Westamerica Bancorporation (Nasdaq: WABC), parent company of
Westamerica Bank, generated net income for the second quarter 2023
of $40.2 million and diluted earnings per common share ("EPS") of
$1.51, which represents the highest second quarter results in
Company history. Second quarter 2023 results compare to net income
for first quarter 2023 of $40.5 million and EPS of $1.51; the first
quarter 2023 included a $1.6 million reversal of provision for
credit losses, which increased EPS $0.04.
"Westamerica’s second quarter 2023 results benefited from the
Company’s valuable low-cost deposit base; the annualized cost of
funding our loan and bond portfolios was 0.04 percent in the second
quarter 2023, compared to 0.03 percent in the prior quarter. The
Company’s customer deposits and shareholders’ equity fully funded
our interest earning assets during the quarter; there was no
borrowing from the Federal Reserve Bank or correspondent banks. The
second quarter 2023 also benefited from higher yields on
variable-rate assets. Operating expenses were well controlled and
credit quality remained stable with nonperforming assets of $853
thousand at June 30, 2023,” said Chairman, President and CEO David
Payne. “Second quarter 2023 results generated an annualized 18.4
percent return on average common equity. Shareholders were paid a
$0.42 per common share dividend during the second quarter 2023,”
concluded Payne.
Net interest income on a fully-taxable equivalent (FTE) basis
was $70.3 million for the second quarter 2023, compared to $69.6
million for the first quarter 2023. The annualized yield (FTE)
earned on loans, bonds and cash for the second quarter 2023 was
4.38 percent, up from 4.21 percent for the first quarter 2023. The
annualized cost of funding the loan and bond portfolios was 0.04
percent for the second quarter 2023 and 0.03 percent for the first
quarter 2023. Variable rate assets at June 30, 2023 included $1.5
billion in collateralized loan obligations for which interest rates
reset quarterly.
Noninterest income for the second quarter 2023 totaled $10.7
million compared to $10.5 million for the first quarter 2023.
Noninterest expenses for the second quarter 2023 were $25.8
million compared to $26.2 million for the first quarter 2023; the
decline in noninterest expenses is primarily due to declines in
seasonal payroll taxes and occupancy and equipment expenses.
Westamerica Bancorporation’s wholly owned subsidiary Westamerica
Bank, operates commercial banking and trust offices throughout
Northern and Central California.
Westamerica Bancorporation1108 Fifth
Avenue, San Rafael, CA 94901Robert A. Thorson – SVP & Chief
Financial Officer707-863-6840investments@westamerica.com
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 March 31, 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.
|
WESTAMERICA BANCORPORATION |
|
|
|
|
|
FINANCIAL HIGHLIGHTS |
|
|
|
|
|
June 30, 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
1. Net Income Summary. |
|
|
|
|
|
|
|
(in thousands except per-share amounts) |
|
|
|
|
|
% |
|
|
|
|
Q2'2023 |
Q2'2022 |
Change |
Q1'2023 |
|
|
|
|
|
|
|
|
|
Net Interest and Fee Income (FTE) |
$ |
70,281 |
|
$ |
48,033 |
|
46.3 |
% |
$ |
69,562 |
|
|
|
Reversal of Provision for Credit Losses (2) |
|
- |
|
|
- |
|
n/m |
|
(1,550 |
) |
|
|
Noninterest Income |
|
10,700 |
|
|
11,264 |
|
-5.0 |
% |
|
10,549 |
|
|
|
Noninterest Expense |
|
25,839 |
|
|
24,629 |
|
4.9 |
% |
|
26,210 |
|
|
|
Income Before Taxes (FTE) |
|
55,142 |
|
|
34,668 |
|
59.1 |
% |
|
55,451 |
|
|
|
Income Tax Provision (FTE) |
|
14,894 |
|
|
9,354 |
|
59.2 |
% |
|
15,000 |
|
|
|
Net Income |
$ |
40,248 |
|
$ |
25,314 |
|
59.0 |
% |
$ |
40,451 |
|
|
|
|
|
|
|
|
|
|
Average Common Shares Outstanding |
|
26,648 |
|
|
26,889 |
|
-0.9 |
% |
|
26,859 |
|
|
|
Diluted Average Common Shares Outstanding |
|
26,648 |
|
|
26,901 |
|
-0.9 |
% |
|
26,866 |
|
|
|
|
|
|
|
|
|
|
Operating Ratios: |
|
|
|
|
|
|
Basic Earnings Per Common Share |
$ |
1.51 |
|
$ |
0.94 |
|
60.6 |
% |
$ |
1.51 |
|
|
|
Diluted Earnings Per Common Share |
|
1.51 |
|
|
0.94 |
|
60.6 |
% |
|
1.51 |
|
|
|
Return On Assets (a) |
|
2.35 |
% |
|
1.37 |
% |
|
|
2.31 |
% |
|
|
Return On Common Equity (a) |
|
18.4 |
% |
|
12.9 |
% |
|
|
19.1 |
% |
|
|
Net Interest Margin (FTE) (a) |
|
4.34 |
% |
|
2.74 |
% |
|
|
4.18 |
% |
|
|
Efficiency Ratio (FTE) |
|
31.9 |
% |
|
