Westamerica Bancorporation Reports First Quarter 2023 Financial Results

| Source: Westamerica Bancorporation Westamerica Bancorporation

SAN RAFAEL, Calif., April 20, 2023 (GLOBE NEWSWIRE) -- Westamerica Bancorporation (Nasdaq: WABC), parent company of Westamerica Bank, generated net income for the first quarter 2023 of $40.5 million and diluted earnings per common share ("EPS") of $1.51. First quarter 2023 results include a provision for credit losses reversal of $1.6 million, which increased EPS $0.04. These results compare to net income for fourth quarter 2022 of $39.3 million and EPS of $1.46.

"Westamerica’s first quarter 2023 results benefited from the Company’s valuable low-cost deposit base; the cost of funding our loan and bond portfolios was 0.03 percent in the first quarter 2023, unchanged from the prior quarter. Non-interest bearing deposits represented 47 percent of average deposits in the first quarter 2023 while higher-cost time deposits represented only 2 percent of average deposits. The first quarter 2023 also benefited from higher yields on variable-rate assets. Operating expenses were well controlled and credit quality remained stable with nonperforming assets of $785 thousand at March 31, 2023,” said Chairman, President and CEO David Payne. “First quarter 2023 results generated an annualized 19.1 percent return on average common equity. Shareholders were paid a $0.42 per common share dividend during the first quarter 2023,” concluded Payne.

Net interest income on a fully-taxable equivalent (FTE) basis was $69.6 million for the first quarter 2023, compared to $69.2 million for the fourth quarter 2022. The yield earned on loans, bonds and cash for the first quarter 2023 was 4.21 percent, up from 3.98 percent for the fourth quarter 2022. The cost of funding the loan and bond portfolios was 0.03 percent for both the first quarter 2023 and fourth quarter 2022.

The Company recognized a $1.6 million provision for credit losses reversal in the first quarter 2023 as a result of a $2.2 million recovery on a previously charged-off commercial loan.

Variable rate assets at March 31, 2023 included $1.5 billion in collateralized loan obligations for which interest rates reset quarterly.

Noninterest income for the first quarter 2023 totaled $10.5 million unchanged from the fourth quarter 2022.

Noninterest expenses for the first quarter 2023 were $26.2 million compared to $25.1 million for the fourth quarter 2022; the increase in noninterest expenses is primarily due to an increase in seasonal payroll taxes and increased FDIC insurance assessments for all insured depository institutions.

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, 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 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.

WESTAMERICA BANCORPORATION    
FINANCIAL HIGHLIGHTS    
March 31, 2023    
      
1. Net Income Summary.    
  (in thousands except per-share amounts)
    % 
  Q1'2023Q1'2022ChangeQ4'2022
      
 Net Interest and Fee Income (FTE)$69,562 $43,807 58.8%$69,155 
 Reversal of Provision for Credit Losses (2) (1,550) - n/m  - 
 Noninterest Income (1) 10,549  11,576 -8.9% 10,463 
 Noninterest Expense 26,210  24,875 5.4% 25,090 
 Income Before Taxes (FTE) 55,451  30,508 81.8% 54,528 
 Income Tax Provision (FTE) 15,000  7,892 90.1% 15,184 
 Net Income$40,451 $22,616 78.9%$39,344 
      
 Average Common Shares Outstanding 26,859  26,870 -0.0% 26,912 
 Diluted Average Common Shares Outstanding 26,866  26,885 -0.1% 26,924 
      
 Operating Ratios:    
 Basic Earnings Per Common Share$1.51 $0.84 79.8%$1.46 
 Diluted Earnings Per Common Share 1.51  0.84 79.8% 1.46 
 Return On Assets (a) 2.31% 1.24%  2.12%
 Return On Common Equity (a) 19.1% 11.8%  18.6%
 Net Interest Margin (FTE) (a) 4.18% 2.51%  3.95%
 Efficiency Ratio (FTE) 32.7% 44.9%  31.5%
      
 Dividends Paid Per Common Share$0.42 $0.42 0.0%$0.42 
 Common Dividend Payout Ratio  28% 50%  29%
      
2. Net Interest Income.    
  (dollars in thousands)
    % 
  Q1'2023Q1'2022ChangeQ4'2022
      
 Interest and Fee Income (FTE)$70,033 $44,287 58.1%$69,630 
 Interest Expense 471  480 -1.9% 475 
 Net Interest and Fee Income (FTE)$69,562 $43,807 58.8%$69,155 
      
 Average Earning Assets$6,665,156 $6,998,234 -4.8%$6,930,584 
 Average Interest- Bearing Liabilities 3,287,158  3,546,146 -7.3% 3,412,189 
      
