Bay Street News

Westamerica Bancorporation Reports Second Quarter 2024 Financial Results

SAN RAFAEL, Calif., July 18, 2024 (GLOBE NEWSWIRE) — Westamerica Bancorporation (Nasdaq: WABC), parent company of Westamerica Bank, generated net income for the second quarter 2024 of $35.5 million and diluted earnings per common share (“EPS”) of $1.33. Second quarter 2024 results compare to first quarter 2024 net income of $36.4 million and EPS of $1.37.

“Westamerica’s second quarter 2024 results benefited from the Company’s low-cost operating principles. The annualized cost of funding our interest-earning loans, bonds and cash was 0.35 percent for the second quarter 2024. The Company recognized no provision for credit losses due to $73 thousand of net loan recoveries in the second quarter 2024 and $1.6 million in nonperforming loans at June 30, 2024, while the allowance for credit losses on loans was $16.0 million at June 30, 2024. Westamerica operated efficiently, spending 35 percent of its revenue on operating costs in the second quarter 2024”, said Chairman, President and CEO David Payne. “Second quarter 2024 results generated an annualized 14.4 percent return on average common equity. Shareholders were paid a $0.44 per common share dividend during the second quarter 2024,” concluded Payne.

Net interest income on a fully-taxable equivalent (FTE) basis was $64.1 million for the second quarter 2024, compared to $66.1 million for the first quarter 2024. The annualized yield earned on loans, bonds and cash for the second quarter 2024 was 4.50 percent, unchanged from the first quarter 2024. The annualized cost of funding the loan and bond portfolios was 0.35 percent for the second quarter 2024, compared to 0.20 percent for the first quarter 2024.

The Company provided no provision for credit losses in the second quarter 2024 compared to $300 thousand in the first quarter 2024. The Allowance for Credit Losses on Loans was $16.0 million at June 30, 2024 compared to $15.9 million at March 31, 2024. 

Noninterest income for the second quarter 2024 totaled $10.5 million compared to $10.1 million for the first quarter 2024; the increase is attributable to higher merchant processing fees and higher debit card fees.

Noninterest expenses were $26.1 million for the second quarter 2024 and the first quarter 2024.

The income tax rate on a fully-taxable equivalent basis was 26.8 percent for the second quarter 2024 compared to 26.9 percent for the first quarter 2024.

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
investments@westamerica.com

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, 2023 filed on Form 10-K and quarterly report for the quarter ended March 31, 2024 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.

 
Public Information July 18, 2024
WESTAMERICA BANCORPORATION        
FINANCIAL HIGHLIGHTS        
June 30, 2024        
           
1. Net Income Summary.        
    (in thousands except per-share amounts)
        %  
    Q2’2024 Q2’2023 Change Q1’2024
  Net Interest and Loan Fee        
  Income (FTE) $ 64,100   $ 70,281   -8.8 % $ 66,094  
  Provision for        
  Credit Losses         n/m     300  
  Noninterest Income   10,500     10,700   -1.9 %   10,097  
  Noninterest Expense   26,130     25,839   1.1 %   26,099  
  Income Before Taxes (FTE)   48,470     55,142   -12.1 %   49,792  
  Income Tax Provision (FTE)   13,008     14,894   -12.7 %   13,375  
  Net Income $ 35,462   $ 40,248   -11.9 % $ 36,417  
           
  Average Common Shares        
  Outstanding   26,680     26,648   0.1 %   26,674  
  Diluted Average Common        
  Shares Outstanding   26,681     26,648   0.1 %   26,675  
           
  Operating Ratios:        
  Basic Earnings Per Common        
  Share $ 1.33   $ 1.51   -11.9 % $ 1.37  
  Diluted Earnings Per        
  Common Share   1.33     1.51   -11.9 %   1.37  
  Return On Assets (a)   2.18 %   2.35 %     2.24 %
  Return On Common        
  Equity (a)   14.4 %   18.4 %     15.2 %
  Net Interest Margin (FTE) (a)   4.15 %   4.34 %     4.30 %
  Efficiency Ratio (FTE)   35.0 %   31.9 %     34.3 %
           
  Dividends Paid Per Common        
  Share $ 0.44   $ 0.42   4.8 % $ 0.44  
  Common Dividend Payout        
  Ratio   33 %   28 %     32 %
           
        %  
    6/30’24YTD 6/30’23YTD Change  
  Net Interest and Loan Fee        
  Income (FTE) $ 130,194   $ 139,843   -6.9 %  
  Provision (Reversal        
  of Provision) for        
  Credit Losses (1)   300     (1,550 ) n/m    
  Noninterest Income   20,597     21,249   -3.1 %  
  Noninterest Expense   52,229     52,049   0.3 %  
  Income Before Taxes (FTE)   98,262     110,593   -11.1 %  
  Income Tax Provision (FTE)   26,383     29,894   -11.7 %  
  Net Income $ 71,879   $ 80,699   -10.9 %  
           
