SAN RAFAEL, Calif., Oct. 19, 2023 (GLOBE NEWSWIRE) -- Westamerica Bancorporation (Nasdaq: WABC), parent company of Westamerica Bank, generated net income for the third quarter 2023 of $41.6 million and diluted earnings per common share (“EPS”) of $1.56, which represent the highest third quarter results in Company history. Third quarter 2023 results include a life insurance gain which increased EPS $0.01. Third quarter 2023 results compare to second quarter 2023 net income of $40.2 million and EPS of $1.51.
“Westamerica’s third quarter 2023 results benefited from the Company’s valuable low-cost deposit base, of which 48 percent was represented by non-interest bearing checking accounts during the third quarter 2023. The annualized cost of funding our loan and bond portfolios was 0.07 percent in the third quarter 2023. The Company’s customer deposits and shareholders’ equity fully funded our interest earning assets during the third quarter 2023; the Company did not borrow from the Federal Reserve Bank or correspondent banks. Operating expenses remained well controlled. Nonperforming assets were a stable $1.2 million at September 30, 2023,” said Chairman, President and CEO David Payne. “Third quarter 2023 results generated an annualized 18.3 percent return on average common equity. Shareholders were paid a $0.44 per common share dividend during the third quarter 2023,” concluded Payne.
Net interest income on a fully-taxable equivalent (FTE) basis was $72.1 million for the third quarter 2023, compared to $70.3 million for the second quarter 2023. The annualized yield earned on loans, bonds and cash for the third quarter 2023 was 4.50 percent, up from 4.38 percent for the second quarter 2023. The annualized cost of funding the loan and bond portfolios was 0.07 percent for the third quarter 2023, compared to 0.04 percent for the second quarter 2023. Variable rate assets at September 30, 2023 included $1.5 billion in collateralized loan obligations on which interest rates reset quarterly.
The Company provided $400 thousand for credit losses on loans in the third quarter 2023. The Allowance for Credit Losses on Loans was $17.7 million at September 30, 2023.
Noninterest income for the third quarter 2023 totaled $11.3 million compared to $10.7 million for the second quarter 2023. Third quarter 2023 results include a $278 thousand life insurance gain.
Noninterest expenses for the third quarter 2023 were $25.7 million compared to $25.8 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.
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, 2022 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 2010, 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.
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Public Information October 19, 2023
|
| WESTAMERICA BANCORPORATION |
|
|
|
|
| FINANCIAL HIGHLIGHTS |
|
|
|
|
| September 30, 2023 |
|
|
|
|
|
|
|
|
|
|
| 1. Net Income Summary. |
|
|
|
|
|
|
(in thousands except per-share amounts) |
|
|
|
|
% |
|
|
|
Q3’2023 |
Q3’2022 |
Change |
Q2’2023 |
|
|
|
|
|
|
|
Net Interest and Fee Income (FTE) |
$ |
72,092 |
|
$ |
60,780 |
|
18.6 |
% |
$ |
70,281 |
|
|
Provision for Credit Losses |
|
400 |
|
|
- |
|
n/m |
|
- |
|
|
Noninterest Income |
|
11,281 |
|
|
11,818 |
|
-4.5 |
% |
|
10,700 |
|
|
Noninterest Expense |
|
25,650 |
|
|
24,767 |
|
3.6 |
% |
|
25,839 |
|
|
Income Before Taxes (FTE) |
|
57,323 |
|
|
47,831 |
|
19.8 |
% |
|
55,142 |
|
|
Income Tax Provision (FTE) |
|
15,722 |
|
|
13,071 |
|
20.3 |
% |
|
14,894 |
|
|
Net Income |
$ |
41,601 |
|
$ |
34,760 |
|
19.7 |
% |
$ |
40,248 |
|
|
|
|
|
|
|
|
Average Common Shares Outstanding |
|
26,648 |
|
|
26,906 |
|
-1.0 |
% |
|
26,648 |
|
|
Diluted Average Common Shares Outstanding |
|
26,650 |
|
|
26,916 |
|
-1.0 |
% |
|
26,648 |
|
|
|
|
|
|
|
|
Operating Ratios: |
|
|
|
|
|
Basic Earnings Per Common Share |
$ |
1.56 |
|
$ |
1.29 |
|
20.9 |
% |
$ |
1.51 |
|
|
Diluted Earnings Per Common Share |
|
1.56 |
|
|
1.29 |
|
20.9 |
% |
|
1.51 |
|
|
Return On Assets (a) |
|
2.41 |
% |
|
1.85 |
% |
|
|
2.35 |
% |
|
Return On Common Equity (a) |
|
18.3 |
% |
|
17.1 |
% |
|
|
18.4 |
% |
|
Net Interest Margin (FTE) (a) |
|
4.43 |
% |
|
3.44 |
% |
|
|
4.34 |
% |
|
Efficiency Ratio (FTE) |
|
30.8 |
% |
|
34.1 |
% |
|
|
31.9 |
% |
|
|
|
|
|
|
|
Dividends Paid Per Common Share |
$ |
0.44 |
|
$ |
0.42 |
|
4.8 |
% |
$ |
0.42 |
|
|
Common Dividend Payout Ratio |
|
28 |
% |
|
33 |
% |
|
|
28 |
% |
|
|
|
|
|
|
|
|
|
|
% |
|
|
|
9/30’23YTD |
9/30’22YTD |
Change |
|
|
|
|
|
|
|
|
Net Interest and Fee Income (FTE) |
$ |
211,935 |
|
$ |
152,620 |
|
38.9 |
% |
|
|
Reversal of Provision for Credit Losses (2) |
|
