NewzIntel.com

Category: Australia

  • MIL-OSI Submissions: Tech and Efficiency – “AI will replace hard skills” says recruitment CEO, emphasis on soft skills needed

    Source: Robert Walters

    In a recent study, recruitment specialists Robert Walters have unveiled the increasing significance of soft skills in today’s workplace. The research, which surveyed over 2,000 white collar professionals, found that 96% believe that soft skills are either equal to or more important than hard skills. Furthermore, an overwhelming 92% of employers admitted to rejecting candidates due to insufficient soft skills.

    The Rise of AI: A Game-Changer for Hard Skills

    Robert Walters CEO for Australia and New Zealand, Shay Peters, attributes this paradigm shift to the rapid emergence of AI. Peters stated, “The growth of AI has been remarkable in recent years, and I predict that it will eventually replace almost all hard skills in white collar industries. This means that soft skills will take centre stage in talent acquisition, as the human touch becomes the distinguishing factor.”

    The Crucial Role of Soft Skills

    According to 90% of recruiters, a lack of soft skills often underpins failures in the workplace. Consequently, hiring managers are increasingly willing to pay a premium for candidates who possess exceptional soft skills.

    Peters further highlighted the growing emphasis on soft skills in client conversations, stating, “Clients are now placing greater importance on qualities such as effective communication, negotiation, and problem-solving. These attributes will set candidates apart from their peers as we continue to see AI replace hard skills. Additionally, clients are expressing the need for candidates to not only utilise AI but also collaborate with it effectively.”

    Gen Z: Leveraging the AI Advantage

    Peters also noted that Gen Z individuals have a distinct advantage, given their innate ability to adapt seamlessly to technology and incorporate it into their work practices. The ability to work harmoniously with AI is becoming an increasingly sought-after skill.

    Understanding Soft Skills

    Soft skills encompass personal attributes and interpersonal abilities that enable individuals to interact effectively with others. Unlike technical skills, which are specific and measurable, soft skills are broader and encompass traits such as communication, teamwork, and problem-solving. These skills are indispensable for fostering a positive work environment and facilitating professional growth.

    According to new research released by Indeed which asked employers what the most important skills for the future of work are, communication came out as most important skill in the future, with 55% of employers citing this. This is followed by teamwork and collaboration (52%), adaptability (48%), problem solving (48%) and tech savviness (40%).

    Investing in Soft Skills Development

    CEO Shay Peters stressed the urgency for employees and candidates to prioritise the development of their soft skills. Peters remarked, “In today’s highly competitive job market, where countless highly skilled individuals are vying for positions, your soft skills will be the ultimate differentiator. As AI inevitably replaces hard skills in white-collar industries, your soft skills will be all you have left. Investing time in improving these skills will ensure you stand out when the time comes.”

    AI can never replace human interaction and face to face communication which is why this is becoming a priority for employers. This balance between AI’s capabilities and human strengths is shaping the future of work, making soft skills a key differentiator in career success.

    About Robert Walters  

    Robert Walters is one of the world’s leading specialist professional recruitment consultancies with a global presence spanning 31 countries. The New Zealand business recruits across the fields of accounting & finance, property, general management, human resources, information technology, legal, risk management, compliance & audit, sales, marketing & communications, secretarial & business support and supply chain & procurement. 

    MIL OSI – Submitted News –

  • MIL-OSI Australia: NSW Government reaches pay agreement for 50,000 health workers

    Source: New South Wales Premiere

    Published: 30 October 2024

    Released by: Minister for Health, Minister for Industrial Relations

    The NSW Government has reached an agreement with the Health Services Union (HSU) to increase wages and deliver benefits from salary packaging for more than 50,000 health workers across the state.

    The agreement covers a range of professions including allied health roles, hospital cleaners, scientists, security officers, patient transport officers and more.

    Under the Government’s new Fair Pay and Bargaining Policy, the NSW Government and the HSU have agreed to a one year pay increase of 3.5 per cent plus 0.5 per cent in superannuation.

    The agreement will also provide 100 per cent salary packaging, delivering a key election commitment.

    This will increase the share of salary packaging benefits for eligible workers from 70 per cent to 100 per cent with effect from 1 July 2024.

    Under current salary packaging arrangements, the resulting tax savings are split between health workers and NSW Health.

    Cost of living protection has also been agreed with a $1,000, one-off cost of living payment if the 12-month annual average Sydney Consumer Price Index rate exceeds 4.0 per cent in the year to the March quarter of 2025.

    The agreement also includes award reform that commits all parties to working together to create modern, fit for purpose awards.

    This includes a memorandum of understanding (MOU) that commits to working cooperatively to achieve a 3-year wage agreement on the expiry of the 1-year award.

    This deal forms part of the Government’s comprehensive plan to deliver the long-term repair of healthcare across NSW.

    It follows a 4.5 per cent pay rise delivered last year, which was the highest in more than a decade.

    After 12 years of neglect and a lack of investment in our health system, the Minns Labor Government is rebuilding this essential service by investing in the workers that deliver them.

    Quotes attributable to Minister for Health Ryan Park:

    “The NSW Government is pleased to announce an agreement has been reached for a salary increase for more than 50,000 public health workers including Aboriginal Health Workers, dental officers, psychologists, security officers, patient support assistants, hospital cleaners, cooks, technicians, interpreters and administration staff.

    “The NSW Government and the HSU have agreed to work together to identify system changes, productivity outcomes, benefits from award reform and savings.

    “This has been a collaborative approach, which builds on the 4-year agreement reached with paramedics late last year.

    “The agreement delivers on a key election commitment to deliver 100 per cent salary packaging and abolish the wages cap.”

    Quotes attributable to Minister for Industrial Relations Sophie Cotsis:

    “The Minns Labor Government continues the work of rebuilding the state’s essential services and the industrial relations system.

    “That work started with scrapping the Liberals and Nationals wages cap and introducing a new bargaining framework.

    “We were elected on a mandate to fix the recruitment and retention crisis in essential services and that is what we are doing.”

    Quotes attributable to HSU Secretary Gerard Hayes:

    “This is a generational advance for 50,000 health workers who have earned every cent of this pay rise. The reform to salary packaging will be life-changing for hard working people on modest incomes.

    “Health workers deserve 100 per cent of their salary packaging tax benefits and this shows the strength of a union that stands together to get things done.

    “After years of neglect in a struggling workforce, we demanded the government do better and secured a deal that finally recognises health workers. We pay tribute to the Government for honouring its commitment.”

    MIL OSI News –

  • MIL-OSI Australia: Health and Safety Representatives to help make a difference

    Source: New South Wales Premiere

    Published: 30 October 2024

    Released by: Minister for Work Health and Safety

    SafeWork NSW is due to launch three powerful videos about the importance of Health and Safety Representatives (HSR) and workplace safety, at their one-day free HSR refresher training session on Wednesday 30 October 2024.

    The videos highlight the critical role HSRs play in fostering a safe working environment. In one segment, Laura Anderson, an intensive care nurse at Shoalhaven Hospital, recalls the shock of hearing her colleague scream during an avoidable patient attack. 

    As a proud HSR, Laura reflects, “I do find it very rewarding. The staff are very thankful.” She also emphasises the importance of translating safety into action, stating, “If we are keeping our colleagues safe, that in turn keeps the patients safe.”

    HSRs play a pivotal role in gathering information and resolving health and safety issues for their work group.

    SafeWork NSW is partnering with Unions NSW to deliver the full-day event in Surry Hills where a range of initiatives will provide more clarity on HSR roles and their powers under Work Health and Safety (WHS) laws. The event will include:

    • Sessions with the Minister of Work Health Safety Sophie Cotsis, Assistant Secretary of Unions NSW Thomas Costa and SafeWork NSW A/Deputy Secretary Trent Curtin
    • An explanation of the WHS legislation, and how it applies to elected HSR roles
    • A presentation from Debra Pascall from the Family and Injured Workers Support and Advisory Group discussing her son Ben’s story, who died in a workplace-related incident
    • Information about powers under the WHS legislation to issue Provisional Improvement Notices (PINs) and how to direct unsafe work to cease
    • The ability to network with fellow HSRs and share experiences
    • The latest updates and insights on workplace consultation and safety standards.

    The initiative will also cover essential topics including the management of psychosocial hazards such as bullying, excessive workloads, violence and the prevention of sexual harassment.

    HSRs can register for the event here: www.safework.nsw.gov.au/events/safework-events/hsr-forum

    Further information about HSRs can be found here: https://www.safework.nsw.gov.au/safety-starts-here/consultation-at-work/health-and-safety-representatives

    You can view the three-case study promotional video here: HSR forum promotional video

    This event follows the highly successful Regional Workplace Consultation and HSR forums held earlier this year which attracted over 600 attendees across nine locations.  Participants benefited from 230 evaluations, 320 psychosocial workshops, and 280 high risk harm workshops.

    Quotes attributable to Minister for Work Health and Safety Sophie Cotsis

    “The day-long event reinforces the important role of health and safety representatives and will help participants receive the latest information from SafeWork NSW to help them meet their obligations and network with other HSRs.”

    “The videos show how Health and Safety Representatives play a critical role in identifying and resolving workplace risks on behalf of their work group, a process which creates open and positive safety cultures.

    “I commend the HSRs in the case studies for standing up, speaking out and advocating for workers. Every worker has the right to return home safely at the end of every workday.”

    MIL OSI News –

  • MIL-OSI Australia: Internationally renowned mental health researcher Professor Helen Christensen AO named NSW Scientist of the Year

    Source: New South Wales Premiere

    Published: 30 October 2024

    Released by: The Premier, Minister for Innovation, Science and Technology

    Scientia Professor Helen Christensen AO from UNSW Sydney and the Black Dog Institute is being recognised as the NSW Scientist of the Year in the 2024 Premier’s Prizes for Science & Engineering.

    Professor Christensen is one of 10 exceptional researchers, innovators, and educators being honoured at the Premier’s Prizes for Science & Engineering, held at Government House in Sydney tonight.

    Professor Christensen’s selection as Scientist of the Year is in recognition of her pioneering work in digital mental health research, which has significantly influenced mental health care practice both in Australia and internationally.

    In 2000, she developed the digital intervention program, MoodGYM, to reduce depression in young people, which has been used by millions of people across more than 160 countries.

    She served as the Executive Director and Chief Scientist at the Black Dog Institute from 2011 to 2021, while her work creating a model of suicide prevention has been incorporated into national and state suicide prevention plans.

    She will receive a trophy and $60,000 in prize money.

    Nine category winners are also being announced tonight, each receiving a trophy and $5,000 in prize money:

    • Excellence in Mathematics, Earth Sciences, Chemistry or Physics
      Professor Susan Coppersmith, UNSW Sydney
    • Excellence in Biological Sciences (Ecological, environmental, agricultural and organismal) Distinguished Professor Ian Paulsen, Macquarie University
    • Excellence in Medical Biological Sciences (Cell and molecular, medical, veterinary and genetics)
      Professor Stuart Tangye, Garvan Institute of Medical Research
    • Excellence in Engineering or Information and Communications Technologies
      Distinguished Professor Willy Susilo, University of Wollongong
    • NSW Early Career Researcher of the Year (Biological Sciences)
      Dr Ira Deveson, Garvan Institute of Medical Research
    • NSW Early Career Researcher of the Year (Physical Sciences) –
      Dr. Jiayan Liao, University of Technology Sydney
    • Leadership in Innovation in NSW
      Distinguished Professor Karu Esselle, University of Technology Sydney
    • Innovation in NSW Public Sector Science and Engineering
      Dr Annette Cowie, NSW Department of Primary Industries and University of New England
    • Innovation in Science, Technology, Engineering or Mathematics Teaching in NSW
      Jodie Attenborough, Tottenham Central School

    Full details of all winners can be found at:

    NSW Premier’s Prizes for Science & Engineering | Chief Scientist

    Premier Chris Minns said:

    “These awards are about recognising and thanking our state’s most outstanding scientists, engineers, and teachers.  

    “Professor Christensen’s work has helped millions of people worldwide.

    “Her online self-help courses to help address common mental health disorders have been pioneering.

    “Mental health support is vital for so many people. Professor Christensen has improved support for people in NSW, and people around the world.

    “Mental health is one of the pressing challenges of our time, and Professor Christensen’s innovations have made an important impact.”

    Minister for Innovation, Science and Technology Anoulack Chanthivong said:

    “Tonight is the NSW Government’s chance to recognise some of the leaders from NSW’s world-class research and innovation community.

    “We celebrate not only research excellence, but visionary work that is driving the establishment of new high-tech companies to tackle some of our state’s most difficult problems.”

    NSW Chief Scientist & Engineer Hugh Durrant-Whyte said:

    “Tonight, we celebrate leading thinkers in areas as diverse as quantum physics, synthetic biology, immunology, cybersecurity and satellite telecommunications.

    “We acknowledge the work of established senior academics as well as lauding the contributions of our best early career researchers.

    “My congratulations to everyone honoured tonight, and especially to 2024 Scientist of the Year, Professor Helen Christensen, for her profound impact in the critically important area of mental health.”   

    2024 NSW Scientist of the Year Professor Helen Christensen said:

    “I’m deeply honoured to receive this award from the NSW Government.

    “It’s exciting to see this recognition for scientific work in mental health—an issue now seen globally as the leading health concern, even surpassing cancer, obesity and COVID.

    “Mental health science has the power to transform lives. We’re at a tipping point, where advancements in genetics, AI, and software engineering, are reshaping our understanding of mental illness, the impact of societal factors, and how technology delivers proven treatments to those who need them.”

    MIL OSI News –

  • MIL-OSI Australia: New partnership a boost for First Nations tourism

    Source: Minister for Trade

    Today the Albanese Labor Government is announcing a historic new Partnership to support greater participation and economic opportunities for First Nations people and businesses in Australia’s tourism industry.

    The First Nations Visitor Economy Partnership, comprising First Nations tourism industry representatives from every state and territory, will provide leadership and guidance on respectfully embedding Australia’s rich cultural heritage in our tourism offerings.

    Importantly, the Partnership will be tasked with investigating and establishing a permanent First Nations national tourism peak body which will provide guidance and strategic support to grow this critical sector.

    The Partnership will be funded for an initial two years through the National Indigenous Australians Agency’s Indigenous Advancement Strategy.

    First Nations industry representatives co-designed the Partnership in collaboration with the Australian Trade and Investment Commission (Austrade), the National Indigenous Australians Agency (NIAA), Tourism Australia and state and territory governments.

    The Albanese Labor Government understands the importance of First Nations tourism in Australia and has been investing to increase economic opportunities for First Nations people in this sector.

    This includes the Indigenous Tourism Fund which is supporting First Nations people in the travel and tourism industry through grants, mentoring and co-investment in strategic projects.

    The First Nations Tourism Mentoring Program is connecting businesses with skilled, experienced and culturally respectful tourism industry specialists who are providing one-on-one guidance, advice and support.

    These programs build on support provided by state and territory governments, such as Tourism Northern Territory’s Aboriginal Tourism Development Support Grant Program, which is co-funded by the Australian Government and helps to develop Aboriginal cultural tourism experiences and tourism product.

    Quotes attributable to Senator the Hon Don Farrell, Minister for Trade and Tourism:

    “First Nations tourism offers an important avenue for First Nations people to stay on country, preserve their culture and knowledge while providing economic opportunities.

    “I recently had the privilege of attending the graduation of the National Indigenous Training Academy’s class of 2024 on Anangu country who expressed to me the importance of this industry and their excitement of sharing their culture with visitors. With graduates like these, alongside the support of this new national body, the future is very bright for First Nations tourism in Australia.

    “We know that domestic and international visitors are increasingly seeking unique First Nations experiences as part of their travels.

    “This presents great opportunities for First Nations tourism and job creation in Australia’s regions and First Nations communities.”

    Quotes attributable to Senator the Hon Malarndirri McCarthy, Minister for Indigenous Australians:

    “First Nations tourism provides opportunities to share the world’s oldest living culture with travellers from around the world, while empowering First Nations people through employment and business prospects.

    “The First Nations Visitor Economy Partnership will advocate for the sector and 
    support the growth of First Nations tourism businesses to provide unique experiences for domestic and international visitors, driving more economic activity in the regions and local communities.

    “The First Nations Visitor Economy Partnership demonstrates the Albanese Government’s commitment to working with First Nations people and in partnership with state and territory governments to advance self-determination and economic empowerment.

    “The First Nations tourism sector has been calling for support to establish a national peak tourism body and the Albanese Government has listened.”

    MIL OSI News –

  • MIL-OSI Security: Mansfield Tax Preparer Sentenced to More Than 15 Years After Touting False Credentials

    Source: Office of United States Attorneys

    A would-be lawyer who falsely inflated dozens of client tax returns was sentenced Tuesday to more than 15 years in federal prison for tax fraud, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

    John Anthony Castro, 40, owner of the virtual tax preparation business Castro & Company, was indicted in January. Following a five-day bench trial before Senior U.S. District Judge Terry R Means, he was convicted on all 33 counts of assisting in the preparation of a fraudulent return and was immediately taken into custody. Judge Means sentenced him Thursday to 188 months in prison and ordered him to pay $277,243 in restitution.

    “Far from an ‘international tax expert,’ this defendant was an international fraudster, plain and simple,” said U.S. Attorney Leigha Simonton. “Not only did he defraud the U.S. government, he bullied and berated clients who dared question his methods. Today’s sentencing should send a message to tax preparers nationwide: Lie on clients’ returns at your own peril.”

    “Mr. Castro prepared and filed completely fraudulent and fabricated tax returns for one reason: greed,” stated Special Agent in Charge Jenifer L. Piovesan, IRS Criminal Investigation, Newark Field Office.  “Today’s sentence highlights IRS-CI’s diligence in rooting out dishonest tax return preparers whose only motive is to cheat the system and make themselves richer in the process.”

    According to evidence presented in court, Mr. Castro – who had graduated law school but repeatedly failed the bar exam – held himself out as an “international tax expert” and “federal practitioner.” (He also falsely claimed to be a graduate of West Point.)

    He was successful at marketing to clients around the world, claiming to be an expert on certain tax issues related to Australian ex-pats, among other things.  Between 2017 and 2019, he filed more than 1,900 tax returns on behalf of individuals from all over the world.

    As part of his pitch, Mr. Castro promised his clients a significantly higher refund than they would receive from other preparers, claiming he knew how to identify and claim deductions that others did not.  He added there was no risk, as he would simply split the additional refund amount with them to account for his fee.  He would not share the tax return with clients before filing, but would instead simply inform them of the amount of the anticipated refund.

    On many occasions, he filed tax returns on behalf of clients without their permission or knowledge.  In other instances, he claimed deductions that had no basis in fact.  For example, for one client, who made approximately $103,000 in income, Mr. Castro claimed over $90,000 in deductions related to unreimbursed employee expenses.

    Mr. Castro claimed deductions based on extreme and unsupported legal theories, including deductions such as (1) those for any expense related to preventing an illness qualified as an “impairment related work expense,” (2) those for expenses related to commuting to and from work, (3) the full value of one’s mortgage and utilities as long as the taxpayer had some type of Schedule C business to claim, (4) those related to dry-cleaning for work clothes, and (5) the full value of one’s cell phone bill even when their employer provided them with a work phone.  For example, with respect to one client, Mr. Castro deducted over $26,000 in expenses that he claimed related to a nascent cupcake business that had generated only $250 in revenue.

    According to trial testimony, in February 2018, an undercover IRS – CI agent contacted Mr. Castro for assistance. The agent asked to meet with Mr. Castro in person, but Mr. Castro’s office told him that in-person meetings required a $5,000 retainer. They spoke via email instead.

    On February 13, 2018, the undercover agent submitted a W2 and a Form 1098-T showing wages of $142,217. About two weeks later, one of Mr. Castro’s employees called the agent to discuss deductions, noting that Mr. Castro would make any decisions regarding what items would be included on the tax filing.

    The agent denied having any unreimbursed employee expenses, charitable contributions, or other items that could lead to deductions.

    On March 12, 2018, Mr. Castro sent the undercover agent his tax analysis. He said that if the agent used another preparer, he would receive a refund of $373, but that if he used Mr. Castro, he would receive a refund of $6,007. Mr. Castro would take half, netting him $3,008. The analysis said the return would include $29,339 in deductions but did not specify which deductions would be used.

    Two days later, Mr. Castro filed the agent’s return, which claimed $29,339 in fraudulent deductions, including $2,400 in employee expenses, and 28,600 in other expenses that the undercover agent had never discussed with Mr. Castro or his employees.

    According to evidence presented at trial, Mr. Castro engaged in a similar pattern with his other clients. When the victim-taxpayers learned what Mr. Castro had done, many of them demanded copies of their tax returns. Mr. Castro refused to engage in conversation and even delayed providing returns for months at a time.  Mr. Castro often acted in a highly vindictive manner when questioned or challenged by clients or others, often berating individuals in emails, threatening legal actions, or by filing amended tax returns, without clients’ permission or knowledge, that removed all deductions, causing the taxpayer-victim to then owe the IRS tens of thousands of dollars. 

    During the trial, Mr. Castro took the stand in his own defense, and upon cross-examination, admitted that his positions were extreme, outlandish, and not supported by the law.  He also admitted to a bevy of prior falsifications and vindictive actions.

    Many of the victim-taxpayers have since been audited and/or filed amended returns, causing them significant financial hardship.

    IRS Criminal Investigation conducted the investigation.  Assistant U.S. Attorneys P.J. Meitl and Nancy Larson are prosecuting the case. 

    MIL Security OSI –

  • MIL-OSI: Provident Financial Services, Inc. Reports Third Quarter Earnings and Declares Quarterly Cash Dividend

    Source: GlobeNewswire (MIL-OSI)

    ISELIN, N.J., Oct. 29, 2024 (GLOBE NEWSWIRE) — Provident Financial Services, Inc. (NYSE:PFS) (the “Company”) reported net income of $46.4 million, or $0.36 per basic and diluted share for the three months ended September 30, 2024, compared to a net loss of $11.5 million, or $0.11 per basic and diluted share, for the three months ended June 30, 2024 and net income of $28.5 million, or $0.38 per basic and diluted share, for the three months ended September 30, 2023. For the nine months ended September 30, 2024, net income totaled $67.0 million, or $0.65 per basic and diluted share, compared to $101.1 million, or $1.35 per basic and diluted share, for the nine months ended September 30, 2023.

    The Company’s earnings for the three and nine months ended September 30, 2024 reflected the impact of the May 16, 2024 merger with Lakeland Bancorp, Inc. (“Lakeland”), which added $10.91 billion to total assets, $7.91 billion to loans, and $8.62 billion to deposits, net of purchase accounting adjustments.  The merger with Lakeland significantly impacted provisions for credit losses in the trailing quarter due to the initial CECL provisions recorded on acquired loans.  The results of operations for the three and nine months ended September 30, 2024 also included other transaction costs related to the merger with Lakeland, totaling $15.6 million and $36.7 million, respectively, compared with transaction costs totaling $2.3 million and $5.3 million for the respective 2023 periods. Additionally, the Company realized a $2.8 million loss related to the sale of subordinated debt issued by Lakeland from the Provident investment portfolio, during the nine months ended September 30, 2024.

    Anthony J. Labozzetta, President and Chief Executive Officer commented, “We achieved solid performance this quarter, and we are optimistic that our results will continue to improve as we further realize the synergies of the merger.  Provident generated strong earnings and core metrics, aided by robust performance in our fee-based businesses. We continue to expand our operations prudently and believe we are well-positioned for even greater success as market conditions improve.”

    Regarding the Company’s merger with Lakeland, Mr. Labozzetta added, “We are proud to announce that, with the conversion of our core system in early September, our merger is complete and we are a unified organization. Our cultures are combining well and we are already experiencing the benefits of cost savings and enhanced revenue opportunities. We are grateful to the many team members whose hard work allowed for a smooth conversion and the retention of almost all legacy Lakeland customers.”

    Performance Highlights for the Third Quarter of 2024

    • Net interest income increased $42.2 million to $183.7 million for the three months ended September 30, 2024, from $141.5 million for the trailing quarter primarily due to the full quarter impact of net assets acquired from Lakeland, including the accretion of purchase accounting adjustments and four basis points of core margin expansion.  
    • The net interest margin increased ten basis points to 3.31% for the quarter ended September 30, 2024, from 3.21% for the trailing quarter. The weighted average yield on interest-earning assets for the quarter ended September 30, 2024 increased 17 basis points to 5.84%, compared to the trailing quarter, while the weighted average cost of interest-bearing liabilities for the quarter ended September 30, 2024 increased ten basis points to 3.19%, compared to the trailing quarter. The increases in the yields and costs on interest-earning assets and interest-bearing liabilities were primarily due to a full quarter of accretion of purchase accounting adjustments related to the Lakeland merger, which contributed approximately 53 basis points to the net interest margin in the current quarter.
    • Non-interest income increased $4.6 million to $26.9 million for the three months ended September 30, 2024, from $22.3 million for the trailing quarter, while non-interest expense increased $20.6 million to $136.0 million for the three months ended September 30, 2024, compared to $115.4 million for the trailing quarter.   The increases in both non-interest income and non-interest expense were reflective of a full quarter of combined operations with Lakeland.
    • Wealth management and insurance agency income increased 9.0% and 12.6%, respectively, versus the same period in 2023. The increase in wealth management income was primarily due to an increase in the average market value of assets under management during the period, while the increase in insurance agency income was largely due to an increase in business activity.
    • Adjusting for transaction costs related to the merger with Lakeland, net of tax, the Company’s annualized adjusted returns on average assets, average equity and average tangible equity(1) were 0.95%, 8.62% and 14.53% for the quarter ended September 30, 2024, compared to 0.06%, 0.53% and 2.01% for the quarter ended June 30, 2024. A reconciliation between GAAP and the above non-GAAP ratios are shown on page 13 of the earnings release.
    • The Company’s annualized adjusted pre-tax, pre-provision returns on average assets, average equity and average tangible equity(2) were 1.48%, 13.48% and 19.77% for the quarter ended September 30, 2024, compared to 1.47%, 13.26% and 19.21% for the quarter ended June 30, 2024. A reconciliation between GAAP and the above non-GAAP ratios are shown on page 14 of the earnings release.
    • As of September 30, 2024, the Company’s loan pipeline, consisting of work-in-process and loans approved pending closing, totaled $1.98 billion, with a weighted average interest rate of 7.18%, compared to $1.67 billion, with a weighted average interest rate of 7.53%, as of June 30, 2024.
    • The Company recorded a $9.6 million provision for credit losses on loans for the quarter ended September 30, 2024, compared to a $66.1 million provision for the trailing quarter. The provision for credit losses on loans in the quarter was primarily attributable to specific reserves required on individually analyzed loans, combined with some economic forecast deterioration. The allowance for credit losses as a percentage of loans increased to 1.02% as of September 30, 2024, from 1.00% as of June 30, 2024.
    • As of September 30, 2024, CRE loans related to office properties totaled $921.1 million, compared to $953.5 million as of June 30, 2024. CRE loans secured by office properties constitutes only 4.9% of total loans and have an average loan size of $1.9 million, with just seven relationships greater than $10.0 million. There were four loans totaling $9.2 million on non-accrual as of September 30, 2024, however we do not expect to incur losses on any of these loans.
    • As of September 30, 2024, multi-family CRE loans secured by New York City properties totaled $226.6 million, compared to $227.7 million as of June 30, 2024. This portfolio constitutes only 1.2% of total loans and has an average loan size of $2.6 million. Loans that are collateralized by rent stabilized apartments comprise less than 0.80% of the total loan portfolio and are all performing.
    • Non-performing loans to total loans as of September 30, 2024 increased to 0.47%, compared to 0.36% as of June 30, 2024, while non-performing assets to total assets as of September 30, 2024 increased to 0.41%, compared to 0.33% as of June 30, 2024. The increase in non-performing loans, compared to the prior quarter was primarily attributable to one commercial real estate credit secured by an industrial property which has a loan-to-value ratio of approximately 39%. We anticipate a near-term resolution of this credit with no expected loss.   For the three months ended September 30, 2024, net charge-offs totaled $6.8 million, or an annualized 14 basis points of average loans. Of this total, $6.4 million was attributable to one previously identified commercial relationship that had a $4.4 million specific reserve as of June 30, 2024. This credit is expected to be fully resolved in the fourth quarter of 2024.

    Declaration of Quarterly Dividend

    The Company’s Board of Directors declared a quarterly cash dividend of $0.24 per common share payable on November 29, 2024 to stockholders of record as of the close of business on November 15, 2024.

    Results of Operations

    Three months ended September 30, 2024 compared to the three months ended June 30, 2024

    For the three months ended September 30, 2024, the Company reported net income of $46.4 million, or $0.36 per basic and diluted share, compared to a net loss of $11.5 million, or $0.11 per basic and diluted share, for the three months ended June 30, 2024. The Company’s earnings for the prior quarter were impacted by an initial CECL provision for credit losses on loans and commitments to extend credit of $65.2 million recorded as part of the Lakeland merger in accordance with GAAP requirements for accounting for business combinations. The results of operations for the three months ended September 30, 2024 included transaction costs related to the merger with Lakeland totaling $15.6 million, compared with transaction costs totaling $18.9 million in the trailing quarter. Additionally, the Company realized a $2.8 million loss in the trailing quarter related to the sale from the Provident investment portfolio of subordinated debt issued by Lakeland.

    Net Interest Income and Net Interest Margin

    Net interest income increased $42.2 million to $183.7 million for the three months ended September 30, 2024, from $141.5 million for the trailing quarter. Net interest income for the three months ended September 30, 2024 was favorably impacted by a full quarter of combined operations with Lakeland and accretion of purchase accounting adjustments, compared to a 45 days impact in the prior quarter.

    The Company’s net interest margin increased ten basis points to 3.31% for the quarter ended September 30, 2024, from 3.21% for the trailing quarter. Accretion of purchase accounting adjustments related to the Lakeland merger contributed 53 basis points to the net interest margin in the current quarter. The current net interest margin reflects a full quarter of the acquisition of Lakeland’s interest-bearing assets and liabilities, the prior quarter sale of $554.2 million of securities acquired from Lakeland and the repayment of overnight borrowings as well as the prior quarter issuance of subordinated debt.

