W T B Financial : Second Quarter 2022

Summary Financial Statements,

Selected Financial Highlights and

Selected Credit Performance Highlights

Q2 2022

(unaudited)

W.T.B. Financial Corporation

Condensed Consolidated Statements of Financial Condition

(unaudited)

		June 30,		March 31,		June 30,
		2022		2022		2021
ASSETS
Cash and due from banks	$	126,783,957	$	109,115,109	$	111,332,899
Interest-bearing deposits with banks		869,483,231		1,632,922,295		1,330,547,291
Securities available for sale, at fair value		570,430,197		594,095,225		403,692,368
Securities held to maturity, at amortized cost		3,169,261,523		3,121,276,543		2,661,838,499
Federal Home Loan Bank and Pacific Coast Bankers' Bancshares
stock, at cost		10,060,000		10,060,000		10,060,000
Loans receivable		5,685,124,146		5,451,587,886		5,675,804,551
Allowance for loan losses		(117,252,879)		(140,903,957)		(139,112,930)
Loans, net of allowance for loan losses		5,567,871,267		5,310,683,929		5,536,691,621
Premises and equipment, net		88,078,229		88,293,788		88,987,871
Accrued interest receivable		25,541,479		24,397,597		27,589,783
Other assets		196,916,949		193,365,671		110,123,472
Total assets	$	10,624,426,832	$	11,084,210,157	$	10,280,863,804
LIABILITIES
Deposits:
Noninterest-bearing	$	4,346,550,937	$	4,604,567,856	$	4,316,714,723
Interest-bearing		5,095,109,531		5,299,960,728		4,803,369,864
Total deposits		9,441,660,468		9,904,528,584		9,120,084,587
Securites sold under agreements to repurchase		227,483,165		235,649,386		235,736,087
Other borrowings		-		20,063,287		20,063,287
Accrued interest payable		219,623		806,798		427,357
Other liabilities		106,379,114		94,982,263		98,724,089
Total liabilities		9,775,742,370		10,256,030,318		9,475,035,407
SHAREHOLDERS' EQUITY
Common stock		16,858,673		18,649,519		25,057,245
Surplus		32,665,000		32,665,000		32,665,000
Undivided profits		832,431,892		799,737,498		741,698,974
		881,955,565		851,052,017		799,421,219
Accumulated other comprehensive loss, net of tax		(33,271,103)		(22,872,178)		6,407,178
Total shareholders' equity		848,684,462		828,179,839		805,828,397
Total liabilities and shareholders' equity	$	10,624,426,832	$	11,084,210,157	$	10,280,863,804

W.T.B. Financial Corporation

Condensed Consolidated Statements of Income

(unaudited)

			Three Months Ended
		June 30,		March 31,		June 30,
		2022		2022		2021
INTEREST REVENUE
Loans, including fees	$	58,242,163	$	56,339,968	$	61,255,688
Deposits with banks		2,222,483		830,782		312,414
Securities		16,915,945		14,531,324		14,137,707
Other interest and dividend income		80,328		77,169		80,682
Total interest revenue		77,460,919		71,779,243		75,786,491
INTEREST EXPENSE
Deposits		1,548,678		1,625,436		2,289,786
Funds purchased and other borrowings		(108,235)		250,794		217,663
Total interest expense		1,440,443		1,876,230		2,507,449
Net interest revenue		76,020,476		69,903,013		73,279,042
(Recapture) provision for loan losses		(24,000,000)		-		3,000,000
Net interest revenue after provision for loan losses		100,020,476		69,903,013		70,279,042
NONINTEREST REVENUE
Fiduciary income		5,578,239		5,436,861		5,643,578
Investment services fees		985,632		1,052,740		966,166
Bank and credit card fees, net		4,686,880		4,970,592		4,324,851
Mortgage banking revenue, net		728,181		521,889		1,804,678
Other fees on loans		303,342		237,795		465,859
Service charges on deposits		1,743,473		1,755,739		1,433,817
Other income		2,458,951		2,314,682		1,893,619
Total noninterest revenue		16,484,698		16,290,298		16,532,568
NONINTEREST EXPENSE
Salaries and benefits		38,419,698		38,073,725		35,527,713
Occupancy, furniture and equipment expense		6,564,166		6,211,609		6,143,861
Other expense		23,661,423		15,411,518		15,605,585
Total noninterest expense		68,645,287		59,696,852		57,277,159
Income before provision for income taxes		47,859,887		26,496,459		29,534,451
Provision for income taxes		10,497,883		5,701,024		6,481,574
NET INCOME	$	37,362,004	$	20,795,435	$	23,052,877
PER SHARE DATA
Weighted average number of common stock shares outstanding
Basic		2,523,817		2,524,702		2,541,723
Diluted		2,524,932		2,528,713		2,544,176
Earnings per common share (based on weighted average
shares outstanding)
Basic	$	14.80	$	8.24	$	9.07
Diluted	$	14.80	$	8.22	$	9.06

W.T.B. Financial Corporation

Condensed Consolidated Statements of Income

(unaudited)

