Westamerica Bancorporation Reports Third Quarter 2023 Financial Results

Westamerica Bancorporation

SAN RAFAEL, Calif., Oct. 19, 2023 (GLOBE NEWSWIRE) -- Westamerica Bancorporation (Nasdaq: WABC), parent company of Westamerica Bank, generated net income for the third quarter 2023 of $41.6 million and diluted earnings per common share (“EPS”) of $1.56, which represent the highest third quarter results in Company history. Third quarter 2023 results include a life insurance gain which increased EPS $0.01. Third quarter 2023 results compare to second quarter 2023 net income of $40.2 million and EPS of $1.51.

“Westamerica’s third 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 third quarter 2023. The annualized cost of funding our loan and bond portfolios was 0.07 percent in the third quarter 2023. The Company’s customer deposits and shareholders’ equity fully funded our interest earning assets during the third quarter 2023; the Company did not borrow from the Federal Reserve Bank or correspondent banks. Operating expenses remained well controlled. Nonperforming assets were a stable $1.2 million at September 30, 2023,” said Chairman, President and CEO David Payne. “Third quarter 2023 results generated an annualized 18.3 percent return on average common equity. Shareholders were paid a $0.44 per common share dividend during the third quarter 2023,” concluded Payne.

Net interest income on a fully-taxable equivalent (FTE) basis was $72.1 million for the third quarter 2023, compared to $70.3 million for the second quarter 2023. The annualized yield earned on loans, bonds and cash for the third quarter 2023 was 4.50 percent, up from 4.38 percent for the second quarter 2023. The annualized cost of funding the loan and bond portfolios was 0.07 percent for the third quarter 2023, compared to 0.04 percent for the second quarter 2023. Variable rate assets at September 30, 2023 included $1.5 billion in collateralized loan obligations on which interest rates reset quarterly.

The Company provided $400 thousand for credit losses on loans in the third quarter 2023. The Allowance for Credit Losses on Loans was $17.7 million at September 30, 2023.

Noninterest income for the third quarter 2023 totaled $11.3 million compared to $10.7 million for the second quarter 2023. Third quarter 2023 results include a $278 thousand life insurance gain.

Noninterest expenses for the third quarter 2023 were $25.7 million compared to $25.8 million for the second quarter 2023.

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 June 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 October 19, 2023
WESTAMERICA BANCORPORATION
FINANCIAL HIGHLIGHTS
September 30, 2023
1. Net Income Summary.
		(in thousands except per-share amounts)
								%
		Q3’2023			Q3’2022			Change		Q2’2023
	Net Interest and Fee Income (FTE)	$	72,092		$	60,780		18.6	%	$	70,281
	Provision for Credit Losses		400			-		n/m			-
	Noninterest Income		11,281			11,818		-4.5	%		10,700
	Noninterest Expense		25,650			24,767		3.6	%		25,839
	Income Before Taxes (FTE)		57,323			47,831		19.8	%		55,142
	Income Tax Provision (FTE)		15,722			13,071		20.3	%		14,894
	Net Income	$	41,601		$	34,760		19.7	%	$	40,248
	Average Common Shares Outstanding		26,648			26,906		-1.0	%		26,648
	Diluted Average Common Shares Outstanding		26,650			26,916		-1.0	%		26,648
	Operating Ratios:
	Basic Earnings Per Common Share	$	1.56		$	1.29		20.9	%	$	1.51
	Diluted Earnings Per Common Share		1.56			1.29		20.9	%		1.51
	Return On Assets (a)		2.41	%		1.85	%				2.35	%
	Return On Common Equity (a)		18.3	%		17.1	%				18.4	%
	Net Interest Margin (FTE) (a)		4.43	%		3.44	%				4.34	%
	Efficiency Ratio (FTE)		30.8	%		34.1	%				31.9	%
	Dividends Paid Per Common Share	$	0.44		$	0.42		4.8	%	$	0.42
	Common Dividend Payout Ratio		28	%		33	%				28	%
								%
		9/30’23YTD			9/30’22YTD			Change
	Net Interest and Fee Income (FTE)	$	211,935		$	152,620		38.9	%
	Reversal of Provision for Credit Losses (2)		(1,150	)		-		n/m
	Noninterest Income (1)		32,530			34,658		-6.1	%
	Noninterest Expense		77,699			74,271		4.6	%
	Income Before Taxes (FTE)		167,916			113,007		48.6	%
	Income Tax Provision (FTE)		45,616			30,317		50.5	%
	Net Income	$	122,300		$	82,690		47.9	%
	Average Common Shares Outstanding		26,718			26,889		-0.6	%
	Diluted Average Common Shares Outstanding		26,721			26,901		-0.7	%
	Operating Ratios:
	Basic Earnings Per Common Share	$	4.58		$	3.08		48.7	%
	Diluted Earnings Per Common Share		4.58			3.07		49.2	%
	Return On Assets (a)		2.36	%		1.49	%
	Return On Common Equity (a)		18.6	%		14.0	%
	Net Interest Margin (FTE) (a)		4.32	%		2.90	%
	Efficiency Ratio (FTE)		31.8	%		39.7	%
	Dividends Paid Per Common Share	$	1.28		$	1.26		1.6	%
	Common Dividend Payout Ratio		28	%		41	%
2. Net Interest Income.
		(dollars in thousands)
