SAN RAFAEL, Calif., April 21, 2022 (GLOBE NEWSWIRE) -- Westamerica Bancorporation (Nasdaq: WABC), parent company of Westamerica Bank, generated net income for the first quarter 2022 of $22.6 million and diluted earnings per common share ("EPS") of $0.84. First quarter 2022 results compare to net income of $21.7 million and EPS of $0.81 for the fourth quarter 2021.
"Westamerica is well positioned for rising interest rates. The Company’s interest-earning assets include meaningful amounts of instruments with variable interest rates, and average checking and savings deposits represented ninety-eight percent of the Company’s deposit base for the first quarter 2022, demonstrating minimal reliance on higher-costing time deposits. Operating expenses remained well managed in the first quarter 2022, delivering fifty-five percent of revenue to pre-tax income. Credit quality remained solid with nonperforming loans of $915 thousand at March 31, 2022,” said Chairman, President and CEO David Payne. “First quarter 2022 results generated an annualized 11.8 percent return on average common equity. Shareholders were paid a $0.42 per common share dividend during the first quarter 2022, representing fifty percent of diluted earnings per share,” concluded Payne.
Net interest income on a fully-taxable equivalent (FTE) basis was $43.8 million for the first quarter 2022, compared to $43.1 million for the fourth quarter 2021. Interest income on Paycheck Protection Program (“PPP”) loans was $849 thousand for the first quarter 2022, compared to $1.2 million for the fourth quarter 2021.
Interest-earning assets with variable interest rates at March 31, 2022 included $1.6 billion in collateralized loan obligations for which interest rates reset quarterly, and $922 million in interest-bearing cash balances for which the interest rate changes concurrently with Federal Open Market Committee adjustments to the federal funds rate.
At March 31, 2022, nonperforming loans totaled $915 thousand and the allowance for credit losses on loans was $22.9 million.
Noninterest income for the first quarter 2022 totaled $11.6 million, compared to noninterest income for the fourth quarter 2021 of $10.8 million. Noninterest income for the first quarter 2022 included a $1.2 million reconciling payment from a payments network.
Noninterest expenses for the first quarter 2022 was $24.9 million compared to $23.9 million for the fourth quarter 2021; the higher first quarter noninterest expenses were primarily the seasonal increase in payroll taxes, wage and salary adjustments to comply with California minimum wage laws, and higher estimated operating losses on limited partnership investments in low-income housing properties.
The fully-tax equivalent (FTE) tax rate for the first quarter 2022 was 25.9 percent, compared to 27.7 percent for the fourth quarter 2021; the lower first quarter tax rate is primarily attributable to higher estimated tax credits from limited partnership investments in low-income housing properties.
Westamerica Bancorporation’s wholly owned subsidiary Westamerica Bank, operates commercial banking and trust offices throughout Northern and Central California.
Westamerica Bancorporation Web Address: www.westamerica.com
| For additional information contact: |
| Westamerica Bancorporation |
| 1108 Fifth Avenue, San Rafael, CA 94901 |
| Robert A. Thorson – SVP & Treasurer |
| 707-863-6840 |
| investments@westamerica.com |
FORWARD-LOOKING INFORMATION:
The following appears in accordance with the Private Securities Litigation Reform Act of 1995:
This press release may contain forward-looking statements about the Company, including descriptions of plans or objectives of its management for future operations, products or services, and forecasts of its revenues, earnings or other measures of economic performance. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words "believe," "expect," "anticipate," "intend," "plan," "estimate," or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could," or "may."
Forward-looking statements, by their nature, are subject to risks and uncertainties. A number of factors — many of which are beyond the Company's control — could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. The Company's most recent reports filed with the Securities and Exchange Commission, including the annual report for the year ended December 31, 2021 filed on Form 10-K and quarterly report for the quarter ended September 30, 2021 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.
