MIL-OSI: Westamerica Bancorporation Reports Third Quarter 2021 Financial Results

1

Source: GlobeNewswire (MIL-OSI)

SAN RAFAEL, Calif., Oct. 21, 2021 (GLOBE NEWSWIRE) — Westamerica Bancorporation (Nasdaq: WABC), parent company of Westamerica Bank, generated net income for the third quarter 2021 of $22.1 million and diluted earnings per common share (“EPS”) of $0.82. Third quarter 2021 results include “make-whole” interest income on corporate bonds redeemed prior to maturity, which increased EPS $0.02. These results compare to net income of $22.6 million and EPS of $0.84 for the second quarter 2021, which included “make-whole” interest income on corporate bonds redeemed before maturity, which increased EPS $0.04.

“Westamerica’s valuable deposit base generated a very low 0.03 percent annualized cost of funding our loan and bond portfolios during the third quarter 2021. Operating expenses remained well managed in the third quarter 2021, delivering fifty-five percent of revenue to pre-tax income. Credit quality remained solid with nonperforming loans of $1.8 million at September 30, 2021,” said Chairman, President and CEO David Payne. “Third quarter 2021 results generated an annualized 11.6 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 $44.0 million for the third quarter 2021, including “make-whole” interest income on corporate bonds redeemed prior to maturity of $732 thousand. Third quarter 2021 net interest income (FTE) compares to $44.5 million for the second quarter 2021, which included “make-whole” interest income on corporate bonds redeemed prior to maturity of $1.4 million. PPP loan average balances declined to $145 million for the third quarter 2021 from $208 million for the second quarter 2021; at September 30, 2021 PPP loans totaled $103 million. Checking and savings deposits represented ninety-eight percent of the Company’s average deposit base during the third quarter 2021, generating a low 0.03 percent annualized cost of funding interest-earning assets.

At September 30, 2021, nonperforming loans declined to $1.8 million due to the full payoff of a $3.1 million non-accrual loan during the third quarter 2021. The allowance for credit losses on loans was $23.9 million at September 30, 2021. The Company continues to work with loan customers requesting loan payment deferrals due to economic weakness caused by the pandemic. At September 30, 2021, loans with deferred payments totaled $1.0 million, all of which were consumer automobile loans.

Noninterest income for the third quarter 2021 totaled $11.3 million, compared to noninterest income for the second quarter 2021 of $11.0 million. The increase in noninterest income was primarily due to higher levels of deposit related fees.

Noninterest expense for the third quarter 2021 was $24.7 million compared to $24.3 million for the second quarter 2021.

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, 2020 filed on Form 10-K and quarterly report for the quarter ended June 30, 2021 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 21, 2021         
WESTAMERICA BANCORPORATION              
FINANCIAL HIGHLIGHTS              
September 30, 2021              
                 
1. Net Income Summary.              
    (in thousands except per-share amounts)       
            %    
    Q3’2021   Q3’2020   Change Q2’2021  
                 
  Net Interest and Fee Income (FTE) $43,952   $41,780   5.2% $44,499  
  Provision for Credit Losses     n/m  
  Noninterest Income 11,282   10,476   7.7% 11,032  
  Noninterest Expense 24,697   24,603   0.4% 24,291  
  Income Before Taxes (FTE) 30,537   27,653   10.4% 31,240  
  Income Tax Provision (FTE) 8,474   7,602   11.5% 8,661  
  Net Income $22,063   $20,051   10.0% $22,579  
                 
  Average Common Shares Outstanding 26,866   26,930   -0.2% 26,865  
  Diluted Average Common Shares 26,875   26,946   -0.3% 26,887  
                 
  Operating Ratios:              
  Basic Earnings Per Common Share $0.82   $0.74   10.8% $0.84  
  Diluted Earnings Per Common Share 0.82   0.74   10.8% 0.84  
  Return On Assets (a) 1.22%   1.24%     1.29%  
  Return On Common Equity (a) 11.6%   11.2%     12.2%  
  Net Interest Margin (FTE) (a) 2.60%   2.78%     2.70%  
  Efficiency Ratio (FTE) 44.7%   47.1%     43.7%  
                 