								%
		Q3’2023			Q3’2022			Change		Q2’2023
	Interest and Fee Income (FTE)	$	73,225		$	61,267		19.5	%	$	70,888
	Interest Expense		1,133			487		132.6	%		607
	Net Interest and Fee Income (FTE)	$	72,092		$	60,780		18.6	%	$	70,281
	Average Earning Assets	$	6,438,411		$	7,041,313		-8.6	%	$	6,457,270
	Average Interest- Bearing Liabilities		3,118,632			3,520,083		-11.4	%		3,144,264
	Yield on Earning Assets (FTE) (a)		4.50	%		3.47	%				4.38	%
	Cost of Funds (a)		0.07	%		0.03	%				0.04	%
	Net Interest Margin (FTE) (a)		4.43	%		3.44	%				4.34	%
	Interest Expense/
	Interest-Bearing Liabilities (a)		0.14	%		0.05	%				0.08	%
	Net Interest Spread (FTE) (a)		4.36	%		3.42	%				4.30	%
								%
		9/30’23YTD			9/30’22YTD			Change
	Interest and Fee Income (FTE)	$	214,146		$	154,070		39.0	%
	Interest Expense		2,211			1,450		52.5	%
	Net Interest and Fee Income (FTE)	$	211,935		$	152,620		38.9	%
	Average Earning Assets	$	6,519,448		$	7,013,627		-7.0	%
	Average Interest- Bearing Liabilities		3,182,734			3,538,361		-10.1	%
	Yield on Earning Assets (FTE) (a)		4.36	%		2.93	%
	Cost of Funds (a)		0.04	%		0.03	%
	Net Interest Margin (FTE) (a)		4.32	%		2.90	%
	Interest Expense/
	Interest-Bearing Liabilities (a)		0.09	%		0.05	%
	Net Interest Spread (FTE) (a)		4.27	%		2.88	%
3. Loans & Other Earning Assets.
		(average volume, dollars in thousands)
								%
		Q3’2023			Q3’2022			Change		Q2’2023
	Total Assets	$	6,847,691		$	7,472,304		-8.4	%	$	6,865,591
	Total Earning Assets		6,438,411			7,041,313		-8.6	%		6,457,270
	Total Loans		903,854			989,033		-8.6	%		926,795
	Commercial Loans		151,431			190,325		-20.4	%		157,975
	Commercial Real Estate Loans		493,072			494,717		-0.3	%		491,902
	Consumer Loans		259,351			303,991		-14.7	%		276,918
	Total Investment Securities		5,247,118			5,552,588		-5.5	%		5,365,377
	Debt Securities Available for Sale		4,353,794			4,845,055		-10.1	%		4,460,339
	Debt Securities Held to Maturity		893,324			707,533		26.3	%		905,038
	Total Interest-Bearing Cash		287,439			499,692		-42.5	%		165,098
	Loans/Deposits		15.8	%		15.2	%				16.0	%
								%
		9/30’23YTD			9/30’22YTD			Change
	Total Assets	$	6,940,897		$	7,433,140		-6.6	%
	Total Earning Assets		6,519,448			7,013,627		-7.0	%
	Total Loans		925,351			1,009,314		-8.3	%
	Commercial Loans		158,204			200,206		-21.0	%
	Commercial Real Estate Loans		492,702			508,812		-3.2	%
	Consumer Loans		274,445			300,296		-8.6	%
	Total Investment Securities		5,385,986			5,172,003		4.1	%
	Debt Securities Available for Sale		4,482,376			4,741,400		-5.5	%
	Debt Securities Held to Maturity		903,610			430,603		109.8	%
	Total Interest-Bearing Cash		208,111			832,310		-75.0	%
