Westamerica Bancorporation Reports Fourth Quarter 2022 Financial Results

SAN RAFAEL, Calif., Jan. 19, 2023 (GLOBE NEWSWIRE) -- Westamerica Bancorporation (Nasdaq: WABC), parent company of Westamerica Bank, generated net income for the fourth quarter 2022 of $39.3 million and diluted earnings per common share ("EPS") of $1.46. Fourth quarter 2022 results compare to net income for third quarter 2022 of $34.8 million and EPS of $1.29, which included a life insurance gain equivalent to EPS of $0.03.

"Westamerica’s fourth quarter 2022 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 fourth quarter 2022, unchanged from the prior quarter. Non-interest bearing deposits represented 47 percent of average deposits in the fourth quarter 2022. The fourth quarter also benefited from higher yields on variable-rate bonds, loans and cash. Operating expenses were well controlled and credit quality remained solid with nonperforming assets of $774 thousand at December 31, 2022,” said Chairman, President and CEO David Payne. “Fourth quarter 2022 results generated an annualized 18.6 percent return on average common equity. Shareholders were paid a $0.42 per common share dividend during the fourth quarter 2022,” concluded Payne.

Net interest income on a fully-taxable equivalent (FTE) basis was $69.2 million for the fourth quarter 2022, compared to $60.8 million for the third quarter 2022. The yield earned on loans, bonds, and cash for the fourth quarter 2022 was 3.98 percent, up from 3.47 percent for the third quarter 2022. The cost of funding the loan, bond, and cash portfolios was 0.03 percent for both the fourth quarter and third quarter of 2022. Variable rate assets at December 31, 2022 included $1.6 billion in collateralized loan obligations for which interest rates reset quarterly, and $192 million in interest-bearing cash balances for which the interest rate changes concurrently with Federal Open Market Committee adjustments to the federal funds rate.

Noninterest income for the fourth quarter 2022 totaled $10.5 million compared to $11.8 million for the third quarter 2022, which included a $923 thousand life insurance gain.

Noninterest expenses for the fourth quarter 2022 were $25.1 million compared to $24.8 million for the third quarter 2022.

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, 2021 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 2011, 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
December 31, 2022
1. Net Income Summary.
		(in thousands except per-share amounts)
								%
		Q4'2022			Q4'2021			Change		Q3'2022
	Net Interest and Fee Income (FTE)	$	69,155		$	43,117		60.4	%	$	60,780
	Provision for Credit Losses		-			-		n/m			-
	Noninterest Income		10,463			10,842		-3.5	%		11,818
	Noninterest Expense		25,090			23,912		4.9	%		24,767
	Income Before Taxes (FTE)		54,528			30,047		81.5	%		47,831
	Income Tax Provision (FTE)		15,184			8,327		82.3	%		13,071
	Net Income	$	39,344		$	21,720		81.1	%	$	34,760
	Average Common Shares Outstanding		26,912			26,866		0.2	%		26,906
	Diluted Average Common Shares		26,924			26,875		0.2	%		26,916
	Operating Ratios:
	Basic Earnings Per Common Share	$	1.46		$	0.81		80.2	%	$	1.29
	Diluted Earnings Per Common Share		1.46			0.81		80.2	%		1.29
	Return On Assets (a)		2.12	%		1.17	%				1.85	%
	Return On Common Equity (a)		18.6	%		11.2	%				17.1	%
	Net Interest Margin (FTE) (a)		3.95	%		2.49	%				3.44	%
	Efficiency Ratio (FTE)		31.5	%		44.3	%				34.1	%
	Dividends Paid Per Common Share	$	0.42		$	0.42		0.0	%	$	0.42
	Common Dividend Payout Ratio		29	%		52	%				33	%
								%
		12/31'22YTD			12/31'21YTD			Change
	Net Interest and Fee Income (FTE)	$	221,775		$	174,151		27.3	%
	Provision for Credit Losses		-			-		n/m
	Noninterest Income (1)		45,121			43,345		4.1	%
	Noninterest Expense		99,361			97,806		1.6	%
	Income Before Taxes (FTE)		167,535			119,690		40.0	%
	Income Tax Provision (FTE)		45,501			33,181		37.1	%
	Net Income	$	122,034		$	86,509		41.1	%
	Average Common Shares Outstanding		26,895			26,855		0.1	%
	Diluted Average Common Shares		26,907			26,870		0.1	%
	Operating Ratios:
