Westamerica Bancorporation Reports First Quarter 2023 Financial Results

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

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

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

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

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

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

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

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

Westamerica Bancorporation Web Address: www.westamerica.com

For additional information contact:

Westamerica Bancorporation
1108 Fifth Avenue, San Rafael, CA 94901
Robert A. Thorson – SVP & Chief Financial Officer
707-863-6840
investments@westamerica.com

FORWARD-LOOKING INFORMATION:

The following appears in accordance with the Private Securities Litigation Reform Act of 1995:

This press release may contain forward-looking statements about the Company, including descriptions of plans or objectives of its management for future operations, products or services, and forecasts of its revenues, earnings or other measures of economic performance. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words "believe," "expect," "anticipate," "intend," "plan," "estimate," or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could," or "may."

Forward-looking statements, by their nature, are subject to risks and uncertainties. A number of factors — many of which are beyond the Company's control — could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. The Company's most recent reports filed with the Securities and Exchange Commission, including the annual report for the year ended December 31, 2022 filed on Form 10-K and quarterly report for the quarter ended September 30, 2022 filed on Form 10-Q, describe some of these factors, including certain credit, interest rate, operational, liquidity and market risks associated with the Company's business and operations. Other factors described in these reports include changes in business and economic conditions, competition, fiscal and monetary policies, disintermediation, cyber security risks, legislation including the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, the Sarbanes-Oxley Act of 2002 and the Gramm-Leach-Bliley Act of 1999, and mergers and acquisitions.

Forward-looking statements speak only as of the date they are made. The Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date forward looking statements are made.