41.5 |
% |
|
|
32.7 |
% |
|
|
|
|
|
|
|
|
|
Dividends Paid Per Common Share |
$ |
0.42 |
|
$ |
0.42 |
|
0.0 |
% |
$ |
0.42 |
|
|
|
Common Dividend Payout Ratio |
|
28 |
% |
|
45 |
% |
|
|
28 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
% |
|
|
|
|
6/30'23YTD |
6/30'22YTD |
Change |
|
|
|
|
|
|
|
|
|
|
Net Interest and Fee Income (FTE) |
$ |
139,843 |
|
$ |
91,840 |
|
52.3 |
% |
|
|
|
Reversal of Provision for Credit Losses (2) |
|
(1,550 |
) |
|
- |
|
n/m |
|
|
|
Noninterest Income (1) |
|
21,249 |
|
|
22,840 |
|
-7.0 |
% |
|
|
|
Noninterest Expense |
|
52,049 |
|
|
49,504 |
|
5.1 |
% |
|
|
|
Income Before Taxes (FTE) |
|
110,593 |
|
|
65,176 |
|
69.7 |
% |
|
|
|
Income Tax Provision (FTE) |
|
29,894 |
|
|
17,246 |
|
73.3 |
% |
|
|
|
Net Income |
$ |
80,699 |
|
$ |
47,930 |
|
68.4 |
% |
|
|
|
|
|
|
|
|
|
|
Average Common Shares Outstanding |
|
26,753 |
|
|
26,880 |
|
-0.5 |
% |
|
|
|
Diluted Average Common
Shares Outstanding |
|
26,756 |
|
|
26,893 |
|
-0.5 |
% |
|
|
|
|
|
|
|
|
|
|
Operating Ratios: |
|
|
|
|
|
|
Basic Earnings Per Common Share |
$ |
3.02 |
|
$ |
1.78 |
|
69.7 |
% |
|
|
|
Diluted Earnings Per Common Share |
|
3.02 |
|
|
1.78 |
|
69.7 |
% |
|
|
|
Return On Assets (a) |
|
2.33 |
% |
|
1.30 |
% |
|
|
|
|
Return On Common Equity (a) |
|
18.7 |
% |
|
12.4 |
% |
|
|
|
|
Net Interest Margin (FTE) (a) |
|
4.26 |
% |
|
2.63 |
% |
|
|
|
|
Efficiency Ratio (FTE) |
|
32.3 |
% |
|
43.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
Dividends Paid Per Common Share |
$ |
0.84 |
|
$ |
0.84 |
|
0.0 |
% |
|
|
|
Common Dividend Payout Ratio |
|
28 |
% |
|
47 |
% |
|
|
|
|
|
|
|
|
|
|
2. Net Interest Income. |
|
|
|
|
|
|
|
(dollars in thousands) |
|
|
|
|
|
% |
|
|
|
|
Q2'2023 |
Q2'2022 |
Change |
Q1'2023 |
|
|
|
|
|
|
|
|
|
Interest and Fee Income (FTE) |
$ |
70,888 |
|
$ |
48,516 |
|
46.1 |
% |
$ |
70,033 |
|
|
|
Interest Expense |
|
607 |
|
|
483 |
|
25.7 |
% |
|
471 |
|
|
|
Net Interest and Fee Income (FTE) |
$ |
70,281 |
|
$ |
48,033 |
|
46.3 |
% |
$ |
69,562 |
|
|
|
|
|
|
|
|
|
|
Average Earning Assets |
$ |
6,457,270 |
|
$ |
7,000,862 |
|
-7.8 |
% |
$ |
6,665,156 |
|
|
|
Average Interest- Bearing Liabilities |
|
3,144,264 |
|
|
3,549,140 |
|
-11.4 |
% |
|
3,287,158 |
|
|
|
|
|
|
|
|
|
|
Yield on Earning Assets (FTE) (a) |
|
4.38 |
% |
|
2.77 |
% |
|
|
4.21 |
% |
|
|
Cost of Funds (a) |
|
0.04 |
% |
|
0.03 |
% |
|
|
0.03 |
% |
|
|
Net Interest Margin (FTE) (a) |
|
4.34 |
% |
|
2.74 |
% |
|
|
4.18 |
% |
|
|
Interest Expense/ |
|
|
|
|
|
|
Interest-Bearing Liabilities
(a) |
|
0.08 |
% |
|
0.05 |
% |
|
|
0.06 |
% |
|
|
Net Interest Spread (FTE) (a) |
|
4.30 |
% |
|
2.72 |
% |
|
|
4.15 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
% |
|
|
|
|
6/30'23YTD |
6/30'22YTD |
Change |
|
|
|
|
|
|
|
|
|
|
Interest and Fee Income (FTE) |
$ |
140,921 |
|
$ |
92,803 |
|
51.8 |
% |
|
|
|
Interest Expense |
|
1,078 |
|
|
963 |
|
11.9 |
% |
|
|
|
Net Interest and Fee Income (FTE) |
$ |
139,843 |
|
$ |
91,840 |
|
52.3 |
% |
|
|
|
|
|
|
|
|
|
|
Average Earning Assets |
$ |
6,560,639 |
|
$ |
6,999,556 |
|
-6.3 |
% |
|
|
|
Average Interest- Bearing Liabilities |
|
3,215,316 |
|
|
3,547,651 |
|
-9.4 |
% |
|
|
|
|
|
|
|
|
|
|
Yield on Earning Assets (FTE) (a) |
|
4.29 |
% |
|
2.66 |
% |
|
|
|
|
Cost of Funds (a) |
|
0.03 |
% |
|
0.03 |
% |
|
|
|
|
Net Interest Margin (FTE) (a) |
|
4.26 |
% |
|
2.63 |
% |
|
|
|
|
Interest Expense/ |
|
|
|
|
|
|
Interest-Bearing Liabilities
(a) |
|
0.07 |
% |
|
0.05 |
% |
|
|
|
|
Net Interest Spread (FTE) (a) |
|
4.22 |
% |
|
2.61 |
% |
|
|
|
|
|
|
|
|
|
|
3. Loans & Other Earning Assets. |
|
|
|
|
|
|
|
(average volume, dollars in thousands) |
|
|
|
|
|
% |
|
|
|
|
Q2'2023 |
Q2'2022 |
Change |
Q1'2023 |
|
|
|
|
|
|
|
|
|
Total Assets |
$ |
6,865,591 |
|
$ |
7,420,069 |
|
-7.5 |
% |
$ |
7,112,317 |
|
|
|
Total Earning Assets |
|
6,457,270 |
|
|
7,000,862 |
|
-7.8 |
% |
|
6,665,156 |
|
|
|
Total Loans |
|
926,795 |
|
|
1,009,633 |
|
-8.2 |
% |
|
945,864 |
|
|
|
Commercial Loans |
|
157,975 |
|
|
202,585 |
|
-22.0 |
% |
|
165,360 |
|
|
|
Commercial Real Estate Loans |
|
491,902 |
|
|
508,003 |
|
-3.2 |
% |
|
493,132 |
|
|
|
Consumer Loans |
|
276,918 |
|
|
299,045 |
|
-7.4 |
% |
|
287,372 |
|
|
|
Total Investment Securities |
|
5,365,377 |
|
|
5,008,929 |
|
7.1 |
% |
|
5,548,780 |
|
|
|
Debt Securities Available for
Sale |
|
4,460,339 |
|
|
4,721,083 |
|
-5.5 |
% |
|
