SAN RAFAEL, Calif., Oct. 18, 2018 (GLOBE NEWSWIRE) -- Westamerica Bancorporation (Nasdaq: WABC), parent company of Westamerica Bank, generated net income for the third quarter 2018 of $17.0 million and diluted earnings per common share ("EPS") of $0.63; third quarter 2018 results include a $585 thousand tax-exempt life insurance policy gain and a $3.5 million contingency settlement, which on an aggregate basis reduced EPS $0.07. Third quarter 2018 results compare to second quarter 2018 net income of $18.0 million and EPS of $0.67, and third quarter 2017 net income of $15.0 million and EPS of $0.57.
"Third quarter 2018 net interest income demonstrated continuing improvement as rising market interest rates benefit the yields on our interest earning assets. Our annualized funding costs were unchanged at 0.04 percent of interest-earning assets due to the predominance of low-cost checking and savings accounts in our deposit portfolio. The net interest margin on a fully-taxable equivalent (“FTE”) basis rose from 3.08 percent in the second quarter 2018 to 3.10 percent in the third quarter 2018. Asset quality remains solid with nonperforming assets totaling only $6.5 million at September 30, 2018, and net loan losses of $1 million for the first nine months of 2018,” said Chairman, President and CEO David Payne. “Third quarter 2018 results generated an annualized 10.6 percent return on average common equity. These consistent operating results allowed the Board of Directors to approve a $0.40 per share dividend in the third quarter 2018, totaling $10.7 million, for our shareholders,” concluded Payne.
Net interest income (FTE) was $37.1 million for the third quarter 2018, compared to $36.6 million for the second quarter 2018 and $35.7 million for the third quarter 2017. The net interest margin (FTE) was 3.10 percent for the third quarter 2018, compared to 3.08 percent for the second quarter 2018 and 3.10 percent for the third quarter 2017. Checking and savings deposits, which are less sensitive to rising interest rates than time deposits, represented ninety-six percent of the Company’s average deposit base during the third quarter 2018.
The Company recognized no provision for loan losses for the third quarter 2018 given stable nonperforming loan volumes and other credit quality attributes.
Noninterest income for the third quarter 2018 totaled $12.5 million, compared to $11.8 million for the second quarter 2018 and $12.5 million for the third quarter 2017. Noninterest income for the third quarter 2018 included a tax-exempt life insurance policy gain of $585 thousand.
Noninterest expense for the third quarter 2018 totaled $27.0 million, compared to $24.0 million for the second quarter 2018 and $24.1 million for the third quarter 2017. Noninterest expense for the third quarter 2018 included a $3.5 million contingency settlement as the Company achieved a mediated settlement to dismiss a lawsuit.
The tax rate (FTE) applied to pre-tax income (FTE) was 25.0 percent for the third quarter 2018, compared to 26.1 percent for the second quarter 2018 and 37.7 percent for the third quarter 2017. The lower tax rates for 2018 compared to 2017 reflect a reduction in the federal corporate tax rate due to the Tax Cuts and Jobs Act of 2017. The book tax provisions for the third quarter 2018 and the second quarter 2018 include tax benefits of $152 thousand and $128 thousand, respectively, for tax deductions from the exercise of employee stock options which exceed related compensation expense recognized in the financial statements.
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
For additional information contact:
Westamerica Bancorporation
