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Alterity Therapeutics Announces Positive ATH434 Phase 2 Trial Results in Multiple System Atrophy Led By Robust Clinical Efficacy

– Clinically Meaningful Benefit Observed at Both ATH434 Doses Studied –

– Achieved Statistical Significance with Up to 48% Slowing of Clinical Progression on UMSARS Rating Scale –

– Key MRI Biomarker Shows Iron Stabilization in MSA Affected Brain Regions –

– ATH434 Demonstrated a Favorable Safety Profile –

– Webcast Held Yesterday with Access to the Recording Below –

MELBOURNE, Australia and SAN FRANCISCO, Jan. 30, 2025 (GLOBE NEWSWIRE) — Alterity Therapeutics (ASX: ATH, NASDAQ: ATHE) (“Alterity” or “the Company”), a biotechnology company dedicated to developing disease modifying treatments for neurodegenerative diseases, today announced positive topline results from the ATH434-201 randomized, double-blind, placebo-controlled Phase 2 clinical trial in patients with early-stage multiple system atrophy (MSA).

The topline data showed that ATH434 produced clinically and statistically significant improvement on the modified UMSARS Part I, a functional rating scale that assesses disability on activities of daily living affected in MSA1. On this important clinical measure, ATH434 demonstrated 48% slowing of clinical progression at the 50 mg dose (p=0.03)^ and 29% slowing of clinical progression at the 75 mg dose (p=0.2) at Week 52 when compared with placebo. The 75 mg dose group showed a 62% slowing of progression (p=0.05) at Week 26. In addition to the robust efficacy demonstrated on the UMSARS I, trends of improved motor performance were observed on the Parkinson’s Plus rating scale2 and overall benefit was shown on the Clinical Global Impression of Severity at the 50 mg dose (p=0.009).  

Biomarkers were used to evaluate potential drug effect and target engagement. Regarding iron content by MRI, the 50 mg dose reduced iron accumulation in MSA affected brain regions (substantia nigra, putamen, and globus pallidus) and the 75 mg dose reduced iron accumulation in the globus pallidus. The reduced accumulation of iron was significant for the 50 mg dose group at 26 weeks (putamen, P=0.025) and approached statistical significance at 52 weeks (globus pallidus, P=0.08). Trends in preservation of brain volume were observed in the 50 mg and 75 mg groups relative to placebo at both 26 and 52 weeks of treatment.

“We are thrilled that ATH434 has demonstrated significant slowing of clinical progression and an excellent safety profile in this rare, rapidly progressive disease,” said David Stamler, M.D., Chief Executive Officer of Alterity. “Currently, there are no approved treatments that slow the progression of MSA and these results show that ATH434’s targeted iron engagement may truly have a disease modifying effect. The fact that we achieved statistical significance on the UMSARS is extremely meaningful because it assesses the functional areas affected in MSA and is the endpoint needed to support drug approval by the U.S. Food and Drug Administration (FDA). Based on the strength of these Phase 2 data, we look forward to engaging with the FDA as quickly as possible to discuss the path forward for accelerating the development of ATH434 given the tremendous unmet need for treating MSA. We are very grateful for the invaluable contributions of the study participants and the clinical sites who contributed to the study.”

Daniel Claassen, M.D., M.S., Professor of Neurology at Vanderbilt University Medical Center and Coordinating Investigator for the ATH434-201 Phase 2 study, commented “The findings from the study are compelling because ATH434 appears to have meaningfully slowed MSA progression and stabilized motor function. To date, no treatment has altered the progression of this devastating disease. The slowing of clinical progression in this study, particularly at 50 mg, is impressive. I look forward to continue working with Alterity to bring this therapy to patients, and I know the MSA community welcomes this exciting advancement.”

Dr. Stamler concluded, “We now have evidence that targeting excess labile iron in neurodegenerative disease can be achieved. By redistributing this reactive form of iron that contributes to disease pathogenesis, not only can we target α‑synuclein aggregation, but we can also break the vicious cycle underlying disease progression. This has implications for developing disease modifying treatments for orphan diseases such as MSA and Friedreich’s ataxia as well as major neurodegenerative disorders such as Parkinson’s disease and Alzheimer’s disease.”


Webcast details

The webcast recording can be accessed on the Events and Presentation page of the Company’s website here.


ATH434-201 Topline Data Summary

The ATH434-201 Phase 2 clinical trial is a randomized, double-blind, placebo-controlled investigation of 12 months treatment with ATH434 in participants with early-stage MSA. The trial enrolled globally with 23 sites in six countries. The study evaluated the efficacy, safety and pharmacokinetics of ATH434 as well as the effect of ATH434 on neuroimaging and protein biomarkers. Wearable movement sensors were employed to evaluate motor activities in an outpatient setting. The study enrolled 77 adults who were randomly assigned to receive one of two dose levels of ATH434 (50mg or 75mg) or placebo. Treatment was administered orally twice-a-day (BID).

ATH434 Efficacy Results (n=61)

The principal efficacy analyses were performed on the modified Intent-to-Treat (mITT) population, which includes enrolled participants who received study drug and had at least one MRI evaluation for brain iron at six months. There were approximately 20 patients per arm in the mITT. Both clinical doses demonstrated improvement relative to placebo over 52 weeks, with the 50 mg dose showing a greater treatment effect. Additional analyses are ongoing to understand the differences between the two groups.

Key Biomarker Endpoint:

On the primary endpoint of iron content by MRI, ATH434 demonstrated reduced or stabilized iron content in key brain regions affected by MSA.

  • Demonstrated target engagement of ATH434
  • The 50 mg dose reduced iron accumulation in the substantia nigra, putamen, and globus pallidus
    • The reduced accumulation of iron was significant at 26 weeks (putamen, P=0.025) and approached statistical significance at 52 weeks (globus pallidus, P=0.08)
  • The 75 mg dose reduced iron accumulation in the globus pallidus

Other biomarkers were used to evaluate potential drug effect and target engagement.

  • Brain Volume: ATH434 demonstrated a trend in preserving brain volume as compared to placebo at both 50 mg and 75 mg dose levels, as assessed by the MSA atrophy index (MSA-AI)3
  • NfL: The analysis of neurofilament light chain (NfL) levels in spinal fluid is ongoing

Key Clinical Endpoint: UMSARS Part I

The key secondary endpoint was defined as the change in the Unified MSA Rating Scale Part I (UMSARS I). UMSARS I is a functional rating scale that assesses disability and disease severity in MSA. It is the most meaningful endpoint in the trial, as it is the clinical endpoint of interest to support approval by regulatory authorities such as the FDA.

  • Placebo treated patients declined by a mean of 4.5 points over 26 weeks and 8.2 points over 52 weeks
  • The 50 mg dose declined by a mean of 4.3 points over 52 weeks, equivalent to a 48% slowing of clinical progression (p=0.03)
  • The 75 mg dose declined by a mean of 5.8 points over 52 weeks, equivalent to a 29% slowing of clinical progression (p=0.2)
  • The 75 mg dose declined by a mean of 1.8 points over 26 weeks equivalent to a 62% slowing of clinical progression (p=0.05)
  • Both dose groups clearly separated from placebo.

Additional Secondary Endpoints:

Observed trends of improved motor performance support the efficacy of ATH434 in the clinical setting:

  • Clinical Global Impression of Severity4 (7-point scale, higher score worse)
    • Mean change at 50 mg: -0.81 (p=0.009)
    • Mean change at 75 mg: -0.18 (p=NS)
  • Parkinson Plus total motor scale: Trends in both dose groups at 26 and 52 weeks with a clinical benefit apparent in multiple domains
  • Increased activity on wearable sensors in both groups with increases in step count, bouts of walking, total walking time, and standing time
  • Orthostatic Hypotension Symptom Assessment (patient rated) showed trends favoring benefit in both groups (p=0.13 at 50 mg)

ATH434 Safety Results (n=77)

The safety population includes all enrolled participants who received at least one dose of study drug. Overall, 26 participants received the 50 mg dose, 25 participants received the 75 mg dose, and 26 participants received placebo.

  • ATH434 was well-tolerated with similar adverse event (AE) rates in ATH434 treatment groups and placebo
  • Most AEs were mild to moderate in severity
  • No serious adverse events (SAEs) related to ATH434 were reported
  • Discontinuations for AEs were similar in the placebo (n=3) and 75 mg dose (n=5) groups and lowest at 50 mg (n=0). None of the AEs leading to discontinuation were related to treatment.

About ATH434

Alterity’s lead candidate, ATH434, is an oral agent designed to inhibit the aggregation of pathological proteins implicated in neurodegeneration. ATH434 has been shown preclinically to reduce α-synuclein pathology and preserve neuronal function by restoring normal iron balance in the brain. As an iron chaperone, it has excellent potential to treat Parkinson’s disease as well as various Parkinsonian disorders such as Multiple System Atrophy (MSA). ATH434 successfully completed Phase 1 studies demonstrating the agent is well tolerated and achieved brain levels comparable to efficacious levels in animal models of MSA. ATH434 recently announced positive results from the randomized, double-blind, placebo-controlled Phase 2 clinical trial in patients with early-stage MSA. A second Phase 2 open-label 2 Biomarker trial in patients with more advanced MSA is ongoing. ATH434 has been granted Orphan Drug Designation for the treatment of MSA by the U.S. FDA and the European Commission.

About Multiple System Atrophy

Multiple System Atrophy (MSA) is a rare, neurodegenerative disease characterized by failure of the autonomic nervous system and impaired movement. The symptoms reflect the progressive loss of function and death of different types of nerve cells in the brain and spinal cord. It is a rapidly progressive disease and causes profound disability. MSA is a Parkinsonian disorder characterized by a variable combination of slowed movement and/or rigidity, autonomic instability that affects involuntary functions such as blood pressure maintenance and bladder control, and impaired balance and/or coordination that predisposes to falls. A pathological hallmark of MSA is the accumulation of the protein α-synuclein within glia, the support cells of the central nervous system, and neuron loss in multiple brain regions. MSA affects at least 15,000 individuals in the U.S., and while some of the symptoms of MSA can be treated with medications, currently there are no drugs that are able to slow disease progression and there is no cure.5

About Alterity Therapeutics Limited

Alterity Therapeutics is a clinical stage biotechnology company dedicated to creating an alternate future for people living with neurodegenerative diseases. The Company’s lead asset, ATH434, has the potential to treat various Parkinsonian disorders and is currently being evaluated in two Phase 2 clinical trials in Multiple System Atrophy. Alterity also has a broad drug discovery platform generating patentable chemical compounds to treat the underlying pathology of neurological diseases. The Company is based in Melbourne, Australia, and San Francisco, California, USA. For further information please visit the Company’s web site at www.alteritytherapeutics.com.

Definitions and References

Unified MSA Rating Scale, Part I (historical review). Domains assessed include speech, swallowing, handwriting, cutting food/handling utensils, dressing, hygiene, walking, falling, orthostatic symptoms, urinary function, sexual function and bowel function.

^ All p-values are uncorrected

2 Natural History and Neuroprotection in Parkinson Plus Syndromes Parkinson’s Plus Rating Scale, (NNIPPS-PPS)

3 MSA Atrophy Index: This index measures the degree of atrophy relative to a normal population, with more negative values indicating greater atrophy

4 Clinical Global Impression of Severity: a clinician assessment of the total picture of the subject including the impact of the illness on function and level of distress

5
Multiple System Atrophy | National Institute of Neurological Disorders and Stroke (nih.gov)

Authorisation & Additional information

This announcement was authorized by David Stamler, CEO of Alterity Therapeutics Limited.

Investor and Media Contacts:

Australia

Ana Luiza Harrop
[email protected]
+61 452 510 255

U.S.

Remy Bernarda
[email protected]
+1 (415) 203-6386

Forward Looking Statements

This press release contains “forward-looking statements” within the meaning of section 27A of the Securities Act of 1933 and section
21E
of
the
Securities
Exchange
Act
of
1934.
The
Company
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Important
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forward-looking
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Factors”
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including
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Annual
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20-F
as
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including,
but
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limited
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following:
statements
relating
to
the
Company’s drug development program, including, but not limited to the initiation, progress and outcomes of clinical trials of the Company’s
drug
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ATH434,
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testing,
regulatory
approval,
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and
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Company’s
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but
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ATH434,
the
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Company
to
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additional
future
sources
of
financing, unexpected adverse side effects or inadequate therapeutic efficacy of the Company’s drug compounds, including, but not limited
to,
ATH434,
that
could
slow
or prevent products
coming
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market,
the uncertainty
of obtaining patent protection
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Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks
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N-able Furthers Open Ecoverse Vision with Launch of AI-Powered Developer Portal—Accelerating API Integrations for Faster, Seamless IT and Security Services Delivery

N-able Furthers Open Ecoverse Vision with Launch of AI-Powered Developer Portal—Accelerating API Integrations for Faster, Seamless IT and Security Services Delivery

Portal automates access to N-able’s end-to-end IT management and cybersecurity platform APIs and the creation of custom scripts, to more rapidly build business value

BURLINGTON, Mass.–(BUSINESS WIRE)–N-able, Inc. (NYSE: NABL), a global software company helping IT professionals deliver security, data protection as-a-service, and remote monitoring and management solutions, today announced the launch of the N-able Developer Portal. The AI-powered portal accelerates API integrations with the N-able end-to-end IT management and cybersecurity platform—automating development tasks and the ability to create custom solutions—to deliver faster time to value for IT and security services.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20250130871047/en/

N-able API Developer Portal (Graphic: Business Wire)

N-able API Developer Portal (Graphic: Business Wire)

“This is your new AI assistant to help you automate at scale, to integrate seamlessly with N-able APIs, and take your IT and security services to new levels of efficiency and success,” stated Nicole Reineke, Distinguished Product Manager, AI Strategy, N-able. “The N-able Developer Portal takes our open Ecoverse to another level. As I’ve been sharing its possibilities with our partners, my consistent message has been that whether you’re looking to enhance service delivery or create custom scripts, this portal isn’t a one-size fits all; it’s truly built with you and your unique needs in mind.”

With the new portal, N-able partners can:

  • Build custom integrations: Tailor N-able IT management and security solutions to fit seamlessly into the partner’s unique environment.
  • Automate repetitive tasks: Save time and enhance precision with APIs that streamline daily workflows.
  • Enhance service delivery: Use advanced APIs to provide managed services faster and with greater consistency.
  • Reduce manual processes: Reallocate resources to focus on growth and user engagement.
  • Quickly leverage the N-able open Ecoverse: Connect rapidly with N-able’s Technology Alliance Program (TAP) partners for maximum tech-stack flexibility.

“Regarding the new N-able Developer Portal, we are looking forward to diving in and utilizing it here at Meta Eagle,” said Lee Robinson, Co-founder and Director, Meta Eagle, Ltd. “It will help us create scripts and integrations to our existing systems quicker than ever before. The cookbook has always been a great repository for automation, now with the AI feature and lists of APIs we can streamline even further.”

Core Features of the Developer Portal include:

  • Interactive documentation to guide developers

  • AI search and discovery ensures you can find what you are looking for quickly

  • AI-suggested scripts and solutions based on user input and requirements

  • API references that provide clarity and precision across endpoints and the parameter

  • Dynamic code previews that support 20+ languages, including Go, Shell, and JSON

  • Recipes that power insights with over 200 built-in, automated scripts

“The new partner portal will be an asset to teams that leverage the N-able APIs to gain efficiency through automation,” explained Jimmy Puckett, CEO, Spinen, Inc. “The portal is very interactive, and I am excited to see real-world examples through recipes. Additionally, having sample code in all languages will help teams get started. N-able’s commitment to the open platform is evident in this investment.”

The N-able Developer Portal is open to all N-able partners and can be accessed by visiting developer.n-able.com.

About N-able

N-able fuels IT services providers with powerful software solutions to monitor, manage, and secure their customers’ systems, data, and networks. Built on a scalable platform, we offer secure infrastructure and tools to simplify complex ecosystems, as well as resources to navigate evolving IT needs. We help partners excel at every stage of growth, protect their customers, and expand their offerings with an ever-increasing, flexible portfolio of integrations from leading technology providers. n-able.com

© 2025 N-able Solutions ULC and N-able Technologies Ltd. All rights reserved.

The N-able trademarks, service marks, and logos are the exclusive property of N-able Solutions ULC and N-able Technologies Ltd. All other trademarks are the property of their respective owners.

Category: Company

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INDUSTRY KEYWORDS: Data Management Security Technology Other Technology Software Networks Artificial Intelligence

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N-able API Developer Portal (Graphic: Business Wire)
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Cognition’s Positive Phase 2 ‘SHIMMER’ Study of Zervimesine (CT1812) in Dementia with Lewy Bodies (DLB) will be Presented in a Podium Presentation at ILBDC

– Study demonstrated strong therapeutic responses across behavioral, functional, cognitive, and movement measures in patients with mild-to-moderate DLB –

– Zervimesine-treated participants tested 86% better on behavioral outcomes (NPI A-L), 52% on activities of daily living, 91% on cognitive fluctuations, 62% on motor symptoms compared to placebo –

PURCHASE, N.Y., Jan. 30, 2025 (GLOBE NEWSWIRE) — Cognition Therapeutics, Inc., (the Company or Cognition) (NASDAQ: CGTX), a clinical stage company developing drugs that treat neurodegenerative disorders, announced that James E. Galvin, MD, MPH will present topline results from the ‘SHIMMER’ study of zervimesine (CT1812) in dementia with Lewy bodies during an oral presentation at the International Lewy Body Dementia Conference (ILBDC). Dr. Galvin is director of the Comprehensive Center for Brain Health at the University of Miami Miller School of Medicine and was the study director and principal investigator on the SHIMMER study grant from the National Institute of Aging. The presentation is taking place on January 31, 2025 at 2:00 pm local time in Amsterdam, Netherlands.

“Dr. Galvin’s presentation is an important opportunity to educate an international audience of advocates, scientists and physicians about the impressive efficacy signals that were observed in participants treated with zervimesine (CT1812),” stated Anthony O. Caggiano, MD, PhD, Cognition’s CMO and head of R&D. “DLB is a complex disease with an array of physical and psychological symptoms that can progress rapidly and are ultimately fatal. Zervimesine-treated participants tested higher across behavioral, cognitive, functional and motor symptoms than their placebo-treated counterparts.”

The Phase 2 SHIMMER study randomized 130 adults with mild-to-moderate DLB who took a daily oral dose of zervimesine or placebo for six months. The study met its primary endpoint of safety and tolerability. As will be presented at ILBDC, zervimesine-treated DLB patients scored an average of 86% better than placebo-treated patients on the neuropsychiatric inventory (NPI) A-L at the end of the study. This tool describes the frequency and severity of 12 separate behavioral symptoms. In SHIMMER, patients receiving zervimesine had fewer or less severe hallucinations and delusions and less anxiety and agitation than placebo-treated patients. These symptoms are a hallmark of DLB and can be debilitating for patients. The reduction in these behavioral symptoms was measured not only in patients but also in their care partners, who reported improvements in their levels of distress caused by these symptoms.

Participants treated with zervimesine also preserved 52% more of their ability to care for themselves, as measured by the activities of daily living (ADCS-ADL) scale, than did placebo-treated participants. This was likely aided by a 91% reduction in cognitive fluctuations in zervimesine-treated patients. Cognitive fluctuations are another hallmark of DLB and are described as a non-responsive state that can occur suddenly and last for hours. The person experiencing the fluctuation may or may not be aware that it is happening, making it a disorienting and upsetting occurrence. In addition, zervimesine treatment allowed patients to maintain 62% better motor function (gait, balance, tremor) than placebo.

