Westamerica Bancorporation Reports First Quarter 2024 Financial Results - Form 8-K

Westamerica Bancorporation Reports First Quarter 2024 Financial Results

SAN RAFAEL, Calif., April 18, 2024 (GLOBE NEWSWIRE) -- Westamerica Bancorporation (Nasdaq: WABC), parent company of Westamerica Bank, generated net income for the first quarter 2024 of $36.4 million and diluted earnings per common share ("EPS") of $1.37. First quarter 2024 results compare to fourth quarter 2023 net income of $39.5 million and EPS of $1.48.

"Westamerica's first 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 0.20 percent for the first quarter 2024. First quarter 2024 operating expenses remained well controlled at 34 percent of total revenues on a fully-taxable equivalent basis. Our consistent application of conservative loan underwriting practices resulted in relatively stable nonperforming assets totaling $1.5 million," said Chairman, President and CEO David Payne. "First quarter 2024 results generated an annualized 15.2 percent return on average common equity. Shareholders were paid a $0.44 per common share dividend during the first quarter 2024," concluded Payne.

Net interest income on a fully-taxable equivalent (FTE) basis was $66.1 million for the first quarter 2024, compared to $69.7 million for the fourth quarter 2023. The annualized yield earned on loans, bonds and cash for the first quarter 2024 was 4.50 percent compared to 4.52 percent for the fourth quarter 2023. The annualized cost of funding the loan and bond portfolios was 0.20 percent for the first quarter 2024 compared to 0.11 percent for the fourth quarter 2023.

The Company provided $300 thousand for the allowance for credit losses on loans in the first quarter 2024. The Allowance for Credit Losses on Loans was $15.9 million at March 31, 2024.

Noninterest income for the first quarter 2024 totaled $10.1 million compared to $11.0 million for the fourth quarter 2023. Debit card fees declined $524 thousand from the fourth quarter 2023 to the first quarter 2024 due to recognition of an annual volume-based incentive in the fourth quarter 2023. Merchant processing services fees declined $356 thousand from the fourth quarter 2023 to the first quarter 2024 due to reduced processing volumes.

Noninterest expenses for the first quarter 2024 were $26.1 million compared to $25.5 million for the fourth quarter 2023. Salaries and related benefits were $430 thousand higher in the first quarter 2024 compared to the fourth quarter 2023 due to seasonally higher payroll taxes, merit increases and higher welfare benefit costs.

The income tax provision (FTE) for the first quarter 2024 was $13.4 million compared to $15.7 million for the fourth quarter 2023. The fourth quarter 2023 includes a $492 thousand increase to reconcile the 2022 income tax provision to the filed 2022 tax returns.

Westamerica Bancorporation's wholly owned subsidiary Westamerica Bank, operates commercial banking and trust offices throughout Northern and Central California.