1108 Fifth Avenue, San Rafael, CA 94901
Robert A. Thorson – SVP & Chief Financial Officer
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, 2017 filed on Form 10-K and quarterly report for the quarter ended June 30, 2018 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 18, 2018 | |||||||||
| WESTAMERICA BANCORPORATION | |||||||||
| FINANCIAL HIGHLIGHTS | |||||||||
| September 30, 2018 | |||||||||
| 1. Net Income Summary. | |||||||||
| (in thousands except per-share amounts) | |||||||||
| % | |||||||||
| Q3'18 | Q3'17 | Change | Q2'18 | ||||||
| Net Interest and Fee Income (FTE) | $37,137 | $35,680 | 4.1 | % | $36,585 | ||||
| Reversal of Provision for Loan Losses | - | - | n/m | - | |||||
| Noninterest Income | 12,528 | 12,548 | -0.2 | % | 11,769 | ||||
| Noninterest Expense | 27,005 | 24,114 | 12.0 | % | 23,977 | ||||
| Income Before Taxes (FTE) | 22,660 | 24,114 | -6.0 | % | 24,377 | ||||
| Income Tax Provision (FTE) | 5,667 | 9,097 | -37.7 | % | 6,367 | ||||
| Net Income | $16,993 | $15,017 | 13.2 | % | $18,010 | ||||
| Average Common Shares Outstanding | 26,701 | 26,309 | 1.5 | % | 26,630 | ||||
| Diluted Average Common Shares | 26,815 | 26,404 | 1.6 | % | 26,728 | ||||
| Operating Ratios: | |||||||||
| Basic Earnings Per Common Share | $0.64 | $0.57 | 12.3 | % | $0.68 | ||||
| Diluted Earnings Per Common Share | 0.63 | 0.57 | 10.5 | % | 0.67 | ||||
| Return On Assets (a) | 1.19 | % | 1.09 | % | 1.29 | % | |||
| Return On Common Equity (a) | 10.6 | % | 9.9 | % | 11.6 | % | |||
| Net Interest Margin (FTE) (a) | 3.10 | % | 3.10 | % | 3.08 | % | |||
| Efficiency Ratio (FTE) | 54.4 | % | 50.0 | % | 49.6 | % | |||
| Dividends Paid Per Common Share | $0.40 | $0.39 | 2.6 | % | $0.40 | ||||
| Common Dividend Payout Ratio | 63 | % | 68 | % | 60 | % | |||
| % | |||||||||
| 9/30'18YTD | 9/30'17YTD | Change | |||||||
| Net Interest and Fee Income (FTE) | $109,189 | $107,474 | 1.6 | % | |||||
| Reversal of Provision for Loan Losses | - | (1,900 | ) | n/m | |||||
| Noninterest Income | 36,252 | 36,328 | -0.2 | % | |||||
| Noninterest Expense | 75,196 | 73,125 | 2.8 | % | |||||
| Income Before Taxes (FTE) | 70,245 | 72,577 | -3.2 | % | |||||
| Income Tax Provision (FTE) | 17,736 | 26,712 | -33.6 | % | |||||
| Net Income | $52,509 | $45,865 | 14.5 | % | |||||
| Average Common Shares Outstanding | 26,622 | 26,260 | 1.4 | % | |||||
| Diluted Average Common Shares | 26,736 | 26,379 | 1.4 | % | |||||
| Operating Ratios: | |||||||||
| Basic Earnings Per Common Share | $1.97 | $1.75 | 12.6 | % | |||||
| Diluted Earnings Per Common Share | 1.96 | 1.74 | 12.6 | % | |||||
| Return On Assets (a) | 1.25 | % | 1.13 | % | |||||
| Return On Common Equity (a) | 11.2 | % | 10.4 | % | |||||
| Net Interest Margin (FTE) (a) | 3.07 | % | 3.12 | % | |||||
| Efficiency Ratio (FTE) | 51.7 | % | 50.9 | % | |||||
| Dividends Paid Per Common Share | $1.20 | $1.17 | 2.6 | % | |||||
| Common Dividend Payout Ratio | 61 | % | 67 | % | |||||
| 2. Net Interest Income. | |||||||||
| (dollars in thousands) | |||||||||
| % | |||||||||
| Q3'18 | Q3'17 | Change | Q2'18 | ||||||
| Interest and Fee Income (FTE) | $37,664 | $36,153 | 4.2 | % | $37,044 | ||||
| Interest Expense | 527 | 473 | 11.4 | % | 459 | ||||
| Net Interest and Fee Income (FTE) | $37,137 | $35,680 | 4.1 | % | $36,585 | ||||
| Average Earning Assets | $4,786,511 | $4,587,848 | 4.3 | % | $4,752,887 | ||||
| Average Interest- | |||||||||
| Bearing Liabilities | 2,733,670 | 2,687,620 | 1.7 | % | 2,729,671 | ||||
| Yield on Earning Assets (FTE) (a) | 3.14 | % | 3.14 | % | 3.12 | % | |||
| Cost of Funds (a) | 0.04 | % | 0.04 | % | 0.04 | % | |||
| Net Interest Margin (FTE) (a) | 3.10 | % | 3.10 | % | 3.08 | % | |||
