NewzIntel.com

Category: Politics

  • 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 Security: Turtle Creek Man Indicted on 18 Counts of Violent Robberies of Multiple Businesses, Carjackings, and Firearms Offenses

    Source: Office of United States Attorneys

    PITTSBURGH, Pa. – A resident of Turtle Creek, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of Hobbs Act robbery, carjacking, and firearms violations, United States Attorney Eric G. Olshan announced today.

    The 18-count Indictment named Jamal Martel Brooks, 33, as the sole defendant. Brooks was previously prosecuted and convicted in the Western District of Pennsylvania in 2019 for possession of a firearm by a convicted felon and sentenced to 17 months of incarceration.

    According to the Indictment, from January 3, 2023, to January 2, 2024, Brooks committed numerous violent crimes, including robberies of multiple businesses in the greater Pittsburgh area and two carjackings. Brooks is alleged to have brandished and possessed a firearm in connection with each of these crimes.

    The law provides for a maximum sentence of not less than seven years and up to life in prison for each count of brandishing a firearm during a crime of violence, and the sentence on each such count must be imposed consecutively to any other sentence. Due to the number of robberies alleged to have been committed by Brooks, he is facing a maximum total sentence of not less than 63 years and up to life in prison, a fine of up to $4.5 million, or both. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.

    Brooks also is currently facing charges in the Allegheny County Court of Common Pleas in relation to his alleged shooting of a Monroeville Police Sergeant on January 3, 2024.

    Assistant United States Attorneys Douglas C. Maloney and DeMarr W. Moulton are prosecuting this case on behalf of the government.

    The Bureau of Alcohol, Tobacco, Firearms and Explosives, Federal Bureau of Investigation, Allegheny County Police Department, Pittsburgh Bureau of Police, Monroeville Police Department, and Robinson Township Police Department conducted the investigation leading to the Indictment.

    An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.

    MIL Security OSI –

  • MIL-OSI: Northeast Bank Reports First Quarter Results and Declares Dividend

    Source: GlobeNewswire (MIL-OSI)

    PORTLAND, Maine, Oct. 29, 2024 (GLOBE NEWSWIRE) — Northeast Bank (the “Bank”) (NASDAQ: NBN), a Maine-based full-service bank, today reported net income of $17.1 million, or $2.11 per diluted common share, for the quarter ended September 30, 2024, compared to net income of $15.2 million, or $2.01 per diluted common share, for the quarter ended September 30, 2023.

    The Board of Directors declared a cash dividend of $0.01 per share, payable on November 26, 2024, to shareholders of record as of November 12, 2024.

    “With $859.8 million of loan generation from our National Lending Division, we had our second largest quarterly loan volume in the Bank’s history, consisting of $732.9 million of purchases and $126.9 million of originations,” said Rick Wayne, Chief Executive Officer. “Our National Lending Division portfolio grew by $742.2 million, or 27.6%, over June 30, 2024. Our small balance SBA 7(a) program with Newity LLC as our loan service provider has gained real traction. For the quarter, we originated $82.4 million, compared to $40.2 million for the quarter ended June 30, 2024 and $9.7 million for the quarter ended September 30, 2023. During the current quarter we sold $63.1 million of the guaranteed portion of our SBA loans, compared with $26.8 million for the quarter ended June 30, 2024 and $5.3 million for the quarter ended September 30, 2023. We are reporting earnings of $2.11 per diluted common share, a return on average equity of 17.5%, and a return on average assets of 2.1%.”

    As of September 30, 2024, total assets were $3.94 billion, an increase of $807.7 million, or 25.8%, from total assets of $3.13 billion as of June 30, 2024.

    1.  The following table highlights the changes in the loan portfolio, including loans held for sale, for the three months ended September 30, 2024:

      Loan Portfolio Changes 
      September 30, 2024 Balance   June 30, 2024 Balance   Change ($)   Change (%)
      (Dollars in thousands)  
    National Lending Purchased $ 2,420,883     $ 1,708,551     $ 712,332     41.69 %
    National Lending Originated   1,011,374       981,497       29,877     3.04 %
    SBA National   66,919       48,405       18,514     38.25 %
    Community Banking   21,426       22,704       (1,278 )   (5.63 %)
    Total $ 3,520,602     $ 2,761,157     $ 759,445     27.50 %
                               

    Loans generated by the Bank’s National Lending Division for the quarter ended September 30, 2024 totaled $859.8 million, which consisted of $732.9 million of purchased loans at an average price of 90.7% of unpaid principal balance, and $126.9 million of originated loans.

    An overview of the Bank’s National Lending Division portfolio follows:

      National Lending Portfolio
      Three Months Ended September 30,
      2024   2023
      Purchased   Originated   Total   Purchased   Originated   Total
      (Dollars in thousands)
    Loans purchased or originated during the period:                                  
    Unpaid principal balance $ 807,733     $ 126,893     $ 934,626     $ 63,695     $ 68,042     $ 131,737  
    Initial net investment basis (1)   732,893       126,893       859,786       52,346       68,042       120,388  
                                       
    Loan returns during the period:                                  
    Yield   8.83 %     9.31 %     9.00 %     8.99 %     10.03 %     9.40 %
    Total Return on Purchased Loans (2)   8.84 %     N/A     8.84 %     9.04 %     N/A     9.04 %
                                       
    Total loans as of period end:                                  
    Unpaid principal balance $ 2,644,390     $ 1,011,374     $ 3,655,764     $ 1,693,627     $ 958,232     $ 2,651,859  
    Net investment basis   2,420,883       1,011,374       3,432,257       1,516,379       958,232       2,474,611  
                                       

    (1) Initial net investment basis on purchased loans is the initial amortized cost basis net of initial allowance for credit losses (credit mark).
    (2) The total return on purchased loans represents scheduled accretion, accelerated accretion, gains (losses) on real estate owned, release of allowance for credit losses on purchased loans, and other noninterest income recorded during the period divided by the average invested balance on an annualized basis. The total return on purchased loans does not include the effect of purchased loan charge-offs or recoveries during the period. Total return on purchased loans is considered a non-GAAP financial measure. See reconciliation in below table entitled “Total Return on Purchased Loans.”

    2.  Deposits increased by $785.5 million, or 33.6%, from June 30, 2024. The increase was primarily attributable to increases in time deposits of $785.4 million, or 60.1%. The significant drivers in the change in time deposits were the increase in brokered time deposits, which increased by $712.6 million, and Community Banking Division time deposits, which increased by $52.9 million compared to June 30, 2024.

    3.  Federal Home Loan Bank (“FHLB”) advances decreased by $6.1 million, or 1.8%, from June 30, 2024. The decrease was attributable to net paydowns on amortizing advances.

    4.  Shareholders’ equity increased by $15.9 million, or 4.2%, from June 30, 2024, primarily due to net income of $17.1 million and stock-based compensation of $1.8 million, partially offset by the cancelation of restricted stock to cover tax obligations on restricted stock vests, which had a $3.2 million impact on shareholders’ equity.

    Net income increased by $1.9 million to $17.1 million for the quarter ended September 30, 2024, compared to net income of $15.2 million for the quarter ended September 30, 2023.

    1.  Net interest and dividend income before provision for credit losses increased by $1.9 million to $39.0 million for the quarter ended September 30, 2024, compared to $37.1 million for the quarter ended September 30, 2023. The increase was primarily due to the following:

    • An increase in interest income earned on loans of $6.2 million, primarily due to higher average balances in the National Lending Division purchased and Small Business Administration (“SBA”) portfolios and higher rates earned on the SBA portfolio;
    • An increase in interest income earned on short-term investments of $821 thousand, due to higher average balances and higher rates earned; and
    • A decrease in FHLB borrowings interest expense of $2.1 million, primarily due to lower average balances; partially offset by,
    • An increase in deposit interest expense of $7.3 million, primarily due to higher average balances as well as higher rates in interest-bearing deposits.

    The following table summarizes interest income and related yields recognized on the loan portfolios:

      Interest Income and Yield on Loans
      Three Months Ended September 30,
      2024   2023
      Average   Interest       Average   Interest    
      Balance (1)   Income   Yield   Balance (1)   Income   Yield
      (Dollars in thousands)
    Community Banking $ 22,409     $ 370     6.55 %   $ 27,149     $ 438     6.42 %
    SBA National   59,745       2,419     16.06 %     26,257       786     11.91 %
    National Lending:                                      
    Originated   997,397       23,408     9.31 %     960,629       24,219     10.03 %
    Purchased   1,758,801       39,141     8.83 %     1,489,394       33,671     8.99 %
    Total National Lending   2,756,198       62,549     9.00 %     2,450,023       57,890     9.40 %
    Total $ 2,838,352     $ 65,338     9.13 %   $ 2,503,429       59,114     9.39 %
                                               

    (1) Includes loans held for sale.

    The components of total income on purchased loans are set forth in the table below entitled “Total Return on Purchased Loans.” When compared to the quarter ended September 30, 2023, transactional income decreased by $776 thousand for the quarter ended September 30, 2024, and regularly scheduled interest and accretion increased by $6.1 million primarily due to the increase in average balances. The total return on purchased loans for the quarter ended September 30, 2024 was 8.8%, a decrease from 9.0% for the quarter ended September 30, 2023. The following table details the total return on purchased loans:

      Total Return on Purchased Loans
      Three Months Ended September 30,
      2024   2023
      Income   Return (1)   Income   Return (1)
      (Dollars in thousands)
    Regularly scheduled interest and accretion $ 37,160     8.38 %   $ 31,030     8.29 %
    Transactional income:                      
    Release of allowance for credit losses on purchased loans   64     0.01 %     180     0.05 %
    Accelerated accretion and loan fees   1,981     0.45 %     2,641     0.70 %
    Total transactional income   2,045     0.46 %     2,821     0.75 %
    Total $ 39,205     8.84 %   $ 33,851     9.04 %
       

    (1) The total return on purchased loans represents scheduled accretion, accelerated accretion, and gains (losses) on real estate owned, and release of allowance for credit losses on purchased loans recorded during the period divided by the average invested balance on an annualized basis. The total return does not include the effect of purchased loan charge-offs or recoveries in the quarter. Total return is considered a non-GAAP financial measure.

    2.  Provision for credit losses increased by $232 thousand to $422 thousand for the quarter ended September 30, 2024, compared to $190 thousand in the quarter ended September 30, 2023. The increase was primarily related to the increase in originated loans during the quarter ended September 30, 2024.

    3.  Noninterest income increased by $3.3 million for the quarter ended September 30, 2024, compared to the quarter ended September 30, 2023, primarily due to an increase in gain on sale of SBA loans of $3.1 million, due to the sale of $63.1 million in SBA loans during the quarter ended September 30, 2024 as compared to the sale of $5.3 million during the quarter ended September 30, 2023.

    4.   Noninterest expense increased by $2.3 million for the quarter ended September 30, 2024 compared to the quarter ended September 30, 2023, primarily due to the following:

    • An increase in salaries and employee benefits expense of $1.5 million, primarily due to increases in regular and stock compensation expense; and
    • An increase in loan expense of $643 thousand primarily related to increased expenses in connection with the origination of SBA 7(a) loans.

    5.  Income tax expense increased by $754 thousand to $7.9 million, or an effective tax rate of 31.6%, for the quarter ended September 30, 2024, compared to $7.2 million, or an effective tax rate of 32.0%, for the quarter ended September 30, 2023. The decrease in effective tax rate is primarily due a $243 thousand increase in tax benefit on the vest of restricted stock and exercise of stock options during the quarter ended September 30, 2024 as compared to the quarter ended September 30, 2023.

    As of September 30, 2024, nonperforming assets totaled $37.2 million, or 0.94% of total assets, compared to $28.3 million, or 0.90% of total assets, as of June 30, 2024. The increase is primarily related to four National Lending loans placed on non-accrual, which are individually evaluated in the allowance for credit losses and are well-collateralized.

    As of September 30, 2024, past due loans totaled $31.3 million, or 0.89% of total loans, compared to past due loans totaling $26.3 million, or 0.95% of total loans, as of June 30, 2024.

    As of September 30, 2024, the Bank’s Tier 1 leverage capital ratio was 12.1%, compared to 12.3% at June 30, 2024, and the Total risk-based capital ratio was 12.7% at September 30, 2024, compared to 14.8% at June 30, 2024. The Total risk-based capital ratio decreased primarily due to the increase in risk-weighted assets from significant loan growth during the quarter ended September 30, 2024.