  Dividends Paid Per Common Share $0.41   $0.41   0.0% $0.41  
  Common Dividend Payout Ratio 50%   55%     49%  
                 
            %    
    9/30’21YTD   9/30’20YTD   Change    
                 
  Net Interest and Fee Income (FTE) $131,034   $124,390   5.3%    
  Provision for Credit Losses   4,300   n/m    
  Noninterest Income 32,503   31,678   2.6%    
  Noninterest Expense 73,894   74,021   -0.2%    
  Income Before Taxes (FTE) 89,643   77,747   15.3%    
  Income Tax Provision (FTE) 24,854   21,172   17.4%    
  Net Income $64,789   $56,575   14.5%    
                 
  Average Common Shares Outstanding 26,851   26,977   -0.5%    
  Diluted Average Common Shares 26,868   26,998   -0.5%    
                 
  Operating Ratios:              
  Basic Earnings Per Common Share $2.41   $2.10   14.8%    
  Diluted Earnings Per Common Share 2.41   2.10   14.8%    
  Return On Assets (a) 1.25%   1.25%        
  Return On Common Equity (a) 11.6%   10.7%        
  Net Interest Margin (FTE) (a) 2.67%   2.95%        
  Efficiency Ratio (FTE) 45.2%   47.4%        
                 
  Dividends Paid Per Common Share $1.23   $1.23   0.0%    
  Common Dividend Payout Ratio 51%   59%        
                 
2. Net Interest Income.              
    (dollars in thousands)       
            %    
    Q3’2021   Q3’2020   Change Q2’2021  
                 
  Interest and Fee Income (FTE) $44,444   $42,246   5.2% $44,983  
  Interest Expense 492   466   5.6% 484  
  Net Interest and Fee Income (FTE) $43,952   $41,780   5.2% $44,499  
                 
  Average Earning Assets $6,754,281   $6,001,287   12.5% $6,603,343  
  Average Interest-              
     Bearing Liabilities 3,370,840   2,931,717   15.0% 3,298,221  
                 
  Yield on Earning Assets (FTE) (a) 2.63%   2.81%     2.73%  
  Cost of Funds (a) 0.03%   0.03%     0.03%  
  Net Interest Margin (FTE) (a) 2.60%   2.78%     2.70%  
  Interest Expense/              
     Interest-Bearing Liabilities (a) 0.06%   0.06%     0.06%  
  Net Interest Spread (FTE) (a) 2.57%   2.75%     2.67%  
                 
            %    
    9/30’21YTD   9/30’20YTD   Change    
                 
  Interest and Fee Income (FTE) $132,485   $125,733   5.4%    
  Interest Expense 1,451   1,343   8.0%    
  Net Interest and Fee Income (FTE) $131,034   $124,390   5.3%    
                 
  Average Earning Assets $6,535,949   $5,627,517   16.1%    
  Average Interest-              
     Bearing Liabilities 3,267,311   2,785,451   17.3%    
                 
  Yield on Earning Assets (FTE) (a) 2.70%   2.98%        
  Cost of Funds (a) 0.03%   0.03%        
  Net Interest Margin (FTE) (a) 2.67%   2.95%        
  Interest Expense/              
     Interest-Bearing Liabilities (a) 0.06%   0.06%        
  Net Interest Spread (FTE) (a) 2.64%   2.92%        
                 
3. Loans & Other Earning Assets.              
    (average volume, dollars in thousands)       
            %    
    Q3’2021   Q3’2020   Change Q2’2021  
                 