| Public Information April 21, 2022 | |||||||||||||
| WESTAMERICA BANCORPORATION | |||||||||||||
| FINANCIAL HIGHLIGHTS | |||||||||||||
| March 31, 2022 | |||||||||||||
| 1. Net Income Summary. | |||||||||||||
| (in thousands except per-share amounts) | |||||||||||||
| % | |||||||||||||
| Q1'2022 | Q1'2021 | Change | Q4'2021 | ||||||||||
| Net Interest and Fee Income (FTE) | $43,807 | $42,583 | 2.9 | % | $43,117 | ||||||||
| Provision for Credit Losses | - | - | n/m | - | |||||||||
| Noninterest Income(1) | 11,576 | 10,189 | 13.6 | % | 10,842 | ||||||||
| Noninterest Expense | 24,875 | 24,906 | -0.1 | % | 23,912 | ||||||||
| Income Before Taxes (FTE) | 30,508 | 27,866 | 9.5 | % | 30,047 | ||||||||
| Income Tax Provision (FTE) | 7,892 | 7,719 | 2.2 | % | 8,327 | ||||||||
| Net Income | $22,616 | $20,147 | 12.3 | % | $21,720 | ||||||||
| Average Common Shares Outstanding | 26,870 | 26,821 | 0.2 | % | 26,866 | ||||||||
| Diluted Average Common Shares | 26,885 | 26,842 | 0.2 | % | 26,875 | ||||||||
| Operating Ratios: | |||||||||||||
| Basic Earnings Per Common Share | $0.84 | $0.75 | 12.0 | % | $0.81 | ||||||||
| Diluted Earnings Per Common Share | 0.84 | 0.75 | 12.0 | % | 0.81 | ||||||||
| Return On Assets (a) | 1.24 | % | 1.23 | % | 1.17 | % | |||||||
| Return On Common Equity (a) | 11.8 | % | 11.1 | % | 11.2 | % | |||||||
| Net Interest Margin (FTE) (a) | 2.51 | % | 2.74 | % | 2.49 | % | |||||||
| Efficiency Ratio (FTE) | 44.9 | % | 47.2 | % | 44.3 | % | |||||||
| Dividends Paid Per Common Share | $0.42 | $0.41 | 2.4 | % | $0.42 | ||||||||
| Common Dividend Payout Ratio | 50 | % | 55 | % | 52 | % | |||||||
| 2. Net Interest Income. | |||||||||||||
| (dollars in thousands) | |||||||||||||
| % | |||||||||||||
| Q1'2022 | Q1'2021 | Change | Q4'2021 | ||||||||||
| Interest and Fee Income (FTE) | $44,287 | $43,058 | 2.9 | % | $43,621 | ||||||||
| Interest Expense | 480 | 475 | 1.1 | % | 504 | ||||||||
| Net Interest and Fee Income (FTE) | $43,807 | $42,583 | 2.9 | % | $43,117 | ||||||||
| Average Earning Assets | $6,998,234 | $6,244,622 | 12.1 | % | $6,919,528 | ||||||||
| Average Interest- | |||||||||||||
| Bearing Liabilities | 3,546,146 | 3,130,227 | 13.3 | % | 3,468,111 | ||||||||
| Yield on Earning Assets (FTE) (a) | 2.54 | % | 2.77 | % | 2.52 | % | |||||||
| Cost of Funds (a) | 0.03 | % | 0.03 | % | 0.03 | % | |||||||
| Net Interest Margin (FTE) (a) | 2.51 | % | 2.74 | % | 2.49 | % | |||||||
| Interest Expense/ | |||||||||||||
| Interest-Bearing Liabilities (a) | 0.05 | % | 0.06 | % | 0.06 | % | |||||||
| Net Interest Spread (FTE) (a) | 2.49 | % | 2.71 | % | 2.46 | % | |||||||
| 3. Loans & Other Earning Assets. | |||||||||||||
| (average volume, dollars in thousands) | |||||||||||||
| % | |||||||||||||
| Q1'2022 | Q1'2021 | Change | Q4'2021 | ||||||||||
| Total Assets | $7,406,321 | $6,650,164 | 11.4 | % | $7,334,977 | ||||||||
| Total Earning Assets | 6,998,234 | 6,244,622 | 12.1 | % | 6,919,528 | ||||||||
| Total Loans | 1,029,724 | 1,251,540 | -17.7 | % | 1,097,698 | ||||||||
