SAN RAFAEL, Calif., July 20, 2017 (GLOBE NEWSWIRE) -- Westamerica Bancorporation (Nasdaq:WABC), parent company of Westamerica Bank, generated net income for the second quarter 2017 of $15.8 million and diluted earnings per common share ("EPS") of $0.60, compared to first quarter 2017 net income of $15.0 million and EPS of $0.57 and second quarter 2016 net income of $14.5 million and EPS of $0.57. Second quarter 2017 results include a $1.9 million reversal of provision for loan losses which accounted for $0.04 of the quarter’s EPS. First quarter 2017 results reflect the Company’s prospective adoption of a new accounting standard related to share based compensation tax benefits; first quarter 2017 EPS measured $0.02 higher than would have been measured under accounting standards applied in 2016. The new accounting standard did not affect second quarter 2017 results by a meaningful amount.
"Second quarter 2017 net income benefited from higher noninterest income and lower noninterest expense. While short-term market interest rates rose during the second quarter 2017, intermediate and long-term rates declined; the interest rate environment was not conducive for net interest margin improvement. Credit quality improved with non-performing assets declining $650 thousand during the second quarter 2017 to total $8.5 million at June 30, 2017,” said Chairman, President and CEO David Payne. “Westamerica generated an annualized 10.7 percent return on average shareholders’ common equity for the second quarter 2017, and paid a quarterly dividend of $0.39 per common share,” concluded Payne.
The annualized net interest margin on a fully taxable equivalent basis was 3.12 percent for the second quarter 2017, compared to 3.14 percent for the first quarter 2017, and 3.27 percent for the second quarter 2016. Net interest income on a fully taxable equivalent basis was $35.8 million for the second quarter 2017, compared to $36.0 million for the first quarter 2017, and $36.5 million for the second quarter 2016. The annualized funding cost of deposits and other interest-bearing borrowings, as a percentage of average earning assets, was 0.04 percent for the second quarter 2017, compared to 0.04 percent for the first quarter 2017 and 0.05 percent for the second quarter 2016. Checking and savings deposits, which earn relatively low interest rates and are less volatile than time deposits during periods of rising market interest rates, represented 95 percent of average total deposits during the second quarter 2017.
The Company recognized a reversal of provision for loan losses of $1.9 million for the second quarter 2017; during the quarter the Company realized net recoveries of prior loan losses of $1.1 million and nonperforming loans declined $159 thousand, totaling $6.9 million at June 30, 2017. The provision for loan losses was zero for the first quarter 2017 and second quarter 2016. At June 30, 2017, the allowance for loan losses totaled $24.1 million.
Noninterest income for the second quarter 2017 totaled $12.1 million, compared to $11.7 million for the first quarter 2017 and $11.7 million for the second quarter 2016. The second quarter 2017 improvement in noninterest income is primarily due to higher merchant processing fees.
Noninterest expense for the second quarter 2017 totaled $24.4 million, compared to $24.6 million for the first quarter 2017 and $25.2 million for the second quarter 2016. The $800 thousand reduction in noninterest expense from the second quarter 2016 to the second quarter 2017 was due to reductions in professional fees, correspondent service charges, insurance premiums, limited partnership operating losses, intangible amortization, and other expenses.
The income tax provision for 2017 reflects the prospective adoption of Accounting Standards Update (“ASU”) 2016-09, “Improvements to Employee Share-Based Payment Accounting”. Upon granting non-qualified stock options (“NQSO”), the Company estimates the fair value of the grant and records such value as compensation expense over the attribution period in its financial statements. At the time the NQSO grant is exercised, the ultimate value of the grant is determined and represents taxable income to the grantee and a tax deduction for the Company. The difference between the estimated fair value expensed for financial statement purposes and the realized amount deducted for tax purposes requires a reconciling adjustment to the Company’s tax accounts. Prior to ASU 2016-09, the Company recognized the balancing entry as an adjustment to shareholders’ equity; upon the January 1, 2017 required adoption of ASU 2016-09, the Company must recognize the balancing entry as an adjustment to the provision for income taxes. The Company’s fully-tax equivalent tax rate was 37.8 percent for the second quarter 2017, compared to 34.8 percent for the first quarter 2017 and 36.7 percent for the second quarter 2016. The fully-tax equivalent tax rate would have been 37.8 percent for the second quarter 2017 and 37.7 percent for the first quarter 2017 under accounting rules applied in 2016.