  Total Assets $7,158,462   $6,414,399   11.6% $7,004,695  
  Total Earning Assets 6,754,281   6,001,287   12.5% 6,603,343  
  Total Loans 1,176,114   1,312,758   -10.4% 1,257,087  
    Total Commercial Loans 333,327   444,091   -24.9% 413,797  
      Paycheck Protection Program (PPP) Loans 144,641   243,104   -40.5% 207,515  
      Commercial Loans 188,686   200,987   -6.1% 206,282  
    Commercial RE Loans 543,429   566,626   -4.1% 546,470  
    Consumer Loans 299,358   302,041   -0.9% 296,820  
  Total Investment Securities 4,615,540   4,360,119   5.9% 4,394,169  
    Debt Securities Available For Sale 4,235,141   3,750,737   12.9% 3,953,016  
    Debt Securities Held To Maturity 380,399   609,382   -37.6% 441,153  
  Total Interest-Bearing Cash 962,627   328,410   193.1% 952,087  
                 
  Loans/Deposits 18.9%   23.7%     20.7%  
                 
            %    
    9/30’21YTD   9/30’20YTD   Change    
                 
  Total Assets $6,939,636   $6,044,098   14.8%    
  Total Earning Assets 6,535,949   5,627,517   16.1%    
  Total Loans 1,227,971   1,223,250   0.4%    
    Total Commercial Loans 380,638   337,566   12.8%    
      PPP Loans 180,214   125,632   43.4%    
      Commercial Loans 200,424   211,934   -5.4%    
    Commercial RE Loans 549,639   574,950   -4.4%    
    Consumer Loans 297,694   310,734   -4.2%    
  Total Investment Securities 4,484,084   4,055,733   10.6%    
    Debt Securities Available For Sale 4,046,289   3,394,467   19.2%    
    Debt Securities Held To Maturity 437,795   661,266   -33.8%    
  Total Interest-Bearing Cash 823,894   348,534   136.4%    
                 
  Loans/Deposits 20.4%   23.6%        
                 
4. Deposits, Other Interest-Bearing Liabilities & Equity.          
    (average volume, dollars in thousands)       
            %    
    Q3’2021   Q3’2020   Change Q2’2021  
                 
  Total Deposits $6,223,500   $5,533,144   12.5% $6,074,730  
    Noninterest Demand 2,960,207   2,695,458   9.8% 2,888,259  
    Interest-Bearing Transaction 1,246,667   1,039,833   19.9% 1,208,584  
    Savings 1,864,401   1,634,814   14.0% 1,822,625  
    Time greater than $100K 68,811   72,045   -4.5% 70,750  
    Time less than $100K 83,414   90,994   -8.3% 84,512  
  Total Short-Term Borrowings 107,547   94,031   14.4% 111,750  
  Shareholders’ Equity 755,682   714,400   5.8% 744,746  
                 
  Demand Deposits/              
     Total Deposits 47.6%   48.7%     47.5%  
  Transaction & Savings              
     Deposits / Total Deposits 97.6%   97.1%     97.4%  
                 
            %    
    9/30’21YTD   9/30’20YTD   Change    
                 
  Total Deposits $6,017,175   $5,188,797   16.0%    
    Noninterest Demand 2,854,936   2,472,495   15.5%    
    Interest-Bearing Transaction 1,195,762   987,666   21.1%    
    Savings 1,811,711   1,563,387   15.9%    
    Time greater than $100K 70,258   72,718   -3.4%    
    Time less than $100K 84,508   92,531   -8.7%    
  Total Short-Term Borrowings 105,001   68,917   52.4%    
  Other Borrowed Funds 71   232   -69.5%    
  Shareholders’ Equity 745,382   708,559   5.2%    
                 
  Demand Deposits/              
     Total Deposits 47.4%   47.7%        
  Transaction & Savings              
     Deposits / Total Deposits 97.4%   96.8%        
                 
5. Interest Yields Earned & Rates Paid.              
    (dollars in thousands)        
    Q3’2021        
    Average   Income/   Yield (a) /    
    Volume   Expense   Rate (a)    
                 