| Total Commercial Loans | 207,901 | 395,473 | -47.4 | % | 259,007 | ||||||||
| Paycheck Protection Program (PPP) Loans | 35,871 | 188,971 | -81.0 | % | 68,870 | ||||||||
| Commercial Loans | 172,030 | 206,502 | -16.7 | % | 190,137 | ||||||||
| Commercial RE Loans | 524,040 | 559,191 | -6.3 | % | 538,177 | ||||||||
| Consumer Loans | 297,783 | 296,876 | 0.3 | % | 300,514 | ||||||||
| Total Investment Securities | 4,947,846 | 4,440,621 | 11.4 | % | 4,866,476 | ||||||||
| Debt Securities Available For Sale | 4,655,983 | 3,947,549 | 17.9 | % | 4,533,494 | ||||||||
| Debt Securities Held To Maturity | 291,863 | 493,072 | -40.8 | % | 332,982 | ||||||||
| Total Interest-Bearing Cash | 1,020,664 | 552,461 | 84.7 | % | 955,354 | ||||||||
| Loans/Deposits | 16.1 | % | 21.8 | % | 17.3 | % | |||||||
| 4. Deposits, Other Interest-Bearing Liabilities & Equity. | |||||||||||||
| (average volume, dollars in thousands) | |||||||||||||
| % | |||||||||||||
| Q1'2022 | Q1'2021 | Change | Q4'2021 | ||||||||||
| Total Deposits | $6,393,458 | $5,748,070 | 11.2 | % | $6,349,137 | ||||||||
| Noninterest Demand | 3,005,065 | 2,713,632 | 10.7 | % | 3,022,787 | ||||||||
| Interest-Bearing Transaction | 1,265,100 | 1,130,760 | 11.9 | % | 1,245,385 | ||||||||
| Savings | 1,980,092 | 1,746,815 | 13.4 | % | 1,934,220 | ||||||||
| Time greater than $100K | 64,172 | 71,241 | -9.9 | % | 65,920 | ||||||||
| Time less than $100K | 79,029 | 85,622 | -7.7 | % | 80,825 | ||||||||
| Total Short-Term Borrowings | 157,753 | 95,575 | 65.1 | % | 141,761 | ||||||||
| Other Borrowed Funds | - | 214 | -100.0 | % | - | ||||||||
| Shareholders' Equity | 776,225 | 735,496 | 5.5 | % | 766,358 | ||||||||
| Demand Deposits/ | |||||||||||||
| Total Deposits | 47.0 | % | 47.2 | % | 47.6 | % | |||||||
| Transaction & Savings | |||||||||||||
| Deposits / Total Deposits | 97.8 | % | 97.3 | % | 97.7 | % | |||||||
| 5. Interest Yields Earned & Rates Paid. | |||||||||||||
| (dollars in thousands) | |||||||||||||
| Q1'2022 | |||||||||||||
| Average | Income/ | Yield (a) / | |||||||||||
| Volume | Expense | Rate (a) | |||||||||||
| Interest & Fee Income Earned | |||||||||||||
| Total Earning Assets (FTE) | $6,998,234 | $44,287 | 2.54 | % | |||||||||
| Total Loans (FTE) | 1,029,724 | 13,038 | 5.14 | % | |||||||||
| Total Commercial Loans (FTE) | 207,901 | 2,843 | 5.55 | % | |||||||||
| PPP Loans | 35,871 | 849 | 9.60 | % | |||||||||
| Commercial Loans (FTE) | 172,030 | 1,994 | 4.70 | % | |||||||||
| Commercial RE Loans | 524,040 | 6,731 | 5.21 | % | |||||||||
| Consumer Loans | 297,783 | 3,464 | 4.72 | % | |||||||||
| Total Investments (FTE) | 4,947,846 | 30,770 | 2.49 | % | |||||||||
| Total Debt Securities Available For Sale (FTE) | 4,655,983 | 28,862 | 2.48 | % | |||||||||
| Corporate Securities | 2,701,476 | 18,488 | 2.74 | % | |||||||||
| Collateralized Loan Obligations | 1,464,266 | 7,045 | 1.92 | % | |||||||||
| Agency Mortgage Backed Securities | 385,900 | 2,256 | 2.34 | % | |||||||||
| Obligations of States and Political Subdivisions (FTE) | 89,998 | 694 | 3.08 | % | |||||||||