	Basic Earnings Per Common Share	$	4.54		$	3.22		41.0	%
	Diluted Earnings Per Common Share		4.54			3.22		41.0	%
	Return On Assets		1.65	%		1.23	%
	Return On Common Equity		15.2	%		11.5	%
	Net Interest Margin (FTE)		3.17	%		2.62	%
	Efficiency Ratio (FTE)		37.2	%		45.0	%
	Dividends Paid Per Common Share	$	1.68		$	1.65		1.8	%
	Common Dividend Payout Ratio		37	%		51	%
2. Net Interest Income.
		(dollars in thousands)
								%
		Q4'2022			Q4'2021			Change		Q3'2022
	Interest and Fee Income (FTE)	$	69,630		$	43,621		59.6	%	$	61,267
	Interest Expense		475			504		-5.8	%		487
	Net Interest and Fee Income (FTE)	$	69,155		$	43,117		60.4	%	$	60,780
	Average Earning Assets	$	6,930,584		$	6,919,528		0.2	%	$	7,041,313
	Average Interest-
	Bearing Liabilities		3,412,189			3,468,111		-1.6	%		3,520,083
	Yield on Earning Assets (FTE) (a)		3.98	%		2.52	%				3.47	%
	Cost of Funds (a)		0.03	%		0.03	%				0.03	%
	Net Interest Margin (FTE) (a)		3.95	%		2.49	%				3.44	%
	Interest Expense/
	Interest-Bearing Liabilities (a)		0.06	%		0.06	%				0.05	%
	Net Interest Spread (FTE) (a)		3.92	%		2.46	%				3.42	%
								%
		12/31'22YTD			12/31'21YTD			Change
	Interest and Fee Income (FTE)	$	223,700		$	176,106		27.0	%
	Interest Expense		1,925			1,955		-1.5	%
	Net Interest and Fee Income (FTE)	$	221,775		$	174,151		27.3	%
	Average Earning Assets	$	6,992,696		$	6,632,632		5.4	%
	Average Interest-
	Bearing Liabilities		3,506,559			3,317,924		5.7	%
	Yield on Earning Assets (FTE)		3.20	%		2.65	%
	Cost of Funds		0.03	%		0.03	%
	Net Interest Margin (FTE)		3.17	%		2.62	%
	Interest Expense/
	Interest-Bearing Liabilities		0.05	%		0.06	%
	Net Interest Spread (FTE)		3.15	%		2.59	%
3. Loans & Other Earning Assets.
		(average volume, dollars in thousands)
