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Westamerica Bancorporation Reports Third Quarter 2022 Financial Results
المصدر: Nasdaq GlobeNewswire / 20 أكتوبر 2022 11:00:40 America/New_York
SAN RAFAEL, Calif., Oct. 20, 2022 (GLOBE NEWSWIRE) -- Westamerica Bancorporation (Nasdaq: WABC), parent company of Westamerica Bank, generated net income for the third quarter 2022 of $34.8 million and diluted earnings per common share ("EPS") of $1.29, including a life insurance gain equivalent to EPS of $0.03. Third quarter 2022 net income was 37 percent higher than second quarter 2022 net income of $25.3 million and EPS of $0.94.
"Westamerica’s third quarter 2022 results benefited from the Company’s variable-rate bonds, cash and loans, as well as our valuable deposit base. With 47 percent of average deposits represented by non-interest bearing checking accounts and limited reliance on time deposits, the cost of funding our loan and bond portfolios was 0.03 percent in the third quarter 2022, unchanged from the prior quarter. Operating expenses were well controlled and credit quality remained solid,” said Chairman, President and CEO David Payne. “Third quarter 2022 results generated an annualized 17.1 percent return on average common equity. Shareholders were paid a $0.42 per common share dividend during the third quarter 2022,” concluded Payne.
Net interest income on a fully-taxable equivalent (FTE) basis was $60.8 million for the third quarter 2022, compared to $48.0 million for the second quarter 2022. The yield earned on loans and bonds for the third quarter 2022 was 3.47 percent, up from 2.77 percent for the second quarter 2022. The cost of funding the loan and bond portfolios was 0.03 percent for both the third quarter and second quarter of 2022. Variable rate assets at September 30, 2022 included $1.6 billion in collateralized loan obligations for which interest rates reset quarterly, and $304.1 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 third quarter 2022 totaled $11.8 million, including a $923 thousand life insurance gain. Noninterest income for the second quarter 2022 was $11.3 million.
Noninterest expenses for the third quarter 2022 were $24.8 million compared to $24.6 million for the second 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.comFORWARD-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 June 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
September 30, 20221. Net Income Summary. (in thousands except per-share amounts) % Q3'2022 Q3'2021 Change Q2'2022 Net Interest and Fee Income (FTE) $ 60,780 $ 43,952 38.3 % $ 48,033 Provision for Credit Losses - - n/m - Noninterest Income 11,818 11,282 4.8 % 11,264 Noninterest Expense 24,767 24,697 0.3 % 24,629 Income Before Taxes (FTE) 47,831 30,537 56.6 % 34,668 Income Tax Provision (FTE) 13,071 8,474 54.2 % 9,354 Net Income $ 34,760 $ 22,063 57.5 % $ 25,314 Average Common Shares Outstanding 26,906 26,866 0.1 % 26,889 Diluted Average Common Shares 26,916 26,875 0.2 % 26,901 Operating Ratios: Basic Earnings Per Common Share $ 1.29 $ 0.82 57.3 % $ 0.94 Diluted Earnings Per Common Share 1.29 0.82 57.3 % 0.94 Return On Assets (a) 1.85 % 1.22 % 1.37 % Return On Common Equity (a) 17.1 % 11.6 % 12.9 % Net