“Older adults with DLB are often placed in care facilities not because of memory issues, but due to the severity of neuropsychiatric or motor symptoms that overwhelm their caregivers,” explained Dr. Galvin. “Patients on zervimesine had fewer cognitive fluctuations and showed better motor control than placebo-treated patients. These positive changes were reflected in zervimesine-treated patients’ ability to dress, feed and bathe themselves and hold conversations, which are activities of daily living reflected in the ADCS-ADL score. The reduction in these symptoms may allow people with DLB to live at home with the assistance of their care partners and be present in their loved one’s lives longer.”

Zervimesine demonstrated a favorable safety and tolerability profile in SHIMMER, with most treatment-related adverse events being mild or moderate, consistent with previous clinical experience.

Cognition Therapeutics at ILBDC:
Title: Results from COG1201: A Proof-of-Concept Study of CT1812 in Participants with Mild-to-Moderate Dementia with Lewy Bodies
Authors: Galvin JE, Tolea MI, Fargo KN, Taylor A, Scharre DW, Sha S, Hamby ME, Iaci JF, Grundman M, Caggiano AO


Dr. Galvin’s slide presentation will be available on the Cognition Therapeutics website following the presentation.

About the SHIMMER Study

The SHIMMER study (NCT05225415) is an exploratory double-blind, placebo-controlled Phase 2 clinical trial that enrolled 130 adults with mild-to-moderate DLB, who were randomized to either daily oral doses of zervimesine (100 mg or 300 mg) or placebo for six months. A total of 88 participants were randomized to the two treatment arms and 42 to the placebo arm. Assessments were conducted throughout the study using a number of tools, including the Neuropsychiatric Inventory (NPI) to measure changes in hallucinations, anxiety and delusions; the Clinician Assessment of Fluctuation (CAF) to measure the frequency and duration of cognitive fluctuations; the Montreal Cognitive Assessment (MoCA) and Cognitive Drug Research Battery (CDR), which track cognitive performance; and the MDS-Unified Parkinson’s Disease Rating Scale (MDS-UPDRS) Part III, an objective assessment of parkinsonism.

The SHIMMER study is supported by a grant award from the National Institute on Aging of the National Institutes of Health (NIH) totaling approximately $30 million (R01AG071643) and was conducted in collaboration with James E. Galvin, MD, MPH, director of the Comprehensive Center for Brain Health at the University of Miami Miller School of Medicine and the Lewy Body Dementia Association (LBDA).

About Zervimesine (CT1812)

Zervimesine is an experimental orally delivered small molecule oligomer antagonist designed to penetrate the blood-brain barrier and bind selectively to the sigma-2 (σ-2) receptor complex, which is involved in the regulation of key cellular processes. These processes are disrupted by toxic interaction with Aβ or α-synuclein oligomers, oxidative stress and other disease drivers. The ensuing damage to sensitive synapses can progress to a loss of synaptic function, which manifests as cognitive impairment and disease progression.

About Cognition Therapeutics, Inc. 
Cognition Therapeutics, Inc., is a clinical-stage biopharmaceutical company discovering and developing innovative, small molecule therapeutics targeting age-related degenerative disorders of the central nervous system and retina. We currently are investigating our lead candidate, zervimesine (CT1812), in clinical programs in dementia with Lewy bodies (DLB) and Alzheimer’s disease, including the ongoing START study (NCT05531656) in early Alzheimer’s disease. We believe zervimesine and our pipeline of σ-2 receptor modulators can regulate pathways that are impaired in these diseases that are functionally distinct from other approaches for the treatment of degenerative diseases. More about Cognition Therapeutics and our pipeline can be found at https://cogrx.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. All statements contained in this press release or made during the conference, other than statements of historical facts or statements that relate to present facts or current conditions, including but not limited to, statements regarding our product candidates, including zervimesine (CT1812), and any expected or implied benefits or results, including that initial clinical results observed with respect to zervimesine will be replicated in later trials and our future clinical development plans, and statements regarding our clinical trials of zervimesine and any analyses of the results therefrom, are forward-looking statements. These statements, including statements relating to the timing and expected results of our clinical trials involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. In some cases, you can identify forward-looking statements by terms such as “may,” “might,” “will,” “should,” “expect,” “plan,” “aim,” “seek,” “anticipate,” “could,” “intend,” “target,” “project,” “contemplate,” “believe,” “estimate,” “predict,” “forecast,” “potential” or “continue” or the negative of these terms or other similar expressions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition, and results of operations. These forward-looking statements speak only as of the date of this press release and are subject to a number of risks, uncertainties and assumptions, some of which cannot be predicted or quantified and some of which are beyond our control. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: competition; our ability to secure new (and retain existing) grant funding; our ability to grow and manage growth, maintain relationships with suppliers and retain our management and key employees; our ability to successfully advance our current and future product candidates through development activities, preclinical studies and clinical trials and costs related thereto; uncertainties inherent in the results of preliminary data, pre-clinical studies and earlier-stage clinical trials being predictive of the results of early or later-stage clinical trials; the timing, scope and likelihood of regulatory filings and approvals, including regulatory approval of our product candidates; changes in applicable laws or regulations; the possibility that the we may be adversely affected by other economic, business or competitive factors, including ongoing economic uncertainty; our estimates of expenses and profitability; the evolution of the markets in which we compete; our ability to implement our strategic initiatives and continue to innovate our existing products; our ability to defend our intellectual property; the impacts of ongoing global and regional conflicts on our business, supply chain and labor force; and the risks and uncertainties described more fully in the “Risk Factors” section of our annual and quarterly reports filed with the Securities & Exchange Commission and are available at www.sec.gov. These risks are not exhaustive and we face both known and unknown risks. You should not rely on these forward-looking statements as predictions of future events. The events and circumstances reflected in our forward-looking statements may not be achieved or occur, and actual results could differ materially from those projected in the forward-looking statements. Moreover, we operate in a dynamic industry and economy. New risk factors and uncertainties may emerge from time to time, and it is not possible for management to predict all risk factors and uncertainties that we may face. Except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements contained herein, whether as a result of any new information, future events, changed circumstances or otherwise.

Contact Information:

Cognition Therapeutics, Inc.
[email protected]		 Casey McDonald (media)
Tiberend Strategic Advisors, Inc.
[email protected]		 Mike Moyer (investors)
LifeSci Advisors
[email protected]

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



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S&T Bancorp, Inc. Announces Fourth Quarter and Full Year 2024 Results

PR Newswire


INDIANA, Pa., Jan. 30, 2025 /PRNewswire/ — S&T Bancorp, Inc. (S&T) (NASDAQ: STBA), the holding company for S&T Bank, announced fourth quarter and full year 2024 earnings. Net income of $33.1 million, or $0.86 per diluted share, for the fourth quarter of 2024 compared to net income of $32.6 million, or $0.85 per diluted share, for the third quarter of 2024 and net income of $37.0 million, or $0.96 per diluted share, for the fourth quarter of 2023.

Net income was $131.3 million for 2024 compared to net income of $144.8 million for 2023. Earnings per diluted share (EPS) was $3.41 for 2024 compared to $3.74 in 2023. S&T had record net income and EPS in 2023 related to the impact of rising interest rates on net interest income.

Fourth
 Quarter of 2024 Highlights:

  • Strong return metrics with return on average assets (ROA) of 1.37%, return on average equity (ROE) of 9.57% and return on average tangible equity (ROTE) (non-GAAP) of 13.25% compared to ROA of 1.35%, ROE of 9.58% and ROTE (non-GAAP) of 13.35% for the third quarter of 2024.
  • Pre-provision net revenue to average assets (PPNR) (non-GAAP) was 1.72% compared to 1.78% for the third quarter of 2024.
  • Net interest margin on a fully taxable equivalent basis (NIM) (FTE) (non-GAAP) was solid at 3.77% compared to 3.82% in the third quarter of 2024.
  • Total portfolio loans increased $53.9 million, or 2.79% annualized, compared to September 30, 2024.
  • Total deposits increased $128.3 million, including customer deposit growth of $78.3 million, or 4.15% annualized, and higher brokered deposits of $50.0 million compared to the third quarter of 2024.
  • Asset quality improvement drove a provision for credit losses of negative $2.5 million compared to negative $0.5 million in the third quarter of 2024.
  • Net recoveries were $0.1 million compared to net charge-offs of $2.1 million in the third quarter of 2024.
  • Nonperforming assets remained low at $27.9 million, or 0.36% of total loans plus other real estate owned (OREO), compared to $31.9 million, or 0.41%, at September 30, 2024.

Full Year 2024 Highlights:

  • Full year 2024 results remained strong after having record net income and EPS in 2023 related to the impact of rising interest rates.
  • Net income was $131.3 million compared to $144.8 million for 2023 and EPS was $3.41 per diluted share compared to $3.74 in 2023.
  • Strong return metrics with ROA of 1.37%, ROE of 9.86% and ROTE (non-GAAP) of 13.84% compared to ROA of 1.56%, ROE of 11.80% and ROTE (non-GAAP) of 17.15% for the prior year.
  • PPNR (non-GAAP) was 1.77% compared to 2.12% in the prior year.
  • NIM (FTE) (non-GAAP) was solid at 3.82% compared to 4.13% for the prior year.
  • Total deposits increased $261.3 million compared to 2023. Customer deposit growth of $411.7 million, or 5.76%, was offset by lower brokered deposits of $150.4 million.
  • Total portfolio loans increased $89.6 million, or 1.17%, compared to December 31, 2023.
  • Improvement in asset quality drove a provision for credit losses of only $0.1 million compared to $17.9 million in 2023.
  • Net charge-offs were $8.3 million, or 0.11% of average loans, compared to net charge-offs of $13.2 million, or 0.18% of average loans, in the prior year.
  • Nonperforming assets remained low at $27.9 million, or 0.36% of total loans plus OREO, compared to $23.0 million, or 0.30%, at December 31, 2023.

“I’m incredibly proud of our results for the fourth quarter and all that we achieved in 2024,” said Chris McComish, chief executive officer. “Our performance was driven through meaningful progress on our key business drivers, including consistent growth in our customer deposit franchise and ongoing improvement in asset quality. We achieved excellent return and profitability metrics and have record levels of capital. We remain steadfast in our commitment to living our people-forward purpose every day as evidenced by our industry leading customer and employee loyalty. As we enter 2025, we do so with great momentum and optimism about S&T’s growth prospects.”

Fourth
 Quarter of 2024 Results (three months ended December 31, 2024)

Net Interest Income

Net interest income was $83.3 million for the fourth quarter of 2024 compared to $84.5 million for the third quarter of 2024. The decrease of $1.2 million in net interest income was driven by lower interest income on loans due to a decline in interest rates which was partially offset by lower funding costs. NIM (FTE) (non-GAAP) was 3.77% compared to 3.82% in the prior quarter. The yield on total average earning assets decreased 15 basis points to 5.78% compared to 5.93% in the third quarter of 2024. Total average interest-bearing liability costs decreased 14 basis points to 3.03% compared to 3.17% in the third quarter of 2024.

Asset Quality

Asset quality continued to improve in the fourth quarter of 2024. The provision for credit losses was negative $2.5 million for the fourth quarter of 2024 compared to negative $0.5 million in the third quarter of 2024. The decrease in the provision for credit losses primarily related to a lower allowance for credit losses driven by decreases in criticized and classified loans and net recoveries compared to the prior quarter. Net loan recoveries were $0.1 million for the fourth quarter of 2024 compared to net loan charge-offs of $2.1 million in the third quarter of 2024. The allowance for credit losses was $101.5 million, or 1.31% of total portfolio loans, at December 31, 2024 compared to $104.3 million, or 1.36%, at September 30, 2024. Nonperforming assets to total loans plus OREO was low at 0.36% at December 31, 2024 compared to 0.41% at September 30, 2024.

Noninterest Income and Expense

Noninterest income decreased $0.8 million to $11.1 million in the fourth quarter of 2024 compared to $11.9 million in the third quarter of 2024. The decrease was primarily due to a $2.6 million realized loss related to the repositioning of securities into longer duration, higher-yielding securities in the fourth quarter of 2024 compared to a similar $2.2 million realized loss on the sale of securities in the third quarter of 2024. Noninterest expense was $55.4 million in both the fourth and third quarters of 2024. Expenses were relatively consistent quarter over quarter with salaries and benefits lower by $0.5 million due to a decrease in incentives.

Financial Condition

Total assets were $9.7 billion at December 31, 2024 compared to $9.6 billion at September 30, 2024. Total portfolio loans increased $53.9 million, or 2.79% annualized, compared to September 30, 2024. The consumer loan portfolio increased $35.2 million with growth in residential mortgages of $37.0 million compared to September 30, 2024. The commercial loan portfolio increased $18.7 million with growth in commercial real estate of $60.1 million partially offset by a decrease in commercial construction of $33.6 million and a decrease in commercial and industrial of $7.8 million compared to September 30, 2024. Total deposits increased $128.3 million compared to September 30, 2024. Certificates of Deposits (CDs) increased $96.6 million which included $50.0 million of additional brokered CDs compared to September 30, 2024. Demand deposits increased $27.7 million, interest-bearing demand deposits increased $39.5 million and money market deposits decreased $33.8 million compared to September 30, 2024. Total borrowings decreased $88.1 million to $250.3 million compared to $338.4 million at September 30, 2024 primarily related to deposit growth.

S&T continues to maintain a strong regulatory capital position with all capital ratios above the well-capitalized thresholds of federal bank regulatory agencies.

Full Year 2024 Results
 (twelve months ended December 31, 2024)

Net income was $131.3 million for 2024 compared to net income of $144.8 million for 2023. EPS was $3.41 compared to $3.74 in 2023. S&T had record net income and EPS in 2023 related to the impact of rising interest rates on net interest income.

Net interest income decreased $14.6 million, or 4.18%, to $334.8 million compared to $349.4 million in 2023. NIM (FTE) (non-GAAP) decreased 31 basis points to 3.82% compared to 4.13% for 2023. The decreases in both net interest income and NIM (FTE) (non-GAAP) were primarily due to the impact of higher interest rates on funding costs in 2024. While higher interest rates positively impacted interest income, the increase in interest income was more than offset by higher interest expense. The yield on total average earning assets increased 23 basis points to 5.87% compared to 5.64% in 2023. Total average interest-bearing liability costs increased 75 basis points to 3.09% compared to 2.34% in 2023 due in part to a shift to higher-costing money market and certificates of deposit.

Noninterest income decreased $8.5 million to $49.1 million compared to $57.6 million in the prior year. The decrease was mainly related to $7.9 million of realized losses from the repositioning of securities into longer duration, higher-yielding securities. Other noninterest income decreased $0.8 million primarily related to a gain of $3.9 million on the sale of OREO in 2023 compared to a $3.5 million gain from the exchange offer for Visa Class B-1 common stock in 2024.

Noninterest expense increased $8.6 million, or 4.09%, to $218.9 million compared to $210.3 million in 2023. Salaries and employee benefits increased $10.5 million primarily due to annual merit increases, the acquisition of talent and higher incentives and medical costs. Offsetting the increase in salaries and benefits were decreases in professional services and legal of $2.4 million and other noninterest expense of $3.2 million compared to 2023. The decrease in professional services and legal was primarily due to higher consulting expense in 2023 compared to 2024. The decrease in other noninterest expense was due to a decrease of $2.1 million related to the adoption of new accounting guidance for tax credit equity investments where the amortization of these investments is now included in tax expense versus other expense in 2023 and a $2.1 million decrease in loan collection and appraisal expense compared to 2023.

Asset quality improved substantially in 2024 driving a lower allowance for credit losses and minimal provision for credit losses. The provision for credit losses was only $0.1 million compared to $17.9 million for 2023 primarily due to lower criticized and classified loans and lower net charge-offs. Net loan charge-offs were $8.3 million for 2024 compared to $13.2 million for 2023. The allowance for credit losses was 1.31% of total portfolio loans at December 31, 2024 compared to 1.41% at December 31, 2023. Nonperforming assets remained low at $27.9 million compared to $23.0 million in the prior year resulting in a nonperforming assets to total loans plus OREO ratio of 0.36% compared to 0.30% at December 31, 2023.

Dividend

S&T’s Board of Directors approved a $0.34 per share cash dividend on January 29, 2025. This is an increase of $0.01, or 3.03%, compared to a $0.33 per share cash dividend declared in the same period in the prior year. The dividend is payable February 27, 2025 to shareholders of record on February 13, 2025. Dividends declared in 2024 increased $0.04, or 3.10%, to $1.33 compared to $1.29 for 2023.

Conference Call

S&T will host its fourth quarter 2024 earnings conference call live over the Internet at 1:00 p.m. ET on Thursday, January 30, 2025. To access the webcast, go to S&T Bancorp, Inc.’s Investor Relations webpage www.stbancorp.com. After the live presentation, the webcast will be archived at www.stbancorp.com for 12 months.

About S&T Bancorp, Inc. and S&T Bank

S&T Bancorp, Inc. is a $9.7 billion bank holding company that is headquartered in Indiana, Pennsylvania and trades on the NASDAQ Global Select Market under the symbol STBA. Its principal subsidiary, S&T Bank, was established in 1902 and operates in Pennsylvania and Ohio. For more information, visit stbancorp.com or stbank.com. Follow us on Facebook, Instagram and LinkedIn.

Forward-Looking Statements

This information contains or incorporates statements that we believe are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to our financial condition, results of operations, plans, objectives, outlook for earnings, revenues, expenses, capital and liquidity levels and ratios, asset levels, asset quality, financial position and other matters regarding or affecting S&T and its future business and operations. Forward-looking statements are typically identified by words or phrases such as “will likely result,” “expect,” “anticipate,” “estimate,” “forecast,” “project,” “intend,” “believe,” “assume,” “strategy,” “trend,” “plan,” “outlook,” “outcome,” “continue,” “remain,” “potential,” “opportunity,” “comfortable,” “current,” “position,” “maintain,” “sustain,” “seek,” “achieve,” and variations of such words and similar expressions, or future or conditional verbs such as will, would, should, could or may. Although we believe the assumptions upon which these forward-looking statements are based are reasonable, any of these assumptions could prove to be inaccurate and the forward-looking statements based on these assumptions could be incorrect. The matters discussed in these forward-looking statements are subject to various risks, uncertainties and other factors that could cause actual results and trends to differ materially from those made, projected, or implied in or by the forward-looking statements depending on a variety of uncertainties or other factors including, but not limited to: credit losses and the credit risk of our commercial and consumer loan products; changes in the level of charge-offs and changes in estimates of the adequacy of the allowance for credit losses, or ACL; cyber-security concerns; rapid technological developments and changes; operational risks or risk management failures by us or critical third parties, including fraud risk; our ability to manage our reputational risks; sensitivity to the interest rate environment, a rapid increase in interest rates or a change in the shape of the yield curve; a change in spreads on interest-earning assets and interest-bearing liabilities; the transition from LIBOR as a reference rate; regulatory supervision and oversight, including changes in regulatory capital requirements and our ability to address those requirements; unanticipated changes in our liquidity position; unanticipated changes in regulatory and governmental policies impacting interest rates and financial markets; changes in accounting policies, practices or guidance; legislation affecting the financial services industry as a whole, and S&T, in particular; developments affecting the industry and the soundness of financial institutions and further disruption to the economy and U.S. banking system; the outcome of pending and future litigation and governmental proceedings; increasing price and product/service competition; the ability to continue to introduce competitive new products and services on a timely, cost-effective basis; managing our internal growth and acquisitions; the possibility that the anticipated benefits from acquisitions cannot be fully realized in a timely manner or at all, or that integrating the acquired operations will be more difficult, disruptive or costly than anticipated; containing costs and expenses; reliance on significant customer relationships; an interruption or cessation of an important service by a third-party provider; our ability to attract and retain talented executives and employees; general economic or business conditions, including the strength of regional economic conditions in our market area; environmental, social and governance practices and disclosures, including climate change, hiring practices, the diversity of the work force, and racial and social justice issues; deterioration of the housing market and reduced demand for mortgages; deterioration in the overall macroeconomic conditions or the state of the banking industry that could warrant further analysis of the carrying value of goodwill and could result in an adjustment to its carrying value resulting in a non-cash charge to net income; the stability of our core deposit base and access to contingency funding; re-emergence of turbulence in significant portions of the global financial and real estate markets that could impact our performance, both directly, by affecting our revenues and the value of our assets and liabilities, and indirectly, by affecting the economy generally and access to capital in the amounts, at the times and on the terms required to support our future businesses.