	Loans/Deposits		15.8	%		15.7	%
4. Deposits, Other Interest-Bearing Liabilities & Equity.
		(average volume, dollars in thousands)
								%
		Q3’2023			Q3’2022			Change		Q2’2023
	Total Deposits	$	5,722,817		$	6,495,051		-11.9	%	$	5,797,504
	Noninterest Demand		2,721,358			3,058,662		-11.0	%		2,751,319
	Interest-Bearing Transaction		1,149,483			1,308,310		-12.1	%		1,159,653
	Savings		1,741,994			1,989,275		-12.4	%		1,763,410
	Time greater than $100K		43,073			62,014		-30.5	%		53,901
	Time less than $100K		66,909			76,790		-12.9	%		69,221
	Total Short-Term Borrowings		117,173			83,694		40.0	%		98,079
	Shareholders’ Equity		902,300			807,428		11.7	%		877,964
	Demand Deposits/ Total Deposits		47.6	%		47.1	%				47.5	%
	Transaction & Savings Deposits / Total Deposits		98.1	%		97.9	%				97.9	%
								%
		9/30’23YTD			9/30’22YTD			Change
	Total Deposits	$	5,859,506		$	6,437,943		-9.0	%
	Noninterest Demand		2,774,282			3,020,892		-8.2	%
	Interest-Bearing Transaction		1,180,551			1,290,850		-8.5	%
	Savings		1,783,891			1,984,931		-10.1	%
	Time greater than $100K		51,481			63,318		-18.7	%
	Time less than $100K		69,301			77,952		-11.1	%
	Total Short-Term Borrowings		97,510			121,310		-19.6	%
	Shareholders’ Equity		879,740			790,691		11.3	%
	Demand Deposits/ Total Deposits		47.3	%		46.9	%
	Transaction & Savings Deposits / Total Deposits		97.9	%		97.8	%
5. Interest Yields Earned & Rates Paid.
		(dollars in thousands)
		Q3’2023
		Average			Income/			Yield (a) /
		Volume			Expense			Rate (a)
	Interest & Fee Income Earned:
	Total Earning Assets (FTE)	$	6,438,411		$	73,225		4.50	%
	Total Loans (FTE)		903,854			12,016		5.27	%
	Commercial Loans (FTE)		151,431			2,743		7.19	%
	Commercial Real Estate Loans		493,072			5,914		4.76	%
	Consumer Loans		259,351			3,359		5.14	%
	Total Investments (FTE)		5,247,118			57,280		4.32	%
	Total Debt Securities Available for Sale (FTE)		4,353,794			48,285		4.38	%
	Corporate Securities		2,148,308			14,851		2.77	%
	Collateralized Loan Obligations		1,530,992			28,023		7.16	%
	Agency Mortgage Backed Securities		276,755			1,676		2.42	%
	Securities of U.S. Government sponsored
	entities		307,106			2,777		3.62	%
	Obligations of States and Political
	Subdivisions (FTE)		76,406			573		3.00	%
	Other Debt Securities Available for Sale (FTE)		14,227			385		10.82	%
	Total Debt Securities Held to Maturity (FTE)		893,324			8,995		4.03	%
	Agency Mortgage Backed Securities		88,147			475		2.16	%
	Corporate Securities		725,862			7,815		4.31	%
	Obligations of States and Political
	Subdivisions (FTE)		79,315			705		3.55	%
	Total Interest-Bearing Cash		287,439			3,929		5.35	%
	Interest Expense Paid:
