SAN RAFAEL, Calif., Oct. 16, 2013 (GLOBE NEWSWIRE) -- Westamerica Bancorporation (Nasdaq:WABC), parent company of Westamerica Bank, generated net income for the third quarter 2013 of $16.7 million and diluted earnings per common share ("EPS") of $0.63. Third quarter 2013 results compare to net income of $17.1 million and EPS of $0.64 for the prior quarter, and net income of $20.0 million and EPS of $0.73 for the third quarter 2012.
"Westamerica generated a relatively high annualized return on common equity of 12.4 percent in the third quarter 2013. These returns were generated in spite of the continued pressure low market interest rates are placing on our interest margin, which was 4.01 percent for the third quarter 2013. The credit quality of our assets continues to demonstrate improvement with net loan charge-offs declining from $10.0 million in the first nine months of 2012 to $4.7 million for the first nine months of 2013," said Chairman, President and CEO David Payne. "We remain focused on controlling noninterest expenses, which declined $1.5 million for the third quarter 2013 compared to the third quarter 2012. Westamerica paid a $0.37 per common share dividend for the third quarter 2013, and retired 256 thousand common shares during the quarter using our share repurchase plan," added Payne.
Net interest and fee income on a fully taxable equivalent (FTE) basis was $41.2 million for the third quarter 2013, compared to $42.6 million for the prior quarter and $48.7 million for the third quarter 2012. The change in net interest and fee income (FTE) is due to reductions in yields on loans and investment securities, which have declined during this period of low market interest rates. The change in net interest and fee income (FTE) is also attributable to reduced loan volumes, placing greater reliance on lower-yielding investment securities. Loan volumes have declined due to problem loan workout activities, particularly with purchased loans, and reduced volumes of loan originations. In Management's opinion, current levels of competitive loan pricing do not provide adequate forward earnings potential, and competitive loan underwriting standards have loosened which increases credit risk. Management is avoiding these low-yielding higher-risk loans. To offset the decline in interest and fee income (FTE), interest expense has been lowered by reducing the volume of higher-cost funding sources. The annualized interest cost of funding the Company's loans and investment securities was 0.11 percent for the third quarter 2013 compared to 0.12 percent for the prior quarter and 0.13 percent for the third quarter 2012. The annualized net interest margin on a fully taxable equivalent basis was 4.01 percent for the third quarter 2013, compared to 4.12 percent for the prior quarter and 4.67 percent for the third quarter 2012.
The provision for loan losses was $1.8 million for both the third quarter 2013 and the prior quarter, down $1.0 million from $2.8 million for the third quarter 2012. Net loan losses charged against the allowance for loan losses totaled $810 thousand for the third quarter 2013, compared to $1.2 million for the prior quarter and $3.4 million for the third quarter 2012. At September 30, 2013, the allowance for loan losses totaled $31.9 million; nonperforming originated loans totaled $7.3 million; nonperforming purchased FDIC-indemnified loans totaled $26.3 million, net of purchase discounts of $2.0 million; and nonperforming purchased non-indemnified loans totaled $3.4 million, net of purchase discounts of $401 thousand.
Noninterest income for the third quarter 2013 totaled $14.4 million, compared to $14.3 million for the prior quarter and $14.6 million for the third quarter 2012.
Noninterest expense for the third quarter 2013 totaled $27.8 million, compared to $28.2 million in the prior quarter and $29.3 million for the third quarter 2012. The expense reductions are primarily related to personnel and loan administration costs.
At September 30, 2013, Westamerica Bancorporation's tangible common equity-to-asset ratio was 8.6 percent, assets totaled $4.8 billion and loans outstanding totaled $1.9 billion. Westamerica Bancorporation, through its wholly owned subsidiary Westamerica Bank, operates commercial banking and trust offices throughout Northern and Central California.
