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Westamerica Bancorporation Reports Q3 Diluted EPS Of $0.74

SAN RAFAEL, Calif., Oct. 15, 2020 (GLOBE NEWSWIRE) -- Westamerica Bancorporation (NASDAQ:WABC), parent company of Westamerica Bank, generated net income for the third quarter 2020 of $20.1 million and

· 10/15/2020 11:10

SAN RAFAEL, Calif., Oct. 15, 2020 (GLOBE NEWSWIRE) -- Westamerica Bancorporation (NASDAQ:WABC), parent company of Westamerica Bank, generated net income for the third quarter 2020 of $20.1 million and diluted earnings per common share ("EPS") of $0.74. These results compare to net income of $19.6 million and EPS of $0.72 for the second quarter 2020 and net income of $20.4 million and EPS of $0.75 for the third quarter 2019. The third quarter 2019 results benefited from expense reducing FDIC insurance assessment credits.
 

"Westamerica is focusing on maintaining superior customer service during the pandemic. In keeping all our branches open, we are following all health orders affecting our business to provide a safe environment for our customers and employees. Westamerica's non-interest revenues improved $922 thousand in the third quarter 2020 compared to the prior quarter as economic activity showed some improvement. Net interest income on a fully-tax equivalent basis declined $283 thousand in the third quarter 2020 compared to the prior quarter due to low market interest rates. Operating expenses were $24.6 million for the third quarter 2020, representing only 47 percent of revenues on a fully-taxable equivalent basis. Credit quality remained stable with nonperforming loans of $4.7 million at September 30, 2020," said Chairman, President and CEO David Payne. "Third quarter 2020 results generated an annualized 11.2 percent return on average common equity, and shareholders were paid a $0.41 per common share dividend during the quarter," concluded Payne.

Net interest income on a fully-taxable equivalent (FTE) basis was $41.8 million for the third quarter 2020, compared to $42.1 million for the second quarter 2020 and $40.3 million for the third quarter 2019. The annualized net interest margin (FTE) was 2.78 percent for the third quarter 2020, compared to 2.99 percent for the second quarter 2020 and 3.11 percent for the third quarter 2019. The decline in the margin is due to lower yields on interest-earning assets. Average total deposits grew $333 million from the second quarter 2020 to the third quarter 2020. Checking and savings deposits represented ninety-seven percent of the Company's average deposit base during the third quarter 2020 generating a 0.03 percent annualized cost of funding interest-earning assets.

The Company continues to work with loan customers requesting deferral of loan payments due to economic weakness caused by the pandemic. At September 30, 2020, consumer loans granted loan deferrals totaled $5.0 million, commercial real estate loans with deferred payments totaled $19.1 million, primarily for hospitality, restaurant and retail properties, and commercial loans with deferred payments totaled $209 thousand. The commercial real estate loans with deferred payments are seasoned with low loan-to-value ratios.

Nonperforming assets were $4.8 million at September 30, 2020. The Company's allowance for credit losses was $24.2 million at September 30, 2020. The Company recognized no provision for credit losses in the third quarter 2020.

Noninterest income for the third quarter 2020 totaled $10.5 million, compared to $9.6 million for the second quarter 2020; the increase is due to an improvement in merchant processing service fees and debit card fees. Noninterest income was $1.3 million lower for the third quarter 2020 compared to the third quarter 2019; the decrease is due to lower economic activity reducing activity-based fees related to deposit accounts.

Noninterest expense for the third quarter 2020 was $24.6 million compared to $24.8 million for the second quarter 2020 and $24.0 million for the third quarter 2019.

Westamerica Bancorporation's wholly owned subsidiary Westamerica Bank, operates commercial banking and trust offices throughout Northern and Central California.
 

Westamerica Bancorporation Web Address: www.westamerica.com

For additional information contact:

     Westamerica Bancorporation

     1108 Fifth Avenue, San Rafael, CA 94901

     Robert A. Thorson – SVP & Treasurer

     707-863-6840

     investments@westamerica.com

FORWARD-LOOKING INFORMATION:

The following appears in accordance with the Private Securities Litigation Reform Act of 1995:

This press release may contain forward-looking statements about the Company, including descriptions of plans or objectives of its management for future operations, products or services, and forecasts of its revenues, earnings or other measures of economic performance. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words "believe," "expect," "anticipate," "intend," "plan," "estimate," or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could," or "may."