  Average Common Shares        
  Outstanding   26,677     26,753   -0.3 %  
  Diluted Average Common        
  Shares Outstanding   26,678     26,756   -0.3 %  
           
  Operating Ratios:        
  Basic Earnings Per Common        
  Share $ 2.69   $ 3.02   -10.9 %  
  Diluted Earnings Per        
  Common Share   2.69     3.02   -10.9 %  
  Return On Assets (a)   2.21 %   2.33 %    
  Return On Common        
  Equity (a)   14.8 %   18.7 %    
  Net Interest Margin (FTE) (a)   4.23 %   4.26 %    
  Efficiency Ratio (FTE)   34.6 %   32.3 %    
           
  Dividends Paid Per Common        
  Share $ 0.88   $ 0.84   4.8 %  
  Common Dividend Payout        
  Ratio   33 %   28 %    
           
2.  Net Interest and Loan Fee Income (FTE).        
    (dollars in thousands)
        %  
    Q2’2024 Q2’2023 Change Q1’2024
  Interest and Loan Fee        
  Income (FTE) $ 69,407   $ 70,888   -2.1 % $ 69,095  
  Interest Expense   5,307     607   774.3 %   3,001  
  Net Interest and Loan Fee        
  Income (FTE) $ 64,100   $ 70,281   -8.8 % $ 66,094  
           
  Average Earning Assets $ 6,145,626   $ 6,457,270   -4.8 % $ 6,119,368  
  Average Interest-Bearing        
  Liabilities   3,001,786     3,144,264   -4.5 %   2,955,565  
           
  Yield on Earning Assets        
  (FTE) (a)   4.50 %   4.38 %     4.50 %
  Cost of Funds (a)   0.35 %   0.04 %     0.20 %
  Net Interest Margin (FTE) (a)   4.15 %   4.34 %     4.30 %
  Interest Expense /        
  Interest-Bearing        
  Liabilities (a)   0.71 %   0.08 %     0.41 %
  Net Interest Spread (FTE) (a)   3.79 %   4.30 %     4.09 %
           
        %  
    6/30’24YTD 6/30’23YTD Change  
           
  Interest and Loan Fee        
  Income (FTE) $ 138,502   $ 140,921   -1.7 %  
  Interest Expense   8,308     1,078   670.7 %  
  Net Interest and Loan Fee        
  Income (FTE) $ 130,194   $ 139,843   -6.9 %  
           
  Average Earning Assets $ 6,132,497   $ 6,560,639   -6.5 %  
  Average Interest-Bearing        
  Liabilities   2,978,676     3,215,316   -7.4 %  
           
  Yield on Earning Assets        
  (FTE) (a)   4.50 %   4.29 %    
  Cost of Funds (a)   0.27 %   0.03 %    
  Net Interest Margin (FTE) (a)   4.23 %   4.26 %    
  Interest Expense /        
  Interest-Bearing        
  Liabilities (a)   0.56 %   0.07 %    
  Net Interest Spread (FTE) (a)   3.94 %   4.22 %    
           
3. Loans & Other Earning Assets.        
    (average volume, dollars in thousands)
        %  
    Q2’2024 Q2’2023 Change Q1’2024
           
  Total Assets $ 6,549,203   $ 6,865,591   -4.6 % $ 6,525,921  
  Total Earning Assets   6,145,626     6,457,270   -4.8 %   6,119,368  
  Total Loans   838,016     926,795   -9.6 %   853,553  
  Commercial Loans   133,605     157,975   -15.4 %   133,422  
  Commercial Real Estate        
  Loans   487,209     491,902   -1.0 %   488,989  
    Consumer Loans   217,202     276,918   -21.6 %   231,142  
  Total Investment Securities   4,944,191     5,365,377   -7.9 %   5,098,539  
  Debt Securities Available for        
  Sale   4,079,896     4,460,339   -8.5 %   4,224,474  
  Debt Securities Held to        
  Maturity   864,295     905,038   -4.5 %   874,065  
  Total Interest-Bearing Cash   363,419     165,098   120.1 %   167,276  
           
  Loans / Deposits   16.1 %   16.0 %     15.9 %
           
        %  
    6/30’24YTD 6/30’23YTD Change  
           
  Total Assets $ 6,537,562   $ 6,988,272   -6.4 %  
  Total Earning Assets   6,132,497     6,560,639   -6.5 %  
  Total Loans   845,785     936,277   -9.7 %  
    Commercial Loans   133,514     161,647   -17.4 %  
  Commercial Real Estate        
  Loans   488,099     492,514   -0.9 %  
    Consumer Loans   224,172     282,116   -20.5 %  
  Total Investment Securities   5,021,365     5,456,572   -8.0 %  
  Debt Securities Available for        
  Sale   4,152,185     4,547,733   -8.7 %  
  Debt Securities Held to        
  Maturity   869,180     908,839   -4.4 %  
  Total Interest-Bearing Cash   265,347     167,790   58.1 %  
           