| Interest Expense/ | |||||||||
| Interest-Bearing Liabilities (a) | 0.08 | % | 0.07 | % | 0.07 | % | |||
| Net Interest Spread (FTE) (a) | 3.06 | % | 3.07 | % | 3.05 | % | |||
| % | |||||||||
| 9/30'18YTD | 9/30'17YTD | Change | |||||||
| Interest and Fee Income (FTE) | $110,634 | $108,903 | 1.6 | % | |||||
| Interest Expense | 1,445 | 1,429 | 1.1 | % | |||||
| Net Interest and Fee Income (FTE) | $109,189 | $107,474 | 1.6 | % | |||||
| Average Earning Assets | $4,754,436 | $4,601,931 | 3.3 | % | |||||
| Average Interest- | |||||||||
| Bearing Liabilities | 2,732,520 | 2,694,785 | 1.4 | % | |||||
| Yield on Earning Assets (FTE) (a) | 3.11 | % | 3.16 | % | |||||
| Cost of Funds (a) | 0.04 | % | 0.04 | % | |||||
| Net Interest Margin (FTE) (a) | 3.07 | % | 3.12 | % | |||||
| Interest Expense/ | |||||||||
| Interest-Bearing Liabilities (a) | 0.07 | % | 0.07 | % | |||||
| Net Interest Spread (FTE) (a) | 3.04 | % | 3.09 | % | |||||
| 3. Loans & Other Earning Assets. | |||||||||
| (average volume, dollars in thousands) | |||||||||
| % | |||||||||
| Q3'18 | Q3'17 | Change | Q2'18 | ||||||
| Total Assets | $5,648,004 | $5,441,612 | 3.8 | % | $5,587,871 | ||||
| Total Earning Assets | 4,786,511 | 4,587,848 | 4.3 | % | 4,752,887 | ||||
| Total Loans | 1,194,874 | 1,287,740 | -7.2 | % | 1,209,049 | ||||
| Commercial Loans | 288,634 | 324,727 | -11.1 | % | 295,971 | ||||
| Commercial RE Loans | 554,081 | 566,794 | -2.2 | % | 550,427 | ||||
| Consumer Loans | 352,159 | 396,219 | -11.1 | % | 362,651 | ||||
| Total Investment Securities | 3,591,637 | 3,300,108 | 8.8 | % | 3,543,838 | ||||
| Equity Securities | 1,749 | 2,992 | -41.5 | % | 1,763 | ||||
| Debt Securities Available For Sale | 2,538,837 | 2,063,576 | 23.0 | % | 2,444,582 | ||||
| Debt Securities Held To Maturity | 1,051,051 | 1,233,540 | -14.8 | % | 1,097,493 | ||||
| Loans/Deposits | 24.4 | % | 27.3 | % | 24.9 | % | |||
| % | |||||||||
| 9/30'18YTD | 9/30'17YTD | Change | |||||||
| Total Assets | $5,600,499 | $5,407,661 | 3.6 | % | |||||
| Total Earning Assets | 4,754,436 | 4,601,931 | 3.3 | % | |||||
| Total Loans | 1,215,712 | 1,325,128 | -8.3 | % | |||||
| Commercial Loans | 300,215 | 343,091 | -12.5 | % | |||||
| Commercial RE Loans | 553,507 | 563,980 | -1.9 | % | |||||
| Consumer Loans | 361,990 | 418,057 | -13.4 | % | |||||
| Total Investment Securities | 3,538,724 | 3,276,803 | 8.0 | % | |||||
| Equity Securities | 1,834 | 3,043 | -39.7 | % | |||||
| Debt Securities Available For Sale | 2,442,335 | 1,994,281 | 22.5 | % | |||||
| Debt Securities Held To Maturity | 1,094,555 | 1,279,479 | -14.5 | % | |||||
| Loans/Deposits | 25.0 | % | 28.2 | % | |||||
| 4. Deposits, Other Interest-Bearing Liabilities & Equity. | |||||||||
| (average volume, dollars in thousands) | |||||||||
| % | |||||||||
| Q3'18 | Q3'17 | Change | Q2'18 | ||||||
| Total Deposits | $4,893,859 | $4,714,579 | 3.8 | % | $4,846,986 | ||||
| Noninterest Demand | 2,223,678 | 2,103,042 | 5.7 | % | 2,177,708 | ||||
| Interest Bearing Transaction | 935,257 | 891,532 | 4.9 | % | 924,542 | ||||
| Savings | 1,526,100 | 1,475,969 | 3.4 | % | 1,523,024 | ||||
| Time greater than $100K | 90,668 | 108,673 | -16.6 | % | 99,955 | ||||
| Time less than $100K | 118,156 | 135,363 | -12.7 | % | 121,757 | ||||
| Total Short-Term Borrowings | 63,489 | 76,083 | -16.6 | % | 60,393 | ||||
| Shareholders' Equity | 636,965 | 599,473 | 6.3 | % | 625,409 | ||||
| Demand Deposits/ | |||||||||
| Total Deposits | 45.4 | % | 44.6 | % | 44.9 | % | |||
| Transaction & Savings | |||||||||
| Deposits / Total Deposits | 95.7 | % | 94.8 | % | 95.4 | % | |||
| % | |||||||||
| 9/30'18YTD | 9/30'17YTD | Change | |||||||