| Other Debt Securities Available For Sale (FTE) | 14,343 | 379 | 10.56 | % | |||||||||
| Total Debt Securities Held To Maturity (FTE) | 291,863 | 1,908 | 2.61 | % | |||||||||
| Agency Mortgage Backed Securities | 141,733 | 646 | 1.82 | % | |||||||||
| Obligations of States and Political Subdivisions (FTE) | 150,130 | 1,262 | 3.36 | % | |||||||||
| Total Interest-Bearing Cash | 1,020,664 | 479 | 0.19 | % | |||||||||
| Interest Expense Paid | |||||||||||||
| Total Earning Assets | 6,998,234 | 480 | 0.03 | % | |||||||||
| Total Interest-Bearing Liabilities | 3,546,146 | 480 | 0.05 | % | |||||||||
| Total Interest-Bearing Deposits | 3,388,393 | 452 | 0.05 | % | |||||||||
| Interest-Bearing Transaction | 1,265,100 | 88 | 0.03 | % | |||||||||
| Savings | 1,980,092 | 283 | 0.06 | % | |||||||||
| Time less than $100K | 79,029 | 40 | 0.21 | % | |||||||||
| Time greater than $100K | 64,172 | 41 | 0.26 | % | |||||||||
| Total Short-Term Borrowings | 157,753 | 28 | 0.07 | % | |||||||||
| Net Interest Income and | |||||||||||||
| Margin (FTE) | $43,807 | 2.51 | % | ||||||||||
| (dollars in thousands) | |||||||||||||
| Q1'2021 | |||||||||||||
| Average | Income/ | Yield (a) / | |||||||||||
| Volume | Expense | Rate (a) | |||||||||||
| Interest & Fee Income Earned | |||||||||||||
| Total Earning Assets (FTE) | $6,244,622 | $43,058 | 2.77 | % | |||||||||
| Total Loans (FTE) | 1,251,540 | 14,684 | 4.76 | % | |||||||||
| Total Commercial Loans (FTE) | 395,473 | 4,005 | 4.11 | % | |||||||||
| PPP Loans | 188,971 | 1,853 | 3.98 | % | |||||||||
| Commercial Loans (FTE) | 206,502 | 2,152 | 4.23 | % | |||||||||
| Commercial RE Loans | 559,191 | 7,341 | 5.32 | % | |||||||||
| Consumer Loans | 296,876 | 3,338 | 4.56 | % | |||||||||
| Total Investments (FTE) | 4,440,621 | 28,236 | 2.54 | % | |||||||||
| Total Debt Securities Available For Sale (FTE) | 3,947,549 | 25,190 | 2.55 | % | |||||||||
| Corporate Securities | 2,028,885 | 15,417 | 3.04 | % | |||||||||
| Collateralized Loan Obligations | 1,187,138 | 6,171 | 2.08 | % | |||||||||
| Agency Mortgage Backed Securities | 599,690 | 2,409 | 1.61 | % | |||||||||
| Obligations of States and Political Subdivisions (FTE) | 102,742 | 824 | 3.21 | % | |||||||||
| Other Debt Securities Available For Sale (FTE) | 29,094 | 369 | 5.07 | % | |||||||||
| Total Debt Securities Held To Maturity (FTE) | 493,072 | 3,046 | 2.47 | % | |||||||||
| Agency Mortgage Backed Securities | 228,768 | 900 | 1.57 | % | |||||||||
| Obligations of States and Political Subdivisions (FTE) | 264,304 | 2,146 | 3.25 | % | |||||||||
| Total Interest-Bearing Cash | 552,461 | 138 | 0.10 | % | |||||||||
| Interest Expense Paid | |||||||||||||
| Total Earning Assets | 6,244,622 | 475 | 0.03 | % | |||||||||
| Total Interest-Bearing Liabilities | 3,130,227 | 475 | 0.06 | % | |||||||||
| Total Interest-Bearing Deposits | 3,034,438 | 459 | 0.06 | % | |||||||||
| Interest-Bearing Transaction | 1,130,760 | 89 | 0.03 | % | |||||||||
| Savings | 1,746,815 | 250 | 0.06 | % | |||||||||