(1,150 |
) |
|
- |
|
n/m |
|
|
Noninterest Income (1) |
|
32,530 |
|
|
34,658 |
|
-6.1 |
% |
|
|
Noninterest Expense |
|
77,699 |
|
|
74,271 |
|
4.6 |
% |
|
|
Income Before Taxes (FTE) |
|
167,916 |
|
|
113,007 |
|
48.6 |
% |
|
|
Income Tax Provision (FTE) |
|
45,616 |
|
|
30,317 |
|
50.5 |
% |
|
|
Net Income |
$ |
122,300 |
|
$ |
82,690 |
|
47.9 |
% |
|
|
|
|
|
|
|
|
Average Common Shares Outstanding |
|
26,718 |
|
|
26,889 |
|
-0.6 |
% |
|
|
Diluted Average Common Shares Outstanding |
|
26,721 |
|
|
26,901 |
|
-0.7 |
% |
|
|
|
|
|
|
|
|
Operating Ratios: |
|
|
|
|
|
Basic Earnings Per Common Share |
$ |
4.58 |
|
$ |
3.08 |
|
48.7 |
% |
|
|
Diluted Earnings Per Common Share |
|
4.58 |
|
|
3.07 |
|
49.2 |
% |
|
|
Return On Assets (a) |
|
2.36 |
% |
|
1.49 |
% |
|
|
|
Return On Common Equity (a) |
|
18.6 |
% |
|
14.0 |
% |
|
|
|
Net Interest Margin (FTE) (a) |
|
4.32 |
% |
|
2.90 |
% |
|
|
|
Efficiency Ratio (FTE) |
|
31.8 |
% |
|
39.7 |
% |
|
|
|
|
|
|
|
|
|
Dividends Paid Per Common Share |
$ |
1.28 |
|
$ |
1.26 |
|
1.6 |
% |
|
|
Common Dividend Payout Ratio |
|
28 |
% |
|
41 |
% |
|
|
|
|
|
|
|
|
| 2. Net Interest Income. |
|
|
|
|
|
|
(dollars in thousands) |
|
|
|
|
% |
|
|
|
Q3’2023 |
Q3’2022 |
Change |
Q2’2023 |
|
|
|
|
|
|
|
Interest and Fee Income (FTE) |
$ |
73,225 |
|
$ |
61,267 |
|
19.5 |
% |
$ |
70,888 |
|
|
Interest Expense |
|
1,133 |
|
|
487 |
|
132.6 |
% |
|
607 |
|
|
Net Interest and Fee Income (FTE) |
$ |
72,092 |
|
$ |
60,780 |
|
18.6 |
% |
$ |
70,281 |
|
|
|
|
|
|
|
|
Average Earning Assets |
$ |
6,438,411 |
|
$ |
7,041,313 |
|
-8.6 |
% |
$ |
6,457,270 |
|
|
Average Interest- Bearing Liabilities |
|
3,118,632 |
|
|
3,520,083 |
|
-11.4 |
% |
|
3,144,264 |
|
|
|
|
|
|
|
|
Yield on Earning Assets (FTE) (a) |
|
4.50 |
% |
|
3.47 |
% |
|
|
4.38 |
% |
|
Cost of Funds (a) |
|
0.07 |
% |
|
0.03 |
% |
|
|
0.04 |
% |
|
Net Interest Margin (FTE) (a) |
|
4.43 |
% |
|
3.44 |
% |
|
|
4.34 |
% |
|
Interest Expense/ |
|
|
|
|
|
Interest-Bearing Liabilities (a) |
|
0.14 |
% |
|
0.05 |
% |
|
|
0.08 |
% |
|
Net Interest Spread (FTE) (a) |
|
4.36 |
% |
|
3.42 |
% |
|
|
4.30 |
% |
|
|
|
|
|
|
|
|
|
|
% |
|
|
|
9/30’23YTD |
9/30’22YTD |
Change |
|
|
|
|
|
|
|
|
Interest and Fee Income (FTE) |
$ |
214,146 |
|
$ |
154,070 |
|
39.0 |
% |
|
|
Interest Expense |
|
2,211 |
|
|
1,450 |
|
52.5 |
% |
|
|
Net Interest and Fee Income (FTE) |
$ |
211,935 |
|
$ |
152,620 |
|
38.9 |
% |
|
|
|
|
|
|
|
|
Average Earning Assets |
$ |
6,519,448 |
|
$ |
7,013,627 |
|
-7.0 |
% |
|
|
Average Interest- Bearing Liabilities |
|
3,182,734 |
|
|
3,538,361 |
|
-10.1 |
% |
|
|
|
|
|
|
|
|
Yield on Earning Assets (FTE) (a) |
|
4.36 |
% |
|
2.93 |
% |
|
|
|
Cost of Funds (a) |
|
0.04 |
% |
|
0.03 |
% |
|
|
|
Net Interest Margin (FTE) (a) |
|
4.32 |
% |
|
2.90 |
% |
|
|
|
Interest Expense/ |
|
|
|
|
|
Interest-Bearing Liabilities (a) |
|
0.09 |
% |
|
0.05 |
% |
|
|
|
Net Interest Spread (FTE) (a) |
|
4.27 |
% |
|
2.88 |
% |
|
|
|
|
|
|
|
|
| 3. Loans & Other Earning Assets. |
|
|
|
|
|
|
(average volume, dollars in thousands) |
|
|
|
|
% |
|
|
|
Q3’2023 |
Q3’2022 |
Change |
Q2’2023 |
|
|
|
|
|
|
|
Total Assets |
$ |
6,847,691 |
|
$ |
7,472,304 |
|
-8.4 |
% |
$ |
6,865,591 |
|
|
Total Earning Assets |
|
6,438,411 |
|
|
7,041,313 |
|
-8.6 |
% |
|
6,457,270 |
|
|
Total Loans |
|
903,854 |
|
|
989,033 |
|
-8.6 |
% |
|
926,795 |
|
|
Commercial Loans |
|
151,431 |
|
|
190,325 |
|
-20.4 |
% |
|
157,975 |
|
|
Commercial Real Estate Loans |
|
493,072 |
|
|
494,717 |
|
-0.3 |
% |
|
491,902 |
|
|
Consumer Loans |
|
259,351 |
|
|
303,991 |
|
-14.7 |
% |
|
276,918 |
|
|
Total Investment Securities |
|
5,247,118 |
|
|
5,552,588 |
|
-5.5 |
% |
|
5,365,377 |
|
|
Debt Securities Available for Sale |
|
4,353,794 |
|
|
4,845,055 |
|
-10.1 |
% |
|
4,460,339 |
|
|
Debt Securities Held to Maturity |
|
893,324 |
|
|
707,533 |
|
26.3 |
% |
|
905,038 |
|
|
Total Interest-Bearing Cash |
|
287,439 |
|
|
499,692 |
|
-42.5 |
% |
|
165,098 |
|
|
|
|
|
|
|
|
Loans/Deposits |
|
15.8 |
% |
|
15.2 |
% |
|
|
16.0 |
% |
|
|
|
|
|
|
|
|
|
|
% |
|
|
|
9/30’23YTD |
9/30’22YTD |
Change |
|
|
|
|
|
|
|
|
Total Assets |
$ |
6,940,897 |
|
$ |
7,433,140 |
|
-6.6 |
% |
|
|
Total Earning Assets |
|
6,519,448 |
|
|
7,013,627 |
|
-7.0 |
% |
|
|
Total Loans |
|
925,351 |
|
|
1,009,314 |
|
-8.3 |
% |
|
|
Commercial Loans |
|
158,204 |
|
|
200,206 |
|
-21.0 |
% |
|
|
Commercial Real Estate Loans |
|
492,702 |
|
|
508,812 |
|
-3.2 |
% |
|
|
Consumer Loans |
|
274,445 |
|
|
300,296 |
|
-8.6 |
% |
|
|
Total Investment Securities |
|
5,385,986 |
|
|
5,172,003 |
|
4.1 |
% |
|
|
Debt Securities Available for Sale |
|
4,482,376 |
|
|
4,741,400 |
|
-5.5 |
% |