								%
		Q4'2022			Q4'2021			Change		Q3'2022
	Total Assets	$	7,353,270		$	7,334,977		0.2	%	$	7,472,304
	Total Earning Assets		6,930,584			6,919,528		0.2	%		7,041,313
	Total Loans		964,287			1,097,698		-12.2	%		989,033
	Total Commercial Loans		173,527			259,007		-33.0	%		190,325
	Paycheck Protection Program (PPP) Loans		3,529			68,870		-94.9	%		10,453
	Commercial Loans		169,998			190,137		-10.6	%		179,872
	Commercial RE Loans		492,549			538,177		-8.5	%		494,717
	Consumer Loans		298,211			300,514		-0.8	%		303,991
	Total Investment Securities		5,694,280			4,866,476		17.0	%		5,552,588
	Debt Securities Available for Sale		4,767,459			4,533,494		5.2	%		4,845,055
	Debt Securities Held to Maturity		926,821			332,982		178.3	%		707,533
	Total Interest-Bearing Cash		272,017			955,354		-71.5	%		499,692
	Loans/Deposits		15.2	%		17.3	%				15.2	%
								%
		12/31'22YTD			12/31'21YTD			Change
	Total Assets	$	7,413,008		$	7,039,284		5.3	%
	Total Earning Assets		6,992,696			6,632,632		5.4	%
	Total Loans		997,964			1,195,135		-16.5	%
	Total Commercial Loans		193,481			349,981		-44.7	%
	PPP Loans		17,604			152,149		-88.4	%
	Commercial Loans		175,877			197,832		-11.1	%
	Commercial RE Loans		504,713			546,750		-7.7	%
	Consumer Loans		299,770			298,404		0.5	%
	Total Investment Securities		5,303,646			4,580,468		15.8	%
	Debt Securities Available for Sale		4,747,969			4,169,091		13.9	%
	Debt Securities Held to Maturity		555,677			411,377		35.1	%
	Total Interest-Bearing Cash		691,086			857,029		-19.4	%
	Loans/Deposits		15.6	%		19.6	%
4. Deposits, Other Interest-Bearing Liabilities & Equity.
		(average volume, dollars in thousands)
								%
		Q4'2022			Q4'2021			Change		Q3'2022
	Total Deposits	$	6,349,401		$	6,349,137		0.0	%	$	6,495,051
	Noninterest Demand		3,010,806			3,022,787		-0.4	%		3,058,662
	Interest-Bearing Transaction		1,287,304			1,245,385		3.4	%		1,308,310
	Savings		1,917,370			1,934,220		-0.9	%		1,989,275
	Time greater than $100K		59,720			65,920		-9.4	%		62,014
	Time less than $100K		74,201			80,825		-8.2	%		76,790
	Total Short-Term Borrowings		73,594			141,761		-48.1	%		83,694
	Shareholders' Equity		837,499			766,358		9.3	%		807,428
	Demand Deposits/
	Total Deposits		47.4	%		47.6	%				47.1	%
	Transaction & Savings
	Deposits / Total Deposits		97.9	%		97.7	%				97.9	%
								%
		12/31'22YTD			12/31'21YTD			Change
	Total Deposits	$	6,415,626		$	6,100,848		5.2	%
	Noninterest Demand		3,018,350			2,897,244		4.2	%
	Interest-Bearing Transaction		1,289,956			1,208,269		6.8	%
	Savings		1,967,902			1,842,590		6.8	%
	Time greater than $100K		62,411			69,165		-9.8	%
	Time less than $100K		77,007			83,580		-7.9	%
	Total Short-Term Borrowings		109,283			114,267		-4.4	%
	Other Borrowed Funds		-			53		n/m
	Shareholders' Equity		802,489			750,669		6.9	%
	Demand Deposits/
	Total Deposits		47.0	%		47.5	%
	Transaction & Savings
	Deposits / Total Deposits		97.8	%		97.5	%
5. Interest Yields Earned & Rates Paid.
		(dollars in thousands)
		Q4'2022
		Average			Income/			Yield (a) /
		Volume			Expense			Rate (a)
	Interest & Fee Income Earned
	Total Earning Assets (FTE)	$	6,930,584		$	69,630		3.98	%
	Total Loans (FTE)		964,287			12,293		5.06	%
	Total Commercial Loans (FTE)		173,527			2,896		6.62	%
	PPP Loans		3,529			408		45.89	%
	Commercial Loans (FTE)		169,998			2,488		5.81	%
	Commercial RE Loans		492,549			5,812		4.68	%
	Consumer Loans		298,211			3,585		4.77	%
	Total Investments (FTE)		5,694,280			54,770		3.81	%
	Total Debt Securities Available for Sale (FTE)		4,767,459			45,531		3.78	%
	Corporate Securities		2,462,131			17,102		2.78	%
