Westamerica Bancorporation

SAN RAFAEL, Calif., April 17, 2025 (GLOBE NEWSWIRE) -- Westamerica Bancorporation (Nasdaq: WABC), parent company of Westamerica Bank, generated net income for the first quarter 2025 of $31.0 million and diluted earnings per common share ("EPS") of $1.16. First quarter 2025 results include a reversal of provision for credit losses of $550 Thousand, which increased EPS $0.01. These results compare to fourth quarter 2024 net income of $31.7 million and EPS of $1.19.

“Westamerica’s first quarter 2025 results benefited from the Company’s valuable low-cost deposit base, of which 46 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 38 percent of total revenues and credit quality remained stable with nonperforming assets of $277 thousand at March 31, 2025,” said Chairman, President and CEO David Payne. “First quarter 2025 results generated an annualized 11.9 percent return on average common equity. Shareholders were paid a $0.44 per common share dividend during the first quarter 2025,” concluded Payne.

Net interest income on a fully-taxable equivalent (FTE) basis was $56.4 million for the first quarter 2025, compared to $59.2 million for the fourth quarter 2024. The annualized yield earned on loans, bonds and cash for the first quarter 2025 was 4.14 percent compared to 4.25 percent for the fourth quarter 2024. The annualized cost of funding the loan and bond portfolios was 0.24 percent for the first quarter 2025 unchanged from the fourth quarter 2024.

The Company recognized a $550 thousand reversal of provision for credit losses in the first quarter 2025. The Allowance for Credit Losses on Loans was $13.9 million at March 31, 2025.

Noninterest income for the first quarter 2025 totaled $10.3 million compared to $10.6 million for the fourth quarter 2024.

Noninterest expenses for the first quarter 2025 were $25.1 million compared to $25.9 million for the fourth quarter 2024. The decline in noninterest expense is primarily due to lower salaries and benefits expense due to fewer business days in the first quarter 2025 compared to the fourth quarter 2024, lower occupancy and equipment expense, and lower estimated operating losses from limited partnership investments.

The income tax provision (FTE) for the first quarter 2025 was $11.1 million compared to $12.3 million for the fourth quarter 2024. The fourth quarter 2024 income tax provision includes a $305 thousand increase to reconcile the 2023 income tax provision to the filed 2023 tax returns.

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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 – Investor Relations Contact
 707-863-6090
 [email protected]

FORWARD-LOOKING INFORMATION:

