W T B Financial : Fourth Quarter 2021

Summary Financial Statements,

Selected Financial Highlights and

Selected Credit Performance Highlights

Q4 2021

(unaudited)

W.T.B. Financial Corporation

Condensed Consolidated Statements of Financial Condition

(unaudited)

		December 31,		September 30,		December 31,
		2021		2021		2020
ASSETS
Cash and due from banks		62,283,161	$	129,303,180	$	101,564,883
Interest-bearing deposits with banks		1,987,135,451		1,806,151,265		1,463,300,093
Securities available for sale, at fair value		538,718,995		387,940,890		1,700,704,116
Securities held to maturity, at amortized cost		2,787,035,395		2,606,021,411		877,655,640
Federal Home Loan Bank and Pacific Coast Bankers' Bancshares
stock, at cost		10,060,000		10,060,000		8,642,400
Loans receivable		5,536,075,557		5,482,823,353		5,591,531,863
Allowance for loan losses		(140,603,388)		(139,315,575)		(132,811,083)
Loans, net of allowance for loan losses		5,395,472,169		5,343,507,778		5,458,720,780
Premises and equipment, net		88,114,622		87,828,618		92,078,811
Accrued interest receivable		23,678,316		25,311,301		29,014,691
Other assets		197,069,385		187,322,829		82,281,539
Total assets	$	11,089,567,494	$	10,583,447,272	$	9,813,962,953
LIABILITIES
Deposits:
Noninterest-bearing	$	4,593,153,112	$	4,266,671,173	$	4,151,293,727
Interest-bearing		5,297,117,374		5,130,332,287		4,547,496,931
Total deposits		9,890,270,486		9,397,003,460		8,698,790,658
Securites sold under agreements to repurchase		239,510,563		242,293,447		216,428,301
Other borrowings		20,063,287		20,063,287		-
Accrued interest payable		662,208		299,749		675,110
Other liabilities		106,115,618		104,180,181		91,551,137
Total liabilities		10,256,622,162		9,763,840,124		9,007,445,206
SHAREHOLDERS' EQUITY
Common stock		19,262,049		19,152,179		24,240,662
Surplus		32,665,000		32,665,000		32,665,000
Undivided profits		783,617,442		764,317,151		707,388,777
		835,544,491		816,134,330		764,294,439
Less treasury stock, at cost		-		(154,006)		-
		835,544,491		815,980,324		764,294,439
Accumulated other comprehensive (loss) gain, net of tax		(2,599,159)		3,626,824		42,223,308
Total shareholders' equity		832,945,332		819,607,148		806,517,747
Total liabilities and shareholders' equity	$	11,089,567,494	$	10,583,447,272	$	9,813,962,953

W.T.B. Financial Corporation

Condensed Consolidated Statements of Income

(unaudited)

			Three Months Ended
	December 31,			September 30,	December 31,
INTEREST REVENUE		2021				2021				2020
Loans, including fees	$	61,706,891	$	61,713,229			$	63,777,586
Deposits with banks		839,926				583,130				300,510
Securities		20,417,612				14,569,917				12,154,516
Other interest and dividend income		87,560				86,757				76,365
Total interest revenue		83,051,989				76,953,033				76,308,977
INTEREST EXPENSE
Deposits		1,772,467				1,802,376				2,820,574
Funds purchased and other borrowings		471,010				96,744				291,546
Total interest expense		2,243,477				1,899,120				3,112,120
Net interest revenue		80,808,512				75,053,913				73,196,857
Provision for loan losses		-				-				9,500,000
Net interest revenue after provision for loan losses		80,808,512				75,053,913				63,696,857
NONINTEREST REVENUE
Fiduciary income		5,638,328				5,411,728				4,803,327
Investment services fees		974,786				1,213,051				1,322,348
Bank and credit card fees, net		4,510,168				4,629,972				3,483,639
Mortgage banking revenue, net		1,470,829				1,344,664				6,007,859
Other fees on loans		433,173				320,591				342,260
Service charges on deposits		1,631,678				1,576,381				1,465,958
Other income		2,677,774				2,202,656				938,313
Total noninterest revenue		17,336,736				16,699,043				18,363,704
NONINTEREST EXPENSE
Salaries and benefits		36,350,006				35,358,469				35,497,762
Occupancy, furniture and equipment expense		5,818,939				5,901,188				5,986,331
Other expense		18,927,793				15,567,633				16,497,352
Total noninterest expense		61,096,738				56,827,290				57,981,445
Income before provision for income taxes		37,048,510				34,925,666				24,079,116
Provision for income taxes		8,026,881				7,631,757				5,292,935
NET INCOME	$	29,021,629			$	27,293,909			$	18,786,181
PER SHARE DATA
Weighted average number of common stock shares outstanding
Basic		2,524,943				2,535,537				2,534,772
Diluted		2,530,923				2,540,458				2,537,095
Earnings per common share (based on weighted average
shares outstanding)
Basic	$	11.49	$	10.76			$	7.41
Diluted	$	11.47	$	10.74			$	7.40

W.T.B. Financial Corporation

Condensed Consolidated Statements of Income

(unaudited)