At June 30, 2017, Westamerica Bancorporation's tangible common equity-to-asset ratio was 8.90 percent, and assets totaled $5.4 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, 2016 filed on Form 10-K and quarterly report for the quarter ended March 31, 2017 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 July 20, 2017 | |||||||||||||
| WESTAMERICA BANCORPORATION | |||||||||||||
| FINANCIAL HIGHLIGHTS | |||||||||||||
| June 30, 2017 | |||||||||||||
| 1. Net Income Summary. | |||||||||||||
| (in thousands except per-share amounts) | |||||||||||||
| % | |||||||||||||
| Q2'17 | Q2'16 | Change | Q1'17 | ||||||||||
| Net Interest and Fee Income (FTE) | $ | 35,764 | $ | 36,495 | -2.0 | % | $ | 36,030 | |||||
| (Reversal of) Provision for Loan Losses | (1,900 | ) | - | n/m | - | ||||||||
| Noninterest Income | 12,123 | 11,702 | 3.6 | % | 11,657 | ||||||||
| Noninterest Expense | 24,396 | 25,229 | -3.3 | % | 24,615 | ||||||||
| Income Before Taxes (FTE) | 25,391 | 22,968 | 10.5 | % | 23,072 | ||||||||
| Income Tax Provision (FTE) | 9,592 | 8,422 | 13.9 | % | 8,023 | ||||||||
| Net Income | $ | 15,799 | $ | 14,546 | 8.6 | % | $ | 15,049 | |||||
| Average Common Shares Outstanding | 26,299 | 25,586 | 2.8 | % | 26,171 | ||||||||
| Diluted Average Common Shares | 26,402 | 25,630 | 3.0 | % | 26,329 | ||||||||
| Operating Ratios: | |||||||||||||
| Basic Earnings Per Common Share | $ | 0.60 | $ | 0.57 | 5.3 | % | $ | 0.58 | |||||
| Diluted Earnings Per Common Share | 0.60 | 0.57 | 5.3 | % | 0.57 | ||||||||
| Return On Assets (a) | 1.18 | % | 1.13 | % | 1.13 | % | |||||||
| Return On Common Equity (a) | 10.7 | % | 10.9 | % | 10.5 | % | |||||||
| Net Interest Margin (FTE) (a) | 3.12 | % | 3.27 | % | 3.14 | % | |||||||
| Efficiency Ratio (FTE) | 50.9 | % | 52.3 | % | 51.6 | % | |||||||
| Dividends Paid Per Common Share | $ | 0.39 | $ | 0.39 | 0.0 | % | $ | 0.39 | |||||
| Common Dividend Payout Ratio | 65 | % | 68 | % | 68 | % | |||||||
| % | |||||||||||||
| 06/30'17YTD | 06/30'16YTD | Change | |||||||||||
| Net Interest and Fee Income (FTE) | $ | 71,794 | $ | 72,942 | -1.6 | % | |||||||
| (Reversal of) Provision for Loan Losses | (1,900 | ) | - | n/m | |||||||||
| Noninterest Income | 23,780 | 23,431 | 1.5 | % | |||||||||
| Noninterest Expense | 49,011 | 51,087 | -4.1 | % | |||||||||
| Income Before Taxes (FTE) | 48,463 | 45,286 | 7.0 | % | |||||||||
| Income Tax Provision (FTE) | 17,615 | 16,514 | 6.7 | % | |||||||||
| Net Income | $ | 30,848 | $ | 28,772 | 7.2 | % | |||||||
| Average Common Shares Outstanding | 26,235 | 25,516 | 2.8 | % | |||||||||
| Diluted Average Common Shares | 26,366 | 25,549 | 3.2 | % | |||||||||
| Operating Ratios: | |||||||||||||
| Basic Earnings Per Common Share | $ | 1.18 | $ | 1.13 | 4.4 | % | |||||||
| Diluted Earnings Per Common Share | 1.17 | 1.13 | 3.5 | % | |||||||||
| Return On Assets (a) | 1.15 | % | 1.12 | % | |||||||||
| Return On Common Equity (a) | 10.6 | % | 10.9 | % | |||||||||
| Net Interest Margin (FTE) (a) | 3.13 | % | 3.30 | % | |||||||||
| Efficiency Ratio (FTE) | 51.3 | % | 53.0 | % | |||||||||
| Dividends Paid Per Common Share | $ | 0.78 | $ | 0.78 | 0.0 | % | |||||||
| Common Dividend Payout Ratio | 67 | % | 69 | % | |||||||||
| 2. Net Interest Income. | |||||||||||||
| (dollars in thousands) | |||||||||||||
| % | |||||||||||||
| Q2'17 | Q2'16 | Change | Q1'17 | ||||||||||
| Interest and Fee Income (FTE) | $ | 36,240 | $ | 37,036 | -2.2 | % | $ | 36,510 | |||||
| Interest Expense | 476 | 541 | -12.1 | % | 480 | ||||||||
| Net Interest and Fee Income (FTE) | $ | 35,764 | $ | 36,495 | -2.0 | % | $ | 36,030 | |||||
| Average Earning Assets | $ | 4,598,296 | $ | 4,473,700 | 2.8 | % | $ | 4,620,001 | |||||
| Average Interest- | |||||||||||||
| Bearing Liabilities | 2,692,447 | 2,598,868 | 3.6 | % | 2,704,472 | ||||||||
| Yield on Earning Assets (FTE) (a) | 3.16 | % | 3.32 | % | 3.18 | % | |||||||
| Cost of Funds (a) | 0.04 | % | 0.05 | % | 0.04 | % | |||||||