4,636,098 |
|
|
|
Debt Securities Held to Maturity |
|
905,038 |
|
|
287,846 |
|
214.4 |
% |
|
912,682 |
|
|
|
Total Interest-Bearing Cash |
|
165,098 |
|
|
982,300 |
|
-83.2 |
% |
|
170,512 |
|
|
|
|
|
|
|
|
|
|
Loans/Deposits |
|
16.0 |
% |
|
15.7 |
% |
|
|
15.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
% |
|
|
|
|
6/30'23YTD |
6/30'22YTD |
Change |
|
|
|
|
|
|
|
|
|
|
Total Assets |
$ |
6,988,272 |
|
$ |
7,413,233 |
|
-5.7 |
% |
|
|
|
Total Earning Assets |
|
6,560,639 |
|
|
6,999,556 |
|
-6.3 |
% |
|
|
|
Total Loans |
|
936,277 |
|
|
1,019,623 |
|
-8.2 |
% |
|
|
|
Commercial Loans |
|
161,647 |
|
|
205,228 |
|
-21.2 |
% |
|
|
|
Commercial Real Estate Loans |
|
492,514 |
|
|
515,977 |
|
-4.5 |
% |
|
|
|
Consumer Loans |
|
282,116 |
|
|
298,418 |
|
-5.5 |
% |
|
|
|
Total Investment Securities |
|
5,456,572 |
|
|
4,978,557 |
|
9.6 |
% |
|
|
|
Debt Securities Available for
Sale |
|
4,547,733 |
|
|
4,688,714 |
|
-3.0 |
% |
|
|
|
Debt Securities Held to Maturity |
|
908,839 |
|
|
289,843 |
|
213.6 |
% |
|
|
|
Total Interest-Bearing Cash |
|
167,790 |
|
|
1,001,376 |
|
-83.2 |
% |
|
|
|
|
|
|
|
|
|
|
Loans/Deposits |
|
15.8 |
% |
|
15.9 |
% |
|
|
|
|
|
|
|
|
|
|
4. Deposits, Other Interest-Bearing Liabilities &
Equity. |
|
|
|
|
|
(average volume, dollars in thousands) |
|
|
|
|
|
% |
|
|
|
|
Q2'2023 |
Q2'2022 |
Change |
Q1'2023 |
|
|
|
|
|
|
|
|
|
Total Deposits |
$ |
5,797,504 |
|
$ |
6,424,202 |
|
-9.8 |
% |
$ |
6,061,923 |
|
|
|
Noninterest Demand |
|
2,751,319 |
|
|
2,998,360 |
|
-8.2 |
% |
|
2,851,600 |
|
|
|
Interest-Bearing Transaction |
|
1,159,653 |
|
|
1,298,665 |
|
-10.7 |
% |
|
1,233,439 |
|
|
|
Savings |
|
1,763,410 |
|
|
1,985,325 |
|
-11.2 |
% |
|
1,847,428 |
|
|
|
Time greater than $100K |
|
53,901 |
|
|
63,790 |
|
-15.5 |
% |
|
57,630 |
|
|
|
Time less than $100K |
|
69,221 |
|
|
78,062 |
|
-11.3 |
% |
|
71,826 |
|
|
|
Total Short-Term Borrowings |
|
98,079 |
|
|
123,298 |
|
-20.5 |
% |
|
76,835 |
|
|
|
Shareholders' Equity |
|
877,964 |
|
|
788,078 |
|
11.4 |
% |
|
858,473 |
|
|
|
|
|
|
|
|
|
|
Demand Deposits/ Total Deposits |
|
47.5 |
% |
|
46.7 |
% |
|
|
47.0 |
% |
|
|
Transaction & Savings Deposits / Total
Deposits |
|
97.9 |
% |
|
97.8 |
% |
|
|
97.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
% |
|
|
|
|
6/30'23YTD |
6/30'22YTD |
Change |
|
|
|
|
|
|
|
|
|
|
Total Deposits |
$ |
5,928,983 |
|
$ |
6,408,915 |
|
-7.5 |
% |
|
|
|
Noninterest Demand |
|
2,801,183 |
|
|
3,001,694 |
|
-6.7 |
% |
|
|
|
Interest-Bearing Transaction |
|
1,196,342 |
|
|
1,281,975 |
|
-6.7 |
% |
|
|
|
Savings |
|
1,805,187 |
|
|
1,982,723 |
|
-9.0 |
% |
|
|
|
Time greater than $100K |
|
55,755 |
|
|
63,980 |
|
-12.9 |
% |
|
|
|
Time less than $100K |
|
70,516 |
|
|
78,543 |
|
-10.2 |
% |
|
|
|
Total Short-Term Borrowings |
|
87,516 |
|
|
140,430 |
|
-37.7 |
% |
|
|
|
Shareholders' Equity |
|
868,272 |
|
|
782,184 |
|
11.0 |
% |
|
|
|
|
|
|
|
|
|
|
Demand Deposits/ Total Deposits |
|
47.2 |
% |
|
46.8 |
% |
|
|
|
|
Transaction & Savings Deposits / Total
Deposits |
|
97.9 |
% |
|
97.8 |
% |
|
|
|
|
|
|
|
|
|
|
5. Interest Yields Earned & Rates Paid. |
|
|
|
|
|
|
|
(dollars in thousands) |
|
|
|
|
Q2'2023 |
|
|
|
|
Average |
Income/ |
Yield (a) / |
|
|
|
|
Volume |
Expense |
Rate (a) |
|
|
|
|
|
|
|
|
|
|
Interest & 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 |
% |
|
|
|
|
|
|
|
|
|
|
Net Interest Income and |
|
|
|
|
|
|
Margin (FTE) |
|
$ |
70,281 |
|
4.34 |
% |
|
|
|
|
|
|
|
|
|
|
|
Q2'2022 |
|
|
|
|
Average |
Income/ |
Yield (a) / |
|
|
|
|
Volume |
Expense |
Rate (a) |
|
|
|
|
|
|
|
|
|
|
Interest & Fee Income Earned: |
|
|
|
|
|
|
Total Earning Assets (FTE) |
$ |
7,000,862 |
|
$ |
48,516 |
|
2.77 |
% |
|
|
|
Total Loans (FTE) |
|
1,009,633 |
|
|
12,426 |
|
4.94 |
% |
|
|
|
Commercial Loans
(FTE) |
|
202,585 |
|
|
2,716 |
|
5.38 |
% |
|
|
|
Commercial Real Estate
Loans |
|
508,003 |
|
|
6,192 |
|
4.89 |
% |
|
|
|
Consumer Loans |
|
299,045 |
|
|
3,518 |
|
4.72 |
% |
|
|
|
Total Investments (FTE) |
|
5,008,929 |
|
|
34,088 |
|
2.72 |
% |
|
|
|
Total Debt Securities Available for
Sale (FTE) |
|
4,721,083 |
|
|
32,059 |
|
2.72 |
% |
|
|
|
Corporate
Securities |
|
2,589,490 |
|
|
17,857 |
|
2.76 |
% |
|
|
|
Collateralized Loan
Obligations |
|
1,610,811 |
|
|
10,572 |
|
2.60 |
% |
|
|
|
Agency Mortgage Backed
Securities |
|
357,727 |
|
|
2,049 |
|
2.29 |
% |
|
|
|
Securities OF U.S.
