Westamerica Bancorporation Reports Second Quarter 2024 Financial Results

SAN RAFAEL, Calif., July 18, 2024 (GLOBE NEWSWIRE) -- Westamerica Bancorporation (NASDAQ:WABC), parent company of Westamerica Bank, generated net income for the second quarter 2024 of $35.5 million and diluted earnings per common share ("EPS") of $1.33. Second quarter 2024 results compare to first quarter 2024 net income of $36.4 million and EPS of $1.37.

"Westamerica's second quarter 2024 results benefited from the Company's low-cost operating principles. The annualized cost of funding our interest-earning loans, bonds and cash was 0.35 percent for the second quarter 2024. The Company recognized no provision for credit losses due to $73 thousand of net loan recoveries in the second quarter 2024 and $1.6 million in nonperforming loans at June 30, 2024, while the allowance for credit losses on loans was $16.0 million at June 30, 2024. Westamerica operated efficiently, spending 35 percent of its revenue on operating costs in the second quarter 2024", said Chairman, President and CEO David Payne. "Second quarter 2024 results generated an annualized 14.4 percent return on average common equity. Shareholders were paid a $0.44 per common share dividend during the second quarter 2024," concluded Payne.

Net interest income on a fully-taxable equivalent (FTE) basis was $64.1 million for the second quarter 2024, compared to $66.1 million for the first quarter 2024. The annualized yield earned on loans, bonds and cash for the second quarter 2024 was 4.50 percent, unchanged from the first quarter 2024. The annualized cost of funding the loan and bond portfolios was 0.35 percent for the second quarter 2024, compared to 0.20 percent for the first quarter 2024.

The Company provided no provision for credit losses in the second quarter 2024 compared to $300 thousand in the first quarter 2024. The Allowance for Credit Losses on Loans was $16.0 million at June 30, 2024 compared to $15.9 million at March 31, 2024. 

Noninterest income for the second quarter 2024 totaled $10.5 million compared to $10.1 million for the first quarter 2024; the increase is attributable to higher merchant processing fees and higher debit card fees.

Noninterest expenses were $26.1 million for the second quarter 2024 and the first quarter 2024.

The income tax rate on a fully-taxable equivalent basis was 26.8 percent for the second quarter 2024 compared to 26.9 percent for the first 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

[email protected]

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 March 31, 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 July 18, 2024
WESTAMERICA BANCORPORATION
FINANCIAL HIGHLIGHTS
June 30, 2024
1. Net Income Summary.
		(in thousands except per-share amounts)
								%
		Q2'2024			Q2'2023			Change		Q1'2024
	Net Interest and Loan Fee
	Income (FTE)	$	64,100		$	70,281		-8.8	%	$	66,094
	Provision for
	Credit Losses		-			-		n/m			300
	Noninterest Income		10,500			10,700		-1.9	%		10,097
	Noninterest Expense		26,130			25,839		1.1	%		26,099
	Income Before Taxes (FTE)		48,470			55,142		-12.1	%		49,792
	Income Tax Provision (FTE)		13,008			14,894		-12.7	%		13,375
	Net Income	$	35,462		$	40,248		-11.9	%	$	36,417
	Average Common Shares
	Outstanding		26,680			26,648		0.1	%		26,674
	Diluted Average Common
	Shares Outstanding		26,681			26,648		0.1	%		26,675
	Operating Ratios:
	Basic Earnings Per Common
	Share	$	1.33		$	1.51		-11.9	%	$	1.37
	Diluted Earnings Per
	Common Share		1.33			1.51		-11.9	%		1.37
	Return On Assets (a)		2.18	%		2.35	%				2.24	%
	Return On Common
	Equity (a)		14.4	%		18.4	%				15.2	%
	Net Interest Margin (FTE) (a)		4.15	%		4.34	%				4.30	%
	Efficiency Ratio (FTE)		35.0	%		31.9	%				34.3	%
	Dividends Paid Per Common
	Share	$	0.44		$	0.42		4.8	%	$	0.44
	Common Dividend Payout
	Ratio		33	%		28	%				32	%
								%
		6/30'24YTD			6/30'23YTD			Change
	Net Interest and Loan Fee
	Income (FTE)	$	130,194		$	139,843		-6.9	%
	Provision (Reversal
	of Provision) for
	Credit Losses (1)		300			(1,550	)	n/m
	Noninterest Income		20,597			21,249		-3.1	%
	Noninterest Expense		52,229			52,049		0.3	%
	Income Before Taxes (FTE)		98,262			110,593		-11.1	%
	Income Tax Provision (FTE)		26,383			29,894		-11.7	%
	Net Income	$	71,879		$	80,699		-10.9	%
	Average Common Shares
	Outstanding		26,677			26,753		-0.3	%
	Diluted Average Common
	Shares Outstanding		26,678			26,756		-0.3	%
	Operating Ratios:
	Basic Earnings Per Common
	Share	$	2.69		$	3.02		-10.9	%
	Diluted Earnings Per
	Common Share		2.69			3.02		-10.9	%
	Return On Assets (a)		2.21	%		2.33	%
	Return On Common
	Equity (a)		14.8	%		18.7	%
	Net Interest Margin (FTE) (a)		4.23	%		4.26	%
	Efficiency Ratio (FTE)		34.6	%		32.3	%
	Dividends Paid Per Common
	Share	$	0.88		$	0.84		4.8	%
	Common Dividend Payout
	Ratio		33	%		28	%
2.  Net Interest and Loan Fee Income (FTE).
		(dollars in thousands)
								%
		Q2'2024			Q2'2023			Change		Q1'2024
	Interest and Loan Fee
	Income (FTE)	$	69,407		$	70,888		-2.1	%	$	69,095
	Interest Expense		5,307			607		774.3	%		3,001
	Net Interest and Loan Fee
	Income (FTE)	$	64,100		$	70,281		-8.8	%	$	66,094
	Average Earning Assets	$	6,145,626		$	6,457,270		-4.8	%	$	6,119,368
	Average Interest-Bearing
	Liabilities		3,001,786			3,144,264		-4.5	%		2,955,565
	Yield on Earning Assets
	(FTE) (a)		4.50	%		4.38	%				4.50	%
	Cost of Funds (a)		0.35	%		0.04	%				0.20	%
	Net Interest Margin (FTE) (a)		4.15	%		4.34	%				4.30	%
	Interest Expense /
	Interest-Bearing
	Liabilities (a)		0.71	%		0.08	%				0.41	%
	Net Interest Spread (FTE) (a)		3.79	%		4.30	%				4.09	%
								%
		6/30'24YTD			6/30'23YTD			Change
	Interest and Loan Fee
	Income (FTE)	$	138,502		$	140,921		-1.7	%
	Interest Expense		8,308			1,078		670.7	%
	Net Interest and Loan Fee
	Income (FTE)	$	130,194		$	139,843		-6.9	%
	Average Earning Assets	$	6,132,497		$	6,560,639		-6.5	%
	Average Interest-Bearing
	Liabilities		2,978,676			3,215,316		-7.4	%
	Yield on Earning Assets
	(FTE) (a)		4.50	%		4.29	%
	Cost of Funds (a)		0.27	%		0.03	%
	Net Interest Margin (FTE) (a)		4.23	%		4.26	%
	Interest Expense /
	Interest-Bearing
	Liabilities (a)		0.56	%		0.07	%
	Net Interest Spread (FTE) (a)		3.94	%		4.22	%
3. Loans & Other Earning Assets.
		(average volume, dollars in thousands)
