Westamerica Bancorporation Reports First Quarter 2024 Financial Results

SAN RAFAEL, Calif., April 18, 2024 (GLOBE NEWSWIRE) — Westamerica Bancorporation (Nasdaq: WABC), parent company of Westamerica Bank, generated net income for the first quarter 2024 of $36.4 million and diluted earnings per common share (“EPS”) of $1.37. First quarter 2024 results compare to fourth quarter 2023 net income of $39.5 million and EPS of $1.48.

“Westamerica’s first quarter 2024 results benefited from the Company’s valuable low-cost deposit base, of which 47 percent was represented by non-interest bearing checking accounts during the quarter; the annualized cost of funding our loan and bond portfolios was 0.20 percent for the first quarter 2024. First quarter 2024 operating expenses remained well controlled at 34 percent of total revenues on a fully-taxable equivalent basis. Our consistent application of conservative loan underwriting practices resulted in relatively stable nonperforming assets totaling $1.5 million,” said Chairman, President and CEO David Payne. “First quarter 2024 results generated an annualized 15.2 percent return on average common equity. Shareholders were paid a $0.44 per common share dividend during the first quarter 2024,” concluded Payne.

Net interest income on a fully-taxable equivalent (FTE) basis was $66.1 million for the first quarter 2024, compared to $69.7 million for the fourth quarter 2023. The annualized yield earned on loans, bonds and cash for the first quarter 2024 was 4.50 percent compared to 4.52 percent for the fourth quarter 2023. The annualized cost of funding the loan and bond portfolios was 0.20 percent for the first quarter 2024 compared to 0.11 percent for the fourth quarter 2023.

The Company provided $300 thousand for the allowance for credit losses on loans in the first quarter 2024. The Allowance for Credit Losses on Loans was $15.9 million at March 31, 2024.

Noninterest income for the first quarter 2024 totaled $10.1 million compared to $11.0 million for the fourth quarter 2023. Debit card fees declined $524 thousand from the fourth quarter 2023 to the first quarter 2024 due to recognition of an annual volume-based incentive in the fourth quarter 2023. Merchant processing services fees declined $356 thousand from the fourth quarter 2023 to the first quarter 2024 due to reduced processing volumes.

Noninterest expenses for the first quarter 2024 were $26.1 million compared to $25.5 million for the fourth quarter 2023. Salaries and related benefits were $430 thousand higher in the first quarter 2024 compared to the fourth quarter 2023 due to seasonally higher payroll taxes, merit increases and higher welfare benefit costs.

The income tax provision (FTE) for the first quarter 2024 was $13.4 million compared to $15.7 million for the fourth quarter 2023. The fourth quarter 2023 includes a $492 thousand increase to reconcile the 2022 income tax provision to the filed 2022 tax returns.

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 & Chief Financial Officer
707-863-6840
[email protected]

FORWARD-LOOKING INFORMATION:

The following appears in accordance with the Private Securities Litigation Reform Act of 1995:

This press release may contain forward-looking statements about the Company, including descriptions of plans or objectives of its management for future operations, products or services, and forecasts of its revenues, earnings or other measures of economic performance. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.”

Forward-looking statements, by their nature, are subject to risks and uncertainties. A number of factors — many of which are beyond the Company’s control — could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. The Company’s most recent reports filed with the Securities and Exchange Commission, including the annual report for the year ended December 31, 2023 filed on Form 10-K and quarterly report for the quarter ended September 30, 2023 filed on Form 10-Q, describe some of these factors, including certain credit, interest rate, operational, liquidity and market risks associated with the Company’s business and operations. Other factors described in these reports include changes in business and economic conditions, competition, fiscal and monetary policies, disintermediation, cyber security risks, legislation including the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, the Sarbanes-Oxley Act of 2002 and the Gramm-Leach-Bliley Act of 1999, and mergers and acquisitions.

Forward-looking statements speak only as of the date they are made. The Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date forward looking statements are made.