    The weighted average yield on interest-earning assets for the quarter ended September 30, 2024 increased 17 basis points to 5.84%, compared to the trailing quarter. The weighted average cost of interest-bearing liabilities for the quarter ended September 30, 2024 increased ten basis points from the trailing quarter, to 3.19%. The average cost of interest-bearing deposits for the quarter ended September 30, 2024 increased 12 basis points to 2.96%, compared to 2.84% for the trailing quarter. The average cost of total deposits, including non-interest-bearing deposits, was 2.36% for the quarter ended September 30, 2024, compared to 2.27% for the trailing quarter. The average cost of borrowed funds for the quarter ended September 30, 2024 was 3.73%, compared to 3.83% for the quarter ended June 30, 2024. All yields and costs reflect a full quarter of combined operations with Lakeland.

    Provision for Credit Losses on Loans

    For the quarter ended September 30, 2024, the Company recorded a $9.6 million provision for credit losses on loans, compared with a provision for credit losses on loans of $66.1 million for the quarter ended June 30, 2024. The provision for credit losses on loans in the quarter was primarily attributable to specific reserves required on individually analyzed loans, combined with some economic forecast deterioration, while the provision for credit losses on loans in the prior quarter was primarily attributable to an initial CECL provision for credit losses of $60.1 million, recorded as part of the Lakeland merger in accordance with GAAP requirements for accounting for business combinations. For the three months ended September 30, 2024, net charge-offs totaled $6.8 million, or an annualized 14 basis points of average loans.

    Non-Interest Income and Expense

    For the three months ended September 30, 2024, non-interest income totaled $26.9 million, an increase of $4.6 million, compared to the trailing quarter. Net gain on securities transactions increased $3.0 million for the three months ended September 30, 2024, compared to the trailing quarter, primarily due to a $2.8 million loss realized on the sale from the Provident investment portfolio of subordinated debt issued by Lakeland in the prior quarter.   Fee income increased $1.1 million to $9.8 million for the three months ended September 30, 2024, compared to the trailing quarter, primarily due to increases in deposit and debit card related fee income. The increases in fee income are primarily attributable to the addition of the Lakeland customer base. BOLI income increased $1.0 million for the three months ended September 30, 2024, compared to the trailing quarter, primarily due to an increase in benefit claims recognized. Partially offsetting these increases in non-interest income, insurance agency income decreased $857,000 to $3.6 million for the three months ended September 30, 2024, compared to the trailing quarter, due to a seasonal decrease in business activity in the current quarter, while wealth management income decreased $149,000 to $7.6 million for the three months ended September 30, 2024, compared to the trailing quarter, mainly due to a seasonal decrease in tax preparation fees, partially offset by an increase in the average market value of assets under management during the period.

    Non-interest expense totaled $136.0 million for the three months ended September 30, 2024, an increase of $20.6 million, compared to $115.4 million for the trailing quarter. Compensation and benefits expense increased $8.6 million to $63.5 million for the three months ended September 30, 2024, compared to $54.9 million for the trailing quarter. The increase in compensation and benefits expense was primarily attributable to a full quarter of combined operations with Lakeland, compared to 45 days in the prior quarter.   Amortization of intangibles increased $5.7 million to $12.2 million for the three months ended September 30, 2024, compared to $6.5 million for the trailing quarter, largely due to a full quarter of core deposit intangible amortization related to Lakeland.   Other operating expenses increased $4.5 million to $15.8 million for the three months ended September 30, 2024, compared to $11.3 million for the trailing quarter, primarily due to increases in professional service expenses. Data processing expense increased $2.0 million to $10.5 million for the three months ended September 30, 2024, compared to $8.4 million for the trailing quarter, primarily due a full quarter of combined operations with Lakeland, while net occupancy expense increased $1.6 million to $12.8 million for the three months ended September 30, 2024, compared to $11.1 million for the trailing quarter, primarily due to increases in maintenance and depreciation expenses from the addition of Lakeland.   Additionally, FDIC insurance increased $1.1 million to $4.2 million for the three months ended September 30, 2024, primarily resulting from the impact of the Lakeland merger. Partially offsetting these increases, merger-related expenses decreased $3.3 million to $15.6 million for the three months ended September 30, 2024, compared to the trailing quarter.

    The Company’s annualized adjusted non-interest expense as a percentage of average assets(5) declined to 1.98% for the quarter ended September 30, 2024, compared to 2.02% for the trailing quarter. The efficiency ratio (adjusted non-interest expense divided by the sum of net interest income and non-interest income)(6) improved to 57.20% for the three months ended September 30, 2024, compared to 57.86% for the trailing quarter.

    Income Tax Expense/Benefit

    For the three months ended September 30, 2024, the Company’s income tax expense was $18.9 million, compared to an income tax benefit of $9.8 million for the trailing quarter. The increase in tax expense for the three months ended September 30, 2024 compared with the trailing quarter was largely due to an increase in taxable income in the current quarter as a result of the Lakeland merger and a $5.3 million tax benefit realized in the trailing quarter related to the revaluation of deferred tax assets to reflect the imposition by the State of New Jersey of a 2.5% Corporate Transit Fee, effective January 1, 2024.  

    Three months ended September 30, 2024 compared to the three months ended September 30, 2023

    For the three months ended September 30, 2024, the Company reported net income of $46.4 million, or $0.36 per basic and diluted share, compared to net income of $28.5 million, or $0.38 per basic and diluted share, for the three months ended September 30, 2023. The Company’s earnings for the quarter ended September 30, 2024 reflected the impact of the May 16, 2024 merger with Lakeland. The results of operations included transaction costs related to the merger with Lakeland totaling $15.6 million and $2.3 million for the three months ended September 30, 2024 and 2023, respectively.

    Net Interest Income and Net Interest Margin

    Net interest income increased $87.5 million to $183.7 million for the three months ended September 30, 2024, from $96.2 million for same period in 2023. Net interest income for the three months ended September 30, 2024 was favorably impacted by the net assets acquired from Lakeland, combined with favorable repricing of adjustable rate loans, higher market rates on new loan originations and the originations of higher-yielding loans, partially offset by unfavorable repricing of both deposits and borrowings.

    The Company’s net interest margin increased 35 basis points to 3.31% for the quarter ended September 30, 2024, from 2.96% for the same period last year. Accretion of purchase accounting adjustments related to the Lakeland merger contributed 53 basis points to the net interest margin in the current quarter.   The current quarter net interest margin reflects the acquisition of Lakeland’s interest bearing assets and liabilities, the prior quarter sale of $554.2 million of securities acquired from Lakeland and the repayment of overnight borrowings as well as the prior quarter issuance of subordinated debt.

    The weighted average yield on interest-earning assets for the quarter ended September 30, 2024 increased 95 basis points to 5.84%, compared to 4.89% for the quarter ended September 30, 2023. The weighted average cost of interest-bearing liabilities increased 69 basis points for the quarter ended September 30, 2024 to 3.19%, compared to 2.50% for the third quarter of 2023. The average cost of interest-bearing deposits for the quarter ended September 30, 2024 was 2.96%, compared to 2.22% for the same period last year. Average non-interest-bearing demand deposits increased $1.51 billion to $3.74 billion for the quarter ended September 30, 2024, compared to $2.23 billion for the quarter ended September 30, 2023. The average cost of total deposits, including non-interest-bearing deposits, was 2.36% for the quarter ended September 30, 2024, compared with 1.74% for the quarter ended September 30, 2023. The average cost of borrowed funds for the quarter ended September 30, 2024 was 3.73%, compared to 3.74% for the same period last year.

    Provision for Credit Losses on Loans

    For the quarter ended September 30, 2024, the Company recorded a $9.6 million provision for credit losses on loans, compared with an $11.0 million provision for credit losses on loans for the quarter ended September 30, 2023.   The provision for credit losses on loans in the current quarter was primarily attributable to specific reserves required on individually analyzed loans, combined with some economic forecast deterioration.   For the three months ended September 30, 2024, net charge-offs totaled $6.8 million, or an annualized 14 basis points of average loans.

    Non-Interest Income and Expense

    Non-interest income totaled $26.9 million for the quarter ended September 30, 2024, an increase of $7.5 million, compared to the same period in 2023. Fee income increased $3.7 million to $9.8 million for the three months ended September 30, 2024, compared to the prior year quarter, primarily due to increases in deposit fee income, debit card related fee income and loan related fee income, resulting from the Lakeland merger.   BOLI income increased $2.5 million to $4.3 million for the three months ended September 30, 2024, compared to the prior year quarter, primarily due to an increase in benefit claims recognized, combined with an increase in income related to the addition of Lakeland’s BOLI. Wealth management fees increased $628,000 to $7.6 million for the three months ended September 30, 2024, compared to the quarter ended September 30, 2023, mainly due to an increase in the average market value of assets under management during the period, while insurance agency income increased $407,000 to $3.6 million for the three months ended September 30, 2024, compared to the quarter ended September 30, 2023, largely due to an increase in business activity. Additionally, other income increased $339,000 to $1.5 million for the three months ended September 30, 2024, compared to the quarter ended September 30, 2023, primarily due to increases in gains on the sale of SBA and mortgage loans.

    For the three months ended September 30, 2024, non-interest expense totaled $136.0 million, an increase of $70.4 million, compared to the three months ended September 30, 2023. Compensation and benefits expense increased $27.8 million to $63.5 million for the three months ended September 30, 2024, compared to $35.7 million for the same period in 2023. The increase in compensation and benefits expense was primarily attributable to the addition of Lakeland. Additionally, merger-related expenses increased $13.3 million to $15.6 million for the three months ended September 30, 2024, compared to the same period in 2023. Amortization of intangibles increased $11.5 million to $12.2 million for the three months ended September 30, 2024, compared to $720,000 for the same period in 2023, largely due to core deposit intangible amortization related to Lakeland in the current quarter. Data processing expenses increased $5.2 million to $10.5 million for three months ended September 30, 2024, compared to $5.3 million for the same period in 2023, primarily due to additional software and hardware expenses needed for the addition of Lakeland. Net occupancy expense increased $4.7 million to $12.8 million for three months ended September 30, 2024, compared to $8.1 million for the same period in 2023, primarily due to an increase in depreciation and maintenance expenses due to the addition of Lakeland.   Other operating expenses increased $5.0 million to $15.8 million for the three months ended September 30, 2024, compared to $10.7 million for the same period in 2023, primarily due to increases in professional service expenses, while FDIC insurance increased $2.6 million to $4.2 million for the three months ended September 30, 2024, primarily due to the addition of Lakeland.

    The Company’s annualized adjusted non-interest expense as a percentage of average assets(5) was 1.98% for the quarter ended September 30, 2024, compared to 1.80% for the same period in 2023. The efficiency ratio (adjusted non-interest expense divided by the sum of net interest income and non-interest income)(6) was 57.20% for the three months ended September 30, 2024 compared to 54.81% for the same respective period in 2023.

    Income Tax Expense

    For the three months ended September 30, 2024, the Company’s income tax expense was $18.9 million with an effective tax rate of 28.9%, compared with an income tax expense of $8.8 million with an effective tax rate of 23.7% for the three months ended September 30, 2023. The increase in tax expense for the three months ended September 30, 2024, compared with the same period last year was largely due to an increase in taxable income in the quarter, as a result of the Lakeland merger and the imposition by the State of New Jersey of a 2.5% Corporate Transit Fee in the prior quarter.

    Nine months ended September 30, 2024 compared to the nine months ended September 30, 2023

    For the nine months ended September 30, 2024, net income totaled $67.0 million, or $0.65 per basic and diluted share, compared to net income of $101.1 million, or $1.35 per basic and diluted share, for the nine months ended September 30, 2023. The Company’s earnings for the nine months ended September 30, 2024 were impacted by an initial CECL provision for credit losses on loans and commitments to extend credit of $60.1 million recorded as part of the Lakeland merger in accordance with GAAP requirements for accounting for business combinations. Transaction costs related to our merger with Lakeland totaled $36.7 million and $5.3 million for the nine months ended September 30, 2024 and 2023, respectively. Additionally, the Company realized a $2.8 million loss related to the sale from the Provident investment portfolio of subordinated debt issued by Lakeland, during the nine months ended September 30, 2024.

    Net Interest Income and Net Interest Margin

    Net interest income increased $115.2 million to $418.9 million for the nine months ended September 30, 2024, from $303.7 million for same period in 2023. Net interest income for the nine months ended September 30, 2024 was favorably impacted by the net assets acquired from Lakeland, combined with the favorable repricing of adjustable rate loans, higher market rates on new loan originations and the originations of higher-yielding loans, partially offset by the unfavorable repricing of both deposits and borrowings.

    For the nine months ended September 30, 2024, our net interest margin decreased one basis point to 3.18%, compared to 3.19% for the nine months ended September 30, 2023. The weighted average yield on interest earning assets increased 85 basis points to 5.61% for the nine months ended September 30, 2024, compared to 4.76% for the nine months ended September 30, 2023, while the weighted average cost of interest-bearing liabilities increased 99 basis points to 3.06% for the nine months ended September 30, 2024, compared to 2.07% for the same period last year. The average cost of interest-bearing deposits increased 102 basis points to 2.84% for the nine months ended September 30, 2024, compared to 1.82% for the same period last year. Average non-interest-bearing demand deposits increased $514.3 million to $2.90 billion for the nine months ended September 30, 2024, compared with $2.38 billion for the nine months ended September 30, 2023. The average cost of total deposits, including non-interest-bearing deposits, was 2.27% for the nine months ended September 30, 2024, compared with 1.40% for the nine months ended September 30, 2023. The average cost of borrowings for the nine months ended September 30, 2024 was 3.73%, compared to 3.29% for the same period last year.

    Provision for Credit Losses on Loans

    For the nine months ended September 30, 2024, the Company recorded a $75.9 million provision for credit losses on loans, compared with a provision for credit losses on loans of $27.4 million for the nine months ended September 30, 2023. The increased provision for credit losses on loans for the nine months ended September 30, 2024 was primarily attributable to an initial CECL provision for credit losses on loans of $60.1 million recorded as part of the Lakeland merger in accordance with GAAP requirements for accounting for business combinations, partially offset by an improved economic forecast for the current nine-month period within our CECL model, compared to the same period last year. For the nine months ended September 30, 2024, net charge-offs totaled $9.1 million or an annualized eight basis points of average loans.

    Non-Interest Income and Expense

    For the nine months ended September 30, 2024, non-interest income totaled $69.9 million, an increase of $9.1 million compared to the same period in 2023. Fee income increased $6.1 million to $24.4 million for the nine months ended September 30, 2024, compared to the same period in 2023, primarily due to increases in deposit fee income, debit and credit card related fee income and loan related fee income resulting from the Lakeland merger. BOLI income increased $4.6 million to $9.4 million for the nine months ended September 30, 2024, compared to the same period in 2023, primarily due to an increase in benefit claims recognized, combined with an increase in income related to the addition of Lakeland’s BOLI, while wealth management income increased $2.1 million to $22.9 million for the nine months ended September 30, 2024, compared to the same period in 2023, mainly due to an increase in the average market value of assets under management during the period. Additionally, insurance agency income increased $1.7 million to $12.9 million for the nine months ended September 30, 2024, compared to $11.2 million for the same period in 2023, largely due to increases in contingent commissions, retention revenue and new business activity. Partially offsetting these increases in non-interest income, net gains on securities transactions decreased $3.0 million for the nine months ended September 30, 2024, primarily due to a $2.8 million loss related to the sale from the Provident investment portfolio of subordinated debt issued by Lakeland. Other income decreased $2.4 million to $3.2 million for the nine months ended September 30, 2024, compared to $5.7 million for the same period in 2023, primarily due to a $2.0 million gain from the sale of a foreclosed commercial property recorded in the prior year, combined with a decrease in gains on sales of SBA loans.

    Non-interest expense totaled $323.2 million for the nine months ended September 30, 2024, an increase of $123.7 million, compared to $199.5 million for the nine months ended September 30, 2023. Compensation and benefits expense increased $48.7 million to $158.4 million for the nine months ended September 30, 2024, compared to $109.7 million for the nine months ended September 30, 2023. The increase in compensation and benefits expense was primarily attributable to the addition of Lakeland.   Merger-related expenses increased $31.3 million to $36.7 million for the nine months ended September 30, 2024, compared to $5.3 million for the nine months ended September 30, 2023. Amortization of intangibles increased $17.2 million to $19.4 million for the nine months ended September 30, 2024, compared to $2.2 million for the nine months ended September 30, 2023, largely due to core deposit intangible amortization related to Lakeland. Data processing expense increased $9.2 million to $25.7 million for the nine months ended September 30, 2024, compared to $16.5 million for the nine months ended September 30, 2023, primarily due to additional software and hardware expenses needed for the addition of Lakeland, while net occupancy expense increased $8.0 million to $32.5 million for the nine months ended September 30, 2024, compared to the same period in 2023, primarily due to increases in depreciation and maintenance expense related to the addition of Lakeland. Other operating expenses increased $5.6 million to $37.4 million for the three months ended September 30, 2024, compared to $31.8 million for the same period in 2023, primarily due to increases in professional service expenses, while FDIC insurance increased $3.9 million to $9.6 million for the three months ended September 30, 2024, primarily due to the addition of Lakeland.

    Income Tax Expense
    For the nine months ended September 30, 2024, the Company’s income tax expense was $19.9 million with an effective tax rate of 22.9%, compared with $34.9 million with an effective tax rate of 25.7% for the nine months ended September 30, 2023. The decrease in tax expense for the nine months ended September 30, 2024 compared with the same period last year was largely due to a $5.8 million tax benefit related to the revaluation of deferred tax assets to reflect the imposition by the State of New Jersey of a 2.5% Corporate Transit Fee, effective January 1, 2024, combined with a decrease in taxable income as a result of the initial CECL provision for credit losses on loans of $60.1 million recorded in accordance with GAAP requirements for accounting for business combinations and additional expenses from the Lakeland merger.

    Asset Quality

    The Company’s total non-performing loans as of September 30, 2024 were $89.9 million, or 0.47% of total loans, compared to $67.9 million, or 0.36% of total loans as of June 30, 2024 and $49.6 million, or 0.46% of total loans as of December 31, 2023. The $22.1 million increase in non-performing loans as of September 30, 2024, compared to the trailing quarter, consisted of a $10.4 million increase in non-performing commercial mortgage loans, an $8.9 million increase in non-performing commercial loans, a $1.5 million increase in non-performing construction loans, a $764,000 increase in non-performing residential mortgage loans, a $302,000 increase in non-performing multi-family loans and a $289,000 increase in non-performing consumer loans. As of September 30, 2024, impaired loans totaled $74.0 million with related specific reserves of $7.2 million, compared with impaired loans totaling $54.6 million with related specific reserves of $7.7 million as of June 30, 2024. As of December 31, 2023, impaired loans totaled $42.8 million with related specific reserves of $2.4 million.

    As of September 30, 2024, the Company’s allowance for credit losses related to the loan portfolio was 1.02% of total loans, compared to 1.00% and 0.99% as of June 30, 2024 and December 31, 2023, respectively. The allowance for credit losses increased $84.0 million to $191.2 million as of September 30, 2024, from $107.2 million as of December 31, 2023. The increase in the allowance for credit losses on loans as of September 30, 2024 compared to December 31, 2023 was due to a $75.9 million provision for credit losses, which included an initial CECL provision of $60.1 million on loans acquired from Lakeland, and a $17.2 million allowance recorded through goodwill related to Purchased Credit Deteriorated loans acquired from Lakeland, partially offset by net charge-offs of $9.1 million.

    The following table sets forth accruing past due loans and non-accrual loans on the dates indicated, as well as delinquency statistics and certain asset quality ratios.

        September 30, 2024   June 30, 2024   December 31, 2023
        Number
    of
    Loans    		   Principal
    Balance
    of Loans    		   Number
    of
    Loans    		   Principal
    Balance
    of Loans    		   Number
    of
    Loans    		   Principal
    Balance
    of Loans
        (Dollars in thousands)
    Accruing past due loans:                        
    30 to 59 days past due:                        
    Commercial mortgage loans   2   $ 430     3   $ 1,707     1   $ 825  
    Multi-family mortgage loans   —     —     —     —     1     3,815  
    Construction loans   —     —     —     —     —     —  
    Residential mortgage loans   23     5,020     9     1,714     13     3,429  
    Total mortgage loans   25     5,450     12     3,421     15     8,069  
    Commercial loans   14     1,952     20     3,444     6     998  
    Consumer loans   53     4,073     38     2,891     31     875  
    Total 30 to 59 days past due   92   $ 11,475     70   $ 9,756     52   $ 9,942  
                             
    60 to 89 days past due:                        
    Commercial mortgage loans   1   $ 641     3   $ 1,231     —   $ —  
    Multi-family mortgage loans   —     —     —     —     1     1,635  
    Construction loans   —     —     —     —     —     —  
    Residential mortgage loans   11     1,991     10     2,193     8     1,208  
    Total mortgage loans   12     2,632     13     3,424     9     2,843  
    Commercial loans   9     1,240     6     1,146     3     198  
    Consumer loans   10     606     9     648     5     275  
    Total 60 to 89 days past due   31     4,478     28     5,218     17     3,316  
    Total accruing past due loans   123   $ 15,953     98   $ 14,974     69   $ 13,258  
                             
    Non-accrual:                        
    Commercial mortgage loans   17   $ 13,969     10   $ 3,588     7   $ 5,151  
    Multi-family mortgage loans   6     7,578     5     7,276     1     744  
    Construction loans   2     13,151     1     11,698     1     771  
    Residential mortgage loans   24     5,211     20     4,447     7     853  
    Total mortgage loans   49     39,909     36     27,009     16     7,519  
    Commercial loans   69     48,592     58     39,715     26     41,487  
    Consumer loans   32     1,433     24     1,144     10     633  
    Total non-accrual loans   150   $ 89,934     118   $ 67,868     52   $ 49,639  
                             
    Non-performing loans to total loans         0.47 %         0.36 %         0.46 %
    Allowance for loan losses to total non-performing loans         217.09 %         277.50 %         215.96 %
    Allowance for loan losses to total loans         1.02 %         1.00 %         0.99 %
                                         

    As of September 30, 2024 and December 31, 2023, the Company held foreclosed assets of $9.8 million and $11.7 million, respectively. During the nine months ended September 30, 2024, there were three properties sold with an aggregate carrying value of $532,000 and one write-down of a foreclosed commercial property of $1.3 million. Foreclosed assets as of September 30, 2024 consisted primarily of commercial real estate. Total non-performing assets as of September 30, 2024 increased $36.6 million to $97.9 million, or 0.41% of total assets, from $61.3 million, or 0.43% of total assets as of December 31, 2023.

    Balance Sheet Summary

    Total assets as of September 30, 2024 were $24.04 billion, a $9.83 billion increase from December 31, 2023. The increase in total assets was primarily due to the addition of Lakeland.

    The Company’s loans held for investment portfolio totaled $18.79 billion as of September 30, 2024 and $10.87 billion as of December 31, 2023. The loan portfolio consisted of the following:

      September 30, 2024   June 30, 2024   December 31, 2023
      (Dollars in thousands)
    Mortgage loans:          
    Commercial $ 7,342,456     $ 7,337,742     $ 4,512,411  
    Multi-family   3,226,918       3,189,808       1,812,500  
    Construction   873,509       970,244       653,246  
    Residential   2,032,671       2,024,027       1,164,956  
    Total mortgage loans   13,475,554       13,521,821       8,143,113  
    Commercial loans   4,710,601       4,617,232       2,440,621  
    Consumer loans   623,709       626,016       299,164  
    Total gross loans   18,809,864       18,765,069       10,882,898  
    Premiums on purchased loans   1,362       1,410       1,474  
    Net deferred fees and unearned discounts   (16,617 )     (7,149 )     (12,456 )
    Total loans $ 18,794,609     $ 18,759,330     $ 10,871,916  
                           

    As part of the merger with Lakeland, we acquired $7.91 billion in loans, net of purchase accounting adjustments.   Compared to the prior quarter, during the three months ended September 30, 2024, the loan portfolio had net increases of $93.4 million of commercial loans, $37.1 million of multi-family loans, $8.6 million of residential mortgage loans, and $4.7 million of commercial mortgage loans, partially offset by net decreases of $96.7 million of construction loans and $2.3 million of consumer loans.   Commercial loans, consisting of commercial real estate, multi-family, commercial and construction loans, represented 85.9% of the loan portfolio as of September 30, 2024, compared to 86.5% as of December 31, 2023.

    For the nine months ended September 30, 2024, loan funding, including advances on lines of credit, totaled $2.78 billion, compared with $2.53 billion for the same period in 2023.

    As of September 30, 2024, the Company’s unfunded loan commitments totaled $2.97 billion, including commitments of $1.84 billion in commercial loans, $231.0 million in construction loans and $225.7 million in commercial mortgage loans. Unfunded loan commitments as of December 31, 2023 and September 30, 2023 were $2.09 billion and $2.18 billion, respectively.

    The loan pipeline, consisting of work-in-process and loans approved pending closing, totaled $1.98 billion as of September 30, 2024, compared to $1.09 billion and $1.70 billion as of December 31, 2023 and September 30, 2023, respectively.

    Total investment securities were $3.17 billion as of September 30, 2024, a $1.04 billion increase from December 31, 2023. This increase was primarily due to the addition of Lakeland.

    Total deposits increased $8.08 billion during the nine months ended September 30, 2024, to $18.38 billion, due primarily to the addition of Lakeland. Total savings and demand deposit accounts increased $6.02 billion to $15.22 billion as of September 30, 2024, while total time deposits increased $2.06 billion to $3.16 billion as of September 30, 2024. The increase in savings and demand deposits was largely attributable to a $2.92 billion increase in interest bearing demand deposits, a $1.58 billion increase in non-interest bearing demand deposits, a $1.03 billion increase in money market deposits and a $495.5 million increase in savings deposits. The increase in time deposits consisted of a $2.01 billion increase in retail time deposits and a $46.5 million increase in brokered time deposits.

    Borrowed funds increased $244.5 million during the nine months ended September 30, 2024, to $2.21 billion. The increase in deposits and borrowings was largely due to the addition of Lakeland. Borrowed funds represented 9.2% of total assets as of September 30, 2024, a decrease from 13.9% as of December 31, 2023.

    Stockholders’ equity increased $930.5 million during the nine months ended September 30, 2024, to $2.62 billion, primarily due to common stock issued for the purchase of Lakeland, net income earned for the period and an improvement in unrealized losses on available for sale debt securities, partially offset by cash dividends paid to stockholders. For the three and nine months ended September 30, 2024, common stock repurchases totaled 1,969 shares at an average cost of $16.36 per share and 88,821 shares at an average cost of $14.87 per share, respectively, all of which were made in connection with withholding to cover income taxes on the vesting of stock-based compensation. As of September 30, 2024, approximately 1.0 million shares remained eligible for repurchase under the current stock repurchase authorization. Book value per share and tangible book value per share(1) as of September 30, 2024 were $20.09 and $13.66, respectively, compared with $22.38 and $16.32, respectively, as of December 31, 2023.

    About the Company

    Provident Financial Services, Inc. is the holding company for Provident Bank, a community-oriented bank offering “commitment you can count on” since 1839. Provident Bank provides a comprehensive array of financial products and services through its network of branches throughout New Jersey, Bucks, Lehigh and Northampton counties in Pennsylvania, as well as Orange, Queens and Nassau Counties in New York. Provident Bank also provides fiduciary and wealth management services through its wholly owned subsidiary, Beacon Trust Company and insurance services through its wholly owned subsidiary, Provident Protection Plus, Inc.

    Post Earnings Conference Call

    Representatives of the Company will hold a conference call for investors on Wednesday, October 30, 2024 at 10:00 a.m. Eastern Time to discuss the Company’s financial results for the quarter ended September 30, 2024. The call may be accessed by dialing 1-888-412-4131 (United States Toll Free) and 1-646-960-0134 (United States Local). Speakers will need to enter conference ID code (3610756) before being met by a live operator. Internet access to the call is also available (listen only) at provident.bank by going to Investor Relations and clicking on “Webcast.”

    Forward Looking Statements

    Certain statements contained herein are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements may be identified by reference to a future period or periods, or by the use of forward-looking terminology, such as “may,” “will,” “believe,” “expect,” “estimate,” “project,” “intend,” “anticipate,” “continue,” or similar terms or variations on those terms, or the negative of those terms. Forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to, those set forth in Item 1A of the Company’s Annual Report on Form 10-K, as supplemented by its Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, and those related to the economic environment, particularly in the market areas in which the Company operates, inflation and unemployment, competitive products and pricing, real estate values, fiscal and monetary policies of the U.S. Government, the effects of any turmoil or negative news in the banking industry, changes in accounting policies and practices that may be adopted by the regulatory agencies and the accounting standards setters, changes in government regulations affecting financial institutions, including regulatory fees and capital requirements, changes in prevailing interest rates, potential goodwill impairment, acquisitions and the integration of acquired businesses, credit risk management, asset-liability management, the financial and securities markets, the availability of and costs associated with sources of liquidity, any failure to realize the anticipated benefits of the merger transaction when expected or at all; the possibility that the transaction may be more expensive to complete than anticipated, including as a result of unexpected conditions, factors or events, potential adverse reactions or changes to business, employee, customer and/or counterparty relationships, including those resulting from the completion of the merger and integration of the companies; and the impact of a potential shutdown of the federal government.

    The Company cautions readers not to place undue reliance on any such forward-looking statements which speak only as of the date they are made. The Company advises readers that the factors listed above could affect the Company’s financial performance and could cause the Company’s actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements. The Company does not assume any duty, and does not undertake, to update any forward-looking statements to reflect events or circumstances after the date of this statement.

    Footnotes

    (1) Annualized adjusted return on average assets, average equity and average tangible equity, annualized adjusted pre-tax pre-provision return on average assets, average equity and average tangible equity, tangible book value per share, annualized adjusted non-interest expense as a percentage of average assets and the efficiency ratio are non-GAAP financial measures. Please refer to the Notes following the Consolidated Financial Highlights which contain the reconciliation of GAAP to non-GAAP financial measures and the associated calculations.

