SAN RAFAEL, Calif., Jan. 18, 2024 (GLOBE NEWSWIRE) -- Westamerica Bancorporation (Nasdaq: WABC), parent company of Westamerica Bank, generated net income for the fourth quarter 2023 of $39.5 million and diluted earnings per common share ("EPS") of $1.48. Fourth quarter 2023 results include an increase to the book tax provision to reconcile the 2022 income tax provision to the filed 2022 tax returns, which reduced EPS $0.02. Fourth quarter 2023 results compare to third quarter 2023 net income of $41.6 million and EPS of $1.56.
"Westamerica's fourth quarter 2023 results benefited from the Company's valuable low-cost deposit base, of which 48 percent was represented by non-interest bearing checking accounts during the quarter. The annualized cost of funding our loan and bond portfolios was 0.11 percent in the fourth quarter 2023. The Company's customer deposits and shareholders' equity fully funded our interest earning assets during the fourth quarter 2023; the Company did not take in brokered deposits, or borrow from the Federal Reserve Bank or correspondent banks. Operating expenses remained well controlled and nonperforming assets were stable," said Chairman, President and CEO David Payne. "Fourth quarter 2023 results generated an annualized 16.7 percent return on average common equity. Shareholders were paid a $0.44 per common share dividend during the fourth quarter 2023," concluded Payne.
Net interest income on a fully-taxable equivalent (FTE) basis was $69.7 million for the fourth quarter 2023, compared to $72.1 million for the third quarter 2023. The annualized yield earned on loans, bonds and cash for the fourth quarter 2023 was 4.52 percent, up from 4.50 percent for the third quarter 2023. The annualized cost of funding the loan and bond portfolios was 0.11 percent for the fourth quarter 2023, compared to 0.07 percent for the third quarter 2023.
Noninterest income for the fourth quarter 2023 totaled $11.0 million compared to $11.3 million for the third quarter 2023. Third quarter 2023 results include a $278 thousand life insurance gain.
Noninterest expenses for the fourth quarter 2023 were $25.5 million compared to $25.7 million for the third quarter 2023.
The income tax provision for 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 1108 Fifth Avenue, San Rafael, CA 94901 Robert A. Thorson – SVP & Chief Financial Officer 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, 2022 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 January 18, 2024
WESTAMERICA BANCORPORATION
FINANCIAL HIGHLIGHTS
December 31, 2023
1. Net Income Summary.
(in thousands except per-share amounts)
%
Q4'2023
Q4'2022
Change
Q3'2023
Net Interest and Fee Income (FTE)
$69,738
$69,155
0.8
%
$72,092
Provision for Credit Losses
-
-
n/m
400
Noninterest Income
10,992
10,463
5.1
%
11,281
Noninterest Expense
25,517
25,090
1.7
%
25,650
Income Before Taxes (FTE)
55,213
54,528
1.3
%
57,323
Income Tax Provision (FTE)
15,745
15,184
3.7
%
15,722
Net Income
$39,468
$39,344
0.3
%
$41,601
Average Common Shares Outstanding
26,662
26,912
-0.9
%
26,648
Diluted Average Common Shares Outstanding
26,664
26,924
-1.0
%
26,650
Operating Ratios:
Basic Earnings Per Common Share
$1.48
$1.46
1.4
%
$1.56
Diluted Earnings Per Common Share
1.48
1.46
1.4
%
1.56
Return On Assets (a)
2.35
%
2.12
%
2.41
%
Return On Common Equity (a)
16.7
%
18.6
%
18.3
%
Net Interest Margin (FTE) (a)
4.41
%
3.95
%
4.43
%
Efficiency Ratio (FTE)
31.6
%
31.5
%
30.8
%
Dividends Paid Per Common Share
$0.44
$0.42
4.8
%
$0.44
Common Dividend Payout Ratio
30
%
29
%
28
%
%
12/31'23YTD
12/31'22YTD
Change
Net Interest and Fee Income (FTE)
$281,673
$221,775
27.0
%
Reversal of Provision for Credit Losses (2)
(1,150
)
-
n/m
Noninterest Income (1)
43,522
45,121
-3.5
%
Noninterest Expense
103,216
99,361
3.9
%
Income Before Taxes (FTE)
223,129
167,535
33.2
%
Income Tax Provision (FTE)
61,361
45,501
34.9
%
Net Income
$161,768
$122,034
32.6
%
Average Common Shares Outstanding
26,703
26,895
-0.7
%
Diluted Average Common Shares Outstanding
26,706
26,907
-0.7
%
Operating Ratios:
Basic Earnings Per Common Share
$6.06
$4.54
33.5
%
Diluted Earnings Per Common Share
6.06
4.54
33.5
%
Return On Assets
2.35
%
1.65
%
Return On Common Equity
18.1
%
15.2
%
Net Interest Margin (FTE)
4.37
%
3.17
%
Efficiency Ratio (FTE)