 Yield on Earning Assets (FTE) (a) 4.21% 2.54%  3.98%
 Cost of Funds (a) 0.03% 0.03%  0.03%
 Net Interest Margin (FTE) (a) 4.18% 2.51%  3.95%
 Interest Expense/    
    Interest-Bearing Liabilities (a) 0.06% 0.05%  0.06%
 Net Interest Spread (FTE) (a) 4.15% 2.49%  3.92%
      
3. Loans & Other Earning Assets.    
  (average volume, dollars in thousands)
    % 
  Q1'2023Q1'2022ChangeQ4'2022
      
 Total Assets$7,112,317 $7,406,321 -4.0%$7,353,270 
 Total Earning Assets 6,665,156  6,998,234 -4.8% 6,930,584 
 Total Loans 945,864  1,029,724 -8.1% 964,287 
   Commercial Loans 165,360  207,901 -20.5% 173,527 
   Commercial Real Estate Loans  493,132  524,040 -5.9% 492,549 
   Consumer Loans 287,372  297,783 -3.5% 298,211 
 Total Investment Securities 5,548,780  4,947,846 12.1% 5,694,280 
   Debt Securities Available for Sale 4,636,098  4,655,983 -0.4% 4,767,459 
   Debt Securities Held to Maturity 912,682  291,863 212.7% 926,821 
 Total Interest-Bearing Cash 170,512  1,020,664 -83.3% 272,017 
      
 Loans/Deposits 15.6% 16.1%  15.2%
      
4. Deposits, Other Interest-Bearing Liabilities & Equity.  
  (average volume, dollars in thousands)
    % 
  Q1'2023Q1'2022ChangeQ4'2022
      
 Total Deposits$6,061,923 $6,393,458 -5.2%$6,349,401 
   Noninterest Demand  2,851,600  3,005,065 -5.1% 3,010,806 
   Interest-Bearing Transaction 1,233,439  1,265,100 -2.5% 1,287,304 
   Savings 1,847,428  1,980,092 -6.7% 1,917,370 
   Time greater than $100K 57,630  64,172 -10.2% 59,720 
   Time less than $100K 71,826  79,029 -9.1% 74,201 
 Total Short-Term Borrowings 76,835  157,753 -51.3% 73,594 
 Shareholders' Equity 858,473  776,225 10.6% 837,499 
      
 Demand Deposits/ Total Deposits 47.0% 47.0%  47.4%
 Transaction & Savings Deposits / Total Deposits 97.9% 97.8%  97.9%
      
5. Interest Yields Earned & Rates Paid.    
  (dollars in thousands) 
  Q1'2023 
  AverageIncome/Yield (a) / 
  VolumeExpenseRate (a) 
 Interest & Fee Income Earned:    
   Total Earning Assets (FTE)$6,665,156 $70,033 4.21% 
   Total Loans (FTE) 945,864  11,834 5.07% 
     Commercial Loans (FTE) 165,360  2,760 6.77% 
     Commercial Real Estate Loans  493,132  5,627 4.63% 
     Consumer Loans 287,372  3,447 4.86% 
   Total Investments (FTE) 5,548,780  56,257 4.06% 
     Total Debt Securities Available for Sale (FTE) 4,636,098  47,114 4.06% 
       Corporate Securities 2,350,403  16,446 2.80% 
       Collateralized Loan Obligations 1,577,260  25,006 6.34% 
       Agency Mortgage Backed Securities 304,863  1,865 2.45% 
       Securities of U.S. Government sponsored entities 306,441  2,777 3.62% 
       Obligations of States and Political Subdivisions (FTE) 83,914  637 3.04% 
       Other Debt Securities Available for Sale (FTE) 13,217  383 11.59% 
     Total Debt Securities Held to Maturity (FTE) 912,682  9,143 4.01% 
       Agency Mortgage Backed Securities 101,911  547 2.15% 
       Corporate Securities 722,452  7,815 4.33% 
       Obligations of States and Political Subdivisions (FTE) 88,319  781 3.54% 
   Total Interest-Bearing Cash 170,512  1,942 4.56% 
      
 Interest Expense Paid:    
   Total Earning Assets  6,665,156  471 0.03% 
   Total Interest-Bearing Liabilities 3,287,158  471 0.06% 
   Total Interest-Bearing Deposits 3,210,323  458 0.06% 
     Interest-Bearing Transaction 1,233,439  94 0.03% 
     Savings 1,847,428  280 0.06% 
     Time less than $100K 71,826  50 0.28% 
     Time greater than $100K 57,630  34 0.24% 
   Total Short-Term Borrowings  76,835  13 0.07% 
      