    Investor Call Information
    Rick Wayne, Chief Executive Officer, Richard Cohen, Chief Financial Officer, and Pat Dignan, Chief Operating Officer of Northeast Bank, will host a conference call to discuss first quarter earnings and business outlook at 10:00 a.m. Eastern Time on Wednesday, October 30th. To access the conference call by phone, please go to this link (Phone Registration), and you will be provided with dial in details. The call will be available via live webcast, which can be viewed by accessing the Bank’s website at www.northeastbank.com and clicking on the About Us – Investor Relations section. To listen to the webcast, attendees are encouraged to visit the website at least fifteen minutes early to register, download and install any necessary audio software. Please note there will also be a slide presentation that will accompany the webcast. For those who cannot listen to the live broadcast, a replay will be available online for one year at www.northeastbank.com.

    About Northeast Bank
    Northeast Bank (NASDAQ: NBN) is a full-service bank headquartered in Portland, Maine. We offer personal and business banking services to the Maine market via seven branches. Our National Lending Division purchases and originates commercial loans on a nationwide basis. ableBanking, a division of Northeast Bank, offers online savings products to consumers nationwide. Information regarding Northeast Bank can be found at www.northeastbank.com.

    Non-GAAP Financial Measures
    In addition to results presented in accordance with generally accepted accounting principles (“GAAP”), this press release contains certain non-GAAP financial measures, including tangible common shareholders’ equity, tangible book value per share, total return on purchased loans, and efficiency ratio. The Bank’s management believes that the supplemental non-GAAP 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 determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names.

    Forward-Looking Statements
    Statements in this press release that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. We may also make forward-looking statements in other documents we file with the Federal Deposit Insurance Corporation (the “FDIC”), in our annual reports to our shareholders, in press releases and other written materials, and in oral statements made by our officers, directors or employees. You can identify forward-looking statements by the use of the words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “assume,” “outlook,” “will,” “should,” and other expressions that predict or indicate future events and trends and which do not relate to historical matters. Although the Bank believes that these forward-looking statements are based on reasonable estimates and assumptions, they are not guarantees of future performance and are subject to known and unknown risks, uncertainties, contingencies, and other factors. You should not place undue reliance on our forward-looking statements. You should exercise caution in interpreting and relying on forward-looking statements because they are subject to significant risks, uncertainties and other factors which are, in some cases, beyond the Bank’s control. The Bank’s actual results could differ materially from those expressed or implied by such the forward-looking statements as a result of, among other factors, changes in employment levels, general business and economic conditions on a national basis and in the local markets in which the Bank operates; changes in customer behavior due to changing business and economic conditions (including inflation and concerns about liquidity) or legislative or regulatory initiatives; the possibility that future credits losses are higher than currently expected due to changes in economic assumptions, customer behavior or adverse economic developments; turbulence in the capital and debt markets; changes in interest rates and real estate values; competitive pressures from other financial institutions; changes in loan defaults and charge-off rates; changes in the value of securities and other assets, adequacy of credit loss reserves, or deposit levels necessitating increased borrowing to fund loans and investments; changing government regulation; operational risks including, but not limited to, cybersecurity, fraud, natural disasters, climate change and future pandemics; the risk that the Bank may not be successful in the implementation of its business strategy; the risk that intangibles recorded in the Bank’s financial statements will become impaired; changes in assumptions used in making such forward-looking statements; and the other risks and uncertainties detailed in the Bank’s Annual Report on Form 10-K and updated by our Quarterly Reports on Form 10-Q and other filings submitted to the FDIC. These statements speak only as of the date of this release and the Bank does not undertake any obligation to update or revise any of these forward-looking statements to reflect events or circumstances occurring after the date of this communication or to reflect the occurrence of unanticipated events.

    NBN-F

     
    NORTHEAST BANK
    BALANCE SHEETS
    (Unaudited)
    (Dollars in thousands, except share and per share data)
      September 30, 2024   June 30, 2024
                 
    Assets            
    Cash and due from banks $ 768     $ 2,711  
    Short-term investments   316,519       239,447  
    Total cash and cash equivalents   317,287       242,158  
                 
                 
    Available-for-sale debt securities, at fair value   36,836       48,978  
    Equity securities, at fair value   7,269       7,013  
    Total investment securities   44,105       55,991  
                 
    SBA loans held for sale   17,639       14,506  
                 
    Loans:            
    Commercial real estate   2,715,536       2,028,280  
    Commercial and industrial   681,118       618,846  
    Residential real estate   106,075       99,234  
    Consumer   234       291  
    Total loans   3,502,963       2,746,651  
    Less: Allowance for credit losses   43,640       26,709  
    Loans, net   3,459,323       2,719,942  
                 
                 
    Premises and equipment, net   26,452       27,144  
    Federal Home Loan Bank stock, at cost   15,499       15,751  
    Loan servicing rights, net   926       984  
    Bank-owned life insurance   18,954       18,830  
    Accrued interest receivable   17,294       15,163  
    Other assets   22,419       21,734  
    Total assets $ 3,939,898     $ 3,132,203  
                 
    Liabilities and Shareholders’ Equity            
    Deposits:            
    Demand $ 149,669     $ 146,727  
    Savings and interest checking   752,806       732,029  
    Money market   130,878       154,504  
    Time   2,091,561       1,306,203  
    Total deposits   3,124,914       2,339,463  
                 
    Federal Home Loan Bank and other advances   339,073       345,190  
    Lease liability   19,870       20,252  
    Other liabilities   63,484       50,664  
    Total liabilities   3,547,341       2,755,569  
                 
    Commitments and contingencies   –       –  
                 
                 
    Shareholders’ equity            
    Preferred stock, $1.00 par value, 1,000,000 shares authorized; no shares          
    issued and outstanding at September 30 and June 30, 2024   –       –  
    Voting common stock, $1.00 par value, 25,000,000 shares authorized;            
    8,212,026 and 8,127,690 shares issued and outstanding at          
    September 30 and June 30, 2024, respectively   8,212       8,128  
    Non-voting common stock, $1.00 par value, 3,000,000 shares authorized;            
    No shares issued and outstanding at September 30 and June 30, 2024 –     –  
    Additional paid-in capital   63,318       64,762  
    Retained earnings   320,955       303,927  
    Accumulated other comprehensive income (loss)   72       (183 )
    Total shareholders’ equity   392,557       376,634  
    Total liabilities and shareholders’ equity $ 3,939,898     $ 3,132,203  
                   
     
    NORTHEAST BANK
    STATEMENTS OF INCOME
    (Unaudited)
    (Dollars in thousands, except share and per share data)
      Three Months Ended September 30,
      2024   2023
    Interest and dividend income:            
    Interest and fees on loans $ 65,338     $ 59,114  
    Interest on available-for-sale securities   595       483  
    Other interest and dividend income   3,921       3,100  
    Total interest and dividend income   69,854       62,697  
                 
    Interest expense:            
    Deposits   26,590       19,257  
    Federal Home Loan Bank and other advances   4,030       6,145  
    Obligation under capital lease agreements   234       171  
    Total interest expense   30,854       25,573  
    Net interest and dividend income before provision for credit losses   39,000       37,124  
    Provision for credit losses   422       190  
    Net interest and dividend income after provision for credit losses   38,578       36,934  
                 
    Noninterest income:            
    Fees for other services to customers   443       407  
    Gain on sales of SBA loans   3,331       251  
    Net unrealized gain (loss) on equity securities   189       (157 )
    Loss on real estate owned, other repossessed collateral and premises and equipment, net   –       –  
    Bank-owned life insurance income   124       115  
    Correspondent fee income   30       92  
    Other noninterest income   2       71  
    Total noninterest income   4,119       779  
                 
    Noninterest expense:            
    Salaries and employee benefits   11,183       9,721  
    Occupancy and equipment expense   1,078       1,105  
    Professional fees   753       781  
    Data processing fees   1,487       1,100  
    Marketing expense   136       261  
    Loan acquisition and collection expense   1,293       650  
    FDIC insurance expense   331       357  
    Other noninterest expense   1,424       1,414  
    Total noninterest expense   17,685       15,389  
    Income before income tax expense   25,012       22,324  
    Income tax expense   7,906       7,152  
    Net income $ 17,106     $ 15,172  
                 
                 
    Weighted-average shares outstanding:            
    Basic   7,886,148       7,479,837  
    Diluted   8,108,688       7,554,314  
                 
    Earnings per common share:            
    Basic $ 2.17     $ 2.03  
    Diluted   2.11       2.01  
                   
    Cash dividends declared per common share $ 0.01     $ 0.01  
     
     
    NORTHEAST BANK
    AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS
    (Unaudited)
    (Dollars in thousands)
      Three Months Ended September 30,
      2024   2023
          Interest   Average       Interest   Average
      Average   Income/   Yield/   Average   Income/   Yield/
      Balance   Expense   Rate   Balance   Expense   Rate
    Assets:                                          
    Interest-earning assets:                                      
    Investment securities $ 55,413     $ 595     4.26 %   $ 60,173     $ 483     3.19 %
    Loans (1) (2) (3)   2,838,352       65,338     9.13 %     2,503,429       59,114     9.39 %
    Federal Home Loan Bank stock   16,465       330     7.95 %     22,357       413     7.35 %
    Short-term investments (4)   245,542       3,591     5.80 %     201,803       2,687     5.30 %
    Total interest-earning assets   3,155,772       69,854     8.78 %     2,787,762       62,697     8.95 %
    Cash and due from banks   2,112                   2,492              
    Other non-interest earning assets   94,071                   56,263              
    Total assets $ 3,251,955                 $ 2,846,517              
                                           
    Liabilities & Shareholders’ Equity:                                      
    Interest-bearing liabilities:                                      
    NOW accounts $ 563,730     $ 6,380     4.49 %   $ 487,445     $ 5,145     4.20 %
    Money market accounts   148,687       1,267     3.38 %     258,296       2,133     3.29 %
    Savings accounts   178,581       1,557     3.46 %     90,997       560     2.45 %
    Time deposits   1,389,832       17,386     4.96 %     977,220       11,419     4.65 %
    Total interest-bearing deposits   2,280,830       26,590     4.63 %     1,813,958       19,257     4.22 %
    Federal Home Loan Bank advances   362,594       4,030     4.41 %     510,514       6,145     4.79 %
    Lease liability   20,018       234     4.64 %     21,776       171     3.12 %
    Total interest-bearing liabilities   2,663,442       30,854     4.60 %     2,346,248       25,573     4.34 %
                                           
    Non-interest-bearing liabilities:                                      
    Demand deposits and escrow accounts   175,161                   169,338              
    Other liabilities   26,175                   25,065              
    Total liabilities   2,864,778                   2,540,651              
    Shareholders’ equity   387,177                   305,866              
    Total liabilities and shareholders’ equity $ 3,251,955                 $ 2,846,517              
                                           
    Net interest income         $ 39,000                 $ 37,124      
                                           
    Interest rate spread                 4.18 %                   4.61 %
    Net interest margin (5)                 4.90 %                   5.30 %
                                           
    Cost of funds (6)                 4.31 %                   4.04 %
                                           
    (1) Interest income and yield are stated on a fully tax-equivalent basis using the statutory tax rate.
    (2) Includes loans held for sale.
    (3) Nonaccrual loans are included in the computation of average, but unpaid interest has not been included for purposes of determining interest income.
    (4) Short-term investments include FHLB overnight deposits and other interest-bearing deposits.
    (5) Net interest margin is calculated as net interest income divided by total interest-earning assets.
    (6) Cost of funds is calculated as total interest expense divided by total interest-bearing liabilities plus demand deposits and escrow accounts.
     