WESTAMERICA BANCORPORATION
FINANCIAL HIGHLIGHTS
March 31, 2023
1. Net Income Summary.
		(in thousands except per-share amounts)
								%
		Q1'2023			Q1'2022			Change		Q4'2022
	Net Interest and Fee Income (FTE)	$	69,562		$	43,807		58.8	%	$	69,155
	Reversal of Provision for Credit Losses (2)		(1,550	)		-		n/m			-
	Noninterest Income (1)		10,549			11,576		-8.9	%		10,463
	Noninterest Expense		26,210			24,875		5.4	%		25,090
	Income Before Taxes (FTE)		55,451			30,508		81.8	%		54,528
	Income Tax Provision (FTE)		15,000			7,892		90.1	%		15,184
	Net Income	$	40,451		$	22,616		78.9	%	$	39,344
	Average Common Shares Outstanding		26,859			26,870		-0.0	%		26,912
	Diluted Average Common Shares Outstanding		26,866			26,885		-0.1	%		26,924
	Operating Ratios:
	Basic Earnings Per Common Share	$	1.51		$	0.84		79.8	%	$	1.46
	Diluted Earnings Per Common Share		1.51			0.84		79.8	%		1.46
	Return On Assets (a)		2.31	%		1.24	%				2.12	%
	Return On Common Equity (a)		19.1	%		11.8	%				18.6	%
	Net Interest Margin (FTE) (a)		4.18	%		2.51	%				3.95	%
	Efficiency Ratio (FTE)		32.7	%		44.9	%				31.5	%
	Dividends Paid Per Common Share	$	0.42		$	0.42		0.0	%	$	0.42
	Common Dividend Payout Ratio		28	%		50	%				29	%
2. Net Interest Income.
		(dollars in thousands)
								%
		Q1'2023			Q1'2022			Change		Q4'2022
	Interest and Fee Income (FTE)	$	70,033		$	44,287		58.1	%	$	69,630
	Interest Expense		471			480		-1.9	%		475
	Net Interest and Fee Income (FTE)	$	69,562		$	43,807		58.8	%	$	69,155
	Average Earning Assets	$	6,665,156		$	6,998,234		-4.8	%	$	6,930,584
	Average Interest- Bearing Liabilities		3,287,158			3,546,146		-7.3	%		3,412,189
	Yield on Earning Assets (FTE) (a)		4.21	%		2.54	%				3.98	%
	Cost of Funds (a)		0.03	%		0.03	%				0.03	%
	Net Interest Margin (FTE) (a)		4.18	%		2.51	%				3.95	%
	Interest Expense/
	Interest-Bearing Liabilities (a)		0.06	%		0.05	%				0.06	%
	Net Interest Spread (FTE) (a)		4.15	%		2.49	%				3.92	%
3. Loans & Other Earning Assets.
		(average volume, dollars in thousands)
								%
		Q1'2023			Q1'2022			Change		Q4'2022
	Total Assets	$	7,112,317		$	7,406,321		-4.0	%	$	7,353,270
	Total Earning Assets		6,665,156			6,998,234		-4.8	%		6,930,584
	Total Loans		945,864			1,029,724		-8.1	%		964,287
	Commercial Loans		165,360			207,901		-20.5	%		173,527
	Commercial Real Estate Loans		493,132			524,040		-5.9	%		492,549
	Consumer Loans		287,372			297,783		-3.5	%		298,211
	Total Investment Securities		5,548,780			4,947,846		12.1	%		5,694,280
	Debt Securities Available for Sale		4,636,098			4,655,983		-0.4	%		4,767,459
	Debt Securities Held to Maturity		912,682			291,863		212.7	%		926,821
	Total Interest-Bearing Cash		170,512			1,020,664		-83.3	%		272,017
	Loans/Deposits		15.6	%		16.1	%				15.2	%
4. Deposits, Other Interest-Bearing Liabilities & Equity.
		(average volume, dollars in thousands)
								%
		Q1'2023			Q1'2022			Change		Q4'2022
	Total Deposits	$	6,061,923		$	6,393,458		-5.2	%	$	6,349,401
	Noninterest Demand		2,851,600			3,005,065		-5.1	%		3,010,806
	Interest-Bearing Transaction		1,233,439			1,265,100		-2.5	%		1,287,304
	Savings		1,847,428			1,980,092		-6.7	%		1,917,370
	Time greater than $100K		57,630			64,172		-10.2	%		59,720
	Time less than $100K		71,826			79,029		-9.1	%		74,201
	Total Short-Term Borrowings		76,835			157,753		-51.3	%		73,594
	Shareholders' Equity		858,473			776,225		10.6	%		837,499
	Demand Deposits/ Total Deposits		47.0	%		47.0	%				47.4	%
	Transaction & Savings Deposits / Total Deposits		97.9	%		97.8	%				97.9	%
