SAN RAFAEL, Calif., Jan. 16, 2025 (GLOBE NEWSWIRE) — Westamerica Bancorporation WABC, parent company of Westamerica Bank, generated net income for the fourth quarter 2024 of $31.7 million and diluted earnings per common share (“EPS”) of $1.19. Fourth quarter 2024 results include an increase to the book tax provision to reconcile the 2023 income tax provision to the filed 2023 tax returns, which reduced EPS $0.01. Fourth quarter 2024 results compare to third quarter 2024 net income of $35.1 million and EPS of $1.31, which included gains from life insurance and sales of other assets equivalent to EPS of $0.04.
“Westamerica’s fourth quarter 2024 results benefited from the Company’s valuable low-cost deposit base, of which 47 percent was represented by non-interest bearing checking accounts during the quarter; the annualized cost of funding our loan and bond portfolios was 0.24 percent in the quarter. Operating expenses remained well controlled at 37 percent of total revenues. The Company recognized no provision for credit losses. At December 31, 2024, nonperforming assets were stable at $0.7 million and the allowance for credit losses was $14.8 million” said Chairman, President and CEO David Payne. “Fourth quarter 2024 results generated an annualized 12.1 percent return on average common equity. Shareholders were paid a $0.44 per common share dividend during the fourth quarter 2024,” concluded Payne.
Net interest income on a fully-taxable equivalent (FTE) basis was $59.2 million for the fourth quarter 2024, compared to $62.5 million for the third quarter 2024. The annualized yield earned on loans, bonds and cash for the fourth quarter 2024 was 4.25 percent compared to 4.45 percent for the third quarter 2024. The annualized cost of funding the loan and bond portfolios was 0.24 percent for the fourth quarter 2024, compared to 0.37 percent for the third quarter 2024.
Noninterest income for the fourth quarter 2024 totaled $10.6 million compared to $11.9 million for the third quarter 2024. Third quarter 2024 results include $1.6 million in gains from life insurance and sales of other assets.
Noninterest expenses for the fourth quarter 2024 were $25.9 million compared to $26.3 million for the third quarter 2024.
The income tax provision for the fourth quarter 2024 includes a $305 thousand increase to reconcile the 2023 income tax provision to the filed 2023 tax returns.
Westamerica Bancorporation’s wholly owned subsidiary Westamerica Bank, operates commercial banking and trust offices throughout Northern and Central California.
For additional information contact:
Westamerica Bancorporation
1108 Fifth Avenue, San Rafael, CA 94901
Robert A. Thorson – SVP & Treasurer
707-863-6840
investments@westamerica.com
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 September 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 January 16, 2025
WESTAMERICA BANCORPORATION
FINANCIAL HIGHLIGHTS
December 31, 2024
1. Net Income Summary.
(in thousands except per-share amounts)
%
Q4’2024
Q4’2023
Change
Q3’2024
Net Interest and Loan Fee
Income (FTE)
$
59,247
$
69,738
-15.0
%
$
62,465
Provision for
Credit Losses
–
–
n/m
–
Noninterest Income
10,633
10,992
-3.3
%
11,925
Noninterest Expense
25,853
25,517
1.3
%
26,309
Income Before Taxes (FTE)
44,027
55,213
-20.3
%
48,081
Income Tax Provision (FTE)
12,327
15,745
-21.7
%
13,024
Net Income
$
31,700
$
39,468
-19.7
%
$
35,057
Average Common Shares
Outstanding
26,699
26,662
0.1
%
26,685
Diluted Average Common
Shares Outstanding
26,701
26,664
0.1
%
26,686
Operating Ratios:
Basic Earnings Per Common
Share
$
1.19
$
1.48
-19.6
%
$
1.31
Diluted Earnings Per
Common Share
1.19
1.48
-19.6
%
1.31
Return On Assets (a)
2.02
%
2.35
%
2.16
%
Return On Common
Equity (a)
12.1
%
16.7
%
13.7
%
Net Interest Margin (FTE) (a)
4.01
%
4.41
%
4.08
%
Efficiency Ratio (FTE)
37.0
%
31.6
%
35.4
%
Dividends Paid Per Common
Share
$
0.44
$
0.44
0.0
%
$
0.44
Common Dividend Payout
Ratio
37
%
30
%
33
%
%
12/31’24YTD
12/31’23YTD
Change
Net Interest and Loan Fee
Income (FTE)
$
251,906
$
281,673
-10.6
%
Provision (Reversal
of Provision) for
Credit Losses (1)
300
(1,150
)
n/m
Noninterest Income
43,155
43,522
-0.8
%
Noninterest Expense
104,391
103,216
1.1
%
Income Before Taxes (FTE)
190,370
223,129
-14.7
%
Income Tax Provision (FTE)
51,734
61,361
-15.7
%
Net Income
$
138,636
$
161,768
-14.3
%
Average Common Shares
Outstanding
26,685
26,703
-0.1
%
Diluted Average Common
Shares Outstanding
26,686
26,706
-0.1
%
Operating Ratios:
Basic Earnings Per Common
Share
$
5.20
$
6.06
-14.2
%
Diluted Earnings Per
Common Share
5.20
6.06
-14.2
%
Return On Assets
2.15
%
2.35
%
Return On Common
Equity
13.8
%
18.1
%
Net Interest Margin (FTE)
4.14
%
4.37
%
Efficiency Ratio (FTE)