 Net Interest Income and     
 Margin (FTE) $69,562 4.18% 
      
  Q1'2022 
  AverageIncome/Yield (a) / 
  VolumeExpenseRate (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% 
     Commercial Loans (FTE) 207,901  2,843 5.55% 
     Commercial Real Estate 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% 
      
6. Noninterest Income.    
  (dollars in thousands except per-share amounts)
    % 
  Q1'2023Q1'2022ChangeQ4'2022
      
 Service Charges on Deposit Accounts$3,465 $3,582 -3.3%$3,484 
 Merchant Processing Services 2,637  2,623 0.5% 2,701 
 Debit Card Fees (1) 1,642  2,872 -42.8% 1,704 
 Trust Fees 765  843 -9.3% 754 
 ATM Processing Fees 654  451 45.0% 646 
 Other Service Fees 399  449 -11.2% 416 
 Financial Services Commissions 89  117 -23.9% 103 
 Other Noninterest Income 898  639 40.5% 655 
 Total Noninterest Income$10,549 $11,576 -8.9%$10,463 
      
 Operating Ratios:    
   Total Revenue (FTE)$80,111 $55,383 44.6%$79,618 
   Noninterest Income/Revenue (FTE) 13.2% 20.9%  13.1%
   Service Charges/Avg. Deposits (a) 0.23% 0.23%  0.22%
   Total Revenue (FTE) Per Avg.     
 Common Share (a)$12.10 $8.36 44.8%$11.74 
      
7. Noninterest Expense.    
  (dollars in thousands)
    % 
  Q1'2023Q1'2022ChangeQ4'2022
      
 Salaries & Benefits$12,067 $11,920 1.2%$11,482 
 Occupancy and Equipment 5,485  4,746 15.6% 5,218 
 Outsourced Data Processing 2,444  2,437 0.3% 2,390 
 Limited Partnership Operating Losses 1,434  1,431 0.2% 1,431 
 Professional Fees 476  736 -35.3% 574 
 Courier Service 615  582 5.7% 700 
 Other Noninterest Expense 3,689  3,023 22.0% 3,295 
 Total Noninterest Expense$26,210 $24,875 5.4%$25,090 
      
 Operating Ratios:    
   Noninterest Expense/ Avg. Earning Assets (a) 1.59% 1.44%  1.44%
   Noninterest Expense/Revenues (FTE) 32.7% 44.9%  31.5%
      
      
      
8. Allowance for Credit Losses.    
  (dollars in thousands)
    % 
  Q1'2023Q1'2022ChangeQ4'2022
      
 Average Total Loans$945,864 $1,029,724 -8.1%$964,287 
      
 Beginning of Period Allowance for    
 Credit Losses on Loans (ACLL)$20,284 $23,514 -13.7%$21,218 
 (Reversal of) Provision for Credit Losses (2)  (1,550) - n/m  6 
 Net ACLL Recoveries (Losses) 775  (589)n/m  (940)
 End of Period ACLL$19,509 $22,925 -14.9%$20,284 
      
 Gross ACLL Recoveries / Gross ACLL Losses  138% 51%  44%
      
 Net ACLL (Recoveries) Losses /    
 Avg. Total Loans (a) -0.33% 0.23%  0.39%
      
  (dollars in thousands)
    % 
  3/31/233/31/22Change12/31/22
 Allowance for Credit Losses on Loans$19,509 $22,925 -14.9%$20,284 
 Allowance for Credit Losses on    
 Held to Maturity Securities 1  7 -85.5% 1 
 Total Allowance for Credit Losses$19,510 $22,932 -14.9%$20,285 
      
 Allowance for Unfunded    
 Credit Commitments$201 $201 0.0%$201 
      
9. Credit Quality.    
  (dollars in thousands)
    % 
  3/31/233/31/22Change12/31/22
 Nonperforming Loans:    
    Nonperforming Nonaccrual Loans$207 $63 228.6%$146 
    Performing Nonaccrual Loans 7  421 n/m  - 
 Total Nonaccrual Loans 214  484 -55.8% 146 
 90+ Days Past Due Accruing Loans 571  431 32.5% 628 
  Total Nonperforming Loans$785 $915 -14.2%$774 
      
 Total Loans Outstanding $938,628 $1,002,514 -6.4%$958,488 
      
 Total Assets  6,700,471  7,306,417 -8.3% 6,950,317 
      
 Loans:    
 Allowance for Credit Losses on Loans$19,509 $22,925 -14.9%$20,284 
 Allowance for Credit Losses on Loans / Loans 2.08% 2.29%  2.12%
 Nonperforming Loans/Total Loans 0.08% 0.09%  0.08%
      