Many of these factors, as well as other factors, are described in our Annual Report on Form 10-K for the year ended December 31, 2023, including Part I, Item 1A-“Risk Factors” and any of our subsequent filings with the SEC. Forward-looking statements are based on beliefs and assumptions using information available at the time the statements are made. We caution you not to unduly rely on forward-looking statements because the assumptions, beliefs, expectations and projections about future events may, and often do, differ materially from actual results. Any forward-looking statement speaks only as to the date on which it is made, and we undertake no obligation to update any forward-looking statement to reflect developments occurring after the statement is made.

Non-GAAP Financial Measures

In addition to traditional measures presented in accordance with GAAP, our management uses, and this information contains or references, certain non-GAAP financial measures, such as tangible book value, return on average tangible shareholder’s equity, pre-provision net revenue to average assets, efficiency ratio, tangible common equity to tangible assets and net interest margin on an FTE basis. We believe these non-GAAP financial measures provide information useful to investors in understanding our underlying operational performance and our business and performance trends as they facilitate comparisons with the performance of other companies in the financial services industry. Although we believe that these non-GAAP financial measures enhance investors’ understanding of our business and performance, these non-GAAP financial measures should not be considered alternatives to GAAP or considered to be more important than financial results determined in accordance with GAAP, nor are they necessarily comparable with non-GAAP measures which may be presented by other companies. See Definitions and Reconciliation of GAAP to Non-GAAP Financial Measures for more information related to these financial measures.

 


S&T Bancorp, Inc.


Consolidated Selected Financial Data


Unaudited


2024


2024


2023


Fourth


Third


Fourth


(dollars in thousands, except per share data)


Quarter


Quarter


Quarter


INTEREST AND DIVIDEND INCOME

Loans, including fees

$117,334

$120,907

$117,443

Investment Securities:

Taxable

10,167

10,221

8,491

Tax-exempt

164

165

210

Dividends

214

181

562


Total Interest and Dividend Income


127,879


131,474


126,706


INTEREST EXPENSE

Deposits

40,627

42,493

32,921

Borrowings, junior subordinated debt securities and other

3,994

4,504

8,676


Total Interest Expense


44,621


46,997


41,597


NET INTEREST INCOME


83,258


84,477


85,109

Provision for credit losses

(2,462)

(454)

943


Net Interest Income After Provision for Credit Losses


85,720


84,931


84,166


NONINTEREST INCOME

Loss on sale of securities

(2,592)

(2,199)

—

Debit and credit card

4,627

4,688

4,540

Service charges on deposit accounts

4,175

4,181

4,129

Wealth management

3,151

3,071

3,050

Other

1,710

2,136

6,342


Total Noninterest Income


11,071


11,877


18,061


NONINTEREST EXPENSE

Salaries and employee benefits

30,816

31,274

30,949

Data processing and information technology

5,338

5,003

4,523

Occupancy

3,755

3,828

3,598

Furniture, equipment and software

3,295

3,410

3,734

Other taxes

2,274

1,874

1,870

Marketing

1,622

1,382

1,435

Professional services and legal

1,116

1,229

1,968

FDIC insurance

1,045

1,054

1,049

Other noninterest expense

6,184

6,311

7,077


Total Noninterest Expense


55,445


55,365


56,203


Income Before Taxes


41,346


41,443


46,024

Income tax expense

8,281

8,853

8,977


Net Income


$33,065


$32,590


$37,047



Per Share Data

Shares outstanding at end of period

38,259,449

38,259,730

38,232,806

Average shares outstanding – diluted

38,570,784

38,560,409

38,379,493

Diluted earnings per share

$0.86

$0.85

$0.96

Dividends declared per share

$0.34

$0.33

$0.33

Dividend yield (annualized)

3.56 %

3.15 %

3.95 %

Dividends paid to net income

41.32 %

38.77 %

34.04 %

Book value

$36.08

$35.96

$33.57

Tangible book value (1)

$26.25

$26.13

$23.72

Market value

$38.22

$41.97

$33.42



Profitability Ratios (Annualized)

Return on average assets

1.37 %

1.35 %

1.55 %

Return on average shareholders’ equity

9.57 %

9.58 %

11.79 %

Return on average tangible shareholders’ equity(2)

13.25 %

13.35 %

17.00 %

Pre-provision net revenue / average assets(3)

1.72 %

1.78 %

1.97 %

Efficiency ratio (FTE)(4)

56.93 %

55.88 %

54.12 %

 


S&T Bancorp, Inc.


Consolidated Selected Financial Data


Unaudited


Twelve Months Ended December 31,


(dollars in thousands, except per share data)


2024


2023


INTEREST AND DIVIDEND INCOME

Loans, including fees

$476,382

$443,124

Investment Securities:

Taxable

37,744

31,611

Tax-exempt

690

852

Dividends

1,056

2,314


Total Interest and Dividend Income


515,872


477,901


INTEREST EXPENSE

Deposits

159,411

92,836

Borrowings, junior subordinated debt securities and other

21,655

35,655


Total Interest Expense


181,066


128,491


NET INTEREST INCOME


334,806


349,410

Provision for credit losses

133

17,892


Net Interest Income After Provision for Credit Losses


334,673


331,518


NONINTEREST INCOME

Loss on sale of securities

(7,938)

—

Debit and credit card

18,263

18,248

Service charges on deposit accounts

16,273

16,193

Wealth management

12,259

12,186

Other

10,226

10,993


Total Noninterest Income


49,083


57,620


NONINTEREST EXPENSE

Salaries and employee benefits

121,990

111,462

Data processing and information technology

19,510

17,437

Occupancy

15,102

14,814

Furniture, equipment and software

13,559

12,912

Other Taxes

7,452

6,813

Marketing

6,351

6,488

Professional services and legal

5,468

7,823

FDIC insurance

4,201

4,122

Other noninterest expense

25,305

28,463


Total Noninterest Expense


218,938


210,334


Income Before Taxes


164,818


178,804

Income tax expense

33,553

34,023


Net Income


$131,265


$144,781



Per Share Data

Average shares outstanding – diluted

38,523,688

38,655,405

Diluted earnings per share

$3.41

$3.74

Dividends declared per share

$1.33

$1.29

Dividends paid to net income

38.83 %

34.33 %



Profitability Ratios (annualized)

Return on average assets

1.37 %

1.56 %

Return on average shareholders’ equity

9.86 %

11.80 %

Return on average tangible shareholders’ equity(5)

13.84 %

17.15 %

Pre-provision net revenue / average assets(6)

1.77 %

2.12 %

Efficiency ratio (FTE)(7)

55.99 %

51.35 %

 


S&T Bancorp, Inc.


Consolidated Selected Financial Data


Unaudited


2024


2024


2023


Fourth


Third


Fourth


(dollars in thousands)


Quarter


Quarter


Quarter


ASSETS

Cash and due from banks

$244,820

$228,090

$233,612

Securities available for sale, at fair value

987,591

1,011,312

970,391

Loans held for sale

—

307

153

Commercial loans:

Commercial real estate

3,388,017

3,327,895

3,357,603

Commercial and industrial

1,540,397

1,548,172

1,642,106

Commercial construction

352,886

386,509

363,284


Total Commercial Loans


5,281,300


5,262,576


5,362,993

Consumer loans:

Residential mortgage

1,649,639

1,612,629

1,461,097

Home equity

653,756

645,966

650,666

Installment and other consumer

104,757

105,235

114,897

Consumer construction

53,506

62,648

63,688


Total Consumer Loans


2,461,658


2,426,478


2,290,348


Total Portfolio Loans


7,742,958


7,689,054


7,653,341

Allowance for credit losses

(101,494)

(104,321)

(107,966)


Total Portfolio Loans, Net


7,641,464


7,584,733


7,545,375

Federal Home Loan Bank and other restricted stock, at cost

15,231

11,484

25,082

Goodwill

373,424

373,424

373,424

Other Intangible assets, net

3,055

3,173

4,059

Other assets

392,387

371,424

399,430


Total Assets


$9,657,972


$9,583,947


$9,551,526


LIABILITIES

Deposits:

Noninterest-bearing demand

$2,185,242

$2,157,537

$2,221,942

Interest-bearing demand

812,768

773,224

825,787

Money market

2,040,285

2,074,095

1,941,842

Savings

877,859

879,653

950,546

Certificates of deposit

1,866,963

1,770,332

1,581,652


Total Deposits


7,783,117


7,654,841


7,521,769

Borrowings:

Short-term borrowings

150,000

225,000

415,000

Long-term borrowings

50,896

64,015

39,277

Junior subordinated debt securities

49,418

49,403

49,358


Total Borrowings


250,314


338,418


503,635

Other liabilities

244,247

214,934

242,677


Total Liabilities


8,277,678


8,208,193


8,268,081


SHAREHOLDERS’ EQUITY


Total Shareholders’ Equity


1,380,294


1,375,754


1,283,445


Total Liabilities and Shareholders’ Equity


$9,657,972


$9,583,947


$9,551,526



Capitalization Ratios

Shareholders’ equity / assets

14.29 %

14.35 %

13.44 %

Tangible common equity / tangible assets(8)

10.82 %

10.86 %

9.88 %

Tier 1 leverage ratio

11.98 %

11.70 %

11.21 %

Common equity tier 1 capital

14.58 %

14.37 %

13.37 %

Risk-based capital – tier 1

14.90 %

14.70 %

13.69 %

Risk-based capital – total

16.49 %

16.28 %

15.27 %

 


S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited


2024


2024


2023


Fourth


Third


Fourth


(dollars in thousands)


Quarter


Quarter


Quarter



Net Interest Margin (FTE) (QTD Averages)


ASSETS

Interest-bearing deposits with banks

$172,179

4.85 %

$200,301

5.44 %

$149,985

5.92 %

Securities, at fair value

992,653

3.34 %

990,375

3.12 %

956,107

2.75 %

Loans held for sale

117

6.61 %

20

6.77 %

57

7.25 %

Commercial real estate

3,328,052

5.83 %

3,298,619

5.96 %

3,312,509

5.86 %

Commercial and industrial

1,538,983

6.92 %

1,566,145

7.39 %

1,621,091

7.29 %

Commercial construction

368,566

7.99 %

406,321

7.82 %

381,294

7.55 %


Total Commercial Loans


5,235,601


6.30 %


5,271,085


6.53 %


5,314,894


6.42 %

Residential mortgage

1,635,313

5.14 %

1,589,791

5.11 %

1,417,891

4.81 %

Home equity

649,152

6.66 %

642,384

7.01 %

650,721

6.94 %

Installment and other consumer

105,478

8.18 %

103,390

8.65 %

114,720

9.15 %

Consumer construction

56,165

6.70 %

62,998

6.42 %

62,850

5.22 %


Total Consumer Loans


2,446,108


5.71 %


2,398,563


5.81 %


2,246,182


5.66 %

Total Portfolio Loans

7,681,709

6.11 %

7,669,648

6.30 %

7,561,076

6.19 %


Total Loans


7,681,826


6.11 %


7,669,668


6.30 %


7,561,133


6.19 %

Total other earning assets

13,680

6.59 %

15,413

6.21 %

37,502

7.23 %


Total Interest-earning Assets


8,860,338


5.78 %


8,875,757


5.93 %


8,704,727


5.81 %

Noninterest-earning assets

711,374

744,609

768,942


Total Assets


$9,571,712


$9,620,366


$9,473,669


LIABILITIES AND SHAREHOLDERS’ EQUITY

Interest-bearing demand

$780,396

1.03 %

$785,854

1.11 %

$836,771

1.03 %

Money market

2,060,103

3.17 %

2,051,754

3.40 %

1,843,338

2.98 %

Savings

874,699

0.70 %

891,952

0.75 %

957,903

0.57 %

Certificates of deposit

1,818,755

4.52 %

1,825,530

4.60 %

1,533,266

4.02 %


Total Interest-bearing Deposits


5,533,953


2.92 %


5,555,090


3.04 %


5,171,278


2.53 %

Short-term borrowings

159,011

4.84 %

202,500

4.88 %

435,060

5.75 %

Long-term borrowings

66,364

3.76 %

40,383

4.47 %

39,341

4.53 %

Junior subordinated debt securities

49,408

7.69 %

49,394

8.11 %

49,350

8.25 %


Total Borrowings


274,783


5.09 %


292,277


5.37 %


523,751


5.90 %

Total Other Interest-bearing Liabilities

40,055

4.71 %

41,038

5.36 %

65,547

5.40 %


Total Interest-bearing Liabilities


5,848,791


3.03 %


5,888,405


3.17 %


5,760,576


2.86 %

Noninterest-bearing liabilities

2,348,014

2,377,914

2,466,063

Shareholders’ equity

1,374,907

1,354,047

1,247,030


Total Liabilities and Shareholders’ Equity


$9,571,712


$9,620,366


$9,473,669


Net Interest Margin(9)


3.77 %


3.82 %


3.92 %

 


S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited


Twelve Months Ended December 31,


(dollars in thousands)


2024


2023



Net Interest Margin (FTE) (YTD Averages)


ASSETS

Interest-bearing deposits with banks

$165,275

5.36 %

$141,954

5.17 %

Securities, at fair value

977,896

3.05 %

976,095

2.61 %

Loans held for sale

85

6.95 %

121

6.71 %

Commercial real estate

3,334,518

5.92 %

3,216,593

5.70 %

Commercial and industrial

1,584,309

7.26 %

1,665,630

7.10 %

Commercial construction

378,755

7.84 %

381,838

7.55 %


Total Commercial Loans


5,297,582


6.46 %


5,264,061


6.27 %

Residential mortgage

1,558,277

5.05 %

1,282,078

4.62 %

Home equity

646,085

6.92 %

648,525

6.65 %

Installment and other consumer

106,260

8.52 %

117,807

8.43 %

Consumer construction

65,402

6.14 %

51,146

4.81 %


Total Consumer Loans


2,376,024


5.74 %


2,099,556


5.46 %

Total Portfolio Loans

7,673,606

6.24 %

7,363,617

6.04 %


Total Loans


7,673,691


6.24 %


7,363,738


6.04 %

Total other earning assets

18,606

6.82 %

37,988

7.04 %


Total Interest-earning Assets


8,835,468


5.87 %


8,519,775


5.64 %

Noninterest-earning assets

737,366

756,481


Total Assets


$9,572,834


$9,276,256


LIABILITIES AND SHAREHOLDERS’ EQUITY

Interest-bearing demand

$804,387

1.10 %

$844,588

0.72 %

Money market

1,993,053

3.24 %

1,677,584

2.33 %

Savings

905,351

0.69 %

1,020,314

0.43 %

Certificates of deposit

1,764,661

4.51 %

1,302,478

3.30 %


Total Interest-bearing deposits


5,467,452


2.92 %


4,844,964


1.92 %

Short-term borrowings

257,524

5.12 %

500,421

5.44 %

Long-term borrowings

46,306

4.24 %

31,706

4.20 %

Junior subordinated debt securities

49,386

8.05 %

52,215

7.87 %


Total Borrowings


353,216


5.41 %


584,342


5.59 %

Total Other Interest-bearing Liabilities

47,727

5.26 %

58,135

5.12 %


Total Interest-bearing Liabilities


5,868,395


3.09 %


5,487,441


2.34 %

Noninterest-bearing liabilities

2,373,569

2,561,483

Shareholders’ equity

1,330,870

1,227,332


Total Liabilities and Shareholders’ Equity


$9,572,834


$9,276,256


Net Interest Margin(10)


3.82 %


4.13 %

 


S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited


2024


2024


2023


Fourth


Third


Fourth


(dollars in thousands)


Quarter


Quarter


Quarter



Nonaccrual Loans

Commercial loans:



% Loans



% Loans



% Loans

Commercial real estate

$4,173

0.12 %

$14,877

0.45 %

$7,267

0.22 %

Commercial and industrial

12,570

0.82 %

5,789

0.37 %

3,244

0.20 %

Commercial construction

—

— %

3,416

0.88 %

4,960

1.37 %

Total Nonaccrual Commercial Loans

16,743

0.32 %

24,082

0.46 %

15,471

0.29 %

Consumer loans:

Residential mortgage

7,628

0.46 %

4,478

0.28 %

4,579

0.31 %

Home equity

3,336

0.51 %

3,065

0.47 %

2,567

0.39 %

Installment and other consumer

230

0.22 %

264

0.25 %

330

0.29 %

Total Nonaccrual Consumer Loans

11,194

0.45 %

7,807

0.32 %

7,476

0.33 %


Total Nonaccrual Loans


$27,937


0.36 %


$31,889


0.41 %


$22,947


0.30 %

 


2024


2024


2023


Fourth


Third


Fourth


(dollars in thousands)


Quarter


Quarter


Quarter



Loan (Recoveries) Charge-offs

Charge-offs

$1,964

$2,440

$3,880

Recoveries

(2,022)

(303)

(260)


Net Loan (Recoveries) Charge-offs


($58)


$2,137


$3,620



Net Loan (Recoveries) Charge-offs

Commercial loans:

Commercial real estate

($1,359)

$47

$1,690

Commercial and industrial

1,139

1,255

949

Commercial construction

—

—

451

Total Commercial Loan (Recoveries) Charge-offs

(220)

1,302

3,090

Consumer loans:

Residential mortgage

10

(5)

(3)

Home equity

114

580

148

Installment and other consumer

38

260

385

Total Consumer Loan Charge-offs

162

835

530


Total Net Loan (Recoveries) Charge-offs


($58)


$2,137


$3,620

 


S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited


Twelve Months Ended December 31,


(dollars in thousands)


2024


2023



Loan Charge-offs (Recoveries)

Charge-offs

$12,187

$24,638

Recoveries

(3,907)

(11,456)


Net Loan Charge-offs


$8,280


$13,182



Net Loan Charge-offs (Recoveries)

Commercial loans:

Customer fraud

$—

($9,329)

Commercial real estate

3,547

622

Commercial and industrial

2,686

20,068

Commercial construction

—

449

Total Commercial Loan Charge-offs

6,233

11,810

Consumer loans:

Residential mortgage

45

(6)

Home equity

1,073

238

Installment and other consumer

929

1,140

Total Consumer Loan Charge-offs

2,047

1,372


Total Net Loan Charge-offs


$8,280


$13,182

 


2024


2024


2023


Fourth


Third


Fourth


(dollars in thousands)


Quarter


Quarter


Quarter



Asset Quality Data

Nonaccrual loans

$27,937

$31,889

$22,947

OREO

8

—

75

Total nonperforming assets

27,945

31,889

23,022

Nonaccrual loans / total loans

0.36 %

0.41 %

0.30 %

Nonperforming assets / total loans plus OREO

0.36 %

0.41 %

0.30 %

Allowance for credit losses / total portfolio loans

1.31 %

1.36 %

1.41 %

Allowance for credit losses / nonaccrual loans

363 %

327 %

471 %

Net loan (recoveries) charge-offs

($58)

$2,138

$3,620

Net loan charge-offs (recoveries) (annualized) / average loans

0.00 %

0.11 %

0.19 %

 


Twelve Months Ended December 31,


(dollars in thousands)


2024


2023



Asset Quality Data

Net loan charge-offs

$8,280

$13,182

Net loan charge-offs / average loans

0.11 %

0.18 %

 


S&T Bancorp, Inc.