Government sponsored entities |
|
59,892 |
|
|
533 |
|
3.56 |
% |
|
|
|
Obligations of States
and Political Subdivisions (FTE) |
|
88,829 |
|
|
682 |
|
3.07 |
% |
|
|
|
Other Debt Securities
Available for Sale (FTE) |
|
14,334 |
|
|
366 |
|
10.23 |
% |
|
|
|
Total Debt Securities Held to
Maturity (FTE) |
|
287,846 |
|
|
2,029 |
|
2.82 |
% |
|
|
|
Agency Mortgage Backed
Securities |
|
128,319 |
|
|
595 |
|
1.85 |
% |
|
|
|
Corporate
Securities |
|
17,749 |
|
|
202 |
|
4.56 |
% |
|
|
|
Obligations of States
and Political Subdivisions (FTE) |
|
141,778 |
|
|
1,232 |
|
3.48 |
% |
|
|
|
Total Interest-Bearing Cash |
|
982,300 |
|
|
2,002 |
|
0.81 |
% |
|
|
|
|
|
|
|
|
|
|
Interest Expense Paid: |
|
|
|
|
|
|
Total Earning Assets |
|
7,000,862 |
|
|
483 |
|
0.03 |
% |
|
|
|
Total Interest-Bearing
Liabilities |
|
3,549,140 |
|
|
483 |
|
0.05 |
% |
|
|
|
Total Interest-Bearing Deposits |
|
3,425,842 |
|
|
461 |
|
0.05 |
% |
|
|
|
Interest-Bearing
Transaction |
|
1,298,665 |
|
|
91 |
|
0.03 |
% |
|
|
|
Savings |
|
1,985,325 |
|
|
288 |
|
0.06 |
% |
|
|
|
Time less than $100K |
|
78,062 |
|
|
42 |
|
0.22 |
% |
|
|
|
Time greater than
$100K |
|
63,790 |
|
|
40 |
|
0.25 |
% |
|
|
|
Total Short-Term Borrowings |
|
123,298 |
|
|
22 |
|
0.07 |
% |
|
|
|
|
|
|
|
|
|
|
Net Interest Income and |
|
|
|
|
|
|
Margin (FTE) |
|
$ |
48,033 |
|
2.74 |
% |
|
|
|
|
|
|
|
|
|
6. Noninterest Income. |
|
|
|
|
|
|
|
(dollars in thousands except per-share
amounts) |
|
|
|
|
|
% |
|
|
|
|
Q2'2023 |
Q2'2022 |
Change |
Q1'2023 |
|
|
|
|
|
|
|
|
|
Service Charges on Deposit Accounts |
$ |
3,459 |
|
$ |
3,687 |
|
-6.2 |
% |
$ |
3,465 |
|
|
|
Merchant Processing Services |
|
2,869 |
|
|
3,374 |
|
-15.0 |
% |
|
2,637 |
|
|
|
Debit Card Fees |
|
1,759 |
|
|
1,709 |
|
2.9 |
% |
|
1,642 |
|
|
|
Trust Fees |
|
810 |
|
|
809 |
|
0.1 |
% |
|
765 |
|
|
|
ATM Processing Fees |
|
702 |
|
|
469 |
|
49.7 |
% |
|
654 |
|
|
|
Other Service Fees |
|
458 |
|
|
480 |
|
-4.6 |
% |
|
399 |
|
|
|
Financial Services Commissions |
|
103 |
|
|
118 |
|
-12.7 |
% |
|
89 |
|
|
|
Securities Losses |
|
(125 |
) |
|
- |
|
n/m |
|
- |
|
|
|
Other Noninterest Income |
|
665 |
|
|
618 |
|
7.6 |
% |
|
898 |
|
|
|
Total Noninterest Income |
$ |
10,700 |
|
$ |
11,264 |
|
-5.0 |
% |
$ |
10,549 |
|
|
|
|
|
|
|
|
|
|
Operating Ratios: |
|
|
|
|
|
|
Total Revenue (FTE) |
$ |
80,981 |
|
$ |
59,297 |
|
36.6 |
% |
$ |
80,111 |
|
|
|
Noninterest Income/Revenue (FTE) |
|
13.2 |
% |
|
19.0 |
% |
|
|
13.2 |
% |
|
|
Service Charges/Avg. Deposits (a) |
|
0.24 |
% |
|
0.23 |
% |
|
|
0.23 |
% |
|
|
Total Revenue (FTE) Per Avg. |
|
|
|
|
|
|
Common Share (a) |
$ |
12.19 |
|
$ |
8.85 |
|
37.8 |
% |
$ |
12.10 |
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|
|
|
|
6/30'23YTD |
6/30'22YTD |
Change |
|
|
|
|
|
|
|
|
|
|
Service Charges on Deposit Accounts |
$ |
6,924 |
|
$ |
7,269 |
|
-4.7 |
% |
|
|
|
Merchant Processing Services |
|
5,506 |
|
|
5,997 |
|
-8.2 |
% |
|
|
|
Debit Card Fees (1) |
|
3,401 |
|
|
4,581 |
|
-25.8 |
% |
|
|
|
Trust Fees |
|
1,575 |
|
|
1,652 |
|
-4.7 |
% |
|
|
|
ATM Processing Fees |
|
1,356 |
|
|
920 |
|
47.4 |
% |
|
|
|
Other Service Fees |
|
857 |
|
|
929 |
|
-7.8 |
% |
|
|
|
Financial Services Commissions |
|
192 |
|
|
235 |
|
-18.3 |
% |
|
|
|
Securities Losses |
|
(125 |
) |
|
- |
|
n/m |
|
|
|
Other Noninterest Income |
|
1,563 |
|
|
1,257 |
|
24.3 |
% |
|
|
|
Total Noninterest Income |
$ |
21,249 |
|
$ |
22,840 |
|
-7.0 |
% |
|
|
|
|
|
|
|
|
|
|
Operating Ratios: |
|
|
|
|
|
|
Total Revenue (FTE) |
$ |
161,092 |
|
$ |
114,680 |
|
40.5 |
% |
|
|
|
Noninterest Income/Revenue (FTE) |
|
13.2 |
% |
|
19.9 |
% |
|
|
|
|
Service Charges/Avg. Deposits (a) |
|
0.24 |
% |
|
0.23 |
% |
|
|
|
|
Total Revenue (FTE) Per Avg. |
|
|
|
|
|
|
Common Share (a) |
$ |
12.14 |
|
$ |
8.60 |
|
41.1 |
% |
|
|
|
|
|
|
|
|
|
7. Noninterest Expense. |
|
|
|
|
|
|
|
(dollars in thousands) |
|
|
|
|
|
% |
|
|
|
|
Q2'2023 |
Q2'2022 |
Change |
Q1'2023 |
|
|
|
|
|
|
|
|
|
Salaries & Benefits |
$ |
11,828 |
|
$ |
11,412 |
|
3.6 |
% |
$ |
12,067 |
|
|
|
Occupancy and Equipment |
|
5,012 |
|
|
4,856 |
|
3.2 |
% |
|
5,485 |
|
|
|
Outsourced Data Processing |
|
2,488 |
|
|
2,423 |
|
2.7 |
% |
|
2,444 |
|
|
|
Limited Partnership Operating Losses |
|
1,440 |
|
|
1,431 |
|
0.6 |
% |
|
1,434 |
|
|
|
Professional Fees |
|
485 |
|
|
736 |
|
-34.1 |
% |
|
476 |
|
|
|
Courier Service |
|
611 |
|
|
661 |
|
-7.6 |
% |
|
615 |
|
|
|
Other Noninterest Expense |
|
3,975 |
|
|
3,110 |
|
27.8 |
% |
|
3,689 |
|
|
|