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

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

Forward-looking statements, by their nature, are subject to risks and uncertainties. A number of factors — many of which are beyond the Company's control — could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. The Company's most recent reports filed with the Securities and Exchange Commission, including the annual report for the year ended December 31, 2024 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 April 17, 2025  WESTAMERICA BANCORPORATION  FINANCIAL HIGHLIGHTS  March 31, 2025   1. Net Income Summary.  (in thousands except per-share amounts) %  Q1'2025 Q1'2024 Change Q4'2024 Net Interest and Loan Fee  Income (FTE) $ 56,390  $ 66,094  -14.7 % $ 59,247  (Reversal of ) Provision  for Credit Losses  (550 )  300  n/m  -  Noninterest Income  10,321   10,097  2.2 %  10,633  Noninterest Expense  25,127   26,099  -3.7 %  25,853  Income Before Taxes (FTE)  42,134   49,792  -15.4 %  44,027  Income Tax Provision (FTE)  11,097   13,375  -17.0 %  12,327  Net Income $ 31,037  $ 36,417  -14.8 % $ 31,700   Average Common Shares  Outstanding  26,642   26,674  -0.1 %  26,699  Diluted Average Common  Shares Outstanding  26,642   26,675  -0.1 %  26,701   Operating Ratios:  Basic Earnings Per Common  Share $ 1.16  $ 1.37  -15.3 % $ 1.19  Diluted Earnings Per  Common Share  1.16   1.37  -15.3 %  1.19  Return On Assets (a)  2.03 %  2.24 %   2.02 % Return On Common  Equity (a)  11.9 %  15.2 %   12.1 % Net Interest Margin (FTE) (a)  3.90 %  4.30 %   4.01 % Efficiency Ratio (FTE)  37.7 %  34.3 %   37.0 %  Dividends Paid Per Common  Share $ 0.44  $ 0.44  0.0 % $ 0.44  Common Dividend Payout  Ratio   38 %  32 %   37 %  2. Net Interest Income.  (dollars in thousands) %  Q1'2025 Q1'2024 Change Q4'2024 Interest and Loan Fee  Income (FTE) $ 59,786  $ 69,095  -13.5 % $ 62,713  Interest Expense  3,396   3,001  13.2 %  3,466  Net Interest and Loan Fee  Income (FTE) $ 56,390  $ 66,094  -14.7 % $ 59,247   Average Earning Assets $ 5,794,836  $ 6,119,368  -5.3 % $ 5,850,620  Average Interest-Bearing  Liabilities  2,770,099   2,955,565  -6.3 %  2,796,675   Yield on Earning Assets  (FTE) (a)  4.14 %  4.50 %   4.25 % Cost of Funds (a)  0.24 %  0.20 %   0.24 % Net Interest Margin (FTE) (a)  3.90 %  4.30 %   4.01 % Interest Expense /  Interest-Bearing  Liabilities (a)  0.50 %  0.41 %   0.49 % Net Interest Spread (FTE) (a)  3.64 %  4.09 %   3.76 %  3. Loans & Other Earning Assets.  (average volume, dollars in thousands) %  Q1'2025 Q1'2024 Change Q4'2024  Total Assets $ 6,187,321  $ 6,525,921  -5.2 % $ 6,243,799  Total Earning Assets  5,794,836   6,119,368  -5.3 %  5,850,620  Total Loans  789,935   853,553  -7.5 %  821,767  Commercial Loans  120,189   133,422  -9.9 %  131,088  Commercial Real Estate  Loans   497,379   488,989  1.7 %  503,546  Consumer Loans  172,367   231,142  -25.4 %  187,133  Total Investment Securities  4,395,565   5,098,539  -13.8 %  4,557,436  Debt Securities Available for  Sale  3,553,755   4,224,474  -15.9 %  3,710,378  Debt Securities Held to  Maturity  841,810   874,065  -3.7 %  847,058  Total Interest-Bearing Cash  609,336   167,276  264.3 %  471,417   Loans / Deposits  15.9 %  15.9 %   16.3 %  4. Deposits, Other Interest-Bearing Liabilities & Equity.  (average volume, dollars in thousands) %  Q1'2025 Q1'2024 Change Q4'2024  Total Deposits $ 4,958,554  $ 5,379,060  -7.8 % $ 5,028,363  Noninterest Demand   2,293,059   2,532,381  -9.5 %  2,342,092  Interest-Bearing Transaction  935,054   1,058,292  -11.6 %  934,876  Savings  1,649,631   1,691,716  -2.5 %  1,666,542  Time greater than $100K  29,460   36,135  -18.5 %  31,541  Time less than $100K  51,350   60,536  -15.2 %  53,312  Total Short-Term Borrowings  104,604   108,886  -3.9 %  110,404  Bank Term Funding Program  Borrowings  -   62,582  n/m  -  Securities Sold under  Repurchase Agreements  104,604   46,304  125.9 %  110,404  Shareholders' Equity  1,055,925   965,840  9.3 %  1,039,017   Demand Deposits /  Total Deposits  46.2 %  47.1 %   46.6 % Transaction & Savings  Deposits / Total Deposits  98.4 %  98.2 %   98.3 %  5. Interest Yields Earned & Rates Paid.  (dollars in thousands)  Q1'2025  Average Income/ Yield (a) /  Volume Expense Rate (a)  Interest & Loan Fee Income Earned:  Total Earning Assets (FTE) $ 5,794,836  $ 59,786  4.14 %  Total Loans (FTE)  789,935   10,744  5.51 %  Commercial Loans (FTE)  120,189   1,845  6.21 %  Commercial Real Estate  Loans   497,379   6,473  5.28 %  Consumer Loans  172,367   2,426  5.70 %  Total Investments (FTE)  4,395,565   42,339  3.85 %  Total Debt Securities  Available for Sale (FTE)  3,553,755   33,753  3.80 %  Corporate Securities  1,991,278   13,522  2.72 %  Collateralized Loan  Obligations  915,873   14,422  6.30 %  Agency Mortgage Backed  Securities  254,126   2,034  3.20 %  Securities of U.S.  Government Sponsored  Entities  311,297   2,777  3.57 %  Obligations of States and  Political Subdivisions  (FTE)  62,651   496  3.17 %  U.S. Treasury Securities  4,303   54  5.13 %  Other Debt Securities  Available for Sale (FTE)  14,227   448  12.60 %  Total Debt Securities Held to  Maturity (FTE)  841,810   8,586  4.08 %  Agency Mortgage Backed  Securities  56,006   329  2.35 %  Corporate Securities  736,089   7,815  4.25 %  Obligations of States and  Political Subdivisions  (FTE)  49,715   442  3.56 %  Total Interest-Bearing Cash  609,336   6,703  4.40 %   Interest Expense Paid:  Total Earning Assets   5,794,836   3,396  0.24 %  Total Interest-Bearing  Liabilities  2,770,099   3,396  0.50 %  Total Interest-Bearing  Deposits  2,665,495   3,229  0.49 %  Interest-Bearing Transaction  935,054   46  0.02 %  Savings  1,649,631   3,128  0.77 %  Time less than $100K  51,350   38  0.30 %  Time greater than $100K  29,460   17  0.24 %  Total Short-Term Borrowings   104,604   167  0.65 %  Securities Sold under  Repurchase Agreements  104,604   167  0.65 %   Net Interest Income and  Margin (FTE)  $ 56,390  3.90 %  (dollars in thousands)  Q1'2024  Average Income/ Yield (a) /  Volume Expense Rate (a)  Interest & Loan Fee Income Earned:  Total Earning Assets (FTE) $ 6,119,368  $ 69,095  4.50 %  Total Loans (FTE)  853,553   11,413  5.38 %  Commercial Loans (FTE)  133,422   2,385  7.19 %  Commercial Real Estate  Loans   488,989   5,911  4.86 %  Consumer Loans  231,142   3,117  5.42 %  Total Investments (FTE)  5,098,539   55,399  4.32 %  Total Debt Securities  Available for Sale (FTE)  4,224,474   46,552  4.38 %  Corporate Securities  2,114,861   14,555  2.75 %  Collateralized Loan  Obligations  1,461,182   26,700  7.23 %  Agency Mortgage Backed  Securities  252,828   1,552  2.45 %  Securities of U.S.  Government sponsored  entities  308,807   2,777  3.60 %  Obligations of States and  Political Subdivisions  (FTE)  72,569   544  3.00 %  Other Debt Securities  Available for Sale (FTE)  14,227   424  11.92 %  Total Debt Securities Held to  Maturity (FTE)  874,065   8,847  4.05 %  Agency Mortgage Backed  Securities  76,062   427  2.25 %  Corporate Securities  729,273   7,816  4.29 %  Obligations of States and  Political Subdivisions  (FTE)  68,730   604  3.52 %  Total Interest-Bearing Cash  167,276   2,283  5.40 %   Interest Expense Paid:  Total Earning Assets   6,119,368   3,001  0.20 %  Total Interest-Bearing  Liabilities  2,955,565   3,001  0.41 %  Total Interest-Bearing  Deposits  2,846,679   2,106  0.30 %  Interest-Bearing Transaction  1,058,292   119  0.05 %  Savings  1,691,716   1,917  0.46 %  Time less than $100K  60,536   49  0.33 %  Time greater than $100K  36,135   21  0.23 %  Total Short-Term Borrowings   108,886   895  3.30 %  Bank Term Funding Program  Borrowings  62,582   843  5.40 %  Securities Sold under  Repurchase Agreements  46,304   52  0.45 %   Net Interest Income and  Margin (FTE)  $ 66,094  4.30 %   6. Noninterest Income.  (dollars in thousands except per-share amounts) %  Q1'2025 Q1'2024 Change Q4'2024 Service Charges on Deposit  Accounts $ 3,381  $ 3,470  -2.6 % $ 3,501  Merchant Processing  Services  2,733   2,507  9.0 %  2,735  Debit Card Fees  1,581   1,543  2.5 %  1,902  Trust Fees  899   794  13.2 %  867  ATM Processing Fees  463   591  -21.7 %  506  Other Service Fees  429   438  -2.1 %  428  Life Insurance Gains  102   -  n/m  -  Other Noninterest Income  733   754  -2.8 %  694  Total Noninterest Income $ 10,321  $ 10,097  2.2 % $ 10,633   Operating Ratios:  Total Revenue (FTE) $ 66,711  $ 76,191  -12.4 % $ 69,880  Noninterest Income /  Revenue (FTE)  15.5 %  13.3 %   15.2 % Service Charges /  Avg. Deposits (a)  0.28 %  0.26 %   0.28 % Total Revenue (FTE) Per  Avg. Common Share (a) $ 10.16  $ 11.49  -11.6 % $ 10.41   7. Noninterest Expense.  (dollars in thousands) %  Q1'2025 Q1'2024 Change Q4'2024  Salaries and Related Benefits $ 12,126  $ 12,586  -3.7 % $ 12,461  Occupancy and Equipment  5,038   5,040  -0.0 %  5,219  Outsourced Data Processing  2,697   2,536  6.3 %  2,610  Limited Partnership  Operating Losses  915   1,440  -36.5 %  1,095  Professional Fees  395   402  -1.7 %  369  Courier Service  688   649  6.0 %  692  Other Noninterest Expense  3,268   3,446  -5.2 %  3,407  Total Noninterest Expense $ 25,127  $ 26,099  -3.7 % $ 25,853   Operating Ratios:  Noninterest Expense /  Avg. Earning Assets (a)  1.76 %  1.72 %   1.76 % Noninterest Expense /  Revenues (FTE)  37.7 %  34.3 %   37.0 %  8. Allowance for Credit Losses.  (dollars in thousands) %  Q1'2025 Q1'2024 Change Q4'2024  Average Total Loans $ 789,935  $ 853,553  -7.5 % $ 821,767   Beginning of Period  Allowance for Credit  Losses on Loans (ACLL) $ 14,780  $ 16,867  -12.4 % $ 15,318  (Reversal of ) Provision  for Credit Losses  (550 )  300  n/m  -  Net ACLL Losses  (316 )  (1,288 ) -75.5 %  (538 ) End of Period ACLL $ 13,914  $ 15,879  -12.4 % $ 14,780   Gross ACLL Recoveries /  Gross ACLL Losses   82 %  36 %   63 % Net ACLL Losses /  Avg. Total Loans (a)  -0.16 %  -0.61 %   -0.26 %  (dollars in thousands) %  3/31/25 3/31/24 Change 12/31/24 Allowance for Credit Losses  on Loans $ 13,914  $ 15,879  -12.4 % $ 14,780  Allowance for Credit Losses  on Held to Maturity  Securities  1   1  0.0 %  1  Total Allowance for Credit  Losses $ 13,915  $ 15,880  -12.4 % $ 14,781   Allowance for Unfunded  Credit Commitments $ 201  $ 201  0.0 % $ 201   9. Credit Quality.  (dollars in thousands) %  3/31/25 3/31/24 Change 12/31/24 Nonperforming Loans:  Nonperforming Nonaccrual  Loans $ -   $ 957  n/m $ 201  Performing Nonaccrual  Loans  -   1  n/m  -  Total Nonaccrual Loans  -   958  n/m  201  Accruing Loans 90+ Days  Past Due  277   525  -47.2 %  534  Total Nonperforming Loans $ 277  $ 1,483  -81.3 % $ 735   Total Loans Outstanding  $ 771,030  $ 844,677  -8.7 % $ 820,300   Total Assets   5,966,624   6,464,685  -7.7 %  6,076,274   Loans:  Allowance for Credit Losses  on Loans $ 13,914  $ 15,879  -12.4 % $ 14,780  Allowance for Credit Losses  on Loans / Loans  1.80 %  1.88 %   1.80 % Nonperforming Loans /  Total Loans  0.04 %  0.18 %   0.09 %  10. Liquidity.   