Westamerica Bancorporation(WABC) - 2024 Q2 - Quarterly Results

Executive Summary Q2 2024 Performance Overview Westamerica Bancorporation reported net income of $35.5 million and diluted EPS of $1.33 for Q2 2024, a slight decrease from Q1 2024, while maintaining low-cost operating principles with a 0.35% annualized cost of funding and an efficiency ratio of 35% Q2 2024 Key Financial Highlights (vs. Q1 2024) | Metric | Q2 2024 | Q1 2024 | Change | | :-------------------------------- | :------ | :------ | :----- | | Net Income | $35.5 million | $36.4 million | -2.5% | | Diluted EPS | $1.33 | $1.37 | -2.9% | | Annualized Cost of Funding | 0.35% | 0.20% | +0.15 pp | | Efficiency Ratio | 35% | 34.3% | +0.7 pp | | Return on Average Common Equity (annualized) | 14.4% | 15.2% | -0.8 pp | | Dividends Paid Per Common Share | $0.44 | $0.44 | 0.0% | - No provision for credit losses was recognized in Q2 2024, benefiting from $73 thousand of net loan recoveries and low nonperforming loans ($1.6 million at June 30, 2024)[2][4] - Noninterest income increased to $10.5 million in Q2 2024 from $10.1 million in Q1 2024, driven by higher merchant processing and debit card fees[4] Forward-Looking Information Nature and Risks of Forward-Looking Statements This section clarifies that the press release may contain forward-looking statements, identifiable by specific terminology, which are inherently subject to risks and uncertainties, and the company does not commit to updating these statements - Forward-looking statements are identified by words like 'believe,' 'expect,' 'anticipate,' 'intend,' 'plan,' 'estimate,' or future/conditional verbs[6] - Risks and uncertainties, including credit, interest rate, operational, liquidity, and market risks, as well as changes in business conditions, competition, and regulations, could cause actual results to differ from forward-looking statements[7] - The Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after their creation[8] Financial Highlights 1. Net Income Summary Westamerica Bancorporation's net income for Q2 2024 was $35.46 million, an 11.9% decrease YoY and 2.6% decrease QoQ, with diluted EPS following a similar trend and year-to-date net income also declining by 10.9% Net Income Summary (QoQ and YoY) | Metric | Q2'2024 (in thousands) | Q2'2023 (in thousands) | % Change (YoY) | Q1'2024 (in thousands) | % Change (QoQ) | | :-------------------------------- | :------ | :------ | :------------- | :------ | :------------- | | Net Interest and Loan Fee Income (FTE) | $64,100 | $70,281 | -8.8% | $66,094 | -3.0% | | Provision for Credit Losses | - | - | n/m | $300 | n/m | | Noninterest Income | $10,500 | $10,700 | -1.9% | $10,097 | 4.0% | | Noninterest Expense | $26,130 | $25,839 | 1.1% | $26,099 | 0.1% | | Net Income | $35,462 | $40,248 | -11.9% | $36,417 | -2.6% | | Diluted EPS | $1.33 | $1.51 | -11.9% | $1.37 | -2.9% | | Return On Assets (a) | 2.18% | 2.35% | -0.17 pp | 2.24% | -0.06 pp | | Return On Common Equity (a) | 14.4% | 18.4% | -4.0 pp | 15.2% | -0.8 pp | | Net Interest Margin (FTE) (a) | 4.15% | 4.34% | -0.19 pp | 4.30% | -0.15 pp | | Efficiency Ratio (FTE) | 35.0% | 31.9% | +3.1 pp | 34.3% | +0.7 pp | | Dividends Paid Per Common Share | $0.44 | $0.42 | 4.8% | $0.44 | 0.0% | Net Income Summary (YTD) | Metric | 6/30'24 YTD (in thousands) | 