                       
    PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
    Consolidated Financial Highlights
    (Dollars in Thousands, except share data) (Unaudited)
           
      At or for the
    Three Months Ended    		   At or for the
    Nine Months Ended
      September 30,   June 30,   September 30,   September 30,   September 30,
        2024       2024       2023       2024       2023  
    Statement of Income                  
    Net interest income $ 183,701     $ 141,506     $ 96,236     $ 418,877     $ 303,666  
    Provision for credit losses   9,299       69,705       12,541       78,684       29,031  
    Non-interest income   26,855       22,275       19,320       69,937       60,861  
    Non-interest expense   136,002       115,394       65,625       323,224       199,485  
    Income (loss) before income tax expense   65,255       (21,318 )     37,390       86,906       136,011  
    Net income (loss)   46,405       (11,485 )     28,547       67,001       101,086  
    Diluted earnings per share $ 0.36     $ (0.11 )   $ 0.38     $ 0.65     $ 1.35  
    Interest rate spread   2.65 %     2.58 %     2.39 %     2.55 %     2.69 %
    Net interest margin   3.31 %     3.21 %     2.96 %     3.18 %     3.19 %
                       
    Profitability                  
    Annualized return on average assets   0.76 %   (0.24 )%     0.81 %     0.47 %     0.98 %
    Annualized adjusted return on average assets (1)   0.95 %   0.06 %     0.86 %     0.66 %     1.02 %
    Annualized return on average equity   6.94 %   (2.17 )%     6.84 %     4.14 %     8.22 %
    Annualized adjusted return on average equity (1)   8.62 %   0.53 %     7.30 %     5.83 %     8.59 %
    Annualized return on average tangible equity (4)   12.06 %   (3.15 )%     9.47 %     7.13 %     11.40 %
    Annualized adjusted return on average tangible equity (1)   14.53 %     2.01 %     10.24 %     9.56 %     12.07 %
    Annualized adjusted non-interest expense to average assets (4)   1.98 %     2.02 %     1.80 %     1.99 %     1.87 %
    Efficiency ratio (6)   57.20 %     57.86 %     54.81 %     58.27 %     53.26 %
                       
    Asset Quality                  
    Non-accrual loans     $ 67,868         $ 89,934     $ 39,529  
    90+ and still accruing       —           —       —  
    Non-performing loans       67,868           88,061       39,529  
    Foreclosed assets       11,119           9,801       16,487  
    Non-performing assets       78,987           97,862       56,016  
    Non-performing loans to total loans       0.36 %         0.47 %     0.37 %
    Non-performing assets to total assets       0.33 %         0.41 %     0.40 %
    Allowance for loan losses     $ 188,331         $ 191,175     $ 107,563  
    Allowance for loan losses to total non-performing loans       277.50 %         217.09 %     272.11 %
    Allowance for loan losses to total loans       1.00 %         1.02 %     1.01 %
    Net loan charge-offs $ 6,756     $ 1,340     $ 5,510     $ 9,067     $ 7,266  
    Annualized net loan charge-offs to average total loans   0.14 %     0.04 %     0.21 %     0.08 %     0.09 %
                       
    Average Balance Sheet Data                  
    Assets $ 24,248,038     $ 19,197,041     $ 13,976,610     $ 19,198,113     $ 13,848,351  
    Loans, net   18,531,939       14,649,413       10,470,843       14,631,071       10,269,022  
    Earning assets   21,809,226       17,385,819       12,735,938       17,305,446       12,574,437  
    Core deposits   15,394,715       12,257,244       9,212,202       12,271,839       9,408,156  
    Borrowings   2,125,149       2,158,193       1,780,655       2,074,958       1,556,619  
    Interest-bearing liabilities   17,304,569       13,856,039       9,826,064       13,757,895       9,554,204  
    Stockholders’ equity   2,660,470       2,127,469       1,654,920       2,163,856       1,645,093  
    Average yield on interest-earning assets   5.84 %     5.67 %     4.89 %     5.61 %     4.76 %
    Average cost of interest-bearing liabilities   3.19 %     3.09 %     2.50 %     3.06 %     2.07 %
                       

    Notes and Reconciliation of GAAP and Non-GAAP Financial Measures
    (Dollars in Thousands, except share data)

    The Company has presented the following non-GAAP (U.S. Generally Accepted Accounting Principles) financial measures because it believes that these measures provide useful and comparative information to assess trends in the Company’s results of operations and financial condition. Presentation of these non-GAAP financial measures is consistent with how the Company evaluates its performance internally and these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the Company’s industry. Investors should recognize that the Company’s presentation of these non-GAAP financial measures might not be comparable to similarly-titled measures of other companies. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures and the Company strongly encourages a review of its condensed consolidated financial statements in their entirety.

                         
    (1) Annualized Adjusted Return on Average Assets, Equity and Tangible Equity                    
        Three Months Ended   Nine Months Ended
        September 30,   June 30,   September 30,   September 30,   September 30,
          2024       2024       2023       2024       2023  
    Net Income   $ 46,405     $ (11,485 )   $ 28,547     $ 67,001     $ 101,086  
    Merger-related transaction costs     15,567       18,915       2,289       36,684       5,349  
    Less: income tax expense     (4,306 )     (4,625 )     (486 )     (9,274 )     (1,015 )
    Annualized adjusted net income   $ 57,666     $ 2,805     $ 30,350     $ 94,411     $ 105,420  
    Less: Amortization of Intangibles (net of tax)   $ 8,551     $ 4,532     $ 503     $ 13,577     $ 1,560  
    Annualized adjusted net income for annualized adjusted return on average tangible equity   $ 66,217     $ 7,337     $ 30,853     $ 107,988     $ 106,980  
                         
    Annualized Adjusted Return on Average Assets     0.95 %     0.06 %     0.86 %     0.66 %     1.02 %
    Annualized Adjusted Return on Average Equity     8.62 %     0.53 %     7.30 %     5.83 %     8.59 %
    Annualized Adjusted Return on Average Tangible Equity     14.53 %     2.01 %     10.24 %     9.56 %     12.07 %
                         
    (2) Annualized adjusted pre-tax, pre-provision (“PTPP”) returns on average assets, average equity and average tangible equity                    
        Three Months Ended   Nine Months Ended
        September 30,   June 30,   September 30,   September 30,   September 30,
          2024       2024       2023       2024       2023  
    Net income (loss)   $ 46,405     $ (11,485 )   $ 28,547     $ 67,001     $ 101,086  
    Adjustments to net income (loss):                    
    Provision for credit losses     9,299       69,705       12,541       78,684       29,031  
    Net loss on Lakeland bond sale     —       2,839       —       —       —  
    Merger-related transaction costs     15,567       18,915       2,289       36,684       5,349  
    Income tax expense (benefit)     18,850       (9,833 )     8,843       19,905       34,925  
    PTPP income   $ 90,121     $ 70,141     $ 52,220     $ 202,274     $ 170,391  
                         
    Annualized PTPP income   $ 358,525     $ 282,106     $ 207,177     $ 270,191     $ 227,812  
    Average assets   $ 24,248,038     $ 19,197,041     $ 13,976,610     $ 19,198,113     $ 13,848,351  
    Average equity   $ 2,660,470     $ 2,127,469     $ 1,654,920     $ 2,163,856     $ 1,645,093  
    Average tangible equity   $ 1,813,327     $ 1,468,630     $ 1,195,787     $ 1,508,594     $ 1,185,222  
                         
    Annualized PTPP return on average assets     1.48 %     1.47 %     1.48 %     1.41 %     1.65 %
    Annualized PTPP return on average equity     13.48 %     13.26 %     12.52 %     12.49 %     13.85 %
    Annualized PTPP return on average tangible equity     19.77 %     19.21 %     17.33 %     17.91 %     19.22 %
                         
    (3) Book and Tangible Book Value per Share        
                September 30,   June 30,   December 31,
                  2024       2024       2023  
    Total stockholders’ equity           $ 2,621,058     $ 2,555,646     $ 1,690,596  
    Less: total intangible assets             839,223       851,507       457,942  
    Total tangible stockholders’ equity           $ 1,781,835     $ 1,704,139     $ 1,232,654  
                         
    Shares outstanding             130,448,599       130,380,393       75,537,186  
                         
    Book value per share (total stockholders’ equity/shares outstanding)           $ 20.09     $ 19.60     $ 22.38  
    Tangible book value per share (total tangible stockholders’ equity/shares outstanding)           $ 13.66     $ 13.07     $ 16.32  
                         
    (4) Annualized Return on Average Tangible Equity                    
        Three Months Ended   Nine Months Ended
        September 30,   June 30,   September 30,   September 30,   September 30,
          2024       2024       2023       2024       2023  
    Total average stockholders’ equity   $ 2,660,470     $ 2,127,469     $ 1,654,920     $ 2,163,856     $ 1,645,093  
    Less: total average intangible assets     847,143       658,839       459,133       655,262       459,871  
    Total average tangible stockholders’ equity   $ 1,813,327     $ 1,468,630     $ 1,195,787     $ 1,508,594     $ 1,185,222  
                         
    Net income (loss)   $ 46,405     $ (11,485 )   $ 28,547     $ 67,001     $ 101,086  
    Less: Amortization of Intangibles, net of tax     8,551       4,532       503       13,577       1,560  
    Total net income (loss)   $ 54,956     $ (6,953 )   $ 29,050     $ 80,578     $ 102,646  
                         
    Annualized return on average tangible equity (net income/total average tangible stockholders’ equity)     12.06 %   (1.90)        %     9.64 %     7.13 %     11.58 %
                         
    (5) Annualized Adjusted Non-Interest Expense to Average Assets                    
        Three Months Ended   Nine Months Ended
        September 30,   June 30,   September 30,   September 30,   September 30,
          2024       2024       2023       2024       2023  
    Reported non-interest expense   $ 136,002     $ 115,394     $ 65,625     $ 323,224     $ 199,485  
    Adjustments to non-interest expense:                    
    Merger-related transaction costs     15,567       18,915       2,289       36,684       5,349  
    Adjusted non-interest expense   $ 120,435     $ 96,479     $ 63,336     $ 286,540     $ 194,136  
                         
    Annualized adjusted non-interest expense   $ 479,122     $ 388,036     $ 251,279     $ 382,751     $ 259,559  
                         
    Average assets   $ 24,248,038     $ 19,197,041     $ 13,976,610     $ 19,198,113     $ 13,848,351  
                         
    Annualized adjusted non-interest expense/average assets     1.98 %     2.02 %     1.80 %     1.99 %     1.87 %
                         
    (6) Efficiency Ratio Calculation                    
        Three Months Ended   Nine Months Ended
        September 30,   June 30,   September 30,   September 30,   September 30,
          2024       2024       2023       2024       2023  
    Net interest income   $ 183,701     $ 141,506     $ 96,236     $ 418,877     $ 303,666  
    Reported non-interest income     26,855       22,275       19,320       69,937       60,861  
    Adjustments to non-interest income:                    
    Net (gain) loss on securities transactions     (2 )     2,973       13       2,972       (37 )
    Adjusted non-interest income     26,853       25,248       19,333       72,909       60,824  
    Total income   $ 210,554     $ 166,754     $ 115,569     $ 491,786     $ 364,490  
                         
    Adjusted non-interest expense   $ 120,435     $ 96,479     $ 63,336     $ 286,540     $ 194,136  
                         
    Efficiency ratio (adjusted non-interest expense/income)     57.20 %     57.86 %     54.80 %     58.27 %     53.26 %
                         
    PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
    Consolidated Statements of Financial Condition
    September 30, 2024 (Unaudited) and December 31, 2023
    (Dollars in Thousands)
           
    Assets September 30, 2024   December 31, 2023
    Cash and due from banks $ 244,064     $ 180,241  
    Short-term investments   25       14  
    Total cash and cash equivalents   244,089       180,255  
    Available for sale debt securities, at fair value   2,725,110       1,690,112  
    Held to maturity debt securities, net of allowance (fair value of $322,427 as of September 30, 2024 (unaudited) and $352,601 as of December 31, 2023)   332,021       363,080  
    Equity securities, at fair value   20,044       1,270  
    Federal Home Loan Bank stock   96,219       79,217  
    Loans held for sale   5,757       1,785  
    Loans held for investment   18,794,609       10,871,916  
    Less allowance for credit losses   191,175       107,200  
    Net loans   18,609,191       10,766,501  
    Foreclosed assets, net   9,801       11,651  
    Banking premises and equipment, net   124,955       70,998  
    Accrued interest receivable   89,866       58,966  
    Intangible assets   839,223       457,942  
    Bank-owned life insurance   403,648       243,050  
    Other assets   548,348       287,768  
    Total assets $ 24,042,515     $ 14,210,810  
           
    Liabilities and Stockholders’ Equity      
    Deposits:      
    Demand deposits $ 13,548,480     $ 8,020,889  
    Savings deposits   1,671,209       1,175,683  
    Certificates of deposit of $250,000 or more   800,005       218,549  
    Other time deposits   2,356,491       877,393  
    Total deposits   18,376,185       10,292,514  
    Mortgage escrow deposits   48,007       36,838  
    Borrowed funds   2,214,512       1,970,033  
    Subordinated debentures   414,184       10,695  
    Other liabilities   368,569       210,134  
    Total liabilities   21,421,457       12,520,214  
           
    Stockholders’ equity:      
    Preferred stock, $0.01 par value, 50,000,000 shares authorized, none issued   —       —  
    Common stock, $0.01 par value, 200,000,000 shares authorized, 137,565,966 shares issued and 130,448,599 shares outstanding as of September 30, 2024 and 75,537,186 outstanding as of December 31, 2023.   1,376       832  
    Additional paid-in capital   1,871,343       989,058  
    Retained earnings   972,997       974,542  
    Accumulated other comprehensive loss   (93,049 )     (141,115 )
    Treasury stock   (129,148 )     (127,825 )
    Unallocated common stock held by the Employee Stock Ownership Plan   (2,461 )     (4,896 )
    Common Stock acquired by the Directors’ Deferred Fee Plan   (2,247 )     (2,694 )
    Deferred Compensation – Directors’ Deferred Fee Plan   2,247       2,694  
    Total stockholders’ equity   2,621,058       1,690,596  
    Total liabilities and stockholders’ equity $ 24,042,515     $ 14,210,810  
                   
    PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
    Consolidated Statements of Income
    Three months ended September 30, 2024, June 30, 2024 and September 30, 2023, and nine months ended September 30, 2024 and 2023 (Unaudited)
    (Dollars in Thousands, except per share data)
                       
      Three Months Ended   Nine Months Ended
      September 30,   June 30,   September 30,   September 30,   September 30,
        2024     2024       2023     2024       2023
    Interest and dividend income:                  
    Real estate secured loans $ 197,857   $ 156,318     $ 104,540   $ 461,632     $ 299,830
    Commercial loans   81,183     58,532       33,806     175,815       93,915
    Consumer loans   12,947     8,351       4,746     25,820       13,419
    Available for sale debt securities, equity securities and Federal Home Loan Bank stock   25,974     20,394       11,886     58,698       34,748
    Held to maturity debt securities   2,136     2,357       2,334     6,761       7,059
    Deposits, federal funds sold and other short-term investments   2,425     1,859       885     5,466       2,678
    Total interest income   322,522     247,811       158,197     734,192       451,649
                       
    Interest expense:                  
    Deposits   110,009     81,058       44,923     243,602       108,880
    Borrowed funds   19,923     20,566       16,765     57,871       38,329
    Subordinated debt   8,889     4,681       273     13,842       774
    Total interest expense   138,821     106,305       61,961     315,315       147,983
    Net interest income   183,701     141,506       96,236     418,877       303,666
    Provision charge for credit losses   9,299     69,705       12,541     78,684       29,031
    Net interest income after provision for credit losses   174,402     71,801       83,695     340,193       274,635
                       
    Non-interest income:                  
    Fees   9,816     8,699       6,132     24,426       18,294
    Wealth management income   7,620     7,769       6,992     22,878       20,826
    Insurance agency income   3,631     4,488       3,224     12,912       11,175
    Bank-owned life insurance   4,308     3,323       1,820     9,448       4,838
    Net gain (loss) on securities transactions   2     (2,973 )     13     (2,972 )     37
    Other income   1,478     969       1,139     3,245       5,691
    Total non-interest income   26,855     22,275       19,320     69,937       60,861
                       
    Non-interest expense:                  
    Compensation and employee benefits   63,468     54,888       35,702     158,404       109,724
    Net occupancy expense   12,790     11,142       8,113     32,452       24,474
    Data processing expense   10,481     8,433       5,312     25,698       16,536
    FDIC Insurance   4,180     3,100       1,628     9,553       5,688
    Amortization of intangibles   12,231     6,483       720     19,420       2,231
    Advertising and promotion expense   1,524     1,171       1,133     3,661       3,722
    Merger-related expenses   15,567     18,915       2,289     36,684       5,349
    Other operating expenses   15,761     11,262       10,728     37,352       31,761
    Total non-interest expense   136,002     115,394       65,625     323,224       199,485
    Income (loss) before income tax expense   65,255     (21,318 )     37,390     86,906       136,011
    Income tax expense (benefit)   18,850     (9,833 )     8,843     19,905       34,925
    Net income (loss) $ 46,405   $ (11,485 )   $ 28,547   $ 67,001     $ 101,086
                       
    Basic earnings per share $ 0.36   $ (0.11 )   $ 0.38   $ 0.65     $ 1.35
    Average basic shares outstanding   129,941,845     102,957,521       74,909,083     102,819,042       74,793,530
                       
    Diluted earnings per share $ 0.36   $ (0.11 )   $ 0.38   $ 0.65     $ 1.35
    Average diluted shares outstanding   130,004,870     102,957,521       74,914,205     102,845,261       74,816,606
                                     
    PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
    Net Interest Margin Analysis
    Quarterly Average Balances
    (Dollars in Thousands) (Unaudited)
      September 30, 2024   June 30, 2024   September 30, 2023
      Average Balance   Interest   Average
    Yield/Cost    		   Average Balance   Interest   Average
    Yield/Cost    		   Average Balance   Interest   Average
    Yield/Cost
    Interest-Earning Assets:                                  
    Deposits $ 179,313   $ 2,425   5.38 %   $ 40,228   $ 1,859   5.38 %   $ 74,183   $ 884   4.73 %
    Federal funds sold and other short-term investments   —     —   — %     0     —   — %     57     1   4.00 %
    Available for sale debt securities   2,644,262     24,884   3.72 %     2,244,725     17,647   3.14 %     1,724,833     10,127   2.35 %
    Held to maturity debt securities, net (1)   342,217     2,136   2.50 %     352,216     2,357   2.68 %     373,681     2,334   2.50 %
    Equity securities, at fair value   19,654     —   — %     10,373     —   — %     1,068     —   — %
    Federal Home Loan Bank stock   91,841     1,090   4.75 %     88,864     2,747   12.36 %     91,273     1,759   7.71 %
    Net loans: (2)                                  
    Total mortgage loans   13,363,265     197,857   5.83 %     10,674,109     156,318   5.81 %     7,881,193     104,540   5.21 %
    Total commercial loans   4,546,088     81,183   7.05 %     3,514,602     58,532   6.62 %     2,289,267     33,806   5.81 %
    Total consumer loans   622,586     12,947   8.27 %     460,702     8,351   7.29 %     300,383     4,746   6.27 %
    Total net loans   18,531,939     291,987   6.21 %     14,649,413     223,201   6.05 %     10,470,843     143,092   5.37 %
    Total interest-earning assets $ 21,809,226   $ 322,522   5.84 %   $ 17,385,819   $ 247,811   5.67 %   $ 12,735,938   $ 158,197   4.89 %
                                       
    Non-Interest Earning Assets:                                  
    Cash and due from banks   341,505             37,621             82,522        
    Other assets   2,097,307             1,773,601             1,158,150        
    Total assets $ 24,248,038           $ 19,197,041           $ 13,976,610        
                                       
    Interest-Bearing Liabilities:                                  
    Demand deposits $ 9,942,053   $ 74,864   3.00 %   $ 7,935,543   $ 58,179   2.95 %   $ 5,741,052   $ 35,290   2.44 %
    Savings deposits   1,711,502     1,006   0.23 %     1,454,784     832   0.23 %     1,240,951     592   0.19 %
    Time deposits   3,112,598     34,139   4.36 %     2,086,433     22,047   4.25 %     1,052,793     9,041   3.41 %
    Total deposits   14,766,153     110,009   2.96 %     11,476,760     81,058   2.84 %     8,034,796     44,923   2.22 %
                                       
    Borrowed funds   2,125,149     19,923   3.73 %     2,158,193     20,566   3.83 %     1,780,655     16,765   3.74 %
    Subordinated debentures   413,267     8,889   8.56 %     221,086     4,681   8.52 %     10,613     273   10.24 %
    Total interest-bearing liabilities   17,304,569     138,821   3.19 %     13,856,039     106,305   3.09 %     9,826,064     61,961   2.50 %
                                       
    Non-Interest Bearing Liabilities:                                  
    Non-interest bearing deposits   3,741,160             2,866,917             2,230,199        
    Other non-interest bearing liabilities   541,839             346,616             265,427        
    Total non-interest bearing liabilities   4,282,999             3,213,533             2,495,626        
    Total liabilities   21,587,568             17,069,572             12,321,690        
    Stockholders’ equity   2,660,470             2,127,469             1,654,920        
    Total liabilities and stockholders’ equity $ 24,248,038           $ 19,197,041           $ 13,976,610        
                                       
    Net interest income     $ 183,701           $ 141,506           $ 96,236    
                                       
    Net interest rate spread         2.65 %           2.58 %           2.39 %
    Net interest-earning assets $ 4,504,657           $ 3,529,780           $ 2,909,874        
                                       
    Net interest margin (3)         3.31 %           3.21 %           2.96 %
                                       
    Ratio of interest-earning assets to total interest-bearing liabilities 1.26x           1.25x           1.30x        
       
    (1 ) Average outstanding balance amounts shown are amortized cost, net of allowance for credit losses.
    (2 ) Average outstanding balances are net of the allowance for loan losses, deferred loan fees and expenses, loan premiums and discounts and include non-accrual loans.
    (3 ) Annualized net interest income divided by average interest-earning assets.
         
    The following table summarizes the quarterly net interest margin for the previous five quarters.      
      9/30/24   6/30/24   3/31/24   12/31/23   9/30/23
      3rd Qtr.   2nd Qtr.   1st Qtr.   4th Qtr.   3rd Qtr.
    Interest-Earning Assets:                  
    Securities 3.69 %   3.40 %   2.87 %   2.79 %   2.67 %
    Net loans 6.21 %   6.05 %   5.51 %   5.50 %   5.37 %
    Total interest-earning assets 5.84 %   5.67 %   5.06 %   5.04 %   4.89 %
                       
    Interest-Bearing Liabilities:                  
    Total deposits 2.96 %   2.84 %   2.60 %   2.47 %   2.22 %
    Total borrowings 3.73 %   3.83 %   3.60 %   3.71 %   3.74 %
    Total interest-bearing liabilities 3.19 %   3.09 %   2.80 %   2.71 %   2.50 %
                       
    Interest rate spread 2.65 %   2.58 %   2.26 %   2.33 %   2.39 %
    Net interest margin 3.31 %   3.21 %   2.87 %   2.92 %   2.96 %
                       
    Ratio of interest-earning assets to interest-bearing liabilities 1.26x   1.25x   1.28x   1.28x   1.30x
                       
    PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
    Net Interest Margin Analysis
    Average Year to Date Balances
    (Dollars in Thousands) (Unaudited)
                           
      September 30, 2024   September 30, 2023
      Average       Average   Average       Average
      Balance   Interest   Yield/Cost   Balance   Interest   Yield/Cost
    Interest-Earning Assets:                      
    Deposits $ 39,280   $ 5,466   5.38 %   $ 69,696   $ 2,676   5.13 %
    Federal funds sold and other short term investments   —     —   — %     58     2   5.34 %
    Available for sale debt securities   2,189,671     52,553   3.19 %     1,777,861     30,819   2.31 %
    Held to maturity debt securities, net (1)   350,529     6,761   2.57 %     379,144     7,059   2.48 %
    Equity securities, at fair value   10,050     —   — %     1,022     —   — %
    Federal Home Loan Bank stock   84,845     6,145   9.66 %     77,634     3,929   6.75 %
    Net loans: (2)                      
    Total mortgage loans   10,682,974     461,632   5.70 %     7,740,591     299,830   5.12 %
    Total commercial loans   3,487,600     175,815   6.69 %     2,225,725     93,915   5.60 %
    Total consumer loans   460,497     25,820   7.49 %     302,706     13,419   5.93 %
    Total net loans   14,631,071     663,267   5.99 %     10,269,022     407,164   5.25 %
    Total interest-earning assets $ 17,305,446   $ 734,192   5.61 %   $ 12,574,437   $ 451,649   4.76 %
                           
    Non-Interest Earning Assets:                      
    Cash and due from banks   229,336             121,801        
    Other assets   1,663,331             1,152,113        
    Total assets $ 19,198,113           $ 13,848,351        
                           
    Interest-Bearing Liabilities:                      
    Demand deposits $ 7,931,251   $ 174,609   2.94 %   $ 5,710,855   $ 85,822   2.01 %
    Savings deposits   1,444,135     2,476   0.23 %     1,315,157     1,582   0.16 %
    Time deposits   2,091,806     66,517   4.25 %     961,010     21,476   2.99 %
    Total deposits   11,467,192     243,602   2.84 %     7,987,022     108,880   1.82 %
    Borrowed funds   2,074,958     57,871   3.73 %     1,556,619     38,329   3.29 %
    Subordinated debentures   215,745     13,842   8.57 %     10,563     774   9.80 %
    Total interest-bearing liabilities $ 13,757,895   $ 315,315   3.06 %   $ 9,554,204   $ 147,983   2.07 %
                           
    Non-Interest Bearing Liabilities:                      
    Non-interest bearing deposits   2,896,453             2,382,144        
    Other non-interest bearing liabilities   379,909             266,910        
    Total non-interest bearing liabilities   3,276,362             2,649,054        
    Total liabilities   17,034,257             12,203,258        
    Stockholders’ equity   2,163,856             1,645,093        
    Total liabilities and stockholders’ equity $ 19,198,113           $ 13,848,351        
                           
    Net interest income     $ 418,877           $ 303,666    
                           
    Net interest rate spread         2.55 %           2.69 %
    Net interest-earning assets $ 3,547,551           $ 3,020,233        
                           
    Net interest margin (3)         3.18 %           3.19 %
                           
    Ratio of interest-earning assets to total interest-bearing liabilities 1.26x           1.32x        
                           
                           
    (1) Average outstanding balance amounts shown are amortized cost, net of allowance for credit losses.
    (2) Average outstanding balance are net of the allowance for loan losses, deferred loan fees and expenses, loan premium and discounts and include non-accrual loans.
    (3) Annualized net interest income divided by average interest-earning assets.
     
    The following table summarizes the year-to-date net interest margin for the previous three years.
                 
      Nine Months Ended  
      September 30, 2024   September 30, 2023   September 23, 2022  
    Interest-Earning Assets:            
    Securities 3.33 %   2.57 %   1.72 %  
    Net loans 5.99 %   5.25 %   4.01 %  
    Total interest-earning assets 5.61 %   4.76 %   3.51 %  
                 
    Interest-Bearing Liabilities:            
    Total deposits 2.84 %   1.82 %   0.33 %  
    Total borrowings 3.73 %   3.29 %   0.97 %  
    Total interest-bearing liabilities 3.06 %   2.07 %   0.38 %  
                 
    Interest rate spread 2.55 %   2.69 %   3.13 %  
    Net interest margin 3.18 %   3.19 %   3.24 %  
                 
    Ratio of interest-earning assets to interest-bearing liabilities 1.26x   1.32x   1.38x  

    SOURCE: Provident Financial Services, Inc.

    CONTACT: Investor Relations, 1-732-590-9300 Web Site: http://www.Provident.Bank

    The MIL Network –

  • MIL-OSI: Enstar Announces Changes to Executive Leadership Team

    Source: GlobeNewswire (MIL-OSI)

    • Appoints Paul Brockman as Chief Commercial Officer

    • Names Adrian Thornycroft as Chief Administrative Officer from May 2025

    HAMILTON, Bermuda, Oct. 29, 2024 (GLOBE NEWSWIRE) — Enstar Group Limited (“Enstar”) (Nasdaq: ESGR), today announces changes to its executive leadership team in connection with the upcoming retirement of Orla Gregory, President, at the end the year, and the expanding role of Enstar in the insurance industry.

    Paul Brockman has been appointed as Chief Commercial Officer with immediate effect. Paul has been with Enstar since 2012, most recently in the role of Group Chief Operating Officer. This newly created role reflects the continued expansion of the scope of solutions Enstar can bring to the global insurance industry. Paul has over three decades of experience across the legacy and (re)insurance sectors. His new responsibilities will include corporate development, serving as one of the primary liaisons to the insurance market, engaging with industry leaders, and optimising market opportunities.

    Adrian Thornycroft will join as Chief Administrative Officer in May 2025. Adrian will be based in Bermuda and will assume a number of responsibilities from Orla as well as take a leading role with respect to change strategy. Adrian has extensive operational and leadership experience, having successfully delivered significant business and change programmes at companies such as Brit, Lloyd’s, and MS Amlin.

    The remaining responsibilities under the role of the outgoing President will be assumed by the wider leadership team.

    Dominic Silvester, Enstar CEO, said:

    “With Paul’s depth of legacy expertise and his versatile, wide-ranging experience, we are confident Paul will continue to make a significant impact as we continue to maintain and expand our industry relationships and drive forward our reputation as the leading provider of legacy solutions.

    Adrian’s skillset and expertise aligns perfectly with Enstar’s strategic direction with regard to our operating platform at an important juncture and will further strengthen Enstar’s leadership team.”

    About Enstar
    Enstar is a NASDAQ-listed leading global insurance group that offers capital release solutions through its network of group companies in Bermuda, the United States, the United Kingdom, Continental Europe, Australia and other international locations. A market leader in completing legacy acquisitions, Enstar has acquired over 117 companies and portfolios since its formation. For further information about Enstar, see www.enstargroup.com.

