Development Board (NDDB) and the birth anniversary of Shri Tribhuvan Patel in Anand, Gujarat

    Under the leadership of Prime Minister Shri Narendra Modi, the SoP for White Revolution 2.0 has been issued, now, one lakh new and existing dairies will be empowered, and milk routes will be expanded

    Tribhuvan Das ji set aside his personal interests and worked for the empowerment of poor farmers

    Tribhuvan Das ji created a small cooperative which is today doing business worth thousands of crores of rupees by connecting 2 crore farmers with the cooperative sector

    Over the past 60 years, NDDB has empowered and organized farmers, as well as mothers and sisters, contributing significantly to their upliftment and development

    Branding cooperative products and preparing them to compete with corporate products is key to success

    NDDB has accelerated rural development while making agriculture self-reliant

    Animal husbandry by cooperatives leads to prosperity of farmers along with strengthening fight against malnutrition

    NDDB has started vegetable processing, which will allow vegetables produced by farmers to reach markets worldwide, ensuring the profits go directly to the farmers

    Prime Minister Modi’s visionary scheme of Gobardhan Yojana is not only enhancing soil conservation and improving crop quality, but also contributing to a cleaner environment

    Posted On: 22 OCT 2024 5:03PM by PIB Delhi

    Union Home Minister and Minister of Cooperation Shri Amit Shah, today inaugurated several farmer welfare schemes worth ₹300 crore during the National Dairy Development Board’s (NDDB) diamond jubilee celebration along with the commemoration of birth anniversary of Shri Tribhuvandas Patel in Anand, Gujarat. On this occasion, several dignitaries were present, including the Union Minister for Panchayati Raj, Fisheries, Animal Husbandry & Dairying, Shri Rajiv Ranjan Singh.

    In his address, Shri Amit Shah said that under the leadership of Prime Minister Shri Narendra Modi, the Standard Operating Procedures (SoP) for the recently launched White Revolution 2.0 have been released, incorporating all the key farmer-friendly points outlined by the Prime Minister. He mentioned that Cooperative Sector will empower one lakh new and existing dairies, and the second white revolution will expand milk routes.

    Shri Shah said that Tribhuvandas ji was a personality whose hardworking life is difficult to describe. Setting aside his personal interests, Shri Tribhuwandas Patel worked with a unique vision for the empowerment of the country’s poor farmers. He worked for the empowerment of the poor farmers of the country by renouncing self. Throughout his life, Tribhuvandas ji distanced himself from personal gain and dedicated his efforts to connecting every farmer in the country with the true spirit of cooperation, achieving great success in this endeavor. Shri Shah said that it is because of Tribhuvan Das Ji that 5 crore cattle rearers of the country sleep peacefully and today crores of farmers of the country, especially women, are prospering. Tribhuvan Das Ji created a small cooperative society which today is doing business worth thousands of crores of rupees by connecting 2 crore farmers of the country with the cooperative sector.

    Union Home Minister and Minister of Cooperation said that in 1964, former Prime Minister Shri. Lal Bahadur Shastri visited Amul Dairy and decided that not only Gujarat but livestock owners across the entire country should benefit from this successful model. Following this, Shastri ji decided to establish the NDDB. He said that in 60 years, NDDB has not only empowered and organised cooperative sector, farmers and mothers and sisters across the country, but has also worked to raise their awareness about their rights. He said that when animal husbandry is done through cooperatives, it not only brings prosperity to farmers but also addresses the issue of malnourished children in the country.  The trust built through Amul has not only empowered women but also laid the foundation for creating strong citizens by providing nutrition to children.

    Shri Amit Shah said that NDDB accelerated the development of the rural sector and the country as well as made agriculture self-reliant. He said Tribhuvan ji had laid the foundation of NDDB which has today become a very big institution not only in the country but in the world. He said that in 1987, NDDB became an official institution, and from 1970 to 1996, it developed and implemented the Operation Flood program, which led to the White Revolution. He noted Amul is conducting annual business worth ₹60,000 crore today which was initially built on the very small shared capital from women. Shri Shah said that in 1964, when Lal Bahadur Shastri ji decided to establish NDDB, no one knew that it will grow akin to a small seed growing one day into a massive banyan tree. NDDB’s liquid milk sales have reached 427 lakh liters per day, with procurement at 589 lakh liters per day. Its revenue has increased from ₹344 crore to ₹426 crore, and the net profit stands at ₹50 crore.

    Union Home Minister and Minister of Cooperation said that NDDB has started processing vegetables, allowing the vegetables produced by our farmers to reach the entire world, and the profits will be distributed down to the grassroots under the cooperative model. He said that the Gobardhan scheme has led to the conservation and enhancement of our land, increased yields, improved farmer prosperity, and a cleaner environment. Gas and fertilizer are being produced from cow dung, and carbon credit payments are reaching our mothers and sisters. Shri Shah stated that Prime Minister Shri Narendra Modi has implemented the Gobardhan scheme on the ground through visionary decision-making. He also mentioned that NDDB has registered 10,000 Farmer Producer Organizations (FPOs).

    Shri Amit Shah mentioned that after NDDB’s initiative, all plants in the dairy sector will now be built in India under the Make in India program. He mentioned that today the foundation stone was laid for a Mother Dairy fruit and vegetable processing unit worth ₹210 crore. Additionally, the Badri Ghee from Uttarakhand and the Gir Ghee brand from Mother Dairy were also launched today. He said that branding the cooperative’s products and preparing them to compete in the market with corporate goods is key to success. Today, our Amul brand holds the top position globally, which is a significant achievement for us. He also mentioned that farmers of apricots from Ladakh, apples from Himachal, and pineapples from Meghalaya will benefit from the initiatives launched today.

    Union Home Minister and Minister of Cooperation said that the Ministry of Cooperation has established three new national-level cooperative institutions. Such new initiatives can only be taken when the leadership is genuinely concerned about the farmers. He said that Prime Minister Shri Narendra Modi has implemented several initiatives and schemes in the cooperative sector. Currently, there are approximately 22 state federations and 231 district federations, along with 28 marketing dairies and 21 milk-producing companies operating in the sector.

    Shri Amit Shah said that the Modi government is going to establish 2 lakh new Primary Agricultural Credit Societies (PACS), which will significantly strengthen our cooperative framework. He said that this initiative will enhance the strength of all entities in the cooperative sector. He highlighted that India has surpassed the United States of America with a milk production of 231 million tons, securing the top position in the world. Our milk production growth rate is 6%, while the global growth rate is only 2%. Today, eight crore rural families produce milk daily, but only one and a half crore are connected to the cooperative sector. He emphasized that this means the remaining 6.5 crore families are not receiving fair prices and are being exploited. Union Minister of Cooperation asserted that the government’s goal will be to ensure that in the future, all eight crore farming families involved in milk production receive full compensation for their hard work and are able to connect with the cooperative sector.

    Union Home Minister and Minister of Cooperation said that as a result of the campaign to empower cooperatives, the availability of milk in the country which was 40 kilograms per person in 1970, increased to 103 kilograms in 2011, and further rose to 167 kilograms per person in 2023. He noted that the average global milk availability per person is 117 kilograms.

     

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    MIL OSI Asia Pacific News –

    January 24, 2025
  • MIL-OSI United Nations: Experts of the Human Rights Committee Commend Greece on Measures Taken for Unaccompanied Minors, Raise Questions on Domestic Violence and Allegations of Border Pushbacks

    Source: United Nations – Geneva

    The Human Rights Committee today concluded its consideration of the third periodic report of Greece on how it implements the provisions of the International Covenant on Civil and Political Rights.  Committee Experts commended Greece for the measures taken for unaccompanied minors, while raising questions on domestic violence, and allegations of pushbacks at the border. 

    One Committee Expert said the Committee welcomed measures taken by the State party, including the establishment of the Special Secretariat for the Protection of Unaccompanied Minors, the Emergency Response Mechanism, and law 4960/2022 on the establishment of a National Guardianship System for unaccompanied minors.  The Committee also appreciated the national protection strategy (2021–2025) and the mechanism for unaccompanied children living in precarious conditions. 

    Another Expert asked how the State party addressed the root causes of gender-based violence? Was there a comprehensive strategy to prevent, raise awareness on, and respond to gender-based violence?  Was there mandatory and continuous capacity building for judges, prosecutors, and other law enforcement officials about gender-based violence? 

    A Committee Expert said numerous reports documented instances of pushbacks by the Hellenic police and Hellenic coast guards, including patterns of excessive use of force, cruel, inhuman and degrading treatment, incommunicado detention, and unlawful destruction of personal belongings.  How would Greece ensure thorough, systematic, effective, and independent investigations into allegations of pushbacks and hold those responsible accountable?  Reports before the Committee indicated that from January 2020 to June 2024, there were 1,452 incidents at the borders affecting approximately 46,649 people. What measures were being taken to ensure that border control operations prioritised the protection of life and that rescue efforts were conducted in compliance with human rights?

    The delegation said violence against women had increased significantly during the pandemic. In April 2020, there was a significant increase of more than 200 per cent regarding phone calls to the hotline for reporting violence.  Psychosocial support was provided upon request, including both online and in-person. An awareness raising campaign was launched in 2024 and was displayed in the Athens urban rail network.  A panic button application was launched, enabling women in immediate danger to call for help in a safe manner by pressing a button on their phone which was linked to the police. 

    The delegation said pushbacks were not the policy of the Greek Government in any way, shape, or form; the Government policy was clear.  Actions taken by Hellenic authorities at the sea borders were carried out in full compliance with international obligations.  Allegations on so-called pushbacks were not compatible with the well-established operations of the Hellenic authorities.  However, any allegations of pushbacks or mistreatment of third country nationals were thoroughly investigated.  From 2015 to the present, the Hellenic coast guards had rescued more than 254,000 people.  Several mechanisms allowed complaints against pushbacks to be submitted to the Hellenic authorities, and the coast guards had a robust disciplinary mechanism.

    Introducing the report, Katerina Patsogianni, Secretary General for Equality and Human Rights, Ministry of Social Cohesion and Family of Greece and head of the delegation, said in recent years, Greece had confronted the combined effects of the economic crisis, the migration crisis, and the COVID-19 pandemic.  The country was now on a path to long-term progress and sustainability, benefiting its human rights framework.  Greece had developed one of Europe’s most efficient asylum services and continued to improve its capacities and infrastructure.  The fight against human trafficking was a top priority for authorities, who worked closely with non-governmental organizations in a strategic alliance. 