	Collateralized Loan Obligations		1,590,164			22,801		5.61	%
	Agency Mortgage Backed Securities		319,843			1,921		2.40	%
	Securities of U.S. Government sponsored entities		297,710			2,690		3.61	%
	Obligations of States and Political Subdivisions (FTE)		84,774			644		3.04	%
	Other Debt Securities Available for Sale (FTE)		12,837			373		11.63	%
	Total Debt Securities Held to Maturity (FTE)		926,821			9,239		3.99	%
	Agency Mortgage Backed Securities		109,100			575		2.11	%
	Corporate Securities		720,752			7,815		4.34	%
	Obligations of States and Political Subdivisions (FTE)		96,969			849		3.50	%
	Total Interest-Bearing Cash		272,017			2,567		3.69	%
	Interest Expense Paid
	Total Earning Assets		6,930,584			475		0.03	%
	Total Interest-Bearing Liabilities		3,412,189			475		0.06	%
	Total Interest-Bearing Deposits		3,338,595			463		0.05	%
	Interest-Bearing Transaction		1,287,304			96		0.03	%
	Savings		1,917,370			280		0.06	%
	Time less than $100K		74,201			51		0.27	%
	Time greater than $100K		59,720			36		0.24	%
	Total Short-Term Borrowings		73,594			12		0.06	%
	Net Interest Income and
	Margin (FTE)				$	69,155		3.95	%
		Q4'2021
		Average			Income/			Yield (a) /
		Volume			Expense			Rate (a)
	Interest & Fee Income Earned
	Total Earning Assets (FTE)	$	6,919,528		$	43,621		2.52	%
	Total Loans (FTE)		1,097,698			13,223		4.78	%
	Total Commercial Loans (FTE)		259,007			3,187		4.88	%
	PPP Loans		68,870			1,208		6.96	%
	Commercial Loans (FTE)		190,137			1,979		4.13	%
	Commercial RE Loans		538,177			6,492		4.79	%
	Consumer Loans		300,514			3,544		4.68	%
	Total Investments (FTE)		4,866,476			30,032		2.47	%
	Total Debt Securities Available for Sale (FTE)		4,533,494			27,900		2.45	%
	Corporate Securities		2,652,661			18,385		2.77	%
	Collateralized Loan Obligations		1,352,348			6,309		1.83	%
	Agency Mortgage Backed Securities		422,721			2,123		2.01	%
	Obligations of States and Political Subdivisions (FTE)		91,412			717		3.14	%
	Other Debt Securities Available for Sale (FTE)		14,352			366		10.20	%
	Total Debt Securities Held to Maturity (FTE)		332,982			2,132		2.56	%
	Agency Mortgage Backed Securities		158,537			664		1.68	%
	Obligations of States and Political Subdivisions (FTE)		174,445			1,468		3.36	%
	Total Interest-Bearing Cash		955,354			366		0.15	%
	Interest Expense Paid
	Total Earning Assets		6,919,528			504		0.03	%
	Total Interest-Bearing Liabilities		3,468,111			504		0.06	%
	Total Interest-Bearing Deposits		3,326,350			479		0.06	%
	Interest-Bearing Transaction		1,245,385			95		0.03	%
	Savings		1,934,220			282		0.06	%
	Time less than $100K		80,825			41		0.20	%
	Time greater than $100K		65,920			61		0.37	%
	Total Short-Term Borrowings		141,761			25		0.07	%
	Net Interest Income and
	Margin (FTE)				$	43,117		2.49	%
6. Noninterest Income.
		(dollars in thousands except per-share amounts)
								%
		Q4'2022			Q4'2021			Change		Q3'2022
	Service Charges on Deposits	$	3,484		$	3,580		-2.7	%	$	3,737
	Merchant Processing Services		2,701			3,000		-10.0	%		2,925
	Debit Card Fees		1,704			1,727		-1.4	%		1,594
	Trust Fees		754			844		-10.7	%		810
	ATM Processing Fees		646			488		32.4	%		594
	Other Service Fees		416			449		-7.3	%		463
	Financial Services Commissions		103			96		7.3	%		79
	Life Insurance Gains		7			-		n/m			923
	Other Noninterest Income		648			658		-1.5	%		693
	Total Noninterest Income	$	10,463		$	10,842		-3.5	%	$	11,818
	Total Revenue (FTE)	$	79,618		$	53,959		47.6	%	$	72,598
	Noninterest Income/Revenue (FTE)		13.1	%		20.1	%				16.3	%
	Service Charges/Avg. Deposits (a)		0.22	%		0.22	%				0.23	%
	Total Revenue (FTE) Per Avg.