6/30'23 YTD (in thousands) | % Change | | :-------------------------------- | :---------- | :---------- | :------- | | Net Interest and Loan Fee Income (FTE) | $130,194 | $139,843 | -6.9% | | Provision (Reversal of Provision) for Credit Losses | $300 | ($1,550) | n/m | | Noninterest Income | $20,597 | $21,249 | -3.1% | | Noninterest Expense | $52,229 | $52,049 | 0.3% | | Net Income | $71,879 | $80,699 | -10.9% | | Diluted EPS | $2.69 | $3.02 | -10.9% | | Return On Assets (a) | 2.21% | 2.33% | -0.12 pp | | Return On Common Equity (a) | 14.8% | 18.7% | -3.9 pp | | Net Interest Margin (FTE) (a) | 4.23% | 4.26% | -0.03 pp | | Efficiency Ratio (FTE) | 34.6% | 32.3% | +2.3 pp | | Dividends Paid Per Common Share | $0.88 | $0.84 | 4.8% | 2. Net Interest and Loan Fee Income (FTE) Net interest and loan fee income (FTE) decreased by 8.8% YoY and 3.0% QoQ in Q2 2024, primarily due to a significant increase in interest expense, which led to a decline in net interest margin despite a stable yield on earning assets Net Interest and Loan Fee Income (FTE) - Quarterly | Metric | Q2'2024 (in thousands) | Q2'2023 (in thousands) | % Change (YoY) | Q1'2024 (in thousands) | % Change (QoQ) | | :-------------------------------- | :------ | :------ | :------------- | :------ | :------------- | | Interest and Loan Fee Income (FTE) | $69,407 | $70,888 | -2.1% | $69,095 | 0.45% | | Interest Expense | $5,307 | $607 | 774.3% | $3,001 | 76.8% | | Net Interest and Loan Fee Income (FTE) | $64,100 | $70,281 | -8.8% | $66,094 | -3.0% | | Average Earning Assets | $6,145,626 | $6,457,270 | -4.8% | $6,119,368 | 0.43% | | Yield on Earning Assets (FTE) (a) | 4.50% | 4.38% | +0.12 pp | 4.50% | 0.00 pp | | Cost of Funds (a) | 0.35% | 0.04% | +0.31 pp | 0.20% | +0.15 pp | | Net Interest Margin (FTE) (a) | 4.15% | 4.34% | -0.19 pp | 4.30% | -0.15 pp | Net Interest and Loan Fee Income (FTE) - YTD | Metric | 6/30'24 YTD (in thousands) | 6/30'23 YTD (in thousands) | % Change | | :-------------------------------- | :---------- | :---------- | :------- | | Interest and Loan Fee Income (FTE) | $138,502 | $140,921 | -1.7% | | Interest Expense | $8,308 | $1,078 | 670.7% | | Net Interest and Loan Fee Income (FTE) | $130,194 | $139,843 | -6.9% | | Average Earning Assets | $6,132,497 | $6,560,639 | -6.5% | | Yield on Earning Assets (FTE) (a) | 4.50% | 4.29% | +0.21 pp | | Cost of Funds (a) | 0.27% | 0.03% | +0.24 pp | | Net Interest Margin (FTE) (a) | 4.23% | 4.26% | -0.03 pp | 3. Loans & Other Earning Assets Total earning assets decreased by 4.8% YoY and 0.4% QoQ in Q2 2024, driven by a significant 9.6% YoY decline in total loans, particularly consumer loans, while total interest-bearing cash saw a substantial 120.1% YoY increase Loans & Other Earning Assets - Quarterly Averages | Metric | Q2'2024 (in thousands) | Q2'2023 (in thousands) | % Change (YoY) | Q1'2024 (in thousands) | % Change (QoQ) | | :-------------------------- | :---------- | :---------- | :------------- | :---------- | :------------- | | Total Earning Assets | $6,145,626 | $6,457,270 | -4.8% | $6,119,368 | 0.43% | | Total Loans | $838,016 | $926,795 | -9.6% | $853,553 | -1.8% | | Commercial Loans | $133,605 | $157,975 | -15.4% | $133,422 | 0.1% | | Commercial Real Estate Loans | $487,209 | $491,902 | -1.0% | $488,989 | -0.4% | | Consumer Loans | $217,202 | $276,918 | -21.6% | $231,142 | -6.0% | | Total Investment Securities | $4,944,191 | $5,365,377 | -7.9% | $5,098,539 | -3.0% | | Total Interest-Bearing Cash | $363,419 | $165,098 | 120.1% | $167,276 | 117.2% | | Loans / Deposits | 16.1% | 16.0% | +0.1 pp | 15.9% | +0.2 pp | Loans & Other Earning Assets - YTD Averages | Metric | 6/30'24 YTD (in thousands) | 6/30'23 YTD (in thousands) | % Change | | :-------------------------- | :---------- | :---------- | :------- | | Total Earning Assets | $6,132,497 | $6,560,639 | -6.5% | | Total Loans | $845,785 | $936,277 | -9.7% | | Commercial Loans | $133,514 | $161,647 | -17.4% | | Commercial Real Estate Loans | $488,099 | $492,514 | -0.9% | | Consumer Loans | $224,172 | $282,116 | -20.5% | | Total Investment Securities | $5,021,365 | $5,456,572 | -8.0% | | Total Interest-Bearing Cash | $265,347 | $167,790 | 58.1% | | Loans / Deposits | 16.0% | 15.8% | +0.2 pp | 4. Deposits, Other Interest-Bearing Liabilities & Equity Total deposits decreased by 10.3% YoY and 3.3% QoQ in Q2 2024, with noninterest demand deposits declining by 9.7% YoY, while shareholders' equity increased significantly by 12.9% YoY and 2.6% QoQ, and total short-term borrowings rose substantially due to Bank Term Funding Program borrowings Deposits, Other Interest-Bearing Liabilities & Equity - Quarterly Averages | Metric | Q2'2024 (in thousands) | Q2'2023 (in thousands) | % Change (YoY) | Q1'2024 (in thousands) | % Change (QoQ) | | :-------------------------------- | :---------- | :---------- | :------------- | :---------- | :------------- | | Total Deposits | $5,202,620 | $5,797,504 | -10.3% | $5,379,060 | -3.3% | | Noninterest Demand | $2,485,023 | $2,751,319 | -9.7% | $2,532,381 | -1.9% | | Interest-Bearing Transaction | $981,703 | $1,159,653 | -15.3% | $1,058,292 | -7.2% | | Savings | $1,642,806 | $1,763,410 | -6.8% | $1,691,716 | -2.9% | | Time greater than $100K | $34,721 | $53,901 | -35.6% | $36,135 | -3.9% | | Time less than $100K | $58,367 | $69,221 | -15.7% | $60,536 | -3.6% | | Total Short-Term Borrowings | $284,189 | $98,079 | 189.7% | $108,886 | 160.9% | | Bank Term Funding Program Borrowings | $200,000 | - | n/m | $62,582 | 219.6% | | Shareholders' Equity | $990,927 | $877,964 | 12.9% | $965,840 | 2.6% | | Demand Deposits / Total Deposits | 47.8% | 47.5% | +0.3 pp | 47.1% | +0.7 pp | Deposits, Other Interest-Bearing Liabilities & Equity - YTD Averages | Metric | 6/30'24 YTD (in thousands) | 6/30'23 YTD (in thousands) | % Change | | :-------------------------------- | :---------- | :---------- | :------- | | Total Deposits | $5,290,840 | $5,928,983 | -10.8% | | Noninterest Demand | $2,508,702 | $2,801,183 | -10.4% | | Interest-Bearing Transaction | $1,019,998 | $1,196,342 | -14.7% | | Savings | $1,667,261 | $1,805,187 | -7.6% | | Time greater than $100K | $35,427 | $55,755 | -36.5% | | Time less than $100K | $59,452 | $70,516 | -15.7% | | Total Short-Term Borrowings | $196,538 | $87,516 | 124.6% | | Bank Term Funding Program Borrowings | $131,291 | - | n/m | | Shareholders' Equity | $978,384 | $868,272 | 12.7% | | Demand Deposits / Total Deposits | 47.4% | 47.2% | +0.2 pp | 5. Interest Yields Earned & Rates Paid In Q2 2024, the yield on total earning assets (FTE) increased to 4.50% YoY, but the cost of funds significantly rose to 0.35% from 0.04% YoY, impacting