  Loans / Deposits   16.0 %   15.8 %    
           
4. Deposits, Other Interest-Bearing Liabilities & Equity.    
    (average volume, dollars in thousands)
        %  
    Q2’2024 Q2’2023 Change Q1’2024
           
  Total Deposits $ 5,202,620   $ 5,797,504   -10.3 % $ 5,379,060  
  Noninterest Demand   2,485,023     2,751,319   -9.7 %   2,532,381  
  Interest-Bearing Transaction   981,703     1,159,653   -15.3 %   1,058,292  
  Savings   1,642,806     1,763,410   -6.8 %   1,691,716  
  Time greater than $100K   34,721     53,901   -35.6 %   36,135  
  Time less than $100K   58,367     69,221   -15.7 %   60,536  
  Total Short-Term Borrowings   284,189     98,079   -14.2 %   108,886  
  Bank Term Funding Program        
  Borrowings   200,000       0.0 %   62,582  
  Securities Sold under        
  Repurchase Agreements   84,189     98,079   0.0 %   46,304  
  Shareholders’ Equity   990,927     877,964   12.9 %   965,840  
           
  Demand Deposits /        
  Total Deposits   47.8 %   47.5 %     47.1 %
  Transaction & Savings        
  Deposits / Total Deposits   98.2 %   97.9 %     98.2 %
           
        %  
    6/30’24YTD 6/30’23YTD Change  
           
  Total Deposits $ 5,290,840   $ 5,928,983   -10.8 %  
  Noninterest Demand   2,508,702     2,801,183   -10.4 %  
  Interest-Bearing Transaction   1,019,998     1,196,342   -14.7 %  
  Savings   1,667,261     1,805,187   -7.6 %  
  Time greater than $100K   35,427     55,755   -36.5 %  
  Time less than $100K   59,452     70,516   -15.7 %  
  Total Short-Term Borrowings   196,538     87,516   124.6 %  
  Bank Term Funding Program        
  Borrowings   131,291       n/m        
  Securities Sold under        
  Repurchase Agreements   65,247     87,516   -25.4 %  
  Shareholders’ Equity   978,384     868,272   12.7 %  
           
  Demand Deposits /        
  Total Deposits   47.4 %   47.2 %    
  Transaction & Savings        
  Deposits / Total Deposits   98.2 %   97.9 %    
           
5. Interest Yields Earned & Rates Paid.        
    (dollars in thousands)  
    Q2’2024  
    Average Income/ Yield (a) /  
    Volume Expense Rate (a)  
  Interest & Loan Fee Income Earned:        
  Total Earning Assets (FTE) $ 6,145,626   $ 69,407   4.50 %  
  Total Loans (FTE)   838,016     11,441   5.49 %  
  Commercial Loans (FTE)   133,605     2,418   7.28 %  
  Commercial Real Estate        
  Loans   487,209     6,014   4.96 %  
  Consumer Loans   217,202     3,009   5.57 %  
  Total Investments (FTE)   4,944,191     53,005   4.27 %  
  Total Debt Securities        
  Available for Sale (FTE)   4,079,896     44,236   4.31 %  
  Corporate Securities   2,090,829     14,366   2.75 %  
  Collateralized Loan        
  Obligations   1,347,475     24,620   7.23 %  
  Agency Mortgage Backed        
  Securities   241,391     1,465   2.43 %  
  Securities of U.S.        
  Government sponsored        
  entities   309,395     2,777   3.59 %  
  Obligations of States and        
  Political Subdivisions        
  (FTE)   72,319     543   3.01 %  
  U.S. Treasury Securities   4,260     54   5.08 %  
  Other Debt Securities        
  Available for Sale (FTE)   14,227     411   11.55 %  
  Total Debt Securities Held to        
  Maturity (FTE)   864,295     8,769   4.06 %  
  Agency Mortgage Backed        
  Securities   70,804     401   2.27 %  
  Corporate Securities   730,978     7,815   4.28 %  
  Obligations of States and        
  Political Subdivisions        
  (FTE)   62,513     553   3.54 %  
  Total Interest-Bearing Cash   363,419     4,961   5.40 %  
           
  Interest Expense Paid:        
  Total Earning Assets   6,145,626     5,307   0.35 %  
  Total Interest-Bearing        
  Liabilities   3,001,786     5,307   0.71 %  
  Total Interest-Bearing        
  Deposits   2,717,597     2,460   0.36 %  
  Interest-Bearing Transaction   981,703     69   0.03 %  
  Savings   1,642,806     2,322   0.57 %  
  Time less than $100K   58,367     49   0.34 %  
  Time greater than $100K   34,721     20   0.23 %  
  Total Short-Term Borrowings   284,189     2,847   4.02 %  
  Bank Term Funding Program        
  Borrowings   200,000     2,692   5.40 %  
  Securities Sold under        
  Repurchase Agreements   84,189     155   0.74 %  
           