|
|
Debt Securities Held to Maturity |
|
903,610 |
|
|
430,603 |
|
109.8 |
% |
|
|
Total Interest-Bearing Cash |
|
208,111 |
|
|
832,310 |
|
-75.0 |
% |
|
|
|
|
|
|
|
|
Loans/Deposits |
|
15.8 |
% |
|
15.7 |
% |
|
|
|
|
|
|
|
|
| 4. Deposits, Other Interest-Bearing Liabilities & Equity. |
|
|
|
|
(average volume, dollars in thousands) |
|
|
|
|
% |
|
|
|
Q3’2023 |
Q3’2022 |
Change |
Q2’2023 |
|
|
|
|
|
|
|
Total Deposits |
$ |
5,722,817 |
|
$ |
6,495,051 |
|
-11.9 |
% |
$ |
5,797,504 |
|
|
Noninterest Demand |
|
2,721,358 |
|
|
3,058,662 |
|
-11.0 |
% |
|
2,751,319 |
|
|
Interest-Bearing Transaction |
|
1,149,483 |
|
|
1,308,310 |
|
-12.1 |
% |
|
1,159,653 |
|
|
Savings |
|
1,741,994 |
|
|
1,989,275 |
|
-12.4 |
% |
|
1,763,410 |
|
|
Time greater than $100K |
|
43,073 |
|
|
62,014 |
|
-30.5 |
% |
|
53,901 |
|
|
Time less than $100K |
|
66,909 |
|
|
76,790 |
|
-12.9 |
% |
|
69,221 |
|
|
Total Short-Term Borrowings |
|
117,173 |
|
|
83,694 |
|
40.0 |
% |
|
98,079 |
|
|
Shareholders’ Equity |
|
902,300 |
|
|
807,428 |
|
11.7 |
% |
|
877,964 |
|
|
|
|
|
|
|
|
Demand Deposits/ Total Deposits |
|
47.6 |
% |
|
47.1 |
% |
|
|
47.5 |
% |
|
Transaction & Savings Deposits / Total Deposits |
|
98.1 |
% |
|
97.9 |
% |
|
|
97.9 |
% |
|
|
|
|
|
|
|
|
|
|
% |
|
|
|
9/30’23YTD |
9/30’22YTD |
Change |
|
|
|
|
|
|
|
|
Total Deposits |
$ |
5,859,506 |
|
$ |
6,437,943 |
|
-9.0 |
% |
|
|
Noninterest Demand |
|
2,774,282 |
|
|
3,020,892 |
|
-8.2 |
% |
|
|
Interest-Bearing Transaction |
|
1,180,551 |
|
|
1,290,850 |
|
-8.5 |
% |
|
|
Savings |
|
1,783,891 |
|
|
1,984,931 |
|
-10.1 |
% |
|
|
Time greater than $100K |
|
51,481 |
|
|
63,318 |
|
-18.7 |
% |
|
|
Time less than $100K |
|
69,301 |
|
|
77,952 |
|
-11.1 |
% |
|
|
Total Short-Term Borrowings |
|
97,510 |
|
|
121,310 |
|
-19.6 |
% |
|
|
Shareholders’ Equity |
|
879,740 |
|
|
790,691 |
|
11.3 |
% |
|
|
|
|
|
|
|
|
Demand Deposits/ Total Deposits |
|
47.3 |
% |
|
46.9 |
% |
|
|
|
Transaction & Savings Deposits / Total Deposits |
|
97.9 |
% |
|
97.8 |
% |
|
|
|
|
|
|
|
|
| 5. Interest Yields Earned & Rates Paid. |
|
|
|
|
|
|
(dollars in thousands) |
|
|
|
Q3’2023 |
|
|
|
Average |
Income/ |
Yield (a) / |
|
|
|
Volume |
Expense |
Rate (a) |
|
|
|
|
|
|
|
|
Interest & Fee Income Earned: |
|
|
|
|
|
Total Earning Assets (FTE) |
$ |
6,438,411 |
|
$ |
73,225 |
|
4.50 |
% |
|
|
Total Loans (FTE) |
|
903,854 |
|
|
12,016 |
|
5.27 |
% |
|
|
Commercial Loans (FTE) |
|
151,431 |
|
|
2,743 |
|
7.19 |
% |
|
|
Commercial Real Estate Loans |
|
493,072 |
|
|
5,914 |
|
4.76 |
% |
|
|
Consumer Loans |
|
259,351 |
|
|
3,359 |
|
5.14 |
% |
|
|
Total Investments (FTE) |
|
5,247,118 |
|
|
57,280 |
|
4.32 |
% |
|
|
Total Debt Securities Available for Sale (FTE) |
|
4,353,794 |
|
|
48,285 |
|
4.38 |
% |
|
|
Corporate Securities |
|
2,148,308 |
|
|
14,851 |
|
2.77 |
% |
|
|
Collateralized Loan Obligations |
|
1,530,992 |
|
|
28,023 |
|
7.16 |
% |
|
|
Agency Mortgage Backed Securities |
|
276,755 |
|
|
1,676 |
|
2.42 |
% |
|
|
Securities of U.S. Government sponsored |
|
|
|
|
|
entities |
|
307,106 |
|
|
2,777 |
|
3.62 |
% |
|
|
Obligations of States and Political |
|
|
|
|
|
Subdivisions (FTE) |
|
76,406 |
|
|
573 |
|
3.00 |
% |
|
|
Other Debt Securities Available for Sale (FTE) |
|
14,227 |
|
|
385 |
|
10.82 |
% |
|
|
Total Debt Securities Held to Maturity (FTE) |
|
893,324 |
|
|
8,995 |
|
4.03 |
% |
|
|
Agency Mortgage Backed Securities |
|
88,147 |
|
|
475 |
|
2.16 |
% |
|
|
Corporate Securities |
|
725,862 |
|
|
7,815 |
|
4.31 |
% |
|
|
Obligations of States and Political |
|
|
|
|
|
Subdivisions (FTE) |
|
79,315 |
|
|
705 |
|
3.55 |
% |
|
|
Total Interest-Bearing Cash |
|
287,439 |
|
|
3,929 |
|
5.35 |
% |
|
|
|
|
|
|
|
|
Interest Expense Paid: |
|
|
|
|
|
Total Earning Assets |
|
6,438,411 |
|
|
1,133 |
|
0.07 |
% |
|
|
Total Interest-Bearing Liabilities |
|
3,118,632 |
|
|
1,133 |
|
0.14 |
% |
|
|
Total Interest-Bearing Deposits |
|
3,001,459 |
|
|
1,095 |
|
0.14 |
% |
|
|
Interest-Bearing Transaction |
|
1,149,483 |
|
|
131 |
|
0.05 |
% |
|
|
Savings |
|
1,741,994 |
|
|
886 |
|
0.20 |
% |
|
|
Time less than $100K |
|
66,909 |
|
|
52 |
|
0.31 |
% |
|
|
Time greater than $100K |
|
43,073 |
|
|
26 |
|
0.24 |
% |
|
|
Total Short-Term Borrowings |
|
117,173 |
|
|
38 |
|
0.13 |
% |
|
|
|
|
|
|
|
|
Net Interest Income and |
|
|
|
|
|
Margin (FTE) |
|
$ |
72,092 |
|
4.43 |
% |
|
|
|
|
|
|
|
|
|
Q3’2022 |
|
|
|
Average |
Income/ |
Yield (a) / |
|
|
|
Volume |
Expense |
Rate (a) |
|
|
Interest & Fee Income Earned: |
|
|
|
|
|
Total Earning Assets (FTE) |
$ |
7,041,313 |
|
$ |
61,267 |
|
3.47 |
% |
|
|
Total Loans (FTE) |
|
989,033 |
|
|
12,298 |
|
4.93 |
% |
|
|
