Market Newsdesk

January 27, 2025 4:28 pm

NBT Bancorp Inc. Announces Full Year Net Income and Declares Cash Dividend

NORWICH, N.Y., Jan. 27, 2025 (GLOBE NEWSWIRE) — NBT Bancorp Inc. (“NBT” or the “Company”) (NASDAQ: NBTB) reported net income and diluted earnings per share for the three and twelve months ended December 31, 2024.

Net income for the three months ended December 31, 2024 was $36.0 million, or $0.76 per diluted common share, compared to $30.4 million, or $0.64 per diluted common share, for the three months ended December 31, 2023, and $38.1 million, or $0.80 per diluted common share, for the third quarter of 2024. Operating diluted earnings per share⁽¹⁾, a non-GAAP measure was $0.77 for the fourth quarter of 2024, compared to $0.72 for the fourth quarter of 2023 and $0.80 for the third quarter of 2024.

Net income for the year ended December 31, 2024 was $140.6 million, or $2.97 per diluted common share, compared to $118.8 million, or $2.65 per diluted common share, in the prior year.

The Company completed the acquisition of Salisbury Bancorp, Inc. (“Salisbury”) on August 11, 2023, adding 13 banking offices, $1.18 billion in loans and $1.31 billion in deposits. The comparisons to the full year of 2023 are significantly impacted by the Salisbury acquisition.

CEO Comments

“Three consecutive quarters of growth in net interest income and margin along with continued strong results from our diverse mix of fee businesses drove NBT’s operating performance in the fourth quarter of 2024,” said NBT President and Chief Executive Officer Scott A. Kingsley. “In addition, we were pleased to receive regulatory approval during the fourth quarter to complete our planned merger with Evans Bancorp, Inc. Evans shareholders also demonstrated strong support for the partnership with the vote to approve the transaction in December. We continue to expect the merger to close in the second quarter of 2025 in conjunction with the core system conversion, and team members from NBT and Evans are working closely to plan a smooth transition for the customers and communities we will serve together in the Buffalo and Rochester markets.”

Fourth Quarter 2024 Financial Highlights

Net Income	Net income was $36.0 million and diluted earnings per share was $0.76
Net Interest Income / NIM	Net interest income on a fully taxable equivalent (“FTE”) basis was $106.7 million, up $4.4 million from the prior quarter⁽¹⁾ Net interest margin (“NIM”) on an FTE basis was 3.34%⁽¹⁾, up 7 basis points (“bps”) from the prior quarter Included in FTE net interest income was $2.6 million of acquisition-related net accretion, which was consistent with the third quarter of 2024 Earning asset yields of 4.96% were down 5 bps from the prior quarter Total cost of funds of 1.71% was down 14 bps from the prior quarter
Noninterest Income	Noninterest income was $42.2 million, an increase of 11.1% from the fourth quarter of 2023, excluding net securities gains (losses)
Loans and Credit Quality	Period end total loans of $9.97 billion as of December 31, 2024, up $319.2 million, or 3.3%, from December 31, 2023 Net charge-offs to average loans was 0.23% annualized Nonperforming loans to total loans was 0.52% Allowance for loan losses to total loans was 1.16%
Deposits	Deposits were $11.55 billion as of December 31, 2024, up $577.8 million, or 5.3%, from December 31, 2023 Total cost of deposits was 1.60% for the fourth quarter of 2024, down 12 bps from the third quarter of 2024
Capital	Stockholders’ equity was $1.53 billion as of December 31, 2024 Tangible book value per share⁽²⁾ was $23.88 at December 31, 2024 Tangible equity to assets of 8.42%⁽¹⁾ CET1 ratio of 11.93%; Leverage ratio of 10.24%

Loans

Period end total loans were $9.97 billion at December 31, 2024, $9.91 billion at September 30, 2024 and $9.65 billion at December 31, 2023.
Period end total loans increased $319.2 million from December 31, 2023. Total commercial loans increased $322.0 million to $5.30 billion while total consumer loans decreased $2.8 million to $4.67 billion. Excluding the other consumer and residential solar portfolios, which are in a planned run-off status, period end loans increased $478.6 million, or 5.6%.
Commercial line of credit utilization rate was 21% at December 31, 2024, compared to 22% at September 30, 2024 and 20% at December 31, 2023.

Deposits

Total deposits at December 31, 2024 were $11.55 billion, compared to $11.59 billion at September 30, 2024 and $10.97 billion at December 31, 2023. The $577.8 million increase in deposits from December 31, 2023 was primarily due to higher consumer and commercial deposit balances.
The loan to deposit ratio was 86.3% at December 31, 2024, compared to 88.0% at December 31, 2023.

Net Interest Income and Net Interest Margin

Net interest income for the fourth quarter of 2024 was $106.1 million, an increase of $4.4 million, or 4.4%, from the third quarter of 2024 and an increase of $6.9 million, or 7.0%, from the fourth quarter of 2023. The increase in net interest income from the third quarter of 2024 resulted primarily from a decrease in the cost of deposits, an increase in average short-term interest-bearing accounts and the interest earned on those balances combined with a more favorable funding mix.
The NIM on an FTE basis for the fourth quarter of 2024 was 3.34%, an increase of 7 bps from the third quarter of 2024. This increase was driven by an improved funding mix with lower average balances of short-term borrowings, an increase in the average balance of noninterest-bearing demand deposit accounts and a decrease in the cost of interest-bearing deposits. The NIM on an FTE basis increased 19 bps from the fourth quarter of 2023 due to higher earning asset yields and lower average balances of short-term borrowings, partially offset by the increase in the cost of interest-bearing deposits.
Earning asset yields for the three months ended December 31, 2024 decreased 5 bps from the prior quarter to 4.96% and increased 17 bps from the same quarter in the prior year. Loan yields for the three months ended December 31, 2024 decreased 9 bps from the prior quarter to 5.65% primarily due to the repricing of $2.1 billion in variable rate loans partly offset by loans originating at higher rates than portfolio yields during the quarter. Earnings asset yields increased 17 bps from the same quarter in the prior year. Average earning assets increased $257.5 million, or 2.1%, from the third quarter of 2024 due to organic loan growth and an increase in short-term interest-bearing accounts. Average earning assets grew $140.6 million, or 1.1%, from the fourth quarter of 2023 due to organic loan growth partially offset by lower average balances of short-term interest-bearing accounts and securities.
Total cost of deposits, including noninterest bearing deposits, was 1.60% for the fourth quarter of 2024, a decrease of 12 bps from the prior quarter and an increase of 9 bps from the same period in the prior year.
Total cost of funds for the three months ended December 31, 2024 was 1.71%, a decrease of 14 bps from the prior quarter and a decrease of 1 bp from the fourth quarter of 2023.

Asset Quality and Allowance for Loan Losses

Net charge-offs to total average loans for the fourth quarter of 2024 was 23 bps compared to 16 bps in the prior quarter. The increase in net charge-offs from the prior quarter was driven by two commercial real estate relationships, of which $1.7 million was previously specifically reserved for in the second quarter of 2024. Net charge-offs for the portfolios in a planned run-off status represented the majority of total net charge-offs for the full year.
Nonperforming assets to total assets was 0.38% at December 31, 2024, compared to 0.27% at September 30, 2024 and 0.28% at December 31, 2023. The increase in nonperforming assets was attributable to a commercial real estate relationship that was placed into a nonaccrual status in the fourth quarter of 2024. The relationship is being actively managed and was written-down to estimated fair value in the fourth quarter of 2024, and as such, no specific reserve has been established.
Provision expense for the three months ended December 31, 2024 was $2.2 million, compared to $2.9 million for the third quarter of 2024. The decrease in provision expense from the prior quarter was primarily due to the run-off of the other consumer and residential solar portfolios partially offset by a higher level of net charge-offs.
The allowance for loan losses was $116.0 million, or 1.16% of total loans, at December 31, 2024, compared to $119.5 million, or 1.21% of total loans, at September 30, 2024 and $114.4 million, or 1.19% of total loans, at December 31, 2023.
The reserve for unfunded loan commitments was $4.4 million at December 31, 2024, compared to $4.6 million at September 30, 2024 and $5.1 million at December 31, 2023.

Noninterest Income

Total noninterest income, excluding securities gains (losses), was $42.2 million for the three months ended December 31, 2024, down $3.1 million, or 6.8%, from the seasonally high third quarter of 2024, and up $4.2 million, or 11.1%, from the fourth quarter of 2023.
Retirement plan administration fees were down $1.7 million from the prior quarter and increased $1.7 million from the fourth quarter of 2023. The decrease from the prior quarter, as expected, was due to higher seasonal activity-based fees in the third quarter. The increase from the fourth quarter of 2023 was driven by organic growth and higher market levels.
Wealth management fees were consistent with the prior quarter and increased $1.7 million from the fourth quarter of 2023. The increase from the fourth quarter of 2023 was driven by market performance and growth in new customer accounts.
Insurance revenues decreased $1.0 million from the third quarter, which typically has comparatively higher levels of policy renewals than the fourth quarter.

Noninterest Expense

Total noninterest expense was $100.8 million for the fourth quarter of 2024, compared to $95.7 million for the third quarter of 2024 and $92.8 million for the fourth quarter of 2023. Total noninterest expense increased 4.8% compared to the previous quarter and increased 13.7% from the fourth quarter of 2023, excluding $1.0 million of acquisition expenses in the fourth quarter of 2024, $0.5 million in the third quarter of 2024 and $0.3 million in the fourth quarter of 2023, respectively, and the $4.8 million impairment of a minority interest equity investment in the fourth quarter of 2023.
Salaries and benefits increased 3.5% from the prior quarter driven by higher medical costs and an increase in other benefits including higher levels of incentive compensation. The increase from the fourth quarter of 2023 was driven by merit pay increases, higher levels of incentive compensation and higher medical and other benefit costs.
Occupancy costs were consistent with the prior quarter and increased from the fourth quarter of 2023 driven by additional expenses including seasonal maintenance, rent and equipment expense.
Other expense increased $2.5 million from the prior quarter and $0.4 million from the fourth quarter of 2023. The increase from the previous quarter was driven by increases in office supplies and postage, advertising and other expenses.

Income Taxes

The full year effective tax rate was 21.6% for 2024 down from 22.6% for the full year of 2023.

Capital

Tangible common equity to tangible assets⁽¹⁾ was 8.42% at December 31, 2024. Tangible book value per share⁽²⁾ was $23.88 at December 31, 2024, $23.83 at September 30, 2024 and $21.72 at December 31, 2023.
Stockholders’ equity increased $100.5 million from December 31, 2023 driven by net income generation of $140.6 million and an $18.8 million decrease in accumulated other comprehensive loss reflecting the change in the fair value of securities available for sale, partially offset by dividends declared of $62.3 million.
As of December 31, 2024, CET1 capital ratio of 11.93%, leverage ratio of 10.24% and total risk-based capital ratio of 15.03%.

Dividend

The Board of Directors approved a first-quarter cash dividend of $0.34 per share at a meeting held earlier today. The dividend represents a $0.02 per share, or 6.3%, increase over the dividend paid in the first quarter of 2024. The dividend will be paid on March 17, 2025 to stockholders of record as of March 3, 2025.

Stock Repurchase

The Company purchased 7,600 shares of its common stock during 2024 at an average price of $33.02 per share under its previously announced share repurchase program. The Company may repurchase shares of its common stock from time to time to mitigate the potential dilutive effects of stock-based incentive plans and other potential uses of common stock for corporate purposes. As of December 31, 2024, there were 1,992,400 shares available for repurchase under this plan.

Evans Bancorp, Inc. Merger

In December 2024, NBT announced that it had received the regulatory approval and waiver from the Office of the Comptroller of the Currency and the Federal Reserve Bank of New York necessary to complete its acquisition of Evans Bancorp, Inc. (“Evans”). Also in December 2024, the shareholders of Evans voted to approve the merger. Evans reported over 75% of the issued and outstanding shares of Evans were represented at a special shareholder meeting and over 96% of the votes cast were voted to approve the merger. NBT and Evans anticipate closing the transaction in second quarter of 2025 in conjunction with the core system conversion, pending customary closing conditions. Evans had assets of $2.28 billion, deposits of $1.90 billion and net loans of $1.76 billion as of September 30, 2024.

Conference Call and Webcast

The Company will host a conference call at 10:00 a.m. (Eastern) Tuesday, January 28, 2025, to review the fourth quarter 2024 financial results. The audio webcast link, along with the corresponding presentation slides, will be available on the Company’s Event Calendar page at www.nbtbancorp.com/bn/presentations-events.html#events and will be archived for twelve months.

Corporate Overview

NBT Bancorp Inc. is a financial holding company headquartered in Norwich, NY, with total assets of $13.79 billion at December 31, 2024. The Company primarily operates through NBT Bank, N.A., a full-service community bank, and through two financial services companies. NBT Bank, N.A. has 155 banking locations in New York, Pennsylvania, Vermont, Massachusetts, New Hampshire, Maine and Connecticut. EPIC Retirement Plan Services, based in Rochester, NY, is a national benefits administration firm. NBT Insurance Agency, LLC, based in Norwich, NY, is a full-service insurance agency. More information about NBT and its divisions is available online at: www.nbtbancorp.com, www.nbtbank.com, www.epicrps.com and www.nbtbank.com/Insurance.

Forward-Looking Statements

This press release contains forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. These statements may be identified by the use of phrases such as “anticipate,” “believe,” “expect,” “forecasts,” “projects,” “will,” “can,” “would,” “should,” “could,” “may,” or other similar terms. There are a number of factors, many of which are beyond the Company’s control, that could cause actual results to differ materially from those contemplated by the forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among others, the following possibilities: (1) local, regional, national and international economic conditions, including actual or potential stress in the banking industry, and the impact they may have on the Company and its customers, and the Company’s assessment of that impact; (2) changes in the level of nonperforming assets and charge-offs; (3) changes in estimates of future reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements; (4) the effects of and changes in trade and monetary and fiscal policies and laws, including the interest rate policies of the Federal Reserve Board (“FRB”); (5) inflation, interest rate, securities market and monetary fluctuations; (6) political instability; (7) acts of war, including international military conflicts, or terrorism; (8) the timely development and acceptance of new products and services and the perceived overall value of these products and services by users; (9) changes in consumer spending, borrowing and saving habits; (10) changes in the financial performance and/or condition of the Company’s borrowers; (11) technological changes; (12) acquisition and integration of acquired businesses; (13) the possibility that NBT and Evans may be unable to achieve expected synergies and operating efficiencies in the merger within the expected timeframes or at all or to successfully integrate Evans operations and those of NBT; (14) the ability to increase market share and control expenses; (15) changes in the competitive environment among financial holding companies; (16) the effect of changes in laws and regulations (including laws and regulations concerning taxes, banking, securities and insurance) with which the Company and its subsidiaries must comply, including those under the Dodd-Frank Act, and the Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018; (17) the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board and other accounting standard setters; (18) changes in the Company’s organization, compensation and benefit plans; (19) the costs and effects of legal and regulatory developments, including the resolution of legal proceedings or regulatory or other governmental inquiries, and the results of regulatory examinations or reviews; (20) greater than expected costs or difficulties related to the integration of new products and lines of business; and (21) the Company’s success at managing the risks involved in the foregoing items.

The Company cautions readers not to place undue reliance on any forward-looking statements, which speak only as of the date made, and advises readers that various factors, including, but not limited to, those described above and other factors discussed in the Company’s annual and quarterly reports previously filed with the SEC, could affect the Company’s financial performance and could cause the Company’s actual results or circumstances for future periods to differ materially from those anticipated or projected.

Unless required by law, the Company does not undertake, and specifically disclaims any obligations to, publicly release any revisions that may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.

Non-GAAP Measures

This press release contains financial information determined by methods other than in accordance with U.S. generally accepted accounting principles (“GAAP”). Where non-GAAP disclosures are used in this press release, the comparable GAAP measure, as well as a reconciliation to the comparable GAAP measure, is provided in the accompanying tables. Management believes that these non-GAAP measures provide useful information that is important to an understanding of the results of the Company’s core business as well as provide information standard in the financial institution industry. Non-GAAP measures should not be considered a substitute for financial measures determined in accordance with GAAP and investors should consider the Company’s performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the Company. Amounts previously reported in the consolidated financial statements are reclassified whenever necessary to conform to current period presentation.

NBT Bancorp Inc. and Subsidiaries
Selected Financial Data
(unaudited, dollars in thousands except per share data)

		2024												2023
	4th Q			3rd Q			2nd Q			1st Q			4th Q
Profitability (reported)
Diluted earnings per share	$	0.76		$	0.80		$	0.69		$	0.71		$	0.64
Weighted average diluted common shares outstanding		47,505,760			47,473,417			47,382,814			47,370,145			47,356,899
Return on average assets⁽³⁾		1.04	%		1.12	%		0.98	%		1.02	%		0.89	%
Return on average equity⁽³⁾		9.44	%		10.21	%		9.12	%		9.52	%		8.79	%
Return on average tangible common equity⁽¹⁾⁽³⁾		13.36	%		14.54	%		13.23	%		13.87	%		13.08	%
Net interest margin⁽¹⁾⁽³⁾		3.34	%		3.27	%		3.18	%		3.14	%		3.15	%

	12 Months Ended December 31,
		2024			2023
Profitability (reported)
Diluted earnings per share	$	2.97		$	2.65
Weighted average diluted common shares outstanding		47,433,174			44,770,171
Return on average assets		1.04	%		0.95	%
Return on average equity		9.57	%		9.34	%
Return on average tangible common equity⁽¹⁾		13.75	%		13.02	%
Net interest margin⁽¹⁾		3.23	%		3.29	%

		2024												2023
	4th Q			3rd Q			2nd Q			1st Q			4th Q
Profitability (operating)
Diluted earnings per share⁽¹⁾	$	0.77		$	0.80		$	0.69		$	0.68		$	0.72
Return on average assets⁽¹⁾⁽³⁾		1.06	%		1.12	%		0.98	%		0.97	%		0.99	%
Return on average equity⁽¹⁾⁽³⁾		9.60	%		10.23	%		9.14	%		9.04	%		9.79	%
Return on average tangible common equity⁽¹⁾⁽³⁾		13.57	%		14.56	%		13.26	%		13.20	%		14.49	%

		2024												2023
	4th Q			3rd Q			2nd Q			1st Q			4th Q
Balance sheet data
Short-term interest-bearing accounts	$	78,973		$	231,671		$	35,207		$	156,632		$	31,378
Securities available for sale		1,574,664			1,509,338			1,439,445			1,418,471			1,430,858
Securities held to maturity		842,921			854,941			878,909			890,863			905,267
Net loans		9,853,910			9,787,541			9,733,847			9,572,777			9,536,313
Total assets		13,786,666			13,839,552			13,501,909			13,439,199			13,309,040
Total deposits		11,546,761			11,588,278			11,271,459			11,195,289			10,968,994
Total borrowings		414,983			456,666			476,082			518,190			637,387
Total liabilities		12,260,525			12,317,572			12,039,954			11,997,784			11,883,349
Stockholders’ equity		1,526,141			1,521,980			1,461,955			1,441,415			1,425,691

Capital
Equity to assets		11.07	%		11.00	%		10.83	%		10.73	%		10.71	%
Tangible equity ratio⁽¹⁾		8.42	%		8.36	%		8.11	%		7.98	%		7.93	%
Book value per share	$	32.34		$	32.26		$	31.00		$	30.57		$	30.26
Tangible book value per share⁽²⁾	$	23.88		$	23.83		$	22.54		$	22.07		$	21.72
Leverage ratio		10.24	%		10.29	%		10.16	%		10.09	%		9.71	%
Common equity tier 1 capital ratio		11.93	%		11.86	%		11.70	%		11.68	%		11.57	%
Tier 1 capital ratio		12.83	%		12.77	%		12.61	%		12.61	%		12.50	%
Total risk-based capital ratio		15.03	%		15.02	%		14.88	%		14.87	%		14.75	%
Common stock price (end of period)	$	47.76		$	44.23		$	38.60		$	36.68		$	41.91

NBT Bancorp Inc. and Subsidiaries
Asset Quality and Consolidated Loan Balances
(unaudited, dollars in thousands)

		2024												2023
	4th Q			3rd Q			2nd Q			1st Q			4th Q
Asset quality
Nonaccrual loans	$	45,819		$	33,338		$	34,755		$	35,189		$	34,213
90 days past due and still accruing		5,798			3,981			3,333			2,600			3,661
Total nonperforming loans		51,617			37,319			38,088			37,789			37,874
Other real estate owned		182			127			74			–			–
Total nonperforming assets		51,799			37,446			38,162			37,789			37,874
Allowance for loan losses		116,000			119,500			120,500			115,300			114,400

Asset quality ratios
Allowance for loan losses to total loans		1.16	%		1.21	%		1.22	%		1.19	%		1.19	%
Total nonperforming loans to total loans		0.52	%		0.38	%		0.39	%		0.39	%		0.39	%
Total nonperforming assets to total assets		0.38	%		0.27	%		0.28	%		0.28	%		0.28	%
Allowance for loan losses to total nonperforming loans		224.73	%		320.21	%		316.37	%		305.12	%		302.05	%
Past due loans to total loans⁽⁴⁾		0.34	%		0.36	%		0.30	%		0.33	%		0.32	%
Net charge-offs to average loans⁽³⁾		0.23	%		0.16	%		0.15	%		0.19	%		0.22	%

		2024												2023
	4th Q			3rd Q			2nd Q			1st Q			4th Q
Loan net charge-offs by line of business
Commercial	$	2,542		$	807		$	(8	)	$	772		$	1,107
Residential real estate and home equity		(25	)		(64	)		(76	)		(32	)		11
Indirect auto		675			725			747			665			399
Residential solar		1,589			1,599			1,610			1,211			1,081
Other consumer		928			853			1,426			2,063			2,729
Total loan net charge-offs	$	5,709		$	3,920		$	3,699		$	4,679		$	5,327

		2024												2023
	4th Q			3rd Q			2nd Q			1st Q			4th Q
Allowance for loan losses as a percentage of loans by segment
Commercial & industrial		0.73	%		0.73	%		0.76	%		0.79	%		0.84	%
Commercial real estate		0.95	%		1.01	%		1.00	%		0.97	%		0.99	%
Residential real estate		1.00	%		1.00	%		0.98	%		0.89	%		0.84	%
Auto		0.81	%		0.83	%		0.85	%		0.81	%		0.83	%
Residential solar		3.70	%		3.70	%		3.76	%		3.58	%		3.28	%
Other consumer		2.65	%		3.51	%		4.09	%		4.24	%		4.70	%
Total		1.16	%		1.21	%		1.22	%		1.19	%		1.19	%