31.7
%
37.2
%
Dividends Paid Per Common Share
$1.72
$1.68
2.4
%
Common Dividend Payout Ratio
28
%
37
%
2. Net Interest Income.
(dollars in thousands)
%
Q4'2023
Q4'2022
Change
Q3'2023
Interest and Fee Income (FTE)
$71,417
$69,630
2.6
%
$73,225
Interest Expense
1,679
475
253.5
%
1,133
Net Interest and Fee Income (FTE)
$69,738
$69,155
0.8
%
$72,092
Average Earning Assets
$6,251,143
$6,930,584
-9.8
%
$6,438,411
Average Interest- Bearing Liabilities
2,966,038
3,412,189
-13.1
%
3,118,632
Yield on Earning Assets (FTE) (a)
4.52
%
3.98
%
4.50
%
Cost of Funds (a)
0.11
%
0.03
%
0.07
%
Net Interest Margin (FTE) (a)
4.41
%
3.95
%
4.43
%
Interest Expense/
Interest-Bearing Liabilities (a)
0.22
%
0.06
%
0.14
%
Net Interest Spread (FTE) (a)
4.30
%
3.92
%
4.36
%
%
12/31'23YTD
12/31'22YTD
Change
Interest and Fee Income (FTE)
$285,563
$223,700
27.7
%
Interest Expense
3,890
1,925
102.1
%
Net Interest and Fee Income (FTE)
$281,673
$221,775
27.0
%
Average Earning Assets
$6,451,821
$6,992,696
-7.7
%
Average Interest- Bearing Liabilities
3,128,115
3,506,559
-10.8
%
Yield on Earning Assets (FTE)
4.43
%
3.20
%
Cost of Funds
0.06
%
0.03
%
Net Interest Margin (FTE)
4.37
%
3.17
%
Interest Expense/
Interest-Bearing Liabilities
0.12
%
0.05
%
Net Interest Spread (FTE)
4.31
%
3.15
%
3. Loans & Other Earning Assets.
(average volume, dollars in thousands)