Westamerica Bancorporation Web Address: www.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, 2012 filed on Form 10-K and quarterly report for the quarter ended June 30, 2013 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, 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 16, 2013 | ||||
| WESTAMERICA BANCORPORATION | ||||
| FINANCIAL HIGHLIGHTS | ||||
| September 30, 2013 | ||||
| 1. Net Income Summary. | ||||
| (in thousands except per-share amounts) | ||||
| % | ||||
| Q3'13 | Q3'12 | Change | Q2'13 | |
| Net Interest and Fee Income (FTE) | $41,224 | $48,712 | -15.4% | $42,628 |
| Provision for Loan Losses | 1,800 | 2,800 | -35.7% | 1,800 |
| Noninterest Income | 14,419 | 14,626 | -1.4% | 14,284 |
| Noninterest Expense | 27,758 | 29,269 | -5.2% | 28,192 |
| Income Before Taxes (FTE) | 26,085 | 31,269 | -16.6% | 26,920 |
| Income Tax Provision (FTE) | 9,347 | 11,247 | -16.9% | 9,808 |
| Net Income | $16,738 | $20,022 | -16.4% | $17,112 |
| Average Common Shares Outstanding | 26,670 | 27,513 | -3.1% | 26,890 |
| Diluted Average Common Shares | 26,705 | 27,565 | -3.1% | 26,898 |
| Operating Ratios: | ||||
| Basic Earnings Per Common Share | $0.63 | $0.73 | -13.7% | $0.64 |
| Diluted Earnings Per Common Share | 0.63 | 0.73 | -13.7% | 0.64 |
| Return On Assets (a) | 1.37% | 1.63% | 1.42% | |
| Return On Common Equity (a) | 12.4% | 14.7% | 12.7% | |
| Net Interest Margin (FTE) (a) | 4.01% | 4.67% | 4.12% | |
| Efficiency Ratio (FTE) | 49.9% | 46.2% | 49.5% | |
| Dividends Paid Per Common Share | $0.37 | $0.37 | 0.0% | $0.37 |
| Common Dividend Payout Ratio | 59% | 51% | 58% | |
| % | ||||
| 9/30'13YTD | 9/30'12YTD | Change | ||
| Net Interest and Fee Income (FTE) | $127,687 | $150,743 | -15.3% | |
| Provision for Loan Losses | 6,400 | 8,400 | -23.8% | |
| Noninterest Income: | ||||
| Loss on Sale of Securities | -- | (1,287) | n/m | |
| Other | 42,981 | 44,115 | -2.6% | |
| Total Noninterest Income | 42,981 | 42,828 | 0.4% | |
| Noninterest Expense | 84,627 | 88,651 | -4.5% | |
| Income Before Taxes (FTE) | 79,641 | 96,520 | -17.5% | |
| Income Tax Provision (FTE) | 28,520 | 34,529 | -17.4% | |
| Net Income | $51,121 | $61,991 | -17.5% | |
| Average Common Shares Outstanding | 26,900 | 27,769 | -3.1% | |
| Diluted Average Common Shares | 26,919 | 27,821 | -3.2% | |
| Operating Ratios: | ||||
| Basic Earnings Per Common Share | $1.90 | $2.23 | -14.8% | |
| Diluted Earnings Per Common Share | 1.90 | 2.23 | -14.8% | |
| Return On Assets (a) | 1.41% | 1.67% | ||
| Return On Common Equity (a) | 12.7% | 15.2% | ||
| Net Interest Margin (FTE) (a) | 4.13% | 4.89% | ||
| Efficiency Ratio (FTE) | 49.6% | 45.8% | ||
| Dividends Paid Per Common Share | $1.11 | $1.11 | 0.0% | |
| Common Dividend Payout Ratio | 58% | 50% | ||
| 2. Net Interest Income. | ||||
| (dollars in thousands) | ||||
| % | ||||
| Q3'13 | Q3'12 | Change | Q2'13 | |
| Interest and Fee Income (FTE) | $42,400 | $50,094 | -15.4% | $43,847 |
| Interest Expense | 1,176 | 1,382 | -14.9% | 1,219 |
| Net Interest and Fee Income (FTE) | $41,224 | $48,712 | -15.4% | $42,628 |
| Average Earning Assets | $4,093,727 | $4,160,953 | -1.6% | $4,147,096 |
| Average Interest-- | ||||
| Bearing Liabilities | 2,539,219 | 2,683,663 | -5.4% | 2,613,978 |
| Yield on Earning Assets (FTE) (a) | 4.12% | 4.80% | 4.24% | |
| Cost of Funds (a) | 0.11% | 0.13% | 0.12% | |
| Net Interest Margin (FTE) (a) | 4.01% | 4.67% | 4.12% | |
| Interest Expense/ | ||||
| Interest-Bearing Liabilities (a) | 0.18% | 0.21% | 0.19% | |
| Net Interest Spread (FTE) (a) | 3.94% | 4.59% | 4.05% | |
| % | ||||
| 9/30'13YTD | 9/30'12YTD | Change | ||
| Interest and Fee Income (FTE) | $131,334 | $155,156 | -15.4% | |
| Interest Expense | 3,647 | 4,413 | -17.4% | |
| Net Interest and Fee Income (FTE) | $127,687 | $150,743 | -15.3% | |
| Average Earning Assets | $4,125,407 | $4,116,471 | 0.2% | |
| Average Interest-- | ||||