		2024												2023
	4th Q			3rd Q			2nd Q			1st Q			4th Q
Loans by line of business
Commercial & industrial	$	1,426,482		$	1,458,926		$	1,397,935		$	1,353,446		$	1,354,248
Commercial real estate		3,876,698			3,792,498			3,784,214			3,646,739			3,626,910
Residential real estate		2,142,249			2,143,766			2,134,875			2,133,289			2,125,804
Home equity		334,268			328,687			326,556			328,673			337,214
Indirect auto		1,273,253			1,235,175			1,225,786			1,190,734			1,130,132
Residential solar		820,079			839,659			861,883			896,147			917,755
Other consumer		96,881			108,330			123,098			139,049			158,650
Total loans	$	9,969,910		$	9,907,041		$	9,854,347		$	9,688,077		$	9,650,713

NBT Bancorp Inc. and Subsidiaries
Consolidated Balance Sheets
(unaudited, in thousands)

	December 31,		December 31,
	2024		2023
Assets
Cash and due from banks	$	205,083	$	173,811
Short-term interest-bearing accounts		78,973		31,378
Equity securities, at fair value		42,372		37,591
Securities available for sale, at fair value		1,574,664		1,430,858
Securities held to maturity (fair value $749,945 and $814,524, respectively)		842,921		905,267
Federal Reserve and Federal Home Loan Bank stock		33,957		45,861
Loans held for sale		9,744		3,371
Loans		9,969,910		9,650,713
Less allowance for loan losses		116,000		114,400
Net loans	$	9,853,910	$	9,536,313
Premises and equipment, net		80,840		80,675
Goodwill		362,663		361,851
Intangible assets, net		36,360		40,443
Bank owned life insurance		272,657		265,732
Other assets		392,522		395,889
Total assets	$	13,786,666	$	13,309,040

Liabilities and stockholders’ equity
Demand (noninterest bearing)	$	3,446,068	$	3,413,829
Savings, NOW and money market		6,658,188		6,230,456
Time		1,442,505		1,324,709
Total deposits	$	11,546,761	$	10,968,994
Short-term borrowings		162,942		386,651
Long-term debt		29,644		29,796
Subordinated debt, net		121,201		119,744
Junior subordinated debt		101,196		101,196
Other liabilities		298,781		276,968
Total liabilities	$	12,260,525	$	11,883,349

Total stockholders’ equity	$	1,526,141	$	1,425,691

Total liabilities and stockholders’ equity	$	13,786,666	$	13,309,040

NBT Bancorp Inc. and Subsidiaries
Consolidated Statements of Income
(unaudited, in thousands except per share data)

	Three Months Ended					Twelve Months Ended
	December 31,					December 31,
	2024			2023		2024			2023
Interest, fee and dividend income
Interest and fees on loans	$	141,103		$	132,738	$	552,846		$	462,669
Securities available for sale		8,773			7,208		31,274			29,812
Securities held to maturity		4,931			5,374		20,466			20,681
Other		2,930			5,594		7,084			9,627
Total interest, fee and dividend income	$	157,737		$	150,914	$	611,670		$	522,789
Interest expense
Deposits	$	46,815		$	42,753	$	186,948		$	104,641
Short-term borrowings		918			4,951		8,669			25,608
Long-term debt		293			294		1,166			925
Subordinated debt		1,816			1,795		7,232			6,076
Junior subordinated debt		1,790			1,948		7,533			7,320
Total interest expense	$	51,632		$	51,741	$	211,548		$	144,570
Net interest income	$	106,105		$	99,173	$	400,122		$	378,219
Provision for loan losses	$	2,209		$	5,126	$	19,607		$	16,524
Provision for loan losses – acquisition day 1 non-PCD		–			–		–			8,750
Total provision for loan losses	$	2,209		$	5,126	$	19,607		$	25,274
Net interest income after provision for loan losses	$	103,896		$	94,047	$	380,515		$	352,945
Noninterest income
Service charges on deposit accounts	$	4,411		$	4,165	$	17,087		$	15,425
Card services income		5,652			5,360		22,331			20,829
Retirement plan administration fees		12,924			11,226		56,587			47,221
Wealth management		10,842			9,152		41,641			34,763
Insurance services		3,883			3,659		17,032			15,667
Bank owned life insurance income		2,271			1,776		8,325			6,750
Net securities gains (losses)		222			507		2,789			(9,315	)
Other		2,221			2,643		11,032			10,838
Total noninterest income	$	42,426		$	38,488	$	176,824		$	142,178
Noninterest expense
Salaries and employee benefits	$	61,749		$	50,013	$	232,487		$	194,250
Technology and data services		10,220			10,174		39,139			38,163
Occupancy		7,786			7,175		31,309			28,408
Professional fees and outside services		4,843			5,115		19,132			17,601
Amortization of intangible assets		2,080			2,131		8,443			4,734
Reserve for unfunded loan commitments		(125	)		300		(705	)		30
Impairment of a minority interest equity investment		–			4,750		–			4,750
Acquisition expenses		988			254		1,531			9,978
Other		13,234			12,839		46,545			43,750
Total noninterest expense	$	100,775		$	92,751	$	377,881		$	341,664
Income before income tax expense	$	45,547		$	39,784	$	179,458		$	153,459
Income tax expense		9,542			9,338		38,817			34,677
Net income	$	36,005		$	30,446	$	140,641		$	118,782
Earnings Per Share
Basic	$	0.76		$	0.65	$	2.98		$	2.67
Diluted	$	0.76		$	0.64	$	2.97		$	2.65

NBT Bancorp Inc. and Subsidiaries
Quarterly Consolidated Statements of Income
(unaudited, in thousands except per share data)

		2024										2023
	4th Q			3rd Q		2nd Q			1st Q			4th Q
Interest, fee and dividend income
Interest and fees on loans	$	141,103		$	141,991	$	136,606		$	133,146		$	132,738
Securities available for sale		8,773			7,815		7,562			7,124			7,208
Securities held to maturity		4,931			5,042		5,190			5,303			5,374
Other		2,930			1,382		1,408			1,364			5,594
Total interest, fee and dividend income	$	157,737		$	156,230	$	150,766		$	146,937		$	150,914
Interest expense
Deposits	$	46,815		$	49,106	$	46,688		$	44,339		$	42,753
Short-term borrowings		918			1,431		2,899			3,421			4,951
Long-term debt		293			292		291			290			294
Subordinated debt		1,816			1,810		1,806			1,800			1,795
Junior subordinated debt		1,790			1,922		1,908			1,913			1,948
Total interest expense	$	51,632		$	54,561	$	53,592		$	51,763		$	51,741
Net interest income	$	106,105		$	101,669	$	97,174		$	95,174		$	99,173
Provision for loan losses	$	2,209		$	2,920	$	8,899		$	5,579		$	5,126
Provision for loan losses – acquisition day 1 non-PCD		–			–		–			–			–
Total provision for loan losses	$	2,209		$	2,920	$	8,899		$	5,579		$	5,126
Net interest income after provision for loan losses	$	103,896		$	98,749	$	88,275		$	89,595		$	94,047
Noninterest income
Service charges on deposit accounts	$	4,411		$	4,340	$	4,219		$	4,117		$	4,165
Card services income		5,652			5,897		5,587			5,195			5,360
Retirement plan administration fees		12,924			14,578		14,798			14,287			11,226
Wealth management		10,842			10,929		10,173			9,697			9,152
Insurance services		3,883			4,913		3,848			4,388			3,659
Bank owned life insurance income		2,271			1,868		1,834			2,352			1,776
Net securities gains (losses)		222			476		(92	)		2,183			507
Other		2,221			2,773		2,865			3,173			2,643
Total noninterest income	$	42,426		$	45,774	$	43,232		$	45,392		$	38,488
Noninterest expense
Salaries and employee benefits	$	61,749		$	59,641	$	55,393		$	55,704		$	50,013
Technology and data services		10,220			9,920		9,249			9,750			10,174
Occupancy		7,786			7,754		7,671			8,098			7,175
Professional fees and outside services		4,843			4,871		4,565			4,853			5,115
Amortization of intangible assets		2,080			2,062		2,133			2,168			2,131
Reserve for unfunded loan commitments		(125	)		250		(380	)		(450	)		300
Impairment of a minority interest equity investment		–			–		–			–			4,750
Acquisition expenses		988			543		–			–			254
Other		13,234			10,704		10,957			11,650			12,839
Total noninterest expense	$	100,775		$	95,745	$	89,588		$	91,773		$	92,751
Income before income tax expense	$	45,547		$	48,778	$	41,919		$	43,214		$	39,784
Income tax expense		9,542			10,681		9,203			9,391			9,338
Net income	$	36,005		$	38,097	$	32,716		$	33,823		$	30,446
Earnings Per Share
Basic	$	0.76		$	0.81	$	0.69		$	0.72		$	0.65
Diluted	$	0.76		$	0.80	$	0.69		$	0.71		$	0.64

NBT Bancorp Inc. and Subsidiaries
Average Quarterly Balance Sheets
(unaudited, dollars in thousands)

	Average Balance		Yield / Rates	Average Balance		Yield / Rates	Average Balance		Yield / Rates	Average Balance		Yield / Rates	Average Balance		Yield / Rates
	Q4 – 2024			Q3 – 2024			Q2 – 2024			Q1 – 2024			Q4 – 2023
Assets
Short-term interest-bearing accounts	$	184,988	5.27 %	$	62,210	4.87%	$	48,861	5.48%	$	47,972	4.48%	$	319,907	5.59%
Securities taxable⁽¹⁾		2,317,034	2.10 %		2,266,930	1.99%		2,280,767	1.97%		2,278,029	1.91%		2,310,409	1.88%
Securities tax-exempt⁽¹⁾⁽⁵⁾		211,493	3.46 %		217,251	3.47%		226,032	3.56%		230,468	3.58%		232,575	3.51%
FRB and FHLB stock		33,261	5.75 %		35,395	6.97%		40,283	7.41%		42,296	7.89%		47,994	8.98%
Loans⁽¹⁾⁽⁶⁾		9,957,879	5.65 %		9,865,412	5.74%		9,772,014	5.63%		9,674,892	5.54%		9,653,191	5.47%
Total interest-earning assets	$	12,704,655	4.96 %	$	12,447,198	5.01%	$	12,367,957	4.92%	$	12,273,657	4.84%	$	12,564,076	4.79%
Other assets		1,093,419			1,072,277			1,064,487			1,055,386			1,052,024
Total assets	$	13,798,074		$	13,519,475		$	13,432,444		$	13,329,043		$	13,616,100
Liabilities and stockholders’ equity
Money market deposit accounts	$	3,504,937	3.27 %	$	3,342,845	3.68%	$	3,254,252	3.65%	$	3,129,160	3.56%	$	3,045,531	3.43%
NOW deposit accounts		1,664,960	0.91 %		1,600,547	0.87%		1,603,695	0.78%		1,600,288	0.75%		1,645,401	0.80%
Savings deposits		1,561,703	0.05 %		1,566,316	0.05%		1,586,753	0.05%		1,607,659	0.04%		1,666,915	0.04%
Time deposits		1,446,798	3.85 %		1,442,424	4.00%		1,391,062	4.00%		1,352,559	4.00%		1,343,548	3.81%
Total interest-bearing deposits	$	8,178,398	2.28 %	$	7,952,132	2.46%	$	7,835,762	2.40%	$	7,689,666	2.32%	$	7,701,395	2.20%
Federal funds purchased		–	–		2,609	5.34%		29,945	5.56%		19,769	5.53%		217	5.48%
Repurchase agreements		116,408	3.13 %		98,035	2.80%		86,405	1.55%		82,419	1.55%		82,387	1.59%
Short-term borrowings		174	4.57 %		48,875	5.74%		155,159	5.58%		213,390	5.34%		345,250	5.31%
Long-term debt		29,657	3.93 %		29,696	3.91%		29,734	3.94%		29,772	3.92%		29,809	3.91%
Subordinated debt, net		120,967	5.97 %		120,594	5.97%		120,239	6.04%		119,873	6.04%		119,531	5.96%
Junior subordinated debt		101,196	7.04 %		101,196	7.56%		101,196	7.58%		101,196	7.60%		101,196	7.64%
Total interest-bearing liabilities	$	8,546,800	2.40 %	$	8,353,137	2.60%	$	8,358,440	2.58%	$	8,256,085	2.52%	$	8,379,785	2.45%
Demand deposits		3,438,194			3,389,894			3,323,906			3,356,607			3,535,815
Other liabilities		295,292			292,446			306,747			286,749			326,857
Stockholders’ equity		1,517,788			1,483,998			1,443,351			1,429,602			1,373,643
Total liabilities and stockholders’ equity	$	13,798,074		$	13,519,475		$	13,432,444		$	13,329,043		$	13,616,100
Interest rate spread			2.56 %			2.41%			2.34%			2.32%			2.34%
Net interest margin (FTE)⁽¹⁾			3.34 %			3.27%			3.18%			3.14%			3.15%

NBT Bancorp Inc. and Subsidiaries
Average Year-to-Date Balance Sheets
(unaudited, dollars in thousands)

	Average				Yield/	Average				Yield/
	Balance		Interest		Rates	Balance		Interest		Rates
Twelve Months Ended December 31,		2024					2023
Assets
Short-term interest-bearing accounts	$	86,213	$	4,412	5.12 %	$	126,765	$	6,259	4.94%
Securities taxable⁽¹⁾		2,285,725		45,588	1.99 %		2,377,596		45,176	1.90%
Securities tax-exempt⁽¹⁾⁽⁵⁾		221,273		7,788	3.52 %		214,053		6,730	3.14%
FRB and FHLB stock		37,789		2,672	7.07 %		48,641		3,368	6.92%
Loans⁽¹⁾⁽⁶⁾		9,818,064		553,784	5.64 %		8,803,228		463,290	5.26%
Total interest-earning assets	$	12,449,064	$	614,244	4.93 %	$	11,570,283	$	524,823	4.54%
Other assets		1,071,455					923,850
Total assets	$	13,520,519				$	12,494,133
Liabilities and stockholders’ equity
Money market deposit accounts	$	3,308,433	$	116,982	3.54 %	$	2,418,450	$	62,475	2.58%
NOW deposit accounts		1,617,456		13,442	0.83 %		1,555,414		8,298	0.53%
Savings deposits		1,580,517		734	0.05 %		1,715,749		650	0.04%
Time deposits		1,408,410		55,790	3.96 %		1,006,867		33,218	3.30%
Total interest-bearing deposits	$	7,914,816	$	186,948	2.36 %	$	6,696,480	$	104,641	1.56%
Federal funds purchased		13,016		721	5.54 %		24,575		1,269	5.16%
Repurchase agreements		95,879		2,255	2.35 %		70,251		747	1.06%
Short-term borrowings		103,963		5,693	5.48 %		450,377		23,592	5.24%
Long-term debt		29,715		1,166	3.92 %		24,247		925	3.81%
Subordinated debt, net		120,420		7,232	6.01 %		105,756		6,076	5.75%
Junior subordinated debt		101,196		7,533	7.44 %		101,196		7,320	7.23%
Total interest-bearing liabilities	$	8,379,005	$	211,548	2.52 %	$	7,472,882	$	144,570	1.93%
Demand deposits		3,377,352					3,463,608
Other liabilities		295,301					285,310
Stockholders’ equity		1,468,861					1,272,333
Total liabilities and stockholders’ equity	$	13,520,519				$	12,494,133
Net interest income (FTE)⁽¹⁾			$	402,696				$	380,253
Interest rate spread					2.41 %					2.61%
Net interest margin (FTE)⁽¹⁾					3.23 %					3.29%
Taxable equivalent adjustment			$	2,574				$	2,034
Net interest income			$	400,122				$	378,219

⁽¹⁾	The following tables provide the Non-GAAP reconciliations for the Non-GAAP measures contained in this release:

	Non-GAAP measures
	(unaudited, dollars in thousands except per share data)

			2024												2023
		4th Q			3rd Q			2nd Q			1st Q			4th Q
	Operating net income
	Net income	$	36,005		$	38,097		$	32,716		$	33,823		$	30,446
	Acquisition expenses		988			543			–			–			254
	Impairment of a minority interest equity investment		–			–			–			–			4,750
	Securities (gains) losses		(222	)		(476	)		92			(2,183	)		(507	)
	Adjustments to net income	$	766		$	67		$	92		$	(2,183	)	$	4,497
	Adjustments to net income (net of tax)	$	604		$	52		$	72		$	(1,703	)	$	3,435
	Operating net income	$	36,609		$	38,149		$	32,788		$	32,120		$	33,881
	Operating diluted earnings per share	$	0.77		$	0.80		$	0.69		$	0.68		$	0.72

			2024												2023
		4th Q			3rd Q			2nd Q			1st Q			4th Q
	FTE adjustment
	Net interest income	$	106,105		$	101,669		$	97,174		$	95,174		$	99,173
	Add: FTE adjustment		619			639			658			658			669
	Net interest income (FTE)	$	106,724		$	102,308		$	97,832		$	95,832		$	99,842
	Average earning assets	$	12,704,655		$	12,447,198		$	12,367,957		$	12,273,657		$	12,564,076
	Net interest margin (FTE)⁽³⁾		3.34	%		3.27	%		3.18	%		3.14	%		3.15	%

		12 Months Ended December 31,
			2024			2023
	FTE adjustment
	Net interest income	$	400,122		$	378,219
	Add: FTE adjustment		2,574			2,034
	Net interest income (FTE)	$	402,696		$	380,253
	Average earning assets	$	12,449,064		$	11,570,283
	Net interest margin (FTE)		3.23	%		3.29	%

	Interest income for tax-exempt securities and loans have been adjusted to an FTE basis using the statutory Federal income tax rate of 21%.

⁽¹⁾	The following tables provide the Non-GAAP reconciliations for the Non-GAAP measures contained in this release:

	Non-GAAP measures (continued)
	(unaudited, dollars in thousands)

			2024												2023
		4th Q			3rd Q			2nd Q			1st Q			4th Q
	Tangible equity to tangible assets
	Total equity	$	1,526,141		$	1,521,980		$	1,461,955		$	1,441,415		$	1,425,691
	Intangible assets		399,023			397,853			398,686			400,819			402,294
	Total assets	$	13,786,666		$	13,839,552		$	13,501,909		$	13,439,199		$	13,309,040
	Tangible equity to tangible assets		8.42	%		8.36	%		8.11	%		7.98	%		7.93	%

			2024												2023
		4th Q			3rd Q			2nd Q			1st Q			4th Q
	Return on average tangible common equity
	Net income	$	36,005		$	38,097		$	32,716		$	33,823		$	30,446
	Amortization of intangible assets (net of tax)		1,560			1,547			1,600			1,626			1,599
	Net income, excluding intangibles amortization	$	37,565		$	39,644		$	34,316		$	35,449		$	32,045

	Average stockholders’ equity	$	1,517,788		$	1,483,998		$	1,443,351		$	1,429,602		$	1,373,643
	Less: average goodwill and other intangibles		399,139			399,113			399,968			401,756			401,978
	Average tangible common equity	$	1,118,649		$	1,084,885		$	1,043,383		$	1,027,846		$	971,665
	Return on average tangible common equity⁽³⁾		13.36	%		14.54	%		13.23	%		13.87	%		13.08	%

		12 Months Ended December 31,
			2024			2023
	Return on average tangible common equity
	Net income	$	140,641		$	118,782
	Amortization of intangible assets (net of tax)		6,332			3,551
	Net income, excluding intangibles amortization	$	146,973		$	122,333

	Average stockholders’ equity	$	1,468,861		$	1,272,333
	Less: average goodwill and other intangibles		399,989			332,667
	Average tangible common equity	$	1,068,872		$	939,666
	Return on average tangible common equity		13.75	%		13.02	%

⁽²⁾	Non-GAAP measure – Stockholders’ equity less goodwill and intangible assets divided by common shares outstanding.
⁽³⁾	Annualized.
⁽⁴⁾	Total past due loans, defined as loans 30 days or more past due and in an accrual status.
⁽⁵⁾	Securities are shown at average amortized cost.
⁽⁶⁾	For purposes of these computations, nonaccrual loans and loans held for sale are included in the average loan balances outstanding.

Contact:	Scott A. Kingsley, President and CEO
	Annette L. Burns, Executive Vice President and CFO
	NBT Bancorp Inc.
	52 South Broad Street
	Norwich, NY 13815
	607-337-6589

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

January 27, 2025 4:28 pm

Norwood Financial Corp announces Fourth Quarter and Full Year 2024 Results

Quarterly Highlights:

Net interest margin increased 5 basis points vs. the prior quarter and 11 basis points over the prior year.
Loans grew at an 9% annualized rate during the fourth quarter.
Completed capital raise that supports our long-term strategy and repositions our investment portfolio to improve our yield on the portfolio.
Capital continues to improve due to recent equity offering and lower AOCI adjustment.

HONESDALE, Pa., Jan. 27, 2025 (GLOBE NEWSWIRE) — Norwood Financial Corp (Nasdaq Global Market-NWFL) and its subsidiary, Wayne Bank, announced results for the three months and fiscal year ended December 31, 2024.

Jim Donnelly, President and Chief Executive Officer of Norwood Financial Corp and Wayne Bank, stated, “During the fourth quarter, we successfully completed a capital raise that enabled us to reposition our investment portfolio for improved yields on the portfolio in future periods. While we incurred a one-time $20 million loss as a result of this repositioning, we believe the portfolio is better positioned for the current and future interest rate environment. Excluding this loss, we performed well during the fourth quarter, delivering higher net interest income year-over-year for both the fourth quarter and the full year. As a result of these actions, we believe the Company is financially stronger and better protected from changes in interest rates and will enhance our future performance.”