| Time less than $100K | 85,622 | 42 | 0.20 | % | |||||||||
| Time greater than $100K | 71,241 | 78 | 0.44 | % | |||||||||
| Total Short-Term Borrowings | 95,575 | 16 | 0.07 | % | |||||||||
| Other Borrowed Funds | 214 | - | 0.35 | % | |||||||||
| Net Interest Income and | |||||||||||||
| Margin (FTE) | $42,583 | 2.74 | % | ||||||||||
| 6. Noninterest Income. | |||||||||||||
| (dollars in thousands except per-share amounts) | |||||||||||||
| % | |||||||||||||
| Q1'2022 | Q1'2021 | Change | Q4'2021 | ||||||||||
| Service Charges on Deposits | $3,582 | $3,304 | 8.4 | % | $3,580 | ||||||||
| Merchant Processing Services | 2,623 | 2,560 | 2.5 | % | 3,000 | ||||||||
| Debit Card Fees(1) | 2,872 | 1,601 | 79.4 | % | 1,727 | ||||||||
| Trust Fees | 843 | 801 | 5.2 | % | 844 | ||||||||
| ATM Processing Fees | 451 | 601 | -25.0 | % | 488 | ||||||||
| Other Service Fees | 449 | 469 | -4.2 | % | 449 | ||||||||
| Financial Services Commissions | 117 | 70 | 67.1 | % | 96 | ||||||||
| Other Noninterest Income | 639 | 783 | -18.4 | % | 658 | ||||||||
| Total Noninterest Income | $11,576 | $10,189 | 13.6 | % | $10,842 | ||||||||
| Total Revenue (FTE) | $55,383 | $52,772 | 4.9 | % | $53,959 | ||||||||
| Noninterest Income/Revenue (FTE) | 20.9 | % | 19.3 | % | 20.1 | % | |||||||
| Service Charges/Avg. Deposits (a) | 0.23 | % | 0.23 | % | 0.22 | % | |||||||
| Total Revenues (FTE) Per Avg. | |||||||||||||
| Common Share (a) | $8.36 | $7.98 | 4.8 | % | $7.97 | ||||||||
| 7. Noninterest Expense. | |||||||||||||
| (dollars in thousands) | |||||||||||||
| % | |||||||||||||
| Q1'2022 | Q1'2021 | Change | Q4'2021 | ||||||||||
| Salaries & Benefits | $11,920 | $12,665 | -5.9 | % | $11,436 | ||||||||
| Occupancy and Equipment | 4,746 | 4,880 | -2.7 | % | 4,692 | ||||||||
| Outsourced Data Processing | 2,437 | 2,390 | 2.0 | % | 2,357 | ||||||||
| Professional Fees | 736 | 942 | -21.9 | % | 757 | ||||||||
| Courier Service | 582 | 504 | 15.5 | % | 572 | ||||||||
| Amortization of | |||||||||||||
| Identifiable Intangibles | 64 | 69 | -7.2 | % | 65 | ||||||||
| Other Noninterest Expense | 4,390 | 3,456 | 27.0 | % | 4,033 | ||||||||
| Total Noninterest Expense | $24,875 | $24,906 | -0.1 | % | $23,912 | ||||||||
| Noninterest Expense/ | |||||||||||||
| Avg. Earning Assets (a) | 1.44 | % | 1.62 | % | 1.37 | % | |||||||
| Noninterest Expense/Revenues (FTE) | 44.9 | % | 47.2 | % | 44.3 | % | |||||||
| 8. Allowance for Credit Losses. | |||||||||||||
| (dollars in thousands) | |||||||||||||
| % | |||||||||||||
| Q1'2022 | Q1'2021 | Change | Q4'2021 | ||||||||||
| Average Total Loans | $1,029,724 | $1,251,540 | -17.7 | % | $1,097,698 | ||||||||
| Beginning of Period Allowance for | |||||||||||||
| Credit Losses on Loans (ACLL) | $23,514 | $23,854 | -1.4 | % | $23,882 | ||||||||
| Provision for Credit Losses | - | - | n/m | - | |||||||||
| Net ACLL (Losses) | (589 | ) | (371 | ) | 58.8 | % | (368 | ) | |||||
| End of Period ACLL | $22,925 | $23,483 | -2.4 | % | $23,514 | ||||||||
| Gross ACLL Recoveries / | |||||||||||||