Total Noninterest Expense |
$ |
25,839 |
|
$ |
24,629 |
|
4.9 |
% |
$ |
26,210 |
|
|
|
|
|
|
|
|
|
|
Operating Ratios: |
|
|
|
|
|
|
Noninterest Expense/ Avg. Earning Assets
(a) |
|
1.60 |
% |
|
1.41 |
% |
|
|
1.59 |
% |
|
|
Noninterest Expense/Revenues
(FTE) |
|
31.9 |
% |
|
41.5 |
% |
|
|
32.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
% |
|
|
|
|
6/30'23YTD |
6/30'22YTD |
Change |
|
|
|
|
|
|
|
|
|
|
Salaries & Benefits |
$ |
23,895 |
|
$ |
23,332 |
|
2.4 |
% |
|
|
|
Occupancy and Equipment |
|
10,497 |
|
|
9,602 |
|
9.3 |
% |
|
|
|
Outsourced Data Processing |
|
4,932 |
|
|
4,860 |
|
1.5 |
% |
|
|
|
Limited Partnership Operating Losses |
|
2,874 |
|
|
2,862 |
|
0.4 |
% |
|
|
|
Professional Fees |
|
961 |
|
|
1,472 |
|
-34.7 |
% |
|
|
|
Courier Service |
|
1,226 |
|
|
1,243 |
|
-1.4 |
% |
|
|
|
Other Noninterest Expense |
|
7,664 |
|
|
6,133 |
|
25.0 |
% |
|
|
|
Total Noninterest Expense |
$ |
52,049 |
|
$ |
49,504 |
|
5.1 |
% |
|
|
|
|
|
|
|
|
|
|
Operating Ratios: |
|
|
|
|
|
|
Noninterest Expense/ Avg. Earning Assets
(a) |
|
1.60 |
% |
|
1.43 |
% |
|
|
|
|
Noninterest Expense/Revenues
(FTE) |
|
32.3 |
% |
|
43.2 |
% |
|
|
|
|
|
|
|
|
|
|
8. Allowance for Credit Losses. |
|
|
|
|
|
|
|
(dollars in thousands) |
|
|
|
|
|
% |
|
|
|
|
Q2'2023 |
Q2'2022 |
Change |
Q1'2023 |
|
|
|
|
|
|
|
|
|
Average Total Loans |
$ |
926,795 |
|
$ |
1,009,633 |
|
-8.2 |
% |
$ |
945,864 |
|
|
|
|
|
|
|
|
|
|
Beginning of Period Allowance for |
|
|
|
|
|
|
Credit Losses on Loans (ACLL) |
$ |
19,509 |
|
$ |
22,925 |
|
-14.9 |
% |
$ |
20,284 |
|
|
|
Reversal of Provision for Credit Losses (2) |
|
- |
|
|
- |
|
n/m |
|
(1,550 |
) |
|
|
Net ACLL (Losses) Recoveries |
|
(1,029 |
) |
|
(612 |
) |
68.1 |
% |
|
775 |
|
|
|
End of Period ACLL |
$ |
18,480 |
|
$ |
22,313 |
|
-17.2 |
% |
$ |
19,509 |
|
|
|
|
|
|
|
|
|
|
Gross ACLL Recoveries / Gross ACLL Losses |
|
38 |
% |
|
57 |
% |
|
|
138 |
% |
|
|
|
|
|
|
|
|
|
Net ACLL Losses (Recoveries) / |
|
|
|
|
|
|
Avg. Total Loans (a) |
|
0.45 |
% |
|
0.24 |
% |
|
|
-0.33 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
% |
|
|
|
|
6/30'23YTD |
6/30'22YTD |
Change |
|
|
|
|
|
|
|
|
|
|
Average Total Loans |
$ |
936,277 |
|
$ |
1,019,623 |
|
-8.2 |
% |
|
|
|
|
|
|
|
|
|
|
Beginning of Period ACLL |
$ |
20,284 |
|
$ |
23,514 |
|
-13.7 |
% |
|
|
|
Reversal of Provision for Credit Losses (2) |
|
(1,550 |
) |
|
- |
|
n/m |
|
|
|
Net ACLL Losses |
|
(254 |
) |
|
(1,201 |
) |
-78.9 |
% |
|
|
|
End of Period ACLL |
$ |
18,480 |
|
$ |
22,313 |
|
-17.2 |
% |
|
|
|
|
|
|
|
|
|
|
Gross ACLL Recoveries / Gross ACLL Losses |
|
93 |
% |
|
54 |
% |
|
|
|
|
|
|
|
|
|
|
|
Net ACLL Losses / Avg. Total Loans (a) |
|
0.05 |
% |
|
0.24 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands) |
|
|
|
|
|
% |
|
|
|
|
6/30/23 |
6/30/22 |
Change |
3/31/23 |
|
|
Allowance for Credit Losses on Loans |
$ |
18,480 |
|
$ |
22,313 |
|
-17.2 |
% |
$ |
19,509 |
|
|
|
Allowance for Credit Losses on |
|
|
|
|
|
|
Held to Maturity Securities |
|
1 |
|
|
7 |
|
-85.5 |
% |
|
1 |
|
|
|
Total Allowance for Credit Losses |
$ |
18,481 |
|
$ |
22,320 |
|
-17.2 |
% |
$ |
19,510 |
|
|
|
|
|
|
|
|
|
|
Allowance for Unfunded |
|
|
|
|
|
|
Credit Commitments |
$ |
201 |
|
$ |
201 |
|
0.0 |
% |
$ |
201 |
|
|
|
|
|
|
|
|
|
9. Credit Quality. |
|
|
|
|
|
|
|
(dollars in thousands) |
|
|
|
|
|
% |
|
|
|
|
6/30/23 |
6/30/22 |
Change |
3/31/23 |
|
|
Nonperforming Loans: |
|
|
|
|
|
|
Nonperforming Nonaccrual
Loans |
$ |
192 |
|
$ |
12 |
|
n/m |
$ |
207 |
|
|
|
Performing Nonaccrual Loans |
|
5 |
|
|
235 |
|
-97.9 |
% |
|
7 |
|
|
|
Total Nonaccrual Loans |
|
197 |
|
|
247 |
|
-20.2 |
% |
|
214 |
|
|
|
90+ Days Past Due Accruing Loans |
|
656 |
|
|
614 |
|
6.8 |
% |
|
571 |
|
|
|
Total Nonperforming Loans |
$ |
853 |
|
$ |
861 |
|
-0.9 |
% |
$ |
785 |
|
|
|
|
|
|
|
|
|
|
Total Loans Outstanding |
$ |
919,583 |
|
$ |
999,768 |
|
-8.0 |
% |
$ |
938,628 |
|
|
|
|
|
|
|
|
|
|
Total Assets |
|
6,582,740 |
|
|
7,222,405 |
|
-8.9 |
% |
|
6,700,471 |
|
|
|
|
|
|
|
|
|
|
Loans: |
|
|
|
|
|
|
Allowance for Credit Losses on Loans |
$ |
18,480 |
|
$ |
22,313 |
|
-17.2 |
% |
$ |
19,509 |
|
|
|
Allowance for Credit Losses on Loans / Loans |
|
2.01 |
% |
|
2.23 |
% |
|
|
2.08 |
% |
|
|
Nonperforming Loans/Total Loans |
|
0.09 |
% |
|
0.09 |
% |
|
|
0.08 |
% |
|
|
|
|
|
|
|
|
10. Liquidity. |
|
|
|
|
|
|
|
|
|
|
|
|
|
At June 30, 2023, the Company had $266,187 thousand in cash
balances. During the twelve months ending June 30, 2024, the