| Net Interest Margin (FTE) (a) | 3.12 | % | 3.27 | % | 3.14 | % | |||||||
| Interest Expense/ | |||||||||||||
| Interest-Bearing Liabilities (a) | 0.07 | % | 0.08 | % | 0.07 | % | |||||||
| Net Interest Spread (FTE) (a) | 3.09 | % | 3.24 | % | 3.11 | % | |||||||
| % | |||||||||||||
| 06/30'17YTD | 06/30'16YTD | Change | |||||||||||
| Interest and Fee Income (FTE) | $ | 72,750 | $ | 74,035 | -1.7 | % | |||||||
| Interest Expense | 956 | 1,093 | -12.5 | % | |||||||||
| Net Interest and Fee Income (FTE) | $ | 71,794 | $ | 72,942 | -1.6 | % | |||||||
| Average Earning Assets | $ | 4,609,089 | $ | 4,427,507 | 4.1 | % | |||||||
| Average Interest- | |||||||||||||
| Bearing Liabilities | 2,698,426 | 2,600,138 | 3.8 | % | |||||||||
| Yield on Earning Assets (FTE) (a) | 3.17 | % | 3.35 | % | |||||||||
| Cost of Funds (a) | 0.04 | % | 0.05 | % | |||||||||
| Net Interest Margin (FTE) (a) | 3.13 | % | 3.30 | % | |||||||||
| Interest Expense/ | |||||||||||||
| Interest-Bearing Liabilities (a) | 0.07 | % | 0.08 | % | |||||||||
| Net Interest Spread (FTE) (a) | 3.10 | % | 3.27 | % | |||||||||
| 3. Loans & Other Earning Assets. | |||||||||||||
| (average volume, dollars in thousands) | |||||||||||||
| % | |||||||||||||
| Q2'17 | Q2'16 | Change | Q1'17 | ||||||||||
| Total Assets | $ | 5,385,085 | $ | 5,184,409 | 3.9 | % | $ | 5,395,783 | |||||
| Total Earning Assets | 4,598,296 | 4,473,700 | 2.8 | % | 4,620,001 | ||||||||
| Total Loans | 1,333,135 | 1,455,050 | -8.4 | % | 1,355,250 | ||||||||
| Commercial Loans | 349,979 | 356,629 | -1.9 | % | 354,896 | ||||||||
| Commercial RE Loans | 566,570 | 611,996 | -7.4 | % | 558,485 | ||||||||
| Consumer Loans | 416,586 | 486,425 | -14.4 | % | 441,869 | ||||||||
| Total Investment Securities | 3,265,161 | 3,018,650 | 8.2 | % | 3,264,751 | ||||||||
| Available For Sale (Market) | 1,982,997 | 1,554,014 | 27.6 | % | 1,941,028 | ||||||||
| Held To Maturity | 1,282,164 | 1,464,636 | -12.5 | % | 1,323,723 | ||||||||
| Unrealized Gain (Loss) | 3,438 | 33,820 | n/m | (1,676 | ) | ||||||||
| Loans/Deposits | 28.6 | % | 32.1 | % | 28.9 | % | |||||||
| % | |||||||||||||
| 06/30'17YTD | 06/30'16YTD | Change | |||||||||||
| Total Assets | $ | 5,390,404 | $ | 5,179,607 | 4.1 | % | |||||||
| Total Earning Assets | 4,609,089 | 4,427,507 | 4.1 | % | |||||||||
| Total Loans | 1,344,132 | 1,477,833 | -9.0 | % | |||||||||
| Commercial Loans | 352,424 | 363,380 | -3.0 | % | |||||||||
| Commercial RE Loans | 562,550 | 621,269 | -9.5 | % | |||||||||
| Consumer Loans | 429,158 | 493,184 | -13.0 | % | |||||||||
| Total Investment Securities | 3,264,957 | 2,949,674 | 10.7 | % | |||||||||
| Available For Sale (Market) | 1,962,128 | 1,560,675 | 25.7 | % | |||||||||
| Held To Maturity | 1,302,829 | 1,388,999 | -6.2 | % | |||||||||
| Unrealized Gain | 3,438 | 33,820 | n/m | ||||||||||
| Loans/Deposits | 28.7 | % | 32.6 | % | |||||||||
| 4. Deposits, Other Interest-Bearing Liabilities & Equity. | |||||||||||||
| (average volume, dollars in thousands) | |||||||||||||
| % | |||||||||||||
| Q2'17 | Q2'16 | Change | Q1'17 | ||||||||||
| Total Deposits | $ | 4,669,424 | $ | 4,531,751 | 3.0 | % | $ | 4,692,746 | |||||
| Noninterest Demand | 2,048,155 | 1,994,803 | 2.7 | % | 2,056,858 | ||||||||
| Interest Bearing Transaction | 880,470 | 855,732 | 2.9 | % | 880,387 | ||||||||
| Savings | 1,491,283 | 1,404,322 | 6.2 | % | 1,501,961 | ||||||||
| Time greater than $100K | 110,762 | 119,475 | -7.3 | % | 112,140 | ||||||||
| Time less than $100K | 138,754 | 157,419 | -11.9 | % | 141,400 | ||||||||
| Total Short-Term Borrowings | 71,178 | 61,920 | 15.0 | % | 68,584 | ||||||||
| Shareholders' Equity | 593,028 | 537,987 | 10.2 | % | 582,384 | ||||||||
| Demand Deposits/ | |||||||||||||
| Total Deposits | 43.9 | % | 44.0 | % | 43.8 | % | |||||||
| Transaction & Savings | |||||||||||||
| Deposits / Total Deposits | 94.7 | % | 93.9 | % | 94.6 | % | |||||||
| % | |||||||||||||