| Gross ACLL Losses | 51 | % | 60 | % | 64 | % | |||||||
| Net ACLL Losses / | |||||||||||||
| Avg. Total Loans (a) | 0.23 | % | 0.12 | % | 0.13 | % | |||||||
| (dollars in thousands) | |||||||||||||
| % | |||||||||||||
| 3/31/22 | 3/31/21 | Change | 12/31/21 | ||||||||||
| Allowance for Credit Losses on Loans | $22,925 | $23,483 | -2.4 | % | $23,514 | ||||||||
| Allowance for Credit Losses on | |||||||||||||
| HTM Securities(2) | 7 | 9 | -22.3 | % | 7 | ||||||||
| Total Allowance for Credit Losses | $22,932 | $23,492 | -2.4 | % | $23,521 | ||||||||
| Allowance for Unfunded | |||||||||||||
| Credit Commitments | $201 | $101 | 99.3 | % | $201 | ||||||||
| 9. Credit Quality. | |||||||||||||
| (dollars in thousands) | |||||||||||||
| % | |||||||||||||
| 3/31/22 | 3/31/21 | Change | 12/31/21 | ||||||||||
| Nonperforming Loans: | |||||||||||||
| Nonperforming Nonaccrual | $63 | $402 | -84.3 | % | $265 | ||||||||
| Performing Nonaccrual | 421 | 3,569 | -88.2 | % | 427 | ||||||||
| Total Nonaccrual Loans | 484 | 3,971 | -87.8 | % | 692 | ||||||||
| 90+ Days Past Due Accruing Loans | 431 | 132 | 226.5 | % | 339 | ||||||||
| Total Nonaccrual Loans | $915 | $4,103 | -77.7 | % | $1,031 | ||||||||
| Total Loans Outstanding | $1,002,514 | $1,293,756 | -22.5 | % | $1,068,126 | ||||||||
| Total Assets | 7,306,417 | 6,912,481 | 5.7 | % | 7,461,026 | ||||||||
| Loans: | |||||||||||||
| Allowance for Credit Losses on Loans | $22,925 | $23,483 | -2.4 | % | $23,514 | ||||||||
| Allowance for Credit Losses on Loans / | |||||||||||||
| Loans | 2.29 | % | 1.82 | % | 2.20 | % | |||||||
| Nonperforming Loans/Total Loans | 0.09 | % | 0.32 | % | 0.10 | % | |||||||
| 10. Capital. | |||||||||||||
| (in thousands, except per-share amounts) | |||||||||||||
| % | |||||||||||||
| 3/31/22 | 3/31/21 | Change | 12/31/21 | ||||||||||
| Shareholders' Equity | $701,744 | $812,132 | -13.6 | % | $827,102 | ||||||||
| Total Assets | 7,306,417 | 6,912,481 | 5.7 | % | 7,461,026 | ||||||||
| Shareholders' Equity/ | |||||||||||||
| Total Assets | 9.60 | % | 11.75 | % | 11.09 | % | |||||||
| Shareholders' Equity/ | |||||||||||||
| Total Loans | 70.00 | % | 62.77 | % | 77.43 | % | |||||||
| Tangible Common Equity Ratio | 8.06 | % | 10.15 | % | 9.60 | % | |||||||
| Common Shares Outstanding | 26,883 | 26,864 | 0.1 | % | 26,866 | ||||||||
| Common Equity Per Share | $26.10 | $30.23 | -13.7 | % | $30.79 | ||||||||
| Market Value Per Common Share | 60.50 | 62.78 | -3.6 | % | 57.73 | ||||||||
| (shares in thousands) | |||||||||||||
| % | |||||||||||||
| Q1'2022 | Q1'2021 | Change | Q4'2021 | ||||||||||
| Share Repurchase Programs: | |||||||||||||
| Total Shares Repurchased | 3 | 4 | n/m | - | |||||||||
| Average Repurchase Price | $58.66 | $61.09 | n/m | $ | - | ||||||||
| Net Shares (Issued) | (17 | ) | (57 | ) | n/m | - | |||||||
| 11. Period-End Balance Sheets. | |||||||||||||
| (unaudited, dollars in thousands) | |||||||||||||
| % | |||||||||||||
| 3/31/22 | 3/31/21 | Change | 12/31/21 | ||||||||||
| Assets: | |||||||||||||