    Cautionary Statement
    This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that include words such as “estimate,” “project,” “plan,” “intend,” “expect,” “anticipate,” “believe,” “would,” “should,” “could,” “seek,” “may,” “will” and similar statements of a future or forward-looking nature identify forward-looking statements for purposes of the federal securities laws or otherwise. These statements include statements regarding the intent, belief or current expectations of the Company and its management team. Investors are cautioned that any such forward-looking statements speak only as of the date they are made, are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, including those related to the satisfaction of any post-closing regulatory requirements.

    Risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements, in addition to those identified above, include: (i) the completion of the proposed transaction on the anticipated terms and timing, (ii) the satisfaction of other conditions to the completion of the proposed transaction, including obtaining required shareholder and regulatory approvals; (iii) the risk that the Company’s stock price may fluctuate during the pendency of the proposed transaction and may decline if the proposed transaction is not completed; (iv) potential litigation relating to the proposed transaction that could be instituted against the Company or its directors, managers or officers, including the effects of any outcomes related thereto; (v) the risk that disruptions from the proposed transaction (including the ability of certain customers to terminate or amend contracts upon a change of control) will harm the Company’s business, including current plans and operations, including during the pendency of the proposed transaction; (vi) the ability of the Company to retain and hire key personnel; (vii) the diversion of management’s time and attention from ordinary course business operations to completion of the proposed transaction and integration matters; (viii) potential adverse reactions or changes to business relationships resulting from the announcement or completion of the proposed transaction; (ix) legislative, regulatory and economic developments; (x) potential business uncertainty, including changes to existing business relationships, during the pendency of the proposed transaction that could affect the Company’s financial performance; (xi) certain restrictions during the pendency of the proposed transaction that may impact the Company’s ability to pursue certain business opportunities or strategic transactions; (xii) unpredictability and severity of catastrophic events, including but not limited to acts of terrorism, outbreaks of war or hostilities or global pandemics, as well as management’s response to any of the aforementioned factors; (xiii) the possibility that the proposed transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events; (xiv) unexpected costs, liabilities or delays associated with the transaction; (xv) the response of competitors to the transaction; (xvi) the occurrence of any event, change or other circumstance that could give rise to the termination of the proposed transaction, including in circumstances requiring the Company to pay a termination fee; (xvii) those risks and uncertainties set forth under the headings “Forward Looking Statements” and “Risk Factors” in the Company’s most recent Annual Report on Form 10-K, as such risk factors may be amended, supplemented or superseded from time to time by other reports filed by the Company with the SEC from time to time, which are available via the SEC’s website at www.sec.gov; and (xviii) those risks described in the Proxy Statement filed with the SEC on October 11, 2024 and available from the sources indicated below.

    These risks, as well as other risks associated with the proposed transaction, are more fully discussed in the Proxy Statement filed with the SEC on October 11, 2024 in connection with the proposed transaction. There can be no assurance that the proposed transaction will be completed, or if it is completed, that it will close within the anticipated time period. These factors should not be construed as exhaustive and should be read in conjunction with the other forward-looking statements. The forward-looking statements relate only to events as of the date on which the statements are made. The Company undertakes no obligation to update any written or oral forward-looking statements or publicly announce any updates or revisions to any of the forward-looking statements contained herein, or to reflect any change in its expectations with regard thereto or any change in events, conditions, circumstances or assumptions underlying such statements, except as required by law. If one or more of these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, our actual results may vary materially from what we may have expressed or implied by these forward-looking statements. We caution that you should not place undue reliance on any of our forward-looking statements. You should specifically consider the factors identified in this communication that could cause actual results to differ. Furthermore, new risks and uncertainties arise from time to time, and it is impossible for us to predict those events or how they may affect the Company.

    Contact:

    For Enstar:
    For Investors: Matthew Kirk (investor.relations@enstargroup.com)
    For Media: Jenna Kerr (communications@enstargroup.com)

    The MIL Network –

  • MIL-OSI Canada: Fleet Diving Unit (Pacific) returns from Multinational Mine Warfare Exercise 

    Source: Government of Canada News (2)

    Members of the Fleet Diving Unit (Pacific) (FDU(P)) have returned to Victoria, B.C., after participating in Multinational Mine Warfare Exercise 24 (MN-MIWEX 24), hosted by the Republic of Korea Navy from October 14-25, 2024, off the coast of Busan, South Korea.

    October 29, 2024 – Esquimalt, B.C. – National Defence / Canadian Armed Forces

    Members of the Fleet Diving Unit (Pacific) (FDU(P)) have returned to Victoria, B.C., after participating in Multinational Mine Warfare Exercise 24 (MN-MIWEX 24), hosted by the Republic of Korea Navy from October 14-25, 2024, off the coast of Busan, South Korea.

    Eleven members from FDU(P), alongside two support staff, participated in the exercise aboard the Republic of Korea Ship (ROKS) Cheon Wang Bong, focusing on mine countermeasures and promoting collective deterrence. During the exercise, the teams conducted drills aimed at detecting and neutralizing mines to establish safe navigation routes, enhancing interoperability among participating nations and improving understanding of the mine warfare environment in the Korean theatre of operations.

    Nations participating alongside FDU(P) on ROKS Cheon Wang Bong included the United States Navy, Royal Australian Navy, and the Philippine Navy. In total, 19 nations took part in MN-MIWEX 24, with dive teams operating on multiple ships throughout. The exercise also included a mine countermeasures symposium held prior to sailing.

    This year, MN-MIWEX 24 was conducted under Operation HORIZON, Canada’s mission to enhance peace and stability in the Indo-Pacific region. This initiative expands the Royal Canadian Navy’s (RCN) opportunities to collaborate closely with partners and allies in the region, allowing Canada to play a more active role in strengthening regional security.

    Media Relations
    Department of National Defence
    Phone: 613-904-3333
    Email: mlo-blm@forces.gc.ca

    MIL OSI Canada News –

  • MIL-OSI Australia: Government and philanthropy partner to empower communities

    Source: Ministers for Social Services

    Joint with:

    The Hon Dr Jim Chalmers MP
    Treasurer 
    Member for Rankin

    The Hon Amanda Rishworth MP
    Minister for Social Services
    Member for Kingston

    The Albanese Labor Government is co-investing alongside philanthropy to develop a national, independent, not-for-profit organisation dedicated to supporting the needs and aspirations of local communities and addressing entrenched disadvantage.

    Our Government recognises that there are disadvantaged communities right around Australia where a national approach on its own will never be enough.

    This is about listening to and empowering local leaders, working with communities and designing services in a way that meets their bespoke needs.

    That’s why the Government is investing $19.3 million over five years to establish Partnerships for Local Action and Community Empowerment (PLACE).

    This funding will be matched by five philanthropy partners: Minderoo Foundation, Paul Ramsay Foundation, the Ian Potter Foundation, the Bryan Foundation and the Dusseldorp Forum.

    PLACE will act as a one-stop shop to identify, support and enhance place-based programs in areas like the early years, youth development, health, education, employment and youth justice.

    PLACE will focus on strengthening the capacity of communities to design and deliver these programs, promote evidence sharing, and improve data governance across place-based initiatives.

    Hundreds of communities and thousands of Australians are expected to be helped by PLACE’s work in its first five years.

    Place-based approaches involve government partnering with local communities to develop collaborative, long-term solutions to complex social problems tailored to individual community needs.

    Place-based programs in Burnie, Tasmania have helped increase year 12 completion from 56 per cent in 2011 to 86 per cent in 2020, and helped reduce unemployment stemming from youth education and employment connection.

    Place-based work in Logan, Queensland over the past decade has helped child vulnerability fall significantly – from about 37 per cent of kids not doing as well as we would like in 2009 down to 29 per cent in the last Australian Early Development Census.

    PLACE will provide the forum and practical tools to replicate the successes of these initiatives in more communities and to enhance existing initiatives.

    This is the next step in the Albanese Government’s efforts to address complex social problems through place-based approaches, building on the $200 million Targeting Entrenched Disadvantage package in the 2023-24 Budget.

    This is all about ensuring no Australian is left behind or held back because of where they grew up.

    More information on PLACE can be found on the Department of Social Services website.

    Quotes attributable to Minister for Social Services Amanda Rishworth:

    “Our Government is pleased to be part of this unique partnership with philanthropy to help empower communities and the people who live in them.

    The need for PLACE emerged from community, which called out the fragmented nature and widespread gaps in local capability of place-based work and the lack of shared learning and best practice solutions to make progress locally.

    I’m excited to see what comes out of PLACE to help those communities and Australians experiencing disadvantage that need it most to thrive.”

    Quotes attributable to Treasurer Jim Chalmers:

    “This is a passion of ours because too many kids in communities like mine are trapped in the cycle of intergenerational disadvantage.

    The best way to solve issues communities face is by listening to them, developing solutions led by local people.

    Place-based support has and can have a profound impact, and now more Australian communities will benefit from these kinds of initiatives.”

    Quotes attributable to CEO of the Paul Ramsay Foundation Professor Kristy Muir:

    “Place-based approaches recognise that local knowledge and experience are essential for creating thriving communities.

    PLACE will be a valuable mechanism for bringing together expertise and resources so we can achieve more through place-based projects, supporting programs and practitioners to create stronger outcomes for local communities. Philanthropy is proud to be partnering with government to help bring PLACE to life.”

    MIL OSI News –

  • MIL-OSI Economics: Good news for the Páramos at COP16

    Source: CAF Development Bank of Latin America

    CAF -development bank of Latin America and the Caribbean, with the support of Cumbres Blancas, positioned itself at the COP16 in Cali as the first multilateral institution to address the protection of the páramos with a comprehensive vision that seeks not only environmental conservation, but also the improvement of the quality of life of local communities that depend on these ecosystems.

    High mountain ecosystems, especially páramos, play a fundamental role in environmental sustainability and the well-being of millions of people. However, climate change, unsustainable land use and other human activities are seriously threatening these strategic ecosystems.

    In this context, the páramos, which are found exclusively in Colombia, Ecuador, Peru and Venezuela, are recognized as the most biodiverse high mountain ecosystems in the world. They are home to more than 35,000 species of plants and vertebrates, ranking first in diversity of birds, mammals and amphibians, and second in reptiles. In addition, these ecosystems provide critical services to more than 60 million people who depend directly on their resources, including water and energy supply for cities such as Bogotá, Quito, and Cuenca.

    The alliance with Cumbres Blancas reflects the institution’s commitment to promote concrete actions for the restoration and protection of the páramos, and aims to develop initiatives such as the construction of community nurseries, the creation of green employment capacities, and the restoration of watersheds, which are vital to guarantee access to drinking water and energy in these regions.

    CAF’s strategic actions in the páramos are aimed not only at mitigating the impacts of climate change, but also at fostering the resilience of the communities living in these territories. Community nurseries, for example, will be a fundamental tool for restoring native flora and reforesting degraded areas. In addition, the creation of green jobs in sectors such as sustainable agriculture and natural resource management will directly contribute to improving the socioeconomic conditions of local populations.

    Alicia Montalvo, CAF’s Climate Action and Positive Biodiversity Manager, said, “The challenge we face is not only to protect the biodiversity of the páramos, but to translate our knowledge and efforts into concrete actions to ensure their preservation. Our collaboration with ACTO and other institutions is key to obtaining accurate data and coordinating regional efforts, ensuring that resources are optimally invested where they are most needed.

    CAF has already launched several initiatives in the region, ranging from ecological restoration to the promotion of sustainable bio-businesses. One of the most outstanding examples is the work being carried out with the 56 Puruhá indigenous communities of the Cotopaxi páramo, in Ecuador, through a bio-business project promoted together with the Global Environmental Facility (GEF), the Ministry of the Environment and the Heifer Foundation. This project aims to strengthen the organic quinoa production chain and improve the socioeconomic conditions of more than 600 families.

    In addition, CAF is promoting, in collaboration with the GEF, a project that seeks to reduce the climate risk affecting paramo populations in Colombia, Ecuador, Peru, and Bolivia. This initiative will directly benefit more than 360,000 people, improving the capacity to adapt to climate change in these vulnerable areas. The goal is to ensure that these strategic ecosystems can continue to provide vital services to local populations.

    MIL OSI Economics –

  • MIL-OSI New Zealand: Universities – Anna Smaill named as 2025 International Institute of Modern Letters Writer in Residence – Vic

    Source: Te Herenga Waka—Victoria University of Wellington

    Acclaimed novelist Anna Smaill has been appointed as Te Herenga Waka—Victoria University of Wellington International Institute of Modern Letters (IIML) and Creative New Zealand Writer in Residence for 2025.

    Anna began her publishing career with a volume of poetry, The Violinist in Spring, which was released in 2005 by Te Herenga Waka University Press. Her first novel The Chimes won the prestigious award for Best Novel at the 2016 World Fantasy Awards. It was also longlisted for the Booker Prize and translated into four languages. Her second novel Bird Life was published in 2023 in the US, UK, and Australia to excellent reviews, with The Times (UK) calling it “a deeply affecting novel [that] transcend[s] cultural barriers while reaching through them to the essentially human”. Locally, it was longlisted for the Ockham Book Awards.

    While holding the residency at the IIML, Anna will work on a novel tentatively titled The Blazing, which she describes as “part archival thriller, part coming-of-age story”. Set in both the US and UK, the novel will be “an examination of the value and worth of art and history in the midst of cultural collapse, and will explore ideas of provenance and whakapapa. In testing how individual stories can ripple outward to effect historical change, it will follow a path back to Aotearoa New Zealand,” said Anna.

    Director of the International Institute of Modern Letters Damien Wilkins said, “Anna’s two novels put her in the front rank of writers in this country and we’re thrilled to have her in Bill Manhire House next year”.

    Commenting on the appointment, Anna said, “I am so grateful for the chance to work on my next book at the International Institute of Modern Letters in 2025, the place where I first started to take myself seriously as a writer. The residency position represents time and creative freedom. But even more it represents the collective mana of the institute and all the writers it has fostered. I feel very lucky to be part of it”.

    Anna takes up the residency at the IIML on 1 February 2025.

    In 2001, Anna completed an MA in Creative Writing at the IIML. She subsequently lived and studied overseas, receiving a PhD in English Literature from University College, University of London. She has worked as an academic and as a senior communications advisor. Most recently she was the team leader of Te Papa’s English writing team. Anna is also an accomplished literary critic, having published articles on writers such as Janet Frame and Bill Manhire.

    In 2015, Anna was a finalist in the Wellingtonian of the Year, Arts category. She also received a New Generation Award that year from the Arts Foundation.

    MIL OSI New Zealand News –

  • MIL-OSI: Precision Drilling Announces 2024 Third Quarter Unaudited Financial Results

    Source: GlobeNewswire (MIL-OSI)

    CALGARY, Alberta, Oct. 29, 2024 (GLOBE NEWSWIRE) — This news release contains “forward-looking information and statements” within the meaning of applicable securities laws. For a full disclosure of the forward-looking information and statements and the risks to which they are subject, see the “Cautionary Statement Regarding Forward-Looking Information and Statements” later in this news release. This news release contains references to certain Financial Measures and Ratios, including Adjusted EBITDA (earnings before income taxes, loss (gain) on investments and other assets, gain on repurchase of unsecured senior notes, finance charges, foreign exchange, gain on asset disposals and depreciation and amortization), Funds Provided by (Used in) Operations, Net Capital Spending, Working Capital and Total Long-term Financial Liabilities. These terms do not have standardized meanings prescribed under International Financial Reporting Standards (IFRS) Accounting Standards and may not be comparable to similar measures used by other companies. See “Financial Measures and Ratios” later in this news release.

    Precision Drilling Corporation (“Precision” or the “Company”) (TSX:PD; NYSE:PDS) delivered strong third quarter financial results, demonstrating the resilience of the business and its robust cash flow potential. Year to date, Precision has already achieved the low end of its debt reduction target range and is well on track to allocate 25% to 35% of its free cash flow to share buybacks in 2024.

    Financial Highlights

    • Revenue was $477 million and exceeded the $447 million realized in the third quarter of 2023 as activity increased in Canada and internationally, which more than offset lower activity in the U.S.
    • Adjusted EBITDA(1) was $142 million, including a share-based compensation recovery of $0.2 million. In 2023, third quarter Adjusted EBITDA was $115 million and included share-based compensation charges of $31 million.
    • Net earnings was $39 million or $2.77 per share, nearly doubling the $20 million or $1.45 per share in 2023.
    • Completion and Production Services revenue increased 27% over the same period last year to $73 million, while Adjusted EBITDA rose 40% to $20 million, reflecting the successful integration of the CWC Energy Services (CWC) acquisition in late 2023.
    • Internationally, revenue increased 21% over the third quarter of last year as the Company realized US$35 million of contract drilling revenue versus US$29 million in 2023. Revenue for the third quarter of 2024 was negatively impacted by fewer rig moves and planned rig recertifications that accounted for 44 non-billable utilization days.
    • Debt reduction during the quarter was $49 million and total $152 million year to date. Share repurchases during the quarter were $17 million and total $50 million year to date.
    • Increased our 2024 planned capital expenditures from $195 million to $210 million to fund multiple contracted rig upgrades and the strategic purchase of drill pipe for use in 2025.

    Operational Highlights

    • Canada’s activity increased 25%, averaging 72 active drilling rigs versus 57 in the third quarter of 2023. Our Super Triple and Super Single rigs are in high demand and approaching full utilization.
    • Canadian revenue per utilization day was $32,325 and comparable to the $32,224 in the same period last year.
    • U.S. activity averaged 35 drilling rigs compared to 41 for the third quarter of 2023.
    • U.S. revenue per utilization day was US$32,949 versus US$35,135 in the same quarter last year.
    • International activity increased 33% compared to the third quarter of 2023, with eight drilling rigs fully contracted this year following rig reactivations in 2023. International revenue per utilization day was US$47,223 compared to US$51,570 in the third quarter of 2023 due to fewer rig moves and planned rig recertifications completed in 2024.
    • Service rig operating hours increased 34% over the same quarter last year totaling 62,835 hours driven by the CWC acquisition.
    • Formed a strategic Joint Partnership (Partnership) with Indigenous partners to provide well servicing operations in northeast British Columbia.

    (1) See “FINANCIAL MEASURES AND RATIOS.”

    MANAGEMENT COMMENTARY

    “Precision’s international and Canadian businesses led our third quarter results, with revenue, Adjusted EBITDA, and net income all improving over the same period last year, demonstrating the resilience of our High Performance, High Value strategy and geographic exposure. Our cash flow conversion this quarter enabled us to repay debt, buy back shares, and continue to invest in our Super Series fleet. We have already achieved the low end of our debt repayment target range for this year and expect to be less than a year away from meeting our long-term target of a Net Debt to Adjusted EBITDA ratio(1) of less than one time.

    “Canadian fundamentals for heavy oil, condensate, and LNG remain strong due to the additional takeaway capacity. The Trans Mountain oil pipeline expansion is driving higher and stable returns for producers, who are accelerating heavy oil and condensate targeted drilling plans, while Canada’s first LNG project is expected to stabilize natural gas pricing and further stimulate activity in the Montney in 2025. As the leading provider of high-quality and reliable services in Canada, demand for our Super Series fleet remains high. Today, we have 75 rigs operating, with our Super Triple and Super Single rigs nearly fully utilized. We expect strong customer demand and utilization to continue well beyond 2025.

    “In the U.S., our rig count has been range-bound for the last several months, with 35 rigs operating today. Volatile commodity prices, customer consolidation, and budget exhaustion are all headwinds that we expect will continue to suppress activity for the remainder of the year. We are encouraged by recent momentum in our contract book with seven new contracts secured for oil and natural gas drilling projects that are expected to begin late this year for 2025 drilling programs. Looking ahead, we anticipate that the next wave of additional Gulf Coast LNG export facilities, coal plant retirements, and a build-out of AI data centers should drive further natural gas drilling and support sustained natural gas demand.

    “Precision’s international operations provide a stable foundation for earnings and cash flow as our rigs are under long-term contracts that extend into 2028. Our well servicing business further complements our stability as we remain the premier well service provider in Canada where demand continues to outpace manned service rigs. In 2023, we repositioned these businesses with rig reactivations and our CWC acquisition and as a result, each business is on track to increase its 2024 Adjusted EBITDA by approximately 50% over the prior year.

    “I am proud of the discipline Precision continues to show throughout the organization and we remain focused on our strategic priorities, which include generating free cash flow, improving capital returns to shareholders, and delivering operational excellence. With robust Canadian market fundamentals, an improving long-term outlook for the U.S., and a focused strategy, I am confident we will continue to drive higher total shareholder returns. I would like to thank our team for executing at the highest operating levels and generating strong financial performance and value for our customers,” stated Kevin Neveu, Precision’s President and CEO.

    (1) See “FINANCIAL MEASURES AND RATIOS.”

    SELECT FINANCIAL AND OPERATING INFORMATION

    Financial Highlights

      For the three months ended September 30,     For the nine months ended September 30,  
    (Stated in thousands of Canadian dollars, except per share amounts)   2024       2023     % Change       2024       2023     % Change  
    Revenue   477,155       446,754       6.8       1,434,157       1,430,983       0.2  
    Adjusted EBITDA(1)   142,425       114,575       24.3       400,695       459,887       (12.9 )
    Net earnings   39,183       19,792       98.0       96,400       142,522       (32.4 )
    Cash provided by operations   79,674       88,500       (10.0 )     319,292       330,316       (3.3 )
    Funds provided by operations(1)   113,322       91,608       23.7       342,837       388,220       (11.7 )
                                       
    Cash used in investing activities   38,852       34,278       13.3       141,032       157,157       (10.3 )
    Capital spending by spend category(1)                                  
    Expansion and upgrade   7,709       13,479       (42.8 )     30,501       39,439       (22.7 )
    Maintenance and infrastructure   56,139       38,914       44.3       127,297       108,463       17.4  
    Proceeds on sale   (5,647 )     (6,698 )     (15.7 )     (21,825 )     (20,724 )     5.3  
    Net capital spending(1)   58,201       45,695       27.4       135,973       127,178       6.9  
                                       
    Net earnings per share:                                  
    Basic   2.77       1.45       91.0       6.74       10.45       (35.5 )
    Diluted   2.31       1.45       59.3       6.73       9.84       (31.6 )
    Weighted average shares outstanding:                                  
    Basic   14,142       13,607       3.9       14,312       13,643       4.9  
    Diluted   14,890       13,610       9.4       14,317       14,858       (3.6 )

    (1) See “FINANCIAL MEASURES AND RATIOS.”

    Operating Highlights

      For the three months ended September 30,     For the nine months ended September 30,  
      2024     2023     % Change     2024     2023     % Change  
    Contract drilling rig fleet   214       224       (4.5 )     214       224       (4.5 )
    Drilling rig utilization days:                                  
    U.S.   3,196       3,815       (16.2 )     9,885       13,823       (28.5 )
    Canada   6,586       5,284       24.6       17,667       15,247       15.9  
    International   736       554       32.9       2,192       1,439       52.3  
    Revenue per utilization day:                                  
    U.S. (US$)   32,949       35,135       (6.2 )     33,011       35,216       (6.3 )
    Canada (Cdn$)   32,325       32,224       0.3       34,497       32,583       5.9  
    International (US$)   47,223       51,570       (8.4 )     51,761       51,306       0.9  
    Operating costs per utilization day:                                  
    U.S. (US$)   22,207       21,655       2.5       22,113       20,217       9.4  
    Canada (Cdn$)   19,448       18,311       6.2       20,196       19,239       5.0  
                                       
    Service rig fleet   165       121       36.4       165       121       36.4  
    Service rig operating hours   62,835       46,894       34.0       194,390       144,944       34.1  


    Drilling Activity

      Average for the quarter ended 2023   Average for the quarter ended 2024  
      Mar. 31     June 30     Sept. 30     Dec. 31     Mar. 31     June 30     Sept. 30  
    Average Precision active rig count(1):                                        
    U.S.   60       51       41       45       38       36       35  
    Canada   69       42       57       64       73       49       72  
    International   5       5       6       8       8       8       8  
    Total   134       98       104       117       119       93       115  

    (1) Average number of drilling rigs working or moving.

    Financial Position

    (Stated in thousands of Canadian dollars, except ratios) September 30, 2024     December 31, 2023(2)  
    Working capital(1)   166,473       136,872  
    Cash   24,304       54,182  
    Long-term debt   787,008       914,830  
    Total long-term financial liabilities(1)   858,765       995,849  
    Total assets   2,887,996       3,019,035  
    Long-term debt to long-term debt plus equity ratio (1)   0.32       0.37  

    (1) See “FINANCIAL MEASURES AND RATIOS.”
    (2) Comparative period figures were restated due to a change in accounting policy. See “CHANGE IN ACCOUNTING POLICY.”

    Summary for the three months ended September 30, 2024:

    • Revenue increased to $477 million compared with $447 million in the third quarter of 2023 as a result of higher Canadian and international activity, partially offset by lower U.S. activity, day rates and lower idle but contract rig revenue.
    • Adjusted EBITDA was $142 million as compared with $115 million in 2023, primarily due to increased Canadian and international results and lower share-based compensation. Please refer to “Other Items” later in this news release for additional information on share-based compensation.
    • Adjusted EBITDA as a percentage of revenue was 30% as compared with 26% in 2023.
    • Generated cash from operations of $80 million, reduced debt by $49 million, repurchased $17 million of shares, and ended the quarter with $24 million of cash and more than $500 million of available liquidity.
    • Revenue per utilization day, excluding the impact of idle but contracted rigs was US$32,949 compared with US$33,543 in 2023, a decrease of 2%. Sequentially, revenue per utilization day, excluding idle but contracted rigs, was largely consistent with the second quarter of 2024. U.S. revenue per utilization day was US$32,949 compared with US$35,135 in 2023. The decrease was primarily the result of lower fleet average day rates and idle but contracted rig revenue, partially offset by higher recoverable costs. We did not recognize revenue from idle but contracted rigs in the quarter as compared with US$6 million in 2023.
    • U.S. operating costs per utilization day increased to US$22,207 compared with US$21,655 in 2023. The increase is mainly due to higher recoverable costs and fixed costs being spread over fewer activity days, partially offset by lower repairs and maintenance. Sequentially, operating costs per utilization day were largely consistent with the second quarter of 2024.
    • Canadian revenue per utilization day was $32,325, largely consistent with the $32,224 realized in 2023. Sequentially, revenue per utilization day decreased $3,750 due to our rig mix, partially offset by higher fleet-wide average day rates.
    • Canadian operating costs per utilization day increased to $19,448, compared with $18,311 in 2023, resulting from higher repairs and maintenance and rig reactivation costs. Sequentially, daily operating costs decreased $2,204 due to lower labour expenses due to rig mix, recoverable expenses and repairs and maintenance.
    • Internationally, third quarter revenue increased 21% over 2023 as we realized revenue of US$35 million versus US$29 million in the prior year. Our higher revenue was primarily the result of a 33% increase in activity, partially offset by lower average revenue per utilization day. International revenue per utilization day was US$47,223 compared with US$51,570 in 2023 due to fewer rig moves and planned rig recertifications that accounted for 44 non-billable utilization days.
    • Completion and Production Services revenue was $73 million, an increase of $16 million from 2023, as our third quarter service rig operating hours increased 34%.
    • General and administrative expenses were $23 million as compared with $44 million in 2023 primarily due to lower share-based compensation charges.
    • Net finance charges were $17 million, a decrease of $3 million compared with 2023 as a result of lower interest expense on our outstanding debt balance.
    • Capital expenditures were $64 million compared with $52 million in 2023 and by spend category included $8 million for expansion and upgrades and $56 million for the maintenance of existing assets, infrastructure, and intangible assets.
    • Increased expected capital spending in 2024 to $210 million, an increase of $15 million, due to the strategic purchase of drill pipe before new import tariffs take effect and additional customer-backed upgrades.
    • Income tax expense for the quarter was $14 million as compared with $8 million in 2023. During the third quarter, we continue to not recognize deferred tax assets on certain international operating losses.
    • Reduced debt by $49 million from the redemption of US$33 million of 2026 unsecured senior notes and US$3 million repayment of our U.S. Real Estate Credit Facility.
    • Renewed our Normal Course Issuer Bid (NCIB) and repurchased $17 million of common shares during the third quarter.

    Summary for the nine months ended September 30, 2024:

    • Revenue for the first nine months of 2024 was $1,434 million, consistent 2023.
    • Adjusted EBITDA for the period was $401 million as compared with $460 million in 2023. Our lower Adjusted EBITDA was primarily attributed to decreased U.S. drilling results and higher share-based compensation, partially offset by the strengthening of Canadian and international results.
    • Cash provided by operations was $319 million as compared with $330 million in 2023. Funds provided by operations were $343 million, a decrease of $45 million from the comparative period.
    • General and administrative costs were $97 million, an increase of $14 million from 2023 primarily due to higher share-based compensation charges.
    • Net finance charges were $53 million, $10 million lower than 2023 due to our lower interest expense on our outstanding debt balance.
    • Capital expenditures were $158 million in 2024, an increase of $10 million from 2023. Capital spending by spend category included $31 million for expansion and upgrades and $127 million for the maintenance of existing assets, infrastructure, and intangible assets.
    • Reduced debt by $152 million from the redemption of US$89 million of 2026 unsecured senior notes and $31 million repayment of our Canadian and U.S. Real Estate Credit Facilities.
    • Repurchased $50 million of common shares under our NCIB.

    STRATEGY

    Precision’s vision is to be globally recognized as the High Performance, High Value provider of land drilling services. Our strategic priorities for 2024 are focused on increasing our capital returns to shareholders by delivering best-in-class service and generating free cash flow.

