Westamerica Bancorporation Reports Third Quarter 2024 Financial Results

SAN RAFAEL, Calif., Oct. 17, 2024 (GLOBE NEWSWIRE) -- Westamerica Bancorporation (Nasdaq: WABC), parent company of Westamerica Bank, generated net income for the third quarter 2024 of $35.1 million and diluted earnings per common share ("EPS") of $1.31, which includes gains from life insurance and sales of other assets equivalent to $0.04 EPS. Third quarter 2024 results compare to second quarter 2024 net income of $35.5 million and EPS of $1.33.

"Westamerica’s third quarter 2024 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 0.37 percent in the quarter. Operating expenses remained well controlled at 35 percent of total revenues in the third quarter 2024. The Company recognized no provision for credit losses in the third quarter 2024. At September 30, 2024, nonperforming assets were stable at $0.9 million and the allowance for credit losses was $15.3 million,” said Chairman, President and CEO David Payne. “Third quarter 2024 results generated an annualized 13.7 percent return on average common equity. Shareholders were paid a $0.44 per common share dividend during the third quarter 2024,” concluded Payne.

Net interest income on a fully-taxable equivalent (FTE) basis was $62.5 million for the third quarter 2024, compared to $64.1 million for the second quarter 2024. The annualized yield earned on loans, bonds and cash for the third quarter 2024 was 4.45 percent compared to 4.50 percent for the second quarter 2024. The annualized cost of funding the loan and bond portfolios was 0.37 percent for the third quarter 2024, compared to 0.35 percent for the second quarter 2024.

Noninterest income for the third quarter 2024 totaled $11.9 million compared to $10.5 million for the second quarter 2024. Third quarter 2024 results include $1.6 million in gains from life insurance and sales of other assets.

Noninterest expenses for the third quarter 2024 were $26.3 million compared to $26.1 million for the second quarter 2024.

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, 2023 filed on Form 10-K and quarterly report for the quarter ended June 30, 2024 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 17, 2024
WESTAMERICA BANCORPORATION
FINANCIAL HIGHLIGHTS
September 30, 2024
1. Net Income Summary.
		(in thousands except per-share amounts)
								%
		Q3'2024			Q3'2023			Change		Q2'2024
	Net Interest and Loan Fee
	Income (FTE)	$	62,465		$	72,092		-13.4	%	$	64,100
	Provision for
	Credit Losses		-			400		n/m			-
	Noninterest Income		11,925			11,281		5.7	%		10,500
	Noninterest Expense		26,309			25,650		2.6	%		26,130
	Income Before Taxes (FTE)		48,081			57,323		-16.1	%		48,470
	Income Tax Provision (FTE)		13,024			15,722		-17.2	%		13,008
	Net Income	$	35,057		$	41,601		-15.7	%	$	35,462
	Average Common Shares
	Outstanding		26,685			26,648		0.1	%		26,680
	Diluted Average Common
	Shares Outstanding		26,686			26,650		0.1	%		26,681
	Operating Ratios:
	Basic Earnings Per Common
	Share	$	1.31		$	1.56		-16.0	%	$	1.33
	Diluted Earnings Per
	Common Share		1.31			1.56		-16.0	%		1.33
	Return On Assets (a)		2.16	%		2.41	%				2.18	%
	Return On Common
	Equity (a)		13.7	%		18.3	%				14.4	%
	Net Interest Margin (FTE) (a)		4.08	%		4.43	%				4.15	%
	Efficiency Ratio (FTE)		35.4	%		30.8	%				35.0	%
	Dividends Paid Per Common
	Share	$	0.44		$	0.44		0.0	%	$	0.44
	Common Dividend Payout
	Ratio		33	%		28	%				33	%
								%
		9/30'24YTD			9/30'23YTD			Change
	Net Interest and Loan Fee
	Income (FTE)	$	192,659		$	211,935		-9.1	%
	Provision (Reversal
	of Provision) for
	Credit Losses (1)		300			(1,150	)	n/m
	Noninterest Income		32,522			32,530		-0.0	%
	Noninterest Expense		78,538			77,699		1.1	%
	Income Before Taxes (FTE)		146,343			167,916		-12.8	%
	Income Tax Provision (FTE)		39,407			45,616		-13.6	%
	Net Income	$	106,936		$	122,300		-12.6	%
	Average Common Shares
	Outstanding		26,680			26,718		-0.1	%
	Diluted Average Common
	Shares Outstanding		26,681			26,721		-0.1	%
	Operating Ratios:
	Basic Earnings Per Common
	Share	$	4.01		$	4.58		-12.4	%
	Diluted Earnings Per
	Common Share		4.01			4.58		-12.4	%
	Return On Assets (a)		2.19	%		2.36	%
	Return On Common
	Equity (a)		14.4	%		18.6	%
	Net Interest Margin (FTE) (a)		4.18	%		4.32	%
	Efficiency Ratio (FTE)		34.9	%		31.8	%
	Dividends Paid Per Common
	Share	$	1.32		$	1.28		3.1	%
	Common Dividend Payout
	Ratio		33	%		28	%
2. Net Interest Income.
		(dollars in thousands)
								%
		Q3'2024			Q3'2023			Change		Q2'2024
	Interest and Loan Fee
	Income (FTE)	$	68,110		$	73,225		-7.0	%	$	69,407
	Interest Expense		5,645			1,133		398.2	%		5,307
	Net Interest and Loan Fee
	Income (FTE)	$	62,465		$	72,092		-13.4	%	$	64,100
	Average Earning Assets	$	6,062,174		$	6,438,411		-5.8	%	$	6,145,626
	Average Interest-Bearing
	Liabilities		2,950,093			3,118,632		-5.4	%		3,001,786
	Yield on Earning Assets
	(FTE) (a)		4.45	%		4.50	%				4.50	%
	Cost of Funds (a)		0.37	%		0.07	%				0.35	%
	Net Interest Margin (FTE) (a)		4.08	%		4.43	%				4.15	%
	Interest Expense /
	Interest-Bearing
	Liabilities (a)		0.76	%		0.14	%				0.71	%
	Net Interest Spread (FTE) (a)		3.69	%		4.36	%				3.79	%
								%
		9/30'24YTD			9/30'23YTD			Change
	Interest and Loan Fee
	Income (FTE)	$	206,612		$	214,146		-3.5	%
	Interest Expense		13,953			2,211		531.1	%
	Net Interest and Loan Fee
	Income (FTE)	$	192,659		$	211,935		-9.1	%
	Average Earning Assets	$	6,108,885		$	6,519,448		-6.3	%
	Average Interest-Bearing
	Liabilities		2,969,078			3,182,734		-6.7	%
	Yield on Earning Assets
	(FTE) (a)		4.48	%		4.36	%
	Cost of Funds (a)		0.30	%		0.04	%
	Net Interest Margin (FTE) (a)		4.18	%		4.32	%
	Interest Expense /
	Interest-Bearing
	Liabilities (a)		0.63	%		0.09	%
	Net Interest Spread (FTE) (a)		3.85	%		4.27	%
3. Loans & Other Earning Assets.
		(average volume, dollars in thousands)