	Common Share (a)	$	11.74		$	7.97		47.3	%	$	10.70
								%
		12/31'22YTD			12/31'21YTD			Change
	Service Charges on Deposits	$	14,490		$	13,697		5.8	%
	Merchant Processing Services		11,623			11,998		-3.1	%
	Debit Card Fees (1)		7,879			6,859		14.9	%
	Trust Fees		3,216			3,311		-2.9	%
	ATM Processing Fees		2,160			2,280		-5.3	%
	Other Service Fees		1,808			1,884		-4.0	%
	Financial Services Commissions		417			356		17.1	%
	Life Insurance Gains		930			-		n/m
	Securities Gains		-			34		n/m
	Other Noninterest Income		2,598			2,926		-11.2	%
	Total Noninterest Income	$	45,121		$	43,345		4.1	%
	Total Revenue (FTE)	$	266,896		$	217,496		22.7	%
	Noninterest Income/Revenue (FTE)		16.9	%		19.9	%
	Service Charges/Avg. Deposits		0.23	%		0.22	%
	Total Revenue (FTE) Per Avg./
	Common Share	$	9.92		$	8.10		22.5	%
7. Noninterest Expense.
		(dollars in thousands)
								%
		Q4'2022			Q4'2021			Change		Q3'2022
	Salaries & Benefits	$	11,482		$	11,436		0.4	%	$	11,311
	Occupancy and Equipment		5,218			4,692		11.2	%		5,064
	Outsourced Data Processing		2,390			2,357		1.4	%		2,434
	Limited Partnership Operating Losses		1,431			800		78.9	%		1,431
	Professional Fees		574			757		-24.2	%		582
	Courier Service		700			572		22.4	%		671
	Other Noninterest Expense		3,295			3,298		-0.1	%		3,274
	Total Noninterest Expense	$	25,090		$	23,912		4.9	%	$	24,767
	Noninterest Expense/
	Avg. Earning Assets (a)		1.44	%		1.37	%				1.40	%
	Noninterest Expense/Revenues (FTE)		31.5	%		44.3	%				34.1	%
								%
		12/31'22YTD			12/31'21YTD			Change
	Salaries & Benefits	$	46,125		$	48,011		-3.9	%
	Occupancy and Equipment		19,884			19,139		3.9	%
	Outsourced Data Processing		9,684			9,601		0.9	%
	Limited Partnership Operating Losses		5,724			2,620		118.5	%
	Professional Fees		2,628			3,253		-19.2	%
	Courier Service		2,614			2,177		20.1	%
	Other Noninterest Expense		12,702			13,005		-2.3	%
	Total Noninterest Expense	$	99,361		$	97,806		1.6	%
	Noninterest Expense/
	Avg. Earning Assets		1.42	%		1.47	%
	Noninterest Expense/Revenues (FTE)		37.2	%		45.0	%
8. Allowance for Credit Losses.
		(dollars in thousands)
								%
		Q4'2022			Q4'2021			Change		Q3'2022
	Average Total Loans	$	964,287		$	1,097,698		-12.2	%	$	989,033
	Beginning of Period Allowance for
	Credit Losses on Loans (ACLL)	$	21,218		$	23,882		-11.2	%	$	22,313
	Provision for Credit Losses		6			-		n/m			-
	Net ACLL Losses		(940	)		(368	)	n/m			(1,095	)
	End of Period ACLL	$	20,284		$	23,514		-13.7	%	$	21,218
	Gross ACLL Recoveries /
	Gross ACLL Losses		44	%		64	%				43	%
	Net ACLL Losses / Avg. Total Loans (a)		0.39	%		0.13	%				0.44	%
								%
		12/31'22YTD			12/31'21YTD			Change
	Average Total Loans	$	997,964		$	1,195,135		-16.5	%
	Beginning of Period ACLL	$	23,514		$	23,854		-1.4	%
	Provision for Credit Losses		6			2		n/m
	Net ACLL Losses		(3,236	)		(342	)	n/m
	End of Period ACLL	$	20,284		$	23,514		-13.7	%
	Gross ACLL Recoveries /
	Gross ACLL Losses		48	%		89	%
	Net ACLL Losses / Avg. Total Loans		0.32	%		0.03	%
		(dollars in thousands)