At March 31, 2025, the Company had $727,336 thousand in cash balances. During the twelve months ending March 31, 2026, the Company expects to receive $265,000 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, 2025, the Company’s debt securities which qualify as collateral for borrowing totaled $3,498,151 thousand. In the ordinary course of business, the Company pledges debt securities as collateral for certain depository customers; at March 31, 2025, the Company had pledged $713,752 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, 2025, the Company had pledged $724,966 thousand in debt securities at the Federal Reserve Bank. During the three months ended March 31, 2025, the Company’s average borrowings from the Federal Reserve Bank and other correspondent banks were $-0- thousand and $-0- thousand, respectively, and at March 31, 2025, the Company had no borrowings from the Federal Reserve Bank or other correspondent banks. At March 31, 2025, the Company had access to borrowing from the Federal Reserve up to $724,966 thousand based on collateral pledged at March 31, 2025. At March 31, 2025, the Company’s estimated unpledged collateral qualifying debt securities totaled $1,615,433 thousand. Debt securities eligible as collateral are shown at market value.  (in thousands) 3/31/25 Debt Securities Eligible as  Collateral:  Corporate Securities    $ 2,517,299  Collateralized Loan  Obligations rated AAA     269,817  Obligations of States and  Political Subdivisions     109,065  Agency Mortgage Backed  Securities     302,248  Securities of U.S. Government  Sponsored Entities     299,722  Total Debt Securities Eligible  as Collateral    $ 3,498,151   Debt Securities Pledged  as Collateral:  Debt Securities Pledged  at the Federal Reserve Bank    ($ 724,966 ) Deposits by Public Entities     (713,752 ) Securities Sold under  Repurchase Agreements     (439,287 ) Other     (4,713 ) Total Debt Securities Pledged  as Collateral    ($ 1,882,718 )  Estimated Debt Securities  Available to Pledge    $ 1,615,433   11. Capital.  (in thousands, except per-share amounts) %  3/31/25 3/31/24 Change 12/31/24  Shareholders' Equity $ 923,138  $ 791,691  16.6 % $ 889,957  Total Assets  5,966,624   6,464,685  -7.7 %  6,076,274  Shareholders' Equity/  Total Assets  15.47 %  12.25 %   14.65 % Shareholders' Equity/  Total Loans  119.73 %  93.73 %   108.49 % Tangible Common Equity  Ratio  13.71 %  10.56 %   12.90 % Common Shares Outstanding  26,360   26,678  -1.2 %  26,708  Common Equity Per Share $ 35.02  $ 29.68  18.0 % $ 33.32  Market Value Per Common  Share  50.63   48.88  3.6 %  52.46   (shares in thousands) %  Q1'2025 Q1'2024 Change Q4'2024 Share Retirements (Issuances):  Total Shares Retired  361   4  n/m  -  Average Retirement Price $ 50.96  $ 45.58  n/m $ -  Net Shares Retired (Issued)  348   (7 ) n/m  (22 )  12. Period-End Balance Sheets.  (unaudited, dollars in thousands) %  3/31/25 3/31/24 Change 12/31/24 Assets:  Cash and Due from Banks $ 727,336  $ 434,250  67.5 % $ 601,494   Debt Securities Available for  Sale:  Corporate Securities  1,802,791   1,879,980  -4.1 %  1,835,937  Collateralized Loan  Obligations  822,111   1,420,584  -42.1 %  982,589  Agency Mortgage Backed  Securities  250,844   225,564  11.2 %  218,026  Securities of U.S.  Government Sponsored  Entities  299,722   292,583  2.4 %  292,117  Obligations of States and  Political Subdivisions  60,581   70,466  -14.0 %  62,186  U.S. Treasury Securities  -   -  n/m  4,955  Total Debt Securities  Available for Sale  3,236,049   3,889,177  -16.8 %  3,395,810   Debt Securities Held to  Maturity:  Agency Mortgage Backed  Securities  53,528   73,023  -26.7 %  57,927  Corporate Securities  737,146   730,350  0.9 %  735,447  Obligations of States and  Political Subdivisions (1)  48,674   65,352  -25.5 %  51,260  Total Debt Securities  Held to Maturity (1)  839,348   868,725  -3.4 %  844,634   Loans  771,030   844,677  -8.7 %  820,300  Allowance For Credit Losses  on Loans  (13,914 )  (15,879 ) -12.4 %  (14,780 ) Total Loans, net  757,116   828,798  -8.6 %  805,520   Premises and Equipment, net  25,722   26,458  -2.8 %  26,133  Identifiable Intangibles, net  72   291  -75.2 %  125  Goodwill   