| 06/30'17YTD | 06/30'16YTD | Change | |||||||||||
| Total Deposits | $ | 4,681,021 | $ | 4,534,650 | 3.2 | % | |||||||
| Noninterest Demand | 2,052,483 | 1,994,395 | 2.9 | % | |||||||||
| Interest Bearing Transaction | 880,429 | 864,098 | 1.9 | % | |||||||||
| Savings | 1,496,592 | 1,395,769 | 7.2 | % | |||||||||
| Time greater than $100K | 111,447 | 121,583 | -8.3 | % | |||||||||
| Time less than $100K | 140,070 | 158,805 | -11.8 | % | |||||||||
| Total Short-Term Borrowings | 69,888 | 59,883 | 16.7 | % | |||||||||
| Shareholders' Equity | 587,736 | 532,582 | 10.4 | % | |||||||||
| Demand Deposits/ | |||||||||||||
| Total Deposits | 43.8 | % | 44.0 | % | |||||||||
| Transaction & Savings | |||||||||||||
| Deposits / Total Deposits | 94.6 | % | 93.8 | % | |||||||||
| 5. Interest Yields Earned & Rates Paid. | |||||||||||||
| (dollars in thousands) | |||||||||||||
| Q2'17 | |||||||||||||
| Average | Income/ | Yield (a) / | |||||||||||
| Volume | Expense | Rate | |||||||||||
| Interest & Fee Income Earned | |||||||||||||
| Total Earning Assets (FTE) | $ | 4,598,296 | $ | 36,240 | 3.16 | % | |||||||
| Total Loans (FTE) | 1,333,135 | 15,747 | 4.74 | % | |||||||||
| Commercial Loans (FTE) | 349,979 | 4,144 | 4.75 | % | |||||||||
| Commercial RE Loans | 566,570 | 8,011 | 5.67 | % | |||||||||
| Consumer Loans | 416,586 | 3,592 | 3.46 | % | |||||||||
| Total Investments (FTE) | 3,265,161 | 20,493 | 2.51 | % | |||||||||
| Interest Expense Paid | |||||||||||||
| Total Earning Assets | 4,598,296 | 476 | 0.04 | % | |||||||||
| Total Interest-Bearing Liabilities | 2,692,447 | 476 | 0.07 | % | |||||||||
| Total Interest-Bearing Deposits | 2,621,269 | 465 | 0.07 | % | |||||||||
| Interest-Bearing Transaction | 880,470 | 57 | 0.03 | % | |||||||||
| Savings | 1,491,283 | 222 | 0.06 | % | |||||||||
| Time less than $100K | 138,754 | 81 | 0.23 | % | |||||||||
| Time greater than $100K | 110,762 | 105 | 0.38 | % | |||||||||
| Total Short-Term Borrowings | 71,178 | 11 | 0.06 | % | |||||||||
| Net Interest Income and | |||||||||||||
| Margin (FTE) | $ | 35,764 | 3.12 | % | |||||||||
| Q2'16 | |||||||||||||
| Average | Income/ | Yield (a) / | |||||||||||
| Volume | Expense | Rate | |||||||||||
| Interest & Fee Income Earned | |||||||||||||
| Total Earning Assets (FTE) | $ | 4,473,700 | $ | 37,036 | 3.32 | % | |||||||
| Total Loans (FTE) | 1,455,050 | 17,897 | 4.95 | % | |||||||||
| Commercial Loans (FTE) | 356,629 | 4,197 | 4.73 | % | |||||||||
| Commercial RE Loans | 611,996 | 9,538 | 6.27 | % | |||||||||
| Consumer Loans | 486,425 | 4,162 | 3.44 | % | |||||||||
| Total Investments (FTE) | 3,018,650 | 19,139 | 2.53 | % | |||||||||
| Interest Expense Paid | |||||||||||||
| Total Earning Assets | 4,473,700 | 541 | 0.05 | % | |||||||||
| Total Interest-Bearing Liabilities | 2,598,868 | 541 | 0.08 | % | |||||||||
| Total Interest-Bearing Deposits | 2,536,948 | 531 | 0.08 | % | |||||||||
| Interest-Bearing Transaction | 855,732 | 67 | 0.03 | % | |||||||||
| Savings | 1,404,322 | 225 | 0.06 | % | |||||||||
| Time less than $100K | 157,419 | 104 | 0.27 | % | |||||||||
| Time greater than $100K | 119,475 | 135 | 0.45 | % | |||||||||
| Total Short-Term Borrowings | 61,920 | 10 | 0.07 | % | |||||||||
| Net Interest Income and | |||||||||||||
| Margin (FTE) | $ | 36,495 | 3.27 | % | |||||||||
| 6. Noninterest Income. | |||||||||||||
| (dollars in thousands except per-share amounts) | |||||||||||||
| % | |||||||||||||
| Q2'17 | Q2'16 | Change | Q1'17 | ||||||||||
| Service Charges on Deposits | $ | 4,945 | $ | 5,239 | -5.6 | % | $ | 4,923 | |||||
| Merchant Processing Services | 2,052 | 1,638 | 25.3 | % | 1,875 | ||||||||
| Debit Card Fees | 1,586 | 1,621 | -2.1 | % | 1,481 | ||||||||
| Other Service Fees | 662 | 650 | 1.8 | % | 650 | ||||||||
| ATM Processing Fees | 654 | 603 | 8.6 | % | 575 | ||||||||
| Trust Fees | 716 | 657 | 8.9 | % | 702 | ||||||||
| Financial Services Commissions | 142 | 137 | 3.6 | % | 195 | ||||||||