the net interest margin, and the interest expense on total interest-bearing liabilities sharply increased to 0.71% Interest Yields Earned & Rates Paid - Q2 2024 vs Q2 2023 | Metric | Q2'2024 Yield (a) / Rate (a) | Q2'2023 Yield (a) / Rate (a) | Change (pp) | | :-------------------------------- | :--------------------------- | :--------------------------- | :---------- | | Total Earning Assets (FTE) Yield | 4.50% | 4.38% | +0.12 | | Total Loans (FTE) Yield | 5.49% | 5.17% | +0.32 | | Total Investments (FTE) Yield | 4.27% | 4.22% | +0.05 | | Total Interest-Bearing Liabilities Rate | 0.71% | 0.08% | +0.63 | | Total Interest-Bearing Deposits Rate | 0.36% | 0.08% | +0.28 | | Total Short-Term Borrowings Rate | 4.02% | 0.10% | +3.92 | | Bank Term Funding Program Borrowings Rate | 5.40% | - | n/m | | Net Interest Margin (FTE) | 4.15% | 4.34% | -0.19 | 6. Noninterest Income Total noninterest income for Q2 2024 was $10.5 million, a slight decrease of 1.9% YoY but an increase of 4.0% QoQ, primarily driven by higher merchant processing services and debit card fees, while year-to-date noninterest income decreased by 3.1% YoY Noninterest Income - Quarterly | Metric | Q2'2024 (in thousands) | Q2'2023 (in thousands) | % Change (YoY) | Q1'2024 (in thousands) | % Change (QoQ) | | :-------------------------- | :------ | :------ | :------------- | :------ | :------------- | | Service Charges on Deposit Accounts | $3,469 | $3,459 | 0.3% | $3,470 | 0.0% | | Merchant Processing Services | $2,733 | $2,869 | -4.7% | $2,507 | 9.0% | | Debit Card Fees | $1,706 | $1,759 | -3.0% | $1,543 | 10.6% | | Trust Fees | $811 | $810 | 0.1% | $794 | 2.1% | | ATM Processing Fees | $540 | $702 | -23.1% | $591 | -8.7% | | Other Noninterest Income | $791 | $768 | 3.0% | $754 | 4.9% | | Total Noninterest Income | $10,500 | $10,700 | -1.9% | $10,097 | 4.0% | Noninterest Income - YTD | Metric | 6/30'24 YTD (in thousands) | 6/30'23 YTD (in thousands) | % Change | | :-------------------------- | :---------- | :---------- | :------- | | Service Charges on Deposit Accounts | $6,939 | $6,924 | 0.2% | | Merchant Processing Services | $5,240 | $5,506 | -4.8% | | Debit Card Fees | $3,249 | $3,401 | -4.5% | | Trust Fees | $1,605 | $1,575 | 1.9% | | ATM Processing Fees | $1,131 | $1,356 | -16.6% | | Other Noninterest Income | $1,545 | $1,755 | -12.0% | | Total Noninterest Income | $20,597 | $21,249 | -3.1% | 7. Noninterest Expense Total noninterest expense remained relatively stable at $26.13 million in Q2 2024, a 1.1% increase YoY and 0.1% increase QoQ, with salaries and related benefits rising by 5.5% YoY, while the efficiency ratio (FTE) increased to 35.0% Noninterest Expense - Quarterly | Metric | Q2'2024 (in thousands) | Q2'2023 (in thousands) | % Change (YoY) | Q1'2024 (in thousands) | % Change (QoQ) | | :-------------------------- | :------ | :------ | :------------- | :------ | :------------- | | Salaries and Related Benefits | $12,483 | $11,828 | 5.5% | $12,586 | -0.8% | | Occupancy and Equipment | $5,158 | $5,012 | 2.9% | $5,040 | 2.3% | | Outsourced Data Processing | $2,511 | $2,488 | 0.9% | $2,536 | -1.0% | | Professional Fees | $362 | $485 | -25.4% | $402 | -9.9% | | Courier Service | $686 | $611 | 12.3% | $649 | 5.7% | | Other Noninterest Expense | $3,490 | $3,975 | -12.2% | $3,446 | 1.3% | | Total Noninterest