121,673   121,673  0.0 %  121,673  Other Assets  259,308   295,313  -12.2 %  280,885   Total Assets $ 5,966,624  $ 6,464,685  -7.7 % $ 6,076,274   Liabilities and Shareholders'  Equity:  Deposits:  Noninterest-Bearing $ 2,241,802  $ 2,514,161  -10.8 % $ 2,333,389  Interest-Bearing Transaction  920,461   1,066,038  -13.7 %  953,863  Savings  1,633,445   1,681,921  -2.9 %  1,642,360  Time  78,387   92,805  -15.5 %  82,238  Total Deposits  4,874,095   5,354,925  -9.0 %  5,011,850   Bank Term Funding  Program Borrowings  -   200,000  n/m  -  Securities Sold under  Repurchase Agreements  113,219   50,334  124.9 %  120,322  Total Short-Term  Borrowed Funds  113,219   250,334  -54.8 %  120,322   Other Liabilities  56,172   67,735  -17.1 %  54,145  Total Liabilities  5,043,486   5,672,994  -11.1 %  5,186,317   Shareholders' Equity:  Common Equity:  Paid-In Capital  470,844   473,989  -0.7 %  476,506  Accumulated Other  Comprehensive Loss  (136,768 )  (196,857 ) -30.5 %  (168,104 ) Retained Earnings  589,062   514,559  14.5 %  581,555  Total Shareholders' Equity  923,138   791,691  16.6 %  889,957   Total Liabilities and  Shareholders' Equity $ 5,966,624  $ 6,464,685  -7.7 % $ 6,076,274   13. Income Statements.  (unaudited, in thousands except per-share amounts) %  Q1'2025 Q1'2024 Change Q4'2024 Interest and Loan Fee Income:  Loans $ 10,669  $ 11,324  -5.8 % $ 11,167  Equity Securities  195   174  12.1 %  195  Debt Securities Available  for Sale  33,430   46,243  -27.7 %  36,843  Debt Securities Held to  Maturity  8,494   8,722  -2.6 %  8,538  Interest-Bearing Cash  6,703   2,283  193.6 %  5,659  Total Interest and Loan  Fee Income  59,491   68,746  -13.5 %  62,402   Interest Expense:  Transaction Deposits  46   119  -61.3 %  46  Savings Deposits  3,128   1,917  63.2 %  3,148  Time Deposits  55   70  -21.4 %  68  Bank Term Funding Program  Borrowings  -   843  n/m  -  Securities Sold under  Repurchase Agreements  167   52  222.1 %  204  Total Interest Expense  3,396   3,001  13.2 %  3,466   Net Interest and Loan  Fee Income  56,095   65,745  -14.7 %  58,936   (Reversal of) Provision  for Credit Losses  (550 )  300  n/m  -   Noninterest Income:  Service Charges on Deposit  Accounts  3,381   3,470  -2.6 %  3,501  Merchant Processing  Services  2,733   2,507  9.0 %  2,735  Debit Card Fees  1,581   1,543  2.5 %  1,902  Trust Fees  899   794  13.2 %  867  ATM Processing Fees  463   591  -21.7 %  506  Other Service Fees  429   438  -2.1 %  428  Life Insurance Gains  102   -  n/m  -  Other Noninterest Income  733   754  -2.8 %  694  Total Noninterest Income  10,321   10,097  2.2 %  10,633   Noninterest Expense:  Salaries and Related Benefits  12,126   12,586  -3.7 %  12,461  Occupancy and Equipment  5,038   5,040  -0.0 %  5,219  Outsourced Data Processing  2,697   2,536  6.3 %  2,610  Limited Partnership  Operating Losses  915   1,440  -36.5 %  1,095  Professional Fees  395   402  -1.7 %  369  Courier Service  688   649  6.0 %  692  Other Noninterest Expense  3,268   3,446  -5.2 %  3,407  Total Noninterest Expense  25,127   26,099  -3.7 %  25,853   Income Before Income Taxes  41,839   49,443  -15.4 %  43,716  Income Tax Provision  10,802   13,026  -17.1 %  12,016  Net Income $ 31,037  $ 36,417  -14.8 % $ 31,700   Average Common Shares  Outstanding  26,642   26,674  -0.1 %  26,699  Diluted Average Common  Shares Outstanding  26,642   26,675  -0.1 %  26,701   Per Common Share Data:  Basic Earnings $ 1.16  $ 1.37  -15.3 % $ 1.19  Diluted Earnings  1.16   1.37  -15.3 %  1.19  Dividends Paid  0.44   0.44  0.0 %  0.44   Footnotes and Abbreviations:  (1) 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, 2025, December 31, 2024 and March 31, 2024.  (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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