     
    NORTHEAST BANK
    SELECTED FINANCIAL HIGHLIGHTS AND OTHER DATA
    (Unaudited)
    (Dollars in thousands, except share and per share data)
      Three Months Ended
      September 30, 2024   June 30, 2024   March 31, 2024   December 31, 2023   September 30, 2023
    Net interest income $ 39,000     $ 37,935     $ 36,512     $ 37,000     $ 37,124  
    Provision for credit losses   422       547       596       436       190  
    Noninterest income   4,119       2,092       1,542       1,466       779  
    Noninterest expense   17,685       17,079       16,429       15,669       15,389  
    Net income   17,106       15,140       13,865       14,054       15,172  
                       
    Weighted-average common shares outstanding:                  
    Basic   7,886,148       7,765,868       7,509,320       7,505,109       7,479,837  
    Diluted   8,108,688       7,910,692       7,595,124       7,590,913       7,554,315  
    Earnings per common share:                  
    Basic $ 2.17     $ 1.95     $ 1.85     $ 1.87     $ 2.03  
    Diluted   2.11       1.91       1.83       1.85       2.01  
                       
    Dividends declared per common share $ 0.01     $ 0.01     $ 0.01     $ 0.01     $ 0.01  
                       
    Return on average assets   2.09 %     1.99 %     1.87 %     1.93 %     2.12 %
    Return on average equity   17.53 %     16.56 %     16.45 %     17.35 %     19.73 %
    Net interest rate spread (1)   4.18 %     4.41 %     4.27 %     4.49 %     4.61 %
    Net interest margin (2)   4.90 %     5.13 %     5.01 %     5.20 %     5.30 %
    Efficiency ratio (non-GAAP) (3)   41.01 %     42.67 %     43.17 %     40.73 %     40.60 %
    Noninterest expense to average total assets   2.16 %     2.24 %     2.21 %     2.15 %     2.15 %
    Average interest-earning assets to average interest-bearing liabilities   118.48 %     118.78 %     119.28 %     118.52 %     118.82 %
                       
      As of:
      September 30, 2024   June 30, 2024   March 31, 2024   December 31, 2023   September 30, 2023
    Nonperforming loans:                  
    Originated portfolio:                  
    Residential real estate $ 3,976     $ 2,502     $ 2,573     $ 2,582     $ 289  
    Commercial real estate   4,682       1,407       2,075       2,075       1,973  
    Commercial and industrial   6,684       6,520       6,928       6,950       584  
    Consumer   –       –       –       –       –  
    Total originated portfolio   15,342       10,429       11,576       11,607       2,846  
    Total purchased portfolio   21,830       17,832       16,370       19,165       14,603  
    Total nonperforming loans   37,172       28,261       27,946       30,772       17,449  
    Real estate owned and other repossessed collateral, net   –       –       –       –       –  
    Total nonperforming assets $ 37,172     $ 28,261     $ 27,946     $ 30,772     $ 17,449  
                       
    Past due loans to total loans   0.89 %     0.95 %     1.13 %     1.22 %     1.01 %
    Nonperforming loans to total loans   1.06 %     1.02 %     1.05 %     1.18 %     0.69 %
    Nonperforming assets to total assets   0.94 %     0.90 %     0.93 %     1.04 %     0.61 %
    Allowance for credit losses to total loans   1.25 %     0.97 %     0.98 %     1.06 %     1.00 %
    Allowance for credit losses to nonperforming loans   117.40 %     94.51 %     92.83 %     89.67 %     145.01 %
    Net charge-offs (recoveries) $ 1,604     $ 1,347     $ 2,225     $ 995     $ 1,536  
    Commercial real estate loans to total capital (4)   604.38 %     482.13 %     509.08 %     544.34 %     546.91 %
    Net loans to deposits   110.70 %     116.88 %     118.15 %     121.31 %     127.24 %
    Purchased loans to total loans   69.11 %     61.88 %     60.99 %     63.07 %     59.98 %
    Equity to total assets   9.96 %     12.02 %     11.73 %     11.03 %     10.83 %
    Common equity tier 1 capital ratio   11.45 %     13.84 %     13.24 %     12.63 %     12.45 %
    Total risk-based capital ratio   12.70 %     14.82 %     14.22 %     13.71 %     13.46 %
    Tier 1 leverage capital ratio   12.06 %     12.30 %     11.79 %     11.28 %     10.95 %
                       
    Total shareholders’ equity $ 392,557     $ 376,634     $ 351,913     $ 327,540     $ 311,569  
    Less: Preferred stock   –       –       –       –       –  
    Common shareholders’ equity   392,557       376,634       351,913       327,540       311,569  
    Less: Intangible assets (5)   –       –       –       –       –  
    Tangible common shareholders’ equity (non-GAAP) $ 392,557     $ 376,634     $ 351,913     $ 327,540     $ 311,569  
                       
    Common shares outstanding   8,212,026       8,127,690       7,977,690       7,804,052       7,796,691  
    Book value per common share $ 47.80     $ 46.34     $ 44.11     $ 41.97     $ 39.96  
    Tangible book value per share (non-GAAP) (6)   47.80       46.34       44.11       41.97       39.96  
                       
    (1) The net interest rate spread represents the difference between the weighted-average yield on interest-earning assets and the weighted-average cost of interest-bearing liabilities for the period.
    (2) The net interest margin represents net interest income as a percent of average interest-earning assets for the period.
    (3) The efficiency ratio represents noninterest expense divided by the sum of net interest income (before the credit loss provision) plus noninterest income.
    (4) For purposes of calculating this ratio, commercial real estate includes all non-owner occupied commercial real estate loans defined as such by regulatory guidance, including all land development and construction loans.
    (5) Includes the loan servicing rights asset.
    (6) Tangible book value per share represents total shareholders’ equity less the sum of preferred stock and intangible assets divided by common shares outstanding.
     

    For More Information:
    Richard Cohen, Chief Financial Officer
    Northeast Bank, 27 Pearl Street, Portland, Maine 04101
    207.786.3245 ext. 3249
    www.northeastbank.com

    The MIL Network –

  • 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 Global: New insights from Shakespeare’s England reveal striking parallels to contemporary climate change

    Source: The Conversation – Canada – By Madeline Bassnett, Professor of Early Modern English Literature, Western University

    Unprecedented storms and devastating drought. Flash floods and wildfires ignited by the air’s dry heat. This is the experience for many in our modern world. But it was also the experience for those living amid England’s Little Ice Age.

    The Little Ice Age is a period from around 1300 to 1850, when global temperatures dropped significantly. While the exact cause of this phenonemon is unknown, theories range from volcanic eruptions to European colonization of the Americas.

    Our research into England’s Little Ice Age during the 16th and 17th centuries has unearthed more than 1,800 unique pieces of weather observations, hidden in documents like diaries and letters. Local and national chronicles embedded reports of extreme weather among accounts of war and monarchs. Extreme weather pamphlets publicized tragic effects of earthquakes, floods and storms, much like our media today.

    Our team has created an open access database called the Weather Extremes in England’s Little Ice Age 1500-1700. This database visually maps both extreme and temperate weather in the age of Shakespeare and can help to advance modern climate science.

    More fundamentally, these experiential accounts provide a fascinating window into a world not too different from our own. While the causes of the climate change of today are well known, and likely different from that of the Little Ice Age, the experiences of living through both events are at times eerily similar. Understanding these past experiences can help us to better understand our present day and to develop more robust policies in the here and now.



    Read more:
    The Canadian Arctic shows how understanding the effects of climate change requires long-term vision

    Frosts and freezes

    Frost fairs on the River Thames have become a familiar cultural reference point for England’s Little Ice Age. Our data shows that the river froze over a mere four times in the 16th century — in 1516, 1537, 1564 and 1590 — and there were only intermittent observations of unusual cold or snow.

    The 17th century was markedly different. Reports of cold came thick and fast, with the exception of a few years between 1620 and 1643.

    Title page from The Great Frost: ‘Cold doings in London, except it be at the lotterie. With newes out of the country. A familiar talk betwene a country-man and a citizen touching this terrible frost and the great lotterie, and the effects of them.’ Printed at London: For Henry Gosson, 1608. Attributed to Thomas Dekker.
    (Houghton Library, Harvard University)

    This was the century of frost fairs on the Thames. With the first 17th century fair in 1608, these events were celebrated by English playwright Thomas Dekker in his pamphlet The Great Frost.

    Drinking, barbering and games were on display as London’s citizens marvelled at the novelty of entertainment on the ice. The freezes were frequent enough to become an institution.

    By the winter of 1683-1684, the frost fair had become a city within a city, expanding across the ice with avenues of booths, bear and bull-baiting rings and boats-turned-chariots pulled by enterprising watermen across the now solid river.

    But these iconic events were just one aspect of Little Ice Age weather in England.

    Storms and floods

    In the 16th century, severe rain storms were far more common than cold snaps.

    On Oct. 5, 1570, “a terrible tempest of wind and raine” caused flooding from Lincolnshire to London as rivers overflowed their banks, drowning towns, fields, crops and cattle. Storm surges inundated the coastline.

    Four years later, towns from Newport to St. Ives suffered “raging floods,” and a “giant sea fish” (whale) washed up in the Thames from a massive surge up river. In May 1594, “soddane showres of haile [and] raine” destroyed houses, iron mills, crops and cattle in Sussex and Surrey. September of that year saw another deluge, with bridges taken down in Cambridge and Ware.

    This all changed in the 17th century, following the Great Flood that struck Bristol and surrounding areas in 1607. Extreme cold spells then became more frequent, and major storm events were less common. The winter of 1612-1613 saw a number of violent storms recorded in the pamphlet Wonders of this Windie Winter, with livestock lost from Newcastle to Dover and bodies from shipwrecks washing aground in the Thames.

    In the next 40 years, though, only the years of 1626 and 1637 contain reports of significant storm events causing loss of life or livestock. Instead of extreme storms, this century was marked more by regular but moderate rainfall, consistent with colder, wetter conditions normally associated with the Little Ice Age.

    Fire and heat

    If colder, wetter weather was a new normal for 17th century Britons, the hot, dry spring of 1666 caught Londoners unprepared. The Great Fire of London was one of the worst disasters of the age, and diarist John Evelyn recounts that “the heate … had even ignited the aire,” a comment reminiscent of descriptions of wildfire spread today.

    Yet periods of extreme heat were surprisingly frequent during the previous century, especially in the England that Shakespeare knew. More than a dozen droughts were recorded across England in the 16th century, usually broken by extreme storms or floods. It never rained, it seems, but it poured. The Thames dried up completely in 1592.

    As Thomas Short wrote in his Chronological History of English Weather, “an excessive drought, great death of cattle from want of water; springs and brooks were dried up; horsemen could ride the Thames.” Locals went into the mud to retrieve items long lost to the river.

    Shakespeare’s hometown of Stratford-upon-Avon was nearly destroyed by fire twice, in 1594 and 1595, due to severe drought and heat. The warning signs were there for Londoners to beware of hot spells in the next century, but frost fairs and wet weather may have bred complacency.

    Lessons for today

    The Weather Extremes in England’s Little Ice Age 1500-1700 database is revealing a picture of the world of Shakespeare and early modern England that upends a simplified picture of the Little Ice Age. More than just a world of frosts and freezes, the English Little Ice Age could be known as well as an age of fire and rain.



    Read more:
    The B.C. election could decide the future of the province’s species at risk laws

    The documents in our database are the reports of people who lived in a climatically changing world and saw its shifts firsthand. It shows how important weather crowd-sourcing can be, even centuries later. Contemporary projects like the Community Collaborative Rain, Hail and Snow Network, or the Northern Tornadoes Project, continue in the spirit of this work.

    But our data could also provide insight into today’s extreme weather. Historical flooding patterns might provide reference points to better manage and understand the unstable weather experienced in the British Isles today.

    Madeline Bassnett has received funding from SSHRC for the Weather Extremes in England’s Little Ice Age 1500-1700 project.

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

    – ref. New insights from Shakespeare’s England reveal striking parallels to contemporary climate change – https://theconversation.com/new-insights-from-shakespeares-england-reveal-striking-parallels-to-contemporary-climate-change-240755

    MIL OSI – Global Reports –

  • MIL-OSI USA: Bennet, Hickenlooper, Neguse, Pettersen, Polis Welcome $129 Million for Rail Projects in Colorado

    US Senate News:

    Source: United States Senator for Colorado Michael Bennet

    Photos from Press Conference HERE 

    Denver — Colorado U.S. Senators Michael Bennet and John Hickenlooper, U.S. Representatives Joe Neguse and Brittany Pettersen, and Governor Jared Polis welcomed over $129.5 million from the U.S. Department of Transportation (DOT) for four Colorado rail projects. The Colorado Department of Transportation (CDOT), Colorado State University (CSU) Pueblo, San Luis Central Railroad, and OmniTRAX will all receive funding as part of DOT’s Consolidated Rail Infrastructure & Safety Improvements Grant Program, funded in part through the Bipartisan Infrastructure Law. The leaders held a press conference on Tuesday in Westminster, Colorado, to celebrate this announcement.