  Interest & Fee Income Earned              
    Total Earning Assets (FTE) $6,754,281   $44,444   2.63%    
    Total Loans (FTE) 1,176,114   14,893   5.02%    
      Total Commercial Loans (FTE) 333,327   3,866   4.60%    
        PPP Loans 144,641   1,865   5.12%    
        Commercial Loans (FTE) 188,686   2,001   4.21%    
      Commercial RE Loans 543,429   7,457   5.44%    
      Consumer Loans 299,358   3,570   4.73%    
    Total Investments (FTE) 4,615,540   29,182   2.53%    
    Total Interest-Bearing Cash 962,627   369   0.15%    
                 
  Interest Expense Paid              
    Total Earning Assets 6,754,281   492   0.03%    
    Total Interest-Bearing Liabilities 3,370,840   492   0.06%    
    Total Interest-Bearing Deposits 3,263,293   473   0.06%    
      Interest-Bearing Transaction 1,246,667   101   0.03%    
      Savings 1,864,401   272   0.06%    
      Time less than $100K 83,414   42   0.20%    
      Time greater than $100K 68,811   58   0.33%    
    Total Short-Term Borrowings 107,547   19   0.07%    
                 
  Net Interest Income and              
  Margin (FTE)     $43,952   2.60%    
                 
    Q3’2020         
    Average   Income/   Yield (a) /    
    Volume   Expense   Rate (a)    
                 
  Interest & Fee Income Earned              
    Total Earning Assets (FTE) $6,001,287   $42,246   2.81%    
    Total Loans (FTE) 1,312,758   15,394   4.67%    
      Total Commercial Loans (FTE) 444,091   4,648   4.16%    
        PPP Loans 243,104   2,501   4.08%    
        Commercial Loans (FTE) 200,987   2,147   4.25%    
      Commercial RE Loans 566,626   7,298   5.12%    
      Consumer Loans 302,041   3,448   4.54%    
    Total Investments (FTE) 4,360,119   26,768   2.46%    
    Total Interest-Bearing Cash 328,410   84   0.10%    
                 
  Interest Expense Paid              
    Total Earning Assets 6,001,287   466   0.03%    
    Total Interest-Bearing Liabilities 2,931,717   466   0.06%    
    Total Interest-Bearing Deposits 2,837,686   450   0.06%    
      Interest-Bearing Transaction 1,039,833   85   0.03%    
      Savings 1,634,814   238   0.06%    
      Time less than $100K 90,994   47   0.21%    
      Time greater than $100K 72,045   80   0.44%    
    Total Short-Term Borrowings 94,031   16   0.07%    
                 
  Net Interest Income and              
  Margin (FTE)     $41,780   2.78%    
                 
6. Noninterest Income.              
    (dollars in thousands except per-share amounts)       
            %    
    Q3’2021   Q3’2020   Change Q2’2021  
                 
  Service Charges on Deposits $3,578   $3,298   8.5% $3,235  
  Merchant Processing Services 3,159   2,860   10.5% 3,279  
  Debit Card Fees 1,740   1,611   8.0% 1,791  
  Trust Fees 839   756   11.0% 827  
  ATM Processing Fees 573   606   -5.4% 618  
  Other Service Fees 475   454   4.5% 491  
  Financial Services Commissions 95   58   63.8% 95  
  Securities Gains     n/m 34  
  Other Noninterest Income 823   833   -1.2% 662  
  Total Noninterest Income $11,282   $10,476   7.7% $11,032  
                 
    Total Revenue (FTE) $55,234   $52,256   5.7% $55,531  
    Noninterest Income/Revenue (FTE) 20.4%   20.0%     19.9%  
    Service Charges/Avg. Deposits (a) 0.23%   0.24%     0.21%  
    Total Revenues (FTE) Per Avg.              
  Common Share (a) $8.16   $7.72   5.7% $8.29  
                 
            %    
    9/30’21YTD   9/30’20YTD   Change    
                 
  Service Charges on Deposits $10,117   $10,697   -5.4%    
  Merchant Processing Services 8,998   7,495   20.1%    
  Debit Card Fees 5,132   4,538   13.1%    
  Trust Fees 2,467   2,247   9.8%    
  ATM Processing Fees 1,792   1,703   5.2%    
  Other Service Fees 1,435   1,380   4.0%    
  Financial Services Commissions 260   306   -15.0%    
  Securities Gains 34   71   n/m    
  Other Noninterest Income 2,268   3,241   -30.0%    
  Total Noninterest Income $32,503   $31,678   2.6%    
                 