| Total Deposits | $4,856,639 | $4,692,330 | 3.5 | % | |||||
| Noninterest Demand | 2,186,250 | 2,069,521 | 5.6 | % | |||||
| Interest Bearing Transaction | 928,479 | 884,171 | 5.0 | % | |||||
| Savings | 1,522,414 | 1,489,643 | 2.2 | % | |||||
| Time greater than $100K | 97,877 | 110,512 | -11.4 | % | |||||
| Time less than $100K | 121,619 | 138,483 | -12.2 | % | |||||
| Total Short-Term Borrowings | 62,131 | 71,976 | -13.7 | % | |||||
| Shareholders' Equity | 625,496 | 591,691 | 5.7 | % | |||||
| Demand Deposits/ | |||||||||
| Total Deposits | 45.0 | % | 44.1 | % | |||||
| Transaction & Savings | |||||||||
| Deposits / Total Deposits | 95.5 | % | 94.7 | % | |||||
| 5. Interest Yields Earned & Rates Paid. | |||||||||
| (dollars in thousands) | |||||||||
| Q3'18 | |||||||||
| Average | Income/ | Yield (a) / | |||||||
| Volume | Expense | Rate | |||||||
| Interest & Fee Income Earned | |||||||||
| Total Earning Assets (FTE) | $4,786,511 | $37,664 | 3.14 | % | |||||
| Total Loans (FTE) | 1,194,874 | 14,707 | 4.88 | % | |||||
| Commercial Loans (FTE) | 288,634 | 3,675 | 5.05 | % | |||||
| Commercial RE Loans | 554,081 | 7,556 | 5.41 | % | |||||
| Consumer Loans | 352,159 | 3,476 | 3.92 | % | |||||
| Total Investments (FTE) | 3,591,637 | 22,957 | 2.56 | % | |||||
| Interest Expense Paid | |||||||||
| Total Earning Assets | 4,786,511 | 527 | 0.04 | % | |||||
| Total Interest-Bearing Liabilities | 2,733,670 | 527 | 0.08 | % | |||||
| Total Interest-Bearing Deposits | 2,670,181 | 518 | 0.08 | % | |||||
| Interest-Bearing Transaction | 935,257 | 129 | 0.05 | % | |||||
| Savings | 1,526,100 | 229 | 0.06 | % | |||||
| Time less than $100K | 118,156 | 69 | 0.23 | % | |||||
| Time greater than $100K | 90,668 | 91 | 0.40 | % | |||||
| Total Short-Term Borrowings | 63,489 | 9 | 0.06 | % | |||||
| Net Interest Income and | |||||||||
| Margin (FTE) | 37,137 | 3.10 | % | ||||||
| Q3'17 | |||||||||
| Average | Income/ | Yield (a) / | |||||||
| Volume | Expense | Rate | |||||||
| Interest & Fee Income Earned | |||||||||
| Total Earning Assets (FTE) | $4,587,848 | $36,153 | 3.14 | % | |||||
| Total Loans (FTE) | 1,287,740 | 15,349 | 4.73 | % | |||||
| Commercial Loans (FTE) | 324,727 | 3,959 | 4.84 | % | |||||
| Commercial RE Loans | 566,794 | 7,806 | 5.46 | % | |||||
| Consumer Loans | 396,219 | 3,584 | 3.59 | % | |||||
| Total Investments (FTE) | 3,300,108 | 20,804 | 2.52 | % | |||||
| Interest Expense Paid | |||||||||
| Total Earning Assets | 4,587,848 | 473 | 0.04 | % | |||||
| Total Interest-Bearing Liabilities | 2,687,620 | 473 | 0.07 | % | |||||
| Total Interest-Bearing Deposits | 2,611,537 | 461 | 0.07 | % | |||||
| Interest-Bearing Transaction | 891,532 | 60 | 0.03 | % | |||||
| Savings | 1,475,969 | 220 | 0.06 | % | |||||
| Time less than $100K | 135,363 | 78 | 0.23 | % | |||||
| Time greater than $100K | 108,673 | 103 | 0.38 | % | |||||
| Total Short-Term Borrowings | 76,083 | 12 | 0.06 | % | |||||
| Net Interest Income and | |||||||||
| Margin (FTE) | $35,680 | 3.10 | % | ||||||
| 6. Noninterest Income. | |||||||||
| (dollars in thousands except per-share amounts) | |||||||||
| % | |||||||||
| Q3'18 | Q3'17 | Change | Q2'18 | ||||||
| Service Charges on Deposits | $4,615 | $4,989 | -7.5 | % | $4,645 | ||||
| Merchant Processing Services | 2,464 | 2,153 | 14.4 | % | 2,305 | ||||
| Debit Card Fees | 1,656 | 1,784 | -7.2 | % | 1,698 | ||||
| Other Service Fees | 665 | 652 | 2.0 | % | 650 | ||||
| ATM Processing Fees | 687 | 684 | 0.5 | % | 698 | ||||
| Trust Fees | 733 | 718 | 2.0 | % | 726 | ||||
| Life Insurance Gains | 585 | - | n/m | - | |||||
| Financial Services Commissions | 132 | 148 | -10.4 | % | 141 | ||||
| Equity Securities Losses | (16 | ) | - | n/m | (14 | ) | |||