Westamerica Bancorporation Web Address: www.westamerica.com

For additional information contact:
Westamerica Bancorporation
1108 Fifth Avenue, San Rafael, CA 94901
Robert A. Thorson - SVP & Chief Financial Officer
707-863-6840
[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 September 30, 2023 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 April 18, 2024
WESTAMERICA BANCORPORATION
FINANCIAL HIGHLIGHTS
March 31, 2024
1. Net Income Summary.
		(in thousands except per-share amounts)
				%
		Q1'2024	Q1'2023	Change	Q4'2023
	Net Interest and Fee Income (FTE)	$66,094		$69,562		-5.0	%	$69,738
	Provision (Reversal
	of Provision) for
	Credit Losses (1)		300			(1,550	)	n/m			-
	Noninterest Income		10,097			10,549		-4.3	%		10,992
	Noninterest Expense		26,099			26,210		-0.4	%		25,517
	Income Before Taxes (FTE)		49,792			55,451		-10.2	%		55,213
	Income Tax Provision (FTE)		13,375			15,000		-10.8	%		15,745
	Net Income	$36,417		$40,451		-10.0	%	$39,468
	Average Common Shares Outstanding		26,674			26,859		-0.7	%		26,662
	Diluted Average Common Shares Outstanding		26,675			26,866		-0.7	%		26,664
	Operating Ratios:
	Basic Earnings Per Common Share	$1.37		$1.51		-9.3	%	$1.48
	Diluted Earnings Per Common Share		1.37			1.51		-9.3	%		1.48
	Return On Assets (a)		2.24	%		2.31	%			2.35	%
	Return On Common Equity (a)		15.2	%		19.1	%			16.7	%
	Net Interest Margin (FTE) (a)		4.30	%		4.18	%			4.41	%
	Efficiency Ratio (FTE)		34.3	%		32.7	%			31.6	%
	Dividends Paid Per Common Share	$0.44		$0.42		4.8	%	$0.44
	Common Dividend Payout Ratio		32	%		28	%			30	%
2. Net Interest Income.
		(dollars in thousands)
				%
		Q1'2024	Q1'2023	Change	Q4'2023
	Interest and Fee Income (FTE)	$69,095		$70,033		-1.3	%	$71,417
	Interest Expense		3,001			471		537.2	%		1,679
	Net Interest and Fee Income (FTE)	$66,094		$69,562		-5.0	%	$69,738
	Average Earning Assets	$6,119,368		$6,665,156		-8.2	%	$6,251,143
	Average Interest- Bearing Liabilities		2,955,565			3,287,158		-10.1	%		2,966,038
	Yield on Earning Assets (FTE) (a)		4.50	%		4.21	%			4.52	%
	Cost of Funds (a)		0.20	%		0.03	%			0.11	%
	Net Interest Margin (FTE) (a)		4.30	%		4.18	%			4.41	%
	Interest Expense/
	Interest-Bearing Liabilities (a)		0.41	%		0.06	%			0.22	%
	Net Interest Spread (FTE) (a)		4.09	%		4.15	%			4.30	%
3. Loans & Other Earning Assets.
		(average volume, dollars in thousands)
				%
		Q1'2024	Q1'2023	Change	Q4'2023
	Total Assets	$6,525,921		$7,112,317		-8.2	%	$6,665,040
	Total Earning Assets		6,119,368			6,665,156		-8.2	%		6,251,143
	Total Loans		853,553			945,864		-9.8	%		873,635
	Commercial Loans		133,422			165,360		-19.3	%		139,535
	Commercial Real Estate Loans		488,989			493,132		-0.8	%		490,645
	Consumer Loans		231,142			287,372		-19.6	%		243,455
	Total Investment Securities		5,098,539			5,548,780		-8.1	%		5,182,557
	Debt Securities Available for Sale		4,224,474			4,636,098		-8.9	%		4,298,396
	Debt Securities Held to Maturity		874,065			912,682		-4.2	%		884,161
	Total Interest-Bearing Cash		167,276			170,512		-1.9	%		194,951
	Loans/Deposits		15.9	%		15.6	%			15.7	%
4. Deposits, Other Interest-Bearing Liabilities & Equity.
		(average volume, dollars in thousands)
				%
		Q1'2024	Q1'2023	Change	Q4'2023
	Total Deposits	$5,379,060		$6,061,923		-11.3	%	$5,573,281
	Noninterest Demand		2,532,381			2,851,600		-11.2	%		2,672,170
	Interest-Bearing Transaction		1,058,292			1,233,439		-14.2	%		1,085,864
	Savings		1,691,716			1,847,428		-8.4	%		1,713,803
	Time greater than $100K		36,135			57,630		-37.3	%		37,970
	Time less than $100K		60,536			71,826		-15.7	%		63,474
	Total Short-Term Borrowings		108,886			76,835		41.7	%		64,927
	Bank Term Funding Program
	Borrowings		62,582			-		n/m			-
	Securities Sold under Repurchase
	Agreements		46,304			76,835		-39.7	%		64,927