    Total Revenue (FTE) $163,537   $156,068   4.8%    
    Noninterest Income/Revenue (FTE) 19.9%   20.3%        
    Service Charges/Avg. Deposits (a) 0.22%   0.28%        
    Total Revenues (FTE) Per Avg./              
  Common Share (a) $8.14   $7.73   5.4%    
                 
7. Noninterest Expense.              
    (dollars in thousands)       
            %    
    Q3’2021   Q3’2020   Change Q2’2021  
                 
  Salaries & Benefits $11,813   $12,540   -5.8% $12,097  
  Occupancy and Equipment 4,759   5,014   -5.1% 4,808  
  Outsourced Data Processing 2,429   2,338   3.9% 2,425  
  Professional Fees 724   669   8.2% 830  
  Courier Service 534   500   6.8% 567  
  Amortization of              
    Identifiable Intangibles 67   72   -6.9% 68  
  Other Noninterest Expense 4,371   3,470   26.0% 3,496  
  Total Noninterest Expense $24,697   $24,603   0.4% $24,291  
                 
  Noninterest Expense/              
     Avg. Earning Assets (a) 1.45%   1.63%     1.48%  
  Noninterest Expense/Revenues (FTE) 44.7%   47.1%     43.7%  
                 
            %    
    9/30’21YTD   9/30’20YTD   Change    
                 
  Salaries & Benefits $36,575   $38,458   -4.9%    
  Occupancy and Equipment 14,447   14,737   -2.0%    
  Outsourced Data Processing 7,244   7,067   2.5%    
  Professional Fees 2,496   1,701   46.7%    
  Courier Service 1,605   1,499   7.1%    
  Amortization of              
    Identifiable Intangibles 204   218   -6.4%    
  Other Noninterest Expense 11,323   10,341   9.5%    
  Total Noninterest Expense $73,894   $74,021   -0.2%    
                 
  Noninterest Expense/              
     Avg. Earning Assets (a) 1.51%   1.76%        
  Noninterest Expense/Revenues (FTE) 45.2%   47.4%        
                 
8. Allowance for Credit Losses.              
    (dollars in thousands)       
            %    
    Q3’2021   Q3’2020   Change Q2’2021  
                 
  Average Total Loans $1,176,114   $1,312,758   -10.4% $1,257,087  
                 
  Beginning of Period Allowance for              
  Credit Losses on Loans (ACLL) $23,737   $24,529   -3.2% $23,483  
  Provision for Credit Losses 2     n/m  
  Net ACLL Recoveries (Losses) 143   (387 ) -137.0% 254  
  End of Period ACLL $23,882   $24,142   -1.1% $23,737  
  Gross ACLL Recoveries /              
  Gross ACLL Losses 115%   56%     176%  
  Net ACLL (Recoveries) Losses /              
  Avg. Total Loans (a) -0.05%   0.12%     -0.08%  
                 
            %    
    9/30’21YTD   9/30’20YTD   Change    
                 
  Average Total Loans $1,227,971   $1,223,250   0.4%    
                 
  Prior Period ACLL $23,854   $19,484   22.4%    
  Adoption of ASU 2016-13(1)   2,017   n/m    
  Beginning of Period ACLL 23,854   21,501   10.9%    
  Provision for Credit Losses 2   4,300   n/m    
  Net ACLL Recoveries (Losses) 26   (1,659 ) -101.6%    
  End of Period ACLL $23,882   $24,142   -1.1%    
  Gross ACLL Recoveries /              
  Gross ACLL Losses 101%   49%        
  Net ACLL (Recoveries) Losses /              
  Avg. Total Loans (a) 0.00%   0.18%        
                 
