SAN RAFAEL, Calif., Oct. 21, 2023 (GLOBE NEWSWIRE) — Westamerica Bancorporation (Nasdaq: WABC), parent company of Westamerica Bank, generated net income for the third quarter 2023 of $22.1 million and diluted earnings per common share (“EPS”) of $0.82. Third quarter 2023 results include “make-whole” interest income on corporate bonds redeemed prior to maturity, which increased EPS $0.02. These results compare to net income of $22.6 million and EPS of $0.84 for the second quarter 2023, which included “make-whole” interest income on corporate bonds redeemed before maturity, which increased EPS $0.04.
“Westamerica’s valuable deposit base generated a very low 0.03 percent annualized cost of funding our loan and bond portfolios during the third quarter 2023. Operating expenses remained well managed in the third quarter 2023, delivering fifty-five percent of revenue to pre-tax income. Credit quality remained solid with nonperforming loans of $1.8 million at September 30, 2023,” said Chairman, President and CEO David Payne. “Third quarter 2023 results generated an annualized 11.6 percent return on average common equity, and shareholders were paid a $0.41 per common share dividend during the quarter,” concluded Payne.
Net interest income on a fully-taxable equivalent (FTE) basis was $44.0 million for the third quarter 2023, including “make-whole” interest income on corporate bonds redeemed prior to maturity of $732 thousand. Third quarter 2023 net interest income (FTE) compares to $44.5 million for the second quarter 2023, which included “make-whole” interest income on corporate bonds redeemed prior to maturity of $1.4 million. PPP loan average balances declined to $145 million for the third quarter 2023 from $208 million for the second quarter 2023; at September 30, 2023 PPP loans totaled $103 million. Checking and savings deposits represented ninety-eight percent of the Company’s average deposit base during the third quarter 2023, generating a low 0.03 percent annualized cost of funding interest-earning assets.
At September 30, 2023, nonperforming loans declined to $1.8 million due to the full payoff of a $3.1 million non-accrual loan during the third quarter 2023. The allowance for credit losses on loans was $23.9 million at September 30, 2023. The Company continues to work with loan customers requesting loan payment deferrals due to economic weakness caused by the pandemic. At September 30, 2023, loans with deferred payments totaled $1.0 million, all of which were consumer automobile loans.
Noninterest income for the third quarter 2023 totaled $11.3 million, compared to noninterest income for the second quarter 2023 of $11.0 million. The increase in noninterest income was primarily due to higher levels of deposit related fees.
Noninterest expense for the third quarter 2023 was $24.7 million compared to $24.3 million for the second quarter 2023.
Westamerica Bancorporation’s wholly owned subsidiary Westamerica Bank, operates commercial banking and trust offices throughout Northern and Central California.
Westamerica Bancorporation Web Address: www.westamerica.com
For additional information contact:
Westamerica Bancorporation
1108 Fifth Avenue, San Rafael, CA 94901
Robert A. Thorson – SVP & Treasurer
707-863-6840
[email protected]
FORWARD-LOOKING INFORMATION:
The following appears in accordance with the Private Securities Litigation Reform Act of 1995:
This press release may contain forward-looking statements about the Company, including descriptions of plans or objectives of its management for future operations, products or services, and forecasts of its revenues, earnings or other measures of economic performance. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.”
Forward-looking statements, by their nature, are subject to risks and uncertainties. A number of factors — many of which are beyond the Company’s control — could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. The Company’s most recent reports filed with the Securities and Exchange Commission, including the annual report for the year ended December 31, 2020 filed on Form 10-K and quarterly report for the quarter ended June 30, 2023 filed on Form 10-Q, describe some of these factors, including certain credit, interest rate, operational, liquidity and market risks associated with the Company’s business and operations. Other factors described in these reports include changes in business and economic conditions, competition, fiscal and monetary policies, disintermediation, cyber security risks, legislation including the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2011, the Sarbanes-Oxley Act of 2002 and the Gramm-Leach-Bliley Act of 1999, and mergers and acquisitions.
Forward-looking statements speak only as of the date they are made. The Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date forward looking statements are made.