| Bearing Liabilities | 2,605,404 | 2,773,066 | -6.0% | |
| Yield on Earning Assets (FTE) (a) | 4.25% | 5.03% | ||
| Cost of Funds (a) | 0.12% | 0.14% | ||
| Net Interest Margin (FTE) (a) | 4.13% | 4.89% | ||
| Interest Expense/ | ||||
| Interest-Bearing Liabilities (a) | 0.19% | 0.21% | ||
| Net Interest Spread (FTE) (a) | 4.06% | 4.82% | ||
| 3. Loans & Other Earning Assets. | ||||
| (average volume, dollars in thousands) | ||||
| % | ||||
| Q3'13 | Q3'12 | Change | Q2'13 | |
| Total Assets | $4,830,475 | $4,892,088 | -1.3% | $4,840,319 |
| Total Earning Assets | 4,093,727 | 4,160,953 | -1.6% | 4,147,096 |
| Total Loans | 1,902,389 | 2,263,239 | -15.9% | 1,994,361 |
| Commercial Loans | 364,638 | 457,644 | -20.3% | 382,632 |
| Commercial RE Loans | 847,154 | 990,509 | -14.5% | 881,108 |
| Consumer Loans | 690,597 | 815,086 | -15.3% | 730,621 |
| Total Investment Securities | 2,191,338 | 1,897,714 | 15.5% | 2,152,735 |
| Available For Sale (Market) | 1,049,962 | 716,369 | 46.6% | 1,001,151 |
| Held To Maturity | 1,141,376 | 1,181,345 | -3.4% | 1,151,584 |
| Unrealized (Loss) Gain | (11,107) | 31,614 | n/m | (9,669) |
| Loans/Deposits | 46.1% | 54.2% | 48.3% | |
| % | ||||
| 9/30'13YTD | 9/30'12YTD | Change | ||
| Total Assets | $4,859,473 | $4,965,611 | -2.1% | |
| Total Earning Assets | 4,125,407 | 4,116,471 | 0.2% | |
| Total Loans | 1,990,937 | 2,368,530 | -15.9% | |
| Commercial Loans | 383,907 | 491,023 | -21.8% | |
| Commercial RE Loans | 877,490 | 1,042,613 | -15.8% | |
| Consumer Loans | 729,540 | 834,894 | -12.6% | |
| Total Investment Securities | 2,134,470 | 1,747,941 | 22.1% | |
| Available For Sale (Market) | 985,121 | 674,920 | 46.0% | |
| Held To Maturity | 1,149,349 | 1,073,021 | 7.1% | |
| Unrealized (Loss) Gain | (11,107) | 31,614 | n/m | |
| Loans/Deposits | 47.9% | 56.1% | ||
| 4. Deposits, Other Interest-Bearing Liabilities & Equity. | ||||
| (average volume, dollars in thousands) | ||||
| % | ||||
| Q3'13 | Q3'12 | Change | Q2'13 | |
| Total Deposits | $4,130,881 | $4,176,342 | -1.1% | $4,132,509 |
| Noninterest Demand | 1,699,169 | 1,605,362 | 5.8% | 1,630,326 |
| Interest Bearing Transaction | 751,317 | 756,824 | -0.7% | 753,148 |
| Savings | 1,138,491 | 1,125,286 | 1.2% | 1,148,193 |
| Time greater than $100K | 317,630 | 430,239 | -26.2% | 369,275 |
| Time less than $100K | 224,274 | 258,631 | -13.3% | 231,567 |
| Total Short-Term Borrowings | 56,844 | 61,794 | -8.0% | 61,076 |
| Federal Home Loan Bank Advances | 25,663 | 25,889 | -0.9% | 25,719 |
| Term Repurchase Agreement | 10,000 | 10,000 | 0.0% | 10,000 |
| Debt Financing | 15,000 | 15,000 | 0.0% | 15,000 |
| Shareholders' Equity | 534,634 | 542,708 | -1.5% | 538,529 |
| Demand Deposits/ | ||||
| Total Deposits | 41.1% | 38.4% | 39.5% | |
| Transaction & Savings | ||||
| Deposits / Total Deposits | 86.9% | 83.5% | 85.5% | |
| % | ||||
| 9/30'13YTD | 9/30'12YTD | Change | ||
| Total Deposits | $4,153,956 | $4,219,129 | -1.5% | |
| Noninterest Demand | 1,657,819 | 1,586,993 | 4.5% | |
| Interest Bearing Transaction | 757,035 | 752,825 | 0.6% | |
| Savings | 1,148,306 | 1,128,309 | 1.8% | |
| Time greater than $100K | 358,874 | 481,072 | -25.4% | |
| Time less than $100K | 231,922 | 269,930 | -14.1% | |
| Total Short-Term Borrowings | 58,548 | 89,986 | -34.9% | |
| Federal Home Loan Bank Advances | 25,719 | 25,944 | -0.9% | |
| Term Repurchase Agreement | 10,000 | 10,000 | 0.0% | |
| Debt Financing | 15,000 | 15,000 | 0.0% | |
| Shareholders' Equity | 538,319 | 543,855 | -1.0% | |
| Demand Deposits/ | ||||
| Total Deposits | 39.9% | 37.6% | ||
| Transaction & Savings | ||||
| Deposits / Total Deposits | 85.8% | 82.2% | ||
| 5. Interest Yields Earned & Rates Paid. | ||||
| (dollars in thousands) | ||||
| Q3'13 | ||||
| Average | Income/ | Yield (a) / | ||
| Volume | Expense | Rate | ||
| Interest & Fee Income Earned | ||||
| Total Earning Assets (FTE) | $4,093,727 | $42,400 | 4.12% | |