  Public Information April 18, 2024  
WESTAMERICA BANCORPORATION            
FINANCIAL HIGHLIGHTS            
March 31, 2024            
               
1. Net Income Summary.            
    (in thousands except per-share amounts)    
        %      
    Q1’2024 Q1’2023 Change Q4’2023    
               
  Net Interest and Fee Income (FTE) $66,094   $69,562   -5.0 % $69,738      
  Provision (Reversal            
  of Provision) for            
  Credit Losses (1)   300     (1,550 ) n/m          
  Noninterest Income   10,097     10,549   -4.3 %   10,992      
  Noninterest Expense   26,099     26,210   -0.4 %   25,517      
  Income Before Taxes (FTE)   49,792     55,451   -10.2 %   55,213      
  Income Tax Provision (FTE)   13,375     15,000   -10.8 %   15,745      
  Net Income $36,417   $40,451   -10.0 % $39,468      
               
  Average Common Shares Outstanding   26,674     26,859   -0.7 %   26,662      
  Diluted Average Common Shares Outstanding   26,675     26,866   -0.7 %   26,664      
               
  Operating Ratios:            
  Basic Earnings Per Common Share $1.37   $1.51   -9.3 % $1.48      
  Diluted Earnings Per Common Share   1.37     1.51   -9.3 %   1.48      
  Return On Assets (a)   2.24 %   2.31 %     2.35 %    
  Return On Common Equity (a)   15.2 %   19.1 %     16.7 %    
  Net Interest Margin (FTE) (a)   4.30 %   4.18 %     4.41 %    
  Efficiency Ratio (FTE)   34.3 %   32.7 %     31.6 %    
               
  Dividends Paid Per Common Share $0.44   $0.42   4.8 % $0.44      
  Common Dividend Payout Ratio   32 %   28 %     30 %    
               
2. Net Interest Income.            
    (dollars in thousands)    
        %      
    Q1’2024 Q1’2023 Change Q4’2023    
               
  Interest and Fee Income (FTE) $69,095   $70,033   -1.3 % $71,417      
  Interest Expense   3,001     471   537.2 %   1,679      
  Net Interest and Fee Income (FTE) $66,094   $69,562   -5.0 % $69,738      
               
  Average Earning Assets $6,119,368   $6,665,156   -8.2 % $6,251,143      
  Average Interest- Bearing Liabilities   2,955,565     3,287,158   -10.1 %   2,966,038      
               
  Yield on Earning Assets (FTE) (a)   4.50 %   4.21 %     4.52 %    
  Cost of Funds (a)   0.20 %   0.03 %     0.11 %    
  Net Interest Margin (FTE) (a)   4.30 %   4.18 %     4.41 %    
  Interest Expense/            
     Interest-Bearing Liabilities (a)   0.41 %   0.06 %     0.22 %    
  Net Interest Spread (FTE) (a)   4.09 %   4.15 %     4.30 %    
               
3. Loans & Other Earning Assets.            
    (average volume, dollars in thousands)    
        %      
    Q1’2024 Q1’2023 Change Q4’2023    
               
  Total Assets $6,525,921   $7,112,317   -8.2 % $6,665,040      
  Total Earning Assets   6,119,368     6,665,156   -8.2 %   6,251,143      
  Total Loans   853,553     945,864   -9.8 %   873,635      
    Commercial Loans   133,422     165,360   -19.3 %   139,535      
    Commercial Real Estate Loans   488,989     493,132   -0.8 %   490,645      
    Consumer Loans   231,142     287,372   -19.6 %   243,455      
  Total Investment Securities   5,098,539     5,548,780   -8.1 %   5,182,557      
    Debt Securities Available for Sale   4,224,474     4,636,098   -8.9 %   4,298,396      
    Debt Securities Held to Maturity   874,065     912,682   -4.2 %   884,161      
  Total Interest-Bearing Cash   167,276     170,512   -1.9 %   194,951      
               
  Loans/Deposits   15.9 %   15.6 %     15.7 %    
               
4. Deposits, Other Interest-Bearing Liabilities & Equity.        
    (average volume, dollars in thousands)    
        %      
    Q1’2024 Q1’2023 Change Q4’2023    
               