    “Colorado’s railways are vital to connect our communities and get resources to markets across the country. That’s why I ensured the U.S. Department of Transportation understood how critical this funding is for our state’s transportation infrastructure,” said Bennet. “I’m glad to have helped secure these investments in our railways’ safety, efficiency, and reliability across the state. ”

    “From freight in the San Luis Valley to passengers on the Front Range and beyond with CSU Pueblo’s research, rail isn’t just a part of our past, it’s a big part of our future, too,” said Hickenlooper. “That’s the case we made to Secretary Buttigieg for this funding and this is just the start.” 

    “After years of working to secure federal support for the Front Range Passenger Rail Project, I am excited to see the Department of Transportation heed our calls and commit to modernizing Colorado’s passenger rail system—not just for communities along the Front Range but for residents throughout the entire state. This is a once-in-a-generation investment in our passenger rail infrastructure, creating countless new opportunities for communities to connect, grow, and thrive—and we will continue to work together to ensure this momentum leads to lasting benefits for all Coloradans,” said Neguse.

    “Today, I am incredibly grateful to see this federal funding coming to Colorado to strengthen our railway systems, enhance safety, and modernize our infrastructure,” said Pettersen. “After a train derailment in Boulder injured workers and put our communities at risk, I supported funding to reinforce public safety and restore trust in Colorado’s rail infrastructure. I’m pleased to see these federal dollars coming to our state to help ensure we have safe, reliable infrastructure for generations to come.”

    “Today’s grant will make freight rail traffic in some of our busiest growing communities safer quickly while providing critical building blocks for Passenger Rail.  This major funding will help achieve important priorities like complying with longstanding federal standards and improving the safety of rail crossings, which can be the sites of dangerous incidents. With more than $66 million in federal support from the Biden-Harris administration, the future of Colorado’s rail network is a clear priority for the federal government, as it should be. We thank Senators Hickenlooper and Bennet, Congressman Neguse and Congresswoman Pettersen, and our communities for their support of this important project,” said Polis.

    This funding includes:

    • $66.4 million for CDOT to modernize Front Range rail. This investment will help CDOT design, install, and test train operation and safety improvements, including Positive Train Control (PTC) and railroad crossings;
    • $50.5 million for OmniTRAX transportation safety and employment. This investment will help design and construct replacement railroad ties across Omnitrax short lines;
    • $11.6 million for CSU Pueblo to research renewable energy for rail vehicles. This investment will aid research and development of alternative fuel rail transportation, including safety experiments on the use of CH2/CNG-powered rail cars at the facility; and
    • $1 million for San Luis Central Railroad to replace wooden ties. This investment will help replace deteriorated cross and switch ties to ensure safety along the SLC corridor.

    “Southern Colorado often represents a hard-working spirit leveraging the opportunity of innovation. This Department of Transportation CRISI grant emboldens that spirit, enabling CSU Pueblo, in partnership with the Southern Colorado Transportation Technology Center (SCITT), to contribute to the future of rail transportation through critical safety research in hydrogen and natural gas technologies. I am particularly proud of how this project will partner with our Engineering program at CSU Pueblo, utilizing the expertise here to create new pathways for our students and local workforce. This grant is more than research – it’s a valuable investment into Southern Colorado,” said Armando Valdez, President, CSU Pueblo.

    “TIES2 will be transformative for the communities served by Great Western Railway of Colorado and the regions served by OmniTRAX railroads in Georgia, Alabama, and Washington state,” said David Arganbright, Senior Vice President, OmniTRAX. “OmniTRAX is proud to call Colorado home, and we are tremendously appreciative of all the work that Sen. Hickenlooper has done in Congress to champion Colorado’s railways and deliver the critical infrastructure investments that strengthen our nation’s supply chains.”

    Earlier this year, Bennet, Hickenlooper, Neguse and Pettersen urged the DOT to fund CDOT’s project along the Front Range.

    MIL OSI USA 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 Canada: Manitoba Government Announces Anti-Islamophobia Working Group

    Source: Government of Canada regional news

    October 29, 2024

    Manitoba Government Announces Anti-Islamophobia Working Group

    The Manitoba government is taking steps to address Islamophobia by forming a working group to tackle the issue in the province’s kindergarten to Grade 12 education system, Premier Wab Kinew announced today. 

    “Hate has no place in our province,” said Kinew. “It is important that we come together as Manitobans and stand united against all acts of hatred. We have a role as a government to keep things together here in Manitoba and we want Manitobans from all walks of life to know that your government is going to show up for you.” 

    The working group will focus on building awareness of Islamophobia and its impacts on all students and staff, developing training and professional opportunities and resources for educators, and providing input to Manitoba Education and Early Childhood Learning regarding K-12 anti-racism and anti-oppression policy initiatives. 

    “Over the last year, incidents of Islamophobia have increased in our classrooms and schools,” said Sadaf Ahmed, advocacy officer, National Council of Canadian Muslims (NCCM). “This is why an anti-Islamophobia strategy is imperative and NCCM welcomes the government of Manitoba‘s leadership to promote inclusivity in our education system.” 

    The working group will include members from the department, faith leaders, community advocacy groups and educators. The working group members are:

    • Sadaf Ahmed, National Council of Canadian Muslims;
    • Brahim Ould Baba, Manitoba Teachers’ Society;
    • Sarah Gazan, acting director, Indigenous Excellence Directorate, Education and Early Childhood Learning;
    • Muhamed Hammad, Faizan-E-Makkah Winnipeg (youth representative);
    • Humaira Jaleel, executive director, Healthy Muslim Families;
    • Kate McNeil, senior advisor to the deputy minister of Education and Early Childhood Learning;
    • Muhiadin Omar, Bilal Community and Family Centre; 
    • Rhonda Shaw, director, learning and outcomes branch, Education and Early Childhood Learning;
    • Eve Sotiriadou, executive director, Canadian Muslim Women’s Institute;
    • Youcef Sufi, Manitoba Islamic Association; and
    • Ayesha Sultan, president, University of Manitoba Muslim Students Association.

    The premier noted this work will build upon the successful development of the Manitoba Islamic Association’s Embracing Diversity in Manitoba Education K-12 Toolkit, which was developed to respond to Islamophobia in school communities. 

    – 30 –

    MIL OSI Canada News –

  • MIL-OSI USA: Labrador Letter – The Fight for Idaho’s Sovereignty Over Federal Lands

    Source: US State of Idaho

    Dear Friends,
    Last week, I filed a brief in support of our neighbor Utah in their lawsuit against the federal government regarding the widespread federal ownership of “unappropriated” land—that is, land owned by the federal government but not used for any federal purpose—across their state and throughout most of the West.  Utah’s suit asks the United States Supreme Court to release much of this land back to the ownership and management of the states.
    As many of you know, I spent 8 years in Washington, D.C. representing Idaho’s First Congressional District.  You can’t throw a rock in that town without hitting federal property of some sort  like the Capitol, the White House, the National Mall, military bases, monuments, parks, courts, museums, galleries, statues, and of course, the metastasizing federal bureaucracy with administrative offices on every corner.  Yet, with all that, the federal government owns only 25% of Washington, D.C.  Yes, you read that right.  The federal government owns only 25% of our nation’s capitol city and yet owns over 60% of our state.
    Idaho is over 83,000 square miles, and the federal government owns 61% of it.  That’s land the State of Idaho can’t use.   Instead, the federal government has the final say over what is allowed on this land. For example, the federal government has exclusive say over whether prescribed burns and other necessary maintenance will—or, in many cases, will not—take place in federally owned forests. Or if Idaho wants to cross federal lands with new roads, power lines, pipelines, or other items and activities essential for commerce and economic growth, it must obtain federal permission.
    This arrangement flips the division of power between the state and national governments that our Founders envisioned. The federal government is supposed to use its limited enumerated powers to address national issues, as it does by making treaties, regulating interstate commerce, or declaring war. States can then use their general authority to address local concerns, like land management. But on unappropriated federal lands—nearly a third of the federally owned land in Idaho—the federal government is involved in local issues without pursuing any constitutionally authorized aim. There are no courthouses or military installations on these lands, for example. Instead, the federal government simply acts as a self-interested landowner leasing out the land for timber, mining, and grazing—but without being subject to state law or state management practices.
    The problem of unappropriated federal land disproportionately affects western states, and places them on unequal footing with other states in which the federal government owns almost no land. Idaho, Utah, and other western states should have just as much say over how land within their borders is used and maintained as Iowa or Connecticut. But time after time, the sovereignty of western states is diminished by distant federal regulators overriding our will.
    A perfect example is the Lava Ridge Wind Project that the federal government is pulling out all the stops to ram through despite widespread opposition within Idaho. Because the federal government owns the unappropriated land on which the massive wind turbines for the project will be built, it doesn’t matter whether Idaho wants the project or not. Federal agencies can put their own priorities first—they can pursue the Biden-Harris “green agenda,” build wind turbines in Idaho that will send power to California and pocket the land-use fees for themselves.
    And that raises another concerning aspect of federal ownership of unappropriated lands in Idaho—it siphons what is likely tens of millions of dollars out of the state. If Idaho owned the land, it could conduct the same sort of activities that the federal government does—like leasing for timber, mining, and grazing—and reinvest the revenue within the state. Instead, Idaho’s land is used to generate money for the United States Treasury, where it can be used for federal projects in any part of the country.
    Congress knows this is unfair to western states and attempts to compensate them through a program called Payment in Lieu of Taxes (PILT). But western states receive pennies on the dollar compared to what they would receive if they managed the land themselves. Moreover, the whole arrangement just reinforces federal dominance over western states—as sovereigns, they should not be forced to come hat-in-hand to Congress to ask for money that the federal government has no constitutional authority to have in the first place.
    That’s why the Utah suit is so critical. It seeks to restore the proper balance of power between the western states and the federal government and place the western states on the same level as their eastern counterparts. This is yet another example in which Idaho has been oppressed by the federal government’s overreach.
    The sovereignty of states to manage their own lands was such an important topic that it was even brought up in the Constitutional Convention in 1787.  It was insisted, ironically by a Massachusetts delegate, that state legislatures should first consent to the federal purchase of land within their borders to keep the federal government from buying up all the territory and pressuring any state by strangling their commerce and ability to grow.  The idea of a powerful, unaccountable central government wasn’t particularly trusted some 200 years ago and not much has happened since to contradict the sentiment.
    It seems that the federal government consistently attempts to undermine the voice and opinions of the people of Idaho and regulate us into perpetual social and economic servitude.   I’ll continue to fight every day for our state sovereignty and our ability to manage our own land, resources, and affairs here in Idaho.

    Best regards,

    Not yet subscribed to the Labrador Letter?  Click HERE to get our weekly newsletter and updates.  Miss an issue?  Labrador Letters are archived on the Attorney General website.