Commercial Loans (FTE) |
|
190,325 |
|
|
2,843 |
|
5.93 |
% |
|
|
Commercial Real Estate Loans |
|
494,717 |
|
|
5,821 |
|
4.67 |
% |
|
|
Consumer Loans |
|
303,991 |
|
|
3,634 |
|
4.74 |
% |
|
|
Total Investments (FTE) |
|
5,552,588 |
|
|
46,227 |
|
3.33 |
% |
|
|
Total Debt Securities Available for Sale (FTE) |
|
4,845,055 |
|
|
39,388 |
|
3.22 |
% |
|
|
Corporate Securities |
|
2,518,870 |
|
|
17,404 |
|
2.76 |
% |
|
|
Collateralized Loan Obligations |
|
1,600,611 |
|
|
16,355 |
|
4.00 |
% |
|
|
Agency Mortgage Backed Securities |
|
336,392 |
|
|
2,001 |
|
2.38 |
% |
|
|
Securities of U.S. Government sponsored |
|
|
|
|
|
entities |
|
288,538 |
|
|
2,604 |
|
3.61 |
% |
|
|
Obligations of States and Political |
|
|
|
|
|
Subdivisions (FTE) |
|
86,357 |
|
|
660 |
|
3.06 |
% |
|
|
Other Debt Securities Available for Sale (FTE) |
|
14,287 |
|
|
364 |
|
10.18 |
% |
|
|
Total Debt Securities Held to Maturity (FTE) |
|
707,533 |
|
|
6,839 |
|
3.87 |
% |
|
|
Agency Mortgage Backed Securities |
|
117,606 |
|
|
586 |
|
1.99 |
% |
|
|
Corporate Securities |
|
477,881 |
|
|
5,230 |
|
4.38 |
% |
|
|
Obligations of States and Political |
|
|
|
|
|
Subdivisions (FTE) |
|
112,046 |
|
|
1,023 |
|
3.65 |
% |
|
|
Total Interest-Bearing Cash |
|
499,692 |
|
|
2,742 |
|
2.15 |
% |
|
|
|
|
|
|
|
|
Interest Expense Paid: |
|
|
|
|
|
Total Earning Assets |
|
7,041,313 |
|
|
487 |
|
0.03 |
% |
|
|
Total Interest-Bearing Liabilities |
|
3,520,083 |
|
|
487 |
|
0.05 |
% |
|
|
Total Interest-Bearing Deposits |
|
3,436,389 |
|
|
470 |
|
0.05 |
% |
|
|
Interest-Bearing Transaction |
|
1,308,310 |
|
|
94 |
|
0.03 |
% |
|
|
Savings |
|
1,989,275 |
|
|
290 |
|
0.06 |
% |
|
|
Time less than $100K |
|
76,790 |
|
|
47 |
|
0.24 |
% |
|
|
Time greater than $100K |
|
62,014 |
|
|
39 |
|
0.25 |
% |
|
|
Total Short-Term Borrowings |
|
83,694 |
|
|
17 |
|
0.08 |
% |
|
|
|
|
|
|
|
|
Net Interest Income and |
|
|
|
|
|
Margin (FTE) |
|
$ |
60,780 |
|
3.44 |
% |
|
|
|
|
|
|
|
| 6. Noninterest Income. |
|
|
|
|
|
|
(dollars in thousands except per-share amounts) |
|
|
|
|
% |
|
|
|
Q3’2023 |
Q3’2022 |
Change |
Q2’2023 |
|
|
|
|
|
|
|
Service Charges on Deposit Accounts |
$ |
3,705 |
|
$ |
3,737 |
|
-0.9 |
% |
$ |
3,459 |
|
|
Merchant Processing Services |
|
2,911 |
|
|
2,925 |
|
-0.5 |
% |
|
2,869 |
|
|
Debit Card Fees |
|
1,717 |
|
|
1,594 |
|
7.7 |
% |
|
1,759 |
|
|
Trust Fees |
|
783 |
|
|
810 |
|
-3.3 |
% |
|
810 |
|
|
ATM Processing Fees |
|
640 |
|
|
594 |
|
7.7 |
% |
|
702 |
|
|
Other Service Fees |
|
463 |
|
|
463 |
|
0.1 |
% |
|
458 |
|
|
Financial Services Commissions |
|
78 |
|
|
79 |
|
-1.3 |
% |
|
103 |
|
|
Life Insurance Gains |
|
278 |
|
|
923 |
|
n/m |
|
- |
|
|
Securities Losses |
|
- |
|
|
- |
|
n/m |
|
(125 |
) |
|
Other Noninterest Income |
|
706 |
|
|
693 |
|
1.9 |
% |
|
665 |
|
|
Total Noninterest Income |
$ |
11,281 |
|
$ |
11,818 |
|
-4.5 |
% |
$ |
10,700 |
|
|
|
|
|
|
|
|
Operating Ratios: |
|
|
|
|
|
Total Revenue (FTE) |
$ |
83,373 |
|
$ |
72,598 |
|
14.8 |
% |
$ |
80,981 |
|
|
Noninterest Income/Revenue (FTE) |
|
13.5 |
% |
|
16.3 |
% |
|
|
13.2 |
% |
|
Service Charges/Avg. Deposits (a) |
|
0.26 |
% |
|
0.23 |
% |
|
|
0.24 |
% |
|
Total Revenue (FTE) Per Avg. |
|
|
|
|
|
Common Share (a) |
$ |
12.41 |
|
$ |
10.70 |
|
15.9 |
% |
$ |
12.19 |
|
|
|
|
|
|
|
|
|
|
|
% |
|
|
|
9/30’23YTD |
9/30’22YTD |
Change |
|
|
|
|
|
|
|
|
Service Charges on Deposit Accounts |
$ |
10,629 |
|
$ |
11,006 |
|
-3.4 |
% |
|
|
Merchant Processing Services |
|
8,417 |
|
|
8,922 |
|
-5.7 |
% |
|
|
Debit Card Fees (1) |
|
5,118 |
|
|
6,175 |
|
-17.1 |
% |
|
|
Trust Fees |
|
2,358 |
|
|
2,462 |
|
-4.2 |
% |
|
|
ATM Processing Fees |
|
1,996 |
|
|
1,514 |
|
31.8 |
% |
|
|
Other Service Fees |
|
1,320 |
|
|
1,392 |
|
-5.2 |
% |
|
|
Financial Services Commissions |
|
270 |
|
|
314 |
|
-14.0 |
% |
|
|
Life Insurance Gains |
|
278 |
|
|
923 |
|
n/m |
|
|
Securities Losses |
|
(125 |
) |
|
- |
|
n/m |
|
|
Other Noninterest Income |
|
2,269 |
|
|
1,950 |
|
16.4 |
% |
|
|
Total Noninterest Income |
$ |
32,530 |
|
$ |
34,658 |
|
-6.1 |
% |
|
|
|
|
|
|
|
|
Operating Ratios: |
|
|
|
|
|
Total Revenue (FTE) |
$ |
244,465 |
|
$ |
187,278 |
|
30.5 |
% |
|
|
Noninterest Income/Revenue (FTE) |
|
13.3 |
% |
|
18.5 |
% |
|
|
|
Service Charges/Avg. Deposits (a) |
|
0.24 |
% |
|
0.23 |
% |
|
|
|
Total Revenue (FTE) Per Avg. |
|
|
|
|
|
Common Share (a) |
$ |
12.23 |
|
$ |
9.31 |
|
31.4 |
% |
|
|
|
|
|
|
|
| 7. Noninterest Expense. |
|
|
|
|
|
|
(dollars in thousands) |
|
|
|
|
% |
|
|
|
Q3’2023 |
Q3’2022 |
Change |
Q2’2023 |
|
|
|
|
|
|
|
Salaries & Benefits |
$ |
11,820 |
|
$ |
11,311 |
|
4.5 |
% |
$ |
11,828 |
|
|
Occupancy and Equipment |