Consolidated Selected Financial Data


Unaudited


Definitions and Reconciliation of GAAP to Non-GAAP Financial Measures:


2024


2024


2023


Fourth


Third


Fourth


(dollars and shares in thousands)


Quarter


Quarter


Quarter





(1)



 Tangible Book Value (non-GAAP)

Total shareholders’ equity

$1,380,294

$1,375,754

$1,283,445

Less: goodwill and other intangible assets, net of deferred tax liability

(375,837)

(375,931)

(376,631)

Tangible common equity (non-GAAP)

$1,004,457

$999,823

$906,814

Common shares outstanding

38,259

38,260

38,233

Tangible book value (non-GAAP)

$26.25

$26.13

$23.72


Tangible book value is a preferred industry metric used to measure our company’s value and commonly used by investors and analysts.





(2)



 Return on Average Tangible Shareholders’ Equity (non-GAAP)

Net income (annualized)

$131,541

$129,652

$146,980

Plus: amortization of intangibles (annualized), net of tax

858

893

1,003

Net income before amortization of intangibles (annualized)

$132,399

$130,545

$147,983

Average total shareholders’ equity

$1,374,907

$1,354,047

$1,247,030

Less: average goodwill and other intangible assets, net of deferred tax liability

(375,879)

(376,048)

(376,761)

Average tangible equity (non-GAAP)

$999,028

$977,999

$870,269

Return on average tangible shareholders’ equity (non-GAAP)

13.25 %

13.35 %

17.00 %


Return on average tangible shareholders’ equity is a key profitability metric used by management to measure financial performance.





(3)



 Pre-provision Net Revenue / Average Assets (non-GAAP)

Income before taxes

$41,346

$41,443

$46,024

Plus: net losses on sale of securities

2,592

2,199

—

Less: gain on Visa Class B-1 exchange

(186)

(150)

—

Plus: Provision for credit losses

(2,462)

(454)

943

Total

$41,290

$43,038

$46,967

Total (annualized) (non-GAAP)

$164,262

$171,216

$186,336

Average assets

$9,571,712

$9,620,366

$9,473,669

Pre-provision Net Revenue / Average Assets (non-GAAP)

1.72 %

1.78 %

1.97 %


Pre-provision net revenue to average assets is income before taxes adjusted to exclude provision for credit losses, losses on sale of securities and gain on Visa exchange. We believe this to be a preferred industry measurement to help evaluate our ability to fund credit losses or build capital.





(4)



 Efficiency Ratio (non-GAAP)

Noninterest expense

$55,445

$55,365

$56,203

Net interest income per consolidated statements of net income

$83,258

$84,477

$85,109

Plus: taxable equivalent adjustment

660

671

683

Net interest income (FTE) (non-GAAP)

83,918

85,148

85,792

Noninterest income

11,071

11,877

18,061

Plus: net losses on sale of securities

2,592

2,199

—

Less: gain on Visa Class B-1 exchange

(186)

(150)

—

Net interest income (FTE) (non-GAAP) plus noninterest income

$97,395

$99,074

$103,853

Efficiency ratio (non-GAAP)

56.93 %

55.88 %

54.12 %


 The efficiency ratio is noninterest expense divided by noninterest income plus net interest income, on an FTE basis (non-GAAP), adjusted to exclude losses on sale of securities and gain on Visa exchange. We believe the FTE basis ensures comparability of net interest income arising from both taxable and tax-exempt sources and is consistent with industry practice.

 


S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited


Twelve Months Ended December 31,


(dollars in thousands)


2024


2023





(5)



 Return on Average Tangible Shareholders’ Equity (non-GAAP)

Net income

$131,265

$144,781

Plus: amortization of intangibles, net of tax

904

1,042

Net income before amortization of intangibles

$132,169

$145,823

Average total shareholders’ equity

$1,330,870

$1,227,332

Less: average goodwill and other intangible assets, net of deferred tax liability

(376,181)

(377,157)

Average tangible equity (non-GAAP)

$954,689

$850,175

Return on average tangible shareholders’ equity (non-GAAP)

13.84 %

17.15 %


Return on average tangible shareholders’ equity is a key profitability metric used by management to measure financial performance.





(6)



 Pre-provision Net Revenue / Average Assets (non-GAAP)

Income before taxes

$164,818

$178,804

  Plus: net losses on sale of securities

7,938

0

  Less: gain on Visa Class B-1 exchange

(3,492)

0

  Plus: Provision for credit losses

133

17,892

Total

$169,397

$196,696

Average assets

$9,572,834

$9,276,256

Pre-provision Net Revenue / Average Assets (non-GAAP)

1.77 %

2.12 %


Pre-provision net revenue to average assets is income before taxes adjusted to exclude provision for credit losses, losses on sale of securities and gain on Visa exchange. We believe this to be a preferred industry measurement to help evaluate our ability to fund credit losses or build capital.





(7)



 Efficiency Ratio (non-GAAP)

Noninterest expense

$218,938

$210,334

Net interest income per consolidated statements of net income

$334,806

$349,410

Plus: taxable equivalent adjustment

2,706

2,550

Net interest income (FTE) (non-GAAP)

337,512

351,960

Noninterest income

49,083

57,620

Plus: net losses on sale of securities

7,938

—

Less: gain on Visa Class B-1 exchange

(3,492)

—

Net interest income (FTE) (non-GAAP) plus noninterest income

$391,041

$409,580

Efficiency ratio (non-GAAP)

55.99 %

51.35 %


 The efficiency ratio is noninterest expense divided by noninterest income plus net interest income, on an FTE basis (non-GAAP), adjusted to exclude losses on sale of securities and gain on Visa exchange. We believe the FTE basis ensures comparability of net interest income arising from both taxable and tax-exempt sources and is consistent with industry practice.





(10)



 Net Interest Margin Rate (FTE) (non-GAAP)

Interest income and dividend income

$515,872

$477,901

  Less: interest expense

(181,066)

(128,491)

Net interest income per consolidated statements of net income

334,806

349,410

  Plus: taxable equivalent adjustment

2,706

2,550

Net interest income (FTE) (non-GAAP)

$337,512

$351,960

Average interest-earning assets

$8,835,468

$8,519,775

Net interest margin – (FTE) (non-GAAP)

3.82 %

4.13 %


The interest income on interest-earning assets, net interest income and net interest margin are presented on an FTE basis (non-GAAP). The FTE basis (non-GAAP) adjusts for the tax benefit of income on certain tax-exempt loans and securities and the dividend-received deduction for equity securities using the federal statutory tax rate of 21 percent for each period. We believe this to be the preferred industry measurement of net interest income that provides a relevant comparison between taxable and non-taxable sources of interest income.

 


S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited


Definitions
 and Reconciliation of GAAP to Non-GAAP Financial Measures:


2024


2024


2023


Fourth


Third


Fourth


(dollars in thousands)


Quarter


Quarter


Quarter





(8)



 Tangible Common Equity / Tangible Assets (non-GAAP)

Total shareholders’ equity

$1,380,294

$1,375,754

$1,283,445

Less: goodwill and other intangible assets, net of deferred tax liability

(375,837)

(375,931)

(376,631)

Tangible common equity (non-GAAP)

$1,004,457

$999,823

$906,814

Total assets

$9,657,972

$9,583,947

$9,551,526

Less: goodwill and other intangible assets, net of deferred tax liability

(375,837)

(375,931)

(376,631)

Tangible assets (non-GAAP)

$9,282,135

$9,208,016

$9,174,895

Tangible common equity to tangible assets (non-GAAP)

10.82 %

10.86 %

9.88 %


Tangible common equity to tangible assets is a preferred industry measurement to evaluate capital adequacy.





(9)



 Net Interest Margin Rate (FTE) (non-GAAP)

Interest income and dividend income

$127,879

$131,474

$126,706

Less: interest expense

(44,621)

(46,997)

(41,597)

Net interest income per consolidated statements of net income

83,258

84,477

85,109

Plus: taxable equivalent adjustment

660

671

683

Net interest income (FTE) (non-GAAP)

$83,918

$85,148

$85,792

Net interest income (FTE) (annualized)

$333,848

$338,741

$340,370

Average interest-earning assets

$8,860,338

$8,875,757

$8,704,727

Net interest margin (FTE) (non-GAAP)

3.77 %

3.82 %

3.92 %


The interest income on interest-earning assets, net interest income and net interest margin are presented on an FTE basis (non-GAAP). The FTE basis (non-GAAP) adjusts for the tax benefit of income on certain tax-exempt loans and securities and the dividend-received deduction for equity securities using the federal statutory tax rate of 21 percent for each period. We believe this to be the preferred industry measurement of net interest income that provides a relevant comparison between taxable and non-taxable sources of interest income.

 

 

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SOURCE S&T Bancorp, Inc.

Posted on

NLS Pharmaceutics Announces the Submission of Three Research Abstracts to the 2025 ASCP Annual Meeting

PR Newswire


ZURICH
, Jan. 30, 2025 /PRNewswire/ — NLS Pharmaceutics Ltd. (NASDAQ: NLSP) (NASDAQ: NLSPW) (“NLS” or the “Company”), a Swiss clinical-stage biopharmaceutical company focused on developing innovative therapies for central nervous system (CNS) disorders, is pleased to announce the submission of three research abstracts to the 2025 Annual Meeting of the American Society of Clinical Psychopharmacology (ASCP).

The ASCP Annual Meeting, taking place from May 27 to May 30, 2025, at the Fairmont Scottsdale Princess in Scottsdale, Arizona, is one of the world’s leading conferences dedicated to advancing research in neuropsychopharmacology. This prestigious event provides a platform for cutting-edge research and innovative therapeutic approaches in neuropsychiatric drug development, precision psychiatry, and addiction medicine.

NLS Submitted Research Abstracts:

  1. Evaluating the Effects of Mazindol on Fentanyl Dependence in Animal Models (Study KO-943)

    This study explores the therapeutic potential of Mazindol ER, a triple monoamine reuptake inhibitor with additional activity on 5-HT1A, MOP, and OX2R receptors, for fentanyl dependence. Preclinical data will demonstrate its ability to mitigate reward-seeking behavior and withdrawal symptoms, positioning it as a promising non-opioid alternative for managing fentanyl addiction.
  2. Non-Sulfonamide Dual Orexin Receptor Agonists: Preliminary Results of AEX-41 and AEX-2 in a Mouse Model of Narcolepsy

    This research presents promising preclinical findings on AEX-41 and AEX-2, two novel dual orexin receptor agonists (DOXA), in a mouse model of narcolepsy. In preliminary conclusion, these compounds exhibit wake-promoting properties without the adverse metabolic effects associated with traditional stimulants, making them strong candidates for treating narcolepsy and related hypersomnolence disorders.
  3. Comprehensive Multitarget Strategy for Managing Diabetes-Associated Neurological and Sleep Disorders (DANS)

    This study introduces an innovative pharmacological platform for treating diabetes-related cognitive and sleep disorders. The research integrates dual orexin receptor agonists (DOXA), neuropeptide-based preconditioning, and metabolic modulators to address the interplay between neuroinflammation, β-cell dysfunction, and circadian rhythm disruption.

Advancing Clinical Research in Neuropsychopharmacology

“NLS Pharmaceutics is honored to contribute to the 2025 ASCP Annual Meeting, one of the premier global platforms for advancing clinical research in neuropsychopharmacology,” said Dr. Eric Konofal, MD, PhD, Chief Scientific Officer of NLS Pharmaceutics. “Our research spans innovative therapeutic solutions such as Mazindol ER for fentanyl dependence, dual orexin receptor agonists for narcolepsy, and a multitarget approach to managing diabetes-related neurological and sleep disorders. These abstracts reflect our commitment to addressing critical unmet medical needs in addiction medicine, sleep disorders, and cognitive health.”

About NLS Pharmaceutics Ltd.

NLS Pharmaceutics Ltd. is a Swiss-based clinical-stage biopharmaceutical company dedicated to the development of groundbreaking therapies for rare and complex CNS disorders. The Company collaborates with world-renowned scientists and pharmaceutical partners to advance innovative treatments in areas such as addiction medicine, sleep disorders, and cognitive dysfunction. For more information, visit www.nlspharma.com.

Forward-Looking Statements

This press release contains expressed or implied forward-looking statements pursuant to U.S. Federal securities laws. For example, NLS is using forward-looking statements when it discusses the potential of Mazindol ER and the AEX-41 and AEX-2 compounds for the treatment of various conditions. These forward-looking statements and their implications are based on the current expectations of the management of NLS only and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: changes in technology and market requirements; NLS may encounter delays or obstacles in launching and/or successfully completing its clinical trials; NLS products may not be approved by regulatory agencies, NLS technology may not be validated as it progresses further and its methods may not be accepted by the scientific community; NLS may be unable to retain or attract key employees whose knowledge is essential to the development of its products; unforeseen scientific difficulties may develop with NLS’ process; NLS’ products may wind up being more expensive than it anticipates; results in the laboratory may not translate to equally good results in real clinical settings; results of preclinical studies may not correlate with the results of human clinical trials; NLS patents may not be sufficient; NLS products may harm recipients; changes in legislation may adversely impact NLS; inability to timely develop and introduce new technologies, products and applications; and loss of market share and pressure on pricing resulting from competition, which could cause the actual results or performance of NLS to differ materially from those contemplated in such forward-looking statements. Except as otherwise required by law, NLS undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. More detailed information about the risks and uncertainties affecting NLS is contained under the heading “Risk Factors” in NLS annual report on Form 20-F for the year ended December 31, 2023 filed with the Securities and Exchange Commission (SEC), which is available on the SEC’s website, www.sec.gov, and in subsequent filings made by NLS with the SEC.

Contact:

Investor Relations Contact

[email protected]

www.nlspharma.com

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SOURCE NLS Pharmaceutics Ltd.

Posted on

Kazia Therapeutics announces the launch of a groundbreaking trial with paxalisib in combination with immunotherapy in women with advanced breast cancer

PR Newswire


SYDNEY
, Jan. 30, 2025 /PRNewswire/ — Kazia Therapeutics Limited (NASDAQ: KZIA) an oncology-focused drug development company, is pleased to announce the regulatory approval and launch of a clinical trial evaluating the combination of paxalisib and immunotherapy in patients with advanced breast cancer. This novel treatment combination offers what is believed to be a unique approach to targeting this highly aggressive and treatment-resistant type of breast cancer.

The ABC-Pax (Advanced Breast Cancer – Paxalisib) study is the first known trial conducted to assess the safety and efficacy of paxalisib in combination with KEYTRUDA® (pembrolizumab) or LYNPARZA® (olaparib) in women with triple negative breast cancer. ABC-Pax is a multi-centre, open-label phase 1b study that will enroll 24 patients from top cancer centres in Queensland, Australia and patients will receive the combination therapy for up to 12 months.

The ABC-Pax study stems from pivotal research led by QIMR Berghofer scientists in collaboration with Kazia Therapeutics, which combined its drug candidate, paxalisib, with immunotherapy in pre-clinical models. The team discovered that this combination approach triggers a novel molecular program by epigenetic re-programming of dormant cancer cells, making them visible to the immune system, while also reinvigorating the immune cells to fight the tumour cells. These new preclinical data were presented at San Antonio Breast Cancer Symposium on December 12, 2024, and highlight the potential therapeutic synergies between paxalisib and checkpoint inhibitor pembrolizumab (KEYTRUDA®), as well as between paxalisib and poly (ADP-ribose) polymerase inhibitor olaparib (LYNPARZA®), when used in combination in a preclinical model of immunotherapy-resistant triple negative breast cancer. The clinical trial is open for enrollment at the Royal Brisbane and Women’s Hospital and plans to expand to other sites in Australia.

Kazia Therapeutics CEO, Dr John Friend, said the novel combination treatment may have the potential to transform the treatment of triple-negative breast cancer and other aggressive tumour types.

“The novelty of the science that Professor Rao has proposed with this dual combination of paxalisib and immunotherapy could advance the treatment of women with aggressive breast cancer, and we are excited to support this unique clinical study,” Dr John Friend, CEO Kazia Therapeutics said.

QIMR Berghofer’s Professor Sudha Rao said, “There is no cure for triple negative breast cancer and the life expectancy for these women is tragically short. We want to identify treatments to extend the duration and quality of life of these patients. The hope is to prolong patient survival through the new combined therapy, which targets the dormant cancer cells that drive the spread and recurrence of the disease and rejuvenates the immune system to more effectively fight the cancer.”

The ABC-Pax trial will also evaluate a non-invasive liquid biopsy digital pathology platform developed by Professor Rao and her team, which can monitor the behaviour of cancer cells and immune cells in real time from a blood sample.

“By regularly analysing blood samples from trial participants using our liquid biopsy digital pathology platform, we can track the effectiveness of the treatment in real time. We believe this approach represents a major advance in precision medicine by offering a faster and more accurate way to monitor patient progress,” Professor Rao said.

About Kazia Therapeutics Limited
Kazia Therapeutics Limited (NASDAQ: KZIA) is an oncology-focused drug development company, based in Sydney, Australia. Our lead program is paxalisib, an investigational brain-penetrant inhibitor of the PI3K / Akt / mTOR pathway, which is being developed to treat multiple forms of brain cancer. Licensed from Genentech in late 2016, paxalisib is or has been the subject of ten clinical trials in this disease. A completed Phase 2/3 study in glioblastoma (GBM-Agile) was reported in 2024 and discussions are ongoing for designing and executing a pivotal registrational study in pursuit of a standard approval. Other clinical trials involving paxalisib are ongoing in brain metastases, diffuse midline gliomas, and primary CNS lymphoma, with several of these trials having reported encouraging interim data. Paxalisib was granted Orphan Drug Designation for glioblastoma by the FDA in February 2018, and Fast Track Designation (FTD) for glioblastoma by the FDA in August 2020. Paxalisib was also granted FTD in July 2023 for the treatment of solid tumour brain metastases harboring PI3K pathway mutations in combination with radiation therapy. In addition, paxalisib was granted Rare Pediatric Disease Designation and Orphan Drug Designation by the FDA for diffuse intrinsic pontine glioma in August 2020, and for atypical teratoid / rhabdoid tumours in June 2022 and July 2022, respectively. Kazia is also developing EVT801, a small-molecule inhibitor of VEGFR3, which was licensed from Evotec SE in April 2021. Preclinical data has shown EVT801 to be active against a broad range of tumour types and has provided evidence of synergy with immuno-oncology agents. A Phase I study has been completed and preliminary data was presented at 15th Biennial Ovarian Cancer Research Symposium in September 2024. For more information, please visit www.kaziatherapeutics.com or follow us on X @KaziaTx.

Forward-Looking Statements
This announcement may contain forward-looking statements, which can generally be identified as such by the use of words such as “may,” “will,” “estimate,” “future,” “forward,” “anticipate,” or other similar words. Any statement describing Kazia’s future plans, strategies, intentions, expectations, objectives, goals or prospects, and other statements that are not historical facts, are also forward-looking statements, including, but not limited to, statements regarding: the timing for results and data related to Kazia’s clinical and preclinical trials, Kazia’s strategy and plans with respect to its programs, including paxalisib and EVT801, the ABC-Pax study and the potential results of combination studies of paxalisib, the potential benefits of paxalisib as an investigational PI3K/mTOR inhibitor, timing for any regulatory submissions or discussions with regulatory agencies, and the potential market opportunity for paxalisib. Such statements are based on Kazia’s current expectations and projections about future events and future trends affecting its business and are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements, including risks and uncertainties: associated with clinical and preclinical trials and product development, related to regulatory approvals, and related to the impact of global economic conditions. These and other risks and uncertainties are described more fully in Kazia’s Annual Report, filed on form 20-F with the SEC, and in subsequent filings with the United States Securities and Exchange Commission. Kazia undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required under applicable law. You should not place undue reliance on these forward-looking statements, which apply only as of the date of this announcement.