    MIL OSI USA 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 USA: Cassidy, Tillis, Colleagues Introduce Legislation to Replenish the SBA Disaster Loan Program Following Hurricanes Francine, Helene, Milton

    US Senate News:

    Source: United States Senator for Louisiana Bill Cassidy
    WASHINGTON – U.S. Senators Bill Cassidy, M.D. (R-LA), Thom Tillis (R-NC), Ted Budd (R-NC), Tim Scott (R-SC), and Rick Scott (R-FL) announced plans to introduce the Restoring an Economic Lifeline with Immediate Emergency Funding (Relief) Act that would replenish the U.S. Small Business Administration (SBA) Disaster Loan Program. On October 15th, the SBA announced the Disaster Loan Fund had run out of money. The senators plan to seek passage of the legislation when Congress returns to session.
    “Hurricanes Francine, Helene, and Milton hit us hard, but Louisianans and Americans are resilient,” said Dr. Cassidy. “This funding is essential to help small businesses recover from these storms and support our local economies.”
    “The SBA Disaster Loan Program running out of funds risks delays in processing the loans of those affected by Helene and Milton and their ability to get their lives back on track,” said Senator Tillis. “That is why I am leading legislation to replenish this fund when Congress returns to Washington, and I look forward to working across the aisle to pass a long-term disaster aid package that will provide additional resources to help make the victims of these hurricanes whole again. ”
    “The citizens of Western North Carolina are some of the toughest and most resilient people in this country,” said Senator Budd. “As they recover and rebuild their communities, they must be able to access disaster loans from SBA. This recovery will take many years, and I look forward to working with my colleagues to cut through the delays and provide WNC with the resources they need as quickly as possible.”
    “Hurricane Helene brought a level of devastation to South Carolina we haven’t seen since Hugo. With a natural disaster of this magnitude, Congress should take the opportunity to show leadership and help ease the pain of those who have lost everything,” said Senator Tim Scott. “Communities back home and in surrounding states have come together to recover, but it will take every possible effort to get us back to where we were.”
    “We cannot allow frontline federal agencies, like the SBA, to run out of disaster relief funds. This is especially important in the wake of Hurricanes Helene and Milton which devastated Florida, North Carolina and communities across the Southeast U.S,” said Senator Rick Scott. “I continue to call on Leader Schumer to immediately reconvene the Senate so we can fund disaster relief functions at FEMA, the SBA, USDA and other agencies to get folks what they need and deserve. I won’t stop fighting to get this done and am proud to join my colleagues to introduce a bill that funds SBA disaster loans and makes sure the federal government is a reliable partner as families continue their recovery.”
    The Relief Act would appropriate $550 million to fund the SBA Disaster Loan Program Account, which would provide $2.475B in lending capacity projected to last until the end of 2024.

    MIL OSI USA News –

  • MIL-OSI USA: Gillibrand, Schumer Announce Port Authority Of NY/NJ To Receive Over $347 Million From Program Gillibrand Helped Create, Including $344 Million To Deploy Zero-Emission Equipment And Upgrade Green Energy Infrastructure

    US Senate News:

    Source: United States Senator for New York Kirsten Gillibrand
    Today, U.S. Senator Kirsten Gillibrand and Senate Majority Leader Chuck Schumer announced that the U.S. Environmental Protection Agency (EPA) has selected the Port Authority of New York and New Jersey (PANYNJ) to receive an anticipated $344,138,135 through EPA’s Clean Ports Program for its proposed project, Catalyzing Change: Zero-Emissions NY-NJ Port Projects for a Greener Future. This project will support the installation of zero-emission equipment and promote good-paying and union jobs at the Port of New York and New Jersey. The grant is funded by the Inflation Reduction Act, the most substantial climate change and clean energy legislation in history. Senator Gillibrand was an original cosponsor and champion of the standalone legislation (the Climate Smart Ports Act) to create the Clean Ports Program, and she helped secure its enactment as part of the Inflation Reduction Act.
    According to the EPA, PANYNJ’s proposed project “includes the deployment of electric cargo handling equipment and drayage trucks with supporting charging infrastructure, including through a ZE Equipment for Ports (ZEEP) Voucher Incentive Program and Green Drayage Accelerator (GDA) program. PANYNJ commits to reducing the number of polluting vehicles at the port by scrapping a portion of the existing fleet. The project also includes the installation of vessel shore power infrastructure. As part of this project, PANYNJ will implement a comprehensive community engagement plan and train workers to operate and maintain new equipment and infrastructure.”
    In addition to the over $344 million grant for the zero-emission technology deployment project, EPA selected PANYNJ to receive $3,000,000 to support a proposed climate and air quality project, which is also through EPA’s Clean Ports Program.  
    “I fought hard to secure $3 billion via the Inflation Reduction Act for the EPA to fund a new program for zero-emission port equipment and to modernize infrastructure as well as climate and air quality planning at ports across the country,” said Senator Schumer. “I’m proud to announce more than $344 million—the second largest award in the country—for the Port Authority of New York and New Jersey to deploy zero-emission equipment, install charging equipment, and train workers for new green jobs. This substantial federal investment will help transform Port Liberty NY on Staten Island by replacing harmful diesel-powered equipment with zero-emission electric infrastructure.”
    “This over $347 million investment in the Port Authority of New York and New Jersey will lay the foundation for a stronger, more sustainable future,” said Senator Gillibrand. “This funding will promote the use of zero-emission equipment and clean power, as well as train workers for the green energy jobs of the future. I am proud to have helped secure the creation of the transformative Clean Ports Program in the Inflation Reduction Act and am thrilled about today’s historic investment. Not only are we improving air quality and combating climate change, but we’re creating good-paying jobs and putting New York and the United States in position to lead in global clean energy.”
    The selection of the PANYNJ projects was announced as part of the Biden-Harris administration’s Investing in America agenda, which today announced nearly $3 billion of investments in Clean Ports.

    MIL OSI USA News –

  • MIL-OSI USA: DeLauro Statement on Israel Banning UNRWA

    Source: United States House of Representatives – Congresswoman Rosa DeLauro (CT-03)

    Today, Congresswoman Rosa DeLauro (CT-03) released a statement in response to Israel’s parliament passing legislation to ban the United Nation’s Relief and Works Agency for Palestine Refugees in the Near East (UNRWA):

    “The United Nations Relief and Works Agency (UNRWA) is indispensable in addressing Gaza’s humanitarian crisis, as well as maintaining stability in the West Bank. Israel’s decision to enact legislation to halt UNRWA operations and cease all cooperation is dangerous, short-sighted, and would leave innocent Palestinians even more vulnerable to the devastating impacts of this war. At a time when we are already failing to meet the urgent needs of Gazans, this action further undermines UNRWA, fosters distrust in our international institutions, and fuels animosity toward Israel from its neighbors. This crisis is costing far too many innocent lives, including at least 60 people – mostly women and children – killed in a single strike on Tuesday in northern Gaza. The toll on civilian lives is tragic and underscores the need for uninterrupted humanitarian support.

    “As nearly 2 million Gazans continue to face starvation, this action would intensify an already dire crisis. It further threatens the health of Gazans, interrupting vital healthcare efforts, such as the World Health Organization’s polio vaccination campaign, which depends on UNRWA infrastructure and support and Israeli cooperation. Further destabilized Palestinian communities and friction with the United Nations jeopardizes regional security and isolates Israel globally.

    “UNRWA must be able to continue its lifesaving work. The agency has expressed commitment to working with Israel to ensure that its operations are not used by Hamas.  Our focus should be placed on the proposed reforms laid out in the Colonna Report to ensure the organization’s neutrality in a difficult working environment, not scapegoating a critical humanitarian actor.

    “Achieving peace and stability in the region requires an immediate ceasefire, a dramatic increase in humanitarian aid reaching civilians in need, and the release of the hostages held by Hamas.”

    MIL OSI USA News –

  • MIL-OSI USA: Bureau of Ocean Energy Management and DOD Sign Agreement to Bolster Interagency Collaboration on Offshore Wind Development

    Source: United States Department of Defense

    Memorandum of Understanding Strengthens Ongoing Federal Collaboration and Advances the Biden-Harris Administration’s Clean Energy Objectives

    As part of the Biden-Harris administration’s commitment to expand offshore wind opportunities and advance an all-of-government approach to address the climate crisis, the Bureau of Ocean Energy Management (BOEM) today announced a Memorandum of Understanding (MOU) with the Department of Defense (DOD) to support the coordinated development of wind energy generation on the Nation’s Outer Continental Shelf (OCS). Today’s MOU will help further institutionalize the deep collaboration between BOEM and DOD that is ensuring that offshore wind lease areas and project plans strengthen the nation’s energy security in ways that are compatible with military operations.

    Elizabeth Klein, BOEM director and Brendan Owens, assistant secretary of defense for energy, installations, and environment signed the MOU during a ceremony at the Offshore WINDPOWER Conference in Atlantic City, NJ.

    “BOEM is dedicated to establishing a strong offshore wind industry that supports communities and co-exists with other ocean uses,” said BOEM Director Elizabeth Klein. “Our collaboration with the Department of Defense is crucial to ensure offshore wind development is carried out efficiently and sustainably, while minimizing impacts to military operations.”

    “DOD is committed to working across the U.S. government to accelerate the ongoing clean energy transition, which is critical to ensuring access to in order to fulfill our mission,” said Honorable Brendan Owens. “We will continue to work with BOEM and our other interagency partners, to find solutions that enable offshore wind development while ensuring long-term compatibility with testing, training, and operations critical to our military readiness.”

    DOD and BOEM share responsibility for ensuring that offshore wind project plans consider military preparedness requirements. The new MOU will define and clarify the roles and duties of both organizations during leasing and project review. This collaborative approach also includes participating in Intergovernmental Renewable Energy Task Forces.

    The MOU calls for DOD and BOEM to:

    • Find mutual solutions that support renewable energy in a manner compatible with essential military operations.
    • Collaborate as early as possible in the offshore wind leasing process.
    • Regularly communicate and exchange information at the staff and leadership levels.
    • Determine what areas should be deferred from leasing to enable the performance of DOD activities on the OCS.

    The MOU signed today expands on and complements the July 1983 “Memorandum of Agreement Between the Department of Defense and the Department of the Interior on Mutual Concerns on the Outer Continental Shelf” that continues to provide a framework for coordination between the agencies regarding energy development on the OCS.

    DOD and BOEM support the Biden-Harris administration’s goals to address the climate crisis and create good-paying jobs by deploying 30 gigawatts of offshore wind energy capacity by 2030 and 15 gigawatts of floating offshore wind energy capacity by 2035.

    To learn more about the offshore wind leasing process, visit BOEM’s website.

    To learn more about DoD energy resilience, visit DoD Energy, Installations, and Environment website.

    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 USA: Six Charged in Scheme to Defraud the Federal Government

    Source: US State of Vermont

    Six defendants have been charged for their roles in schemes to rig bids, defraud the government and pay bribes and kickbacks in connection with the sale of IT products and services to federal government purchasers, which resulted in overcharges of millions of dollars to the U.S. government, including the Department of Defense (DoD). 

    On Oct. 9 and Oct. 16, a federal grand jury in Baltimore returned indictments against two defendants. Four other defendants were also charged. These are the first charges in the Justice Department’s ongoing investigation into IT manufacturers, distributors and resellers who sell products and services to government purchasers, including to the intelligence community. 

    “Antitrust crimes can undermine competition for products and services that are vital to our national security,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “When fraudsters siphon taxpayer funds, the Antitrust Division and its Procurement Collusion Strike Force (PCSF) partners across the government will hold accountable those who collude to subvert competition, line their pockets with federal procurement dollars and compromise the integrity of our intelligence community programs.”

    “This office and our partners will use all available resources to hold accountable those who would undermine and distort the government’s procurement of goods and services, especially those related to our cybersecurity infrastructure,” said U.S. Attorney Erek L. Barron for the District of Maryland. 

    “This investigation demonstrates the vital need to protect the DoD procurement process, particularly within the Intelligence Community,” said Special Agent in Charge Christopher Dillard of the DoD Office of Inspector General, Defense Criminal Investigative Service (DCIS), Mid-Atlantic Field Office. “The Defense Criminal Investigative Service is committed to identifying fraudsters who abuse public trust and enrich themselves through criminal schemes.”

    “There is no place for fraudsters and crooks scheming to manipulate the government bidding process for personal gain,” said Special Agent in Charge William J. DelBagno of the FBI Baltimore Field Office. “The FBI remains steadfastly committed to identifying, investigating and bringing to justice those conspiring to enrich themselves by cheating taxpayers.”

    “Investigating complex fraud schemes is a top priority of ours,” said National Security Agency Acting Inspector General Kevin Gerrity. “I commend our team, our law enforcement partners and the Justice Department for their work protecting the integrity of federal contracting.”

    “Each part of the government must do its part to detect and prosecute instances of waste, fraud and abuse, and CIA’s Office of Inspector General was pleased to join its law enforcement partners in investigating this egregious case,” said CIA Inspector General Robin C. Ashton.

    United States v. Victor Marquez

    Victor M. Marquez, a Maryland resident and owner of two IT companies with significant government contracts, was charged in a four-count indictment with wire fraud conspiracy, wire fraud and major fraud against the United States for rigging bids and inflating the amount of money obtained from valuable IT contracts. 

    Antwann C.K. Rawls, an employee of one of Marquez’s companies, and Scott A. Reefe, an IT sales executive, have been charged for their respective roles in the conspiracy.

