W T B Financial : Fourth Quarter 2022

Summary Financial Statements,

Selected Financial Highlights and

Selected Credit Performance Highlights

Q4 2022

(unaudited)

W.T.B. Financial Corporation

Condensed Consolidated Statements of Financial Condition

(unaudited)

		December 31,		September 30,		December 31,
		2022		2022		2021
ASSETS
Cash and due from banks	$	119,932,630	$	119,453,042	$	62,283,161
Interest-bearing deposits with banks		273,938,004		643,622,224		1,987,135,451
Securities available for sale, at fair value		537,169,969		543,393,395		538,718,995
Securities held to maturity, at amortized cost		3,221,994,093		3,144,339,982		2,787,035,395
Federal Home Loan Bank and Pacific Coast Bankers' Bancshares
stock, at cost		10,060,000		10,060,000		10,060,000
Loans receivable		6,042,262,030		5,903,011,291		5,536,075,557
Allowance for loan losses		(120,838,526)		(118,231,380)		(140,603,388)
Loans, net of allowance for loan losses		5,921,423,504		5,784,779,911		5,395,472,169
Premises and equipment, net		87,432,873		88,082,559		88,114,622
Accrued interest receivable		32,246,663		27,802,391		23,678,316
Other assets		218,891,833		197,883,073		197,069,385
Total assets	$	10,423,089,569	$	10,559,416,577	$	11,089,567,494
LIABILITIES
Deposits:
Noninterest-bearing	$	4,245,614,949	$	4,312,452,221	$	4,593,153,112
Interest-bearing		4,971,470,925		5,062,532,503		5,297,117,374
Total deposits		9,217,085,874		9,374,984,724		9,890,270,486
Securites sold under agreements to repurchase		209,031,623		220,764,309		239,510,563
Other borrowings		-		-		20,063,287
Accrued interest payable		370,567		204,541		662,208
Other liabilities		129,472,253		108,203,547		106,115,618
Total liabilities		9,555,960,317		9,704,157,121		10,256,622,162
SHAREHOLDERS' EQUITY
Common stock		11,101,840		12,995,790		19,262,049
Surplus		32,665,000		32,665,000		32,665,000
Undivided profits		871,561,981		857,738,727		783,617,442
		915,328,821		903,399,517		835,544,491
Accumulated other comprehensive (loss) income, net of tax		(48,199,569)		(48,140,061)		(2,599,159)
Total shareholders' equity		867,129,252		855,259,456		832,945,332
Total liabilities and shareholders' equity	$	10,423,089,569	$	10,559,416,577	$	11,089,567,494

W.T.B. Financial Corporation

Condensed Consolidated Statements of Income

(unaudited)

			Three Months Ended
	December 31,	September 30,	December 31,
		2022		2022		2021
INTEREST REVENUE
Loans, including fees	$	75,217,255	$	67,434,650	$	61,706,891
Deposits with banks		5,308,393		5,350,739		839,926
Securities		16,809,071		16,338,705		20,417,612
Other interest and dividend income		75,642		75,319		87,560
Total interest revenue		97,410,361		89,199,413		83,051,989
INTEREST EXPENSE
Deposits		6,966,783		2,237,341		1,772,467
Funds purchased and other borrowings		110,206		98,947		471,010
Total interest expense		7,076,989		2,336,288		2,243,477
Net interest revenue		90,333,372		86,863,125		80,808,512
Provision for loan losses		2,500,000		1,000,000		-
Net interest revenue after provision for loan losses		87,833,372		85,863,125		80,808,512
NONINTEREST REVENUE
Fiduciary income		5,300,071		5,274,951		5,638,328
Investment services fees		975,854		971,614		974,786
Bank and credit card fees, net		851,241		3,610,873		4,510,168
Mortgage banking revenue, net		369,798		520,361		1,470,829
Other fees on loans		269,788		362,992		433,173
Service charges on deposits		1,588,120		1,808,262		1,631,678
Other income		1,572,128		1,931,645		2,677,774
Total noninterest revenue		10,927,000		14,480,698		17,336,736
NONINTEREST EXPENSE
Salaries and benefits		39,710,680		38,229,282		36,350,006
Occupancy, furniture and equipment expense		6,262,261		5,912,064		5,818,939
Other expense		19,617,169		17,952,198		18,927,793
Total noninterest expense		65,590,110		62,093,544		61,096,738
Income before provision for income taxes		33,170,262		38,250,279		37,048,510
Provision for income taxes		7,223,744		8,300,995		8,026,881
NET INCOME	$	25,946,518	$	29,949,284	$	29,021,629
PER SHARE DATA
Weighted average number of common stock shares outstanding
Basic		2,504,228		2,514,052		2,524,943
Diluted		2,506,905		2,515,409		2,529,573
Earnings per common share (based on weighted average
shares outstanding)
Basic	$	10.36	$	11.91	$	11.49
Diluted	$	10.35	$	11.91	$	11.47

W.T.B. Financial Corporation

Condensed Consolidated Statements of Income

(unaudited)