| Other Income | 1,366 | 1,157 | 18.0 | % | 1,256 | ||||||||
| Total Noninterest Income | $ | 12,123 | $ | 11,702 | 3.6 | % | $ | 11,657 | |||||
| Total Revenue (FTE) | $ | 47,887 | $ | 48,197 | -0.6 | % | $ | 47,687 | |||||
| Noninterest Income/Revenue (FTE) | 25.3 | % | 24.3 | % | 24.4 | % | |||||||
| Service Charges/Avg. Deposits (a) | 0.42 | % | 0.46 | % | 0.43 | % | |||||||
| Total Revenues (FTE) Per Avg. | |||||||||||||
| Common Share (a) | $ | 7.30 | $ | 7.58 | -3.6 | % | $ | 7.39 | |||||
| % | |||||||||||||
| 06/30'17YTD | 06/30'16YTD | Change | |||||||||||
| Service Charges on Deposits | $ | 9,868 | $ | 10,487 | -5.9 | % | |||||||
| Merchant Processing Services | 3,927 | 3,167 | 24.0 | % | |||||||||
| Debit Card Fees | 3,067 | 3,137 | -2.2 | % | |||||||||
| Other Service Fees | 1,312 | 1,279 | 2.5 | % | |||||||||
| ATM Processing Fees | 1,229 | 1,261 | -2.5 | % | |||||||||
| Trust Fees | 1,418 | 1,318 | 7.6 | % | |||||||||
| Financial Services Commissions | 337 | 293 | 15.0 | % | |||||||||
| Other Income | 2,622 | 2,489 | 5.3 | % | |||||||||
| Total Noninterest Income | $ | 23,780 | $ | 23,431 | 1.5 | % | |||||||
| Total Revenue (FTE) | $ | 95,574 | $ | 96,373 | -0.8 | % | |||||||
| Noninterest Income/Revenue (FTE) | 24.9 | % | 24.3 | % | |||||||||
| Service Charges/Avg. Deposits (a) | 0.43 | % | 0.47 | % | |||||||||
| Total Revenues (FTE) Per Avg. | |||||||||||||
| Common Share (a) | $ | 7.35 | $ | 7.60 | -3.3 | % | |||||||
| 7. Noninterest Expense. | |||||||||||||
| (dollars in thousands) | |||||||||||||
| % | |||||||||||||
| Q2'17 | Q2'16 | Change | Q1'17 | ||||||||||
| Salaries & Benefits | $ | 12,981 | $ | 12,887 | 0.7 | % | $ | 13,070 | |||||
| Occupancy | 3,509 | 3,400 | 3.2 | % | 3,633 | ||||||||
| Outsourced Data Processing | 2,188 | 2,130 | 2.7 | % | 2,139 | ||||||||
| Amortization of | |||||||||||||
| Identifiable Intangibles | 762 | 870 | -12.4 | % | 800 | ||||||||
| Professional Fees | 410 | 758 | -45.9 | % | 611 | ||||||||
| Furniture & Equipment | 1,267 | 1,187 | 6.8 | % | 1,254 | ||||||||
| Other Real Estate Owned | (126 | ) | (392 | ) | n/m | (40 | ) | ||||||
| Courier Service | 438 | 462 | -5.2 | % | 421 | ||||||||
| Other Operating | 2,967 | 3,927 | -24.4 | % | 2,727 | ||||||||
| Total Noninterest Expense | $ | 24,396 | $ | 25,229 | -3.3 | % | $ | 24,615 | |||||
| Noninterest Expense/ | |||||||||||||
| Avg. Earning Assets (a) | 2.13 | % | 2.27 | % | 2.16 | % | |||||||
| Noninterest Expense/Revenues (FTE) | 50.9 | % | 52.3 | % | 51.6 | % | |||||||
| % | |||||||||||||
| 06/30'17YTD | 06/30'16YTD | Change | |||||||||||
| Salaries & Benefits | $ | 26,051 | $ | 26,004 | 0.2 | % | |||||||
| Occupancy | 7,142 | 6,798 | 5.1 | % | |||||||||
| Outsourced Data Processing | 4,327 | 4,260 | 1.6 | % | |||||||||
| Amortization of | |||||||||||||
| Identifiable Intangibles | 1,562 | 1,775 | -12.0 | % | |||||||||
| Professional Fees | 1,021 | 1,490 | -31.4 | % | |||||||||
| Furniture & Equipment | 2,521 | 2,400 | 5.1 | % | |||||||||
| Other Real Estate Owned | (166 | ) | (281 | ) | n/m | ||||||||
| Courier Service | 859 | 1,007 | -14.7 | % | |||||||||
| Other Operating | 5,694 | 7,634 | -25.4 | % | |||||||||
| Total Noninterest Expense | $ | 49,011 | $ | 51,087 | -4.1 | % | |||||||
| Noninterest Expense/ | |||||||||||||
| Avg. Earning Assets (a) | 2.14 | % | 2.32 | % | |||||||||
| Noninterest Expense/Revenues (FTE) | 51.3 | % | 53.0 | % | |||||||||
| 8. Allowance for Loan Losses. | |||||||||||||
| (dollars in thousands) | |||||||||||||
| % | |||||||||||||
| Q2'17 | Q2'16 | Change | Q1'17 | ||||||||||
| Average Total Loans | $ | 1,333,135 | $ | 1,455,050 | -8.4 | % | $ | 1,355,250 | |||||
| Allowance for Loan Loss (ALL) | |||||||||||||
| Beginning of Period | $ | 24,919 | $ | 29,487 | -15.5 | % | $ | 25,954 | |||||
| (Reversal of) Provision for Loan Losses | (1,900 | ) | - | n/m | - | ||||||||
| Net ALL Recoveries (Losses) | 1,084 | (577 | ) | n/m | (1,035 | ) | |||||||