| Total Loans (FTE) | 1,902,389 | 25,633 | 5.35% | |
| Commercial Loans (FTE) | 364,638 | 5,761 | 6.27% | |
| Commercial RE Loans | 847,154 | 13,276 | 6.22% | |
| Consumer Loans | 690,597 | 6,596 | 3.80% | |
| Total Investments (FTE) | 2,191,338 | 16,767 | 3.06% | |
| Interest Expense Paid | ||||
| Total Earning Assets | 4,093,727 | 1,176 | 0.11% | |
| Total Interest-Bearing Liabilities | 2,539,219 | 1,176 | 0.18% | |
| Total Interest-Bearing Deposits | 2,431,712 | 809 | 0.13% | |
| Interest-Bearing Transaction | 751,317 | 66 | 0.04% | |
| Savings | 1,138,491 | 228 | 0.08% | |
| Time less than $100K | 224,274 | 258 | 0.46% | |
| Time greater than $100K | 317,630 | 257 | 0.32% | |
| Total Short-Term Borrowings | 56,844 | 20 | 0.14% | |
| Federal Home Loan Bank Advances | 25,663 | 122 | 1.89% | |
| Term Repurchase Agreement | 10,000 | 25 | 0.98% | |
| Debt Financing | 15,000 | 200 | 5.35% | |
| Net Interest Income and | ||||
| Margin (FTE) | $41,224 | 4.01% | ||
| Q3'12 | ||||
| Average | Income/ | Yield (a) / | ||
| Volume | Expense | Rate | ||
| Interest & Fee Income Earned | ||||
| Total Earning Assets (FTE) | $4,160,953 | $50,094 | 4.80% | |
| Total Loans (FTE) | 2,263,239 | 32,434 | 5.70% | |
| Commercial Loans (FTE) | 457,644 | 6,731 | 5.85% | |
| Commercial RE Loans | 990,509 | 17,015 | 6.83% | |
| Consumer Loans | 815,086 | 8,688 | 4.24% | |
| Total Investments (FTE) | 1,897,714 | 17,660 | 3.72% | |
| Interest Expense Paid | ||||
| Total Earning Assets | 4,160,953 | 1,382 | 0.13% | |
| Total Interest-Bearing Liabilities | 2,683,663 | 1,382 | 0.21% | |
| Total Interest-Bearing Deposits | 2,570,980 | 1,020 | 0.16% | |
| Interest-Bearing Transaction | 756,824 | 70 | 0.04% | |
| Savings | 1,125,286 | 231 | 0.08% | |
| Time less than $100K | 258,631 | 359 | 0.55% | |
| Time greater than $100K | 430,239 | 360 | 0.33% | |
| Total Short-Term Borrowings | 61,794 | 15 | 0.10% | |
| Federal Home Loan Bank Advances | 25,889 | 122 | 1.87% | |
| Term Repurchase Agreement | 10,000 | 25 | 0.97% | |
| Debt Financing | 15,000 | 200 | 5.35% | |
| Net Interest Income and | ||||
| Margin (FTE) | $48,712 | 4.67% | ||
| 6. Noninterest Income. | ||||
| (dollars in thousands except per-share amounts) | ||||
| % | ||||
| Q3'13 | Q3'12 | Change | Q2'13 | |
| Service Charges on Deposits | $6,433 | $6,847 | -6.0% | $6,452 |
| Merchant Processing Services | 2,151 | 2,411 | -10.8% | 2,413 |
| Debit Card Fees | 1,467 | 1,308 | 12.1% | 1,478 |
| ATM Processing Fees | 701 | 782 | -10.3% | 721 |
| Trust Fees | 567 | 540 | 5.1% | 585 |
| Financial Services Commissions | 150 | 175 | -14.6% | 284 |
| Other Income | 2,950 | 2,563 | 15.1% | 2,351 |
| Total Noninterest Income | $14,419 | $14,626 | -1.4% | $14,284 |
| Total Revenue (FTE) | $55,643 | $63,338 | -12.1% | $56,912 |
| Noninterest Income/Revenue (FTE) | 25.9% | 23.1% | 25.1% | |
| Service Charges/Avg. Deposits (a) | 0.62% | 0.65% | 0.63% | |
| Total Revenues (FTE) Per Avg. | ||||
| Common Share (a) | $8.28 | $9.16 | -9.6% | $8.49 |
| % | ||||
| 9/30'13YTD | 9/30'12YTD | Change | ||
| Service Charges on Deposits | $19,427 | $20,969 | -7.4% | |
| Merchant Processing Services | 6,973 | 7,333 | -4.9% | |
| Debit Card Fees | 4,302 | 3,816 | 12.7% | |
| ATM Processing Fees | 2,128 | 2,648 | -19.6% | |
| Trust Fees | 1,720 | 1,526 | 12.7% | |
| Financial Services Commissions | 614 | 540 | 13.5% | |
| Loss on Sale of Securities | -- | (1,287) | n/m | |
| Other Income | 7,817 | 7,283 | 7.3% | |
| Total Noninterest Income | $42,981 | $42,828 | 0.4% | |
| Total Revenue (FTE) | $170,668 | $193,571 | -11.8% | |
| Noninterest Income/Revenue (FTE) | 25.2% | 22.1% | ||
| Service Charges/Avg. Deposits (a) | 0.63% | 0.66% | ||
| Total Revenues (FTE) Per Avg. | ||||
| Common Share (a) | $8.48 | $9.31 | -8.9% | |
| 7. Noninterest Expense. | ||||
| (dollars in thousands) | ||||
| % | ||||
| Q3'13 | Q3'12 | Change | Q2'13 | |