35.4
%
31.7
%
Dividends Paid Per Common
Share
$
1.76
$
1.72
2.3
%
Common Dividend Payout
Ratio
34
%
28
%
2. Net Interest Income.
(dollars in thousands)
%
Q4’2024
Q4’2023
Change
Q3’2024
Interest and Loan Fee
Income (FTE)
$
62,713
$
71,417
-12.2
%
$
68,110
Interest Expense
3,466
1,679
106.4
%
5,645
Net Interest and Loan Fee
Income (FTE)
$
59,247
$
69,738
-15.0
%
$
62,465
Average Earning Assets
$
5,850,620
$
6,251,143
-6.4
%
$
6,062,174
Average Interest-Bearing
Liabilities
2,796,675
2,966,038
-5.7
%
2,950,093
Yield on Earning Assets
(FTE) (a)
4.25
%
4.52
%
4.45
%
Cost of Funds (a)
0.24
%
0.11
%
0.37
%
Net Interest Margin (FTE) (a)
4.01
%
4.41
%
4.08
%
Interest Expense /
Interest-Bearing
Liabilities (a)
0.49
%
0.22
%
0.76
%
Net Interest Spread (FTE) (a)
3.76
%
4.30
%
3.69
%
%
12/31’24YTD
12/31’23YTD
Change
Interest and Loan Fee
Income (FTE)
$
269,325
$
285,563
-5.7
%
Interest Expense
17,419
3,890
347.8
%
Net Interest and Loan Fee
Income (FTE)
$
251,906
$
281,673
-10.6
%
Average Earning Assets
$
6,043,966
$
6,451,821
-6.3
%
Average Interest-Bearing
Liabilities
2,925,742
3,128,115
-6.5
%
Yield on Earning Assets
(FTE)
4.43
%
4.43
%
Cost of Funds
0.29
%
0.06
%
Net Interest Margin (FTE)
4.14
%
4.37
%
Interest Expense /
Interest-Bearing
Liabilities
0.60
%
0.12
%
Net Interest Spread (FTE)
3.83
%
4.31
%
3. Loans & Other Earning Assets.
(average volume, dollars in thousands)