Forward-looking statements, by their nature, are subject to risks and uncertainties. A number of factors — many of which are beyond the Company's control — could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. The Company's most recent reports filed with the Securities and Exchange Commission, including the annual report for the year ended December 31, 2019 filed on Form 10-K and quarterly report for the quarter ended June 30, 2020 filed on Form 10-Q, describe some of these factors, including certain credit, interest rate, operational, liquidity and market risks associated with the Company's business and operations. Other factors described in these reports include changes in business and economic conditions, competition, fiscal and monetary policies, disintermediation, cyber security risks, legislation including the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2011, the Sarbanes-Oxley Act of 2002 and the Gramm-Leach-Bliley Act of 1999, and mergers and acquisitions.

Forward-looking statements speak only as of the date they are made. The Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date forward looking statements are made.

  Public Information October 15, 2020  
WESTAMERICA BANCORPORATION     
FINANCIAL HIGHLIGHTS     
September 30, 2020     
       
1. Net Income Summary.     
  (in thousands except per-share amounts) 
    %  
  Q3'2020Q3'2019ChangeQ2'2020 
       
 Net Interest and Fee Income (FTE)$41,780$40,3493.5%$42,063 
 Provision for Credit Losses--n/m- 
 Noninterest Income10,47611,809-11.3%9,554 
 Noninterest Expense24,60324,0332.4%24,754 
 Income Before Taxes (FTE)27,65328,125-1.7%26,863 
 Income Tax Provision (FTE)7,6027,735-1.7%7,301 
 Net Income$20,051$20,390-1.7%$19,562 
       
 Average Common Shares Outstanding26,93026,986-0.2%26,935 
 Diluted Average Common Shares26,94627,027-0.3%26,951 
       
 Operating Ratios:     
 Basic Earnings Per Common Share$0.74$0.76-2.6%$0.72 
 Diluted Earnings Per Common Share0.740.75-1.3%0.72 
 Return On Assets (a)1.24%1.45% 1.30% 
 Return On Common Equity (a)11.2%11.9% 11.1% 
 Net Interest Margin (FTE) (a)2.78%3.11% 2.99% 
 Efficiency Ratio (FTE)47.1%46.1% 48.0% 
       
 Dividends Paid Per Common Share$0.41$0.410.0%$0.41 
 Common Dividend Payout Ratio55%55% 57% 
       
    %  
  9/30'20YTD9/30'19YTDChange  
       
 Net Interest and Fee Income (FTE)$124,390$120,9252.9%  
 Provision for Credit Losses4,300-n/m  
 Noninterest Income31,67835,676-11.2%  
 Noninterest Expense74,02174,777-1.0%  
 Income Before Taxes (FTE)77,74781,824-5.0%  
 Income Tax Provision (FTE)21,17222,163-4.5%  
 Net Income$56,575$59,661-5.2%  
       
 Average Common Shares Outstanding26,97726,9240.2%  
 Diluted Average Common Shares26,99826,9760.1%  
       
 Operating Ratios:     
 Basic Earnings Per Common Share$2.10$2.22-5.4%  
 Diluted Earnings Per Common Share2.102.21-5.0%  
 Return On Assets (a)1.25%1.43%   
 Return On Common Equity (a)10.7%11.9%   
 Net Interest Margin (FTE) (a)2.95%3.12%   
 Efficiency Ratio (FTE)47.4%47.8%   
       
 Dividends Paid Per Common Share$1.23$1.220.8%  
 Common Dividend Payout Ratio59%55%   
       
2. Net Interest Income.     
  (dollars in thousands) 
    %  
  Q3'2020Q3'2019ChangeQ2'2020 
       
 Interest and Fee Income (FTE)$42,246$40,8043.5%$42,498 
 Interest Expense4664552.4%435 
 Net Interest and Fee Income (FTE)$41,780$40,3493.5%$42,063 
       