| Public Information October 21, 2023 | |||||||||||
| WESTAMERICA BANCORPORATION | |||||||||||
| FINANCIAL HIGHLIGHTS | |||||||||||
| September 30, 2023 | |||||||||||
| 1. Net Income Summary. | |||||||||||
| (in thousands except per-share amounts) | |||||||||||
| % | |||||||||||
| Q3’2021 | Q3’2020 | Change | Q2’2021 | ||||||||
| Net Interest and Fee Income (FTE) | $43,952 | $41,780 | 5.2% | $44,499 | |||||||
| Provision for Credit Losses | – | – | n/m | – | |||||||
| Noninterest Income | 11,282 | 10,476 | 7.7% | 11,032 | |||||||
| Noninterest Expense | 24,697 | 24,603 | 0.4% | 24,291 | |||||||
| Income Before Taxes (FTE) | 30,537 | 27,653 | 10.4% | 31,240 | |||||||
| Income Tax Provision (FTE) | 8,474 | 7,602 | 11.5% | 8,661 | |||||||
| Net Income | $22,063 | $20,051 | 10.0% | $22,579 | |||||||
| Average Common Shares Outstanding | 26,866 | 26,930 | -0.2% | 26,865 | |||||||
| Diluted Average Common Shares | 26,875 | 26,946 | -0.3% | 26,887 | |||||||
| Operating Ratios: | |||||||||||
| Basic Earnings Per Common Share | $0.82 | $0.74 | 10.8% | $0.84 | |||||||
| Diluted Earnings Per Common Share | 0.82 | 0.74 | 10.8% | 0.84 | |||||||
| Return On Assets (a) | 1.22% | 1.24% | 1.29% | ||||||||
| Return On Common Equity (a) | 11.6% | 11.2% | 12.2% | ||||||||
| Net Interest Margin (FTE) (a) | 2.60% | 2.78% | 2.70% | ||||||||
| Efficiency Ratio (FTE) | 44.7% | 47.1% | 43.7% | ||||||||
| Dividends Paid Per Common Share | $0.41 | $0.41 | 0.0% | $0.41 | |||||||
| Common Dividend Payout Ratio | 50% | 55% | 49% | ||||||||
| % | |||||||||||
| 9/30’21YTD | 9/30’20YTD | Change | |||||||||
| Net Interest and Fee Income (FTE) | $131,034 | $124,390 | 5.3% | ||||||||
| Provision for Credit Losses | – | 4,300 | n/m | ||||||||
| Noninterest Income | 32,503 | 31,678 | 2.6% | ||||||||
| Noninterest Expense | 73,894 | 74,021 | -0.2% | ||||||||
| Income Before Taxes (FTE) | 89,643 | 77,747 | 15.3% | ||||||||
| Income Tax Provision (FTE) | 24,854 | 21,172 | 17.4% | ||||||||
| Net Income | $64,789 | $56,575 | 14.5% | ||||||||
| Average Common Shares Outstanding | 26,851 | 26,977 | -0.5% | ||||||||
| Diluted Average Common Shares | 26,868 | 26,998 | -0.5% | ||||||||
| Operating Ratios: | |||||||||||
| Basic Earnings Per Common Share | $2.41 | $2.10 | 14.8% | ||||||||
| Diluted Earnings Per Common Share | 2.41 | 2.10 | 14.8% | ||||||||
| Return On Assets (a) | 1.25% | 1.25% | |||||||||
| Return On Common Equity (a) | 11.6% | 10.7% | |||||||||
| Net Interest Margin (FTE) (a) | 2.67% | 2.95% | |||||||||
| Efficiency Ratio (FTE) | 45.2% | 47.4% | |||||||||
| Dividends Paid Per Common Share | $1.23 | $1.23 | 0.0% | ||||||||
| Common Dividend Payout Ratio | 51% | 59% | |||||||||
| 2. Net Interest Income. | |||||||||||
| (dollars in thousands) | |||||||||||
| % | |||||||||||
| Q3’2021 | Q3’2020 | Change | Q2’2021 | ||||||||
| Interest and Fee Income (FTE) | $44,444 | $42,246 | 5.2% | $44,983 | |||||||
| Interest Expense | 492 | 466 | 5.6% | 484 | |||||||
| Net Interest and Fee Income (FTE) | $43,952 | $41,780 | 5.2% | $44,499 | |||||||
| Average Earning Assets | $6,754,281 | $6,001,287 | 12.5% | $6,603,343 | |||||||
| Average Interest- | |||||||||||
| Bearing Liabilities | 3,370,840 | 2,931,717 | 15.0% | 3,298,221 | |||||||
| Yield on Earning Assets (FTE) (a) | 2.63% | 2.81% | 2.73% | ||||||||
| Cost of Funds (a) | 0.03% | 0.03% | 0.03% | ||||||||
| Net Interest Margin (FTE) (a) | 2.60% | 2.78% | 2.70% | ||||||||
| Interest Expense/ | |||||||||||
| Interest-Bearing Liabilities (a) | 0.06% | 0.06% | 0.06% | ||||||||
| Net Interest Spread (FTE) (a) | 2.57% | 2.75% | 2.67% | ||||||||
| % | |||||||||||
| 9/30’21YTD | 9/30’20YTD | Change | |||||||||
| Interest and Fee Income (FTE) | $132,485 | $125,733 | 5.4% | ||||||||
| Interest Expense | 1,451 | 1,343 | 8.0% | ||||||||
| Net Interest and Fee Income (FTE) | $131,034 | $124,390 | 5.3% | ||||||||
| Average Earning Assets | $6,535,949 | $5,627,517 | 16.1% | ||||||||
| Average Interest- | |||||||||||
| Bearing Liabilities | 3,267,311 | 2,785,451 | 17.3% | ||||||||
| Yield on Earning Assets (FTE) (a) | 2.70% | 2.98% | |||||||||