  Net Interest Income and        
  Margin (FTE)   $ 64,100   4.15 %  
    Q2’2023  
    Average Income/ Yield (a) /  
    Volume Expense Rate (a)  
  Interest & Loan Fee Income Earned:        
  Total Earning Assets (FTE) $ 6,457,270   $ 70,888   4.38 %  
  Total Loans (FTE)   926,795     11,937   5.17 %  
  Commercial Loans (FTE)   157,975     2,777   7.05 %  
  Commercial Real Estate        
  Loans   491,902     5,732   4.67 %  
  Consumer Loans   276,918     3,428   4.97 %  
  Total Investments (FTE)   5,365,377     56,841   4.22 %  
  Total Debt Securities        
  Available for Sale (FTE)   4,460,339     47,752   4.26 %  
  Corporate Securities   2,210,511     15,456   2.80 %  
  Collateralized Loan        
  Obligations   1,555,328     26,754   6.81 %  
  Agency Mortgage Backed        
  Securities   291,270     1,765   2.42 %  
  Securities of U.S.        
  Government sponsored        
  entities   306,983     2,776   3.62 %  
  Obligations of States and        
  Political Subdivisions        
  (FTE)   82,074     617   3.00 %  
  Other Debt Securities        
  Available for Sale (FTE)   14,173     384   10.84 %  
  Total Debt Securities Held to        
  Maturity (FTE)   905,038     9,089   4.02 %  
  Agency Mortgage Backed        
  Securities   94,960     510   2.15 %  
  Corporate Securities   724,157     7,816   4.32 %  
  Obligations of States and        
  Political Subdivisions        
  (FTE)   85,921     763   3.56 %  
  Total Interest-Bearing Cash   165,098     2,110   5.06 %  
           
  Interest Expense Paid:        
  Total Earning Assets   6,457,270     607   0.04 %  
  Total Interest-Bearing        
  Liabilities   3,144,264     607   0.08 %  
  Total Interest-Bearing        
  Deposits   3,046,185     582   0.08 %  
  Interest-Bearing Transaction   1,159,653     104   0.04 %  
  Savings   1,763,410     396   0.09 %  
  Time less than $100K   69,221     51   0.30 %  
  Time greater than $100K   53,901     31   0.23 %  
  Total Short-Term Borrowings   98,079     25   0.10 %  
  Securities Sold under        
  Repurchase Agreements   98,079     25   0.10 %  
           
  Net Interest Income and        
  Margin (FTE)   $ 70,281   4.34 %  
           
6. Noninterest Income.        
    (dollars in thousands except per-share amounts)
        %  
    Q2’2024 Q2’2023 Change Q1’2024
  Service Charges on Deposit        
  Accounts $ 3,469   $ 3,459   0.3 % $ 3,470  
  Merchant Processing        
  Services   2,733     2,869   -4.7 %   2,507  
  Debit Card Fees   1,706     1,759   -3.0 %   1,543  
  Trust Fees   811     810   0.1 %   794  
  ATM Processing Fees   540     702   -23.1 %   591  
  Other Service Fees   450     458   -1.7 %   438  
  Securities Losses       (125 ) n/m      
  Other Noninterest Income   791     768   3.0 %   754  
  Total Noninterest Income $ 10,500   $ 10,700   -1.9 % $ 10,097  
           
  Operating Ratios:        
  Total Revenue (FTE) $ 74,600   $ 80,981   -7.9 % $ 76,191  
  Noninterest Income /        
  Revenue (FTE)   14.1 %   13.2 %     13.3 %
  Service Charges /        
  Avg. Deposits (a)   0.27 %   0.24 %     0.26 %
  Total Revenue (FTE) Per        
  Avg. Common Share (a) $ 11.25   $ 12.19   -7.7 % $ 11.49  
           
        %  
    6/30’24YTD 6/30’23YTD Change  
  Service Charges on Deposit        
  Accounts $ 6,939   $ 6,924   0.2 %  
  Merchant Processing        
  Services   5,240     5,506   -4.8 %  
  Debit Card Fees   3,249     3,401   -4.5 %  
  Trust Fees   1,605     1,575   1.9 %  
  ATM Processing Fees   1,131     1,356   -16.6 %  
  Other Service Fees   888     857   3.6 %  
  Securities Losses       (125 ) n/m    
  Other Noninterest Income   1,545     1,755   -12.0 %  
    Total Noninterest Income $ 20,597   $ 21,249   -3.1 %  
           