5. Interest Yields Earned & Rates Paid.
		(dollars in thousands)
		Q1'2023
		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	%
	Net Interest Income and
	Margin (FTE)				$	69,562		4.18	%
		Q1'2022
		Average			Income/			Yield (a) /
		Volume			Expense			Rate (a)
	Interest & Fee Income Earned:
	Total Earning Assets (FTE)	$	6,998,234		$	44,287		2.54	%
	Total Loans (FTE)		1,029,724			13,038		5.14	%
	Commercial Loans (FTE)		207,901			2,843		5.55	%
	Commercial Real Estate Loans		524,040			6,731		5.21	%
	Consumer Loans		297,783			3,464		4.72	%
	Total Investments (FTE)		4,947,846			30,770		2.49	%
	Total Debt Securities Available for Sale (FTE)		4,655,983			28,862		2.48	%
	Corporate Securities		2,701,476			18,488		2.74	%
	Collateralized Loan Obligations		1,464,266			7,045		1.92	%
	Agency Mortgage Backed Securities		385,900			2,256		2.34	%
	Obligations of States and Political Subdivisions (FTE)		89,998			694		3.08	%
	Other Debt Securities Available for Sale (FTE)		14,343			379		10.56	%
	Total Debt Securities Held to Maturity (FTE)		291,863			1,908		2.61	%
	Agency Mortgage Backed Securities		141,733			646		1.82	%
	Obligations of States and Political Subdivisions (FTE)		150,130			1,262		3.36	%
	Total Interest-Bearing Cash		1,020,664			479		0.19	%
	Interest Expense Paid:
	Total Earning Assets		6,998,234			480		0.03	%
	Total Interest-Bearing Liabilities		3,546,146			480		0.05	%
	Total Interest-Bearing Deposits		3,388,393			452		0.05	%
	Interest-Bearing Transaction		1,265,100			88		0.03	%
	Savings		1,980,092			283		0.06	%
	Time less than $100K		79,029			40		0.21	%
	Time greater than $100K		64,172			41		0.26	%
	Total Short-Term Borrowings		157,753			28		0.07	%
	Net Interest Income and
	Margin (FTE)				$	43,807		2.51	%
6. Noninterest Income.
		(dollars in thousands except per-share amounts)
								%
		Q1'2023			Q1'2022			Change		Q4'2022
	Service Charges on Deposit Accounts	$	3,465		$	3,582		-3.3	%	$	3,484
	Merchant Processing Services		2,637			2,623		0.5	%		2,701
	Debit Card Fees (1)		1,642			2,872		-42.8	%		1,704
	Trust Fees		765			843		-9.3	%		754
	ATM Processing Fees		654			451		45.0	%		646
	Other Service Fees		399			449		-11.2	%		416
	Financial Services Commissions		89			117		-23.9	%		103
	Other Noninterest Income		898			639		40.5	%		655
	Total Noninterest Income	$	10,549		$	11,576		-8.9	%	$	10,463
	Operating Ratios:
	Total Revenue (FTE)	$	80,111		$	55,383		44.6	%	$	79,618
	Noninterest Income/Revenue (FTE)		13.2	%		20.9	%				13.1	%
	Service Charges/Avg. Deposits (a)		0.23	%		0.23	%				0.22	%
	Total Revenue (FTE) Per Avg.
	Common Share (a)	$	12.10		$	8.36		44.8	%	$	11.74
7. Noninterest Expense.
		(dollars in thousands)
								%
		Q1'2023			Q1'2022			Change		Q4'2022
	Salaries & Benefits	$	12,067		$	11,920		1.2	%	$	11,482
	Occupancy and Equipment		5,485			4,746		15.6	%		5,218
	Outsourced Data Processing		2,444			2,437		0.3	%		2,390
	Limited Partnership Operating Losses		1,434			1,431		0.2	%		1,431
	Professional Fees		476			736		-35.3	%		574
	Courier Service		615			582		5.7	%		700
	Other Noninterest Expense		3,689			3,023		22.0	%		3,295
	Total Noninterest Expense	$	26,210		$	24,875		5.4	%	$	25,090
	Operating Ratios:
	Noninterest Expense/ Avg. Earning Assets (a)		1.59	%		1.44	%				1.44	%
	Noninterest Expense/Revenues (FTE)		32.7	%		44.9	%				31.5	%
8. Allowance for Credit Losses.
		(dollars in thousands)
								%
		Q1'2023			Q1'2022			Change		Q4'2022
	Average Total Loans	$	945,864		$	1,029,724		-8.1	%	$	964,287
	Beginning of Period Allowance for
