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8-K

Westamerica Bancorporation (WABC)

8-K 2024-07-18 For: 2024-07-18
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Added on April 08, 2026

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_________________

FORM 8-K

_________________

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):  July 18, 2024

_______________________________

WESTAMERICA BANCORPORATION

(Exact name of registrant as specified in its charter)

_______________________________

California 001-09383 94-2156203
(State or Other Jurisdiction of Incorporation) (Commission File Number) (I.R.S. Employer Identification No.)

1108 Fifth Avenue

San Rafael, California 94901

(Address of Principal Executive Offices) (Zip Code)

(707) 863-6000

(Registrant's telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

_______________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class Trading Symbol(s) Name of each exchange on which registered
Common Stock, no par value WABC The Nasdaq Stock Market, LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02. Results of Operations and Financial Condition. On July 18, 2024, the Registrant issued a press release, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits. Exhibit 99.1    Press release dated July 18, 2024Exhibit 104     Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

WESTAMERICA BANCORPORATION
Date: July 18, 2024 By: /s/ Anela Jonas
Anela Jonas
Senior Vice President and Chief Financial Officer

EdgarFiling EXHIBIT 99.1

Westamerica Bancorporation Reports Second Quarter 2024 Financial Results

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

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

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

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

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

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

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

Westamerica Bancorporation’s wholly owned subsidiary Westamerica Bank, operates commercial banking and trust offices throughout Northern and Central California.

Westamerica Bancorporation Web Address: www.westamerica.com

For additional information contact: Westamerica Bancorporation 1108 Fifth Avenue, San Rafael, CA 94901 Robert A. Thorson – SVP & Treasurer 707-863-6840 investments@westamerica.com

FORWARD-LOOKING INFORMATION:

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

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

Forward-looking statements, by their nature, are subject to risks and uncertainties. A number of factors — many of which are beyond the Company's control — could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. The Company's most recent reports filed with the Securities and Exchange Commission, including the annual report for the year ended December 31, 2023 filed on Form 10-K and quarterly report for the quarter ended March 31, 2024 filed on Form 10-Q, describe some of these factors, including certain credit, interest rate, operational, liquidity and market risks associated with the Company's business and operations. Other factors described in these reports include changes in business and economic conditions, competition, fiscal and monetary policies, disintermediation, cyber security risks, legislation including the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, the Sarbanes-Oxley Act of 2002 and the Gramm-Leach-Bliley Act of 1999, and mergers and acquisitions.

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

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

All values are in US Dollars.

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