	Shareholders' Equity		965,840			858,473		12.5	%		938,738
	Demand Deposits/ Total Deposits		47.1	%		47.0	%			47.9	%
	Transaction & Savings Deposits / Total Deposits		98.2	%		97.9	%			98.2	%
5. Interest Yields Earned & Rates Paid.
		(dollars in thousands)
		Q1'2024
		Average	Income/	Yield (a) /
		Volume	Expense	Rate (a)
	Interest & Fee Income Earned:
	Total Earning Assets (FTE)	$6,119,368		$69,095		4.50	%
	Total Loans (FTE)		853,553			11,413		5.38	%
	Commercial Loans (FTE)		133,422			2,385		7.19	%
	Commercial Real Estate Loans		488,989			5,911		4.86	%
	Consumer Loans		231,142			3,117		5.42	%
	Total Investments (FTE)		5,098,539			55,399		4.32	%
	Total Debt Securities Available for Sale (FTE)		4,224,474			46,552		4.38	%
	Corporate Securities		2,114,861			14,555		2.75	%
	Collateralized Loan Obligations		1,461,182			26,700		7.23	%
	Agency Mortgage Backed Securities		252,828			1,552		2.45	%
	Securities of U.S. Government sponsored
	entities		308,807			2,777		3.60	%
	Obligations of States and Political
	Subdivisions (FTE)		72,569			544		3.00	%
	Other Debt Securities Available for Sale (FTE)		14,227			424		11.92	%
	Total Debt Securities Held to Maturity (FTE)		874,065			8,847		4.05	%
	Agency Mortgage Backed Securities		76,062			427		2.25	%
	Corporate Securities		729,273			7,816		4.29	%
	Obligations of States and Political
	Subdivisions (FTE)		68,730			604		3.52	%
	Total Interest-Bearing Cash		167,276			2,283		5.40	%
	Interest Expense Paid:
	Total Earning Assets		6,119,368			3,001		0.20	%
	Total Interest-Bearing Liabilities		2,955,565			3,001		0.41	%
	Total Interest-Bearing Deposits		2,846,679			2,106		0.30	%
	Interest-Bearing Transaction		1,058,292			119		0.05	%
	Savings		1,691,716			1,917		0.46	%
	Time less than $100K		60,536			49		0.33	%
	Time greater than $100K		36,135			21		0.23	%
	Total Short-Term Borrowings		108,886			895		3.30	%
	Bank Term Funding Program
	Borrowings		62,582			843		5.40	%
	Securities Sold under Repurchase
	Agreements		46,304			52		0.45	%
	Net Interest Income and
	Margin (FTE)		$66,094		4.30	%
		Q1'2023
		Average	Income/	Yield (a) /
		Volume	Expense	Rate (a)
	Interest & Fee Income Earned:
	Total Earning Assets (FTE)	$6,665,156		$70,033		4.21	%
	Total Loans (FTE)		945,864			11,834		5.07	%
	Commercial Loans (FTE)		165,360			2,760		6.77	%
	Commercial Real Estate Loans		493,132			5,627		4.63	%
	Consumer Loans		287,372			3,447		4.86	%
	Total Investments (FTE)		5,548,780			56,257		4.06	%
	Total Debt Securities Available for Sale (FTE)		4,636,098			47,114		4.06	%
	Corporate Securities		2,350,403			16,446		2.80	%
	Collateralized Loan Obligations		1,577,260			25,006		6.34	%
	Agency Mortgage Backed Securities		304,863			1,865		2.45	%
	Securities of U.S. Government sponsored
	entities		306,441			2,777		3.62	%
	Obligations of States and Political
	Subdivisions (FTE)		83,914			637		3.04	%
	Other Debt Securities Available for Sale (FTE)		13,217			383		11.59	%
	Total Debt Securities Held to Maturity (FTE)		912,682			9,143		4.01	%
	Agency Mortgage Backed Securities		101,911			547		2.15	%
	Corporate Securities		722,452			7,815		4.33	%
	Obligations of States and Political
	Subdivisions (FTE)		88,319			781		3.54	%
	Total Interest-Bearing Cash		170,512			1,942		4.56	%
	Interest Expense Paid:
	Total Earning Assets		6,665,156			471		0.03	%
	Total Interest-Bearing Liabilities		3,287,158			471		0.06	%
	Total Interest-Bearing Deposits		3,210,323			458		0.06	%
	Interest-Bearing Transaction		1,233,439			94		0.03	%
	Savings		1,847,428			280		0.06	%
	Time less than $100K		71,826			50		0.28	%
	Time greater than $100K		57,630			34		0.24	%
	Total Short-Term Borrowings		76,835			13		0.07	%
	Securities Sold under Repurchase
	Agreements		76,835			13		0.07	%
	Net Interest Income and
	Margin (FTE)		$69,562		4.18	%