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/kazia-therapeutics-announces-the-launch-of-a-groundbreaking-trial-with-paxalisib-in-combination-with-immunotherapy-in-women-with-advanced-breast-cancer-302364230.html

SOURCE Kazia Therapeutics Limited

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Civista Bancshares, Inc. Announces Fourth-Quarter 2024 Financial Results of $0.63 per Common Share and Full-Year 2024 Financial Results of $2.01 per Common Share

PR Newswire


SANDUSKY, Ohio
, Jan. 30, 2025 /PRNewswire/ — Civista Bancshares, Inc. (NASDAQ:CIVB) (“Civista”) announced its unaudited financial results for the three- and twelve-month periods ending December 31, 2024.

Fourth quarter and full-year 2024 highlights:

  • Net income of $9.9 million, or $0.63 per diluted share, for the fourth quarter of 2024, compared to $9.7 million, or $0.62 per diluted share, for the fourth quarter of 2023.
  • Net income of $31.7 million, or $2.01 per diluted share, compared to $43.0 million, or $2.73 per diluted share, for the twelve months ended December 31, 2024 and 2023, respectively.
  • Replaced nearly $5.2 million in non-interest income, for the twelve months ended December 31, 2024 compared to the same period in 2023. This includes reductions in overdraft fees ($1.4 million), tax refund processing revenue ($2.4 million), and the 2023 MasterCard renewal fee ($1.5 million). Despite these reductions, non-interest income for the twelve months ended December 31, 2024, is $0.6 million higher than the same period in 2023.
  • Cost of deposits of 220 basis points and total funding costs of 242 basis points for the quarter.
  • Based on the December 31, 2024, market close share price of $21.04, the $0.16 fourth quarter dividend is equivalent to an annualized yield of 3.04% and a dividend payout ratio of 25.5%.

CEO Commentary:

“We’re pleased with our fourth-quarter earnings and overall full-year performance. This quarter, we maintained a disciplined approach to loan and deposit pricing, successfully continuing our downward beta strategy. Our results reflect the positive impact of our deposit initiatives we launched earlier in the year. These initiatives and strategies, along with another quarter of strong non-interest income, have significantly contributed to our financial success, resulting in Earnings Per Share of $0.63, up from $0.53 last quarter.  Our strong earnings and recently announced increase in our quarterly dividend, reflects our confidence in Civista’s financial strength and our commitment to delivering value to our shareholders.”, said Dennis G. Shaffer, CEO and President of Civista.

“Our credit quality remains solid as we continue to support lending and strengthen our customer relationships. We are committed to meeting the growing demand for housing and construction financing, ensuring we address the needs of our customers and communities.  Our strategic focus on these areas has allowed us to deepen our engagement with customers and provide then with the necessary financial support.”,  said Shaffer.

“Furthermore, with a strong fourth quarter and the expansion in our net interest margin, we are well-positioned for a successful 2025.  Our team’s dedication and hard work have been instrumental in achieving these results, and we are confident in our ability to sustain this momentum as we remain focused on executing our strategic initiatives and driving sustainable growth for the long term.  We continue to prioritize our customers’ needs and adapt to the evolving market conditions to deliver consistent value and growth.”, said Shaffer.

Results of Operations:

For the three-month periods ended December 31, 2024, September 30, 2024 and December 31, 2023

Net interest income increased $2.1 million, or 7.3%, for the fourth quarter of 2024 compared to the third quarter of 2024. 

Interest income increased $0.5 million attributed to average interest-earning assets increasing $33 million coupled with a 1 basis point increase in asset yield.

The increase in interest income was aided by a $1.6 million decrease in interest expense. This was due to a reduction in the average balance of higher costing FHLB borrowings of $174.1 million mostly offset by $226.8 million growth in deposits ($177.4 million in average balances), resulting in a net increase of $3.9 million in average interest-bearing liabilities when comparing Q4 2024 to Q3 2024.

When comparing the fourth quarter of 2024 to the same period of 2023.  Net interest income increased $1.3 million.  Interest income increased $4.6 million while interest expense increased $3.3 million.

Net interest margin decreased 8 basis points to 3.36% for the fourth quarter of 2024, compared to 3.44% for the same period a year ago.

The increase in interest income was primarily due to a $289.3 million increase in average interest-earning assets resulting in a $4.0 million increase in interest income.

Interest expense increased $3.3 million for the fourth quarter of 2024, compared to the same period last year.  The average rate paid on interest-bearing liabilities increased 11 basis points, while average interest-bearing liabilities increased $355.8 million to fund growth.  The increase in interest-bearing liabilities was $236.5 million in time-deposits, $183.0 million in demand and savings, partially offset by a decrease of $63.8 million in FHLB borrowings.  This shift in the funding mix, as well as rising rates, is driving the increase in the funding rate.  The 11-basis point increase in funding yield led to $0.7 million additional interest expense.  Additionally, the $355.8 million of additional funds led to $2.6 million of additional interest expense. 

Average Balance Analysis

(Unaudited – Dollars in thousands)

Three Months Ended December 31,

2024

2023

Average

Yield/

Average

Yield/


Assets:


balance


Interest


rate *


balance


Interest


rate *

Interest-earning assets:

Loans **

$

3,061,991

47,250

6.14

%

$

2,805,995

$

43,172

6.10

%

Taxable securities ***

362,997

3,378

3.38

%

352,186

2,901

2.85

%

Non-taxable securities ***

292,559

2,357

3.83

%

275,046

2,365

3.79

%

Federal funds sold

–

–

0.00

%

–

–

0.00

%

Interest-bearing deposits in other banks


21,060

248


4.68


%


16,117


161

3.96

%

Total interest-earning assets ***


$


3,738,607


$


53,233


5.65


%


$


3,449,344


$


48,599


5.52


%

Noninterest-earning assets:

Cash and due from financial institutions

38,873

26,221

Premises and equipment, net

48,990

58,576

Accrued interest receivable

13,632

12,455

Intangible assets

133,673

134,867

Bank owned life insurance

62,866

55,441

Other assets

49,462

67,544

Less allowance for loan losses


(41,353)


(35,802)

      Total Assets


$


4,044,750


$


3,768,646


Liabilities and Shareholders’ Equity:

Interest-bearing liabilities:

Demand and savings

$

1,528,163

$

5,025

1.31

%

$

1,345,199

$

2,873

0.85

%

Time

1,054,489

13,111

4.95

%

817,961

10,532

5.11

%

Short-term FHLB borrowings

214,038

2,530

4.70

%

276,949

3,877

5.55

%

Long-term FHLB borrowings

1,573

6

1.52

%

2,458

14

2.26

%

Other borrowings

543

7

5.13

%

543

8

5.85

%

Subordinated debentures

104,071

1,199

4.58

%

103,927

1,243

4.75

%

Repurchase agreements


–


–

0.00

%


–


–

0.00

%

Total interest-bearing liabilities


$


2,902,877


$


21,878


3.00


%


$


2,547,037


$


18,547


2.89


%

Noninterest-bearing deposits

702,833

814,642

Other liabilities

47,449

69,101

Shareholders’ equity


391,591


337,866

Total Liabilities and Shareholders’ Equity


$


4,044,750


$


3,768,646

Net interest income and interest rate spread

$

31,355

2.65

%

$

30,052

2.63

%

Net interest margin ***

3.36

%

3.44

%

* – Average yields are presented on a tax equivalent basis. The tax equivalent effect associated with loans and investments, included in the yields above, was $627 thousand and $629 thousand for the periods ended December 31, 2024 and 2023, respectively.

** – Average balance includes nonaccrual loans

*** – Average yield on investments were calculated by adjusting the average balances of taxable and nontaxable securities by unrealized losses of $52.1 million and $91.0 million, respectively.  These adjustments were also made when calculating the yield on earning assets and the margin.

For the twelve-month periods ended December 31, 2024 and 2023

Net interest income decreased $8.8 million, or 7.0%, compared to the same period in 2023.

Interest income increased $24.0 million, or 13.1%, for the twelve months of 2024 compared to the same period of 2023.  Average interest-earning assets increased $263.6 million.  Average yields increased 27 basis points.  The increase in volume is due to organic loan growth. 

Interest expense increased $32.7 million, or 57.2%, for the twelve months of 2024 compared to the same period of 2023.  Average rate paid on interest-bearing liabilities increased 79 basis points compared to 2023.  Average interest-bearing liabilities increased $428.6 million for the twelve months of 2024 compared to the same period of 2023.  Demand, Savings and Time deposits increased $450.5 million, collectively, and FHLB borrowings increased $60.7 million for the twelve months of 2024 compared to the same period of 2023 to fund growth.

Net interest margin decreased of 49 basis points to 3.21% for the twelve months of 2024, compared to 3.70% for the same period a year ago. 

Average Balance Analysis

(Unaudited – Dollars in thousands)

Twelve Months Ended December 31,

2024

2023

Average

Yield/

Average

Yield/


Assets:


balance


Interest


rate *


balance


Interest


rate *

Interest-earning assets:

Loans **

$

2,984,912

$

183,580

6.15

%

$

2,722,797

$

160,755

5.90

%

Taxable securities ***

357,255

12,639

3.18

%

363,972

11,718

2.88

%

Non-taxable securities ***

291,833

9,473

3.85

%

282,678

9,282

3.79

%

Interest-bearing deposits in other banks


20,580


1,003

4.87

%


21,551


979

4.54

%

Total interest-earning assets ***


$


3,654,580


$


206,695


5.62


%


$


3,390,998


$


182,734


5.35


%

Noninterest-earning assets:

Cash and due from financial institutions

34,494

39,219

Premises and equipment, net

52,230

58,456

Accrued interest receivable

13,349

11,499

Intangible assets

134,273

133,626

Bank owned life insurance

62,349

54,211

Other assets

57,879

63,152

Less allowance for loan losses


(39,498)


(33,814)

      Total Assets


$


3,969,656


$


3,717,347


Liabilities and Shareholders’ Equity:

Interest-bearing liabilities:

Demand and savings

$

1,426,288

$

16,138

1.13

%

$

1,356,789

$

7,689

0.57

%

Time

959,276

50,416

5.26

%

578,243

26,066

4.51

%

Short-term FHLB borrowings

342,626

18,451

5.39

%

280,887

14,493

5.16

%

Long-term FHLB borrowings

1,892

42

2.22

%

2,909

66

2.27

%

Other borrowings

137

7

5.11

%

74,269

4,071

5.50

%

Subordinated debentures

104,017

4,931

4.74

%

103,873

4,849

4.67

%

Repurchase agreements


–


–

0.00

%


8,685


4

0.05

%

Total interest-bearing liabilities


$


2,834,236


$


89,985


3.17


%


$


2,405,655


$


57,238


2.38


%

Noninterest-bearing deposits

701,397

917,005

Other liabilities

56,664

50,963

Shareholders’ equity


377,359


343,724

Total Liabilities and Shareholders’ Equity


$


3,969,656


$


3,717,347

Net interest income and interest rate spread

$

116,710

2.45

%

$

125,496

2.97

%

Net interest margin ***

3.21

%

3.70

%

* – Average yields are presented on a tax equivalent basis. The tax equivalent effect associated with loans and investments, included in the yields above, was $2.5 million and $2.5 million for the periods ended December 31, 2024 and 2023, respectively.

** – Average balance includes nonaccrual loans

*** – 2024 and 2023 average yield on investments were calculated by adjusting the average balances of taxable and nontaxable securities by unrealized losses of $59.4 million and $71.0 million, respectively.  These adjustments were also made when calculating the yield on earning assets and the margin.

Provision for credit losses (including provision for unfunded commitments) for the fourth quarter of 2024 was $0.7 million compared to $2.3 million for the same period of 2023. 

Year-to-date 2024 provision for credit losses (including provision for unfunded commitments) was $5.4 million compared to $4.4 million for the same period of 2023.

The Allowance to total loans ratio as of December 31, 2024 was 1.29%, down from 1.36% on September 30, 2024 and down from 1.30% at December 31, 2023.  The decreased reserve requirement is attributed to an improvement in the qualitative factors as we see economic improvements in the markets we serve as well as in general economic conditions.

For the fourth quarter of 2024, noninterest income totaled $9.0 million, a decrease of $0.7 million or 6.9% from third quarter 2024 and an increase of $0.2 million, or 2.2%, compared to the prior year’s fourth quarter.    


Noninterest income

(unaudited – dollars in thousands)

Three months ended December 31,

2024

2023

$ change

% change

Service charges

$

1,591

$

1,749

$

(158)

-9.0

%

Net gain/(loss) on equity securities

96

147

(51)

-34.7

%

Net gain on sale of loans

1,259

875

384

43.9

%

ATM/Interchange fees

1,640

1,654

(14)

-0.8

%

Wealth management fees

1,464

1,197

267

22.3

%

Lease revenue and residual income

1,280

1,436

(156)

-10.9

%

Bank owned life insurance

771

282

489

173.4

%

Swap fees

66

475

(409)

-86.1

%

Other


848


1,008


(160)

-15.9

%

Total noninterest income


$


9,015


$


8,823


$


192

2.2

%

Service charges for the fourth quarter of 2024 decreased year over year as we have eliminated our re-presentment fees as well as reduced our overdraft charges, the effect of which was partially offset by an increase in service fees in consumer and treasury management.

Net gain/(loss) on equity securities change was the result of a market valuation adjustment.

Net gain on sale of loans includes gain/loss on sale of mortgages, adjustments to mortgage service rights (MSR), and gain/loss on sales of loans and leases from the Civista Leasing and Finance division; which continues to provide a strong and consistent revenue source for Civista.

Wealth management fees increased from strong financial markets and organic growth in the trust and investment services business.

Lease revenue and residual income decreased due to lower lease originations in the fourth quarter of 2024 compared to the same period in 2023.

Income from Bank Owned Life Insurance (BOLI) increased due to a death benefit on an insured individual in the fourth quarter of 2024.

Other income decreased in the fourth quarter mainly related to lower volumes in loan fees, loan servicing fees, and leasing rental income, partially offset by a gain of $0.2 million from the sale of an OREO property.

For the twelve months ended December 31, 2024, noninterest income totaled $37.7 million, an increase of $0.6 million, or 1.6%, compared to the same period in 2023.  This reflects the replacement of the tax refund processing business exited in 2023.


Noninterest income

(unaudited – dollars in thousands)

Twelve months ended December 31,

2024

2023

$ change

% change

Service charges

$

6,114

$

7,206

$

(1,092)

-15.2

%

Net gain/(loss) on equity securities

252

(21)

273

1300.0

%

Net gain on sale of loans

4,438

2,908

1,530

52.6

%

ATM/Interchange fees

5,841

5,880

(39)

-0.7

%

Wealth management fees

5,519

4,767

752

15.8

%

Lease revenue and residual income

8,911

7,595

1,316

17.3

%

Bank owned life insurance

2,205

1,112

1,093

98.3

%

Swap fees

232

673

(441)

-65.5

%

Tax Refund Processing Fee

–

2,375

(2,375)

-100.0

%

Other

4,236

4,668

(432)

-9.3

%

Total noninterest income


$


37,748


$


37,163


$


585

1.6

%

Service charges for the full-year 2024 decreased resulting from the elimination of our re-presentment fees coupled with reducing our overdraft charges, the effect of which was partially offset by an increase in service fees in consumer and treasury management.

Net gain/loss on equity securities change was the result of a market valuation adjustment.   

Net gain on sale of loans increased primarily due to an increase in the volume of mortgage and Civista Leasing and Finance leases as well as loans sold.

Wealth management fees increased from strong markets and organic growth in the trust and investment services business.

Lease revenue and residual income increased from prior year as we shifted from operating leases to more finance leases, resulting in higher residual income.

Income from Bank Owned Life Insurance (BOLI) increased due to death benefit on three insured individuals in 2024.

Tax Refund Processing Fee income is now zero as we exited our relationship with a third-party processor in 2023 that was in the tax refund processing business.

Other income – includes $1.1 million of loan servicing fees and $1.5 million of leasing rental income in 2024.  For 2023, a $1.5 million fee was collected with the renewal of the company’s contract with MasterCard.

For the fourth quarter of 2024, noninterest expense totaled $28.3 million, an increase of $0.3 million or 1.1% when compared to the third quarter of 2024.  When compared to the prior years’ fourth quarter, noninterest expense increased $3.0 million, or 11.8%.


Noninterest expense

(unaudited – dollars in thousands)

Three months ended December 31,

2024

2023

$ change

% change

Compensation expense

$

14,899

$

14,154

$

745

5.3

%

Net occupancy Expense

1,138

1,299

$

(161)

-12.4

%

Contracted data processing

508

512

$

(4)

-0.8

%

Taxes and assessments

1,647

679

$

968

142.6

%

Professional services

2,247

1,148

$

1,099

95.7

%

Equipment Maint/Depr

2,240

2,871

$

(631)

-22.0

%

ATM/Interchange expense

671

605

$

66

10.9

%

Marketing

448

(190)

$

638

335.8

%

Sponsorships

(38)

155

$

(193)

-124.5

%

Communications

492

426

$

66

15.5

%

Insurance Expense

313

408

$

(95)

-23.3

%

Software maintenance expense

1,376

1,178

$

198

16.8

%

Other


2,355


2,068

$

287

13.9

%

Total noninterest expense


$


28,296


$


25,313


$


2,983

11.8

%

Compensation expense increased primarily due to a merit increases, employee insurance, and other payroll-related expenses.  The quarter-to-date average number of full time equivalent (FTE) employees was 519 at December 31, 2024, compared with an average number of 532 for the same period in 2023. 

Equipment maintenance and depreciation expense decreased $631 thousand primarily due to depreciation associated with Civista Leasing and Finance as operating leases mature.

Software maintenance expense increased $198 thousand due to increases in both software maintenance contracts as well as the implementation of the new digital banking platform.

In the fourth quarter of 2024, other expenses include a $0.5 million reserve to address a reconciling item related to a leasing system conversion, which is expected to be completed in the first quarter of 2025.

The efficiency ratio was 68.3% for the quarter ended December 31, 2024, compared to 63.3% for the quarter ended December 31, 2023.  The change in the efficiency ratio is primarily due to a 11.8% increase in noninterest expenses; partially offset by a 4.3% increase in net interest income and a 2.2% increase in noninterest income.

Civista’s effective income tax rate for the fourth quarter of 2024 was 13.1% compared to 14.1% in the fourth quarter of 2023.  

For the twelve months ended December 31, 2024, noninterest expense totaled $112.5 million, an increase of $4.9 million, or 4.6%, compared to the same period in the prior year. 


Noninterest expense

(unaudited – dollars in thousands)

Twelve months ended December 31,

2024

2023

$ change

% change

Compensation expense

$

61,821

$

58,291

$

3,530

6.1

%

Net occupancy and equipment

5,097

5,395

(298)

-5.5

%

Contracted data processing

2,248

2,242

6

0.3

%

Taxes and assessments

4,683

3,663

1,020

27.8

%

Professional services

5,779

4,952

827

16.7

%

Equipment Maint/Depr

9,553

11,085

(1,532)

-13.8

%

ATM/Interchange expense

2,544

2,420

124

5.1

%

Marketing

2,088

1,352

736

54.4

%

Sponsorships

1,263

1,257

6

0.5

%

Communications

2,040

2,157

(117)

-5.4

%

Insurance Expense

1,240

1,210

30

2.5

%

Software maintenance expense

4,944

4,167

777

18.6

%

Other


9,220


9,420


(200)

-2.1

%

Total noninterest expense


$


112,520


$


107,611


$


4,909

4.6

%

Compensation expense increased primarily due to merit increases, employee insurance, and other payroll-related expenses. The year-to-date average number of full time equivalent (FTE) employees was 531 for the twelve-months ended December 31, 2024, compared with an average number of 510 for the same period in 2023. 