		Twelve Months Ended
	December 31,		December 31,
INTEREST REVENUE		2021			2020
Loans, including fees	$	243,317,106	$	237,474,817
Deposits with banks		2,037,865			2,490,312
Securities		62,949,831			47,197,119
Other interest and dividend income		332,345			307,834
Total interest revenue		308,637,147			287,470,082
INTEREST EXPENSE
Deposits		8,479,987			13,623,061
Funds purchased and other borrowings		1,100,531			1,589,790
Total interest expense		9,580,518			15,212,851
Net interest revenue		299,056,629			272,257,231
Provision for loan losses		9,000,004			33,000,000
Net interest revenue after provision for loan losses		290,056,625			239,257,231
NONINTEREST REVENUE
Fiduciary income		21,805,428			18,855,810
Investment services fees		4,071,692			3,732,509
Bank and credit card fees		17,064,063			12,887,206
Mortgage banking revenue, net		8,566,457			14,122,775
Other fees on loans		1,478,571			1,057,232
Service charges on deposits		6,087,808			5,845,480
Other income		8,774,851			10,870,994
Total noninterest revenue		67,848,870			67,372,006
NONINTEREST EXPENSE
Salaries and benefits		141,915,882			130,112,912
Occupancy, furniture and equipment expense		23,878,722			22,223,495
Other expense		64,115,466			56,403,518
Total noninterest expense		229,910,070			208,739,925
Income before provision for income taxes		127,995,425			97,889,312
Provision for income taxes		27,965,314			21,577,556
NET INCOME	$	100,030,111		$	76,311,756
PER SHARE DATA
Weighted average number of common stock shares outstanding
Basic		2,535,053			2,535,908
Diluted		2,539,660			2,538,290
Earnings per common share (based on weighted average shares
outstanding)
Basic	$	39.46	$	30.09
Diluted	$	39.39	$	30.06

W.T.B. Financial Corporation

Selected Financial Highlights

(unaudited)

			(dollars in thousands)
			Quarters Ended
	December 31,	September 30,	June 30,		March 31,	December 31,
	2021	2021	2021		2021	2020
SELECTED DATA
Interest-bearing deposits with banks	$ 1,987,135	$ 1,806,151	$ 1,330,547	$	961,600	$ 1,463,300
Securities	3,325,754	2,993,962	3,065,531		3,102,849	2,578,360
Total loans	5,536,076	5,482,823	5,675,805		5,832,079	5,591,532
Allowance for loan losses	140,603	139,316	139,113		139,160	132,811
Earning assets 1	10,854,717	10,282,215	10,068,641		9,884,576	9,561,272
Total assets	11,089,567	10,583,447	10,280,864		10,108,189	9,813,963
Deposits	9,890,270	9,397,003	9,120,085		9,003,460	8,698,791
Interest-bearing liabilities	5,556,691	5,392,689	5,059,169		4,983,178	4,763,925
Total shareholders' equity	832,945	819,607	805,828		776,568	806,518
Total equity to total assets	7.51%	7.74%	7.84%		7.68%	8.22%
Full-time equivalent employees	1,092	1,101	1,100		1,087	1,066
ASSET QUALITY RATIOS
Allowance for loan losses to total loans	2.54%	2.54%	2.45%		2.39%	2.38%
Allowance for loan losses to noncurrent loans	273%	267%	257%		406%	1162%
Net charge-offs (recoveries) to total average loans	-0.02%	0.00%	0.05%		-0.01%	-0.04%
Noncurrent loans and ORE to assets	0.46%	0.49%	0.53%		0.34%	0.12%
Noncurrent loans, ORE and TDRs to assets	0.47%	0.50%	0.54%		0.35%	0.13%

(1) Includes only the amortized cost for securities. Includes non-accrual loans.
				(dollars in thousands, except per share data)
			Quarters Ended			% Change
	December 31,	September 30,	December 31,	Sequential	Year over
		2021		2021		2020	Quarter	Year
PERFORMANCE
Net interest revenue, fully tax-equivalent	$	80,866	$	75,117	$	73,307	7.7%	10.3%
Fully tax-equivalent adjustment		57		63		110	-9.5%	-48.2%
Net interest revenue		80,809		75,054		73,197	7.7%	10.4%
Provision for loan losses		-		-		9,500	NM	-100.0%
Net interest revenue after provision for loan losses		80,809		75,054		63,697	7.7%	26.9%
Noninterest revenue		17,337		16,699		18,364	3.8%	-5.6%
Noninterest expense		61,097		56,827		57,982	7.5%	5.4%
Income before provision for income taxes		37,049		34,926		24,079	6.1%	53.9%
Provision for income taxes		8,027		7,632		5,293	5.2%	51.7%
Net income	$	29,022	$	27,294	$	18,786	6.3%	54.5%
PER COMMON SHARE
Earnings per common share - basic	$	11.49	$	10.76	$	7.41	6.8%	55.1%
Earnings per common share - diluted		11.47		10.74		7.40	6.8%	55.0%
Common cash dividends		3.85		1.84		1.85	109.2%	108.1%
Common shareholders' equity		328.11		322.79		316.30	1.6%	3.7%
			Quarters Ended			% Change
	December 31,	September 30,	December 31,	Sequential	Year over
		2021		2021		2020	Quarter	Year
PERFORMANCE RATIOS
Return on average assets		1.05%		1.03%		0.78%	0.02%	0.27%
Return on average shareholders' equity		13.89%		13.28%		9.30%	0.61%	4.59%
Margin on average earning assets 1		3.00%		2.90%		3.14%	0.10%	-0.14%
Noninterest expense to average assets		2.21%		2.14%		2.42%	0.07%	-0.21%
Noninterest revenue to average assets		0.63%		0.63%		0.77%	0.00%	-0.14%
Efficiency ratio		62.2%		61.9%		63.3%	0.3%	-1.1%
Common cash dividends to net income		33.50%		17.13%		24.96%	16.37%	-7.83%

1. Tax exempt interest has been adjusted to a taxable equivalent basis using a tax rate of 21%. NM = not meaningful