	Credit Losses on Loans (ACLL)	$	20,284		$	23,514		-13.7	%	$	21,218
	(Reversal of) Provision for Credit Losses (2)		(1,550	)		-		n/m			6
	Net ACLL Recoveries (Losses)		775			(589	)	n/m			(940	)
	End of Period ACLL	$	19,509		$	22,925		-14.9	%	$	20,284
	Gross ACLL Recoveries / Gross ACLL Losses		138	%		51	%				44	%
	Net ACLL (Recoveries) Losses /
	Avg. Total Loans (a)		-0.33	%		0.23	%				0.39	%
		(dollars in thousands)
								%
		3/31/23			3/31/22			Change		12/31/22
	Allowance for Credit Losses on Loans	$	19,509		$	22,925		-14.9	%	$	20,284
	Allowance for Credit Losses on
	Held to Maturity Securities		1			7		-85.5	%		1
	Total Allowance for Credit Losses	$	19,510		$	22,932		-14.9	%	$	20,285
	Allowance for Unfunded
	Credit Commitments	$	201		$	201		0.0	%	$	201
9. Credit Quality.
		(dollars in thousands)
								%
		3/31/23			3/31/22			Change		12/31/22
	Nonperforming Loans:
	Nonperforming Nonaccrual Loans	$	207		$	63		228.6	%	$	146
	Performing Nonaccrual Loans		7			421		n/m			-
	Total Nonaccrual Loans		214			484		-55.8	%		146
	90+ Days Past Due Accruing Loans		571			431		32.5	%		628
	Total Nonperforming Loans	$	785		$	915		-14.2	%	$	774
	Total Loans Outstanding	$	938,628		$	1,002,514		-6.4	%	$	958,488
	Total Assets		6,700,471			7,306,417		-8.3	%		6,950,317
	Loans:
	Allowance for Credit Losses on Loans	$	19,509		$	22,925		-14.9	%	$	20,284
	Allowance for Credit Losses on Loans / Loans		2.08	%		2.29	%				2.12	%
	Nonperforming Loans/Total Loans		0.08	%		0.09	%				0.08	%
10. Liquidity.
	At March 31, 2023, the Company had $195,202 thousand in cash balances. During the twelve months ending March 31, 2024, the Company expects to receive $337,000 thousand in principal payments from its debt securities. If additional operational liquidity is required, the Company can pledge debt securities as collateral for borrowing purposes; at March 31, 2023, the Company’s debt securities which qualify as collateral for borrowing totaled $4,107,153 thousand. In the ordinary course of business, the Company pledges debt securities as collateral for certain depository customers; at March 31, 2023, the Company had pledged $686,533 thousand in debt securities for depository customers. In the ordinary course of business, the Company pledges debt securities as collateral for borrowing from the Federal Reserve Bank; at March 31, 2023, the Company’s had pledged $670,649 thousand in debt securities at the Federal Reserve Bank. During the three months ended March 31, 2023, the Company’s average borrowings from the Federal Reserve Bank and other correspondent banks were $1 thousand, and at March 31, 2023, the Company’s borrowings from the Federal Reserve Bank and other correspondent banks were $-0- thousand. At March 31, 2023, the Company’s unpledged collateral qualifying debt securities totaled $2,574,254 thousand. The following schedule is shown in market value unless otherwise noted.
										(in thousands)
										3/31/23
	Debt Securities Eligible as Collateral:
	Corporate Securities									$2,715,376
	Collateralized Loan Obligations rated AAA										525,666
	Obligations of States and Political Subdivisions										170,268
	Agency Mortgage Backed Securities										369,010
	Securities of U.S. Government Sponsored Entities (Par Value)										326,833
	Total Debt Securities Eligible as Collateral									$4,107,153
	Debt Securities Pledged as Collateral:
	Public funds									($686,533		)
	Short-term borrowed funds (Deposit Sweep)										(169,352	)
	Other										(6,365	)
