8-K
Westamerica Bancorporation (WABC)
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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): October 20, 2022
_______________________________
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 October 20, 2022, 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 October 20, 2022
Exhibit 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: October 20, 2022 | By: | /s/ Jesse Leavitt |
| Jesse Leavitt | ||
| Senior Vice President and Chief Financial Officer |
EdgarFiling EXHIBIT 99.1
Westamerica Bancorporation Reports Third Quarter 2022 Financial Results
SAN RAFAEL, Calif., Oct. 20, 2022 (GLOBE NEWSWIRE) -- Westamerica Bancorporation (Nasdaq: WABC), parent company of Westamerica Bank, generated net income for the third quarter 2022 of $34.8 million and diluted earnings per common share ("EPS") of $1.29, including a life insurance gain equivalent to EPS of $0.03. Third quarter 2022 net income was 37 percent higher than second quarter 2022 net income of $25.3 million and EPS of $0.94.
"Westamerica’s third quarter 2022 results benefited from the Company’s variable-rate bonds, cash and loans, as well as our valuable deposit base. With 47 percent of average deposits represented by non-interest bearing checking accounts and limited reliance on time deposits, the cost of funding our loan and bond portfolios was 0.03 percent in the third quarter 2022, unchanged from the prior quarter. Operating expenses were well controlled and credit quality remained solid,” said Chairman, President and CEO David Payne. “Third quarter 2022 results generated an annualized 17.1 percent return on average common equity. Shareholders were paid a $0.42 per common share dividend during the third quarter 2022,” concluded Payne.
Net interest income on a fully-taxable equivalent (FTE) basis was $60.8 million for the third quarter 2022, compared to $48.0 million for the second quarter 2022. The yield earned on loans and bonds for the third quarter 2022 was 3.47 percent, up from 2.77 percent for the second quarter 2022. The cost of funding the loan and bond portfolios was 0.03 percent for both the third quarter and second quarter of 2022. Variable rate assets at September 30, 2022 included $1.6 billion in collateralized loan obligations for which interest rates reset quarterly, and $304.1 million in interest-bearing cash balances for which the interest rate changes concurrently with Federal Open Market Committee adjustments to the federal funds rate.
Noninterest income for the third quarter 2022 totaled $11.8 million, including a $923 thousand life insurance gain. Noninterest income for the second quarter 2022 was $11.3 million.
Noninterest expenses for the third quarter 2022 were $24.8 million compared to $24.6 million for the second quarter 2022.
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<br>1108 Fifth Avenue, San Rafael, CA 94901<br>Robert A. Thorson – SVP & Treasurer<br>707-863-6840<br>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, 2021 filed on Form 10-K and quarterly report for the quarter ended June 30, 2022 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 2011, the Sarbanes-Oxley Act of 2002 and the Gramm-Leach-Bliley Act of 1999, and mergers and acquisitions.
Forward-looking statements speak only as of the date they are made. The Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date forward looking statements are made.
WESTAMERICA BANCORPORATIONFINANCIAL HIGHLIGHTSSeptember 30, 2022
| 1. Net Income Summary. | **** | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| **** | (in thousands except per-share amounts) | |||||||||||
| **** | % | |||||||||||
| Q3'2022 | Q3'2021 | Change | Q2'2022 | |||||||||
| **** | Net Interest and Fee Income (FTE) | $ | 60,780 | $ | 43,952 | 38.3 | % | $ | 48,033 | |||
| **** | Provision for Credit Losses | - | - | n/m | - | |||||||
| **** | Noninterest Income | 11,818 | 11,282 | 4.8 | % | 11,264 | ||||||
| **** | Noninterest Expense | 24,767 | 24,697 | 0.3 | % | 24,629 | ||||||
| **** | Income Before Taxes (FTE) | 47,831 | 30,537 | 56.6 | % | 34,668 | ||||||
| **** | Income Tax Provision (FTE) | 13,071 | 8,474 | 54.2 | % | 9,354 | ||||||
| **** | Net Income | $ | 34,760 | $ | 22,063 | 57.5 | % | $ | 25,314 | |||
| **** | Average Common Shares Outstanding | 26,906 | 26,866 | 0.1 | % | 26,889 | ||||||
| **** | Diluted Average Common Shares | 26,916 | 26,875 | 0.2 | % | 26,901 | ||||||
| **** | Operating Ratios: | **** | **** | **** | ||||||||
| **** | Basic Earnings Per Common Share | $ | 1.29 | $ | 0.82 | 57.3 | % | $ | 0.94 | |||