								%
		Q3'2024			Q3'2023			Change		Q2'2024
	Total Assets	$	6,461,843		$	6,847,691		-5.6	%	$	6,549,203
	Total Earning Assets		6,062,174			6,438,411		-5.8	%		6,145,626
	Total Loans		831,418			903,854		-8.0	%		838,016
	Commercial Loans		136,160			151,431		-10.1	%		133,605
	Commercial Real Estate
	Loans		493,272			493,072		0.0	%		487,209
	Consumer Loans		201,986			259,351		-22.1	%		217,202
	Total Investment Securities		4,736,024			5,247,118		-9.7	%		4,944,191
	Debt Securities Available for
	Sale		3,881,678			4,353,794		-10.8	%		4,079,896
	Debt Securities Held to
	Maturity		854,346			893,324		-4.4	%		864,295
	Total Interest-Bearing Cash		494,732			287,439		72.1	%		363,419
	Loans / Deposits		16.3	%		15.8	%				16.1	%
								%
		9/30'24YTD			9/30'23YTD			Change
	Total Assets	$	6,512,138		$	6,940,897		-6.2	%
	Total Earning Assets		6,108,885			6,519,448		-6.3	%
	Total Loans		840,961			925,351		-9.1	%
	Commercial Loans		134,402			158,204		-15.0	%
	Commercial Real Estate
	Loans		489,836			492,702		-0.6	%
	Consumer Loans		216,723			274,445		-21.0	%
	Total Investment Securities		4,925,557			5,385,986		-8.5	%
	Debt Securities Available for
	Sale		4,061,358			4,482,376		-9.4	%
	Debt Securities Held to
	Maturity		864,199			903,610		-4.4	%
	Total Interest-Bearing Cash		342,367			208,111		64.5	%
	Loans / Deposits		16.1	%		15.8	%
4. Deposits, Other Interest-Bearing Liabilities & Equity.
		(average volume, dollars in thousands)
								%
		Q3'2024			Q3'2023			Change		Q2'2024
	Total Deposits	$	5,092,244		$	5,722,817		-11.0	%	$	5,202,620
	Noninterest Demand		2,425,646			2,721,358		-10.9	%		2,485,023
	Interest-Bearing Transaction		937,694			1,149,483		-18.4	%		981,703
	Savings		1,639,997			1,741,994		-5.9	%		1,642,806
	Time greater than $100K		32,815			43,073		-23.8	%		34,721
	Time less than $100K		56,092			66,909		-16.2	%		58,367
	Total Short-Term Borrowings		283,495			117,173		141.9	%		284,189
	Bank Term Funding Program
	Borrowings		167,391			-		n/m			200,000
	Securities Sold under
	Repurchase Agreements		116,104			117,173		-0.9	%		84,189
	Shareholders' Equity		1,016,642			902,300		12.7	%		990,927
	Demand Deposits /
	Total Deposits		47.6	%		47.6	%				47.8	%
	Transaction & Savings
	Deposits / Total Deposits		98.3	%		98.1	%				98.2	%
								%
		9/30'24YTD			9/30'23YTD			Change
	Total Deposits	$	5,224,158		$	5,859,506		-10.8	%
	Noninterest Demand		2,480,815			2,774,282		-10.6	%
	Interest-Bearing Transaction		992,363			1,180,551		-15.9	%
	Savings		1,658,106			1,783,891		-7.1	%
	Time greater than $100K		34,550			51,481		-32.9	%
	Time less than $100K		58,324			69,301		-15.8	%
	Total Short-Term Borrowings		225,735			97,510		131.5	%
	Bank Term Funding Program
	Borrowings		143,412			-		n/m
	Securities Sold under
	Repurchase Agreements		82,323			97,510		-15.6	%
	Shareholders' Equity		991,229			879,740		12.7	%
	Demand Deposits /
	Total Deposits		47.5	%		47.3	%
	Transaction & Savings
	Deposits / Total Deposits		98.2	%		97.9	%
5. Interest Yields Earned & Rates Paid.
		(dollars in thousands)
		Q3'2024
		Average			Income/			Yield (a) /
		Volume			Expense			Rate (a)
	Interest & Loan Fee Income Earned:
	Total Earning Assets (FTE)	$	6,062,174		$	68,110		4.45	%
	Total Loans (FTE)		831,418			11,526		5.52	%
	Commercial Loans (FTE)		136,160			2,393		7.00	%
	Commercial Real Estate
	Loans		493,272			6,308		5.09	%
	Consumer Loans		201,986			2,825		5.57	%
	Total Investments (FTE)		4,736,024			49,822		4.17	%
	Total Debt Securities
	Available for Sale (FTE)		3,881,678			41,133		4.19	%
	Corporate Securities		2,074,145			14,268		2.75	%
	Collateralized Loan
	Obligations		1,166,189			21,459		7.20	%
	Agency Mortgage Backed
	Securities		244,994			1,638		2.68	%
	Securities of U.S.