	Total Earning Assets		6,438,411			1,133		0.07	%
	Total Interest-Bearing Liabilities		3,118,632			1,133		0.14	%
	Total Interest-Bearing Deposits		3,001,459			1,095		0.14	%
	Interest-Bearing Transaction		1,149,483			131		0.05	%
	Savings		1,741,994			886		0.20	%
	Time less than $100K		66,909			52		0.31	%
	Time greater than $100K		43,073			26		0.24	%
	Total Short-Term Borrowings		117,173			38		0.13	%
	Net Interest Income and
	Margin (FTE)				$	72,092		4.43	%
		Q3’2022
		Average			Income/			Yield (a) /
		Volume			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	%
	Commercial Loans (FTE)		190,325			2,843		5.93	%
	Commercial Real Estate 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	%
6. Noninterest Income.
		(dollars in thousands except per-share amounts)
								%
		Q3’2023			Q3’2022			Change		Q2’2023
	Service Charges on Deposit Accounts	$	3,705		$	3,737		-0.9	%	$	3,459
	Merchant Processing Services		2,911			2,925		-0.5	%		2,869
	Debit Card Fees		1,717			1,594		7.7	%		1,759
	Trust Fees		783			810		-3.3	%		810
	ATM Processing Fees		640			594		7.7	%		702
	Other Service Fees		463			463		0.1	%		458
	Financial Services Commissions		78			79		-1.3	%		103
	Life Insurance Gains		278			923		n/m			-
	Securities Losses		-			-		n/m			(125	)
	Other Noninterest Income		706			693		1.9	%		665
	Total Noninterest Income	$	11,281		$	11,818		-4.5	%	$	10,700
	Operating Ratios:
	Total Revenue (FTE)	$	83,373		$	72,598		14.8	%	$	80,981
	Noninterest Income/Revenue (FTE)		13.5	%		16.3	%				13.2	%
	Service Charges/Avg. Deposits (a)		0.26	%		0.23	%				0.24	%
	Total Revenue (FTE) Per Avg.
	Common Share (a)	$	12.41		$	10.70		15.9	%	$	12.19
								%
		9/30’23YTD			9/30’22YTD			Change
	Service Charges on Deposit Accounts	$	10,629		$	11,006		-3.4	%
	Merchant Processing Services		8,417			8,922		-5.7	%
	Debit Card Fees (1)		5,118			6,175		-17.1	%
	Trust Fees		2,358			2,462		-4.2	%
	ATM Processing Fees		1,996			1,514		31.8	%
	Other Service Fees		1,320			1,392		-5.2	%
	Financial Services Commissions		270			314		-14.0	%
	Life Insurance Gains		278			923		n/m
	Securities Losses		(125	)		-		n/m
	Other Noninterest Income		2,269			1,950		16.4	%
	Total Noninterest Income	$	32,530		$	34,658		-6.1	%
	Operating Ratios:
	Total Revenue (FTE)	$	244,465		$	187,278		30.5	%
	Noninterest Income/Revenue (FTE)		13.3	%		18.5	%
	Service Charges/Avg. Deposits (a)		0.24	%		0.23	%
	Total Revenue (FTE) Per Avg.