|
5,065 |
|
|
5,064 |
|
0.0 |
% |
|
5,012 |
|
|
Outsourced Data Processing |
|
2,473 |
|
|
2,434 |
|
1.6 |
% |
|
2,488 |
|
|
Limited Partnership Operating Losses |
|
1,440 |
|
|
1,431 |
|
0.6 |
% |
|
1,440 |
|
|
Professional Fees |
|
401 |
|
|
582 |
|
-31.1 |
% |
|
485 |
|
|
Courier Service |
|
745 |
|
|
671 |
|
11.0 |
% |
|
611 |
|
|
Other Noninterest Expense |
|
3,706 |
|
|
3,274 |
|
13.2 |
% |
|
3,975 |
|
|
Total Noninterest Expense |
$ |
25,650 |
|
$ |
24,767 |
|
3.6 |
% |
$ |
25,839 |
|
|
|
|
|
|
|
|
Operating Ratios: |
|
|
|
|
|
Noninterest Expense/ Avg. Earning Assets (a) |
|
1.58 |
% |
|
1.40 |
% |
|
|
1.60 |
% |
|
Noninterest Expense/Revenues (FTE) |
|
30.8 |
% |
|
34.1 |
% |
|
|
31.9 |
% |
|
|
|
|
|
|
|
|
|
|
% |
|
|
|
9/30’23YTD |
9/30’22YTD |
Change |
|
|
|
|
|
|
|
|
Salaries & Benefits |
$ |
35,715 |
|
$ |
34,643 |
|
3.1 |
% |
|
|
Occupancy and Equipment |
|
15,562 |
|
|
14,666 |
|
6.1 |
% |
|
|
Outsourced Data Processing |
|
7,405 |
|
|
7,294 |
|
1.5 |
% |
|
|
Limited Partnership Operating Losses |
|
4,314 |
|
|
4,293 |
|
0.5 |
% |
|
|
Professional Fees |
|
1,362 |
|
|
2,054 |
|
-33.7 |
% |
|
|
Courier Service |
|
1,971 |
|
|
1,914 |
|
3.0 |
% |
|
|
Other Noninterest Expense |
|
11,370 |
|
|
9,407 |
|
20.9 |
% |
|
|
Total Noninterest Expense |
$ |
77,699 |
|
$ |
74,271 |
|
4.6 |
% |
|
|
|
|
|
|
|
|
Operating Ratios: |
|
|
|
|
|
Noninterest Expense/ Avg. Earning Assets (a) |
|
1.59 |
% |
|
1.42 |
% |
|
|
|
Noninterest Expense/Revenues (FTE) |
|
31.8 |
% |
|
39.7 |
% |
|
|
|
|
|
|
|
|
| 8. Allowance for Credit Losses. |
|
|
|
|
|
|
(dollars in thousands) |
|
|
|
|
% |
|
|
|
Q3’2023 |
Q3’2022 |
Change |
Q2’2023 |
|
|
|
|
|
|
|
Average Total Loans |
$ |
903,854 |
|
$ |
989,033 |
|
-8.6 |
% |
$ |
926,795 |
|
|
|
|
|
|
|
|
Beginning of Period Allowance for |
|
|
|
|
|
Credit Losses on Loans (ACLL) |
$ |
18,480 |
|
$ |
22,313 |
|
-17.2 |
% |
$ |
19,509 |
|
|
Provision for Credit Losses |
|
400 |
|
|
- |
|
n/m |
|
- |
|
|
Net ACLL Losses |
|
(1,136 |
) |
|
(1,095 |
) |
3.7 |
% |
|
(1,029 |
) |
|
End of Period ACLL |
$ |
17,744 |
|
$ |
21,218 |
|
-16.4 |
% |
$ |
18,480 |
|
|
|
|
|
|
|
|
Gross ACLL Recoveries / Gross ACLL Losses |
|
46 |
% |
|
43 |
% |
|
|
38 |
% |
|
|
|
|
|
|
|
Net ACLL Losses / |
|
|
|
|
|
Avg. Total Loans (a) |
|
0.50 |
% |
|
0.44 |
% |
|
|
0.45 |
% |
|
|
|
|
|
|
|
|
|
|
% |
|
|
|
9/30’23YTD |
9/30’22YTD |
Change |
|
|
|
|
|
|
|
|
Average Total Loans |
$ |
925,351 |
|
$ |
1,009,314 |
|
-8.3 |
% |
|
|
|
|
|
|
|
|
Beginning of Period ACLL |
$ |
20,284 |
|
$ |
23,514 |
|
-13.7 |
% |
|
|
Reversal of Provision for Credit Losses (2) |
|
(1,150 |
) |
|
- |
|
n/m |
|
|
Net ACLL Losses |
|
(1,390 |
) |
|
(2,296 |
) |
-39.5 |
% |
|
|
End of Period ACLL |
$ |
17,744 |
|
$ |
21,218 |
|
-16.4 |
% |
|
|
|
|
|
|
|
|
Gross ACLL Recoveries / Gross ACLL Losses |
|
76 |
% |
|
49 |
% |
|
|
|
|
|
|
|
|
|
Net ACLL Losses / Avg. Total Loans (a) |
|
0.20 |
% |
|
0.30 |
% |
|
|
|
|
|
|
|
|
|
|
(dollars in thousands) |
|
|
|
|
% |
|
|
|
9/30/23 |
9/30/22 |
Change |
6/30/23 |
|
Allowance for Credit Losses on Loans |
$ |
17,744 |
|
$ |
21,218 |
|
-16.4 |
% |
$ |
18,480 |
|
|
Allowance for Credit Losses on |
|
|
|
|
|
Held to Maturity Securities |
|
1 |
|
|
7 |
|
-85.5 |
% |
|
1 |
|
|
Total Allowance for Credit Losses |
$ |
17,745 |
|
$ |
21,225 |
|
-16.4 |
% |
$ |
18,481 |
|
|
|
|
|
|
|
|
Allowance for Unfunded |
|
|
|
|
|
Credit Commitments |
$ |
201 |
|
$ |
201 |
|
0.0 |
% |
$ |
201 |
|
|
|
|
|
|
|
| 9. Credit Quality. |
|
|
|
|
|
|
(dollars in thousands) |
|
|
|
|
% |
|
|
|
9/30/23 |
9/30/22 |
Change |
6/30/23 |
|
Nonperforming Loans: |
|
|
|
|
|
Nonperforming Nonaccrual Loans |
$ |
205 |
|
$ |
131 |
|
56.5 |
% |
$ |
192 |
|
|
Performing Nonaccrual Loans |
|
4 |
|
|
66 |
|
-93.9 |
% |
|
5 |
|
|
Total Nonaccrual Loans |
|
209 |
|
|
197 |
|
6.1 |
% |
|
197 |
|
|
90+ Days Past Due Accruing Loans |
|
1,029 |
|
|
769 |
|
33.8 |
% |
|
656 |
|
|
Total Nonperforming Loans |
$ |
1,238 |
|
$ |
966 |
|
28.2 |
% |
$ |
853 |
|
|
|
|
|
|
|
|
Total Loans Outstanding |
$ |
885,850 |
|
$ |
979,033 |
|
-9.5 |
% |
$ |
919,583 |
|
|
|
|
|
|
|
|
Total Assets |
|
6,567,288 |
|
|
7,177,025 |
|
-8.5 |
% |
|
6,582,740 |
|
|
|
|
|
|
|
|
Loans: |
|
|
|
|
|
Allowance for Credit Losses on Loans |
$ |
17,744 |
|
$ |
21,218 |
|
-16.4 |
% |
$ |
18,480 |
|
|
Allowance for Credit Losses on Loans / |
|
|
|
|
|
Loans |
|
2.00 |
% |
|
2.17 |
% |
|
|
2.01 |
% |
|
Nonperforming Loans/Total Loans |
|
0.14 |
% |
|
0.10 |
% |
|
|
0.09 |
% |
|
|
|
|
|
|
| 10. Liquidity. |
|
|
|
|
|
|
|
|
|
|
|