Equipment maintenance and depreciation expense decreased by $1.5 million, primarily from a decrease in depreciation of equipment on operating leases as operating leases mature.

Software maintenance expense increased due to increases in both software maintenance contracts as well as the implementation of the new digital banking platform.   

Other expenses include a $1.2 million reserve to address a reconciling item related to a leasing system conversion, which is expected to be completed in the first quarter of 2025.

The efficiency ratio was 70.8% for the twelve months ended December 31, 2024 compared to 64.2% for the twelve months ended December 31, 2023.  The change in the efficiency ratio is primarily due to an 4.6% increase in noninterest expense and a 7.0% decrease in net interest income, partially offset by an 1.6% increase in noninterest income.

Civista’s effective income tax rate for the twelve months ended December 31, 2024 was 13.4% compared to 15.1% for the twelve months ended December 31, 2023. 

Balance Sheet

Total assets at December 31, 2024, were $4.1 billion, an increase of $237.1 million, or 6.1%, from December 31, 2023.

End of period loan and lease balances

(unaudited – dollars in
thousands)

December
31,

December
31,

2024

2023

$ Change

% Change

Commercial and Agriculture

$

328,488

$

304,793

$

23,695

7.8

%

Commercial Real Estate:

Owner Occupied

374,367

377,321

(2,954)

-0.8

%

Non-owner Occupied

1,225,991

1,161,894

64,097

5.5

%

Residential Real Estate

763,869

659,841

104,028

15.8

%

Real Estate Construction

305,992

260,409

45,583

17.5

%

Farm Real Estate

23,035

24,771

(1,736)

-7.0

%

Lease financing receivable

46,900

54,642

(7,742)

-14.2

%

Consumer and Other


12,588


18,057


(5,469)

-30.3

%

Total Loans


$


3,081,230


$


2,861,728


$


219,502

7.7

%

Loan and lease balances increased $219.5 million, or 7.7% since December 31, 2023.

Growth was tempered in 2024 as the company continued its diligent focus on rate, margin, deposits and reduce dependency on wholesale funding. 

Commercial Real Estate continued to grow due to consistent demand in the non-owner occupied category, especially in the multi-family area in the major Ohio metropolitan areas.  Real Estate Construction has increased with consistent demand for more projects across the state of Ohio. 

Residential Real Estate has grown primarily due to more home construction loans as we meet the demand for housing and construction financing by our customers and communities.

Deposits

Total deposits at December 31, 2024 were $3.2 billion, an increase of $226.8 million, or 7.6%, from December 31, 2023. 

(unaudited – dollars in
thousands)

December
31,

December
31,

2024

2023

$ Change

%
Change

Noninterest-bearing demand

$

695,094

$

771,699

$

(76,605)

-9.9

%

Interest-bearing demand

419,583

449,449

(29,866)

-6.6

%

Savings and money market

1,127,765

854,881

272,884

31.9

%

Time deposits

469,163

391,809

77,354

19.7

%

Brokered deposits


500,265


517,190


(16,925)

-3.3

%

Total Deposits


$


3,211,870


$


2,985,028


$


226,842

7.6

%

The $76.6 million decrease in noninterest-bearing demand deposits was primarily due to a $51.4 million decrease in noninterest-bearing accounts related to the former tax refund processing program.  Also, included is $9.8 million decrease in noninterest-bearing business accounts and $10.6 million decrease in noninterest-bearing personal accounts as customers migrate deposits to interest-bearing accounts.

The $29.9 million decrease in interest-bearing demand deposits was primarily due to a $10.9 million decrease in interest-bearing personal accounts, a $9.8 million decrease in interest-bearing public fund accounts, and a $8.2 million decrease in interest-bearing business accounts.

The $272.9 million increase in savings and money market deposits was primarily due to a $45.0 million increase in business money market accounts, $121.9 million increase in public funds money markets, partially offset by a $15.9 million decrease in statement savings coupled with a $8.2 million decrease in business savings accounts.  Included in the growth are the $97.0 million of trust cash deposits brought onto the balance sheet in the third quarter, and $95.7 million of deposits associated with the Ohio Home Buyers Program.

The $77.4 million increase in time deposits was primarily due to a $22.7 million increase in Jumbo time certificates, a $23.5 million increase in retail time certificates, and a $26.9 million increase in time certificates over $250 thousand.    

FHLB overnight advances totaled $339.0 million on December 31, 2024, up $52.0 million from $287.0 million on September 30, 2024 and up slightly from $338.0 million on December 31, 2023.  FHLB term advances totaled $1.5 million on December 31, 2024, down from $2.4 million on December 31, 2023.

Stock Repurchase Program

Civista did not repurchase any shares in 2024, leaving the entire $13.5 million of the current repurchase authorization remaining.  The current repurchase plan will expire in May 2025.  In January 2024, Civista liquidated 8,262 shares held by employees, at $18.38 per share, to satisfy tax obligations stemming from vesting of restricted shares.

Shareholders’ Equity

Total shareholders’ equity at December 31, 2024, totaled $388.5 million, an increase of $16.5 million from December 31, 2023.  This resulted from an increase of $21.6 million in retained earnings and a reduction in accumulated other comprehensive loss of $5.8 million.    

Asset Quality

Civista recorded net charge-offs of $3.4 million for the twelve months of 2024 compared to net charge-offs of $1.0 million for the same period of 2023.  The allowance for credit losses to loans ratio was 1.29% at December 31, 2024, compared to 1.36% at September 30, 2024 and 1.30% at December 31, 2023.     


Allowance for Credit Losses

(dollars in thousands)

Twelve months ended December 31,

2024

2023

Beginning of period

$

37,160

$

28,511

CECL adoption adjustments

–

5,193

Charge-offs

(3,915)

(1,431)

Recoveries

539

452

Provision


5,885


4,435

End of period


$


39,669


$


37,160

 


Allowance for Unfunded Commitments

(dollars in thousands)

Twelve months ended December 31,

2024

2023

Beginning of period

$

3,901

$

–

CECL adoption adjustments

–

3,386

Charge-offs

–

–

Recoveries

–

–

Provision


(521)


515

End of period


$


3,380


$


3,901

Non-performing assets at December 31, 2024 were $31.9 million, an increase of $16.7 million or 111%, from December 31, 2023.  The non-performing assets to assets ratio was 0.78% at December 31, 2024 and 0.39% at December 31, 2023.  The allowance for credit losses to non-performing loans decreased from 245.67% at December 31, 2023 to 124.49% at December 31, 2024.  

(dollars in thousands)

December 31,

December 31,

2024

2023

Non-accrual loans

$

30,950

$

12,467

Restructured loans


1,677


2,659

Total non-performing loans

32,627

15,126

Other Real Estate Owned


–


–

Total non-performing assets


$


32,627


$


15,126


Conference Call and Webcast

Civista Bancshares, Inc. will also host a conference call to discuss the Company’s financial results for the fourth quarter of 2024 at 1:00 p.m. ET on Thursday, January 30, 2025.  Interested parties can access the live webcast of the conference call through the Investor Relations section of the Company’s website, www.civb.com. Participants can also listen to the conference call by dialing 800-836-8184 and ask to be joined into the Civista Bancshares, Inc. fourth quarter 2024 earnings call.  Please log in or dial in at least 10 minutes prior to the start time to ensure a connection.  An archive of the webcast will be available for one year on the Investor Relations section of the Company’s website (www.civb.com).


Forward Looking Statements

This press release may contain forward-looking statements regarding the financial performance, business prospects, growth and operating strategies of Civista.  For these statements, Civista claims the protections of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.   Statements in this press release should be considered in conjunction with the other information available about Civista, including the information in the filings we make with the Securities and Exchange Commission. 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.  We have tried, wherever possible, to identify such statements by using words such as “anticipate,” “estimate,” “project,” “intend,” “plan,” “believe,” “will” and similar expressions in connection with any discussion of future operating or financial performance. Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements.  Risks and uncertainties that could cause actual results to differ materially include risk factors relating to the banking industry and the other factors detailed from time to time in Civista’ reports filed with the Securities and Exchange Commission, including those described in “Item 1A Risk Factors” of Part I of Civista’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, and any additional risks identified in the Company’s subsequent Form 10-Q’s.  Undue reliance should not be placed on the forward-looking statements, which speak only as of the date hereof.  Civista does not undertake, and specifically disclaims any obligation, to update any forward-looking statement to reflect the events or circumstances after the date on which the forward-looking statement is made, or reflect the occurrence of unanticipated events, except to the extent required by law.

Civista Bancshares, Inc., is a $4.1 billion financial holding company headquartered in Sandusky, Ohio.  Its primary subsidiary, Civista Bank, was founded in 1884 and provides full-service banking, commercial lending, mortgage, and wealth management services.  Today, Civista Bank operates 42 locations across Ohio, Southeastern Indiana and Northern Kentucky.  Civista Bank also offers commercial equipment leasing services for businesses nationwide through its Civista Leasing and Finance Division.  Civista Bancshares’ common shares are traded on the NASDAQ Capital Market under the symbol “CIVB”.  Learn more at www.civb.com.

For additional information, contact:
Dennis G. Shaffer 
CEO and President
Civista Bancshares, Inc.
888-645-4121

Civista Bancshares, Inc.

Financial Highlights

(Unaudited, dollars in thousands, except share and per share amounts)

Consolidated Condensed Statement of Income

Three Months Ended

Twelve Months Ended

December 31,

December 31,


2024


2023


2024


2023

Interest income

$

53,233

$

48,599

$

206,695

$

182,734

Interest expense


21,878


18,547


89,985


57,238

Net interest income

31,355

30,052

116,710

125,496

Provision for credit losses

697

2,325

5,885

4,435

Provision for unfunded commitments


(1)


–


(521)


–

Net interest income after provision

30,659

27,727

111,346

121,061

Noninterest income

9,015

8,823

37,748

37,163

Noninterest expense


28,296


25,313


112,520


107,611

Income before taxes

11,378

11,237

36,574

50,613

Income tax expense


1,485


1,582


4,891


7,649

Net income

9,893

9,655

31,683

42,964

Preferred stock dividends


–


–


–


–

Net income available

to common shareholders

$

9,893

$

9,655

$

31,683

$

42,964

Dividends paid per common share

$

0.16

$

0.16

$

0.64

$

0.61

Earnings per common share

Basic

Net income


$


9,893


$


9,655


$


31,683


$


42,964

Less allocation of earnings and

dividends to participating securities


213


362


671


1,585

Net income available to common

shareholders – basic


$


9,680


$


9,293


$


31,012


$


41,379

Weighted average common shares outstanding

15,736,962

15,695,978

15,724,768

15,734,624

Less average participating securities


339,626


588,625


333,029


579,857

Weighted average number of shares outstanding

used to calculate basic earnings per share


15,397,336


15,107,353


15,391,739


15,154,767

Earnings per common share

Basic

$

0.63

$

0.62

$

2.01

$

2.73

Diluted

0.63

0.62

2.01

2.73

Selected financial ratios:

Return on average assets

0.97

%

1.02

%

0.80

%

1.16

%

Return on average equity

10.43

%

11.17

%

8.40

%

12.50

%

Dividend payout ratio

25.45

%

25.81

%

31.76

%

22.34

%

Net interest margin (tax equivalent)

3.36

%

3.44

%

3.21

%

3.70

%

 

Selected Balance Sheet Items

(Dollars in thousands, except share and per share amounts)

December 31,

December 31,

2024

2023

(unaudited)

(unaudited)

 Cash and due from financial institutions

$

63,155

$

60,406

 Investment in time deposits

1,450

1,225

 Investment securities

650,488

620,441

 Loans held for sale

665

1,725

 Loans

3,081,230

2,861,728

 Less: allowance for credit losses


(39,669)


(37,160)

 Net loans

3,041,561

2,824,568

 Other securities

30,352

29,998

 Premises and equipment, net

47,166

56,769

 Goodwill and other intangibles

133,403

135,028

 Bank owned life insurance

62,783

61,335

 Other assets


67,446


69,923

 Total assets


$


4,098,469


$


3,861,418

 Total deposits

$

3,211,870

$

2,985,028

 Federal Home Loan Bank advances – short term

339,000

338,000

 Federal Home Loan Bank advances – long term

1,501

2,392

 Subordinated debentures

104,089

103,943

 Other borrowings

6,293

9,859

 Accrued expenses and other liabilities

47,214

50,194

 Total shareholders’ equity


388,502


372,002

 Total liabilities and shareholders’ equity


$


4,098,469


$


3,861,418

 Shares outstanding at period end

15,737,815

15,695,424

 Book value per share

$

24.69

$

23.70

 Equity to asset ratio

9.48

%

9.63

%

Selected asset quality ratios:

Allowance for credit losses to total loans

1.29

%

1.30

%

Non-performing assets to total assets

0.80

%

0.39

%

Allowance for credit losses to non-performing loans

121.58

%

245.67

%

Non-performing asset analysis

Nonaccrual loans

$

30,950

$

12,467

Troubled debt restructurings

1,677

2,659

Other real estate owned


–


–

Total


$


32,627


$


15,126

 

Supplemental Financial Information

(Unaudited – dollars in thousands except share data)

December
31,

September
30,

June 30,

March 31,

December
31,


End of Period Balances

2024

2024

2024

2024

2023



Assets

Cash and due from banks

$

63,155

$

74,662

$

55,760

$

50,310

$

60,406

Investment in time deposits

1,450

1,450

1,450

1,450

1,225

Investment securities

650,488

629,113

611,866

608,277

620,441

Loans held for sale

665

8,299

5,369

3,716

1,725

Loans and leases

3,081,230

3,043,946

3,014,996

2,898,139

2,861,728

Allowance for credit losses


(39,669)


(41,268)


(39,919)


(38,849)


(37,160)

Net Loans

3,041,561

3,002,678

2,975,077

2,859,290

2,824,568

Other securities

30,352

32,633

37,615

31,360

29,998

Premises and equipment, net

47,166

49,967

52,142

54,280

56,769

Goodwill and other intangibles

133,403

133,829

134,227

134,618

135,028

Bank owned life insurance

62,783

62,912

63,367

61,685

61,335

Other assets


67,446


65,880


75,041


75,272


69,923


Total Assets


$


4,098,469


$


4,061,423


$


4,011,914


$


3,880,258


$


3,861,418



Liabilities

Total deposits

$

3,211,870

$

3,223,732

$

2,977,616

$

2,980,695

$

2,985,028

Federal Home Loan Bank advances – short term

$

339,000

287,047

500,500

368,500

338,000

Federal Home Loan Bank advances – long term

$

1,501

1,598

1,841

2,211

2,392

Securities sold under agreement to repurchase

–

–

–

–

–

Subordinated debentures

104,089

104,067

104,026

103,984

103,943

Other borrowings

6,293

6,319

7,156

8,105

9,859

Secured borrowings

–

–

–

–

–

Securities purchased payable

–

–

–

–

–

Tax refunds in process

–

–

–

–

2,885

Accrued expenses and other liabilities

47,214

44,222

46,967

47,104

47,309

Total liabilities

3,709,967

3,666,985

3,638,106

3,510,599

3,489,416



Shareholders’ Equity

Common shares

312,037

311,901

311,529

311,352

311,166

Retained earnings

205,408

198,034

192,186

187,638

183,788

Treasury shares

(75,586)

(75,586)

(75,574)

(75,574)

(75,422)

Accumulated other comprehensive loss

(53,357)

(39,911)

(54,333)

(53,757)

(47,530)

Total shareholders’ equity

388,502

394,438

373,808

369,659

372,002

Total Liabilities and Shareholders’ Equity


$


4,098,469


$


4,061,423


$


4,011,914


$


3,880,258


$


3,861,418

 

Supplemental Financial Information

(Unaudited – dollars in thousands except share data)

December 31,

September 30,

June 30,

March 31,

December 31,


Quarterly Average Balances

2024

2024

2024

2024

2023

Assets:

Earning assets

$

3,738,607

$

3,705,866

$

3,619,809

$

3,552,552

$

3,449,344

Securities

655,556

654,838

639,625

646,203

645,202

Loans

$

3,061,991

3,031,884

2,964,377

2,880,031

2,805,995

Liabilities and Shareholders’ Equity

Total deposits

$

3,285,485

$

3,092,583

$

2,969,380

$

2,998,150

$

2,977,802

Interest-bearing deposits

2,582,652

2,405,219

2,266,334

2,285,667

2,163,160

Other interest-bearing liabilities

493,759

493,759

546,700

431,919

383,877

Total shareholders’ equity

391,591

381,392

365,784

370,452

337,866

 

Supplemental Financial Information

(Unaudited – dollars in thousands except share data)

Three Months Ended

December
31,

September
30,

June 30,

March 31,

December
31,


Income statement

2024

2024

2024

2024

2023

Total interest and dividend income

$

53,233

$

52,741

$

50,593

$

50,128

$

48,599

Total interest expense


21,878


23,508


22,842


21,756


18,547

Net interest income

31,355

29,233

27,751

28,372

30,052

Provision for credit losses

697

1,346

1,800

2,042

2,325

Provision for unfunded commitments

(1)

(325)

(145)

(50)

–

Noninterest income

9,015

9,686

10,543

8,504

8,823

Noninterest expense


28,296


27,981


28,555


27,689


25,313

Income before taxes

11,378

9,917

8,084

7,195

11,237

Income tax expense


1,485


1,551


1,020


835


1,582

Net income


$


9,893


$


8,366


$


7,064


$


6,360


$


9,655

Preferred stock dividends


–


–


–


–


–

Net income available to

common shareholders


$


9,893


$


8,366


$


7,064


$


6,360


$


9,655


Per share data

Earnings per common share

Basic

Net income

$

9,893

$

8,366

$

7,064

$

6,360

$

9,655

Less allocation of earnings and

dividends to participating securities


213


177


153


126


362

Net income available to common

shareholders – basic

$

9,680

$

8,189

$

6,911

$

6,234

$

9,293

Weighted average common shares
outstanding

15,736,962

15,736,966

15,729,049

15,695,963

15,695,978

Less average participating securities


339,626


332,531


341,567


311,199


588,625

Weighted average number of shares
outstanding

used to calculate basic earnings per
share


15,397,336


15,404,435


15,387,482


15,384,764


15,107,353

Earnings per common share

Basic

$

0.63

$

0.53

$

0.45

$

0.41

$

0.62

Diluted

$

0.63

$

0.53

0.45

0.41

0.62

Common shares dividend paid

$

2,518

$

2,518

$

2,516

$

2,510

$

2,511

Dividends paid per common share

0.16

0.16

0.16

0.16

0.16

 

Supplemental Financial Information

(Unaudited – dollars in thousands except share data)

Three Months Ended

December
31,

September
30,

June 30,

March 31,

December 31,


Asset quality

2024

2024

2024

2024

2023

Allowance for credit losses:

Beginning of period

$

41,268

$

39,919

$

38,849

$

37,160

$

35,280

Charge-offs

(2,335)

(42)

(887)

(651)

(577)

Recoveries

39

45

157

298

132

Provision


697


1,346


1,800


2,042


2,325

End of period


$


39,669


$


41,268


$


39,919


$


38,849


$


37,160

Allowance for unfunded
commitments:

Beginning of period

$

3,381

$

3,706

$

3,851

$

3,901

$

3,981

Charge-offs

–

–

–

–

–

Recoveries

–

–

–

–

–

Provision


(1)


(325)


(145)


(50)


(80)

End of period


$


3,380


$


3,381


$


3,706


$


3,851


$


3,901


Ratios

Allowance to total loans

1.29

%

1.36

%

1.32

%

1.34

%

1.30

%

Allowance to
nonperforming assets

124.49

%

226.60

%

233.47

%

247.06

%

245.66

%

Allowance to
nonperforming loans

124.49

%

227.36

%

233.47

%

247.06

%

245.66

%


Nonperforming assets

Nonperforming loans

$

31,865

$

18,151

$

17,098

$

15,725

$

15,126

Other real estate owned


–


61


–


–


–

Total nonperforming assets

$

31,865

$

18,212

$

17,098

$

15,725

$

15,126


Capital and liquidity

Tier 1 leverage ratio

8.60

%

8.45

%

8.59

%

8.62

%

8.75

%

Tier 1 risk-based capital
ratio

10.47

%

10.29

%

10.63

%

10.81

%

10.72

%

Total risk-based capital
ratio

13.98

%

13.81

%

14.28

%

14.53

%

14.45

%

Tangible common equity
ratio (1)

6.43

%

6.64

%

6.19

%

6.28

%

6.36

%

(1) See reconciliation of non-GAAP measures at the end of this press release.