  Total Deposits $5,379,060   $6,061,923   -11.3 % $5,573,281      
    Noninterest Demand   2,532,381     2,851,600   -11.2 %   2,672,170      
    Interest-Bearing Transaction   1,058,292     1,233,439   -14.2 %   1,085,864      
    Savings   1,691,716     1,847,428   -8.4 %   1,713,803      
    Time greater than $100K   36,135     57,630   -37.3 %   37,970      
    Time less than $100K   60,536     71,826   -15.7 %   63,474      
  Total Short-Term Borrowings   108,886     76,835   41.7 %   64,927      
    Bank Term Funding Program            
      Borrowings   62,582       n/m          
    Securities Sold under Repurchase            
      Agreements   46,304     76,835   -39.7 %   64,927      
  Shareholders’ Equity   965,840     858,473   12.5 %   938,738      
               
  Demand Deposits/ Total Deposits   47.1 %   47.0 %     47.9 %    
  Transaction & Savings Deposits / Total Deposits   98.2 %   97.9 %     98.2 %    
               
5. Interest Yields Earned & Rates Paid.            
    (dollars in thousands)      
    Q1’2024      
    Average Income/ Yield (a) /      
    Volume Expense Rate (a)      
  Interest & Fee Income Earned:            
    Total Earning Assets (FTE) $6,119,368   $69,095   4.50 %      
    Total Loans (FTE)   853,553     11,413   5.38 %      
      Commercial Loans (FTE)   133,422     2,385   7.19 %      
      Commercial Real Estate Loans   488,989     5,911   4.86 %      
      Consumer Loans   231,142     3,117   5.42 %      
    Total Investments (FTE)   5,098,539     55,399   4.32 %      
      Total Debt Securities Available for Sale (FTE)   4,224,474     46,552   4.38 %      
        Corporate Securities   2,114,861     14,555   2.75 %      
        Collateralized Loan Obligations   1,461,182     26,700   7.23 %      
        Agency Mortgage Backed Securities   252,828     1,552   2.45 %      
        Securities of U.S. Government sponsored            
           entities   308,807     2,777   3.60 %      
        Obligations of States and Political            
           Subdivisions (FTE)   72,569     544   3.00 %      
        Other Debt Securities Available for Sale (FTE)   14,227     424   11.92 %      
      Total Debt Securities Held to Maturity (FTE)   874,065     8,847   4.05 %      
        Agency Mortgage Backed Securities   76,062     427   2.25 %      
        Corporate Securities   729,273     7,816   4.29 %      
        Obligations of States and Political            
           Subdivisions (FTE)   68,730     604   3.52 %      
    Total Interest-Bearing Cash   167,276     2,283   5.40 %      
               
  Interest Expense Paid:            
    Total Earning Assets   6,119,368     3,001   0.20 %      
    Total Interest-Bearing Liabilities   2,955,565     3,001   0.41 %      
    Total Interest-Bearing Deposits   2,846,679     2,106   0.30 %      
      Interest-Bearing Transaction   1,058,292     119   0.05 %      
      Savings   1,691,716     1,917   0.46 %      
      Time less than $100K   60,536     49   0.33 %      
      Time greater than $100K   36,135     21   0.23 %      
    Total Short-Term Borrowings   108,886     895   3.30 %      
    Bank Term Funding Program            
      Borrowings   62,582     843   5.40 %      
    Securities Sold under Repurchase            
      Agreements   46,304     52   0.45 %      
               