| Cash and Due from Banks | $1,037,593 | $866,457 | 19.8 | % | $1,132,085 | ||||||||
| Debt Securities Available For Sale: | |||||||||||||
| Corporate Securities | 2,547,118 | 2,149,366 | 18.5 | % | 2,746,735 | ||||||||
| Collateralized Loan Obligations | 1,616,584 | 1,157,452 | 39.7 | % | 1,386,355 | ||||||||
| Agency Mortgage Backed Securities | 363,181 | 577,490 | -37.1 | % | 411,726 | ||||||||
| Obligations of States and Political Subdivisions (FTE) | 89,595 | 106,117 | -15.6 | % | 93,920 | ||||||||
| Other Debt Securities Available For Sale (FTE) | 110 | 145 | -24.0 | % | 119 | ||||||||
| Total Debt Securities Available For Sale | 4,616,588 | 3,990,570 | 15.7 | % | 4,638,855 | ||||||||
| Debt Securities Held To Maturity: | |||||||||||||
| Agency Mortgage Backed Securities | 133,754 | 213,730 | -37.4 | % | 148,390 | ||||||||
| Obligations of States and Political Subdivisions (FTE)(2) | 146,766 | 255,539 | -42.6 | % | 158,006 | ||||||||
| Total Debt Securities Held To Maturity(2) | 280,520 | 469,259 | -40.2 | % | 306,396 | ||||||||
| Loans | 1,002,514 | 1,293,756 | -22.5 | % | 1,068,126 | ||||||||
| Allowance For Credit Losses on Loans | (22,925 | ) | (23,483 | ) | -2.4 | % | (23,514 | ) | |||||
| Total Loans, net | 979,589 | 1,270,273 | -22.9 | % | 1,044,612 | ||||||||
| Premises and Equipment, net | 30,626 | 32,216 | -4.9 | % | 31,155 | ||||||||
| Identifiable Intangibles, net | 771 | 1,035 | -25.5 | % | 835 | ||||||||
| Goodwill | 121,673 | 121,673 | 0.0 | % | 121,673 | ||||||||
| Other Assets | 239,057 | 160,998 | 48.5 | % | 185,415 | ||||||||
| Total Assets | $7,306,417 | $6,912,481 | 5.7 | % | $7,461,026 | ||||||||
| Liabilities and Shareholders' Equity: | |||||||||||||
| Deposits: | |||||||||||||
| Noninterest-Bearing | $3,000,268 | $2,798,542 | 7.2 | % | $3,069,080 | ||||||||
| Interest-Bearing Transaction | 1,279,165 | 1,179,484 | 8.5 | % | 1,260,869 | ||||||||
| Savings | 1,984,719 | 1,791,636 | 10.8 | % | 1,940,395 | ||||||||
| Time | 141,722 | 154,171 | -8.1 | % | 143,612 | ||||||||
| Total Deposits | 6,405,874 | 5,923,833 | 8.1 | % | 6,413,956 | ||||||||
| Short-Term Borrowed Funds | 124,442 | 95,479 | 30.3 | % | 146,246 | ||||||||
| Other Borrowed Funds | - | 1,681 | -100.0 | % | - | ||||||||
| Other Liabilities | 74,357 | 79,356 | -6.3 | % | 73,722 | ||||||||
| Total Liabilities | 6,604,673 | 6,100,349 | 8.3 | % | 6,633,924 | ||||||||
| Shareholders' Equity: | |||||||||||||
| Common Equity: | |||||||||||||
| Paid-In Capital | 472,470 | 469,885 | 0.6 | % | 471,043 | ||||||||
| Accumulated Other | |||||||||||||
| Comprehensive Income | (88,300 | ) | 68,901 | n/m | 49,664 | ||||||||
| Retained Earnings | 317,574 | 273,346 | 16.2 | % | 306,395 | ||||||||
| Total Shareholders' Equity | 701,744 | 812,132 | -13.6 | % | 827,102 | ||||||||
| Total Liabilities and | |||||||||||||
| Shareholders' Equity | $7,306,417 | $6,912,481 | 5.7 | % | $7,461,026 | ||||||||
| 12. Income Statements. | |||||||||||||
| (unaudited, in thousands except per-share amounts) | |||||||||||||
| % | |||||||||||||