Expense | $26,130 | $25,839 | 1.1% | $26,099 | 0.1% | | Noninterest Expense / Revenues (FTE) | 35.0% | 31.9% | +3.1 pp | 34.3% | +0.7 pp | Noninterest Expense - YTD | Metric | 6/30'24 YTD (in thousands) | 6/30'23 YTD (in thousands) | % Change | | :-------------------------- | :---------- | :---------- | :------- | | Salaries and Related Benefits | $25,069 | $23,895 | 4.9% | | Occupancy and Equipment | $10,198 | $10,497 | -2.8% | | Outsourced Data Processing | $5,047 | $4,932 | 2.3% | | Professional Fees | $764 | $961 | -20.5% | | Courier Service | $1,335 | $1,226 | 8.9% | | Other Noninterest Expense | $6,936 | $7,664 | -9.5% | | Total Noninterest Expense | $52,229 | $52,049 | 0.3% | | Noninterest Expense / Revenues (FTE) | 34.6% | 32.3% | +2.3 pp | 8. Allowance for Credit Losses The Allowance for Credit Losses on Loans (ACLL) at the end of Q2 2024 was $15.95 million, a 13.7% decrease YoY but a slight increase from $15.88 million QoQ, with no provision for credit losses recorded in Q2 2024 due to net loan recoveries Allowance for Credit Losses on Loans (ACLL) - Quarterly | Metric | Q2'2024 (in thousands) | Q2'2023 (in thousands) | % Change (YoY) | Q1'2024 (in thousands) | % Change (QoQ) | | :-------------------------------- | :------ | :------ | :------------- | :------ | :------------- | | Beginning of Period ACLL | $15,879 | $19,509 | -18.6% | $16,867 | -5.9% | | Provision for Credit Losses | - | - | n/m | $300 | n/m | | Net ACLL Recoveries (Losses) | $73 | ($1,029) | -107.1% | ($1,288) | -105.7% | | End of Period ACLL | $15,952 | $18,480 | -13.7% | $15,879 | 0.5% | | Gross ACLL Recoveries / Gross ACLL Losses | 105% | 38% | +67 pp | 36% | +69 pp | Allowance for Credit Losses on Loans (ACLL) - YTD | Metric | 6/30'24 YTD (in thousands) | 6/30'23 YTD (in thousands) | % Change | | :-------------------------------- | :---------- | :---------- | :------- | | Beginning of Period ACLL | $16,867 | $20,284 | -16.8% | | Provision (Reversal of Provision) for Credit Losses | $300 | ($1,550) | n/m | | Net ACLL Losses | ($1,215) | ($254) | 378.3% | | End of Period ACLL | $15,952 | $18,480 | -13.7% | | Gross ACLL Recoveries / Gross ACLL Losses | 66% | 93% | -27 pp | Total Allowance for Credit Losses - Period End | Metric | 6/30/24 (in thousands) | 6/30/23 (in thousands) | % Change (YoY) | 3/31/24 (in thousands) | % Change (QoQ) | | :-------------------------------- | :------ | :------ | :------------- | :------ | :------------- | | Allowance for Credit Losses on Loans | $15,952 | $18,480 | -13.7% | $15,879 | 0.5% | | Allowance for Credit Losses on Held to Maturity Securities | $1 | $1 | 0.0% | $1 | 0.0% | | Total Allowance for Credit Losses | $15,953 | $18,481 | -13.7% | $15,880 | 0.5% | 9. Credit Quality Total nonperforming loans increased significantly by 81.8% YoY and 4.6% QoQ to $1.55 million at June 30, 2024, primarily driven by a substantial increase in nonperforming nonaccrual loans, though the ratio of nonperforming loans to total loans remained low at 0.19% Credit Quality - Period End | Metric | 6/30/24 (in thousands) | 6/30/23 (in thousands) | % Change (YoY) | 3/31/24 (in thousands) | % Change (QoQ) | | :-------------------------------- | :------ | :------ | :------------- | :------ | :------------- | | Nonperforming Nonaccrual Loans | $971 | $192 | 405.7% | $957 | 