 

Reconciliation of Non-GAAP Financial Measures

(Unaudited – dollars in thousands except share data)

Three Months Ended

December
31,

September
30,

June 30,

March 31,

December
31,

2024

2024

2024

2024

2023


Tangible Common
Equity

Total Shareholder’s
Equity – GAAP

$

388,502

$

394,438

$

373,808

$

369,659

$

372,002

Less: Preferred
Equity

–

–

–

–

–

Less: Goodwill
and intangible
assets


133,403


133,829


134,227


134,618


135,028

Tangible common
equity (Non-GAAP)

$

255,099

$

260,609

$

239,581

$

235,041

$

236,974

Total Shares
Outstanding

15,737,815

15,736,528

15,737,222

15,727,013

15,695,424

Tangible book value
per share

$

16.21

$

16.56

$

15.25

$

14.95

$

15.10


Tangible Assets

Total Assets –
GAAP

$

4,098,469

$

4,061,423

$

4,011,914

$

3,880,258

$

3,861,418

Less: Goodwill
and intangible
assets


133,403


133,829


134,227


134,618


135,028

Tangible assets
(Non-GAAP)

$

3,965,066

$

3,927,594

$

3,877,687

$

3,745,640

$

3,726,390

Tangible common
equity to tangible
assets

6.43

%

6.64

%

6.19

%

6.28

%

6.36

%

 

Reconciliation of Non-GAAP Financial Measures

(Unaudited – dollars in thousands except share data)

Three Months Ended

Twelve Months Ended

December
31,

December
31,

December
31,

December
31,


Efficiency ratio (non-GAAP):

2024

2023

2024

2023

Noninterest expense (GAAP)

28,296

25,313

112,520

107,611

  Less: Amortization of intangible assets
expense

363

384

1,484

1,579

  Less: Acquisition related expenses


–


–


–


–

Noninterest expense (non-GAAP)

27,933

24,929

111,036

106,032

Net interest income (GAAP)

31,355

30,052

116,710

125,496

  Plus: Taxable equivalent adjustment

627

629

2,518

2,468

Noninterest income (GAAP)

9,015

8,823

37,748

37,163

  Less: Net gains (losses) on equity
securities


96


147


252


(21)

Net interest income (FTE) plus
noninterest income (non-GAAP)

40,901

39,357

156,724

165,148

Efficiency ratio (non-GAAP)

68.3

%

63.3

%

70.8

%

64.2

%

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/civista-bancshares-inc-announces-fourth-quarter-2024-financial-results-of-0-63-per-common-share-and-full-year-2024-financial-results-of-2-01-per-common-share-302363859.html

SOURCE Civista Bancshares, Inc.

Posted on

Tucows Announces Timing for Q4 2024 Financial Results News Release and Management Commentary

PR Newswire


TORONTO
, Jan. 30, 2025 /PRNewswire/ – Tucows Inc. (NASDAQ: TCX) (TSX: TC) today announced that it will report its financial results for the fourth quarter ended December 31, 2024, via news release on Thursday, February 13, 2025 at 5:05 p.m. ET.

Concurrent with the dissemination of its quarterly financial results news release at 5:05 p.m. ET on Thursday, February 13, 2025, management’s pre-recorded audio commentary and transcript discussing the quarter and outlook for the Company will be posted to the Tucows website at http://www.tucows.com/investors/financials.

Following management’s prepared commentary, for the subsequent seven days, until Thursday, February 20, 2025, shareholders, analysts and prospective investors can submit questions to Tucows’ management at [email protected]. Management will post responses to questions in an audio recording and transcript to the Company’s website at http://www.tucows.com/investors/financials, on Tuesday, March 4, 2025, at approximately 5 p.m. ET. All questions will receive a response, however, questions of a more specific nature may be responded to directly.

About Tucows
Tucows helps connect more people to the benefit of internet access through communications service technology, domain services, and fiber-optic internet infrastructure. Ting (https://ting.com) delivers fixed fiber Internet access with outstanding customer support. Wavelo (https://wavelo.com) is a telecommunications software suite for service providers that simplifies the management of mobile and internet network access; provisioning, billing and subscription; developer tools; and more. Tucows Domains (https://tucowsdomains.com) manages approximately 25 million domain names and millions of value-added services through a global reseller network of over 35,000 web hosts and ISPs. Hover (https://hover.com) makes it easy for individuals and small businesses to manage their domain names and email addresses. More information can be found on Tucows’ corporate website (https://tucows.com).

Tucows, Ting, Wavelo, and Hover are registered trademarks of Tucows Inc. or its subsidiaries.

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/tucows-announces-timing-for-q4-2024-financial-results-news-release-and-management-commentary-302364107.html

SOURCE Tucows Inc.

Posted on

Trevi Therapeutics to Participate in Upcoming February Investor Conferences

PR Newswire


NEW HAVEN, Conn.
, Jan. 30, 2025 /PRNewswire/ — Trevi Therapeutics, Inc. (Nasdaq: TRVI), a clinical-stage biopharmaceutical company developing the investigational therapy Haduvio™ (oral nalbuphine ER) for the treatment of patients with chronic cough in idiopathic pulmonary fibrosis (IPF) and refractory chronic cough (RCC), today announced that senior management will be attending the following investor conferences in February.


Piper Sandler Biopharma Mogul Summit


February 2-4, 2025, Park City, Utah
Trevi Representative: Lisa Delfini, Chief Financial Officer


Oppenheimer Healthcare 2025 Winter CEO & Investor Summit


February 3-6, 2025, Vail, Colorado
Trevi Representative:Jennifer Good, President and CEO


Oppenheimer


 35th Annual Healthcare Life Sciences Virtual Conference 


February 11-12, 2025

Corporate Presentation:
February 11, 9:20 – 9:50 am ET
Trevi Representatives: Jennifer Good, President and CEO, and James Cassella, Chief Development Officer
Register here to watch the live presentation

About Trevi Therapeutics, Inc.
Trevi Therapeutics, Inc. is a clinical-stage biopharmaceutical company developing the investigational therapy Haduvio™ (oral nalbuphine extended-release) for the treatment of chronic cough in patients with idiopathic pulmonary fibrosis (IPF) and refractory chronic cough (RCC). Haduvio acts on the cough reflex arc both centrally and peripherally as a kappa agonist and a mu antagonist (KAMA), which are opioid receptors that play a key role in controlling cough hypersensitivity. Nalbuphine is not currently scheduled by the U.S. Drug Enforcement Agency.

Chronic cough is a highly prevalent disease in IPF patients, impacting up to 85% of the IPF population. There are ~140,000 U.S. IPF patients and the impact of chronic cough is significant with patients coughing up to 1,500 times per day. This consistent cough and associated damage may lead to worsening disease, a higher risk of progression, death, or need for lung transplant. Chronic cough also often leads to a decline in patients’ social, physical, and psychological quality of life. There are no approved therapies for the treatment of chronic cough in IPF and current off-label treatment options provide minimal benefit to patients. 

Refractory chronic cough affects approximately 2-3 million adults in the U.S. and is caused by cough reflex hypersensitivity in both the central and peripheral nerves. It is highly disruptive and accompanied by a wide range of complications, ranging from urinary incontinence in females to sleep disruption and social embarrassment that causes significant social and economic burdens for patients and those around them. Haduvio is being developed for the treatment of moderate to severe RCC. There are also no approved therapies for RCC in the U.S.

Trevi intends to propose Haduvio as the trade name for oral nalbuphine ER. Its safety and efficacy have not been evaluated by any regulatory authority.

For more information, visit www.TreviTherapeutics.com and follow Trevi on X (formerly Twitter) and LinkedIn.

Investor Contact

Jonathan Carlson

Trevi Therapeutics, Inc.
(203) 654 3286
[email protected]

Media Contact

Rosalia Scampoli

914-815-1465
[email protected]

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/trevi-therapeutics-to-participate-in-upcoming-february-investor-conferences-302363679.html

SOURCE Trevi Therapeutics, Inc.

Posted on

International Paper Reports Full-Year and Fourth Quarter 2024 Results

PR Newswire


MEMPHIS, Tenn.
, Jan. 30, 2025 /PRNewswire/ — International Paper (NYSE: IP) today reported full-year 2024 net earnings of $557 million, or $1.57 per diluted share, and adjusted operating earnings (non-GAAP) of $400 million, or $1.13 per diluted share. Full-year net sales were $18.6 billion in 2024 and $18.9 billion in 2023. The reported fourth quarter net loss was $147 million, or $0.42 per diluted share, and adjusted operating loss (non-GAAP) was $7 million, or $0.02 per diluted share. Fourth quarter net sales were $4.6 billion in 2024 and 2023.

Full-year and fourth quarter net earnings include a pre-tax charge of $395 million for accelerated depreciation and restructuring charges, including $334 million related to the previously announced closure of the Company’s Georgetown, S.C. pulp mill.

“During 2024, we initiated our strategy to deliver profitable growth as the low-cost, most reliable and innovative sustainable packaging solutions provider for our customers,” said Chairman and CEO Andy Silvernail. “Through a disciplined 80/20 approach, we have restructured our corporate organization, added resources to the business, reduced structural costs through footprint actions and successfully piloted regional box plant optimization. In the quarter, our earnings have stabilized and we intend to accelerate earnings improvement in 2025.”

“2025 will be a transformational year with disciplined execution to further reduce costs and balance our capacity to our demand,” Silvernail added. “We will continue to optimize and invest in our box plant system to deliver service excellence for our customers while actively exploring strategic options for our Global Cellulose Fibers business. We look forward to welcoming the DS Smith team into the IP family as we work together to become a global leader in sustainable packaging solutions.” 



Diluted Net EPS and Adjusted Operating EPS


Fourth
Quarter
2024


Fourth
Quarter
2023


Third
Quarter
2024


Full-Year
2024


Full-Year
2023

Net Earnings (Loss) Per Share


$        (0.42)

$        (0.82)

$          0.42


$          1.57

$          0.82

Less – Discontinued Operations (Gain) Loss, Net of Taxes


—

—

—


—

0.04

Net Earnings (Loss) from Continuing Operations


(0.42)

(0.82)

0.42


1.57

0.86

Add Back – Non-Operating Pension Expense (Income)


(0.02)

0.04

(0.03)


(0.12)

0.15

Add Back – Net Special Items Expense (Income)


0.52

0.36

0.33


1.02

0.43

Income Taxes – Non-Operating Pension and Special Items


(0.10)

(0.09)

(0.28)


(1.34)

(0.19)

Adjusted Operating Earnings Per Share*


$        (0.02)

$        (0.51)

$          0.44


$          1.13

$          1.25



Select Financial Measures

 

(In millions)


Fourth
Quarter
2024


Fourth
Quarter
2023


Third
Quarter
2024


Full-Year
2024


Full-Year
2023

Net Sales


$         4,580

$         4,601

$         4,686


$       18,619

$       18,916

Net Earnings (Loss)


(147)

(284)

150


557

288

  Adjusted Operating Earnings*


(7)

(175)

153


400

438

Cash Provided By (Used For) Operations


397

492

521


1,678

1,833

Free Cash Flow**


137

187

309


757

692

Adjusted operating earnings (non-GAAP), adjusted operating earnings per share (non-GAAP) and business segment operating profit for the full-year and fourth quarter of 2023 included in this release have been adjusted to include the pre-tax charge of $422 million ($317 million after taxes) for accelerated depreciation related to mill strategic actions in the fourth quarter of 2023. This charge was previously treated as a special item and excluded from our non-GAAP earnings measures.

*         

Adjusted operating earnings and adjusted operating earnings per share are non-GAAP financial measures defined as net earnings (loss) (a GAAP measure) excluding discontinued operations, net special items and non-operating pension expense (income). Net earnings (loss) and diluted earnings (loss) per share are the most directly comparable GAAP measures. The Company calculates adjusted operating earnings (non-GAAP) by excluding the after-tax effect of discontinued operations, non-operating pension expense (income) and net special items from the earnings (loss) reported under U.S. GAAP. Adjusted operating earnings per share is calculated by dividing adjusted operating earnings by the diluted average shares of common stock outstanding. Management uses these measures to focus on on-going operations, and believes that such measures are useful to investors in assessing the operational performance of the Company and enabling investors to perform meaningful comparisons of past and present consolidated operating results from continuing operations. For discussion of net special items and non-operating pension expense (income), see the disclosure under Effects of Net Special Items and Consolidated Statement of Operations and related notes included later in this release. A reconciliation of net earnings (loss) to adjusted operating earnings and diluted earnings (loss) per share to adjusted operating earnings per share, and an explanation of why we believe these non-GAAP financial measures provide useful information to investors, are included later in this release.

**       

Free cash flow is a non-GAAP financial measure, which equals cash provided by operations (a GAAP measure) less cash invested in capital projects. The most directly comparable GAAP measure is cash provided by (used for) operations. A reconciliation of cash provided by (used for) operations to free cash flow and an explanation of why we believe this non-GAAP financial measure provides useful information to investors, are included later in this release.

SEGMENT INFORMATION
The following table presents net sales and business segment operating profit (loss), which is the Company’s measure of segment profitability. Business segment operating profit (loss) is a measure reported to our management for purposes of making decisions about allocating resources to our business segments and assessing the performance of our business segments and is presented in our financial statement footnotes in accordance with ASC 280 – “Segment Reporting”. Fourth quarter 2024 net sales by business segment and operating profit (loss) by business segment compared with the third quarter of 2024 and the fourth quarter of 2023 along with full-year 2024 net sales by business segment and operating profit (loss) by business segment compared with full-year 2023 are as follows:



Business Segment Results

 

(In millions)


Fourth
Quarter
2024


Fourth
Quarter
2023


Third
Quarter
2024


Full-Year
2024


Full-Year
2023


Net Sales by Business Segment

Industrial Packaging


$             3,869

$             3,842

$            3,926


$          15,534

$          15,596

Global Cellulose Fibers


662

656

710


2,793

2,890

Corporate and Inter-segment Sales


49

103

50


292

430


Net Sales


$             4,580

$             4,601

$            4,686


$          18,619

$          18,916


Business Segment Operating Profit (Loss)

Industrial Packaging


$                247

$                (32)

$               197


$               951

$               919

Global Cellulose Fibers


(250)

(133)

40


(226)

(92)

Industrial Packaging business segment operating profit (loss) in the fourth quarter of 2024 was $247 million compared with $197 million in the third quarter of 2024. In North America, net sales were lower as higher sales prices for boxes and containerboard were more than offset by lower volumes. Cost of products sold was impacted by lower recovered fiber costs and lower planned outage costs. Other input costs were flat, as higher energy costs were offset by lower wood and freight costs. Business segment operating profit (loss) was improved by an insurance reimbursement related to the Ixtac, Mexico box plant fire of $13 million in the fourth quarter of 2024 and $25 million in the third quarter of 2024. In EMEA Packaging, net sales were higher driven by seasonally higher volumes and an improved product mix. Cost of products sold was impacted by lower input costs reflecting an energy subsidy received in the fourth quarter of 2024.   

Global Cellulose Fibers business segment operating profit (loss) in the fourth quarter of 2024 was $(250) million compared with $40 million in the third quarter of 2024. Net sales were lower, driven by lower average sales prices and lower volumes for both commodity pulp and fluff pulp. Cost of products sold was impacted by higher operating costs, driven by mill reliability incidents, higher planned outage costs and lower input costs reflecting lower wood and chemical costs partially offset by higher energy costs. Business segment operating profit was impacted by $215 million of accelerated depreciation expense in the fourth quarter of 2024 associated with the previously announced closure of the Georgetown, South Carolina pulp mill.

EFFECTS OF NET SPECIAL ITEMS
Net special items include items considered by management to not be reflective of the Company’s underlying operations. Net special items in the fourth quarter of 2024 amount to a net after-tax charge of $146 million ($0.42 per diluted share) compared with a charge of $12 million ($0.04 per diluted share) in the third quarter of 2024 and a charge of $98 million ($0.28 per diluted share) in the fourth quarter of 2023. Net special items in all periods include the following charges (benefits):


Fourth Quarter 2024


Fourth Quarter 2023


Third Quarter 2024

(In millions)


Before Tax


After Tax


Before Tax


After Tax


Before Tax


After Tax

Severance and other costs


$           162


$           122


(a)

$             99

$             75

(a)

$             56

$             42

(a)

DS Smith combination costs


38


38


(b)

—

—

26

26

(b)

Environmental remediation adjustments


35


26


(c)

7

5

(c)

—

—

Global Cellulose Fibers strategic options costs


5


4


(b)

—

—

—

—

Strategic advisory fees


—


—

—

—

25

19

(b)

Third-party warehouse fire


—


—

—

—

13

9

(e)

Net gain on sale of fixed assets


(58)


(44)


(d)

—

—

—

—

Italy antitrust


—


—

—

—

(6)

(6)

(f)

Equity method investment impairment


—


—

18

14

(h)

—

—

Tax expense (benefit) related to internal legal entity restructuring


—


—

—

4

(g)

—

(78)

(g)


 Total special items, net


$           182


$           146

$           124

$             98

$           114

$             12

(a)

Severance and other costs associated with the Company’s 80/20 strategic approach which includes the realignment of resources and mill strategic actions. See note (d) of the Consolidated Statement of Operations.

(b)

Transaction and other costs that the Company believes are not reflective of the Company’s underlying operations.

(c)

Environmental remediation adjustments associated with remediation work at a waste pit site at a mill acquired but never operated by the Company, and last utilized by the predecessor owner of the mill, and post-closure remediation work associated with the mill strategic actions implemented in Q4 2023.

(d)

Net gain on the sale of fixed assets primarily for a building at our Orange, Texas containerboard mill which was permanently closed in Q4 2023. See note (e) of the Consolidated Statement of Operations.

(e)

The Company’s cost for third-party damages associated with a warehouse fire in Morocco.

(f)

Settlement associated with an Italian antitrust matter initially recorded as a special item in 2019.

(g)

Tax benefit resulting from internal legal entity restructuring.

(h)

Other-than-temporary impairment of an equity method investment.

EARNINGS WEBCAST
The company will host a webcast today to discuss earnings and current market conditions, beginning at 10 a.m. ET (9 a.m. CT). All interested parties are invited to listen to the webcast via the company’s website by clicking on the Investors tab and going to the Events & Presentations page at https://www.internationalpaper.com/investors/events-presentations. A replay of the webcast will also be on the website beginning approximately two hours after the call.

Parties who wish to participate in the webcast via teleconference may dial +1 (646) 307-1963 or, within the U.S. only, (800) 715-9871, and ask to be connected to the International Paper fourth quarter earnings call. The conference ID number is 5125982. Participants should call in no later than 9:45 a.m. ET (8:45 a.m. CT). An audio-only replay will be available for ninety days following the call. To access the replay, dial +1 (609) 800-9909 or, within the U.S. only, (800) 770-2030 and when prompted for the conference ID, enter 5125982.