    Precision’s 2024 strategic priorities and the progress made during the third quarter are as follows:

    1. Concentrate organizational efforts on leveraging our scale and generating free cash flow.
      • Generated cash from operations of $80 million, bringing our year to date total to $319 million.
      • Increased utilization of our Super Single and Double rigs in the third quarter, driving Canadian drilling activity up 25% year over year.
      • Increased our third quarter Completion and Production Services operating hours and Adjusted EBITDA 34% and 40%, respectively, year over year. Achieved our $20 million annual synergies target from the CWC acquisition, which closed in November 2023.
      • Internationally, we realized US$35 million of contract drilling revenue versus US$29 million in 2023. Revenue for the third quarter of 2024 was negatively impacted by fewer rig moves and planned rig recertifications that accounted for 44 non-billable utilization days.
    2. Reduce debt by between $150 million and $200 million and allocate 25% to 35% of free cash flow before debt repayments for share repurchases.
      • Reduced debt by redeeming US$33 million of our 2026 unsecured senior notes and repaying US$3 million of our U.S. Real Estate Credit Facility. For the first nine months of the year, we have reduced debt by $152 million and already achieved the low end of our debt repayment target range.
      • Returned $17 million of capital to shareholders through share repurchases. Year to date we allocated $50 million of our free cash flow to share buybacks, which represents over 25% of free cash flow for the first nine months of the year and within our annual target range of 25% to 35%.
      • Remain firmly committed to our long-term debt reduction target of $600 million between 2022 and 2026 ($410 million achieved as of September 30, 2024), while moving direct shareholder capital returns towards 50% of free cash flow.
    3. Continue to deliver operational excellence in drilling and service rig operations to strengthen our competitive position and extend market penetration of our Alpha™ and EverGreen™ products.
      • Increased our Canadian drilling rig utilization days and well servicing rig operating hours over the third quarter of 2023, maintaining our position as the leading provider of high-quality and reliable services in Canada.
      • Nearly doubled our EverGreen™ revenue from the third quarter of 2023.
      • Continued to expand our EverGreen™ product offering on our Super Single rigs with hydrogen injection systems. EverGreenHydrogen™ reduces diesel consumption resulting in lower operating costs and greenhouse gas emissions for our customers.

    OUTLOOK

    The long-term outlook for global energy demand remains positive with rising demand for all types of energy including oil and natural gas driven by economic growth, increasing demand from third-world regions, and emerging energy sources of power demand. Oil prices are constructive, and producers remain disciplined with their production plans while geopolitical issues continue to threaten supply. In Canada, the recent commissioning of the Trans Mountain pipeline expansion and the startup of LNG Canada projected in 2025 are expected to provide significant tidewater access for Canadian crude oil and natural gas, supporting additional Canadian drilling activity. In the U.S., the next wave of LNG projects is expected to add approximately 11 bcf/d of export capacity from 2025 to 2028, supporting additional U.S. natural gas drilling activity. Coal retirements and a build-out of AI data centers could provide further support for natural gas drilling.

    In Canada, we currently have 75 rigs operating and expect this activity level to continue until spring breakup, except for the traditional slowdown over Christmas. Our Canadian drilling activity continues to outpace 2023 due to increased heavy oil drilling activity and strong Montney activity driven by robust condensate demand and pricing. Since the startup of the Trans Mountain pipeline expansion in May, customer activity in heavy oil targeted areas has exceeded expectations, resulting in near full utilization of our Super Single fleet. Customers are benefiting from improved commodity pricing and a weak Canadian dollar. Our Super Triple fleet, the preferred rig for Montney drilling, is also nearly fully utilized and with the expected startup of LNG Canada in mid-2025, demand could exceed supply.

    In recent years, the Canadian market has witnessed stronger second quarter drilling activity due to the higher percentage of wells drilled on pads in both the Montney and in heavy oil developments. Once a pad-equipped drilling rig is mobilized to site, it can walk from well to well and avoid spring break up road restrictions. We expect this higher activity trend to continue in the second quarter of 2025.

    In the U.S., we currently have 35 rigs operating as drilling activity remains constrained by volatile commodity prices, customer consolidation and budget exhaustion. We view these headwinds as short-term in nature, which will continue to suppress activity for the remainder of the year and into 2025. However, looking further ahead, we expect that a new budget cycle, the next wave of Gulf Coast LNG export facilities, and new sources of domestic power demand should begin to stimulate drilling.

    Internationally, we expect to have eight rigs running for the remainder of 2024, representing an approximate 40% increase in activity compared to 2023. All eight rigs are contracted through 2025 as well. We continue to bid our remaining idle rigs within the region and remain optimistic about our ability to secure additional rig activations.

    As the premier well service provider in Canada, the outlook for this business remains positive. We expect the Trans Mountain pipeline expansion and LNG Canada to drive more service-related activity, while increased regulatory spending requirements are expected to result in more abandonment work. Customer demand should remain strong, and with continued labor constraints, we expect firm pricing into the foreseeable future.

    We believe cost inflation is largely behind us and will continue to look for opportunities to lower costs.

    Contracts

    The following chart outlines the average number of drilling rigs under term contract by quarter as at October 29, 2024. For those quarters ending after September 30, 2024, this chart represents the minimum number of term contracts from which we will earn revenue. We expect the actual number of contracted rigs to vary in future periods as we sign additional term contracts.

    As at October 29, 2024   Average for the quarter ended 2023     Average     Average for the quarter ended 2024     Average  
        Mar. 31     June 30     Sept. 30     Dec. 31     2023     Mar. 31     June 30     Sept. 30     Dec. 31     2024  
    Average rigs under term contract:                                                            
    U.S.     40       37       32       28       34       20       17       17       16       18  
    Canada     19       23       23       23       22       24       22       23       24       23  
    International     4       5       7       7       6       8       8       8       8       8  
    Total     63       65       62       58       62       52       47       48       48       49  


    SEGMENTED FINANCIAL RESULTS

    Precision’s operations are reported in two segments: Contract Drilling Services, which includes our drilling rig, oilfield supply and manufacturing divisions; and Completion and Production Services, which includes our service rig, rental and camp and catering divisions.

      For the three months ended September 30,     For the nine months ended September 30,  
    (Stated in thousands of Canadian dollars)   2024     2023     % Change       2024     2023     % Change  
    Revenue:                                  
    Contract Drilling Services   406,155       390,728       3.9       1,215,125       1,257,762       (3.4 )
    Completion and Production Services   73,074       57,573       26.9       225,987       178,257       26.8  
    Inter-segment eliminations   (2,074 )     (1,547 )     34.1       (6,955 )     (5,036 )     38.1  
        477,155       446,754       6.8       1,434,157       1,430,983       0.2  
    Adjusted EBITDA:(1)                                  
    Contract Drilling Services   133,235       131,701       1.2       406,662       468,302       (13.2 )
    Completion and Production Services   19,741       14,118       39.8       50,786       39,031       30.1  
    Corporate and Other   (10,551 )     (31,244 )     (66.2 )     (56,753 )     (47,446 )     19.6  
        142,425       114,575       24.3       400,695       459,887       (12.9 )

    (1) See “FINANCIAL MEASURES AND RATIOS.”

    SEGMENT REVIEW OF CONTRACT DRILLING SERVICES

      For the three months ended September 30,     For the nine months ended September 30,  
    (Stated in thousands of Canadian dollars, except where noted)   2024       2023     % Change       2024       2023     % Change  
    Revenue   406,155       390,728       3.9       1,215,125       1,257,762       (3.4 )
    Expenses:                                  
    Operating   262,933       247,937       6.0       776,210       759,750       2.2  
    General and administrative   9,987       11,090       (9.9 )     32,253       29,710       8.6  
    Adjusted EBITDA(1)   133,235       131,701       1.2       406,662       468,302       (13.2 )
    Adjusted EBITDA as a percentage of revenue(1)   32.8 %     33.7 %           33.5 %     37.2 %      

    (1) See “FINANCIAL MEASURES AND RATIOS.”

    United States onshore drilling statistics:(1) 2024     2023  
      Precision     Industry(2)     Precision     Industry(2)  
    Average number of active land rigs for quarters ended:                      
    March 31   38       602       60       744  
    June 30   36       583       51       700  
    September 30   35       565       41       631  
    Year to date average   36       583       51       692  

    (1) United States lower 48 operations only.
    (2) Baker Hughes rig counts.

    Canadian onshore drilling statistics:(1) 2024     2023  
      Precision     Industry(2)     Precision     Industry(2)  
    Average number of active land rigs for quarters ended:                      
    March 31   73       208       69       221  
    June 30   49       134       42       117  
    September 30   72       207       57       188  
    Year to date average   65       183       56       175  

    (1) Canadian operations only.
    (2) Baker Hughes rig counts.

    SEGMENT REVIEW OF COMPLETION AND PRODUCTION SERVICES

      For the three months ended September 30,     For the nine months ended September 30,  
    (Stated in thousands of Canadian dollars, except where noted)   2024       2023     % Change       2024       2023        
    Revenue   73,074       57,573       26.9       225,987       178,257       26.8  
    Expenses:                                  
    Operating   50,608       41,612       21.6       167,128       133,325       25.4  
    General and administrative   2,725       1,843       47.9       8,073       5,901       36.8  
    Adjusted EBITDA(1)   19,741       14,118       39.8       50,786       39,031       30.1  
    Adjusted EBITDA as a percentage of revenue(1)   27.0 %     24.5 %           22.5 %     21.9 %      
    Well servicing statistics:                                  
    Number of service rigs (end of period)   165       121       36.4       165       121       36.4  
    Service rig operating hours   62,835       46,894       34.0       194,390       144,944       34.1  
    Service rig operating hour utilization   41 %     42 %           43 %     44 %      

    (1) See “FINANCIAL MEASURES AND RATIOS.”

    OTHER ITEMS

    Share-based Incentive Compensation Plans

    We have several cash and equity-settled share-based incentive plans for non-management directors, officers, and other eligible employees. Our accounting policies for each share-based incentive plan can be found in our 2023 Annual Report.

    A summary of expense amounts under these plans during the reporting periods are as follows:

      For the three months ended September 30,     For the nine months ended September 30,  
    (Stated in thousands of Canadian dollars) 2024     2023     2024     2023  
    Cash settled share-based incentive plans   (1,626 )     30,105       28,810       20,091  
    Equity settled share-based incentive plans   1,440       701       3,517       1,834  
    Total share-based incentive compensation plan expense   (186 )     30,806       32,327       21,925  
                           
    Allocated:                      
    Operating   221       7,692       8,159       6,732  
    General and Administrative   (407 )     23,114       24,168       15,193  
        (186 )     30,806       32,327       21,925  


    CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES

    Because of the nature of our business, we are required to make judgements and estimates in preparing our Condensed Consolidated Interim Financial Statements that could materially affect the amounts recognized. Our judgements and estimates are based on our past experiences and assumptions we believe are reasonable in the circumstances. The critical judgements and estimates used in preparing the Condensed Consolidated Interim Financial Statements are described in our 2023 Annual Report.

    EVALUATION OF CONTROLS AND PROCEDURES

    Based on their evaluation as at September 30, 2024, Precision’s Chief Executive Officer and Chief Financial Officer concluded that the Corporation’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the United States Securities Exchange Act of 1934, as amended (the Exchange Act)), are effective to ensure that information required to be disclosed by the Corporation in reports that are filed or submitted to Canadian and U.S. securities authorities is recorded, processed, summarized and reported within the time periods specified in Canadian and U.S. securities laws. In addition, as at September 30, 2024, there were no changes in the internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) that occurred during the three months ended September 30, 2024 that have materially affected, or are reasonably likely to materially affect, the Corporation’s internal control over financial reporting. Management will continue to periodically evaluate the Corporation’s disclosure controls and procedures and internal control over financial reporting and will make any modifications from time to time as deemed necessary.

    Based on their inherent limitations, disclosure controls and procedures and internal control over financial reporting may not prevent or detect misstatements, and even those controls determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation.

    FINANCIAL MEASURES AND RATIOS

    Non-GAAP Financial Measures
    We reference certain additional Non-Generally Accepted Accounting Principles (Non-GAAP) measures that are not defined terms under IFRS Accounting Standards to assess performance because we believe they provide useful supplemental information to investors.
    Adjusted EBITDA We believe Adjusted EBITDA (earnings before income taxes, loss (gain) on investments and other assets, gain on repurchase of unsecured senior notes, finance charges, foreign exchange, gain on asset disposals and depreciation and amortization), as reported in our Condensed Interim Consolidated Statements of Net Earnings and our reportable operating segment disclosures, is a useful measure because it gives an indication of the results from our principal business activities prior to consideration of how our activities are financed and the impact of foreign exchange, taxation and depreciation and amortization charges.

    The most directly comparable financial measure is net earnings.
      For the three months ended September 30,     For the nine months ended September 30,  
    (Stated in thousands of Canadian dollars)   2024       2023       2024       2023  
    Adjusted EBITDA by segment:                      
    Contract Drilling Services   133,235       131,701       406,662       468,302  
    Completion and Production Services   19,741       14,118       50,786       39,031  
    Corporate and Other   (10,551 )     (31,244 )     (56,753 )     (47,446 )
    Adjusted EBITDA   142,425       114,575       400,695       459,887  
    Depreciation and amortization   75,073       73,192       227,104       218,823  
    Gain on asset disposals   (3,323 )     (2,438 )     (14,235 )     (15,586 )
    Foreign exchange   849       363       772       (894 )
    Finance charges   16,914       19,618       53,472       63,946  
    Gain on repurchase of unsecured notes   —       (37 )     —       (137 )
    Loss (gain) on investments and other assets   (150 )     (3,813 )     (330 )     6,075  
    Incomes taxes   13,879       7,898       37,512       45,138  
    Net earnings   39,183       19,792       96,400       142,522  
    Funds Provided by (Used in) Operations We believe funds provided by (used in) operations, as reported in our Condensed Interim Consolidated Statements of Cash Flows, is a useful measure because it provides an indication of the funds our principal business activities generate prior to consideration of working capital changes, which is primarily made up of highly liquid balances.

    The most directly comparable financial measure is cash provided by (used in) operations.
    Net Capital Spending We believe net capital spending is a useful measure as it provides an indication of our primary investment activities.

    The most directly comparable financial measure is cash provided by (used in) investing activities.

    Net capital spending is calculated as follows:
        For the three months ended September 30,     For the nine months ended September 30,  
    (Stated in thousands of Canadian dollars)     2024       2023       2024       2023  
    Capital spending by spend category                        
    Expansion and upgrade     7,709       13,479       30,501       39,439  
    Maintenance, infrastructure and intangibles     56,139       38,914       127,297       108,463  
          63,848       52,393       157,798       147,902  
    Proceeds on sale of property, plant and equipment     (5,647 )     (6,698 )     (21,825 )     (20,724 )
    Net capital spending     58,201       45,695       135,973       127,178  
    Business acquisitions     —       —       —       28,000  
    Proceeds from sale of investments and other assets     —       (10,013 )     (3,623 )     (10,013 )
    Purchase of investments and other assets     7       3,211       7       5,282  
    Receipt of finance lease payments     (207 )     (64 )     (591 )     (64 )
    Changes in non-cash working capital balances     (19,149 )     (4,551 )     9,266       6,774  
    Cash used in investing activities     38,852       34,278       141,032       157,157  
    Working Capital We define working capital as current assets less current liabilities, as reported in our Condensed Interim Consolidated Statements of Financial Position.

    Working capital is calculated as follows:
      September 30,     December 31,  
    (Stated in thousands of Canadian dollars)   2024       2023  
    Current assets   472,557       510,881  
    Current liabilities   306,084       374,009  
    Working capital   166,473       136,872  
    Total Long-term Financial Liabilities We define total long-term financial liabilities as total non-current liabilities less deferred tax liabilities, as reported in our Condensed Interim Consolidated Statements of Financial Position.

    Total long-term financial liabilities is calculated as follows:
      September 30,     December 31,  
    (Stated in thousands of Canadian dollars)   2024       2023  
    Total non-current liabilities   920,812       1,069,364  
    Deferred tax liabilities   62,047       73,515  
    Total long-term financial liabilities   858,765       995,849  
    Non-GAAP Ratios
    We reference certain additional Non-GAAP ratios that are not defined terms under IFRS to assess performance because we believe they provide useful supplemental information to investors.
    Adjusted EBITDA % of Revenue We believe Adjusted EBITDA as a percentage of consolidated revenue, as reported in our Condensed Interim Consolidated Statements of Net Earnings, provides an indication of our profitability from our principal business activities prior to consideration of how our activities are financed and the impact of foreign exchange, taxation and depreciation and amortization charges.
    Long-term debt to long-term debt plus equity We believe that long-term debt (as reported in our Condensed Interim Consolidated Statements of Financial Position) to long-term debt plus equity (total shareholders’ equity as reported in our Condensed Interim Consolidated Statements of Financial Position) provides an indication of our debt leverage.
    Net Debt to Adjusted EBITDA We believe that the Net Debt (long-term debt less cash, as reported in our Condensed Interim Consolidated Statements of Financial Position) to Adjusted EBITDA ratio provides an indication of the number of years it would take for us to repay our debt obligations.
    Supplementary Financial Measures
    We reference certain supplementary financial measures that are not defined terms under IFRS to assess performance because we believe they provide useful supplemental information to investors.
    Capital Spending by Spend Category We provide additional disclosure to better depict the nature of our capital spending. Our capital spending is categorized as expansion and upgrade, maintenance and infrastructure, or intangibles.


    CHANGE IN ACCOUNTING POLICY

    Precision adopted Classification of Liabilities as Current or Non-current and Non-current Liabilities with Covenants – Amendments to IAS 1, as issued in 2020 and 2022. These amendments apply retrospectively for annual reporting periods beginning on or after January 1, 2024 and clarify requirements for determining whether a liability should be classified as current or non-current. Due to this change in accounting policy, there was a retrospective impact on the comparative Statement of Financial Position pertaining to the Corporation’s Deferred Share Unit (DSU) plan for non-management directors which are redeemable in cash or for an equal number of common shares upon the director’s retirement. In the case of a director retiring, the director’s respective DSU liability would become payable and the Corporation would not have the right to defer settlement of the liability for at least twelve months. As such, the liability is impacted by the revised policy. The following changes were made to the Statement of Financial Position:

    • As at January 1, 2023, accounts payable and accrued liabilities increased by $12 million and non-current share-based compensation liability decreased by $12 million.
    • As at December 31, 2023, accounts payable and accrued liabilities increased by $8 million and non-current share-based compensation liability decreased by $8 million.

    The Corporation’s other liabilities were not impacted by the amendments. The change in accounting policy will also be reflected in the Corporation’s consolidated financial statements as at and for the year ending December 31, 2024.

    JOINT PARTNERSHIP

    On September 26, 2024, Precision formed a strategic Partnership with two Indigenous partners to provide well servicing operations in northeast British Columbia. Precision contributed $4 million in assets to the Partnership. Precision holds a controlling interest in the Partnership and the portions of the net earnings and equity not attributable to Precision’s controlling interest are shown separately as Non-Controlling Interests (NCI) in the consolidated statements of net earnings and consolidated statements of financial position.

    CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION AND STATEMENTS

    Certain statements contained in this release, including statements that contain words such as “could”, “should”, “can”, “anticipate”, “estimate”, “intend”, “plan”, “expect”, “believe”, “will”, “may”, “continue”, “project”, “potential” and similar expressions and statements relating to matters that are not historical facts constitute “forward-looking information” within the meaning of applicable Canadian securities legislation and “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995 (collectively, “forward-looking information and statements”).

    In particular, forward-looking information and statements include, but are not limited to, the following:

    • our strategic priorities for 2024;
    • our capital expenditures, free cash flow allocation and debt reduction plans for 2024 through to 2026;
    • anticipated activity levels, demand for our drilling rigs, day rates and daily operating margins in 2024;
    • the average number of term contracts in place for 2024;
    • customer adoption of Alpha™ technologies and EverGreen™ suite of environmental solutions;
    • timing and amount of synergies realized from acquired drilling and well servicing assets;
    • potential commercial opportunities and rig contract renewals; and
    • our future debt reduction plans.

    These forward-looking information and statements are based on certain assumptions and analysis made by Precision in light of our experience and our perception of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances. These include, among other things:

    • our ability to react to customer spending plans as a result of changes in oil and natural gas prices;
    • the status of current negotiations with our customers and vendors;
    • customer focus on safety performance;
    • existing term contracts are neither renewed nor terminated prematurely;
    • our ability to deliver rigs to customers on a timely basis;
    • the impact of an increase/decrease in capital spending; and
    • the general stability of the economic and political environments in the jurisdictions where we operate.

    Undue reliance should not be placed on forward-looking information and statements. Whether actual results, performance or achievements will conform to our expectations and predictions is subject to a number of known and unknown risks and uncertainties which could cause actual results to differ materially from our expectations. Such risks and uncertainties include, but are not limited to:

    • volatility in the price and demand for oil and natural gas;
    • fluctuations in the level of oil and natural gas exploration and development activities;
    • fluctuations in the demand for contract drilling, well servicing and ancillary oilfield services;
    • our customers’ inability to obtain adequate credit or financing to support their drilling and production activity;
    • changes in drilling and well servicing technology, which could reduce demand for certain rigs or put us at a competitive advantage;
    • shortages, delays and interruptions in the delivery of equipment supplies and other key inputs;
    • liquidity of the capital markets to fund customer drilling programs;
    • availability of cash flow, debt and equity sources to fund our capital and operating requirements, as needed;
    • the impact of weather and seasonal conditions on operations and facilities;
    • competitive operating risks inherent in contract drilling, well servicing and ancillary oilfield services;
    • ability to improve our rig technology to improve drilling efficiency;
    • general economic, market or business conditions;
    • the availability of qualified personnel and management;
    • a decline in our safety performance which could result in lower demand for our services;
    • changes in laws or regulations, including changes in environmental laws and regulations such as increased regulation of hydraulic fracturing or restrictions on the burning of fossil fuels and greenhouse gas emissions, which could have an adverse impact on the demand for oil and natural gas;
    • terrorism, social, civil and political unrest in the foreign jurisdictions where we operate;
    • fluctuations in foreign exchange, interest rates and tax rates; and
    • other unforeseen conditions which could impact the use of services supplied by Precision and Precision’s ability to respond to such conditions.

    Readers are cautioned that the forgoing list of risk factors is not exhaustive. Additional information on these and other factors that could affect our business, operations or financial results are included in reports on file with applicable securities regulatory authorities, including but not limited to Precision’s Annual Information Form for the year ended December 31, 2023, which may be accessed on Precision’s SEDAR+ profile at www.sedarplus.ca or under Precision’s EDGAR profile at www.sec.gov. The forward-looking information and statements contained in this release are made as of the date hereof and Precision undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, except as required by law.

    CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)

    (Stated in thousands of Canadian dollars)   September 30,
    2024    		     December 31,
    2023(1)    		     January 1,
    2023(1)    		  
    ASSETS            
    Current assets:                  
    Cash   $ 24,304     $ 54,182     $ 21,587  
    Accounts receivable     401,652       421,427       413,925  
    Inventory     41,398       35,272       35,158  
    Assets held for sale     5,203       —       —  
    Total current assets     472,557       510,881       470,670  
    Non-current assets:                  
    Income tax recoverable     696       682       1,602  
    Deferred tax assets     27,767       73,662       455  
    Property, plant and equipment     2,296,079       2,338,088       2,303,338  
    Intangibles     15,566       17,310       19,575  
    Right-of-use assets     63,708       63,438       60,032  
    Finance lease receivables     4,938       5,003       —  
    Investments and other assets     6,685       9,971       20,451  
    Total non-current assets     2,415,439       2,508,154       2,405,453  
    Total assets   $ 2,887,996     $ 3,019,035     $ 2,876,123  
                       
    LIABILITIES AND EQUITY                  
    Current liabilities:                  
    Accounts payable and accrued liabilities   $ 282,810     $ 350,749     $ 404,350  
    Income taxes payable     3,059       3,026       2,991  
    Current portion of lease obligations     19,263       17,386       12,698  
    Current portion of long-term debt     952       2,848       2,287  
    Total current liabilities     306,084       374,009       422,326  
                       
    Non-current liabilities:                  
    Share-based compensation     10,339       16,755       47,836  
    Provisions and other     7,408       7,140       7,538  
    Lease obligations     54,010       57,124       52,978  
    Long-term debt     787,008       914,830       1,085,970  
    Deferred tax liabilities     62,047       73,515       28,946  
    Total non-current liabilities     920,812       1,069,364       1,223,268  
    Equity:                  
    Shareholders’ capital     2,337,079       2,365,129       2,299,533  
    Contributed surplus     76,656       75,086       72,555  
    Deficit     (915,629 )     (1,012,029 )     (1,301,273 )
    Accumulated other comprehensive income     158,602       147,476       159,714  
    Total equity attributable to shareholders     1,656,708       1,575,662       1,230,529  
    Non-controlling interest     4,392       —       —  
    Total equity     1,661,100       1,575,662       1,230,529  
    Total liabilities and equity   $ 2,887,996     $ 3,019,035     $ 2,876,123  

    (1) Comparative period figures were restated due to a change in accounting policy. See “CHANGE IN ACCOUNTING POLICY.”

    (2) See “JOINT PARTNERSHIP” for additional information.

    CONDENSED     INTERIM CONSOLIDATED STATEMENTS OF NET EARNINGS (LOSS) (UNAUDITED)

        Three Months Ended September 30,     Nine Months Ended September 30,  
    (Stated in thousands of Canadian dollars, except per share amounts)   2024     2023     2024     2023  
                             
                             
    Revenue   $ 477,155     $ 446,754     $ 1,434,157     $ 1,430,983  
    Expenses:                        
    Operating     311,467       288,002       936,383       888,039  
    General and administrative     23,263       44,177       97,079       83,057  
    Earnings before income taxes, loss (gain) on investments and other assets, gain on repurchase of unsecured senior notes, finance charges, foreign exchange, gain on asset disposals, and depreciation and amortization     142,425       114,575       400,695       459,887  
    Depreciation and amortization     75,073       73,192       227,104       218,823  
    Gain on asset disposals     (3,323 )     (2,438 )     (14,235 )     (15,586 )
    Foreign exchange     849       363       772       (894 )
    Finance charges     16,914       19,618       53,472       63,946  
    Gain on repurchase of unsecured senior notes     —       (37 )     —       (137 )
    Loss (gain) on investments and other assets     (150 )     (3,813 )     (330 )     6,075  
    Earnings before income taxes     53,062       27,690       133,912       187,660  
    Income taxes:                        
    Current     2,297       2,047       4,659       4,008  
    Deferred     11,582       5,851       32,853       41,130  
          13,879       7,898       37,512       45,138  
    Net earnings   $ 39,183     $ 19,792     $ 96,400     $ 142,522  
    Net earnings per share attributable to shareholders:                        
    Basic   $ 2.77     $ 1.45     $ 6.74     $ 10.45  
    Diluted   $ 2.31     $ 1.45     $ 6.73     $ 9.84  


    CONDENSED     INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED)

        Three Months Ended September 30,     Nine Months Ended September 30,  
    (Stated in thousands of Canadian dollars)   2024     2023     2024     2023  
    Net earnings   $ 39,183     $ 19,792     $ 96,400     $ 142,522  
    Unrealized gain (loss) on translation of assets and liabilities of operations denominated in foreign currency     (16,104 )     39,180       30,409       3,322  
    Foreign exchange gain (loss) on net investment hedge with U.S. denominated debt     9,536       (24,616 )     (19,283 )     (1,484 )
    Comprehensive income   $ 32,615     $ 34,356     $ 107,526     $ 144,360  


    CONDENSED     INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

        Three Months Ended September 30,     Nine Months Ended September 30,  
    (Stated in thousands of Canadian dollars)   2024     2023     2024     2023  
    Cash provided by (used in):                        
    Operations:                        
    Net earnings   $ 39,183     $ 19,792     $ 96,400     $ 142,522  
    Adjustments for:                        
    Long-term compensation plans     2,620       11,577       14,490       9,200  
    Depreciation and amortization     75,073       73,192       227,104       218,823  
    Gain on asset disposals     (3,323 )     (2,438 )     (14,235 )     (15,586 )
    Foreign exchange     815       1,275       965       (13 )
    Finance charges     16,914       19,618       53,472       63,946  
    Income taxes     13,879       7,898       37,512       45,138  
    Other     27       —       120       (220 )
    Loss (gain) on investments and other assets     (150 )     (3,813 )     (330 )     6,075  
    Gain on repurchase of unsecured senior notes     —       (37 )     —       (137 )
    Income taxes paid     (508 )     (187 )     (4,842 )     (2,395 )
    Income taxes recovered     58       4       58       7  
    Interest paid     (31,692 )     (35,500 )     (69,435 )     (79,702 )
    Interest received     426       227       1,558       562  
    Funds provided by operations     113,322       91,608       342,837       388,220  
    Changes in non-cash working capital balances     (33,648 )     (3,108 )     (23,545 )     (57,904 )
    Cash provided by operations     79,674       88,500       319,292       330,316  
                             
    Investments:                        
    Purchase of property, plant and equipment     (63,797 )     (51,546 )     (157,747 )     (146,378 )
    Purchase of intangibles     (51 )     (847 )     (51 )     (1,524 )
    Proceeds on sale of property, plant and equipment     5,647       6,698       21,825       20,724  
    Proceeds from sale of investments and other assets     —       10,013       3,623       10,013  
    Business acquisitions     —       —       —       (28,000 )
    Purchase of investments and other assets     (7 )     (3,211 )     (7 )     (5,282 )
    Receipt of finance lease payments     207       64       591       64  
    Changes in non-cash working capital balances     19,149       4,551       (9,266 )     (6,774 )
    Cash used in investing activities     (38,852 )     (34,278 )     (141,032 )     (157,157 )
                             
    Financing:                        
    Issuance of long-term debt     10,900       23,600       10,900       162,649  
    Repayments of long-term debt     (59,658 )     (49,517 )     (162,506 )     (288,538 )
    Repurchase of share capital     (16,891 )     —       (50,465 )     (12,951 )
    Issuance of common shares from the exercise of options     495       —       686       —  
    Debt amendment fees     —       —       (1,317 )     —  
    Lease payments     (3,586 )     (2,410 )     (10,005 )     (6,413 )
    Funding from non-controlling interest     4,392       —       4,392       —  
    Cash used in financing activities     (64,348 )     (28,327 )     (208,315 )     (145,253 )
    Effect of exchange rate changes on cash     (403 )     251       177       (428 )
    Increase (decrease) in cash     (23,929 )     26,146       (29,878 )     27,478  
    Cash, beginning of period     48,233       22,919       54,182       21,587  
    Cash, end of period   $ 24,304     $ 49,065     $ 24,304     $ 49,065  


    CONDENSED     INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED)

        Attributable to shareholders of the Corporation            
    (Stated in thousands of Canadian dollars)   Shareholders’
    Capital    		     Contributed
    Surplus    		     Accumulated
    Other
    Comprehensive
    Income    		     Deficit     Total     Non-
    controlling interest    		     Total
    Equity    		  
    Balance at January 1, 2024   $ 2,365,129     $ 75,086     $ 147,476     $ (1,012,029 )   $ 1,575,662     $ —     $ 1,575,662  
    Net earnings for the period     —       —       —       96,400       96,400       —       96,400  
    Other comprehensive income for the period     —       —       11,126       —       11,126       —       11,126  
    Share options exercised     978       (292 )     —       —       686       —       686  
    Settlement of Executive Performance and Restricted Share Units     21,846       (1,479 )     —       —       20,367       —       20,367  
    Share repurchases     (51,050 )     —       —       —       (51,050 )     —       (51,050 )
    Redemption of non-management directors share units     176       (176 )     —       —       —       —       –  
    Share-based compensation expense     —       3,517       —       —       3,517       —       3,517  
    Funding from non-controlling interest     —       —       —       —       —       4,392       4,392  
    Balance at September 30, 2024   $ 2,337,079     $ 76,656     $ 158,602     $ (915,629 )   $ 1,656,708     $ 4,392     $ 1,661,100  
        Attributable to shareholders of the Corporation            
    (Stated in thousands of Canadian dollars)   Shareholders’
    Capital    		     Contributed
    Surplus    		     Accumulated
    Other
    Comprehensive
    Income    		     Deficit     Total     Non-
    controlling interest    		     Total
    Equity    		  
    Balance at January 1, 2023   $ 2,299,533     $ 72,555     $ 159,714     $ (1,301,273 )   $ 1,230,529     $ —     $ 1,230,529  
    Net earnings for the period     —       —       —       142,522       142,522       —       142,522  
    Other comprehensive income for the period     —       —       1,838       —       1,838       —       1,838  
    Settlement of Executive Performance and Restricted Share Units     19,206       —       —       —       19,206       —       19,206  
    Share repurchases     (12,951 )     —       —       —       (12,951 )     —       (12,951 )
    Redemption of non-management directors share units     757       —       —       —       757       —       757  
    Share-based compensation expense     —       1,834       —       —       1,834       —       1,834  
    Balance at September 30, 2023   $ 2,306,545     $ 74,389     $ 161,552     $ (1,158,751 )   $ 1,383,735     $ —     $ 1,383,735  


    2024 THIRD QUARTER RESULTS CONFERENCE CALL AND WEBCAST

    Precision Drilling Corporation has scheduled a conference call and webcast to begin promptly at 11:00 a.m. MT (1:00 p.m. ET) on Wednesday, October 30, 2024.