		Twelve Months Ended
	December 31,	December 31,
		2022		2021
INTEREST REVENUE
Loans, including fees	$	257,234,036	$	243,317,106
Deposits with banks		13,712,397		2,037,865
Securities		64,595,044		62,949,831
Other interest and dividend income		308,459		332,345
Total interest revenue		335,849,936		308,637,147
INTEREST EXPENSE
Deposits		12,378,239		8,479,988
Funds purchased and other borrowings		351,711		1,100,530
Total interest expense		12,729,950		9,580,518
Net interest revenue		323,119,986		299,056,629
(Recapture) provision for loan losses		(20,500,000)		9,000,004
Net interest revenue after provision for loan losses		343,619,986		290,056,625
NONINTEREST REVENUE
Fiduciary income		21,590,123		21,805,428
Investment services fees		3,985,839		4,071,692
Bank and credit card fees		14,119,585		17,064,063
Mortgage banking revenue, net		2,140,229		8,566,457
Other fees on loans		1,173,917		1,478,571
Service charges on deposits		6,895,594		6,087,808
Other income		8,277,408		8,774,851
Total noninterest revenue		58,182,695		67,848,870
NONINTEREST EXPENSE
Salaries and benefits		154,433,385		141,915,882
Occupancy, furniture and equipment expense		24,950,100		23,878,722
Other expense		76,642,309		64,115,466
Total noninterest expense		256,025,794		229,910,070
Income before provision for income taxes		145,776,887		127,995,425
Provision for income taxes		31,723,646		27,965,314
NET INCOME	$	114,053,241	$	100,030,111
PER SHARE DATA
Weighted average number of common stock shares outstanding
Basic		2,516,636		2,535,053
Diluted		2,518,920		2,538,529
Earnings per common share (based on weighted average shares
outstanding)
Basic	$	45.32	$	39.46
Diluted	$	45.28	$	39.40

W.T.B. Financial Corporation

Selected Financial Highlights

(unaudited)

					(dollars in thousands)
					Quarters Ended
	December 31,	September 30,		June 30,	March 31,	December 31,
		2022		2022		2022	2022	2021
SELECTED DATA
Interest-bearing deposits with banks	$	273,938	$	643,622	$	869,483	$ 1,632,922	$ 1,987,135
Securities		3,759,164		3,687,733		3,739,692	3,715,372	3,325,754
Total loans		6,042,262		5,903,011		5,685,124	5,451,588	5,536,076
Allowance for loan losses		120,839		118,231		117,253	140,904	140,603
Earning assets 1		10,133,251		10,293,630		10,336,044	10,830,404	10,854,717
Total assets		10,423,090		10,559,417		10,624,427	11,084,210	11,089,567
Deposits		9,217,086		9,374,985		9,441,660	9,904,529	9,890,270
Interest-bearing liabilities		5,180,503		5,283,297		5,322,593	5,555,673	5,556,691
Total shareholders' equity		867,129		855,259		848,684	828,180	832,945
Total equity to total assets		8.32%		8.10%		7.99%	7.47%	7.51%
Full-time equivalent employees		1,146		1,134		1,116	1,104	1,092
ASSET QUALITY RATIOS
Allowance for loan losses to total loans		2.00%		2.00%		2.06%	2.58%	2.54%
Allowance for loan losses to noncurrent loans		3743%		3842%		3249%	283%	273%
Net charge-offs (recoveries) to total average loans		0.00%		0.00%		-0.01%	-0.01%	-0.02%
Noncurrent loans and ORE to assets		0.03%		0.03%		0.03%	0.45%	0.46%
Noncurrent loans, ORE and TDRs to assets		0.04%		0.04%		0.04%	0.45%	0.47%

(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
		2022		2022		2021	Quarter	Year
PERFORMANCE
Net interest revenue, fully tax-equivalent	$	90,384	$	86,906	$	80,866	4.0%	11.8%
Fully tax-equivalent adjustment		51		43		57	18.6%	-10.5%
Net interest revenue		90,333		86,863		80,809	4.0%	11.8%
Provision for loan losses		2,500		1,000		-	150.0%	NM
Net interest revenue after provision for loan losses		87,833		85,863		80,809	2.3%	8.7%
Noninterest revenue		10,927		14,481		17,337	-24.5%	-37.0%
Noninterest expense		65,590		62,094		61,097	5.6%	7.4%
Income before provision for income taxes		33,170		38,250		37,049	-13.3%	-10.5%
Provision for income taxes		7,223		8,301		8,027	-13.0%	-10.0%
Net income	$	25,947	$	29,949	$	29,022	-13.4%	-10.6%
PER COMMON SHARE
Earnings per common share - basic	$	10.36	$	11.91	$	11.49	-13.0%	-9.8%
Earnings per common share - diluted		10.35		11.91		11.47	-13.1%	-9.8%
Common cash dividends		4.85		1.85		3.85	162.2%	26.0%
Common shareholders' equity		344.59		338.95		328.11	1.7%	5.0%
			Quarters Ended			% Change
	December 31,	September 30,	December 31,	Sequential	Year over
		2022		2022		2021	Quarter	Year
PERFORMANCE RATIOS
Return on average assets		0.97%		1.10%		1.05%	-0.13%	-0.08%
Return on average shareholders' equity		11.90%		13.81%		13.89%	-1.91%	-1.99%
Margin on average earning assets 2		3.47%		3.28%		3.00%	0.19%	0.47%
Noninterest expense to average assets		2.46%		2.28%		2.21%	0.18%	0.25%
Noninterest revenue to average assets		0.41%		0.53%		0.63%	-0.12%	-0.22%
Efficiency ratio		64.7%		61.2%		62.2%	3.5%	2.5%
Common cash dividends to net income		46.72%		15.50%		33.50%	31.22%	-18.00%

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