								%
		Q2'2024			Q2'2023			Change		Q1'2024
	Total Assets	$	6,549,203		$	6,865,591		-4.6	%	$	6,525,921
	Total Earning Assets		6,145,626			6,457,270		-4.8	%		6,119,368
	Total Loans		838,016			926,795		-9.6	%		853,553
	Commercial Loans		133,605			157,975		-15.4	%		133,422
	Commercial Real Estate
	Loans		487,209			491,902		-1.0	%		488,989
	Consumer Loans		217,202			276,918		-21.6	%		231,142
	Total Investment Securities		4,944,191			5,365,377		-7.9	%		5,098,539
	Debt Securities Available for
	Sale		4,079,896			4,460,339		-8.5	%		4,224,474
	Debt Securities Held to
	Maturity		864,295			905,038		-4.5	%		874,065
	Total Interest-Bearing Cash		363,419			165,098		120.1	%		167,276
	Loans / Deposits		16.1	%		16.0	%				15.9	%
								%
		6/30'24YTD			6/30'23YTD			Change
	Total Assets	$	6,537,562		$	6,988,272		-6.4	%
	Total Earning Assets		6,132,497			6,560,639		-6.5	%
	Total Loans		845,785			936,277		-9.7	%
	Commercial Loans		133,514			161,647		-17.4	%
	Commercial Real Estate
	Loans		488,099			492,514		-0.9	%
	Consumer Loans		224,172			282,116		-20.5	%
	Total Investment Securities		5,021,365			5,456,572		-8.0	%
	Debt Securities Available for
	Sale		4,152,185			4,547,733		-8.7	%
	Debt Securities Held to
	Maturity		869,180			908,839		-4.4	%
	Total Interest-Bearing Cash		265,347			167,790		58.1	%
	Loans / Deposits		16.0	%		15.8	%
4. Deposits, Other Interest-Bearing Liabilities & Equity.
		(average volume, dollars in thousands)
								%
		Q2'2024			Q2'2023			Change		Q1'2024
	Total Deposits	$	5,202,620		$	5,797,504		-10.3	%	$	5,379,060
	Noninterest Demand		2,485,023			2,751,319		-9.7	%		2,532,381
	Interest-Bearing Transaction		981,703			1,159,653		-15.3	%		1,058,292
	Savings		1,642,806			1,763,410		-6.8	%		1,691,716
	Time greater than $100K		34,721			53,901		-35.6	%		36,135
	Time less than $100K		58,367			69,221		-15.7	%		60,536
	Total Short-Term Borrowings		284,189			98,079		-14.2	%		108,886
	Bank Term Funding Program
	Borrowings		200,000			-		0.0	%		62,582
	Securities Sold under
	Repurchase Agreements		84,189			98,079		0.0	%		46,304
	Shareholders' Equity		990,927			877,964		12.9	%		965,840
	Demand Deposits /
	Total Deposits		47.8	%		47.5	%				47.1	%
	Transaction & Savings
	Deposits / Total Deposits		98.2	%		97.9	%				98.2	%
								%
		6/30'24YTD			6/30'23YTD			Change
	Total Deposits	$	5,290,840		$	5,928,983		-10.8	%
	Noninterest Demand		2,508,702			2,801,183		-10.4	%
	Interest-Bearing Transaction		1,019,998			1,196,342		-14.7	%
	Savings		1,667,261			1,805,187		-7.6	%
	Time greater than $100K		35,427			55,755		-36.5	%
	Time less than $100K		59,452			70,516		-15.7	%
	Total Short-Term Borrowings		196,538			87,516		124.6	%
	Bank Term Funding Program
	Borrowings		131,291			-		n/m
	Securities Sold under
	Repurchase Agreements		65,247			87,516		-25.4	%
	Shareholders' Equity		978,384			868,272		12.7	%
	Demand Deposits /
	Total Deposits		47.4	%		47.2	%
	Transaction & Savings
	Deposits / Total Deposits		98.2	%		97.9	%
5. Interest Yields Earned & Rates Paid.
		(dollars in thousands)
		Q2'2024
		Average			Income/			Yield (a) /
		Volume			Expense			Rate (a)
	Interest & Loan Fee Income Earned:
	Total Earning Assets (FTE)	$	6,145,626		$	69,407		4.50	%
	Total Loans (FTE)		838,016			11,441		5.49	%
	Commercial Loans (FTE)		133,605			2,418		7.28	%
	Commercial Real Estate
	Loans		487,209			6,014		4.96	%
	Consumer Loans		217,202			3,009		5.57	%
	Total Investments (FTE)		4,944,191			53,005		4.27	%
	Total Debt Securities
	Available for Sale (FTE)		4,079,896			44,236		4.31	%
	Corporate Securities		2,090,829			14,366		2.75	%
	Collateralized Loan
	Obligations		1,347,475			24,620		7.23	%
	Agency Mortgage Backed
	Securities		241,391			1,465		2.43	%
	Securities of U.S.