At September 30, 2023, the Company had $420,550 thousand in cash balances. During the twelve months ending September 30, 2024, the Company expects to receive $257,000 thousand in principal payments from its debt securities. If additional operational liquidity is required, the Company can pledge debt securities as collateral for borrowing purposes; at September 30, 2023, the Company’s debt securities which qualify as collateral for borrowing totaled $3,810,723 thousand. In the ordinary course of business, the Company pledges debt securities as collateral for certain depository customers; at September 30, 2023, the Company had pledged $680,735 thousand in debt securities for depository customers. In the ordinary course of business, the Company pledges debt securities as collateral for borrowing from the Federal Reserve Bank; at September 30, 2023, the Company had pledged $964,139 thousand in debt securities at the Federal Reserve Bank. During the nine months ended September 30, 2023, the Company’s average borrowings from the Federal Reserve Bank and other correspondent banks were $-0- thousand, and at September 30, 2023, the Company’s borrowings from the Federal Reserve Bank and other correspondent banks were $-0- thousand. At September 30, 2023, the Company’s estimated unpledged collateral qualifying debt securities totaled $1,930,927 thousand. Debt securities eligible as collateral are shown at market value unless otherwise noted. |
|
|
|
|
|
|
|
|
|
|
|
(in thousands) |
|
|
|
|
|
9/30/23 |
|
Debt Securities Eligible as Collateral: |
|
|
|
|
|
Corporate Securities |
|
|
|
$ |
2,480,972 |
|
|
Collateralized Loan Obligations rated AAA |
|
|
|
|
540,315 |
|
|
Obligations of States and Political Subdivisions |
|
|
|
145,246 |
|
|
Agency Mortgage Backed Securities |
|
|
|
|
317,357 |
|
|
Securities of U.S. Government Sponsored Entities (Par Value) |
|
|
326,833 |
|
|
Total Debt Securities Eligible as Collateral |
|
|
|
$ |
3,810,723 |
|
|
|
|
|
|
|
|
Debt Securities Pledged as Collateral: |
|
|
|
|
|
Deposits by Public Entities |
|
|
|
($ |
680,735 |
) |
|
Short-Term Borrowed Funds (Deposit Sweep) |
|
|
|
(229,278 |
) |
|
Other |
|
|
|
|
(5,644 |
) |
|
Total Debt Securities Pledged as Collateral |
|
|
|
($ |
915,657 |
) |
|
|
|
|
|
|
|
Debt Securities Pledged at the Federal Reserve Bank |
|
|
($ |
964,139 |
) |
|
|
|
|
|
|
|
Estimated Debt Securities Available to Pledge |
|
|
|
$ |
1,930,927 |
|
|
|
|
|
|
|
| 11. Capital. |
|
|
|
|
|
|
(in thousands, except per-share amounts) |
|
|
|
|
% |
|
|
|
9/30/23 |
9/30/22 |
Change |
6/30/23 |
|
|
|
|
|
|
|
Shareholders’ Equity |
$ |
648,423 |
|
$ |
538,988 |
|
20.3 |
% |
$ |
651,862 |
|
|
Total Assets |
|
6,567,288 |
|
|
7,177,025 |
|
-8.5 |
% |
|
6,582,740 |
|
|
Shareholders’ Equity/ |
|
|
|
|
|
Total Assets |
|
9.87 |
% |
|
7.51 |
% |
|
|
9.90 |
% |
|
Shareholders’ Equity/ |
|
|
|
|
|
Total Loans |
|
73.20 |
% |
|
55.05 |
% |
|
|
70.89 |
% |
|
Tangible Common Equity Ratio |
|
8.17 |
% |
|
5.91 |
% |
|
|
8.20 |
% |
|
Common Shares Outstanding |
|
26,649 |
|
|
26,911 |
|
-1.0 |
% |
|
26,648 |
|
|
Common Equity Per Share |
$ |
24.33 |
|
$ |
20.03 |
|
21.5 |
% |
$ |
24.46 |
|
|
Market Value Per Common Share |
|
43.25 |
|
|
52.29 |
|
-17.3 |
% |
|
38.30 |
|
|
|
|
|
|
|
|
|
(shares in thousands) |
|
|
|
|
% |
|
|
|
Q3’2023 |
Q3’2022 |
Change |
Q2’2023 |
|
Share Repurchase Programs: |
|
|
|
|
|
Total Shares Repurchased / Canceled |
|
- |
|
|
- |
|
n/m |
|
- |
|
|
Average Repurchase Price |
$ |
- |
|
$ |
- |
|
n/m |
$ |
- |
|
|
Net Shares Issued |
|
(1 |
) |
|
(15 |
) |
n/m |
|
- |
|
|
|
|
|
|
|
|
|
|
|
% |
|
|
|
9/30’23YTD |
9/30’22YTD |
Change |
|
|
|
|
|
|
|
|
Total Shares Repurchased |
|
274 |
|
|
3 |
|
n/m |
|
|
Average Repurchase Price |
$ |
50.11 |
|
$ |
58.66 |
|
n/m |
|
|
Net Shares Repurchased (Issued) |
|
264 |
|
|
(45 |
) |
n/m |
|
|
|
|
|
|
|
| 12. Period-End Balance Sheets. |
|
|
|
|
|
|
(unaudited, dollars in thousands) |
|
|
|
|
% |
|
|
|
9/30/23 |
9/30/22 |
Change |
6/30/23 |
|
Assets: |
|
|
|
|
|
Cash and Due from Banks |
$ |
420,550 |
|
$ |
413,665 |
|
1.7 |
% |
$ |
266,187 |
|
|
|
|
|
|
|
|
Debt Securities Available for Sale |
|
|
|
|
|
Corporate Securities |
|
1,814,424 |
|
|
2,138,508 |
|
-15.2 |
% |
|
1,901,504 |
|
|
Collateralized Loan Obligations |
|
1,503,078 |
|
|
1,587,622 |
|
-5.3 |
% |
|
1,514,962 |
|
|
Agency Mortgage Backed Securities |
|
239,728 |
|
|
296,689 |
|
-19.2 |
% |
|
259,190 |
|
|
Securities of U.S. Government sponsored |
|
|
|
|
|
entities |
|
279,364 |
|
|
272,525 |
|
2.5 |
% |
|
291,402 |
|
|
Obligations of States and Political |
|
|
|
|
|
Subdivisions |
|
69,639 |
|
|
80,987 |
|
-14.0 |
% |
|
79,400 |
|
|
Total Debt Securities Available for Sale |
|
3,906,233 |
|
|
4,376,331 |
|
-10.7 |
% |
|
4,046,458 |