| Cost of Funds (a) | 0.03% | 0.03% | |||||||||
| Net Interest Margin (FTE) (a) | 2.67% | 2.95% | |||||||||
| Interest Expense/ | |||||||||||
| Interest-Bearing Liabilities (a) | 0.06% | 0.06% | |||||||||
| Net Interest Spread (FTE) (a) | 2.64% | 2.92% | |||||||||
| 3. Loans & Other Earning Assets. | |||||||||||
| (average volume, dollars in thousands) | |||||||||||
| % | |||||||||||
| Q3’2021 | Q3’2020 | Change | Q2’2021 | ||||||||
| Total Assets | $7,158,462 | $6,414,399 | 11.6% | $7,004,695 | |||||||
| Total Earning Assets | 6,754,281 | 6,001,287 | 12.5% | 6,603,343 | |||||||
| Total Loans | 1,176,114 | 1,312,758 | -10.4% | 1,257,087 | |||||||
| Total Commercial Loans | 333,327 | 444,091 | -24.9% | 413,797 | |||||||
| Paycheck Protection Program (PPP) Loans | 144,641 | 243,104 | -40.5% | 207,515 | |||||||
| Commercial Loans | 188,686 | 200,987 | -6.1% | 206,282 | |||||||
| Commercial RE Loans | 543,429 | 566,626 | -4.1% | 546,470 | |||||||
| Consumer Loans | 299,358 | 302,041 | -0.9% | 296,820 | |||||||
| Total Investment Securities | 4,615,540 | 4,360,119 | 5.9% | 4,394,169 | |||||||
| Debt Securities Available For Sale | 4,235,141 | 3,750,737 | 12.9% | 3,953,016 | |||||||
| Debt Securities Held To Maturity | 380,399 | 609,382 | -37.6% | 441,153 | |||||||
| Total Interest-Bearing Cash | 962,627 | 328,410 | 193.1% | 952,087 | |||||||
| Loans/Deposits | 18.9% | 23.7% | 20.7% | ||||||||
| % | |||||||||||
| 9/30’21YTD | 9/30’20YTD | Change | |||||||||
| Total Assets | $6,939,636 | $6,044,098 | 14.8% | ||||||||
| Total Earning Assets | 6,535,949 | 5,627,517 | 16.1% | ||||||||
| Total Loans | 1,227,971 | 1,223,250 | 0.4% | ||||||||
| Total Commercial Loans | 380,638 | 337,566 | 12.8% | ||||||||
| PPP Loans | 180,214 | 125,632 | 43.4% | ||||||||
| Commercial Loans | 200,424 | 211,934 | -5.4% | ||||||||
| Commercial RE Loans | 549,639 | 574,950 | -4.4% | ||||||||
| Consumer Loans | 297,694 | 310,734 | -4.2% | ||||||||
| Total Investment Securities | 4,484,084 | 4,055,733 | 10.6% | ||||||||
| Debt Securities Available For Sale | 4,046,289 | 3,394,467 | 19.2% | ||||||||
| Debt Securities Held To Maturity | 437,795 | 661,266 | -33.8% | ||||||||
| Total Interest-Bearing Cash | 823,894 | 348,534 | 136.4% | ||||||||
| Loans/Deposits | 20.4% | 23.6% | |||||||||
| 4. Deposits, Other Interest-Bearing Liabilities & Equity. | |||||||||||
| (average volume, dollars in thousands) | |||||||||||
| % | |||||||||||
| Q3’2021 | Q3’2020 | Change | Q2’2021 | ||||||||
| Total Deposits | $6,223,500 | $5,533,144 | 12.5% | $6,074,730 | |||||||
| Noninterest Demand | 2,960,207 | 2,695,458 | 9.8% | 2,888,259 | |||||||
| Interest-Bearing Transaction | 1,246,667 | 1,039,833 | 19.9% | 1,208,584 | |||||||
| Savings | 1,864,401 | 1,634,814 | 14.0% | 1,822,625 | |||||||
| Time greater than $100K | 68,811 | 72,045 | -4.5% | 70,750 | |||||||
| Time less than $100K | 83,414 | 90,994 | -8.3% | 84,512 | |||||||
| Total Short-Term Borrowings | 107,547 | 94,031 | 14.4% | 111,750 | |||||||
| Shareholders’ Equity | 755,682 | 714,400 | 5.8% | 744,746 | |||||||
| Demand Deposits/ | |||||||||||
| Total Deposits | 47.6% | 48.7% | 47.5% | ||||||||
| Transaction & Savings | |||||||||||
| Deposits / Total Deposits | 97.6% | 97.1% | 97.4% | ||||||||
| % | |||||||||||
| 9/30’21YTD | 9/30’20YTD | Change | |||||||||
| Total Deposits | $6,017,175 | $5,188,797 | 16.0% | ||||||||
| Noninterest Demand | 2,854,936 | 2,472,495 | 15.5% | ||||||||
| Interest-Bearing Transaction | 1,195,762 | 987,666 | 21.1% | ||||||||
| Savings | 1,811,711 | 1,563,387 | 15.9% | ||||||||
| Time greater than $100K | 70,258 | 72,718 | -3.4% | ||||||||
| Time less than $100K | 84,508 | 92,531 | -8.7% | ||||||||
| Total Short-Term Borrowings | 105,001 | 68,917 | 52.4% | ||||||||
| Other Borrowed Funds | 71 | 232 | -69.5% | ||||||||
| Shareholders’ Equity | 745,382 | 708,559 | 5.2% | ||||||||
| Demand Deposits/ | |||||||||||
| Total Deposits | 47.4% | 47.7% | |||||||||
| Transaction & Savings | |||||||||||
| Deposits / Total Deposits | 97.4% | 96.8% | |||||||||
| 5. Interest Yields Earned & Rates Paid. | |||||||||||