  Net Interest Income and            
  Margin (FTE)   $66,094   4.30 %      
               
    Q1’2023      
    Average Income/ Yield (a) /      
    Volume Expense Rate (a)      
  Interest & Fee Income Earned:            
    Total Earning Assets (FTE) $6,665,156   $70,033   4.21 %      
    Total Loans (FTE)   945,864     11,834   5.07 %      
      Commercial Loans (FTE)   165,360     2,760   6.77 %      
      Commercial Real Estate Loans   493,132     5,627   4.63 %      
      Consumer Loans   287,372     3,447   4.86 %      
    Total Investments (FTE)   5,548,780     56,257   4.06 %      
      Total Debt Securities Available for Sale (FTE)   4,636,098     47,114   4.06 %      
        Corporate Securities   2,350,403     16,446   2.80 %      
        Collateralized Loan Obligations   1,577,260     25,006   6.34 %      
        Agency Mortgage Backed Securities   304,863     1,865   2.45 %      
        Securities of U.S. Government sponsored            
           entities   306,441     2,777   3.62 %      
        Obligations of States and Political            
           Subdivisions (FTE)   83,914     637   3.04 %      
        Other Debt Securities Available for Sale (FTE)   13,217     383   11.59 %      
      Total Debt Securities Held to Maturity (FTE)   912,682     9,143   4.01 %      
        Agency Mortgage Backed Securities   101,911     547   2.15 %      
        Corporate Securities   722,452     7,815   4.33 %      
        Obligations of States and Political            
           Subdivisions (FTE)   88,319     781   3.54 %      
    Total Interest-Bearing Cash   170,512     1,942   4.56 %      
               
  Interest Expense Paid:            
    Total Earning Assets   6,665,156     471   0.03 %      
    Total Interest-Bearing Liabilities   3,287,158     471   0.06 %      
    Total Interest-Bearing Deposits   3,210,323     458   0.06 %      
      Interest-Bearing Transaction   1,233,439     94   0.03 %      
      Savings   1,847,428     280   0.06 %      
      Time less than $100K   71,826     50   0.28 %      
      Time greater than $100K   57,630     34   0.24 %      
    Total Short-Term Borrowings   76,835     13   0.07 %      
    Securities Sold under Repurchase            
      Agreements   76,835     13   0.07 %      
               
  Net Interest Income and            
  Margin (FTE)   $69,562   4.18 %      
               
6. Noninterest Income.            
    (dollars in thousands except per-share amounts)    
        %      
    Q1’2024 Q1’2023 Change Q4’2023    
               
  Service Charges on Deposit Accounts $3,470   $3,465   0.2 % $3,540      
  Merchant Processing Services   2,507     2,637   -4.9 %   2,863      
  Debit Card Fees   1,543     1,642   -6.1 %   2,067      
  Trust Fees   794     765   3.8 %   764      
  ATM Processing Fees   591     654   -9.6 %   622      
  Other Service Fees   438     399   9.7 %   445      
  Other Noninterest Income   754     987   -23.6 %   691      
    Total Noninterest Income $10,097   $10,549   -4.3 % $10,992      
               
  Operating Ratios:            
    Total Revenue (FTE) $76,191   $80,111   -4.9 % $80,730      
    Noninterest Income/Revenue (FTE)   13.3 %   13.2 %     13.6 %    
    Service Charges/Avg. Deposits (a)   0.26 %   0.23 %     0.25 %    
    Total Revenue (FTE) Per Avg.            
  Common Share (a) $11.49   $12.10   -5.0 % $12.01      
               
7. Noninterest Expense.            
    (dollars in thousands)    
        %      
    Q1’2024 Q1’2023 Change Q4’2023    
               
  Salaries & Benefits $12,586   $12,067   4.3 % $12,156      
  Occupancy and Equipment   5,040     5,485   -8.1 %   4,958      
  Outsourced Data Processing   2,536     2,444   3.8 %   2,441      
  Limited Partnership Operating Losses   1,440     1,434   0.4 %   1,440      
  Professional Fees   402     476   -15.5 %   389      
  Courier Service   649     615   5.5 %   681      
  Other Noninterest Expense   3,446     3,689   -6.6 %   3,452      
    Total Noninterest Expense $26,099   $26,210   -0.4 % $25,517      
               
  Operating Ratios:            
    Noninterest Expense/ Avg. Earning Assets (a)   1.72 %   1.59 %     1.62 %    
    Noninterest Expense/Revenues (FTE)   34.3 %   32.7 %     31.6 %    
               
8. Allowance for Credit Losses.            
    (dollars in thousands)    
        %      
    Q1’2024 Q1’2023 Change Q4’2023    
               
