W T B Financial : Second Quarter 2023

Summary Financial Statements,

Selected Financial Highlights and

Selected Credit Performance Highlights

Q2 2023

(unaudited)

W.T.B. Financial Corporation

Condensed Consolidated Statements of Financial Condition

(unaudited)

		June 30,		March 31,		June 30,
		2023		2023		2022
ASSETS
Cash and due from banks	$	110,570,273	$	135,344,562	$	126,783,957
Interest-bearing deposits with banks		372,670,765		341,116,215		869,483,231
Securities available for sale, at fair value		509,354,423		532,966,873		570,430,197
Securities held to maturity, at amortized cost		3,160,177,545		3,197,382,433		3,169,261,523
Federal Home Loan Bank and Pacific Coast Bankers' Bancshares
stock, at cost		15,420,000		18,780,000		10,060,000
Loans receivable		6,285,984,837		6,099,478,730		5,685,124,146
Allowance for credit losses on loans		(141,008,789)		(138,976,018)		(117,252,879)
Loans, net of allowance for credit losses on loans		6,144,976,048		5,960,502,712		5,567,871,267
Premises and equipment, net		86,125,516		86,811,932		88,078,229
Accrued interest receivable		30,636,124		30,176,665		25,541,479
Other assets		217,047,285		212,268,656		196,916,949
Total assets	$	10,646,977,979	$	10,515,350,048	$	10,624,426,832
LIABILITIES
Deposits:
Noninterest-bearing	$	3,518,317,592	$	3,907,575,581	$	4,346,550,937
Interest-bearing		4,363,591,321		4,420,554,317		5,095,109,531
Total deposits		7,881,908,913		8,328,129,898		9,441,660,468
Securites sold under agreements to repurchase		205,874,361		129,519,341		227,483,165
Other borrowings		1,549,000,000		1,068,000,000		-
Accrued interest payable		17,749,024		2,412,427		219,623
Other liabilities		116,044,977		115,301,187		106,379,114
Total liabilities		9,770,577,275		9,643,362,853		9,775,742,370
SHAREHOLDERS' EQUITY
Common stock		11,625,545		11,143,217		16,858,673
Surplus		32,665,000		32,665,000		32,665,000
Undivided profits		880,410,692		872,207,430		832,431,892
		924,701,237		916,015,647		881,955,565
Accumulated other comprehensive loss, net of tax		(48,300,533)		(44,028,452)		(33,271,103)
Total shareholders' equity		876,400,704		871,987,195		848,684,462
Total liabilities and shareholders' equity	$	10,646,977,979	$	10,515,350,048	$	10,624,426,832

W.T.B. Financial Corporation

Condensed Consolidated Statements of Income

(unaudited)

			Three Months Ended
		June 30,		March 31,		June 30,
		2023		2023		2022
INTEREST REVENUE
Loans, including fees	$	82,668,749	$	78,262,913	$	58,242,163
Deposits with banks		3,419,113		2,421,992		2,222,483
Securities		16,238,951		17,847,132		16,915,945
Other interest and dividend income		396,873		80,653		80,328
Total interest revenue		102,723,686		98,612,690		77,460,919
INTEREST EXPENSE
Deposits		18,689,914		10,650,635		1,548,678
Funds purchased and other borrowings		16,144,361		6,162,564		(108,235)
Total interest expense		34,834,275		16,813,199		1,440,443
Net interest revenue		67,889,411		81,799,491		76,020,476
Provision (recapture) for credit losses		3,100,000		2,400,000		(24,000,000)
Net interest revenue after provision for credit losses		64,789,411		79,399,491		100,020,476
NONINTEREST REVENUE
Fiduciary income		6,107,053		5,721,962		5,578,239
Investment services fees		896,156		1,025,658		985,632
Bank and credit card fees, net		3,161,113		4,093,504		4,686,880
Mortgage banking revenue, net		254,456		241,535		728,181
Other fees on loans		313,120		240,870		303,342
Service charges on deposits		1,298,849		1,453,239		1,743,473
Other income		2,045,244		2,230,196		2,458,951
Total noninterest revenue		14,075,991		15,006,964		16,484,698
NONINTEREST EXPENSE
Salaries and benefits		38,000,467		41,136,420		38,419,698
Occupancy, furniture and equipment expense		6,280,391		6,833,174		6,564,166
Other expense		18,204,096		18,012,250		23,661,423
Total noninterest expense		62,484,954		65,981,844		68,645,287
Income before provision for income taxes		16,380,448		28,424,611		47,859,887
Provision for income taxes		3,542,214		6,172,116		10,497,883
NET INCOME	$	12,838,234	$	22,252,495	$	37,362,004
PER SHARE DATA
Weighted average number of common stock shares outstanding
Basic		2,505,390		2,502,465		2,523,817
Diluted		2,505,448		2,505,194		2,524,932
Earnings per common share (based on weighted average
shares outstanding)
Basic	$	5.12	$	8.89	$	14.80
Diluted	$	5.12	$	8.88	$	14.80

W.T.B. Financial Corporation

Condensed Consolidated Statements of Income

(unaudited)