		Six Months Ended
		June 30,		June 30,
		2022		2021
INTEREST REVENUE
Loans, including fees	$	114,582,131	$	119,896,986
Deposits with banks		3,053,265		614,809
Securities		31,447,268		27,962,302
Other interest and dividend income		157,498		158,028
Total interest revenue		149,240,162		148,632,125
INTEREST EXPENSE
Deposits		3,174,117		4,905,145
Funds purchased and other borrowings		142,557		532,776
Total interest expense		3,316,674		5,437,921
Net interest revenue		145,923,488		143,194,204
(Recapture) provision for loan losses		(24,000,000)		9,000,004
Net interest revenue after provision for loan losses		169,923,488		134,194,200
NONINTEREST REVENUE
Fiduciary income		11,015,100		10,755,372
Investment services fees		2,038,372		1,883,856
Bank and credit card fees		9,657,471		7,923,924
Mortgage banking revenue, net		1,250,071		5,750,964
Other fees on loans		541,137		724,807
Service charges on deposits		3,499,212		2,879,749
Other income		4,773,634		3,894,419
Total noninterest revenue		32,774,997		33,813,091
NONINTEREST EXPENSE
Salaries and benefits		76,493,423		70,207,407
Occupancy, furniture and equipment expense		12,775,775		12,158,595
Other expense		39,072,941		29,620,040
Total noninterest expense		128,342,139		111,986,042
Income before provision for income taxes		74,356,346		56,021,249
Provision for income taxes		16,198,907		12,306,676
NET INCOME	$	58,157,439	$	43,714,573
PER SHARE DATA
Weighted average number of common stock shares outstanding
Basic		2,524,257		2,539,945
Diluted		2,526,812		2,542,786
Earnings per common share (based on weighted average shares
outstanding)
Basic	$	23.04	$	17.21
Diluted	$	23.02	$	17.19

W.T.B. Financial Corporation

Selected Financial Highlights

(unaudited)

				(dollars in thousands)
				Quarters Ended
		June 30,	March 31,	December 31,	September 30,	June 30,
		2022	2022	2021	2021	2021
SELECTED DATA
Interest-bearing deposits with banks	$	869,483	$ 1,632,922	$ 1,987,135	$ 1,806,151	$ 1,330,547
Securities		3,739,692	3,715,372	3,325,754	2,993,962	3,065,531
Total loans		5,685,124	5,451,588	5,536,076	5,482,823	5,675,805
Allowance for loan losses		117,253	140,904	140,603	139,316	139,113
Earning assets 1		10,336,044	10,830,404	10,854,717	10,282,215	10,068,641
Total assets		10,624,427	11,084,210	11,089,567	10,583,447	10,280,864
Deposits		9,441,660	9,904,529	9,890,270	9,397,003	9,120,085
Interest-bearing liabilities		5,322,593	5,555,673	5,556,691	5,392,689	5,059,169
Total shareholders' equity		848,684	828,180	832,945	819,607	805,828
Total equity to total assets		7.99%	7.47%	7.51%	7.74%	7.84%
Full-time equivalent employees		1,116	1,104	1,092	1,101	1,100
ASSET QUALITY RATIOS
Allowance for loan losses to total loans		2.06%	2.58%	2.54%	2.54%	2.45%
Allowance for loan losses to noncurrent loans		3249%	283%	273%	267%	257%
Net charge-offs (recoveries) to total average loans		-0.01%	-0.01%	-0.02%	0.00%	0.05%
Noncurrent loans and ORE to assets		0.03%	0.45%	0.46%	0.49%	0.53%
Noncurrent loans, ORE and TDRs to assets		0.04%	0.45%	0.47%	0.50%	0.54%

(1) Includes only the amortized cost for securities. Includes non-accrual loans.
				(dollars in thousands, except per share data)
			Quarters Ended			% Change
		June 30,		March 31,		June 30,	Sequential	Year over
		2022		2022		2021	Quarter	Year
PERFORMANCE
Net interest revenue, fully tax-equivalent	$	76,064	$	69,949	$	73,349	8.7%	3.7%
Fully tax-equivalent adjustment		44		46		70	-4.3%	-37.1%
Net interest revenue		76,020		69,903		73,279	8.8%	3.7%
(Recapture) provision for loan losses		(24,000)		-		3,000	NM	-900.0%
Net interest revenue after provision for loan losses		100,020		69,903		70,279	43.1%	42.3%
Noninterest revenue		16,485		16,290		16,533	1.2%	-0.3%
Noninterest expense		68,645		59,697		57,278	15.0%	19.8%
Income before provision for income taxes		47,860		26,496		29,534	80.6%	62.1%
Provision for income taxes		10,498		5,701		6,481	84.1%	62.0%
Net income	$	37,362	$	20,795	$	23,053	79.7%	62.1%
PER COMMON SHARE
Earnings per common share - basic	$	14.80	$	8.24	$	9.07	79.6%	63.2%
Earnings per common share - diluted		14.80		8.22		9.06	80.0%	63.4%
Common cash dividends		1.85		1.85		1.85	0.0%	0.0%
Common shareholders' equity		334.64		325.76		315.29	2.7%	6.1%
			Quarters Ended			% Change
		June 30,		March 31,		June 30,	Sequential	Year over
		2022		2022		2021	Quarter	Year
PERFORMANCE RATIOS
Return on average assets		1.39%		0.77%		0.90%	0.62%	0.49%
Return on average shareholders' equity		18.00%		10.11%		11.60%	7.89%	6.40%
Margin on average earning assets 2		2.90%		2.66%		2.94%	0.24%	-0.04%
Noninterest expense to average assets		2.55%		2.21%		2.25%	0.34%	0.30%
Noninterest revenue to average assets		0.61%		0.60%		0.65%	0.01%	-0.04%
Efficiency ratio		74.2%		69.2%		63.7%	5.0%	10.5%
Common cash dividends to net income		12.49%		22.48%		20.40%	-9.99%	2.08%

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