	Government sponsored
	entities		309,395			2,777		3.59	%
	Obligations of States and
	Political Subdivisions
	(FTE)		72,319			543		3.01	%
	U.S. Treasury Securities		4,260			54		5.08	%
	Other Debt Securities
	Available for Sale (FTE)		14,227			411		11.55	%
	Total Debt Securities Held to
	Maturity (FTE)		864,295			8,769		4.06	%
	Agency Mortgage Backed
	Securities		70,804			401		2.27	%
	Corporate Securities		730,978			7,815		4.28	%
	Obligations of States and
	Political Subdivisions
	(FTE)		62,513			553		3.54	%
	Total Interest-Bearing Cash		363,419			4,961		5.40	%
	Interest Expense Paid:
	Total Earning Assets		6,145,626			5,307		0.35	%
	Total Interest-Bearing
	Liabilities		3,001,786			5,307		0.71	%
	Total Interest-Bearing
	Deposits		2,717,597			2,460		0.36	%
	Interest-Bearing Transaction		981,703			69		0.03	%
	Savings		1,642,806			2,322		0.57	%
	Time less than $100K		58,367			49		0.34	%
	Time greater than $100K		34,721			20		0.23	%
	Total Short-Term Borrowings		284,189			2,847		4.02	%
	Bank Term Funding Program
	Borrowings		200,000			2,692		5.40	%
	Securities Sold under
	Repurchase Agreements		84,189			155		0.74	%
	Net Interest Income and
	Margin (FTE)				$	64,100		4.15	%
		Q2'2023
		Average			Income/			Yield (a) /
		Volume			Expense			Rate (a)
	Interest & Loan Fee Income Earned:
	Total Earning Assets (FTE)	$	6,457,270		$	70,888		4.38	%
	Total Loans (FTE)		926,795			11,937		5.17	%
	Commercial Loans (FTE)		157,975			2,777		7.05	%
	Commercial Real Estate
	Loans		491,902			5,732		4.67	%
	Consumer Loans		276,918			3,428		4.97	%
	Total Investments (FTE)		5,365,377			56,841		4.22	%
	Total Debt Securities
	Available for Sale (FTE)		4,460,339			47,752		4.26	%
	Corporate Securities		2,210,511			15,456		2.80	%
	Collateralized Loan
	Obligations		1,555,328			26,754		6.81	%
	Agency Mortgage Backed
	Securities		291,270			1,765		2.42	%
	Securities of U.S.
	Government sponsored
	entities		306,983			2,776		3.62	%
	Obligations of States and
	Political Subdivisions
	(FTE)		82,074			617		3.00	%
	Other Debt Securities
	Available for Sale (FTE)		14,173			384		10.84	%
	Total Debt Securities Held to
	Maturity (FTE)		905,038			9,089		4.02	%
	Agency Mortgage Backed
	Securities		94,960			510		2.15	%
	Corporate Securities		724,157			7,816		4.32	%
	Obligations of States and
	Political Subdivisions
	(FTE)		85,921			763		3.56	%
	Total Interest-Bearing Cash		165,098			2,110		5.06	%
	Interest Expense Paid:
	Total Earning Assets		6,457,270			607		0.04	%
	Total Interest-Bearing
	Liabilities		3,144,264			607		0.08	%
	Total Interest-Bearing
	Deposits		3,046,185			582		0.08	%
	Interest-Bearing Transaction		1,159,653			104		0.04	%
	Savings		1,763,410			396		0.09	%
	Time less than $100K		69,221			51		0.30	%
	Time greater than $100K		53,901			31		0.23	%
	Total Short-Term Borrowings		98,079			25		0.10	%
	Securities Sold under
	Repurchase Agreements		98,079			25		0.10	%
	Net Interest Income and
	Margin (FTE)				$	70,281		4.34	%
6. Noninterest Income.
		(dollars in thousands except per-share amounts)
								%
		Q2'2024			Q2'2023			Change		Q1'2024
	Service Charges on Deposit
	Accounts	$	3,469		$	3,459		0.3	%	$	3,470
	Merchant Processing
	Services		2,733			2,869		-4.7	%		2,507
	Debit Card Fees		1,706			1,759		-3.0	%		1,543
	Trust Fees		811			810		0.1	%		794
	ATM Processing Fees		540			702		-23.1	%		591
	Other Service Fees		450			458		-1.7	%		438
	Securities Losses		-			(125	)	n/m			-
	Other Noninterest Income		791			768		3.0	%		754
	Total Noninterest Income	$	10,500		$	10,700		-1.9	%	$	10,097
	Operating Ratios:
	Total Revenue (FTE)	$	74,600		$	80,981		-7.9	%	$	76,191
	Noninterest Income /
	Revenue (FTE)		14.1	%		13.2	%				13.3	%
	Service Charges /
	Avg. Deposits (a)		0.27	%		0.24	%				0.26	%
	Total Revenue (FTE) Per
	Avg. Common Share (a)	$	11.25		$	12.19		-7.7	%	$	11.49
								%
		6/30'24YTD			6/30'23YTD			Change
	Service Charges on Deposit
	Accounts	$	6,939		$	6,924		0.2	%
	Merchant Processing
	Services		5,240			5,506		-4.8	%
	Debit Card Fees		3,249			3,401		-4.5	%
	Trust Fees		1,605			1,575		1.9	%
	ATM Processing Fees		1,131			1,356		-16.6	%
	Other Service Fees		888			857		3.6	%
	Securities Losses		-			(125	)	n/m
	Other Noninterest Income		1,545			1,755		-12.0	%
	Total Noninterest Income	$	20,597		$	21,249		-3.1	%
	Operating Ratios:
	Total Revenue (FTE)	$	150,791		$	161,092		-6.4	%
	Noninterest Income /
	Revenue (FTE)		13.7	%		13.2	%
	Service Charges /
	Avg. Deposits (a)		0.26	%		0.24	%
	Total Revenue (FTE) Per
	Avg. Common Share (a)	$	11.37		$	12.14		-6.4	%
7. Noninterest Expense.
		(dollars in thousands)
								%
		Q2'2024			Q2'2023			Change		Q1'2024
	Salaries and Related Benefits	$	12,483		$	11,828		5.5	%	$	12,586
	Occupancy and Equipment		5,158			5,012		2.9	%		5,040
	Outsourced Data Processing		2,511			2,488		0.9	%		2,536
	Limited Partnership
	Operating Losses		1,440			1,440		0.0	%		1,440
	Professional Fees		362			485		-25.4	%		402
	Courier Service		686			611		12.3	%		649
	Other Noninterest Expense		3,490			3,975		-12.2	%		3,446
	Total Noninterest Expense	$	26,130		$	25,839		1.1	%	$	26,099
	Operating Ratios:
	Noninterest Expense /
	Avg. Earning Assets (a)		1.71	%		1.60	%				1.72	%
	Noninterest Expense /
	Revenues (FTE)		35.0	%		31.9	%				34.3	%
								%
		6/30'24YTD			6/30'23YTD			Change
	Salaries and Related Benefits	$	25,069		$	23,895		4.9	%
	Occupancy and Equipment		10,198			10,497		-2.8	%
	Outsourced Data Processing		5,047			4,932		2.3	%
	Limited Partnership
	Operating Losses		2,880			2,874		0.2	%
	Professional Fees		764			961		-20.5	%
	Courier Service		1,335			1,226		8.9	%
	Other Noninterest Expense		6,936			7,664		-9.5	%
	Total Noninterest Expense	$	52,229		$	52,049		0.3	%
	Operating Ratios:
	Noninterest Expense /
	Avg. Earning Assets (a)		1.71	%		1.60	%
	Noninterest Expense /
	Revenues (FTE)		34.6	%		32.3	%
8. Allowance for Credit Losses.
		(dollars in thousands)
								%
		Q2'2024			Q2'2023			Change		Q1'2024
	Average Total Loans	$	838,016		$	926,795		-9.6	%	$	853,553
	Beginning of Period
	Allowance for Credit
	Losses on Loans (ACLL)	$	15,879		$	19,509		-18.6	%	$	16,867
	Provision for
	Credit Losses		-			-		n/m			300
	Net ACLL Recoveries
	(Losses)		73			(1,029	)	-107.1	%		(1,288	)
	End of Period ACLL	$	15,952		$	18,480		-13.7	%	$	15,879
	Gross ACLL Recoveries /
	Gross ACLL Losses		105	%		38	%				36	%
	Net ACLL (Recoveries)
	Losses /
	Avg. Total Loans (a)		-0.04	%		0.45	%				0.61	%
								%
		6/30'24YTD			6/30'23YTD			Change
	Average Total Loans	$	845,785		$	936,277		-9.7	%
	Beginning of Period ACLL	$	16,867		$	20,284		-16.8	%
	Provision (Reversal
	of Provision) for
	Credit Losses (1)		300			(1,550	)	n/m
	Net ACLL Losses		(1,215	)		(254	)	378.3	%
	End of Period ACLL	$	15,952		$	18,480		-13.7	%
	Gross ACLL Recoveries /
	Gross ACLL Losses		66	%		93	%
	Net ACLL Losses /
	Avg. Total Loans (a)		0.29	%		0.05	%
		(dollars in thousands)
