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Westamerica Bancorporation Reports Fourth Quarter 2024 Financial Results

1. WABC reported Q4 2024 net income of $31.7 million. 2. EPS declined to $1.19, down from $1.31 last quarter. 3. Nonperforming assets remained stable at $0.7 million. 4. Return on average common equity decreased to 12.1%. 5. Total deposits dropped 9.8% year-over-year.

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WABCNASDAQ
January 16, 2025 11:04 ET  | Source: Westamerica Bancorporation SAN RAFAEL, Calif., Jan. 16, 2025 (GLOBE NEWSWIRE) -- Westamerica Bancorporation (Nasdaq: 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. Westamerica Bancorporation Web Address: www.westamerica.com For additional information contact:           Westamerica Bancorporation           1108 Fifth Avenue, San Rafael, CA 94901           Robert A. Thorson – SVP & Treasurer           707-863-6840           investments@westamerica.com FORWARD-LOOKING INFORMATION: The following appears in accordance with the Private Securities Litigation Reform Act of 1995: This press release may contain forward-looking statements about the Company, including descriptions of plans or objectives of its management for future operations, products or services, and forecasts of its revenues, earnings or other measures of economic performance. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words "believe," "expect," "anticipate," "intend," "plan," "estimate," or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could," or "may." Forward-looking statements, by their nature, are subject to risks and uncertainties. A number of factors — many of which are beyond the Company's control — could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. The Company's most recent reports filed with the Securities and Exchange Commission, including the annual report for the year ended December 31, 2023 filed on Form 10-K and quarterly report for the quarter ended 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)    %   Q4'2024Q4'2023ChangeQ3'2024 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%          %   12/31'24YTD12/31'23YTDChange  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)    %   Q4'2024Q4'2023ChangeQ3'2024       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%          %   12/31'24YTD12/31'23YTDChange  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)    %   Q4'2024Q4'2023ChangeQ3'2024       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%          %   12/31'24YTD12/31'23YTDChange        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)    %   Q4'2024Q4'2023ChangeQ3'2024       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%          %   12/31'24YTD12/31'23YTDChange        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   AverageIncome/Yield (a) /   VolumeExpenseRate (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   AverageIncome/Yield (a) /   VolumeExpenseRate (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)    %   Q4'2024Q4'2023ChangeQ3'2024       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           %   12/31'24YTD12/31'23YTDChange  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)    %   Q4'2024Q4'2023ChangeQ3'2024       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%          %   12/31'24YTD12/31'23YTDChange        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)    %   Q4'2024Q4'2023ChangeQ3'2024       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%          %   12/31'24YTD12/31'23YTDChange        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)    %   12/31/2412/31/23Change9/30/24 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)    %   12/31/2412/31/23Change9/30/24       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)    %   12/31/2412/31/23Change9/30/24       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%$34.06  Market Value Per Common     Share 52.46  56.41 -7.0% 49.42         (shares in thousands)    %   Q4'2024Q4'2023ChangeQ3'2024 Share (Issuances) Retirements:     Total Shares Retired -  - n/m -  Average Retirement Price$- $- n/m$-  Net Shares Issued (22) (22)n/m (3)          %   12/31'24YTD12/31'23YTDChange        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)    %   12/31/2412/31/23Change9/30/24 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)    %   Q4'2024Q4'2023ChangeQ3'2024 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           %   12/31'24YTD12/31'23YTDChange  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    

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