    In concluding remarks, Ioannis Ghikas, Permanent Representative of Greece to the United Nations Office at Geneva, thanked the Committee for the frank and honest exchange.  Greece had worked hard to improve the situation, particularly on migration; the number of deaths in the Aegean Sea had fallen by 40 per cent. Greece had a vibrant society with few resources but was working to do better. 

    Tania María Abdo Rocholl, Committee Chairperson, thanked the delegation for the dialogue, which had covered a wide range of subjects under the Covenant.   The Committee aimed to ensure the highest level of implementation of the Covenant in Greece. 

    The delegation of Greece was made up of representatives of the Ministry of Foreign Affairs; the Ministry of Social Cohesion and Family; the Ministry of Justice; the Ministry of Citizen Protection; the Ministry of Maritime Affairs and Insular Policy; the Ministry of Migration and Asylum; the Ministry of National Defence; the Ministry of Interior; the Ministry of Education, Religious Affairs and Sports; the Ministry of Health; the Presidency of the Government; and the Permanent Mission of Greece to the United Nations Office at Geneva.

    The Human Rights Committee’s one hundred and forty-second session is being held from 14 October to 7 November 2024.  All the documents relating to the Committee’s work, including reports submitted by States parties, can be found on the session’s webpage.  Meeting summary releases can be found here.  The webcast of the Committee’s public meetings can be accessed via the UN Web TV webpage.

    The Committee will next meet in public at 3 p.m. on Tuesday, 22 October, to begin its consideration of the sixth periodic report of France (CCPR/C/FRA/6).

    Report

    The Committee has before it the third periodic report of Greece (CCPR/C/GRC/3).

    Presentation of Report

    IOANNIS GHIKAS, Permanent Representative of Greece to the United Nations Office at Geneva, said since the last review, Greece had made significant progress in key areas, including the protection of vulnerable groups, ensuring gender equality, and promoting human rights safeguards.  Despite unprecedented challenges, Greece had remained committed to protecting and promoting human rights and looked forward to the Committee’s recommendations. 

    KATERINA PATSOGIANNI, Secretary General for Equality and Human Rights, Ministry of Social Cohesion and Family of Greece and head of the delegation, said in recent years, Greece had confronted the combined effects of the economic crisis, the migration crisis, and the COVID-19 pandemic.  The country was now on a path to long-term progress and sustainability, benefiting its human rights framework.  Faced with the COVID-19 pandemic, Greece implemented restrictive measures to curb the spread of the disease, which were proportionate, non-discriminatory, and scientifically evaluated.  At the same time, the authorities enacted policies to protect public health and mitigate the social and economic effects of the pandemic. The National Vaccination Programme ran smoothly and efficiently, targeting specific and vulnerable groups. Following recommendations to improve policy coordination, Greece launched national human rights action plans with input from independent bodies and civil society. 

    Significant progress had been made on gender equality, including ratifying the Council of Europe Convention on Violence against Women and the International Labour Organization Convention on Sexual Harassment in the Workplace.  The Labour Inspection Body was now an independent authority, and the Greek Ombudsperson’s role in equal treatment had been strengthened. In 2019, Greece introduced a comprehensive legal framework to promote gender equality.  The new national action plan 2026-2030 would guide future policies with civil society input. 

    This year marked a significant milestone for the rights of lesbian, gay, bisexual, transgender and intersex persons, with the enactment of marriage equality for all, without gender discrimination.  On the rights of the child, key policy actions were focused on strengthening foster care and adoption, preventing child abuse, and setting rules for child protection units and childcare centres. 

    Greece was actively implementing the Roma National Strategy 2021–2030, guided by the principle “for the Roma, with the Roma.”  Key committees, including the Roma Forum, were fully operational. All available European Union funding was being used to enhance Roma’s employment, education, healthcare, and housing participation.  Harsher penalties now applied to crimes with racist characteristics. The National Council against Racism and Intolerance, an inter-ministerial body with the participation of independent bodies, adopted the first national action plan in December 2020. 

    For persons with disabilities, Greece established a National Accessibility Authority and was developing a national strategy for 2024-2030.  Key policies included deinstitutionalisation and a personal assistant programme for independent living.  A 2023 law improved access to justice for persons with disabilities and removed derogatory language from the legislation.  Additionally, the Ministry of Health had enacted legislation for psychiatric reform, shifting from institutional to community-based care.

    Greece had developed one of Europe’s most efficient asylum services and continued to improve its capacities and infrastructure.  Since 2021, the National Emergency Response Mechanism had supported thousands of unaccompanied minors in precarious conditions.  This year, Greece launched the new national guardianship system to serve vulnerable asylum applicants better at the first reception stage. In 2023, the General Secretariat of Vulnerable People and Institutional Protection was established in the Ministry of Migration and Asylum to address challenges faced by vulnerable refugees and migrants. 

    Greek law enforcement authorities fulfilled their border protection responsibilities in compliance with domestic, European and international law.  Allegations regarding violations of the principle of non-refoulement at land or sea borders did not correspond to the operational activities of law enforcement agencies.  Greece applied a firm policy for the effective monitoring of fundamental rights and the assessment of complaints of ill treatment at the border, comprised of internal disciplinary procedures; prosecutorial supervision under criminal law; and independent monitoring by the Greek Ombudsman and the National Transparency Authority.  In addition, a Special Committee for Compliance with Fundamental Rights and the position of the Fundamental Rights Officer were established in the Ministry of Migration and Asylum in 2022. 

    The fight against human trafficking was a top priority for authorities, who worked closely with non-governmental organizations in a strategic alliance.  In 2019, the National Referral Mechanism for trafficking victims was launched, which trained staff on standard operating procedures for victim protection, including in reception and identification centres.  A key development in the field of justice was the recent reform of the judicial map for civil and criminal courts, which aimed to reorganise courts geographically, streamline procedures, and speed up case resolution.  Greece had also undertaken several key initiatives to further develop a resilient and pluralistic media ecosystem, focusing on protecting, ensuring safety, and empowering journalists.  Ms. Patsogianni expressed gratitude for being able to engage in a constructive and frank dialogue with the Committee.

    Questions by Committee Experts

    A Committee Expert said the Committee noted that awareness raising on the Covenant was part of training activities for judges, lawyers and law enforcement officials. What were the channels used by the State party, the number of beneficiaries of these training courses, and the number of cases in which the provisions of the Covenant were invoked by the national courts?  What measures were taken by Greece to ensure the full implementation of the Committee’s views, including by providing victims with an effective remedy for the violation of their rights in several cases in the courts? 

    According to the information received, the measures taken by the State party during the COVID-19 pandemic had particularly wider implications for the human rights of asylum seekers, refugees and migrants, who were subject to mandatory quarantine, late vaccinations, lack of access to vaccination for certain groups, and policing people’s movements.  To what extent and how long were asylum procedures suspended due to restrictions imposed as a result of the COVID-19 pandemic?  Could figures be provided on the number criminal investigations opened, and prosecutions and convictions of the perpetrators of domestic violence and femicide committed during the prolonged COVID-19 quarantine?  What measures had been taken by the State party to ensure effective reparation for the damage suffered by the victims?

    The Committee welcomed the decision taken by the Court of Appeal of Athens in a landmark judgment handed down on 7 October 2020 against the neo-Nazi party “Golden Dawn”, which was described as a criminal organization.  The report also provided figures on the number of alleged racist incidents.  However, information received indicated that there was not enough prosecution to punish the perpetrators of the wrongdoings.  What measures were being taken to encourage victims of discrimination to report the situation to authorities?  How was it ensured that victims of hate crimes had access to support services? 

    Another Expert said the Committee appreciated the adoption of several laws, including amendments to the whistleblower protection law, increasing the fines for foreign bribery offenses, as well as the creation of new anti-corruption institutions, including the National Transparency Authority in 2019.  However, the Committee was concerned about the limited practical impact of these reforms.  Could statistics on corruption efforts be provided, including the number of investigations, prosecutions and convictions in corruption cases?  How did the State party ensure thorough and impartial investigations into all allegations of corruption, regardless of the officials or institutions involved?  Could more information on technical initiatives be provided?  How were whistleblower protection mechanisms being implemented? 

    The Committee remained concerned about the use of excessive force during pushbacks of migrants and asylum seekers, including instances of pointing guns, hitting with batons, slapping, and pushing asylum seekers.  Could the State party comment on these reports?  Could the State party also comment on allegations that no investigations had been conducted into police violence against Roma communities nearly five years after the incidents?

    The Committee commended Greece for adopting the 10-year national action plan for mental health in 2023, and for adopting law 5129/2024 for the completion of the psychiatric reform.  What steps were being taken to reduce overcrowding and improve the overall quality and supervision of psychiatric care?  How was the State party working to improve the capacity of the Committee for the Protection of the Rights of People with Psychosocial Disability and the Health Quality Assurance Body?

    While the Committee commended Greece for making the reduction of involuntary hospitalisations a priority, how did the State party ensure that patients being evaluated for involuntary commitment were provided with appropriate legal safeguards.  How was the State party working to reduce the total number of involuntary commitments to psychiatric care?  The Committee was concerned by the use of physical and chemical restraints in psychiatric care; what was being done to ensure that the use of restraints was properly regulated and minimised. 

    One Committee Expert said the Committee welcomed measures taken by the State party, including the establishment of the Special Secretariat for the Protection of Unaccompanied Minors, the Emergency Response Mechanism, and law 4960/2022 on the establishment of a National Guardianship System for unaccompanied minors.  The Committee also appreciated the national protection strategy (2021–2025) and the mechanism for unaccompanied children living in precarious conditions.  It was hoped these measures were robust and effective. 

    However, the Committee had been informed that unaccompanied minors were still sometimes detained in police stations and subjected to heavy restrictions of movement. How did the State party ensure that short-term detention and restrictions did not amount to a disproportionate limitation of the rights to liberty, security, and freedom of movement of unaccompanied minors?  The Committee was aware of the National Guardianship System for unaccompanied minors and of the Hippocrates project on medical and psychosocial services.  How would the State party ensure that the system and project had sufficient resources to be effective, that available guardians were appointed, and that services would be provided in practice? How did Greece ensure that the age determination procedure was multidisciplinary, scientifically based, harmonised across the country, and used only in cases of serious doubts about the claimed age?

    The Committee understood that law 4800/2021 allowed perpetrators of domestic violence or sexual offences to retain child custody and unrestricted contact with their children until they were convicted by a first instance court.  What measures had Greece taken to protect the safety of women and children who were forced into contact with alleged abusers under shared custody arrangements?  It was understood that in cases of imminent danger to a child’s mental or physical health, a prosecutor could take immediate protection measures for up to 90 days and renewable.  How often was this measure taken?  How well-known was this option to prosecutors and lawyers, as well as to women and children involved?  Why did Greece decide not to include femicide as a crime within the law?  What other measures had it taken to protect women against femicide?  What measures had been taken to increase the availability of shelters across the country?