|
|
|
|
|
|
|
|
Debt Securities Held to Maturity |
|
|
|
|
|
Agency Mortgage Backed Securities |
|
84,347 |
|
|
112,371 |
|
-24.9 |
% |
|
91,141 |
|
|
Corporate Securities |
|
726,951 |
|
|
720,154 |
|
0.9 |
% |
|
725,252 |
|
|
Obligations of States and Political |
|
|
|
|
|
Subdivisions (3) |
|
77,558 |
|
|
103,742 |
|
-25.2 |
% |
|
83,963 |
|
|
Total Debt Securities Held to Maturity (3) |
|
888,856 |
|
|
936,267 |
|
-5.1 |
% |
|
900,356 |
|
|
|
|
|
|
|
|
Loans |
|
885,850 |
|
|
979,033 |
|
-9.5 |
% |
|
919,583 |
|
|
Allowance For Credit Losses on Loans |
|
(17,744 |
) |
|
(21,218 |
) |
-16.4 |
% |
|
(18,480 |
) |
|
Total Loans, net |
|
868,106 |
|
|
957,815 |
|
-9.4 |
% |
|
901,103 |
|
|
|
|
|
|
|
|
Premises and Equipment, net |
|
27,490 |
|
|
29,756 |
|
-7.6 |
% |
|
27,908 |
|
|
Identifiable Intangibles, net |
|
404 |
|
|
644 |
|
-37.3 |
% |
|
463 |
|
|
Goodwill |
|
121,673 |
|
|
121,673 |
|
0.0 |
% |
|
121,673 |
|
|
Other Assets |
|
333,976 |
|
|
340,874 |
|
-2.0 |
% |
|
318,592 |
|
|
|
|
|
|
|
|
Total Assets |
$ |
6,567,288 |
|
$ |
7,177,025 |
|
-8.5 |
% |
$ |
6,582,740 |
|
|
|
|
|
|
|
|
Liabilities and Shareholders’ Equity: |
|
|
|
|
|
Deposits: |
|
|
|
|
|
Noninterest-Bearing |
$ |
2,723,403 |
|
$ |
3,069,907 |
|
-11.3 |
% |
$ |
2,721,046 |
|
|
Interest-Bearing Transaction |
|
1,138,220 |
|
|
1,338,855 |
|
-15.0 |
% |
|
1,133,006 |
|
|
Savings |
|
1,732,849 |
|
|
1,949,711 |
|
-11.1 |
% |
|
1,735,083 |
|
|
Time |
|
104,541 |
|
|
136,783 |
|
-23.6 |
% |
|
116,792 |
|
|
Total Deposits |
|
5,699,013 |
|
|
6,495,256 |
|
-12.3 |
% |
|
5,705,927 |
|
|
|
|
|
|
|
|
Short-Term Borrowed Funds |
|
115,341 |
|
|
76,886 |
|
50.0 |
% |
|
138,005 |
|
|
Other Liabilities |
|
104,511 |
|
|
65,895 |
|
58.6 |
% |
|
86,946 |
|
|
Total Liabilities |
|
5,918,865 |
|
|
6,638,037 |
|
-10.8 |
% |
|
5,930,878 |
|
|
|
|
|
|
|
|
Shareholders’ Equity: |
|
|
|
|
|
Common Equity: |
|
|
|
|
|
Paid-In Capital |
|
471,862 |
|
|
474,732 |
|
-0.6 |
% |
|
471,510 |
|
|
Accumulated Other |
|
|
|
|
|
Comprehensive Loss |
|
(285,709 |
) |
|
(290,797 |
) |
-1.7 |
% |
|
(252,043 |
) |
|
Retained Earnings |
|
462,270 |
|
|
355,053 |
|
30.2 |
% |
|
432,395 |
|
|
Total Shareholders’ Equity |
|
648,423 |
|
|
538,988 |
|
20.3 |
% |
|
651,862 |
|
|
|
|
|
|
|
|
Total Liabilities and |
|
|
|
|
|
Shareholders’ Equity |
$ |
6,567,288 |
|
$ |
7,177,025 |
|
-8.5 |
% |
$ |
6,582,740 |
|
|
|
|
|
|
|
| 13. Income Statements. |
|
|
|
|
|
|
(unaudited, in thousands except per-share amounts) |
|
|
|
|
% |
|
|
|
Q3’2023 |
Q3’2022 |
Change |
Q2’2023 |
|
Interest & Fee Income: |
|
|
|
|
|
Loans |
$ |
11,925 |
|
$ |
12,208 |
|
-2.3 |
% |
$ |
11,845 |
|
|
Equity Securities |
|
152 |
|
|
127 |
|
19.7 |
% |
|
152 |
|
|
Debt Securities Available for Sale |
|
47,994 |
|
|
39,100 |
|
22.7 |
% |
|
47,452 |
|
|
Debt Securities Held to Maturity |
|
8,848 |
|
|
6,625 |
|
33.5 |
% |
|
8,930 |
|
|
Interest-Bearing Cash |
|
3,929 |
|
|
2,742 |
|
43.3 |
% |
|
2,110 |
|
|
Total Interest & Fee Income |
|
72,848 |
|
|
60,802 |
|
19.8 |
% |
|
70,489 |
|
|
|
|
|
|
|
|
Interest Expense: |
|
|
|
|
|
Transaction Deposits |
|
131 |
|
|
94 |
|
39.4 |
% |
|
104 |
|
|
Savings Deposits |
|
886 |
|
|
290 |
|
205.5 |
% |
|
396 |
|
|
Time Deposits |
|
78 |
|
|
86 |
|
-9.3 |
% |
|
82 |
|
|
Short-Term Borrowed Funds |
|
38 |
|
|
17 |
|
123.5 |
% |
|
25 |
|
|
Total Interest Expense |
|
1,133 |
|
|
487 |
|
132.6 |
% |
|
607 |
|
|
|
|
|
|
|
|
Net Interest Income |
|
71,715 |
|
|
60,315 |
|
18.9 |
% |
|
69,882 |
|
|
|
|
|
|
|
|
Provision for Credit Losses |
|
400 |
|
|
- |
|
n/m |
|
- |
|
|
|
|
|
|
|
|
Noninterest Income: |
|
|
|
|
|
Service Charges on Deposit Accounts |
|
3,705 |
|
|
3,737 |
|
-0.9 |
% |
|
3,459 |
|
|
Merchant Processing Services |
|
2,911 |
|
|
2,925 |
|
-0.5 |
% |
|
2,869 |
|
|
Debit Card Fees |
|
1,717 |
|
|
1,594 |
|
7.7 |
% |
|
1,759 |
|
|
Trust Fees |
|
783 |
|
|
810 |
|
-3.3 |
% |
|
810 |
|
|
ATM Processing Fees |
|
640 |
|
|
594 |
|
7.7 |
% |
|
702 |
|
|
Other Service Fees |
|
463 |
|
|
463 |
|
0.1 |
% |
|
458 |
|
|
Financial Services Commissions |
|
78 |
|
|
79 |
|
-1.3 |
% |
|
103 |
|
|
Life Insurance Gains |
|
278 |
|
|
923 |
|
n/m |
|
- |
|
|
Securities Losses |
|
- |
|
|
- |
|
n/m |
|
(125 |
) |
|
Other Noninterest Income |
|
706 |
|
|
693 |
|
1.9 |
% |
|
665 |
|
|
Total Noninterest Income |
|
11,281 |
|
|
11,818 |
|
-4.5 |
% |
|
10,700 |
|
|
|
|
|
|
|
|
Noninterest Expense: |
|
|
|
|
|
Salaries and Related Benefits |
|
11,820 |
|
|
11,311 |
|
4.5 |
% |
|
11,828 |
|
|
Occupancy and Equipment |
|
5,065 |
|
|
5,064 |
|
0.0 |
% |
|
5,012 |
|
|
Outsourced Data Processing |
|
2,473 |
|
|
2,434 |
|
1.6 |
% |
|
2,488 |
|
|