Selected Financial Highlights

(dollars in thousands, except per share data)	Three Months Ended					Twelve Months Ended
	December 31, 2024					December 31, 2024
	2024		2023	Change		2024		2023	Change
Net interest income	16,625		15,293	1,332		62,191		62,067	124
Net interest spread (fte)	2.31%		2.23%	8 bps		2.17%		2.47%	(30 bps	)
Net interest margin (fte)	3.04%		2.93%	11 bps		2.91%		3.06%	(15 bps	)
Net income (loss)	(12,651	)	355	(13,006	)	(160	)	16,759	(16,919	)
Diluted earnings per share	(1.54	)	0.04	(1.41	)	(0.02	)	2.07	(2.09	)
Return on average assets	(2.19%	)	0.06%	(225 bps	)	-0.01%		0.79%	(80 bps	)
Return on tangible equity	(30.77%	)	1.01%	(3,178 bps	)	(0.10%	)	11.66%	(1,167 bps	)
Discussion of financial results for the three months ended December 31, 2024: The Company has a net loss of $12.7 million for the three months ended December 31, 2024. This was $13 million lower than the same period last year due one-time $20 million loss incurred on the sale of securities during December. Net interest income was higher during the fourth quarter of 2024 than 2023 as increases in asset yields outpaced increases in yields on liabilities. Correspondingly, the net interest margin in the fourth quarter was 3.04% in 2024 compared to 2.93% in 2023. Discussion of financial results for the year ended December 31, 2024: The Company posted a had a net loss of $160 thousand, or -$0.02 per diluted share, for the full-fiscal year ended year December 31, 2024 compared to net income of $16.8 million, or $2.07 per diluted share, for the fiscal year ended December in31. 2023. This loss was primarily due to a one-time $20 million loss incurred on the sale of securities during December 2024. The full-year net interest margin was 2.91% in 2024 versus 3.06% in 2023. Deposit costs were higher in 2024, especially in the earlier part of the year, before the Federal Reserve began to cut rates. Total non-interest expenses for 2024 were $48.6 million compared to $43.5 million in 2023. The increase was generally due to higher compensation and data processing costs. Adjusted net income for the year was lower as higher net interest income and total other income was more than offset by an increase in total other expenses. As of December 31, 2024, total assets were $2.317 billion, compared to $2.201 billion at December 31, 2023. Loans receivable were $1.693 billion, total deposits were $1.859 billion, and stockholders’ equity was $213.5 million. Tangible Common Equity was 8.05% as of December 31, 2024, versus 6.98% at the end of 2023.
The following non-GAAP financial measures exclude the one-time $20.0 million net realized loss incurred in the fourth quarter as a result of the repositioning of our investment portfolio. Please see “Non-GAAP Financial Measures” below for a reconciliation of all non-GAAP financial measures.
(dollars in thousands, except per share data)	Three Months Ended					Twelve Months Ended
	December 31, 2024					December 31, 2024
	2024		2023	Change		2024		2023	Change
Adjusted net income	3,119		355	2,764		15,610		16,759	(1,149	)
Adjusted diluted earnings per share	0.38		0.04	0.34		1.93		2.07	(0.14	)
Adjusted return on average assets	0.54%		0.06%	48 bps		0.69%		0.79%	(10 bps	)
Adjusted return on tangible equity	7.59%		1.01%	654 bps		9.97%		11.66%	(169 bps	)

Norwood Financial Corp is the parent company of Wayne Bank, which operates from 16 offices throughout Northeastern Pennsylvania and 14 offices in 4 Delaware, Sullivan, Ontario, Otsego and Yates Counties, New York. The Company’s stock trades on the Nasdaq Global Market under the symbol “NWFL”.

Non-GAAP Financial Measures

This release references adjusted net income, adjusted diluted earnings per share, adjusted return on average assets and adjusted return on tangible equity, all of which are non-GAAP (Generally Accepted Accounting Principles) financial measures. Adjusted values were derived by reversing the effect of loss on sale of securities in 2024 along with the attendant tax effect. We believe the presentation of adjusted net income, adjusted diluted earnings per share, adjusted return on average assets and adjusted return on tangible equity ensures comparability of these measures as the portfolio restructuring is not something the Company expects to be a recurring event.


Adjusted Return on Average Assets
(Dollars in thousands)

	Three Months Ended December 31,						Twelve Months Ended December 31,
		2024			2023			2024			2023
Net (loss) income	$	(12,651	)	$	355		$	(160	)	$	16,759
Average assets		2,299,732			2,166,821			2,250,171			2,128,570
Return on average assets (annualized)		-2.19	%		0.06	%		-0.01	%		0.79	%
Net (loss) income		(12,651	)		355			(160	)		16,759
Net realized losses on sale of securities		19,962			0			19,962			0
Tax effect at 21%		(4,192	)		0			(4,192	)		0
Adjusted Net Income (Non-GAAP)		3,119			355			15,610			16,759
Average assets		2,299,732			2,166,821			2,250,171			2,128,570
Adjusted return on average assets (annualized)
(Non-GAAP)		0.54	%		0.06	%		0.69	%		0.79	%


Adjusted Return on Average Tangible Shareholders’ Equity
(Dollars in thousands)

	Three Months Ended December 31,						Twelve Months Ended December 31,
		2024			2023			2024			2023
Net (loss) income	$	(12,651	)	$	355		$	(160	)	$	16,759
Average shareholders’ equity		192,981			168,317			185,952			173,273
Average intangible assets		29,424			29,495			29,449			29,526
Average tangible shareholders’ equity		163,557			138,822			156,503			143,747
Return on average tangible shareholders’ equity (annualized)		-30.77	%		1.01	%		-0.10	%		11.66	%
Net (loss) income		(12,651	)		355			(160	)		16,759
Net realized losses on sale of securities		19,962			0			19,962			0
Tax effect at 21%		(4,192	)		0			(4,192	)		0
Adjusted Net Income (Non-GAAP)		3,119			355			15,610			16,759
Average tangible shareholders’ equity		163,557			138,822			156,503			143,747
Adjusted return on average shareholders’ equity (annualized)
(Non-GAAP)		7.59	%		1.01	%		9.97	%		11.66	%


Adjusted Earnings Per Share
(Dollars in thousands)

	Three Months Ended December 31,						Twelve Months Ended December 31,
		2024			2023			2024			2023
GAAP-Based Earnings Per Share, Basic	$	(1.54	)	$	0.04		$	(0.02	)	$	2.08
GAAP-Based Earnings Per Share, Diluted	$	(1.54	)	$	0.04		$	(0.02	)	$	2.07
Net (Loss) Income		(12,651	)		355			(160	)		16,759
Net realized losses on sale of securities		19,962			0			19,962			0
Tax effect at 21%		(4,192	)		0			(4,192	)		0
Adjusted Net Income (Non-GAAP)		3,119			355			15,610			16,759
Adjusted Earnings per Share, Basic (Non-GAAP)	$	0.38		$	0.04		$	1.93		$	2.08
Adjusted Earnings per Share, Diluted (Non-GAAP)	$	0.38		$	0.04		$	1.93		$	2.07

The following table reconciles average equity to average tangible equity:

Tangible Book Value
(Dollars in thousands)

	December 31,
		2024		2023
Total shareholders’ equity		213,508		181,070
Adjustments:
Goodwill		(29,266	)	(29,266	)
Other intangible assets		(152	)	(221	)
Tangible common equity (Non-GAAP)		184,090		151,583
Common shares outstanding		9,272,906		8,110,157
Book value per common share		23.02		22.33
Tangible book value per common share (Non-GAAP)		19.85		18.69

Forward-Looking Statements

The Private Securities Litigation Reform Act of 1995 contains safe harbor provisions regarding forward-looking statements. When used in this discussion, the words “believes”, “anticipates”, “contemplates”, “expects”, “bode”, “future performance” and similar expressions are intended to identify forward-looking statements. Such statements are subject to certain risks and uncertainties, which could cause actual results to differ materially from those projected. Those risks and uncertainties include, among other things, changes in federal and state laws, changes in interest rates, our ability to maintain strong credit quality metrics, our ability to have future performance, our ability to control core operating expenses and costs, demand for real estate, government fiscal and trade policies, cybersecurity and general economic conditions. The Company undertakes no obligation to publicly release the results of any revisions to those forward-looking statements which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Contact:	John M. McCaffery
	Executive Vice President &
	Chief Financial Officer
	NORWOOD FINANCIAL CORP
	272-304-3003
	www.waynebank.com


NORWOOD FINANCIAL CORP
Consolidated Balance Sheets
(dollars in thousands, except share and per share data)
(unaudited)
		December 31
		2024			2023
ASSETS
Cash and due from banks	$	27,562		$	28,533
Interest-bearing deposits with banks		44,777			37,587
Cash and cash equivalents		72,339			66,120

Securities available for sale		397,846			406,259
Loans receivable		1,713,638			1,603,618
Less: Allowance for credit losses		19,843			18,968
Net loans receivable		1,693,795			1,584,650
Regulatory stock, at cost		13,366			7,318
Bank premises and equipment, net		19,657			17,838
Bank owned life insurance		46,657			46,439
Foreclosed real estate owned		–			97
Accrued interest receivable		8,466			8,123
Deferred tax assets, net		17,696			21,353
Goodwill		29,266			29,266
Other intangible assets		152			221
Other assets		18,222			13,395
TOTAL ASSETS	$	2,317,462		$	2,201,079

LIABILITIES
Deposits:
Non-interest bearing demand	$	381,479		$	399,545
Interest-bearing		1,477,684			1,395,614
Total deposits		1,859,163			1,795,159
Short-term borrowings		113,069			74,076
Other borrowings		101,793			124,236
Accrued interest payable		12,615			10,510
Other liabilities		17,314			16,028
TOTAL LIABILITIES		2,103,954			2,020,009

STOCKHOLDERS’ EQUITY
Preferred Stock, no par value per share, authorized 5,000,000 shares		–			–
Common Stock, $.10 par value per share,
authorized: 20,000,000 shares,
issued: 2024: 9,487,067 shares, 2023: 8,310,847 shares		949			831
Surplus		98,513			97,700
Retained earnings		152,964			135,284
Treasury stock, at cost: 2024: 214,161 shares, 2023: 200,690 shares		(5,797	)		(5,397	)
Accumulated other comprehensive loss		(33,121	)		(47,348	)
TOTAL STOCKHOLDERS’ EQUITY		213,508			181,070

TOTAL LIABILITIES AND
STOCKHOLDERS’ EQUITY	$	2,317,462		$	2,201,079

NORWOOD FINANCIAL CORP
Consolidated Statements of Income
(dollars in thousands, except per share data)
(unaudited)
	Three Months Ended December 31,							Twelve Months Ended December 31,
			2024				2023			2024				2023
INTEREST INCOME
Loans receivable, including fees	$		26,122		$		23,328	$		99,388		$		85,209
Securities			2,789				2,504			10,424				9,922
Other			574				253			2,768				409
Total Interest income			29,485				26,085			112,580				95,540

INTEREST EXPENSE
Deposits			10,984				8,910			42,334				26,029
Short-term borrowings			348				346			1,363				3,048
Other borrowings			1,528				1,536			6,692				4,396
Total Interest expense			12,860				10,792			50,389				33,473
NET INTEREST INCOME			16,625				15,293			62,191				62,067
PROVISION FOR CREDIT LOSSES		$	1,604			$	6,116		$	2,673			$	5,548
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES			15,021				9,177			59,518				56,519


OTHER INCOME
Service charges and fees			1,595				1,421			5,959				5,613
Income from fiduciary activities			224				210			943				898
Net realized (losses) gains on sales of securities			(19,962	)			–			(19,962	)			(209	)
Gains on sales of loans, net			50				36			195				63
Gains on sales of foreclosed real estate owned			–				66			32				80
Earnings and proceeds on life insurance policies			275				242			1,056				1,012
Other			159				148			626				667
Total other income			(17,659	)			2,123			(11,151	)			8,124

OTHER EXPENSES
Salaries and employee benefits			6,690				5,672			25,018				23,565
Occupancy, furniture and equipment			1,291				1,265			5,049				5,083
Data processing and related operations			1,312				877			4,520				3,342
Taxes, other than income			163				77			615				566
Professional fees			504				544			2,173				1,676
FDIC Insurance assessment			335				287			1,344				985
Foreclosed real estate			9				17			54				129
Amortization of intangibles			15				19			69				85
Other			3,100				2,091			9,783				8,066
Total other expenses			13,419				10,849			48,625				43,497

INCOME BEFORE TAX (BENEFIT) EXPENSE			(16,057	)			451			(258	)			21,146
INCOME TAX (BENEFIT) EXPENSE			(3,406	)			96			(98	)			4,387
NET (LOSS) INCOME	$		(12,651	)	$		355	$		(160	)	$		16,759

Basic (loss) earnings per share	$		(1.54	)	$		0.04	$		(0.02	)	$		2.08

Diluted (loss) earnings per share	$		(1.54	)	$		0.04	$		(0.02	)	$		2.07

NORWOOD FINANCIAL CORP
NET INTEREST MARGIN ANALYSIS
(dollars in thousands)

	For the Quarter Ended
	December 31, 2024								September 30, 2024								December 31, 2023
	Average						Average		Average						Average		Average						Average
	Balance			Interest			Rate		Balance			Interest			Rate		Balance			Interest			Rate
	(2)			(1)			(3)		(2)			(1)			(3)		(2)			(1)			(3)
Assets
Interest-earning assets:
Interest-bearing deposits with banks	$	46,629		$	574		4.90	%	$	36,221		$	497		5.46	%	$	18,282		$	253		5.49	%
Securities available for sale:
Taxable		404,777			2,434		2.39			392,168			2,161		2.19			403,044			2,126		2.09
Tax-exempt (1)		65,628			449		2.72			67,563			461		2.71			70,049			479		2.71
Total securities available for sale (1)		470,405			2,883		2.44			459,731			2,622		2.27			473,093			2,605		2.18
Loans receivable (1) (4) (5)		1,690,650			26,246		6.18			1,651,921			25,575		6.16			1,605,496			23,422		5.79
Total interest-earning assets		2,207,684			29,703		5.35			2,147,873			28,694		5.31			2,096,871			26,280		4.97
Non-interest earning assets:
Cash and due from banks		27,283								28,193								27,791
Allowance for credit losses		(18,741	)							(17,944	)							(16,728	)
Other assets		83,506								78,344								58,231
Total non-interest earning assets		92,048								88,593								69,294
Total Assets	$	2,299,732							$	2,236,466							$	2,166,165
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Interest-bearing demand and money market	$	528,330		$	3,017		2.27		$	461,897		$	2,782		2.40		$	463,792		$	2,059		1.76
Savings		209,362			162		0.31			221,366			13		0.02			226,809			119		0.21
Time		764,819			7,805		4.06			734,235			7,758		4.20			679,587			6,732		3.93
Total interest-bearing deposits		1,502,511			10,984		2.91			1,417,498			10,553		2.96			1,370,188			8,910		2.58
Short-term borrowings		46,267			348		2.99			53,622			323		2.40			59,836			346		2.29
Other borrowings		133,620			1,528		4.55			146,357			1,680		4.57			131,071			1,536		4.65
Total interest-bearing liabilities		1,682,398			12,860		3.04			1,617,477			12,556		3.09			1,561,095			10,792		2.74
Non-interest bearing liabilities:
Demand deposits		394,001								400,314								411,434
Other liabilities		30,352								29,540								25,316
Total non-interest bearing liabilities		424,353								429,854								436,750
Stockholders’ equity		192,981								189,135								168,320
Total Liabilities and Stockholders’ Equity	$	2,299,732							$	2,236,466							$	2,166,165
Net interest income/spread (tax equivalent basis)					16,843		2.31	%					16,138		2.23	%					15,488		2.23	%
Tax-equivalent basis adjustment					(218	)							(207	)							(195	)
Net interest income				$	16,625							$	15,931							$	15,293
Net interest margin (tax equivalent basis)							3.04	%							2.99	%							2.93	%

(1) Interest and yields are presented on a tax-equivalent basis using a marginal tax rate of 21%.
(2) Average balances have been calculated based on daily balances.
(3) Annualized
(4) Loan balances include non-accrual loans and are net of unearned income.
(5) Loan yields include the effect of amortization of deferred fees, net of costs.


	Year to Date
	December 31, 2024								September 30, 2024								December 31, 2023
	Average						Average		Average						Average		Average						Average
	Balance			Interest			Rate		Balance			Interest			Rate		Balance			Interest			Rate
	(2)			(1)			(3)		(2)			(1)			(3)		(2)			(1)			(3)
Assets
Interest-earning assets:
Interest-bearing deposits with banks	$	51,433		$	2,768		5.38	%	$	53,046		$	2,194		5.52	%	$	7,537		$	409		5.43	%
Securities available for sale:
Taxable		400,050			8,948		2.24			398,462			6,514		2.18			411,633			8,390		2.04
Tax-exempt (1)		68,041			1,868		2.75			68,852			1,419		2.75			70,598			1,940		2.75
Total securities available for sale (1)		468,091			10,816		2.31			467,314			7,933		2.27			482,231			10,330		2.14
Loans receivable (1) (4) (5)		1,646,128			99,815		6.06			1,631,179			73,569		6.02			1,565,665			85,550		5.46
Total interest-earning assets		2,165,652			113,399		5.24			2,151,539			83,696		5.20			2,055,433			96,289		4.68
Non-interest earning assets:
Cash and due from banks		26,629								26,409								26,633
Allowance for credit losses		(18,450	)							(18,353	)							(18,122	)
Other assets		76,340								73,935								64,626
Total non-interest earning assets		84,519								81,991								73,137
Total Assets	$	2,250,171							$	2,233,530							$	2,128,570
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Interest-bearing demand and money market	$	476,106		$	10,506		2.21		$	460,579		$	7,489		2.17		$	466,329		$	5,824		1.25
Savings		220,190			711		0.32			223,825			549		0.33			248,629			378		0.15
Time		744,895			31,117		4.18			738,205			23,311		4.22			610,726			19,827		3.25
Total interest-bearing deposits		1,441,191			42,334		2.94			1,422,609			31,349		2.94			1,325,684			26,029		1.96
Short-term borrowings		54,867			1,363		2.48			57,754			1,015		2.35			93,455			3,048		3.26
Other borrowings		146,195			6,692		4.58			150,418			5,165		4.59			94,931			4,396		4.63
Total interest-bearing liabilities		1,642,253			50,389		3.07			1,630,781			37,529		3.07			1,514,070			33,473		2.21
Non-interest bearing liabilities:
Demand deposits		393,616								391,479								418,631
Other liabilities		28,350								27,677								22,595
Total non-interest bearing liabilities		421,966								419,156								441,226
Stockholders’ equity		185,952								183,593								173,274
Total Liabilities and Stockholders’ Equity	$	2,250,171							$	2,233,530							$	2,128,570
Net interest income/spread (tax equivalent basis)					63,010		2.17	%					46,167		2.12	%					62,816		2.47	%
Tax-equivalent basis adjustment					(819	)							(601	)							(749	)
Net interest income				$	62,191							$	45,566							$	62,067
Net interest margin (tax equivalent basis)							2.91	%							2.87	%							3.06	%

(1) Interest and yields are presented on a tax-equivalent basis using a marginal tax rate of 21%.
(2) Average balances have been calculated based on daily balances.
(3) Annualized
(4) Loan balances include non-accrual loans and are net of unearned income.
(5) Loan yields include the effect of amortization of deferred fees, net of costs.

NORWOOD FINANCIAL CORP
Financial Highlights (Unaudited)
(dollars in thousands, except per share data)

For the Three Months Ended December 31		2024			2023

Net interest income	$	16,625		$	15,293
Net (loss) income		(12,651	)		355

Net interest spread (fully taxable equivalent)		2.31 %			2.23%
Net interest margin (fully taxable equivalent)		3.04 %			2.93%
Return on average assets		-2.19%			0.06%
Return on average equity		-26.08%			0.84%
Return on average tangible equity		-30.77%			1.01%
Basic (loss) earnings per share	$	(1.54	)	$	0.04
Diluted (loss) earnings per share	$	(1.54	)	$	0.04

For the Twelve Months Ended December 31		2024			2023

Net interest income	$	62,191		$	62,067
Net (loss) income		(160	)		16,759

Net interest spread (fully taxable equivalent)		2.17 %			2.47%
Net interest margin (fully taxable equivalent)		2.91 %			3.06%
Return on average assets		-0.01%			0.79%
Return on average equity		-0.09%			9.67%
Return on average tangible equity		-0.10%			11.66%
Basic (loss) earnings per share	$	(0.02	)	$	2.08
Diluted (loss) earnings per share	$	(0.02	)	$	2.07

As of December 31		2024			2023

Total assets	$	2,317,462		$	2,201,079
Total loans receivable		1,713,638			1,603,618
Allowance for credit losses		19,843			18,968
Total deposits		1,859,163			1,795,159
Stockholders’ equity		213,508			181,070
Trust assets under management		205,097			192,374

Book value per share	$	23.02		$	22.33
Tangible book value per share	$	19.85		$	18.69
Equity to total assets		9.21 %			8.23%
Allowance to total loans receivable		1.16 %			1.18%
Nonperforming loans to total loans		0.46 %			0.48%
Nonperforming assets to total assets		0.34 %			0.35%

NORWOOD FINANCIAL CORP
Consolidated Balance Sheets (unaudited)
(dollars in thousands)
		December 31			September 30		June 30		March 31			December 31
		2024			2024		2024		2024			2023
ASSETS
Cash and due from banks	$	27,562		$	47,072	$	29,903	$	19,519		$	28,533
Interest-bearing deposits with banks		44,777			35,808		39,492		92,444			37,587
Cash and cash equivalents		72,339			82,880		69,395		111,963			66,120

Securities available for sale		397,846			396,891		397,578		398,374			406,259
Loans receivable		1,713,638			1,675,139		1,641,356		1,621,448			1,603,618
Less: Allowance for credit losses		19,843			18,699		17,807		18,020			18,968
Net loans receivable		1,693,795			1,656,440		1,623,549		1,603,428			1,584,650
Regulatory stock, at cost		13,366			6,329		6,443		6,545			7,318
Bank owned life insurance		46,657			46,382		46,121		45,869			46,439
Bank premises and equipment, net		19,657			18,503		18,264		18,057			17,838
Foreclosed real estate owned		0			0		0		97			97
Goodwill and other intangibles		29,418			29,433		29,449		29,468			29,487
Other assets		44,384			42,893		44,517		46,622			42,871
TOTAL ASSETS	$	2,317,462		$	2,279,751	$	2,235,316	$	2,260,423		$	2,201,079

LIABILITIES
Deposits:
Non-interest bearing demand	$	381,479		$	420,967	$	391,849	$	383,362		$	399,545
Interest-bearing deposits		1,477,684			1,434,284		1,419,323		1,455,636			1,395,614
Total deposits		1,859,163			1,855,251		1,811,172		1,838,998			1,795,159
Borrowings		214,862			197,412		210,422		211,234			198,312
Other liabilities		29,929			31,434		31,534		28,978			26,538
TOTAL LIABILITIES		2,103,954			2,084,097		2,053,128		2,079,210			2,020,009