  Operating Ratios:        
  Total Revenue (FTE) $ 150,791   $ 161,092   -6.4 %  
  Noninterest Income /        
  Revenue (FTE)   13.7 %   13.2 %    
  Service Charges /        
  Avg. Deposits (a)   0.26 %   0.24 %    
  Total Revenue (FTE) Per        
  Avg. Common Share (a) $ 11.37   $ 12.14   -6.4 %  
           
7. Noninterest Expense.        
    (dollars in thousands)
        %  
    Q2’2024 Q2’2023 Change Q1’2024
           
  Salaries and Related Benefits $ 12,483   $ 11,828   5.5 % $ 12,586  
  Occupancy and Equipment   5,158     5,012   2.9 %   5,040  
  Outsourced Data Processing   2,511     2,488   0.9 %   2,536  
  Limited Partnership        
  Operating Losses   1,440     1,440   0.0 %   1,440  
  Professional Fees   362     485   -25.4 %   402  
  Courier Service   686     611   12.3 %   649  
  Other Noninterest Expense   3,490     3,975   -12.2 %   3,446  
  Total Noninterest Expense $ 26,130   $ 25,839   1.1 % $ 26,099  
           
  Operating Ratios:        
  Noninterest Expense /        
  Avg. Earning Assets (a)   1.71 %   1.60 %     1.72 %
  Noninterest Expense /        
  Revenues (FTE)   35.0 %   31.9 %     34.3 %
           
        %  
    6/30’24YTD 6/30’23YTD Change  
           
  Salaries and Related Benefits $ 25,069   $ 23,895   4.9 %  
  Occupancy and Equipment   10,198     10,497   -2.8 %  
  Outsourced Data Processing   5,047     4,932   2.3 %  
  Limited Partnership        
  Operating Losses   2,880     2,874   0.2 %  
  Professional Fees   764     961   -20.5 %  
  Courier Service   1,335     1,226   8.9 %  
  Other Noninterest Expense   6,936     7,664   -9.5 %  
  Total Noninterest Expense $ 52,229   $ 52,049   0.3 %  
           
  Operating Ratios:        
  Noninterest Expense /        
  Avg. Earning Assets (a)   1.71 %   1.60 %    
  Noninterest Expense /        
  Revenues (FTE)   34.6 %   32.3 %    
           
8. Allowance for Credit Losses.        
    (dollars in thousands)
        %  
    Q2’2024 Q2’2023 Change Q1’2024
           
  Average Total Loans $ 838,016   $ 926,795   -9.6 % $ 853,553  
           
  Beginning of Period        
  Allowance for Credit        
  Losses on Loans (ACLL) $ 15,879   $ 19,509   -18.6 % $ 16,867  
  Provision for        
  Credit Losses         n/m     300  
  Net ACLL Recoveries        
  (Losses)   73     (1,029 ) -107.1 %   (1,288 )
  End of Period ACLL $ 15,952   $ 18,480   -13.7 % $ 15,879  
           
  Gross ACLL Recoveries /        
  Gross ACLL Losses   105 %   38 %     36 %
  Net ACLL (Recoveries)        
  Losses /        
  Avg. Total Loans (a)   -0.04 %   0.45 %     0.61 %
           
        %  
    6/30’24YTD 6/30’23YTD Change  
           
  Average Total Loans $ 845,785   $ 936,277   -9.7 %  
           
  Beginning of Period ACLL $ 16,867   $ 20,284   -16.8 %  
  Provision (Reversal        
  of Provision) for        
  Credit Losses (1)   300     (1,550 ) n/m    
  Net ACLL Losses   (1,215 )   (254 ) 378.3 %  
  End of Period ACLL $ 15,952   $ 18,480   -13.7 %  
           
  Gross ACLL Recoveries /        
  Gross ACLL Losses   66 %   93 %    
  Net ACLL Losses /        
  Avg. Total Loans (a)   0.29 %   0.05 %    
           
    (dollars in thousands)
        %  
    6/30/24 6/30/23 Change 3/31/24
  Allowance for Credit Losses        
  on Loans $ 15,952   $ 18,480   -13.7 % $ 15,879  
  Allowance for Credit Losses        
  on Held to Maturity        
  Securities   1     1   0.0 %   1  
  Total Allowance for Credit        
  Losses $ 15,953   $ 18,481   -13.7 % $ 15,880  
           
  Allowance for Unfunded        
  Credit Commitments $ 201   $ 201   0.0 % $ 201  
           
9. Credit Quality.        
    (dollars in thousands)
        %  
    6/30/24 6/30/23 Change 3/31/24
  Nonperforming Loans:        
  Nonperforming Nonaccrual        
  Loans $ 971   $ 192   405.7 % $ 957  
  Performing Nonaccrual        
  Loans       5   n/m     1  
  Total Nonaccrual Loans   971     197   392.9 %   958  
  Accruing Loans 90+ Days        
  Past Due   580     656   -11.6 %   525  
  Total Nonperforming Loans $ 1,551   $ 853   81.8 % $ 1,483  
           