About International Paper
International Paper (NYSE: IP) is a global producer of sustainable packaging, pulp and other fiber-based products, and one of the world’s largest recyclers. Headquartered in Memphis, Tenn., we employ approximately 37,000 colleagues globally who are committed to creating what’s next. We serve customers worldwide, with manufacturing operations in North America, Europe, Latin America and North Africa. Net sales for 2024 were $18.6 billion.

Visit https://www.internationalpaper.com/investors for more information regarding International Paper, including a slide presentation regarding the full-year and fourth quarter 2024. We use this website as a primary channel for disclosing key information to our investors, some of which may contain material and previously non-public information.

Cautionary Statement Regarding Forward-Looking Statements
Certain statements in this press release that are not historical in nature may be considered “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements can be identified by the use of forward-looking or conditional words such as “expects,” “anticipates,” “believes,” “estimates,” “could,” “should,” “can,” “forecast,” “intend,” “look,” “may,” “will,” “remain,” “confident,” “commit” and “plan” or similar expressions. These statements are not guarantees of future performance and reflect management’s current views and speak only as to the dates the statements are made and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in these statements. All statements, other than statements of historical fact, are forward-looking statements, including, but not limited to, statements regarding anticipated financial results, economic conditions, industry trends, future prospects and the anticipated benefits, execution and consummation of corporate transactions or contemplated acquisitions, including our proposed business combination with DS Smith Plc, which we expect to close on January 31, 2025. Factors which could cause actual results to differ include but are not limited to: (i) our ability to consummate and achieve the benefits expected from, and other risks associated with, acquisitions, joint ventures, divestitures, spinoffs, capital investments and other corporate transactions, including, but not limited to, our proposed business combination with DS Smith Plc; (ii) our ability to integrate and implement our plans, forecasts, and other expectations with respect to the combined company, including in light of our increased scale and global presence; (iii) risks with respect to climate change and global, regional, and local weather conditions, as well as risks related to our targets and goals with respect to climate change and the emission of greenhouse gases (GHG) and other environmental, social and governance matters, including our ability to meet such targets and goals; (iv) loss contingencies and pending, threatened or future litigation, including with respect to environmental related matters; (v) the level of our indebtedness, risks associated with our variable rate debt, and changes in interest rates (including the impact of current elevated interest rate levels); (vi) the impact of global and domestic economic conditions and industry conditions, including with respect to current challenging macroeconomic conditions, recent inflationary pressures and changes in the cost or availability of raw materials, energy sources and transportation sources, supply chain shortages and disruptions, competition we face, cyclicality and changes in consumer preferences, demand and pricing for our products, and conditions impacting the credit, capital and financial markets; (vii) risks arising from conducting business internationally, domestic and global geopolitical conditions, military conflict (including the Russia/Ukraine conflict, the conflict in the Middle East, the further expansion of such conflicts, and the geopolitical and economic consequences associated therewith), changes in currency exchange rates, including in light of our increased proportion of assets, liabilities and earnings denominated in foreign currencies as a result of our proposed business combination with DS Smith Plc, trade policies (such as protectionist measures and increased tariffs) and trade tensions, downgrades in our credit ratings, and/or the credit ratings of banks issuing certain letters of credit, issued by recognized credit rating organizations; (viii) the amount of our future pension funding obligations, and pension and healthcare costs; (ix) the costs of compliance, or the failure to comply with, existing, evolving or new environmental (including with respect to climate change and greenhouse gas emissions), tax, trade, labor and employment, privacy, anti-bribery and anti-corruption, and other U.S. and non-U.S. governmental laws, regulations and policies (including but not limited to those in the United Kingdom and European Union); (x) any material disruption at any of our manufacturing facilities or other adverse impact on our operations due to severe weather, natural disasters, climate change or other causes; (xi) our ability to realize expected benefits and cost savings associated with restructuring initiatives; (xii) cybersecurity and information technology risks, including as a result of security breaches and cybersecurity incidents; (xiii) our exposure to claims under our agreements with Sylvamo Corporation; (xiv) the qualification of such spin-off as a tax-free transaction for U.S. federal income tax purposes; (xv) risks associated with our review of strategic options for our Global Cellulose Fibers business; (xvi) our ability to attract and retain qualified personnel and maintain good employee or labor relations; (xvii) our ability to maintain effective internal control over financial reporting; and (xviii) our ability to adequately secure and protect our intellectual property rights. These and other factors that could cause or contribute to actual results differing materially from such forward-looking statements can be found in our press releases and reports filed with the U.S. Securities and Exchange Commission. In addition, other risks and uncertainties not presently known to the Company or that we currently believe to be immaterial could affect the accuracy of any forward-looking statements. The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.


INTERNATIONAL PAPER COMPANY

Consolidated Statement of Operations

Preliminary and Unaudited
(In millions, except per share amounts)


Three Months Ended

December 31,


Three Months Ended

September 30


Twelve  Months Ended

December 31,


2024


2023


2024


2024


2023


Net Sales


$         4,580

$         4,601

$                              4,686


$       18,619

$      18,916


Costs and Expenses

Cost of products sold


3,250


(a)

3,282

(h)

3,342

(a)


13,376


(a)

13,629

(h)

Selling and administrative expenses


521


(b)

357

508

(b)


1,840


(b)

1,360

Depreciation and amortization


499


(c)

689

(c)

267


1,305


(c)

1,432

(c)

Distribution expenses


348

395

357


1,475

1,575

Taxes other than payroll and income taxes


34

39

37


147

154

Restructuring charges, net


162


(d)

99

(i)

56

(d)


221


(d)

99

(i)

Net (gains) losses on sales of fixed assets


(58)


(e)

—

—


(58)


(e)

—

Interest expense, net


56

52

51


208


(f)

231

(j)

Non-operating pension expense (income)


(8)

14

(12)


(42)

54


Earnings (Loss) From Continuing Operations Before Income Taxes and Equity Earnings (Loss)


(224)

(326)

80


147

382

Income tax provision (benefit)


(78)

(61)

(k)

(71)

(g)


(415)


(g)

59

(k)

Equity earnings (loss), net of taxes


(1)

(19)

(l)

(1)


(5)

(21)

(l)


Earnings (Loss) From Continuing Operations


(147)

(284)

150


557

302

Discontinued operations, net of taxes


—

—

—


—

(14)

(m)


Net Earnings (Loss)


$           (147)

$          (284)

$                                 150


$            557

$           288


Basic Earnings Per Common Share

Earnings (loss) from continuing operations


$          (0.42)

$         (0.82)

$                                0.43


$           1.60

$          0.87

Discontinued operations, net of taxes


—

—

—


—

(0.04)

Net earnings (loss)


$          (0.42)

$         (0.82)

$                                0.43


$           1.60

$          0.83


Diluted Earnings Per Common Share

Earnings (loss) from continuing operations


$          (0.42)

$         (0.82)

$                                0.42


$           1.57

$          0.86

Discontinued operations, net of taxes


—

—

—


—

(0.04)

Net earnings (loss)


$          (0.42)

$         (0.82)

$                                0.42


$           1.57

$          0.82


Average Shares of Common Stock Outstanding – Diluted


347.4

346.0

353.4


354.2

349.1

The accompanying notes are an integral part of this Consolidated Statement of Operations.

(a)

Includes pre-tax charges of $35 million ($26 million after taxes) and $60 million ($45 million after taxes) for the three months and twelve months ended December 31, 2024, respectively, for environmental remediation adjustments, a pre-tax charge of $13 million ($9 million after taxes) for the three months ended September 30, 2024 and the twelve months ended December 31, 2024 for third-party damages related to a warehouse fire in Morocco, pre-tax income of $6 million (before and after taxes) for the three months ended September 30, 2024 and the  twelve months ended December 31, 2024 related to the settlement of an Italian antitrust fine and a pre-tax charge of $10 million ($7 million after taxes) for the twelve months ended December 31, 2024 for a litigation reserve.

(b)

Includes pre-tax charges of $38 million (before and after taxes), $26 million (before and after taxes) and $86 million ($85 million after taxes) for the three months ended December 31, 2024 and September 30, 2024 and the twelve months ended December 31, 2024, respectively, for costs associated with our announced agreement of an all-share combination with DS Smith Plc, a pre-tax charge of $5 million ($4 million after taxes) for the three months and twelve months ended December 31, 2024 for costs associated with our announced decision to explore strategic options for our Global Cellulose Fibers business and pre-tax charges of $25 million ($19 million after taxes) and $37 million ($28 million after taxes) for the three months ended September 30, 2024 and the twelve months ended December 31, 2024, respectively, for strategic advisory fees.

(c)

Includes pre-tax charges of $233 million ($175 million after taxes) for the three months and twelve months ended December 31, 2024 and $422 million ($317 million after taxes) for the three months and twelve months ended December 31, 2023 for accelerated depreciation associated with our mill and 80/20 strategic actions and a pre-tax charge of $5 million ($4 million after taxes) for the twelve months ended December 31, 2024 for closure costs associated with our mill strategic actions.

(d)

Includes pre-tax charges of $162 million ($122 million after taxes), $56 million ($42 million after taxes) and $221 million ($166 million after taxes) for the three months ended December 31, 2024 and September 30, 2024 and the twelve months ended December 31, 2024, respectively, for severance and other costs related to our mill strategic actions and 80/20 strategic approach.

(e)

Includes a pre-tax gain of $54 million ($41 million after taxes) for the three months and twelve months ended December 31, 2024 related to the sale of a building at our Orange, Texas containerboard mill, a pre-tax net gain of $4 million ($3 million after taxes) for the three months and twelve months ended December 31, 2024 related to miscellaneous land sales and other items.

(f)

Includes pre-tax income of $10 million ($7 million after taxes) for the twelve months ended December 31, 2024 for interest income associated with the settlement of tax audits.

(g)

Includes tax benefits of $78 million and $416 million for the three months ended September 30, 2024 and the twelve months ended December 31, 2024, respectively, related to internal legal entity restructuring.

(h)

Includes pre-tax charges of $7 million ($5 million after taxes) and $36 million ($27 million after taxes) for the three months and twelve months ended December 31, 2023, respectively, for environmental remediation reserve adjustments.

(i)

Includes a pre-tax charge of $118 million ($89 million after taxes) for the three months and twelve months ended December 31, 2023 for severance and other costs associated with our mill strategic actions and pre-tax income of $19 million ($14 million after taxes) for the three months and twelve months ended December 31, 2023 for the revision of severance estimates related to our Building a Better IP initiative. 

(j)

Includes pre-tax income of $6 million ($4 million after taxes) for the twelve months ended December 31, 2023 for interest income associated with the settlement of tax audits and a pre-tax charge of $3 million ($2 million after taxes) for the twelve months ended December 31, 2023 related to the previously announced settlement of the timber monetization restructuring tax matter.

(k)

Includes tax expense of $4 million for the three months and twelve months ended December 31, 2023 related to internal legal entity restructuring and a tax benefit of $23 million for the twelve months ended December 31, 2023 related to the settlement of tax audits.

(l)

Includes a pre-tax charge of $18 million ($14 million after taxes) for the three months and twelve months ended December 31, 2023 for the other-than-temporary impairment of an equity method investment.

(m)

Includes charges of $135 million ($126 million after taxes) for the twelve months ended December 31, 2023 for impairment and transaction costs related to our former equity method investment in the Ilim joint venture.

 


INTERNATIONAL PAPER COMPANY

Reconciliation of Net Earnings (Loss) to Adjusted Operating Earnings

Preliminary and Unaudited
(In millions, except per share amounts)


Three Months Ended

December 31,


Three Months Ended

September 30


Twelve  Months Ended

December 31,


2024


2023


2024


2024


2023


Net Earnings (Loss)


$                (147)

$                 (284)

$                             150


$          557

$        288

Less: Discontinued operations, net of taxes (gain) loss


—

—

—


—

14


Earnings (Loss) from Continuing Operations


(147)

(284)

150


557

302

Add back: Non-operating pension expense (income)


(8)

14

(12)


(42)

54

Add back: Net special items expense (income)


182

124

114


363

150

Income taxes – Non-operating pension and special items


(34)

(29)

(99)


(478)

(68)


Adjusted Operating Earnings


$                    (7)

$                 (175)

$                             153


$          400

$        438


Three Months Ended

December 31,


Three Months Ended

September 30


Twelve  Months Ended

December 31,


2024


2023


2024


2024


2023


Diluted Earnings per Common Share as Reported


$               (0.42)

$                (0.82)

$                            0.42


$         1.57

$       0.82

Less: Discontinued operations, net of taxes (gain) loss


—

—

—


—

0.04


Continuing Operations


(0.42)

(0.82)

0.42


1.57

0.86

Add back: Non-operating pension expense (income)


(0.02)

0.04

(0.03)


(0.12)

0.15

Add back: Net special items expense (income)


0.52

0.36

0.33


1.02

0.43

Income taxes per share – Non-operating pension and special items


(0.10)

(0.09)

(0.28)


(1.34)

(0.19)


Adjusted Operating Earnings per Share


$               (0.02)

$                (0.51)

$                            0.44


$         1.13

$       1.25


Notes:

Adjusted Operating Earnings and Adjusted Operating Earnings Per Share are non-GAAP financial measures defined as net earnings (loss) (a GAAP measure) excluding discontinued operations, net special items and non-operating pension expense (income). Net earnings (loss) and Diluted earnings (loss) per share are the most directly comparable GAAP measures. The Company calculates Adjusted Operating Earnings (non-GAAP) by excluding the after-tax effect of discontinued operations, non-operating pension expense (income) and net special items, as described in greater detail above, from the net earnings (loss) reported under U.S. GAAP. Adjusted Operating Earnings Per Share is calculated by dividing Adjusted Operating Earnings by the diluted average shares of common stock outstanding. Management uses these non-GAAP financial measures to focus on on-going operations, and believes that such non-GAAP financial measures are useful to investors in assessing the operational performance of the Company and enabling investors to perform meaningful comparisons of past and present consolidated operating results from continuing operations. The Company believes that these non-GAAP financial measures, viewed alongside the most directly comparable GAAP measures, provides for a more complete analysis of the Company’s results of operations. 

Non-operating pension expense (income) represents amortization of prior service cost, amortization of actuarial gains/losses, expected return on assets and interest cost. The Company excludes these amounts from Adjusted Operating Earnings as the Company does not believe these items reflect ongoing operations. These particular pension cost elements are not directly attributable to current employee service. The Company includes service cost in our non-GAAP financial measure as it is directly attributable to employee service, and the corresponding employees’ compensation elements, in connection with ongoing operations.

Since diluted earnings per share are computed independently for each period, twelve-month per share amounts may not equal the sum of respective quarters.

 


INTERNATIONAL PAPER COMPANY

Consolidated Balance Sheet

Preliminary and Unaudited
(In millions)

 


December 31, 2024


December 31, 2023


Assets


Current Assets

Cash and Temporary Investments


$                     1,170

$                     1,113

Accounts and Notes Receivable, Net


2,966

3,059

Contract Assets


396

433

Inventories


1,784

1,889

Other


108

114

Total Current Assets


6,424

6,608

Plants, Properties and Equipment, Net


9,658

10,150

Investments


160

163

Long-Term Financial Assets of Variable Interest Entities


2,331

2,312

Goodwill


3,038

3,041

Overfunded Pension Plan Assets


92

118

Right of Use Assets


433

448

Deferred Charges and Other Assets


664

421


Total Assets


$                   22,800

$                   23,261


Liabilities and Equity


Current Liabilities

Notes Payable and Current Maturities of Long-Term Debt


193

138

Accounts Payable and Other Current Liabilities


4,115

3,821

Total Current Liabilities


4,308

3,959

Long-Term Debt


5,368

5,455

Long-Term Nonrecourse Financial Liabilities of Variable Interest Entities


2,120

2,113

Deferred Income Taxes


1,072

1,552

Underfunded Pension Benefit Obligation


233

280

Postretirement and Postemployment Benefit Obligation


133

140

Long-Term Lease Obligations


292

312

Other Liabilities


1,101

1,095


Equity

Common Stock


449

449

Paid-in Capital


4,732

4,730

Retained Earnings


9,393

9,491

Accumulated Other Comprehensive Loss


(1,722)

(1,565)


12,852

13,105

Less: Common Stock Held in Treasury, at Cost


4,679

4,750

Total Equity


8,173

8,355


Total Liabilities and Equity


$                   22,800

$                   23,261

 


INTERNATIONAL PAPER COMPANY

Consolidated Statement of Cash Flows

Preliminary and Unaudited
(In millions)

 


Twelve Months Ended December 31,


2024


2023


Operating Activities

Net earnings (loss)


$                        557

$                         288

Depreciation and amortization


1,305

1,432

Deferred income tax expense (benefit), net


(473)

(156)

Restructuring charges, net


221

99

Net (gains) losses on sales and impairments of equity method investments


—

153

Net (gains) losses on sales on sales of fixed assets


(58)

—

Equity method dividends received


—

13

Equity (earnings) losses, net of taxes


5

(108)

Periodic pension (income) expense, net


1

94

Other, net


130

20

Changes in current assets and liabilities

Accounts and notes receivable


59

255

Contract assets


36

48

Inventories


12

73

Accounts payable and accrued liabilities


(140)

(402)

Interest payable


16

(19)

Other


7

43


Cash Provided By (Used For) Operating Activities


1,678

1,833


Investment Activities

Invested in capital projects


(921)

(1,141)

Proceeds from sale of equity method investments, net of transaction costs


—

472

Proceeds from insurance recoveries


25

—

Proceeds from sale of fixed assets


91

4

Other


(3)

(3)


Cash Provided By (Used For) Investment Activities


(808)

(668)


Financing Activities

Repurchases of common stock and payments of restricted stock tax withholding


(23)

(218)

Issuance of debt


102

783

Reduction of debt


(141)

(780)

Change in book overdrafts


(69)

(8)

Dividends paid


(643)

(642)

Other


(1)

(1)


Cash Provided By (Used for) Financing Activities


(775)

(866)


Effect of Exchange Rate Changes on Cash and Temporary Investments


(38)

10


Change in Cash and Temporary Investments


57


309


Cash and Temporary Investments

Beginning of the period


1,113

804

End of the period


$                     1,170

$                      1,113

 

 



INTERNATIONAL PAPER COMPANY
Reconciliation of Cash Provided by Operations to Free Cash Flow

Preliminary and Unaudited
(In millions)



Three Months Ended
December 31,



Twelve  Months Ended
December 31,


2024


2023


2024


2023



Cash Provided By (Used For) Operating Activities


$                              397

$                              492


$                                1,678

$                                1,833

Adjustments:

Cash invested in capital projects


(260)

(305)


(921)

(1,141)



Free Cash Flow


$                              137

$                              187


$                                  757

$                                  692

Free cash flow is a non-GAAP financial measure which equals cash provided by (used for) operating activities less cash invested in capital projects. The most directly comparable GAAP measure is cash provided by operations. Management utilizes this measure in connection with managing our business and believes that free cash flow is useful to investors as a liquidity measure because it measures the amount of cash generated that is available, after reinvesting in the business, to maintain a strong balance sheet, pay dividends, repurchase stock, service debt and make investments for future growth. It should not be inferred that the entire free cash flow amount is available for discretionary expenditures.

The non-GAAP financial measures presented in this release have limitations as analytical tools and should not be considered in isolation or as a substitute for an analysis of our results calculated in accordance with GAAP. In addition, because not all companies use identical calculations, the Company’s presentation of non-GAAP financial measures in this release may not be comparable to similarly titled measures disclosed by other companies, including companies in the same industry as International Paper.

Management believes non-GAAP financial measures, when used in conjunction with information presented in accordance with GAAP, can facilitate a better understanding of the impact of various factors and trends on the Company’s financial results.  Management also uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company’s performance. Investors are cautioned to not place undue reliance on any non-GAAP financial measures used in this release. 

 

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SOURCE International Paper