  Average Total Loans $853,553   $945,864   -9.8 % $873,635      
               
  Beginning of Period Allowance for            
  Credit Losses on Loans (ACLL) $16,867   $20,284   -16.8 % $17,744      
  Provision (Reversal            
  of Provision) for            
  Credit Losses (1)   300     (1,550 ) n/m          
  Net ACLL (Losses) Recoveries   (1,288 )   775   -266.2 %   (877 )    
  End of Period ACLL $15,879   $19,509   -18.6 % $16,867      
               
  Gross ACLL Recoveries / Gross ACLL Losses   36 %   138 %     60 %    
               
  Net ACLL Losses (Recoveries) /            
  Avg. Total Loans (a)   0.61 %   -0.33 %     0.40 %    
               
    (dollars in thousands)    
        %      
    3/31/24 3/31/23 Change 12/31/23    
  Allowance for Credit Losses on Loans $15,879   $19,509   -18.6 % $16,867      
  Allowance for Credit Losses on            
  Held to Maturity Securities   1     1   0.0 %   1      
  Total Allowance for Credit Losses $15,880   $19,510   -18.6 % $16,868      
               
  Allowance for Unfunded            
  Credit Commitments $201   $201   0.0 % $201      
               
9. Credit Quality.            
    (dollars in thousands)    
        %      
    3/31/24 3/31/23 Change 12/31/23    
  Nonperforming Loans:            
     Nonperforming Nonaccrual Loans $957   $207   362.3 % $401      
     Performing Nonaccrual Loans   1     7   -85.7 %   2      
  Total Nonaccrual Loans   958     214   347.7 %   403      
  Accruing Loans 90+ Days Past Due   525     571   -8.1 %   388      
  Total Nonperforming Loans $1,483   $785   88.9 % $791      
               
  Total Loans Outstanding $844,677   $938,628   -10.0 % $866,602      
  Total Assets   6,464,685     6,700,471   -3.5 %   6,364,592      
               
  Loans:            
  Allowance for Credit Losses on Loans $15,879   $19,509   -18.6 % $16,867      
  Allowance for Credit Losses on Loans /            
    Loans   1.88 %   2.08 %     1.95 %    
  Nonperforming Loans/Total Loans   0.18 %   0.08 %     0.09 %    
               
10. Liquidity.            
               
  At March 31, 2024, the Company had $434,250 thousand in cash balances. During the twelve months ending March 31, 2025, the Company expects to receive $303,000 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 March 31, 2024, the Company’s debt securities which qualify as collateral for borrowing totaled $3,820,309 thousand. In the ordinary course of business, the Company pledges debt securities as collateral for certain depository customers; at March 31, 2024, the Company had pledged $697,486 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 March 31, 2024, the Company had pledged $863,987 thousand in debt securities at the Federal Reserve Bank. During the Three months ended March 31, 2024, the Company’s average borrowings from the Federal Reserve Bank and other correspondent banks were $62,582 thousand and $-0- thousand, respectively, and at March 31, 2024, the Company’s borrowings from the Federal Reserve Bank and other correspondent banks were $200,000 thousand and $-0- thousand, respectively. At March 31, 2024, the Company’s estimated unpledged collateral qualifying debt securities totaled $1,995,076 thousand. Debt securities eligible as collateral are shown at market value unless otherwise noted.
               
          (in thousands)
     
          3/31/24    
  Debt Securities Eligible as Collateral:            
  Corporate Securities       $2,577,324      
  Collateralized Loan Obligations rated AAA         496,419      
  Obligations of States and Political Subdivisions       135,051      
  Agency Mortgage Backed Securities         294,480      
  Securities of U.S. Government Sponsored Entities       117,035      
  Securities of U.S. Government Sponsored Entities (Par Value)     200,000      
      Total Debt Securities Eligible as Collateral       $3,820,309      
               
  Debt Securities Pledged as Collateral:            
  Deposits by Public Entities       ($697,846 )    
    Securities Sold under Repurchase Agreements       (257,936 )    
  Other         (5,464 )    
      Total Debt Securities Pledged as Collateral       ($961,246 )    
               