 Average Earning Assets$6,001,287$5,176,74415.9%$5,635,014 
 Average Interest-     
 Bearing Liabilities2,931,7172,586,88013.3%2,774,450 
       
 Yield on Earning Assets (FTE) (a)2.81%3.15% 3.02% 
 Cost of Funds (a)0.03%0.04% 0.03% 
 Net Interest Margin (FTE) (a)2.78%3.11% 2.99% 
 Interest Expense/     
 Interest-Bearing Liabilities (a)0.06%0.07% 0.06% 
 Net Interest Spread (FTE) (a)2.75%3.08% 2.96% 
       
    %  
  9/30'20YTD9/30'19YTDChange  
       
 Interest and Fee Income (FTE)$125,733$122,3622.8%  
 Interest Expense1,3431,437-6.5%  
 Net Interest and Fee Income (FTE)$124,390$120,9252.9%  
       
 Average Earning Assets$5,627,517$5,173,5818.8%  
 Average Interest-     
 Bearing Liabilities2,785,4512,640,7055.5%  
       
 Yield on Earning Assets (FTE) (a)2.98%3.16%   
 Cost of Funds (a)0.03%0.04%   
 Net Interest Margin (FTE) (a)2.95%3.12%   
 Interest Expense/     
 Interest-Bearing Liabilities (a)0.06%0.07%   
 Net Interest Spread (FTE) (a)2.92%3.09%   
       
3. Loans & Other Earning Assets.     
  (average volume, dollars in thousands) 
    %  
  Q3'2020Q3'2019ChangeQ2'2020 
       
 Total Assets$6,414,399$5,570,84315.1%$6,058,365 
 Total Earning Assets6,001,2875,176,74415.9%5,635,014 
 Total Loans1,312,7581,142,66814.9%1,232,073 
 Total Commercial Loans444,091231,23292.1%344,053 
 Paycheck Protection Program (PPP) Loans243,104-n/m132,500 
 Commercial Loans200,987231,232-13.1%211,553 
 Commercial RE Loans566,626579,069-2.1%578,572 
 Consumer Loans302,041332,367-9.1%309,448 
 Total Investment Securities4,360,1193,687,04918.3%3,957,851 
 Equity Securities-352n/m- 
 Debt Securities Available For Sale3,750,7372,862,53731.0%3,293,009 
 Debt Securities Held To Maturity609,382824,160-26.1%664,842 
 Total Interest-Bearing Cash328,410347,027-5.4%445,090 
       
 Loans/Deposits23.7%24.0% 23.7% 
       
    %  
  9/30'20YTD9/30'19YTDChange  
       
 Total Assets$6,044,098$5,580,9658.3%  
 Total Earning Assets5,627,5175,173,5818.8%  
 Total Loans1,223,2501,177,0573.9%  
 Total Commercial Loans337,566258,31730.7%  
 PPP Loans125,632-n/m  
 Commercial Loans211,934258,317-18.0%  
 Commercial RE Loans574,950580,453-0.9%  
 Consumer Loans310,734338,287-8.1%  
 Total Investment Securities4,055,7333,675,10210.4%  
 Equity Securities-1,285n/m  
 Debt Securities Available For Sale3,394,4672,782,89822.0%  
 Debt Securities Held To Maturity661,266890,919-25.8%  
 Total Interest-Bearing Cash348,534321,4228.4%  
       
 Loans/Deposits23.6%24.6%   
       
4. Deposits, Other Interest-Bearing Liabilities & Equity.   
  (average volume, dollars in thousands) 
    %  
  Q3'2020Q3'2019ChangeQ2'2020 
       
 Total Deposits$5,533,144$4,770,97616.0%$5,200,475 
 Noninterest Demand2,695,4582,234,49420.6%2,496,840 
 Interest-Bearing Transaction1,039,833916,18013.5%980,872 
 Savings1,634,8141,441,28213.4%1,558,201 
 Time greater than $100K72,04577,568-7.1%72,267 
 Time less than $100K90,994101,452-10.3%92,295 
 Total Short-Term Borrowings94,03150,39886.6%70,116 
 Other Borrowed Funds--n/m699 
 Shareholders' Equity714,400681,5134.8%705,882 
       
