SAN RAFAEL, Calif., Oct. 17, 2024 (GLOBE NEWSWIRE) -- Westamerica Bancorporation (NASDAQ:WABC), parent company of Westamerica Bank, generated net income for the third quarter 2024 of $35.1 million and diluted earnings per common share ("EPS") of $1.31, which includes gains from life insurance and sales of other assets equivalent to $0.04 EPS. Third quarter 2024 results compare to second quarter 2024 net income of $35.5 million and EPS of $1.33.

"Westamerica's third quarter 2024 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 quarter; the annualized cost of funding our loan and bond portfolios was 0.37 percent in the quarter. Operating expenses remained well controlled at 35 percent of total revenues in the third quarter 2024. The Company recognized no provision for credit losses in the third quarter 2024. At September 30, 2024, nonperforming assets were stable at $0.9 million and the allowance for credit losses was $15.3 million," said Chairman, President and CEO David Payne. "Third quarter 2024 results generated an annualized 13.7 percent return on average common equity. Shareholders were paid a $0.44 per common share dividend during the third quarter 2024," concluded Payne.

Net interest income on a fully-taxable equivalent (FTE) basis was $62.5 million for the third quarter 2024, compared to $64.1 million for the second quarter 2024. The annualized yield earned on loans, bonds and cash for the third quarter 2024 was 4.45 percent compared to 4.50 percent for the second quarter 2024. The annualized cost of funding the loan and bond portfolios was 0.37 percent for the third quarter 2024, compared to 0.35 percent for the second quarter 2024.

Noninterest income for the third quarter 2024 totaled $11.9 million compared to $10.5 million for the second quarter 2024. Third quarter 2024 results include $1.6 million in gains from life insurance and sales of other assets.

Noninterest expenses for the third quarter 2024 were $26.3 million compared to $26.1 million for the second 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 June 30, 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 October 17, 2024

WESTAMERICA BANCORPORATION

FINANCIAL HIGHLIGHTS

September 30, 2024

1. Net Income Summary.

(in thousands except per-share amounts)

Q3'2024

Q3'2023

Change

Q2'2024

Net Interest and Loan Fee

Income (FTE)

62,465

72,092

-13.4

64,100

Provision for

Credit Losses

400

n/m

Noninterest Income

11,925

11,281

5.7

10,500

Noninterest Expense

26,309

25,650

2.6

26,130

Income Before Taxes (FTE)

48,081

57,323

-16.1

48,470

Income Tax Provision (FTE)

13,024

15,722

-17.2

13,008

Net Income

35,057

41,601

-15.7

35,462

Average Common Shares

Outstanding

26,685

26,648

0.1

26,680

Diluted Average Common

Shares Outstanding

26,686

26,650

0.1

26,681

Operating Ratios:

Basic Earnings Per Common

Share

1.31

1.56

-16.0

1.33

Diluted Earnings Per

Common Share

1.31

1.56

-16.0

1.33

Return On Assets (a)

2.16

2.41

2.18

Return On Common

Equity (a)

13.7

18.3

14.4

Net Interest Margin (FTE) (a)

4.08

4.43

4.15

Efficiency Ratio (FTE)

35.4

30.8

35.0

Dividends Paid Per Common

Share

0.44

0.0

0.44

Common Dividend Payout

Ratio

9/30'24YTD

9/30'23YTD

Change

Net Interest and Loan Fee

Income (FTE)

192,659

211,935

-9.1

Provision (Reversal

of Provision) for

Credit Losses (1)

300

(1,150

)

n/m

Noninterest Income

32,522

32,530

-0.0

Noninterest Expense

78,538

77,699

1.1

Income Before Taxes (FTE)

146,343

167,916

-12.8

Income Tax Provision (FTE)

39,407

45,616

-13.6

Net Income

106,936

122,300

-12.6

Average Common Shares

Outstanding

26,680

26,718

-0.1

Diluted Average Common

Shares Outstanding

26,681

26,721

-0.1

Operating Ratios:

Basic Earnings Per Common

Share

4.01

4.58

-12.4

Diluted Earnings Per

Common Share

4.01

4.58

-12.4

Return On Assets (a)

2.19

2.36

Return On Common

Equity (a)