Limited Partnership Operating Losses |
|
1,440 |
|
|
1,431 |
|
0.6 |
% |
|
1,440 |
|
|
Professional Fees |
|
401 |
|
|
582 |
|
-31.1 |
% |
|
485 |
|
|
Courier Service |
|
745 |
|
|
671 |
|
11.0 |
% |
|
611 |
|
|
Other Noninterest Expense |
|
3,706 |
|
|
3,274 |
|
13.2 |
% |
|
3,975 |
|
|
Total Noninterest Expense |
|
25,650 |
|
|
24,767 |
|
3.6 |
% |
|
25,839 |
|
|
|
|
|
|
|
|
Income Before Income Taxes |
|
56,946 |
|
|
47,366 |
|
20.2 |
% |
|
54,743 |
|
|
Income Tax Provision |
|
15,345 |
|
|
12,606 |
|
21.7 |
% |
|
14,495 |
|
|
Net Income |
$ |
41,601 |
|
$ |
34,760 |
|
19.7 |
% |
$ |
40,248 |
|
|
|
|
|
|
|
|
Average Common Shares Outstanding |
|
26,648 |
|
|
26,906 |
|
-1.0 |
% |
|
26,648 |
|
|
Diluted Average Common Shares Outstanding |
|
26,650 |
|
|
26,916 |
|
-1.0 |
% |
|
26,648 |
|
|
|
|
|
|
|
|
Per Common Share Data: |
|
|
|
|
|
Basic Earnings |
$ |
1.56 |
|
$ |
1.29 |
|
20.9 |
% |
$ |
1.51 |
|
|
Diluted Earnings |
|
1.56 |
|
|
1.29 |
|
20.9 |
% |
|
1.51 |
|
|
Dividends Paid |
|
0.44 |
|
|
0.42 |
|
4.8 |
% |
|
0.42 |
|
|
|
|
|
|
|
|
|
|
|
% |
|
|
|
9/30’23YTD |
9/30’22YTD |
Change |
|
|
Interest & Fee Income: |
|
|
|
|
|
Loans |
$ |
35,510 |
|
$ |
37,481 |
|
-5.3 |
% |
|
|
Equity Securities |
|
456 |
|
|
384 |
|
18.8 |
% |
|
|
Debt Securities Available for Sale |
|
142,256 |
|
|
99,430 |
|
43.1 |
% |
|
|
Debt Securities Held to Maturity |
|
26,758 |
|
|
10,040 |
|
166.5 |
% |
|
|
Interest-Bearing Cash |
|
7,981 |
|
|
5,223 |
|
52.8 |
% |
|
|
Total Interest & Fee Income |
|
212,961 |
|
|
152,558 |
|
39.6 |
% |
|
|
|
|
|
|
|
|
Interest Expense: |
|
|
|
|
|
Transaction Deposits |
|
329 |
|
|
273 |
|
20.5 |
% |
|
|
Savings Deposits |
|
1,562 |
|
|
861 |
|
81.4 |
% |
|
|
Time Deposits |
|
244 |
|
|
249 |
|
-2.0 |
% |
|
|
Short-Term Borrowed Funds |
|
76 |
|
|
67 |
|
13.4 |
% |
|
|
Total Interest Expense |
|
2,211 |
|
|
1,450 |
|
52.5 |
% |
|
|
|
|
|
|
|
|
Net Interest Income |
|
210,750 |
|
|
151,108 |
|
39.5 |
% |
|
|
|
|
|
|
|
|
Reversal of Provision for Credit Losses (2) |
|
(1,150 |
) |
|
- |
|
n/m |
|
|
|
|
|
|
|
|
Noninterest Income: |
|
|
|
|
|
Service Charges on Deposit Accounts |
|
10,629 |
|
|
11,006 |
|
-3.4 |
% |
|
|
Merchant Processing Services |
|
8,417 |
|
|
8,922 |
|
-5.7 |
% |
|
|
Debit Card Fees (1) |
|
5,118 |
|
|
6,175 |
|
-17.1 |
% |
|
|
Trust Fees |
|
2,358 |
|
|
2,462 |
|
-4.2 |
% |
|
|
ATM Processing Fees |
|
1,996 |
|
|
1,514 |
|
31.8 |
% |
|
|
Other Service Fees |
|
1,320 |
|
|
1,392 |
|
-5.2 |
% |
|
|
Financial Services Commissions |
|
270 |
|
|
314 |
|
-14.0 |
% |
|
|
Life Insurance Gains |
|
278 |
|
|
923 |
|
n/m |
|
|
Securities Losses |
|
(125 |
) |
|
- |
|
n/m |
|
|
Other Operating |
|
2,269 |
|
|
1,950 |
|
16.4 |
% |
|
|
Total Noninterest Income |
|
32,530 |
|
|
34,658 |
|
-6.1 |
% |
|
|
|
|
|
|
|
|
Noninterest Expense: |
|
|
|
|
|
Salaries and Related Benefits |
|
35,715 |
|
|
34,643 |
|
3.1 |
% |
|
|
Occupancy and Equipment |
|
15,562 |
|
|
14,666 |
|
6.1 |
% |
|
|
Outsourced Data Processing |
|
7,405 |
|
|
7,294 |
|
1.5 |
% |
|
|
Limited Partnership Operating Losses |
|
4,314 |
|
|
4,293 |
|
0.5 |
% |
|
|
Professional Fees |
|
1,362 |
|
|
2,054 |
|
-33.7 |
% |
|
|
Courier Service |
|
1,971 |
|
|
1,914 |
|
3.0 |
% |
|
|
Other Operating |
|
11,370 |
|
|
9,407 |
|
20.9 |
% |
|
|
Total Noninterest Expense |
|
77,699 |
|
|
74,271 |
|
4.6 |
% |
|
|
|
|
|
|
|
|
Income Before Income Taxes |
|
166,731 |
|
|
111,495 |
|
49.5 |
% |
|
|
Income Tax Provision |
|
44,431 |
|
|
28,805 |
|
54.2 |
% |
|
|
Net Income |
$ |
122,300 |
|
$ |
82,690 |
|
47.9 |
% |
|
|
|
|
|
|
|
|
Average Common Shares Outstanding |
|
26,718 |
|
|
26,889 |
|
-0.6 |
% |
|
|
Diluted Average Common Shares Outstanding |
|
26,721 |
|
|
26,901 |
|
-0.7 |
% |
|
|
|
|
|
|
|
|
Per Common Share Data: |
|
|
|
|
|
Basic Earnings |
$ |
4.58 |
|
$ |
3.08 |
|
48.7 |
% |
|
|
Diluted Earnings |
|
4.58 |
|
|
3.07 |
|
49.2 |
% |
|
|
Dividends Paid |
|
1.28 |
|
|
1.26 |
|
1.6 |
% |
|
|
|
|
|
|
|
|
Footnotes and Abbreviations: |
|
|
|
|
|
(1) The Company received a $1.2 million reconciling payment from a payments network in the first quarter 2022. |
|
|
|
(2) A recovery of a previously charged off loan in the first quarter 2023 resulted in a $1,550 thousand reversal of the allowance for credit loss provision in the first quarter 2023. |
|
|
|
(3) Debt Securities Held To Maturity and Obligations of States and Political Subdivisions are net of related reserve for expected credit losses of $1 thousand at September 30, 2023 and June 30, 2023, and $7 thousand at September 30, 2022. |
|
|
|
(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 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 |
|
|
|
|