| ALL End of Period | $ | 24,103 | $ | 28,910 | -16.6 | % | $ | 24,919 | |||||
| ALL Recoveries/Gross ALL Losses | 158 | % | 61 | % | 44 | % | |||||||
| Net ALL (Recoveries) Losses/ | |||||||||||||
| Avg. Total Loans (a) | -0.33 | % | 0.16 | % | 0.31 | % | |||||||
| % | |||||||||||||
| 06/30'17YTD | 06/30'16YTD | Change | |||||||||||
| Average Total Loans | $ | 1,344,132 | $ | 1,477,833 | -9.0 | % | |||||||
| Allowance for Loan Loss (ALL) | |||||||||||||
| Beginning of Period | $ | 25,954 | $ | 29,771 | -12.8 | % | |||||||
| (Reversal of) Provision for Loan Losses | (1,900 | ) | - | n/m | |||||||||
| Net ALL Recoveries (Losses) | 49 | (861 | ) | n/m | |||||||||
| ALL End of Period | $ | 24,103 | $ | 28,910 | -16.6 | % | |||||||
| ALL Recoveries/Gross ALL Losses | 101 | % | 76 | % | |||||||||
| Net ALL (Recoveries) Losses/ | |||||||||||||
| Avg. Total Loans (a) | -0.01 | % | 0.12 | % | |||||||||
| 9. Credit Quality. | |||||||||||||
| (dollars in thousands) | |||||||||||||
| % | |||||||||||||
| 6/30/17 | 6/30/16 | Change | 3/31/17 | ||||||||||
| Nonperforming Loans (1): | |||||||||||||
| Nonperforming Nonaccrual | $ | 2,215 | $ | 6,527 | -66.1 | % | $ | 2,382 | |||||
| Performing Nonaccrual | 4,480 | 7,038 | -36.3 | % | 4,285 | ||||||||
| Total Nonaccrual Loans | 6,695 | 13,565 | -50.6 | % | 6,667 | ||||||||
| 90+ Days Past Due Accruing Loans | 186 | 356 | -47.8 | % | 373 | ||||||||
| Total | 6,881 | 13,921 | -50.6 | % | 7,040 | ||||||||
| Repossessed Loan Collateral (1) | 1,645 | 4,162 | -60.5 | % | 2,136 | ||||||||
| Total Nonperforming Assets (1) | $ | 8,526 | $ | 18,083 | -52.8 | % | $ | 9,176 | |||||
| Total Loans Outstanding | $ | 1,318,341 | $ | 1,429,560 | -7.8 | % | $ | 1,351,090 | |||||
| Total Assets | $ | 5,393,350 | $ | 5,179,085 | 4.1 | % | $ | 5,395,947 | |||||
| Loans: | |||||||||||||
| Allowance for Loan Losses | $ | 24,103 | $ | 28,910 | -16.6 | % | $ | 24,919 | |||||
| Allowance/Loans | 1.83 | % | 2.02 | % | 1.84 | % | |||||||
| Nonperforming Loans/Total Loans | 0.52 | % | 0.97 | % | 0.52 | % | |||||||
| 10. Capital. | |||||||||||||
| (in thousands, except per-share amounts) | |||||||||||||
| % | |||||||||||||
| 6/30/17 | 6/30/16 | Change | 3/31/17 | ||||||||||
| Shareholders' Equity | $ | 595,594 | $ | 558,327 | 6.7 | % | $ | 584,888 | |||||
| Total Assets | 5,393,350 | 5,179,085 | 4.1 | % | 5,395,947 | ||||||||
| Shareholders' Equity/ | |||||||||||||
| Total Assets | 11.04 | % | 10.78 | % | 10.84 | % | |||||||
| Shareholders' Equity/ | |||||||||||||
| Total Loans | 45.18 | % | 39.06 | % | 43.29 | % | |||||||
| Tangible Common Equity Ratio | 8.90 | % | 8.48 | % | 8.68 | % | |||||||
| Common Shares Outstanding | 26,304 | 25,632 | 2.6 | % | 26,283 | ||||||||
| Common Equity Per Share | $ | 22.64 | $ | 21.78 | 3.9 | % | $ | 22.25 | |||||
| Market Value Per Common Share | $ | 56.04 | $ | 49.26 | 13.8 | % | $ | 55.83 | |||||
| Share Repurchase Programs | |||||||||||||
| (shares in thousands) | |||||||||||||
| % | |||||||||||||
| Q2'17 | Q2'16 | Change | Q1'17 | ||||||||||
| Total Shares Repurchased | 6 | 7 | n/m | - | |||||||||
| Average Repurchase Price | $ | 56.51 | $ | 49.35 | n/m | $ | - | ||||||
| Net Shares Issued | (21 | ) | (194 | ) | n/m | (376 | ) | ||||||
| % | |||||||||||||
| 06/30'17YTD | 06/30'16YTD | Change | |||||||||||
| Total Shares Repurchased | 6 | 137 | n/m | ||||||||||
| Average Repurchase Price | $ | 56.51 | $ | 41.94 | n/m | ||||||||
| Net Shares Issued | (397 | ) | (104 | ) | n/m | ||||||||
| 11. Period-End Balance Sheets. | |||||||||||||
| (unaudited, dollars in thousands) | |||||||||||||
| % | |||||||||||||
| 6/30/17 | 6/30/16 | Change | 3/31/17 | ||||||||||
| Assets: | |||||||||||||
| Cash and Due from Banks | $ | 529,362 | $ | 441,785 | 19.8 | % | $ | 546,815 | |||||
| Investment Securities: | |||||||||||||
| Available For Sale | 1,976,156 | 1,531,035 | 29.1 | % | 1,893,309 | ||||||||