    Could the State party inform the Committee on how it addressed the root causes of gender-based violence?  Was there a comprehensive strategy to prevent, raise awareness on, and respond to gender-based violence?  Was there mandatory and continuous capacity building for judges, prosecutors, and other law enforcement officials about gender-based violence?  The Committee had received information that Greek coast guards were involved in incidents where women, including pregnant women, were beaten and sexually assaulted.  What concrete measures had the State party taken to protect women from assaults and to prosecute and punish perpetrators?

    Another Expert welcomed information from the State party regarding measures taken to improve conditions in reception and detention centres.  However, reports indicated that migrants and asylum seekers continued to be held in poor and prison-like conditions of detention, and that their living conditions may be considered as amounting to inhuman and degrading treatment. What measures did Greece plan to take to address inadequate conditions of detention in reception and detention centres?  Did the State party have any policies in place to ensure adequate resources were available for migrants and asylum seekers at times of increased arrivals? What steps would Greece take to prevent the detention of third country nationals and asylum seekers and ensure that measures of detention were only used as a last resort? 

    Would Greece consider abolishing the administrative detention of asylum seekers on the grounds of illegal entry, particularly those belonging to vulnerable groups?  Would Greece consider putting in place a proper procedure for individualised risk assessment before imposing a detention order for an asylum seeker or a third party national?  What steps would be taken to ensure that all persons deprived of their liberty enjoyed fundamental legal safeguards against ill treatment from the outset of their detention, including the rights to be assisted by a lawyer without delay?  How was it ensured that all foreign nationals deprived of their liberty were granted access to a lawyer and doctor? 

    Another Expert asked what steps were being taken to develop a comprehensive statistical system on trafficking and improve early identification and referral systems? Could disaggregated data be provided on the number of trafficking cases investigated, convictions secured, and sentences imposed?  What steps was the State party taking to adopt a new national action plan and ensure sufficient resources for its implementation?  The situation on support and redress for victims was concerning, as there was a lack of adequately funded and inclusive shelters for trafficking victims and no victims had successfully obtained compensation.  What measures were being taken to increase the capacity of shelters and ensure that they were accessible to all victims?  How did Greece ensure the quality of services provided in shelters, and what long-term reintegration programmes were available?  What steps were being taken to facilitate access to compensation for victims, ensuring they received legal assistance? 

    It was reported that in 2023, of the 10,973 asylum appeals submitted to the Appeals Committees, only 5,915 cases, around 53 per cent, received legal aid.

    What steps were being taken to streamline the legal aid application process and court fee waivers for vulnerable populations?  What measures were being considered to increase the capacity and resources of the legal aid system to ensure timely and effective representation?  How was the State party addressing delays in providing legal aid, especially during critical stages such as police investigations and initial detention?  How did Greece plan to resolve ongoing delays in compensating legal aid lawyers? 

    Responses by the Delegation

    The delegation said that once ratified, international conventions formed part of domestic law. The national school of the judiciary provided training to judges and prosecutors.  Initial training was mandatory since 2022 and covered topics including human rights, gender law, and the treatment of victims.  Thirteen seminars were held online and in-person for judges in 2023, while 15 seminars were planned for 2024.  Greece did not have specific legislation to receive Views from the Committee. 

    During the COVID-19 pandemic, Greek authorities resorted to a wide array of restrictive measures to protect public health.  All these measures were necessary and applied in a non-discriminatory manner.  The Greek Ministry of Justice recently amended the Criminal Code concerning the fight against corruption with a new law in 2024.  Greece had an increased number of ongoing corruption investigations and cases and looked forward to final judgments in the immediate future. 

    In 2021, Greece significantly amended the provisions relating to family law.  The law had since triggered widespread concerns regarding its impact on custody in situations of domestic violence.  The Greek legal system offered certain possibilities to suspend or regulate the parental rights of parents who had been abusive to their spouses or children. 

    The National Council against Racism, through strengthened collaboration, would focus on enhancing victims’ access to services, improving the skills of public officials to draft the second national action plan against racism and intolerance, and raising public awareness through a national campaign which reached over 100,000 people. 

    Violence against women had increased significantly during the pandemic.  In April 2020, there was a significant increase of more than 200 per cent regarding phone calls to the hotline for reporting violence. Psychosocial support was provided upon request, including both online and in-person.  A social media campaign had succeeded in raising awareness on the gender-based violence issue.  Since 2010, a comprehensive strategy had been implemented to combat gender-based violence, comprised of prevention measures.  An awareness raising campaign was launched in 2024 and was displayed in the Athens urban rail network.  A panic button application was launched, enabling women in immediate danger to call for help in a safe manner by pressing a button on their phone which was linked to the police. 

    The National Centre for Social Solidarity operated two support centres in Athens for families that faced psychosocial crises, with an emphasis on victims of violence and trafficking.  Short-term accommodation was provided. 

    One thousand and one hundred persons with disabilities had received personal assistance to enhance their independent living.  A protection officer was stationed at each institution to report any cases of abuse. The Transparent Authority was the intendent mechanism responsible for conducting inspections in institutions where there were allegations or suspicions of abuse. 

    From 2019 to 2023, incidents of domestic violence had increased from 5,221 victims to 11,589. There had been 10 homicides of female victims by male perpetrators last year and six so far this year.  Five offices for the protection of minors had been established and a special hotline was operational, enabling citizens to call and make complaints. 

    Foreigners in prison who did not have sufficient knowledge of the Greek language had the right to appear before courts with an interpreter.  Alternative detention measures were applied under certain conditions. Detainees were immediately informed of their rights upon arrival at the prisons.  Information, lawyer representation, and linguistic assistance were provided to any foreign prisoners.  There were plans to recruit interpreters for implementing linguistic projects.

    Sixty-eight offices had been established in the country to combat violence which arose due to racist motives.  A special hotline was put into operation for reporting hate motivated crimes.  The cybercrime division had developed a series of actions aimed at informing the public on hate speech.  Police personnel were trained in the use of weapons and carried appropriate weapons when performing their duties.  The promotion of ethical standards and the code of conduct of police officers was received through training. 

    For people who tried to illegally cross the maritime borders of Greece, Hellenic officers undertook all legal and necessary measures.  There were clear legal rules that governed the use of force during law enforcement and border control activities.  When Hellenic officers used firearms, it was mandatory to inform the local prosecutor.  Detailed instructions had been disseminated to coast guard officers, and it was ensured that vulnerable groups were immediately provided with appropriate medical care.  It was important to recognise the humanitarian efforts of the coast guard officers; hundreds of thousands of migrants had been rescued by the Hellenic coast guard officers throughout the migrant crisis. 

    Since 2002, the Hellenic police had been dealing with the issue of human trafficking.  There were 12 human trafficking teams and officers had received specialised training in identifying victims and providing support. The fight against trafficking remained a top priority for the Greek authorities.  The establishment of the Office of a National Rapporteur on Trafficking was followed by the National Referral Mechanism.  The Office of the National Rapporteur was responsible for a national strategy to combat trafficking, and was mandated to cooperate closely with all national authorities.  The National Referral Mechanism was in its fifth year of operation; it specialised in victim protection and facilitated training sessions. 

    The national crisis management plan for refugees had been activated during the COVID-19 pandemic and consisted of allocating specific areas for medical care and a temporary restriction on movement for foreign nationals.  This did not constitute a detour from the rights in the Covenant.  Regardless of their legal status, migrants and asylum seekers were offered vaccinations free of charge.  Free transport was provided to asylum seekers to reach the local markets and health centres. Restriction on freedom of movement procedures for third country nationals was temporary and was done to verify a person’s identity.  This did not apply to people who urgently required medical support. 

    The work of the Special Secretariat for Unaccompanied Minors had been remarkable.  The National Guardianship System aimed to ensure that every unaccompanied minor had a guardian.  It was a new system that was implemented in January 2024.  There was a system for submitting complaints and a national registry for unaccompanied minors.  There were 137 guardians active in Greece, with more than 500 minors under the programme.  Greece was following an established procedure regarding age assessment. 

    Current penitentiary legislation provided for the protection of prisoners, including the right to appeal their sentence in an appeals court.  A total of 226 appeals had been launched, of which 15 had been awarded a compensation amount, a favourable sentence, or transfer to another penitentiary.  A working group had been set up to develop a short, easy to use guide for prisoners, informing them of their rights.   

    A training programme had been implemented for mental health service professionals, related to the de-escalation of violence and issues of chemical restraints, to ensure the protection of the rights of those with mental disabilities.   

    Questions by Committee Experts

    A Committee Expert said femicide was more than murder; it had specific gender motives and was driven by wider issues.  Could the delegation respond to this?  How were women made aware of the panic/warning application on the phone? What happened if men checked the phones? Did the police have sufficient capacity to respond?  Was it also available in rural areas? 

    Another Expert asked if all detention centres had good conditions?  Previously, the alterative to detention was determined by the asylum office, but now it was done by police officers.  Were individual assessments made before detention? 

    An Expert asked what concrete successes had been achieved in corruption cases, and what had been the challenges?  Could information about timely investigations into excessive use of force be provided? 

    One Expert said domestic violence was a real issue facing Greece.  Could information be provided on the sentences handed down and financial types of reparations to victims during the COVID-19 pandemic? 

    A Committee Expert asked for clarification on services available for trafficking victims. 

    Responses by the Delegation

    The delegation said more medical staff were joining the reception centres every day. Referrals were also made to local public hospitals for serious cases.  Two reception centres had been established on the mainland, which accepted many applicants from the islands and helped to decongest the islands’ reception centres.  There were centres for women victims of violence and accommodation to child victims was also guaranteed.  Access to compensation was provided by Hellenic authorities.  There had been a strong campaign for raising awareness of domestic violence, including a campaign on the nightly news.  The legal framework would not be changed. 

    The delegation said that at the borders, persons were obliged to remain within the premises to be registered for a minimum of five days, up to a maximum of 25.  Usually, registration was completed before the five days and then the restriction on movement was lifted.  Work was done to promote alternative measures to imprisonment, including electronic monitoring and community services. 

    The root causes of violence against women were identified as persistent gender stereotypes. The national action ban to combat violence against women addressed many areas to combat this scourge.  The panic button had specific features to ensure it remained undetectable by the abuser.  Only the victim was aware of its presence on the phone. 