	Common Share (a)	$	12.23		$	9.31		31.4	%
7. Noninterest Expense.
		(dollars in thousands)
								%
		Q3’2023			Q3’2022			Change		Q2’2023
	Salaries & Benefits	$	11,820		$	11,311		4.5	%	$	11,828
	Occupancy and Equipment		5,065			5,064		0.0	%		5,012
	Outsourced Data Processing		2,473			2,434		1.6	%		2,488
	Limited Partnership Operating Losses		1,440			1,431		0.6	%		1,440
	Professional Fees		401			582		-31.1	%		485
	Courier Service		745			671		11.0	%		611
	Other Noninterest Expense		3,706			3,274		13.2	%		3,975
	Total Noninterest Expense	$	25,650		$	24,767		3.6	%	$	25,839
	Operating Ratios:
	Noninterest Expense/ Avg. Earning Assets (a)		1.58	%		1.40	%				1.60	%
	Noninterest Expense/Revenues (FTE)		30.8	%		34.1	%				31.9	%
								%
		9/30’23YTD			9/30’22YTD			Change
	Salaries & Benefits	$	35,715		$	34,643		3.1	%
	Occupancy and Equipment		15,562			14,666		6.1	%
	Outsourced Data Processing		7,405			7,294		1.5	%
	Limited Partnership Operating Losses		4,314			4,293		0.5	%
	Professional Fees		1,362			2,054		-33.7	%
	Courier Service		1,971			1,914		3.0	%
	Other Noninterest Expense		11,370			9,407		20.9	%
	Total Noninterest Expense	$	77,699		$	74,271		4.6	%
	Operating Ratios:
	Noninterest Expense/ Avg. Earning Assets (a)		1.59	%		1.42	%
	Noninterest Expense/Revenues (FTE)		31.8	%		39.7	%
8. Allowance for Credit Losses.
		(dollars in thousands)
								%
		Q3’2023			Q3’2022			Change		Q2’2023
	Average Total Loans	$	903,854		$	989,033		-8.6	%	$	926,795
	Beginning of Period Allowance for
	Credit Losses on Loans (ACLL)	$	18,480		$	22,313		-17.2	%	$	19,509
	Provision for Credit Losses		400			-		n/m			-
	Net ACLL Losses		(1,136	)		(1,095	)	3.7	%		(1,029	)
	End of Period ACLL	$	17,744		$	21,218		-16.4	%	$	18,480
	Gross ACLL Recoveries / Gross ACLL Losses		46	%		43	%				38	%
	Net ACLL Losses /
	Avg. Total Loans (a)		0.50	%		0.44	%				0.45	%
								%
		9/30’23YTD			9/30’22YTD			Change
	Average Total Loans	$	925,351		$	1,009,314		-8.3	%
	Beginning of Period ACLL	$	20,284		$	23,514		-13.7	%
	Reversal of Provision for Credit Losses (2)		(1,150	)		-		n/m
	Net ACLL Losses		(1,390	)		(2,296	)	-39.5	%
	End of Period ACLL	$	17,744		$	21,218		-16.4	%
	Gross ACLL Recoveries / Gross ACLL Losses		76	%		49	%
	Net ACLL Losses / Avg. Total Loans (a)		0.20	%		0.30	%
		(dollars in thousands)
								%
		9/30/23			9/30/22			Change		6/30/23
	Allowance for Credit Losses on Loans	$	17,744		$	21,218		-16.4	%	$	18,480
	Allowance for Credit Losses on
	Held to Maturity Securities		1			7		-85.5	%		1
	Total Allowance for Credit Losses	$	17,745		$	21,225		-16.4	%	$	18,481
	Allowance for Unfunded
	Credit Commitments	$	201		$	201		0.0	%	$	201
9. Credit Quality.
		(dollars in thousands)
								%
		9/30/23			9/30/22			Change		6/30/23
	Nonperforming Loans:
	Nonperforming Nonaccrual Loans	$	205		$	131		56.5	%	$	192
	Performing Nonaccrual Loans		4			66		-93.9	%		5
	Total Nonaccrual Loans		209			197		6.1	%		197
	90+ Days Past Due Accruing Loans		1,029			769		33.8	%		656
	Total Nonperforming Loans	$	1,238		$	966		28.2	%	$	853
	Total Loans Outstanding	$	885,850		$	979,033		-9.5	%	$	919,583
	Total Assets		6,567,288			7,177,025		-8.5	%		6,582,740
	Loans:
	Allowance for Credit Losses on Loans	$	17,744		$	21,218		-16.4	%	$	18,480
	Allowance for Credit Losses on Loans /
	Loans		2.00	%		2.17	%				2.01	%
	Nonperforming Loans/Total Loans		0.14	%		0.10	%				0.09	%
10. Liquidity.
	At September 30, 2023, the Company had $420,550 thousand in cash balances. During the twelve months ending September 30, 2024, the Company expects to receive $257,000 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 September 30, 2023, the Company’s debt securities which qualify as collateral for borrowing totaled $3,810,723 thousand. In the ordinary course of business, the Company pledges debt securities as collateral for certain depository customers; at September 30, 2023, the Company had pledged $680,735 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 September 30, 2023, the Company had pledged $964,139 thousand in debt securities at the Federal Reserve Bank. During the nine months ended September 30, 2023, the Company’s average borrowings from the Federal Reserve Bank and other correspondent banks were $-0- thousand, and at September 30, 2023, the Company’s borrowings from the Federal Reserve Bank and other correspondent banks were $-0- thousand. At September 30, 2023, the Company’s estimated unpledged collateral qualifying debt securities totaled $1,930,927 thousand. Debt securities eligible as collateral are shown at market value unless otherwise noted.
										(in thousands)
										9/30/23
	Debt Securities Eligible as Collateral:
	Corporate Securities									$	2,480,972
	Collateralized Loan Obligations rated AAA										540,315
	Obligations of States and Political Subdivisions										145,246
	Agency Mortgage Backed Securities										317,357
	Securities of U.S. Government Sponsored Entities (Par Value)										326,833
	Total Debt Securities Eligible as Collateral									$	3,810,723
	Debt Securities Pledged as Collateral:
	Deposits by Public Entities									($	680,735	)
	Short-Term Borrowed Funds (Deposit Sweep)										(229,278	)
	Other										(5,644	)
	Total Debt Securities Pledged as Collateral									($	915,657	)
	Debt Securities Pledged at the Federal Reserve Bank									($	964,139	)
	Estimated Debt Securities Available to Pledge									$	1,930,927
11. Capital.
		(in thousands, except per-share amounts)
								%
		9/30/23			9/30/22			Change		6/30/23
	Shareholders’ Equity	$	648,423		$	538,988		20.3	%	$	651,862
	Total Assets		6,567,288			7,177,025		-8.5	%		6,582,740
	Shareholders’ Equity/
	Total Assets		9.87	%		7.51	%				9.90	%
	Shareholders’ Equity/
	Total Loans		73.20	%		55.05	%				70.89	%
	Tangible Common Equity Ratio		8.17	%		5.91	%				8.20	%
	Common Shares Outstanding		26,649			26,911		-1.0	%		26,648
	Common Equity Per Share	$	24.33		$	20.03		21.5	%	$	24.46
	Market Value Per Common Share		43.25			52.29		-17.3	%		38.30
		(shares in thousands)
								%
		Q3’2023			Q3’2022			Change		Q2’2023
	Share Repurchase Programs:
	Total Shares Repurchased / Canceled		-			-		n/m			-
	Average Repurchase Price	$	-		$	-		n/m		$	-
	Net Shares Issued		(1	)		(15	)	n/m			-
								%
		9/30’23YTD			9/30’22YTD			Change
	Total Shares Repurchased		274			3		n/m
	Average Repurchase Price	$	50.11		$	58.66		n/m
	Net Shares Repurchased (Issued)		264			(45	)	n/m
12. Period-End Balance Sheets.
		(unaudited, dollars in thousands)
								%
		9/30/23			9/30/22			Change		6/30/23
	Assets:
	Cash and Due from Banks	$	420,550		$	413,665		1.7	%	$	266,187
	Debt Securities Available for Sale
	Corporate Securities		1,814,424			2,138,508		-15.2	%		1,901,504
	Collateralized Loan Obligations		1,503,078			1,587,622		-5.3	%		1,514,962
	Agency Mortgage Backed Securities		239,728			296,689		-19.2	%		259,190
	Securities of U.S. Government sponsored
	entities		279,364			272,525		2.5	%		291,402
	Obligations of States and Political
	Subdivisions		69,639			80,987		-14.0	%		79,400
	Total Debt Securities Available for Sale		3,906,233			4,376,331		-10.7	%		4,046,458
	Debt Securities Held to Maturity
	Agency Mortgage Backed Securities		84,347			112,371		-24.9	%		91,141
	Corporate Securities		726,951			720,154		0.9	%		725,252
	Obligations of States and Political
	Subdivisions (3)		77,558			103,742		-25.2	%		83,963
	Total Debt Securities Held to Maturity (3)		888,856			936,267		-5.1	%		900,356
	Loans		885,850			979,033		-9.5	%		919,583
	Allowance For Credit Losses on Loans		(17,744	)		(21,218	)	-16.4	%		(18,480	)
	Total Loans, net		868,106			957,815		-9.4	%		901,103
	Premises and Equipment, net		27,490			29,756		-7.6	%		27,908
	Identifiable Intangibles, net		404			644		-37.3	%		463
	Goodwill		121,673			121,673		0.0	%		121,673
	Other Assets		333,976			340,874		-2.0	%		318,592
	Total Assets	$	6,567,288		$	7,177,025		-8.5	%	$	6,582,740
	Liabilities and Shareholders’ Equity:
	Deposits:
	Noninterest-Bearing	$	2,723,403		$	3,069,907		-11.3	%	$	2,721,046
	Interest-Bearing Transaction		1,138,220			1,338,855		-15.0	%		1,133,006
	Savings		1,732,849			1,949,711		-11.1	%		1,735,083
	Time		104,541			136,783		-23.6	%		116,792
	Total Deposits		5,699,013			6,495,256		-12.3	%		5,705,927
	Short-Term Borrowed Funds		115,341			76,886		50.0	%		138,005
	Other Liabilities		104,511			65,895		58.6	%		86,946
	Total Liabilities		5,918,865			6,638,037		-10.8	%		5,930,878
	Shareholders’ Equity:
	Common Equity:
	Paid-In Capital		471,862			474,732		-0.6	%		471,510
	Accumulated Other
	Comprehensive Loss		(285,709	)		(290,797	)	-1.7	%		(252,043	)
	Retained Earnings		462,270			355,053		30.2	%		432,395
	Total Shareholders’ Equity		648,423			538,988		20.3	%		651,862
	Total Liabilities and
	Shareholders’ Equity	$	6,567,288		$	7,177,025		-8.5	%	$	6,582,740
13. Income Statements.
		(unaudited, in thousands except per-share amounts)
								%
		Q3’2023			Q3’2022			Change		Q2’2023
	Interest & Fee Income:
	Loans	$	11,925		$	12,208		-2.3	%	$	11,845
	Equity Securities		152			127		19.7	%		152
	Debt Securities Available for Sale		47,994			39,100		22.7	%		47,452
	Debt Securities Held to Maturity		8,848			6,625		33.5	%		8,930
	Interest-Bearing Cash		3,929			2,742		43.3	%		2,110
	Total Interest & Fee Income		72,848			60,802		19.8	%		70,489
	Interest Expense:
	Transaction Deposits		131			94		39.4	%		104
	Savings Deposits		886			290		205.5	%		396
	Time Deposits		78			86		-9.3	%		82
	Short-Term Borrowed Funds		38			17		123.5	%		25
	Total Interest Expense		1,133			487		132.6	%		607
	Net Interest Income		71,715			60,315		18.9	%		69,882
	Provision for Credit Losses		400			-		n/m			-
	Noninterest Income:
	Service Charges on Deposit Accounts		3,705			3,737		-0.9	%		3,459