	Government sponsored
	entities		310,138			2,777		3.58	%
	Obligations of States and
	Political Subdivisions
	(FTE)		67,141			518		3.08	%
	U.S. Treasury Securities		4,844			62		5.13	%
	Other Debt Securities
	Available for Sale (FTE)		14,227			411		11.55	%
	Total Debt Securities Held to
	Maturity (FTE)		854,346			8,689		4.07	%
	Agency Mortgage Backed
	Securities		65,545			376		2.29	%
	Corporate Securities		732,689			7,815		4.27	%
	Obligations of States and
	Political Subdivisions
	(FTE)		56,112			498		3.55	%
	Total Interest-Bearing Cash		494,732			6,762		5.35	%
	Interest Expense Paid:
	Total Earning Assets		6,062,174			5,645		0.37	%
	Total Interest-Bearing
	Liabilities		2,950,093			5,645		0.76	%
	Total Interest-Bearing
	Deposits		2,666,598			3,113		0.46	%
	Interest-Bearing Transaction		937,694			47		0.02	%
	Savings		1,639,997			2,990		0.73	%
	Time less than $100K		56,092			46		0.33	%
	Time greater than $100K		32,815			30		0.36	%
	Total Short-Term Borrowings		283,495			2,532		3.54	%
	Bank Term Funding Program
	Borrowings		167,391			2,278		5.40	%
	Securities Sold under
	Repurchase Agreements		116,104			254		0.87	%
	Net Interest Income and
	Margin (FTE)				$	62,465		4.08	%
		Q3'2023
		Average			Income/			Yield (a) /
		Volume			Expense			Rate (a)
	Interest & Loan 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	%
	Securities Sold under
	Repurchase Agreements		117,173			38		0.13	%
	Net Interest Income and
	Margin (FTE)				$	72,092		4.43	%
6. Noninterest Income.
		(dollars in thousands except per-share amounts)
								%
		Q3'2024			Q3'2023			Change		Q2'2024
	Service Charges on Deposit
	Accounts	$	3,585		$	3,705		-3.2	%	$	3,469
	Merchant Processing
	Services		2,474			2,911		-15.0	%		2,733
	Debit Card Fees		1,702			1,717		-0.9	%		1,706
	Trust Fees		846			783		8.0	%		811
	ATM Processing Fees		533			640		-16.7	%		540
	Other Service Fees		454			463		-1.9	%		450
	Life Insurance Gains		202			278		n/m			-
	Other Noninterest Income		2,129			784		171.6	%		791
	Total Noninterest Income	$	11,925		$	11,281		5.7	%	$	10,500
	Operating Ratios:
	Total Revenue (FTE)	$	74,390		$	83,373		-10.8	%	$	74,600
	Noninterest Income /
	Revenue (FTE)		16.0	%		13.5	%				14.1	%
	Service Charges /
	Avg. Deposits (a)		0.28	%		0.26	%				0.27	%
	Total Revenue (FTE) Per
	Avg. Common Share (a)	$	11.09		$	12.41		-10.7	%	$	11.25
								%
		9/30'24YTD			9/30'23YTD			Change
	Service Charges on Deposit
	Accounts	$	10,524		$	10,629		-1.0	%
	Merchant Processing
	Services		7,714			8,417		-8.4	%
	Debit Card Fees		4,951			5,118		-3.3	%
	Trust Fees		2,451			2,358		3.9	%
	ATM Processing Fees		1,664			1,996		-16.6	%
	Other Service Fees		1,342			1,320		1.7	%
	Life Insurance Gains		202			278		n/m
	Securities Losses		-			(125	)	n/m
	Other Noninterest Income		3,674			2,539		44.7	%
	Total Noninterest Income	$	32,522		$	32,530		-0.0	%
	Operating Ratios:
	Total Revenue (FTE)	$	225,181		$	244,465		-7.9	%
	Noninterest Income /
	Revenue (FTE)		14.4	%		13.3	%
	Service Charges /
	Avg. Deposits (a)		0.27	%		0.24	%
	Total Revenue (FTE) Per
	Avg. Common Share (a)	$	11.27		$	12.23		-7.8	%
7. Noninterest Expense.
		(dollars in thousands)
								%
		Q3'2024			Q3'2023			Change		Q2'2024
	Salaries and Related Benefits	$	12,762		$	11,820		8.0	%	$	12,483
	Occupancy and Equipment		5,256			5,065		3.8	%		5,158
	Outsourced Data Processing		2,614			2,473		5.7	%		2,511
	Limited Partnership
	Operating Losses		1,210			1,440		-16.0	%		1,440
	Professional Fees		337			401		-16.0	%		362
	Courier Service		682			745		-8.5	%		686
	Other Noninterest Expense		3,448			3,706		-7.0	%		3,490
	Total Noninterest Expense	$	26,309		$	25,650		2.6	%	$	26,130
	Operating Ratios:
	Noninterest Expense /
	Avg. Earning Assets (a)		1.73	%		1.58	%				1.71	%
	Noninterest Expense /
	Revenues (FTE)		35.4	%		30.8	%				35.0	%
								%
		9/30'24YTD			9/30'23YTD			Change
	Salaries and Related Benefits	$	37,831		$	35,715		5.9	%
	Occupancy and Equipment		15,454			15,562		-0.7	%
	Outsourced Data Processing		7,661			7,405		3.5	%
	Limited Partnership
	Operating Losses		4,090			4,314		-5.2	%
	Professional Fees		1,101			1,362		-19.2	%
	Courier Service		2,017			1,971		2.3	%
	Other Noninterest Expense		10,384			11,370		-8.7	%
	Total Noninterest Expense	$	78,538		$	77,699		1.1	%
	Operating Ratios:
	Noninterest Expense /
	Avg. Earning Assets (a)		1.72	%		1.59	%
	Noninterest Expense /
	Revenues (FTE)		34.9	%		31.8	%
8. Allowance for Credit Losses.
		(dollars in thousands)
								%
		Q3'2024			Q3'2023			Change		Q2'2024
	Average Total Loans	$	831,418		$	903,854		-8.0	%	$	838,016
	Beginning of Period
	Allowance for Credit
	Losses on Loans (ACLL)	$	15,952		$	18,480		-13.7	%	$	15,879
	Provision for
	Credit Losses		-			400		n/m			-
	Net ACLL (Losses)
	Recoveries		(634	)		(1,136	)	-44.2	%		73
	End of Period ACLL	$	15,318		$	17,744		-13.7	%	$	15,952
	Gross ACLL Recoveries /
	Gross ACLL Losses		62	%		46	%				105	%
	Net ACLL (Losses)
	Recoveries /
	Avg. Total Loans (a)		-0.30	%		-0.50	%				0.04	%
								%
		9/30'24YTD			9/30'23YTD			Change
	Average Total Loans	$	840,961		$	925,351		-9.1	%
	Beginning of Period ACLL	$	16,867		$	20,284		-16.8	%
	Provision (Reversal
	of Provision) for
	Credit Losses (1)		300			(1,150	)	n/m
	Net ACLL Losses		(1,849	)		(1,390	)	33.0	%
	End of Period ACLL	$	15,318		$	17,744		-13.7	%
	Gross ACLL Recoveries /
	Gross ACLL Losses		64	%		76	%
	Net ACLL Losses /
	Avg. Total Loans (a)		-0.29	%		-0.20	%
		(dollars in thousands)
								%
		9/30/24			9/30/23			Change		6/30/24
	Allowance for Credit Losses
	on Loans	$	15,318		$	17,744		-13.7	%	$	15,952
	Allowance for Credit Losses
	on Held to Maturity
	Securities		1			1		0.0	%		1
	Total Allowance for Credit
	Losses	$	15,319		$	17,745		-13.7	%	$	15,953
	Allowance for Unfunded
	Credit Commitments	$	201		$	201		0.0	%	$	201
9. Credit Quality.
		(dollars in thousands)
								%
		9/30/24			9/30/23			Change		6/30/24
	Nonperforming Loans:
	Nonperforming Nonaccrual
	Loans	$	252		$	205		22.9	%	$	971
	Performing Nonaccrual
	Loans		-			4		n/m			-
	Total Nonaccrual Loans		252			209		20.6	%		971
	Accruing Loans 90+ Days
	Past Due		667			1,029		-35.2	%		580
	Total Nonperforming Loans	$	919		$	1,238		-25.8	%	$	1,551
	Total Loans Outstanding	$	833,967		$	885,850		-5.9	%	$	831,842
	Total Assets		6,161,143			6,567,288		-6.2	%		6,312,145
	Loans:
	Allowance for Credit Losses
	on Loans	$	15,318		$	17,744		-13.7	%	$	15,952
	Allowance for Credit Losses
	on Loans / Loans		1.84	%		2.00	%				1.92	%
	Nonperforming Loans /
	Total Loans		0.11	%		0.14	%				0.19	%
10. Liquidity.
	At September 30, 2024, the Company had $502,945 thousand in cash balances. During the twelve months ending September 30, 2025, the Company expects to receive $321,000 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, 2024, the Company’s debt securities which qualify as collateral for borrowing totaled $3,696,256 thousand. In the ordinary course of business, the Company pledges debt securities as collateral for certain depository customers; at September 30, 2024, the Company had pledged $764,404 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, 2024, the Company had pledged $815,919 thousand in debt securities at the Federal Reserve Bank. During the nine months ended September 30, 2024, the Company’s average borrowings from the Federal Reserve Bank and other correspondent banks were $143,412 thousand and $-0- thousand, respectively, and at September 30, 2024, the Company had no borrowings from the Federal Reserve Bank or other correspondent banks. At September 30, 2024, the Company had access to borrowing from the Federal Reserve up to $815,919 thousand based on collateral pledged at September 30, 2024. At September 30, 2024, the Company’s estimated unpledged collateral qualifying debt securities totaled $1,663,673 thousand. Debt securities eligible as collateral are shown at market value.
										(in thousands)
										9/30/24
	Debt Securities Eligible as
	Collateral:
	Corporate Securities									$	2,625,616
	Collateralized Loan
	Obligations rated AAA										356,221
	Obligations of States and
	Political Subdivisions										117,521
	Agency Mortgage Backed
	Securities										288,390
	Securities of U.S. Government
	Sponsored Entities										303,609
	U.S. Treasury Securities										4,899
	Total Debt Securities Eligible
	as Collateral									$	3,696,256
	Debt Securities Pledged
	as Collateral:
	Deposits by Public Entities									($	764,404	)
	Securities Sold under
	Repurchase Agreements										(442,940	)
	Debt Securities Pledged
	at the Federal Reserve Bank										(815,919	)
	Other										(9,320	)
	Total Debt Securities Pledged
	as Collateral									($	2,032,583	)
	Estimated Debt Securities
	Available to Pledge									$	1,663,673
11. Capital.
		(in thousands, except per-share amounts)
								%
		9/30/24			9/30/23			Change		6/30/24
	Shareholders' Equity	$	909,040		$	648,423		40.2	%	$	815,600
	Total Assets		6,161,143			6,567,288		-6.2	%		6,312,145
	Shareholders' Equity/
	Total Assets		14.75	%		9.87	%				12.92	%
	Shareholders' Equity/
	Total Loans		109.00	%		73.20	%				98.05	%
	Tangible Common Equity
	Ratio		13.03	%		8.17	%				11.21	%
	Common Shares Outstanding		26,686			26,649		0.1	%		26,683
	Common Equity Per Share	$	34.06		$	24.33		40.0	%	$	30.57
	Market Value Per Common
	Share		49.42			43.25		14.3	%		48.53
		(shares in thousands)
								%
		Q3'2024			Q3'2023			Change		Q2'2024
	Share issuances (Retirements):
	Total Shares Retired		-			-		n/m			-
	Average Retirement Price	$	-		$	-		n/m		$	-
	Net Shares Issued		(3	)		(1	)	n/m			(5	)
								%
		9/30'24YTD			9/30'23YTD			Change
	Total Shares Retired		4			274		n/m
	Average Retirement Price	$	45.58		$	50.11		n/m
	Net Shares (Issued) Retired		(15	)		264		n/m
12. Period-End Balance Sheets.
		(unaudited, dollars in thousands)
								%
		9/30/24			9/30/23			Change		6/30/24
	Assets:
	Cash and Due from Banks	$	502,945		$	420,550		19.6	%	$	486,124
	Debt Securities Available for
	Sale:
	Corporate Securities		1,901,617			1,814,424		4.8	%		1,855,618
	Collateralized Loan
	Obligations		1,078,920			1,503,078		-28.2	%		1,255,110
	Agency Mortgage Backed
	Securities		227,565			239,728		-5.1	%		222,806
	Securities of U.S.