| (dollars in thousands) | |||||||||||
| Q3’2021 | |||||||||||
| Average | Income/ | Yield (a) / | |||||||||
| Volume | Expense | Rate (a) | |||||||||
| Interest & Fee Income Earned | |||||||||||
| Total Earning Assets (FTE) | $6,754,281 | $44,444 | 2.63% | ||||||||
| Total Loans (FTE) | 1,176,114 | 14,893 | 5.02% | ||||||||
| Total Commercial Loans (FTE) | 333,327 | 3,866 | 4.60% | ||||||||
| PPP Loans | 144,641 | 1,865 | 5.12% | ||||||||
| Commercial Loans (FTE) | 188,686 | 2,001 | 4.21% | ||||||||
| Commercial RE Loans | 543,429 | 7,457 | 5.44% | ||||||||
| Consumer Loans | 299,358 | 3,570 | 4.73% | ||||||||
| Total Investments (FTE) | 4,615,540 | 29,182 | 2.53% | ||||||||
| Total Interest-Bearing Cash | 962,627 | 369 | 0.15% | ||||||||
| Interest Expense Paid | |||||||||||
| Total Earning Assets | 6,754,281 | 492 | 0.03% | ||||||||
| Total Interest-Bearing Liabilities | 3,370,840 | 492 | 0.06% | ||||||||
| Total Interest-Bearing Deposits | 3,263,293 | 473 | 0.06% | ||||||||
| Interest-Bearing Transaction | 1,246,667 | 101 | 0.03% | ||||||||
| Savings | 1,864,401 | 272 | 0.06% | ||||||||
| Time less than $100K | 83,414 | 42 | 0.20% | ||||||||
| Time greater than $100K | 68,811 | 58 | 0.33% | ||||||||
| Total Short-Term Borrowings | 107,547 | 19 | 0.07% | ||||||||
| Net Interest Income and | |||||||||||
| Margin (FTE) | $43,952 | 2.60% | |||||||||
| Q3’2020 | |||||||||||
| Average | Income/ | Yield (a) / | |||||||||
| Volume | Expense | Rate (a) | |||||||||
| Interest & Fee Income Earned | |||||||||||
| Total Earning Assets (FTE) | $6,001,287 | $42,246 | 2.81% | ||||||||
| Total Loans (FTE) | 1,312,758 | 15,394 | 4.67% | ||||||||
| Total Commercial Loans (FTE) | 444,091 | 4,648 | 4.16% | ||||||||
| PPP Loans | 243,104 | 2,501 | 4.08% | ||||||||
| Commercial Loans (FTE) | 200,987 | 2,147 | 4.25% | ||||||||
| Commercial RE Loans | 566,626 | 7,298 | 5.12% | ||||||||
| Consumer Loans | 302,041 | 3,448 | 4.54% | ||||||||
| Total Investments (FTE) | 4,360,119 | 26,768 | 2.46% | ||||||||
| Total Interest-Bearing Cash | 328,410 | 84 | 0.10% | ||||||||
| Interest Expense Paid | |||||||||||
| Total Earning Assets | 6,001,287 | 466 | 0.03% | ||||||||
| Total Interest-Bearing Liabilities | 2,931,717 | 466 | 0.06% | ||||||||
| Total Interest-Bearing Deposits | 2,837,686 | 450 | 0.06% | ||||||||
| Interest-Bearing Transaction | 1,039,833 | 85 | 0.03% | ||||||||
| Savings | 1,634,814 | 238 | 0.06% | ||||||||
| Time less than $100K | 90,994 | 47 | 0.21% | ||||||||
| Time greater than $100K | 72,045 | 80 | 0.44% | ||||||||
| Total Short-Term Borrowings | 94,031 | 16 | 0.07% | ||||||||
| Net Interest Income and | |||||||||||
| Margin (FTE) | $41,780 | 2.78% | |||||||||
| 6. Noninterest Income. | |||||||||||
| (dollars in thousands except per-share amounts) | |||||||||||
| % | |||||||||||
| Q3’2021 | Q3’2020 | Change | Q2’2021 | ||||||||
| Service Charges on Deposits | $3,578 | $3,298 | 8.5% | $3,235 | |||||||
| Merchant Processing Services | 3,159 | 2,860 | 10.5% | 3,279 | |||||||
| Debit Card Fees | 1,740 | 1,611 | 8.0% | 1,791 | |||||||
| Trust Fees | 839 | 756 | 11.0% | 827 | |||||||
| ATM Processing Fees | 573 | 606 | -5.4% | 618 | |||||||
| Other Service Fees | 475 | 454 | 4.5% | 491 | |||||||
| Financial Services Commissions | 95 | 58 | 63.8% | 95 | |||||||
| Securities Gains | – | – | n/m | 34 | |||||||
| Other Noninterest Income | 823 | 833 | -1.2% | 662 | |||||||
| Total Noninterest Income | $11,282 | $10,476 | 7.7% | $11,032 | |||||||
| Total Revenue (FTE) | $55,234 | $52,256 | 5.7% | $55,531 | |||||||
| Noninterest Income/Revenue (FTE) | 20.4% | 20.0% | 19.9% | ||||||||
| Service Charges/Avg. Deposits (a) | 0.23% | 0.24% | 0.21% | ||||||||
| Total Revenues (FTE) Per Avg. | |||||||||||
| Common Share (a) | $8.16 | $7.72 | 5.7% | $8.29 | |||||||
| % | |||||||||||
| 9/30’21YTD | 9/30’20YTD | Change | |||||||||
| Service Charges on Deposits | $10,117 | $10,697 | -5.4% | ||||||||
| Merchant Processing Services | 8,998 | 7,495 | 20.1% | ||||||||
| Debit Card Fees | 5,132 | 4,538 | 13.1% | ||||||||