| **** | Diluted Earnings Per Common Share | 1.29 | 0.82 | 57.3 | % | 0.94 | ||||||
| **** | Return On Assets (a) | 1.85 | % | 1.22 | % | 1.37 | % | |||||
| **** | Return On Common Equity (a) | 17.1 | % | 11.6 | % | 12.9 | % | |||||
| **** | Net Interest Margin (FTE) (a) | 3.44 | % | 2.60 | % | 2.74 | % | |||||
| **** | Efficiency Ratio (FTE) | 34.1 | % | 44.7 | % | 41.5 | % | |||||
| **** | Dividends Paid Per Common Share | $ | 0.42 | $ | 0.41 | 2.4 | % | $ | 0.42 | |||
| **** | Common Dividend Payout Ratio | 33 | % | 50 | % | 45 | % | |||||
| **** | **** | **** | % | |||||||||
| 9/30'22YTD | 9/30'21YTD | Change | ||||||||||
| Net Interest and Fee Income (FTE) | $ | 152,620 | $ | 131,034 | 16.5 | % | ||||||
| Provision for Credit Losses | - | - | n/m | |||||||||
| Noninterest Income (1) | 34,658 | 32,503 | 6.6 | % | ||||||||
| Noninterest Expense | 74,271 | 73,894 | 0.5 | % | ||||||||
| Income Before Taxes (FTE) | 113,007 | 89,643 | 26.1 | % | ||||||||
| Income Tax Provision (FTE) | 30,317 | 24,854 | 22.0 | % | ||||||||
| Net Income | $ | 82,690 | $ | 64,789 | 27.6 | % | ||||||
| Average Common Shares Outstanding | 26,889 | 26,851 | 0.1 | % | ||||||||
| Diluted Average Common Shares | 26,901 | 26,868 | 0.1 | % | ||||||||
| Operating Ratios: | **** | **** | ||||||||||
| Basic Earnings Per Common Share | $ | 3.08 | $ | 2.41 | 27.8 | % | ||||||
| Diluted Earnings Per Common Share | 3.07 | 2.41 | 27.4 | % | ||||||||
| Return On Assets (a) | 1.49 | % | 1.25 | % | ||||||||
| Return On Common Equity (a) | 14.0 | % | 11.6 | % | ||||||||
| Net Interest Margin (FTE) (a) | 2.90 | % | 2.67 | % | ||||||||
| Efficiency Ratio (FTE) | 39.7 | % | 45.2 | % | ||||||||
| Dividends Paid Per Common Share | $ | 1.26 | $ | 1.23 | 2.4 | % | ||||||
| Common Dividend Payout Ratio | 41 | % | 51 | % | ||||||||
| 2. Net Interest Income. | **** | **** | **** | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| **** | (dollars in thousands) | |||||||||||
| **** | **** | **** | % | |||||||||
| **** | **** | Q3'2022 | Q3'2021 | Change | Q2'2022 | |||||||
| **** | Interest and Fee Income (FTE) | $ | 61,267 | $ | 44,444 | 37.9 | % | $ | 48,516 | |||
| **** | Interest Expense | 487 | 492 | -1.0 | % | 483 | ||||||
| **** | Net Interest and Fee Income (FTE) | $ | 60,780 | $ | 43,952 | 38.3 | % | $ | 48,033 | |||
| **** | Average Earning Assets | $ | 7,041,313 | $ | 6,754,281 | 4.2 | % | $ | 7,000,862 | |||
| **** | Average Interest-Bearing Liabilities | 3,520,083 | 3,370,840 | 4.4 | % | 3,549,140 | ||||||
| **** | Yield on Earning Assets (FTE) (a) | 3.47 | % | 2.63 | % | 2.77 | % | |||||
| **** | Cost of Funds (a) | 0.03 | % | 0.03 | % | 0.03 | % | |||||
| **** | Net Interest Margin (FTE) (a) | 3.44 | % | 2.60 | % | 2.74 | % | |||||
| **** | Interest Expense/Interest-Bearing Liabilities (a) | 0.05 | % | 0.06 | % | 0.05 | % | |||||
| **** | Net Interest Spread (FTE) (a) | 3.42 | % | 2.57 | % | 2.72 | % | |||||
| **** | **** | **** | **** | % | **** | |||||||
| **** | **** | 9/30'22YTD | 9/30'21YTD | Change | **** | |||||||
| **** | Interest and Fee Income (FTE) | $ | 154,070 | $ | 132,485 | 16.3 | % | **** | ||||
| **** | Interest Expense | 1,450 | 1,451 | -0.1 | % | **** | ||||||
| **** | Net Interest and Fee Income (FTE) | $ | 152,620 | $ | 131,034 | 16.5 | % | **** | ||||
| **** | Average Earning Assets | $ | 7,013,627 | $ | 6,535,949 | 7.3 | % | **** | ||||
| **** | Average Interest-Bearing Liabilities | 3,538,361 | 3,267,311 | 8.3 | % | **** | ||||||
| **** | Yield on Earning Assets (FTE) (a) | 2.93 | % | 2.70 | % | **** | ||||||
| **** | Cost of Funds (a) | 0.03 | % | 0.03 | % | **** | ||||||
| **** | Net Interest Margin (FTE) (a) | 2.90 | % | 2.67 | % | **** | ||||||
| **** | Interest Expense/Interest-Bearing Liabilities (a) | 0.05 | % | 0.06 | % | **** | ||||||
| Net Interest Spread (FTE) (a) | 2.88 | % | 2.64 | % | **** | |||||||
| 3. Loans & Other Earning Assets. | **** | **** | **** | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| **** | **** | (average volume, dollars in thousands) | ||||||||||
| **** | **** | **** | % | |||||||||
| **** | **** | Q3'2022 | Q3'2021 | Change | Q2'2022 | |||||||
| **** | Total Assets | $ | 7,472,304 | $ | 7,158,462 | 4.4 | % | $ | 7,420,069 | |||
| **** | Total Earning Assets | 7,041,313 | 6,754,281 | 4.2 | % | 7,000,862 | ||||||
| **** | Total Loans | 989,033 | 1,176,114 | -15.9 | % | 1,009,633 | ||||||
| **** | Total Commercial Loans | 190,325 | 333,327 | -42.9 | % | 202,585 | ||||||
| **** | Paycheck Protection Program (PPP) Loans | 10,453 | 144,641 | -92.8 | % | 20,997 | ||||||
| **** | Commercial Loans | 179,872 | 188,686 | -4.7 | % | 181,588 | ||||||