%
Q4'2023
Q4'2022
Change
Q3'2023
Total Assets
$6,665,040
$7,353,270
-9.4
%
$6,847,691
Total Earning Assets
6,251,143
6,930,584
-9.8
%
6,438,411
Total Loans
873,635
964,287
-9.4
%
903,854
Commercial Loans
139,535
173,527
-19.6
%
151,431
Commercial Real Estate Loans
490,645
492,549
-0.4
%
493,072
Consumer Loans
243,455
298,211
-18.4
%
259,351
Total Investment Securities
5,182,557
5,694,280
-9.0
%
5,247,118
Debt Securities Available for Sale
4,298,396
4,767,459
-9.8
%
4,353,794
Debt Securities Held to Maturity
884,161
926,821
-4.6
%
893,324
Total Interest-Bearing Cash
194,951
272,017
-28.3
%
287,439
Loans/Deposits
15.7
%
15.2
%
15.8
%
%
12/31'23YTD
12/31'22YTD
Change
Total Assets
$6,871,366
$7,413,008
-7.3
%
Total Earning Assets
6,451,821
6,992,696
-7.7
%
Total Loans
912,316
997,964
-8.6
%
Commercial Loans
153,499
193,481
-20.7
%
Commercial Real Estate Loans
492,183
504,713
-2.5
%
Consumer Loans
266,634
299,770
-11.1
%
Total Investment Securities
5,334,711
5,303,646
0.6
%
Debt Securities Available for Sale
4,436,003
4,747,969
-6.6
%
Debt Securities Held to Maturity
898,708
555,677
61.7
%
Total Interest-Bearing Cash
204,794
691,086
-70.4
%
Loans/Deposits
15.8
%
15.6
%
4. Deposits, Other Interest-Bearing Liabilities & Equity.
(average volume, dollars in thousands)
%
Q4'2023
Q4'2022
Change
Q3'2023
Total Deposits
$5,573,281
$6,349,401
-12.2
%
$5,722,817
Noninterest Demand
2,672,170
3,010,806
-11.2
%
2,721,358
Interest-Bearing Transaction
1,085,864
1,287,304
-15.6
%
1,149,483
Savings
1,713,803
1,917,370
-10.6
%
1,741,994
Time greater than $100K
37,970
59,720
-36.4
%
43,073
Time less than $100K
63,474
74,201
-14.5
%
66,909
Total Short-Term Borrowings
64,927
73,594
-11.8
%
117,173
Shareholders' Equity
938,738
837,499
12.1
%
902,300
Demand Deposits/ Total Deposits
47.9
%
47.4
%
47.6
%
Transaction & Savings Deposits / Total Deposits
98.2
%
97.9
%
98.1
%
%
12/31'23YTD
12/31'22YTD
Change
Total Deposits
$5,787,361
$6,415,626
-9.8
%
Noninterest Demand
2,748,544
3,018,350
-8.9
%
Interest-Bearing Transaction
1,156,684
1,289,956
-10.3
%
Savings
1,766,225
1,967,902
-10.2
%
Time greater than $100K
48,076
62,411
-23.0
%
Time less than $100K
67,832
77,007
-11.9
%
Total Short-Term Borrowings
89,298
109,283
-18.3
%
Shareholders' Equity
894,610
802,489
11.5
%
Demand Deposits/ Total Deposits
47.5
%
47.0
%
Transaction & Savings Deposits / Total Deposits
98.0
%
97.8
%
5. Interest Yields Earned & Rates Paid.
(dollars in thousands)
Q4'2023
Average
Income/
Yield (a) /
Volume
Expense
Rate (a)
Interest & Fee Income Earned:
Total Earning Assets (FTE)
$6,251,143
$71,417
4.52
%
Total Loans (FTE)
873,635
11,695
5.31
%
Commercial Loans (FTE)
139,535
2,503
7.12
%
Commercial Real Estate Loans
490,645
5,945
4.81
%
Consumer Loans
243,455
3,247
5.29
%
Total Investments (FTE)
5,182,557
57,032
4.35
%
Total Debt Securities Available for Sale (FTE)
4,298,396
48,094
4.42
%
Corporate Securities
2,129,736
14,687
2.76
%
Collateralized Loan Obligations
1,508,494
28,041
7.27
%
Agency Mortgage Backed Securities
264,514
1,627
2.46
%
Securities of U.S. Government sponsored entities
308,234
2,777
3.60
%
Obligations of States and Political
Subdivisions (FTE)
73,191
549
3.00
%
Other Debt Securities Available for Sale (FTE)
14,227
413
11.62
%
Total Debt Securities Held to Maturity (FTE)
884,161
8,938
4.04
%
Agency Mortgage Backed Securities
81,789
456
2.23
%
Corporate Securities
727,579
7,816
4.30
%
Obligations of States and Political
Subdivisions (FTE)
74,793
666