	Total Debt Securities Pledged as Collateral									($862,250		)
	Debt Securities Pledged at the Federal Reserve Bank									($670,649		)
	Debt Securities Available to Pledge									$2,574,254
11. Capital.
		(in thousands, except per-share amounts)
								%
		3/31/23			3/31/22			Change		12/31/22
	Shareholders' Equity	$	642,925		$	701,744		-8.4	%	$	602,110
	Total Assets		6,700,471			7,306,417		-8.3	%		6,950,317
	Shareholders' Equity/
	Total Assets		9.60	%		9.60	%				8.66	%
	Shareholders' Equity/
	Total Loans		68.50	%		70.00	%				62.82	%
	Tangible Common Equity Ratio		7.92	%		8.06	%				7.03	%
	Common Shares Outstanding		26,648			26,883		-0.9	%		26,913
	Common Equity Per Share	$	24.13		$	26.10		-7.6	%	$	22.37
	Market Value Per Common Share		44.30			60.50		-26.8	%		59.01
		(shares in thousands)
								%
		Q1'2023			Q1'2022			Change		Q4'2022
	Share Repurchase Programs:
	Total Shares Repurchased / Canceled		274			3		n/m			-
	Average Repurchase Price	$	50.11		$	58.66		n/m		$	-
	Net Shares Repurchased (Issued)		265			(17	)	n/m			(2	)
12. Period-End Balance Sheets.
		(unaudited, dollars in thousands)
								%
		3/31/23			3/31/22			Change		12/31/22
	Assets:
	Cash and Due from Banks	$	195,202		$	1,037,593		-81.2	%	$	294,236
	Debt Securities Available for Sale
	Corporate Securities		2,019,240			2,547,118		-20.7	%		2,099,955
	Collateralized Loan Obligations		1,542,377			1,616,584		-4.6	%		1,572,883
	Agency Mortgage Backed Securities		276,078			363,181		-24.0	%		286,048
	Securities of U.S. Government sponsored entities		297,140			-		n/m			290,853
	Obligations of States and Political Subdivisions		82,678			89,595		-7.7	%		82,004
	Other Debt Securities Available for Sale		-			110		n/m			-
	Total Debt Securities Available for Sale		4,217,513			4,616,588		-8.6	%		4,331,743
	Debt Securities Held to Maturity
	Agency Mortgage Backed Securities		98,006			133,754		-26.7	%		104,852
	Corporate Securities		723,553			-		n/m			721,854
	Obligations of States and Political Subdivisions (3)		87,760			146,766		-40.2	%		89,207
	Total Debt Securities Held to Maturity (3)		909,319			280,520		224.2	%		915,913
	Loans		938,628			1,002,514		-6.4	%		958,488
	Allowance For Credit Losses on Loans		(19,509	)		(22,925	)	-14.9	%		(20,284	)
	Total Loans, net		919,119			979,589		-6.2	%		938,204
	Premises and Equipment, net		28,331			30,626		-7.5	%		28,819
	Identifiable Intangibles, net		523			771		-32.1	%		583
	Goodwill		121,673			121,673		0.0	%		121,673
	Other Assets		308,791			239,057		29.2	%		319,146
	Total Assets	$	6,700,471		$	7,306,417		-8.3	%	$	6,950,317
	Liabilities and Shareholders' Equity:
	Deposits:
	Noninterest-Bearing	$	2,788,992		$	3,000,268		-7.0	%	$	2,947,277
	Interest-Bearing Transaction		1,201,356			1,279,165		-6.1	%		1,273,143
	Savings		1,783,667			1,984,719		-10.1	%		1,874,115
	Time		125,300			141,722		-11.6	%		130,755
	Total Deposits		5,899,315			6,405,874		-7.9	%		6,225,290
	Short-Term Borrowed Funds		83,088			124,442		-33.2	%		57,792
	Other Liabilities		75,143			74,357		1.1	%		65,125
	Total Liabilities		6,057,546			6,604,673		-8.3	%		6,348,207
	Shareholders' Equity:
	Common Equity:
	Paid-In Capital		471,159			472,470		-0.3	%		475,121
	Accumulated Other
	Comprehensive Loss		(231,573	)		(88,300	)	n/m			(256,105	)
	Retained Earnings		403,339			317,574		27.0	%		383,094
	Total Shareholders' Equity		642,925			701,744		-8.4	%		602,110
	Total Liabilities and
	Shareholders' Equity	$	6,700,471		$	7,306,417		-8.3	%	$	6,950,317
13. Income Statements.
		(unaudited, in thousands except per-share amounts)