| Salaries & Benefits | $13,826 | $14,294 | -3.3% | $14,064 |
| Occupancy | 3,829 | 3,901 | -1.8% | 3,638 |
| Outsourced Data Processing | 2,139 | 2,156 | -0.8% | 2,140 |
| Amortization of | ||||
| Identifiable Intangibles | 1,163 | 1,336 | -13.0% | 1,165 |
| Professional Fees | 730 | 786 | -7.2% | 745 |
| Furniture & Equipment | 974 | 991 | -1.7% | 1,021 |
| Other Real Estate Owned | 179 | 679 | n/m | 278 |
| Courier Service | 725 | 772 | -6.0% | 737 |
| Other Operating | 4,193 | 4,354 | -3.7% | 4,404 |
| Total Noninterest Expense | $27,758 | $29,269 | -5.2% | $28,192 |
| Noninterest Expense/ | ||||
| Avg. Earning Assets (a) | 2.69% | 2.80% | 2.73% | |
| Noninterest Expense/Revenues (FTE) | 49.9% | 46.2% | 49.5% | |
| % | ||||
| 9/30'13YTD | 9/30'12YTD | Change | ||
| Salaries & Benefits | $42,293 | $43,833 | -3.5% | |
| Occupancy | 11,353 | 11,609 | -2.2% | |
| Outsourced Data Processing | 6,436 | 6,318 | 1.9% | |
| Amortization of | ||||
| Identifiable Intangibles | 3,547 | 4,076 | -13.0% | |
| Professional Fees | 2,109 | 2,455 | -14.1% | |
| Furniture & Equipment | 2,875 | 2,883 | -0.3% | |
| Other Real Estate Owned | 791 | 912 | -13.3% | |
| Courier Service | 2,204 | 2,350 | -6.2% | |
| Other Operating | 13,019 | 14,215 | -8.4% | |
| Total Noninterest Expense | $84,627 | $88,651 | -4.5% | |
| Noninterest Expense/ | ||||
| Avg. Earning Assets (a) | 2.74% | 2.88% | ||
| Noninterest Expense/Revenues (FTE) | 49.6% | 45.8% | ||
| 8. Provision for Loan Losses. | ||||
| (dollars in thousands) | ||||
| % | ||||
| Q3'13 | Q3'12 | Change | Q2'13 | |
| Average Total Loans | $1,902,389 | $2,263,239 | -15.9% | $1,994,361 |
| Avg. Total Purchased | ||||
| Covered Loans (1) | 310,650 | 435,953 | -28.7% | 341,896 |
| Avg. Total Purchased | ||||
| Non-Covered Loans (2) | 59,145 | 97,100 | -39.1% | 66,030 |
| Avg. Total Originated Loans | 1,532,594 | 1,730,186 | -11.4% | 1,586,435 |
| Allowance for Loan Loss (ALL) | ||||
| Beginning of Period | $30,926 | $31,523 | -1.9% | $30,354 |
| Provision for Loan Losses | 1,800 | 2,800 | -35.7% | 1,800 |
| Net ALL Losses | (810) | (3,357) | -75.9% | (1,228) |
| ALL End of Period | $31,916 | $30,966 | 3.1% | $30,926 |
| ALL Recoveries/Gross ALL Losses | 53% | 28% | 42% | |
| Net ALL Losses/Avg. Loans: | ||||
| Originated Loans (a) | 0.20% | 0.63% | 0.15% | |
| Purchased Covered Loans (1)(a) | 0.02% | 0.09% | 0.59% | |
| Purchased Non-Covered Loans (2)(a) | 0.00% | 2.19% | 0.71% | |
| % | ||||
| 9/30'13YTD | 9/30'12YTD | Change | ||
| Average Total Loans | $1,990,937 | $2,368,530 | -15.9% | |
| Avg. Total Purchased | ||||
| Covered Loans (1) | 338,597 | 475,815 | -28.8% | |
| Avg. Total Purchased | ||||
| Non-Covered Loans (2) | 65,926 | 107,989 | -39.0% | |
| Avg. Total Originated Loans | 1,586,414 | 1,784,726 | -11.1% | |
| Allowance for Loan Loss (ALL) | ||||
| Beginning of Period | $30,234 | $32,597 | -7.2% | |
| Provision for Loan Losses | 6,400 | 8,400 | -23.8% | |
| Net ALL Losses | (4,718) | (10,031) | -53.0% | |
| ALL End of Period | $31,916 | $30,966 | 3.1% | |
| ALL Recoveries/Gross ALL Losses | 38% | 26% | ||
| Net ALL Losses/Avg. Loans: | ||||
| Originated Loans (a) | 0.31% | 0.66% | ||
| Purchased Covered Loans (1)(a) | 0.34% | 0.19% | ||
| Purchased Non-Covered Loans (2)(a) | 0.24% | 0.69% | ||
| 9. Credit Quality. | ||||
| (dollars in thousands) | ||||
| % | ||||
| 9/30/13 | 9/30/12 | Change | 6/30/13 | |
| Nonperforming Originated Loans: | ||||
| Nonperforming Nonaccrual | $5,786 | $9,870 | -41.4% | $7,664 |
| Performing Nonaccrual | 1,093 | 3,169 | -65.5% | 1,272 |
| Total Nonaccrual Loans | 6,879 | 13,039 | -47.2% | 8,936 |
| 90+ Days Past Due Accruing Loans | 392 | 433 | -9.5% | 241 |
| Total | 7,271 | 13,472 | -46.0% | 9,177 |
| Repossessed Loan Collateral | 3,162 | 11,539 | -72.6% | 5,414 |
| Total Originated | ||||
| Nonperforming Assets | 10,433 | 25,011 | -58.3% | 14,591 |
| Nonperforming Purchased Covered Loans (1): | ||||