%
Q4’2024
Q4’2023
Change
Q3’2024
Total Assets
$
6,243,799
$
6,665,040
-6.3
%
$
6,461,843
Total Earning Assets
5,850,620
6,251,143
-6.4
%
6,062,174
Total Loans
821,767
873,635
-5.9
%
831,418
Commercial Loans
131,088
139,535
-6.1
%
136,160
Commercial Real Estate
Loans
503,546
490,645
2.6
%
493,272
Consumer Loans
187,133
243,455
-23.1
%
201,986
Total Investment Securities
4,557,436
5,182,557
-12.1
%
4,736,024
Debt Securities Available for
Sale
3,710,378
4,298,396
-13.7
%
3,881,678
Debt Securities Held to
Maturity
847,058
884,161
-4.2
%
854,346
Total Interest-Bearing Cash
471,417
194,951
141.8
%
494,732
Loans / Deposits
16.3
%
15.7
%
16.3
%
%
12/31’24YTD
12/31’23YTD
Change
Total Assets
$
6,444,687
$
6,871,366
-6.2
%
Total Earning Assets
6,043,966
6,451,821
-6.3
%
Total Loans
836,136
912,316
-8.4
%
Commercial Loans
133,569
153,499
-13.0
%
Commercial Real Estate
Loans
493,282
492,183
0.2
%
Consumer Loans
209,285
266,634
-21.5
%
Total Investment Securities
4,833,024
5,334,711
-9.4
%
Debt Securities Available for
Sale
3,973,134
4,436,003
-10.4
%
Debt Securities Held to
Maturity
859,890
898,708
-4.3
%
Total Interest-Bearing Cash
374,806
204,794
83.0
%
Loans / Deposits
16.2
%
15.8
%
4. Deposits, Other Interest-Bearing Liabilities & Equity.
(average volume, dollars in thousands)
%
Q4’2024
Q4’2023
Change
Q3’2024
Total Deposits
$
5,028,363
$
5,573,281
-9.8
%
$
5,092,244
Noninterest Demand
2,342,092
2,672,170
-12.4
%
2,425,646
Interest-Bearing Transaction
934,876
1,085,864
-13.9
%
937,694
Savings
1,666,542
1,713,803
-2.8
%
1,639,997
Time greater than $100K
31,541
37,970
-16.9
%
32,815
Time less than $100K
53,312
63,474
-16.0
%
56,092
Total Short-Term Borrowings
110,404
64,927
70.0
%
283,495
Bank Term Funding Program
Borrowings
–
–
n/m
167,391
Securities Sold under
Repurchase Agreements
110,404
64,927
70.0
%
116,104
Shareholders’ Equity
1,039,017
938,738
10.7
%
1,016,642
Demand Deposits /
Total Deposits
46.6
%
47.9
%
47.6
%
Transaction & Savings
Deposits / Total Deposits
98.3
%
98.2
%
98.3
%
%
12/31’24YTD
12/31’23YTD
Change
Total Deposits
$
5,174,942
$
5,787,361
-10.6
%
Noninterest Demand
2,445,945
2,748,544
-11.0
%
Interest-Bearing Transaction
977,912
1,156,684
-15.5
%
Savings
1,660,227
1,766,225
-6.0
%
Time greater than $100K
33,794
48,076
-29.7
%
Time less than $100K
57,064
67,832
-15.9
%
Total Short-Term Borrowings
196,745
89,298
120.3
%
Bank Term Funding Program
Borrowings
107,364
–
n/m
Securities Sold under
Repurchase Agreements
89,381
89,298
0.1
%
Shareholders’ Equity
1,003,242
894,610
12.1
%
Demand Deposits /
Total Deposits
47.3
%
47.5
%
Transaction & Savings
Deposits / Total Deposits
98.2
%
98.0
%
5. Interest Yields Earned & Rates Paid.
(dollars in thousands)
Q4’2024
Average
Income/
Yield (a) /
Volume
Expense
Rate (a)
Interest & Loan Fee Income Earned:
Total Earning Assets (FTE)
$
5,850,620
$
62,713
4.25
%
Total Loans (FTE)
821,767
11,249
5.45
%
Commercial Loans (FTE)
131,088
2,107
6.39
%
Commercial Real Estate
Loans
503,546
6,477
5.12
%
Consumer Loans
187,133
2,665
5.67
%
Total Investments (FTE)
4,557,436
45,805
3.99
%
Total Debt Securities
Available for Sale (FTE)
3,710,378
37,169
3.97
%
Corporate Securities
2,038,474
14,011
2.75
%
Collateralized Loan
Obligations
1,037,319
17,689
6.67
%
Agency Mortgage Backed
Securities
240,259
1,688
2.81
%
Securities of U.S.
