Westamerica Bancorporation Reports Fourth Quarter 2023 Financial Results

Westamerica Bancorporation

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 Web Address: www.westamerica.com

For additional information contact:

Westamerica Bancorporation
1108 Fifth Avenue, San Rafael, CA 94901
Robert A. Thorson – SVP & Chief Financial Officer
707-863-6840
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.
	(a) Annualized