								%
		12/31/22			12/31/21			Change		9/30/22
	Allowance for Credit Losses on Loans	$	20,284		$	23,514		-13.7	%	$	21,218
	Allowance for Credit Losses on
	Held to Maturity Securities		1			7		-78.4	%		7
	Total Allowance for Credit Losses	$	20,285		$	23,521		-13.8	%	$	21,225
	Allowance for Unfunded
	Credit Commitments	$	201		$	201		0.0	%	$	201
9. Credit Quality.
		(dollars in thousands)
								%
		12/31/22			12/31/21			Change		9/30/22
	Nonperforming Loans:
	Nonperforming Nonaccrual	$	146		$	265		-44.9	%	$	131
	Performing Nonaccrual		-			427		n/m			66
	Total Nonaccrual Loans		146			692		-78.9	%		197
	90+ Days Past Due Accruing Loans		628			339		85.3	%		769
	Total Nonperforming Loans	$	774		$	1,031		-24.9	%	$	966
	Total Loans Outstanding	$	958,488		$	1,068,126		-10.3	%	$	979,033
	Total Assets		6,950,317			7,461,026		-6.8	%		7,177,025
	Loans:
	Allowance for Credit Losses on Loans	$	20,284		$	23,514		-13.7	%	$	21,218
	Allowance for Credit Losses on Loans /
	Loans		2.12	%		2.20	%				2.17	%
	Nonperforming Loans/Total Loans		0.08	%		0.10	%				0.10	%
10. Capital.
		(in thousands, except per-share amounts)
								%
		12/31/22			12/31/21			Change		9/30/22
	Shareholders' Equity	$	602,110		$	827,102		-27.2	%	$	538,988
	Total Assets		6,950,317			7,461,026		-6.8	%		7,177,025
	Shareholders' Equity/
	Total Assets		8.66	%		11.09	%				7.51	%
	Shareholders' Equity/
	Total Loans		62.82	%		77.43	%				55.05	%
	Tangible Common Equity Ratio		7.03	%		9.60	%				5.91	%
	Common Shares Outstanding		26,913			26,866		0.2	%		26,911
	Common Equity Per Share	$	22.37		$	30.79		-27.3	%	$	20.03
	Market Value Per Common Share		59.01			57.73		2.2	%		52.29
		(shares in thousands)
								%
		Q4'2022			Q4'2021			Change		Q3'2022
	Share Repurchase Programs:
	Total Shares Repurchased		-			-		n/m			-
	Average Repurchase Price		-			-		n/m			-
	Net Shares Issued		(2	)		-		n/m			(15	)