Company expects to receive $288,000 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, 2023, the Company’s debt securities
which qualify as collateral for borrowing totaled $3,924,826
thousand. In the ordinary course of business, the Company pledges
debt securities as collateral for certain depository customers; at
June 30, 2023, the Company had pledged $704,822 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, 2023, the
Company’s had pledged $1,000,132 thousand in debt securities at the
Federal Reserve Bank. During the six months ended June 30, 2023,
the Company’s average borrowings from the Federal Reserve Bank and
other correspondent banks were $-0- thousand, and at June 30, 2023,
the Company’s borrowings from the Federal Reserve Bank and other
correspondent banks were $-0- thousand. At June 30, 2023, the
Company’s estimated unpledged collateral qualifying debt securities
totaled $2,072,988 thousand. Debt securities eligible as
collateral are shown in market value unless otherwise
noted. |
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands) |
|
|
|
|
|
|
6/30/23 |
|
|
Debt Securities Eligible as Collateral: |
|
|
|
|
|
|
Corporate Securities |
|
|
|
$ |
2,587,771 |
|
|
|
Collateralized Loan Obligations rated AAA |
|
|
|
|
503,037 |
|
|
|
Obligations of States and Political
Subdivisions |
|
|
|
162,528 |
|
|
|
Agency Mortgage Backed Securities |
|
|
|
|
344,657 |
|
|
|
Securities of U.S. Government Sponsored Entities (Par
Value) |
|
|
326,833 |
|
|
|
Total Debt Securities Eligible as Collateral |
|
|
|
$ |
3,924,826 |
|
|
|
|
|
|
|
|
|
|
Debt Securities Pledged as Collateral: |
|
|
|
|
|
|
Deposits by Public Entities |
|
|
|
($ |
704,822 |
) |
|
|
Short-Term Borrowed Funds (Deposit Sweep) |
|
|
|
(140,765 |
) |
|
|
Other |
|
|
|
|
(6,119 |
) |
|
|
Total Debt Securities Pledged as Collateral |
|
|
|
($ |
851,706 |
) |
|
|
|
|
|
|
|
|
|
Debt Securities Pledged at the Federal Reserve
Bank |
|
|
($ |
1,000,132 |
) |
|
|
|
|
|
|
|
|
|
Estimated Debt Securities Available to Pledge |
|
|
|
$ |
2,072,988 |
|
|
|
|
|
|
|
|
|
11. Capital. |
|
|
|
|
|
|
|
(in thousands, except per-share amounts) |
|
|
|
|
|
% |
|
|
|
|
6/30/23 |
6/30/22 |
Change |
3/31/23 |
|
|
|
|
|
|
|
|
|
Shareholders' Equity |
$ |
651,862 |
|
$ |
617,126 |
|
5.6 |
% |
$ |
642,925 |
|
|
|
Total Assets |
|
6,582,740 |
|
|
7,222,405 |
|
-8.9 |
% |
|
6,700,471 |
|
|
|
Shareholders' Equity/ |
|
|
|
|
|
|
Total Assets |
|
9.90 |
% |
|
8.54 |
% |
|
|
9.60 |
% |
|
|
Shareholders' Equity/ |
|
|
|
|
|
|
Total Loans |
|
70.89 |
% |
|
61.73 |
% |
|
|
68.50 |
% |
|
|
Tangible Common Equity Ratio |
|
8.20 |
% |
|
6.97 |
% |
|
|
7.92 |
% |
|
|
Common Shares Outstanding |
|
26,648 |
|
|
26,896 |
|
-0.9 |
% |
|
26,648 |
|
|
|
Common Equity Per Share |
$ |
24.46 |
|
$ |
22.94 |
|
6.6 |
% |
$ |
24.13 |
|
|
|
Market Value Per Common Share |
|
38.30 |
|
|
55.66 |
|
-31.2 |
% |
|
44.30 |
|
|
|
|
|
|
|
|
|
|
|
(shares in thousands) |
|
|
|
|
|
% |
|
|
|
|
Q2'2023 |
Q2'2022 |
Change |
Q1'2023 |
|
|
Share Repurchase Programs: |
|
|
|
|
|
|
Total Shares Repurchased /
Canceled |
|
- |
|
|
- |
|
n/m |
|
274 |
|
|
|
Average Repurchase Price |
$ |
- |
|
$ |
- |
|
n/m |
$ |
50.11 |
|
|
|
Net Shares (Issued) Repurchased |
|
- |
|
|
(13 |
) |
n/m |
|
265 |
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|
|
|
|
6/30'23YTD |
6/30'22YTD |
Change |
|
|
|
|
|
|
|
|
|
|
Total Shares Repurchased |
|
274 |
|
|
3 |
|
n/m |
|
|
|
Average Repurchase Price |
$ |
50.11 |
|
$ |
58.66 |
|
n/m |
|
|
|
Net Shares Repurchased (Issued) |
|
265 |
|
|
(30 |
) |
n/m |
|
|
|
|
|
|
|
|
|
12. Period-End Balance Sheets. |
|
|
|
|
|
|
|
(unaudited, dollars in thousands) |
|
|
|
|
|
% |
|
|
|
|
6/30/23 |
6/30/22 |
Change |
3/31/23 |
|
|
Assets: |
|
|
|
|
|
|
Cash and Due from Banks |
$ |
266,187 |
|
$ |
753,293 |
|
-64.7 |
% |
$ |
195,202 |
|
|
|
|
|
|
|
|
|
|
Debt Securities Available for
Sale |
|
|
|
|
|
|
Corporate Securities |
|
1,901,504 |
|
|
2,296,853 |
|
-17.2 |
% |
|
2,019,240 |
|
|
|
Collateralized Loan
Obligations |
|
1,514,962 |
|
|
1,601,333 |
|
-5.4 |
% |
|
1,542,377 |
|
|
|
Agency Mortgage Backed
Securities |
|
259,190 |
|
|
331,425 |
|
-21.8 |
% |
|
276,078 |
|
|
|
Securities of U.S. Government
sponsored entities |
|
291,402 |
|
|
290,725 |
|
0.2 |
% |
|
297,140 |
|
|
|
Obligations of States and Political
Subdivisions |
|
79,400 |
|
|
86,676 |
|
-8.4 |
% |
|
82,678 |
|
|
|
Other Debt Securities Available for
Sale |
|
- |
|
|
102 |
|
n/m |
|
- |
|
|
|
Total Debt Securities Available for
Sale |
|
4,046,458 |