								%
		Q1'2023			Q1'2022			Change		Q4'2022
	Interest & Fee Income:
	Loans	$	11,740		$	12,942		-9.3	%	$	12,201
	Equity Securities		152			128		18.8	%		153
	Debt Securities Available for Sale		46,810			28,566		63.9	%		45,216
	Debt Securities Held to Maturity		8,980			1,644		446.2	%		9,061
	Interest-Bearing Cash		1,942			479		305.4	%		2,567
	Total Interest & Fee Income		69,624			43,759		59.1	%		69,198
	Interest Expense:
	Transaction Deposits		94			88		6.8	%		96
	Savings Deposits		280			283		-1.1	%		280
	Time Deposits		84			81		3.7	%		87
	Short-Term Borrowed Funds		13			28		-53.6	%		12
	Total Interest Expense		471			480		-1.9	%		475
	Net Interest Income		69,153			43,279		59.8	%		68,723
	Reversal of Provision for Credit Losses (2)		(1,550	)		-		n/m			-
	Noninterest Income:
	Service Charges on Deposit Accounts		3,465			3,582		-3.3	%		3,484
	Merchant Processing Services		2,637			2,623		0.5	%		2,701
	Debit Card Fees (1)		1,642			2,872		-42.8	%		1,704
	Trust Fees		765			843		-9.3	%		754
	ATM Processing Fees		654			451		45.0	%		646
	Other Service Fees		399			449		-11.2	%		416
	Financial Services Commissions		89			117		-23.9	%		103
	Other Noninterest Income		898			639		40.5	%		655
	Total Noninterest Income		10,549			11,576		-8.9	%		10,463
	Noninterest Expense:
	Salaries and Related Benefits		12,067			11,920		1.2	%		11,482
	Occupancy and Equipment		5,485			4,746		15.6	%		5,218
	Outsourced Data Processing		2,444			2,437		0.3	%		2,390
	Limited Partnership Operating Losses		1,434			1,431		0.2	%		1,431
	Professional Fees		476			736		-35.3	%		574
	Courier Service		615			582		5.7	%		700
	Other Noninterest Expense		3,689			3,023		22.0	%		3,295
	Total Noninterest Expense		26,210			24,875		5.4	%		25,090
	Income Before Income Taxes		55,042			29,980		83.6	%		54,096
	Income Tax Provision		14,591			7,364		98.1	%		14,752
	Net Income	$	40,451		$	22,616		78.9	%	$	39,344
	Average Common Shares Outstanding		26,859			26,870		-0.0	%		26,912
	Diluted Average Common Shares Outstanding		26,866			26,885		-0.1	%		26,924
	Per Common Share Data:
	Basic Earnings	$	1.51		$	0.84		79.8	%	$	1.46
	Diluted Earnings		1.51			0.84		79.8	%		1.46
	Dividends Paid		0.42			0.42		0.0	%		0.42
	Footnotes and Abbreviations:
	(1) The Company received a $1.2 million reconciling payment from a payments network in the first quarter 2022.
	(2) A recovery of a previously charged off loan in the first quarter 2023 resulted in a $1,550 thousand reversal of the allowance for credit loss provision in the first quarter 2023.
	(3) Debt Securities Held To Maturity and Obligations of States and Political Subdivisions are net of related reserve for expected credit losses of $1 thousand at March 31, 2023, December 31, 2022 and $7 thousand at March 31, 2022.
	(FTE) Fully Taxable Equivalent. The Company presents its net interest margin and net interest income on a FTE basis using the current statutory federal tax rate. Management believes the FTE basis is valuable to the reader because the Company’s loan and investment securities portfolios contain a portion of municipal loans and securities that are federally tax exempt. The Company’s tax exempt loans and securities composition may not be similar to that of other banks, therefore in order to reflect the impact of the federally tax exempt loans and securities on the net interest margin and net interest income for comparability with other banks, the Company presents its net interest margin and net interest income on a FTE basis.
	(a) Annualized