1.5% | | Accruing Loans 90+ Days Past Due | $580 | $656 | -11.6% | $525 | 10.5% | | Total Nonperforming Loans | $1,551 | $853 | 81.8% | $1,483 | 4.6% | | Total Loans Outstanding | $831,842 | $919,583 | -9.5% | $844,677 | -1.5% | | Allowance for Credit Losses on Loans / Loans | 1.92% | 2.01% | -0.09 pp | 1.88% | +0.04 pp | | Nonperforming Loans / Total Loans | 0.19% | 0.09% | +0.10 pp | 0.18% | +0.01 pp | 10. Liquidity At June 30, 2024, Westamerica Bancorporation maintained strong liquidity with $486.12 million in cash balances and $1.46 billion in estimated unpledged debt securities, with expected principal payments of $309 million and access to $867.51 million in Federal Reserve borrowing - Cash balances stood at $486.124 million at June 30, 2024[30] - The Company expects $309 million in principal payments from debt securities during the twelve months ending June 30, 2025[30] Debt Securities Eligible and Pledged as Collateral (June 30, 2024) | Category | Amount (in thousands) | | :-------------------------------- | :-------------------- | | Total Debt Securities Eligible as Collateral | $3,693,459 | | Total Debt Securities Pledged as Collateral | ($2,230,493) | | Estimated Debt Securities Available to Pledge | $1,462,966 | - Access to borrowing from the Federal Reserve was up to $867.510 million at June 30, 2024, based on collateral pledged[30] 11. Capital Shareholders' equity increased significantly by 25.1% YoY to $815.60 million at June 30, 2024, and 3.0% QoQ, leading to improved capital ratios, including Shareholders' Equity/Total Assets rising to 12.92% and Tangible Common Equity Ratio to 11.21% Capital Ratios - Period End | Metric | 6/30/24 (in thousands) | 6/30/23 (in thousands) | % Change (YoY) | 3/31/24 (in thousands) | % Change (QoQ) | | :-------------------------------- | :------ | :------ | :------------- | :------ | :------------- | | Shareholders' Equity | $815,600 | $651,862 | 25.1% | $791,691 | 3.0% | | Total Assets | $6,312,145 | $6,582,740 | -4.1% | $6,464,685 | -2.3% | | Shareholders' Equity/Total Assets | 12.92% | 9.90% | +3.02 pp | 12.25% | +0.67 pp | | Shareholders' Equity/Total Loans | 98.05% | 70.89% | +27.16 pp | 93.73% | +4.32 pp | | Tangible Common Equity Ratio | 11.21% | 8.20% | +3.01 pp | 10.56% | +0.65 pp | | Common Equity Per Share | $30.57 | $24.46 | 25.0% | $29.68 | 3.0% | Share Repurchase Programs - Quarterly and YTD | Metric | Q2'2024 | Q1'2024 | 6/30'24 YTD | 6/30'23 YTD | | :-------------------------------- | :------ | :------ | :---------- | :---------- | | Total Shares Repurchased / Canceled | - | 4 | 4 | 274 | | Average Repurchase Price | - | $45.58 | $45.58 | $50.11 | 12. Period-End Balance Sheets Total assets decreased by 4.1% YoY and 2.3% QoQ to $6.31 billion at June 30, 2024, while cash and due from banks increased significantly by 82.6% YoY, and total short-term borrowed funds rose by 117.5% YoY, primarily due to Bank Term Funding Program borrowings Period-End Balance Sheet - Assets | Asset Category | 6/30/24 (in thousands) | 6/30/23 (in thousands) | % Change (YoY) | 3/31/24 (in thousands) | % Change (QoQ) | | :-------------------------------- | :---------- | :---------- | :------------- | :---------- | :------------- | | Cash and Due from Banks | $486,124 | $266,187 | 82.6% | $434,250 | 11.9% | | Total Debt Securities Available for