6. Noninterest Income.
		(dollars in thousands except per-share amounts)
				%
		Q1'2024	Q1'2023	Change	Q4'2023
	Service Charges on Deposit Accounts	$3,470		$3,465		0.2	%	$3,540
	Merchant Processing Services		2,507			2,637		-4.9	%		2,863
	Debit Card Fees		1,543			1,642		-6.1	%		2,067
	Trust Fees		794			765		3.8	%		764
	ATM Processing Fees		591			654		-9.6	%		622
	Other Service Fees		438			399		9.7	%		445
	Other Noninterest Income		754			987		-23.6	%		691
	Total Noninterest Income	$10,097		$10,549		-4.3	%	$10,992
	Operating Ratios:
	Total Revenue (FTE)	$76,191		$80,111		-4.9	%	$80,730
	Noninterest Income/Revenue (FTE)		13.3	%		13.2	%			13.6	%
	Service Charges/Avg. Deposits (a)		0.26	%		0.23	%			0.25	%
	Total Revenue (FTE) Per Avg.
	Common Share (a)	$11.49		$12.10		-5.0	%	$12.01
7. Noninterest Expense.
		(dollars in thousands)
				%
		Q1'2024	Q1'2023	Change	Q4'2023
	Salaries & Benefits	$12,586		$12,067		4.3	%	$12,156
	Occupancy and Equipment		5,040			5,485		-8.1	%		4,958
	Outsourced Data Processing		2,536			2,444		3.8	%		2,441
	Limited Partnership Operating Losses		1,440			1,434		0.4	%		1,440
	Professional Fees		402			476		-15.5	%		389
	Courier Service		649			615		5.5	%		681
	Other Noninterest Expense		3,446			3,689		-6.6	%		3,452
	Total Noninterest Expense	$26,099		$26,210		-0.4	%	$25,517
	Operating Ratios:
	Noninterest Expense/ Avg. Earning Assets (a)		1.72	%		1.59	%			1.62	%
	Noninterest Expense/Revenues (FTE)		34.3	%		32.7	%			31.6	%
8. Allowance for Credit Losses.
		(dollars in thousands)
				%
		Q1'2024	Q1'2023	Change	Q4'2023
	Average Total Loans	$853,553		$945,864		-9.8	%	$873,635
	Beginning of Period Allowance for
	Credit Losses on Loans (ACLL)	$16,867		$20,284		-16.8	%	$17,744
	Provision (Reversal
	of Provision) for
	Credit Losses (1)		300			(1,550	)	n/m			-
	Net ACLL (Losses) Recoveries		(1,288	)		775		-266.2	%		(877	)
	End of Period ACLL	$15,879		$19,509		-18.6	%	$16,867
	Gross ACLL Recoveries / Gross ACLL Losses		36	%		138	%			60	%
	Net ACLL Losses (Recoveries) /
	Avg. Total Loans (a)		0.61	%		-0.33	%			0.40	%
		(dollars in thousands)
				%
		3/31/24	3/31/23	Change	12/31/23
	Allowance for Credit Losses on Loans	$15,879		$19,509		-18.6	%	$16,867
	Allowance for Credit Losses on
	Held to Maturity Securities		1			1		0.0	%		1
	Total Allowance for Credit Losses	$15,880		$19,510		-18.6	%	$16,868
	Allowance for Unfunded
	Credit Commitments	$201		$201		0.0	%	$201
9. Credit Quality.
		(dollars in thousands)
				%
		3/31/24	3/31/23	Change	12/31/23
	Nonperforming Loans:
	Nonperforming Nonaccrual Loans	$957		$207		362.3	%	$401
	Performing Nonaccrual Loans		1			7		-85.7	%		2
	Total Nonaccrual Loans		958			214		347.7	%		403
	Accruing Loans 90+ Days Past Due		525			571		-8.1	%		388
	Total Nonperforming Loans	$1,483		$785		88.9	%	$791
	Total Loans Outstanding	$844,677		$938,628		-10.0	%	$866,602
	Total Assets		6,464,685			6,700,471		-3.5	%		6,364,592
	Loans:
	Allowance for Credit Losses on Loans	$15,879		$19,509		-18.6	%	$16,867
	Allowance for Credit Losses on Loans /
	Loans		1.88	%		2.08	%			1.95	%
	Nonperforming Loans/Total Loans		0.18	%		0.08	%			0.09	%
10. Liquidity.
	At March 31, 2024, the Company had $434,250 thousand in cash balances. During the twelve months ending March 31, 2025, the Company expects to receive $303,000 thousand in principal payments from its debt securities. If additional operational liquidity is required, the Company can pledge debt securities as collateral for borrowing purposes; at March 31, 2024, the Company's debt securities which qualify as collateral for borrowing totaled $3,820,309 thousand. In the ordinary course of business, the Company pledges debt securities as collateral for certain depository customers; at March 31, 2024, the Company had