								%
		6/30/24			6/30/23			Change		3/31/24
	Allowance for Credit Losses
	on Loans	$	15,952		$	18,480		-13.7	%	$	15,879
	Allowance for Credit Losses
	on Held to Maturity
	Securities		1			1		0.0	%		1
	Total Allowance for Credit
	Losses	$	15,953		$	18,481		-13.7	%	$	15,880
	Allowance for Unfunded
	Credit Commitments	$	201		$	201		0.0	%	$	201
9. Credit Quality.
		(dollars in thousands)
								%
		6/30/24			6/30/23			Change		3/31/24
	Nonperforming Loans:
	Nonperforming Nonaccrual
	Loans	$	971		$	192		405.7	%	$	957
	Performing Nonaccrual
	Loans		-			5		n/m			1
	Total Nonaccrual Loans		971			197		392.9	%		958
	Accruing Loans 90+ Days
	Past Due		580			656		-11.6	%		525
	Total Nonperforming Loans	$	1,551		$	853		81.8	%	$	1,483
	Total Loans Outstanding	$	831,842		$	919,583		-9.5	%	$	844,677
	Total Assets		6,312,145			6,582,740		-4.1	%		6,464,685
	Loans:
	Allowance for Credit Losses
	on Loans	$	15,952		$	18,480		-13.7	%	$	15,879
	Allowance for Credit Losses
	on Loans / Loans		1.92	%		2.01	%				1.88	%
	Nonperforming Loans /
	Total Loans		0.19	%		0.09	%				0.18	%
10. Liquidity.
	At June 30, 2024, the Company had $486,124 thousand in cash balances. During the twelve months ending June 30, 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 June 30, 2024, the Company's debt securities which qualify as collateral for borrowing totaled $3,693,459 thousand. In the ordinary course of business, the Company pledges debt securities as collateral for certain depository customers; at June 30, 2024, the Company had pledged $759,338 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 June 30, 2024, the Company had pledged $1,067,510 thousand in debt securities at the Federal Reserve Bank. During the six months ended June 30, 2024, the Company's average borrowings from the Federal Reserve Bank and other correspondent banks were $200,000 thousand and $-0- thousand, respectively, and at June 30, 2024, the Company's borrowings from the Federal Reserve Bank and other correspondent banks were $200,000 thousand and $-0- thousand, respectively. At June 30, 2024, the Company had access to borrowing from the Federal Reserve up to $867,510 thousand based on collateral pledged at June 30, 2024. At June 30, 2024, the Company's estimated unpledged collateral qualifying debt securities totaled $1,462,966 thousand. Debt securities eligible as collateral are shown at market value unless otherwise noted.
										(in thousands)
										6/30/24
	Debt Securities Eligible as
	Collateral:
	Corporate Securities									$	2,549,866
	Collateralized Loan
	Obligations rated AAA										405,308
	Obligations of States and
	Political Subdivisions										130,006
	Agency Mortgage Backed
	Securities										286,771
	Securities of U.S. Government
	Sponsored Entities										116,688
	Securities of U.S. Government
	Sponsored Entities (Par Value)										200,000
	U.S. Treasury Securities										4,820
	Total Debt Securities Eligible
	as Collateral									$	3,693,459
	Debt Securities Pledged
	as Collateral:
	Deposits by Public Entities									($759,338		)
	Securities Sold under
	Repurchase Agreements										(394,283	)
	Debt Securities Pledged
	at the Federal Reserve Bank										($1,067,510	)
	Other										(9,362	)
	Total Debt Securities Pledged
	as Collateral									($2,230,493		)
	Estimated Debt Securities
	Available to Pledge									$	1,462,966
11. Capital.
		(in thousands, except per-share amounts)
								%
		6/30/24			6/30/23			Change		3/31/24
	Shareholders' Equity	$	815,600		$	651,862		25.1	%	$	791,691
	Total Assets		6,312,145			6,582,740		-4.1	%		6,464,685
	Shareholders' Equity/
	Total Assets		12.92	%		9.90	%				12.25	%
	Shareholders' Equity/
	Total Loans		98.05	%		70.89	%				93.73	%
	Tangible Common Equity
	Ratio		11.21	%		8.20	%				10.56	%
	Common Shares Outstanding		26,683			26,648		0.1	%		26,678
	Common Equity Per Share	$	30.57		$	24.46		25.0	%	$	29.68
	Market Value Per Common
	Share		48.53			38.30		26.7	%		48.88
		(shares in thousands)
								%
		Q2'2024			Q2'2023			Change		Q1'2024
	Share Repurchase Programs:
	Total Shares Repurchased /
	Canceled		-			-		n/m			4
	Average Repurchase Price	$	-		$	-		n/m		$	45.58
	Net Shares Issued		(5	)		-		n/m			(7	)
								%
		6/30'24YTD			6/30'23YTD			Change
	Total Shares Repurchased /
	Canceled		4			274		n/m
	Average Repurchase Price	$	45.58		$	50.11		n/m
	Net Shares (Issued)
	Repurchased		(12	)		265		n/m
12. Period-End Balance Sheets.
		(unaudited, dollars in thousands)
								%
		6/30/24			6/30/23			Change		3/31/24
	Assets:
	Cash and Due from Banks	$	486,124		$	266,187		82.6	%	$	434,250
	Debt Securities Available for
	Sale:
	Corporate Securities		1,855,618			1,901,504		-2.4	%		1,879,980
	Collateralized Loan
	Obligations		1,255,110			1,514,962		-17.2	%		1,420,584
	Agency Mortgage Backed
	Securities		222,806			259,190		-14.0	%		225,564
	Securities of U.S.