								%
		12/31'22YTD			12/31'21YTD			Change
	Total Shares Repurchased		3			4		n/m
	Average Repurchase Price	$	58.66		$	61.09		n/m
	Net Shares Issued		(47	)		(59	)	n/m
11. Period-End Balance Sheets.
		(unaudited, dollars in thousands)
								%
		12/31/22			12/31/21			Change		9/30/22
	Assets:
	Cash and Due from Banks	$	294,236		$	1,132,085		-74.0	%	$	413,665
	Debt Securities Available for Sale
	Corporate Securities		2,099,955			2,746,735		-23.5	%		2,138,508
	Collateralized Loan Obligations		1,572,883			1,386,355		13.5	%		1,587,622
	Agency Mortgage Backed Securities		286,048			411,726		-30.5	%		296,689
	Securities of U.S. Government sponsored entities		290,853			-		n/m			272,525
	Obligations of States and Political Subdivisions		82,004			93,920		-12.7	%		80,987
	Other Debt Securities Available for Sale		-			119		n/m			-
	Total Debt Securities Available for Sale		4,331,743			4,638,855		-6.6	%		4,376,331
	Debt Securities Held to Maturity
	Agency Mortgage Backed Securities		104,852			148,390		-29.3	%		112,371
	Corporate Securities		721,854			-		n/m			720,154
	Obligations of States and Political Subdivisions (2)		89,207			158,006		-43.5	%		103,742
	Total Debt Securities Held to Maturity (2)		915,913			306,396		198.9	%		936,267
	Loans		958,488			1,068,126		-10.3	%		979,033
	Allowance For Credit Losses on Loans		(20,284	)		(23,514	)	-13.7	%		(21,218	)
	Total Loans, net		938,204			1,044,612		-10.2	%		957,815
	Premises and Equipment, net		28,819			31,155		-7.5	%		29,756
	Identifiable Intangibles, net		583			835		-30.2	%		644
	Goodwill		121,673			121,673		0.0	%		121,673
	Other Assets		319,146			185,415		72.1	%		340,874
	Total Assets	$	6,950,317		$	7,461,026		-6.8	%	$	7,177,025
	Liabilities and Shareholders' Equity:
	Deposits:
	Noninterest-Bearing	$	2,947,277		$	3,069,080		-4.0	%	$	3,069,907
	Interest-Bearing Transaction		1,273,143			1,260,869		1.0	%		1,338,855
	Savings		1,874,115			1,940,395		-3.4	%		1,949,711
	Time		130,755			143,612		-9.0	%		136,783
	Total Deposits		6,225,290			6,413,956		-2.9	%		6,495,256
	Short-Term Borrowed Funds		57,792			146,246		-60.5	%		76,886
	Other Liabilities		65,125			73,722		-11.7	%		65,895
	Total Liabilities		6,348,207			6,633,924		-4.3	%		6,638,037
	Shareholders' Equity:
	Common Equity:
	Paid-In Capital		475,121			471,043		0.9	%		474,732
	Accumulated Other
	Comprehensive (Loss) Income		(256,105	)		49,664		n/m			(290,797	)
	Retained Earnings		383,094			306,395		25.0	%		355,053
	Total Shareholders' Equity		602,110			827,102		-27.2	%		538,988
	Total Liabilities and
	Shareholders' Equity	$	6,950,317		$	7,461,026		-6.8	%	$	7,177,025
12. Income Statements.
		(unaudited, in thousands except per-share amounts)
								%
		Q4'2022			Q4'2021			Change		Q3'2022
	Interest & Fee Income:
	Loans	$	12,201		$	13,124		-7.0	%	$	12,208
	Equity Securities		153			129		18.6	%		127
	Debt Securities Available for Sale		45,216			27,598		63.8	%		39,100
	Debt Securities Held to Maturity		9,061			1,824		396.8	%		6,625
	Interest-Bearing Cash		2,567			366		601.4	%		2,742
	Total Interest & Fee Income		69,198			43,041		60.8	%		60,802
	Interest Expense:
	Transaction Deposits		96			95		1.1	%		94
	Savings Deposits		280			282		-0.7	%		290
	Time Deposits		87			102		-14.7	%		86
	Short-Term Borrowed Funds		12			25		-52.0	%		17
	Total Interest Expense		475			504		-5.8	%		487
	Net Interest Income		68,723			42,537		61.6	%		60,315
	Provision for Credit Losses		-			-		n/m			-
	Noninterest Income:
	Service Charges		3,484			3,580		-2.7	%		3,737
	Merchant Processing Services		2,701			3,000		-10.0	%		2,925
	Debit Card Fees		1,704			1,727		-1.4	%		1,594
	Trust Fees		754			844		-10.7	%		810