| Held to Maturity | 1,261,321 | 1,473,357 | -14.4 | % | 1,298,414 | ||||||||
| Loans | 1,318,341 | 1,429,560 | -7.8 | % | 1,351,090 | ||||||||
| Allowance For Loan Losses | (24,103 | ) | (28,910 | ) | -16.6 | % | (24,919 | ) | |||||
| Total Loans, net | 1,294,238 | 1,400,650 | -7.6 | % | 1,326,171 | ||||||||
| Other Real Estate Owned | 1,645 | 4,162 | -60.5 | % | 2,136 | ||||||||
| Premises and Equipment, net | 35,564 | 37,759 | -5.8 | % | 36,025 | ||||||||
| Identifiable Intangibles, net | 5,365 | 8,656 | -38.0 | % | 6,127 | ||||||||
| Goodwill | 121,673 | 121,673 | 0.0 | % | 121,673 | ||||||||
| Other Assets | 168,026 | 160,008 | 5.0 | % | 165,277 | ||||||||
| Total Assets | $ | 5,393,350 | $ | 5,179,085 | 4.1 | % | $ | 5,395,947 | |||||
| Liabilities and Shareholders' Equity: | |||||||||||||
| Deposits: | |||||||||||||
| Noninterest Bearing | $ | 2,079,608 | $ | 1,978,947 | 5.1 | % | $ | 2,046,390 | |||||
| Interest-Bearing Transaction | 885,516 | 827,857 | 7.0 | % | 905,588 | ||||||||
| Savings | 1,470,978 | 1,404,840 | 4.7 | % | 1,494,854 | ||||||||
| Time | 246,468 | 273,670 | -9.9 | % | 251,141 | ||||||||
| Total Deposits | 4,682,570 | 4,485,314 | 4.4 | % | 4,697,973 | ||||||||
| Short-Term Borrowed Funds | 75,769 | 67,852 | 11.7 | % | 73,611 | ||||||||
| Other Liabilities | 39,417 | 67,592 | -41.7 | % | 39,475 | ||||||||
| Total Liabilities | 4,797,756 | 4,620,758 | 3.8 | % | 4,811,059 | ||||||||
| Shareholders' Equity: | |||||||||||||
| Common Equity: | |||||||||||||
| Paid-In Capital | 426,012 | 391,213 | 8.9 | % | 424,203 | ||||||||
| Accumulated Other | |||||||||||||
| Comprehensive (Loss) Income | (5,864 | ) | 11,885 | n/m | (9,443 | ) | |||||||
| Retained Earnings | 175,446 | 155,229 | 13.0 | % | 170,128 | ||||||||
| Total Shareholders' Equity | 595,594 | 558,327 | 6.7 | % | 584,888 | ||||||||
| Total Liabilities and | |||||||||||||
| Shareholders' Equity | $ | 5,393,350 | $ | 5,179,085 | 4.1 | % | $ | 5,395,947 | |||||
| 12. Income Statements. | |||||||||||||
| (unaudited, in thousands except per-share amounts) | |||||||||||||
| % | |||||||||||||
| Q2'17 | Q2'16 | Change | Q1'17 | ||||||||||
| Interest & Fee Income: | |||||||||||||
| Loans | $ | 15,468 | $ | 17,583 | -12.0 | % | $ | 15,780 | |||||
| Investment Securities: | |||||||||||||
| Available for Sale | 10,709 | 8,091 | 32.4 | % | 10,249 | ||||||||
| Held to Maturity | 6,986 | 8,053 | -13.3 | % | 7,295 | ||||||||
| Total Interest & Fee Income | 33,163 | 33,727 | -1.7 | % | 33,324 | ||||||||
| Interest Expense: | |||||||||||||
| Transaction Deposits | 57 | 67 | -14.9 | % | 57 | ||||||||
| Savings Deposits | 222 | 225 | -1.2 | % | 223 | ||||||||
| Time Deposits | 186 | 239 | -22.5 | % | 189 | ||||||||
| Short-Term Borrowed Funds | 11 | 10 | 12.3 | % | 11 | ||||||||
| Total Interest Expense | 476 | 541 | -12.1 | % | 480 | ||||||||
| Net Interest Income | 32,687 | 33,186 | -1.5 | % | 32,844 | ||||||||
| (Reversal of) Provision for Loan Losses | (1,900 | ) | - | n/m | - | ||||||||
| Noninterest Income: | |||||||||||||
| Service Charges | 4,945 | 5,239 | -5.6 | % | 4,923 | ||||||||
| Merchant Processing Services | 2,052 | 1,638 | 25.3 | % | 1,875 | ||||||||
| Debit Card Fees | 1,586 | 1,621 | -2.1 | % | 1,481 | ||||||||
| Other Service Fees | 662 | 650 | 1.8 | % | 650 | ||||||||
| ATM Processing Fees | 654 | 603 | 8.6 | % | 575 | ||||||||
| Trust Fees | 716 | 657 | 8.9 | % | 702 | ||||||||
| Financial Services Commissions | 142 | 137 | 3.6 | % | 195 | ||||||||
| Other | 1,366 | 1,157 | 18.0 | % | 1,256 | ||||||||
| Total Noninterest Income | 12,123 | 11,702 | 3.6 | % | 11,657 | ||||||||
| Noninterest Expense: | |||||||||||||
| Salaries and Benefits | 12,981 | 12,887 | 0.7 | % | 13,070 | ||||||||
| Occupancy | 3,509 | 3,400 | 3.2 | % | 3,633 | ||||||||
| Outsourced Data Processing | 2,188 | 2,130 | 2.7 | % | 2,139 | ||||||||
| Amortization of Identifiable Intangibles | 762 | 870 | -12.4 | % | 800 | ||||||||