Sale | $3,699,318 | $4,046,458 | -8.6% | $3,889,177 | -4.9% | | Total Debt Securities Held to Maturity | $860,868 | $900,356 | -4.4% | $868,725 | -0.9% | | Total Loans, net | $815,890 | $901,103 | -9.5% | $828,798 | -1.6% | | Total Assets | $6,312,145 | $6,582,740 | -4.1% | $6,464,685 | -2.3% | Period-End Balance Sheet - Liabilities and Shareholders' Equity | Liability/Equity Category | 6/30/24 (in thousands) | 6/30/23 (in thousands) | % Change (YoY) | 3/31/24 (in thousands) | % Change (QoQ) | | :-------------------------------- | :---------- | :---------- | :------------- | :---------- | :------------- | | Total Deposits | $5,131,440 | $5,705,927 | -10.1% | $5,354,925 | -4.2% | | Noninterest-Bearing Deposits | $2,459,467 | $2,721,046 | -9.6% | $2,514,161 | -2.2% | | Interest-Bearing Transaction Deposits | $936,186 | $1,133,006 | -17.4% | $1,066,038 | -12.2% | | Total Short-Term Borrowed Funds | $300,167 | $138,005 | 117.5% | $250,334 | 19.9% | | Bank Term Funding Program Borrowings | $200,000 | - | n/m | $200,000 | 0.0% | | Total Liabilities | $5,496,545 | $5,930,878 | -7.3% | $5,672,994 | -3.1% | | Total Shareholders' Equity | $815,600 | $651,862 | 25.1% | $791,691 | 3.0% | 13. Income Statements Net income for Q2 2024 was $35.46 million, down 11.9% YoY and 2.6% QoQ, as total interest expense surged by 774.3% YoY due to increased costs on savings deposits and Bank Term Funding Program borrowings, despite stable noninterest expenses Income Statement - Quarterly | Metric | Q2'2024 (in thousands) | Q2'2023 (in thousands) | % Change (YoY) | Q1'2024 (in thousands) | % Change (QoQ) | | :-------------------------------- | :------ | :------ | :------------- | :------ | :------------- | | Total Interest and Loan Fee Income | $69,072 | $70,489 | -2.0% | $68,746 | 0.5% | | Total Interest Expense | $5,307 | $607 | 774.3% | $3,001 | 76.8% | | Net Interest and Loan Fee Income | $63,765 | $69,882 | -8.8% | $65,745 | -3.0% | | Provision for Credit Losses | - | - | n/m | $300 | n/m | | Total Noninterest Income | $10,500 | $10,700 | -1.9% | $10,097 | 4.0% | | Total Noninterest Expense | $26,130 | $25,839 | 1.1% | $26,099 | 0.1% | | Income Before Income Taxes | $48,135 | $54,743 | -12.1% | $49,443 | -2.6% | | Income Tax Provision | $12,673 | $14,495 | -12.6% | $13,026 | -2.7% | | Net Income | $35,462 | $40,248 | -11.9% | $36,417 | -2.6% | | Diluted Earnings Per Share | $1.33 | $1.51 | -11.9% | $1.37 | -2.9% | | Dividends Paid Per Share | $0.44 | $0.42 | 4.8% | $0.44 | 0.0% | Income Statement - YTD | Metric | 6/30'24 YTD (in thousands) | 6/30'23 YTD (in thousands) | % Change | | :-------------------------------- | :---------- | :---------- | :------- | | Total Interest and Loan Fee Income | $137,818 | $140,113 | -1.6% | | Total Interest Expense | $8,308 | $1,078 | 670.7% | | Net Interest and Loan Fee Income | $129,510 | $139,035 | -6.9% | | Provision (Reversal of Provision) for Credit Losses | $300 | ($1,550) | n/m | | Total Noninterest Income | $20,597 | $21,249 | -3.1% | | Total Noninterest Expense | $52,229 | $52,049 | 0.3% | | Income Before Income Taxes | $97,578 | $109,785 | -11.1% | | Income Tax Provision | $25,699 | $29,086 | -11.6% | | Net Income | $71,879 | $80,699 | -10.9% | | Diluted Earnings Per Share | $2.69 | $3.02 | -10.9% | | Dividends Paid Per Share | $0.88 | $0.84 | 4.8% |