14.4

18.6

Net Interest Margin (FTE) (a)

4.18

4.32

Efficiency Ratio (FTE)

34.9

31.8

Dividends Paid Per Common

Share

1.32

1.28

3.1

Common Dividend Payout

Ratio

2. Net Interest Income.

(dollars in thousands)

Q3'2024

Q3'2023

Change

Q2'2024

Interest and Loan Fee

Income (FTE)

68,110

73,225

-7.0

69,407

Interest Expense

5,645

1,133

398.2

5,307

Net Interest and Loan Fee

Income (FTE)

62,465

72,092

-13.4

64,100

Average Earning Assets

6,062,174

6,438,411

-5.8

6,145,626

Average Interest-Bearing

Liabilities

2,950,093

3,118,632

-5.4

3,001,786

Yield on Earning Assets

(FTE) (a)

4.45

4.50

Cost of Funds (a)

0.37

0.07

0.35

Net Interest Margin (FTE) (a)

4.08

4.43

4.15

Interest Expense /

Interest-Bearing

Liabilities (a)

0.76

0.14

0.71

Net Interest Spread (FTE) (a)

3.69

4.36

3.79

9/30'24YTD

9/30'23YTD

Change

Interest and Loan Fee

Income (FTE)

206,612

214,146

-3.5

Interest Expense

13,953

2,211

531.1

Net Interest and Loan Fee

Income (FTE)

192,659

211,935

-9.1

Average Earning Assets

6,108,885

6,519,448

-6.3

Average Interest-Bearing

Liabilities

2,969,078

3,182,734

-6.7

Yield on Earning Assets

(FTE) (a)

4.48

4.36

Cost of Funds (a)

0.30

0.04

Net Interest Margin (FTE) (a)

4.18

4.32

Interest Expense /

Interest-Bearing

Liabilities (a)

0.63

0.09

Net Interest Spread (FTE) (a)

3.85

4.27

3. Loans & Other Earning Assets.

(average volume, dollars in thousands)

Q3'2024

Q3'2023

Change

Q2'2024

Total Assets

6,461,843

6,847,691

-5.6

6,549,203

Total Earning Assets

6,062,174

6,438,411

-5.8

6,145,626

Total Loans

831,418

903,854

-8.0

838,016

Commercial Loans

136,160

151,431

-10.1

133,605

Commercial Real Estate

Loans

493,272

493,072

0.0

487,209

Consumer Loans

201,986

259,351

-22.1

217,202

Total Investment Securities

4,736,024

5,247,118

-9.7

4,944,191

Debt Securities Available for

Sale

3,881,678

4,353,794

-10.8

4,079,896

Debt Securities Held to

Maturity

854,346

893,324

-4.4

864,295

Total Interest-Bearing Cash

494,732

287,439

72.1

363,419

Loans / Deposits

16.3

15.8

16.1

9/30'24YTD

9/30'23YTD

Change

Total Assets

6,512,138

6,940,897

-6.2

Total Earning Assets

6,108,885

6,519,448

-6.3

Total Loans

840,961

925,351

-9.1

Commercial Loans

134,402

158,204

-15.0

Commercial Real Estate

Loans

489,836

492,702

-0.6

Consumer Loans

216,723

274,445

-21.0

Total Investment Securities

4,925,557

5,385,986

-8.5

Debt Securities Available for

Sale

4,061,358

4,482,376

-9.4

Debt Securities Held to

Maturity

864,199

903,610

-4.4

Total Interest-Bearing Cash

342,367

208,111

64.5

Loans / Deposits

16.1

15.8

4. Deposits, Other Interest-Bearing Liabilities & Equity.

(average volume, dollars in thousands)