| Nonperforming Nonaccrual | 24,348 | 19,584 | 24.3% | 14,619 |
| Performing Nonaccrual | 1,937 | 1,014 | 91.0% | 2,204 |
| Total Nonaccrual Loans | 26,285 | 20,598 | 27.6% | 16,823 |
| 90+ Days Past Due Accruing Loans | 23 | 59 | -61.0% | 74 |
| Total | 26,308 | 20,657 | 27.4% | 16,897 |
| Repossessed Purchased Covered | ||||
| Loan Collateral (1) | 9,273 | 12,437 | -25.4% | 10,480 |
| Total Nonperforming Purchased | ||||
| Covered Assets (1) | 35,581 | 33,094 | 7.5% | 27,377 |
| Nonperforming Purchased Non-Covered Loans (2): | ||||
| Nonperforming Nonaccrual | 2,664 | 7,823 | -65.9% | 1,890 |
| Performing Nonaccrual | 701 | 2,260 | -69.0% | 3,013 |
| Total Nonaccrual Loans | 3,365 | 10,083 | -66.6% | 4,903 |
| 90+ Days Past Due Accruing Loans | -- | 1 | n/m | -- |
| Total | 3,365 | 10,084 | -66.6% | 4,903 |
| Repossessed Purchased Non-Covered | ||||
| Loan Collateral (2) | 2,535 | 3,303 | -23.3% | 3,543 |
| Total Nonperforming Purchased | ||||
| Non-Covered Assets (2) | 5,900 | 13,387 | -55.9% | 8,446 |
| Total Nonperforming Assets | $51,914 | $71,492 | -27.4% | $50,414 |
| Total Originated Loans Outstanding | $1,523,090 | $1,708,414 | -10.8% | $1,553,303 |
| Total Purchased Covered | ||||
| Loans Outstanding (1) | 296,380 | 418,364 | -29.2% | 324,976 |
| Total Purchased Non-Covered | ||||
| Loans Outstanding (2) | 57,838 | 82,676 | -30.0% | 61,062 |
| Total Loans Outstanding | $1,877,308 | $2,209,454 | -15.0% | $1,939,341 |
| Total Assets | $4,806,487 | $4,859,627 | -1.1% | $4,813,908 |
| Originated Loans: | ||||
| Allowance for Loan Losses | $31,916 | $30,966 | 3.1% | $30,926 |
| Allowance/Originated Loans | 2.10% | 1.81% | 1.99% | |
| Nonperforming Originated Loans/ | ||||
| Total Originated Loans | 0.48% | 0.79% | 0.59% | |
| Allowance/Nonperforming | ||||
| Originated Loans | 439% | 230% | 337% | |
| Purchased Covered Loans (1): | ||||
| Fair Value Discount on Purchased | ||||
| Covered Loans | $14,489 | $27,241 | $18,514 | |
| Discount/Purchased Covered | ||||
| Loans, gross | 4.66% | 6.11% | 5.39% | |
| Nonperforming Purchased Covered Loans/ | ||||
| Total Purchased Covered Loans | 8.88% | 4.94% | 5.20% | |
| Purchased Non-Covered Loans (2): | ||||
| Fair Value Discount on Purchased | ||||
| Non-Covered Loans | $2,989 | $5,495 | $3,609 | |
| Discount/Purchased Non-Covered | 4.91% | 6.23% | 5.58% | |
| Loans, gross | ||||
| Nonperforming Purchased Non-Covered Loans/ | ||||
| Total Purchased Non-Covered Loans | 5.82% | 12.20% | 8.03% | |
| 10. Capital. | ||||
| (in thousands, except per-share amounts) | ||||
| % | ||||
| 9/30/13 | 9/30/12 | Change | 6/30/13 | |
| Shareholders' Equity | $541,840 | $558,841 | -3.0% | $544,622 |
| Tier I Regulatory Capital | 404,189 | 407,881 | -0.9% | 405,851 |
| Total Regulatory Capital | 442,920 | 442,399 | 0.1% | 443,052 |
| Total Assets | 4,806,487 | 4,859,627 | -1.1% | 4,813,908 |
| Risk-Adjusted Assets | 2,769,664 | 2,726,803 | 1.6% | 2,772,900 |
| Shareholders' Equity/ | ||||
| Total Assets | 11.27% | 11.50% | 11.31% | |
| Shareholders' Equity/ | ||||
| Total Loans | 28.86% | 25.29% | 28.08% | |
| Tier I Capital/Total Assets | 8.41% | 8.39% | 8.43% | |
| Tier I Capital/ | ||||
| Risk-Adjusted Assets | 14.59% | 14.96% | 14.64% | |
| Total Regulatory Capital/ | ||||
| Risk-Adjusted Assets | 15.99% | 16.22% | 15.98% | |
| Tangible Common Equity Ratio | 8.58% | 8.75% | 8.61% | |
| Common Shares Outstanding | 26,578 | 27,396 | -3.0% | 26,769 |
| Common Equity Per Share | $20.39 | $20.40 | -0.1% | $20.34 |
| Market Value Per Common Share | $49.74 | $47.05 | 5.7% | $45.69 |
| Share Repurchase Programs | ||||
| (shares in thousands) | ||||
| % | ||||
| Q3'13 | Q3'12 | Change | Q2'13 | |
| Total Shares Repurchased | 256 | 270 | -5.4% | 270 |
| Average Repurchase Price | $48.48 | $46.63 | 4.0% | $44.29 |
| Net Shares Repurchased | 191 | 225 | -15.1% | 249 |
| % | ||||
| 9/30'13YTD | 9/30'12YTD | Change | ||