		Six Months Ended
		June 30,		June 30,
		2023		2022
INTEREST REVENUE
Loans, including fees	$	160,931,662	$	114,582,131
Deposits with banks		5,841,106		3,053,265
Securities		34,086,082		31,447,268
Other interest and dividend income		477,526		157,498
Total interest revenue		201,336,376		149,240,162
INTEREST EXPENSE
Deposits		29,340,550		3,174,117
Funds purchased and other borrowings		22,306,924		142,557
Total interest expense		51,647,474		3,316,674
Net interest revenue		149,688,902		145,923,488
Provision (recapture) for credit losses		5,500,000		(24,000,000)
Net interest revenue after provision for credit losses		144,188,902		169,923,488
NONINTEREST REVENUE
Fiduciary income		11,829,016		11,015,100
Investment services fees		1,921,814		2,038,372
Bank and credit card fees		7,254,618		9,657,471
Mortgage banking revenue, net		495,991		1,250,071
Other fees on loans		553,990		541,137
Service charges on deposits		2,752,088		3,499,212
Other income		4,275,437		4,773,634
Total noninterest revenue		29,082,954		32,774,997
NONINTEREST EXPENSE
Salaries and benefits		79,136,888		76,493,423
Occupancy, furniture and equipment expense		13,113,565		12,775,775
Other expense		36,216,345		39,072,941
Total noninterest expense		128,466,798		128,342,139
Income before provision for income taxes		44,805,058		74,356,346
Provision for income taxes		9,714,330		16,198,907
NET INCOME	$	35,090,728	$	58,157,439
PER SHARE DATA
Weighted average number of common stock shares outstanding
Basic		2,503,935		2,524,257
Diluted		2,505,322		2,526,812
Earnings per common share (based on weighted average shares
outstanding)
Basic	$	14.01	$	23.04
Diluted	$	14.01	$	23.02

W.T.B. Financial Corporation

Selected Financial Highlights

(unaudited)

					(dollars in thousands)
					Quarters Ended
		June 30,		March 31,	December 31,	September 30,		June 30,
		2023		2023		2022		2022		2022
SELECTED DATA
Interest-bearing deposits with banks	$	372,671	$	341,116	$	273,938	$	643,622	$	869,483
Securities		3,669,532		3,730,349		3,759,164		3,687,733		3,739,692
Total loans		6,285,985		6,099,479		6,042,262		5,903,011		5,685,124
Allowance for credit losses (ACL) on loans1		141,009		138,976		120,839		118,231		117,253
Earning assets 2		10,389,254		10,231,511		10,133,251		10,293,630		10,336,044
Total assets		10,646,978		10,515,350		10,423,090		10,559,417		10,624,427
Deposits		7,881,909		8,328,130		9,217,086		9,374,985		9,441,660
Interest-bearing liabilities		6,118,466		5,618,074		5,180,503		5,283,297		5,322,593
Total shareholders' equity		876,401		871,987		867,129		855,259		848,684
Total equity to total assets		8.23%		8.29%		8.32%		8.10%		7.99%
Full-time equivalent employees		1,189		1,166		1,146		1,134		1,116
ASSET QUALITY RATIOS
ACL on loans to total loans		2.24%		2.28%		2.00%		2.00%		2.06%
ACL on loans to noncurrent loans		2548%		3417%		3743%		3842%		3249%
Net charge-offs (recoveries) to total average loans		0.00%		0.01%		0.00%		0.00%		-0.01%
Noncurrent loans and ORE to assets		0.05%		0.04%		0.03%		0.03%		0.03%

1. 2022 allowance balances are based on the incurred loss model. 2023 allowance balance is based on the current expected credit loss ("CECL") model.
2. 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
		2023		2023		2022	Quarter	Year
PERFORMANCE
Net interest revenue, fully tax-equivalent	$	67,975	$	81,867	$	76,064	-17.0%	-10.6%
Fully tax-equivalent adjustment		86		68		44	26.5%	95.5%
Net interest revenue		67,889		81,799		76,020	-17.0%	-10.7%
Provision (recapture) for credit losses		3,100		2,400		(24,000)	29.2%	-112.9%
Net interest revenue after provision for credit losses		64,789		79,399		100,020	-18.4%	-35.2%
Noninterest revenue		14,076		15,007		16,485	-6.2%	-14.6%
Noninterest expense		62,484		65,981		68,645	-5.3%	-9.0%
Income before provision for income taxes		16,381		28,425		47,860	-42.4%	-65.8%
Provision for income taxes		3,543		6,173		10,498	-42.6%	-66.3%
Net income	$	12,838	$	22,252	$	37,362	-42.3%	-65.6%
PER COMMON SHARE
Earnings per common share - basic	$	5.12	$	8.89	$	14.80	-42.4%	-65.4%
Earnings per common share - diluted		5.12		8.88		14.80	-42.3%	-65.4%
Common cash dividends		1.85		1.85		1.85	0.0%	0.0%
Common shareholders' equity		347.52		345.77		334.64	0.5%	3.8%
			Quarters Ended			% Change
		June 30,		March 31,		June 30,	Sequential	Year over
		2023		2023		2022	Quarter	Year
PERFORMANCE RATIOS
Return on average assets		0.49%		0.87%		1.39%	-0.38%	-0.90%
Return on average shareholders' equity		5.84%		10.49%		18.00%	-4.65%	-12.16%
Margin on average earning assets 2		2.67%		3.29%		2.90%	-0.62%	-0.23%
Noninterest expense to average assets		2.39%		2.59%		2.55%	-0.20%	-0.16%
Noninterest revenue to average assets		0.54%		0.59%		0.61%	-0.05%	-0.07%
Efficiency ratio		76.2%		68.1%		74.2%	8.1%	2.0%
Common cash dividends to net income		36.10%		20.83%		12.49%	15.27%	8.34%

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