    In Greece, persons with low income could apply for free legal aid.  Victims of trafficking and domestic violence could receive free legal aid regardless of their income.  The new legislation of the Penal Code made sanctions for violence against women more severe, with a victim-centred approach.

    Questions by Committee Experts

    A Committee Expert said the Committee was concerned about the system for the appointment of the most senior judges and prosecutors, including the President and Vice-President of the Council of State, the Supreme Court, and the Court of Audit. 

    Did the State party have any plans to revise the current system for appointing the highest positions of the judiciary and ensure the involvement of the judiciary in the process?  Were there any other measures in place to ensure that the highest positions of the judiciary were not subject to a strong influence from the executive and to safeguard the independence of the judiciary? 

    Greece had yet to establish a statelessness determination procedure; could the State party clarify its plans to finalise and implement a Presidential Decree establishing a statelessness determination procedure?  Would the State party consider ratifying the 1961 Convention on the Reduction of Statelessness?

    The Committee was concerned about reports that unregistered Roma people faced lengthy and costly judicial procedures to acquire Greek citizenship, and that children born to stateless parents faced substantial barriers to obtaining Greek nationality.  Did Greece have any plans to amend the list of documents required to apply for Greek nationality on the basis of birth and non-acquisition of a foreign nationality at birth, especially for children born to stateless parents?  What concrete steps were in place to eliminate the barriers that stateless Roma faced to acquiring Greek nationality and to address the risk of statelessness within this community? 

    Concerns persisted about the application of the “safe third country” concept, particularly with the designation of Türkiye as a safe third country for asylum seekers from Syria, Afghanistan, Pakistan, Bangladesh, and Somalia.  Despite the lack of readmissions to Türkiye since March 2020, Greece continued to reject numerous applications as inadmissible under this concept, leaving many individuals in prolonged legal limbo without access to international protection.  What measures had been taken to reconsider the extensive use of the safe third country concept given the non-implementation of returns to Türkiye?  How was the State party addressing the protracted legal limbo experienced by asylum seekers, and what protections and support were available for their rights?  What had been done to 

    ensure the implementation of law 4939/2022, which mandated an in-merit examination when a third country did not permit entry?  What support mechanisms were in place for those whose applications had been deemed inadmissible? 

    Another Expert said the State party had asserted that pushbacks had never been practiced as a de facto border policy of the State party and that the Hellenic police and Hellenic coast guard consistently followed the established legal and procedural frameworks.  Yet numerous reports documented instances of pushbacks, including patterns of excessive use of force, cruel, inhuman and degrading treatment, incommunicado detention, and unlawful destruction of personal belongings.  Reports before the Committee indicated that from January 2020 to June 2024, there were 1,452 incidents at the borders affecting approximately 46,649 people.  Could the State party comment on such allegations and provide information on measures in place to prevent such practices and to safeguard the principle of non-refoulement? 

    Could information be provided on the outcome of investigations undertaken by the National Transparency Authority and other monitoring mechanisms on pushback allegations, and whether there was any follow-up or redress measures taken on allegations of pushbacks?  How would Greece ensure thorough, systematic, effective, and independent investigations into allegations of pushbacks and hold those responsible accountable?  What was the outcome of the 200 documented complaints of pushback cases?  What measures were being taken to ensure that border control operations prioritised the protection of life and that rescue efforts were conducted in compliance with human rights?

    Another Expert said according to the information received, conscientious objectors who performed civilian service would receive either food and accommodation without any salary, or €223.53, which was well below the legal minimum wage.  In addition, the law provided for the possibility for persons over the age of 33 to perform only part of their service and to buy back the rest, at a significantly higher rate than that for military service.  Could the State party comment on this information?  What measures did the State party intend to take to avoid imposing repeated sanctions on conscientious objectors?  What measures did the State party intend to take to ensure non-punitive alternative civilian service?

    It was evident that Roma were considered as a vulnerable social group, and could exercise all civil and political rights.  What measures were being taken to prevent, combat and eliminate all forms of discrimination against Roma children in the education system?  What measures were being taken to limit the use of forced evictions by adopting viable alternatives to eviction, including alternative housing for evicted families?

    The Committee was concerned that stricter registration and financial regulations could compromise civil society’s capacity to monitor human rights, particularly those of asylum seekers, refugees and displaced people.  How did the State party ensure that registration and financial requirements were necessary and proportionate?  How was it guaranteed that these requirements did not indirectly discriminate? 

    The Committee continued to receive information that human rights defenders, especially those working with migrants, asylum seekers and refugees, and on pushbacks, were regularly subjected to smear campaigns, harassment, threats and criminal prosecution. In one case, a human rights defender faced restrictions, including a travel ban.  How were these measures considered proportionate?  How were human rights defenders protected in order to ensure that they could carry out their work safely?

    The Committee had received reports linking blanket bans on assemblies to political events. Could the State party confirm that authorities limited their discretion to prohibit assemblies to those strictly necessary and not merely due to their political content?  Now that the COVID-19 emergency measures had ended, what steps had the State party taken to prevent the imposition of blanket bans on all demonstrations?

    One Expert said credible reports indicated that police officers had used excessive force against, and caused serious injuries to, protestors and journalists participating in demonstrations.  What measures were being taken to ensure that police officers used the minimum force necessary in response to high-tension demonstrations?  Could updates be provided about the installation and use of surveillance systems in public demonstrations, including any efforts to establish clear criteria for identifying the persons and places subjected to surveillance, to limit the time period of data retention, and to make information about the systems publicly accessible? 

    What specific reform measures had been adopted to strengthen internal oversight and accountability within the Hellenic Police, especially regarding protest management? How was it ensured that all police officers consistently complied with the requirement to wear visible identification during public assemblies?

    Greece’s Ethics Committee had the authority to exclude media from state advertising and funds for up to two years, raising concerns that government control could have a chilling effect on press freedom.  How was it ensured that the Ethics Committee operated independently from government influence and respected journalistic integrity?  Would the State party revise the legal framework to protect journalists against the use of retaliatory lawsuits?  How were journalists informed about their rights and responsibilities during public demonstrations? 

    Responses by the Delegation 

    The delegation said the Supreme Judicial Council decided on the placements, postings and promotion of judicial officers. The principle of non-refoulment was a cornerstone of the framework for the protection of refugees. Strict adherence to this principle applied, and the Hellenic police had circulated clear guidelines for Hellenic police staff regarding the protection of those arriving in the country, particularly women and children.  It was clarified that no third country national who applied for international protection should be returned until their application had been reviewed. 

    The Hellenic police conducted border surveillance duties with full respect of the human rights of third country nationals.  Particular emphasis was given in the provisions of the European Convention of Human Rights.  Land border activities conducted by the Hellenic police aimed at detecting all illegal crossings.  Greece’s legislative framework did not have a specific framework for protecting human rights defenders.  However, an article within the Penal Code set out a special aggravating condition for crimes or misdemeanours committed out of hatred. 

    Actions taken by Hellenic authorities at the sea borders were carried out in full compliance with international obligations. Allegations of so-called pushbacks were not compatible with the well-established operations of the Hellenic authorities.  However, any allegations of pushbacks or mistreatment of third country nationals were thoroughly investigated.  Hellenic coast guards demonstrated a high level of professionalism and were trained to respect the rights of all who were crossing the borders.  From 2015 to the present, the Hellenic coast guards had rescued more than 254,000 people. 

    Several mechanisms allowed complaints against pushbacks to be submitted to the Hellenic authorities, and the coast guards had a robust disciplinary mechanism. Upon receiving a complaint on human rights violations, an administration investigation was launched, and depending on findings, disciplinary sanctions were carried out.  An independent investigation had been launched by the Greek Ombudsman, the results of which were pending.  The law aimed to ensure people in distress at sea and migrants received the highest level of assistance. 

    Greece enacted a law in 2020, followed by a presidential decree, pertaining to public assembly.  This law clearly defined the power of police authorities while ensuring protection, fully protecting the right to freedom of assembly. The Greek police had imposed assembly bans during COVID-19 based on exceptional public health concerns. Greece’s primary aim was to promote the right to assembly, not to restrict it.  In 2023, only three rallies had been banned.  The Hellenic police prioritised de-escalation and the use of “soft measures”, with force being used as a last resort.  Around 34 cases of excessive use of force had been recorded against journalists in 2021, and were sent to the Ombudsman for review. 

    The use of the surveillance system in the context of public open-air assemblies was limited to the assemblies only, without focusing on particular people and without recording sound.  Police officers were obliged to wear a badge of identity on their uniforms during the assemblies. 

    The Greek asylum service had significantly expanded its operational capacity, now operating in 26 different locations across the country, including islands such as Lesbos; these islands were the frontlines of migratory flows.  The number of employees had tripled after 2019 to manage the high volume of cases. By implementing reforms, the Greek asylum service managed to reduce the large number of pending asylum cases to around 18,000 in 2024, down from over 200,000.  Asylum seekers whose appeal had been rejected had the right to file for the annulment of the decision within 30 days.  During 2023, refugee and protection status had been granted to 873 applicants.  This number was around 400 so far in 2024. 

    Greece had designated Türkiye as a safe third country concerning asylum seekers from certain countries.  Based on this information, it could safely be assumed that Türkiye respected the principle of non-refoulment.  Since March 2020, Türkiye had not been responding to requests from nationals from countries such as Bangladesh, Pakistan, Syria and other countries and was therefore not implementing its obligations. 

    Free legal aid was provided to asylum applicants.  Appeals committees were instructed to rule that the applicants were stateless if asylum applicants could not prove which country they came from.  Acquisition of Greek citizenship did not discriminate, and children born to Greek Roma parents were awarded Greek citizenship from birth.  The Greek Citizenship Code aimed to prevent statelessness.  Stateless children enjoyed a right to Greek citizenship if they resided permanently in Greece and had between six to nine years of Greek schooling, even if they had not been born in Greece.   

    Several laws referred to the requirements of registration for non-governmental organizations.  The new registration process aimed to set the same rules for all non-governmental organizations and was free of charge.  This year, 10 registrations had been accepted and only one was rejected. 

    In July 2022, the revision of the school curriculum for primary and secondary education was completed, seeking to foster a more equitable educational environment.  In this framework, the teaching of religious education in Greece was viewed as an essential component.  Like other subjects, religious education was intended to foster critical thinking and respect for diverse beliefs and values.  This course would be provided with alternative educational opportunities for students who did not participate in religious education due to their beliefs or backgrounds.

    Military service was a universal obligation in Greece.  Those who identified as conscientious objectors could fulfil this duty through another service, other than within the armed forces.  In the case of the person banned from leaving the country, this ban had been lifted. 