| **** | Commercial RE Loans | 494,717 | 543,429 | -9.0 | % | 508,003 | ||||||
| **** | Consumer Loans | 303,991 | 299,358 | 1.5 | % | 299,045 | ||||||
| **** | Total Investment Securities | 5,552,588 | 4,615,540 | 20.3 | % | 5,008,929 | ||||||
| **** | Debt Securities Available For Sale | 4,845,055 | 4,235,141 | 14.4 | % | 4,721,083 | ||||||
| **** | Debt Securities Held To Maturity | 707,533 | 380,399 | 86.0 | % | 287,846 | ||||||
| **** | Total Interest-Bearing Cash | 499,692 | 962,627 | -48.1 | % | 982,300 | ||||||
| **** | Loans/Deposits | 15.2 | % | 18.9 | % | 15.7 | % | |||||
| **** | **** | **** | **** | % | ||||||||
| **** | **** | 9/30'22YTD | 9/30'21YTD | Change | ||||||||
| **** | Total Assets | $ | 7,433,140 | $ | 6,939,636 | 7.1 | % | |||||
| **** | Total Earning Assets | 7,013,627 | 6,535,949 | 7.3 | % | |||||||
| **** | Total Loans | 1,009,314 | 1,227,971 | -17.8 | % | |||||||
| **** | Total Commercial Loans | 200,206 | 380,638 | -47.4 | % | |||||||
| **** | PPP Loans | 22,347 | 180,214 | -87.6 | % | |||||||
| **** | Commercial Loans | 177,859 | 200,424 | -11.3 | % | |||||||
| **** | Commercial RE Loans | 508,812 | 549,639 | -7.4 | % | |||||||
| **** | Consumer Loans | 300,296 | 297,694 | 0.9 | % | |||||||
| **** | Total Investment Securities | 5,172,003 | 4,484,084 | 15.3 | % | |||||||
| **** | Debt Securities Available For Sale | 4,741,400 | 4,046,289 | 17.2 | % | |||||||
| **** | Debt Securities Held To Maturity | 430,603 | 437,795 | -1.6 | % | |||||||
| **** | Total Interest-Bearing Cash | 832,310 | 823,894 | 1.0 | % | |||||||
| **** | Loans/Deposits | 15.7 | % | 20.4 | % | **** | ||||||
| 4. Deposits, Other Interest-Bearing Liabilities & Equity. | **** | |||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |
| **** | ||||||||||||
| **** | % | |||||||||||
| **** | Q3'2021 | Change | Q2'2022 | |||||||||
| **** | Total Deposits | 6,495,051 | $ | 6,223,500 | 4.4 | % | $ | 6,424,202 | ||||
| **** | Noninterest Demand | 3,058,662 | 2,960,207 | 3.3 | % | 2,998,360 | ||||||
| **** | Interest-Bearing Transaction | 1,308,310 | 1,246,667 | 4.9 | % | 1,298,665 | ||||||
| **** | Savings | 1,989,275 | 1,864,401 | 6.7 | % | 1,985,325 | ||||||
| **** | Time greater than 100K | 62,014 | 68,811 | -9.9 | % | 63,790 | ||||||
| **** | Time less than 100K | 76,790 | 83,414 | -7.9 | % | 78,062 | ||||||
| **** | Total Short-Term Borrowings | 83,694 | 107,547 | -22.2 | % | 123,298 | ||||||
| **** | Shareholders' Equity | 807,428 | 755,682 | 6.8 | % | 788,078 | ||||||
| Demand Deposits/ | **** | **** | ||||||||||
| **** | Total Deposits | 47.1 | % | 47.6 | % | 46.7 | % | |||||
| **** | Transaction & Savings | **** | **** | |||||||||
| **** | Deposits / Total Deposits | 97.9 | % | 97.6 | % | 97.8 | % | |||||
| **** | **** | % | **** | |||||||||
| **** | 9/30'21YTD | Change | **** | |||||||||
| **** | Total Deposits | 6,437,943 | $ | 6,017,175 | 7.0 | % | **** | |||||
| **** | Noninterest Demand | 3,020,892 | 2,854,936 | 5.8 | % | **** | ||||||
| **** | Interest-Bearing Transaction | 1,290,850 | 1,195,762 | 8.0 | % | **** | ||||||
| **** | Savings | 1,984,931 | 1,811,711 | 9.6 | % | **** | ||||||
| **** | Time greater than 100K | 63,318 | 70,258 | -9.9 | % | **** | ||||||
| **** | Time less than 100K | 77,952 | 84,508 | -7.8 | % | **** | ||||||
| **** | Total Short-Term Borrowings | 121,310 | 105,001 | 15.5 | % | **** | ||||||
| **** | Other Borrowed Funds | - | 71 | n/m | **** | |||||||
| **** | Shareholders' Equity | 790,691 | 745,382 | 6.1 | % | **** | ||||||
| **** | Demand Deposits/ | **** | **** | |||||||||
| **** | Total Deposits | 46.9 | % | 47.4 | % | **** | **** | |||||
| **** | Transaction & Savings | **** | **** | **** | ||||||||
| **** | Deposits / Total Deposits | 97.8 | % | 97.4 | % | **** | **** |
All values are in US Dollars.
| 5. Interest Yields Earned & Rates Paid. | **** | |||||
|---|---|---|---|---|---|---|
| **** | ||||||
| **** | ||||||
| **** | Income/ | Yield (a) / | ||||
| **** | Expense | Rate (a) | ||||
| **** | Interest & Fee Income Earned | **** | ||||
| **** | Total Earning Assets (FTE) | 7,041,313 | $ | 61,267 | 3.47 | % |
| **** | Total Loans (FTE) | 989,033 | 12,298 | 4.93 | % | |
| **** | Total Commercial Loans (FTE) | 190,325 | 2,843 | 5.93 | % | |
| **** | PPP Loans | 10,453 | 533 | 20.24 | % | |
| **** | Commercial Loans (FTE) | 179,872 | 2,310 | 5.10 | % | |
| **** | Commercial RE Loans | 494,717 | 5,821 | 4.67 | % | |
| **** | Consumer Loans | 303,991 | 3,634 | 4.74 | % | |
| **** | Total Investments (FTE) | 5,552,588 | 46,227 | 3.33 | % | |
| **** | Total Debt Securities Available For Sale (FTE) | 4,845,055 | 39,388 | 3.22 | % | |