| Other Income | 1,007 | 1,420 | -29.1 | % | 920 | ||||
| Total Noninterest Income | $12,528 | $12,548 | -0.2 | % | $11,769 | ||||
| Total Revenue (FTE) | $49,665 | $48,228 | 3.0 | % | $48,354 | ||||
| Noninterest Income/Revenue (FTE) | 25.2 | % | 26.0 | % | 24.3 | % | |||
| Service Charges/Avg. Deposits (a) | 0.37 | % | 0.42 | % | 0.38 | % | |||
| Total Revenues (FTE) Per Avg. | |||||||||
| Common Share (a) | $7.38 | $7.27 | 1.5 | % | $7.28 | ||||
| % | |||||||||
| 9/30'18YTD | 9/30'17YTD | Change | |||||||
| Service Charges on Deposits | $14,012 | $14,857 | -5.7 | % | |||||
| Merchant Processing Services | 7,190 | 6,080 | 18.2 | % | |||||
| Debit Card Fees | 4,959 | 4,851 | 2.2 | % | |||||
| Other Service Fees | 1,946 | 1,964 | -0.9 | % | |||||
| ATM Processing Fees | 2,049 | 1,914 | 7.1 | % | |||||
| Trust Fees | 2,202 | 2,136 | 3.1 | % | |||||
| Life Insurance Gains | 585 | - | n/m | ||||||
| Financial Services Commissions | 387 | 484 | -20.0 | % | |||||
| Equity Securities Losses | (66 | ) | - | n/m | |||||
| Other Income | 2,988 | 4,042 | -26.1 | % | |||||
| Total Noninterest Income | $36,252 | $36,328 | -0.2 | % | |||||
| Total Revenue (FTE) | $145,441 | $143,802 | 1.1 | % | |||||
| Noninterest Income/Revenue (FTE) | 24.9 | % | 25.3 | % | |||||
| Service Charges/Avg. Deposits (a) | 0.39 | % | 0.42 | % | |||||
| Total Revenues (FTE) Per Avg. | |||||||||
| Common Share (a) | $7.30 | $7.32 | -0.2 | % | |||||
| 7. Noninterest Expense. | |||||||||
| (dollars in thousands) | |||||||||
| % | |||||||||
| Q3'18 | Q3'17 | Change | Q2'18 | ||||||
| Salaries & Benefits | $13,415 | $12,816 | 4.7 | % | $13,186 | ||||
| Occupancy and Equipment | 4,809 | 4,907 | -2.0 | % | 4,864 | ||||
| Loss Contingency (1) | 3,500 | - | n/m | - | |||||
| Outsourced Data Processing | 2,292 | 2,383 | -3.8 | % | 2,299 | ||||
| Amortization of | |||||||||
| Identifiable Intangibles | 451 | 760 | -40.7 | % | 453 | ||||
| Professional Fees | 621 | 512 | 21.2 | % | 871 | ||||
| Courier Service | 448 | 451 | -0.7 | % | 422 | ||||
| Other Operating | 1,469 | 2,285 | -35.7 | % | 1,882 | ||||
| Total Noninterest Expense | $27,005 | $24,114 | 12.0 | % | $23,977 | ||||
| Noninterest Expense/ | |||||||||
| Avg. Earning Assets (a) | 2.24 | % | 2.09 | % | 2.02 | % | |||
| Noninterest Expense/Revenues (FTE) | 54.4 | % | 50.0 | % | 49.6 | % | |||
| % | |||||||||
| 9/30'18YTD | 9/30'17YTD | Change | |||||||
| Salaries & Benefits | $39,952 | $38,867 | 2.8 | % | |||||
| Occupancy and Equipment | 14,365 | 14,571 | -1.4 | % | |||||
| Outsourced Data Processing | 6,930 | 6,710 | 3.3 | % | |||||
| Loss Contingency (1) | 3,500 | - | n/m | ||||||
| Amortization of | |||||||||
| Identifiable Intangibles | 1,474 | 2,322 | -36.5 | % | |||||
| Professional Fees | 2,277 | 1,533 | 48.5 | % | |||||
| Courier Service | 1,333 | 1,310 | 1.8 | % | |||||
| Other Operating | 5,365 | 7,812 | -31.3 | % | |||||
| Total Noninterest Expense | $75,196 | $73,125 | 2.8 | % | |||||
| Noninterest Expense/ | |||||||||
| Avg. Earning Assets (a) | 2.11 | % | 2.12 | % | |||||
| Noninterest Expense/Revenues (FTE) | 51.7 | % | 50.9 | % | |||||
| 8. Allowance for Loan Losses. | |||||||||
| (dollars in thousands) | |||||||||
| % | |||||||||
| Q3'18 | Q3'17 | Change | Q2'18 | ||||||
| Average Total Loans | $1,194,874 | $1,287,740 | -7.2 | % | $1,209,049 | ||||
| Allowance for Loan Loss (ALL) | |||||||||
| Beginning of Period | $23,040 | $24,103 | -4.4 | % | $23,081 | ||||
| Reversal of Provision for Loan Losses | - | - | n/m | - | |||||
| Net ALL Losses | (1,013 | ) | (475 | ) | n/m | (41 | ) | ||
| ALL End of Period | $22,027 | $23,628 | -6.8 | % | $23,040 | ||||