    As alleged in the indictment, Marquez, Rawls, Reefe and their co-conspirators used their positions of trust to learn sensitive, confidential procurement information, including procurement budgets for large U.S. government IT contracts. The co-conspirators used that inside information to craft bids at artificially determined, non-competitive and non-independent prices, ensuring Marquez’s company would win the procurement. 

    According to court documents, the co-conspirators shared their bids in advance of submitting them to the government, with one co-conspirator emailing that he would submit a “high price third bid.” Marquez and his co-conspirators submitted their collusive bids despite knowing the government sought independent, competitive bids for the valuable contracts, and despite Marquez’s certification of independent bidding.

    If convicted, Marquez faces maximum penalties of 20 years in prison for each conspiracy and wire fraud count and 10 years in prison for the major fraud charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    United States v. Breal L. Madison Jr.

    Breal L. Madison Jr., a Maryland resident, was charged in a 13-count indictment with conspiracy, bribery of a public official, mail fraud and money laundering for orchestrating a years-long scheme to defraud his employer and the United States out of over $7 million in connection with the sale of IT products to various government agencies.

    Brandon Scott Glisson, an IT contractor providing IT services to the U.S. government, and Glisson’s supervisor, Lawrence A. Eady, a former senior government employee, have also been charged for their respective roles in the scheme.

    According to court documents, through multiple misrepresentations, Madison and his co-conspirators conspired to steal money from Madison’s employer and government agencies, illegally siphoning over $9 million in stolen proceeds to Madison’s shell company, Trident Technology Solutions, and another shell company. They used the money to purchase luxury items and to pay approximately $630,000 in bribes to Eady in exchange for Eady’s ensuring the purchase of additional products sold by Madison. 

    Madison used his ill-gotten gains to buy a Vanquish VQ58 yacht, 2020 Lamborghini Huracan and multiple other vehicles, all of which the United States seeks to forfeit in the indictment. 

    If convicted, Madison faces maximum penalties of five years in prison for the conspiracy count, 15 years in prison for each bribery count, 20 years in prison for each mail fraud count and 10 years for each money laundering count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    The DCIS, the FBI Baltimore Field Office, CIA Office of Inspector General and NSA Office of Inspector General investigated the case.

    Acting Assistant Chief Michael Sawers and Trial Attorneys Zachary Trotter and Elizabeth French of the Antitrust Division’s Washington Criminal Section and Assistant U.S. Attorneys Aaron S.J. Zelinsky, Sean M. Delaney and Darren Gardner for the District of Maryland are prosecuting the case. 

    Anyone with information about this investigation or other procurement fraud schemes should notify the PCSF at www.justice.gov/atr/webform/pcsf-citizen-complaint. The Justice Department created the PCSF in November 2019. It is a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant and program funding at all levels of government — federal, state and local. For more information, visit www.justice.gov/procurement-collusion-strike-force.

    An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. 

    View the Rawls information.

    View the Eady information.

    View Reefe information.

    View the Glisson information.

    View the Madison indictment.

    View the Marquez indictment.

    MIL OSI USA 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 USA: Governor Polis Highlights Colorado’s Leading Work to Save Coloradans Money on Energy Bills, Support Out of School Time that Helps Colorado Students Thrive, and Promote Civic Engagement at Front Range Community College

    Source: US State of Colorado

    ARVADA – Today, Governor Polis highlighted Colorado’s leadership in clean energy, investments in education, and promotion of healthy civic engagement for all Coloradans.

    The Governor took part in the Colorado Afterschool Partnership Fall Conference, to discuss Colorado’s work to support  out-of-school educators for their work to help Colorado students succeed . In 2023, Governor Polis signed a bipartisan law to make a major state investment in afterschool education opportunities to get every student on track to math proficiency. These investments provide support for math instruction and improvement for students in pre-kindergarten through twelfth grade.

    “Investing in our students’ success is an investment in our state’s future. I am grateful to all the educators across the state who work tirelessly to provide the support and instruction for Colorado students to succeed well beyond the classroom. No student should feel left behind, and afterschool programs are critical to ensure students thrive,” said Governor Polis.

    The Governor then participated virtually in the Interstate Oil and Gas Compact Commission Conference focused on solutions for low-cost energy. Colorado’s energy sector is a model for the nation, creating jobs and strengthening the economy.

    “As Chair of the National Governors Association I work with Governors from across the country and aisle on the issues that matter most to the people we serve, and today I was glad to join my fellow Governors Stitt and Governor Dunleavy to discuss our work on energy, as well as Colorado’s national leadership on technologies that lower energy costs, protect our air quality, and ensure clean drinking water for all Coloradans,” said Governor Polis.

    Governor Polis also spoke at the Energy M&A and Financing Forum to promote Colorado’s nation leading work in innovative clean energy solutions, ranking 4th in cleantech employment, 2nd in the nation for electric vehicle sales, and 8th nationally for wind, solar, and storage.

    “In Colorado, we are taking a market-driven, sector-by-sector approach to improve air quality and reduce carbon emissions. By doing so, we are delivering real results while creating good-paying jobs and reducing costs for Colorado consumers,” said Governor Polis.

    Later today, the Governor will tour Northglenn City Hall, the first net-zero emissions municipal building in Colorado. New clean-energy buildings like this one are helping the state reach the goal of reducing greenhouse gas emissions 50% by 2030. The State is proud to support the installation of nine public charging ports through the Charge Ahead Colorado grant program and eight charging ports for fleet vehicles through the Fleet-ZERO grant program at the Northglenn City Hall.

    “Colorado is leading the way in bringing more jobs, cleaner energy, and saving Coloradans money on energy bills. The Northglenn City Hall, the first net-zero municipal building in Colorado, is a reflection of how far Colorado has come in creating clean energy infrastructure that will help power a bright future for our state,” said Governor Polis.

    The Governor will take part in a discussion at Front Range Community College about the importance of civic engagement in Colorado at the News & Democracy Discussion Panel. The event invites leaders from across Colorado to partake in a panel discussion on the importance of free and fair elections.

    “Each of us has a role to play in building and sustaining a strong, healthy democracy. That’s what civic engagement is all about and thank you to Front Page for being an important part of the media ecosystem here in Colorado, and continuing to promote a Colorado for all,” said Governor Polis.

    ###
     

    MIL OSI USA News –

  • MIL-OSI: Aimfinity Investment Corp. I Announces Extension of the Deadline for an Initial Business Combination to October 28, 2024

    Source: GlobeNewswire (MIL-OSI)

    Wilmington, Delaware, Oct. 29, 2024 (GLOBE NEWSWIRE) —  Aimfinity Investment Corp. I (the “Company” or “AIMA”) (Nasdaq: AIMAU), a special purpose acquisition company incorporated as a Cayman Islands exempted company, today announced that, in order to extend the date by which the Company mush complete its initial business combination from October 28, 2024 to November 28, 2024, on October 28, 2024, I-Fa Chang, manager of the sponsor of the Company, has deposited into its trust account (the “Trust Account”) an aggregate of $60,000 (the “Monthly Extension Payment”).

    Pursuant to the Company’s third amended & restated memorandum and articles of association (“Current Charter”), effectively April 23, 2024, the Company may extend on a monthly basis from April 28, 2024 until January 28, 2025 or such an earlier date as may be determined by its board to complete a business combination by depositing the Monthly Extension Payment for each month into the Trust Account. This is the seventh of nine monthly extensions sought under the Current Charter of the Company.  

    About Aimfinity Investment Corp. I

    Aimfinity Investment Corp. I is a blank check company incorporated as a Cayman Islands exempted company for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses or entities. The Company has not selected any business combination target and has not, nor has anyone on its behalf, initiated any substantive discussions, directly or indirectly, with any business combination target with respect to an initial business combination with it. While the Company will not be limited to a particular industry or geographic region in its identification and acquisition of a target company, it will not complete its initial business combination with a target that is headquartered in China (including Hong Kong and Macau) or conducts a majority of its business in China (including Hong Kong and Macau). 

    Additional Information and Where to Find It

    As previously disclosed, on October 13, 2023, the Company entered into that certain Agreement and Plan of Merger (as may be amended, supplemented or otherwise modified from time to time, the “Merger Agreement”), by and between the Company, Docter Inc., a Delaware corporation (the “Company”), Aimfinity Investment Merger Sub I, a Cayman Islands exempted company and wholly-owned subsidiary of Parent (“Purchaser”), and Aimfinity Investment Merger Sub II, Inc., a Delaware corporation and wholly-owned subsidiary of Purchaser (“Merger Sub”), pursuant to which the Company is proposing to enter into a business combination with Docter involving an reincorporation merger and an acquisition merger. This press release does not contain all the information that should be considered concerning the proposed business combination and is not intended to form the basis of any investment decision or any other decision in respect of the business combination. AIMA’s stockholders and other interested persons are advised to read, when available, the proxy statement/prospectus and the amendments thereto and other documents filed in connection with the proposed business combination, as these materials will contain important information about AIMA, Purchaser or Docter, and the proposed business combination. When available, the proxy statement/prospectus and other relevant materials for the proposed business combination will be mailed to stockholders of AIMA as of a record date to be established for voting on the proposed business combination. Such stockholders will also be able to obtain copies of the proxy statement/prospectus and other documents filed with the Securities and Exchange Commission (the “SEC”), without charge, once available, at the SEC’s website at www.sec.gov, or by directing a request to AIMA’s principal office at 221 W 9th St, PMB 235 Wilmington, Delaware 19801.

    Forward-Looking Statements

    This press release contains certain “forward-looking statements” within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, both as amended. Statements that are not historical facts, including statements about the pending transactions described herein, and the parties’ perspectives and expectations, are forward-looking statements. Such statements include, but are not limited to, statements regarding the proposed transaction, including the anticipated initial enterprise value and post-closing equity value, the benefits of the proposed transaction, integration plans, expected synergies and revenue opportunities, anticipated future financial and operating performance and results, including estimates for growth, the expected management and governance of the combined company, and the expected timing of the transactions. The words “expect,” “believe,” “estimate,” “intend,” “plan” and similar expressions indicate forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to various risks and uncertainties, assumptions (including assumptions about general economic, market, industry and operational factors), known or unknown, which could cause the actual results to vary materially from those indicated or anticipated.

    Such risks and uncertainties include, but are not limited to: (i) risks related to the expected timing and likelihood of completion of the pending business combination, including the risk that the transaction may not close due to one or more closing conditions to the transaction not being satisfied or waived, such as regulatory approvals not being obtained, on a timely basis or otherwise, or that a governmental entity prohibited, delayed or refused to grant approval for the consummation of the transaction or required certain conditions, limitations or restrictions in connection with such approvals; (ii) risks related to the ability of AIMA and Docter to successfully integrate the businesses; (iii) the occurrence of any event, change or other circumstances that could give rise to the termination of the applicable transaction agreements; (iv) the risk that there may be a material adverse change with respect to the financial position, performance, operations or prospects of AIMA or Docter; (v) risks related to disruption of management time from ongoing business operations due to the proposed transaction; (vi) the risk that any announcements relating to the proposed transaction could have adverse effects on the market price of AIMA’s securities; (vii) the risk that the proposed transaction and its announcement could have an adverse effect on the ability of Docter to retain customers and retain and hire key personnel and maintain relationships with their suppliers and customers and on their operating results and businesses generally; (viii): risks relating to the medical device industry, including but not limited to governmental regulatory and enforcement changes, market competitions, competitive product and pricing activity; and (ix) risks relating to the combined company’s ability to enhance its products and services, execute its business strategy, expand its customer base and maintain stable relationship with its business partners.

    A further list and description of risks and uncertainties can be found in the prospectus filed on April 26, 2022 relating to AIMA’s initial public offering, the annual report of AIMA on Form 10-K for the fiscal year ended on December 31, 2022, filed on April 17, 2023, and in the Registration Statement/proxy statement that will be filed with the SEC by AIMA and/or its affiliates in connection with the proposed transactions, and other documents that the parties may file or furnish with the SEC, which you are encouraged to read. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. Accordingly, you are cautioned not to place undue reliance on these forward-looking statements. Forward-looking statements relate only to the date they were made, and Aimfinity, Docter, and their subsidiaries undertake no obligation to update forward-looking statements to reflect events or circumstances after the date they were made except as required by law or applicable regulation.