| Total Shares Repurchased | 873 | 836 | 4.3% | |
| Average Repurchase Price | $45.59 | $46.25 | -1.4% | |
| Net Shares Repurchased | 635 | 754 | -15.8% | |
| 11. Period-End Balance Sheets. | ||||
| (unaudited, dollars in thousands) | ||||
| % | ||||
| 9/30/13 | 9/30/12 | Change | 6/30/13 | |
| Assets: | ||||
| Cash and Due from Banks | $388,579 | $367,964 | 5.6% | $384,276 |
| Investment Securities: | ||||
| Available For Sale | 1,060,428 | 738,462 | 43.6% | 1,004,888 |
| Held to Maturity | 1,141,083 | 1,158,731 | -1.5% | 1,134,615 |
| Purchased Covered Loans (1) | 296,380 | 418,364 | -29.2% | 324,976 |
| Purchased Non-Covered Loans (2) | 57,838 | 82,676 | -30.0% | 61,062 |
| Originated Loans | 1,523,090 | 1,708,414 | -10.8% | 1,553,303 |
| Allowance For Loan Losses | (31,916) | (30,966) | 3.1% | (30,926) |
| Total Loans, net | 1,845,392 | 2,178,488 | -15.3% | 1,908,415 |
| Non-Covered Other Real Estate | ||||
| Owned | 5,697 | 14,842 | -61.6% | 8,957 |
| Covered Other Real Estate | ||||
| Owned (1) | 9,273 | 12,437 | -25.4% | 10,480 |
| Premises and Equipment, net | 37,972 | 38,386 | -1.1% | 38,267 |
| Identifiable Intangibles, net | 19,714 | 24,553 | -19.7% | 20,877 |
| Goodwill | 121,673 | 121,673 | 0.0% | 121,673 |
| Other Assets | 176,676 | 204,091 | -13.4% | 181,460 |
| Total Assets | $4,806,487 | $4,859,627 | -1.1% | $4,813,908 |
| Liabilities and Shareholders' Equity: | ||||
| Deposits: | ||||
| Noninterest Bearing | $1,689,986 | $1,594,379 | 6.0% | $1,644,151 |
| Interest-Bearing Transaction | 737,029 | 745,852 | -1.2% | 725,852 |
| Savings | 1,150,219 | 1,133,788 | 1.4% | 1,139,110 |
| Time | 531,073 | 656,538 | -19.1% | 592,281 |
| Total Deposits | 4,108,307 | 4,130,557 | -0.5% | 4,101,394 |
| Short-Term Borrowed Funds | 47,821 | 55,630 | -14.0% | 66,640 |
| Federal Home Loan Bank Advances | 25,631 | 25,855 | -0.9% | 25,687 |
| Term Repurchase Agreement | 10,000 | 10,000 | 0.0% | 10,000 |
| Debt Financing | 15,000 | 15,000 | 0.0% | 15,000 |
| Other Liabilities | 57,888 | 63,744 | -9.2% | 50,565 |
| Total Liabilities | 4,264,647 | 4,300,786 | -0.8% | 4,269,286 |
| Shareholders' Equity: | ||||
| Common Equity: | ||||
| Paid-In Capital | 373,799 | 374,312 | -0.1% | 374,209 |
| Accumulated Other | ||||
| Comprehensive Income | 4,120 | 14,454 | -71.5% | 4,524 |
| Retained Earnings | 163,921 | 170,075 | -3.6% | 165,889 |
| Total Shareholders' Equity | 541,840 | 558,841 | -3.0% | 544,622 |
| Total Liabilities and | ||||
| Shareholders' Equity | $4,806,487 | $4,859,627 | -1.1% | $4,813,908 |
| 12. Income Statements. | ||||
| (unaudited, in thousands except per-share amounts) | ||||
| % | ||||
| Q3'13 | Q3'12 | Change | Q2'13 | |
| Interest & Fee Income: | ||||
| Loans | $25,116 | $31,779 | -21.0% | $26,180 |
| Investment Securities: | ||||
| Available for Sale | 5,426 | 4,918 | 10.3% | 5,532 |
| Held to Maturity | 7,414 | 8,575 | -13.5% | 7,557 |
| Total Interest & Fee Income | 37,956 | 45,272 | -16.2% | 39,269 |
| Interest Expense: | ||||
| Transaction Deposits | 66 | 70 | -5.5% | 64 |
| Savings Deposits | 228 | 231 | -1.3% | 228 |
| Time Deposits | 515 | 719 | -28.4% | 555 |
| Short-Term Borrowed Funds | 20 | 15 | 31.1% | 26 |
| Federal Home Loan Bank Advances | 122 | 122 | 0.4% | 120 |
| Term Repurchase Agreement | 25 | 25 | 0.0% | 25 |
| Debt Financing | 200 | 200 | 0.0% | 201 |
| Total Interest Expense | 1,176 | 1,382 | -14.9% | 1,219 |
| Net Interest Income | 36,780 | 43,890 | -16.2% | 38,050 |
| Provision for Loan Losses | 1,800 | 2,800 | -35.7% | 1,800 |
| Noninterest Income: | ||||
| Service Charges | 6,433 | 6,847 | -6.0% | 6,452 |
| Merchant Processing Services | 2,151 | 2,411 | -10.8% | 2,413 |
| Debit Card Fees | 1,467 | 1,308 | 12.1% | 1,478 |
| ATM Processing Fees | 701 | 782 | -10.3% | 721 |
| Trust Fees | 567 | 540 | 5.1% | 585 |
| Financial Services Commissions | 150 | 175 | -14.6% | 284 |
| Other | 2,950 | 2,563 | 15.1% | 2,351 |