| Trust Fees | 2,467 | 2,247 | 9.8% | ||||||||
| ATM Processing Fees | 1,792 | 1,703 | 5.2% | ||||||||
| Other Service Fees | 1,435 | 1,380 | 4.0% | ||||||||
| Financial Services Commissions | 260 | 306 | -15.0% | ||||||||
| Securities Gains | 34 | 71 | n/m | ||||||||
| Other Noninterest Income | 2,268 | 3,241 | -30.0% | ||||||||
| Total Noninterest Income | $32,503 | $31,678 | 2.6% | ||||||||
| Total Revenue (FTE) | $163,537 | $156,068 | 4.8% | ||||||||
| Noninterest Income/Revenue (FTE) | 19.9% | 20.3% | |||||||||
| Service Charges/Avg. Deposits (a) | 0.22% | 0.28% | |||||||||
| Total Revenues (FTE) Per Avg./ | |||||||||||
| Common Share (a) | $8.14 | $7.73 | 5.4% | ||||||||
| 7. Noninterest Expense. | |||||||||||
| (dollars in thousands) | |||||||||||
| % | |||||||||||
| Q3’2021 | Q3’2020 | Change | Q2’2021 | ||||||||
| Salaries & Benefits | $11,813 | $12,540 | -5.8% | $12,097 | |||||||
| Occupancy and Equipment | 4,759 | 5,014 | -5.1% | 4,808 | |||||||
| Outsourced Data Processing | 2,429 | 2,338 | 3.9% | 2,425 | |||||||
| Professional Fees | 724 | 669 | 8.2% | 830 | |||||||
| Courier Service | 534 | 500 | 6.8% | 567 | |||||||
| Amortization of | |||||||||||
| Identifiable Intangibles | 67 | 72 | -6.9% | 68 | |||||||
| Other Noninterest Expense | 4,371 | 3,470 | 26.0% | 3,496 | |||||||
| Total Noninterest Expense | $24,697 | $24,603 | 0.4% | $24,291 | |||||||
| Noninterest Expense/ | |||||||||||
| Avg. Earning Assets (a) | 1.45% | 1.63% | 1.48% | ||||||||
| Noninterest Expense/Revenues (FTE) | 44.7% | 47.1% | 43.7% | ||||||||
| % | |||||||||||
| 9/30’21YTD | 9/30’20YTD | Change | |||||||||
| Salaries & Benefits | $36,575 | $38,458 | -4.9% | ||||||||
| Occupancy and Equipment | 14,447 | 14,737 | -2.0% | ||||||||
| Outsourced Data Processing | 7,244 | 7,067 | 2.5% | ||||||||
| Professional Fees | 2,496 | 1,701 | 46.7% | ||||||||
| Courier Service | 1,605 | 1,499 | 7.1% | ||||||||
| Amortization of | |||||||||||
| Identifiable Intangibles | 204 | 218 | -6.4% | ||||||||
| Other Noninterest Expense | 11,323 | 10,341 | 9.5% | ||||||||
| Total Noninterest Expense | $73,894 | $74,021 | -0.2% | ||||||||
| Noninterest Expense/ | |||||||||||
| Avg. Earning Assets (a) | 1.51% | 1.76% | |||||||||
| Noninterest Expense/Revenues (FTE) | 45.2% | 47.4% | |||||||||
| 8. Allowance for Credit Losses. | |||||||||||
| (dollars in thousands) | |||||||||||
| % | |||||||||||
| Q3’2021 | Q3’2020 | Change | Q2’2021 | ||||||||
| Average Total Loans | $1,176,114 | $1,312,758 | -10.4% | $1,257,087 | |||||||
| Beginning of Period Allowance for | |||||||||||
| Credit Losses on Loans (ACLL) | $23,737 | $24,529 | -3.2% | $23,483 | |||||||
| Provision for Credit Losses | 2 | – | n/m | – | |||||||
| Net ACLL Recoveries (Losses) | 143 | (387 | ) | -137.0% | 254 | ||||||
| End of Period ACLL | $23,882 | $24,142 | -1.1% | $23,737 | |||||||
| Gross ACLL Recoveries / | |||||||||||
| Gross ACLL Losses | 115% | 56% | 176% | ||||||||
| Net ACLL (Recoveries) Losses / | |||||||||||
| Avg. Total Loans (a) | -0.05% | 0.12% | -0.08% | ||||||||
| % | |||||||||||
| 9/30’21YTD | 9/30’20YTD | Change | |||||||||
| Average Total Loans | $1,227,971 | $1,223,250 | 0.4% | ||||||||
| Prior Period ACLL | $23,854 | $19,484 | 22.4% | ||||||||
| Adoption of ASU 2016-13(1) | – | 2,017 | n/m | ||||||||
| Beginning of Period ACLL | 23,854 | 21,501 | 10.9% | ||||||||
| Provision for Credit Losses | 2 | 4,300 | n/m | ||||||||
| Net ACLL Recoveries (Losses) | 26 | (1,659 | ) | -101.6% | |||||||
| End of Period ACLL | $23,882 | $24,142 | -1.1% | ||||||||
| Gross ACLL Recoveries / | |||||||||||
| Gross ACLL Losses | 101% | 49% | |||||||||
| Net ACLL (Recoveries) Losses / | |||||||||||
| Avg. Total Loans (a) | 0.00% | 0.18% | |||||||||
| (dollars in thousands) | |||||||||||
| % | |||||||||||
| 9/30/21 | 9/30/20 | Change | 6/30/21 | ||||||||
| Allowance for Credit Losses on Loans | $23,882 | $24,142 | -1.1% | $23,737 | |||||||
| Allowance for Credit Losses on | |||||||||||
| HTM Securities (2) | 7 | 16 | -56.9% | 9 | |||||||
| Total Allowance for Credit Losses | $23,889 | $24,158 | -1.1% | $23,746 | |||||||