Government Sponsored
Entities
310,617
2,776
3.58
%
Obligations of States and
Political Subdivisions
(FTE)
64,575
507
3.14
%
U.S. Treasury Securities
4,907
63
5.08
%
Other Debt Securities
Available for Sale (FTE)
14,227
435
12.22
%
Total Debt Securities Held to
Maturity (FTE)
847,058
8,636
4.08
%
Agency Mortgage Backed
Securities
60,572
351
2.31
%
Corporate Securities
734,395
7,815
4.26
%
Obligations of States and
Political Subdivisions
(FTE)
52,091
470
3.61
%
Total Interest-Bearing Cash
471,417
5,659
4.70
%
Interest Expense Paid:
Total Earning Assets
5,850,620
3,466
0.24
%
Total Interest-Bearing
Liabilities
2,796,675
3,466
0.49
%
Total Interest-Bearing
Deposits
2,686,271
3,262
0.48
%
Interest-Bearing Transaction
934,876
46
0.02
%
Savings
1,666,542
3,148
0.75
%
Time less than $100K
53,312
43
0.32
%
Time greater than $100K
31,541
25
0.31
%
Total Short-Term Borrowings
110,404
204
0.73
%
Securities Sold under
Repurchase Agreements
110,404
204
0.73
%
Net Interest Income and
Margin (FTE)
$
59,247
4.01
%
Q4’2023
Average
Income/
Yield (a) /
Volume
Expense
Rate (a)
Interest & Loan Fee Income Earned:
Total Earning Assets (FTE)
$
6,251,143
$
71,417
4.52
%
Total Loans (FTE)
873,635
11,695
5.31
%
Commercial Loans (FTE)
139,535
2,503
7.12
%
Commercial Real Estate
Loans
490,645
5,945
4.81
%
Consumer Loans
243,455
3,247
5.29
%
Total Investments (FTE)
5,182,557
57,032
4.35
%
Total Debt Securities
Available for Sale (FTE)
4,298,396
48,094
4.42
%
Corporate Securities
2,129,736
14,687
2.76
%
Collateralized Loan
Obligations
1,508,494
28,041
7.27
%
Agency Mortgage Backed
Securities
264,514
1,627
2.46
%
Securities of U.S.
Government sponsored
entities
308,234
2,777
3.60
%
Obligations of States and
Political Subdivisions
(FTE)
73,191
549
3.00
%
Other Debt Securities
Available for Sale (FTE)
14,227
413
11.62
%
Total Debt Securities Held to
Maturity (FTE)
884,161
8,938
4.04
%
Agency Mortgage Backed
Securities
81,789
456
2.23
%
Corporate Securities
727,579
7,816
4.30
%
Obligations of States and
Political Subdivisions
(FTE)
74,793
666
3.56
%
Total Interest-Bearing Cash
194,951
2,690
5.40
%
Interest Expense Paid:
Total Earning Assets
6,251,143
1,679
0.11
%
Total Interest-Bearing
Liabilities
2,966,038
1,679
0.22
%
Total Interest-Bearing
Deposits
2,901,111
1,635
0.22
%
Interest-Bearing Transaction
1,085,864
128
0.05
%
Savings
1,713,803
1,431
0.33
%
Time less than $100K
63,474
51
0.32
%
Time greater than $100K
37,970
25
0.26
%
Total Short-Term Borrowings
64,927
44
0.26
%
Securities Sold under
Repurchase Agreements
64,927
44
0.26
%
Net Interest Income and
Margin (FTE)
$
69,738
4.41
%
6. Noninterest Income.
(dollars in thousands except per-share amounts)
%
Q4’2024
Q4’2023
Change
Q3’2024
Service Charges on Deposit
Accounts
$
3,501
$
3,540
-1.1
%
$
3,585
Merchant Processing
Services
2,735
2,863
-4.5
%
2,474
Debit Card Fees
1,902
2,067
-8.0
%
1,702
Trust Fees
867
764
13.5
%
846
ATM Processing Fees
506
622
-18.6
%
533
Other Service Fees
428
445
-3.8
%
454
Life Insurance Gains
–
1
n/m
202
Other Noninterest Income
694
690
0.6
%
2,129
Total Noninterest Income
$
10,633
$
10,992
-3.3
%
$
11,925
Operating Ratios:
Total Revenue (FTE)
$
69,880
$
80,730
-13.4
%
$
74,390
Noninterest Income /
Revenue (FTE)
15.2
%
13.6
%
16.0
%
Service Charges /
Avg. Deposits (a)
0.28
%
0.25
%
0.28
%
Total Revenue (FTE) Per
Avg. Common Share (a)
$
10.41
$
12.01
-13.3
%
$
11.09
%
12/31’24YTD
12/31’23YTD
Change
Service Charges on Deposit
Accounts
$
14,025
$
14,169
-1.0
%
Merchant Processing
Services
10,449
11,280
-7.4
%
Debit Card Fees
6,853
7,185
-4.6
%
Trust Fees
3,318
3,122
6.3
%
ATM Processing Fees
2,170
2,618
-17.1
%
Other Service Fees
1,770
1,765
0.3
%
Life Insurance Gains
202
279
n/m
Securities Losses
–
(125
)
n/m
Other Noninterest Income
4,368
3,229
35.3
%
Total Noninterest Income
$
43,155
$
43,522
-0.8
%
Operating Ratios:
Total Revenue (FTE)
$
295,061
$
325,195
-9.3
%
Noninterest Income /
Revenue (FTE)