 Demand Deposits/     
 Total Deposits48.7%46.8% 48.0% 
 Transaction & Savings     
 Deposits / Total Deposits97.1%96.2% 96.8% 
       
    %  
  9/30'20YTD9/30'19YTDChange  
       
 Total Deposits$5,188,797$4,789,0848.3%  
 Noninterest Demand2,472,4952,203,75512.2%  
 Interest-Bearing Transaction987,666935,8115.5%  
 Savings1,563,3871,464,0376.8%  
 Time greater than $100K72,71880,142-9.3%  
 Time less than $100K92,531105,339-12.2%  
 Total Short-Term Borrowings68,91755,37624.5%  
 Other Borrowed Funds232-n/m  
 Shareholders' Equity708,559669,0435.9%  
       
 Demand Deposits/     
 Total Deposits47.7%46.0%   
 Transaction & Savings     
 Deposits / Total Deposits96.8%96.1%   
       
5. Interest Yields Earned & Rates Paid.     
  (dollars in thousands)  
  Q3'2020  
  AverageIncome/Yield (a) /  
  VolumeExpenseRate (a)  
       
 Interest & Fee Income Earned     
 Total Earning Assets (FTE)$6,001,287$42,2462.81%  
 Total Loans (FTE)1,312,75815,3944.67%  
 Total Commercial Loans (FTE)444,0914,6484.16%  
 PPP Loans243,1042,5014.08%  
 Commercial Loans (FTE)200,9872,1474.25%  
 Commercial RE Loans566,6267,2985.12%  
 Consumer Loans302,0413,4484.54%  
 Total Investments (FTE)4,360,11926,7682.46%  
 Total Interest-Bearing Cash328,410840.10%  
       
 Interest Expense Paid     
 Total Earning Assets6,001,2874660.03%  
 Total Interest-Bearing Liabilities2,931,7174660.06%  
 Total Interest-Bearing Deposits2,837,6864500.06%  
 Interest-Bearing Transaction1,039,833850.03%  
 Savings1,634,8142380.06%  
 Time less than $100K90,994470.21%  
 Time greater than $100K72,045800.44%  
 Total Short-Term Borrowings94,031160.07%  
 Other Borrowed Funds--n/m  
       
 Net Interest Income and     
 Margin (FTE) $41,7802.78%  
       
  Q3'2019  
  AverageIncome/Yield (a) /  
  VolumeExpenseRate (a)  
 Interest & Fee Income Earned     
 Total Earning Assets (FTE)$5,176,744$40,8043.15%  
 Total Loans (FTE)1,142,66814,5355.05%  
 Commercial Loans (FTE)231,2323,1025.32%  
 Commercial RE Loans579,0697,7725.32%  
 Consumer Loans332,3673,6614.37%  
 Total Investments (FTE)3,687,04924,3682.64%  
 Total Interest-Bearing Cash347,0271,9012.14%  
       
 Interest Expense Paid     
 Total Earning Assets5,176,7444550.04%  
 Total Interest-Bearing Liabilities2,586,8804550.07%  
 Total Interest-Bearing Deposits2,536,4824470.07%  
 Interest-Bearing Transaction916,180920.04%  
 Savings1,441,2822100.06%  
 Time less than $100K101,452640.25%  
 Time greater than $100K77,568810.41%  
 Total Short-Term Borrowings50,39880.06%  
       
 Net Interest Income and     
 Margin (FTE) $40,3493.11%  
       
6. Noninterest Income.     
  (dollars in thousands except per-share amounts) 
    %  
  Q3'2020Q3'2019ChangeQ2'2020 
       
 Service Charges on Deposits$3,298$4,510-26.9%$3,151 
 Merchant Processing Services2,8602,49414.7%2,277 
 Debit Card Fees1,6111,641-1.8%1,459 
 Trust Fees7567333.1%714 
 ATM Processing Fees606725-16.4%518 
 Other Service Fees454580-21.7%420 
 Financial Services Commissions5875-22.7%123 
 Securities Gains--n/m71 
 Other Operating8331,051-20.7%821 
 Total Noninterest Income$10,476$11,809-11.3%$9,554 
       