    The Greek authorities had gone the extra mile regarding the adoption of a law in 2022 to strengthen the transparency of print and electronic media. The conditions which had been set out for print and electronic media enhanced the protection of journalists. Regarding the two-year penalty of exclusion from media, this only occurred following a careful examination. This two-year penalty had been approved by the federal journalistic organizations of Greece. 

    More than 200 print media and 400 electronic media had been approved in Greece.  In July 2022, a taskforce was created to focus on issues including gender-based challenges in the media area.  Most recently, a training was conducted in collaboration with the United Nations Educational, Scientific and Cultural Organization for law enforcement operators and media professionals to foster better cooperation between the two groups. From this taskforce, a law was developed to protect journalists covering sports events from violence. 

    A new programme was being designed to help Roma people with no documents acquire them.  There was no specific legislation on minority associations or organizations.  Over 200 associations had been formed by members of the Muslim minority. 

    Questions by Committee Experts

    A Committee Expert asked how often demonstrations were completely prohibited?  How were associations informed about procedural rights? 

    Another Expert asked for more information regarding the income of conscientious objectors? 

    An Expert said there were overwhelming reports that had documented instances of forced returns.  How was it possible to follow the principle of non-refoulment in these instances?   

    Another Expert thanked the delegation for their thorough answers.  Could further clarification be provided about the State party’s plan to develop a statelessness determination procedure? 

    Responses by the Delegation 

    The delegation said each case of public assembly was evaluated directly, taking into account proportionality and necessity.  The police aimed to facilitate the legal rights to assembly without incident.  The new Penitentiary Code introduced a remedy, enabling those serving in pretrial detention to lodge complaints about the conditions of their living conditions and medical care. 

    Pushbacks were not the policy of the Greek Government in any way, shape, or form; the Government policy was clear.  Greece had significantly approved the asylum system for migration and was now the fourth most productive in the European Union. The State had made all the progress it could considering the difficult region.  Legislation protected everyone, including human rights defenders. Alleged “smear campaigns” needed to be examined by the courts; they could not always be presumed. 

    Closing Remarks

    IOANNIS GHIKAS, Permanent Representative of Greece to the United Nations Office at Geneva, thanked the Committee for the frank and honest exchange.  Although progress had been made, there was still work which needed to be done. Greece had worked hard to improve the situation, particularly on migration; the number of deaths in the Aegean Sea had fallen by 40 per cent.  Greece had a vibrant society with few resources but was working to do better. 

    TANIA MARÍA ABDO ROCHOLL, Committee Chairperson, thanked the delegation for the dialogue, which had covered a wide range of subjects under the Covenant.   The Committee aimed to ensure the highest level of implementation of the Covenant in Greece. 

    ____

    CCPR.24.023E

    Produced by the United Nations Information Service in Geneva for use of the information media; not an official record.

    English and French versions of our releases are different as they are the product of two separate coverage teams that work independently.

    Follow UNIS Geneva on: Website | Facebook | Twitter | Twitter [fr] | Instagram  | LinkedIn | YouTube |Flickr

    MIL OSI United Nations News –

    January 24, 2025
  • MIL-OSI USA News: Readout of President Joe  Biden’s Meeting with Prime Minister Robert Golob of the Republic of  Slovenia

    Source: The White House

    President Joseph R. Biden, Jr. met today with Prime Minister Robert Golob of the Republic of Slovenia at the White House.  The leaders had an in-depth discussion on a range of foreign policy issues of mutual interest.  President Biden expressed his gratitude for Slovenia’s role in the historic deal that secured the release of three Americans unjustly detained by Russia, as well as an American green card holder who won a Pulitzer Prize while in Russian detention, and 12 other human rights defenders and political dissidents.  They discussed U.S.-Slovenian cooperation on clean energy and advanced technologies, and a joint approach to Western Balkans – an area of strategic interest for both  the United States and the Republic of Slovenia.  They reaffirmed their unwavering support for Ukraine as it continues to defend against Russia’s aggression.  They discussed the latest developments in the Middle East, the need to reach a diplomatic resolution to the conflict between Israel and Hezbollah that allows civilians on both sides of the Blue Line to safely return to their homes, to ensure civilians – including humanitarians and journalists – are protected, and to address the humanitarian crisis in Gaza, and to achieve a ceasefire deal that secures the release of the hostages.  President Biden underscored the need for increased defense investments to ensure NATO is properly resourced to face tomorrow’s challenges.

    ###

    MIL OSI USA News –

    January 24, 2025
  • MIL-OSI USA News: Press Gaggle by Press Secretary Karine Jean-Pierre En Route Manchester,  NH

    Source: The White House

    Aboard Air Force One
    En Route Manchester, New Hampshire

    2:06 P.M. EDT

    MS. JEAN-PIERRE: Hey, guys. Hi. Hi. I’m sorry. Hi, everybody. All right. Just a quick thing on New Hampshire at the top. So, as you know, the president is going to be joined by Senator Bernie Sanders to discuss the work the Biden-Harris administration has done to cut health care costs.

    Thanks to the Inflation Reduction Act, which every single congressional Republican voted against, health care is more accessible and more affordable than ever before.

    You will hear directly from President Biden today, who will discuss a new report that shows that nearly 1.5 million Medicare enrollees saved $1 billion on prescription drugs in just the first half of 2024 thanks to the Inflation Reduction Act.

    For years, Republican elected officials, including the previous administration, have tried to repeal the Affordable Care Act, which gives millions of Americans accessible — acc- — pardon me, access to quality, affordable health care.

    Congressional Republicans have also proposed extreme budgets that would rip aw- — rip coverage away from millions of Americans while doing Big Pharma bidding — Big Pharma’s bidding to drive up prescription drug costs, eliminate the $35 cap on insulin, and get rid of the cap on out-of-pocket drugs.

    Despite these attacks, President Biden and Vice President Harris remain focused on expanding access to health care and lowering prescription drug costs for families. And you’ll hear more from this president — from the president this afternoon.

    With that, go ahead.

    Q On the unauthorized release of classified documents, does the fact that the FBI is investigating suggest they believe it was an internal leak and not a hack?

    MS. JEAN-PIERRE: So, what I can just say — as you just stated in your question to me, the FBI is investigating this.

    I’m not going to get into details or specifics. I’m going to let the, you know, authorized personnel who are looking into it speak to this. So, again, I would refer you to those — to those specific agencies. I just don’t have anything more to add. I’m going to let the FBI do their job and do what they need to do to get to the bottom of it.

    Q Another question. On the — the seniors saving a billion dollars, does that take into account some of the higher premiums that have been reported for drug plans this year as a result of drug caps and the administration pulling billions of dollars from Medicare — the Medicare Trust Fund?

    MS. JEAN-PIERRE: I’m sorry. I’m having a little bit of a hard time hearing you. So, you said —

    Q As far as the — the billion dollars that seniors are saving —

    MS. JEAN-PIERRE: Yeah.

    Q — does that take into account the — the result of drug caps, as well as pulling from the Medicare Trust Fund?

    MS. JEAN-PIERRE: So, it’s a good question. Let me — I don’t have the specifics to that — of the billion dollars. Obviously, it’s saving Americans a lot on prescription drugs — a billion dollars, as I just stated — so I think that’s really important, and that’s what we wanted to note. The president will certainly share more.

    I don’t have the specific on that particular question about caps, so I can talk to the team and get back to you. But I think the — the most important thing here to note is that because of the Inflation Reduction Act, because of the work that this administration has done to lower costs on drug — on drug pres- — on prescription drugs, you’re seeing the results of that.

    Again, the Inflation Reduction Act — only Democrats voted for that; Republicans went against it. And now you have Medicare, who are — who’s able — Medicare is able to really negotiate lowering cost prices. And I think it’s a win. This is a win for Americans across the country.

    This is what you’re going to hear from the president. Senator Bernie Sanders — obviously, he can speak for himself — has been a huge advocate of low- — lowering drug costs. So, I think it’s important. This report obviously shows a really critical number that matters, and I think — and connected that — connecting that to the Inflation Re- — Reduction Act. It — it’s a big deal. It’s a really big deal.

    At that particular, specific question, I’m going to have to ask the team to get back to you on that.

    Go ahead, Jeff.

    Q Karine, the president told us on Friday, I believe, that he was aware of plans by Israel to respond to Iran, but he didn’t give us any details about that. Can you — and I’m not expecting you to give details —

    MS. JEAN-PIERRE: Yeah.

    Q — although you’d be welcome to.

    MS. JEAN-PIERRE: (Laughs.)

    Q But my question is: Is the fact that Secretary Blinken is in the region right now — is that delaying a response by Israel?

    MS. JEAN-PIERRE: So, a couple of things, and as — you’re right, I’m not going to — to go beyond what the president said, and I said this before — I’ve said in a briefing room a couple of times: We’re not going to preview — we don’t want to preview anything for the Iranians. That’s not something that we’re going to do from here. And at the end of the day, it’s Isr- — the Israeli government. It is their — it’s their military operation; they have to respond to that.

    Obviously, we have continued to show our support for Israelis’ security. That continues to be ironclad.

    And they — they live in a region — as you’ve heard us say many times — in a neighborhood that’s incredibly tough, and they have to deal with threats, and they have to be able to, certainly, protect themselves and react to those threats, obviously.

    As it relates to — so — so, that’s that piece, right? So, they have to speak to that — the timing. That includes the timing, what is it going to look like. They have to speak to that.

    Look, you know, you’ve seen the secretary go to the region multiple times, especially since October 7th of last year. And there — it’s — it’s diplomacy, obviously. It’s an opportunity to talk to — he’s in Israel today, but also to talk to our allies and partners in the region about what can we do to de-escalate tensions. That is something that we are very focused on: what can we do to stop the war, obviously, in Gaza, to get more humanitarian aid. And we have seen an uptick in humanitarian aid over the last couple of days. And so, that’s really critical and important.

    So, what he’s doing in the region is important to what we’re trying to do — right? — getting to that de-escalation, but also a long-lasting peace.

    I’ll — I’ll let the State Department — which they’ve spoken to a couple times already about his trip, about the meaning of it, where he’s going, what he’s going to do. Again, obviously, he’s in Israel today.

    But I — I can’t really — I can’t really dictate or speak to how Israel is going to move forward, their timing of it, their military operation. That’s something for them to speak to.

    But what Blinken — Secretary Blinken is trying to do is important to, I guess, the — the long-term goal here and what we’re trying to get, but also ending the war in Gaza and getting that humanitarian aid.