Interest Margin (FTE) (a) 3.44 % 2.60 % 2.74 % Efficiency Ratio (FTE) 34.1 % 44.7 % 41.5 % Dividends Paid Per Common Share $ 0.42 $ 0.41 2.4 % $ 0.42 Common Dividend Payout Ratio 33 % 50 % 45 % % 9/30'22YTD 9/30'21YTD Change Net Interest and Fee Income (FTE) $ 152,620 $ 131,034 16.5 % Provision for Credit Losses - - n/m Noninterest Income (1) 34,658 32,503 6.6 % Noninterest Expense 74,271 73,894 0.5 % Income Before Taxes (FTE) 113,007 89,643 26.1 % Income Tax Provision (FTE) 30,317 24,854 22.0 % Net Income $ 82,690 $ 64,789 27.6 % Average Common Shares Outstanding 26,889 26,851 0.1 % Diluted Average Common Shares 26,901 26,868 0.1 % Operating Ratios: Basic Earnings Per Common Share $ 3.08 $ 2.41 27.8 % Diluted Earnings Per Common Share 3.07 2.41 27.4 % Return On Assets (a) 1.49 % 1.25 % Return On Common Equity (a) 14.0 % 11.6 % Net Interest Margin (FTE) (a) 2.90 % 2.67 % Efficiency Ratio (FTE) 39.7 % 45.2 % Dividends Paid Per Common Share $ 1.26 $ 1.23 2.4 % Common Dividend Payout Ratio 41 % 51 % 2. Net Interest Income. (dollars in thousands) % Q3'2022 Q3'2021 Change Q2'2022 Interest and Fee Income (FTE) $ 61,267 $ 44,444 37.9 % $ 48,516 Interest Expense 487 492 -1.0 % 483 Net Interest and Fee Income (FTE) $ 60,780 $ 43,952 38.3 % $ 48,033 Average Earning Assets $ 7,041,313 $ 6,754,281 4.2 % $ 7,000,862 Average Interest-Bearing Liabilities 3,520,083 3,370,840 4.4 % 3,549,140 Yield on Earning Assets (FTE) (a) 3.47 % 2.63 % 2.77 % Cost of Funds (a) 0.03 % 0.03 % 0.03 % Net Interest Margin (FTE) (a) 3.44 % 2.60 % 2.74 % Interest Expense/Interest-Bearing Liabilities (a) 0.05 % 0.06 % 0.05 % Net Interest Spread (FTE) (a) 3.42 % 2.57 % 2.72 % % 9/30'22YTD 9/30'21YTD Change Interest and Fee Income (FTE) $ 154,070 $ 132,485 16.3 % Interest Expense 1,450 1,451 -0.1 % Net Interest and Fee Income (FTE) $ 152,620 $ 131,034 16.5 % Average Earning Assets $ 7,013,627 $ 6,535,949 7.3 % Average Interest-Bearing Liabilities 3,538,361 3,267,311 8.3 % Yield on Earning Assets (FTE) (a) 2.93 % 2.70 % Cost of Funds (a) 0.03 % 0.03 % Net Interest Margin (FTE) (a) 2.90 % 2.67 % Interest Expense/Interest-Bearing Liabilities (a) 0.05 % 0.06 % Net Interest Spread (FTE) (a) 2.88 % 2.64 % 3. Loans & Other Earning Assets. (average volume, dollars in thousands) % Q3'2022 Q3'2021 Change Q2'2022 Total Assets $ 7,472,304 $ 7,158,462 4.4 % $ 7,420,069 Total Earning Assets 7,041,313 6,754,281 4.2 % 7,000,862 Total Loans 989,033 1,176,114 -15.9 % 1,009,633 Total Commercial Loans 190,325 333,327 -42.9 % 202,585 Paycheck Protection Program (PPP) Loans 10,453 144,641 -92.8 % 20,997 Commercial Loans 179,872 188,686 -4.7 % 181,588 Commercial RE Loans 494,717 543,429 -9.0 % 508,003 Consumer Loans 303,991 299,358 1.5 % 299,045 Total Investment Securities 5,552,588 4,615,540 20.3 % 5,008,929 Debt Securities Available For Sale 4,845,055 4,235,141 14.4 % 4,721,083 Debt Securities Held To Maturity 707,533 380,399 86.0 % 287,846 Total Interest-Bearing Cash 499,692 962,627 -48.1 % 982,300 Loans/Deposits 15.2 % 18.9 % 15.7 % % 9/30'22YTD 9/30'21YTD Change Total Assets $ 7,433,140 $ 6,939,636 7.1 % Total Earning Assets 7,013,627 6,535,949 7.3 % Total Loans 1,009,314 1,227,971 -17.8 % Total Commercial Loans 200,206 380,638 -47.4 % PPP Loans 22,347 180,214 -87.6 % Commercial Loans 177,859 200,424 -11.3 % Commercial RE Loans 508,812 549,639 -7.4 % Consumer Loans 300,296 297,694 0.9 % Total Investment Securities 5,172,003 4,484,084 15.3 % Debt Securities Available For Sale 4,741,400 4,046,289 17.2 % Debt Securities Held To Maturity 430,603 437,795 -1.6 % Total Interest-Bearing Cash 832,310 823,894 1.0 % Loans/Deposits 15.7 % 20.4 % 4. Deposits, Other Interest-Bearing Liabilities & Equity. (average volume, dollars in thousands) % Q3'2022 Q3'2021 Change Q2'2022 Total Deposits $ 6,495,051 $ 6,223,500 4.4 % $ 6,424,202 Noninterest Demand 3,058,662 2,960,207 3.3 % 2,998,360 Interest-Bearing Transaction 1,308,310 1,246,667 4.9 % 1,298,665 Savings 1,989,275 1,864,401 6.7 % 1,985,325 Time greater than $100K 62,014 68,811 -9.9 % 63,790 Time less than $100K 76,790 83,414 -7.9 % 78,062 Total Short-Term Borrowings 83,694 107,547 -22.2 % 123,298 Shareholders' Equity 807,428 755,682 6.8 % 788,078 Demand Deposits/ Total Deposits 47.1 % 47.6 % 46.7 % Transaction & Savings Deposits / Total Deposits 97.9 % 97.6 % 97.8 % % 9/30'22YTD 9/30'21YTD Change Total Deposits $ 6,437,943 $ 6,017,175 7.0 % Noninterest Demand 3,020,892 2,854,936 5.8 % Interest-Bearing Transaction 1,290,850 1,195,762 8.0 % Savings 1,984,931 1,811,711 9.6 % Time greater than $100K 63,318 70,258 -9.9 % Time less than $100K 77,952 84,508 -7.8 % Total Short-Term Borrowings 121,310 105,001 15.5 % Other Borrowed Funds - 71 n/m Shareholders' Equity 790,691 745,382 6.1 % Demand Deposits/ Total Deposits 46.9 % 47.4 % Transaction & Savings Deposits / Total Deposits 97.8 % 97.4 % 5. Interest Yields Earned & Rates Paid. (dollars in thousands) Q3'2022 Average Income/ Yield (a) / Volume Expense Rate (a) Interest & Fee Income Earned Total Earning Assets (FTE) $ 7,041,313 $ 61,267 3.47 % Total Loans (FTE) 989,033 12,298 4.93 % Total Commercial Loans (FTE) 190,325 2,843 5.93 % PPP Loans 10,453 533 20.24 % Commercial Loans (FTE) 179,872 2,310 5.10 % Commercial RE Loans 494,717 5,821 4.67 % Consumer Loans 303,991 3,634 4.74 % Total Investments (FTE) 5,552,588 46,227 3.33 % Total Debt Securities Available For Sale (FTE) 4,845,055 39,388 3.22 % Corporate Securities 2,518,870 17,404 2.76 % Collateralized Loan Obligations 1,600,611 16,355 4.00 % Agency Mortgage Backed Securities 336,392 2,001 2.38 % Securities of U.S. Government sponsored entities 288,538 2,604 3.61 % Obligations of States and Political Subdivisions (FTE) 86,357 660 3.06 % Other Debt Securities Available For Sale (FTE) 14,287 364 10.18 % Total Debt Securities Held To Maturity (FTE) 707,533 6,839 3.87 % Agency Mortgage Backed Securities 117,606 586 1.99 % Corporate Securities 477,881 5,230 4.38 % Obligations of States and Political Subdivisions (FTE) 112,046 1,023 3.65 % Total Interest-Bearing Cash 499,692 2,742 2.15 % Interest Expense Paid Total Earning Assets 7,041,313 487 0.03 % Total Interest-Bearing Liabilities 3,520,083 487 0.05 % Total Interest-Bearing Deposits 3,436,389 470 0.05 % Interest-Bearing Transaction 1,308,310 94 0.03 % Savings 1,989,275 290 0.06 % Time less than $100K 76,790 47 0.24 % Time greater than $100K 62,014 39 0.25 % Total Short-Term Borrowings 83,694 17 0.08 % Net Interest Income