	ATM Processing Fees		646			488		32.4	%		594
	Other Service Fees		416			449		-7.3	%		463
	Financial Services Commissions		103			96		7.3	%		79
	Life Insurance Gains		7			-		n/m			923
	Other Noninterest Income		648			658		-1.5	%		693
	Total Noninterest Income		10,463			10,842		-3.5	%		11,818
	Noninterest Expense:
	Salaries and Benefits		11,482			11,436		0.4	%		11,311
	Occupancy and Equipment		5,218			4,692		11.2	%		5,064
	Outsourced Data Processing		2,390			2,357		1.4	%		2,434
	Limited Partnership Operating Losses		1,431			800		78.9	%		1,431
	Professional Fees		574			757		-24.2	%		582
	Courier Service		700			572		22.4	%		671
	Other Noninterest Expense		3,295			3,298		-0.1	%		3,274
	Total Noninterest Expense		25,090			23,912		4.9	%		24,767
	Income Before Income Taxes		54,096			29,467		83.6	%		47,366
	Income Tax Provision		14,752			7,747		90.4	%		12,606
	Net Income	$	39,344		$	21,720		81.1	%	$	34,760
	Average Common Shares Outstanding		26,912			26,866		0.2	%		26,906
	Diluted Common Shares Outstanding		26,924			26,875		0.2	%		26,916
	Per Common Share Data:
	Basic Earnings	$	1.46		$	0.81		80.2	%	$	1.29
	Diluted Earnings		1.46			0.81		80.2	%		1.29
	Dividends Paid		0.42			0.42		0.0	%		0.42
								%
		12/31'22YTD			12/31'21YTD			Change
	Interest & Fee Income:
	Loans	$	49,682		$	57,558		-13.7	%
	Equity Securities		537			458		17.2	%
	Debt Securities Available for Sale		144,646			105,420		37.2	%
	Debt Securities Held to Maturity		19,101			8,875		115.2	%
	Interest-Bearing Cash		7,790			1,132		588.2	%
	Total Interest & Fee Income		221,756			173,443		27.9	%
	Interest Expense:
	Transaction Deposits		369			378		-2.4	%
	Savings Deposits		1,141			1,067		6.9	%
	Time Deposits		336			432		-22.2	%
	Short-Term Borrowed Funds		79			78		1.3	%
	Total Interest Expense		1,925			1,955		-1.5	%
	Net Interest Income		219,831			171,488		28.2	%
	Provision for Credit Losses		-			-		n/m
	Noninterest Income:
	Service Charges		14,490			13,697		5.8	%
	Merchant Processing Services		11,623			11,998		-3.1	%
	Debit Card Fees (1)		7,879			6,859		14.9	%
	Trust Fees		3,216			3,311		-2.9	%
	ATM Processing Fees		2,160			2,280		-5.3	%
	Other Service Fees		1,808			1,884		-4.0	%
	Financial Services Commissions		417			356		17.1	%
	Life Insurance Gains		930			-		n/m
	Securities Gains		-			34		n/m
	Other Operating		2,598			2,926		-11.2	%
	Total Noninterest Income		45,121			43,345		4.1	%
	Noninterest Expense:
	Salaries and Benefits		46,125			48,011		-3.9	%
	Occupancy and Equipment		19,884			19,139		3.9	%
	Outsourced Data Processing		9,684			9,601		0.9	%
	Limited Partnership Operating Losses		5,724			2,620		118.5	%
	Professional Fees		2,628			3,253		-19.2	%
	Courier Service		2,614			2,177		20.1	%
	Other Operating		12,702			13,005		-2.3	%
	Total Noninterest Expense		99,361			97,806		1.6	%
	Income Before Income Taxes		165,591			117,027		41.5	%
	Income Tax Provision		43,557			30,518		42.7	%
	Net Income	$	122,034		$	86,509		41.1	%
	Average Common Shares Outstanding		26,895			26,855		0.1	%
	Diluted Common Shares Outstanding		26,907			26,870		0.1	%
	Per Common Share Data:
	Basic Earnings	$	4.54		$	3.22		41.0	%
	Diluted Earnings		4.54			3.22		41.0	%
	Dividends Paid		1.68			1.65		1.8	%
	Footnotes and Abbreviations:
	(1) The Company received a $1.2 million reconciling payment from a payments network in the first quarter 2022.
	(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, 2022, $7 thousand at September 30, 2022 and December 31, 2021.
	(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 relatively large 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
	Certain amounts in prior periods have been reclassified to conform to the current presentation.