STOCKHOLDERS’ EQUITY		213,508			195,654		182,188		181,213			181,070

TOTAL LIABILITIES AND
STOCKHOLDERS’ EQUITY	$	2,317,462		$	2,279,751	$	2,235,316	$	2,260,423		$	2,201,079



NORWOOD FINANCIAL CORP
Consolidated Statements of Income (unaudited)
(dollars in thousands, except per share data)
		December 31			September 30		June 30		March 31			December 31
Three months ended		2024			2024		2024		2024			2023
INTEREST INCOME
Loans receivable, including fees	$	26,122		$	25,464	$	24,121	$	23,681		$	23,328
Securities		2,789			2,526		2,584		2,526			2,504
Other		574			497		966		731			253
Total interest income		29,485			28,487		27,671		26,938			26,085

INTEREST EXPENSE
Deposits		10,984			10,553		10,687		10,110			8,910
Borrowings		1,876			2,003		2,059		2,118			1,882
Total interest expense		12,860			12,556		12,746		12,228			10,792
NET INTEREST INCOME		16,625			15,931		14,925		14,710			15,293
PROVISION FOR (RELEASE OF) CREDIT LOSSES		1,604			1,345		347		(624	)		6,116
NET INTEREST INCOME AFTER (RELEASE OF) PROVISION
FOR CREDIT LOSSES		15,021			14,586		14,578		15,334			9,177

OTHER INCOME
Service charges and fees		1,595			1,517		1,504		1,343			1,421
Income from fiduciary activities		224			256		225		238			210
Net realized (losses) gains on sales of securities		(19,962	)		–		–		–			–
Gains on sales of loans, net		50			103		36		6			36
Gains on sales of foreclosed real estate owned		–			–		32		–			66
Earnings and proceeds on life insurance policies		275			261		253		268			242
Other		159			158		157		151			148
Total other income		(17,659	)		2,295		2,207		2,006			2,123

OTHER EXPENSES
Salaries and employee benefits		6,690			6,239		5,954		6,135			5,672
Occupancy, furniture and equipment, net		1,291			1,269		1,229		1,261			1,265
Foreclosed real estate		9			9		15		21			17
FDIC insurance assessment		335			339		309		361			287
Other		5,094			4,175		3,937		3,954			3,608
Total other expenses		13,419			12,031		11,444		11,732			10,849

INCOME BEFORE TAX (BENEFIT) EXPENSE		(16,057	)		4,850		5,341		5,608			451
INCOME TAX (BENEFIT) EXPENSE		(3,406	)		1,006		1,128		1,175			96
NET (LOSS) INCOME	$	(12,651	)	$	3,844	$	4,213	$	4,433		$	355

Basic (loss) earnings per share	$	(1.54	)	$	0.48	$	0.52	$	0.55		$	0.04

Diluted (loss) earnings per share	$	(1.54	)	$	0.48	$	0.52	$	0.55		$	0.04

Book Value per share	$	23.02		$	24.92	$	23.26	$	23.01		$	22.99
Tangible Book Value per share		19.85			21.28		19.62		19.38			19.36

Return on average assets (annualized)		-2.19	%		0.68%		0.75%		0.80%			0.06%
Return on average equity (annualized)		-26.08	%		8.09%		9.41%		9.79%			0.84%
Return on average tangible equity (annualized)		-30.77	%		9.58%		11.26%		11.68%			1.01%

Net interest spread (fte)		2.31%			2.23%		2.06%		2.06%			2.23%
Net interest margin (fte)		3.04%			2.99%		2.80%		2.79%			2.93%

Allowance for credit losses to total loans		1.16%			1.12%		1.08%		1.11%			1.18%
Net charge-offs to average loans (annualized)		0.12%			0.08%		0.13%		0.08%			0.79%
Nonperforming loans to total loans		0.46%			0.47%		0.47%		0.23%			0.48%
Nonperforming assets to total assets		0.34%			0.35%		0.34%		0.17%			0.35%

January 27, 2025 4:27 pm

Crane Company Reports Fourth Quarter 2024 Results, Initiates Full Year 2025 EPS Guidance, and Raises Annual Dividend by 12%

Crane Company Reports Fourth Quarter 2024 Results, Initiates Full Year 2025 EPS Guidance, and Raises Annual Dividend by 12%

Fourth Quarter 2024 Highlights

Earnings per diluted share (EPS) from continuing operations of $1.20, up 58%, and adjusted EPS from continuing operations of $1.26, also up 58%.
Sales of $544 million, up 12% driven by 8% core sales growth.
Core order growth up 8% and core backlog growth up 9%, driven primarily by ongoing strength at Aerospace & Electronics.
Declaring first quarter 2025 regular dividend of $0.23 per share, and raising the annual dividend by 12% to $0.92 per share.

2025 Outlook

Initiating our full year 2025 adjusted EPS outlook with a range of $5.30-$5.60 reflecting 12% growth at the midpoint compared to 2024 adjusted EPS.

STAMFORD, Conn.–(BUSINESS WIRE)–
Crane Company (“Crane,” NYSE: CR) today announced its financial results for the fourth quarter of 2024 and initiated its adjusted full-year 2025 EPS outlook. Following the completion of the Engineered Materials divestiture effective on January 1, 2025, results for the fourth quarter of 2024 and all prior periods have been recast with the Engineered Materials segment presented as discontinued operations.

Max Mitchell, Crane’s Chairman, President and Chief Executive Officer, stated: “Crane Company had an exceptional year with both segments executing at a high level. As a result, we delivered 8% core sales growth with 28% adjusted EPS growth in 2024. Further, we continued to strengthen and focus our portfolio with the acquisitions of Vian, CryoWorks and Technifab, as well as with the divestiture of our Engineered Materials segment.”

Mr. Mitchell concluded: “As we look to 2025, I remain excited about the momentum we continue to build at Crane and the performance we continue to drive within the businesses. Demand trends remain strong within Aerospace & Electronics and we continue to outperform in Process Flow Technologies even as industrial demand signals remain mixed giving us confidence as we start 2025. In setting our initial view for the year, the macro backdrop remains largely unchanged, and consistent with our customary convention, our initial 2025 adjusted EPS guidance of $5.30-$5.60 reflects what we have confidence in delivering, and reflects solid 12% adjusted EPS growth at the midpoint.”

Fourth Quarter 2024 Results

Fourth quarter 2024 GAAP EPS from continuing operations of $1.20 compared to $0.76 in the fourth quarter of 2023. Fourth quarter 2024 adjusted EPS from continuing operations of $1.26 compared to $0.80 in the fourth quarter of 2023.

Fourth quarter sales increased 12%, with 8% core sales growth, a 4% contribution from acquisitions, and a slight contribution from favorable foreign exchange. Operating profit of $86 million increased 38% compared to last year, and adjusted operating profit of $96 million increased 38% compared to last year, in both cases primarily reflecting the impact from higher volumes, productivity, and net price.

Summary of Fourth Quarter 2024 Results

	Fourth Quarter		Change
(unaudited, dollars in millions)	2024	2023	$		%
Net sales	$544	$484	$	60	12%
Core sales				37	8%
Acquisitions				22	4%
Foreign exchange				1	0%

Operating profit	$86	$62	$	24	38%
Adjusted operating profit*	$96	$70	$	26	38%

Operating profit margin	15.8%	12.9%			290bps
Adjusted operating profit margin*	17.7%	14.5%			320bps
*Please see the attached Non-GAAP Financial Measures tables

Full Year 2024 Results

Full year 2024 GAAP EPS from continuing operations of $4.60 compared to $3.06 in 2023. Full year 2024 adjusted EPS from continuing operations of $4.88 compared to $3.80 in 2023.

Sales in 2024 increased 14%, with 8% core sales growth, a 6% contribution from acquisitions, and a slight contribution from favorable foreign exchange. Operating profit of $356 million increased 42% compared to last year, and adjusted operating profit of $383 million increased 29% compared to last year, in both cases primarily reflecting the impact from higher volumes, net price and productivity.

Cash Flow, Financing Activities and Other Financial Metrics

During the fourth quarter of 2024, cash provided by operating activities from continuing operations was $202 million, capital expenditures were $14 million, and free cash flow (cash provided by operating activities less capital spending) was $188 million. Adjusted free cash flow was $193 million. For the full year, cash provided by operating activities was $258 million, capital expenditures were $37 million, and free cash flow was $221 million. Adjusted free cash flow from continuing operations was $234 million for the full year 2024. (Please see the attached non-GAAP Financial Measures tables.)

As of December 31, 2024, the Company’s cash balance was $307 million with total debt of $247 million. Subsequent to the end of the fourth quarter, on January 2, 2025, the Company received net proceeds of $208 million related to the divestiture of Engineered Materials.

Rich Maue, Crane’s Executive Vice President and Chief Financial Officer, added: “As we enter 2025, our balance sheet along with solid expected cash flow, position us well to invest in our organic growth initiatives and pursue strategic acquisitions to drive long-term value creation.”

Fourth Quarter 2024 Segment Results

All comparisons detailed in this section refer to operating results for the fourth quarter 2024 versus the fourth quarter 2023.

Aerospace & Electronics

	Fourth Quarter						Change
(unaudited, dollars in millions)		2024			2023		$		%
Net sales	$	237		$	213		$	24	11	%
Core sales								14	7	%
Acquisitions								10	4	%

Operating profit	$	53		$	43		$	10	24	%
Adjusted operating profit*	$	55		$	43		$	12	28	%

Operating profit margin		22.4	%		20.2	%			220bps
Adjusted operating profit margin*		23.1	%		20.2	%			290bps
*Please see the attached Non-GAAP Financial Measures tables

Sales of $237 million increased 11% compared to the prior year, driven by 7% core sales growth and a 4% benefit from the previously announced Vian acquisition. Operating profit margin of 22.4% increased 220 basis points from last year, primarily reflecting the impact of productivity, higher volumes, a more favorable mix, and higher price net of inflation. Adjusted operating profit margin of 23.1% increased 290 basis points from last year. Aerospace & Electronics’ order backlog was $864 million as of December 31, 2024 compared to $701 million as of December 31, 2023.

Process Flow Technologies

	Fourth Quarter						Change
(unaudited, dollars in millions)		2024			2023		$		%
Net sales	$	307		$	272		$	36	13	%
Core sales								23	9	%
Acquisitions								12	4	%
Foreign exchange								1	0	%

Operating profit	$	58		$	43		$	15	34	%
Adjusted operating profit*	$	62		$	46		$	16	36	%

Operating profit margin		19.0	%		16.0	%			300bps
Adjusted operating profit margin*		20.3	%		17.0	%			330bps

*Please see the attached Non-GAAP Financial Measures tables

Sales of $307 million increased 13% compared to the prior year, driven by 9% core sales growth and a 4% benefit from the previously announced CryoWorks and Technifab acquisitions. Operating profit margin expanded 300 basis points to 19.0% primarily due to net price, productivity, and higher volumes, partially offset by unfavorable mix. Adjusted operating profit margin expanded 330 basis points from last year to 20.3%. Process Flow Technologies order backlog was $376 million as of December 31, 2024 compared to $379 million as of December 31, 2023.

Initiating 2025 Guidance

We are initiating our full-year adjusted EPS outlook with a range of $5.30 to $5.60, up 12% at the mid-point over 2024.

Key assumptions for our guidance include:

Total sales growth of approximately 5%, driven by core sales growth of approximately 4% to 6% and an acquisition benefit of approximately 1-2%, partially offset by a 1% headwind from foreign exchange.
Adjusted segment operating margin of 22.5%+ (up from 21.9%).
Corporate cost of $80 million.
Net non-operating expense of $10 million.
Adjusted tax rate of 23.5%.
Diluted shares of ~59 million.

Additional details of our outlook and guidance are included in the presentation that accompanies this earnings release available on our website at www.craneco.com in the “investors” section.

Declaring First Quarter Dividend

Crane’s Board of Directors has declared a 12% increase in the Company’s quarterly dividend to $0.23 per share from $0.205 per share. The regular quarterly dividend of $0.23 per share for the first quarter of 2025 is payable on March 12, 2025 to shareholders of record as of February 28, 2025.

Additional Information

References to changes in “core sales” or “core growth” in this report include the change in sales excluding the impact of foreign currency translation and acquisitions and divestitures from closing up to the first anniversary of such acquisitions or divestitures.

Following the completion of the Engineered Materials divestiture effective on January 1, 2025, results for the fourth quarter of 2024 and all prior periods have been recast with the Engineered Materials segment presented as discontinued operations.

Conference Call

Crane has scheduled a conference call to discuss the fourth quarter financial results on Tuesday, January 28, 2025 at 10:00 A.M. (Eastern). All interested parties may listen to a live webcast of the call at www.craneco.com. An archived webcast will also be available to replay this conference call directly from the Company’s website under Investors, Events & Presentations. Slides that accompany the conference call will be available on the Company’s website.

About Crane Company

Crane Company has delivered innovation and technology-led solutions for customers since its founding in 1855. Today, Crane is a leading manufacturer of highly engineered components for challenging, mission-critical applications focused on the aerospace, defense, space and process industry end markets. The Company has two strategic growth platforms: Aerospace & Electronics and Process Flow Technologies. Crane has approximately 7,500 employees in the Americas, Europe, the Middle East, Asia and Australia. Crane Company is traded on the New York Stock Exchange (NYSE: CR). For more information, visit www.craneco.com.

Forward-Looking Statements Disclaimer

This press release contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements include all statements that are not historical statements of fact and those regarding our intent, belief, or expectations, including, but not limited to: benefits and synergies of the separation transaction; strategic and competitive advantages of Crane; future financing plans and opportunities; and business strategies, prospects and projected operating and financial results. We caution investors not to place undue reliance on any such forward-looking statements.

These statements are based on management’s current expectations and beliefs and are subject to a number of risks and uncertainties that could lead to actual results differing materially from those projected, forecasted or expected. Although we believe that the assumptions underlying the forward-looking statements are reasonable, we can give no assurance that our expectations will be attained.

Risks and uncertainties that could cause actual results to differ materially from our expectations include, but are not limited to: changes in global economic conditions (including inflationary pressures) and geopolitical risks, including macroeconomic fluctuations that may harm our businesses, results of operations, and cash flows; information systems and technology networks failures and breaches in data security, theft of personally identifiable and other information, non-compliance with our contractual or other legal obligations regarding such information; our ability to source components and raw materials from suppliers, including disruptions and delays in our supply chain; demand for our products, which is variable and subject to factors beyond our control; governmental regulations and failure to comply with those regulations; fluctuations in the prices of our components and raw materials; loss of personnel or being able to hire and retain additional personnel needed to sustain and grow our business as planned; risks from environmental liabilities, costs, litigation and violations that could adversely affect our financial condition, results of operations, cash flows and reputation; risks associated with conducting a substantial portion of our business outside the U.S.; being unable to identify or complete acquisitions, or to successfully integrate the businesses we acquire, or complete dispositions; adverse impacts from intangible asset impairment charges; potential product liability or warranty claims; being unable to successfully develop and introduce new products, which would limit our ability to grow and maintain our competitive position and adversely affect our financial condition, results of operations and cash flow; significant competition in our markets; additional tax expenses or exposures that could affect our financial condition, results of operations and cash flows; inadequate or ineffective internal controls; specific risks relating to our reportable segments, including Aerospace & Electronics and Process Flow Technologies; the ability and willingness of Crane Company and Crane NXT, Co. to meet and/or perform their obligations under any contractual arrangements that were entered into among the parties in connection with the separation transaction and any of their obligations to indemnify, defend and hold the other party harmless from and against various claims, litigation and liabilities; and the ability to achieve some or all the benefits that we expect to achieve from the separation transaction.

Readers should carefully review Crane’s financial statements and the notes thereto, as well as the section entitled “Risk Factors” in Item 1A of Crane’s Annual Report on Form 10-K for the year ended December 31, 2023 and the other documents Crane files from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to diﬀer materially from those contained in the forward-looking statements. Crane assumes no (and disclaims any) obligation to revise or update any forward-looking statements.

We make no representations or warranties as to the accuracy of any projections, statements or information contained in this press release. It is understood and agreed that any such projections, targets, statements and information are not to be viewed as facts and are subject to significant business, financial, economic, operating, competitive and other risks, uncertainties and contingencies many of which are beyond our control, that no assurance can be given that any particular financial projections ranges, or targets will be realized, that actual results may differ from projected results and that such differences may be material. While all financial projections, estimates and targets are necessarily speculative, we believe that the preparation of prospective financial information involves increasingly higher levels of uncertainty the further out the projection, estimate or target extends from the date of preparation. The assumptions and estimates underlying the projected, expected or target results are inherently uncertain and are subject to a wide variety of significant business, economic and competitive risks and uncertainties that could cause actual results to diﬀer materially from those contained in the financial projections, estimates and targets. The inclusion of financial projections, estimates and targets in this press release should not be regarded as an indication that we or our representatives, considered or consider the financial projections, estimates and targets to be a reliable prediction of future events.

(Financial Tables Follow)

Source: Crane Company

CRANE COMPANY Condensed Statements of Operations Data (unaudited, in millions, except per share data)

	Three Months Ended December 31,						Twelve Months Ended December 31,
		2024			2023			2024			2023
Net sales:
Aerospace & Electronics	$	236.8		$	212.8		$	932.7		$	789.3
Process Flow Technologies		307.3			271.5			1,198.5			1,072.8
Total net sales	$	544.1		$	484.3		$	2,131.2		$	1,862.1

Operating profit:
Aerospace & Electronics	$	53.1		$	42.9		$	209.0		$	159.0
Process Flow Technologies		58.4			43.4			240.3			208.5
Corporate		(25.3	)		(23.9	)		(93.5	)		(117.1	)
Total operating profit	$	86.2		$	62.4		$	355.8		$	250.4

Interest income	$	1.5		$	1.9		$	5.5			5.1
Interest expense		(5.3	)		(6.0	)		(27.2	)		(22.7	)
Miscellaneous income, net		3.5			1.4			4.4			0.3
Income from continuing operations before income taxes		85.9			59.7			338.5			233.1
Provision for income taxes		15.6			16.1			70.3			57.2
Net income from continuing operations attributable to common shareholders		70.3			43.6			268.2			175.9
Income from discontinued operations, net of tax		10.7			5.8			26.5			80.0
Net income attributable to common shareholders	$	81.0		$	49.4		$	294.7		$	255.9

Earnings per diluted share from continuing operations	$	1.20		$	0.76		$	4.60		$	3.06
Earnings per diluted share from discontinued operations		0.18			0.10			0.45			1.39
Earnings per diluted share	$	1.38		$	0.86		$	5.05		$	4.45

Average diluted shares outstanding		58.4			57.6			58.3			57.5
Average basic shares outstanding		57.3			56.9			57.2			56.7

Supplemental data:
Cost of sales	$	321.6		$	300.4		$	1,263.4		$	1,111.1
Selling, general & administrative		136.3			121.5			512.0			500.6
Transaction related expenses^(a)		7.4			6.3			23.7			42.8
Repositioning related charges, net^(a)		2.8			1.4			3.5			3.8
Depreciation and amortization^(a)		13.5			10.0			51.0			35.4
Stock-based compensation expense ^(a)		7.2			4.2			25.6			25.8

^(a)Amounts included within Cost of sales and/or Selling, general & administrative costs.

CRANE COMPANY Condensed Balance Sheets (unaudited, in millions)

	December 31, 2024		December 31, 2023

Assets
Current assets
Cash and cash equivalents	$	306.7	$	329.6
Accounts receivable, net		339.1		297.7
Inventories, net		380.4		343.9
Other current assets		135.8		100.3
Current assets held for sale		217.9		19.3
Total current assets		1,379.9		1,090.8

Property, plant and equipment, net		261.3		244.5
Other assets		315.9		240.8
Goodwill		661.6		576.4
Long-term assets held for sale		—		198.9
Total assets	$	2,618.7	$	2,351.4

Liabilities and Equity
Current liabilities
Accounts payable	$	188.2	$	156.9
Accrued liabilities		279.9		260.5
Income taxes		7.9		14.3
Current liabilities held for sale		44.1		35.4
Total current liabilities		520.1		467.1

Long-term debt		247.0		248.5
Long-term deferred tax liability		34.8		36.1
Other liabilities		175.8		220.2
Long-term liabilities held for sale		—		19.2
Total liabilities		977.7		991.1
Total equity		1,641.0		1,360.3
Total liabilities and equity	$	2,618.7	$	2,351.4

CRANE COMPANY Condensed Statements of Cash Flows (unaudited, in millions)

	Three Months Ended December 31,						Twelve Months Ended December 31,
		2024			2023			2024			2023
Operating activities:
Net income attributable to common shareholders	$	81.0		$	49.4		$	294.7		$	255.9
Less: Income from discontinued operations, net of tax		10.7			5.8			26.5			80.0
Net income from continuing operations attributable to common shareholders		70.3			43.6			268.2			175.9
Depreciation and amortization		13.5			10.0			51.0			35.4
Stock-based compensation expense		7.2			4.2			25.6			25.8
Defined benefit plans and postretirement cost		1.0			1.9			3.5			8.9
Deferred income taxes		(8.5	)		(19.4	)		(11.6	)		(18.8	)
Cash provided by (used for) operating working capital		125.2			100.6			(51.8	)		(51.3	)
Defined benefit plans and postretirement contributions		(0.6	)		(2.2	)		(17.1	)		(18.3	)
Environmental payments, net of reimbursements		(0.7	)		(0.9	)		(4.2	)		(3.9	)
Other		(5.4	)		4.1			(5.8	)		8.4
Total provided by operating activities from continuing operations		202.0			141.9			257.8			162.1
Investing activities:
Payment for acquisitions – net of cash acquired and working capital adjustments		(38.8	)		(90.5	)		(200.5	)		(90.5	)
Capital expenditures		(13.8	)		(11.6	)		(36.6	)		(39.0	)
Proceeds from insurance recoveries for damaged property, plant and equipment		1.0			—			1.0			—
Other investing activities		0.5			0.1			6.1			0.7
Total used for investing activities from continuing operations		(51.1	)		(102.0	)		(230.0	)		(128.8	)
Financing activities:
Dividends paid		(11.8	)		(10.3	)		(46.9	)		(57.3	)
Net proceeds (payments) related to employee stock plans		2.6			6.1			(0.9	)		21.8
Debt issuance costs		—			(1.5	)		—			(9.0	)
Proceeds from debt		—			—			190.0			300.0
Proceeds from term facility of discontinued operations		—			—			—			350.0
Repayments of debt		(85.0	)		(1.8	)		(191.9	)		(450.6	)
Distribution of Crane NXT, Co.		—			—			—			(578.1	)
Total used for financing activities from continuing and discontinued operations		(94.2	)		(7.5	)		(49.7	)		(423.2	)
Discontinued operations:
Total provided by operating activities		7.0			17.8			15.0			66.1
Total used for investing activities		(0.5	)		(1.4	)		(3.2	)		(7.8	)
Increase in cash and cash equivalents from discontinued operations		6.5			16.4			11.8			58.3
Effect of exchange rate on cash and cash equivalents		(13.2	)		7.0			(11.3	)		3.6
Increase (decrease) in cash and cash equivalents		50.0			55.8			(21.4	)		(328.0	)
Cash and cash equivalents at beginning of period ^(a)		258.2			273.8			329.6			657.6
Cash and cash equivalents at end of period	$	308.2		$	329.6		$	308.2		$	329.6
Less: Cash and cash equivalents of discontinued operations		1.5			—			1.5			—
Cash and cash equivalents of continuing operations at end of period	$	306.7		$	329.6		$	306.7		$	329.6
^(a) 2023 Includes cash and cash equivalents of discontinued operations.