and Margin (FTE) $ 60,780 3.44 % Q3'2021 Average Income/ Yield (a) / Volume Expense Rate (a) Interest & Fee Income Earned Total Earning Assets (FTE) $ 6,754,281 $ 44,444 2.63 % Total Loans (FTE) 1,176,114 14,893 5.02 % Total Commercial Loans (FTE) 333,327 3,866 4.60 % PPP Loans 144,641 1,865 5.12 % Commercial Loans (FTE) 188,686 2,001 4.21 % Commercial RE Loans 543,429 7,457 5.44 % Consumer Loans 299,358 3,570 4.73 % Total Investments (FTE) 4,615,540 29,182 2.53 % Total Debt Securities Available For Sale (FTE) 4,235,141 26,736 2.51 % Corporate Securities 2,506,856 17,974 2.87 % Collateralized Loan Obligations 1,148,445 5,631 1.92 % Agency Mortgage Backed Securities 470,250 2,022 1.72 % Obligations of States and Political Subdivisions (FTE) 95,229 747 3.14 % Other Debt Securities Available For Sale (FTE) 14,361 362 10.09 % Total Debt Securities Held To Maturity (FTE) 380,399 2,446 2.57 % Agency Mortgage Backed Securities 178,381 753 1.69 % Obligations of States and Political Subdivisions (FTE) 202,018 1,693 3.35 % Total Interest-Bearing Cash 962,627 369 0.15 % Interest Expense Paid Total Earning Assets 6,754,281 492 0.03 % Total Interest-Bearing Liabilities 3,370,840 492 0.06 % Total Interest-Bearing Deposits 3,263,293 473 0.06 % Interest-Bearing Transaction 1,246,667 101 0.03 % Savings 1,864,401 272 0.06 % Time less than $100K 83,414 42 0.20 % Time greater than $100K 68,811 58 0.33 % Total Short-Term Borrowings 107,547 19 0.07 % Net Interest Income and Margin (FTE) $ 43,952 2.60 % 6. Noninterest Income. (dollars in thousands except per-share amounts) % Q3'2022 Q3'2021 Change Q2'2022 Service Charges on Deposits $ 3,737 $ 3,578 4.4 % $ 3,687 Merchant Processing Services 2,925 3,159 -7.4 % 3,374 Debit Card Fees 1,594 1,740 -8.4 % 1,709 Trust Fees 810 839 -3.5 % 809 ATM Processing Fees 594 573 3.7 % 469 Other Service Fees 463 475 -2.6 % 480 Financial Services Commissions 79 95 -16.8 % 118 Life Insurance Gains 923 - n/m - Other Noninterest Income 693 823 -15.8 % 618 Total Noninterest Income $ 11,818 $ 11,282 4.8 % $ 11,264 Total Revenue (FTE) $ 72,598 $ 55,234 31.4 % $ 59,297 Noninterest Income/Revenue (FTE) 16.3 % 20.4 % 19.0 % Service Charges/Avg. Deposits (a) 0.23 % 0.23 % 0.23 % Total Revenue (FTE) Per Avg. Common Share (a) $ 10.70 $ 8.16 31.2 % $ 8.85 % 9/30'22YTD 9/30'21YTD Change Service Charges on Deposits $ 11,006 $ 10,117 8.8 % Merchant Processing Services 8,922 8,998 -0.8 % Debit Card Fees (1) 6,175 5,132 20.3 % Trust Fees 2,462 2,467 -0.2 % ATM Processing Fees 1,514 1,792 -15.5 % Other Service Fees 1,392 1,435 -3.0 % Financial Services Commissions 314 260 20.8 % Life Insurance Gains 923 - n/m Securities Gains - 34 n/m Other Noninterest Income 1,950 2,268 -14.0 % Total Noninterest Income $ 34,658 $ 32,503 6.6 % Total Revenue (FTE) $ 187,278 $ 163,537 14.5 % Noninterest Income/Revenue (FTE) 18.5 % 19.9 % Service Charges/Avg. Deposits (a) 0.23 % 0.22 % Total Revenue (FTE) Per Avg./Common Share (a) $ 9.31 $ 8.14 14.4 % 7. Noninterest Expense. (dollars in thousands) % Q3'2022 Q3'2021 Change Q2'2022 Salaries & Benefits $ 11,311 $ 11,813 -4.2 % $ 11,412 Occupancy and Equipment 5,064 4,759 6.4 % 4,856 Outsourced Data Processing 2,434 2,429 0.2 % 2,423 Limited Partnership Operating