	Merchant Processing Services		2,911			2,925		-0.5	%		2,869
	Debit Card Fees		1,717			1,594		7.7	%		1,759
	Trust Fees		783			810		-3.3	%		810
	ATM Processing Fees		640			594		7.7	%		702
	Other Service Fees		463			463		0.1	%		458
	Financial Services Commissions		78			79		-1.3	%		103
	Life Insurance Gains		278			923		n/m			-
	Securities Losses		-			-		n/m			(125	)
	Other Noninterest Income		706			693		1.9	%		665
	Total Noninterest Income		11,281			11,818		-4.5	%		10,700
	Noninterest Expense:
	Salaries and Related Benefits		11,820			11,311		4.5	%		11,828
	Occupancy and Equipment		5,065			5,064		0.0	%		5,012
	Outsourced Data Processing		2,473			2,434		1.6	%		2,488
	Limited Partnership Operating Losses		1,440			1,431		0.6	%		1,440
	Professional Fees		401			582		-31.1	%		485
	Courier Service		745			671		11.0	%		611
	Other Noninterest Expense		3,706			3,274		13.2	%		3,975
	Total Noninterest Expense		25,650			24,767		3.6	%		25,839
	Income Before Income Taxes		56,946			47,366		20.2	%		54,743
	Income Tax Provision		15,345			12,606		21.7	%		14,495
	Net Income	$	41,601		$	34,760		19.7	%	$	40,248
	Average Common Shares Outstanding		26,648			26,906		-1.0	%		26,648
	Diluted Average Common Shares Outstanding		26,650			26,916		-1.0	%		26,648
	Per Common Share Data:
	Basic Earnings	$	1.56		$	1.29		20.9	%	$	1.51
	Diluted Earnings		1.56			1.29		20.9	%		1.51
	Dividends Paid		0.44			0.42		4.8	%		0.42
								%
		9/30’23YTD			9/30’22YTD			Change
	Interest & Fee Income:
	Loans	$	35,510		$	37,481		-5.3	%
	Equity Securities		456			384		18.8	%
	Debt Securities Available for Sale		142,256			99,430		43.1	%
	Debt Securities Held to Maturity		26,758			10,040		166.5	%
	Interest-Bearing Cash		7,981			5,223		52.8	%
	Total Interest & Fee Income		212,961			152,558		39.6	%
	Interest Expense:
	Transaction Deposits		329			273		20.5	%
	Savings Deposits		1,562			861		81.4	%
	Time Deposits		244			249		-2.0	%
	Short-Term Borrowed Funds		76			67		13.4	%
	Total Interest Expense		2,211			1,450		52.5	%
	Net Interest Income		210,750			151,108		39.5	%
	Reversal of Provision for Credit Losses (2)		(1,150	)		-		n/m
	Noninterest Income:
	Service Charges on Deposit Accounts		10,629			11,006		-3.4	%
	Merchant Processing Services		8,417			8,922		-5.7	%
	Debit Card Fees (1)		5,118			6,175		-17.1	%
	Trust Fees		2,358			2,462		-4.2	%
	ATM Processing Fees		1,996			1,514		31.8	%
	Other Service Fees		1,320			1,392		-5.2	%
	Financial Services Commissions		270			314		-14.0	%
	Life Insurance Gains		278			923		n/m
	Securities Losses		(125	)		-		n/m
	Other Operating		2,269			1,950		16.4	%
	Total Noninterest Income		32,530			34,658		-6.1	%
	Noninterest Expense:
	Salaries and Related Benefits		35,715			34,643		3.1	%
	Occupancy and Equipment		15,562			14,666		6.1	%
	Outsourced Data Processing		7,405			7,294		1.5	%
	Limited Partnership Operating Losses		4,314			4,293		0.5	%
	Professional Fees		1,362			2,054		-33.7	%
	Courier Service		1,971			1,914		3.0	%
	Other Operating		11,370			9,407		20.9	%
	Total Noninterest Expense		77,699			74,271		4.6	%
	Income Before Income Taxes		166,731			111,495		49.5	%
	Income Tax Provision		44,431			28,805		54.2	%
	Net Income	$	122,300		$	82,690		47.9	%
	Average Common Shares Outstanding		26,718			26,889		-0.6	%
	Diluted Average Common Shares Outstanding		26,721			26,901		-0.7	%
	Per Common Share Data:
	Basic Earnings	$	4.58		$	3.08		48.7	%
	Diluted Earnings		4.58			3.07		49.2	%
	Dividends Paid		1.28			1.26		1.6	%
	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 September 30, 2023 and June 30, 2023, and $7 thousand at September 30, 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