Q3'2024

Q3'2023

Change

Q2'2024

Total Deposits

5,092,244

5,722,817

-11.0

5,202,620

Noninterest Demand

2,425,646

2,721,358

-10.9

2,485,023

Interest-Bearing Transaction

937,694

1,149,483

-18.4

981,703

Savings

1,639,997

1,741,994

-5.9

1,642,806

Time greater than $100K

32,815

43,073

-23.8

34,721

Time less than $100K

56,092

66,909

-16.2

58,367

Total Short-Term Borrowings

283,495

117,173

141.9

284,189

Bank Term Funding Program

Borrowings

167,391

n/m

200,000

Securities Sold under

Repurchase Agreements

116,104

117,173

-0.9

84,189

Shareholders' Equity

1,016,642

902,300

12.7

990,927

Demand Deposits /

Total Deposits

47.6

47.8

Transaction & Savings

Deposits / Total Deposits

98.3

98.1

98.2

9/30'24YTD

9/30'23YTD

Change

Total Deposits

5,224,158

5,859,506

-10.8

Noninterest Demand

2,480,815

2,774,282

-10.6

Interest-Bearing Transaction

992,363

1,180,551

-15.9

Savings

1,658,106

1,783,891

-7.1

Time greater than $100K

34,550

51,481

-32.9

Time less than $100K

58,324

69,301

-15.8

Total Short-Term Borrowings

225,735

97,510

131.5

Bank Term Funding Program

Borrowings

143,412

n/m

Securities Sold under

Repurchase Agreements

82,323

97,510

-15.6

Shareholders' Equity

991,229

879,740

12.7

Demand Deposits /

Total Deposits

47.5

47.3

Transaction & Savings

Deposits / Total Deposits

98.2

97.9

5. Interest Yields Earned & Rates Paid.

(dollars in thousands)

Q3'2024

Average

Income/

Yield (a) /

Volume

Expense

Rate (a)

Interest & Loan Fee Income Earned:

Total Earning Assets (FTE)

6,062,174

68,110

4.45

Total Loans (FTE)

831,418

11,526

5.52

Commercial Loans (FTE)

136,160

2,393

7.00

Commercial Real Estate

Loans

493,272

6,308

5.09

Consumer Loans

201,986

2,825

5.57

Total Investments (FTE)

4,736,024

49,822

4.17

Total Debt Securities

Available for Sale (FTE)

3,881,678

41,133

4.19

Corporate Securities

2,074,145

14,268

2.75

Collateralized Loan

Obligations

1,166,189

21,459

7.20

Agency Mortgage Backed

Securities

244,994

1,638

2.68

Securities of U.S.

Government sponsored

entities

310,138

2,777

3.58

Obligations of States and

Political Subdivisions

(FTE)

67,141

518

3.08

U.S. Treasury Securities

4,844

5.13

Other Debt Securities

Available for Sale (FTE)

14,227

411

11.55

Total Debt Securities Held to

Maturity (FTE)

854,346

8,689

4.07

Agency Mortgage Backed

Securities

65,545

376

2.29

Corporate Securities

732,689

7,815

4.27

Obligations of States and

Political Subdivisions

(FTE)

56,112

498

3.55

Total Interest-Bearing Cash

494,732

6,762

5.35

Interest Expense Paid:

Total Earning Assets

6,062,174

5,645

0.37

Total Interest-Bearing

Liabilities

2,950,093

5,645

0.76

Total Interest-Bearing

Deposits

2,666,598

3,113

0.46

Interest-Bearing Transaction

937,694

0.02

Savings

1,639,997

2,990

0.73

Time less than $100K

56,092

0.33

Time greater than $100K

32,815

0.36

Total Short-Term Borrowings

283,495

2,532

3.54

Bank Term Funding Program

Borrowings

167,391

2,278

5.40

Securities Sold under

Repurchase Agreements

116,104

254

0.87

Net Interest Income and

Margin (FTE)

62,465

4.08

Q3'2023

Average

Income/

Yield (a) /

Volume

Expense

Rate (a)

Interest & Loan 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

0.31

Time greater than $100K

43,073

0.24

Total Short-Term Borrowings

117,173

0.13

Securities Sold under

Repurchase Agreements

117,173

0.13

Net Interest Income and

Margin (FTE)

72,092

4.43

6. Noninterest Income.

(dollars in thousands except per-share amounts)

Q3'2024

Q3'2023

Change

Q2'2024

Service Charges on Deposit

Accounts

3,585

3,705

-3.2

3,469

Merchant Processing

Services

2,474

2,911

-15.0

2,733

Debit Card Fees

1,702

1,717

-0.9

1,706

Trust Fees

846

783

8.0

811

ATM Processing Fees

533

640

-16.7

540

Other Service Fees

454

463

-1.9

450

Life Insurance Gains

202

278

n/m

Other Noninterest Income

2,129

784

171.6

791

Total Noninterest Income

11,925

11,281

5.7

10,500

Operating Ratios:

Total Revenue (FTE)

74,390

83,373

-10.8

74,600

Noninterest Income /

Revenue (FTE)

16.0

13.5

14.1

Service Charges /

Avg. Deposits (a)

0.28

0.26

0.27

Total Revenue (FTE) Per

Avg. Common Share (a)

11.09

12.41

-10.7

11.25

9/30'24YTD

9/30'23YTD

Change

Service Charges on Deposit

Accounts

10,524

10,629

-1.0

Merchant Processing

Services

7,714

8,417

-8.4

Debit Card Fees

4,951

5,118

-3.3

Trust Fees

2,451

2,358

3.9

ATM Processing Fees

1,664

1,996

-16.6

Other Service Fees

1,342

1,320

1.7

Life Insurance Gains

202

278

n/m

Securities Losses

(125

)

n/m

Other Noninterest Income

3,674

2,539

44.7

Total Noninterest Income

32,522

32,530

-0.0

Operating Ratios:

Total Revenue (FTE)

225,181

244,465

-7.9

Noninterest Income /

Revenue (FTE)

14.4

13.3

Service Charges /

Avg. Deposits (a)

0.27

0.24

Total Revenue (FTE) Per

Avg. Common Share (a)

11.27

12.23

-7.8

7. Noninterest Expense.

(dollars in thousands)

Q3'2024

Q3'2023

Change

Q2'2024

Salaries and Related Benefits

12,762

11,820

8.0

12,483

Occupancy and Equipment

5,256

5,065

3.8

5,158

Outsourced Data Processing

2,614

2,473

5.7

2,511

Limited Partnership

Operating Losses

1,210

1,440

-16.0

1,440

Professional Fees

337

401

-16.0

362

Courier Service

682

745

-8.5

686

Other Noninterest Expense

3,448

3,706

-7.0

3,490

Total Noninterest Expense

26,309

25,650

2.6

26,130

Operating Ratios:

Noninterest Expense /

Avg. Earning Assets (a)

1.73

1.58

1.71

Noninterest Expense /

Revenues (FTE)

35.4

30.8

35.0

9/30'24YTD

9/30'23YTD

Change

Salaries and Related Benefits

37,831

35,715

5.9

Occupancy and Equipment

15,454

15,562

-0.7

Outsourced Data Processing

7,661

7,405

3.5

Limited Partnership

Operating Losses

4,090

4,314

-5.2

Professional Fees

1,101

1,362

-19.2

Courier Service

2,017

1,971

2.3

Other Noninterest Expense

10,384

11,370

-8.7

Total Noninterest Expense

78,538

77,699

1.1

Operating Ratios:

Noninterest Expense /

Avg. Earning Assets (a)

1.72

1.59

Noninterest Expense /

Revenues (FTE)

34.9

31.8

8. Allowance for Credit Losses.

(dollars in thousands)

Q3'2024

Q3'2023

Change

Q2'2024

Average Total Loans

831,418

903,854

-8.0

838,016

Beginning of Period

Allowance for Credit

Losses on Loans (ACLL)

15,952

18,480

-13.7

15,879

Provision for

Credit Losses

400

n/m

Net ACLL (Losses)

Recoveries

(634

)

(1,136

)

-44.2

End of Period ACLL

15,318

17,744

-13.7

15,952

Gross ACLL Recoveries /

Gross ACLL Losses

105

Net ACLL (Losses)

Recoveries /

Avg. Total Loans (a)

-0.30

-0.50

0.04

9/30'24YTD

9/30'23YTD

Change

Average Total Loans

840,961

925,351

-9.1

Beginning of Period ACLL

16,867

20,284

-16.8

Provision (Reversal

of Provision) for

Credit Losses (1)

300

(1,150

)

n/m

Net ACLL Losses

(1,849

)

(1,390

)

33.0

End of Period ACLL

15,318

17,744

-13.7

Gross ACLL Recoveries /

Gross ACLL Losses

Net ACLL Losses /

Avg. Total Loans (a)