    To participate in the conference call please register at the URL link below. Once registered, you will receive a dial-in number and a unique PIN, which will allow you to ask questions.

    https://register.vevent.com/register/BI4cb3a3db88084e66ad528ebb2bdb81e4

    The call will also be webcast and can be accessed through the link below. A replay of the webcast call will be available on Precision’s website for 12 months.

    https://edge.media-server.com/mmc/p/mov2xb4k

    About Precision

    Precision is a leading provider of safe and environmentally responsible High Performance, High Value services to the energy industry, offering customers access to an extensive fleet of Super Series drilling rigs. Precision has commercialized an industry-leading digital technology portfolio known as Alpha™ that utilizes advanced automation software and analytics to generate efficient, predictable, and repeatable results for energy customers. Our drilling services are enhanced by our EverGreen™ suite of environmental solutions, which bolsters our commitment to reducing the environmental impact of our operations. Additionally, Precision offers well service rigs, camps and rental equipment all backed by a comprehensive mix of technical support services and skilled, experienced personnel.

    Precision is headquartered in Calgary, Alberta, Canada and is listed on the Toronto Stock Exchange under the trading symbol “PD” and on the New York Stock Exchange under the trading symbol “PDS”.

    Additional Information

    For further information, please contact:

    Lavonne Zdunich, CPA, CA
    Vice President, Investor Relations
    403.716.4500

    800, 525 – 8th Avenue S.W.
    Calgary, Alberta, Canada T2P 1G1
    Website: www.precisiondrilling.com

    The MIL Network –

  • MIL-OSI: Finward Bancorp Announces Earnings for the Quarter and Nine Months Ended September 30, 2024

    Source: GlobeNewswire (MIL-OSI)

    MUNSTER, Ind., Oct. 29, 2024 (GLOBE NEWSWIRE) — Finward Bancorp (Nasdaq: FNWD) (the “Bancorp”), the holding company for Peoples Bank (the “Bank”), today announced that net income available to common stockholders was $10.0 million, or $2.35 per diluted share, for the nine months ended September 30, 2024, as compared to $6.9 million, or $1.60 per diluted share, for the corresponding prior year period. For the quarter ended September 30, 2024, the Bancorp’s net income totaled $606 thousand, or $0.14 per diluted share, as compared to $143 thousand, or $0.03 per diluted share, for the three months ended June 30, 2024, and as compared to $2.2 million, or $0.51 per diluted share, for the three months ended September 30, 2023. Selected performance metrics are as follows for the periods presented:

                                 
    Performance Ratios   Quarter ended,   Nine months ended,
        (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)
        September 30, June 30,   March 31,   December 31, September 30, September 30,   September 30,
          2024       2024       2024       2023       2023       2024       2023  
    Return on equity     1.60 %     0.39 %     24.97 %     4.92 %     6.55 %     4.50 %     6.68 %
    Return on assets     0.12 %     0.03 %     1.77 %     0.29 %     0.42 %     0.64 %     0.44 %
    Tax adjusted net interest margin     2.67 %     2.67 %     2.57 %     2.80 %     2.87 %     2.64 %     3.04 %
    Noninterest income / average assets     0.55 %     0.50 %     2.57 %     0.53 %     0.46 %     1.21 %     0.51 %
    Noninterest expense / average assets     2.80 %     2.79 %     2.86 %     2.60 %     2.59 %     2.82 %     2.67 %
    Efficiency ratio     97.32 %     98.56 %     59.41 %     87.49 %     86.88 %     80.16 %     83.68 %
                                                             

    “The Bank’s position continued to improve in the third quarter while we prepared for the Fed to begin their easing cycle. Margin and expenses were stable, with minimal benefit from the Fed’s late-quarter rate cut. We believe the Bank is poised to see margin expansion as lower rates work their way through the liability side of the balance sheet,” said Benjamin Bochnowski, chief executive officer. “We remain vigilant on credit, and we continued to build capital during the quarter. We also fully exited the Bank Term Funding Program well in advance of its March 2025 maturity.”

    Highlights of the current period include:

    • Net Interest Margin – The net interest margin was 2.53% for both the three months ended September 30, 2024 and the three months ended June 30, 2024. The tax-adjusted net interest margin (a non-GAAP measure) was 2.67% for both the three months ended September 30, 2024 and the three months ended June 30, 2024. The net interest margin for the nine months ended September 30, 2024, was 2.50%, compared to 2.89% for the nine months ended September 30, 2023. The tax-adjusted net interest margin (a non-GAAP measure) for the nine months ended September 30, 2024, was 2.64%, compared to 3.04% for the nine months ended September 30, 2023. See Table 1 at the end of this press release for a reconciliation of the tax-adjusted net interest margin to the GAAP net interest margin.
    • Funding – As of September 30, 2024, deposits totaled $1.7 billion, a decrease of $7.9 million or 0.5%, compared to June 30, 2024. Core deposits totaled $1.2 billion at both September 30, 2024 and June 30, 2024. Core deposits include checking, savings, and money market accounts and represented 67.9% of the Bancorp’s total deposits at September 30, 2024. As of September 30, 2024, balances for certificates of deposit totaled $562.2 million, compared to $541.2 million on June 30, 2024, an increase of $21.0 million or 3.9%. The decrease in total portfolio deposits is primarily related to cyclical flows and continued adjustments to deposit pricing. In addition, as of September 30, 2024, borrowings and repurchase agreements totaled $128.0 million, an increase of $65 thousand or 0.2%, compared to June 30, 2024. The increase in short-term borrowings was the result of cyclical inflows and outflows of interest-earning assets and interest-bearing liabilities. During the quarter, the Bancorp terminated its involvement in the Bank Term Funding Program (the “BTFP”) and paid off its outstanding balance of $60 million, in full, through a utilization of excess liquidity and FHLB advances. As of September 30, 2024, 72% of our deposits are fully FDIC insured, and another 7% are further backed by the Indiana Public Deposit Insurance Fund. The Bancorp’s liquidity position remains strong with solid core deposit customer relationships, excess cash, debt securities, and access to diversified borrowing sources. As of September 30, 2024, the Bancorp had available liquidity of $686 million including borrowing capacity from the FHLB and Federal Reserve facilities.
    • Securities Portfolio – Securities available for sale balances increased by $10.4 million to $350.0 million as of September 30, 2024, compared to $339.6 million as of June 30, 2024.  The increase in securities available for sale was due to a combination of portfolio runoff and a decrease of accumulated other comprehensive loss (“AOCL”). AOCL was $48.2 million as of September 30, 2024, compared to $58.9 million on June 30, 2024, an improvement of $10.7 million, or 18.2%. The yield on the securities portfolio decreased to 2.37% for the three months ended September 30, 2024, down from 2.43% for the three months ended June 30, 2024. Management did not execute any securities sale transactions during the quarter but will continue to monitor the securities portfolio for additional restructuring opportunities.
    • Lending – The Bank’s aggregate loan portfolio totaled $1.5 billion on both September 30, 2024 and June 30, 2024. During the three months ended September 30, 2024, the Bank originated $70.4 million in new commercial loans, compared to $48.7 million during the three months ended June 30, 2024 and $73.2 million during the three months ended September 30, 2023. The loan portfolio represents 78.7% of earning assets and is comprised of 62.6% commercial-related credits. At September 30, 2024, the Bancorp’s portfolio loan balances in commercial real estate owner occupied properties totaled $236.9 million or 15.7% of total loan balances and commercial real estate non-owner occupied properties totaled $302.8 million or 20.1% of total loan balances. Of the $302.8 million in commercial real estate non-owner occupied properties balances, loans collateralized by office buildings represented $42.4 million or 2.8% of total loan balances.
    • Gain on Sale of Loans – Gains from the sale of loans for the nine months ended September 30, 2024 totaled $810 thousand, an increase from $729 thousand for the nine months ended September 30, 2023. During the nine months ended September 30, 2024, the Bank originated $22.5 million in new fixed rate mortgage loans for sale, compared to $30.4 million during the nine months ended September 30, 2023. During the nine months ended September 30, 2024, the Bank originated $17.6 million in new 1-4 family loans retained in its portfolio, compared to $31.8 million during the nine months ended September 30, 2023. Total 1-4 family originations for the quarter ended September 30, 2024, totaled $20.1 million, an increase of $1.3 million compared to $18.8 million for the quarter ended June 30, 2024. These retained loans are primarily construction loans and adjustable-rate loans with a fixed-rate period of 7 years or less. The Bank continues to sell longer-duration fixed rate mortgages into the secondary market.
    • Asset Quality – At September 30, 2024, non-performing loans totaled $13.8 million, compared to $11.4 million at June 30, 2024, an increase of $2.4 million or 21.4%. The Bank’s ratio of non-performing loans to total loans was 0.92% at September 30, 2024, compared to 0.75% at June 30, 2024. The Bank’s ratio of non-performing assets to total assets increased from 0.61% at June 30, 2024 to 0.73% at September 30, 2024. Management maintains a vigilant oversight of nonperforming loans through proactive relationship management. The allowance for credit losses (ACL) totaled $18.5 million at September 30, 2024, compared to $18.3 million at June 30, 2024, an increase of $186 thousand or 1.0% and is considered adequate by management. For the quarter ended September 30, 2024, recoveries, net of charge-offs, totaled $186 thousand. The allowance for credit losses as a percentage of total loans was 1.23% at September 30, 2024, and the allowance for credit losses as a percentage of non-performing loans, or coverage ratio, was 134.1% at September 30, 2024.
    • Operating Expenses – Non-interest expense as a percentage of average assets was 2.80% for the quarter ended September 30, 2024, as compared to 2.79% for the quarter ended June 30, 2024. Increases in non-interest expenses quarter over quarter were primarily attributable to slightly higher federal deposit insurance premium and higher occupancy and equipment expenses. The Bank remains focused on identifying additional operating efficiencies and third-party expense reductions through the remainder of this year and beyond. Compensation and benefits expense is down 1.2% for the nine months ended September 30, 2024, compared to September 30, 2023.
    • Capital Adequacy – As of September 30, 2024, the Bank’s tier 1 capital to adjusted average assets ratio was 8.38%, an improvement of 0.06% compared to 8.32% at June 30, 2024. The Bank’s capital continues to exceed all applicable regulatory capital requirements as set forth in 12 C.F.R. § 324. The Bancorp’s tangible book value per share was $31.28 at September 30, 2024, up from $28.67 as of June 30, 2024 (a non-GAAP measure). Tangible common equity to total assets was 6.51% at September 30, 2024, up from 5.95% as of June 30, 2024 (a non-GAAP measure). Excluding accumulated other comprehensive losses, tangible book value per share increased to $42.47 as of September 30, 2024, from $42.33 as of June 30, 2024 (a non-GAAP measure). See Table 1 at the end of this press release for a reconciliation of the tangible book value per share, tangible book value per share adjusted for other accumulated comprehensive losses, tangible common equity as a percentage of total assets, and tangible common equity as a percentage of total assets adjusted for accumulated other comprehensive losses to the related GAAP ratios.

    Disclosures Regarding Non-GAAP Financial Measures
    Reported amounts are presented in accordance with GAAP. In this press release, the Bancorp also provides certain financial measures identified as non-GAAP. The Bancorp’s management believes that the non-GAAP information, which consists of tangible common equity, tangible common equity adjusted for accumulated other comprehensive losses, tangible book value per share, tangible book value per share adjusted for accumulated other comprehensive losses, tangible common equity/total assets, tax-adjusted net interest margin, and efficiency ratio, which can vary from period to period, provides a better comparison of period to period operating performance. The adjusted net interest income and tax-adjusted net interest margin measures recognize the income tax savings when comparing taxable and tax-exempt assets. Interest income and yields on tax-exempt securities and loans are presented using the current federal income tax rate of 21%. Management believes that it is standard practice in the banking industry to present net interest income and net interest margin on a fully tax-equivalent basis and that it may enhance comparability for peer comparison purposes. Additionally, the Bancorp believes this information is utilized by regulators and market analysts to evaluate a company’s financial condition and, therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for financial results in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies. Refer to Table 1 – Reconciliation of Non-GAAP Financial Measures at the end of this document for a reconciliation of the non-GAAP measures identified herein and their most comparable GAAP measures.

    About Finward Bancorp
    Finward Bancorp is a locally managed and independent financial holding company headquartered in Munster, Indiana, whose activities are primarily limited to holding the stock of Peoples Bank. Peoples Bank provides a wide range of personal, business, electronic and wealth management financial services from its 26 locations in Lake and Porter Counties in Northwest Indiana and Chicagoland. Finward Bancorp’s common stock is quoted on The NASDAQ Stock Market, LLC under the symbol FNWD. The website ibankpeoples.com provides information on Peoples Bank’s products and services, and Finward Bancorp’s investor relations.

    Forward Looking Statements
    This press release may contain forward-looking statements regarding the financial performance, business prospects, growth and operating strategies of the Bancorp. For these statements, the Bancorp claims the protections of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Statements in this communication should be considered in conjunction with the other information available about the Bancorp, including the information in the filings the Bancorp makes with the SEC. Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance. The forward-looking statements are based on management’s expectations and are subject to a number of risks and uncertainties. Forward-looking statements are typically identified by using words such as “anticipate,” “estimate,” “project,” “intend,” “plan,” “believe,” “will” and similar expressions in connection with any discussion of future operating or financial performance.

    Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements. Risks and uncertainties that could cause actual results to differ materially include: the Bank’s ability to demonstrate compliance with the terms of the previously disclosed consent order and memorandum of understanding entered into between the Bank and the Federal Deposit Insurance Corporation (“FDIC”) and Indiana Department of Financial Institutions (“DFI”), or to demonstrate compliance to the satisfaction of the FDIC and/or DFI within prescribed time frames; the Bank’s agreement under the memorandum of understanding to refrain from paying cash dividends without prior regulatory approval; changes in asset quality and credit risk; the inability to sustain revenue and earnings growth; changes in interest rates, market liquidity, and capital markets, as well as the magnitude of such changes, which may reduce net interest margins; inflation; further deterioration in the market value of securities held in the Bancorp’s investment securities portfolio, whether as a result of macroeconomic factors or otherwise; customer acceptance of the Bancorp’s products and services; customer borrowing, repayment, investment, and deposit practices; customer disintermediation; the introduction, withdrawal, success, and timing of business initiatives; competitive conditions; the inability to realize cost savings or revenues or to implement integration plans and other consequences associated with mergers, acquisitions, and divestitures; economic conditions; and the impact, extent, and timing of technological changes, capital management activities, regulatory actions by the Federal Deposit Insurance Corporation and Indiana Department of Financial Institutions, and other actions of the Federal Reserve Board and legislative and regulatory actions and reforms. Additional factors that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in the Bancorp’s reports (such as the Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K) filed with the SEC and available at the SEC’s Internet website (www.sec.gov). All subsequent written and oral forward-looking statements concerning matters attributable to the Bancorp or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above. Except as required by law, The Bancorp does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statement is made.

    In addition to the above factors, we also caution that the actual amounts and timing of any future common stock dividends or share repurchases will be subject to various factors, including our capital position, financial performance, capital impacts of strategic initiatives, market conditions, and regulatory and accounting considerations, as well as any other factors that our Board of Directors deems relevant in making such a determination. Therefore, there can be no assurance that we will repurchase shares or pay any dividends to holders of our common stock, or as to the amount of any such repurchases or dividends.

    Finward Bancorp
    Quarterly Financial Report
                                 
    Performance Ratios   Quarter ended,   Nine months ended,
        (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)
        September 30, June 30,   March 31,   December 31, September 30, September 30,   September 30,
          2024       2024       2024       2023       2023       2024       2023  
    Return on equity     1.60%       0.39%       24.97%       4.92%       6.55%       4.50%       6.68%  
    Return on assets     0.12%       0.03%       1.77%       0.29%       0.42%       0.64%       0.44%  
    Yield on loans     5.22%       5.11%       5.02%       5.09%       5.02%       5.12%       4.87%  
    Yield on security investments     2.37%       2.43%       2.37%       2.57%       2.41%       2.39%       2.39%  
    Total yield on earning assets     4.73%       4.64%       4.52%       4.64%       4.51%       4.64%       4.39%  
    Cost of interest-bearing deposits     2.47%       2.37%       2.36%       2.22%       1.95%       2.40%       1.58%  
    Cost of repurchase agreements     4.04%       3.86%       3.88%       3.78%       3.83%       3.93%       3.59%  
    Cost of borrowed funds     4.56%       4.95%       4.62%       4.41%       4.48%       4.70%       4.58%  
    Total cost of interest-bearing liabilities     2.63%       2.55%       2.53%       2.38%       2.16%       2.57%       1.82%  
    Tax adjusted net interest margin (1)     2.67%       2.67%       2.57%       2.80%       2.87%       2.64%       3.04%  
    Noninterest income / average assets     0.55%       0.50%       2.57%       0.53%       0.46%       1.21%       0.51%  
    Noninterest expense / average assets     2.80%       2.79%       2.86%       2.60%       2.59%       2.82%       2.67%  
    Net noninterest margin / average assets     -2.24%       -2.29%       -0.29%       -2.08%       -2.13%       -1.60%       -2.16%  
    Efficiency ratio     97.32%       98.56%       59.41%       87.49%       86.88%       80.16%       83.68%  
    Effective tax rate     -51.88%       -6.72%       9.48%       -30.85%       -22.20%       7.01%       0.30%  
                                 
    Non-performing assets to total assets     0.73%       0.61%       0.64%       0.61%       0.54%       0.73%       0.54%  
    Non-performing loans to total loans     0.92%       0.75%       0.78%       0.76%       0.66%       0.92%       0.66%  
    Allowance for credit losses to non-performing loans   134.12%       161.17%       159.12%       163.90%       192.89%       134.12%       192.89%  
    Allowance for credit losses to loans receivable     1.23%       1.22%       1.25%       1.24%       1.27%       1.23%       1.27%  
    Foreclosed real estate to total assets     0.00%       0.00%       0.00%       0.00%       0.00%       0.00%       0.00%  
                                 
    Basic earnings per share   $ 0.14     $ 0.03     $ 2.18     $ 0.36     $ 0.52     $ 2.35     $ 1.60  
    Diluted earnings per share   $ 0.14     $ 0.03     $ 2.17     $ 0.35     $ 0.51     $ 2.35     $ 1.60  
    Stockholders’ equity / total assets     7.69%       7.16%       7.32%       6.99%       5.70%       7.69%       5.70%  
    Book value per share   $ 36.99     $ 34.45     $ 35.17     $ 34.28     $ 27.68     $ 36.99     $ 27.68  
    Closing stock price   $ 31.98     $ 24.52     $ 24.60     $ 25.24     $ 22.00     $ 31.98     $ 22.00  
    Price to earnings per share ratio     56.21       182.60       2.82       17.77       10.67       10.19       10.28  
    Dividends declared per common share   $ 0.12     $ 0.12     $ 0.12     $ 0.12     $ 0.31     $ 0.36     $ 0.93  
                                 
    Common equity tier 1 capital to risk-weighted assets   11.10%       10.94%       10.89%       10.43%       10.17%       11.10%       10.17%  
    Tier 1 capital to risk-weighted assets     11.10%       10.94%       10.89%       10.43%       10.17%       11.10%       10.17%  
    Total capital to risk-weighted assets     12.14%       11.95%       11.92%       11.36%       11.12%       12.14%       11.12%  
    Tier 1 capital to adjusted average assets     8.38%       8.32%       8.24%       7.78%       7.81%       8.38%       7.81%  
                                 
                                 
    Non-GAAP Performance Ratios   Quarter ended,   Nine months ended,
        (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)
        September 30,   June 30,   March 31,   December 31, September 30, September 30,   September 30,
          2024       2024       2024       2023       2023       2024       2023  
    Net interest margin – tax equivalent     2.67%       2.67%       2.57%       2.80%       2.87%       2.64%       3.04%  
    Tangible book value per diluted share   $ 31.28     $ 28.67     $ 29.30     $ 28.31     $ 21.63     $ 31.28     $ 21.63  
    Tangible book value per diluted share adjusted for AOCL   $ 42.47     $ 42.33     $ 42.36     $ 40.31     $ 39.96     $ 42.47     $ 39.96  
    Tangible common equity to total assets     6.51%       5.95%       6.09%       5.77%       4.46%       6.51%       4.46%  
    Tangible common equity to total assets adjusted for AOCL     8.83%       8.79%       8.81%       8.22%       8.23%       8.83%       8.23%  
                                 
    (1) Tax adjusted net interest margin represents a non-GAAP financial measure. See the non-GAAP reconciliation table section captioned “Non-GAAP Financial Measures” for further disclosure regarding non-GAAP financial measures
    Quarter Ended                        
    (Dollars in thousands) Average Balances, Interest, and Rates  
    (unaudited) September 30, 2024   June 30, 2024  
      Average Balance   Interest   Rate (%)   Average Balance   Interest   Rate (%)  
    ASSETS                        
    Interest bearing deposits in other financial institutions $ 44,365     $ 665   6.00   $ 60,378     $ 800   5.30  
    Federal funds sold   682       9   5.28     1,263       10   3.17  
    Securities available-for-sale   342,451       2,031   2.37     337,226       2,047   2.43  
    Loans receivable   1,506,967       19,660   5.22     1,501,584       19,174   5.11  
    Federal Home Loan Bank stock   6,547       107   6.54     6,547       96   5.87  
    Total interest earning assets   1,901,012     $ 22,472   4.73     1,906,998     $ 22,127   4.64  
    Cash and non-interest bearing deposits in other financial institutions   32,198               18,054            
    Allowance for credit losses   (18,482 )             (18,788 )          
    Other noninterest bearing assets   155,996               158,358            
    Total assets $ 2,070,724             $ 2,064,622            
                             
    LIABILITIES AND STOCKHOLDERS’ EQUITY                        
    Interest-bearing deposits $ 1,451,414     $ 8,946   2.47   $ 1,455,007     $ 8,610   2.37  
    Repurchase agreements   43,074       435   4.04     41,388       399   3.86  
    Borrowed funds   95,224       1,085   4.56     85,940       1,064   4.95  
    Total interest bearing liabilities   1,589,712     $ 10,466   2.63     1,582,335     $ 10,073   2.55  
    Non-interest bearing deposits   287,507               291,618            
    Other noninterest bearing liabilities   41,696               45,029            
    Total liabilities   1,918,915               1,918,982            
    Total stockholders’ equity   151,809               145,640            
    Total liabilities and stockholders’ equity $ 2,070,724             $ 2,064,622            
                             
                             
    Return on average assets   0.12 %             0.03 %          
    Return on average equity   1.60 %             0.39 %          
    Net interest margin (average earning assets)   2.53 %             2.53 %          
    Net interest margin (average earning assets) – tax equivalent   2.67 %             2.67 %          
    Net interest spread   2.10 %             2.09 %          
    Ratio of interest-earning assets to interest-bearing liabilities   1.20x                 1.21x            
                             
    Year-to-Date                        
    (Dollars in thousands) Average Balances, Interest, and Rates
    (unaudited) September 30, 2024   September 30, 2023
      Average Balance   Interest   Rate (%)   Average Balance   Interest   Rate (%)  
    ASSETS     `                  
    Interest bearing deposits in other financial institutions $ 51,522     $ 2,317   6.00   $ 31,171     $ 1,112   4.76  
    Federal funds sold   919       29   4.21     1,158       38   4.38  
    Certificates of deposit in other financial institutions   –       –   –     1,169       44   5.02  
    Securities available-for-sale   348,269       6,239   2.39     369,897       6,631   2.39  
    Loans receivable   1,504,197       57,713   5.12     1,519,981       55,481   4.87  
    Federal Home Loan Bank stock   6,547       285   5.80     6,547       221   4.50  
    Total interest earning assets   1,911,454     $ 66,583   4.64     1,929,923     $ 63,527   4.39  
    Cash and non-interest bearing deposits in other financial institutions   29,183               18,723            
    Allowance for credit losses   (18,670 )             (17,619 )          
    Other noninterest bearing assets   155,433               154,227            
    Total assets $ 2,077,400             $ 2,085,254            
                             
    LIABILITIES AND STOCKHOLDERS’ EQUITY                        
    Interest-bearing deposits $ 1,464,682     $ 26,350   2.40   $ 1,455,410     $ 17,258   1.58  
    Repurchase agreements   40,879       1,204   3.93     33,170       892   3.59  
    Borrowed funds   90,423       3,189   4.70     102,864       3,537   4.58  
    Total interest bearing liabilities   1,595,984     $ 30,743   2.57     1,591,444     $ 21,687   1.82  
    Non-interest bearing deposits   291,161               326,431            
    Other noninterest bearing liabilities   41,540               30,178            
    Total liabilities   1,928,685               1,948,053            
    Total stockholders’ equity   148,715               137,201            
    Total liabilities and stockholders’ equity $ 2,077,400             $ 2,085,254            
                             
                             
    Return on average assets   0.64 %             0.44 %          
    Return on average equity   4.50 %             6.68 %          
    Net interest margin (average earning assets)   2.50 %             2.89 %          
    Net interest margin (average earning assets) – tax equivalent   2.64 %             3.04 %          
    Net interest spread   2.07 %             2.57 %          
    Ratio of interest-earning assets to interest-bearing liabilities   1.20x                 1.21x            
                             
    Finward Bancorp
    Quarterly Financial Report
                         
    Balance Sheet Data                    
    (Dollars in thousands)   (Unaudited)   (Unaudited)   (Unaudited)       (Unaudited)
        September 30, June 30,   March 31,   December 31, September 30,
          2024       2024       2024       2023       2023  
    ASSETS                    
                         
    Cash and non-interest bearing deposits in other financial institutions   $ 23,071     $ 19,061     $ 16,418     $ 17,942     $ 17,922  
    Interest bearing deposits in other financial institutions     48,025       63,439       54,755       67,647       52,875  
                         
    Total cash and cash equivalents     71,649       83,207       71,780       86,008       71,648  
                         
    Securities available-for-sale     350,027       339,585       346,233       371,374       339,280  
    Loans held-for-sale     2,567       1,185       667       340       2,057  
    Loans receivable, net of deferred fees and costs     1,508,242       1,506,398       1,508,251       1,512,595       1,525,660  
    Less: allowance for credit losses     (18,516 )     (18,330 )     (18,805 )     (18,768 )     (19,430 )
    Net loans receivable     1,489,726       1,488,068       1,489,446       1,493,827       1,506,230  
    Federal Home Loan Bank stock     6,547       6,547       6,547       6,547       6,547  
    Accrued interest receivable     7,442       7,695       7,583       8,045       7,864  
    Premises and equipment     47,912       48,696       47,795       38,436       38,810  
    Foreclosed real estate     –       –       71       71       71  
    Cash value of bank owned life insurance     33,312       33,107       32,895       32,702       32,509  
    Goodwill     22,395       22,395       22,395       22,395       22,395  
    Other intangible assets     2,203       2,555       2,911       3,272       3,636  
    Other assets     40,882       44,027       43,459       45,262       56,423  
                         
    Total assets   $ 2,074,662     $ 2,077,067     $ 2,071,782     $ 2,108,279     $ 2,087,470  
                         
    LIABILITIES AND STOCKHOLDERS’ EQUITY                    
                         
    Deposits:                    
    Non-interest bearing   $ 285,157     $ 286,784     $ 296,959     $ 295,594     $ 312,635  
    Interest bearing     1,463,653       1,469,970       1,450,519       1,517,827       1,471,402  
    Total     1,748,810       1,756,754       1,747,478       1,813,421       1,784,037  
    Repurchase agreements     43,038       42,973       41,137       38,124       48,310  
    Borrowed funds     85,000       85,000       90,000       80,000       100,000  
    Accrued expenses and other liabilities     38,259       43,709       41,586       29,389       36,080  
                         