  Total Loans Outstanding $ 831,842   $ 919,583   -9.5 % $ 844,677  
           
  Total Assets   6,312,145     6,582,740   -4.1 %   6,464,685  
           
  Loans:        
  Allowance for Credit Losses        
  on Loans $ 15,952   $ 18,480   -13.7 % $ 15,879  
  Allowance for Credit Losses        
    on Loans / Loans   1.92 %   2.01 %     1.88 %
  Nonperforming Loans /        
  Total Loans   0.19 %   0.09 %     0.18 %
           
10. Liquidity.        
           
  At June 30, 2024, the Company had $486,124 thousand in cash balances. During the twelve months ending June 30, 2025, the Company expects to receive $309,000 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 June 30, 2024, the Company’s debt securities which qualify as collateral for borrowing totaled $3,693,459 thousand. In the ordinary course of business, the Company pledges debt securities as collateral for certain depository customers; at June 30, 2024, the Company had pledged $759,338 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 June 30, 2024, the Company had pledged $1,067,510 thousand in debt securities at the Federal Reserve Bank. During the six months ended June 30, 2024, the Company’s average borrowings from the Federal Reserve Bank and other correspondent banks were $200,000 thousand and $-0- thousand, respectively, and at June 30, 2024, the Company’s borrowings from the Federal Reserve Bank and other correspondent banks were $200,000 thousand and $-0- thousand, respectively. At June 30, 2024, the Company had access to borrowing from the Federal Reserve up to $867,510 thousand based on collateral pledged at June 30, 2024. At June 30, 2024, the Company’s estimated unpledged collateral qualifying debt securities totaled $1,462,966 thousand. Debt securities eligible as collateral are shown at market value unless otherwise noted.
           
          (in thousands)
          6/30/24
  Debt Securities Eligible as        
  Collateral:        
  Corporate Securities       $ 2,549,866  
  Collateralized Loan        
  Obligations rated AAA         405,308  
  Obligations of States and        
  Political Subdivisions         130,006  
  Agency Mortgage Backed        
  Securities         286,771  
  Securities of U.S. Government        
  Sponsored Entities         116,688  
  Securities of U.S. Government        
  Sponsored Entities (Par Value)         200,000  
  U.S. Treasury Securities         4,820  
  Total Debt Securities Eligible        
  as Collateral       $ 3,693,459  
           
  Debt Securities Pledged        
  as Collateral:        
  Deposits by Public Entities       ($759,338 )
  Securities Sold under        
  Repurchase Agreements         (394,283 )
  Debt Securities Pledged            
  at the Federal Reserve Bank         ($1,067,510 )
  Other         (9,362 )
  Total Debt Securities Pledged        
  as Collateral       ($2,230,493 )
           
  Estimated Debt Securities        
  Available to Pledge       $ 1,462,966  
           
11. Capital.        
    (in thousands, except per-share amounts)
        %  
    6/30/24 6/30/23 Change 3/31/24
           
  Shareholders’ Equity $ 815,600   $ 651,862   25.1 % $ 791,691  
  Total Assets   6,312,145     6,582,740   -4.1 %   6,464,685  
  Shareholders’ Equity/        
  Total Assets   12.92 %   9.90 %     12.25 %
  Shareholders’ Equity/        
  Total Loans   98.05 %   70.89 %     93.73 %
  Tangible Common Equity        
  Ratio   11.21 %   8.20 %     10.56 %
  Common Shares Outstanding   26,683     26,648   0.1 %   26,678  
  Common Equity Per Share $ 30.57   $ 24.46   25.0 % $ 29.68  
  Market Value Per Common        
  Share   48.53     38.30   26.7 %   48.88  
           
    (shares in thousands)
        %  
    Q2’2024 Q2’2023 Change Q1’2024
  Share Repurchase Programs:        
  Total Shares Repurchased /        
  Canceled         n/m     4  
  Average Repurchase Price $   $   n/m   $ 45.58  
  Net Shares Issued   (5 )     n/m     (7 )
           
        %  
    6/30’24YTD 6/30’23YTD Change  
           
  Total Shares Repurchased /        
  Canceled   4     274   n/m    
  Average Repurchase Price $ 45.58   $ 50.11   n/m    
  Net Shares (Issued)          
  Repurchased   (12 )   265   n/m    
           
12. Period-End Balance Sheets.        
    (unaudited, dollars in thousands)
        %  
    6/30/24 6/30/23 Change 3/31/24
  Assets:        
  Cash and Due from Banks $ 486,124   $ 266,187   82.6 % $ 434,250  
           