    Q Just on Israel as well. Donald Trump confirmed that he spoke with Prime Minister Netanyahu. Is the White House concerned at all about them having continued communications?

    MS. JEAN-PIERRE: Look, I’m — I’m just not going to speak to that.

    Look, as you know, we talk to the Israeli government on a regular basis on the — all the issues that I just laid out s- — in responding to Jeff. And we have a — a long friendship with the Israeli people, and we are committed to their security, obviously, as I’ve stated before. And I’m just not going to comment about the former president, who’s now a candidate, talking — talking to the prime minister.

    I would refer you to the prime minister directly if he has something more to say about that. And to the pr- — the former president.

    Q Another one on the Middle East, Karine. La- — yes- — just yesterday, more than 60 people were killed in an Israeli strike on South Beirut. In one month, more than 1,500 people have died as a result of Israeli bombardments. Is this still a targeted operation?

    MS. JEAN-PIERRE: So, look, we have certainly seen the reports, and we’re going to have co- — we’re having conversations, as you know, as I just stated, on a regular basis with the Israeli government on — on this and — and obviously other matters.

    Look — and — and I’ve said this before, we’ve said this before: Israel has the right and the responsibility to respond to threats, but obviously, they also have a responsibility that — that they — they make sure that a civilian ca- — one civilian casualty is too many, right? That they make sure that they do this in a way that we’re protecting civilian lives and so — or — and so –and we’ve said this before: Israel must take every feasible precaution to prevent civilians during this — during this time, during this operation.

    And so, we’re — continue to — to talk to them. We’re going to continue to have those discussion.

    We do not want to see one civilian, you know, killed in this, right? We want to make sure that all lives are — innocent lives are protected here. And so, we’re going to continue to have those conversations.

    Q And on today’s event, if I may. How confident are you that all the work that has been done on — on drug costs won’t be undone by a future administration?

    MS. JEAN-PIERRE: Yeah, so, look the Inflation Reduction Act is the law, as you know, right? And as I’ve stated many times, every single Republican voted against it. Obviously, they’re trying to repeal it. And — and, you know — and it’s something that’s — we see it as an odd thing to do because it’s — Democrats and Republicans see this as being very popular. And — and so — and what this law does: It delivers real benefits for Americans.

    And like I said, today the president is going to announce that seniors have saved $1 billion — right? — in the last six months because of the Inflation Reduction Act.

    And so, look, we’re going to — I think when it comes to the president and the vice president, we put the American people first. We’re focused on making sure that we deliver for them. The Inflation Reduction Act did just that, as it relates to health care costs. And obviously, the president is going to speak to this.

    But it’s the law. It’s the law. And — and I think that’s important to note as well.

    Q Karine, what — what’s the president’s political message today when he stops by the campaign office two weeks before Election Day?

    MS. JEAN-PIERRE: So, as you know, I can’t speak to politics from here. We do try to follow the law. But what I can speak to is his event — the official event that he’s going to be doing.

    Lowering drug costs — I think that’s an important message to send to the American people. That’s an important message to send to Americans: how much the Biden-Harris administration has done everything that we can to continue to lower costs as we try to rebuild the economy.

    Let’s not forget what the president and the vice president walked into. They walked into an economy that was in a downturn, and they were able to turn that around.

    But we understand that people still feel it, right? Some people wake up in the morning and they’re trying to figure out how are they going to pay for a cancer drug — right? — how are they going to pay for a drug that’s going to save their lives. And here you see this president and this vice president actually take action.

    We beat Big Pharma, which is something that many elected officials have tried to do. And this president and this vice president got it done.

    So, that’s the message, I would say, that the president is trying to send to Americans just across the country, that we’re going to continue to fight for them. I’m not going to speak to — I would say stay tuned. You’ll hear from the president later today.

    Q Is there a reason why New Hampshire today?

    MS. JEAN-PIERRE: I think, as the president says all the time, he’s a president for all Americans. Doesn’t matter if it’s a red state, blue state. We have said, when you all ask me, “Well, how is the president going to get his message out,” this is part of it, right? Going to a place like New Hampshire, or, last week, he went to Wisconsin, he went to Pennsylvania.

    He’s going across — across the country and making sure that the American people know what we have tried to do and — and are doing to make sure that we uplift Americans.

    Anybody else?

    Q There’s a report out about political fundraising targeting elderly dementia patients. Is the president concerned at all that any fundraising in his name may have done that inadvertently?

    MS. JEAN-PIERRE: Is it from one of the camp- — it’s from the —

    Q It was a CNN story today.

    MS. JEAN-PIERRE: Was it the Republican campaign?

    Q I think there is multiple.

    MS. JEAN-PIERRE: I haven’t seen that, so I can’t speak to that. Look, more broadly — speaking more broadly here and not leaning into any campaign or any political ad, we have said, like, misinformation, we understand how dangerous that could be and that type of false information — how much that could be hurtful and harmful to people. And so, we’ve always called that out in the sense of, like, people have to be — be responsible.

    And I can’t speak to this particular political ad. I haven’t seen it. And also, I just want to be careful to not speak to anything that is politically related to this election cycle.

    Go ahead.

    Q Has President Biden given officials a timeline to complete their investigation on the leaks — on the intelligence leak?

    MS. JEAN-PIERRE: I would have to refer you to — as I just mentioned, the FBI is looking into it. I would have to refer you to them. I ca- — I don’t have a timeline to speak to.

    Q Well, I mean, he’s only — you know, busy weeks ahead, you know, between the election and end of the year. There — you don’t have anything more to add on that with timing?

    MS. JEAN-PIERRE: Are you — do you mean the — the —

    Q The investigation. Just for —

    MS. JEAN-PIERRE: I just can’t speak to that. That is something that the appropriate authorities can speak to. FBI is in- — looking into it. I just can’t speak to a timeline.

    Yeah.

    Q The president is scheduled to be in Wilmington this weekend. Is there any chance he’s going to — you know, and Harris is supposed to be in Philadelphia. Is there any chance that they’re going to appear together? Do you have anything to preview on that?

    MS. JEAN-PIERRE: As you know, the president and the vice president has appeared together multiple times in the past several months or weeks and — whether it’s campaign or official.

    So, I don’t have anything else to add beyond that, sp- — especially if you’re asking me about a campaign event. But I will say stay tuned. Stay tuned.

    All right, guys. Thank you so much.

    Q Thank you.

    MS. JEAN-PIERRE: Wow, that was quick. Okay. All right.

    Q Quick and dirty.

    MS. JEAN-PIERRE: (Laughs.) Quick and dirty.

    2:20 P.M. EDT

    MIL OSI USA News –

    January 24, 2025
  • MIL-OSI USA: Cotton to Biden: Brief Congress on Leak Investigation

    US Senate News:

    Source: United States Senator for Arkansas Tom Cotton
    FOR IMMEDIATE RELEASEContact: Caroline Tabler or Patrick McCann (202) 224-2353October 22, 2024
    Cotton to Biden: Brief Congress on Leak Investigation
    Washington, D.C. — Senator Tom Cotton (R-Arkansas) today wrote a letter to President Biden asking for consistent updates on the investigation into the reported leak of top-secret documents. Senator Cotton noted that the repeated leaks from the Biden-Harris administration raise questions about whether the administration will adequately address this security breach.
    In part, Senator Cotton wrote:
    “Officials in your administration have repeatedly leaked information clearly designed to pressure Israel to curb its righteous campaign against Iran and its terrorist proxies over the last year. These leaks have ranged from reports of personal conversations between American and Israeli officials to assessments of Iranian intent and are clearly designed to handcuff Israel.”
    Full text of the letter may be found here and below.
    October 22, 2024
    President Joseph R. BidenThe White House1600 Pennsylvania Avenue NWWashington, DC 20500       
    I write to express my deep alarm about the reported leak of top-secret American documents regarding Israel’s planned military response against Iran. This leak is an outrageous betrayal of an ally and a breach of trust that will undermine our relationship with partners for years to come.
    Officials in your administration have repeatedly leaked information clearly designed to pressure Israel to curb its righteous campaign against Iran and its terrorist proxies over the last year. These leaks have ranged from reports of personal conversations between American and Israeli officials to assessments of Iranian intent and are clearly designed to handcuff Israel.
    To cite a few examples:
    CNN recently cited unnamed U.S. officials claiming Israel’s has finalized a counterstrike plan to hit Iran before the U.S. election and provided details about that plan.
    You publicly discussed the timing of Israel’s retaliation again Iran for their latest attack saying on October 3 that it would not “happen today.”
    The Washington Post quoted an unnamed U.S. official about Israel’s plans for the ground invasion of Lebanon before the IDF launched the operation.
    In each instance, these leaks are providing aid to Israel’s—and America’s— enemy about likely Israeli attack plans and limiting Israeli freedom of action.
    Given this track record I am deeply concerned as to whether your administration will adequately address this serious security breach. Therefore, I request that you provide regular biweekly updates about the investigation to the Senate Armed Services Committee and Senate Select Committee on Intelligence.  
    Sincerely,
    Tom CottonUnited States Senator                     

    MIL OSI USA News –

    January 24, 2025
  • MIL-OSI USA: NEWS: Sanders Leads Call on Biden, Blinken, Garland to Investigate Israeli Attack on American Journalist

    US Senate News:

    Source: United States Senator for Vermont – Bernie Sanders
    WASHINGTON, Oct. 22 — Sen. Bernie Sanders (I-Vt.), Sen. Peter Welch (D-Vt.), Rep. Becca Balint (D-Vt.), and nine other Members of Congress today wrote to the Biden Administration demanding the United States open an independent investigation into an Israeli attack on a group of journalists, including American journalist and Vermonter Dylan Collins.
    “It has now been more than one year since Mr. Collins was injured in a targeted Israeli strike while on assignment for AFP,” wrote the members in the letter to President Biden, U.S. Secretary of State Antony Blinken, and U.S. Attorney General Merrick Garland. “To date, Mr. Collins has received no explanation for the attack, and there have been no steps toward accountability. Given the inaction of Prime Minister Benjamin Netanyahu’s government, the United States must open an independent investigation into this incident.”
    On October 13, 2023, American journalist Dylan Collins was injured in a targeted Israeli strike while on assignment for Agence France-Presse (AFP). Collins was part of a group of journalists covering the conflict between Israel and Hezbollah in southern Lebanon. The group was clearly marked as press and had selected an open and highly visible position to minimize the risk of misidentification – one that was clearly visible to several Israeli military positions. The group had been filming from that location for close to an hour when they were struck twice by Israeli tank rounds and machine gun fire.
    Reuters journalist Issam Abdallah was killed. Six other journalists from Reuters, AFP, and Al Jazeera were seriously wounded. Collins – the only U.S. citizen involved in the incident – sustained shrapnel wounds to his face, arms, and back. Despite Collins’s efforts to apply a tourniquet, his colleague lost her leg in the attack.
    Six rigorous investigations – by UNIFIL, Reuters, AFP, Human Rights Watch, Amnesty International, and the Netherlands Organisation for Applied Scientific Research – have all independently corroborated these details, based on video footage and multiple first-hand accounts, and concluded that it was an unlawful attack on civilians. 
    In response to an earlier letter sent in May by the Vermont delegation, the State Department indicated that the incident was under investigation in Israel. In fact, more than one year later, no survivors or other witnesses have been approached to provide testimony. No updates have been provided to the public, the survivors, or the media organizations that they worked for. Given the Israeli government’s failure to investigate numerous similar attacks on journalists, “there is no reason to believe the Netanyahu government will take any action,” wrote the members. “The U.S. government must therefore act to ensure accountability for attacks on its citizens.
    In addition to criminal culpability under the War Crimes Act of 1996 (18 USC 2441), as well as other relevant U.S. and customary international law, the U.S. must also credibly establish whether the Israeli attack violated applicable laws governing the use of U.S. security assistance. 
    This is particularly important as the U.S. Congress will soon consider Joint Resolutions of Disapproval – introduced in September by Sen. Sanders, Welch, and Merkley – regarding the sale of additional arms to Israel, including 32,739 additional 120mm tank cartridges, the same rounds used against Collins and his journalist colleagues.
    Joining Sanders on the letter are Sens. Peter Welch (D-Vt.), Jeff Merkley (D-Ore.), Chris Van Hollen (D-Md.), and Reps. Becca Balint (D-Vt.), Cori Bush (D-Mo.), Pramila Jayapal (D-Wash.), Barbara Lee (D-Calif.), Jim McGovern (D-Mass.), Delia Ramirez (D-Ill.), Melanie Stansbury (D-N.M.), and Rashida Tlaib. (D-Mich.).
    “Mr. Collins deserves better from his own government,” wrote the members.
    Read the full letter, here.

    MIL OSI USA News –

    January 24, 2025
  • MIL-OSI USA: Kaine, Colleagues Urge President Biden to Protect Undersea Cables from China, Russia

    US Senate News:

    Source: United States Senator for Virginia Tim Kaine
    WASHINGTON, D.C. – U.S. Senator Tim Kaine (D-VA), a member of the Senate Foreign Relations Committee, joined a bipartisan group of colleagues in sending a letter to President Biden expressing concerns about the security of the global network of undersea communications and energy cables upon which American workers and businesses rely.
    More than 95% of international internet traffic travels via these undersea cables, resulting in trillions of dollars in financial transactions each day. The locations of these cables are often openly published to prevent accidental damage.
    As American companies look to expand and invest in this critical infrastructure, it is imperative that the United States has a complete understanding of existing vulnerabilities, especially those that impact our economic and national security.
    “America’s adversaries have been developing their capabilities to attack or disrupt critical undersea infrastructure. There is a long tradition, dating back well over a century, of belligerents attacking their opponents’ underwater communications lines in the first phase of a conflict,” the senators wrote. “Given these threats and challenges, it is imperative that the United States undertake a review of existing vulnerabilities to global undersea cable infrastructure, including the threat of sabotage by Russia as well as the growing role of the People’s Republic of China in cable laying and repair. If we are truly to deepen vital commercial and security relationships with willing partners and allies, this must be a national priority.”
    In addition to Kaine, U.S. Senators Todd Young (R-IN), Chris Murphy (D-CT), Marco Rubio (R-FL), Pete Ricketts (R-NE), Jeanne Shaheen (D-NH), Dan Sullivan (R-AK), and Brian Schatz (D-HI) also signed the letter.
    Read the full text of the letter to President Biden here and below:
    Dear Mr. President: 
    We write to you to express our concern about the security of global undersea communications and energy cables, especially those that impact America’s economic and national security and that of our allies and partners. As you are well aware, more than 95% of international internet traffic travels via undersea cables, including trillions of dollars in financial transactions each day. Moreover, the exact locations of most of these cables are openly published in order to reduce the likelihood of accidental damage from ships’ anchors or fishing activities. Internet and telecommunications providers, including American firms, intend to invest billions of dollars in expanding the global network of undersea communications cables. Additionally, energy transmission cables are proliferating as governments look to new sources of electricity generation. 
    America’s adversaries have been developing their capabilities to attack or disrupt critical undersea infrastructure. There is a long tradition, dating back well over a century, of belligerents attacking their opponents’ underwater communications lines in the first phase of a conflict. For example, in both World Wars, Britain’s first naval actions were to cut the telegraph cables connecting Germany to the Americas, and in 1918 a German U-boat severed lines connecting New York to both Nova Scotia and Panama. In addition to this kind of overt, kinetic attack, the nature of undersea infrastructure increases the feasibility of gray zone actions with plausible deniability. It is difficult to distinguish between an accident and a deliberate action on the seabed, and more difficult still to confirm who conducted such an action. On top of this, because this infrastructure is privately owned by commercial enterprises, repairs are the responsibility of these private companies, which are likely not prepared to maintain them under wartime conditions and are likely to seek the most cost-effective repair and maintenance options—even if that option is owned or operated by a foreign adversary or strategic competitor. 
    Given these threats and challenges, it is imperative that the United States undertake a review of existing vulnerabilities to global undersea cable infrastructure, including the threat of sabotage by Russia as well as the growing role of the People’s Republic of China in cable laying and repair. If we are truly to deepen vital commercial and security relationships with willing partners and allies, this must be a national priority. We respectfully request that you provide responses to the following questions and direct senior administration officials to brief Members of Congress, including members of relevant committees of jurisdiction, on your plans and the resources and authorities needed to carry them out.
    1) What is your Administration’s overall strategy to guarantee the security of America’s undersea infrastructure and to promote the security of that of our allies and partners? 
    2) The National Defense Authorization Act for Fiscal Year 2020 established the Cable Security Fleet (CSF). If authorized and sufficiently funded, what would be your assessment of the ideal size of the U.S.-flagged and -operated cable laying and repair vessel fleet to ensure sufficient cable repair capacity during a conflict or national emergency? How can the United States work with trusted allies and partners for additional capacity to support the expansion and repair of trusted undersea cable networks? 
    3) What is the Administration’s strategy to encourage other nations to choose trusted suppliers in their selection of undersea cable manufacturers, particularly in any nation of concern or which may be vulnerable to coercion or covert action by America’s adversaries? 
    4) How is the Administration working with the private sector to ensure that commercial enterprises’ investments in undersea cables align with U.S. national security priorities? 
    5) How do you intend to protect the physical security of undersea cables in the open ocean, including through any interpretation of customary international law? 
    6) How is the Administration working multilaterally to collectively enhance security and monitor potential threats to undersea infrastructure, including through NATO, the Quad, and the Indo-Pacific Economic Framework for Prosperity? 
    Thank you for your prompt attention to this request. As Congress works to continue its oversight of national security, it is vital that we understand the current state of the information backbone of our economy and efforts to protect it. 
    Sincerely, 

    MIL OSI USA News –

    January 24, 2025
  • MIL-OSI Canada: Deputy Prime Minister announces action to protect and create good-paying jobs for Canadian workers

    Source: Government of Canada News

    Workers are at the heart of Canada’s economy. For our economy and for every generation to reach their full potential, Canadian workers need good-paying jobs. We’re doing this by making investments that increase productivity, boost innovation, and accelerate the flow of capital into Canada. And we’re doing everything we can to protect Canadian workers from unfair competition.

    October 22, 2024 – Ottawa, Ontario – Department of Finance Canada
     

    Workers are at the heart of Canada’s economy. For our economy and for every generation to reach their full potential, Canadian workers need good-paying jobs. We’re doing this by making investments that increase productivity, boost innovation, and accelerate the flow of capital into Canada. And we’re doing everything we can to protect Canadian workers from unfair competition.

    Today, the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, alongside the Honourable Randy Boissonnault, Minister of Employment, Workforce Development and Official Languages, and the Honourable Jean-Yves Duclos, Minister of Public Services and Procurement and Quebec Lieutenant, announced further action to protect and create jobs for Canadian workers.

    First, the Deputy Prime Minister and Minister of Finance announced that effective today, imports of certain Chinese-made steel and aluminum products are subject to a 25 per cent tariff. These tariffs will help level the playing field to protect Canadian workers whose job security is being put at risk by China’s unfair, intentional, and state-directed trade practices of oversupply and overcapacity, as well as its lack of robust environmental and labour standards. Through this action in lockstep with key trading partners, Canada is also preventing trade diversion with these tariffs.

    Recognizing that Canadian businesses may need time to adjust, the federal government is prepared to offer tariff relief in certain, exceptional circumstances to help make sure that Canadian workers aren’t punished as new supply chains are established. Canadian businesses can apply for relief by emailing remissions-remises@fin.gc.ca. Requests received before November 8, 2024, will be processed on a priority basis.

    Second, the Minister of Employment, Workforce Development and Officials Languages announced further robust reforms to the Temporary Foreign Worker Program to ensure the labour market is fair for Canadian workers. Some employers are using the Temporary Foreign Worker Program to hire from abroad at lower wages than what they would pay Canadians. This undercuts Canadians’ wage growth and the number of available jobs, puts temporary foreign workers into precarious situations, and erodes confidence in our immigration system.

    To protect Canadian workers from unfair wage competition, starting November 8, 2024, the hourly wage criteria for the high-wage stream will be raised to 20 per cent above the median hourly wage—between $5 per hour and $8 per hour—depending on the province or territory. This will incentivize employers to hire Canadians before turning to the program and encourage greater wage growth. And to crack down on employers who provide false information on their applications, starting October 28, 2024, the government is implementing stringent new data verification processes, which will ensure only genuine and legitimate job offers are approved.

    Third, the Ministers launched new measures to secure Canada’s artificial intelligence (AI) advantage, including the $200 million Regional Artificial Intelligence Initiative. AI is already unlocking growth and job opportunities in industries across the economy and helping many Canadian workers become more productive. In the past year, job growth in AI increased by nearly one third in Canada—among the highest growth of any sector. And most AI jobs pay well above the average income.

    Today, the government is launching two key parts of its $2.4 billion AI package to ensure the economic benefits of AI reach all corners of our country. Through the new $200 million Regional Artificial Intelligence Initiative, Canada’s Regional Development Agencies will support AI start-ups to bring new technologies to market, and drive AI adoption by small businesses in critical sectors across the economy, such as agriculture, clean technology, health care, and manufacturing. In addition, the National Research Council of Canada Industrial Research Assistance Program is receiving $100 million to help small- and medium-sized businesses scale up and increase productivity by building and deploying new AI solutions.