    (dollars in thousands)       
            %    
    9/30/21   9/30/20   Change 6/30/21  
  Allowance for Credit Losses on Loans $23,882   $24,142   -1.1% $23,737  
  Allowance for Credit Losses on              
  HTM Securities (2) 7   16   -56.9% 9  
  Total Allowance for Credit Losses $23,889   $24,158   -1.1% $23,746  
                 
  Allowance for Unfunded              
  Credit Commitments $101   $53   90.0% $101  
                 
9. Credit Quality.              
    (dollars in thousands)       
            %    
    9/30/21   9/30/20   Change 6/30/21  
                 
  Nonperforming Loans:              
     Nonperforming Nonaccrual $801   $409   95.8% $652  
     Performing Nonaccrual 436   3,971   -89.0% 3,564  
  Total Nonaccrual Loans 1,237   4,380   -71.8% 4,216  
  90+ Days Past Due Accruing Loans 537   360   49.2% 167  
  Total 1,774   4,740   -62.6% 4,383  
  Repossessed Loan Collateral   43   -100.0%  
   Total Nonperforming Assets $1,774   $4,783   -62.9% $4,383  
                 
  Total Loans Outstanding $1,132,472   $1,310,009   -13.6% $1,194,834  
                 
  Total Assets 7,403,573   6,563,215   12.8% 7,147,779  
                 
  Loans:              
  Allowance for Credit Losses on Loans $23,882   $24,142   -1.1% $23,737  
  Allowance for Credit Losses on Loans /              
  Loans 2.11%   1.84%     1.99%  
  Nonperforming Loans/Total Loans 0.16%   0.36%     0.37%  
                 
10. Capital.              
    (in thousands, except per-share amounts)      
            %    
    9/30/21   9/30/20   Change 6/30/21  
                 
  Shareholders’ Equity $837,953   $825,576   1.5% $842,196  
  Total Assets 7,403,573   6,563,215   12.8% 7,147,779  
  Shareholders’ Equity/              
     Total Assets 11.32%   12.58%     11.78%  
  Shareholders’ Equity/              
     Total Loans 73.99%   63.02%     70.49%  
  Tangible Common Equity Ratio 9.83%   10.91%     10.24%  
  Common Shares Outstanding 26,866   26,898   -0.1% 26,865  
  Common Equity Per Share $31.19   $30.69   1.6% $31.35  
  Market Value Per Common Share 56.26   54.35   3.5% 58.03  
                 
    (shares in thousands)       
            %    
    Q3’2021   Q3’2020   Change Q2’2021  
  Share Repurchase Programs:              
    Total Shares Repurchased   35   n/m  
    Average Repurchase Price $-   $52.42   n/m $-  
    Net Shares (Issued) Repurchased (1 ) 35   n/m (1 )
                 
            %    
    9/30’21YTD   9/30’20YTD   Change    
                 
    Total Shares Repurchased 4   228   n/m    
    Average Repurchase Price $61.09   $51.39   n/m    
    Net Shares (Issued) Repurchased (59 ) 164   n/m    
                 
11. Period-End Balance Sheets.              
    (unaudited, dollars in thousands)       
            %    
    9/30/21   9/30/20   Change 6/30/21  
  Assets:              
    Cash and Due from Banks $1,011,048   $398,964   153.4% $939,929  
                 
    Debt Securities Available For Sale 4,602,706   3,983,994   15.5% 4,304,162  
    Debt Securities Held To Maturity (3) 356,106   577,795   -38.4% 414,413  
                 
    Loans 1,132,472   1,310,009   -13.6% 1,194,834  
    Allowance For Credit Losses on Loans (23,882 ) (24,142 ) -1.1% (23,737 )
    Total Loans, net 1,108,590   1,285,867   -13.8% 1,171,097  
                 
    Other Real Estate Owned   43   n/m  
    Premises and Equipment, net 31,603   33,437   -5.5% 32,080  
    Identifiable Intangibles, net 900   1,173   -23.3% 967  
    Goodwill 121,673   121,673   0.0% 121,673  
    Other Assets 170,947   160,269   6.7% 163,458  
                 