  Debt Securities Available for        
  Sale:        
  Corporate Securities   1,855,618     1,901,504   -2.4 %   1,879,980  
  Collateralized Loan        
  Obligations   1,255,110     1,514,962   -17.2 %   1,420,584  
  Agency Mortgage Backed        
  Securities   222,806     259,190   -14.0 %   225,564  
  Securities of U.S.        
  Government sponsored        
  entities   291,206     291,402   -0.1 %   292,583  
  Obligations of States and        
  Political Subdivisions   69,758     79,400   -12.1 %   70,466  
  U.S. Treasury Securities   4,820       n/m      
  Total Debt Securities        
  Available for Sale   3,699,318     4,046,458   -8.6 %   3,889,177  
           
  Debt Securities Held to        
  Maturity:        
  Agency Mortgage Backed        
  Securities   67,777     91,141   -25.6 %   73,023  
  Corporate Securities   732,049     725,252   0.9 %   730,350  
  Obligations of States and        
  Political Subdivisions (2)   61,042     83,963   -27.3 %   65,352  
  Total Debt Securities        
  Held to Maturity (2)   860,868     900,356   -4.4 %   868,725  
           
  Loans   831,842     919,583   -9.5 %   844,677  
  Allowance For Credit Losses        
  on Loans   (15,952 )   (18,480 ) -13.7 %   (15,879 )
  Total Loans, net   815,890     901,103   -9.5 %   828,798  
           
  Premises and Equipment, net   26,275     27,908   -5.9 %   26,458  
  Identifiable Intangibles, net   234     463   -49.5 %   291  
  Goodwill   121,673     121,673   0.0 %   121,673  
  Other Assets   301,763     318,592   -5.3 %   295,313  
           
  Total Assets $ 6,312,145   $ 6,582,740   -4.1 % $ 6,464,685  
           
  Liabilities and Shareholders’        
  Equity:        
  Deposits:        
  Noninterest-Bearing $ 2,459,467   $ 2,721,046   -9.6 % $ 2,514,161  
  Interest-Bearing Transaction   936,186     1,133,006   -17.4 %   1,066,038  
  Savings   1,646,781     1,735,083   -5.1 %   1,681,921  
  Time   89,006     116,792   -23.8 %   92,805  
  Total Deposits   5,131,440     5,705,927   -10.1 %   5,354,925  
           
  Bank Term Funding        
  Program Borrowings   200,000       -27.4 %   200,000  
  Securities Sold under        
  Repurchase Agreements   100,167     138,005   n/m     50,334  
  Total Short-Term        
  Borrowed Funds   300,167     138,005   117.5 %   250,334  
           
  Other Liabilities   64,938     86,946   -25.3 %   67,735  
  Total Liabilities   5,496,545     5,930,878   -7.3 %   5,672,994  
           
  Shareholders’ Equity:        
  Common Equity:        
  Paid-In Capital   474,618     471,510   0.7 %   473,989  
  Accumulated Other        
  Comprehensive Loss   (197,300 )   (252,043 ) -21.7 %   (196,857 )
  Retained Earnings   538,282     432,395   24.5 %   514,559  
  Total Shareholders’ Equity   815,600     651,862   25.1 %   791,691  
           
  Total Liabilities and        
  Shareholders’ Equity $ 6,312,145   $ 6,582,740   -4.1 % $ 6,464,685  
           
13. Income Statements.        
    (unaudited, in thousands except per-share amounts)
        %  
    Q2’2024 Q2’2023 Change Q1’2024
  Interest and Loan Fee Income:        
  Loans $ 11,354   $ 11,845   -4.1 % $ 11,324  
  Equity Securities   175     152   15.1 %   174  
  Debt Securities Available        
  for Sale   43,927     47,452   -7.4 %   46,243  
  Debt Securities Held to        
  Maturity   8,655     8,930   -3.1 %   8,722  
  Interest-Bearing Cash   4,961     2,110   135.1 %   2,283  
  Total Interest and Loan        
  Fee Income   69,072     70,489   -2.0 %   68,746  
           
  Interest Expense:        
  Transaction Deposits   69     104   -33.7 %   119  
  Savings Deposits   2,322     396   486.4 %   1,917  
  Time Deposits   69     82   -15.9 %   70  
  Bank Term Funding Program        
  Borrowings   2,692       n/m     843  
  Securities Sold under        
  Repurchase Agreements   155     25   509.0 %   52  
  Total Interest Expense   5,307     607   774.3 %   3,001  
           
  Net Interest and Loan        
  Fee Income   63,765     69,882   -8.8 %   65,745  
           
  Provision for Credit Losses         n/m     300  
           
  Noninterest Income:        
           