	Government sponsored
	entities		291,206			291,402		-0.1	%		292,583
	Obligations of States and
	Political Subdivisions		69,758			79,400		-12.1	%		70,466
	U.S. Treasury Securities		4,820			-		n/m			-
	Total Debt Securities
	Available for Sale		3,699,318			4,046,458		-8.6	%		3,889,177
	Debt Securities Held to
	Maturity:
	Agency Mortgage Backed
	Securities		67,777			91,141		-25.6	%		73,023
	Corporate Securities		732,049			725,252		0.9	%		730,350
	Obligations of States and
	Political Subdivisions (2)		61,042			83,963		-27.3	%		65,352
	Total Debt Securities
	Held to Maturity (2)		860,868			900,356		-4.4	%		868,725
	Loans		831,842			919,583		-9.5	%		844,677
	Allowance For Credit Losses
	on Loans		(15,952	)		(18,480	)	-13.7	%		(15,879	)
	Total Loans, net		815,890			901,103		-9.5	%		828,798
	Premises and Equipment, net		26,275			27,908		-5.9	%		26,458
	Identifiable Intangibles, net		234			463		-49.5	%		291
	Goodwill		121,673			121,673		0.0	%		121,673
	Other Assets		301,763			318,592		-5.3	%		295,313
	Total Assets	$	6,312,145		$	6,582,740		-4.1	%	$	6,464,685
	Liabilities and Shareholders'
	Equity:
	Deposits:
	Noninterest-Bearing	$	2,459,467		$	2,721,046		-9.6	%	$	2,514,161
	Interest-Bearing Transaction		936,186			1,133,006		-17.4	%		1,066,038
	Savings		1,646,781			1,735,083		-5.1	%		1,681,921
	Time		89,006			116,792		-23.8	%		92,805
	Total Deposits		5,131,440			5,705,927		-10.1	%		5,354,925
	Bank Term Funding
	Program Borrowings		200,000			-		-27.4	%		200,000
	Securities Sold under
	Repurchase Agreements		100,167			138,005		n/m			50,334
	Total Short-Term
	Borrowed Funds		300,167			138,005		117.5	%		250,334
	Other Liabilities		64,938			86,946		-25.3	%		67,735
	Total Liabilities		5,496,545			5,930,878		-7.3	%		5,672,994
	Shareholders' Equity:
	Common Equity:
	Paid-In Capital		474,618			471,510		0.7	%		473,989
	Accumulated Other
	Comprehensive Loss		(197,300	)		(252,043	)	-21.7	%		(196,857	)
	Retained Earnings		538,282			432,395		24.5	%		514,559
	Total Shareholders' Equity		815,600			651,862		25.1	%		791,691
	Total Liabilities and
	Shareholders' Equity	$	6,312,145		$	6,582,740		-4.1	%	$	6,464,685
13. Income Statements.
		(unaudited, in thousands except per-share amounts)
								%
		Q2'2024			Q2'2023			Change		Q1'2024
	Interest and Loan Fee Income:
	Loans	$	11,354		$	11,845		-4.1	%	$	11,324
	Equity Securities		175			152		15.1	%		174
	Debt Securities Available
	for Sale		43,927			47,452		-7.4	%		46,243
	Debt Securities Held to
	Maturity		8,655			8,930		-3.1	%		8,722
	Interest-Bearing Cash		4,961			2,110		135.1	%		2,283
	Total Interest and Loan
	Fee Income		69,072			70,489		-2.0	%		68,746
	Interest Expense:
	Transaction Deposits		69			104		-33.7	%		119
	Savings Deposits		2,322			396		486.4	%		1,917
	Time Deposits		69			82		-15.9	%		70
	Bank Term Funding Program
	Borrowings		2,692			-		n/m			843
	Securities Sold under
	Repurchase Agreements		155			25		509.0	%		52
	Total Interest Expense		5,307			607		774.3	%		3,001
	Net Interest and Loan
	Fee Income		63,765			69,882		-8.8	%		65,745
	Provision for Credit Losses		-			-		n/m			300
	Noninterest Income:
	Service Charges on Deposit
	Accounts		3,469			3,459		0.3	%		3,470
	Merchant Processing
	Services		2,733			2,869		-4.7	%		2,507
	Debit Card Fees		1,706			1,759		-3.0	%		1,543
	Trust Fees		811			810		0.1	%		794
	ATM Processing Fees		540			702		-23.1	%		591
	Other Service Fees		450			458		-1.7	%		438