3.56
%
Total Interest-Bearing Cash
194,951
2,690
5.40
%
Interest Expense Paid:
Total Earning Assets
6,251,143
1,679
0.11
%
Total Interest-Bearing Liabilities
2,966,038
1,679
0.22
%
Total Interest-Bearing Deposits
2,901,111
1,635
0.22
%
Interest-Bearing Transaction
1,085,864
128
0.05
%
Savings
1,713,803
1,431
0.33
%
Time less than $100K
63,474
51
0.32
%
Time greater than $100K
37,970
25
0.26
%
Total Short-Term Borrowings
64,927
44
0.26
%
Net Interest Income and
Margin (FTE)
$69,738
4.41
%
Q4'2022
Average
Income/
Yield (a) /
Volume
Expense
Rate (a)
Interest & Fee Income Earned:
Total Earning Assets (FTE)
$6,930,584
$69,630
3.98
%
Total Loans (FTE)
964,287
12,293
5.06
%
Commercial Loans (FTE)
173,527
2,896
6.62
%
Commercial Real Estate Loans
492,549
5,812
4.68
%
Consumer Loans
298,211
3,585
4.77
%
Total Investments (FTE)
5,694,280
54,770
3.81
%
Total Debt Securities Available for Sale (FTE)
4,767,459
45,531
3.78
%
Corporate Securities
2,462,131
17,102
2.78
%
Collateralized Loan Obligations
1,590,164
22,801
5.61
%
Agency Mortgage Backed Securities
319,843
1,921
2.40
%
Securities of U.S. Government sponsored entities
297,710
2,690
3.61
%
Obligations of States and Political
Subdivisions (FTE)
84,774
644
3.04
%
Other Debt Securities Available for Sale (FTE)
12,837
373
11.63
%
Total Debt Securities Held to Maturity (FTE)
926,821
9,239
3.99
%
Agency Mortgage Backed Securities
109,100
575
2.11
%
Corporate Securities
720,752
7,815
4.34
%
Obligations of States and Political
Subdivisions (FTE)
96,969
849
3.50
%
Total Interest-Bearing Cash
272,017
2,567
3.69
%
Interest Expense Paid:
Total Earning Assets
6,930,584
475
0.03
%
Total Interest-Bearing Liabilities
3,412,189
475
0.06
%
Total Interest-Bearing Deposits
3,338,595
463
0.05
%
Interest-Bearing Transaction
1,287,304
96
0.03
%
Savings
1,917,370
280
0.06
%
Time less than $100K
74,201
51
0.27
%
Time greater than $100K
59,720
36
0.24
%
Total Short-Term Borrowings
73,594
12
0.06
%
Net Interest Income and
Margin (FTE)
$69,155
3.95
%
6. Noninterest Income.
(dollars in thousands except per-share amounts)
%
Q4'2023
Q4'2022
Change
Q3'2023
Service Charges on Deposit Accounts
$3,540
$3,484
1.6
%
$3,705
Merchant Processing Services
2,863
2,701
6.0
%
2,911
Debit Card Fees
2,067
1,704
21.3
%
1,717
Trust Fees
764
754
1.3
%
783
ATM Processing Fees
622
646
-3.7
%
640
Other Service Fees
445
416
6.9
%
463
Financial Services Commissions
66
103
-35.9
%
78
Life Insurance Gains
1
7
n/m
278
Other Noninterest Income
624
648
-3.7
%
706
Total Noninterest Income
$10,992
$10,463
5.1
%
$11,281
Operating Ratios:
Total Revenue (FTE)
$80,730
$79,618
1.4
%
$83,373
Noninterest Income/Revenue (FTE)
13.6
%
13.1
%
13.5
%
Service Charges/Avg. Deposits (a)
0.25
%
0.22
%
0.26
%
Total Revenue (FTE) Per Avg.
Common Share (a)
$12.01
$11.74
2.3
%
$12.41
%
12/31'23YTD
12/31'22YTD
Change
Service Charges on Deposit Accounts
$14,169
$14,490
-2.2
%
Merchant Processing Services
11,280
11,623
-3.0
%
Debit Card Fees (1)
7,185
7,879
-8.8
%
Trust Fees
3,122
3,216
-2.9
%
ATM Processing Fees
2,618
2,160
21.2
%
Other Service Fees
1,765
1,808
-2.4
%
Financial Services Commissions
336
417
-19.4
%
Life Insurance Gains
279
930
n/m
Securities Losses
(125
)
-
n/m
Other Noninterest Income
2,893
2,598
11.4
%
Total Noninterest Income
$43,522
$45,121
-3.5
%
Operating Ratios:
Total Revenue (FTE)
$325,195
$266,896
21.8
%
Noninterest Income/Revenue (FTE)
13.4
%
16.9
%
Service Charges/Avg. Deposits
0.24
%
0.23
%
Total Revenue (FTE) Per Avg.