| Q1'2022 | Q1'2021 | Change | Q4'2021 | ||||||||||
| Interest & Fee Income: | |||||||||||||
| Loans | $12,942 | $14,581 | -11.2 | % | $13,124 | ||||||||
| Equity Securities | 128 | 110 | 16.4 | % | 129 | ||||||||
| Debt Securities Available For Sale | 28,566 | 24,889 | 14.8 | % | 27,598 | ||||||||
| Debt Securities Held To Maturity | 1,644 | 2,598 | -36.7 | % | 1,824 | ||||||||
| Interest-Bearing Cash | 479 | 138 | 247.1 | % | 366 | ||||||||
| Total Interest & Fee Income | 43,759 | 42,316 | 3.4 | % | 43,041 | ||||||||
| Interest Expense: | |||||||||||||
| Transaction Deposits | 88 | 89 | -1.1 | % | 95 | ||||||||
| Savings Deposits | 283 | 250 | 13.2 | % | 282 | ||||||||
| Time Deposits | 81 | 120 | -32.5 | % | 102 | ||||||||
| Short-Term Borrowed Funds | 28 | 16 | 75.0 | % | 25 | ||||||||
| Total Interest Expense | 480 | 475 | 1.0 | % | 504 | ||||||||
| Net Interest Income | 43,279 | 41,841 | 3.4 | % | 42,537 | ||||||||
| Provision for Credit Losses | - | - | n/m | - | |||||||||
| Noninterest Income: | |||||||||||||
| Service Charges | 3,582 | 3,304 | 8.4 | % | 3,580 | ||||||||
| Merchant Processing Services | 2,623 | 2,560 | 2.5 | % | 3,000 | ||||||||
| Debit Card Fees(1) | 2,872 | 1,601 | 79.4 | % | 1,727 | ||||||||
| Trust Fees | 843 | 801 | 5.2 | % | 844 | ||||||||
| ATM Processing Fees | 451 | 601 | -25.0 | % | 488 | ||||||||
| Other Service Fees | 449 | 469 | -4.2 | % | 449 | ||||||||
| Financial Services Commissions | 117 | 70 | 67.1 | % | 96 | ||||||||
| Other Noninterest Income | 639 | 783 | -18.4 | % | 658 | ||||||||
| Total Noninterest Income | 11,576 | 10,189 | 13.6 | % | 10,842 | ||||||||
| Noninterest Expense: | |||||||||||||
| Salaries and Benefits | 11,920 | 12,665 | -5.9 | % | 11,436 | ||||||||
| Occupancy and Equipment | 4,746 | 4,880 | -2.7 | % | 4,692 | ||||||||
| Outsourced Data Processing | 2,437 | 2,390 | 2.0 | % | 2,357 | ||||||||
| Professional Fees | 736 | 942 | -21.9 | % | 757 | ||||||||
| Courier Service | 582 | 504 | 15.5 | % | 572 | ||||||||
| Amortization of Identifiable Intangibles | 64 | 69 | -7.2 | % | 65 | ||||||||
| Other Noninterest Expense | 4,390 | 3,456 | 27.0 | % | 4,033 | ||||||||
| Total Noninterest Expense | 24,875 | 24,906 | -0.1 | % | 23,912 | ||||||||
| Income Before Income Taxes | 29,980 | 27,124 | 10.5 | % | 29,467 | ||||||||
| Income Tax Provision | 7,364 | 6,977 | 5.5 | % | 7,747 | ||||||||
| Net Income | $22,616 | $20,147 | 12.3 | % | $21,720 | ||||||||
| Average Common Shares Outstanding | 26,870 | 26,821 | 0.2 | % | 26,866 | ||||||||
| Diluted Common Shares Outstanding | 26,885 | 26,842 | 0.2 | % | 26,875 | ||||||||
| Per Common Share Data: | |||||||||||||
| Basic Earnings | $0.84 | $0.75 | 12.0 | % | $0.81 | ||||||||
| Diluted Earnings | 0.84 | 0.75 | 12.0 | % | 0.81 | ||||||||
| Dividends Paid | 0.42 | 0.41 | 2.4 | % | 0.42 | ||||||||
| 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 March 31, 2022 and December 31, 2021 and $9 thousand at March 31, 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 | |||||||||||||