    No Offer or Solicitation

    This press release is not a proxy statement or solicitation of a proxy, consent or authorization with respect to any securities or in respect of any potential transaction and does not constitute an offer to sell or a solicitation of an offer to buy any securities of AIMA, Purchaser or Docter, nor shall there be any sale of any such securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of the Securities Act.

    Participants in the Solicitation

    AIMA, Docter, and their respective directors, executive officers, other members of management, and employees, under SEC rules, may be deemed to be participants in the solicitation of proxies of AIMA’s shareholders in connection with the proposed transaction. Information regarding the persons who may, under SEC rules, be deemed participants in the solicitation of AIMA’s shareholders in connection with the proposed business combination will be set forth in the proxy statement/prospectus on Form F-4 to be filed with the SEC.

    Contact Information:

    Aimfinity Investment Corp. I
    I-Fa Chang
    Chief Executive Officer
    ceo@aimfinityspac.com
    (425) 365-2933
    221 W 9th St, PMB 235
    Wilmington, Delaware 19801

    The MIL Network –

  • MIL-OSI Economics: ACP Statement on DOD and BOEM Memorandum of Understanding on Offshore Wind Development

    Source: American Clean Power Association (ACP)

    Headline: ACP Statement on DOD and BOEM Memorandum of Understanding on Offshore Wind Development

    ATLANTIC CITY, NJ, October 29, 2024 – The American Clean Power Association (ACP) released the following statement from Anne Reynolds, ACP Vice President Offshore Wind after the Bureau of Ocean Energy Management (BOEM) and the Department of Defense (DOD) signed a Memorandum of Understanding (MOU) to support the coordinated development of offshore wind energy generation on the U.S. Outer Continental Shelf (OCS). The MOU was signed today at ACP’s Offshore WINDPOWER conference in Atlantic City:
    “Today’s MOU between BOEM and DOD fosters interagency collaboration that the offshore wind industry needs for efficient and smart permitting. This agreement ensures that renewable energy projects can be developed in harmony with military operations and U.S national security.”
    “The clear framework for communication and interagency collaboration enhances project planning and development. This strategic partnership will help pave the way for a sustainable future while creating good-paying jobs and strengthening U.S. energy independence. Together, BOEM and DOD are demonstrating a good government approach to growing U.S. energy independence.”

    MIL OSI Economics –

  • 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-Evening Report: Commonwealth takes bold step to protect freedom of expression

    Talamua Media

    The Commonwealth Heads of Government adopted the Commonwealth Principles on Freedom of Expression and the Role of the Media in Good Governance at their summit meeting in Apia, Samoa, last week.

    These Principles highlight the importance of freedom of expression and media freedom to democracy.  They state that Commonwealth governments “should consider repealing or amending laws which unduly restrict the right to freedom of expression”.

    The Commonwealth Human Rights Initiative and the Commonwealth Journalists Association called on states to take practical and effective steps to end arbitrary and excessive restrictions on free expression. The Commonwealth as a whole must audit progress and engage with civil society to ensure that these Principles are implemented in reality.

    Freedom of expression is not just a right in itself — it is the foundation that allows us to exercise and defend all other human rights, and is safeguarded under international law.

    However, as we know all too well, this right is under threat.

    According to UNESCO, in Commonwealth countries alone, 178 journalists were killed between 2006 and 2020. Furthermore, the impunity rate for the killings of journalists during that same time is 96 percent — which is notably higher than the global impunity rate of 87 percent.

    Reporters Without Borders (RSF) has documented 547 journalists imprisoned globally as of the end of 2023, with legal harassment often used as a tool to stifle dissent and investigative reporting.

    Restrictive, colonial-era laws
    Many Commonwealth countries still maintain restrictive, colonial-era laws that curtail free expression, suppress diverse voices, and inhibit the transparency that is essential for democracy.

    In the Commonwealth:

    • 41 countries continue to criminalise defamation; 48 countries still retain laws related to sedition; and
    • 37 still have blasphemy or blasphemy-like laws.
    Who Controls The Narrative? cover. Image: APR screenshot

    These details are set out in a soon to be released report by the Commonwealth Human Rights Initiative (CHRI) and the Commonwealth Journalists Association (CJA), with other Commonwealth partners, entitled Who Controls the Narrative? Legal Restrictions on Freedom of Expression in the Commonwealth.

    “These laws, often enforced through criminal sanctions, have a chilling effect on activists, journalists, iand others who fear retaliation for speaking truth to power”, said William Horsley of the Commonwealth Journalists Association.

    “This has led to an alarming rise in self-censorship and a decline in the independent and dissenting voices that are vital for holding governments accountable.”

    Civil society response
    The Principles were first put forward by a group of civil society organisations in response to  a general deterioration in legal protections and the working environment for journalists.

    The CJA convened other civil society organisations, including the CHRI, Commonwealth Lawyers Association and the Institute of Commonwealth Studies, before Commonwealth member states reviewed and adopted the Principles in the form which was adopted by heads of government at the 2024 CHOGM.

    States are “urged to take concrete and meaningful steps to implement them within their domestic frameworks, as set out in the CHOGM Samoa Communiqué“.

    The joint report Who Controls the Narrative? Legal Restrictions on Freedom of Expression in the Commonwealth reveals the increasing use of criminal law provisions, including those related to defamation, sedition, blasphemy, and national security, to restrict freedom of expression and media freedom within the Commonwealth.

    The report is the product of extensive collaboration between Commonwealth partners, legal experts, academics, human rights advocates, and media professionals, and provides a comprehensive analysis of the legal frameworks governing freedom of expression and outlines clear pathways for reform.

    In addition to analysing legal restrictions on free speech in Commonwealth states, the report puts forward actionable recommendations for reform.

    These include regional and national-level proposals, as well as broader Commonwealth-wide recommendations aimed at strengthening legal frameworks, promoting judicial independence, encouraging media pluralism, and enhancing international accountability mechanisms.

    Reforms essential
    These reforms are essential for establishing an environment where free expression can thrive, allowing individuals to speak without fear of reprisal.

    “While many member states share a colonial legal legacy that includes repressive laws still in effect today, they also share a commitment to democratic governance and the rule of law as set out in the Commonwealth Charter,” said Sneh Aurora, director of the Commonwealth Human Rights Initiative.

    “The Commonwealth has the potential to lead by example in promoting freedom of expression through legal reform, ensuring that criminal laws are not misused to silence dissent.

    “The Principles provide an important opportunity for Commonwealth governments to bring their national laws in line with international human rights laws.”

    Republished with permission from Talamua Online.

    MIL OSI Analysis – EveningReport.nz –

  • MIL-OSI China: Xi encourages more China-Finland cooperation in emerging industries

    Source: People’s Republic of China – State Council News

    Chinese President Xi Jinping holds a welcoming ceremony for Finnish President Alexander Stubb, who is on a state visit to China, in the Northern Hall of the Great Hall of the People prior to their talks in Beijing, capital of China, Oct. 29, 2024. Xi held talks with Stubb in Beijing on Tuesday. [Photo/Xinhua]

    BEIJING, Oct. 29 — China welcomes Finland to actively participate in the Chinese modernization process and expand cooperation in emerging industries, Chinese President Xi Jinping said on Tuesday.

    Xi made the remarks as he held talks with visiting Finnish President Alexander Stubb in Beijing.

    He called on both sides to expand cooperation in green transformation, information technology, digital economy, artificial intelligence and new energy, and build a new pattern of mutually beneficial cooperation in the new era.

    Xi noted that Finland was one of the first Western countries to establish diplomatic ties with the People’s Republic of China and the first Western country to sign an intergovernmental trade agreement with China.

    “As the world is undergoing accelerated changes unseen in a century and the risks and challenges facing humanity are increasing, the future-oriented new-type cooperative partnership between China and Finland holds exceptional value and should be cherished and advanced,” Xi said.

    China-Finland practical cooperation got off to an early start, has yielded fruitful results and demonstrated great potential, he said.

    China is willing to further expand people-to-people exchanges with Finland, and has decided to apply the unilateral visa-free policy to Finland, he added, noting that China welcomes more Finnish friends to visit for business, tourism and study.

    Xi said both China and Finland love peace and advocate multilateralism and free trade, adding that China is willing to strengthen communication and cooperation with Finland on climate change, biodiversity conservation, global sustainable development, artificial intelligence governance and other issues.

    Noting that next year marks the 50th anniversary of the establishment of diplomatic ties between China and the European Union (EU), Xi called on Finland to continue to play an active role in promoting the sound and stable development of China-EU ties.

    Stubb said he is very pleased to visit China shortly after taking office and meet with Xi again after 14 years.

    He noted that the global landscape has changed profoundly since their last meeting and China has made remarkable accomplishments.

    Finland abides by the one-China policy and is willing to have a good celebration with China of their 75th anniversary of diplomatic relations next year, Stubb said.

    He added that Finland will work with China to deepen practical cooperation in areas like economy and trade, green energy, and sustainable development.

    Finland appreciates the major initiatives and concepts proposed by China to address global challenges, and will advance multilateral exchanges and coordination with China, Stubb said.

    The economies of the EU and China are closely interconnected, and “decoupling” or a “new Cold War” is not in the interest of any party, Stubb said, noting that Finland is willing to play an active role in promoting the sound development of EU-China relations.

    The two leaders had an in-depth exchange of views on the Ukraine crisis and the conflict between Palestine and Israel. Xi expressed China’s readiness to work with all concerned parties, including Finland, to continue playing a positive role in promoting a peaceful settlement of the crises.

    After the talks, the two heads of state witnessed the signing of multiple documents on bilateral cooperation in such areas as education, water resources, environmental protection, circular economy and agricultural and food products.

    The two sides issued the Joint Action Plan between China and Finland on Promoting the Future-oriented New-type Cooperative Partnership 2025-2029.

    Chinese President Xi Jinping holds a welcoming ceremony for Finnish President Alexander Stubb, who is on a state visit to China, in the Northern Hall of the Great Hall of the People prior to their talks in Beijing, capital of China, Oct. 29, 2024. Xi held talks with Stubb in Beijing on Tuesday. [Photo/Xinhua]
    Chinese President Xi Jinping holds a welcoming ceremony for Finnish President Alexander Stubb, who is on a state visit to China, in the Northern Hall of the Great Hall of the People prior to their talks in Beijing, capital of China, Oct. 29, 2024. Xi held talks with Stubb in Beijing on Tuesday. [Photo/Xinhua]
    Chinese President Xi Jinping holds a welcoming ceremony for Finnish President Alexander Stubb, who is on a state visit to China, in the Northern Hall of the Great Hall of the People prior to their talks in Beijing, capital of China, Oct. 29, 2024. Xi held talks with Stubb in Beijing on Tuesday. [Photo/Xinhua]
    Chinese President Xi Jinping holds a welcoming ceremony for Finnish President Alexander Stubb, who is on a state visit to China, in the Northern Hall of the Great Hall of the People prior to their talks in Beijing, capital of China, Oct. 29, 2024. Xi held talks with Stubb in Beijing on Tuesday. [Photo/Xinhua]
    Chinese President Xi Jinping and his wife Peng Liyuan pose for a group photo with Finnish President Alexander Stubb and his wife Suzanne Innes-Stubb prior to the talks between Xi and Stubb at the Great Hall of the People in Beijing, capital of China, Oct. 29, 2024. Xi held talks with Stubb, who is on a state visit to China, in Beijing on Tuesday. [Photo/Xinhua]
    Chinese President Xi Jinping shakes hands with Finnish President Alexander Stubb, who is on a state visit to China, at the Great Hall of the People in Beijing, capital of China, Oct. 29, 2024. Xi held talks with Stubb in Beijing on Tuesday. After the talks, the two heads of state witnessed the signing of multiple documents on bilateral cooperation. [Photo/Xinhua]
    Chinese President Xi Jinping holds talks with Finnish President Alexander Stubb, who is on a state visit to China, at the Great Hall of the People in Beijing, capital of China, Oct. 29, 2024. [Photo/Xinhua]

    MIL OSI China News –

  • MIL-OSI China: Chinese premier meets Finnish president

    Source: People’s Republic of China – State Council News

    Chinese Premier Li Qiang meets with Finnish President Alexander Stubb at the Great Hall of the People in Beijing, capital of China, Oct. 29, 2024. [Photo/Xinhua]

    BEIJING, Oct. 29 — Chinese Premier Li Qiang met with Finnish President Alexander Stubb on Tuesday in Beijing.