14.6
%
13.4
%
Service Charges /
Avg. Deposits
0.27
%
0.24
%
Total Revenue (FTE) Per
Avg. Common Share
$
11.06
$
12.18
-9.2
%
7. Noninterest Expense.
(dollars in thousands)
%
Q4’2024
Q4’2023
Change
Q3’2024
Salaries and Related Benefits
$
12,461
$
12,156
2.5
%
$
12,762
Occupancy and Equipment
5,219
4,958
5.3
%
5,256
Outsourced Data Processing
2,610
2,441
6.9
%
2,614
Limited Partnership
Operating Losses
1,095
1,440
-24.0
%
1,210
Professional Fees
369
389
-5.1
%
337
Courier Service
692
681
1.6
%
682
Other Noninterest Expense
3,407
3,452
-1.3
%
3,448
Total Noninterest Expense
$
25,853
$
25,517
1.3
%
$
26,309
Operating Ratios:
Noninterest Expense /
Avg. Earning Assets (a)
1.76
%
1.62
%
1.73
%
Noninterest Expense /
Revenues (FTE)
37.0
%
31.6
%
35.4
%
%
12/31’24YTD
12/31’23YTD
Change
Salaries and Related Benefits
$
50,292
$
47,871
5.1
%
Occupancy and Equipment
20,673
20,520
0.7
%
Outsourced Data Processing
10,271
9,846
4.3
%
Limited Partnership
Operating Losses
5,185
5,754
-9.9
%
Professional Fees
1,470
1,751
-16.0
%
Courier Service
2,709
2,652
2.1
%
Other Noninterest Expense
13,791
14,822
-7.0
%
Total Noninterest Expense
$
104,391
$
103,216
1.1
%
Operating Ratios:
Noninterest Expense /
Avg. Earning Assets
1.73
%
1.60
%
Noninterest Expense /
Revenues (FTE)
35.4
%
31.7
%
8. Allowance for Credit Losses.
(dollars in thousands)
%
Q4’2024
Q4’2023
Change
Q3’2024
Average Total Loans
$
821,767
$
873,635
-5.9
%
$
831,418
Beginning of Period
Allowance for Credit
Losses on Loans (ACLL)
$
15,318
$
17,744
-13.7
%
$
15,952
Provision for
Credit Losses
–
–
n/m
–
Net ACLL Losses
(538
)
(877
)
-38.7
%
(634
)
End of Period ACLL
$
14,780
$
16,867
-12.4
%
$
15,318
Gross ACLL Recoveries /
Gross ACLL Losses
63
%
60
%
62
%
Net ACLL Losses /
Avg. Total Loans (a)
-0.26
%
-0.40
%
-0.30
%
%
12/31’24YTD
12/31’23YTD
Change
Average Total Loans
$
836,136
$
912,316
-8.4
%
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
(2,387
)
(2,267
)
5.3
%
End of Period ACLL
$
14,780
$
16,867
-12.4
%
Gross ACLL Recoveries /
Gross ACLL Losses
64
%
72
%
Net ACLL Losses /
Avg. Total Loans
-0.29
%
-0.25
%
(dollars in thousands)