CRANE COMPANY Order Backlog (unaudited, in millions)

	December 31,		September 30,		June 30,		March 31,		December 31,
		2024		2024		2024		2024		2023
Aerospace & Electronics^(a)	$	863.8	$	833.3	$	814.9	$	791.8	$	700.9
Process Flow Technologies^{(b) (c)}		376.4		392.0		399.9		393.3		379.0
Total backlog	$	1,240.2	$	1,225.3	$	1,214.8	$	1,185.1	$	1,079.9
^(a)Includes $52.3 million, $59.1 million, $62.3 million and $53.5 million of backlog as of December 31, 2024, September 30, 2024, June 30, 2024 and March 31, 2024, respectively, pertaining to the Vian acquisition. ^(b)Includes $11.2 million, $12.8 million, $11.6 million of backlog as of December 31, 2024, September 30,2024 and June 30, 2024, respectively, pertaining to the CryoWorks acquisition. ^(c)Includes $10.4 million of backlog as of December 31, 2024, pertaining to the Technifab acquisition.

CRANE COMPANY Non-GAAP Financial Measures (unaudited, in millions, except per share data)

	Three Months Ended December 31,
	2024						2023						% Change
	$			Per Share			$			Per Share			(on $)
Net sales (GAAP)	$	544.1					$	484.3					12.3	%

Adjusted Operating Profit and Adjusted Operating Profit Margin
Operating profit (GAAP)	$	86.2					$	62.4					38.1	%
Operating profit margin (GAAP)		15.8	%					12.9	%

Special items impacting operating profit:
Transaction related expenses^(a)(b)		7.4						6.3
Repositioning related charges, net		2.8						1.4
Adjusted operating profit (Non-GAAP)	$	96.4					$	70.1					37.5	%
Adjusted operating profit margin (Non-GAAP)		17.7	%					14.5	%

Adjusted Net Income and Adjusted Net Income per Share
Net income from continuing operations attributable to common shareholders (GAAP)	$	70.3		$	1.20		$	43.6		$	0.76		61.2	%
Transaction related expenses^(a)(b)		2.9			0.05			3.1			0.05
Repositioning related charges, net		2.8			0.05			1.4			0.02
Impact of pension non-service costs		—			—			1.5			0.03
Tax effect of the Non-GAAP adjustments		(2.3	)		(0.04	)		(3.6	)		(0.06	)
Adjusted net income (Non-GAAP)	$	73.7		$	1.26		$	46.0		$	0.80		60.2	%

Adjusted EBITDA and Adjusted EBITDA Margin
Net income from continuing operations attributable to common shareholders (GAAP)	$	70.3					$	43.6					61.2	%
Net income margin (GAAP)		12.9	%					9.0	%

Adjustments to net income:
Interest expense, net		3.8						4.1
Income tax expense		15.6						16.1
Depreciation		8.7						8.0
Amortization		4.8						2.0
Miscellaneous income, net		(3.5	)					(1.4	)
Repositioning related charges, net		2.8						1.4
Transaction related expenses^(a)(b)		5.4						6.0
Adjusted EBITDA (Non-GAAP)	$	107.9					$	79.8					35.2	%
Adjusted EBITDA Margin (Non-GAAP)		19.8	%					16.5	%

^(a)2024 transaction-related expenses are primarily associated with the Technifab acquisition and the divestiture of the Engineered Materials business.
^(b)2023 transaction-related expenses are primarily associated with the separation and the Baum acquisition.
Totals may not sum due to rounding

CRANE COMPANY Non-GAAP Financial Measures (in millions, except per share data)

	Twelve Months Ended December 31,
	2024						2023						% Change
	$			Per Share			$			Per Share			(on $)
Net sales (GAAP)	$	2,131.2					$	1,862.1					14.5	%

Adjusted Operating Profit and Adjusted Operating Profit Margin
Operating profit (GAAP)	$	355.8					$	250.4					42.1	%
Operating profit margin (GAAP)		16.7	%					13.4	%

Special items impacting operating profit:
Transaction related expenses^(a)(b)		23.7						42.8
Repositioning related charges, net		3.5						3.8
Adjusted operating profit (Non-GAAP)	$	383.0					$	297.0					29.0	%
Adjusted operating profit margin (Non-GAAP)		18.0	%					15.9	%

Adjusted Net Income and Adjusted Net Income per Share
Net income from continuing operations attributable to common shareholders (GAAP)	$	268.2		$	4.60		$	175.9		$	3.06		52.5	%

Transaction related expenses^(a)(b)		18.7			0.32			39.6			0.69
Repositioning related charges, net		3.5			0.06			3.8			0.06
Impact of pension non-service costs		—			—			4.0			0.07
Interest expense		—			—			5.9			0.10
Tax effect of the Non-GAAP adjustments		(6.0	)		(0.10	)		(10.6	)		(0.18	)
Adjusted net income (Non-GAAP)	$	284.4		$	4.88		$	218.6		$	3.80		30.1	%

Adjusted EBITDA and Adjusted EBITDA Margin
Net income from continuing operations attributable to common shareholders (GAAP)	$	268.2					$	175.9					52.5	%
Net income margin (GAAP)		12.6	%					9.4	%

Adjustments to net income:
Interest expense, net		21.7						17.6
Income tax expense		70.3						57.2
Depreciation		33.4						29.3
Amortization		17.6						6.1
Miscellaneous income, net		(4.4	)					(0.3	)
Repositioning related charges, net		3.5						3.8
Transaction related expenses^(a)(b)		16.4						42.5
Adjusted EBITDA (Non-GAAP)	$	426.7					$	332.1					28.5	%
Adjusted EBITDA Margin (Non-GAAP)		20.0	%					17.8	%

^(a)2024 transaction-related expenses are primarily associated with the Vian, CryoWorks, and Technifab acquisitions and the divestiture of the Engineered Materials business.
^(b)2023 transaction-related expenses are primarily associated with the separation and the Baum acquisition.
Totals may not sum due to rounding

CRANE COMPANY Non-GAAP Financial Measures by Segment (unaudited, in millions)

Three Months Ended December 31, 2024	Aerospace & Electronics			Process Flow Technologies			Corporate			Total Company
Net sales	$	236.8		$	307.3		$	—		$	544.1

Operating profit (GAAP)	$	53.1		$	58.4		$	(25.3	)	$	86.2
Operating profit margin (GAAP)		22.4	%		19.0	%					15.8	%

Special items impacting operating profit:
Transaction related expenses^(a)		1.3			1.8			4.3			7.4
Repositioning related charges, net		0.3			2.3			0.2			2.8
Adjusted operating profit (Non-GAAP)	$	54.7		$	62.5		$	(20.8	)	$	96.4
Adjusted operating profit margin (Non-GAAP)		23.1	%		20.3	%					17.7	%

Three Months Ended December 31, 2023
Net sales	$	212.8		$	271.5		$	—		$	484.3

Operating profit (GAAP)	$	42.9		$	43.4		$	(23.9	)	$	62.4
Operating profit margin (GAAP)		20.2	%		16.0	%					12.9	%

Special items impacting operating profit:
Transaction related expenses^(b)		—			1.3			5.0		$	6.3
Repositioning related charges, net		—			1.4			—		$	1.4
Adjusted operating profit (Non-GAAP)	$	42.9		$	46.1		$	(18.9	)	$	70.1
Adjusted operating profit margin (Non-GAAP)		20.2	%		17.0	%					14.5	%
^(a)2024 transaction-related expenses are primarily associated with the Technifab acquisition and the divestiture of the Engineered Materials business.
^(b)2023 transaction-related expenses are primarily associated with the separation and the Baum acquisition.
Totals may not sum due to rounding

CRANE COMPANY Non-GAAP Financial Measures by Segment (in millions)

Twelve Months Ended December 31, 2024	Aerospace & Electronics			Process Flow Technologies			Corporate			Total Company
Net sales	$	932.7		$	1,198.5		$	—		$	2,131.2

Operating profit (GAAP)	$	209.0		$	240.3		$	(93.5	)	$	355.8
Operating profit margin (GAAP)		22.4	%		20.1	%					16.7	%

Special items impacting operating profit:
Transaction related expenses^(a)		7.3			6.6			9.8			23.7
Repositioning related charges , net		0.3			3.0			0.2			3.5
Adjusted operating profit (Non-GAAP)	$	216.6		$	249.9		$	(83.5	)	$	383.0
Adjusted operating profit margin (Non-GAAP)		23.2	%		20.9	%					18.0	%

Twelve Months Ended December 31, 2023
Net sales	$	789.3		$	1,072.8		$	—		$	1,862.1

Operating profit (GAAP)	$	159.0		$	208.5		$	(117.1	)	$	250.4
Operating profit margin (GAAP)		20.1	%		19.4	%					13.4	%

Special items impacting operating profit:
Transaction related expenses^(b)		—			1.3			41.5			42.8
Repositioning related charges, net		—			3.8			—			3.8
Adjusted operating profit (Non-GAAP)	$	159.0		$	213.6		$	(75.6	)	$	297.0
Adjusted operating profit margin (Non-GAAP)		20.1	%		19.9	%					15.9	%
^(a)2024 transaction-related expenses are primarily associated with the Vian, CryoWorks, and Technifab acquisitions and the divestiture of the Engineered Materials business.
^(b)2023 transaction-related expenses are primarily associated with the separation and the Baum acquisition.
Totals may not sum due to rounding

CRANE COMPANY Adjusted Free Cash Flow (unaudited, in millions, except per share data)

	Three Months Ended December 31,						Twelve Months Ended December 31,
Cash Flow Items		2024			2023			2024			2023
Cash provided by operating activities from continuing operations	$	202.0		$	141.9		$	257.8		$	162.1
Less: Capital expenditures		(13.8	)		(11.6	)		(36.6	)		(39.0	)
Free cash flow	$	188.2		$	130.3		$	221.2		$	123.1
Adjustments:
Transaction-related expenses		3.9			5.0			11.4			41.5
Proceeds from insurance recoveries for damaged property, plant and equipment		1.0			—			1.0			—
Adjusted free cash flow from continuing operations	$	193.1		$	135.3		$	233.6		$	164.6
Free cash flow from Engineered Materials		6.5			16.4			11.8			27.8
Adjusted free cash flow	$	199.6		$	151.7		$	245.4		$	192.4

Crane Company reports its financial results in accordance with U.S. generally accepted accounting principles (“GAAP”). This press release includes certain non-GAAP financial measures, including adjusted operating profit, adjusted operating profit margin, adjusted net income, adjusted EPS, adjusted EBITDA, Free Cash Flow and Adjusted Free Cash Flow, that are not prepared in accordance with GAAP. These non-GAAP measures are an addition, and not a substitute for or superior to, measures of financial performance prepared in accordance with GAAP and should not be considered as an alternative to operating income, net income or any other performance measures derived in accordance with GAAP. We believe that these non-GAAP measures of financial results (including on a forward-looking or projected basis) provide useful supplemental information to investors about Crane Company. Our management uses certain forward looking non-GAAP measures to evaluate projected financial and operating results. However, there are a number of limitations related to the use of these non-GAAP measures and their nearest GAAP equivalents. For example, other companies may calculate non-GAAP measures differently or may use other measures to calculate their financial performance, and therefore our non-GAAP measures may not be directly comparable to similarly titled measures of other companies.

Reconciliations of certain forward-looking and projected non-GAAP measures for Crane Company, including Adjusted EPS, and Adjusted segment margin to the closest corresponding GAAP measure are not available without unreasonable efforts due to the high variability, complexity and low visibility with respect to the charges excluded from these non-GAAP measures, which could have a potentially significant impact on our future GAAP results. For Crane Company, these forward looking and projected non-GAAP measures are calculated as follows:

“Adjusted operating margin” is calculated as adjusted operating profit divided by sales. Adjusted operating profit is calculated as operating profit before Special Items which include transaction related expenses such as professional fees, and incremental costs related to the separation; and repositioning related charges. We believe that non-GAAP financial measures that exclude these items provide investors with an alternative metric that can assist in predicting future earnings and profitability that are complementary to GAAP metrics.

“Adjusted EPS” is calculated as adjusted net income divided by diluted shares. Adjusted net income is calculated as net income adjusted for Special Items which include transaction related expenses such as professional fees, and incremental costs related to the separation; repositioning related charges; and, the impact of pension non-service costs. We believe that non-GAAP financial measures adjusted for these items provide investors with an alternative metric that can assist in predicting future earnings and profitability that are complementary to GAAP metrics.

We believe that each of the following non-GAAP measures provides useful information to investors regarding the Company’s financial conditions and operations:

“Adjusted Operating Profit” and “Adjusted Operating Profit Margin” add back to Operating Profit items which are outside of our core performance, some of which may or may not be non-recurring, and which we believe may complicate the interpretation of the Company’s underlying earnings and operational performance. These items include income and expense such as: transaction related expenses and repositioning related (gains) charges. These items are not incurred in all periods, the size of these items is difficult to predict, and none of these items are indicative of the operations of the underlying businesses. We believe that non-GAAP financial measures that exclude these items provide investors with an alternative metric that can assist in predicting future earnings and profitability that are complementary to GAAP metrics.

“Adjusted Net Income” and “Adjusted EPS” exclude items which are outside of our core performance, some of which may or may not be non-recurring, and which we believe may complicate the presentation of the Company’s underlying earnings and operational performance. These measures include income and expense items that impacted Operating Profit such as: transaction related expenses and repositioning related (gains) charges. Additionally, these non-GAAP financial measures exclude income and expense items that impacted Net Income and Earnings per Diluted Share such as the impact of pension non-service costs. These items are not incurred in all periods, the size of these items is difficult to predict, and none of these items are indicative of the operations of the underlying businesses. We believe that non-GAAP financial measures that exclude these items provide investors with an alternative metric that can assist in predicting future earnings and profitability that are complementary to GAAP metrics.

“Adjusted EBITDA” adds back to net income: net interest expense, income tax expense, depreciation and amortization, miscellaneous (income) expense, net, and Special Items including transaction related expenses. “Adjusted EBITDA Margin” is calculated as adjusted EBITDA divided by net sales. We believe that adjusted EBITDA and adjusted EBITDA margin provide investors with an alternative metric that may be a meaningful indicator of our performance and provides useful information to investors regarding our financial conditions and results of operations that is complementary to GAAP metrics.

“Free Cash Flow” and “Adjusted Free Cash Flow” provide supplemental information to assist management and investors in analyzing the Company’s ability to generate liquidity from its operating activities. The measure of free cash flow does not take into consideration certain other non-discretionary cash requirements such as, for example, mandatory principal payments on the Company’s long-term debt. Free Cash Flow is calculated as cash provided by operating activities less capital spending. Adjusted Free Cash Flow is calculated as Free Cash Flow adjusted for certain cash items which we believe may complicate the interpretation of the Company’s underlying free cash flow performance such as certain transaction related cash flow items related to acquisitions, the separation transaction, and insurance proceeds related to damaged property, plant and equipment caused by natural disasters and including Free Cash Flow from Engineered Materials. These items are not incurred in all periods, the size of these items is difficult to predict, and none of these items are indicative of the operations of the underlying businesses. We believe that non-GAAP financial measures that exclude these items provide investors with an alternative metric that can assist in predicting future cash flows that are complementary to GAAP metrics.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250127136917/en/

Jason D. Feldman

Senior Vice President, Investor Relations, Treasury & Tax

Allison Poliniak-Cusic

Vice President, Investor Relations

[email protected]

www.craneco.com

KEYWORDS: Connecticut United States North America

INDUSTRY KEYWORDS: Other Energy Oil/Gas Other Manufacturing Energy Engineering Aerospace Nuclear Manufacturing

MEDIA:

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January 27, 2025 4:27 pm

Park National Corporation reports 2024 results

NEWARK, Ohio, Jan. 27, 2025 (GLOBE NEWSWIRE) — Park National Corporation (Park) (NYSE American: PRK) today reported financial results for the fourth quarter and full year of 2024. Park’s board of directors declared a quarterly cash dividend of $1.07 per common share, payable on March 10, 2025, to common shareholders of record as of February 14, 2025.

“Our consistent and measured growth stems from our team’s absolute focus on meeting customer needs to produce meaningful results,” said Park Chairman and Chief Executive Officer David Trautman. “Helping customers flourish remains our primary goal.”

Park’s net income for the fourth quarter of 2024 was $38.6 million, a 57.7 percent increase from $24.5 million for the fourth quarter of 2023. Fourth quarter 2024 net income per diluted common share was $2.37, compared to $1.51 for the fourth quarter of 2023. Park’s net income for the full year of 2024 was $151.4 million, a 19.5 percent increase from $126.7 million for the full year of 2023. Net income per diluted common share for the full year of 2024 was $9.32 compared to $7.80 for the full year of 2023.

Park’s total loans increased 4.6 percent during 2024. Park’s total deposits increased 1.3 percent during 2024, with an increase of 2.7 percent including off balance sheet deposits. The combination of solid loan growth and steady deposits contributed to Park’s success in 2024.

“As we enter the new year, we look forward to the opportunity to deepen relationships with our customers, communities and all stakeholders,” said Park President Matthew Miller. “Our bankers are dedicated to helping all those we serve achieve their financial goals and thrive in 2025.”

Headquartered in Newark, Ohio, Park National Corporation has $9.8 billion in total assets (as of December 31, 2024). Park’s banking operations are conducted through its subsidiary The Park National Bank. Other Park subsidiaries are Scope Leasing, Inc. (d.b.a. Scope Aircraft Finance), Guardian Financial Services Company (d.b.a. Guardian Finance Company) and SE Property Holdings, LLC.

Complete financial tables are listed below.

Category: Earnings

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

Park cautions that any forward-looking statements contained in this news release or made by management of Park are provided to assist in the understanding of anticipated future financial performance. Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance. The forward-looking statements are based on management’s expectations and are subject to a number of risks and uncertainties, including those described in Park’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, as updated by our filings with the SEC. Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements.

Risks and uncertainties that could cause actual results to differ materially include, without limitation: (1) Park’s ability to execute our business plan successfully and within the expected timeframe; (2) adverse changes in future economic and financial market conditions; (3) adverse changes in real estate values and liquidity in our primary market areas; (4) the financial health of our commercial borrowers; (5) adverse changes in federal, state and local governmental law and policy, including the regulatory landscape, capital markets, elevated government debt, potential changes in tax legislation, government shutdown, infrastructure spending and social programs; (6) changes in consumer spending, borrowing and saving habits; (7) our litigation and regulatory compliance exposure; (8) increased credit risk and higher credit losses resulting from loan concentrations; (9) competitive pressures among financial services organizations; (10) changes in accounting policies and practices as may be adopted by regulatory agencies; (11) Park’s assumptions and estimates used in applying critical accounting policies and modeling which may prove unreliable, inaccurate or not predictive of actual results; (12) Park’s ability to anticipate and respond to technological changes and Park’s reliance on, and the potential failure of, a number of third-party vendors to perform as expected; (13) failures in or breaches of Park’s operational or security systems or infrastructure, or those of our third-party vendors and other service providers; (14) negative impacts on financial markets and the economy of any changes in the credit ratings of the U.S. Treasury obligations and other U.S. government-backed debt, as well as issues surrounding the levels of U.S., European and Asian government debt and concerns regarding the growth rates and financial stability of certain sovereign governments, supranationals and financial institutions in Europe and Asia; (15) effects of a fall in stock market prices on Park’s asset and wealth management businesses; (16) continued availability of earnings and excess capital sufficient for the lawful and prudent declaration of dividends; (17) the impact on Park’s business, personnel, facilities or systems of losses related to acts of fraud, scams and schemes of third parties; (18) the impact of widespread natural and other disasters, pandemics, dislocations, regional or national protests and civil unrest (including any resulting branch closures or damages), military or terrorist activities or international hostilities on the economy and financial markets generally and on us or our counterparties specifically; (19) the potential further deterioration of the U.S. economy due to financial, political, or other shocks; (20) the effect of healthcare laws in the U.S. and potential changes for such laws that may increase our healthcare and other costs and negatively impact our operations and financial results; (21) the impact of larger or similar-sized financial institutions encountering problems that may adversely affect the banking industry; and (22) other risk factors relating to the financial services industry.

Park does not undertake, and specifically disclaims any obligation, to publicly release the results of any revisions that may be made to update any forward-looking statement to reflect the events or circumstances after the date on which the forward-looking statement was made, or reflect the occurrence of unanticipated events, except to the extent required by law.