| **** | Corporate Securities | 2,518,870 | 17,404 | 2.76 | % | |
| **** | Collateralized Loan Obligations | 1,600,611 | 16,355 | 4.00 | % | |
| **** | Agency Mortgage Backed Securities | 336,392 | 2,001 | 2.38 | % | |
| **** | Securities of U.S. Government sponsored entities | 288,538 | 2,604 | 3.61 | % | |
| **** | Obligations of States and Political Subdivisions (FTE) | 86,357 | 660 | 3.06 | % | |
| **** | Other Debt Securities Available For Sale (FTE) | 14,287 | 364 | 10.18 | % | |
| **** | Total Debt Securities Held To Maturity (FTE) | 707,533 | 6,839 | 3.87 | % | |
| **** | Agency Mortgage Backed Securities | 117,606 | 586 | 1.99 | % | |
| **** | Corporate Securities | 477,881 | 5,230 | 4.38 | % | |
| **** | Obligations of States and Political Subdivisions (FTE) | 112,046 | 1,023 | 3.65 | % | |
| **** | Total Interest-Bearing Cash | 499,692 | 2,742 | 2.15 | % | |
| **** | Interest Expense Paid | **** | **** | |||
| **** | Total Earning Assets | 7,041,313 | 487 | 0.03 | % | |
| **** | Total Interest-Bearing Liabilities | 3,520,083 | 487 | 0.05 | % | |
| **** | Total Interest-Bearing Deposits | 3,436,389 | 470 | 0.05 | % | |
| **** | Interest-Bearing Transaction | 1,308,310 | 94 | 0.03 | % | |
| **** | Savings | 1,989,275 | 290 | 0.06 | % | |
| **** | Time less than 100K | 76,790 | 47 | 0.24 | % | |
| **** | Time greater than 100K | 62,014 | 39 | 0.25 | % | |
| **** | Total Short-Term Borrowings | 83,694 | 17 | 0.08 | % | |
| **** | Net Interest Income and Margin (FTE) | $ | 60,780 | 3.44 | % | |
| **** | ||||||
| **** | Income/ | Yield (a) / | ||||
| **** | Expense | Rate (a) | ||||
| **** | Interest & Fee Income Earned | **** | **** | |||
| **** | Total Earning Assets (FTE) | 6,754,281 | $ | 44,444 | 2.63 | % |
| **** | Total Loans (FTE) | 1,176,114 | 14,893 | 5.02 | % | |
| **** | Total Commercial Loans (FTE) | 333,327 | 3,866 | 4.60 | % | |
| **** | PPP Loans | 144,641 | 1,865 | 5.12 | % | |
| **** | Commercial Loans (FTE) | 188,686 | 2,001 | 4.21 | % | |
| **** | Commercial RE Loans | 543,429 | 7,457 | 5.44 | % | |
| **** | Consumer Loans | 299,358 | 3,570 | 4.73 | % | |
| **** | Total Investments (FTE) | 4,615,540 | 29,182 | 2.53 | % | |
| **** | Total Debt Securities Available For Sale (FTE) | 4,235,141 | 26,736 | 2.51 | % | |
| **** | Corporate Securities | 2,506,856 | 17,974 | 2.87 | % | |
| **** | Collateralized Loan Obligations | 1,148,445 | 5,631 | 1.92 | % | |
| **** | Agency Mortgage Backed Securities | 470,250 | 2,022 | 1.72 | % | |
| **** | Obligations of States and Political Subdivisions (FTE) | 95,229 | 747 | 3.14 | % | |
| **** | Other Debt Securities Available For Sale (FTE) | 14,361 | 362 | 10.09 | % | |
| **** | Total Debt Securities Held To Maturity (FTE) | 380,399 | 2,446 | 2.57 | % | |
| **** | Agency Mortgage Backed Securities | 178,381 | 753 | 1.69 | % | |
| **** | Obligations of States and Political Subdivisions (FTE) | 202,018 | 1,693 | 3.35 | % | |
| **** | Total Interest-Bearing Cash | 962,627 | 369 | 0.15 | % | |
| **** | Interest Expense Paid | **** | ||||
| **** | Total Earning Assets | 6,754,281 | 492 | 0.03 | % | |
| **** | Total Interest-Bearing Liabilities | 3,370,840 | 492 | 0.06 | % | |
| **** | Total Interest-Bearing Deposits | 3,263,293 | 473 | 0.06 | % | |
| **** | Interest-Bearing Transaction | 1,246,667 | 101 | 0.03 | % | |
| **** | Savings | 1,864,401 | 272 | 0.06 | % | |
| **** | Time less than 100K | 83,414 | 42 | 0.20 | % | |
| **** | Time greater than 100K | 68,811 | 58 | 0.33 | % | |
| **** | Total Short-Term Borrowings | 107,547 | 19 | 0.07 | % | |
| **** | Net Interest Income and Margin (FTE) | $ | 43,952 | 2.60 | % |
All values are in US Dollars.
| 6. Noninterest Income. | **** | **** | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| **** | **** | (dollars in thousands except per-share amounts) | ||||||||||
| **** | **** | **** | % | |||||||||
| **** | **** | Q3'2022 | Q3'2021 | Change | Q2'2022 | |||||||
| **** | Service Charges on Deposits | $ | 3,737 | $ | 3,578 | 4.4 | % | $ | 3,687 | |||
| **** | Merchant Processing Services | 2,925 | 3,159 | -7.4 | % | 3,374 | ||||||
| **** | Debit Card Fees | 1,594 | 1,740 | -8.4 | % | 1,709 | ||||||
| **** | Trust Fees | 810 | 839 | -3.5 | % | 809 | ||||||
| **** | ATM Processing Fees | 594 | 573 | 3.7 | % | 469 | ||||||
| **** | Other Service Fees | 463 | 475 | -2.6 | % | 480 | ||||||
| **** | Financial Services Commissions | 79 | 95 | -16.8 | % | 118 | ||||||
| **** | Life Insurance Gains | 923 | - | n/m | - | |||||||
| **** | Other Noninterest Income | 693 | 823 | -15.8 | % | 618 | ||||||