    Total liabilities     1,915,107       1,928,436       1,920,201       1,960,934       1,968,427  
                         
    Commitments and contingencies                    
                         
    Stockholders’ Equity:                    
                         
    Preferred stock, no par or stated value;                    
    10,000,000 shares authorized, none outstanding     –       –       –       –       –  
    Common stock, no par or stated value; 10,000,000 shares authorized;     –       –       –       –       –  
    shares issued and outstanding: September 30, 2024 – 4,313,940                    
    December 31, 2023 – 4,298,773                    
    Additional paid-in capital     69,916       69,778       69,727       69,555       69,482  
    Accumulated other comprehensive loss     (48,241 )     (58,939 )     (56,313 )     (51,613 )     (78,848 )
    Retained earnings     137,880       137,792       138,167       129,403       128,409  
                         
    Total stockholders’ equity     159,555       148,631       151,581       147,345       119,043  
                         
    Total liabilities and stockholders’ equity   $ 2,074,662     $ 2,077,067     $ 2,071,782     $ 2,108,279     $ 2,087,470  
                         
    Finward Bancorp
    Quarterly Financial Report
                                   
    Consolidated Statements of Income   Quarter Ended,     Nine months ended,
    (Dollars in thousands)   (Unaudited)   (Unaudited)   (Unaudited)       (Unaudited)     (Unaudited)   (Unaudited)
        September 30,   June 30,   March 31,   December 31, September 30,   September 30,   September 30,
          2024       2024       2024       2023       2023         2024       2023  
    Interest income:                              
    Loans   $ 19,660     $ 19,174     $ 18,879     $ 19,281     $ 19,161       $ 57,713     $ 55,481  
    Securities & short-term investments     2,812       2,953       3,105       2,975       2,617         8,870       8,046  
    Total interest income     22,472       22,127       21,984       22,256       21,778         66,583       63,527  
    Interest expense:                              
    Deposits     8,946       8,610       8,794       8,180       7,066         26,350       17,258  
    Borrowings     1,520       1,463       1,410       1,361       1,579         4,393       4,429  
    Total interest expense     10,466       10,073       10,204       9,541       8,645         30,743       21,687  
    Net interest income     12,006       12,054       11,780       12,715       13,133         35,840       41,840  
    Provision for credit losses     –       76       –       779       244         76       1,246  
    Net interest income after provision for credit losses     12,006       11,978       11,780       11,936       12,889         35,764       40,594  
    Noninterest income:                              
    Fees and service charges     1,463       1,257       1,153       1,507       1,374         3,873       4,517  
    Wealth management operations     731       763       633       672       572         2,127       1,812  
    Gain on sale of loans held-for-sale, net     338       320       152       352       192         810       729  
    Increase in cash value of bank owned life insurance   205       212       193       193       193         610       573  
    Gain (loss) on sale of real estate     –       15       11,858       –       2         11,873       (13 )
    Loss on sale of securities, net     –       –       (531 )     –       –         (531 )     (48 )
    Other     130       6       17       11       64         154       441  
    Total noninterest income     2,867       2,573       13,475       2,735       2,397         18,916       8,011  
    Noninterest expense:                              
    Compensation and benefits     6,963       7,037       7,109       6,290       6,729         21,109       21,365  
    Occupancy and equipment     2,181       2,120       1,915       1,520       1,711         6,205       4,898  
    Data processing     1,165       1,135       1,170       1,269       1,085         3,470       3,465  
    Federal deposit insurance premiums     435       397       501       492       474         1,333       1,511  
    Marketing     209       212       158       191       235         579       649  
    Other     3,521       3,516       4,151       3,755       3,259         9,465       8,547  
    Total noninterest expense     14,474       14,417       15,004       13,517       13,493         43,895       41,715  
    Income before income taxes     399       134       10,251       1,154       1,793         10,785       6,890  
    Income tax expenses (benefit)     (207 )     (9 )     972       (356 )     (398 )       756       21  
    Net income   $ 606     $ 143     $ 9,279     $ 1,510     $ 2,191       $ 10,029     $ 6,869  
                                   
    Earnings per common share:                              
    Basic   $ 0.14     $ 0.03     $ 2.18     $ 0.36     $ 0.52       $ 2.35     $ 1.60  
    Diluted   $ 0.14     $ 0.03     $ 2.17     $ 0.35     $ 0.51       $ 2.35     $ 1.60  
                                   
    Finward Bancorp
    Quarterly Financial Report
                               
    Asset Quality   (Unaudited)   (Unaudited)   (Unaudited)       (Unaudited)
    (Dollars in thousands)   September 30,   June 30,   March 31,   December 31,   September 30,
                2024       2024       2024     2023     2023  
    Nonaccruing loans   $ 13,806     $ 11,079     $ 11,603   $ 9,608   $ 9,840  
    Accruing loans delinquent more than 90 days     –       294       215     1,843     233  
    Securities in non-accrual     1,440       1,371       1,442     1,357     1,155  
    Foreclosed real estate     –       –       71     71     71  
      Total nonperforming assets   $ 15,246     $ 12,744     $ 13,331   $ 12,879   $ 11,299  
                               
    Allowance for credit losses (ACL):                    
      ACL specific allowances for collateral dependent loans   $ 1,821     $ 1,327     $ 1,455   $ 906   $ 554  
      ACL general allowances for loan portfolio     16,695       17,003       17,351     17,862     18,876  
        Total ACL   $ 18,516     $ 18,330     $ 18,806   $ 18,768   $ 19,430  
                               
    (Dollars in millions)                   Minimum Required To Be
                Minimum Required For   Well Capitalized Under Prompt
        Actual   Capital Adequacy Purposes   Corrective Action Regulations
    September 30, 2024   Amount   Ratio   Amount   Ratio   Amount   Ratio
    Common equity tier 1 capital to risk-weighted assets   $ 176.3   11.10 %   $ 71.9   4.50 %   $ 103.9   6.50 %
    Tier 1 capital to risk-weighted assets   $ 176.3   11.10 %   $ 95.9   6.00 %   $ 127.9   8.00 %
    Total capital to risk-weighted assets   $ 194.0   12.14 %   $ 127.9   8.00 %   $ 159.8   10.00 %
    Tier 1 capital to adjusted average assets   $ 176.3   8.38 %   $ 84.7   4.00 %   $ 105.8   5.00 %
                             
    Table 1 – Reconciliation of the Non-GAAP Performance Measures                          
                               
    (Dollars in thousands) Quarter Ended,   Nine months ended,
    (unaudited) September 30, 2024   June 30, 2024   March 31, 2024   December 31, 2023   September 30, 2023   September 30, 2024   September 30, 2023
    Calculation of tangible common equity                          
    Total stockholder’s equity $ 159,555     $ 148,631     $ 151,581     $ 147,345     $ 119,043     $ 159,555     $ 119,043  
    Goodwill   (22,395 )     (22,395 )     (22,395 )     (22,395 )     (22,395 )     (22,395 )     (22,395 )
    Other intangibles   (2,203 )     (2,555 )     (2,911 )     (3,272 )     (3,636 )     (2,203 )     (3,636 )
    Tangible common equity $ 134,957     $ 123,681     $ 126,275     $ 121,678     $ 93,012     $ 134,957     $ 93,012  
                               
    Calculation of tangible common equity adjusted for accumulated other comprehensive loss                        
    Tangible common equity $ 134,957     $ 123,681     $ 126,275     $ 121,678     $ 93,012     $ 134,957     $ 93,012  
    Accumulated other comprehensive loss   48,241       58,939       56,313       51,613       78,848       48,241       78,848  
    Tangible common equity adjusted for accumulated other comprehensive loss $ 183,198       $ 182,620       $ 182,588       $ 173,291       $ 171,860     $ 183,198       $ 171,860  
                               
    Calculation of tangible book value per share                          
    Tangible common equity $ 134,957     $ 123,681     $ 126,275     $ 121,678     $ 93,012     $ 134,957     $ 93,012  
    Shares outstanding   4,313,940       4,313,940       4,310,251       4,298,773       4,300,881       4,313,940       4,300,881  
    Tangible book value per diluted share $ 31.28     $ 28.67     $ 29.30     $ 28.31     $ 21.63     $ 31.28     $ 21.63  
                               
    Calculation of tangible book value per diluted share adjusted for accumulated other comprehensive loss                        
    Tangible common equity adjusted for accumulated other comprehensive loss $ 183,198     $ 182,620     $ 182,588     $ 173,291     $ 171,860     $ 183,198     $ 171,860  
    Diluted average common shares outstanding   4,313,940       4,313,940       4,310,251       4,298,773       4,300,881       4,313,940       4,300,881  
    Tangible book value per diluted share adjusted for accumulated other comprehensive loss $ 42.47     $ 42.33     $ 42.36     $ 40.31     $ 39.96     $ 42.47     $ 39.96  
                               
    Calculation of tangible common equity to total assets                          
    Tangible common equity $ 134,957     $ 123,681     $ 126,275     $ 121,678     $ 93,012     $ 134,957     $ 93,012  
    Total assets   2,074,662       2,077,067       2,071,782       2,108,279       2,087,470       2,074,662       2,087,470  
    Tangible common equity to total assets   6.51 %     5.95 %     6.09 %     5.77 %     4.46 %     6.51 %     4.46 %
                               
    Calculation of tangible common equity to total assets adjusted for accumulated other comprehensive loss                        
    Tangible common equity adjusted for accumulated other comprehensive loss $ 183,198     $ 182,620     $ 182,588     $ 173,291     $ 171,860     $ 183,198     $ 171,860  
    Total assets   2,074,662       2,077,067       2,071,782       2,108,279       2,087,470       2,074,662       2,087,470  
    Tangible common equity to total assets adjusted for accumulated other comprehensive loss   8.83 %     8.79 %     8.81 %     8.22 %     8.23 %     8.83 %     8.23 %
                               
    Calculation of tax adjusted net interest margin                          
    Net interest income $ 12,006     $ 12,054     $ 11,780     $ 12,715     $ 13,133     $ 35,840     $ 41,840  
    Tax adjusted interest on securities and loans   678       677       699       722       730       2,054       2,234  
    Adjusted net interest income   12,684       12,731       12,749       13,437       13,863       37,894       44,074  
    Total average earning assets   1,901,012       1,906,998       1,945,501       1,920,127       1,930,118       1,911,454       1,929,923  
    Tax adjusted net interest margin   2.67 %     2.67 %     2.57 %     2.80 %     2.87 %     2.64 %     3.04 %
                               
    Efficiency ratio                          
    Total non-interest expense $ 14,474     $ 14,417     $ 15,004     $ 13,517     $ 13,493     $ 43,895     $ 13,493  
    Total revenue   14,873       14,627       25,255       15,450       15,530       54,756       15,530  
    Efficiency ratio   97.32 %     98.56 %     59.41 %     87.49 %     86.88 %     80.16 %     86.88 %
                               

    FOR FURTHER INFORMATION
    CONTACT SHAREHOLDER SERVICES
    (219) 853-7575

    The MIL Network –

  • MIL-OSI USA: News 10/24/2024 Blackburn, Cornyn, Blumenthal, Colleagues Introduce Bill to Combat Child Exploitation

    US Senate News:

    Source: United States Senator Marsha Blackburn (R-Tenn)
    NASHVILLE, Tenn. – U.S. Senators Marsha Blackburn (R-Tenn.), John Cornyn (R-Texas), Richard Blumenthal (D-Conn.), and three of their Senate colleagues introduced the PROTECT Our Children Act, which would reauthorize and modernize the Internet Crimes Against Children Task Force Program:
    “For more than 15 years, the Internet Crimes Against Children Task Force Program has helped law enforcement agencies protect innocent children from sexual predators who wish to exploit them online,” said Senator Blackburn. “The PROTECT Our Children Act would reauthorize this critical program to combat technology-facilitated crimes against children.”
    “For decades, the Internet Crimes Against Children Task Force Program has played an invaluable role in helping federal, state, and local law enforcement work together to fight child exploitation and put vicious predators behind bars,” said Senator Cornyn. “By extending and modernizing this program, our legislation would ensure these Task Forces can continue to protect our next generation in an increasingly digital world.”
    “We must save children who are victims of the most ongoing vile, stomach-churning crimes because child sexual abuse goes unstopped,” said Senator Blumenthal. “Protecting such victims is urgent and imperative—and we have an obligation to provide tools and resources necessary to do it. The PROTECT Our Children Act reauthorizes and modernizes the Internet Crimes Against Children Task Force Programs, enabling law enforcement to combat the exploding, serious dangers of abhorrent abuse in an online society. This essential legislation will help safeguard our children and hold predators accountable.”

    BACKGROUND:

    The Internet Crimes Against Children (ICAC) Task Force Program helps state and local law enforcement agencies develop an effective response to technology-facilitated child sexual exploitation and Internet crimes against children. This encompasses forensic and investigative components, training and technical assistance, victim services, and community education. This national network of 61 coordinated task forces represents more than 5,400 federal, state, and local law enforcement and prosecutorial agencies engaged in both proactive and reactive investigations, forensic investigations, and criminal prosecutions.
    Since 1998, ICAC Task Forces have trained more than 826,700 law enforcement officers, prosecutors, and other professionals on techniques to investigative and prosecute ICAC-related cases. They have also reviewed more than 1,452,040 reports of online child exploitation, resulting in the arrest of more than 123,790 suspects.

    THE PROTECT OUR CHILDREN ACT:

    The PROTECT Our Children Act would:
    Update and modernize the requirements for the National Strategy for Child Exploitation Prevention and Interdiction, including requiring the U.S. Department of Justice to provide detailed, useful information on efforts to protect children nationwide;
    Provide liability protection for ICAC Task Forces in the course of conducting criminal investigations of child sexual abuse material (CSAM) and child abuse material;
    Make needed technical improvements and clarifications to the statutory text of the program to match it to current technology and needs;
    Focus the ICAC program on both proactive and reactive investigations; and
    Reauthorize the ICAC Program through 2027 with an escalator authorization.

    ENDORSEMENTS:

    The PROTECT Our Children Act is endorsed by the National Center on Sexual Exploitation (NCOSE), the Rape, Abuse, and Incest National Network (RAINN), National Children’s Alliance, National Center for Missing & Exploited Children (NCMEC), Rights 4 Girls, National District Attorneys Association (NDAA), Raven, Fraternal Order of Police, Association of State Criminal Investigative Agencies (ASCIA), and the National Criminal Justice Training Center (NCJTC).

    CO-SPONSORS:

    This legislation is also co-sponsored by Senators Josh Hawley (R-Mo.), Dick Durbin (D-Ill.), and Amy Klobuchar (D-Minn.). Companion legislation was introduced in the House by Representatives Nathaniel Moran (R-Texas) and Debbie Wasserman Schultz (D-Fla.).

    MIL OSI USA News –

  • MIL-OSI USA: News 10/29/2024 Blackburn, Whitehouse, Colleagues Urge DEA to Extend Telehealth Flexibilities for Substance Use Disorder and Mental Health Treatment

    US Senate News:

    Source: United States Senator Marsha Blackburn (R-Tenn)

    NASHVILLE, Tenn. – U.S. Senators Marsha Blackburn (R-Tenn.), Sheldon Whitehouse (D-R.I.), Lisa Murkowski (R-Alaska), and Mark Warner (D-Va.) led a group of 11 Senators in sending a bipartisan letter calling on the Drug Enforcement Administration (DEA) to extend COVID-era regulatory flexibilities that increase access to telehealth services. 

    These rules have been a lifeline for many patients, particularly those in rural and underserved communities, as well as individuals managing mental health conditions, substance use disorders, and chronic illnesses. 

    “Telemedicine has proven to be an effective tool in reducing barriers to care, supporting those with the greatest need, and bridging the divide between patients and providers,” wrote the Senators. 

    “As bipartisan senators committed to safeguarding public health and promoting equitable access to health care, we are concerned that the reported proposed restrictions could have significant unintended consequences, including disrupting access to treatment for substance use disorder,” added the Senators.  “We urge the DEA to continue working with stakeholders on a proposal that prioritizes the public health benefit for continued access to telemedicine, and finalize an additional temporary extension well before the December 31, 2024 deadline so that both providers and patients have certainty that there will be no gap in their ongoing care.”

    BACKGROUND:
    • The bipartisan letter urges the Biden administration to extend the current flexibilities that safeguard access to necessary care while addressing the risks of prescription medication misuse, and recommends a final rule that creates no new barriers to care. 
    • The letter highlights that telemedicine has expanded access to life-saving treatments, particularly for opioid use disorder, mental health care, and chronic illnesses. 
    • Overdose deaths involving opioids rose to a peak of 84,181 Americans in 2022 before falling to 81,083 in 2023. Despite strong evidence that medication is the most effective treatment for opioid use disorder, only one in five Americans with opioid addiction receive medication treatment that could help them quit and stay in recovery.
    • The Senators’ letter also stresses the importance of ensuring there is no gap in services when the current rules expire at the end of 2024. 

    TREATS ACT:
    • The bipartisan legislation would waive regulatory restrictions for accessing care, preserving flexibilities put in place to save lives during the COVID-19 pandemic.
    • During the COVID-19 Public Health Emergency, the DEA and the Department of Health and Human Services temporarily removed the in-person exam requirement for prescribing medication via telemedicine for people with opioid use disorder. Telehealth flexibilities helped a broad range of patients – including veterans, those living in rural areas, people experiencing homelessness, individuals in the criminal justice system, and racial and ethnic minorities – access treatment. The flexibilities are set to expire on December 31, 2024.
    • The TREATS Act would make the changes permanent, allowing providers to waive the in-person visit requirement and instead use audio-only or audio-visual telehealth technology. The TREATS Act has 20 bipartisan co-sponsors in the Senate.  

    CO-SIGNERS:
    • The letter is also signed by Senators Ron Wyden (D-Ore.), Martin Heinrich (D-N.M.), Mark Kelly (D-Ariz.), Angus King (I-Maine), Ben Ray Luján (D-N.M.), Jeff Merkley (D-Ore.), and Peter Welch (D-Vt.). Representatives Doris Matsui (D-Calif.) and Buddy Carter (R-Ga.) are leading a similar effort in the House.

    Full text of the letter can be found here.

    MIL OSI USA News –

  • MIL-OSI Australia: 100 billion reasons why the night-time economy is no afterthought

    Source: New South Wales Government 2

    Headline: 100 billion reasons why the night-time economy is no afterthought

    Published: 30 October 2024

    Released by: Minister for Music and the Night-time Economy

    The NSW night-time economy is worth $102 billion a year, employs a fifth of all workers and supports more than 53,000 core businesses, including music venues, restaurants, bars and leisure activity providers.

    These are some of the insights from Data After Dark, a pioneering new platform released today that will track growth and changes in economic activity across the state between 6pm and 6am.

    Data After Dark, which draws from multiple information sources, including Opal travel data and spending transactions, will create a baseline to track the impact of the Minns Labor Government’s Vibrancy laws that are cutting red tape and tearing up the restrictions that have strangled nightlife and the night-time economy.

    The Vibrancy Reforms have:

    • Torn up “no entertainment” clauses and bizarre restrictions on what genres of music venues can play
    • Made outdoor dining permanently available
    • Stopped single neighbour noise complaints from shutting down pubs and other licensed venues
    • Required property buyers to be notified when they are moving into an entertainment zone to reduce friction between venues and neighbours
    • Ended the outdated rule that prevents people living within five kilometres of a registered club from signing in without first becoming a member
    • Binned restrictions that prevented patrons from standing while drinking outside a licenced premises

    Businesses and the public will have free access to quarterly updates of Data After Dark, while NSW Government, its agencies and participating councils will be able to access live information via a world-first dashboard feed.

    In the three months to June 30, the report found spending in person on Saturday night eclipsed Thursday night ($50.8 million vs $46.7 million). In the March quarter, Thursday night had recorded the most spending at night.

    At a business level, the biggest growth over the past year has been in takeaway food and sports and physical recreation services, including gyms, while liquor retailing and gambling have recorded declines in their share of the night-time economy.

    Other insights from the June quarter: 

    • More businesses opened, including an additional 1,197 core night-time businesses year-on-year
    • Public transport recorded year-on-year growth of 4.4%, with 35.7 million Opal tap-offs at night  
    • People in NSW made 464 million night-time trips across all transport modes
    • Night-time in-person spending was $3.57 billion – or 16.9% of the 24-hour total 

    By location, the “eastern harbour city” which includes the Sydney CBD, eastern suburbs and inner-west, represents 52 per cent of the total night time economy across the “six cities” that incorporates Newcastle, Wollongong, Central Coast, the Parramatta area and the “western parkland city” beyond.

    Data After Dark will be launched by Minister for Music and the Night-time Economy John Graham at the second annual NEON Forum in Sydney today which brings together the world’s leading experts on night-time economies, hosted by the NSW Office of the 24-Hour Economy Commissioner.

    Quarterly reports can be accessed here

    Minister for Music and the Night-time Economy, John Graham said: 

    “A strong night-time economy is critical to a global city like Sydney and the centres of commerce right across NSW.

    “The insights that Data After Dark provides will help business and government understand this part of the economy better and make the most informed, data-led decisions on how to grow its contribution.

    “The platform leverages a wealth of information on night-time trading, safety and mobility to tailor policy like never before. This is a world-leading tool to monitor the night-time economy.

    “As part of the Minns Labor Government’s Vibrancy Reforms we are stripping back red tape and ending some of the frustrating rules and restrictions that have stopped people enjoying time outside the home after hours.

    24-Hour Economy Commissioner Michael Rodrigues said:   

    “Previously there has been no real baseline dataset that offers an insightful health check of our night-time economies across the State. Data After Dark fills that gap as the first of its kind tool that establishes a set of universal measures for night-time economies. 

    “The application of reliable and consistent data will help State agencies and local councils as they work with the private sector and communities to build lively and safe going out districts. We also now have a tool to make sure we can measure the performance of new initiatives and programs.”  

    Jeremy Gill, Head of Policy, Committee for Sydney said: 

    “Sydney’s night-time economy is buzzing again. To ensure it meets the needs of all Sydneysiders, we need to know who’s involved, how they’re engaging with it, what they want and what that looks like in different parts of the city.  

    “Great data is central to this. The Data after Dark platform gives us insights into the current state of affairs and empowers us to advocate for policies that can effectively address our challenges and seize the opportunities ahead.” 

    MIL OSI News –

  • MIL-OSI Australia: Used car ratings provide a roadmap to second hand safety

    Source: New South Wales Government 2

    Headline: Used car ratings provide a roadmap to second hand safety

    Published: 30 October 2024

    Released by: Minister for Regional Transport and Roads, Minister for Transport

    Used Car Safety Ratings released today show the wide gap between a safe second-hand vehicle and a poor performer in a crash.

    The NSW Government is urging used car buyers – particularly young people and their parents looking for a first car – to use the guide to buy a car that protects most for a particular price point.

    The annual guide shows a driver of the lowest rated vehicle is ten times more likely to be killed or seriously injured in a crash than a driver in the safest vehicle.

    Footage released today by the NSW Government shows the dramatic difference in outcomes when a 2012 Great Wall V200 and a 2012 Holden Colorado were crashed head on.

    The one star-rated Great Wall is decimated in the crash, putting driver and passenger at risk of serious injury while the four-star Colorado provided significantly better safety protection.

    The 2024 Used Car Safety guide rates 404 vehicles manufactured since 2000. Of those, 110 earned an “excellent” five-star rating – four more than in 2023 and 55 more than in 2022.

    The best of the five-star vehicles are marked as a ‘Safer Pick’, with 60 per cent of those vehicles available to purchase second hand for less than $10,000.

    Safer picks include:

    Mazda 3 (2013 – 2019)

    Toyota Camry (2011 – 2022)

    Volkswagen Touareg (2011 – 2019)

    Cars that received a very poor one-star rating include:

    Ford Fiesta (2004 – 2008)

    Hyundai Accent (2000 – 2006)

    Toyota Camry (1997- 2002)

    Holden Commodore VT/VX (1997 – 2002)

    The vast majority of the vehicles given a ‘Safer Pick’ rating were manufactured from 2008 onwards, demonstrating the benefits of more advanced safety equipment and design improvements like electronic stability control and advanced occupant protection systems.

    The ratings, which are in their 32nd year, were produced by Monash University in partnership with Transport for NSW and other transport agencies around Australia and New Zealand to help motorists choose the safest used car that fits their budget, needs, and lifestyle.

    The guide is available at https://towardszero.nsw.gov.au/sites/default/files/2024-10/ucsr-brochure-2024.pdf

    Minister for Roads John Graham said:

    “The hunt for a second-hand car has generally focused on a car that will not break down. No one wants to buy a lemon.

    “What is just as important is considering which used car delivers the safest performance for your budget. Your choice might literally save your life. 

    “The Used Car Safety Ratings guide provide simple, reliable safety information at no cost into the hands of vehicle buyers.

    “I urge parents of young people who may be looking for a first car to consider safety above all else and if you can buy a vehicle that is the safest in its category or price point, do so.

    “A driver behind the wheel of the lowest-rated vehicle is ten times more likely to be killed or seriously injured compared to a driver in the safest vehicle. The choice is that clear.”

    “With more than 60 per cent of the best-rated cars available for $10,000 or less, you don’t have to pick the most expensive car on the market to make a safer choice.

    Minister for Regional Transport and Roads Jenny Aitchison said:

    “For drivers in regional NSW, distances of travel are longer and many people use older vehicles, so choosing a vehicle with a high safety rating increases your chances of surviving a crash.

    “The 2024 Used Car Safety Ratings guide helps regional drivers find the safest options, ensuring they are well-protected no matter where their journey takes them.

    “Cost of living, particularly in regional areas, is an important issue for the Government and that is why we are encouraging everyone considering purchasing a second-hand car to use this guide to ensure they choose a safe vehicle.”

    MIL OSI News –

  • MIL-OSI Australia: Australia joins global conventions to protect workers’ rights and safety

    Source: Australian Government – Minister of Foreign Affairs

    Australia has now ratified all ten International Labour Organization’s (ILO) Fundamental Conventions, reaffirming the Albanese Government’s commitment to protect workers’ rights and safety.

    The final Fundamental Convention – Promotional Framework for Occupational Safety and Health Convention 187 – was ratified by Australia overnight [29 October] in a tripartite ceremony in Geneva, Switzerland, with representatives of the Australian Council of Trade Unions and the Australian Chamber of Commerce and Industry.

    The Convention promotes nationwide policies, systems and programs to support a safe and healthy working environment, and prevent occupational injuries, diseases and deaths.

    This achievement underscores the Government’s belief in upholding international rules, norms and standards, and securing a safe and healthy working environment for all.

    Ratification ensures Australian Governments continue to promote labour standards and protect workers from occupational harm, in line with international best practice.

    For more information on the ILO’s Fundamental Conventions, see International Labour Standards.

    Quotes attributable to Minister for Foreign Affairs, Penny Wong:

    “While our Government is making sure that Australians make more and keep more of what they earn, we are also ensuring that their working conditions are safe and supportive.

    “This is a major milestone for Australian workers. We are demonstrating Australia’s leadership and ongoing commitment to workers’ rights, as well as internationally agreed rules, norms and standards.”

    Quotes attributable to Minister for Employment and Workplace Relations, Murray Watt:

    “By ratifying these conventions, Australia sends a powerful message: we respect the fundamental rights of all workers.

    “As such, Australia upholds all fundamental international labour rights and is a fair, safe and secure place to work and do business.

    “Through the Albanese Government’s workplace law changes and ratifying these Conventions, we are delivering secure jobs and better pay to Australian workers.

    “Australia is committed to workplace health and safety as a fundamental principle and right at work.”

    MIL OSI News –

  • MIL-OSI Australia: Reforming transfer balance cap for Successor Fund Transfers

    Source: Australian Department of Revenue

    The Income Tax Assessment Amendment (Superannuation) Regulations 2024External Link commenced on 6 July 2024.

    We’re working with you to put these changes in place to ensure individuals with a capped defined benefit income stream (CDBIS) aren’t negatively impacted by an SFT.

    Funds should contact us if:

    • you’ve been part of an SFT since 1 July 2017,
    • CDBIS members have been negatively impacted and
    • you’ve not been contacted by us to discuss remediation.

    You can lodge an enquiry through our Super Enquiry Service.

    Looking for the latest news for Super funds? – You can stay up to date by visiting our Super funds newsroom and subscribingExternal Link to our monthly Super funds newsletter and CRT alerts.

    MIL OSI News –

  • MIL-OSI Australia: Partnerships for Local Action and Community Empowerment (PLACE) announcement

    Source: Ministers for Social Services

    Good morning, it’s great to be with you all today.

    I’d like to begin by acknowledging the Traditional Owners of the lands on which we meet and pay my respects to elders past and present. I extend this acknowledgement and respect to all First Nations people joining us today.

    I would also like to acknowledge my colleague the Treasurer – the Honourable Jim Chalmers, who has been my partner in Government on this PLACE journey.

    To our philanthropic partners, thank you for your support and co-investment to make PLACE a reality.

    A big thank you of course to Our Place, Carlton Primary School, Gowrie Victoria and the City of Melbourne who are hosting us today.

    We’re here today because our Government has made a commitment to deliver an overhaul to the way Australia tackles disadvantage.

    Implementing this commitment requires us to work together differently with our partners and local communities, by shifting from traditional and siloed top-down support programs to an approach where we partner and collaborate, share decision-making and goals, and continue to learn from each other to drive better targeted and coordinated investment and effort. By innovating how we work with local communities and how we learn from each other, we will be able to drive a greater positive impact and deliver better outcomes with communities across Australia.

    Partnerships for Local Action and Community Empowerment, or PLACE for short, demonstrates how we will work differently. PLACE will support local communities, government, philanthropy and other stakeholders to work together around a shared understanding of complex problems and a shared commitment to action.

    The Government, together with our philanthropic partners, is proud to be jointly investing $38.6 million over five years to establish PLACE and to launch it into the world today.

    PLACE will be a not-for-profit, independent national organisation that will support communities to identify tailored, place-based solutions to address their needs and aspirations in areas they identify such as the early years, health, education, employment, youth justice and net zero.

    The need for PLACE emerged from community, who called for a national hub that could support a different way of working with community, and that recognised community was best placed to understand their needs and how best to create positive change.