  Debt Securities Pledged at the Federal Reserve Bank     ($863,987 )    
               
  Estimated Debt Securities Available to Pledge       $1,995,076      
               
11. Capital.            
    (in thousands, except per-share amounts)    
        %      
    3/31/24 3/31/23 Change 12/31/23    
               
  Shareholders’ Equity $791,691   $642,925   23.1 % $772,894      
  Total Assets   6,464,685     6,700,471   -3.5 %   6,364,592      
  Shareholders’ Equity/            
     Total Assets   12.25 %   9.60 %     12.14 %    
  Shareholders’ Equity/            
     Total Loans   93.73 %   68.50 %     89.19 %    
  Tangible Common Equity Ratio   10.56 %   7.92 %     10.43 %    
  Common Shares Outstanding   26,678     26,648   0.1 %   26,671      
  Common Equity Per Share $29.68   $24.13   23.0 % $28.98      
  Market Value Per Common Share   48.88     44.30   10.3 %   56.41      
               
    (shares in thousands)    
        %      
    Q1’2024 Q1’2023 Change Q4’2023    
  Share Repurchase Programs:            
    Total Shares Repurchased / Canceled   4     274   n/m          
    Average Repurchase Price   $45.58   $50.11   n/m     $-      
    Net Shares (Issued) Repurchased   (7 )   265   n/m     (22 )    
               
12. Period-End Balance Sheets.            
    (unaudited, dollars in thousands)    
        %      
    3/31/24 3/31/23 Change 12/31/23    
  Assets:            
    Cash and Due from Banks $434,250   $195,202   122.5 % $190,314      
               
    Debt Securities Available for Sale            
      Corporate Securities   1,879,980     2,019,240   -6.9 %   1,909,548      
      Collateralized Loan Obligations   1,420,584     1,542,377   -7.9 %   1,484,597      
      Agency Mortgage Backed Securities   225,564     276,078   -18.3 %   239,454      
      Securities of U.S. Government sponsored            
        entities   292,583     297,140   -1.5 %   294,919      
      Obligations of States and Political            
        Subdivisions   70,466     82,678   -14.8 %   71,283      
        Total Debt Securities Available for Sale   3,889,177     4,217,513   -7.8 %   3,999,801      
               
    Debt Securities Held to Maturity            
      Agency Mortgage Backed Securities   73,023     98,006   -25.5 %   78,565      
      Corporate Securities   730,350     723,553   0.9 %   728,650      
      Obligations of States and Political            
        Subdivisions (2)   65,352     87,760   -25.5 %   71,181      
        Total Debt Securities Held to Maturity (2)   868,725     909,319   -4.5 %   878,396      
               
    Loans   844,677     938,628   -10.0 %   866,602      
    Allowance For Credit Losses on Loans   (15,879 )   (19,509 ) -18.6 %   (16,867 )    
      Total Loans, net   828,798     919,119   -9.8 %   849,735      
               
    Premises and Equipment, net   26,458     28,331   -6.6 %   27,016      
    Identifiable Intangibles, net   291     523   -44.5 %   347      
    Goodwill   121,673     121,673   0.0 %   121,673      
    Other Assets   295,313     308,791   -4.4 %   297,310      
               
        Total Assets $6,464,685   $6,700,471   -3.5 % $6,364,592      
               
  Liabilities and Shareholders’ Equity:            
    Deposits:            
      Noninterest-Bearing $2,514,161   $2,788,992   -9.9 % $2,605,844      
      Interest-Bearing Transaction   1,066,038     1,201,356   -11.3 %   1,072,233      
      Savings   1,681,921     1,783,667   -5.7 %   1,699,388      
      Time   92,805     125,300   -25.9 %   96,802      
        Total Deposits   5,354,925     5,899,315   -9.2 %   5,474,267      
               
    Bank Term Funding Program            
      Borrowings   200,000       n/m          
    Securities Sold under Repurchase            
      Agreements   50,334     83,088   -39.4   58,162      
    Total Short-Term Borrowed Funds   250,334     83,088   201.3 %   58,162      
               