| **** | Total Noninterest Income | $ | 11,818 | $ | 11,282 | 4.8 | % | $ | 11,264 | |||
| Total Revenue (FTE) | $ | 72,598 | $ | 55,234 | 31.4 | % | $ | 59,297 | ||||
| **** | Noninterest Income/Revenue (FTE) | 16.3 | % | 20.4 | % | 19.0 | % | |||||
| **** | Service Charges/Avg. Deposits (a) | 0.23 | % | 0.23 | % | 0.23 | % | |||||
| **** | Total Revenue (FTE) Per Avg. Common Share (a) | $ | 10.70 | $ | 8.16 | 31.2 | % | $ | 8.85 | |||
| **** | **** | **** | **** | % | **** | |||||||
| **** | **** | 9/30'22YTD | 9/30'21YTD | Change | **** | |||||||
| **** | Service Charges on Deposits | $ | 11,006 | $ | 10,117 | 8.8 | % | **** | ||||
| **** | Merchant Processing Services | 8,922 | 8,998 | -0.8 | % | **** | ||||||
| **** | Debit Card Fees (1) | 6,175 | 5,132 | 20.3 | % | **** | ||||||
| **** | Trust Fees | 2,462 | 2,467 | -0.2 | % | **** | ||||||
| **** | ATM Processing Fees | 1,514 | 1,792 | -15.5 | % | **** | ||||||
| **** | Other Service Fees | 1,392 | 1,435 | -3.0 | % | **** | ||||||
| **** | Financial Services Commissions | 314 | 260 | 20.8 | % | **** | ||||||
| **** | Life Insurance Gains | 923 | - | n/m | **** | |||||||
| **** | Securities Gains | - | 34 | n/m | **** | |||||||
| **** | Other Noninterest Income | 1,950 | 2,268 | -14.0 | % | **** | ||||||
| **** | Total Noninterest Income | $ | 34,658 | $ | 32,503 | 6.6 | % | **** | ||||
| **** | Total Revenue (FTE) | $ | 187,278 | $ | 163,537 | 14.5 | % | **** | ||||
| **** | Noninterest Income/Revenue (FTE) | 18.5 | % | 19.9 | % | **** | ||||||
| **** | Service Charges/Avg. Deposits (a) | 0.23 | % | 0.22 | % | **** | ||||||
| **** | Total Revenue (FTE) Per Avg./Common Share (a) | $ | 9.31 | $ | 8.14 | 14.4 | % | **** | ||||
| 7. Noninterest Expense. | **** | **** | **** | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| **** | (dollars in thousands) | |||||||||||
| **** | **** | **** | % | |||||||||
| **** | **** | Q3'2022 | Q3'2021 | Change | Q2'2022 | |||||||
| **** | Salaries & Benefits | $ | 11,311 | $ | 11,813 | -4.2 | % | $ | 11,412 | |||
| **** | Occupancy and Equipment | 5,064 | 4,759 | 6.4 | % | 4,856 | ||||||
| **** | Outsourced Data Processing | 2,434 | 2,429 | 0.2 | % | 2,423 | ||||||
| **** | Limited Partnership Operating Losses | 1,431 | 620 | 130.8 | % | 1,431 | ||||||
| **** | Professional Fees | 582 | 724 | -19.6 | % | 736 | ||||||
| **** | Courier Service | 671 | 534 | 25.7 | % | 661 | ||||||
| **** | Other Noninterest Expense | 3,274 | 3,818 | -14.2 | % | 3,110 | ||||||
| **** | Total Noninterest Expense | $ | 24,767 | $ | 24,697 | 0.3 | % | $ | 24,629 | |||
| **** | Noninterest Expense/Avg. Earning Assets (a) | 1.40 | % | 1.45 | % | 1.41 | % | |||||
| **** | Noninterest Expense/Revenues (FTE) | 34.1 | % | 44.7 | % | 41.5 | % | |||||
| **** | **** | **** | **** | % | **** | |||||||
| **** | **** | 9/30'22YTD | 9/30'21YTD | Change | **** | |||||||
| **** | Salaries & Benefits | $ | 34,643 | $ | 36,575 | -5.3 | % | **** | ||||
| **** | Occupancy and Equipment | 14,666 | 14,447 | 1.5 | % | **** | ||||||
| **** | Outsourced Data Processing | 7,294 | 7,244 | 0.7 | % | **** | ||||||
| **** | Limited Partnership Operating Losses | 4,293 | 1,820 | 135.9 | % | **** | ||||||
| **** | Professional Fees | 2,054 | 2,496 | -17.7 | % | **** | ||||||
| **** | Courier Service | 1,914 | 1,605 | 19.3 | % | **** | ||||||
| **** | Other Noninterest Expense | 9,407 | 9,707 | -3.1 | % | **** | ||||||
| **** | Total Noninterest Expense | $ | 74,271 | $ | 73,894 | 0.5 | % | **** | ||||
| **** | Noninterest Expense/Avg. Earning Assets (a) | 1.42 | % | 1.51 | % | **** | ||||||
| **** | Noninterest Expense/Revenues (FTE) | 39.7 | % | 45.2 | % | **** | ||||||
| 8. Allowance for Credit Losses. | **** | **** | **** | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| **** | (dollars in thousands) | |||||||||||
| **** | **** | **** | % | |||||||||
| **** | **** | Q3'2022 | Q3'2021 | Change | Q2'2022 | |||||||
| **** | Average Total Loans | $ | 989,033 | $ | 1,176,114 | -15.9 | % | $ | 1,009,633 | |||
| **** | Beginning of Period Allowance for Credit Losses on Loans (ACLL) | $ | 22,313 | $ | 23,737 | -6.0 | % | $ | 22,925 | |||
| Provision for Credit Losses | - | 2 | n/m | - | ||||||||
| Net ACLL (Losses) Recoveries | (1,095 | ) | 143 | n/m | (612 | ) | ||||||
| End of Period ACLL | $ | 21,218 | $ | 23,882 | -11.2 | % | $ | 22,313 | ||||
| Gross ACLL Recoveries / Gross ACLL Losses | 43 | % | 115 | % | 57 | % | ||||||
| Net ACLL Losses (Recoveries) / Avg. Total Loans (a) | 0.44 | % | (0.05 | %) | 0.24 | % | ||||||
| **** | **** | **** | % | **** | ||||||||
| **** | 9/30'22YTD | 9/30'21YTD | Change | **** | ||||||||