  Service Charges on Deposit        
  Accounts   3,469     3,459   0.3 %   3,470  
  Merchant Processing        
  Services   2,733     2,869   -4.7 %   2,507  
  Debit Card Fees   1,706     1,759   -3.0 %   1,543  
  Trust Fees   811     810   0.1 %   794  
  ATM Processing Fees   540     702   -23.1 %   591  
  Other Service Fees   450     458   -1.7 %   438  
  Securities Losses       (125 ) n/m      
  Other Noninterest Income   791     768   3.0 %   754  
  Total Noninterest Income   10,500     10,700   -1.9 %   10,097  
           
  Noninterest Expense:        
  Salaries and Related Benefits   12,483     11,828   5.5 %   12,586  
  Occupancy and Equipment   5,158     5,012   2.9 %   5,040  
  Outsourced Data Processing   2,511     2,488   0.9 %   2,536  
  Limited Partnership        
  Operating Losses   1,440     1,440   0.0 %   1,440  
  Professional Fees   362     485   -25.4 %   402  
  Courier Service   686     611   12.3 %   649  
  Other Noninterest Expense   3,490     3,975   -12.2 %   3,446  
  Total Noninterest Expense   26,130     25,839   1.1 %   26,099  
           
  Income Before Income Taxes   48,135     54,743   -12.1 %   49,443  
  Income Tax Provision   12,673     14,495   -12.6 %   13,026  
  Net Income $ 35,462   $ 40,248   -11.9 % $ 36,417  
           
  Average Common Shares        
  Outstanding   26,680     26,648   0.1 %   26,674  
  Diluted Average Common        
  Shares Outstanding   26,681     26,648   0.1 %   26,675  
           
  Per Common Share Data:        
  Basic Earnings $ 1.33   $ 1.51   -11.9 % $ 1.37  
  Diluted Earnings   1.33     1.51   -11.9 %   1.37  
  Dividends Paid   0.44     0.42   4.8 %   0.44  
           
        %  
    6/30’24YTD 6/30’23YTD Change  
  Interest and Loan Fee Income:        
  Loans $ 22,678   $ 23,585   -3.8 %  
  Equity Securities   349     304   14.8 %  
  Debt Securities Available        
  for sale   90,170     94,262   -4.3 %  
  Debt Securities Held to        
  Maturity   17,377     17,910   -3.0 %  
  Interest-Bearing Cash   7,244     4,052   78.8 %  
  Total Interest and Loan        
  Fee Income   137,818     140,113   -1.6 %  
           
  Interest Expense:        
  Transaction Deposits   188     198   -5.1 %  
  Savings Deposits   4,239     676   527.1 %  
  Time Deposits   139     166   -16.3 %  
  Bank Term Funding Program        
  Borrowings   3,535       n/m    
  Securities Sold under        
  Repurchase Agreements   207     38   444.7 %  
  Total Interest Expense   8,308     1,078   670.7 %  
           
  Net Interest and Loan        
  Fee Income   129,510     139,035   -6.9 %  
           
  Provision (Reversal        
  of Provision) for        
  Credit Losses (1)   300     (1,550 ) n/m    
           
  Noninterest Income:        
           
  Service Charges on Deposit   6,939     6,924   0.2 %  
  Accounts        
  Merchant Processing        
  Services   5,240     5,506   -4.8 %  
  Debit Card Fees   3,249     3,401   -4.5 %  
  Trust Fees   1,605     1,575   1.9 %  
  ATM Processing Fees   1,131     1,356   -16.6 %  
  Other Service Fees   888     857   3.6 %  
  Securities Losses       (125 ) n/m    
  Other Noninterest Income   1,545     1,755   -12.0 %  
  Total Noninterest Income   20,597     21,249   -3.1 %  
           
  Noninterest Expense:        
  Salaries and Related Benefits   25,069     23,895   4.9 %  
  Occupancy and Equipment   10,198     10,497   -2.8 %  
  Outsourced Data Processing   5,047     4,932   2.3 %  
  Limited Partnership        
  Operating Losses   2,880     2,874   0.2 %  
  Professional Fees   764     961   -20.5 %  
  Courier Service   1,335     1,226   8.9 %  
  Other Noninterest Expense   6,936     7,664   -9.5 %  
  Total Noninterest Expense   52,229     52,049   0.3 %  
           
  Income Before Income Taxes   97,578     109,785   -11.1 %  
  Income Tax Provision   25,699     29,086   -11.6 %  
  Net Income $ 71,879   $ 80,699   -10.9 %  
           
  Average Common Shares        
  Outstanding   26,677     26,753   -0.3 %  
  Diluted Average Common        
  Shares Outstanding   26,678     26,756   -0.3 %  
           
  Per Common Share Data:        
  Basic Earnings $ 2.69   $ 3.02   -10.9 %  
  Diluted Earnings   2.69     3.02   -10.9 %  
  Dividends Paid   0.88     0.84   4.8 %  
           
           
  Footnotes and Abbreviations:        
           
  (1) 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.
           
  (2) 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 June 30, 2024, March 31, 2024 and June 30, 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 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        
           


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