| Professional Fees | 410 | 758 | -45.9 | % | 611 | ||||||||
| Furniture & Equipment | 1,267 | 1,187 | 6.8 | % | 1,254 | ||||||||
| Other Real Estate Owned | (126 | ) | (392 | ) | n/m | (40 | ) | ||||||
| Courier Service | 438 | 462 | -5.2 | % | 421 | ||||||||
| Other | 2,967 | 3,927 | -24.4 | % | 2,727 | ||||||||
| Total Noninterest Expense | 24,396 | 25,229 | -3.3 | % | 24,615 | ||||||||
| Income Before Income Taxes | 22,314 | 19,659 | 13.5 | % | 19,886 | ||||||||
| Income Tax Provision | 6,515 | 5,113 | 27.4 | % | 4,837 | ||||||||
| Net Income | $ | 15,799 | $ | 14,546 | 8.6 | % | $ | 15,049 | |||||
| Average Common Shares Outstanding | 26,299 | 25,586 | 2.8 | % | 26,171 | ||||||||
| Diluted Common Shares Outstanding | 26,402 | 25,630 | 3.0 | % | 26,329 | ||||||||
| Per Common Share Data: | |||||||||||||
| Basic Earnings | $ | 0.60 | $ | 0.57 | 5.3 | % | $ | 0.58 | |||||
| Diluted Earnings | 0.60 | 0.57 | 5.3 | % | 0.57 | ||||||||
| Dividends Paid | 0.39 | 0.39 | 0.0 | % | 0.39 | ||||||||
| % | |||||||||||||
| 06/30'17YTD | 06/30'16YTD | Change | |||||||||||
| Interest & Fee Income: | |||||||||||||
| Loans | $ | 31,248 | $ | 35,936 | -13.0 | % | |||||||
| Investment Securities: | |||||||||||||
| Available for Sale | 20,958 | 16,058 | 30.5 | % | |||||||||
| Held to Maturity | 14,281 | 15,380 | -7.1 | % | |||||||||
| Total Interest & Fee Income | 66,487 | 67,374 | -1.3 | % | |||||||||
| Interest Expense: | |||||||||||||
| Transaction Deposits | 114 | 137 | -16.7 | % | |||||||||
| Savings Deposits | 445 | 448 | -0.5 | % | |||||||||
| Time Deposits | 375 | 489 | -23.4 | % | |||||||||
| Short-Term Borrowed Funds | 22 | 19 | 12.2 | % | |||||||||
| Total Interest Expense | 956 | 1,093 | -12.5 | % | |||||||||
| Net Interest Income | 65,531 | 66,281 | -1.1 | % | |||||||||
| (Reversal of) Provision for Loan Losses | (1,900 | ) | - | n/m | |||||||||
| Noninterest Income: | |||||||||||||
| Service Charges | 9,868 | 10,487 | -5.9 | % | |||||||||
| Merchant Processing Services | 3,927 | 3,167 | 24.0 | % | |||||||||
| Debit Card Fees | 3,067 | 3,137 | -2.2 | % | |||||||||
| Other Service Fees | 1,312 | 1,279 | 2.5 | % | |||||||||
| ATM Processing Fees | 1,229 | 1,261 | -2.5 | % | |||||||||
| Trust Fees | 1,418 | 1,318 | 7.6 | % | |||||||||
| Financial Services Commissions | 337 | 293 | 15.0 | % | |||||||||
| Other | 2,622 | 2,489 | 5.3 | % | |||||||||
| Total Noninterest Income | 23,780 | 23,431 | 1.5 | % | |||||||||
| Noninterest Expense: | |||||||||||||
| Salaries and Benefits | 26,051 | 26,004 | 0.2 | % | |||||||||
| Occupancy | 7,142 | 6,798 | 5.1 | % | |||||||||
| Outsourced Data Processing | 4,327 | 4,260 | 1.6 | % | |||||||||
| Amortization of Identifiable Intangibles | 1,562 | 1,775 | -12.0 | % | |||||||||
| Professional Fees | 1,021 | 1,490 | -31.4 | % | |||||||||
| Furniture & Equipment | 2,521 | 2,400 | 5.1 | % | |||||||||
| Other Real Estate Owned | (166 | ) | (281 | ) | n/m | ||||||||
| Courier Service | 859 | 1,007 | -14.7 | % | |||||||||
| Other | 5,694 | 7,634 | -25.4 | % | |||||||||
| Total Noninterest Expense | 49,011 | 51,087 | -4.1 | % | |||||||||
| Income Before Income Taxes | 42,200 | 38,625 | 9.3 | % | |||||||||
| Income Tax Provision | 11,352 | 9,853 | 15.2 | % | |||||||||
| Net Income | $ | 30,848 | $ | 28,772 | 7.2 | % | |||||||
| Average Common Shares Outstanding | 26,235 | 25,516 | 2.8 | % | |||||||||
| Diluted Common Shares Outstanding | 26,366 | 25,549 | 3.2 | % | |||||||||
| Per Common Share Data: | |||||||||||||
| Basic Earnings | $ | 1.18 | $ | 1.13 | 4.4 | % | |||||||
| Diluted Earnings | 1.17 | 1.13 | 3.5 | % | |||||||||
| Dividends Paid | 0.78 | 0.78 | 0.0 | % | |||||||||
| Footnotes and Abbreviations: | |||||||||||||
| (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 | |||||||||||||
| (1) All originated and purchased non performing loans and repossessed loan collateral have been combined as of Q1 '17. Prior period presentation has been updated, accordingly. | |||||||||||||