pledged $697,486 thousand in debt securities for depository customers. In the ordinary course of business, the Company pledges debt securities as collateral for borrowing from the Federal Reserve Bank; at March 31, 2024, the Company had pledged $863,987 thousand in debt securities at the Federal Reserve Bank. During the Three months ended March 31, 2024, the Company's average borrowings from the Federal Reserve Bank and other correspondent banks were $62,582 thousand and $-0- thousand, respectively, and at March 31, 2024, the Company's borrowings from the Federal Reserve Bank and other correspondent banks were $200,000 thousand and $-0- thousand, respectively. At March 31, 2024, the Company's estimated unpledged collateral qualifying debt securities totaled $1,995,076 thousand. Debt securities eligible as collateral are shown at market value unless otherwise noted.
					(in thousands)
					3/31/24
	Debt Securities Eligible as Collateral:
	Corporate Securities				$2,577,324
	Collateralized Loan Obligations rated AAA					496,419
	Obligations of States and Political Subdivisions				135,051
	Agency Mortgage Backed Securities					294,480
	Securities of U.S. Government Sponsored Entities				117,035
	Securities of U.S. Government Sponsored Entities (Par Value)			200,000
	Total Debt Securities Eligible as Collateral				$3,820,309
	Debt Securities Pledged as Collateral:
	Deposits by Public Entities				($697,846	)
	Securities Sold under Repurchase Agreements				(257,936	)
	Other					(5,464	)
	Total Debt Securities Pledged as Collateral				($961,246	)
	Debt Securities Pledged at the Federal Reserve Bank			($863,987	)
	Estimated Debt Securities Available to Pledge				$1,995,076
11. Capital.
		(in thousands, except per-share amounts)
				%
		3/31/24	3/31/23	Change	12/31/23
	Shareholders' Equity	$791,691		$642,925		23.1	%	$772,894
	Total Assets		6,464,685			6,700,471		-3.5	%		6,364,592
	Shareholders' Equity/
	Total Assets		12.25	%		9.60	%			12.14	%
	Shareholders' Equity/
	Total Loans		93.73	%		68.50	%			89.19	%
	Tangible Common Equity Ratio		10.56	%		7.92	%			10.43	%
	Common Shares Outstanding		26,678			26,648		0.1	%		26,671
	Common Equity Per Share	$29.68		$24.13		23.0	%	$28.98
	Market Value Per Common Share		48.88			44.30		10.3	%		56.41
		(shares in thousands)
				%
		Q1'2024	Q1'2023	Change	Q4'2023
	Share Repurchase Programs:
	Total Shares Repurchased / Canceled		4			274		n/m			-
	Average Repurchase Price		$45.58		$50.11		n/m			$-
	Net Shares (Issued) Repurchased		(7	)		265		n/m			(22	)
12. Period-End Balance Sheets.
		(unaudited, dollars in thousands)
				%
		3/31/24	3/31/23	Change	12/31/23
	Assets:
	Cash and Due from Banks	$434,250		$195,202		122.5	%	$190,314
	Debt Securities Available for Sale
	Corporate Securities		1,879,980			2,019,240		-6.9	%		1,909,548
	Collateralized Loan Obligations		1,420,584			1,542,377		-7.9	%		1,484,597
	Agency Mortgage Backed Securities		225,564			276,078		-18.3	%		239,454
	Securities of U.S. Government sponsored
	entities		292,583			297,140		-1.5	%		294,919
	Obligations of States and Political
	Subdivisions		70,466			82,678		-14.8	%		71,283
	Total Debt Securities Available for Sale		3,889,177			4,217,513		-7.8	%		3,999,801
	Debt Securities Held to Maturity
	Agency Mortgage Backed Securities		73,023			98,006		-25.5	%		78,565
	Corporate Securities		730,350			723,553		0.9	%		728,650
	Obligations of States and Political
	Subdivisions (2)		65,352			87,760		-25.5	%		71,181
	Total Debt Securities Held to Maturity (2)		868,725			909,319		-4.5	%		878,396
	Loans		844,677			938,628		-10.0	%		866,602
	Allowance For Credit Losses on Loans		(15,879	)		(19,509	)	-18.6	%		(16,867	)
	Total Loans, net		828,798			919,119		-9.8	%		849,735
	Premises and Equipment, net		26,458			28,331		-6.6	%		27,016