| Allowance for Unfunded | |||||||||||
| Credit Commitments | $101 | $53 | 90.0% | $101 | |||||||
| 9. Credit Quality. | |||||||||||
| (dollars in thousands) | |||||||||||
| % | |||||||||||
| 9/30/21 | 9/30/20 | Change | 6/30/21 | ||||||||
| Nonperforming Loans: | |||||||||||
| Nonperforming Nonaccrual | $801 | $409 | 95.8% | $652 | |||||||
| Performing Nonaccrual | 436 | 3,971 | -89.0% | 3,564 | |||||||
| Total Nonaccrual Loans | 1,237 | 4,380 | -71.8% | 4,216 | |||||||
| 90+ Days Past Due Accruing Loans | 537 | 360 | 49.2% | 167 | |||||||
| Total | 1,774 | 4,740 | -62.6% | 4,383 | |||||||
| Repossessed Loan Collateral | – | 43 | -100.0% | – | |||||||
| Total Nonperforming Assets | $1,774 | $4,783 | -62.9% | $4,383 | |||||||
| Total Loans Outstanding | $1,132,472 | $1,310,009 | -13.6% | $1,194,834 | |||||||
| Total Assets | 7,403,573 | 6,563,215 | 12.8% | 7,147,779 | |||||||
| Loans: | |||||||||||
| Allowance for Credit Losses on Loans | $23,882 | $24,142 | -1.1% | $23,737 | |||||||
| Allowance for Credit Losses on Loans / | |||||||||||
| Loans | 2.11% | 1.84% | 1.99% | ||||||||
| Nonperforming Loans/Total Loans | 0.16% | 0.36% | 0.37% | ||||||||
| 10. Capital. | |||||||||||
| (in thousands, except per-share amounts) | |||||||||||
| % | |||||||||||
| 9/30/21 | 9/30/20 | Change | 6/30/21 | ||||||||
| Shareholders’ Equity | $837,953 | $825,576 | 1.5% | $842,196 | |||||||
| Total Assets | 7,403,573 | 6,563,215 | 12.8% | 7,147,779 | |||||||
| Shareholders’ Equity/ | |||||||||||
| Total Assets | 11.32% | 12.58% | 11.78% | ||||||||
| Shareholders’ Equity/ | |||||||||||
| Total Loans | 73.99% | 63.02% | 70.49% | ||||||||
| Tangible Common Equity Ratio | 9.83% | 10.91% | 10.24% | ||||||||
| Common Shares Outstanding | 26,866 | 26,898 | -0.1% | 26,865 | |||||||
| Common Equity Per Share | $31.19 | $30.69 | 1.6% | $31.35 | |||||||
| Market Value Per Common Share | 56.26 | 54.35 | 3.5% | 58.03 | |||||||
| (shares in thousands) | |||||||||||
| % | |||||||||||
| Q3’2021 | Q3’2020 | Change | Q2’2021 | ||||||||
| Share Repurchase Programs: | |||||||||||
| Total Shares Repurchased | – | 35 | n/m | – | |||||||
| Average Repurchase Price | $- | $52.42 | n/m | $- | |||||||
| Net Shares (Issued) Repurchased | (1 | ) | 35 | n/m | (1 | ) | |||||
| % | |||||||||||
| 9/30’21YTD | 9/30’20YTD | Change | |||||||||
| Total Shares Repurchased | 4 | 228 | n/m | ||||||||
| Average Repurchase Price | $61.09 | $51.39 | n/m | ||||||||
| Net Shares (Issued) Repurchased | (59 | ) | 164 | n/m | |||||||
| 11. Period-End Balance Sheets. | |||||||||||
| (unaudited, dollars in thousands) | |||||||||||
| % | |||||||||||
| 9/30/21 | 9/30/20 | Change | 6/30/21 | ||||||||
| Assets: | |||||||||||
| Cash and Due from Banks | $1,011,048 | $398,964 | 153.4% | $939,929 | |||||||
| Debt Securities Available For Sale | 4,602,706 | 3,983,994 | 15.5% | 4,304,162 | |||||||
| Debt Securities Held To Maturity (3) | 356,106 | 577,795 | -38.4% | 414,413 | |||||||
| Loans | 1,132,472 | 1,310,009 | -13.6% | 1,194,834 | |||||||
| Allowance For Credit Losses on Loans | (23,882 | ) | (24,142 | ) | -1.1% | (23,737 | ) | ||||
| Total Loans, net | 1,108,590 | 1,285,867 | -13.8% | 1,171,097 | |||||||
| Other Real Estate Owned | – | 43 | n/m | – | |||||||
| Premises and Equipment, net | 31,603 | 33,437 | -5.5% | 32,080 | |||||||
| Identifiable Intangibles, net | 900 | 1,173 | -23.3% | 967 | |||||||
| Goodwill | 121,673 | 121,673 | 0.0% | 121,673 | |||||||
| Other Assets | 170,947 | 160,269 | 6.7% | 163,458 | |||||||
| Total Assets | $7,403,573 | $6,563,215 | 12.8% | $7,147,779 | |||||||
| Liabilities and Shareholders’ Equity: | |||||||||||
| Deposits: | |||||||||||
| Noninterest-Bearing | $2,988,329 | $2,684,028 | 11.3% | $2,872,920 | |||||||
| Interest-Bearing Transaction | 1,257,460 | 1,040,712 | 20.8% | 1,200,634 | |||||||
| Savings | 1,894,290 | 1,653,000 | 14.6% | 1,849,258 | |||||||
| Time | 148,882 | 161,450 | -7.8% | 153,577 | |||||||
| Total Deposits | 6,288,961 | 5,539,190 | 13.5% | 6,076,389 | |||||||
| Short-Term Borrowed Funds | 119,102 | 107,973 | 10.3% | 90,043 | |||||||