  Total Assets $7,403,573   $6,563,215   12.8% $7,147,779  
                 
  Liabilities and Shareholders’ Equity:              
    Deposits:              
      Noninterest-Bearing $2,988,329   $2,684,028   11.3% $2,872,920  
      Interest-Bearing Transaction 1,257,460   1,040,712   20.8% 1,200,634  
      Savings 1,894,290   1,653,000   14.6% 1,849,258  
      Time 148,882   161,450   -7.8% 153,577  
    Total Deposits 6,288,961   5,539,190   13.5% 6,076,389  
                 
    Short-Term Borrowed Funds 119,102   107,973   10.3% 90,043  
    Other Liabilities 157,557   90,476   74.1% 139,151  
  Total Liabilities 6,565,620   5,737,639   14.4% 6,305,583  
                 
  Shareholders’ Equity:              
    Common Equity:              
      Paid-In Capital 470,711   467,236   0.7% 470,365  
      Accumulated Other              
        Comprehensive Income 71,284   103,623   n/m 86,921  
      Retained Earnings 295,958   254,717   16.2% 284,910  
  Total Shareholders’ Equity 837,953   825,576   1.5% 842,196  
                 
  Total Liabilities and              
     Shareholders’ Equity $7,403,573   $6,563,215   12.8% $7,147,779  
                 
12. Income Statements.              
    (unaudited, in thousands except per-share amounts)      
            %    
    Q3’2021   Q3’2020   Change Q2’2021  
  Interest & Fee Income:              
  Loans $14,789   $15,291   -3.3% $15,064  
  Equity Securities 109   103   5.8% 110  
  Debt Securities Available For Sale (4) 26,452   22,652   16.8% 26,481  
  Debt Securities Held To Maturity 2,091   3,235   -35.4% 2,362  
  Interest-Bearing Cash 369   84   339.3% 259  
  Total Interest & Fee Income 43,810   41,365   5.9% 44,276  
                 
  Interest Expense:              
    Transaction Deposits 101   85   18.8% 93  
    Savings Deposits 272   238   14.3% 263  
    Time Deposits 100   127   -21.3% 110  
    Short-Term Borrowed Funds 19   16   18.7% 18  
  Total Interest Expense 492   466   5.6% 484  
                 
  Net Interest Income 43,318   40,899   5.9% 43,792  
                 
  Provision for Credit Losses     n/m  
                 
  Noninterest Income:              
    Service Charges 3,578   3,298   8.5% 3,235  
    Merchant Processing Services 3,159   2,860   10.5% 3,279  
    Debit Card Fees 1,740   1,611   8.0% 1,791  
    Trust Fees 839   756   11.0% 827  
    ATM Processing Fees 573   606   -5.4% 618  
    Other Service Fees 475   454   4.5% 491  
    Financial Services Commissions 95   58   63.8% 95  
    Securities Gains     n/m 34  
    Other Noninterest Income 823   833   -1.2% 662  
  Total Noninterest Income 11,282   10,476   7.7% 11,032  
                 
  Noninterest Expense:              
    Salaries and Benefits 11,813   12,540   -5.8% 12,097  
    Occupancy and Equipment 4,759   5,014   -5.1% 4,808  
    Outsourced Data Processing 2,429   2,338   3.9% 2,425  
    Professional Fees 724   669   8.2% 830  
    Courier Service 534   500   6.8% 567  
    Amortization of Identifiable Intangibles 67   72   -6.9% 68  
    Other Noninterest Expense 4,371   3,470   26.0% 3,496  
  Total Noninterest Expense 24,697   24,603   0.4% 24,291  
                 
  Income Before Income Taxes 29,903   26,772   11.7% 30,533  
  Income Tax Provision 7,840   6,721   16.7% 7,954  
  Net Income $22,063   $20,051   10.0% $22,579  
                 
  Average Common Shares Outstanding 26,866   26,930   -0.2% 26,865  
  Diluted Common Shares Outstanding 26,875   26,946   -0.3% 26,887  
                 