PARK NATIONAL CORPORATION
Financial Highlights
As of or for the three months ended December 31, 2024, September 30, 2024 and December 31, 2023

		2024			2024			2023		Percent change vs.
*(in thousands, except common share and per common share data and ratios)*	4th QTR			3rd QTR			4th QTR			3Q ’24			4Q ’23
INCOME STATEMENT:
Net interest income	$	103,445		$	101,114		$	95,074		2.3		%	8.8		%
Provision for credit losses		3,935			5,315			1,809		(26.0	)	%	117.5		%
Other income		31,064			36,530			15,519		(15.0	)	%	100.2		%
Other expense		83,241			85,681			79,043		(2.8	)	%	5.3		%
Income before income taxes	$	47,333		$	46,648		$	29,741		1.5		%	59.2		%
Income taxes		8,703			8,431			5,241		3.2		%	66.1		%
Net income	$	38,630		$	38,217		$	24,500		1.1		%	57.7		%

MARKET DATA:
Earnings per common share – basic (a)	$	2.39		$	2.37		$	1.52		0.8		%	57.2		%
Earnings per common share – diluted (a)		2.37			2.35			1.51		0.9		%	57.0		%
Quarterly cash dividend declared per common share		1.06			1.06			1.05		—		%	1.0		%
Special cash dividend declared per common share		0.50			—			—		N.M.			N.M.
Book value per common share at period end		76.98			76.74			71.06		0.3		%	8.3		%
Market price per common share at period end		171.43			167.98			132.86		2.1		%	29.0		%
Market capitalization at period end		2,770,134			2,713,152			2,141,235		2.1		%	29.4		%

Weighted average common shares – basic (b)		16,156,827			16,151,640			16,113,215		—		%	0.3		%
Weighted average common shares – diluted (b)		16,283,701			16,264,393			16,216,562		0.1		%	0.4		%
Common shares outstanding at period end		16,158,982			16,151,640			16,116,479		—		%	0.3		%

PERFORMANCE RATIOS: (annualized)
Return on average assets (a)(b)		1.54	%		1.53	%		0.98	%	0.7		%	57.1		%
Return on average shareholders’ equity (a)(b)		12.32	%		12.56	%		8.81	%	(1.9	)	%	39.8		%
Yield on loans		6.21	%		6.24	%		5.84	%	(0.5	)	%	6.3		%
Yield on investment securities		3.46	%		3.74	%		3.88	%	(7.5	)	%	(10.8	)	%
Yield on money market instruments		4.75	%		5.38	%		5.30	%	(11.7	)	%	(10.4	)	%
Yield on interest earning assets		5.82	%		5.88	%		5.48	%	(1.0	)	%	6.2		%
Cost of interest bearing deposits		1.90	%		2.06	%		1.84	%	(7.8	)	%	3.3		%
Cost of borrowings		3.86	%		3.97	%		4.42	%	(2.8	)	%	(12.7	)	%
Cost of paying interest bearing liabilities		1.99	%		2.15	%		2.01	%	(7.4	)	%	(1.0	)	%
Net interest margin (g)		4.51	%		4.45	%		4.17	%	1.3		%	8.2		%
Efficiency ratio (g)		61.60	%		61.98	%		70.93	%	(0.6	)	%	(13.2	)	%

OTHER DATA (NON-GAAP) AND BALANCE SHEET INFORMATION:
Tangible book value per common share (d)	$	66.89		$	66.62		$	60.87		0.4		%	9.9		%
Average interest earning assets		9,176,540			9,100,594			9,120,407		0.8		%	0.6		%
Pre-tax, pre-provision net income (j)		51,268			51,963			31,550		(1.3	)	%	62.5		%

Note: Explanations for footnotes (a) – (k) are included at the end of the financial tables in the “Financial Reconciliations” section.


PARK NATIONAL CORPORATION
Financial Highlights (continued)
As of or for the three months ended December 31, 2024, September 30, 2024 and December 31, 2023

										Percent change vs.
*(in thousands, except ratios)*	December 31, 2024			September 30, 2024			December 31, 2023			3Q ’24			4Q ’23
BALANCE SHEET:
Investment securities	$	1,100,861		$	1,233,297		$	1,429,144		(10.7	)	%	(23.0	)	%
Loans		7,817,128			7,730,984			7,476,221		1.1		%	4.6		%
Allowance for credit losses		87,966			87,237			83,745		0.8		%	5.0		%
Goodwill and other intangible assets		163,032			163,320			164,247		(0.2	)	%	(0.7	)	%
Other real estate owned (OREO)		938			1,119			983		(16.2	)	%	(4.6	)	%
Total assets		9,805,350			9,903,049			9,836,453		(1.0	)	%	(0.3	)	%
Total deposits		8,143,526			8,214,671			8,042,566		(0.9	)	%	1.3		%
Borrowings		280,083			306,964			517,329		(8.8	)	%	(45.9	)	%
Total shareholders’ equity		1,243,848			1,239,413			1,145,293		0.4		%	8.6		%
Tangible equity (d)		1,080,816			1,076,093			981,046		0.4		%	10.2		%
Total nonperforming loans		69,932			71,541			61,118		(2.2	)	%	14.4		%
Total nonperforming assets		70,870			72,660			62,101		(2.5	)	%	14.1		%

ASSET QUALITY RATIOS:
Loans as a % of period end total assets		79.72	%		78.07	%		76.01	%	2.1		%	4.9		%
Total nonperforming loans as a % of period end loans		0.89	%		0.93	%		0.82	%	(4.3	)	%	8.5		%
Total nonperforming assets as a % of period end loans + OREO + other nonperforming assets		0.91	%		0.94	%		0.83	%	(3.2	)	%	9.6		%
Allowance for credit losses as a % of period end loans		1.13	%		1.13	%		1.12	%	—		%	0.9		%
Net loan charge-offs	$	3,206		$	4,653		$	2,666		(31.1	)	%	20.3		%
Annualized net loan charge-offs as a % of average loans (b)		0.16	%		0.24	%		0.14	%	(33.3	)	%	14.3		%

CAPITAL & LIQUIDITY:
Total shareholders’ equity / Period end total assets		12.69	%		12.52	%		11.64	%	1.4		%	9.0		%
Tangible equity (d) / Tangible assets (f)		11.21	%		11.05	%		10.14	%	1.4		%	10.6		%
Average shareholders’ equity / Average assets (b)		12.47	%		12.20	%		11.16	%	2.2		%	11.7		%
Average shareholders’ equity / Average loans (b)		16.08	%		15.76	%		14.94	%	2.0		%	7.6		%
Average loans / Average deposits (b)		93.00	%		92.69	%		89.48	%	0.3		%	3.9		%

Note: Explanations for footnotes (a) – (k) are included at the end of the financial tables in the “Financial Reconciliations” section.


PARK NATIONAL CORPORATION
Financial Highlights
Year months ended December 31, 2024 and December 31, 2023

*(in thousands, except common share and per common share data and ratios)*		2024			2023		Percent change vs ’23
INCOME STATEMENT:
Net interest income	$	398,019		$	373,113		6.7		%
Provision for credit losses		14,543			2,904		400.8		%
Other income		122,588			92,634		32.3		%
Other expense		321,339			309,239		3.9		%
Income before income taxes	$	184,725		$	153,604		20.3		%
Income taxes		33,305			26,870		23.9		%
Net income	$	151,420		$	126,734		19.5		%

MARKET DATA:
Earnings per common share – basic (a)	$	9.38		$	7.84		19.6		%
Earnings per common share – diluted (a)		9.32			7.80		19.5		%
Quarterly cash dividend declared per common share		4.24			4.20		1.0		%
Special cash dividend declared per common share		0.50			—		N.M.

Weighted average common shares – basic (b)		16,143,708			16,163,500		(0.1	)	%
Weighted average common shares – diluted (b)		16,244,797			16,250,019		—		%

PERFORMANCE RATIOS:
Return on average assets (a)(b)		1.53	%		1.27	%	20.5		%
Return on average shareholders’ equity (a)(b)		12.65	%		11.55	%	9.5		%
Yield on loans		6.14	%		5.55	%	10.6		%
Yield on investment securities		3.74	%		3.73	%	0.3		%
Yield on money market instruments		5.16	%		5.00	%	3.2		%
Yield on interest earning assets		5.78	%		5.18	%	11.6		%
Cost of interest bearing deposits		1.97	%		1.52	%	29.6		%
Cost of borrowings		4.05	%		3.79	%	6.9		%
Cost of paying interest bearing liabilities		2.08	%		1.67	%	24.6		%
Net interest margin (g)		4.41	%		4.11	%	7.3		%
Efficiency ratio (g)		61.44	%		65.87	%	(6.7	)	%

ASSET QUALITY RATIOS:
Net loan charge-offs	$	10,322		$	4,921		109.8		%
Net loan charge-offs as a % of average loans (b)		0.14	%		0.07	%	100.0		%

CAPITAL & LIQUIDITY
Average shareholders’ equity / Average Assets (b)		12.09	%		11.02	%	9.7		%
Average shareholders’ equity / Average loans (b)		15.69	%		15.19	%	3.3		%
Average loans / Average deposits (b)		92.34	%		86.39	%	6.9		%

OTHER DATA (NON-GAAP) AND BALANCE SHEET INFORMATION:
Average interest earning assets		9,085,850			9,171,721		(0.9	)	%
Pre-tax, pre-provision net income (j)		199,268			156,508		27.3		%

Note: Explanations for footnotes (a) – (k) are included at the end of the financial tables in the “Financial Reconciliations” section.


PARK NATIONAL CORPORATION
Consolidated Statements of Income

	Three Months Ended				Twelve Month Ended
	December 31				December 31
*(in thousands, except share and per share data)*		2024		2023		2024		2023

Interest income:
Interest and fees on loans	$	120,870	$	108,495	$	467,602	$	399,795
Interest on debt securities:
Taxable		8,641		13,055		41,718		52,786
Tax-exempt		1,351		2,248		5,524		10,966
Other interest income		2,751		1,408		8,121		8,123
Total interest income		133,613		125,206		522,965		471,670

Interest expense:
Interest on deposits:
Demand and savings deposits		19,802		19,467		82,789		71,776
Time deposits		7,658		6,267		29,594		12,677
Interest on borrowings		2,708		4,398		12,563		14,104
Total interest expense		30,168		30,132		124,946		98,557

Net interest income		103,445		95,074		398,019		373,113

Provision for credit losses		3,935		1,809		14,543		2,904

Net interest income after provision for credit losses		99,510		93,265		383,476		370,209

Other income		31,064		15,519		122,588		92,634

Other expense		83,241		79,043		321,339		309,239

Income before income taxes		47,333		29,741		184,725		153,604

Income taxes		8,703		5,241		33,305		26,870

Net income	$	38,630	$	24,500	$	151,420	$	126,734

Per common share:
Net income – basic	$	2.39	$	1.52	$	9.38	$	7.84
Net income – diluted	$	2.37	$	1.51	$	9.32	$	7.80

Weighted average common shares – basic		16,156,827		16,113,215		16,143,708		16,163,500
Weighted average common shares – diluted		16,283,701		16,216,562		16,244,797		16,250,019

Cash dividends declared:
Quarterly dividend	$	1.06	$	1.05	$	4.24	$	4.20
Special dividend	$	0.50	$	—	$	0.50	$	—


PARK NATIONAL CORPORATION
Consolidated Balance Sheets

*(in thousands, except share data)*	December 31, 2024			December 31, 2023

Assets

Cash and due from banks	$	122,363		$	160,477
Money market instruments		38,203			57,791
Investment securities		1,100,861			1,429,144
Loans		7,817,128			7,476,221
Allowance for credit losses		(87,966	)		(83,745	)
Loans, net		7,729,162			7,392,476
Bank premises and equipment, net		69,522			74,211
Goodwill and other intangible assets		163,032			164,247
Other real estate owned		938			983
Other assets		581,269			557,124
Total assets	$	9,805,350		$	9,836,453

Liabilities and Shareholders’ Equity

Deposits:
Noninterest bearing	$	2,612,708		$	2,628,234
Interest bearing		5,530,818			5,414,332
Total deposits		8,143,526			8,042,566
Borrowings		280,083			517,329
Other liabilities		137,893			131,265
Total liabilities	$	8,561,502		$	8,691,160


Shareholders’ Equity:
Preferred shares (200,000 shares authorized; no shares outstanding at December 31, 2024 and December 31, 2023)	$	—		$	—
Common shares (No par value; 20,000,000 shares authorized; 17,623,104 shares issued at December 31, 2024 and December 31, 2023)		463,706			463,280
Total shareholders’ equity	$	1,243,848		$	1,145,293
Total liabilities and shareholders’ equity	$	9,805,350		$	9,836,453


PARK NATIONAL CORPORATION
Consolidated Average Balance Sheets

	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
*(in thousands)*		2024			2023			2024			2023

Assets

Cash and due from banks	$	122,949		$	134,593		$	129,070		$	147,414
Money market instruments		230,591			105,425			157,292			162,544
Investment securities		1,167,467			1,544,942			1,265,680			1,716,037
Loans		7,757,229			7,387,512			7,627,419			7,222,479
Allowance for credit losses		(87,608	)		(85,493	)		(85,930	)		(87,002	)
Loans, net		7,669,621			7,302,019			7,541,489			7,135,477
Bank premises and equipment, net		70,615			76,718			72,689			79,443
Goodwill and other intangible assets		163,221			164,466			163,669			164,960
Other real estate owned		1,079			1,342			1,192			1,654
Other assets		582,785			560,683			570,183			550,025
Total assets	$	10,008,328		$	9,890,188		$	9,901,264		$	9,957,554


Liabilities and Shareholders’ Equity

Deposits:
Noninterest bearing	$	2,593,128		$	2,694,148		$	2,564,009		$	2,814,259
Interest bearing		5,747,671			5,561,845			5,696,185			5,546,015
Total deposits		8,340,799			8,255,993			8,260,194			8,360,274
Borrowings		279,149			394,423			309,996			371,955
Other liabilities		140,700			136,046			133,954			128,182
Total liabilities	$	8,760,648		$	8,786,462		$	8,704,144		$	8,860,411

Shareholders’ Equity:
Preferred shares	$	—		$	—		$	—		$	—
Common shares		462,146			461,864			461,433			460,973
Accumulated other comprehensive loss, net of taxes		(41,229	)		(108,219	)		(60,619	)		(98,154	)
Retained earnings		978,267			906,091			949,160			884,711
Treasury shares		(151,504	)		(156,010	)		(152,854	)		(150,387	)
Total shareholders’ equity	$	1,247,680		$	1,103,726		$	1,197,120		$	1,097,143
Total liabilities and shareholders’ equity	$	10,008,328		$	9,890,188		$	9,901,264		$	9,957,554


PARK NATIONAL CORPORATION
Consolidated Statements of Income – Linked Quarters

	2024		2024		2024		2024		2023
*(in thousands, except per share data)*	4th QTR		3rd QTR		2nd QTR		1st QTR		4th QTR

Interest income:
Interest and fees on loans	$	120,870	$	120,203	$	115,318	$	111,211	$	108,495
Interest on debt securities:
Taxable		8,641		10,228		10,950		11,899		13,055
Tax-exempt		1,351		1,381		1,382		1,410		2,248
Other interest income		2,751		1,996		1,254		2,120		1,408
Total interest income		133,613		133,808		128,904		126,640		125,206

Interest expense:
Interest on deposits:
Demand and savings deposits		19,802		22,762		20,370		19,855		19,467
Time deposits		7,658		7,073		7,525		7,338		6,267
Interest on borrowings		2,708		2,859		3,172		3,824		4,398
Total interest expense		30,168		32,694		31,067		31,017		30,132

Net interest income		103,445		101,114		97,837		95,623		95,074

Provision for credit losses		3,935		5,315		3,113		2,180		1,809

Net interest income after provision for credit losses		99,510		95,799		94,724		93,443		93,265

Other income		31,064		36,530		28,794		26,200		15,519

Other expense		83,241		85,681		75,189		77,228		79,043

Income before income taxes		47,333		46,648		48,329		42,415		29,741

Income taxes		8,703		8,431		8,960		7,211		5,241

Net income	$	38,630	$	38,217	$	39,369	$	35,204	$	24,500

Per common share:
Net income – basic	$	2.39	$	2.37	$	2.44	$	2.18	$	1.52
Net income – diluted	$	2.37	$	2.35	$	2.42	$	2.17	$	1.51


PARK NATIONAL CORPORATION
Detail of other income and other expense – Linked Quarters

	2024			2024		2024		2024			2023
(in thousands)	4th QTR			3rd QTR		2nd QTR		1st QTR			4th QTR

Other income:
Income from fiduciary activities	$	11,122		$	10,615	$	10,728	$	10,024		$	8,943
Service charges on deposit accounts		2,319			2,362		2,214		2,106			2,054
Other service income		3,277			3,036		2,906		2,524			2,349
Debit card fee income		6,511			6,539		6,580		6,243			6,583
Bank owned life insurance income		1,519			2,057		1,565		2,629			1,373
ATM fees		415			471		458		496			517
Pension settlement gain		365			5,783		—		—			—
Loss on sale of debt securities, net		(128	)		—		—		(398	)		(7,875	)
Gain (loss) on equity securities, net		1,852			1,557		358		(687	)		353
Other components of net periodic benefit income		2,651			2,204		2,204		2,204			1,893
Miscellaneous		1,161			1,906		1,781		1,059			(671	)
Total other income	$	31,064		$	36,530	$	28,794	$	26,200		$	15,519

Other expense:
Salaries	$	37,254		$	38,370	$	35,954	$	35,733		$	36,192
Employee benefits		10,129			10,162		9,873		11,560			10,088
Occupancy expense		2,929			3,731		2,975		3,181			3,344
Furniture and equipment expense		2,375			2,571		2,454		2,583			2,824
Data processing fees		10,450			11,764		9,542		8,808			9,605
Professional fees and services		10,465			7,842		6,022		6,817			7,015
Marketing		1,949			1,464		1,164		1,741			1,716
Insurance		1,600			1,640		1,777		1,718			1,708
Communication		1,104			955		1,002		1,036			993
State tax expense		1,145			1,116		1,129		1,110			1,158
Amortization of intangible assets		288			287		320		320			334
Foundation contributions		—			2,000		—		—			1,000
Miscellaneous		3,553			3,779		2,977		2,621			3,066
Total other expense	$	83,241		$	85,681	$	75,189	$	77,228		$	79,043


PARK NATIONAL CORPORATION
Asset Quality Information

	Year ended December 31,
*(in thousands, except ratios)*		2024			2023			2022			2021				2020

Allowance for credit losses:
Allowance for credit losses, beginning of period	$	83,745		$	85,379		$	83,197		$	85,675			$	56,679
Cumulative change in accounting principle; adoption of ASU 2022-02 in 2023 and ASU 2016-13 in 2021		—			383			—			6,090				—
Charge-offs		18,334			10,863			9,133			5,093				10,304
Recoveries		8,012			5,942			6,758			8,441				27,246
Net charge-offs (recoveries)		10,322			4,921			2,375			(3,348	)			(16,942	)
Provision for (recovery of) credit losses		14,543			2,904			4,557			(11,916	)			12,054
Allowance for credit losses, end of period	$	87,966		$	83,745		$	85,379		$	83,197			$	85,675

General reserve trends:
Allowance for credit losses, end of period	$	87,966		$	83,745		$	85,379		$	83,197			$	85,675
Allowance on accruing purchased credit deteriorated (“PCD”) loans (purchased credit impaired (“PCI”) loans for years 2020 and prior)		—			—			—			—				167
Allowance on purchased loans excluded from collectively evaluated loans (for years 2020 and prior)		N.A.			N.A.			N.A.			N.A.				678
Specific reserves on individually evaluated loans		1,299			4,983			3,566			1,616				5,434
General reserves on collectively evaluated loans	$	86,667		$	78,762		$	81,813		$	81,581			$	79,396

Total loans	$	7,817,128		$	7,476,221		$	7,141,891		$	6,871,122			$	7,177,785
Accruing PCD loans (PCI loans for years 2020 and prior)		2,174			2,835			4,653			7,149				11,153
Purchased loans excluded from collectively evaluated loans (for years 2020 and prior)		N.A.			N.A.			N.A.			N.A.				360,056
Individually evaluated loans (k)		53,149			45,215			78,341			74,502				108,407
Collectively evaluated loans	$	7,761,805		$	7,428,171		$	7,058,897		$	6,789,471			$	6,698,169

Asset Quality Ratios:
Net charge-offs (recoveries) as a % of average loans		0.14	%		0.07	%		0.03	%		(0.05	)	%		(0.24	)	%
Allowance for credit losses as a % of period end loans		1.13	%		1.12	%		1.20	%		1.21		%		1.19		%
General reserve as a % of collectively evaluated loans		1.12	%		1.06	%		1.16	%		1.20		%		1.19		%

Nonperforming assets:
Nonaccrual loans	$	68,178		$	60,259		$	79,696		$	72,722			$	117,368
Accruing troubled debt restructurings (for years 2022 and prior) (k)		N.A.			N.A.			20,134			28,323				20,788
Loans past due 90 days or more		1,754			859			1,281			1,607				1,458
Total nonperforming loans	$	69,932		$	61,118		$	101,111		$	102,652			$	139,614
Other real estate owned		938			983			1,354			775				1,431
Other nonperforming assets		—			—			—			2,750				3,164
Total nonperforming assets	$	70,870		$	62,101		$	102,465		$	106,177			$	144,209
Percentage of nonaccrual loans to period end loans		0.87	%		0.81	%		1.12	%		1.06		%		1.64		%
Percentage of nonperforming loans to period end loans		0.89	%		0.82	%		1.42	%		1.49		%		1.95		%
Percentage of nonperforming assets to period end loans		0.91	%		0.83	%		1.43	%		1.55		%		2.01		%
Percentage of nonperforming assets to period end total assets		0.72	%		0.63	%		1.04	%		1.11		%		1.55		%

Note: Explanations for footnotes (a) – (k) are included at the end of the financial tables in the “Financial Reconciliations” section.


PARK NATIONAL CORPORATION
Asset Quality Information (continued)

	Year ended December 31,
(in thousands, except ratios)	2024		2023		2022		2021		2020

New nonaccrual loan information:
Nonaccrual loans, beginning of period	$	60,259	$	79,696	$	72,722	$	117,368	$	90,080
New nonaccrual loans		65,535		48,280		64,918		38,478		103,386
Resolved nonaccrual loans		57,616		67,717		57,944		83,124		76,098
Nonaccrual loans, end of period	$	68,178	$	60,259	$	79,696	$	72,722	$	117,368

Individually evaluated commercial loan portfolio information (period end): (k)
Unpaid principal balance	$	58,158	$	47,564	$	80,116	$	75,126	$	109,062
Prior charge-offs		5,009		2,349		1,775		624		655
Remaining principal balance		53,149		45,215		78,341		74,502		108,407
Specific reserves		1,299		4,983		3,566		1,616		5,434
Book value, after specific reserves	$	51,850	$	40,232	$	74,775	$	72,886	$	102,973

Note: Explanations for footnotes (a) – (k) are included at the end of the financial tables in the “Financial Reconciliations” section.