|
|
4,607,114 |
|
-12.2 |
% |
|
4,217,513 |
|
|
|
|
|
|
|
|
|
|
Debt Securities Held to Maturity |
|
|
|
|
|
|
Agency Mortgage Backed
Securities |
|
91,141 |
|
|
121,810 |
|
-25.2 |
% |
|
98,006 |
|
|
|
Corporate Securities |
|
725,252 |
|
|
181,316 |
|
300.0 |
% |
|
723,553 |
|
|
|
Obligations of States and Political
Subdivisions (3) |
|
83,963 |
|
|
139,228 |
|
-39.7 |
% |
|
87,760 |
|
|
|
Total Debt Securities Held to Maturity
(3) |
|
900,356 |
|
|
442,354 |
|
103.5 |
% |
|
909,319 |
|
|
|
|
|
|
|
|
|
|
Loans |
|
919,583 |
|
|
999,768 |
|
-8.0 |
% |
|
938,628 |
|
|
|
Allowance For Credit Losses on
Loans |
|
(18,480 |
) |
|
(22,313 |
) |
-17.2 |
% |
|
(19,509 |
) |
|
|
Total Loans, net |
|
901,103 |
|
|
977,455 |
|
-7.8 |
% |
|
919,119 |
|
|
|
|
|
|
|
|
|
|
Premises and Equipment, net |
|
27,908 |
|
|
30,309 |
|
-7.9 |
% |
|
28,331 |
|
|
|
Identifiable Intangibles, net |
|
463 |
|
|
707 |
|
-34.5 |
% |
|
523 |
|
|
|
Goodwill |
|
121,673 |
|
|
121,673 |
|
0.0 |
% |
|
121,673 |
|
|
|
Other Assets |
|
318,592 |
|
|
289,500 |
|
10.0 |
% |
|
308,791 |
|
|
|
|
|
|
|
|
|
|
Total Assets |
$ |
6,582,740 |
|
$ |
7,222,405 |
|
-8.9 |
% |
$ |
6,700,471 |
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity: |
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
Noninterest-Bearing |
$ |
2,721,046 |
|
$ |
2,987,725 |
|
-8.9 |
% |
$ |
2,788,992 |
|
|
|
Interest-Bearing
Transaction |
|
1,133,006 |
|
|
1,303,700 |
|
-13.1 |
% |
|
1,201,356 |
|
|
|
Savings |
|
1,735,083 |
|
|
1,983,713 |
|
-12.5 |
% |
|
1,783,667 |
|
|
|
Time |
|
116,792 |
|
|
140,453 |
|
-16.8 |
% |
|
125,300 |
|
|
|
Total Deposits |
|
5,705,927 |
|
|
6,415,591 |
|
-11.1 |
% |
|
5,899,315 |
|
|
|
|
|
|
|
|
|
|
Short-Term Borrowed Funds |
|
138,005 |
|
|
118,167 |
|
16.8 |
% |
|
83,088 |
|
|
|
Other Liabilities |
|
86,946 |
|
|
71,521 |
|
21.6 |
% |
|
75,143 |
|
|
|
Total Liabilities |
|
5,930,878 |
|
|
6,605,279 |
|
-10.2 |
% |
|
6,057,546 |
|
|
|
|
|
|
|
|
|
|
Shareholders' Equity: |
|
|
|
|
|
|
Common Equity: |
|
|
|
|
|
|
Paid-In Capital |
|
471,510 |
|
|
473,555 |
|
-0.4 |
% |
|
471,159 |
|
|
|
Accumulated Other |
|
|
|
|
|
|
Comprehensive
Loss |
|
(252,043 |
) |
|
(188,025 |
) |
34.0 |
% |
|
(231,573 |
) |
|
|
Retained Earnings |
|
432,395 |
|
|
331,596 |
|
30.4 |
% |
|
403,339 |
|
|
|
Total Shareholders' Equity |
|
651,862 |
|
|
617,126 |
|
5.6 |
% |
|
642,925 |
|
|
|
|
|
|
|
|
|
|
Total Liabilities and |
|
|
|
|
|
|
Shareholders' Equity |
$ |
6,582,740 |
|
$ |
7,222,405 |
|
-8.9 |
% |
$ |
6,700,471 |
|
|
|
|
|
|
|
|
|
13. Income Statements. |
|
|
|
|
|
|
|
(unaudited, in thousands except per-share
amounts) |
|
|
|
|
|
% |
|
|
|
|
Q2'2023 |
Q2'2022 |
Change |
Q1'2023 |
|
|
Interest & Fee Income: |
|
|
|
|
|
|
Loans |
$ |
11,845 |
|
$ |
12,331 |
|
-3.9 |
% |
$ |
11,740 |
|
|
|
Equity Securities |
|
152 |
|
|
129 |
|
17.8 |
% |
|
152 |
|
|
|
Debt Securities Available for Sale |
|
47,452 |
|
|
31,764 |
|
49.4 |
% |
|
46,810 |
|
|
|
Debt Securities Held to Maturity |
|
8,930 |
|
|
1,771 |
|
404.3 |
% |
|
8,980 |
|
|
|
Interest-Bearing Cash |
|
2,110 |
|
|
2,002 |
|
5.4 |
% |
|
1,942 |
|
|
|
Total Interest & Fee Income |
|
70,489 |
|
|
47,997 |
|
46.9 |
% |
|
69,624 |
|
|
|
|
|
|
|
|
|
|
Interest Expense: |
|
|
|
|
|
|
Transaction Deposits |
|
104 |
|
|
91 |
|
14.3 |
% |
|
94 |
|
|
|
Savings Deposits |
|
396 |
|
|
288 |
|
37.5 |
% |
|
280 |
|
|
|
Time Deposits |
|
82 |
|
|
82 |
|
0.0 |
% |
|
84 |
|
|
|
Short-Term Borrowed Funds |
|
25 |
|
|
22 |
|
13.6 |
% |
|
13 |
|
|
|
Total Interest Expense |
|
607 |
|
|
483 |
|
25.7 |
% |
|
471 |
|
|
|
|
|
|
|
|
|
|
Net Interest Income |
|
69,882 |
|
|
47,514 |
|
47.1 |
% |
|
69,153 |
|
|
|
|
|
|
|
|
|
|
Reversal of Provision for Credit Losses (2) |
|
- |
|
|
- |
|
n/m |
|
(1,550 |
) |
|
|
|
|
|
|
|
|
|
Noninterest Income: |
|
|
|
|
|
|
Service Charges on Deposit
Accounts |
|
3,459 |
|
|
3,687 |
|
-6.2 |
% |
|
3,465 |
|
|
|
Merchant Processing Services |
|
2,869 |
|
|
3,374 |
|
-15.0 |
% |
|
2,637 |
|
|
|
Debit Card Fees |
|
1,759 |
|
|
1,709 |
|
2.9 |
% |
|
1,642 |
|
|
|
Trust Fees |
|
810 |
|
|
809 |
|
0.1 |
% |
|
765 |
|
|
|
ATM Processing Fees |
|
702 |
|
|
469 |
|
49.7 |
% |
|
654 |
|
|
|
Other Service Fees |
|
458 |
|
|
480 |
|
-4.6 |
% |
|
399 |
|
|
|
Financial Services Commissions |
|
103 |
|
|
118 |
|
-12.7 |
% |
|
89 |
|
|
|
Securities Losses |
|
(125 |
) |
|
- |
|
n/m |
|
- |
|
|
|
Other Noninterest Income |
|
665 |
|
|
618 |
|
7.6 |
% |
|
898 |
|
|
|
Total Noninterest Income |
|
10,700 |
|
|
11,264 |
|
-5.0 |