 Total Revenue (FTE)$52,256$52,1580.2%$51,617 
 Noninterest Income/Revenue (FTE)20.0%22.6% 18.5% 
 Service Charges/Avg. Deposits (a)0.24%0.38% 0.24% 
 Total Revenues (FTE) Per Avg.     
 Common Share (a)$7.72$7.670.7%$7.71 
       
    %  
  9/30'20YTD9/30'19YTDChange  
       
 Service Charges on Deposits$10,697$13,508-20.8%  
 Merchant Processing Services7,4957,708-2.8%  
 Debit Card Fees4,5384,789-5.2%  
 Trust Fees2,2472,1992.2%  
 ATM Processing Fees1,7032,080-18.1%  
 Other Service Fees1,3801,742-20.8%  
 Financial Services Commissions30627013.4%  
 Life Insurance Gains-433n/m  
 Securities Gains7150n/m  
 Other Operating (4)3,2412,89711.9%  
 Total Noninterest Income$31,678$35,676-11.2%  
       
 Total Revenue (FTE)$156,068$156,601-0.3%  
 Noninterest Income/Revenue (FTE)20.3%22.8%   
 Service Charges/Avg. Deposits (a)0.28%0.38%   
 Total Revenues (FTE) Per Avg./     
 Common Share (a)$7.73$7.78-0.6%  
       
7. Noninterest Expense.     
  (dollars in thousands) 
    %  
  Q3'2020Q3'2019ChangeQ2'2020 
       
 Salaries & Benefits$12,540$12,559-0.2%$12,900 
 Occupancy and Equipment5,0145,199-3.6%4,791 
 Outsourced Data Processing2,3382,374-1.5%2,324 
 Professional Fees6696453.7%643 
 Courier Service5004569.6%508 
 Amortization of     
 Identifiable Intangibles7276-5.3%73 
 Other Operating3,4702,72427.4%3,515 
 Total Noninterest Expense$24,603$24,0332.4%$24,754 
       
 Noninterest Expense/     
  Avg. Earning Assets (a)1.63%1.84% 1.77% 
 Noninterest Expense/Revenues (FTE)47.1%46.1% 48.0% 
       
    %  
  9/30'20YTD9/30'19YTDChange  
       
 Salaries & Benefits$38,458$38,757-0.8%  
 Occupancy and Equipment14,73715,163-2.8%  
 Outsourced Data Processing7,0677,110-0.6%  
 Professional Fees1,7011,791-5.0%  
 Courier Service1,4991,34911.1%  
 Amortization of     
 Identifiable Intangibles218465-53.1%  
 Loss Contingency (1)-553n/m  
 Other Operating10,3419,5897.8%  
 Total Noninterest Expense$74,021$74,777-1.0%  
       
 Noninterest Expense/     
 Avg. Earning Assets (a)1.76%1.93%   
 Noninterest Expense/Revenues (FTE)47.4%47.8%   
       
8. Allowance for Credit Losses.     
  (dollars in thousands) 
    %  
  Q3'2020Q3'2019ChangeQ2'2020 
       
 Average Total Loans$1,312,758$1,142,66814.9%$1,232,073 
       
 Beginning of Period Allowance for     
 Credit Losses on Loans (ACLL)$24,529$20,11721.9%$24,804 
 Provision for Credit Losses--n/m- 
 Net ACLL Losses(387)(289)33.9%(275) 
 End of Period ACLL$24,142$19,82821.8%$24,529 
 Gross ACLL Recoveries /     
 Gross ACLL Losses56%72% 66% 
 Net ACLL Losses /     
 Avg. Total Loans (a)0.12%0.10% 0.09% 
       