    The federal government’s economic plan is taking action to protect and create good-paying jobs for Canadian workers. We are protecting workers from unfair Chinese competition and from having their wages undercut. And we are investing in the technologies that create good-paying jobs, accelerate innovation, and boost productivity, so workers can focus on what they do best. This is all part of our plan to raise wages, increase living standards, and build a Canada that’s fairer for every generation.

    Katherine Cuplinskas
    Deputy Director of Communications
    Office of the Deputy Prime Minister and Minister of Finance
    Katherine.Cuplinskas@fin.gc.ca

    MIL OSI Canada News –

    January 24, 2025
  • MIL-OSI Canada: Manitoba Government Increases Investment in Ste. Agathe Infrastructure Project

    Source: Government of Canada regional news

    The Manitoba government is investing $48.6 million in a major bridge crossing, named after Louis Riel, the first premier of Manitoba, to ensure the safe, efficient movement of people, goods and services, Premier Wab Kinew and Transportation and Infrastructure Minister Lisa Naylor announced today.

    “Our government is committed to improving infrastructure across the province and will continue to consult with municipalities to identify the highest priority projects.” said Naylor. “The rehabilitation of the Louis Riel Bridge will improve safety as well as enhance and streamline inter-community travel.”

    The major structure rehabilitation contract for the Louis Riel Bridge on Provincial Road (PR) 305 began this August. The rehabilitation of the bridge will include major foundation works and feature the construction of a new bridge riding surface, which will be wider than the existing with two 3.7-metre travel lanes with 1.8-metre shoulders, plus a 2.7-metre-wide pedestrian pathway. The rehabilitation work will be completed in stages with both stages scheduled to be completed by September 2026. Completion of all work is scheduled for later in the fall-winter of 2026, noted the minister.

    “Our government is committed to improving infrastructure across the province,” said Naylor. “This project will improve safety and enhance inter-community connections.”

    The Louis Riel Bridge in Ste. Agathe was originally constructed in 1959 and is a vital east-west link over the Red River connecting people, businesses and agricultural land to Provincial Trunk Highway (PTH) 75. Named in honour of Louis Riel, founder of the province of Manitoba and his contributions toward justice for Métis rights and cultural representation, investment in the ongoing integrity of this structure is a priority for the Manitoba government, noted the premier.

    “The rehabilitation of the Louis Riel Bridge is an important project for our community and the region. This bridge serves as a critical link for residents, businesses, and agricultural operations, and its modernization will ensure safe and efficient travel for all,” said Mayor Chris Ewen, Ritchot. “We are deeply grateful for the provincial investment in this infrastructure, which honours the legacy of Louis Riel and supports our growth and prosperity for generations to come.”

    The bridge will remain open during construction with a single lane controlled by signal lights at each end of the bridge. This is an active construction area and drivers are encouraged to move through with extra caution and consider allowing extra time when traveling in this area.

    Information on this project, frequently asked questions and design details can be found on the Manitoba Transportation and Infrastructure website at http://www.gov.mb.ca/mti/projects.html.

    This project supports Manitoba’s multi-year infrastructure investment strategy, which outlines planned strategic investments in roads, highways, bridges, airports and flood protection over the next five years in Manitoba.

    For more information on Manitoba’s Multi-Year Infrastructure Investment Strategy, visit: http://www.gov.mb.ca/mti/myhis/index.html.

    MIL OSI Canada News –

    January 24, 2025
  • MIL-OSI USA: CISA and USPIS Release Two Election Mail Security Resources

    News In Brief – Source: US Computer Emergency Readiness Team

    WASHINGTON – Today, the Cybersecurity and Infrastructure Security Agency (CISA) and the United States Postal Inspection Service (USPIS) joined together to release an Election Mail Security Public Service Announcement (PSA) and a training video for election officials on securely and safely handling potential toxic hazards in election mail. The PSA affirms the incredible efforts local and state officials have invested, through the federal government, in ensuring security and integrity of the elections process, and specifically how seriously CISA and USPIS take the security of election related mail. As CISA leads federal efforts to ensure election officials have the resources they need to defend against the range of cyber and physical threats to election infrastructure, USPIS ensures the safe and secure delivery of election mail, and the protection of election officials from potentially dangerous mail.    

    “CISA, alongside our federal partners like the US Postal Inspection Service, are committed to helping those on the frontline of our democratic process have the tools and resources necessary to accomplish their incredible mission while staying safe from the range of hazards they may face,” said CISA Director Jen Easterly. “Together we can protect America’s election infrastructure against new and evolving threats and that is our continued goal for Protect 2024 here at CISA.”  

    “We have a shared commitment, with our close partner CISA, to ensure the safety of election workers and the security of election mail, in part through the education and empowerment of voters and election officials,” said Chief Postal Inspector Gary Barksdale. “Today’s releases are another way we are delivering on that commitment.”  

    Everyone has a part to play when it comes to helping to ensure the safe and secure delivery of election mail. Americans can do the following:   

    • Don’t let incoming or outgoing mail sit in your mailbox.  Pick up election mail from your mailbox as soon as its delivered.  
    • Don’t leave your mail unattended for extended periods.  
    • Return outgoing election mail in your local post office or hand directly to a postal employee 
    • Many states have online tracking tools to help track the status of your ballot.  If you believe there’s an issue with the receipt or delivery of your ballot, contact your local election office to verify the status of your ballot prior to contacting USPS.  

    To report suspicious mail and election mail-related security or criminal incidents contact USPIS at (877) 876-2455 or you can report election mail crimes at uspis.gov/report. To view the CISA and USPIS PSA and training video, please visit CISA and USPIS Election Mail Security Resources on CISA.gov. and check out #Protect2024 for the latest information regarding election security at CISA. 

    ###

    About CISA 

    As the nation’s cyber defense agency and national coordinator for critical infrastructure security, the Cybersecurity and Infrastructure Security Agency leads the national effort to understand, manage, and reduce risk to the digital and physical infrastructure Americans rely on every hour of every day.

    Visit CISA.gov for more information and follow us on X, Facebook, LinkedIn, Instagram. 

    MIL OSI USA News –

    January 24, 2025
  • MIL-OSI USA: U.S. Small Business Administration and Department of Defense Celebrate Successful First Year for the Small Business Investment Company Critical Technology Initiative

    Source: United States Small Business Administration

    WASHINGTON– Today, Administrator Isabel Casillas Guzman, head of the U.S. Small Business Administration (SBA) and Secretary Lloyd J. Austin, head of the U.S. Department Secretary of Defense (DoD) announced 13 funds approved to be licensed by the SBA under the Small Business Investment Company Critical Technology Initiative (SBICCT), a joint DoD and SBA initiative to attract and scale private investment in technology areas critical to economic and national security made possible by historic modernization by SBA in its Small Business Investment Company (SBIC) program under the Biden-Harris Administration, which established a new SBA government-guaranteed loan, the “Accrual Debenture” for private investment funds. The 12 firms managing the 13 funds collectively plan to raise $2.8 billion in private capital matched with SBA-guaranteed loans to invest in over 1,000 innovative startups and small businesses developing technologies from advanced materials to space and hypersonic technologies.

    “The SBA and DoD entered into this historic initiative to leverage the SBA’s long-standing SBIC program and its recent transformations, so that we can ensure America maintains its global competitive edge in critical technologies,” said SBA Administrator Guzman. “These early strong results and expanded network of investors will provide America’s innovators, producers, and supply chains with the vital funding needed to meet challenges and advance our national and economic security.”

    “This first group of SBICCT Initiative funds represents a consequential milestone in demonstrating the power of public-private partnerships to build enduring advantage by growing and modernizing our supply chains, strengthening our economic and national security, and benefiting the development and commercialization of critical technologies that are key drivers of our U.S. industrial base,” said Heidi Shyu, Under Secretary of Defense for Research and Engineering. “I am proud of the collaborative work between the Office of Strategic Capital (OSC) and our SBA OII colleagues to stand up and advance this important program.”

    Funds licensed by the SBA under the SBICCT Initiative are eligible for access to SBA-guaranteed loans designed to enhance fund-level investment returns. Licensees have access to up to $175 million in SBA Debenture loans through the SBIC program. The new Accrual Debenture loans align with the cash flows of longer duration and equity-oriented investment strategies that tend to invest in innovative new technologies and the longstanding SBA Standard Debentures align to credit strategies. Through the SBICCT Initiative, licensed funds also gain access to DoD provided program-related initiatives and benefits intended to drive value to each Licensee’s portfolio of fund investments.

    The SBICCT Initiative was announced by Secretary of Defense Lloyd Austin and SBA Administrator Isabel Guzman in December 2022. Through this first-of-its-kind partnership, DoD’s Office of Strategic Capital (OSC) and SBA’s Office of Investment and Innovation (OII) aim to increase private investment in critical technologies, including component-level technologies and production processes vital to U.S. economic and national security interests.

    The SBICCT Initiative formally launched and began accepting SBIC applications in Fall 2023. Over 100 funds have expressed interest in the initiative, and since the formal launch, 22 took the significant step to submit a formal application and undergo the rigorous underwriting and due diligence process.

    In early July 2024, the SBA granted the first SBICCT Initiative license. Just three months later, as of October 22, 2024, a total of 13 funds within the ‘Green Light’ approval are to raise private capital and be licensed by SBA. The funds span all 14 DoD Critical Technology Areas,  component-level technologies, and production processes. They represent all parts of the capital stack across stages of investment ranging from seed stage venture to later stage buyout and from venture debt to special situations credit.

    Interest in the SBICCT Initiative continues to grow, with additional applications expected in future quarterly filing windows. The next filing deadline is November 15, 2024. For more information on the SBICCT Initiative and the application process, please see the Investment Policy Statement.

    ###

    About SBA’s Office of Investment and Innovation (OII)
    The U.S. Small Business Administration (SBA) Office of Investment and Innovation (OII) leads programs that provide the U.S. growth-oriented small business and startup community with access to financial capital, networks, assistance, and R&D funds to develop commercially viable innovations. Our work is underpinned by public-private partnerships that help small businesses on their trajectory from idea to IPO. To learn more, visit OII on SBA.gov website.

    About the U.S. Small Business Administration 
    The U.S. Small Business Administration helps power the American dream of business ownership. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow, or expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.

    MIL OSI USA News –

    January 24, 2025
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