	Government sponsored
	entities		303,609			279,364		8.7	%		291,206
	Obligations of States and
	Political Subdivisions		63,876			69,639		-8.3	%		69,758
	U.S. Treasury Securities		4,899			-		n/m			4,820
	Total Debt Securities
	Available for Sale		3,580,486			3,906,233		-8.3	%		3,699,318
	Debt Securities Held to
	Maturity:
	Agency Mortgage Backed
	Securities		62,745			84,347		-25.6	%		67,777
	Corporate Securities		733,748			726,951		0.9	%		732,049
	Obligations of States and
	Political Subdivisions (2)		53,768			77,558		-30.7	%		61,042
	Total Debt Securities
	Held to Maturity (2)		850,261			888,856		-4.3	%		860,868
	Loans		833,967			885,850		-5.9	%		831,842
	Allowance For Credit Losses
	on Loans		(15,318	)		(17,744	)	-13.7	%		(15,952	)
	Total Loans, net		818,649			868,106		-5.7	%		815,890
	Premises and Equipment, net		26,129			27,490		-5.0	%		26,275
	Identifiable Intangibles, net		178			404		-55.8	%		234
	Goodwill		121,673			121,673		0.0	%		121,673
	Other Assets		260,822			333,976		-21.9	%		301,763
	Total Assets	$	6,161,143		$	6,567,288		-6.2	%	$	6,312,145
	Liabilities and Shareholders'
	Equity:
	Deposits:
	Noninterest-Bearing	$	2,375,958		$	2,723,403		-12.8	%	$	2,459,467
	Interest-Bearing Transaction		925,455			1,138,220		-18.7	%		936,186
	Savings		1,677,332			1,732,849		-3.2	%		1,646,781
	Time		86,305			104,541		-17.4	%		89,006
	Total Deposits		5,065,050			5,699,013		-11.1	%		5,131,440
	Bank Term Funding
	Program Borrowings		-			-		n/m			200,000
	Securities Sold under
	Repurchase Agreements		132,487			115,341		14.9	%		100,167
	Total Short-Term
	Borrowed Funds		132,487			115,341		14.9	%		300,167
	Other Liabilities		54,566			104,511		-47.8	%		64,938
	Total Liabilities		5,252,103			5,918,865		-11.3	%		5,496,545
	Shareholders' Equity:
	Common Equity:
	Paid-In Capital		475,096			471,862		0.7	%		474,618
	Accumulated Other
	Comprehensive Loss		(127,653	)		(285,709	)	-55.3	%		(197,300	)
	Retained Earnings		561,597			462,270		21.5	%		538,282
	Total Shareholders' Equity		909,040			648,423		40.2	%		815,600
	Total Liabilities and
	Shareholders' Equity	$	6,161,143		$	6,567,288		-6.2	%	$	6,312,145
13. Income Statements.
		(unaudited, in thousands except per-share amounts)
								%
		Q3'2024			Q3'2023			Change		Q2'2024
	Interest and Loan Fee Income:
	Loans	$	11,441		$	11,925		-4.1	%	$	11,354
	Equity Securities		175			152		15.1	%		175
	Debt Securities Available
	for Sale		40,829			47,994		-14.9	%		43,927
	Debt Securities Held to
	Maturity		8,587			8,848		-2.9	%		8,655
	Interest-Bearing Cash		6,762			3,929		72.1	%		4,961
	Total Interest and Loan
	Fee Income		67,794			72,848		-6.9	%		69,072
	Interest Expense:
	Transaction Deposits		47			131		-64.1	%		69
	Savings Deposits		2,990			886		237.5	%		2,322
	Time Deposits		76			78		-2.6	%		69
	Bank Term Funding Program
	Borrowings		2,278			-		n/m			2,692
	Securities Sold under
	Repurchase Agreements		254			38		565.8	%		155
	Total Interest Expense		5,645			1,133		398.2	%		5,307
	Net Interest and Loan
	Fee Income		62,149			71,715		-13.3	%		63,765
	Provision for Credit Losses		-			400		n/m			-
	Noninterest Income:
	Service Charges on Deposit
	Accounts		3,585			3,705		-3.2	%		3,469
	Merchant Processing
	Services		2,474			2,911		-15.0	%		2,733
	Debit Card Fees		1,702			1,717		-0.9	%		1,706
	Trust Fees		846			783		8.0	%		811
	ATM Processing Fees		533			640		-16.7	%		540
	Other Service Fees		454			463		-1.9	%		450
	Life Insurance Gains		202			278		n/m			-
	Other Noninterest Income		2,129			784		171.6	%		791