Common Share
$12.18
$9.92
22.7
%
7. Noninterest Expense.
(dollars in thousands)
%
Q4'2023
Q4'2022
Change
Q3'2023
Salaries & Benefits
$12,156
$11,482
5.9
%
$11,820
Occupancy and Equipment
4,958
5,218
-5.0
%
5,065
Outsourced Data Processing
2,441
2,390
2.1
%
2,473
Limited Partnership Operating Losses
1,440
1,431
0.6
%
1,440
Professional Fees
389
574
-32.2
%
401
Courier Service
681
700
-2.7
%
745
Other Noninterest Expense
3,452
3,295
4.8
%
3,706
Total Noninterest Expense
$25,517
$25,090
1.7
%
$25,650
Operating Ratios:
Noninterest Expense/ Avg. Earning Assets (a)
1.62
%
1.44
%
1.58
%
Noninterest Expense/Revenues (FTE)
31.6
%
31.5
%
30.8
%
%
12/31'23YTD
12/31'22YTD
Change
Salaries & Benefits
$47,871
$46,125
3.8
%
Occupancy and Equipment
20,520
19,884
3.2
%
Outsourced Data Processing
9,846
9,684
1.7
%
Limited Partnership Operating Losses
5,754
5,724
0.5
%
Professional Fees
1,751
2,628
-33.4
%
Courier Service
2,652
2,614
1.5
%
Other Noninterest Expense
14,822
12,702
16.7
%
Total Noninterest Expense
$103,216
$99,361
3.9
%
Operating Ratios:
Noninterest Expense/ Avg. Earning Assets
1.60
%
1.42
%
Noninterest Expense/Revenues (FTE)
31.7
%
37.2
%
8. Allowance for Credit Losses.
(dollars in thousands)
%
Q4'2023
Q4'2022
Change
Q3'2023
Average Total Loans
$873,635
$964,287
-9.4
%
$903,854
Beginning of Period Allowance for
Credit Losses on Loans (ACLL)
$17,744
$21,218
-16.4
%
$18,480
Provision for Credit Losses
-
6
n/m
400
Net ACLL Losses
(877
)
(940
)
-6.7
%
(1,136
)
End of Period ACLL
$16,867
$20,284
-16.8
%
$17,744
Gross ACLL Recoveries / Gross ACLL Losses
60
%
44
%
46
%
Net ACLL Losses /
Avg. Total Loans (a)
0.40
%
0.39
%
0.50
%
%
12/31'23YTD
12/31'22YTD
Change
Average Total Loans
$912,316
$997,964
-8.6
%
Beginning of Period ACLL
$20,284
$23,514
-13.7
%
(Reversal of) Provision for Credit Losses (2)
(1,150
)
6
n/m
Net ACLL Losses
(2,267
)
(3,236
)
-29.9
%
End of Period ACLL
$16,867
$20,284
-16.8
%
Gross ACLL Recoveries / Gross ACLL Losses
72
%
48
%
Net ACLL Losses / Avg. Total Loans
0.25
%
0.32
%
(dollars in thousands)