    %  
  9/30'20YTD9/30'19YTDChange  
       
 Average Total Loans$1,223,250$1,177,0573.9%  
       
 Prior Period Allowance for     
 Credit Losses on Loans (ACLL)$19,484$21,351-8.7%  
 Adoption of ASU 2016-13(2)2,017-n/m  
 Beginning of Period ACLL21,50121,3510.7%  
 Provision for Credit Losses4,300-n/m  
 Net ACLL Losses(1,659)(1,523)8.9%  
 End of Period ACLL$24,142$19,82821.8%  
 Gross ACLL Recoveries /     
 Gross ACLL Losses49%55%   
 Net ACLL Losses /     
 Avg. Total Loans (a)0.18%0.17%   
       
  (dollars in thousands) 
    %  
  9/30/209/30/19Change6/30/20 
 Allowance for Credit Losses on Loans$24,142$19,82821.8%$24,529 
 Allowance for Credit Losses on     
 HTM Securities16-n/m16 
 Total Allowance for Credit Losses$24,158$19,82821.8%$24,545 
       
 Allowance for Unfunded     
 Credit Commitments532,308-97.7%53 
       
9. Credit Quality.     
  (dollars in thousands) 
    %  
  9/30/209/30/19Change6/30/20 
 Nonperforming Loans:     
 Nonperforming Nonaccrual$409$633-35.4%$590 
 Performing Nonaccrual3,9713,6708.2%3,643 
 Total Nonaccrual Loans4,3804,3031.8%4,233 
 90+ Days Past Due Accruing Loans3603512.6%290 
 Total4,7404,6541.8%4,523 
 Repossessed Loan Collateral43430.0%43 
 Total Nonperforming Assets$4,783$4,6971.8%$4,566 
       
 Total Loans Outstanding$1,310,009$1,133,22915.6%$1,316,359 
       
 Total Assets$6,563,215$5,616,05516.9%$6,463,889 
       
 Loans:     
 Allowance for Credit Losses on Loans$24,142$19,82821.8%$24,529 
 Allowance for Credit Losses on Loans /     
 Loans1.84%1.75% 1.86% 
 Nonperforming Loans/Total Loans0.36%0.41% 0.34% 
       
10. Capital.     
  (in thousands, except per-share amounts) 
    %  
  9/30/209/30/19Change6/30/20 
       
 Shareholders' Equity$825,576$713,37815.7%$808,076 
 Total Assets6,563,2155,616,05516.9%6,463,889 
 Shareholders' Equity/     
 Total Assets12.58%12.70% 12.50% 
 Shareholders' Equity/     
 Total Loans63.02%62.95% 61.39% 
 Tangible Common Equity Ratio10.91%10.75% 10.81% 
 Common Shares Outstanding26,89827,014-0.4%26,933 
 Common Equity Per Share$30.69$26.4116.2%$30.00 
 Market Value Per Common Share54.3562.18-12.6%57.42 
       
 Share Repurchase Programs     
  (shares in thousands) 
    %  
  Q3'2020Q3'2019ChangeQ2'2020 
       
 Total Shares Repurchased35-n/m13 
 Average Repurchase Price$52.42$-n/m$52.27 
 Net Shares Repurchased (Issued)35(52)n/m(1) 
       
    %  
  9/30'20YTD9/30'19YTDChange  
       
 Total Shares Repurchased2288n/m  
 Average Repurchase Price$51.39$61.98n/m  
 Net Shares Repurchased ( Issued)164(284)n/m  
       
11. Period-End Balance Sheets.     
  (unaudited, dollars in thousands) 
    %  
  9/30/209/30/19Change6/30/20 
 Assets:     
 Cash and Due from Banks$398,964$415,639-4.0%$500,820 
       
 Investment Securities:     
 Equity Securities--n/m- 
 Debt Securities Available For Sale3,983,9942,983,76733.5%3,708,370 
 Debt Securities Held To Maturity (3)577,795793,216-27.2%638,281 
       
 Loans1,310,0091,133,22915.6%1,316,359 
 Allowance For Credit Losses on Loans(24,142)(19,828)21.8%(24,529) 
 Total Loans, net1,285,8671,113,40115.5%1,291,830 
       