| Average Total Loans | $ | 1,009,314 | $ | 1,227,971 | -17.8 | % | **** | |||||
| Beginning of Period ACLL | $ | 23,514 | $ | 23,854 | -1.4 | % | **** | |||||
| Provision for Credit Losses | - | 2 | n/m | **** | ||||||||
| Net ACLL (Losses) Recoveries | (2,296 | ) | 26 | n/m | **** | |||||||
| End of Period ACLL | $ | 21,218 | $ | 23,882 | -11.2 | % | **** | |||||
| Gross ACLL Recoveries / Gross ACLL Losses | 49 | % | 101 | % | **** | |||||||
| Net ACLL Losses (Recoveries) / Avg. Total Loans (a) | 0.30 | % | 0.00 | % | **** | |||||||
| **** | (dollars in thousands) | |||||||||||
| **** | **** | **** | % | **** | ||||||||
| **** | 9/30/22 | 9/30/21 | Change | 6/30/22 | ||||||||
| Allowance for Credit Losses on Loans | $ | 21,218 | $ | 23,882 | -11.2 | % | $ | 22,313 | ||||
| Allowance for Credit Losses on HTM Securities | 7 | 7 | 0.0 | % | 7 | |||||||
| Total Allowance for Credit Losses | $ | 21,225 | $ | 23,889 | -11.2 | % | $ | 22,320 | ||||
| Allowance for Unfunded Credit Commitments | $ | 201 | $ | 101 | 99.3 | % | $ | 201 | ||||
| 9. Credit Quality. | **** | **** | **** | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| **** | **** | (dollars in thousands) | ||||||||||
| **** | **** | % | ||||||||||
| **** | **** | 9/30/22 | 9/30/21 | Change | 6/30/22 | |||||||
| **** | Nonperforming Loans: | **** | **** | **** | **** | |||||||
| **** | Nonperforming Nonaccrual | $ | 131 | $ | 801 | -83.6 | % | $ | 12 | |||
| **** | Performing Nonaccrual | 66 | 436 | -84.9 | % | 235 | ||||||
| **** | Total Nonaccrual Loans | 197 | 1,237 | -84.1 | % | 247 | ||||||
| **** | 90+ Days Past Due Accruing Loans | 769 | 537 | 43.2 | % | 614 | ||||||
| **** | Total Nonperforming Loans | $ | 966 | $ | 1,774 | -45.5 | % | $ | 861 | |||
| **** | Total Loans Outstanding | $ | 979,033 | $ | 1,132,472 | -13.5 | % | $ | 999,768 | |||
| **** | Total Assets | 7,177,025 | 7,403,573 | -3.1 | % | 7,222,405 | ||||||
| **** | Loans: | **** | **** | **** | ||||||||
| **** | Allowance for Credit Losses on Loans | $ | 21,218 | $ | 23,882 | -11.2 | % | $ | 22,313 | |||
| **** | Allowance for Credit Losses on Loans / Loans | 2.17 | % | 2.11 | % | 2.23 | % | |||||
| **** | Nonperforming Loans/Total Loans | 0.10 | % | 0.16 | % | 0.09 | % | |||||
| 10. Capital. | **** | **** | **** | **** | ||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| **** | **** | (in thousands, except per-share amounts) | ||||||||||
| **** | **** | % | ||||||||||
| **** | **** | 9/30/22 | 9/30/21 | Change | 6/30/22 | |||||||
| **** | Shareholders' Equity | $ | 538,988 | $ | 837,953 | -35.7 | % | $ | 617,126 | |||
| **** | Total Assets | 7,177,025 | 7,403,573 | -3.1 | % | 7,222,405 | ||||||
| **** | Shareholders' Equity/Total Assets | 7.51 | % | 11.32 | % | 8.54 | % | |||||
| **** | Shareholders' Equity/Total Loans | 55.05 | % | 73.99 | % | 61.73 | % | |||||
| **** | Tangible Common Equity Ratio | 5.91 | % | 9.83 | % | 6.97 | % | |||||
| **** | Common Shares Outstanding | 26,911 | 26,866 | 0.2 | % | 26,896 | ||||||
| **** | Common Equity Per Share | $ | 20.03 | $ | 31.19 | -35.8 | % | $ | 22.94 | |||
| **** | Market Value Per Common Share | 52.29 | 56.26 | -7.1 | % | 55.66 | ||||||
| **** | (shares in thousands) | |||||||||||
| **** | **** | **** | % | |||||||||
| **** | **** | Q3'2022 | Q3'2021 | Change | Q2'2022 | |||||||
| **** | Share Repurchase Programs: | |||||||||||
| Total Shares Repurchased | - | - | n/m | - | ||||||||
| Average Repurchase Price | $ | - | $ | - | n/m | $ | - | |||||
| Net Shares Issued | (15 | ) | (1 | ) | n/m | (13 | ) | |||||
| **** | % | **** | ||||||||||
| **** | **** | 9/30'22YTD | 9/30'21YTD | Change | **** | |||||||
| **** | Total Shares Repurchased | 3 | 4 | n/m | **** | |||||||
| **** | Average Repurchase Price | $ | 58.66 | $ | 61.09 | n/m | **** | |||||
| **** | Net Shares Issued | (45 | ) | (59 | ) | n/m | ||||||
| 11. Period-End Balance Sheets. | **** | **** | ||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| **** | **** | (unaudited, dollars in thousands) | ||||||||||
| **** | **** | % | ||||||||||
| **** | **** | 9/30/22 | 9/30/21 | Change | 6/30/22 | |||||||
| **** | Assets: | |||||||||||
| **** | Cash and Due from Banks | $ | 413,665 | $ | 1,011,048 | -59.1 | % | $ | 753,293 | |||
| **** | Debt Securities Available For Sale: | **** | **** | **** | ||||||||
| **** | Corporate Securities | 2,138,508 | 2,668,389 | -19.9 | % | 2,296,853 | ||||||
| **** | Collateralized Loan Obligations | 1,587,622 | 1,379,533 | 15.1 | % | 1,601,333 | ||||||
| **** | Agency Mortgage Backed Securities | 296,689 | 458,053 | -35.2 | % | 331,425 | ||||||