%
12/31/23
12/31/22
Change
9/30/23
Allowance for Credit Losses on Loans
$16,867
$20,284
-16.8
%
$17,744
Allowance for Credit Losses on
Held to Maturity Securities
1
1
-33.0
%
1
Total Allowance for Credit Losses
$16,868
$20,285
-16.8
%
$17,745
Allowance for Unfunded
Credit Commitments
$201
$201
0.0
%
$201
9. Credit Quality.
(dollars in thousands)
%
12/31/23
12/31/22
Change
9/30/23
Nonperforming Loans:
Nonperforming Nonaccrual Loans
$401
$146
174.7
%
$205
Performing Nonaccrual Loans
2
-
n/m
4
Total Nonaccrual Loans
403
146
176.0
%
209
90+ Days Past Due Accruing Loans
388
628
-38.2
%
1,029
Total Nonperforming Loans
$791
$774
2.2
%
$1,238
Total Loans Outstanding
$866,602
$958,488
-9.6
%
$885,850
Total Assets
6,364,592
6,950,317
-8.4
%
6,567,288
Loans:
Allowance for Credit Losses on Loans
$16,867
$20,284
-16.8
%
$17,744
Allowance for Credit Losses on Loans /
Loans
1.95
%
2.12
%
2.00
%
Nonperforming Loans/Total Loans
0.09
%
0.08
%
0.14
%
10. Liquidity.
At December 31, 2023, the Company had $190,314 thousand in cash balances. During the twelve months ending December 31, 2024, the Company expects to receive $265,000 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 December 31, 2023, the Company's debt securities which qualify as collateral for borrowing totaled $3,915,867 thousand. In the ordinary course of business, the Company pledges debt securities as collateral for certain depository customers; at December 31, 2023, the Company had pledged $708,439 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 December 31, 2023, the Company had pledged $996,935 thousand in debt securities at the Federal Reserve Bank. During the Twelve months ended December 31, 2023, the Company's average borrowings from the Federal Reserve Bank and other correspondent banks were $-0- thousand, and at December 31, 2023, the Company's borrowings from the Federal Reserve Bank and other correspondent banks were $-0- thousand. At December 31, 2023, the Company's estimated unpledged collateral qualifying debt securities totaled $1,945,176 thousand. Debt securities eligible as collateral are shown at market value unless otherwise noted.
(in thousands)
12/31/23
Debt Securities Eligible as Collateral:
Corporate Securities
$2,614,904
Collateralized Loan Obligations rated AAA
517,796
Obligations of States and Political Subdivisions
142,178
Agency Mortgage Backed Securities
314,156
Securities of U.S. Government Sponsored Entities (Par Value)
326,833
Total Debt Securities Eligible as Collateral
$3,915,867
Debt Securities Pledged as Collateral:
Deposits by Public Entities
($708,439
)
Short-Term Borrowed Funds (Deposit Sweep)
(259,616
)
Other
(5,701
)
Total Debt Securities Pledged as Collateral
($973,756
)
Debt Securities Pledged at the Federal Reserve Bank
($996,935
)
Estimated Debt Securities Available to Pledge
$1,945,176
11. Capital.
(in thousands, except per-share amounts)
%
12/31/23
12/31/22
Change
9/30/23
Shareholders' Equity
$772,894
$602,110
28.4
%
$648,423
Total Assets
6,364,592
6,950,317
-8.4
%
6,567,288
Shareholders' Equity/
Total Assets
12.14
%
8.66
%
9.87
%
Shareholders' Equity/
Total Loans
89.19
%
62.82
%
73.20
%
Tangible Common Equity Ratio
10.43
%
7.03
%
8.17
%
Common Shares Outstanding
26,671
26,913
-0.9
%
26,649
Common Equity Per Share
$28.98
$22.37
29.5
%
$24.33
Market Value Per Common Share
56.41
59.01
-4.4
%
43.25
(shares in thousands)
%
Q4'2023
Q4'2022
Change
Q3'2023
Share Repurchase Programs:
Total Shares Repurchased / Canceled
-
-
n/m
-
Average Repurchase Price
$
-
$
-
n/m
$
-
Net Shares Issued
(22
)
(2
)
n/m
(1
)
%
12/31'23YTD
12/31'22YTD
Change
Total Shares Repurchased
274
3
n/m
Average Repurchase Price
$50.11
$58.66
n/m
Net Shares Repurchased (Issued)
242
(47
)