PARK NATIONAL CORPORATION
Financial Reconciliations
NON-GAAP RECONCILIATIONS
	THREE MONTHS ENDED												TWELVE MONTHS ENDED
*(in thousands, except share and per share data)*	December 31, 2024				September 30, 2024				December 31, 2023				December 31, 2024				December 31, 2023
Net interest income	$	103,445			$	101,114			$	95,074			$	398,019			$	373,113
less purchase accounting accretion related to NewDominion and Carolina Alliance acquisitions		250				281				124				1,154				633
less interest income on former Vision Bank relationships		38				9				35				54				631
Net interest income – adjusted	$	103,157			$	100,824			$	94,915			$	396,811			$	371,849

Provision for credit losses	$	3,935			$	5,315			$	1,809			$	14,543			$	2,904
less recoveries on former Vision Bank relationships		—				(234	)			—				(1,304	)			(788	)
Provision for credit losses – adjusted	$	3,935			$	5,549			$	1,809			$	15,847			$	3,692

Other income	$	31,064			$	36,530			$	15,519			$	122,588			$	92,634
less loss on sale of debt securities, net		(128	)			—				(7,875	)			(526	)			(7,875	)
less pension settlement gain		365				5,783				—				6,148				—
less impact of strategic initiatives		117				—				(1,038	)			775				(1,038	)
less Vision related OREO valuation adjustments, net		—				1				(370	)			115				(370	)
less other service income related to former Vision Bank relationships		299				—				40				312				175
Other income – adjusted	$	30,411			$	30,746			$	24,762			$	115,764			$	101,742

Other expense	$	83,241			$	85,681			$	79,043			$	321,339			$	309,239
less core deposit intangible amortization related to NewDominion and Carolina Alliance acquisitions		288				287				334				1,215				1,323
less Foundation contribution		—				2,000				1,000				2,000				1,000
less special incentive		—				1,700				—				1,700				—
less building demolition costs		44				349				—				458				—
less direct expenses related to collection of payments on former Vision Bank loan relationships		215				—				—				215				100
Other expense – adjusted	$	82,694			$	81,345			$	77,709			$	315,751			$	306,816

Tax effect of adjustments to net income identified above (i)	$	(83	)		$	(414	)		$	2,188			$	(787	)		$	1,991

Net income – reported	$	38,630			$	38,217			$	24,500			$	151,420			$	126,734
Net income – adjusted (h)	$	38,319			$	36,659			$	32,730			$	148,459			$	134,222

Diluted earnings per common share	$	2.37			$	2.35			$	1.51			$	9.32			$	7.80
Diluted earnings per common share, adjusted (h)	$	2.35			$	2.25			$	2.02			$	9.14			$	8.26

Annualized return on average assets (a)(b)		1.54		%		1.53		%		0.98		%		1.53		%		1.27		%
Annualized return on average assets, adjusted (a)(b)(h)		1.52		%		1.47		%		1.31		%		1.50		%		1.35		%

Annualized return on average tangible assets (a)(b)(e)		1.56		%		1.56		%		1.00		%		1.56		%		1.29		%
Annualized return on average tangible assets, adjusted (a)(b)(e)(h)		1.55		%		1.49		%		1.34		%		1.52		%		1.37		%

Annualized return on average shareholders’ equity (a)(b)		12.32		%		12.56		%		8.81		%		12.65		%		11.55		%
Annualized return on average shareholders’ equity, adjusted (a)(b)(h)		12.22		%		12.05		%		11.76		%		12.40		%		12.23		%

Annualized return on average tangible equity (a)(b)(c)		14.17		%		14.52		%		10.35		%		14.65		%		13.60		%
Annualized return on average tangible equity, adjusted (a)(b)(c)(h)		14.06		%		13.93		%		13.83		%		14.37		%		14.40		%

Efficiency ratio (g)		61.60		%		61.98		%		70.93		%		61.44		%		65.87		%
Efficiency ratio, adjusted (g)(h)		61.63		%		61.55		%		64.48		%		61.31		%		64.28		%

Annualized net interest margin (g)		4.51		%		4.45		%		4.17		%		4.41		%		4.11		%
Annualized net interest margin, adjusted (g)(h)		4.50		%		4.43		%		4.17		%		4.39		%		4.09		%
Note: Explanations for footnotes (a) – (k) are included at the end of the financial tables in the “Financial Reconciliations” section.


PARK NATIONAL CORPORATION
Financial Reconciliations (continued)

(a) Reported measure uses net income
(b) Averages are for the three months ended December 31, 2024, September 30, 2024, and December 31, 2023 and the twelve months ended December 31, 2024 and December 31, 2023, as appropriate
(c) Net income for each period divided by average tangible equity during the period. Average tangible equity equals average shareholders’ equity during the applicable period less average goodwill and other intangible assets during the applicable period.

RECONCILIATION OF AVERAGE SHAREHOLDERS’ EQUITY TO AVERAGE TANGIBLE EQUITY:
	THREE MONTHS ENDED						TWELVE MONTHS ENDED
	December 31, 2024		September 30, 2024		December 31, 2023		December 31, 2024		December 31, 2023
AVERAGE SHAREHOLDERS’ EQUITY	$	1,247,680	$	1,210,565	$	1,103,726	$	1,197,120	$	1,097,143
Less: Average goodwill and other intangible assets		163,221		163,509		164,466		163,669		164,960
AVERAGE TANGIBLE EQUITY	$	1,084,459	$	1,047,056	$	939,260	$	1,033,451	$	932,183

(d) Tangible equity divided by common shares outstanding at period end. Tangible equity equals total shareholders’ equity less goodwill and other intangible assets, in each case at the end of the period.

RECONCILIATION OF TOTAL SHAREHOLDERS’ EQUITY TO TANGIBLE EQUITY:
	December 31, 2024		September 30, 2024		December 31, 2023
TOTAL SHAREHOLDERS’ EQUITY	$	1,243,848	$	1,239,413	$	1,145,293
Less: Goodwill and other intangible assets		163,032		163,320		164,247
TANGIBLE EQUITY	$	1,080,816	$	1,076,093	$	981,046

(e) Net income for each period divided by average tangible assets during the period. Average tangible assets equal average assets less average goodwill and other intangible assets, in each case during the applicable period.

RECONCILIATION OF AVERAGE ASSETS TO AVERAGE TANGIBLE ASSETS
	THREE MONTHS ENDED						TWELVE MONTHS ENDED
	December 31, 2024		September 30, 2024		December 31, 2023		December 31, 2024		December 31, 2023
AVERAGE ASSETS	$	10,008,328	$	9,920,633	$	9,890,188	$	9,901,264	$	9,957,554
Less: Average goodwill and other intangible assets		163,221		163,509		164,466		163,669		164,960
AVERAGE TANGIBLE ASSETS	$	9,845,107	$	9,757,124	$	9,725,722	$	9,737,595	$	9,792,594

(f) Tangible equity divided by tangible assets. Tangible assets equal total assets less goodwill and other intangible assets, in each case at the end of the period.

RECONCILIATION OF TOTAL ASSETS TO TANGIBLE ASSETS:
	December 31, 2024		September 30, 2024		December 31, 2023
TOTAL ASSETS	$	9,805,350	$	9,903,049	$	9,836,453
Less: Goodwill and other intangible assets		163,032		163,320		164,247
TANGIBLE ASSETS	$	9,642,318	$	9,739,729	$	9,672,206

(g) Efficiency ratio is calculated by dividing total other expense by the sum of fully taxable equivalent net interest income and other income. Fully taxable equivalent net interest income reconciliation is shown assuming a 21% corporate federal income tax rate. Additionally, net interest margin is calculated on a fully taxable equivalent basis by dividing fully taxable equivalent net interest income by average interest earning assets, in each case during the applicable period.

RECONCILIATION OF FULLY TAXABLE EQUIVALENT NET INTEREST INCOME TO NET INTEREST INCOME
	THREE MONTHS ENDED						TWELVE MONTHS ENDED
	December 31, 2024		September 30, 2024		December 31, 2023		December 31, 2024		December 31, 2023
Interest income	$	133,613	$	133,808	$	125,206	$	522,965	$	471,670
Fully taxable equivalent adjustment		617		594		838		2,432		3,726
Fully taxable equivalent interest income	$	134,230	$	134,402	$	126,044	$	525,397	$	475,396
Interest expense		30,168		32,694		30,132		124,946		98,557
Fully taxable equivalent net interest income	$	104,062	$	101,708	$	95,912	$	400,451	$	376,839

(h) Adjustments to net income for each period presented are detailed in the non-GAAP reconciliations of net interest income, provision for credit losses, other income, other expense and tax effect of adjustments to net income.
(i) The tax effect of adjustments to net income was calculated assuming a 21% corporate federal income tax rate.
(j) Pre-tax, pre-provision (“PTPP”) net income is calculated as net income, plus income taxes, plus the provision for credit losses, in each case during the applicable period. PTPP net income is a common industry metric utilized in capital analysis and review. PTPP is used to assess the operating performance of Park while excluding the impact of the provision for credit losses.


RECONCILIATION OF PRE-TAX, PRE-PROVISION NET INCOME
	THREE MONTHS ENDED						TWELVE MONTHS ENDED
	December 31, 2024		September 30, 2024		December 31, 2023		December 31, 2024		December 31, 2023
Net income	$	38,630	$	38,217	$	24,500	$	151,420	$	126,734
Plus: Income taxes		8,703		8,431		5,241		33,305		26,870
Plus: Provision for credit losses		3,935		5,315		1,809		14,543		2,904
Pre-tax, pre-provision net income	$	51,268	$	51,963	$	31,550	$	199,268	$	156,508

(k) Effective January 1, 2023, Park adopted Accounting Standards Update (“ASU”) 2022-02. Among other things, this ASU eliminated the concept of troubled debt restructurings (“TDRs”). As a result of the adoption of this ASU and elimination of the concept of TDRs, total nonperforming loans (“NPLs”) and total nonperforming assets (“NPAs”) each decreased by $20.1 million effective January 1, 2023. Additionally, as a result of the adoption of this ASU, individually evaluated loans decreased by $11.5 million effective January 1, 2023.

Media contact: Michelle Hamilton, 740.349.6014, [email protected]

Investor contact: Brady Burt, 740.322.6844, [email protected]

January 27, 2025 4:26 pm

W. R. Berkley Corporation Reports Fourth Quarter and Full Year 2024 Results

W. R. Berkley Corporation Reports Fourth Quarter and Full Year 2024 Results

Fourth Quarter Return on Equity of 30.9% and Operating Return on Equity of 24.3%;

Quarterly Net Income and Record Operating Income Increased 45.0% and 15.5% to $576 Million and $453 Million;

Record Annual Pre-Tax Underwriting Income of $1.1 Billion and Net Income of $1.8 Billion

GREENWICH, Conn.–(BUSINESS WIRE)–W. R. Berkley Corporation (NYSE: WRB) today reported its fourth quarter and full year 2024 results.

Summary Financial Data (Amounts in thousands, except per share data)

	Fourth Quarter						Twelve Months
		2024			2023			2024			2023

Gross premiums written	$	3,497,284		$	3,232,710		$	14,211,090		$	12,972,006
Net premiums written		2,936,750			2,719,668			11,972,096			10,954,467

Net income to common stockholders		576,101			397,340			1,756,115			1,381,359
Net income per diluted share (1)		1.44			0.98			4.36			3.37

Operating income (2)		452,591			391,753			1,667,612			1,344,567
Operating income per diluted share (1)		1.13			0.96			4.14			3.28

Return on equity (3)		30.9	%		23.6	%		23.6	%		20.5	%
Operating return on equity (2) (3)		24.3	%		23.2	%		22.4	%		19.9	%

(1)		The 2023 per share amounts were restated for comparative purposes to reflect the 3-for-2 common stock split effected on July 10, 2024.
(2)		Operating income is a non-GAAP financial measure defined by the Company as net income excluding after-tax net investment gains (losses) and related expenses.
(3)		Return on equity and operating return on equity represent net income and operating income, respectively, expressed on an annualized basis as a percentage of beginning of year common stockholders’ equity.

Fourth quarter highlights included:

Return on equity and operating return on equity of 30.9% and 24.3%, respectively.
Net income increased 45.0% to $576 million and operating income increased 15.5% to a record $453 million.
The current accident year combined ratio before catastrophe losses of 2.6 loss ratio points was 87.7%, and the reported combined ratio was 90.2%.
Average rate increases excluding workers’ compensation were approximately 7.7%.
Operating cash flow increased 16.0% to $810.0 million.
Total capital returned to shareholders was $287.8 million, consisting of $190.0 million of special dividends, $67.4 million of share repurchases and $30.4 million of regular dividends.

Full year highlights included:

Return on equity and operating return on equity of 23.6% and 22.4%, respectively.
Book value per share grew 23.5%, before dividends and share repurchases.
Record annual pre-tax underwriting income of $1.1 billion and net income of $1.8 billion.
Gross and net premiums written grew 9.6% and 9.3% to records of $14.2 billion and $12.0 billion, respectively.
Average rate increases excluding workers’ compensation were approximately 7.9%.
Net investment income grew 26.6% to a record of $1.3 billion.
Operating cash flow increased 25.6% to a record of $3.7 billion.
Total capital returned to shareholders was $835.6 million, consisting of $412.3 million of special dividends, $303.7 million of share repurchases and $119.6 million of regular dividends.

The Company commented:

The Company once again set new financial records in 2024. Full year results were highlighted by record net income, with outstanding underwriting performance and net investment income, culminating in a 23.6% return on beginning of year equity. Growth in book value per share was 23.5%, before $836 million of capital returned to shareholders through special and ordinary dividends and share repurchases.

In the fourth quarter, we delivered an outstanding 30.9% annualized return on beginning of year equity. Our thoughtful growth strategy remains focused on achieving superior long-term risk-adjusted returns. Our decentralized structure remains a key competitive advantage, enabling us to effectively manage risks and capitalize on opportunities in a market where business lines increasingly operate independently. Our calendar year combined ratio of 90.2% once again demonstrated our focus on managing volatility.

We positioned our investment portfolio well for changes in the environment, which resulted in robust growth in net investment income from our fixed-maturity portfolio and a strong contribution to total return from net unrealized gains on our equity portfolio. Current reinvestment rates continue to exceed our annual book yield, and our invested assets have increased from record operating cash flow, positioning us for further investment income growth in 2025.

The Company excelled by most business measures in 2024, and we anticipate ongoing success for our shareholders in 2025. The current property and casualty (re)insurance and investment environments remain favorable to our business model. We are confident in our ability to deliver superior long-term risk-adjusted returns and enhanced shareholder value in 2025 and beyond.

Webcast Conference Call

The Company will hold its quarterly conference call with analysts and investors to discuss its earnings and other information on January 27, 2025, at 5:00 p.m. eastern time. The conference call will be webcast live on the Company’s website at https://ir.berkley.com/events-and-presentations/default.aspx. Please log on early to register. A replay of the webcast will be available on the Company’s website approximately two hours after the end of the conference call. Additional financial information can be found on the Company’s website at https://ir.berkley.com/investor-relations/financial-information/quarterly-results/default.aspx.

About W. R. Berkley Corporation

Founded in 1967, W. R. Berkley Corporation is an insurance holding company that is among the largest commercial lines writers in the United States and operates worldwide in two segments of the property casualty business: Insurance and Reinsurance & Monoline Excess.

Forward Looking Information

This is a “Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995. Any forward-looking statements contained herein, including statements related to our outlook for the industry and for our performance for the year 2025 and beyond, are based upon the Company’s historical performance and on current plans, estimates and expectations. The inclusion of this forward-looking information should not be regarded as a representation by us or any other person that the future plans, estimates or expectations contemplated by us will be achieved. They are subject to various risks and uncertainties, including but not limited to: the cyclical nature of the property casualty industry; the impact of significant competition, including new entrants to the industry; the long-tail and potentially volatile nature of the insurance and reinsurance business; product demand and pricing; claims development and the process of estimating reserves; investment risks, including those of our portfolio of fixed maturity securities and investments in equity securities, including investments in financial institutions, municipal bonds, mortgage-backed securities, loans receivable, investment funds, including real estate, merger arbitrage, energy related and private equity investments; the effects of emerging claim and coverage issues; the uncertain nature of damage theories and loss amounts, including claims for cyber security-related risks; natural and man-made catastrophic losses, including as a result of terrorist activities; the ongoing effects of the COVID-19 pandemic, or other epidemics and pandemics; the impact of climate change, which may alter the frequency and increase the severity of catastrophe events; general economic and market activities, including inflation, interest rates, and volatility in the credit and capital markets; the impact of the conditions in the financial markets and the global economy, and the potential effect of legislative, regulatory, accounting or other initiatives taken in response to such conditions, on our results and financial condition; foreign currency and political risks relating to our international operations; our ability to attract and retain key personnel and qualified employees; continued availability of capital and financing; the success of our new ventures or acquisitions and the availability of other opportunities; the availability of reinsurance; our retention under the Terrorism Risk Insurance Program Reauthorization Act of 2019; the ability or willingness of our reinsurers to pay reinsurance recoverables owed to us; other legislative and regulatory developments, including those related to business practices in the insurance industry; credit risk related to our policyholders, independent agents and brokers; changes in the ratings assigned to us or our insurance company subsidiaries by rating agencies; the availability of dividends from our insurance company subsidiaries; cyber security breaches of our information technology systems and the information technology systems of our vendors and other third parties, or related processes and systems; the effectiveness of our controls to ensure compliance with guidelines, policies and legal and regulatory standards; and other risks detailed from time to time in the Company’s filings with the Securities and Exchange Commission. These risks and uncertainties could cause our actual results for the year 2025 and beyond to differ materially from those expressed in any forward-looking statement we make. Any projections of growth in our revenues would not necessarily result in commensurate levels of earnings. Forward-looking statements speak only as of the date on which they are made, and the Company undertakes no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.

Consolidated Financial Summary (Amounts in thousands, except per share data)

	Fourth Quarter						Twelve Months
		2024			2023			2024			2023
Revenues:
Net premiums written	$	2,936,750		$	2,719,668		$	11,972,096		$	10,954,467
Change in net unearned premiums		74,151			(5,054	)		(423,611	)		(553,780	)
Net premiums earned		3,010,901			2,714,614			11,548,485			10,400,687
Net investment income		317,438			313,341			1,333,161			1,052,835
Net investment gains:
Net realized and unrealized gains (losses) on investments		151,903			(2,862	)		79,738			47,540
Change in allowance for credit losses on investments		6,623			10,666			37,970			(498	)
Net investment gains		158,526			7,804			117,708			47,042
Revenues from non-insurance businesses		152,706			160,283			528,012			535,508
Insurance service fees		27,352			25,194			108,935			106,485
Other income		645			146			2,451			381
Total Revenues		3,667,568			3,221,382			13,638,752			12,142,938
Expenses:
Loss and loss expenses		1,861,261			1,627,540			7,131,595			6,372,142
Other operating costs and expenses		897,416			906,011			3,602,306			3,363,936
Expenses from non-insurance businesses		148,839			154,754			513,451			524,998
Interest expense		31,751			31,879			126,907			127,459
Total expenses		2,939,267			2,720,184			11,374,259			10,388,535
Income before income tax		728,301			501,198			2,264,493			1,754,403
Income tax expense		(152,958	)		(102,234	)		(509,916	)		(370,557	)
Net Income before noncontrolling interests		575,343			398,964			1,754,577			1,383,846
Noncontrolling interest		758			(1,624	)		1,538			(2,487	)
Net income to common stockholders	$	576,101		$	397,340		$	1,756,115		$	1,381,359

Net income per share (1):
Basic	$	1.45		$	0.98		$	4.39		$	3.40
Diluted	$	1.44		$	0.98		$	4.36		$	3.37

Average shares outstanding (1) (2):
Basic		398,042			403,580			399,734			406,500
Diluted		400,888			406,523			403,224			409,948

(1)		The 2023 per share amounts were restated for comparative purposes to reflect the 3-for-2 common stock split effected on July 10, 2024.
(2)		Basic shares outstanding consist of the weighted average number of common shares outstanding during the period (including shares held in a grantor trust). Diluted shares outstanding consist of the weighted average number of basic and common equivalent shares outstanding during the period.

Business Segment Operating Results (Amounts in thousands, except ratios) (1) (2)

	Fourth Quarter						Twelve Months
		2024			2023			2024			2023
Insurance:
Gross premiums written	$	3,161,104		$	2,874,901		$	12,662,132		$	11,461,094
Net premiums written		2,620,112			2,384,629			10,549,550			9,560,533
Net premiums earned		2,638,481			2,357,349			10,086,308			9,007,376
Pre-tax income		504,460			480,031			1,942,083			1,629,918
Loss ratio		62.2	%		61.0	%		62.8	%		62.3	%
Expense ratio		28.3	%		28.4	%		28.4	%		28.3	%
GAAP Combined ratio		90.5	%		89.4	%		91.2	%		90.6	%

Reinsurance & Monoline Excess:
Gross premiums written	$	336,180		$	357,809		$	1,548,958		$	1,510,912
Net premiums written		316,638			335,039			1,422,546			1,393,934
Net premiums earned		372,420			357,265			1,462,177			1,393,311
Pre-tax income		109,296			132,140			466,595			449,285
Loss ratio		58.9	%		53.0	%		54.7	%		54.3	%
Expense ratio		29.5	%		28.5	%		29.4	%		29.4	%
GAAP Combined ratio		88.4	%		81.5	%		84.1	%		83.7	%

Corporate and Eliminations:
Net investment gains	$	158,526		$	7,804		$	117,708		$	47,042
Interest expense		(31,751	)		(31,879	)		(126,907	)		(127,459	)
Other expenses		(12,230	)		(86,898	)		(134,986	)		(244,383	)
Pre-tax income (loss)		114,545			(110,973	)		(144,185	)		(324,800	)

Consolidated:
Gross premiums written	$	3,497,284		$	3,232,710		$	14,211,090		$	12,972,006
Net premiums written		2,936,750			2,719,668			11,972,096			10,954,467
Net premiums earned		3,010,901			2,714,614			11,548,485			10,400,687
Pre-tax income		728,301			501,198			2,264,493			1,754,403
Loss ratio		61.8	%		60.0	%		61.8	%		61.3	%
Expense ratio		28.4	%		28.4	%		28.5	%		28.4	%
GAAP Combined ratio		90.2	%		88.4	%		90.3	%		89.7	%

(1)		Loss ratio is losses and loss expenses incurred expressed as a percentage of premiums earned. Expense ratio is underwriting expenses expressed as a percentage of premiums earned. GAAP combined ratio is the sum of the loss ratio and the expense ratio.
(2)		Commencing with the first quarter of 2024, the Company reclassified a program management business from the Insurance segment to the Reinsurance & Monoline Excess segment. The reclassified business is a program management business offering support on a nationwide basis for commercial casualty and property program administrators. Reclassifications have been made to the Company’s 2023 financial information to conform with this presentation.