 Other Real Estate Owned43430.0%43 
 Premises and Equipment, net33,43734,080-1.9%34,061 
 Identifiable Intangibles, net1,1731,464-19.9%1,245 
 Goodwill121,673121,6730.0%121,673 
 Other Assets160,269152,7724.9%167,566 
       
 Total Assets$6,563,215$5,616,05516.9%$6,463,889 
       
 Liabilities and Shareholders' Equity:     
 Deposits:     
 Noninterest-Bearing$2,684,028$2,265,64018.5%$2,702,885 
 Interest-Bearing Transaction1,040,712910,56614.3%997,593 
 Savings1,653,0001,445,21014.4%1,605,169 
 Time161,450175,207-7.9%162,765 
 Total Deposits5,539,1904,796,62315.5%5,468,412 
       
 Short-Term Borrowed Funds107,97345,646136.5%86,170 
 Other Liabilities90,47660,40849.8%101,231 
 Total Liabilities5,737,6394,902,67717.0%5,655,813 
       
 Shareholders' Equity:     
 Common Equity:     
 Paid-In Capital467,236463,4240.8%467,386 
 Accumulated Other     
 Comprehensive Income103,62320,454n/m93,732 
 Retained Earnings254,717229,50011.0%246,958 
 Total Shareholders' Equity825,576713,37815.7%808,076 
       
 Total Liabilities and     
 Shareholders' Equity$6,563,215$5,616,05516.9%$6,463,889 
       
12. Income Statements.     
  (unaudited, in thousands except per-share amounts) 
    %  
  Q3'2020Q3'2019ChangeQ2'2020 
 Interest & Fee Income:     
 Loans$15,291$14,4316.0%$15,278 
 Investment Securities:     
 Equity Securities1039212.0%103 
 Debt Securities Available For Sale22,65218,73620.9%22,429 
 Debt Securities Held To Maturity3,2354,535-28.7%3,616 
 Interest-Bearing Cash841,901-95.6%113 
 Total Interest & Fee Income41,36539,6944.2%41,539 
       
 Interest Expense:     
 Transaction Deposits8592-7.6%74 
 Savings Deposits23821013.3%224 
 Time Deposits127145-12.4%126 
 Short-Term Borrowed Funds16895.1%10 
 Other Borrowed Funds--n/m1 
 Total Interest Expense4664552.4%435 
       
 Net Interest Income40,89939,2404.2%41,104 
       
 Provision for Credit Losses--n/m- 
       
 Noninterest Income:     
 Service Charges3,2984,510-26.9%3,151 
 Merchant Processing Services2,8602,49414.7%2,277 
 Debit Card Fees1,6111,641-1.9%1,459 
 Trust Fees7567333.0%714 
 ATM Processing Fees606725-16.4%518 
 Other Service Fees454580-21.7%420 
 Financial Services Commissions5875-22.7%123 
 Securities Gains--n/m71 
 Other Operating8331,051-20.7%821 
 Total Noninterest Income10,47611,809-11.3%9,554 
       
 Noninterest Expense:     
 Salaries and Benefits12,54012,559-0.2%12,900 
 Occupancy and Equipment5,0145,199-3.6%4,791 
 Outsourced Data Processing2,3382,374-1.5%2,324 
 Professional Fees6696453.7%643 
 Courier Service5004569.6%508 
 Amortization of Identifiable Intangibles7276-5.3%73 
 Other Operating3,4702,72427.4%3,515 
 Total Noninterest Expense24,60324,0332.4%24,754 
       
 Income Before Income Taxes26,77227,016-0.9%25,904 
 Income Tax Provision6,7216,6261.4%6,342 
 Net Income$20,051$20,390-1.7%$19,562 
       
 Average Common Shares Outstanding26,93026,986-0.2%26,935 
 Diluted Common Shares Outstanding26,94627,027-0.3%26,951 
       