| Net ALL Losses / Gross ALL Losses | 31 | % | 53 | % | 95 | % | |||
| Net ALL Losses / Avg. Total Loans (a) | 0.34 | % | 0.15 | % | 0.01 | % | |||
| % | |||||||||
| 9/30'18YTD | 9/30'17YTD | Change | |||||||
| Average Total Loans | $1,215,712 | $1,325,128 | -8.3 | % | |||||
| Allowance for Loan Loss (ALL) | |||||||||
| Beginning of Period | $23,009 | $25,954 | -11.3 | % | |||||
| Reversal of Provision for Loan Losses | - | (1,900 | ) | n/m | |||||
| Net ALL Losses | (982 | ) | (426 | ) | n/m | ||||
| ALL End of Period | $22,027 | $23,628 | -6.8 | % | |||||
| Net ALL Losses / Gross ALL Losses | 73 | % | 91 | % | |||||
| Net ALL Losses / Avg. Total Loans (a) | 0.11 | % | 0.04 | % | |||||
| 9. Credit Quality. | |||||||||
| (dollars in thousands) | |||||||||
| % | |||||||||
| 9/30/18 | 9/30/17 | Change | 6/30/18 | ||||||
| Nonperforming Loans: | |||||||||
| Nonperforming Nonaccrual | $1,611 | $1,498 | 7.5 | % | $783 | ||||
| Performing Nonaccrual | 3,870 | 4,285 | -9.7 | % | 4,110 | ||||
| Total Nonaccrual Loans | 5,481 | 5,783 | -5.2 | % | 4,893 | ||||
| 90+ Days Past Due Accruing Loans | 361 | 434 | -16.8 | % | 193 | ||||
| Total | 5,842 | 6,217 | -6.0 | % | 5,086 | ||||
| Repossessed Loan Collateral | 620 | 1,426 | -56.5 | % | 939 | ||||
| Total Nonperforming Assets | $6,462 | $7,643 | -15.4 | % | $6,025 | ||||
| Total Loans Outstanding | $1,196,955 | $1,284,782 | -6.8 | % | $1,200,192 | ||||
| Total Assets | $5,529,463 | $5,445,808 | 1.5 | % | $5,577,844 | ||||
| Loans: | |||||||||
| Allowance for Loan Losses | $22,027 | $23,628 | -6.8 | % | $23,040 | ||||
| Allowance/Loans | 1.84 | % | 1.84 | % | 1.92 | % | |||
| Nonperforming Loans/Total Loans | 0.49 | % | 0.48 | % | 0.42 | % | |||
| 10. Capital. | |||||||||
| (in thousands, except per-share amounts) | |||||||||
| % | |||||||||
| 9/30/18 | 9/30/17 | Change | 6/30/18 | ||||||
| Shareholders' Equity | $592,591 | $603,957 | -1.9 | % | $586,138 | ||||
| Total Assets | 5,529,463 | 5,445,808 | 1.5 | % | 5,577,844 | ||||
| Shareholders' Equity/ | |||||||||
| Total Assets | 10.72 | % | 11.09 | % | 10.51 | % | |||
| Shareholders' Equity/ | |||||||||
| Total Loans | 49.51 | % | 47.01 | % | 48.84 | % | |||
| Tangible Common Equity Ratio | 8.67 | % | 8.98 | % | 8.47 | % | |||
| Common Shares Outstanding | 26,727 | 26,319 | 1.6 | % | 26,649 | ||||
| Common Equity Per Share | $22.17 | $22.95 | -3.4 | % | $21.99 | ||||
| Market Value Per Common Share | $60.16 | $59.54 | 1.0 | % | $56.51 | ||||
| Share Repurchase Programs | |||||||||
| (shares in thousands) | |||||||||
| % | |||||||||
| Q3'18 | Q3'17 | Change | Q2'18 | ||||||
| Total Shares Repurchased | - | - | n/m | 9 | |||||
| Average Repurchase Price | $- | $- | n/m | $58.46 | |||||
| Net Shares Issued | (78 | ) | (15 | ) | n/m | (58 | ) | ||
| % | |||||||||
| 9/30'18YTD | 9/30'17YTD | Change | |||||||
| Total Shares Repurchased | 9 | 6 | n/m | ||||||
| Average Repurchase Price | $58.46 | $56.51 | n/m | ||||||
| Net Shares Issued | (302 | ) | (412 | ) | n/m | ||||
| 11. Period-End Balance Sheets. | |||||||||
| (unaudited, dollars in thousands) | |||||||||
| % | |||||||||
| 9/30/18 | 9/30/17 | Change | 6/30/18 | ||||||
| Assets: | |||||||||
| Cash and Due from Banks | $522,660 | $561,757 | -7.0 | % | $629,146 | ||||
| Investment Securities: | |||||||||
| Equity Securities | 1,734 | 11,373 | n/m | 1,750 | |||||
| Debt Securities Available For Sale | 2,478,908 | 2,079,104 | 19.2 | % | 2,363,194 | ||||
| Debt Securities Held to Maturity | 1,025,699 | 1,204,240 | -14.8 | % | 1,076,456 | ||||
| Loans | 1,196,955 | 1,284,782 | -6.8 | % | 1,200,192 | ||||
| Allowance For Loan Losses | (22,027 | ) | (23,628 | ) | -6.8 | % | (23,040 | ) | |