| **** | Securities of U.S. Government sponsored entities | 272,525 | - | n/m | 290,725 | |||||||
| **** | Obligations of States and Political Subdivisions | 80,987 | 96,603 | -16.2 | % | 86,676 | ||||||
| **** | Other Debt Securities Available For Sale | - | 128 | n/m | 102 | |||||||
| **** | Total Debt Securities Available For Sale | 4,376,331 | 4,602,706 | -4.9 | % | 4,607,114 | ||||||
| **** | Debt Securities Held To Maturity: | **** | **** | **** | ||||||||
| **** | Agency Mortgage Backed Securities | 112,371 | 166,955 | -32.7 | % | 121,810 | ||||||
| **** | Corporate Securities | 720,154 | - | n/m | 181,316 | |||||||
| **** | Obligations of States and Political Subdivisions (2) | 103,742 | 189,151 | -45.2 | % | 139,228 | ||||||
| **** | Total Debt Securities Held To Maturity (2) | 936,267 | 356,106 | 162.9 | % | 442,354 | ||||||
| **** | Loans | 979,033 | 1,132,472 | -13.5 | % | 999,768 | ||||||
| **** | Allowance For Credit Losses on Loans | (21,218 | ) | (23,882 | ) | -11.2 | % | (22,313 | ) | |||
| **** | Total Loans, net | 957,815 | 1,108,590 | -13.6 | % | 977,455 | ||||||
| **** | Premises and Equipment, net | 29,756 | 31,603 | -5.8 | % | 30,309 | ||||||
| **** | Identifiable Intangibles, net | 644 | 900 | -28.4 | % | 707 | ||||||
| **** | Goodwill | 121,673 | 121,673 | 0.0 | % | 121,673 | ||||||
| **** | Other Assets | 340,874 | 170,947 | 99.4 | % | 289,500 | ||||||
| **** | Total Assets | $ | 7,177,025 | $ | 7,403,573 | -3.1 | % | $ | 7,222,405 | |||
| **** | Liabilities and Shareholders' Equity: | **** | **** | **** | ||||||||
| **** | Deposits: | **** | **** | **** | ||||||||
| **** | Noninterest-Bearing | $ | 3,069,907 | $ | 2,988,329 | 2.7 | % | $ | 2,987,725 | |||
| **** | Interest-Bearing Transaction | 1,338,855 | 1,257,460 | 6.5 | % | 1,303,700 | ||||||
| **** | Savings | 1,949,711 | 1,894,290 | 2.9 | % | 1,983,713 | ||||||
| **** | Time | 136,783 | 148,882 | -8.1 | % | 140,453 | ||||||
| **** | Total Deposits | 6,495,256 | 6,288,961 | 3.3 | % | 6,415,591 | ||||||
| **** | Short-Term Borrowed Funds | 76,886 | 119,102 | -35.4 | % | 118,167 | ||||||
| **** | Other Liabilities | 65,895 | 157,557 | -58.2 | % | 71,521 | ||||||
| **** | Total Liabilities | 6,638,037 | 6,565,620 | 1.1 | % | 6,605,279 | ||||||
| **** | Shareholders' Equity: | **** | **** | **** | ||||||||
| **** | Common Equity: | **** | **** | **** | ||||||||
| **** | Paid-In Capital | 474,732 | 470,711 | 0.9 | % | 473,555 | ||||||
| **** | Accumulated Other Comprehensive (Loss) Income | (290,797 | ) | 71,284 | n/m | (188,025 | ) | |||||
| **** | Retained Earnings | 355,053 | 295,958 | 20.0 | % | 331,596 | ||||||
| **** | Total Shareholders' Equity | 538,988 | 837,953 | -35.7 | % | 617,126 | ||||||
| **** | Total Liabilities and Shareholders' Equity | $ | 7,177,025 | $ | 7,403,573 | -3.1 | % | $ | 7,222,405 | |||
| 12. Income Statements. | **** | |||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||
| (unaudited, in thousands except per-share amounts) | ||||||||||||
| **** | % | |||||||||||
| Q3'2022 | Q3'2021 | Change | Q2'2022 | |||||||||
| Interest & Fee Income: | ||||||||||||
| Loans | $ | 12,208 | $ | 14,789 | -17.5 | % | $ | 12,331 | ||||
| Equity Securities | 127 | 109 | 16.5 | % | 129 | |||||||
| Debt Securities Available For Sale | 39,100 | 26,452 | 47.8 | % | 31,764 | |||||||
| Debt Securities Held To Maturity | 6,625 | 2,091 | 216.9 | % | 1,771 | |||||||
| Interest-Bearing Cash | 2,742 | 369 | 643.1 | % | 2,002 | |||||||
| Total Interest & Fee Income | 60,802 | 43,810 | 38.8 | % | 47,997 | |||||||
| Interest Expense: | ||||||||||||
| Transaction Deposits | 94 | 101 | -6.9 | % | 91 | |||||||
| Savings Deposits | 290 | 272 | 6.6 | % | 288 | |||||||
| Time Deposits | 86 | 100 | -14.0 | % | 82 | |||||||
| Short-Term Borrowed Funds | 17 | 19 | -10.5 | % | 22 | |||||||
| Total Interest Expense | 487 | 492 | -1.0 | % | 483 | |||||||
| Net Interest Income | 60,315 | 43,318 | 39.2 | % | 47,514 | |||||||
| Provision for Credit Losses | - | - | n/m | - | ||||||||
| Noninterest Income: | **** | **** | **** | |||||||||
| Service Charges | 3,737 | 3,578 | 4.4 | % | 3,687 | |||||||
| Merchant Processing Services | 2,925 | 3,159 | -7.4 | % | 3,374 | |||||||
| Debit Card Fees | 1,594 | 1,740 | -8.4 | % | 1,709 | |||||||
| Trust Fees | 810 | 839 | -3.5 | % | 809 | |||||||
| ATM Processing Fees | 594 | 573 | 3.7 | % | 469 | |||||||
| Other Service Fees | 463 | 475 | -2.6 | % | 480 | |||||||
| Financial Services Commissions | 79 | 95 | -16.8 | % | 118 | |||||||
| Life Insurance Gains | 923 | - | n/m | - | ||||||||
| Other Noninterest Income | 693 | 823 | -15.8 | % | 618 | |||||||