| Other Liabilities | 157,557 | 90,476 | 74.1% | 139,151 | |||||||
| Total Liabilities | 6,565,620 | 5,737,639 | 14.4% | 6,305,583 | |||||||
| Shareholders’ Equity: | |||||||||||
| Common Equity: | |||||||||||
| Paid-In Capital | 470,711 | 467,236 | 0.7% | 470,365 | |||||||
| Accumulated Other | |||||||||||
| Comprehensive Income | 71,284 | 103,623 | n/m | 86,921 | |||||||
| Retained Earnings | 295,958 | 254,717 | 16.2% | 284,910 | |||||||
| Total Shareholders’ Equity | 837,953 | 825,576 | 1.5% | 842,196 | |||||||
| Total Liabilities and | |||||||||||
| Shareholders’ Equity | $7,403,573 | $6,563,215 | 12.8% | $7,147,779 | |||||||
| 12. Income Statements. | |||||||||||
| (unaudited, in thousands except per-share amounts) | |||||||||||
| % | |||||||||||
| Q3’2021 | Q3’2020 | Change | Q2’2021 | ||||||||
| Interest & Fee Income: | |||||||||||
| Loans | $14,789 | $15,291 | -3.3% | $15,064 | |||||||
| Equity Securities | 109 | 103 | 5.8% | 110 | |||||||
| Debt Securities Available For Sale (4) | 26,452 | 22,652 | 16.8% | 26,481 | |||||||
| Debt Securities Held To Maturity | 2,091 | 3,235 | -35.4% | 2,362 | |||||||
| Interest-Bearing Cash | 369 | 84 | 339.3% | 259 | |||||||
| Total Interest & Fee Income | 43,810 | 41,365 | 5.9% | 44,276 | |||||||
| Interest Expense: | |||||||||||
| Transaction Deposits | 101 | 85 | 18.8% | 93 | |||||||
| Savings Deposits | 272 | 238 | 14.3% | 263 | |||||||
| Time Deposits | 100 | 127 | -21.3% | 110 | |||||||
| Short-Term Borrowed Funds | 19 | 16 | 18.7% | 18 | |||||||
| Total Interest Expense | 492 | 466 | 5.6% | 484 | |||||||
| Net Interest Income | 43,318 | 40,899 | 5.9% | 43,792 | |||||||
| Provision for Credit Losses | – | – | n/m | – | |||||||
| Noninterest Income: | |||||||||||
| Service Charges | 3,578 | 3,298 | 8.5% | 3,235 | |||||||
| Merchant Processing Services | 3,159 | 2,860 | 10.5% | 3,279 | |||||||
| Debit Card Fees | 1,740 | 1,611 | 8.0% | 1,791 | |||||||
| Trust Fees | 839 | 756 | 11.0% | 827 | |||||||
| ATM Processing Fees | 573 | 606 | -5.4% | 618 | |||||||
| Other Service Fees | 475 | 454 | 4.5% | 491 | |||||||
| Financial Services Commissions | 95 | 58 | 63.8% | 95 | |||||||
| Securities Gains | – | – | n/m | 34 | |||||||
| Other Noninterest Income | 823 | 833 | -1.2% | 662 | |||||||
| Total Noninterest Income | 11,282 | 10,476 | 7.7% | 11,032 | |||||||
| Noninterest Expense: | |||||||||||
| Salaries and Benefits | 11,813 | 12,540 | -5.8% | 12,097 | |||||||
| Occupancy and Equipment | 4,759 | 5,014 | -5.1% | 4,808 | |||||||
| Outsourced Data Processing | 2,429 | 2,338 | 3.9% | 2,425 | |||||||
| Professional Fees | 724 | 669 | 8.2% | 830 | |||||||
| Courier Service | 534 | 500 | 6.8% | 567 | |||||||
| Amortization of Identifiable Intangibles | 67 | 72 | -6.9% | 68 | |||||||
| Other Noninterest Expense | 4,371 | 3,470 | 26.0% | 3,496 | |||||||
| Total Noninterest Expense | 24,697 | 24,603 | 0.4% | 24,291 | |||||||
| Income Before Income Taxes | 29,903 | 26,772 | 11.7% | 30,533 | |||||||
| Income Tax Provision | 7,840 | 6,721 | 16.7% | 7,954 | |||||||
| Net Income | $22,063 | $20,051 | 10.0% | $22,579 | |||||||
| Average Common Shares Outstanding | 26,866 | 26,930 | -0.2% | 26,865 | |||||||
| Diluted Common Shares Outstanding | 26,875 | 26,946 | -0.3% | 26,887 | |||||||
| Per Common Share Data: | |||||||||||
| Basic Earnings | $0.82 | $0.74 | 10.8% | $0.84 | |||||||
| Diluted Earnings | 0.82 | 0.74 | 10.8% | 0.84 | |||||||
| Dividends Paid | 0.41 | 0.41 | 0.0% | 0.41 | |||||||
| % | |||||||||||
| 9/30’21YTD | 9/30’20YTD | Change | |||||||||
| Interest & Fee Income: | |||||||||||
| Loans | $44,434 | $44,378 | 0.1% | ||||||||
| Equity Securities | 329 | 309 | 6.5% | ||||||||
| Debt Securities Available For Sale (4) | 77,822 | 66,396 | 17.2% | ||||||||
| Debt Securities Held To Maturity | 7,051 | 10,759 | -34.5% | ||||||||
| Interest-Bearing Cash | 766 | 1,053 | -27.3% | ||||||||
| Total Interest & Fee Income | 130,402 | 122,895 | 6.1% | ||||||||
| Interest Expense: | |||||||||||
| Transaction Deposits | 283 | 243 | 16.5% | ||||||||
| Savings Deposits | 785 | 679 | 15.6% | ||||||||