 Per Common Share Data:     
 Basic Earnings$0.74$0.76-2.6%$0.72 
 Diluted Earnings0.740.75-1.3%0.72 
 Dividends Paid0.410.410.0%0.41 
    %  
  9/30'20YTD9/30'19YTDChange  
 Interest & Fee Income:     
 Loans$44,378$44,0500.7%  
 Investment Securities:     
 Equity Securities3092896.9%  
 Debt Securities Available For Sale66,39654,08022.8%  
 Debt Securities Held To Maturity10,75914,788-27.2%  
 Interest-Bearing Cash1,0535,597-81.2%  
 Total Interest & Fee Income122,895118,8043.4%  
       
 Interest Expense:     
 Transaction Deposits243333-27.0%  
 Savings Deposits6796376.5%  
 Time Deposits386440-12.3%  
 Short-Term Borrowed Funds342725.9%  
 Other Borrowed Funds1-n/m  
 Total Interest Expense1,3431,437-6.5%  
       
 Net Interest Income121,552117,3673.6%  
       
 Provision for Credit Losses4,300-n/m  
       
 Noninterest Income:     
 Service Charges10,69713,508-20.8%  
 Merchant Processing Services7,4957,708-2.8%  
 Debit Card Fees4,5384,789-5.2%  
 Trust Fees2,2472,1992.2%  
 ATM Processing Fees1,7032,080-18.1%  
 Other Service Fees1,3801,742-20.8%  
 Financial Services Commissions30627013.3%  
 Life Insurance Gains-433n/m  
 Securities Gains7150n/m  
 Other Operating (4)3,2412,89711.9%  
 Total Noninterest Income31,67835,676-11.2%  
       
 Noninterest Expense:     
 Salaries and Benefits38,45838,757-0.8%  
 Occupancy and Equipment14,73715,163-2.8%  
 Outsourced Data Processing7,0677,110-0.6%  
 Professional Fees1,7011,791-5.0%  
 Courier Service1,4991,34911.1%  
 Amortization of Identifiable Intangibles218465-53.1%  
 Loss Contingency (1)-553n/m  
 Other Operating10,3419,5897.8%  
 Total Noninterest Expense74,02174,777-1.0%  
       
 Income Before Income Taxes74,90978,266-4.3%  
 Income Tax Provision18,33418,605-1.5%  
 Net Income$56,575$59,661-5.2%  
       
 Average Common Shares Outstanding26,97726,9240.2%  
 Diluted Common Shares Outstanding26,99826,9760.1%  
       
 Per Common Share Data:     
 Basic Earnings$2.10$2.22-5.4%  
 Diluted Earnings2.102.21-5.0%  
 Dividends Paid1.231.220.8%  
       
       
 Footnotes and Abbreviations:     
       
 (1) In the second quarter 2019, the Company recorded a $301 thousand increase in estimated customer refunds of revenue recognized prior to 2018 and a $252 thousand loss settlement to dismiss a lawsuit. 
       
 (2) Effective January 1, 2020, the Company adopted Accounting Standards Update (ASU) 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments ("CECL"), resulting in a period opening adjustment to the allowance for credit losses for loans and held-to-maturity debt securities, other liabilities, deferred tax assets, and shareholders' equity. 
       
 (3) The Company adopted ASU 2016-13, effective January 1, 2020. Debt Securities Held To Maturity of $577,795 thousand at September 30, 2020 and $638,281 thousand at June 30, 2020 are net of related reserve for expected credit losses of $16 thousand. 
       
 (4) The Company received $603 thousand in excess of amounts charged-off in prior periods on a purchased loan during the first quarter 2020, representing the recovery of a purchased loan credit-risk discount. 
       
 (FTE) Fully Taxable Equivalent. The Company presents its net interest margin and net interest income on a FTE basis using the current statutory federal tax rate. Management believes the FTE basis is valuable to the reader because the Company's loan and investment securities portfolios contain a relatively large portion of municipal loans and securities that are federally tax exempt. The Company's tax exempt loans and securities composition may not be similar to that of other banks, therefore in order to reflect the impact of the federally tax exempt loans and securities on the net interest margin and net interest income for comparability with other banks, the Company presents its net interest margin and net interest income on a FTE basis. 
       
 (a) Annualized     
       
 Certain amounts in prior periods have been reclassified to conform to the current presentation.  

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