    PLACE will provide this support by connecting community with best practice, building workforce capacity and capability, sharing research, data, tools and information, and supporting collaborative solutions with communities to accelerate progress on the things that matter most to them.

    A key feature of PLACE that distinguishes it from other community initiatives is its structure. It was imperative for us that the essence of working differently with community was embedded in the structure of PLACE. This is reflected in the shared governance arrangements that we have with our philanthropic partners and the community to put community at the centre of the PLACE, and ensure community views are always heard.

    We also want the Government’s involvement in PLACE to be different – that is not just connected to PLACE through the traditional grant agreement, where we are at arm’s length, but also as an active participant in its governance and in the work with communities to meet their needs and their identified priorities.

    I am delighted to be announcing PLACE here at the Carlton Learning Precinct, which is an integrated child and family centre and primary school. The Precinct is part of a diverse multicultural community, and where more than 85 per cent of students at Carlton primary speak a first language other than English.

    The Precinct is the result of work over many years between Carlton Primary School and local community members to meet the needs and aspirations identified by the community and their families and children. Since 2019, these early efforts have been amplified with the support of Our Place, Gowrie Victoria and the City of Melbourne.

    The Precinct includes maternal child health nurses, a Services Australia visiting service and adult employment and education services. Local leaders continue to work together with and listens to the community to ensure these services are co-ordinated to meet community needs and to stop families falling through the cracks. This integrated approach has already led to a 20 per cent increase in school enrolments since 2022.

    The Precinct also offers an insight into the practical benefits PLACE will have for communities like Carlton, including include offering:

    • tools, frameworks, and guidance to help define and measure the impact of the Precinct, and
    • specialised courses to equip Precinct staff and members manage complex, multi-stakeholder collaborations more effectively.

    It is our vision, together with our philanthropic partners, that PLACE will support the efforts of communities like in the Carlton Learning Precinct, and ultimately the projects PLACE works on will be underpinned by working together differently with and listening to community..

    The establishment of PLACE reflects a commitment to working differently, listening to what works locally and working in close collaboration with communities, philanthropy, and across governments to support accelerate positive change in local communities.

    PLACE is a key priority highlighted by the Investment Dialogue for Australia’s Children, and I am proud that we have been able to bring it to fruition together with our philanthropic partners.

    I want to thank the Department of Social Services for the strong and productive working relationship it has established with philanthropy and their significant work in getting us to this point.

    I’m excited to see what comes out of PLACE to help those communities and Australians experiencing disadvantage that need it most to thrive.

    Thank you.

    MIL OSI News –

  • MIL-OSI Economics: Samsung Sets New Benchmark in TV Security With FIPS 140-3 Certification

    Source: Samsung

     
    Samsung Electronics today announced that its proprietary cryptography module, Samsung CryptoCore,1 has earned the prestigious FIPS 140-3 certification2 from the National Institute of Standards and Technology (NIST). This certification underscores Samsung’s commitment to providing industry-leading security and data protection for Smart TV users.
     
    “As home entertainment systems become more connected, it becomes critical for technology companies to safeguard the personal data that enables the seamless connectivity enjoyed by so many,” said Yongjae Kim, Executive Vice President and Head of the R&D Team, Visual Display Business at Samsung Electronics. “By integrating the FIPS 140-3-certified CryptoCore into our Smart TVs, Samsung is taking our commitment to secure home entertainment a step further and ensuring that our users can freely experience the value of our products.”
     
    Beginning in 2025, Samsung CryptoCore will be fully integrated into Tizen OS,3 Samsung’s Smart TV operating system, enhancing the security of key products such as TVs, monitors and digital signage. With Samsung CryptoCore embedded in Tizen OS, personal data linked to Samsung accounts will be securely encrypted, SmartThings authentication information will be protected from external hacking threats and content viewed on TVs will benefit from enhanced copyright protection.
     
    Since 2015, Samsung has equipped its Smart TVs with Samsung Knox,4 a security platform that has earned Common Criteria (CC) certification5 for 10 consecutive years. But with its newly acquired FIPS 140-3 certification, Samsung has strengthened its defenses against hacking and data breaches even further, proactively protecting personal information with advanced encryption technology.
     
    Recognized by governments in 10 countries,6 the FIPS 140-3 certification requires comprehensive testing of cryptographic modules to ensure their security, integrity and reliability. For users, this means Samsung Smart TVs offer cutting-edge protection against privacy breaches, allowing them to enjoy their content, connect smart devices and engage with IoT services securely and without concerns.
     

     
    1 Samsung CryptoCore is a software library that encrypts and decrypts data during both transmission and storage.2 Federal Information Processing Standard (FIPS) 140-3 covers the security requirements for cryptographic modules.3 Tizen OS 9.0.4 Samsung Knox provides privacy protection on its Smart TVs through features like Tizen OS Monitoring, Phishing Site Blocking and Knox Vault. Knox Vault is available only on the QN900D and QN800D models.5 Common Criteria (CC) certification is a global security standard recognized by 31 countries for IT product integrity.6 Recognized in the United States, Canada, UK, Germany, France, South Korea, Japan, Singapore, Australia and New Zealand.

    MIL OSI Economics –

  • MIL-OSI Australia: New public forecourt is the next chapter for State Library

    Source: New South Wales Government 2

    Headline: New public forecourt is the next chapter for State Library

    Published: 30 October 2024

    Released by: Minister for the Arts, Minister for Lands and Property

    The forecourt to the State Library of NSW will be transformed into a new public domain as the institution prepares to celebrate its 200-year anniversary in 2026.

    The Minns Labor Government is focused on building better communities, with a new development application lodged with the City of Sydney to turn the forecourt into a new 3,400 square metre public domain.

    This submission has been lodged by Property and Development NSW (PDNSW) and proposes to integrate public art and native plants around a new grassed plaza, that supports library events and community activities. It will double the size of the current forecourt to create a vibrant new public space.

    The works propose to realign Sir John Young Crescent and Hospital Road, improving safety for pedestrians and drivers, to provide better links to the Royal Botanic Gardens and The Domain. The existing Shakespeare Memorial, originally presented to the city in 1914, will be relocated closer to the library in the forecourt area.

    The State Library welcomed over one million visitors (a 30% increase on 2022/23) during the June 2024 fiscal year, with more than 300,000 readers and visitors anticipated during September and November for this year’s HSC period.

    If approved, the new State Library forecourt proposal could deliver public outcomes consistent with the Macquarie Street East Precinct 20-year vision and masterplan. At the other end of Macquarie Street, early works have provided the space for another new public plaza, next to the Registrar General’s Building, to be known as QEII Place in memory of Her Late Majesty Queen Elizabeth II.

    For more information, visit https://www.dpie.nsw.gov.au/housing-and-property/our-business/precinct-development/macquarie-street-east-precinct.

    Minister for Roads and Minister for the Arts John Graham said:

    “The State Library of NSW is the oldest continuously operating library in Australia that remains a vital and contemporary institution loved by readers, researchers and the thousands of students who use it every day.  

    “The plan to create and deliver a new public space that celebrates the library’s 200-year anniversary in 2026 is another chapter in the State Library’s own story.

    “Supporting the delivery of this new public domain, the proposed road and traffic changes will improve public access to other Sydney cultural institutions and this area around Macquarie Street.

    Minister for Lands and Property and Minister for Small Business Steve Kamper said:

    “The Minns Labor Government is focused on building better communities. This project is the next step in our vision to create a vibrant, connected arts and culture destination.”

    “We have submitted plans that strive to create spaces in the Macquarie Street East Precinct that are welcoming and safe for all. We want to encourage families and students to utilise our public spaces and access our free cultural institutions.”

    State Librarian of New South Wales Dr Caroline Butler-Bowden said:

    “The State Library is a much-loved public institution with historic spaces and galleries, world-renowned collections, and dynamic events and learning programs. It offers something for everyone – readers, families, researchers, students, local and international visitors – every day of the week.

    “The new public forecourt will help grow the Library as a vibrant cultural heart of the city, inviting everyone to freely explore and enjoy this truly unique place.”

    MIL OSI News –

  • MIL-OSI Australia: Transcript – Ports Australia conference

    Source: Australian Ministers for Infrastructure and Transport

    **CHECK AGAINST DELIVERY**

    As always, I begin by acknowledging the Muwinina People as the custodians of this land. We acknowledge and pay our respects to all Tasmanian Aboriginal Communities.

    Tasmania is one of the most beautiful places in our nation and a fitting setting for the Ports Australia Conference.

    We recognise the ongoing custodianship that Indigenous Australians have shown towards these lands and I extend this respect to all First Nations people joining us today.

    Thank you as well to Mike for that kind introduction, and to Stewart, your Chair, thank you very much for the invitation and for all the work that you do throughout the course of the year.

    It is wonderful to see so many public and private leaders from around the world come together.

    I would also like to extend a particular welcome to the Minister for Infrastructure for the Kingdom of Tonga.

    Like Australia, your nation relies on shipping. It is wonderful to have you here.

    I also want to recognise Dr Patrick Verhoeven, the Managing Director of the International Association of Ports and Harbours, and Jens Meier, the CEO of Hamburg Port Authority, who have travelled such a long way.

    Your presence underlines the inherently global nature of this industry, and I hope you enjoy your time here in our beautiful country.

    This is in fact my second time in Tasmania in the last two weeks. 

    Last week I was in the north, this week I’m in the south.

    On both these visits, I have had the pleasure of engaging with Tasmania’s proud maritime industry.

    Last week, I was in Burnie to commission the new shiploader – a project which replaced an essential piece of infrastructure that had been in place for five decades.

    The new shiploader doubles the capacity of the old, and can serve ships up to Panamax size, creating local jobs and growing local industry.

    It is a project that pays tribute to both the maritime past and future of this great state, as well as setting the local economy up for decades of success to come.

    It also speaks to how essential maritime logistics are to our day-to-day lives.

    At the port I could see woodchips going to China, as well as cars and supermarket produce coming into the state.

    It is too easy to miss the magic that defines our modern world, but when you take even a moment to think about it, it is truly extraordinary. 

    That port in Burnie on the north coast of Tasmania is connected to a global network that stretches to every corner of our planet. 

    Everything that we rely on, relies in turn on shipping – which is why it is such a pleasure to be here today with some of the many, many hardworking people who underpin this essential industry.

    Events like these are key to fostering a strong, robust sector – and year after year, Ports Australia does a wonderful job bringing you together and advocating for your industry.

    I stand here today as a minister in a government that knows that ports are a primary driver of our economy and workforce. 

    As well as facilitating international trade and the movement of goods throughout the region, our ports are strategic assets and critical infrastructure.

    They are vital to sustaining our island nation. 

    The most recent report from Ports Australia shows exactly this. 

    Ports move an overwhelming 99 per cent of Australia’s international trade by volume, and importantly, over 694,000 local jobs are facilitated by Australia’s port activities. 

    This works out to a staggering one in every 20 jobs across the nation. 

    Container transport has seen a huge increase.

    As have vehicle imports. 

    The most recent numbers show that cruise ships have soared to 18% higher than pre-pandemic numbers.

    You take our goods to the world, and you bring the world to us.

    Of course, these numbers, while good news, bring pressures of their own. 

    This story of growth underlines the need to ensure that our infrastructure, our investments and our policies are positioned to support a sustainable, reliable and productive supply chain. 

    That’s why our government is making investments like those at the Port of Burnie, and it is also why my department led a review earlier this year into the national freight and supply chain strategy. 

    In total, 71 submissions were received from a variety of stakeholders, including from maritime and associated peak bodies.

    Of course, I acknowledge and thank Ports Australia for their submission and engagement throughout the Review process.  

    The review found that while the foundations of the strategy remain strong, productivity, resilience, decarbonisation and data should be strengthened in the strategy and new National Action Plan.

    We are already doing the work of refreshing the strategy and action plan to address the findings of the review, and I look forward to updating you further in due course.

    But, of course, the findings of the review touch on challenges that are faced across our entire economy and society – none more so than the need to act to mitigate climate change. 

    The Albanese Government is committed to reducing greenhouse gas emissions to 43% below 2005 levels by 2030 and to achieving net zero emissions by 2050. 

    Achieving these ambitious economy-wide targets will require concerted action across all sectors, including this one. 

    Right now, transport contributes 21 percent of Australia’s direct emissions. 

    Adding to that challenge, transport is one of the hardest sectors to abate.

    So, our work here is vital.

    That is why we released the Transport Net Zero Roadmap for consultation earlier this year. 

    While that roadmap covered all modes of transport, it was of particular importance for the maritime sector.

    As we know, decarbonisation will rely on a combination of low carbon liquid fuels (LCLFs), hydrogen, electrification and efficiency improvements.

    Of these, LCLFs offer the clearest pathway for decarbonisation within liquid fuel-reliant sectors that cannot readily electrify in the near-term. 

    This includes maritime, aviation, heavy vehicle and rail, as well as mining, manufacturing and agricultural sectors.

    The bad news is that we need a lot of liquid fuels, but the good news is that Australia is well-placed with comparative advantages in the production of LCLFs: 

    • We have rich renewable energy resources; 
    • We use advanced farming practices that embody low carbon emissions;  
    • We are able to achieve economies of scale;
    • We have significant refining and port infrastructure; 
    • And we have the ability to both enable and encourage domestic fuel consumption, as well as support export capability.

    As part of our Future Made in Australia agenda, the Government is fast-tracking support for an LCLF industry.

    The government announced $18.5 million as part of the recent Budget, to support a domestic LCLF industry through the development of a certification scheme for those fuels.

    And $1.7 billion over the next ten years will go towards a Future Made in Australia Innovation Fund.

    This funding will be used in part to support nascent LCLF production technologies through research and development, to help de-risk developments, and to attract private sector investment.

    And we will continue to work with industry on further steps as needed.

    By successfully building a local LCLF industry we will increase fuel security, strengthen regional economies, diversify income streams for farmers, and meet our decarbonisation objectives – it’s hard to find a bigger win-win than that. 

    To speak even more specifically to the challenges of this sector, we’ve created a Maritime Emission Reduction National Action Plan, the MERNAP for short.

    The MERNAP aims to support Australia’s national emissions reduction targets, contribute to the global decarbonisation of shipping, and future-proof the Australian maritime sector to avoid costly and disruptive transitions later, ensuring an equitable transition, particularly for the maritime workforce, safeguarding jobs and skills for the future.

    The vision is that by 2050, Australia will fully leverage the global maritime decarbonisation transition, benefiting our ports, vessels, and the broader energy sector. 

    This will showcase Australia’s unique comparative advantages while supporting a fair and balanced transition for the industry.

    The MERNAP Consultative Group has played a vital role in shaping this action plan, and I’d like to acknowledge those here today, including: Maritime Industry Australia Limited, the Maritime Union of Australia, and of course, Ports Australia.

    To support the development of MERNAP, we undertook extensive public consultations that revealed to us that the future of the maritime sector will be powered by multiple energy sources, all of which will require new skills, and see us facing new challenges around technology readiness for alternative fuels. 

    Safety, operational efficiencies, and strong partnerships across the value chain will be critical to driving this transition.

    The Albanese Government remains committed to ensuring that Australia’s maritime industry is prepared for the future, ready to contribute to our national emissions targets, and able to thrive in a decarbonised global economy – including through initiatives like Green Shipping Corridors – partnering with nations, such as New Zealand, Singapore and South Korea. 

    I have focused a lot on what fuels our maritime sector, but there is, of course, an even more important element – the people who run it.

    I am proud to say that our plan to establish a Strategic Fleet is underway. 

    This fleet will provide assistance in times of crisis, supply chain disruption, or natural disaster. And it will support industries reliant on shipping, such as heavy manufacturing.

    Tenders to participate in the Strategic Fleet Pilot will close on 29 November. 

    Through this process, three vessels that will be privately owned and commercially operated will be selected for the pilot. 

    This is a major step towards fulfilling our commitment to establish a Strategic Fleet of up to twelve Australian flagged and crewed vessels. 

    This will strengthen our sovereign maritime capabilities while supporting our maritime workforce. 

    The creation of a strategic fleet is a central government policy that will shape our workforce for decades to come. 

    I strongly encourage all interested parties to take part in this process and to consider what role they can play.

    The tender process is being managed by my Department, which is seeking innovative tenders that will deliver the objectives of the Pilot Program. 

    These include providing the Commonwealth with certainty of access to the strategic fleet, to move cargo in times of need, crisis or national emergency. And to support of the needs of Defence —including in training and logistical capacities.

    The Albanese Government is seeking to have pilot vessels on the water as soon as possible.

    While it is not a silver bullet to solve all of the issues of our current and emerging seafarer shortage, the Strategic Fleet and the work being undertaken by Industry Skills Australia through the Maritime Industry Workforce Plan, will support our maritime workforce by increasing the amount of Australian qualified seafarers at a time of a growing global shortage. 

    The independent reviews of the Shipping Registration Act and the Coastal Trading Act being conducted by Ms Lynelle Briggs AO and Emeritus Professor Nicholas Gaskell will also contribute to the modernisation of Australia’s shipping regulatory framework, ensuring the Acts are fit for purpose and support the long-term sustainability of an Australian Maritime Strategic Fleet, and the maritime industry more broadly. 

    Public consultation has commenced and I encourage you all to make your voices heard.

    As you can see, there is a lot to do in your sector and we are a government that is determined to get on with doing it.

    The reforms the Albanese Government is delivering will do our part to support a productive, resilient supply chain, while positioning Australia to thrive in the new net zero economy.

    Thank you for having me, and all the best with the rest of your conference.

    ENDS

    MIL OSI News –

  • MIL-OSI Australia: Report of the Inspector of the National Anti-Corruption Commission

    Source: Australia Government – Attorney General

    The Inspector of the National Anti-Corruption Commission, Ms Gail Furness SC, has published the Report of her investigation into the National Anti-Corruption Commission’s (NACC) decision not to investigate referrals from the Royal Commission into the Robodebt Scheme.

    MIL OSI News –

  • MIL-OSI Australia: Strike Force Trident Responds to Overnight Crime Spree in Northern Suburbs

    Source: Northern Territory Police and Fire Services

    Strike Force Trident responded to an overnight crime spree across Darwin’s northern suburbs, which included an attempted car-jacking, multiple burglaries, and the theft of scooters.

    Four youths, aged between 13 and 15, are currently in custody following swift arrests made by Strike Force Trident and the Dog Operations Unit (DOU). Investigations remain ongoing to identify additional offenders involved in the incidents.

    Between midnight and 4:00am, police received multiple reports of unlawful entries at business premises across the northern suburbs. In addition to these incidents, a car-jacking occurred on Wood Street in Darwin City, where a victim, while parked, was approached by two offenders. The offenders allegedly assaulted the victim and threatened them with an edged weapon before fleeing the scene.

    A team from Strike Force Trident and DOU were immediately deployed. CCTV footage was reviewed, leading to the identification of four offenders. Trident officers quickly attended known residential locations in the northern suburbs and arrested the four youth offenders, all of whom were already on bail and subject to Electronic Monitoring conditions.

    Detective Acting Senior Sergeant Chris Humphries praised the coordinated response, stating, “This is a great example of efficient teamwork between Strike Force Trident and the Dog Operations Unit. Their ability to identify and apprehend the offenders within two hours of responding demonstrates their dedication and effectiveness.”

    Investigations into both the unlawful entries and the car-jacking are ongoing, and police are urging anyone with information to contact NT Police on 131 444 or Crime Stoppers on 1800 333 000.

    MIL OSI News –

  • MIL-OSI Australia: Call for information – Absconded prisoners – Alice Springs

    Source: Northern Territory Police and Fire Services

    Northern Territory Police are calling for information in relation to two 17-year-old males who absconded from the Alice Springs Youth Detention Centre last night.

    Around 6.00pm, police were notified that the pair had absconded from the Correctional facility and were seen heading into bushland in a north direction towards Alice Springs.

    An extensive search operation was launched involving members from the Dog Operations Unit, Drone Unit, and general duties officers.

    Around 9.40pm, a white Mazda 6 believed to be stolen earlier in the evening was sighted by police being driven dangerously by two youths. The vehicle allegedly attempted to engage with the police vehicle, before fleeing the area heading south out of Alice Springs. It was last sighted in the Ilparpa Road area, and both the Mazda and youths remain outstanding at this time. Police are investigating if the escapees were the youths driving the vehicle.

    Police do not believe they pose a risk to the public however advise not to approach them. Anyone with information about their location is urged to contact police on 131 444, quoting reference number NTP24000109358, or Crime Stoppers on 1800 333 000.

    MIL OSI News –

  • MIL-OSI New Zealand: Podiatry prescribers will boost patient care

    Source: New Zealand Government

    Health Minister Dr Shane Reti and Associate Minister David Seymour say it’s great news that podiatrists will soon be able to prescribe medicines, meaning patients with painful foot and leg conditions don’t have to make a separate trip to the doctor.

    “This simple step means a big change for people suffering from painful foot injuries and leg conditions, and it’s also an important recognition for podiatrists,” says Dr Reti.

    “I’m very pleased to announce that the Government intends to take the proposed changes to Cabinet before the end of this year.

    “The change will see podiatrists joining other health professions with designated prescribing authority, including specifically trained nurses, dieticians, and pharmacists.

    “The change will bring New Zealand into line with a number of other countries, including Australia, Canada, the US and UK.”

    David Seymour says the change allows for more direct access to health care, and savings for both people and the health system.

    “For too long, podiatrists have been restricted to providing a limited number of pharmacy-only or restricted medicines for skin care treatments or small surgical procedures.

    “That limits their scope. Additionally, stepping up with additional training and allowing a greater level of prescribing by podiatrists will assist those with high health needs and reduce the costs and delays for patients if additional doctor’s visit had been required.

    “The change will also make better use of the country’s nearly 500 podiatrists who usually work in community settings, and in rural areas.

    “We know conditions like shin splints and bunions can be extremely painful and that getting pain relief that is only available on prescription has often meant needing to see a GP as well. 
    “As a Government, we want to make healthcare as easy to access as possible, and this change is an important step towards that,” says David Seymour.  

    The change also recognises the often pivotal role podiatrists play in reducing the risk of limb amputations for people with chronic health conditions like diabetes.

    The Ministry of Health is currently developing the list of medicines that specially trained podiatrists will be able to prescribe, and list is likely to be completed in the first half of next year.

    MIL OSI New Zealand News –

  • MIL-OSI Australia: 239-2024: List of unregistered treatment providers: Treatment provider unacceptable – Ema Çevre Sağlığı ilacama ve Gida San.Tic.Ltd. Sti. (AEI: TR4013SB)

    Source: Australia Government Statements – Agriculture

    30 October 2024

    Who does this notice affect?

    Stakeholders in the import and shipping industries—including vessel masters, freight forwarders, offshore treatment providers, Biosecurity Industry Participants, importers, customs brokers, principal agents and master consolidators.

    What has changed?

    Following the identification of critical non-compliance, the department has listed Ema Çevre Sağlığı ilacama ve Gida San.Tic.Ltd. Sti. (AEI: TR4013SB) as…

    MIL OSI News –

  • MIL-OSI Australia: Interview with Greg Jennett, Afternoon Briefing, ABC News

    Source: Australian Treasurer

    GREG JENNETT:

    In the fight against inflation and ever rising grocery prices, farmers have been caught in the middle of debate on the effect of pricing on customers. The Minister responsible for competition, Andrew Leigh, has been taking a close look at the farming sector. We spoke to him earlier. Andrew Leigh, good to have you back with us. Now, you’ve given a speech today on competition, pointing out that it’s definitely lacking in the agriculture or farming sector. They feel it in lots of ways, according to your presentation, through the harvesters, they buy and maintain seeds and spray that they put in the field and cattle they sell at the yard. So, you’ve highlighted it. What’s the solution?

    ANDREW LEIGH:

    Well, Greg, as you say, farmers are the meat in the market concentration sandwich. You often get a lot of farmers, but just a few suppliers, and just a few people they can sell to. Part of the answer is the Food and Grocery Code of Conduct being made mandatory rather than voluntary as it was under the Liberals and Nationals. That ensures that farmers get a fairer deal when they’re negotiating with supermarkets. Part of it is also about banning unfair contract terms, which we did when we came to office. Those unfair contract terms were hurting small farmers in areas like fertiliser contracts or potato grower retailing, and that ensures that the small guy gets a better deal.

    JENNETT:

    What’s the argument against strong entities with big networks of dealers, typically in small country towns. So, you might buy for instance, a John Deere tractor and sure you are completely tethered then to the local dealer, the local repairer, the software, they own, but around that sits local jobs as well. Why would you want to disrupt those big strong entities with their networks across the land?

    LEIGH:

    Well, the same argument was made with cars where dealers argued that only they should be able to fix their cars. But the decision that the parliament made, which I was pleased to kick off from July 2022, was that there ought to be a right to repair, a sharing of the information. These pieces of farm machinery are now incredibly advanced, John Deere has more software engineers than mechanical engineers on staff. And so we’re looking carefully at whether there ought to be a right to repair, whether it’s possible to in the first instance, strike an arrangement between those independent repairers and the farm suppliers and so anyone can fix their machinery if they have the right qualifications.

    JENNETT:

    Do they exist, these independent repairers, or exist in large enough number to make a difference?

    LEIGH:

    No, you go to exactly the right question, Greg. When you’re talking about independent mechanics, there’s thousands of them across the country. When you talk about independents to fix farm machinery, there’s fewer of them around. But the problem is really acute for farmers because if a harvester can’t operate for a week, that can be the difference of thousands of dollars in the price that the farmer receives. So, with that risk of spoilage, you do need to get a quicker fix and an independent repair sector may be part of the answer.

    JENNETT:

    Might it be necessary when you look at the conglomerates that make seed and sprays for agriculture – most of them are very large multinationals – might it be necessary to consider having a power to break them up?

    LEIGH:

    Look, we haven’t gone for divestment, but we are concerned about the degree of market concentration and that’s why we’ve introduced into parliament the biggest merger shake up in 50 years. Jim Chalmers introduced that in the parliament just in the last sittings. And that’s a really key part of economic reform for us, continuing the competition legacy of the Hawke and Keating governments.

    JENNETT:

    If you push this agenda all the way through in all the areas of agriculture that we’re discussing here, possible to estimate price reductions for consumers, those of us who buy food made by Australian farmers, grown by Australian farmers at Australian supermarkets?

    LEIGH:

    The best estimate we’ve got, Greg, is if we return the economy to the levels of competition that prevailed at the turn of the millennium, is that we’d boost GDP by somewhere between one and 3 per cent. That’s in line with estimates that suggested that the National Competition Policy reforms of the 1990s benefited the typical Australian by about 2.5 per cent. These are massive gains and they’re key in dealing with cost‑of‑living issues. [A lack of] competition drives down prices and drives up wages. It also reduces innovation and productivity if you have a lack of competition in the market. So, we need a more competitive and dynamic economy for our farmers and for people who work in other sectors.

    JENNETT:

    Inevitably, you touch on trade in your speech and there’s some big clouds sitting over global trade at the moment, principally from the United States. There’s an event happening there in a week’s time. If the US erects higher tariff walls, particularly on Chinese goods, with the suggestion from candidate Trump of a 60 per cent tariff. What do you estimate the effect on China’s demand for raw ingredients produced by Australia? How much could that drop off by virtue of a US tariff change?

    LEIGH:

    Australia has been a strong advocate of open markets and the Cairns Group of agricultural free trading nations was spearheaded by Australia in order to get a better deal at the World Trade Organisation. Obviously, the Americans will make their own decision. But I’m a passionate free trader because I believe that’s strongly in the interests of Australian consumers and producers. Our farmers in particular have benefited from freer trade and that old era of ‘protection all round’ meant that farmers paid too much for their machines and got too little for their exports as a result of retaliatory tariffs.

    JENNETT:

    Would there be a balancing out here? Sure. China’s demand under the scenario I’ve described, China’s demand for iron ore and coal might drop off because they’re selling fewer goods manufactured into the United States. But by the same token, goods already made need to go somewhere else. Could Australian consumers benefit by China offloading product that might otherwise have been intended for the United States?

    LEIGH:

    Greg, a medium‑sized economy that is engaged with the world like Australia, benefits when trade barriers are low. As Joan Robinson, the great Cambridge economist put it, it’s always worth taking the rocks out of your own harbours, better yet if your trading partners take the rocks out of theirs. So, our interest is strongly in a rules‑based trading system and in low tariffs around the world. Governments in Australia have consistently argued for that. It’s in the national interest and it boosts wages and means Australians get better prices for the goods they buy.

    JENNETT:

    So, are you nervous about what you’re hearing from political debate emanating from the US?

    LEIGH:

    Well, of course we’re all watching the US election and it’s a fascinating show every 4 years, but that’s a decision for the American people.

    JENNETT:

    All right, we might come back to that when we actually get a result in a week or so time. Andrew, one final one. Can’t let you go without asking because we’re asking almost everyone on travel. Would it be better if a blanket rule were put in place for politicians against airline upgrades pertaining to private or unofficial travel? I don’t mean work related travel, but private travel. Would it be cleaner if such a rule existed?

    LEIGH:

    Look, I’d certainly be relaxed about that, Greg. I’m somebody who flies most of my domestic flights economy rather than business. That’s meant that in the past from time ‑to‑time I’ve received upgrades. Doesn’t happen if you book business. But of course that then means the taxpayer’s paying twice as much.

    JENNETT:

    Ever been upgraded on personal travel unexpectedly?

    LEIGH:

    It’s happened to me before. You don’t ask for it, and it’s not something that’s ever changed my decision. I don’t think there’s anyone who’s been as vociferous a critic of Qantas in the parliament as me. I’ve been very strongly critical of their cancellations of Sydney‑Canberra flights and a strong advocate of more competition in the aviation sector. Indeed, I gave a speech on it recently.

    JENNETT:

    Ok, so just to be clear, any personal upgrade you believe was unconnected to your line of work as a politician? Because that’s the grey line here around the Anthony Albanese episodes, isn’t it?

    LEIGH:

    Yeah. I have no idea on what basis they make those decisions. Certainly, I report as the Prime Minister has done, and it’s never affected my decisions. I’ll continue to be a strong advocate for more competition in the aviation sector.

    JENNETT:

    Understood. You certainly have been that. Andrew Leigh, we thank you, as always.

    MIL OSI News –