| Total Loans, net | 1,174,928 | 1,261,154 | -6.8 | % | 1,177,152 | ||||
| Other Real Estate Owned | 620 | 1,426 | -56.5 | % | 939 | ||||
| Premises and Equipment, net | 35,391 | 35,507 | -0.3 | % | 35,774 | ||||
| Identifiable Intangibles, net | 2,376 | 4,605 | -48.4 | % | 2,827 | ||||
| Goodwill | 121,673 | 121,673 | 0.0 | % | 121,673 | ||||
| Other Assets | 165,474 | 164,969 | 0.3 | % | 168,933 | ||||
| Total Assets | $5,529,463 | $5,445,808 | 1.5 | % | $5,577,844 | ||||
| Liabilities and Shareholders' Equity: | |||||||||
| Deposits: | |||||||||
| Noninterest Bearing | $2,211,028 | $2,128,342 | 3.9 | % | $2,205,971 | ||||
| Interest-Bearing Transaction | 909,954 | 873,145 | 4.2 | % | 939,002 | ||||
| Savings | 1,510,015 | 1,491,168 | 1.3 | % | 1,526,228 | ||||
| Time | 204,840 | 241,925 | -15.3 | % | 215,921 | ||||
| Total Deposits | 4,835,837 | 4,734,580 | 2.1 | % | 4,887,122 | ||||
| Short-Term Borrowed Funds | 61,756 | 66,337 | -6.9 | % | 68,894 | ||||
| Other Liabilities | 39,279 | 40,934 | -4.0 | % | 35,690 | ||||
| Total Liabilities | 4,936,872 | 4,841,851 | 2.0 | % | 4,991,706 | ||||
| Shareholders' Equity: | |||||||||
| Common Equity: | |||||||||
| Paid-In Capital | 449,180 | 427,188 | 5.1 | % | 444,871 | ||||
| Accumulated Other | |||||||||
| Comprehensive Loss | (54,066 | ) | (3,433 | ) | n/m | (49,900 | ) | ||
| Retained Earnings | 197,477 | 180,202 | 9.6 | % | 191,167 | ||||
| Total Shareholders' Equity | 592,591 | 603,957 | -1.9 | % | 586,138 | ||||
| Total Liabilities and | |||||||||
| Shareholders' Equity | $5,529,463 | $5,445,808 | 1.5 | % | $5,577,844 | ||||
| 12. Income Statements. | |||||||||
| (unaudited, in thousands except per-share amounts) | |||||||||
| % | |||||||||
| Q3'18 | Q3'17 | Change | Q2'18 | ||||||
| Interest & Fee Income: | |||||||||
| Loans | $14,593 | $15,082 | -3.2 | % | $14,957 | ||||
| Investment Securities: | |||||||||
| Equity Securities | 85 | 70 | 21.0 | % | 86 | ||||
| Debt Securities Available for Sale | 15,644 | 11,277 | 38.7 | % | 14,323 | ||||
| Debt Securities Held to Maturity | 5,931 | 6,716 | -11.7 | % | 6,216 | ||||
| Total Interest & Fee Income | 36,253 | 33,145 | 9.4 | % | 35,582 | ||||
| Interest Expense: | |||||||||
| Transaction Deposits | 129 | 60 | 115.7 | % | 60 | ||||
| Savings Deposits | 229 | 220 | 4.0 | % | 224 | ||||
| Time Deposits | 160 | 181 | -11.8 | % | 165 | ||||
| Short-Term Borrowed Funds | 9 | 12 | -22.3 | % | 10 | ||||
| Total Interest Expense | 527 | 473 | 11.4 | % | 459 | ||||
| Net Interest Income | 35,726 | 32,672 | 9.3 | % | 35,123 | ||||
| Reversal of Provision for Loan Losses | - | - | n/m | - | |||||
| Noninterest Income: | |||||||||
| Service Charges | 4,615 | 4,989 | -7.5 | % | 4,645 | ||||
| Merchant Processing Services | 2,464 | 2,153 | 14.4 | % | 2,305 | ||||
| Debit Card Fees | 1,656 | 1,784 | -7.2 | % | 1,698 | ||||
| Other Service Fees | 665 | 652 | 2.0 | % | 650 | ||||
| ATM Processing Fees | 687 | 684 | 0.5 | % | 698 | ||||
| Trust Fees | 733 | 718 | 2.0 | % | 726 | ||||
| Life Insurance Gains | 585 | - | n/m | - | |||||
| Financial Services Commissions | 132 | 148 | -10.4 | % | 141 | ||||
| Equity Securities Losses | (16 | ) | - | n/m | (14 | ) | |||
| Other | 1,007 | 1,420 | -29.1 | % | 920 | ||||
| Total Noninterest Income | 12,528 | 12,548 | -0.2 | % | 11,769 | ||||
| Noninterest Expense: | |||||||||
| Salaries and Benefits | 13,415 | 12,816 | 4.7 | % | 13,186 | ||||
| Occupancy and Equipment | 4,809 | 4,907 | -2.0 | % | 4,864 | ||||
| Loss Contingency (1) | 3,500 | - | n/m | - | |||||
| Outsourced Data Processing | 2,292 | 2,383 | -3.8 | % | 2,299 | ||||
| Amortization of Identifiable Intangibles | 451 | 760 | -40.7 | % | 453 | ||||