%
12/31/24
12/31/23
Change
9/30/24
Allowance for Credit Losses
on Loans
$
14,780
$
16,867
-12.4
%
$
15,318
Allowance for Credit Losses
on Held to Maturity
Securities
1
1
49.1
%
1
Total Allowance for Credit
Losses
$
14,781
$
16,868
-12.4
%
$
15,319
Allowance for Unfunded
Credit Commitments
$
201
$
201
0.0
%
$
201
9. Credit Quality.
(dollars in thousands)
%
12/31/24
12/31/23
Change
9/30/24
Nonperforming Loans:
Nonperforming Nonaccrual
Loans
$
201
$
401
-49.9
%
$
252
Performing Nonaccrual
Loans
–
2
n/m
–
Total Nonaccrual Loans
201
403
-50.1
%
252
Accruing Loans 90+ Days
Past Due
534
388
37.6
%
667
Total Nonperforming Loans
$
735
$
791
-7.1
%
$
919
Total Loans Outstanding
$
820,300
$
866,602
-5.3
%
$
833,967
Total Assets
6,076,274
6,364,592
-4.5
%
6,161,143
Loans:
Allowance for Credit Losses
on Loans
$
14,780
$
16,867
-12.4
%
$
15,318
Allowance for Credit Losses
on Loans / Loans
1.80
%
1.95
%
1.84
%
Nonperforming Loans /
Total Loans
0.09
%
0.09
%
0.11
%
10. Liquidity.
At December 31, 2024, the Company had $601,494 thousand in cash balances. During the twelve months ending December 31, 2025, the Company expects to receive $309,000 thousand in principal payments from its debt securities. If additional operational liquidity is required, the Company can pledge debt securities as collateral for borrowing purposes; at December 31, 2024, the Company’s debt securities which qualify as collateral for borrowing totaled $3,534,099 thousand. In the ordinary course of business, the Company pledges debt securities as collateral for certain depository customers; at December 31, 2024, the Company had pledged $726,784 thousand in debt securities for depository customers. In the ordinary course of business, the Company pledges debt securities as collateral for borrowing from the Federal Reserve Bank; at December 31, 2024, the Company had pledged $766,606 thousand in debt securities at the Federal Reserve Bank. During the twelve months ended December 31, 2024, the Company’s average borrowings from the Federal Reserve Bank and other correspondent banks were $107,364 thousand and $-0- thousand, respectively, and at December 31, 2024, the Company had no borrowings from the Federal Reserve Bank or other correspondent banks. At December 31, 2024, the Company had access to borrowing from the Federal Reserve up to $766,606 thousand based on collateral pledged at December 31, 2024. At December 31, 2024, the Company’s estimated unpledged collateral qualifying debt securities totaled $1,597,486 thousand. Debt securities eligible as collateral are shown at market value.
(in thousands)
12/31/24
Debt Securities Eligible as
Collateral:
Corporate Securities
$
2,539,147
Collateralized Loan
Obligations rated AAA
311,650
Obligations of States and
Political Subdivisions
113,082
Agency Mortgage Backed
Securities
273,148
Securities of U.S. Government
Sponsored Entities
292,117
U.S. Treasury Securities
4,955
Total Debt Securities Eligible
as Collateral
$
3,534,099
Debt Securities Pledged
as Collateral:
Debt Securities Pledged
at the Federal Reserve Bank
($
766,606
)
Deposits by Public Entities
(726,784
)
Securities Sold under
Repurchase Agreements
(434,205
)
Other
(9,018
)
Total Debt Securities Pledged
as Collateral
($
1,936,613
)
Estimated Debt Securities
Available to Pledge
$
1,597,486
11. Capital.
(in thousands, except per-share amounts)
%
12/31/24
12/31/23
Change
9/30/24
Shareholders’ Equity
$
889,957
$
772,894
15.1
%
$
909,040
Total Assets
6,076,274
6,364,592
-4.5
%
6,161,143
Shareholders’ Equity/
Total Assets
14.65
%
12.14
%
14.75
%
Shareholders’ Equity/
Total Loans
108.49
%
89.19
%
109.00
%
Tangible Common Equity
Ratio
12.90
%
10.43
%
13.03
%
Common Shares Outstanding
26,708
26,671
0.1
%
26,686
Common Equity Per Share
$
33.32
$
28.98
15.0
%
$
34.06
Market Value Per Common
Share
52.46
56.41
-7.0
%
49.42
(shares in thousands)
%
Q4’2024
Q4’2023
Change
Q3’2024
Share (Issuances) Retirements:
Total Shares Retired
–
–
n/m
–
Average Retirement Price
$
–
$
–
n/m
$
–
Net Shares Issued
(22
)
(22
)
n/m
(3
)
%
12/31’24YTD
12/31’23YTD
Change
Total Shares Retired
4
274
n/m
Average Retirement Price
$
45.58
$
50.11
n/m
Net Shares (Issued) Retired
(37
)
242
n/m
12. Period-End Balance Sheets.
(unaudited, dollars in thousands)
%
12/31/24
12/31/23
Change
9/30/24
Assets:
Cash and Due from Banks
$
601,494
$
190,314
216.1
%
$
502,945
Debt Securities Available for
Sale:
Corporate Securities
1,835,937
1,909,548
-3.9
%
1,901,617
Collateralized Loan
Obligations
982,589
1,484,597
-33.8
%
1,078,920
Agency Mortgage Backed
Securities
218,026
239,454
-8.9
%
227,565
Securities of U.S.