10. Liquidity.    
      
 At March 31, 2023, the Company had $195,202 thousand in cash balances. During the twelve months ending March 31, 2024, the Company expects to receive $337,000 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 March 31, 2023, the Company’s debt securities which qualify as collateral for borrowing totaled $4,107,153 thousand. In the ordinary course of business, the Company pledges debt securities as collateral for certain depository customers; at March 31, 2023, the Company had pledged $686,533 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 March 31, 2023, the Company’s had pledged $670,649 thousand in debt securities at the Federal Reserve Bank. During the three months ended March 31, 2023, the Company’s average borrowings from the Federal Reserve Bank and other correspondent banks were $1 thousand, and at March 31, 2023, the Company’s borrowings from the Federal Reserve Bank and other correspondent banks were $-0- thousand. At March 31, 2023, the Company’s unpledged collateral qualifying debt securities totaled $2,574,254 thousand. The following schedule is shown in market value unless otherwise noted.
      
     (in thousands)
     3/31/23
 Debt Securities Eligible as Collateral:    
 Corporate Securities   $2,715,376 
 Collateralized Loan Obligations rated AAA    525,666 
 Obligations of States and Political Subdivisions   170,268 
 Agency Mortgage Backed Securities    369,010 
 Securities of U.S. Government Sponsored Entities (Par Value)  326,833 
 Total Debt Securities Eligible as Collateral   $4,107,153 
      
 Debt Securities Pledged as Collateral:    
 Public funds   ($686,533)
 Short-term borrowed funds (Deposit Sweep)    (169,352)
 Other    (6,365)
 Total Debt Securities Pledged as Collateral   ($862,250)
      
 Debt Securities Pledged at the Federal Reserve Bank  ($670,649)
      
 Debt Securities Available to Pledge   $2,574,254 
      
11. Capital.    
  (in thousands, except per-share amounts)
    % 
  3/31/233/31/22Change12/31/22
      
 Shareholders' Equity$642,925 $701,744 -8.4%$602,110 
 Total Assets 6,700,471  7,306,417 -8.3% 6,950,317 
 Shareholders' Equity/    
    Total Assets 9.60% 9.60%  8.66%
 Shareholders' Equity/    
    Total Loans 68.50% 70.00%  62.82%
 Tangible Common Equity Ratio 7.92% 8.06%  7.03%
 Common Shares Outstanding 26,648  26,883 -0.9% 26,913 
 Common Equity Per Share$24.13 $26.10 -7.6%$22.37 
 Market Value Per Common Share 44.30  60.50 -26.8% 59.01 
      
  (shares in thousands)
    % 
  Q1'2023Q1'2022ChangeQ4'2022
 Share Repurchase Programs:    
   Total Shares Repurchased / Canceled 274  3 n/m  - 
   Average Repurchase Price$50.11 $58.66 n/m $- 
   Net Shares Repurchased (Issued) 265  (17)n/m  (2)
      
12. Period-End Balance Sheets.    
  (unaudited, dollars in thousands)
    % 
  3/31/233/31/22Change12/31/22
 Assets:    
   Cash and Due from Banks$195,202 $1,037,593 -81.2%$294,236 
      
   Debt Securities Available for Sale    
     Corporate Securities 2,019,240  2,547,118 -20.7% 2,099,955 
     Collateralized Loan Obligations 1,542,377  1,616,584 -4.6% 1,572,883 
     Agency Mortgage Backed Securities 276,078  363,181 -24.0% 286,048 
     Securities of U.S. Government sponsored entities 297,140  - n/m  290,853 
     Obligations of States and Political Subdivisions 82,678  89,595 -7.7% 82,004 
     Other Debt Securities Available for Sale -  110 n/m  - 
   Total Debt Securities Available for Sale 4,217,513  4,616,588 -8.6% 4,331,743 
      
   Debt Securities Held to Maturity    
     Agency Mortgage Backed Securities 98,006  133,754 -26.7% 104,852 
     Corporate Securities 723,553  - n/m  721,854 
     Obligations of States and Political Subdivisions (3) 87,760  146,766 -40.2% 89,207 
   Total Debt Securities Held to Maturity (3) 909,319  280,520 224.2% 915,913 
      
   Loans 938,628  1,002,514 -6.4% 958,488 
   Allowance For Credit Losses on Loans (19,509) (22,925)-14.9% (20,284)
   Total Loans, net 919,119  979,589 -6.2% 938,204 
      