| Professional Fees | 621 | 512 | 21.2 | % | 871 | ||||
| Courier Service | 448 | 451 | -0.7 | % | 422 | ||||
| Other | 1,469 | 2,285 | -35.7 | % | 1,882 | ||||
| Total Noninterest Expense | 27,005 | 24,114 | 12.0 | % | 23,977 | ||||
| Income Before Income Taxes | 21,249 | 21,106 | 0.7 | % | 22,915 | ||||
| Income Tax Provision | 4,256 | 6,089 | -30.1 | % | 4,905 | ||||
| Net Income | $16,993 | $15,017 | 13.2 | % | $18,010 | ||||
| Average Common Shares Outstanding | 26,701 | 26,309 | 1.5 | % | 26,630 | ||||
| Diluted Common Shares Outstanding | 26,815 | 26,404 | 1.6 | % | 26,728 | ||||
| Per Common Share Data: | |||||||||
| Basic Earnings | $0.64 | $0.57 | 12.3 | % | $0.68 | ||||
| Diluted Earnings | 0.63 | 0.57 | 10.5 | % | 0.67 | ||||
| Dividends Paid | 0.40 | 0.39 | 2.6 | % | 0.40 | ||||
| % | |||||||||
| 9/30'18YTD | 9/30'17YTD | Change | |||||||
| Interest & Fee Income: | |||||||||
| Loans | $44,247 | $46,330 | -4.5 | % | |||||
| Investment Securities: | |||||||||
| Equity Securities | 256 | 214 | 19.4 | % | |||||
| Debt Securities Available for Sale | 43,518 | 32,091 | 35.6 | % | |||||
| Debt Securities Held to Maturity | 18,321 | 20,997 | -12.7 | % | |||||
| Total Interest & Fee Income | 106,342 | 99,632 | 6.7 | % | |||||
| Interest Expense: | |||||||||
| Transaction Deposits | 249 | 174 | 43.5 | % | |||||
| Savings Deposits | 675 | 665 | 1.5 | % | |||||
| Time Deposits | 493 | 556 | -11.4 | % | |||||
| Short-Term Borrowed Funds | 28 | 34 | -17.5 | % | |||||
| Total Interest Expense | 1,445 | 1,429 | 1.1 | % | |||||
| Net Interest Income | 104,897 | 98,203 | 6.8 | % | |||||
| Reversal of Provision for Loan Losses | - | (1,900 | ) | n/m | |||||
| Noninterest Income: | |||||||||
| Service Charges | 14,012 | 14,857 | -5.7 | % | |||||
| Merchant Processing Services | 7,190 | 6,080 | 18.2 | % | |||||
| Debit Card Fees | 4,959 | 4,851 | 2.2 | % | |||||
| Other Service Fees | 1,946 | 1,964 | -0.9 | % | |||||
| ATM Processing Fees | 2,049 | 1,914 | 7.1 | % | |||||
| Trust Fees | 2,202 | 2,136 | 3.1 | % | |||||
| Life Insurance Gains | 585 | - | n/m | ||||||
| Financial Services Commissions | 387 | 484 | -20.0 | % | |||||
| Equity Securities Losses | (66 | ) | - | n/m | |||||
| Other | 2,988 | 4,042 | -26.1 | % | |||||
| Total Noninterest Income | 36,252 | 36,328 | -0.2 | % | |||||
| Noninterest Expense: | |||||||||
| Salaries and Benefits | 39,952 | 38,867 | 2.8 | % | |||||
| Occupancy and Equipment | 14,365 | 14,571 | -1.4 | % | |||||
| Outsourced Data Processing | 6,930 | 6,710 | 3.3 | % | |||||
| Loss Contingency (1) | 3,500 | - | n/m | ||||||
| Amortization of Identifiable Intangibles | 1,474 | 2,322 | -36.5 | % | |||||
| Professional Fees | 2,277 | 1,533 | 48.5 | % | |||||
| Courier Service | 1,333 | 1,310 | 1.8 | % | |||||
| Other | 5,365 | 7,812 | -31.3 | % | |||||
| Total Noninterest Expense | 75,196 | 73,125 | 2.8 | % | |||||
| Income Before Income Taxes | 65,953 | 63,306 | 4.2 | % | |||||
| Income Tax Provision | 13,444 | 17,441 | -22.9 | % | |||||
| Net Income | $52,509 | $45,865 | 14.5 | % | |||||
| Average Common Shares Outstanding | 26,622 | 26,260 | 1.4 | % | |||||
| Diluted Common Shares Outstanding | 26,736 | 26,379 | 1.4 | % | |||||
| Per Common Share Data: | |||||||||
| Basic Earnings | $1.97 | $1.75 | 12.6 | % | |||||
| Diluted Earnings | 1.96 | 1.74 | 12.6 | % | |||||
| Dividends Paid | 1.20 | 1.17 | 2.6 | % | |||||
| Footnotes and Abbreviations: | |||||||||
| (1) The Company achieved a mediated settlement to dismiss a lawsuit. | |||||||||
| Certain amounts in prior periods have been reclassified to conform to the current presentation. | |||||||||
| (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 | |||||||||