n/m
12. Period-End Balance Sheets.
(unaudited, dollars in thousands)
%
12/31/23
12/31/22
Change
9/30/23
Assets:
Cash and Due from Banks
$190,314
$294,236
-35.3
%
$420,550
Debt Securities Available for Sale:
Corporate Securities
1,909,548
2,099,955
-9.1
%
1,814,424
Collateralized Loan Obligations
1,484,597
1,572,883
-5.6
%
1,503,078
Agency Mortgage Backed Securities
239,454
286,048
-16.3
%
239,728
Securities of U.S. Government sponsored
entities
294,919
290,853
1.4
%
279,364
Obligations of States and Political
Subdivisions
71,283
82,004
-13.1
%
69,639
Total Debt Securities Available for Sale
3,999,801
4,331,743
-7.7
%
3,906,233
Debt Securities Held to Maturity:
Agency Mortgage Backed Securities
78,565
104,852
-25.1
%
84,347
Corporate Securities
728,650
721,854
0.9
%
726,951
Obligations of States and Political
Subdivisions (3)
71,181
89,207
-20.2
%
77,558
Total Debt Securities Held to Maturity (3)
878,396
915,913
-4.1
%
888,856
Loans
866,602
958,488
-9.6
%
885,850
Allowance For Credit Losses on Loans
(16,867
)
(20,284
)
-16.8
%
(17,744
)
Total Loans, net
849,735
938,204
-9.4
%
868,106
Premises and Equipment, net
27,016
28,819
-6.3
%
27,490
Identifiable Intangibles, net
347
583
-40.4
%
404
Goodwill
121,673
121,673
0.0
%
121,673
Other Assets
297,310
319,146
-6.8
%
333,976
Total Assets
$6,364,592
$6,950,317
-8.4
%
$6,567,288
Liabilities and Shareholders' Equity:
Deposits:
Noninterest-Bearing
$2,605,844
$2,947,277
-11.6
%
$2,723,403
Interest-Bearing Transaction
1,072,233
1,273,143
-15.8
%
1,138,220
Savings
1,699,388
1,874,115
-9.3
%
1,732,849
Time
96,802
130,755
-26.0
%
104,541
Total Deposits
5,474,267
6,225,290
-12.1
%
5,699,013
Short-Term Borrowed Funds
58,162
57,792
0.6
%
115,341
Other Liabilities
59,269
65,125
-9.0
%
104,511
Total Liabilities
5,591,698
6,348,207
-11.9
%
5,918,865
Shareholders' Equity:
Common Equity:
Paid-In Capital
473,171
475,121
-0.4
%
471,862
Accumulated Other
Comprehensive Loss
(190,282
)
(256,105
)
-25.7
%
(285,709
)
Retained Earnings
490,005
383,094
27.9
%
462,270
Total Shareholders' Equity
772,894
602,110
28.4
%
648,423
Total Liabilities and
Shareholders' Equity
$6,364,592
$6,950,317
-8.4
%
$6,567,288
13. Income Statements.
(unaudited, in thousands except per-share amounts)
%
Q4'2023
Q4'2022
Change
Q3'2023
Interest & Fee Income:
Loans
$11,606
$12,201
-4.9
%
$11,925
Equity Securities
174
153
13.7
%
152
Debt Securities Available for Sale
47,783
45,216
5.7
%
47,994
Debt Securities Held to Maturity
8,799
9,061
-2.9
%
8,848
Interest-Bearing Cash
2,690
2,567
4.8
%
3,929
Total Interest & Fee Income
71,052
69,198
2.7
%
72,848
Interest Expense:
Transaction Deposits
128
96
33.3
%
131
Savings Deposits
1,431
280
411.1
%
886
Time Deposits
76
87
-12.6
%
78
Short-Term Borrowed Funds
44
12
266.7
%
38
Total Interest Expense
1,679
475
253.5
%
1,133
Net Interest Income
69,373
68,723
0.9
%
71,715
Provision for Credit Losses
-
-
n/m
400
Noninterest Income:
Service Charges on Deposit Accounts
3,540
3,484
1.6
%
3,705
Merchant Processing Services
2,863
2,701
6.0
%
2,911
Debit Card Fees
2,067
1,704
21.3
%
1,717
Trust Fees
764
754