    Li said that since China and Finland established the future-oriented new-type cooperative partnership, bilateral relations have maintained a sound momentum of development and mutually beneficial cooperation in various fields has been continuously promoted, benefiting the people of both countries.

    China is willing to work with Finland to implement the important consensus reached by the two heads of state, maintain close high-level exchanges, continue to carry forward the traditional friendship, consolidate and enhance political mutual trust, and push bilateral relations and cooperation to a new high, Li said.

    Economic globalization is facing headwinds at present but openness and cooperation remain the general trend, Li noted. China is willing to work with Finland to stick to opening up and cooperation, expand trade, strengthen cooperation in key areas such as circular economy, information and communication, smart energy and agricultural and food products, give full play to economic complementarity, and promote mutual benefit and win-win results at a higher level.

    China will continue to foster a world-class, market-oriented business environment governed by a sound legal framework and welcomes Finnish companies to deepen their presence in the Chinese market, Li said.

    It is hoped that Finland will provide a fair, transparent and non-discriminatory business environment for Chinese enterprises and play a positive role in promoting the healthy development of China-Europe economic and trade relations, he added.

    Li said that China is ready to work with Finland to further facilitate personnel exchanges and expand exchanges and cooperation in the fields of culture, education and sports to consolidate popular support for the friendly cooperation between the two countries.

    Stubb said Finland attaches importance to developing relations with China and is a reliable cooperative partner of China.

    Finland looks forward to strengthening exchanges with China at all levels, deepening mutually beneficial cooperation on economy, trade, agriculture, green energy and sustainable development, and strengthening education and people-to-people exchanges to open a new chapter in bilateral relations, he added.

    Finland appreciates China’s important role in international affairs and is willing to strengthen communication and coordination with China in fields like global security and tackling climate change, Stubb noted.

    Chinese Premier Li Qiang meets with Finnish President Alexander Stubb at the Great Hall of the People in Beijing, capital of China, Oct. 29, 2024. [Photo/Xinhua]

    MIL OSI China 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 Economics: Cali joins the Biodivercities Network at COP16

    Source: CAF Development Bank of Latin America

    The executive president of CAF, Development Bank of Latin America and the Caribbean, Sergio Díaz-Granados, and the Mayor of Cali, Alejandro Eder, signed the city’s adhesion to the Biodiverciudades Network, which promotes biodiversity conservation as a central part of planning, land use, and socioeconomic development of cities.

    “For me, the bank’s support was very important because of the expertise and peace of mind that comes from having a regional and world-class ally like CAF,” said Alejandro Eder.

    The mayor of Cali said that the best result of the COP16 in Cali is that it is generating a collective awareness towards biodiversity, and a reconnection of citizens with nature. He also mentioned some research and development projects, and ideas to integrate the Farallones to the city or promote ecotourism.

    “We are going to move from will to actions. You can count on CAF’s support,” said Sergio Diaz-Granados. “We want to accompany the region’s efforts to protect our biodiversity, be increasingly sustainable and face climate change with more guarantees,” he added.

    The Biodiverciudades Network, led by CAF, the Humbolt Institute and UN Habitat, aims to support the urban-territorial planning and management processes of Latin American and Caribbean governments that effectively integrate the conservation, restoration and sustainable use of biodiversity as a basis for their socioeconomic development and the improvement of people’s quality of life.

    MIL OSI Economics –

  • MIL-OSI United Kingdom: expert reaction to 2024 report of the Lancet Countdown on health and climate change,

    Source: United Kingdom – Executive Government & Departments

    Scientists comment on the Lancet Countdown on health and climate change report.

    Dr Josh Foster, Lecturer in Human Environmental Physiology, King’s College London, said:

    “The report highlights the growing number of extreme heat events worldwide, which are associated with severe health impacts. Air conditioning is unaffordable for most in the UK, making us highly vulnerable to increased risks of indoor overheating. The UK’s older population are at particularly high risk due to slow uptake of adaptation measures, such as building modifications, development of personal cooling systems, and up to date public health messaging. During the 2022 heat wave, over 4,000 deaths were reported in the UK’s older population, and temperature extremes have worsened exponentially over the last decade. The trends highlighted in the Lancet report are therefore alarming and will result in more frequent mass mortality events in older people as the devastating impacts of climate changed are realised. At King’s, the Centre for Ageing Resilience in a Changing Environment (CARICE) is pioneering research into improving the resilience of older people to extreme heat. We focus on the urgent need to develop solutions to combat indoor overheating, decreasing strain on our already overstretched healthcare systems.”

    Dr Nathan Cheetham, Senior Postdoctoral Data Scientist, King’s College London, said:

    “The UK Met Office has recorded official heatwaves in each of the past 3 years, with the extreme heatwaves like the UK faced in summer 2022 set to become more regular.

    “As the latest Lancet Countdown report highlights, these changes in climate pose particular health risks for older people, especially those living in poorer areas of cities where houses cope less well in heat.

    “And, similar to what we saw with the COVID-19 pandemic, it is key workers who tend to be most exposed and unable to shield as easily during heatwaves, such as those working in one of our many hospitals without air conditioning, or outdoor construction workers.

    “The report also emphasises that emergency responses and adaptations to deal with the health risks of climate change are currently generally lacking. So there’s a responsibility by governments to support adaptation of housing, as well as where and how we work when these extreme weather events happen.”

    ‘The 2024 report of the Lancet Countdown on health and climate change: facing record-breaking threats from delayed action’ by Marina Romanello et al. was published in The Lancet at 00:01 UK time on Wednesday 30th October. 

    DOI: https://doi.org/10.1016/S0140-6736(24)01822-1

    Declared interests:

    Dr Nathan Cheetham: “Receive a minority of funding in part by the King’s College London Centre for Ageing Resilience in a Changing Environment (CARICE). One of the focuses of the centre is how to improve resilience of older people in the face of climate change. Majority funded by National Institute for Health Research (NIHR), on a project trying to understand the long-term consequences of COVID-19. Previously worked for an NHS organisation. Nothing else to declare such as industry funding.”

    Dr Josh Foster: No interests to declare.

    MIL OSI United Kingdom –

  • 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 –

  • MIL-OSI China: Xi calls for continuously developing socialist culture with Chinese characteristics for new era

    Source: People’s Republic of China – State Council News

    Xi calls for continuously developing socialist culture with Chinese characteristics for new era

    BEIJING, Oct. 29 — On the afternoon of Oct. 28, the Political Bureau of the Communist Party of China (CPC) Central Committee held its 17th group study session. The topic was on developing a strong culture in China. General Secretary of the CPC Central Committee Xi Jinping, while presiding over the session, emphasized the importance of sticking to the strategic goal of developing a strong culture in the country by 2035. He highlighted the significance of upholding Marxism as the fundamental guiding ideology, drawing inspirations from the rich heritage of Chinese civilization, keeping abreast of trends in information technology development and continuously fostering a socialist culture with Chinese characteristics in the new era that offers strong theoretical guidance, spiritual cohesion and value appeal, and has global influence. It is essential to enhance the spiritual strength of the people, thereby laying a robust cultural foundation for building a strong country and realizing the rejuvenation of the Chinese nation, he said.

    Professor Wang Bo, vice president of Peking University, gave a lecture on this issue and put forward suggestions. Members of the Political Bureau of the CPC Central Committee listened carefully to the lecture and held discussions.

    Xi delivered an important speech after listening to the lecture and discussions. He pointed out that since the 18th CPC National Congress, we have persisted in placing cultural development in a prominent position in the governance of the country, made a series of major arrangements, and formed the thought on socialist culture with Chinese characteristics for the new era. We have worked to make historic achievements in cultural development through thoroughly overhauling cultural concepts and cultural theories as well as in upholding fundamental principles and breaking new ground. As a result, we have made great strides in developing a strong socialist culture.

    Xi stressed the need to develop a socialist culture with Chinese characteristics, as well as to uphold the Party’s leadership, enhance governance capacity in cultural sector in the information age, and consolidate the foundation of the Party’s governance and public support for the Party in terms of ideology, ethos and culture. The fundamental system for ensuring the guiding role of Marxism in the ideological domain must be upheld, Xi said, calling for efforts to fully implement the thought on socialist culture with Chinese characteristics for the new era and develop a sound, people-oriented socialist culture for our nation that embraces modernization, the world, and the future. He also highlighted the necessity to adhere to the guidance of core socialist values, continuously bolster the Chinese spirit, Chinese values, and Chinese strength, and develop and strengthen mainstream values, mainstream public opinion, and mainstream culture.

    Xi emphasized the need to stimulate the cultural innovation and creativity of the entire nation. He advocated for a people-centered approach to creation that prioritizes social benefits while integrating social and economic outcomes. He identified the stimulation of innovative and creative vitality as a central element in deepening reform of cultural system and mechanisms, calling for accelerated improvements in cultural management systems as well as production and operational mechanisms. To enhance originality in creating cultural works, he called for efforts to improve the mechanisms for providing services, guidance, and organization work for artistic creation and production, and thus make it possible to nurture a batch of deeply resonant contemporary classics, so as to attain a new zenith of Chinese culture. He noted the need to actively create a favorable cultural environment, promote academic and artistic democracy, and support writers, artists, and experts in getting what they need for creation from life and dedicating themselves to their creations so that they will continuously maintain their vitality for cultural innovation and creativity. Furthermore, he urged the exploration of effective mechanisms for integrating culture and technology, and achieving digital empowerment and information transformation in cultural development, so as to convert advantages in cultural resources into strengths for cultural development.

    Xi stressed the principle that cultural development must be for the people and of the people. To satisfy the people’s diverse, multilevel and multifaceted cultural needs, efforts must be made to advance the capabilities of providing cultural services and products, so as to ensure that the people have a stronger sense of fulfillment and happiness in terms of culture. We should attach importance to the role of culture in fostering will and virtue, so as to foster a higher level of morale throughout the nation. We should also respect the way talent develop, and improve the mechanisms that comply with the characteristics of the cultural sector to select and cultivate talent, put them to proper use and motivate them, so as to make sound policies that will help to recognize, attach importance to and cherish talent. In this way we will be able to build a strong and well-structured team of high-caliber cultural talent that is bold to innovate in creating excellent works.

    Xi urged continued efforts to carry on China’s cultural tradition through creative transformation and innovative development. Stressing the need to leverage the cultural subjectivity of the Chinese nation, he underlined the necessity to conserve, promote, and develop the treasures of Chinese culture that have survived the historical vicissitudes. It is a must to further explore and explain the values of traditional Chinese culture, as well as activate their excellent elements with Marxism and update their connotations, in order to develop a socialist culture with Chinese characteristics for the new era. Urging respect for history and passion for culture, Xi called for efforts to promote systematic conservation and unified regulation of cultural heritage, upholding the principles of conservation first, reasonable utilization and minimum intervention. Xi also emphasized continued efforts to build sound institutions and mechanism for cultural heritage conservation and inheritance, and fast-track the drive to improve the system of regulations and institutions in this regard.

    Xi highlighted the need to continuously enhance China’s cultural soft power and Chinese culture’s influence. It is imperative to promote the restructuring of the international communication framework, innovate the approach to conduct online international publicity, and create a multi-channel and full-dimensional framework for international communication. It is a must to more proactively promote China’s stand, spread Chinese culture, and showcase China’s image. It is imperative to carry out extensive and diverse international cultural exchanges and cooperation. It is essential to learn from all the outstanding achievements of human civilization, so as to achieve cultural outcomes that integrate the past and present, and connect China with the rest of the world.

    Xi finally stressed that building China into a country with a strong culture is the common task of the whole Party and the whole society. It is necessary to strengthen the centralized and unified leadership of the CPC Central Committee over public communication and cultural work, and optimize the leadership and management system and mechanism for cultural development. Party committees and governments at all levels should effectively strengthen organization and leadership, do a good job in assignment of officials, cultivation of talent, and investment of resources, and stimulate the enthusiasm, initiative, and creativity of all sectors to form a powerful synergy for building up China’s cultural strength.

    MIL OSI China News –