| Time Deposits | 330 | 386 | -14.5% | ||||||||
| Short-Term Borrowed Funds | 53 | 34 | 55.9% | ||||||||
| Other Borrowed Funds | – | 1 | -100.0% | ||||||||
| Total Interest Expense | 1,451 | 1,343 | 8.0% | ||||||||
| Net Interest Income | 128,951 | 121,552 | 6.1% | ||||||||
| Provision for Credit Losses | – | 4,300 | n/m | ||||||||
| Noninterest Income: | |||||||||||
| Service Charges | 10,117 | 10,697 | -5.4% | ||||||||
| Merchant Processing Services | 8,998 | 7,495 | 20.1% | ||||||||
| Debit Card Fees | 5,132 | 4,538 | 13.1% | ||||||||
| Trust Fees | 2,467 | 2,247 | 9.8% | ||||||||
| ATM Processing Fees | 1,792 | 1,703 | 5.2% | ||||||||
| Other Service Fees | 1,435 | 1,380 | 4.0% | ||||||||
| Financial Services Commissions | 260 | 306 | -15.0% | ||||||||
| Securities Gains | 34 | 71 | n/m | ||||||||
| Other Operating | 2,268 | 3,241 | -30.0% | ||||||||
| Total Noninterest Income | 32,503 | 31,678 | 2.6% | ||||||||
| Noninterest Expense: | |||||||||||
| Salaries and Benefits | 36,575 | 38,458 | -4.9% | ||||||||
| Occupancy and Equipment | 14,447 | 14,737 | -2.0% | ||||||||
| Outsourced Data Processing | 7,244 | 7,067 | 2.5% | ||||||||
| Professional Fees | 2,496 | 1,701 | 46.7% | ||||||||
| Courier Service | 1,605 | 1,499 | 7.1% | ||||||||
| Amortization of Identifiable Intangibles | 204 | 218 | -6.4% | ||||||||
| Other Operating | 11,323 | 10,341 | 9.5% | ||||||||
| Total Noninterest Expense | 73,894 | 74,021 | -0.2% | ||||||||
| Income Before Income Taxes | 87,560 | 74,909 | 16.9% | ||||||||
| Income Tax Provision | 22,771 | 18,334 | 24.2% | ||||||||
| Net Income | $64,789 | $56,575 | 14.5% | ||||||||
| Average Common Shares Outstanding | 26,851 | 26,977 | -0.5% | ||||||||
| Diluted Common Shares Outstanding | 26,868 | 26,998 | -0.5% | ||||||||
| Per Common Share Data: | |||||||||||
| Basic Earnings | $2.41 | $2.10 | 14.8% | ||||||||
| Diluted Earnings | 2.41 | 2.10 | 14.8% | ||||||||
| Dividends Paid | 1.23 | 1.23 | 0.0% | ||||||||
| Footnotes and Abbreviations: | |||||||||||
| (1) Effective January 1, 2020, the Company adopted Accounting Standards Update (ASU) 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments (“CECL”), resulting in a period opening adjustment to the allowance for credit losses for loans and held-to-maturity debt securities, other liabilities, deferred tax assets, and shareholders’ equity. | |||||||||||
| (2) In the third quarter 2023, the Company recorded a $2 thousand reversal of provision for credit losses on Debt Securities Held To Maturity and the balance of the allowance for credit losses on Debt Securities Held To Maturity was reduced from $9 thousand at June 30, 2023 to $7 thousand at September 30, 2023. | |||||||||||
| (3) The Company adopted ASU 2016-13, effective January 1, 2020. Debt Securities Held To Maturity of $356,106 thousand at September 30, 2023, $414,413 thousand at June 30, 2023 and $577,795 thousand at September 30, 2020 are net of related reserve for expected credit losses of $7 thousand, $9 thousand and $16 thousand, respectively. | |||||||||||
| (4) Interest income on Debt Securities Available For Sale included make-whole interest income on called corporate bonds of $732 thousand in the third quarter 2023, $1.4 million in the second quarter 2023 and $700 thousand in the first quarter 2023. | |||||||||||
| (FTE) Fully Taxable Equivalent. The Company presents its net interest margin and net interest income on a FTE basis using the current statutory federal tax rate. Management believes the FTE basis is valuable to the reader because the Company’s loan and investment securities portfolios contain a relatively large portion of municipal loans and securities that are federally tax exempt. The Company’s tax exempt loans and securities composition may not be similar to that of other banks, therefore in order to reflect the impact of the federally tax exempt loans and securities on the net interest margin and net interest income for comparability with other banks, the Company presents its net interest margin and net interest income on a FTE basis. | |||||||||||
| (a) Annualized | |||||||||||