-0.29

-0.20

(dollars in thousands)

9/30/24

9/30/23

Change

6/30/24

Allowance for Credit Losses

on Loans

15,318

17,744

-13.7

15,952

Allowance for Credit Losses

on Held to Maturity

Securities

0.0

Total Allowance for Credit

Losses

15,319

17,745

-13.7

15,953

Allowance for Unfunded

Credit Commitments

201

0.0

201

9. Credit Quality.

(dollars in thousands)

9/30/24

9/30/23

Change

6/30/24

Nonperforming Loans:

Nonperforming Nonaccrual

Loans

252

205

22.9

971

Performing Nonaccrual

Loans

n/m

Total Nonaccrual Loans

252

209

20.6

971

Accruing Loans 90+ Days

Past Due

667

1,029

-35.2

580

Total Nonperforming Loans

919

1,238

-25.8

1,551

Total Loans Outstanding

833,967

885,850

-5.9

831,842

Total Assets

6,161,143

6,567,288

-6.2

6,312,145

Loans:

Allowance for Credit Losses

on Loans

15,318

17,744

-13.7

15,952

Allowance for Credit Losses

on Loans / Loans

1.84

2.00

1.92

Nonperforming Loans /

Total Loans

0.11

0.14

0.19

10. Liquidity.

At September 30, 2024, the Company had $502,945 thousand in cash balances. During the twelve months ending September 30, 2025, the Company expects to receive $321,000 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, 2024, the Company's debt securities which qualify as collateral for borrowing totaled $3,696,256 thousand. In the ordinary course of business, the Company pledges debt securities as collateral for certain depository customers; at September 30, 2024, the Company had pledged $764,404 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, 2024, the Company had pledged $815,919 thousand in debt securities at the Federal Reserve Bank. During the nine months ended September 30, 2024, the Company's average borrowings from the Federal Reserve Bank and other correspondent banks were $143,412 thousand and $-0- thousand, respectively, and at September 30, 2024, the Company had no borrowings from the Federal Reserve Bank or other correspondent banks. At September 30, 2024, the Company had access to borrowing from the Federal Reserve up to $815,919 thousand based on collateral pledged at September 30, 2024. At September 30, 2024, the Company's estimated unpledged collateral qualifying debt securities totaled $1,663,673 thousand. Debt securities eligible as collateral are shown at market value.

(in thousands)

9/30/24

Debt Securities Eligible as

Collateral:

Corporate Securities

2,625,616

Collateralized Loan

Obligations rated AAA

356,221

Obligations of States and

Political Subdivisions

117,521

Agency Mortgage Backed

Securities

288,390

Securities of U.S. Government

Sponsored Entities

303,609

U.S. Treasury Securities

4,899

Total Debt Securities Eligible

as Collateral

3,696,256

Debt Securities Pledged

as Collateral:

Deposits by Public Entities

764,404

)

Securities Sold under

Repurchase Agreements

(442,940

)

Debt Securities Pledged

at the Federal Reserve Bank

(815,919

)

Other

(9,320

)

Total Debt Securities Pledged

as Collateral

2,032,583

)

Estimated Debt Securities

Available to Pledge

1,663,673

11. Capital.

(in thousands, except per-share amounts)

9/30/24

9/30/23

Change

6/30/24

Shareholders' Equity

909,040

648,423

40.2

815,600

Total Assets

6,161,143

6,567,288

-6.2

6,312,145

Shareholders' Equity/

Total Assets

14.75

9.87

12.92

Shareholders' Equity/

Total Loans

109.00

73.20

98.05

Tangible Common Equity

Ratio

13.03

8.17

11.21

Common Shares Outstanding

26,686

26,649

0.1

26,683

Common Equity Per Share

34.06

24.33

40.0

30.57

Market Value Per Common

Share

49.42

43.25

14.3

48.53

(shares in thousands)

Q3'2024

Q3'2023

Change

Q2'2024

Share issuances (Retirements):

Total Shares Retired

n/m

Average Retirement Price

n/m

Net Shares Issued

)

n/m

)

9/30'24YTD

9/30'23YTD

Change

Total Shares Retired

274

n/m

Average Retirement Price

45.58

50.11

n/m

Net Shares (Issued) Retired

(15

)

264

n/m

12. Period-End Balance Sheets.

(unaudited, dollars in thousands)

9/30/24

9/30/23

Change

6/30/24

Assets:

Cash and Due from Banks

502,945

420,550

19.6

486,124

Debt Securities Available for

Sale:

Corporate Securities

1,901,617

1,814,424

4.8

1,855,618

Collateralized Loan

Obligations

1,078,920

1,503,078

-28.2

1,255,110

Agency Mortgage Backed

Securities

227,565

239,728

-5.1

222,806

Securities of U.S.