| Total Noninterest Income | 11,818 | 11,282 | 4.8 | % | 11,264 | |||||||
| Noninterest Expense: | **** | **** | **** | |||||||||
| Salaries and Benefits | 11,311 | 11,813 | -4.2 | % | 11,412 | |||||||
| Occupancy and Equipment | 5,064 | 4,759 | 6.4 | % | 4,856 | |||||||
| Outsourced Data Processing | 2,434 | 2,429 | 0.2 | % | 2,423 | |||||||
| Limited Partnership Operating Losses | 1,431 | 620 | 130.8 | % | 1,431 | |||||||
| Professional Fees | 582 | 724 | -19.6 | % | 736 | |||||||
| Courier Service | 671 | 534 | 25.7 | % | 661 | |||||||
| Other Noninterest Expense | 3,274 | 3,818 | -14.2 | % | 3,110 | |||||||
| Total Noninterest Expense | 24,767 | 24,697 | 0.3 | % | 24,629 | |||||||
| Income Before Income Taxes | 47,366 | 29,903 | 58.4 | % | 34,149 | |||||||
| Income Tax Provision | 12,606 | 7,840 | 60.8 | % | 8,835 | |||||||
| Net Income | $ | 34,760 | $ | 22,063 | 57.5 | % | $ | 25,314 | ||||
| Average Common Shares Outstanding | 26,906 | 26,866 | 0.1 | % | 26,889 | |||||||
| Diluted Common Shares Outstanding | 26,916 | 26,875 | 0.2 | % | 26,901 | |||||||
| Per Common Share Data: | **** | **** | **** | |||||||||
| Basic Earnings | $ | 1.29 | $ | 0.82 | 57.3 | % | $ | 0.94 | ||||
| Diluted Earnings | 1.29 | 0.82 | 57.3 | % | 0.94 | |||||||
| Dividends Paid | 0.42 | 0.41 | 2.4 | % | 0.42 | |||||||
| **** | **** | % | ||||||||||
| 9/30'22YTD | 9/30'21YTD | Change | ||||||||||
| Interest & Fee Income: | **** | **** | ||||||||||
| Loans | $ | 37,481 | $ | 44,434 | -15.6 | % | ||||||
| Equity Securities | 384 | 329 | 16.7 | % | ||||||||
| Debt Securities Available For Sale | 99,430 | 77,822 | 27.8 | % | ||||||||
| Debt Securities Held To Maturity | 10,040 | 7,051 | 42.4 | % | ||||||||
| Interest-Bearing Cash | 5,223 | 766 | 581.9 | % | ||||||||
| Total Interest & Fee Income | 152,558 | 130,402 | 17.0 | % | ||||||||
| Interest Expense: | **** | **** | ||||||||||
| Transaction Deposits | 273 | 283 | -3.5 | % | ||||||||
| Savings Deposits | 861 | 785 | 9.7 | % | ||||||||
| Time Deposits | 249 | 330 | -24.5 | % | ||||||||
| Short-Term Borrowed Funds | 67 | 53 | 26.4 | % | ||||||||
| Total Interest Expense | 1,450 | 1,451 | -0.1 | % | ||||||||
| Net Interest Income | 151,108 | 128,951 | 17.2 | % | ||||||||
| Provision for Credit Losses | - | - | n/m | |||||||||
| Noninterest Income: | **** | **** | ||||||||||
| Service Charges | 11,006 | 10,117 | 8.8 | % | ||||||||
| Merchant Processing Services | 8,922 | 8,998 | -0.8 | % | ||||||||
| Debit Card Fees (1) | 6,175 | 5,132 | 20.3 | % | ||||||||
| Trust Fees | 2,462 | 2,467 | -0.2 | % | ||||||||
| ATM Processing Fees | 1,514 | 1,792 | -15.5 | % | ||||||||
| Other Service Fees | 1,392 | 1,435 | -3.0 | % | ||||||||
| Financial Services Commissions | 314 | 260 | 20.8 | % | ||||||||
| Life Insurance Gains | 923 | - | n/m | |||||||||
| Securities Gains | - | 34 | n/m | |||||||||
| Other Operating | 1,950 | 2,268 | -14.0 | % | ||||||||
| Total Noninterest Income | 34,658 | 32,503 | 6.6 | % | ||||||||
| Noninterest Expense: | **** | **** | ||||||||||
| Salaries and Benefits | 34,643 | 36,575 | -5.3 | % | ||||||||
| Occupancy and Equipment | 14,666 | 14,447 | 1.5 | % | ||||||||
| Outsourced Data Processing | 7,294 | 7,244 | 0.7 | % | ||||||||
| Limited Partnership Operating Losses | 4,293 | 1,820 | 135.9 | % | ||||||||
| Professional Fees | 2,054 | 2,496 | -17.7 | % | ||||||||
| Courier Service | 1,914 | 1,605 | 19.3 | % | ||||||||
| Other Operating | 9,407 | 9,707 | -3.1 | % | ||||||||
| Total Noninterest Expense | 74,271 | 73,894 | 0.5 | % | ||||||||
| Income Before Income Taxes | 111,495 | 87,560 | 27.3 | % | ||||||||
| Income Tax Provision | 28,805 | 22,771 | 26.5 | % | ||||||||
| Net Income | $ | 82,690 | $ | 64,789 | 27.6 | % | **** | |||||
| Average Common Shares Outstanding | 26,889 | 26,851 | 0.1 | % | ||||||||
| Diluted Common Shares Outstanding | 26,901 | 26,868 | 0.1 | % | ||||||||
| Per Common Share Data: | **** | **** | ||||||||||
| Basic Earnings | $ | 3.08 | $ | 2.41 | 27.8 | % | ||||||
| Diluted Earnings | 3.07 | 2.41 | 27.4 | % | ||||||||
| Dividends Paid | 1.26 | 1.23 | 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) Debt Securities Held To Maturity and Obligations of States and Political Subdivisions are net of related reserve for expected credit losses of $7 thousand at September 30, 2022, June 30, 2022 and September 30, 2021. |
| (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 relatively large 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 |
| Certain amounts in prior periods have been reclassified to conform to the current presentation. |