Government Sponsored
Entities
292,117
294,919
-1.0
%
303,609
Obligations of States and
Political Subdivisions
62,186
71,283
-12.8
%
63,876
U.S. Treasury Securities
4,955
–
n/m
4,899
Total Debt Securities
Available for Sale
3,395,810
3,999,801
-15.1
%
3,580,486
Debt Securities Held to
Maturity:
Agency Mortgage Backed
Securities
57,927
78,565
-26.3
%
62,745
Corporate Securities
735,447
728,650
0.9
%
733,748
Obligations of States and
Political Subdivisions (2)
51,260
71,181
-28.0
%
53,768
Total Debt Securities
Held to Maturity (2)
844,634
878,396
-3.8
%
850,261
Loans
820,300
866,602
-5.3
%
833,967
Allowance For Credit Losses
on Loans
(14,780
)
(16,867
)
-12.4
%
(15,318
)
Total Loans, net
805,520
849,735
-5.2
%
818,649
Premises and Equipment, net
26,133
27,016
-3.3
%
26,129
Identifiable Intangibles, net
125
347
-63.9
%
178
Goodwill
121,673
121,673
0.0
%
121,673
Other Assets
280,885
297,310
-5.5
%
260,822
Total Assets
$
6,076,274
$
6,364,592
-4.5
%
$
6,161,143
Liabilities and Shareholders’
Equity:
Deposits:
Noninterest-Bearing
$
2,333,389
$
2,605,844
-10.5
%
$
2,375,958
Interest-Bearing Transaction
953,863
1,072,233
-11.0
%
925,455
Savings
1,642,360
1,699,388
-3.4
%
1,677,332
Time
82,238
96,802
-15.0
%
86,305
Total Deposits
5,011,850
5,474,267
-8.4
%
5,065,050
Securities Sold under
Repurchase Agreements
120,322
58,162
106.9
%
132,487
Total Short-Term
Borrowed Funds
120,322
58,162
106.9
%
132,487
Other Liabilities
54,145
59,269
-8.6
%
54,566
Total Liabilities
5,186,317
5,591,698
-7.2
%
5,252,103
Shareholders’ Equity:
Common Equity:
Paid-In Capital
476,506
473,171
0.7
%
475,096
Accumulated Other
Comprehensive Loss
(168,104
)
(190,282
)
-11.7
%
(127,653
)
Retained Earnings
581,555
490,005
18.7
%
561,597
Total Shareholders’ Equity
889,957
772,894
15.1
%
909,040
Total Liabilities and
Shareholders’ Equity
$
6,076,274
$
6,364,592
-4.5
%
$
6,161,143
13. Income Statements.
(unaudited, in thousands except per-share amounts)
%
Q4’2024
Q4’2023
Change
Q3’2024
Interest and Loan Fee Income:
Loans
$
11,167
$
11,606
-3.8
%
$
11,441
Equity Securities
195
174
12.1
%
175
Debt Securities Available
for Sale
36,843
47,783
-22.9
%
40,829
Debt Securities Held to
Maturity
8,538
8,799
-3.0
%
8,587
Interest-Bearing Cash
5,659
2,690
110.4
%
6,762
Total Interest and Loan
Fee Income
62,402
71,052
-12.2
%
67,794
Interest Expense:
Transaction Deposits
46
128
-64.1
%
47
Savings Deposits
3,148
1,431
120.0
%
2,990
Time Deposits
68
76
-10.5
%
76
Bank Term Funding Program
Borrowings
–
–
n/m
2,278
Securities Sold under
Repurchase Agreements
204
44
359.1
%
254
Total Interest Expense
3,466
1,679
106.4
%
5,645
Net Interest and Loan
Fee Income
58,936
69,373
-15.0
%
62,149
Provision for Credit Losses
–
–
n/m
–
Noninterest Income:
Service Charges on Deposit
Accounts
3,501
3,540
-1.1
%
3,585
Merchant Processing
Services
2,735
2,863
-4.5
%
2,474
Debit Card Fees
1,902
2,067
-8.0
%
1,702
Trust Fees
867
764
13.5
%
846
ATM Processing Fees
506
622
-18.6
%
533
Other Service Fees
428
445
-3.8
%
454
Life Insurance Gains
–
1
n/m
202