	Total Noninterest Income		11,925			11,281		5.7	%		10,500
	Noninterest Expense:
	Salaries and Related Benefits		12,762			11,820		8.0	%		12,483
	Occupancy and Equipment		5,256			5,065		3.8	%		5,158
	Outsourced Data Processing		2,614			2,473		5.7	%		2,511
	Limited Partnership
	Operating Losses		1,210			1,440		-16.0	%		1,440
	Professional Fees		337			401		-16.0	%		362
	Courier Service		682			745		-8.5	%		686
	Other Noninterest Expense		3,448			3,706		-7.0	%		3,490
	Total Noninterest Expense		26,309			25,650		2.6	%		26,130
	Income Before Income Taxes		47,765			56,946		-16.1	%		48,135
	Income Tax Provision		12,708			15,345		-17.2	%		12,673
	Net Income	$	35,057		$	41,601		-15.7	%	$	35,462
	Average Common Shares
	Outstanding		26,685			26,648		0.1	%		26,680
	Diluted Average Common
	Shares Outstanding		26,686			26,650		0.1	%		26,681
	Per Common Share Data:
	Basic Earnings	$	1.31		$	1.56		-16.0	%	$	1.33
	Diluted Earnings		1.31			1.56		-16.0	%		1.33
	Dividends Paid		0.44			0.44		0.0	%		0.44
								%
		9/30'24YTD			9/30'23YTD			Change
	Interest and Loan Fee Income:
	Loans	$	34,119		$	35,510		-3.9	%
	Equity Securities		524			456		14.9	%
	Debt Securities Available
	for sale		130,999			142,256		-7.9	%
	Debt Securities Held to
	Maturity		25,964			26,758		-3.0	%
	Interest-Bearing Cash		14,006			7,981		75.5	%
	Total Interest and Loan
	Fee Income		205,612			212,961		-3.5	%
	Interest Expense:
	Transaction Deposits		235			329		-28.6	%
	Savings Deposits		7,229			1,562		362.8	%
	Time Deposits		215			244		-11.9	%
	Bank Term Funding Program
	Borrowings		5,813			-		n/m
	Securities Sold under
	Repurchase Agreements		461			76		506.6	%
	Total Interest Expense		13,953			2,211		531.1	%
	Net Interest and Loan
	Fee Income		191,659			210,750		-9.1	%
	Provision (Reversal
	of Provision) for
	Credit Losses (1)		300			(1,150	)	n/m
	Noninterest Income:
	Service Charges on Deposit		10,524			10,629		-1.0	%
	Accounts
	Merchant Processing
	Services		7,714			8,417		-8.4	%
	Debit Card Fees		4,951			5,118		-3.3	%
	Trust Fees		2,451			2,358		3.9	%
	ATM Processing Fees		1,664			1,996		-16.6	%
	Other Service Fees		1,342			1,320		1.7	%
	Life Insurance Gains		202			278		n/m
	Securities Losses		-			(125	)	n/m
	Other Noninterest Income		3,674			2,539		44.7	%
	Total Noninterest Income		32,522			32,530		-0.0	%
	Noninterest Expense:
	Salaries and Related Benefits		37,831			35,715		5.9	%
	Occupancy and Equipment		15,454			15,562		-0.7	%
	Outsourced Data Processing		7,661			7,405		3.5	%
	Limited Partnership
	Operating Losses		4,090			4,314		-5.2	%
	Professional Fees		1,101			1,362		-19.2	%
	Courier Service		2,017			1,971		2.3	%
	Other Noninterest Expense		10,384			11,370		-8.7	%
	Total Noninterest Expense		78,538			77,699		1.1	%
	Income Before Income Taxes		145,343			166,731		-12.8	%
	Income Tax Provision		38,407			44,431		-13.6	%
	Net Income	$	106,936		$	122,300		-12.6	%
	Average Common Shares
	Outstanding		26,680			26,718		-0.1	%
	Diluted Average Common
	Shares Outstanding		26,681			26,721		-0.1	%
	Per Common Share Data:
	Basic Earnings	$	4.01		$	4.58		-12.4	%
	Diluted Earnings		4.01			4.58		-12.4	%
	Dividends Paid		1.32			1.28		3.1	%
	Footnotes and Abbreviations:
	(1) A recovery in excess of principal charged off on the 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.
	(2) 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, 2024, June 30, 2024 and September 30, 2023.
	(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