1.3
%
783
ATM Processing Fees
622
646
-3.7
%
640
Other Service Fees
445
416
6.9
%
463
Financial Services Commissions
66
103
-35.9
%
78
Life Insurance Gains
1
7
n/m
278
Other Noninterest Income
624
648
-3.7
%
706
Total Noninterest Income
10,992
10,463
5.1
%
11,281
Noninterest Expense:
Salaries and Related Benefits
12,156
11,482
5.9
%
11,820
Occupancy and Equipment
4,958
5,218
-5.0
%
5,065
Outsourced Data Processing
2,441
2,390
2.1
%
2,473
Limited Partnership Operating Losses
1,440
1,431
0.6
%
1,440
Professional Fees
389
574
-32.2
%
401
Courier Service
681
700
-2.7
%
745
Other Noninterest Expense
3,452
3,295
4.8
%
3,706
Total Noninterest Expense
25,517
25,090
1.7
%
25,650
Income Before Income Taxes
54,848
54,096
1.4
%
56,946
Income Tax Provision
15,380
14,752
4.3
%
15,345
Net Income
$39,468
$39,344
0.3
%
$41,601
Average Common Shares Outstanding
26,662
26,912
-0.9
%
26,648
Diluted Average Common Shares Outstanding
26,664
26,924
-1.0
%
26,650
Per Common Share Data:
Basic Earnings
$1.48
$1.46
1.4
%
$1.56
Diluted Earnings
1.48
1.46
1.4
%
1.56
Dividends Paid
0.44
0.42
4.8
%
0.44
%
12/31'23YTD
12/31'22YTD
Change
Interest & Fee Income:
Loans
$47,116
$49,682
-5.2
%
Equity Securities
630
537
17.3
%
Debt Securities Available for Sale
190,039
144,646
31.4
%
Debt Securities Held to Maturity
35,557
19,101
86.2
%
Interest-Bearing Cash
10,671
7,790
37.0
%
Total Interest & Fee Income
284,013
221,756
28.1
%
Interest Expense:
Transaction Deposits
457
369
23.8
%
Savings Deposits
2,993
1,141
162.3
%
Time Deposits
320
336
-4.8
%
Short-Term Borrowed Funds
120
79
51.9
%
Total Interest Expense
3,890
1,925
102.1
%
Net Interest Income
280,123
219,831
27.4
%
Reversal of Provision for Credit Losses (2)
(1,150
)
-
n/m
Noninterest Income:
Service Charges on Deposit Accounts
14,169
14,490
-2.2
%
Merchant Processing Services
11,280
11,623
-3.0
%
Debit Card Fees (1)
7,185
7,879
-8.8
%
Trust Fees
3,122
3,216
-2.9
%
ATM Processing Fees
2,618
2,160
21.2
%
Other Service Fees
1,765
1,808
-2.4
%
Financial Services Commissions
336
417
-19.4
%
Life Insurance Gains
279
930
n/m
Securities Losses
(125
)
-
n/m
Other Operating
2,893
2,598
11.4
%
Total Noninterest Income
43,522
45,121
-3.5
%
Noninterest Expense:
Salaries and Related Benefits
47,871
46,125
3.8
%
Occupancy and Equipment
20,520
19,884
3.2
%
Outsourced Data Processing
9,846
9,684
1.7
%
Limited Partnership Operating Losses
5,754
5,724
0.5
%
Professional Fees
1,751
2,628
-33.4
%
Courier Service
2,652
2,614
1.5
%
Other Operating
14,822
12,702
16.7
%
Total Noninterest Expense
103,216
99,361
3.9
%
Income Before Income Taxes
221,579
165,591
33.8
%
Income Tax Provision
59,811
43,557
37.3
%
Net Income
$161,768
$122,034
32.6
%
Average Common Shares Outstanding
26,703
26,895
-0.7
%
Diluted Average Common Shares Outstanding
26,706
26,907
-0.7
%
Per Common Share Data:
Basic Earnings
$6.06
$4.54
33.5
%
Diluted Earnings
6.06
4.54
33.5
%
Dividends Paid
1.72
1.68
2.4
%
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 December 31, 2023, September 30, 2023 and December 31, 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.