Government sponsored

entities

303,609

279,364

8.7

291,206

Obligations of States and

Political Subdivisions

63,876

69,639

-8.3

69,758

U.S. Treasury Securities

4,899

n/m

4,820

Total Debt Securities

Available for Sale

3,580,486

3,906,233

-8.3

3,699,318

Debt Securities Held to

Maturity:

Agency Mortgage Backed

Securities

62,745

84,347

-25.6

67,777

Corporate Securities

733,748

726,951

0.9

732,049

Obligations of States and

Political Subdivisions (2)

53,768

77,558

-30.7

61,042

Total Debt Securities

Held to Maturity (2)

850,261

888,856

-4.3

860,868

Loans

833,967

885,850

-5.9

831,842

Allowance For Credit Losses

on Loans

(15,318

)

(17,744

)

-13.7

(15,952

)

Total Loans, net

818,649

868,106

-5.7

815,890

Premises and Equipment, net

26,129

27,490

-5.0

26,275

Identifiable Intangibles, net

178

404

-55.8

234

Goodwill

121,673

0.0

121,673

Other Assets

260,822

333,976

-21.9

301,763

Total Assets

6,161,143

6,567,288

-6.2

6,312,145

Liabilities and Shareholders'

Equity:

Deposits:

Noninterest-Bearing

2,375,958

2,723,403

-12.8

2,459,467

Interest-Bearing Transaction

925,455

1,138,220

-18.7

936,186

Savings

1,677,332

1,732,849

-3.2

1,646,781

Time

86,305

104,541

-17.4

89,006

Total Deposits

5,065,050

5,699,013

-11.1

5,131,440

Bank Term Funding

Program Borrowings

n/m

200,000

Securities Sold under

Repurchase Agreements

132,487

115,341

14.9

100,167

Total Short-Term

Borrowed Funds

132,487

115,341

14.9

300,167

Other Liabilities

54,566

104,511

-47.8

64,938

Total Liabilities

5,252,103

5,918,865

-11.3

5,496,545

Shareholders' Equity:

Common Equity:

Paid-In Capital

475,096

471,862

0.7

474,618

Accumulated Other

Comprehensive Loss

(127,653

)

(285,709

)

-55.3

(197,300

)

Retained Earnings

561,597

462,270

21.5

538,282

Total Shareholders' Equity

909,040

648,423

40.2

815,600

Total Liabilities and

Shareholders' Equity

6,161,143

6,567,288

-6.2

6,312,145

13. Income Statements.

(unaudited, in thousands except per-share amounts)

Q3'2024

Q3'2023

Change

Q2'2024

Interest and Loan Fee Income:

Loans

11,441

11,925

-4.1

11,354

Equity Securities

175

152

15.1

175

Debt Securities Available

for Sale

40,829

47,994

-14.9

43,927

Debt Securities Held to

Maturity

8,587

8,848

-2.9

8,655

Interest-Bearing Cash

6,762

3,929

72.1

4,961

Total Interest and Loan

Fee Income

67,794

72,848

-6.9

69,072

Interest Expense:

Transaction Deposits

131

-64.1

Savings Deposits

2,990

886

237.5

2,322

Time Deposits

-2.6

Bank Term Funding Program

Borrowings

2,278

n/m

2,692

Securities Sold under

Repurchase Agreements

254

565.8

155

Total Interest Expense

5,645

1,133

398.2

5,307

Net Interest and Loan

Fee Income

62,149

71,715

-13.3

63,765

Provision for Credit Losses

400

n/m

Noninterest Income:

Service Charges on Deposit

Accounts

3,585

3,705

-3.2

3,469

Merchant Processing

Services

2,474

2,911

-15.0

2,733

Debit Card Fees

1,702

1,717

-0.9

1,706

Trust Fees

846

783

8.0

811

ATM Processing Fees

533

640

-16.7

540

Other Service Fees

454

463

-1.9

450

Life Insurance Gains

202

278

n/m

Other Noninterest Income

2,129

784

171.6

791

Total Noninterest Income

11,925

11,281

5.7

10,500

Noninterest Expense:

Salaries and Related Benefits

12,762

11,820

8.0

12,483

Occupancy and Equipment

5,256

5,065

3.8

5,158

Outsourced Data Processing

2,614

2,473

5.7

2,511

Limited Partnership

Operating Losses

1,210

1,440

-16.0

1,440

Professional Fees

337

401

-16.0

362

Courier Service

682

745

-8.5

686

Other Noninterest Expense

3,448

3,706

-7.0

3,490

Total Noninterest Expense

26,309

25,650

2.6

26,130

Income Before Income Taxes

47,765

56,946

-16.1

48,135

Income Tax Provision

12,708

15,345

-17.2

12,673

Net Income

35,057

41,601

-15.7

35,462

Average Common Shares

Outstanding

26,685

26,648

0.1

26,680

Diluted Average Common

Shares Outstanding

26,686

26,650

0.1

26,681

Per Common Share Data:

Basic Earnings

1.31

1.56

-16.0

1.33

Diluted Earnings

1.31

1.56

-16.0

1.33

Dividends Paid

0.44

0.0

0.44

9/30'24YTD

9/30'23YTD

Change

Interest and Loan Fee Income:

Loans

34,119

35,510

-3.9

Equity Securities

524

456

14.9

Debt Securities Available

for sale

130,999

142,256

-7.9

Debt Securities Held to

Maturity

25,964

26,758

-3.0

Interest-Bearing Cash

14,006

7,981

75.5

Total Interest and Loan

Fee Income

205,612

212,961

-3.5

Interest Expense:

Transaction Deposits

235

329

-28.6

Savings Deposits

7,229

1,562

362.8

Time Deposits

215

244

-11.9

Bank Term Funding Program

Borrowings

5,813

n/m

Securities Sold under

Repurchase Agreements

461

506.6

Total Interest Expense

13,953

2,211

531.1

Net Interest and Loan

Fee Income

191,659

210,750

-9.1

Provision (Reversal

of Provision) for

Credit Losses (1)

300

(1,150

)

n/m

Noninterest Income:

Service Charges on Deposit

10,524

10,629

-1.0

Accounts

Merchant Processing

Services

7,714

8,417

-8.4

Debit Card Fees

4,951

5,118

-3.3

Trust Fees

2,451

2,358

3.9

ATM Processing Fees

1,664

1,996

-16.6

Other Service Fees

1,342

1,320

1.7

Life Insurance Gains

202

278

n/m

Securities Losses

(125

)

n/m

Other Noninterest Income

3,674

2,539

44.7

Total Noninterest Income

32,522

32,530

-0.0

Noninterest Expense:

Salaries and Related Benefits

37,831

35,715

5.9

Occupancy and Equipment

15,454

15,562

-0.7

Outsourced Data Processing

7,661

7,405

3.5

Limited Partnership

Operating Losses

4,090

4,314

-5.2

Professional Fees

1,101

1,362

-19.2

Courier Service

2,017

1,971

2.3

Other Noninterest Expense

10,384

11,370

-8.7

Total Noninterest Expense

78,538

77,699

1.1

Income Before Income Taxes

145,343

166,731

-12.8

Income Tax Provision

38,407

44,431

-13.6

Net Income

106,936

122,300

-12.6

Average Common Shares

Outstanding

26,680

26,718

-0.1

Diluted Average Common

Shares Outstanding

26,681

26,721

-0.1

Per Common Share Data:

Basic Earnings

4.01

4.58

-12.4

Diluted Earnings

4.01

4.58

-12.4

Dividends Paid

1.32

1.28

3.1

Footnotes and Abbreviations:

(1) A recovery in excess of principal charged off on the 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 September 30, 2024, June 30, 2024 and September 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