    Other Liabilities   67,735     75,143   -9.9 %   59,269      
        Total Liabilities   5,672,994     6,057,546   -6.3 %   5,591,698      
               
  Shareholders’ Equity:            
    Common Equity:            
      Paid-In Capital   473,989     471,159   0.6 %   473,171      
      Accumulated Other            
        Comprehensive Loss   (196,857 )   (231,573 ) -15.0 %   (190,282 )    
      Retained Earnings   514,559     403,339   27.6 %   490,005      
        Total Shareholders’ Equity   791,691     642,925   23.1 %   772,894      
               
        Total Liabilities and            
         Shareholders’ Equity $6,464,685   $6,700,471   -3.5 % $6,364,592      
               
13. Income Statements.            
    (unaudited, in thousands except per-share amounts)    
        %      
    Q1’2024 Q1’2023 Change Q4’2023    
  Interest & Fee Income:            
  Loans $11,324   $11,740   -3.5 % $11,606      
  Equity Securities   174     152   14.5 %   174      
  Debt Securities Available for Sale   46,243     46,810   -1.2 %   47,783      
  Debt Securities Held to Maturity   8,722     8,980   -2.9 %   8,799      
  Interest-Bearing Cash   2,283     1,942   17.6 %   2,690      
      Total Interest & Fee Income   68,746     69,624   -1.3 %   71,052      
               
  Interest Expense:            
    Transaction Deposits   119     94   26.6 %   128      
    Savings Deposits   1,917     280   584.6 %   1,431      
    Time Deposits   70     84   -16.7 %   76      
    Bank Term Funding Program            
      Borrowings   843       n/m         
    Securities Sold under Repurchase            
      Agreements   52     13   306.0 %   44      
      Total Interest Expense   3,001     471   537.2 %   1,679      
               
  Net Interest Income   65,745     69,153   -4.9 %   69,373      
               
  Provision (Reversal of Provision)            
  for Credit Losses (1)   300     (1,550 ) n/m          
               
  Noninterest Income:            
    Service Charges on Deposit Accounts   3,470     3,465   0.2 %   3,540      
    Merchant Processing Services   2,507     2,637   -4.9 %   2,863      
    Debit Card Fees   1,543     1,642   -6.1 %   2,067      
    Trust Fees   794     765   3.8 %   764      
    ATM Processing Fees   591     654   -9.6 %   622      
    Other Service Fees   438     399   9.7 %   445      
    Other Noninterest Income   754     987   -23.6 %   691      
      Total Noninterest Income   10,097     10,549   -4.3 %   10,992      
               
  Noninterest Expense:            
    Salaries and Related Benefits   12,586     12,067   4.3 %   12,156      
    Occupancy and Equipment   5,040     5,485   -8.1 %   4,958      
    Outsourced Data Processing   2,536     2,444   3.8 %   2,441      
    Limited Partnership Operating Losses   1,440     1,434   0.4 %   1,440      
    Professional Fees   402     476   -15.5 %   389      
    Courier Service   649     615   5.5 %   681      
    Other Noninterest Expense   3,446     3,689   -6.6 %   3,452      
      Total Noninterest Expense   26,099     26,210   -0.4 %   25,517      
               
  Income Before Income Taxes   49,443     55,042   -10.2 %   54,848      
  Income Tax Provision   13,026     14,591   -10.7 %   15,380      
  Net Income $36,417   $40,451   -10.0 % $39,468      
               
  Average Common Shares Outstanding   26,674     26,859   -0.7 %   26,662      
  Diluted Average Common Shares Outstanding   26,675     26,866   -0.7 %   26,664      
               
  Per Common Share Data:            
    Basic Earnings $1.37   $1.51   -9.3 % $1.48      
    Diluted Earnings   1.37     1.51   -9.3 %   1.48      
    Dividends Paid   0.44     0.42   4.8 %   0.44      
  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 March 31, 2024, December 31, 2023 and March 31, 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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