| Total Noninterest Income | 14,419 | 14,626 | -1.4% | 14,284 |
| Noninterest Expense: | ||||
| Salaries and Benefits | 13,826 | 14,294 | -3.3% | 14,064 |
| Occupancy | 3,829 | 3,901 | -1.8% | 3,638 |
| Outsourced Data Processing | 2,139 | 2,156 | -0.8% | 2,140 |
| Amortization of Identifiable Intangibles | 1,163 | 1,336 | -13.0% | 1,165 |
| Professional Fees | 730 | 786 | -7.2% | 745 |
| Equipment | 974 | 991 | -1.7% | 1,021 |
| Other Real Estate Owned | 179 | 679 | -73.7% | 278 |
| Courier Service | 725 | 772 | -6.0% | 737 |
| Other | 4,193 | 4,354 | -3.7% | 4,404 |
| Total Noninterest Expense | 27,758 | 29,269 | -5.2% | 28,192 |
| Income Before Income Taxes | 21,641 | 26,447 | -18.2% | 22,342 |
| Income Tax Provision | 4,903 | 6,425 | -23.7% | 5,230 |
| Net Income | $16,738 | $20,022 | -16.4% | $17,112 |
| Average Common Shares Outstanding | 26,670 | 27,513 | -3.1% | 26,890 |
| Diluted Common Shares Outstanding | 26,705 | 27,565 | -3.1% | 26,898 |
| Per Common Share Data: | ||||
| Basic Earnings | $0.63 | $0.73 | -13.7% | $0.64 |
| Diluted Earnings | 0.63 | 0.73 | -13.7% | 0.64 |
| Dividends Paid | 0.37 | 0.37 | 0.0% | 0.37 |
| % | ||||
| 9/30'13YTD | 9/30'12YTD | Change | ||
| Interest & Fee Income: | ||||
| Loans | $78,696 | $101,180 | -22.2% | |
| Investment Securities: | ||||
| Available for Sale | 16,293 | 14,644 | 11.3% | |
| Held to Maturity | 22,701 | 24,646 | -7.9% | |
| Total Interest & Fee Income | 117,690 | 140,470 | -16.2% | |
| Interest Expense: | ||||
| Transaction Deposits | 196 | 238 | -17.6% | |
| Savings Deposits | 686 | 696 | -1.4% | |
| Time Deposits | 1,673 | 2,380 | -29.7% | |
| Short-Term Borrowed Funds | 58 | 63 | -9.0% | |
| Federal Home Loan Bank Advances | 360 | 361 | -0.1% | |
| Term Repurchase Agreement | 73 | 74 | -1.1% | |
| Debt Financing | 601 | 601 | 0.0% | |
| Total Interest Expense | 3,647 | 4,413 | -17.4% | |
| Net Interest Income | 114,043 | 136,057 | -16.2% | |
| Provision for Loan Losses | 6,400 | 8,400 | -23.8% | |
| Noninterest Income: | ||||
| Service Charges | 19,427 | 20,969 | -7.4% | |
| Merchant Processing Services | 6,973 | 7,333 | -4.9% | |
| Debit Card Fees | 4,302 | 3,816 | 12.7% | |
| ATM Processing Fees | 2,128 | 2,648 | -19.6% | |
| Trust Fees | 1,720 | 1,526 | 12.7% | |
| Financial Services Commissions | 614 | 540 | 13.5% | |
| Loss on Sale of Securities | -- | (1,287) | n/m | |
| Other | 7,817 | 7,283 | 7.3% | |
| Total Noninterest Income | 42,981 | 42,828 | 0.4% | |
| Noninterest Expense: | ||||
| Salaries and Benefits | 42,293 | 43,833 | -3.5% | |
| Occupancy | 11,353 | 11,609 | -2.2% | |
| Outsourced Data Processing | 6,436 | 6,318 | 1.9% | |
| Amortization of Identifiable Intangibles | 3,547 | 4,076 | -13.0% | |
| Professional Fees | 2,109 | 2,455 | -14.1% | |
| Equipment | 2,875 | 2,883 | -0.3% | |
| Other Real Estate Owned | 791 | 912 | -13.3% | |
| Courier Service | 2,204 | 2,350 | -6.2% | |
| Other | 13,019 | 14,215 | -8.4% | |
| Total Noninterest Expense | 84,627 | 88,651 | -4.5% | |
| Income Before Income Taxes | 65,997 | 81,834 | -19.4% | |
| Income Tax Provision | 14,876 | 19,843 | -25.0% | |
| Net Income | $51,121 | $61,991 | -17.5% | |
| Average Common Shares Outstanding | 26,900 | 27,769 | -3.1% | |
| Diluted Common Shares Outstanding | 26,919 | 27,821 | -3.2% | |
| Per Common Share Data: | ||||
| Basic Earnings | $1.90 | $2.23 | -14.8% | |
| Diluted Earnings | 1.90 | 2.23 | -14.8% | |
| Dividends Paid | 1.11 | 1.11 | 0.0% | |
| Footnotes and Abbreviations: | |||
| (FTE) Fully Taxable Equivalent | |||
| (a) Annualized | |||
| (1) Purchased covered loans represent purchased loans on which losses are shared with the FDIC per a Loss Sharing Agreement. Purchased covered loans were recorded at estimated fair value at February 6, 2009, the date of purchase. | |||
| (2) Purchased non-covered loans represent purchased loans recorded at estimated fair value at August 20, 2010, the date of purchase. |