  Per Common Share Data:              
    Basic Earnings $0.82   $0.74   10.8% $0.84  
    Diluted Earnings 0.82   0.74   10.8% 0.84  
    Dividends Paid 0.41   0.41   0.0% 0.41  
                 
            %    
    9/30’21YTD   9/30’20YTD   Change    
  Interest & Fee Income:              
  Loans $44,434   $44,378   0.1%    
  Equity Securities 329   309   6.5%    
  Debt Securities Available For Sale (4) 77,822   66,396   17.2%    
  Debt Securities Held To Maturity 7,051   10,759   -34.5%    
  Interest-Bearing Cash 766   1,053   -27.3%    
  Total Interest & Fee Income 130,402   122,895   6.1%    
                 
  Interest Expense:              
    Transaction Deposits 283   243   16.5%    
    Savings Deposits 785   679   15.6%    
    Time Deposits 330   386   -14.5%    
    Short-Term Borrowed Funds 53   34   55.9%    
    Other Borrowed Funds   1   -100.0%    
  Total Interest Expense 1,451   1,343   8.0%    
                 
  Net Interest Income 128,951   121,552   6.1%    
                 
  Provision for Credit Losses   4,300   n/m    
                 
  Noninterest Income:              
    Service Charges 10,117   10,697   -5.4%    
    Merchant Processing Services 8,998   7,495   20.1%    
    Debit Card Fees 5,132   4,538   13.1%    
    Trust Fees 2,467   2,247   9.8%    
    ATM Processing Fees 1,792   1,703   5.2%    
    Other Service Fees 1,435   1,380   4.0%    
    Financial Services Commissions 260   306   -15.0%    
    Securities Gains 34   71   n/m    
    Other Operating 2,268   3,241   -30.0%    
  Total Noninterest Income 32,503   31,678   2.6%    
                 
  Noninterest Expense:              
    Salaries and Benefits 36,575   38,458   -4.9%    
    Occupancy and Equipment 14,447   14,737   -2.0%    
    Outsourced Data Processing 7,244   7,067   2.5%    
    Professional Fees 2,496   1,701   46.7%    
    Courier Service 1,605   1,499   7.1%    
    Amortization of Identifiable Intangibles 204   218   -6.4%    
    Other Operating 11,323   10,341   9.5%    
  Total Noninterest Expense 73,894   74,021   -0.2%    
                 
  Income Before Income Taxes 87,560   74,909   16.9%    
  Income Tax Provision 22,771   18,334   24.2%    
  Net Income $64,789   $56,575   14.5%    
                 
  Average Common Shares Outstanding 26,851   26,977   -0.5%    
  Diluted Common Shares Outstanding 26,868   26,998   -0.5%    
                 
  Per Common Share Data:              
  Basic Earnings $2.41   $2.10   14.8%    
  Diluted Earnings 2.41   2.10   14.8%    
  Dividends Paid 1.23   1.23   0.0%    
                 
                 
  Footnotes and Abbreviations:              
                 
  (1) 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.          
                 
  (2) In the third quarter 2021, the Company recorded a $2 thousand reversal of provision for credit losses on Debt Securities Held To Maturity and the balance of the allowance for credit losses on Debt Securities Held To Maturity was reduced from $9 thousand at June 30, 2021 to $7 thousand at September 30, 2021.        
                 
  (3) The Company adopted ASU 2016-13, effective January 1, 2020. Debt Securities Held To Maturity of $356,106 thousand at September 30, 2021, $414,413 thousand at June 30, 2021 and $577,795 thousand at September 30, 2020 are net of related reserve for expected credit losses of $7 thousand, $9 thousand and $16 thousand, respectively.       
                 
  (4) Interest income on Debt Securities Available For Sale included make-whole interest income on called corporate bonds of $732 thousand in the third quarter 2021, $1.4 million in the second quarter 2021 and $700 thousand in the first quarter 2021.        
                 
  (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              

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