Losses 1,431 620 130.8 % 1,431 Professional Fees 582 724 -19.6 % 736 Courier Service 671 534 25.7 % 661 Other Noninterest Expense 3,274 3,818 -14.2 % 3,110 Total Noninterest Expense $ 24,767 $ 24,697 0.3 % $ 24,629 Noninterest Expense/Avg. Earning Assets (a) 1.40 % 1.45 % 1.41 % Noninterest Expense/Revenues (FTE) 34.1 % 44.7 % 41.5 % % 9/30'22YTD 9/30'21YTD Change Salaries & Benefits $ 34,643 $ 36,575 -5.3 % Occupancy and Equipment 14,666 14,447 1.5 % Outsourced Data Processing 7,294 7,244 0.7 % Limited Partnership Operating Losses 4,293 1,820 135.9 % Professional Fees 2,054 2,496 -17.7 % Courier Service 1,914 1,605 19.3 % Other Noninterest Expense 9,407 9,707 -3.1 % Total Noninterest Expense $ 74,271 $ 73,894 0.5 % Noninterest Expense/Avg. Earning Assets (a) 1.42 % 1.51 % Noninterest Expense/Revenues (FTE) 39.7 % 45.2 % 8. Allowance for Credit Losses. (dollars in thousands) % Q3'2022 Q3'2021 Change Q2'2022 Average Total Loans $ 989,033 $ 1,176,114 -15.9 % $ 1,009,633 Beginning of Period Allowance for Credit Losses on Loans (ACLL) $ 22,313 $ 23,737 -6.0 % $ 22,925 Provision for Credit Losses - 2 n/m - Net ACLL (Losses) Recoveries (1,095 ) 143 n/m (612 ) End of Period ACLL $ 21,218 $ 23,882 -11.2 % $ 22,313 Gross ACLL Recoveries / Gross ACLL Losses 43 % 115 % 57 % Net ACLL Losses (Recoveries) / Avg. Total Loans (a) 0.44 % (0.05 %) 0.24 % % 9/30'22YTD 9/30'21YTD Change Average Total Loans $ 1,009,314 $ 1,227,971 -17.8 % Beginning of Period ACLL $ 23,514 $ 23,854 -1.4 % Provision for Credit Losses - 2 n/m Net ACLL (Losses) Recoveries (2,296 ) 26 n/m End of Period ACLL $ 21,218 $ 23,882 -11.2 % Gross ACLL Recoveries / Gross ACLL Losses 49 % 101 % Net ACLL Losses (Recoveries) / Avg. Total Loans (a) 0.30 % 0.00 % (dollars in thousands) % 9/30/22 9/30/21 Change 6/30/22 Allowance for Credit Losses on Loans $ 21,218 $ 23,882 -11.2 % $ 22,313 Allowance for Credit Losses on HTM Securities 7 7 0.0 % 7 Total Allowance for Credit Losses $ 21,225 $ 23,889 -11.2 % $ 22,320 Allowance for Unfunded Credit Commitments $ 201 $ 101 99.3 % $ 201 9. Credit Quality. (dollars in thousands) % 9/30/22 9/30/21 Change 6/30/22 Nonperforming Loans: Nonperforming Nonaccrual $ 131 $ 801 -83.6 % $ 12 Performing Nonaccrual 66 436 -84.9 % 235 Total Nonaccrual Loans 197 1,237 -84.1 % 247 90+ Days Past Due Accruing Loans 769 537 43.2 % 614 Total Nonperforming Loans $ 966 $ 1,774 -45.5 % $ 861 Total Loans Outstanding $ 979,033 $ 1,132,472 -13.5 % $ 999,768 Total Assets 7,177,025 7,403,573 -3.1 % 7,222,405 Loans: Allowance for Credit Losses on Loans $ 21,218 $ 23,882 -11.2 % $ 22,313 Allowance for Credit Losses on Loans / Loans 2.17 % 2.11 % 2.23 % Nonperforming Loans/Total Loans 0.10 % 0.16 % 0.09 % 10. Capital. (in thousands, except per-share amounts) % 9/30/22 9/30/21 Change 6/30/22 Shareholders' Equity $ 538,988 $ 837,953 -35.7 % $ 617,126 Total Assets 7,177,025 7,403,573 -3.1 % 7,222,405 Shareholders' Equity/Total Assets 7.51 % 11.32 % 8.54 % Shareholders' Equity/Total Loans 55.05 % 73.99 % 61.73 % Tangible Common Equity Ratio 5.91 % 9.83 % 6.97 % Common Shares Outstanding 26,911 26,866 0.2 % 26,896 Common Equity Per Share $ 20.03 $ 31.19 -35.8 % $ 22.94 Market Value Per Common Share 52.29 56.26 -7.1 % 55.66 (shares in thousands) % Q3'2022 Q3'2021 Change Q2'2022 Share Repurchase Programs: Total Shares Repurchased - - n/m - Average Repurchase Price $ - $ - n/m $ - Net Shares Issued (15 ) (1 ) n/m (13 ) % 9/30'22YTD 9/30'21YTD Change Total Shares Repurchased 3 4 n/m Average Repurchase Price $ 58.66 $ 61.09 n/m Net Shares Issued (45 ) (59 ) n/m 11. Period-End Balance Sheets. (unaudited, dollars in thousands) % 9/30/22 9/30/21 Change 6/30/22 Assets: Cash and Due from Banks $ 413,665 $ 1,011,048 -59.1 % $ 753,293 Debt Securities Available For Sale: Corporate Securities 2,138,508 2,668,389 -19.9 % 2,296,853 Collateralized Loan Obligations 1,587,622 1,379,533 15.1 % 1,601,333 Agency Mortgage Backed Securities 296,689 458,053 -35.2 % 331,425 Securities of U.S. Government sponsored entities 272,525 - n/m 290,725 Obligations of States and Political Subdivisions 80,987 96,603 -16.2 % 86,676 Other Debt Securities Available For Sale - 128 n/m 102 Total Debt Securities Available For Sale 4,376,331 4,602,706 -4.9 % 4,607,114 Debt Securities Held To Maturity: Agency Mortgage Backed Securities 112,371 166,955 -32.7 % 121,810 Corporate Securities 720,154 - n/m 181,316 Obligations of States and Political Subdivisions (2) 103,742 189,151 -45.2 % 139,228 Total Debt Securities Held To Maturity (2) 936,267 356,106 162.9 % 442,354 Loans 979,033 1,132,472 -13.5 % 999,768 Allowance For Credit Losses on Loans (21,218 ) (23,882 ) -11.2 % (22,313 ) Total Loans, net 957,815 1,108,590 -13.6 % 977,455 Premises and Equipment, net 29,756 31,603 -5.8 % 30,309 Identifiable Intangibles, net 644 900 -28.4 % 707 Goodwill 121,673 121,673 0.0 % 121,673 Other Assets 340,874 170,947 99.4 % 289,500 Total Assets $ 7,177,025 $ 7,403,573 -3.1 % $ 7,222,405 Liabilities and Shareholders' Equity: Deposits: Noninterest-Bearing $ 3,069,907 $ 2,988,329 2.7 % $ 2,987,725 Interest-Bearing Transaction 1,338,855 1,257,460 6.5 % 1,303,700 Savings 1,949,711 1,894,290 2.9 % 1,983,713 Time 136,783 148,882 -8.1 % 140,453 Total Deposits 6,495,256 6,288,961 3.3 % 6,415,591 Short-Term Borrowed Funds 76,886 119,102 -35.4 % 118,167 Other Liabilities 65,895 157,557 -58.2 % 71,521 Total Liabilities 6,638,037 6,565,620 1.1 % 6,605,279 Shareholders' Equity: Common Equity: Paid-In Capital 474,732 470,711 0.9 % 473,555 Accumulated Other Comprehensive (Loss) Income (290,797 ) 71,284 n/m (188,025 ) Retained Earnings 355,053 295,958 20.0 % 331,596 Total Shareholders' Equity 538,988 837,953 -35.7 % 617,126 Total Liabilities and Shareholders' Equity $ 7,177,025 $ 7,403,573 -3.1 % $ 7,222,405 12. Income Statements. (unaudited, in thousands except per-share amounts) % Q3'2022 Q3'2021 Change Q2'2022 Interest & Fee Income: Loans $ 12,208 $ 14,789 -17.5 % $ 12,331 Equity Securities 127 109 16.5 % 129 Debt Securities Available For Sale 39,100 26,452 47.8 % 31,764 Debt Securities Held To Maturity 6,625 2,091 216.9 % 1,771 Interest-Bearing Cash 2,742 369 643.1 % 2,002 Total Interest & Fee Income 60,802 43,810 38.8 % 47,997 Interest Expense: Transaction Deposits 94 101 -6.9 % 91 Savings Deposits 290 272 6.6 % 288 Time Deposits 86 100 -14.0 % 82 Short-Term Borrowed Funds 17 19 -10.5 % 22 Total Interest Expense 487 492 -1.0 % 483 Net Interest Income 60,315 43,318 39.2 % 47,514 Provision for Credit Losses - - n/m - Noninterest Income: Service Charges 3,737 3,578 4.4 % 3,687 Merchant Processing Services 2,925 3,159 -7.4 % 3,374 Debit Card Fees 1,594 1,740 -8.4 % 1,709 Trust Fees 810 839 -3.5 % 809 ATM Processing Fees 594 573 3.7 % 469 Other Service Fees 463 475 -2.6 % 480 Financial Services Commissions 79 95 -16.8 % 118 Life Insurance Gains 923 - n/m - Other Noninterest Income 693 823 -15.8 % 618 Total Noninterest Income 11,818 11,282 4.8 % 11,264 Noninterest Expense: Salaries and Benefits 11,311 11,813 -4.2 % 11,412 Occupancy and Equipment 5,064 4,759 6.4 % 4,856 Outsourced Data Processing 2,434 2,429 0.2 % 2,423 Limited Partnership Operating Losses 1,431 620 130.8 % 1,431 Professional Fees 582 724 -19.6 % 736 Courier Service 671 534 25.7 % 661 Other Noninterest Expense 3,274 3,818 -14.2 % 3,110 Total Noninterest Expense 24,767 24,697 0.3 % 24,629 Income Before Income Taxes 47,366 29,903 58.4 % 34,149 Income Tax Provision 12,606 7,840 60.8 % 8,835 Net Income $ 34,760 $ 22,063 57.5 % $ 25,314 Average Common Shares Outstanding 26,906 26,866 0.1 % 26,889 Diluted Common Shares Outstanding 26,916 26,875 0.2 % 26,901 Per Common Share Data: Basic Earnings $ 1.29 $ 0.82 57.3 % $ 0.94 Diluted Earnings 1.29 0.82 57.3 % 0.94 Dividends Paid 0.42 0.41 2.4 % 0.42 % 9/30'22YTD 9/30'21YTD Change Interest & Fee Income: Loans $ 37,481 $ 44,434 -15.6 % Equity Securities 384 329 16.7 % Debt Securities Available For Sale 99,430 77,822 27.8 % Debt Securities Held To Maturity 10,040 7,051 42.4 % Interest-Bearing Cash 5,223 766 581.9 % Total Interest & Fee Income 152,558 130,402 17.0 % Interest Expense: Transaction Deposits 273 283 -3.5 % Savings Deposits 861 785 9.7 % Time Deposits 249 330 -24.5 % Short-Term Borrowed Funds 67 53 26.4 % Total Interest Expense 1,450 1,451 -0.1 % Net Interest Income 151,108 128,951 17.2 % Provision for Credit Losses - - n/m Noninterest Income: Service Charges 11,006 10,117 8.8 % Merchant Processing Services 8,922 8,998 -0.8 % Debit Card Fees (1) 6,175 5,132 20.3 % Trust Fees 2,462 2,467 -0.2 % ATM Processing Fees 1,514 1,792 -15.5 % Other Service Fees 1,392 1,435 -3.0 % Financial Services Commissions 314 260 20.8 % Life Insurance Gains 923 - n/m Securities Gains - 34 n/m Other Operating 1,950 2,268 -14.0 % Total Noninterest Income 34,658 32,503 6.6 % Noninterest Expense: Salaries and Benefits 34,643 36,575 -5.3 % Occupancy and Equipment 14,666 14,447 1.5 % Outsourced Data Processing 7,294 7,244 0.7 % Limited Partnership Operating Losses 4,293 1,820 135.9 % Professional Fees 2,054 2,496 -17.7 % Courier Service 1,914 1,605 19.3 % Other Operating 9,407 9,707 -3.1 % Total Noninterest Expense 74,271 73,894 0.5 % Income Before Income Taxes 111,495 87,560 27.3 % Income Tax Provision 28,805 22,771 26.5 % Net Income $ 82,690 $ 64,789 27.6 % Average Common Shares Outstanding 26,889 26,851 0.1 % Diluted Common Shares Outstanding 26,901 26,868 0.1 % Per Common Share Data: Basic Earnings $ 3.08 $ 2.41 27.8 % Diluted Earnings 3.07 2.41 27.4 % Dividends Paid 1.26 1.23 2.4 % 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 $7 thousand at September 30, 2022, June 30, 2022 and September 30, 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. 