   Premises and Equipment, net 28,331  30,626 -7.5% 28,819 
   Identifiable Intangibles, net 523  771 -32.1% 583 
   Goodwill  121,673  121,673 0.0% 121,673 
   Other Assets 308,791  239,057 29.2% 319,146 
      
 Total Assets$6,700,471 $7,306,417 -8.3%$6,950,317 
      
 Liabilities and Shareholders' Equity:    
   Deposits:    
     Noninterest-Bearing$2,788,992 $3,000,268 -7.0%$2,947,277 
     Interest-Bearing Transaction 1,201,356  1,279,165 -6.1% 1,273,143 
     Savings 1,783,667  1,984,719 -10.1% 1,874,115 
     Time 125,300  141,722 -11.6% 130,755 
   Total Deposits 5,899,315  6,405,874 -7.9% 6,225,290 
      
   Short-Term Borrowed Funds 83,088  124,442 -33.2% 57,792 
   Other Liabilities 75,143  74,357 1.1% 65,125 
 Total Liabilities 6,057,546  6,604,673 -8.3% 6,348,207 
      
 Shareholders' Equity:    
   Common Equity:    
     Paid-In Capital 471,159  472,470 -0.3% 475,121 
     Accumulated Other    
       Comprehensive Loss (231,573) (88,300)n/m  (256,105)
     Retained Earnings 403,339  317,574 27.0% 383,094 
 Total Shareholders' Equity 642,925  701,744 -8.4% 602,110 
      
 Total Liabilities and     
    Shareholders' Equity$6,700,471 $7,306,417 -8.3%$6,950,317 
      
13. Income Statements.    
  (unaudited, in thousands except per-share amounts)
    % 
  Q1'2023Q1'2022ChangeQ4'2022
 Interest & Fee Income:    
 Loans$11,740 $12,942 -9.3%$12,201 
 Equity Securities 152  128 18.8% 153 
 Debt Securities Available for Sale 46,810  28,566 63.9% 45,216 
 Debt Securities Held to Maturity 8,980  1,644 446.2% 9,061 
 Interest-Bearing Cash 1,942  479 305.4% 2,567 
 Total Interest & Fee Income 69,624  43,759 59.1% 69,198 
      
 Interest Expense:    
   Transaction Deposits 94  88 6.8% 96 
   Savings Deposits 280  283 -1.1% 280 
   Time Deposits 84  81 3.7% 87 
   Short-Term Borrowed Funds 13  28 -53.6% 12 
 Total Interest Expense 471  480 -1.9% 475 
      
 Net Interest Income 69,153  43,279 59.8% 68,723 
      
 Reversal of Provision for Credit Losses (2) (1,550) - n/m  - 
      
 Noninterest Income:    
   Service Charges on Deposit Accounts 3,465  3,582 -3.3% 3,484 
   Merchant Processing Services 2,637  2,623 0.5% 2,701 
   Debit Card Fees (1) 1,642  2,872 -42.8% 1,704 
   Trust Fees 765  843 -9.3% 754 
   ATM Processing Fees 654  451 45.0% 646 
   Other Service Fees 399  449 -11.2% 416 
   Financial Services Commissions 89  117 -23.9% 103 
   Other Noninterest Income 898  639 40.5% 655 
 Total Noninterest Income 10,549  11,576 -8.9% 10,463 
      
 Noninterest Expense:    
   Salaries and Related Benefits 12,067  11,920 1.2% 11,482 
   Occupancy and Equipment 5,485  4,746 15.6% 5,218 
   Outsourced Data Processing 2,444  2,437 0.3% 2,390 
   Limited Partnership Operating Losses 1,434  1,431 0.2% 1,431 
   Professional Fees 476  736 -35.3% 574 
   Courier Service 615  582 5.7% 700 
   Other Noninterest Expense 3,689  3,023 22.0% 3,295 
 Total Noninterest Expense 26,210  24,875 5.4% 25,090 
      
 Income Before Income Taxes 55,042  29,980 83.6% 54,096 
 Income Tax Provision 14,591  7,364 98.1% 14,752 
 Net Income$40,451 $22,616 78.9%$39,344 
      
 Average Common Shares Outstanding 26,859  26,870 -0.0% 26,912 
 Diluted Average Common Shares Outstanding 26,866  26,885 -0.1% 26,924 
      
 Per Common Share Data:    
   Basic Earnings$1.51 $0.84 79.8%$1.46 
   Diluted Earnings 1.51  0.84 79.8% 1.46 
   Dividends Paid 0.42  0.42 0.0% 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) 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 March 31, 2023, December 31, 2022 and $7 thousand at March 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