Supplemental Information (Amounts in thousands)

	Fourth Quarter						Twelve Months
		2024			2023			2024			2023
Net premiums written:
Other liability	$	1,063,789		$	970,672		$	4,277,085		$	3,837,844
Short-tail lines (1)		581,260			505,975			2,349,615			2,025,320
Auto		384,279			348,253			1,554,299			1,378,425
Workers’ compensation		304,431			290,203			1,243,674			1,228,058
Professional liability		286,353			269,526			1,124,877			1,090,886
Total Insurance		2,620,112			2,384,629			10,549,550			9,560,533
Casualty (2)		170,720			201,679			738,242			791,385
Property (2)		105,735			98,074			412,660			354,424
Monoline excess		40,183			35,286			271,643			248,125
Total Reinsurance & Monoline Excess		316,638			335,039			1,422,546			1,393,934
Total	$	2,936,750		$	2,719,668		$	11,972,096		$	10,954,467

Current accident year losses from catastrophes:
Insurance	$	35,645		$	20,440		$	226,576		$	159,848
Reinsurance & Monoline Excess		43,973			11,577			71,046			35,114
Total	$	79,618		$	32,017		$	297,622		$	194,962

Net Investment income:
Core portfolio (3)	$	312,785		$	285,841		$	1,275,079		$	966,723
Investment funds		(12,358	)		11,300			(11,491	)		16,743
Arbitrage trading account		17,011			16,200			69,573			69,369
Total	$	317,438		$	313,341		$	1,333,161		$	1,052,835

Net realized and unrealized gains (losses) on investments:
Net realized losses on investments	$	(11,339	)	$	(27,705	)	$	(41,061	)	$	(22,908	)
Change in unrealized gains on equity securities		163,242			24,843			120,799			70,448
Total	$	151,903		$	(2,862	)	$	79,738		$	47,540

Other operating costs and expenses:
Policy acquisition and insurance operating expenses	$	855,997		$	771,170		$	3,294,902		$	2,954,686
Insurance service expenses		24,331			21,379			90,640			91,714
Net foreign currency (gains) losses		(53,699	)		33,577			(52,376	)		31,799
Other costs and expenses		70,787			79,885			269,140			285,737
Total	$	897,416		$	906,011		$	3,602,306		$	3,363,936

Cash flow from operations	$	810,033		$	698,076		$	3,678,368		$	2,929,238

Reconciliation of net income to operating income:
Net income	$	576,101		$	397,340		$	1,756,115		$	1,381,359
Pre-tax investment gains, net of related expenses		(158,526	)		(7,804	)		(117,708	)		(47,042	)
Income tax expense		35,016			2,217			29,205			10,250
Operating income after-tax (4)	$	452,591		$	391,753		$	1,667,612		$	1,344,567

(1)		Short-tail lines include commercial multi-peril (non-liability), inland marine, accident and health, fidelity and surety, boiler and machinery, high net worth homeowners and other lines.
(2)		Includes reinsurance casualty and property and certain program management business.
(3)		Core portfolio includes fixed maturity securities, equity securities, cash and cash equivalents, real estate and loans receivable.
(4)		Operating income is a non-GAAP financial measure defined by the Company as net income excluding after-tax net investment gains (losses). Net investment gains (losses) are computed net of related expenses, including performance-based compensatory costs associated with realized investment gains. Management believes this measurement provides a useful indicator of trends in the Company’s underlying operations.

Selected Balance Sheet Information (Amounts in thousands, except per share data)

	December 31, 2024		December 31, 2023

Net invested assets (1)	$	29,780,638	$	26,973,703
Total assets		40,567,268		37,202,015
Reserves for losses and loss expenses		20,368,030		18,739,652
Senior notes and other debt		1,831,158		1,827,951
Subordinated debentures		1,009,808		1,009,090
Common stockholders’ equity (2)		8,395,111		7,455,431
Common stock outstanding (3) (4)		380,066		384,817
Book value per share (4) (5)		22.09		19.37
Tangible book value per share (4) (5)		21.46		18.72

(1)		Net invested assets include investments, cash and cash equivalents, trading accounts receivable from brokers and clearing organizations, trading account securities sold but not yet purchased and unsettled purchases, net of related liabilities.
(2)		As of December 31, 2024, reflected in common stockholders’ equity are after-tax unrealized investment losses of $517 million and unrealized currency translation losses of $417 million. As of December 31, 2023, reflected in common stockholders’ equity are after-tax unrealized investment losses of $586 million and unrealized currency translation losses of $340 million.
(3)		During the year ended December 31, 2024, the Company repurchased 5,702,996 shares of its common stock for $303.7 million. During the three months ended December 31, 2024, the Company repurchased 1,165,867 shares of its common stock for $67.4 million. The number of shares of common stock outstanding excludes shares held in a grantor trust.
(4)		The 2023 per share amounts were restated for comparative purposes to reflect the 3-for-2 common stock split effected on July 10, 2024.
(5)		Book value per share is total common stockholders’ equity divided by the number of common shares outstanding. Tangible book value per share is total common stockholders’ equity excluding the after-tax value of goodwill and other intangible assets divided by the number of common shares outstanding.

Investment Portfolio December 31, 2024 (Amounts in thousands, except percentages)

	Carrying Value		Percent of Total
Fixed maturity securities:
United States government and government agencies	$	2,235,341	7.5	%
State and municipal:
Special revenue		1,517,708	5.1	%
State general obligation		307,514	1.0	%
Local general obligation		272,376	0.9	%
Corporate backed		153,574	0.5	%
Pre-refunded		85,592	0.3	%
Total state and municipal		2,336,764	7.8	%
Mortgage-backed securities:
Agency		3,045,639	10.2	%
Commercial		532,282	1.8	%
Residential – Prime		187,806	0.6	%
Residential – Alt A		2,055	0.0	%
Total mortgage-backed securities		3,767,782	12.6	%
Asset-backed securities		3,885,012	13.0	%
Corporate:
Industrial		3,667,199	12.3	%
Financial		3,320,513	11.2	%
Utilities		778,694	2.6	%
Other		651,235	2.2	%
Total corporate		8,417,641	28.3	%
Foreign government		1,755,325	5.9	%
Total fixed maturity securities (1)		22,397,865	75.1	%
Equity securities available for sale:
Common stocks		760,167	2.6	%
Preferred stocks		443,621	1.5	%
Total equity securities available for sale		1,203,788	4.1	%
Cash and cash equivalents (2)		1,891,232	6.4	%
Investment funds		1,468,246	4.9	%
Real estate		1,291,455	4.3	%
Arbitrage trading account		1,122,599	3.8	%
Loans receivable		405,453	1.4	%
Net invested assets	$	29,780,638	100.0	%

(1)		Total fixed maturity securities had an average rating of AA- and an average duration of 2.6 years, including cash and cash equivalents.
(2)		Cash and cash equivalents includes trading accounts receivable from brokers and clearing organizations, trading account securities sold but not yet purchased and unsettled purchases.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250127525284/en/

W. R. Berkley Corporation

Karen A. Horvath

Vice President – External

Financial Communications

(203) 629-3000

KEYWORDS: Connecticut United States North America

INDUSTRY KEYWORDS: Professional Services Insurance Finance

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January 27, 2025 4:25 pm

Enact Mortgage Insurance Enters into Two Forward XOL Reinsurance Transactions as Part of its Diversified Credit Risk Transfer Program

Secures approximately $225 million and $260 million of excess of loss reinsurance coverage from a panel of third-party reinsurance providers

RALEIGH, N.C., Jan. 27, 2025 (GLOBE NEWSWIRE) — Enact Holdings, Inc. (Nasdaq: ACT) (Enact), a leading provider of private mortgage insurance through its insurance subsidiaries, today announced that its flagship legal entity, Enact Mortgage Insurance Corporation, has secured approximately $225 million and $260 million of additional excess of loss (XOL) reinsurance coverage. These credit risk transfer (CRT) transactions cover a portion of expected new insurance written for the 2025 book year (policies written from January 1, 2025 through December 31, 2025) and 2026 book year (policies written from January 1, 2026 through December 31, 2026) respectively, and are effective January 1, 2025 and January 1, 2026. Reinsurance coverage for both transactions are provided by a panel of reinsurers each currently rated “A-” or better by Standard & Poor’s (“S&P”) or A.M. Best Company, Inc., or rated “A3” or better by Moody’s.

“Today’s announcement reflects our on-going commitment to proactively manage credit risk and strengthen our financial position,” said Rohit Gupta, President and CEO of Enact. “Looking ahead, we remain committed to continuing to successfully execute on our CRT strategy while helping people responsibly achieve the dream of homeownership.”

Safe Harbor Statement

This communication contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may address, among other things, our expected financial and operational results, the related assumptions underlying our expected results, guidance concerning the future return of capital and the quotations of management. These forward-looking statements are distinguished by use of words such as “will,” “may,” “would,” “anticipate,” “expect,” “believe,” “designed,” “plan,” “predict,” “project,” “target,” “could,” “should,” or “intend,” the negative of these terms, and similar references to future periods. These views involve risks and uncertainties that are difficult to predict and, accordingly, our actual results may differ materially from the results discussed in our forward-looking statements. Our forward-looking statements contained herein speak only as of the date of this press release. Factors or events that we cannot predict, including risks related to an economic downturn or a recession in the United States and in other countries around the world; changes in political, business, regulatory, and economic conditions; changes in or to Fannie Mae and Freddie Mac (the “GSEs”), whether through Federal legislation, restructurings or a shift in business practices; failure to continue to meet the mortgage insurer eligibility requirements of the GSEs; competition for customers; lenders or investors seeking alternatives to private mortgage insurance; an increase in the number of loans insured through Federal government mortgage insurance programs, including those offered by the Federal Housing Administration; and other factors described in the risk factors contained in our most recent Annual Report on Form 10-K and other filings with the SEC, may cause our actual results to differ from those expressed in forward-looking statements. Although Enact believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, Enact can give no assurance that its expectations will be achieved and it undertakes no obligation to update publicly any forward-looking statements as a result of new information, future events, or otherwise, except as required by applicable law.

About Enact Holdings, Inc.

Enact
(Nasdaq: ACT), operating principally through its wholly-owned subsidiary Enact Mortgage Insurance Corporation since 1981, is a leading U.S. private mortgage insurance provider committed to helping more people achieve the dream of homeownership. Building on a deep understanding of lenders’ businesses and a legacy of financial strength, we partner with lenders to bring best-in class service, leading underwriting expertise, and extensive risk and capital management to the mortgage process, helping to put more people in homes and keep them there. By empowering customers and their borrowers, Enact seeks to positively impact the lives of those in the communities in which it serves in a sustainable way. Enact is headquartered in Raleigh, North Carolina.

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

Investor Contact
Daniel Kohl
[email protected]

Media Contact
Sarah Wentz
[email protected]

January 27, 2025 4:25 pm

Morningstar, Inc. to Announce Fourth-Quarter and Full-Year 2024 Financial Results on Feb. 26

Morningstar, Inc. to Announce Fourth-Quarter and Full-Year 2024 Financial Results on Feb. 26

CHICAGO–(BUSINESS WIRE)–Morningstar, Inc. (Nasdaq: MORN), plans to report its fourth-quarter and full-year 2024 financial results after the market closes on Wednesday, Feb. 26, 2025. The company does not hold analyst conference calls; however, investors may submit written questions to Morningstar at [email protected].

About Morningstar, Inc.

Morningstar, Inc. is a leading provider of independent investment insights in North America, Europe, Australia, and Asia. The Company offers an extensive line of products and solutions that serve a wide range of market participants, including individual and institutional investors in public and private capital markets, financial advisors and wealth managers, asset managers, retirement plan providers and sponsors, and issuers of fixed-income securities. Morningstar provides data and research insights on a wide range of investment offerings, including managed investment products, publicly listed companies, private capital markets, debt securities, and real-time global market data. Morningstar also offers investment management services through its investment advisory subsidiaries, with approximately $328 billion in AUMA as of Sept. 30, 2024. The Company operates through wholly-owned subsidiaries in 32 countries. For more information, visit www.morningstar.com/company. Follow Morningstar on X (formerly known as Twitter) @MorningstarInc.

MORN-C

View source version on businesswire.com: https://www.businesswire.com/news/home/20250124560749/en/

Media Contact: Michael Claussen, +1 312 696-6037 or [email protected]

KEYWORDS: United States North America Illinois

INDUSTRY KEYWORDS: Professional Services Finance Consulting Asset Management Banking Personal Finance

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January 27, 2025 4:25 pm

ORIC® Pharmaceuticals to Participate in Upcoming Investor Conferences

SOUTH SAN FRANCISCO, Calif. and SAN DIEGO, Jan. 27, 2025 (GLOBE NEWSWIRE) — ORIC Pharmaceuticals, Inc. (Nasdaq: ORIC), a clinical stage oncology company focused on developing treatments that address mechanisms of therapeutic resistance, today announced that management will participate in the following investor conferences in February:

Jones Research Precision Medicine Day – Participating in a fireside chat on Monday, February 3, 2025, at 12:30 p.m. ET
Guggenheim Securities SMID Cap Biotech Conference – Participating in a fireside chat on Wednesday, February 5, 2025, at 1:30 p.m. ET
Oppenheimer 35th Annual Healthcare Life Sciences Conference – Participating in a fireside chat on Tuesday, February 11, 2025, at 12:00 p.m. ET

Live webcasts of the discussions will be available through the investor section of the company’s website at www.oricpharma.com. Replays of the webcasts will be available for 90 days following the event.

About ORIC Pharmaceuticals, Inc.

ORIC Pharmaceuticals is a clinical stage biopharmaceutical company dedicated to improving patients’ lives by Overcoming Resistance In Cancer. ORIC’s clinical stage product candidates include (1) ORIC-114, a brain penetrant inhibitor that selectively targets EGFR exon 20, HER2 exon 20 and EGFR atypical mutations, being developed across multiple genetically defined cancers, and (2) ORIC-944, an allosteric inhibitor of the polycomb repressive complex 2 (PRC2) via the EED subunit, being developed for prostate cancer. Beyond these two product candidates, ORIC^® is also developing multiple precision medicines targeting other hallmark cancer resistance mechanisms. ORIC has offices in South San Francisco and San Diego, California. For more information, please go to www.oricpharma.com, and follow us on X or LinkedIn.

Contact:

Dominic Piscitelli, Chief Financial Officer
[email protected]
[email protected]

January 27, 2025 4:25 pm

Canada Goose Announces Renewal of Regulatory Relief Regarding Share Repurchase Program

Canada Goose Announces Renewal of Regulatory Relief Regarding Share Repurchase Program

TORONTO–(BUSINESS WIRE)–
Canada Goose Holdings Inc. (NYSE, TSX:GOOS) (“Canada Goose” or the “Company”) today announced that it obtained exemptive relief from the Ontario Securities Commission (“OSC”) which permits the Company to purchase up to 10% of the “public float” (within the meaning of the rules of the Toronto Stock Exchange (the “TSX”)) of its subordinate voting shares (the “Shares”) through the New York Stock Exchange and other U.S.-based trading systems (collectively, the “U.S. Markets”) as part of the Company’s normal course issuer bid announced on November 19, 2024 (the “Current Bid”). Absent the exemptive relief, purchases under the Current Bid on the U.S. Markets would be limited to a maximum of 5% of its outstanding Shares at the beginning of any 12-month period.

The Current Bid provides for the purchase for cancellation of up to 4,556,841 Shares over the twelve-month period commencing on November 22, 2024 and ending no later than November 21, 2025. This represents approximately 10% of the 45,568,419 Shares comprising the public float of the Company determined in accordance with TSX requirements as at November 8, 2024. As at November 8, 2024, there were 45,800,210 subordinate voting shares issued and outstanding. Purchases made in reliance on the exemptive relief as part of normal course issuer bids, including the Current Bid, will be made at market price in accordance with applicable securities laws and the terms of the exemptive relief.

The exemptive relief is valid for a period of 36 months from the date of issuance and applies to the Current Bid and any subsequent normal course issuer bid in effect until such time, subject to the terms of the exemptive relief. It is conditional upon, among other things, purchases being made in compliance with applicable U.S. rules governing share repurchases and Part 6 (Order Protection) of National Instrument 23-101 Trading Rules and at a price not higher than market price at the time of purchase. The aggregate number of Shares purchased on any exchange or market may not exceed 10% of the public float, as specified in Canada Goose’s notice accepted by the TSX in respect of the relevant normal course issuer bid, including the Current Bid. A similar exemptive relief had previously been granted to the Company by the OSC on January 25, 2022, for a period of 36 months from its issuance.

A copy of the decision from the OSC has been filed under Canada Goose’s SEDAR+ profile at www.sedarplus.ca.

About Canada Goose

Canada Goose is a performance luxury outerwear, apparel, footwear and accessories brand that inspires all people to thrive in the world outside. We are globally recognized for our commitment to Canadian manufacturing and our high standards of quality, craftsmanship and functionality. We believe in the power of performance, the importance of experience, and that our purpose is to keep the planet cold and the people on it warm. For more information, visit www.canadagoose.com.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements, including statements relating to normal course issuer bids, including the Current Bid, and the intended purchase for cancellation of Shares thereunder. These forward-looking statements generally can be identified by the use of words such as “believe,” “could,” “continue,” “expect,” “estimate,” “may,” “potential,” “would,” “will,” and other words of similar meaning. Each forward-looking statement contained in this press release is subject to substantial risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statement. Applicable risks and uncertainties include, among others, the impact on our operations of the current global economic conditions and their evolution and are discussed under “Cautionary Note regarding Forward-Looking Statements” and “Factors Affecting our Performance” in our interim and annual Management’s Discussion and Analysis (“MD&A”) as well as under “Risk Factors” in our Annual Report on Form 20-F for the year ended March 31, 2024. You are also encouraged to read our filings with the SEC, available at www.sec.gov, and our filings with Canadian securities regulatory authorities available on SEDAR+ at www.sedarplus.ca for a discussion of these and other risks and uncertainties. Investors, potential investors, and others should give careful consideration to these risks and uncertainties. We caution investors not to rely on the forward-looking statements contained in this press release when making an investment decision in our securities. The forward-looking statements in this press release speak only as of the date of this release, and we undertake no obligation to update or revise any of these statements.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250127425910/en/

Investors: [email protected]

Media: [email protected]

KEYWORDS: North America Canada

INDUSTRY KEYWORDS: Online Retail Fashion Luxury Retail Footwear

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January 27, 2025 4:25 pm

Everest Announces Preliminary Commentary on Full-Year and Fourth Quarter 2024 Results

Everest Announces Preliminary Commentary on Full-Year and Fourth Quarter 2024 Results

HAMILTON, Bermuda–(BUSINESS WIRE)–
Everest Group, Ltd. (NYSE: EG), a global underwriting leader providing best-in-class property, casualty, and specialty reinsurance and insurance solutions, today announced preliminary financial results in advance of its full year and quarterly earnings to be released on February 3, 2025.

The Company expects to report full-year 2024 net income in the range of $1.3 billion to $1.4 billion and non-GAAP net operating income in the range of $1.2 billion to $1.3 billion.

The above results are inclusive of unfavorable development of prior-year loss reserves of $1.5 billion. After current accident year strengthening of $229 million, total strengthening is $1.7 billion for the full-year and fourth quarter 2024.

In Everest’s Reinsurance segment, the Company strengthened prior year U.S. casualty reserves by $684 million for the full-year and fourth quarter 2024. The reserve strengthening was fully offset by favorable development of well-seasoned reserves in property and mortgage lines.

In the Company’s Insurance segment, Everest strengthened prior year U.S. casualty reserves by $1.1 billion and increased current accident year losses in U.S. casualty lines by $206 million, totaling $1.3 billion for the full-year and fourth quarter 2024. The reserve strengthening was driven by a combination of social inflation and portfolio concentrations in certain U.S. casualty lines classes.

As disclosed in an 8-K filed with the SEC after the market close on January 27, 2025, Everest formed a new “Other” segment, primarily comprised of certain sports and leisure lines after giving effect to the sale of the business in October 2024, run-off asbestos and environmental exposures, and certain discontinued insurance programs and coverage classes. Unfavorable development in the Company’s Other segment amounted to $425 million for both the full-year and fourth quarter 2024.

The Company also announced its new target objective to deliver a mid-teens total shareholder return over the cycle. It will no longer be providing detailed forward guidance.

“Our decisive actions this quarter follow a comprehensive reserve review. As a result of these actions, our casualty reserves are positioned with a risk margin above the actuarial central estimate,” said Jim Williamson, Everest President and CEO. “The Company has significantly fortified its U.S. casualty reserves, while taking aggressive underwriting action in certain classes exposed to social inflation, bolstering talent, and investing in our platform. We believe these actions strengthen our balance sheet and put Everest on a clear trajectory towards generating attractive returns throughout the cycle.”

We will host a conference call on Tuesday, January 28, 2025, beginning at 8:30 am Eastern Time to discuss our preliminary 2024 results. Dial in details can be obtained by completing the registration form available at: https://dpregister.com/sreg/10196536/fe6a16fa20

About Everest

Everest is a global underwriting leader providing best-in-class property, casualty, and specialty reinsurance and insurance solutions that address customers’ most pressing challenges. Known for a 50-year track record of disciplined underwriting, capital and risk management, Everest, through its global operating affiliates, is committed to underwriting opportunity for colleagues, customers, shareholders, and communities worldwide.

Everest common stock (NYSE: EG) is a component of the S&P 500 index.

Additional information about Everest, our people, and our products can be found on our website at www.everestglobal.com.

______________________________________________

The Company generally uses after-tax operating income (loss), a non-GAAP financial measure, to evaluate its performance. After-tax operating income (loss) consists of net income (loss) excluding after-tax net gains (losses) on investments and after-tax net foreign exchange income (expense) as the following reconciliation displays:


	Range
($ in billions)	Low end		High end
After-tax net operating income (loss)	$	1.2	$	1.3
After-tax net gains (losses) on investments		–		–
After-tax net foreign exchange income (expense)		0.1		0.1
Net income (loss)	$	1.3	$	1.4

Although net gains (losses) on investments and net foreign exchange income (expense) are an integral part of the Company’s insurance operations, the determination of net gains (losses) on investments and foreign exchange income (expense) is independent of the insurance underwriting process. The Company believes that the level of net gains (losses) on investments and net foreign exchange income (expense) for any particular period are not indicative of the performance of the underlying business in that particular period. Providing only a GAAP presentation of net income (loss) makes it more difficult for users of the financial information to evaluate the Company’s success or failure in its basic business and may lead to incorrect or misleading assumptions and conclusions. The Company understands that the equity analysts who follow the Company focus on after-tax operating income (loss) in their analyses for the reasons discussed above. The Company provides after-tax operating income (loss) to investors so that they have what management believes to be a useful supplement to GAAP information concerning the Company’s performance.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250127681911/en/

Media: Dawn Lauer

Chief Communications Officer

908.300.7670

Investors: Matt Rohrmann

Head of Investor Relations

908.604.7343

KEYWORDS: Ireland United Kingdom Europe Bermuda Caribbean

INDUSTRY KEYWORDS: Professional Services Insurance Finance

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