% |
|
10,549 |
|
|
|
|
|
|
|
|
|
|
Noninterest Expense: |
|
|
|
|
|
|
Salaries and Related Benefits |
|
11,828 |
|
|
11,412 |
|
3.6 |
% |
|
12,067 |
|
|
|
Occupancy and Equipment |
|
5,012 |
|
|
4,856 |
|
3.2 |
% |
|
5,485 |
|
|
|
Outsourced Data Processing |
|
2,488 |
|
|
2,423 |
|
2.7 |
% |
|
2,444 |
|
|
|
Limited Partnership Operating
Losses |
|
1,440 |
|
|
1,431 |
|
0.6 |
% |
|
1,434 |
|
|
|
Professional Fees |
|
485 |
|
|
736 |
|
-34.1 |
% |
|
476 |
|
|
|
Courier Service |
|
611 |
|
|
661 |
|
-7.6 |
% |
|
615 |
|
|
|
Other Noninterest Expense |
|
3,975 |
|
|
3,110 |
|
27.8 |
% |
|
3,689 |
|
|
|
Total Noninterest Expense |
|
25,839 |
|
|
24,629 |
|
4.9 |
% |
|
26,210 |
|
|
|
|
|
|
|
|
|
|
Income Before Income Taxes |
|
54,743 |
|
|
34,149 |
|
60.3 |
% |
|
55,042 |
|
|
|
Income Tax Provision |
|
14,495 |
|
|
8,835 |
|
64.1 |
% |
|
14,591 |
|
|
|
Net Income |
$ |
40,248 |
|
$ |
25,314 |
|
59.0 |
% |
$ |
40,451 |
|
|
|
|
|
|
|
|
|
|
Average Common Shares Outstanding |
|
26,648 |
|
|
26,889 |
|
-0.9 |
% |
|
26,859 |
|
|
|
Diluted Average Common Shares Outstanding |
|
26,648 |
|
|
26,901 |
|
-0.9 |
% |
|
26,866 |
|
|
|
|
|
|
|
|
|
|
Per Common Share Data: |
|
|
|
|
|
|
Basic Earnings |
$ |
1.51 |
|
$ |
0.94 |
|
60.6 |
% |
$ |
1.51 |
|
|
|
Diluted Earnings |
|
1.51 |
|
|
0.94 |
|
60.6 |
% |
|
1.51 |
|
|
|
Dividends Paid |
|
0.42 |
|
|
0.42 |
|
0.0 |
% |
|
0.42 |
|
|
|
|
|
|
|
|
|
|
|
|
|
% |
|
|
|
|
6/30'23YTD |
6/30'22YTD |
Change |
|
|
|
Interest & Fee Income: |
|
|
|
|
|
|
Loans |
$ |
23,585 |
|
$ |
25,273 |
|
-6.7 |
% |
|
|
|
Equity Securities |
|
304 |
|
|
257 |
|
18.3 |
% |
|
|
|
Debt Securities Available for Sale |
|
94,262 |
|
|
60,330 |
|
56.2 |
% |
|
|
|
Debt Securities Held to Maturity |
|
17,910 |
|
|
3,415 |
|
424.5 |
% |
|
|
|
Interest-Bearing Cash |
|
4,052 |
|
|
2,481 |
|
63.3 |
% |
|
|
|
Total Interest & Fee Income |
|
140,113 |
|
|
91,756 |
|
52.7 |
% |
|
|
|
|
|
|
|
|
|
|
Interest Expense: |
|
|
|
|
|
|
Transaction Deposits |
|
198 |
|
|
179 |
|
10.6 |
% |
|
|
|
Savings Deposits |
|
676 |
|
|
571 |
|
18.4 |
% |
|
|
|
Time Deposits |
|
166 |
|
|
163 |
|
1.8 |
% |
|
|
|
Short-Term Borrowed Funds |
|
38 |
|
|
50 |
|
-24.0 |
% |
|
|
|
Total Interest Expense |
|
1,078 |
|
|
963 |
|
11.9 |
% |
|
|
|
|
|
|
|
|
|
|
Net Interest Income |
|
139,035 |
|
|
90,793 |
|
53.1 |
% |
|
|
|
|
|
|
|
|
|
|
Reversal of Provision for Credit Losses (2) |
|
(1,550 |
) |
|
- |
|
n/m |
|
|
|
|
|
|
|
|
|
|
Noninterest Income: |
|
|
|
|
|
|
Service Charges on Deposit
Accounts |
|
6,924 |
|
|
7,269 |
|
-4.7 |
% |
|
|
|
Merchant Processing Services |
|
5,506 |
|
|
5,997 |
|
-8.2 |
% |
|
|
|
Debit Card Fees (1) |
|
3,401 |
|
|
4,581 |
|
-25.8 |
% |
|
|
|
Trust Fees |
|
1,575 |
|
|
1,652 |
|
-4.7 |
% |
|
|
|
ATM Processing Fees |
|
1,356 |
|
|
920 |
|
47.4 |
% |
|
|
|
Other Service Fees |
|
857 |
|
|
929 |
|
-7.8 |
% |
|
|
|
Financial Services Commissions |
|
192 |
|
|
235 |
|
-18.3 |
% |
|
|
|
Securities Losses |
|
(125 |
) |
|
- |
|
n/m |
|
|
|
Other Operating |
|
1,563 |
|
|
1,257 |
|
24.3 |
% |
|
|
|
Total Noninterest Income |
|
21,249 |
|
|
22,840 |
|
-7.0 |
% |
|
|
|
|
|
|
|
|
|
|
Noninterest Expense: |
|
|
|
|
|
|
Salaries and Related Benefits |
|
23,895 |
|
|
23,332 |
|
2.4 |
% |
|
|
|
Occupancy and Equipment |
|
10,497 |
|
|
9,602 |
|
9.3 |
% |
|
|
|
Outsourced Data Processing |
|
4,932 |
|
|
4,860 |
|
1.5 |
% |
|
|
|
Limited Partnership Operating
Losses |
|
2,874 |
|
|
2,862 |
|
0.4 |
% |
|
|
|
Professional Fees |
|
961 |
|
|
1,472 |
|
-34.7 |
% |
|
|
|
Courier Service |
|
1,226 |
|
|
1,243 |
|
-1.4 |
% |
|
|
|
Other Operating |
|
7,664 |
|
|
6,133 |
|
25.0 |
% |
|
|
|
Total Noninterest Expense |
|
52,049 |
|
|
49,504 |
|
5.1 |
% |
|
|
|
|
|
|
|
|
|
|
Income Before Income Taxes |
|
109,785 |
|
|
64,129 |
|
71.2 |
% |
|
|
|
Income Tax Provision |
|
29,086 |
|
|
16,199 |
|
79.6 |
% |
|
|
|
Net Income |
$ |
80,699 |
|
$ |
47,930 |
|
68.4 |
% |
|
|
|
|
|
|
|
|
|
|
Average Common Shares Outstanding |
|
26,753 |
|
|
26,880 |
|
-0.5 |
% |
|
|
|
Diluted Average Common Shares Outstanding |
|
26,756 |
|
|
26,893 |
|
-0.5 |
% |
|
|
|
|
|
|
|
|
|
|
Per Common Share Data: |
|
|
|
|
|
|
Basic Earnings |
$ |
3.02 |
|
$ |
1.78 |
|
69.7 |
% |
|
|
|
Diluted Earnings |
|
3.02 |
|
|
1.78 |
|
69.7 |
% |
|
|
|
Dividends Paid |
|
0.84 |
|
|
0.84 |
|
0.0 |
% |
|
|
|
|
|
|
|
|
|
|
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 June 30, 2023, March 31,
2023 and $7 thousand at June 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 |
|
|
|
|