	Identifiable Intangibles, net		291			523		-44.5	%		347
	Goodwill		121,673			121,673		0.0	%		121,673
	Other Assets		295,313			308,791		-4.4	%		297,310
	Total Assets	$6,464,685		$6,700,471		-3.5	%	$6,364,592
	Liabilities and Shareholders' Equity:
	Deposits:
	Noninterest-Bearing	$2,514,161		$2,788,992		-9.9	%	$2,605,844
	Interest-Bearing Transaction		1,066,038			1,201,356		-11.3	%		1,072,233
	Savings		1,681,921			1,783,667		-5.7	%		1,699,388
	Time		92,805			125,300		-25.9	%		96,802
	Total Deposits		5,354,925			5,899,315		-9.2	%		5,474,267
	Bank Term Funding Program
	Borrowings		200,000			-		n/m			-
	Securities Sold under Repurchase
	Agreements		50,334			83,088		-39.4	%		58,162
	Total Short-Term Borrowed Funds		250,334			83,088		201.3	%		58,162
	Other Liabilities		67,735			75,143		-9.9	%		59,269
	Total Liabilities		5,672,994			6,057,546		-6.3	%		5,591,698
	Shareholders' Equity:
	Common Equity:
	Paid-In Capital		473,989			471,159		0.6	%		473,171
	Accumulated Other
	Comprehensive Loss		(196,857	)		(231,573	)	-15.0	%		(190,282	)
	Retained Earnings		514,559			403,339		27.6	%		490,005
	Total Shareholders' Equity		791,691			642,925		23.1	%		772,894
	Total Liabilities and
	Shareholders' Equity	$6,464,685		$6,700,471		-3.5	%	$6,364,592
13. Income Statements.
		(unaudited, in thousands except per-share amounts)
				%
		Q1'2024	Q1'2023	Change	Q4'2023
	Interest & Fee Income:
	Loans	$11,324		$11,740		-3.5	%	$11,606
	Equity Securities		174			152		14.5	%		174
	Debt Securities Available for Sale		46,243			46,810		-1.2	%		47,783
	Debt Securities Held to Maturity		8,722			8,980		-2.9	%		8,799
	Interest-Bearing Cash		2,283			1,942		17.6	%		2,690
	Total Interest & Fee Income		68,746			69,624		-1.3	%		71,052
	Interest Expense:
	Transaction Deposits		119			94		26.6	%		128
	Savings Deposits		1,917			280		584.6	%		1,431
	Time Deposits		70			84		-16.7	%		76
	Bank Term Funding Program
	Borrowings		843			-		n/m		-
	Securities Sold under Repurchase
	Agreements		52			13		306.0	%		44
	Total Interest Expense		3,001			471		537.2	%		1,679
	Net Interest Income		65,745			69,153		-4.9	%		69,373
	Provision (Reversal of Provision)
	for Credit Losses (1)		300			(1,550	)	n/m			-
	Noninterest Income:
	Service Charges on Deposit Accounts		3,470			3,465		0.2	%		3,540
	Merchant Processing Services		2,507			2,637		-4.9	%		2,863
	Debit Card Fees		1,543			1,642		-6.1	%		2,067
	Trust Fees		794			765		3.8	%		764
	ATM Processing Fees		591			654		-9.6	%		622
	Other Service Fees		438			399		9.7	%		445
	Other Noninterest Income		754			987		-23.6	%		691
	Total Noninterest Income		10,097			10,549		-4.3	%		10,992
	Noninterest Expense:
	Salaries and Related Benefits		12,586			12,067		4.3	%		12,156
	Occupancy and Equipment		5,040			5,485		-8.1	%		4,958
	Outsourced Data Processing		2,536			2,444		3.8	%		2,441
	Limited Partnership Operating Losses		1,440			1,434		0.4	%		1,440
	Professional Fees		402			476		-15.5	%		389
	Courier Service		649			615		5.5	%		681
	Other Noninterest Expense		3,446			3,689		-6.6	%		3,452
	Total Noninterest Expense		26,099			26,210		-0.4	%		25,517
	Income Before Income Taxes		49,443			55,042		-10.2	%		54,848
	Income Tax Provision		13,026			14,591		-10.7	%		15,380
	Net Income	$36,417		$40,451		-10.0	%	$39,468
	Average Common Shares Outstanding		26,674			26,859		-0.7	%		26,662
	Diluted Average Common Shares Outstanding		26,675			26,866		-0.7	%		26,664
	Per Common Share Data:
	Basic Earnings	$1.37		$1.51		-9.3	%	$1.48
	Diluted Earnings		1.37			1.51		-9.3	%		1.48
	Dividends Paid		0.44			0.42		4.8	%		0.44
	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 March 31, 2024, December 31, 2023 and March 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

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