Other Noninterest Income
694
690
0.6
%
2,129
Total Noninterest Income
10,633
10,992
-3.3
%
11,925
Noninterest Expense:
Salaries and Related Benefits
12,461
12,156
2.5
%
12,762
Occupancy and Equipment
5,219
4,958
5.3
%
5,256
Outsourced Data Processing
2,610
2,441
6.9
%
2,614
Limited Partnership
Operating Losses
1,095
1,440
-24.0
%
1,210
Professional Fees
369
389
-5.1
%
337
Courier Service
692
681
1.6
%
682
Other Noninterest Expense
3,407
3,452
-1.3
%
3,448
Total Noninterest Expense
25,853
25,517
1.3
%
26,309
Income Before Income Taxes
43,716
54,848
-20.3
%
47,765
Income Tax Provision
12,016
15,380
-21.9
%
12,708
Net Income
$
31,700
$
39,468
-19.7
%
$
35,057
Average Common Shares
Outstanding
26,699
26,662
0.1
%
26,685
Diluted Average Common
Shares Outstanding
26,701
26,664
0.1
%
26,686
Per Common Share Data:
Basic Earnings
$
1.19
$
1.48
-19.6
%
$
1.31
Diluted Earnings
1.19
1.48
-19.6
%
1.31
Dividends Paid
0.44
0.44
0.0
%
0.44
%
12/31’24YTD
12/31’23YTD
Change
Interest and Loan Fee Income:
Loans
$
45,286
$
47,116
-3.9
%
Equity Securities
719
630
14.1
%
Debt Securities Available
for Sale
167,842
190,039
-11.7
%
Debt Securities Held to
Maturity
34,502
35,557
-3.0
%
Interest-Bearing Cash
19,665
10,671
84.3
%
Total Interest and Loan
Fee Income
268,014
284,013
-5.6
%
Interest Expense:
Transaction Deposits
281
457
-38.5
%
Savings Deposits
10,377
2,993
246.7
%
Time Deposits
283
320
-11.6
%
Bank Term Funding Program
Borrowings
5,813
–
n/m
Securities Sold under
Repurchase Agreements
665
120
454.2
%
Total Interest Expense
17,419
3,890
347.8
%
Net Interest and Loan
Fee Income
250,595
280,123
-10.5
%
Provision (Reversal
of Provision) for
Credit Losses (1)
300
(1,150
)
n/m
Noninterest Income:
Service Charges on Deposit
14,025
14,169
-1.0
%
Accounts
Merchant Processing
Services
10,449
11,280
-7.4
%
Debit Card Fees
6,853
7,185
-4.6
%
Trust Fees
3,318
3,122
6.3
%
ATM Processing Fees
2,170
2,618
-17.1
%
Other Service Fees
1,770
1,765
0.3
%
Life Insurance Gains
202
279
n/m
Securities Losses
–
(125
)
n/m
Other Noninterest Income
4,368
3,229
35.3
%
Total Noninterest Income
43,155
43,522
-0.8
%
Noninterest Expense:
Salaries and Related Benefits
50,292
47,871
5.1
%
Occupancy and Equipment
20,673
20,520
0.7
%
Outsourced Data Processing
10,271
9,846
4.3
%
Limited Partnership
Operating Losses
5,185
5,754
-9.9
%
Professional Fees
1,470
1,751
-16.0
%
Courier Service
2,709
2,652
2.1
%
Other Noninterest Expense
13,791
14,822
-7.0
%
Total Noninterest Expense
104,391
103,216
1.1
%
Income Before Income Taxes
189,059
221,579
-14.7
%
Income Tax Provision
50,423
59,811
-15.7
%
Net Income
$
138,636
$
161,768
-14.3
%
Average Common Shares
Outstanding
26,685
26,703
-0.1
%
Diluted Average Common
Shares Outstanding
26,686
26,706
-0.1
%
Per Common Share Data:
Basic Earnings
$
5.20
$
6.06
-14.2
%
Diluted Earnings
5.20
6.06
-14.2
%
Dividends Paid
1.76
1.72
2.3
%
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 December 31, 2024, September 30, 2024 and December 31, 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