	Securities Losses		-			(125	)	n/m			-
	Other Noninterest Income		791			768		3.0	%		754
	Total Noninterest Income		10,500			10,700		-1.9	%		10,097
	Noninterest Expense:
	Salaries and Related Benefits		12,483			11,828		5.5	%		12,586
	Occupancy and Equipment		5,158			5,012		2.9	%		5,040
	Outsourced Data Processing		2,511			2,488		0.9	%		2,536
	Limited Partnership
	Operating Losses		1,440			1,440		0.0	%		1,440
	Professional Fees		362			485		-25.4	%		402
	Courier Service		686			611		12.3	%		649
	Other Noninterest Expense		3,490			3,975		-12.2	%		3,446
	Total Noninterest Expense		26,130			25,839		1.1	%		26,099
	Income Before Income Taxes		48,135			54,743		-12.1	%		49,443
	Income Tax Provision		12,673			14,495		-12.6	%		13,026
	Net Income	$	35,462		$	40,248		-11.9	%	$	36,417
	Average Common Shares
	Outstanding		26,680			26,648		0.1	%		26,674
	Diluted Average Common
	Shares Outstanding		26,681			26,648		0.1	%		26,675
	Per Common Share Data:
	Basic Earnings	$	1.33		$	1.51		-11.9	%	$	1.37
	Diluted Earnings		1.33			1.51		-11.9	%		1.37
	Dividends Paid		0.44			0.42		4.8	%		0.44
								%
		6/30'24YTD			6/30'23YTD			Change
	Interest and Loan Fee Income:
	Loans	$	22,678		$	23,585		-3.8	%
	Equity Securities		349			304		14.8	%
	Debt Securities Available
	for sale		90,170			94,262		-4.3	%
	Debt Securities Held to
	Maturity		17,377			17,910		-3.0	%
	Interest-Bearing Cash		7,244			4,052		78.8	%
	Total Interest and Loan
	Fee Income		137,818			140,113		-1.6	%
	Interest Expense:
	Transaction Deposits		188			198		-5.1	%
	Savings Deposits		4,239			676		527.1	%
	Time Deposits		139			166		-16.3	%
	Bank Term Funding Program
	Borrowings		3,535			-		n/m
	Securities Sold under
	Repurchase Agreements		207			38		444.7	%
	Total Interest Expense		8,308			1,078		670.7	%
	Net Interest and Loan
	Fee Income		129,510			139,035		-6.9	%
	Provision (Reversal
	of Provision) for
	Credit Losses (1)		300			(1,550	)	n/m
	Noninterest Income:
	Service Charges on Deposit		6,939			6,924		0.2	%
	Accounts
	Merchant Processing
	Services		5,240			5,506		-4.8	%
	Debit Card Fees		3,249			3,401		-4.5	%
	Trust Fees		1,605			1,575		1.9	%
	ATM Processing Fees		1,131			1,356		-16.6	%
	Other Service Fees		888			857		3.6	%
	Securities Losses		-			(125	)	n/m
	Other Noninterest Income		1,545			1,755		-12.0	%
	Total Noninterest Income		20,597			21,249		-3.1	%
	Noninterest Expense:
	Salaries and Related Benefits		25,069			23,895		4.9	%
	Occupancy and Equipment		10,198			10,497		-2.8	%
	Outsourced Data Processing		5,047			4,932		2.3	%
	Limited Partnership
	Operating Losses		2,880			2,874		0.2	%
	Professional Fees		764			961		-20.5	%
	Courier Service		1,335			1,226		8.9	%
	Other Noninterest Expense		6,936			7,664		-9.5	%
	Total Noninterest Expense		52,229			52,049		0.3	%
	Income Before Income Taxes		97,578			109,785		-11.1	%
	Income Tax Provision		25,699			29,086		-11.6	%
	Net Income	$	71,879		$	80,699		-10.9	%
	Average Common Shares
	Outstanding		26,677			26,753		-0.3	%
	Diluted Average Common
	Shares Outstanding		26,678			26,756		-0.3	%
	Per Common Share Data:
	Basic Earnings	$	2.69		$	3.02		-10.9	%
	Diluted Earnings		2.69			3.02		-10.9	%
	Dividends Paid		0.88			0.84		4.8	%
	Footnotes and Abbreviations:
	(1) 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.
	(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 June 30, 2024, March 31, 2024 and June 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